Liberty Northwest Bancorp, Inc. Reports 2024 Fourth Quarter and Full Year Financial Results

Rhea-AI Summary

Liberty Northwest Bancorp (OTCQX: LBNW) reported a net loss of $43,000 for Q4 2024, compared to net income of $25,000 in Q3 2024 and $1,000 in Q4 2023. Full-year 2024 net income was $3,000, down from $35,000 in 2023.

Key metrics include: total assets of $186.9 million, net interest income of $1.00 million for Q4, and net interest margin of 2.30%. Total deposits increased 3% to $145.8 million, while net loans slightly decreased to $141.6 million compared to the previous year. The company's tangible book value per share improved to $7.80 from $7.58 year-over-year.

The company completed a $1.2 million Preferred Stock issuance in Q2 2024, convertible to Common Stock within 2 years. Asset quality remains strong with only one non-performing loan of $235,000, and the allowance for credit losses at 0.81% of total loans.

Positive

• Total deposits increased 3% year-over-year to $145.8 million
• Tangible book value per share increased to $7.80 from $7.58 year-over-year
• Strong asset quality with only one non-performing loan of $235,000
• Total risk-based capital ratio of 15.81%, well above regulatory requirements
• Non-interest expense decreased 6% to $4.68 million for the full year

Negative

• Q4 2024 net loss of $43,000 compared to Q3 2024 net income of $25,000
• Full-year net income declined to $3,000 from $35,000 in 2023
• Net interest margin compressed to 2.30% in Q4 2024 from 2.48% in Q4 2023
• Net loans decreased 1% year-over-year to $141.6 million
• Non-interest income decreased to $308,000 in 2024 from $449,000 in 2023

2024 Fourth Quarter Financial Highlights:

• Total assets were $186.9 million at year end.
• Net interest income of $1.00 million for the fourth quarter.
• Net interest margin of 2.30% for the fourth quarter and 2.36% for the year.
• Total deposits increased 3% to $145.8 million at December 31, 2024, compared to $142.2 million a year ago, with non-interest bearing demand deposits representing 25% of total deposits.
• Net loans were $141.6 million at December 31, 2024, compared to $142.8 million a year ago.
• Asset quality remains pristine.
• Tangible book value per share increased to $7.80 at year end, compared to $7.58 a year ago.
  

POULSBO, Wash., Feb. 19, 2025 (GLOBE NEWSWIRE) -- Liberty Northwest Bancorp, Inc. (OTCQX: LBNW) (the “Company”) and its wholly-owned subsidiary Liberty Bank today announced a net loss of $43 thousand for the fourth quarter ended December 31, 2024. This compared to net income of $25 thousand for the third quarter ended September 30, 2024, and $1 thousand for the fourth quarter ended December 31, 2023. For the twelve months ended December 31, 2024, net income was $3 thousand, compared to $35 thousand the same period in 2023.

Total assets were $186.9 million as of December 31, 2024, compared to $184.7 million at December 31, 2023. Net loans totaled $141.6 million as of December 31, 2024, a 1% increase compared to $140.0 million at September 30, 2024, and a 1% decrease compared to $142.8 million a year ago. Loan demand was muted during the quarter largely due to the elevated interest rate environment.

Asset quality remained pristine during the fourth quarter. The allowance for credit losses totaled $1.16 million as of December 31, 2024, and was 0.81% of total loans outstanding. The Company recorded net loan recoveries of $31 thousand during the quarter. The Company has one non-performing loan of $235 thousand as of December 31, 2024.

Due to strong credit quality metrics and muted loan growth, the Company recorded a $40 thousand reversal to its provision for credit losses in the fourth quarter of 2024. This compared to a $95 thousand reversal to its provision for credit losses in the third quarter of 2024 and a $60 thousand reversal to its provision for credit losses in the fourth quarter of 2023.

Total deposits increased 3% to $145.8 million at December 31, 2024, compared to $142.2 million at December 31, 2023, and decreased modestly compared to $146.4 million three months earlier. Non-interest bearing demand accounts represented 25%, interest bearing demand represented 30%, money market and savings accounts comprised 18%, and certificates of deposit made up 27% of the total deposit portfolio at December 31, 2024.

