Parent Company Only Financial Statements

12 Months Ended

Dec. 31, 2022

Presented below are the condensed balance sheets, income statements and statements of cash flows for First Financial Northwest.

FIRST FINANCIAL NORTHWEST, INC.

Condensed Balance Sheets


	December 31,
	2022		2021
	(In thousands)
Assets
Cash and cash equivalents	$	223	$	74
Interest-bearing deposits	9,612		6,887

Investment in subsidiaries	150,522		150,822
Receivable from subsidiaries	3		363
Deferred tax assets, net	—		2
Other assets	236		25
Total assets	$	160,596	$	158,173

Liabilities and Stockholders’ Equity
Liabilities:
Payable to subsidiaries	$	64	$	170
Deferred tax liability, net	6		—
Other liabilities	166		124
Total liabilities	236		294
Stockholders’ equity	160,360		157,879
Total liabilities and stockholders’ equity	$	160,596	$	158,173

FIRST FINANCIAL NORTHWEST, INC.

Condensed Income Statements


	Year Ended December 31,
	2022		2021
	(In thousands)
Operating income:
Interest income:
Interest-bearing deposits with banks	$	13	$	15
Total interest income	13		15
Noninterest income:
Other income	$	25	—
Total noninterest income	$	25	$	—
Total operating income	$	38	$	15
Operating expenses:
Other expenses	1,942		1,721
Total operating expenses	1,942		1,721
Loss before benefit for federal income taxes and equity in undistributed earnings of subsidiaries	(1,904)		(1,706)
Federal income tax benefit	(411)		(376)
Loss before equity in undistributed loss of subsidiaries	(1,493)		(1,330)
Equity in undistributed earnings of subsidiaries	14,733		13,579
Net income	$	13,240	$	12,249

FIRST FINANCIAL NORTHWEST, INC.

Condensed Statements of Cash Flows


	Year Ended December 31,
	2022		2021
	(In thousands)
Cash flows from operating activities:
Net income	$	13,240	$	12,249
Adjustments to reconcile net income to net cash from operating
activities:
Equity in undistributed earnings of subsidiaries	(14,733)		(13,579)
Dividends received from subsidiary	8,198		6,708
Restricted stock compensation	6		25
Change in deferred tax liability, net	8		—
Change in receivables from subsidiaries	33		(37)
Change in payables to subsidiaries	(106)		106
Change in other assets	(211)		3
Changes in other liabilities	42		(33)
Net cash provided by operating activities	6,477		5,442
Cash flows from investing activities:


ESOP loan repayment	1,173		1,492
Net cash provided by investing activities	1,173		1,492
Cash flows from financing activities:
Proceeds from exercise of stock options	454		344
Proceeds for vested awards	737		767
Net share settlement of stock awards	(226)		(38)
Repurchase and retirement of common stock	(1,398)		(11,384)
Dividends paid	(4,343)		(4,090)
Net cash used in financing activities	(4,776)		(14,401)
Net decrease in cash	2,874		(7,467)
Cash and cash equivalents at beginning of year	6,961		14,428
Cash and cash equivalents at end of year	$	9,835	$	6,961