First Financial Northwest, Inc. Announces Receipt of Federal Deposit Insurance Corporation Approval for Transaction with Global Credit Union
August 12 2024 - 8:05AM
First Financial Northwest, Inc. (the “Company”) (NASDAQ GS: FFNW),
the holding company for First Financial Northwest Bank (the
“Bank”), announced today that they received the required regulatory
approval from the Federal Deposit Insurance Corporation (“FDIC”)
for Global Federal Credit Union (“Global”) to acquire substantially
all of the assets and assume substantially all of the liabilities
(including deposit liabilities) of the Bank (the “Asset Sale”), on
the terms and subject to the conditions of the Purchase and
Assumption Agreement, dated as of January 10, 2024, by and
among the Company, the Bank and Global. The Company previously
announced that the Bank had received approval from the Washington
State Department of Financial Institutions. The Company
shareholders approved the transaction at a special meeting of
shareholders held on July 19, 2024.
The consummation of the Asset Sale remains
subject to Global receiving the required regulatory approval from
the National Credit Union Administration (“NCUA”), which has not
yet been obtained. The Company cannot provide any assurance as to
whether the required final regulatory approval from the NCUA will
be received, when such approval will be received, or whether there
will be conditions to such approval that are unacceptably
burdensome to the Company or Global.
First Financial Northwest, Inc. is the parent
company of First Financial Northwest Bank; an FDIC insured
Washington State-chartered commercial bank headquartered in Renton,
Washington, serving the Puget Sound Region through 15 full-service
banking offices. For additional information about us, please visit
our website at ffnwb.com and click on the “Investor Relations” link
at the bottom of the page.
Forward-looking statements:
When used in this press release and in other
documents filed with or furnished to the Securities and Exchange
Commission (the “SEC”), in press releases or other public
shareholder communications, or in oral statements made with the
approval of an authorized executive officer, the words or phrases
“believe,” “will,” “will likely result,” “are expected to,” “will
continue,” “is anticipated,” “estimate,” “project,” “plans,” or
similar expressions are intended to identify “forward-looking
statements” within the meaning of the Private Securities Litigation
Reform Act of 1995. Forward-looking statements are not historical
facts but instead represent management’s current expectations and
forecasts regarding future events many of which are inherently
uncertain and outside of our control. Forward-looking statements
include statements with respect to our beliefs, plans, objectives,
goals, expectations, assumptions and statements about, among other
things, our pending transaction with Global Federal Credit Union
(“Global”) whereby Global, pursuant to the definitive purchase and
assumption agreement (the “P&A Agreement”), will acquire
substantially all of the assets and assume substantially all of the
liabilities of the Bank, expectations of the business environment
in which we operate, projections of future performance or financial
items, perceived opportunities in the market, potential future
credit experience, and statements regarding our mission and vision.
These forward-looking statements are based on current management
expectations and may, therefore, involve risks and uncertainties.
Actual results may differ, possibly materially from those currently
expected or projected in these forward-looking statements made by,
or on behalf of, us and could negatively affect our operating and
stock performance. Factors that could cause our actual results to
differ materially from those described in the forward-looking
statements, include, but are not limited to, the following: the
occurrence of any event, change or other circumstances that could
give rise to the right of one or all of the parties to terminate
the P&A Agreement; delays in completing the P&A Agreement;
the failure to obtain all necessary regulatory approvals or to
satisfy any of the other conditions to the Global transaction,
including the P&A Agreement, on a timely basis or at all;
delays or other circumstances arising from the dissolution of the
Bank and the Company following completion of the P&A Agreement;
diversion of management’s attention from ongoing business
operations and opportunities during the pending Global transaction;
potential adverse reactions or changes to business or employee
relationships, including those resulting from the announcement of
the Global transaction; potential adverse impacts to economic
conditions in our local market areas, other markets where the
Company has lending relationships, or other aspects of the
Company’s business operations or financial markets, including,
without limitation, as a result of employment levels, labor
shortages and the effects of inflation, a potential recession or
slowed economic growth; changes in the interest rate environment,
including the recent increases in the Federal Reserve benchmark
rate and duration at which such increased interest rate levels are
maintained, which could adversely affect our revenues and expenses,
the value of assets and obligations, and the availability and cost
of capital and liquidity; the impact of continuing high inflation
and the current and future monetary policies of the Federal Reserve
in response thereto; the effects of any federal government
shutdown; increased competitive pressures; legislative and
regulatory changes; the impact of bank failures or adverse
developments at other banks and related negative press about the
banking industry in general on investor and depositor sentiment;
disruptions, security breaches, or other adverse events, failures
or interruptions in, or attacks on, our information technology
systems or on the third-party vendors who perform several of our
critical processing functions; effects of critical accounting
policies and judgments, including the use of estimates in
determining the fair value of certain of our assets, which
estimates may prove to be incorrect and result in significant
declines in valuation; the effects of climate change, severe
weather events, natural disasters, pandemics, epidemics and other
public health crises, acts of war or terrorism, and other external
events on our business; and other factors described in the
Company’s latest Annual Report on Form 10-K and Quarterly Reports
on Form 10-Q and other reports filed with or furnished to the
Securities and Exchange Commission – that are available on our
website at www.ffnwb.com and on the SEC’s website at
www.sec.gov.
Any of the forward-looking statements that we
make in this Press Release and in the other public statements are
based upon management’s beliefs and assumptions at the time they
are made and may turn out to be wrong because of the inaccurate
assumptions we might make, because of the factors illustrated above
or because of other factors that we cannot foresee. Therefore,
these factors should be considered in evaluating the
forward-looking statements, and undue reliance should not be placed
on such statements. We do not undertake and specifically disclaim
any obligation to revise any forward-looking statements to reflect
the occurrence of anticipated or unanticipated events or
circumstances after the date of such statements.
For more information, contact:Joseph W. Kiley
III, President and Chief Executive OfficerRich Jacobson, Executive
Vice President and Chief Financial Officer(425) 255-4400
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