“The vibrant Pacific Northwest markets that we operate in continue to fuel our deposit base and loan pipeline,” said Rick Darrow, Liberty Northwest Bancorp, Inc. President and Chief Executive Officer. “During the fourth quarter, loan growth moderated, as we remain selective with the loans we are putting on the balance sheet. As we look to 2025, we anticipate an increase in growth opportunities, especially if interest rates continue to stabilize.

“The challenging interest rate environment continues to impact net interest income growth with higher interest expense on deposits and borrowings, which affected our operating performance for the fourth quarter of 2024,” said Darrow. Net interest income, before the provision for loan losses, was $1.00 million for the fourth quarter of 2024, compared to $1.07 million in the fourth quarter of 2023. For the year, net interest income was $4.11 million, compared to $4.44 million for 2023.

“While our yields on earning assets remained stable during the quarter, they were more than offset by the increase in cost of funds, resulting in net interest margin compression during the quarter,” said Darrow. The Company’s net interest margin was 2.30% for the fourth quarter of 2024, compared to 2.37% for the preceding quarter, and 2.48% for the fourth quarter of 2023. For the full year 2024, the net interest margin was 2.36%, compared to 2.59% for 2023.

Total non-interest income increased 6% to $82 thousand for the fourth quarter of 2024, compared to $78 thousand for the fourth quarter a year ago. For the year, non-interest income was $308 thousand, compared to $449 thousand for 2023. The decrease in 2024 compared to the prior year was primarily due to higher referral fee income earned in 2023.

Total noninterest expense was $1.18 million for the fourth quarter of 2024, a decrease of $43 thousand, or 3%, from the fourth quarter a year ago. Compensation and benefits costs decreased by $55 thousand, or 8%, over the year ago quarter, while occupancy costs decreased by $51 thousand, or 34% from the same quarter a year ago. For the year, total noninterest expense decreased $275 thousand, or 6%, to $4.68 million, over 2023.

“We remain focused on enhancing revenue generation and driving cost efficiencies to improve our operational effectiveness,” said Darrow. “Our operating performance is expected to continue to improve, as we improve our margin, while keeping operating expenses in line. We are well positioned for continued growth in our core business operations and remain focused on creating value for all of our customers, employees and shareholders.”

Capital ratios continue to exceed regulatory requirements, with a total risk-based capital ratio at 15.81% at December 31, 2024, substantially above well-capitalized regulatory requirements. The tangible book value per share was $7.80 at year end, compared to $7.58 a year earlier.

Near the end of the second quarter of 2024, the Company completed the issuance of $1.2 million of Preferred Stock. Under the terms of the transaction, the Preferred Stock will convert to Common Stock within a 2 year time period.

“We are deploying the proceeds from this offering to further strengthen our capital position and to support continued loan growth in our vibrant Pacific Northwest markets,” said Darrow.

About Liberty Northwest Bancorp, Inc.
Liberty Northwest Bancorp, Inc. is the bank holding company for Liberty Bank, a commercial bank chartered in the State of Washington. The Bank began operations June 11, 2009, and operates a full-service branch in Poulsbo, WA. The Bank provides loan and deposit services to predominantly small and middle-sized businesses and individuals in and around Kitsap and King counties. The Bank is subject to regulation by the State of Washington Department of Financial Institutions and the Federal Deposit Insurance Corporation (FDIC). For more information, please visit www.libertybanknw.com. Liberty Northwest Bancorp, Inc. (OTCQX: LBNW), qualified to trade on the OTCQX® Best Market in June 2022. For information related to the trading of LBNW, please visit www.otcmarkets.com.

For further discussion, please contact:
Rick Darrow, Chief Executive Officer | 360-394-4750

Forward-Looking Statement Safe Harbor: This news release contains comments or information that constitutes forward-looking statements (within the meaning of the Private Securities Litigation Reform Act of 1995) that are based on current expectations that involve a number of risks and uncertainties. Forward-looking statements describe Liberty Northwest Bancorp, Inc.’s projections, estimates, plans and expectations of future results and can be identified by words such as “believe,” “intend,” “estimate,” “likely,” “anticipate,” “expect,” “looking forward,” and other similar expressions. They are not guarantees of future performance. Actual results may differ materially from the results expressed in these forward-looking statements, which because of their forward-looking nature, are difficult to predict. Investors should not place undue reliance on any forward-looking statement, and should consider factors that might cause differences including but not limited to the degree of competition by traditional and nontraditional competitors, declines in real estate markets, an increase in unemployment or sustained high levels of unemployment; changes in interest rates; greater than expected costs to integrate acquisitions, adverse changes in local, national and international economies; changes in the Federal Reserve’s actions that affect monetary and fiscal policies; changes in legislative or regulatory actions or reform, including without limitation, the Dodd-Frank Wall Street Reform and Consumer Protection Act; demand for products and services; changes to the quality of the loan portfolio and our ability to succeed in our problem-asset resolution efforts; the impact of technological advances; changes in tax laws; and other risk factors. Liberty Northwest Bancorp, Inc. undertakes no obligation to publicly update or clarify any forward-looking statement to reflect the impact of events or circumstances that may arise after the date of this release.

STATEMENTS OF INCOME (Unaudited)
(Dollars in thousands)
			Quarter Ended Dec 31, 2024				Quarter Ended Sept 30, 2024				Three Month Change			Quarter Ended Dec 31, 2023				Quarter over Quarter - One Year Change			Year to Date Dec 31, 2024				Year to Date Dec 30, 2023				One Year Change
Interest Income
	Loans		$	1,932			$	1,994			-3	%		$	1,890			2	%		$	7,807			$	7,173			9	%
	Interest bearing deposits in banks			142				83			70	%			101			41	%			365				323			13	%
	Securities			108				114			-5	%			140			-23	%			461				483			-5	%
	Total interest income			2,182				2,192			-0	%			2,112			3	%			8,632				7,979			8	%
Interest Expense
	Deposits			928				903			3	%			656			41	%			3,298				2,141			54	%
	Other Borrowings			252				283			-11	%			384			-34	%			1,226				1,396			-12	%
	Total interest expense			1,179				1,186			-1	%			1,040			13	%			4,524				3,537			28	%
Net Interest Income				1,003				1,005			-0	%			1,072			-7	%			4,109				4,442			-8	%
	Provision for Loan Losses			(40	)			(95	)		-58	%			(60	)		-33	%			(265	)			(105	)		152	%
Net interest income after provision for loan losses				1,043				1,100			-5	%			1,132			-8	%			4,374				4,547			-4	%
Non-Interest Income
	Service charges on deposit accounts			28				28			-0	%			17			61	%			104				67			55	%
	Other non-interest income			55				46			19	%			61			-10	%			204				382			-47	%
	Total non-interest income			82				74			12	%			78			6	%			308				449			-31	%
Non-Interest Expense
	Salaries and employee benefits			650				668			-3	%			705			-8	%			2,596				2,854			-9	%
	Occupancy and equipment expenses			100				88			14	%			151			-34	%			429				595			-28	%
	Other operating expenses			429				387			11	%			367			17	%			1,652				1,503			10	%
	Total non-interest expenses			1,180				1,143			3	%			1,223			-3	%			4,677				4,952			-6	%
Net Income Before Income Tax				(55	)			31			-275	%			2			-3027	%			4				44			-90	%
Provision for Income Tax				(12	)			7			-275	%			0			-3027	%			1				9			-90	%
Net Income				(43	)		$	25			-275	%		$	1			-3027	%		$	3			$	35			-90	%

BALANCE SHEETS (Unaudited)
(Dollars in thousands)
			Dec 31, 2024				Sept 30, 2024				Three Month Change			Dec 31, 2023				One Year Change
Assets
	Cash and due from Banks		$	1,655			$	2,408			-31	%		$	1,817			-9	%
	Interest bearing deposits in banks			14,341				11,262			27	%			7,896			82	%
	Securities			20,586				21,225			-3	%			23,034			-11	%
	Loans			142,720				141,206			1	%			143,913			-1	%
	Allowance for loan losses			(1,158	)			(1,167	)		-1	%			(1,150	)		1	%
	Net Loans			141,561				140,038			1	%			142,763			-1	%
	Premises and fixed assets			6,101				6,161			-1	%			6,418			-5	%
	Accrued Interest receivable			681				668			2	%			765			-11	%
	Intangible assets			11				19			-43	%			39			-72	%
	Other assets			1,949				2,262			21	%			1,992			-2	%
	Total Assets		$	186,884			$	183,678			2	%		$	184,724			1	%
Liabilities and Shareholders' Equity
	Deposits
	Demand, non-interest bearing		$	35,845			$	39,669			-10	%		$	42,803			-16	%
	Interest Bearing Demand			44,149				40,764			8	%			23,528			88	%
	Money Market and Savings			26,495				27,419			-3	%			26,667			-1	%
	Certificates of Deposit			39,345				38,507			2	%			49,200			-20	%
	Total Deposits			145,833				146,359			-0	%			142,198			3	%
	Total Borrowing			26,461				22,454			18	%			29,430			-10	%
	Accrued interest payable			173				238			-27	%			335			-48	%
	Other liabilities			286				704			133	%			214			34	%
	Total Liabilities			172,753				169,756			2	%			172,177			0	%
	Shareholders' Equity
	Preferred Stock			1,242				1,242			0	%						***
	Common Stock			1,656				1,650			0	%			1,650			0	%
	Additional paid in capital			13,149				13,138			0	%			13,108			0	%
	Retained Earnings			(1,490	)			(1,447	)		-3	%			(1,493	)		0	%
	Other Comprehensive Income			(426	)			(661	)		36	%			(718	)		41	%
	Total Shareholders' Equity			14,131				13,922			1	%			12,547			13	%
	Total Liabilities and Shareholders' Equity		$	186,884			$	183,678			2	%		$	184,724			1	%

				Quarter Ended Dec 31, 2024				Quarter Ended Sept 30, 2024				Quarter Ended Dec 31, 2023				YTD 2024				YTD 2023
Financial Ratios
	Return on Average Assets				-0.09	%			0.06	%			0.00	%			0.00	%			0.02	%
	Return on Average Equity				-1.23	%			0.70	%			0.03	%			0.03	%			0.28	%
	Efficiency Ratio				108.7	%			105.9	%			106.4	%			105.9	%			101.2	%
	Net Interest Margin				2.30	%			2.37	%			2.48	%			2.36	%			2.59	%
	Loan to Deposits				97.9	%			96.5	%			101.2	%
	Tangible Book Value per Share			$	7.80			$	7.67			$	7.58
	Book Value per Share			$	7.81			$	7.68			$	7.60
	Earnings per Share			$	(0.03	)		$	0.01			$	-			$	0.03			$	0.02
	Asset Quality
	Net Loan Charge-offs (recoveries)			$	(31	)		$	4			$	-
	Nonperforming Loans			$	235			$	235			$	-
	Nonperforming Assets to Total Assets				0.13	%			0.13	%			0.00	%
	Allowance for Loan Losses to Total Loans				0.81	%			0.83	%			0.80	%
	Other Real Estate Owned				-				-				-
	CAPITAL (Bank only)
	Tier 1 leverage ratio				9.98	%			10.23	%			9.56	%
	Tier 1 risk-based capital ratio				14.87	%			15.00	%			14.16	%
	Total risk based capital ratio				15.81	%			15.97	%			15.09	%

FAQ

What was Liberty Northwest Bancorp's (LBNW) net income for Q4 2024?

Liberty Northwest Bancorp reported a net loss of $43,000 for Q4 2024, compared to net income of $25,000 in Q3 2024 and $1,000 in Q4 2023.

How did LBNW's deposit base change in 2024?

Total deposits increased 3% to $145.8 million at December 31, 2024, compared to $142.2 million at December 31, 2023.

What was LBNW's net interest margin in Q4 2024?

The net interest margin was 2.30% for Q4 2024, down from 2.37% in Q3 2024 and 2.48% in Q4 2023.

What capital raising activity did LBNW complete in 2024?

LBNW completed the issuance of $1.2 million of Preferred Stock in Q2 2024, which will convert to Common Stock within a 2-year period.

What was LBNW's tangible book value per share at the end of 2024?

The tangible book value per share was $7.80 at December 31, 2024, compared to $7.58 at December 31, 2023.