| Parent Company Only Financial Statements |
Parent Company Only Financial Statements
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, | | 2016 | | 2015 | | (In thousands) | Assets | | | | Cash and cash equivalents | $ | 106 |
| | $ | 27 |
| Interest-bearing deposits | 13,299 |
| | 50,311 |
| Investment in subsidiaries | 123,267 |
| | 117,223 |
| Receivable from subsidiaries | 1,558 |
| | 3,178 |
| Deferred tax assets, net | — |
| | 23 |
| Other assets | 102 |
| | 106 |
| Total assets | $ | 138,332 |
| | $ | 170,868 |
| | | | | Liabilities and Stockholders’ Equity | |
| | |
| Liabilities: | |
| | |
| Payable to subsidiaries | $ | 58 |
| | $ | 84 |
| Deferred tax liability, net | 17 |
| | — |
| Other liabilities | 132 |
| | 111 |
| Total liabilities | 207 |
| | 195 |
| Stockholders’ equity | 138,125 |
| | 170,673 |
| Total liabilities and stockholders’ equity | $ | 138,332 |
| | $ | 170,868 |
|
FIRST FINANCIAL NORTHWEST, INC. Condensed Income Statements | | | | | | | | | | | | | | Year Ended December 31, | | 2016 | | 2015 | | 2014 | | (In thousands) | Operating income: | | | | | | Interest income: | | | | | | Interest-bearing deposits with banks | $ | 92 |
| | $ | 143 |
| | $ | 26 |
| Other income | — |
| | 2 |
| | 8 |
| Total operating income | 92 |
| | 145 |
| | 34 |
| Operating expenses: | |
| | |
| | |
| Other expenses | 1,913 |
| | 1,440 |
| | 1,475 |
| Total operating expenses | 1,913 |
| | 1,440 |
| | 1,475 |
| Loss before provision for federal income taxes and equity in undistributed earnings of subsidiaries | (1,821 | ) | | (1,295 | ) | | (1,441 | ) | Federal income tax benefit | (701 | ) | | (601 | ) | | (573 | ) | Loss before equity in undistributed loss of subsidiaries | (1,120 | ) | | (694 | ) | | (868 | ) | Equity in undistributed earnings of subsidiaries | 10,012 |
| | 9,854 |
| | 11,555 |
| Net income | $ | 8,892 |
| | $ | 9,160 |
| | $ | 10,687 |
|
FIRST FINANCIAL NORTHWEST, INC. Condensed Statements of Cash Flows | | | | | | | | | | | | | | Year Ended December 31, | | 2016 | | 2015 | | 2014 | | (In thousands) | Cash flows from operating activities: | | | | | | Net income | $ | 8,892 |
| | $ | 9,160 |
| | $ | 10,687 |
| Adjustments to reconcile net income to net cash from operating | | | | | | activities: | | | | | |
| Equity in undistributed earnings of subsidiaries | (10,012 | ) | | (9,854 | ) | | (11,555 | ) | Dividends received from subsidiary | 4,417 |
| | 6,785 |
| | 72,300 |
| ESOP, stock options, and restricted stock compensation | 27 |
| | — |
| | 13 |
| Change in deferred tax assets, net | 40 |
| | 1,101 |
| | (540 | ) | Change in receivables from subsidiaries | 1,578 |
| | (1,608 | ) | | 8 |
| Change in payables to subsidiaries | (26 | ) | | (32 | ) | | 50 |
| Change in other assets | 4 |
| | (55 | ) | | (16 | ) | Changes in other liabilities | 21 |
| | (8 | ) | | (130 | ) | Net cash provided by operating activities | 4,941 |
| | 5,489 |
| | 70,817 |
| Cash flows from investing activities: | |
| | |
| | |
| Investments in subsidiaries | — |
| | — |
| | — |
| ESOP loan repayment | 1,171 |
| | 1,115 |
| | 1,054 |
| Net cash provided in investing activities | 1,171 |
| | 1,115 |
| | 1,054 |
| Cash flows from financing activities: | |
| | |
| | |
| Proceeds from exercise of stock options | 298 |
| | 935 |
| | 3,611 |
| Proceeds for vested awards | 370 |
| | 282 |
| | 282 |
| Net share settlement of stock awards | (98 | ) | | — |
| | — |
| Repurchase and retirement of common stock | (40,812 | ) | | (18,717 | ) | | (17,566 | ) | Dividends paid | (2,803 | ) | | (3,237 | ) | | (2,938 | ) | Net cash used by financing activities | (43,045 | ) | | (20,737 | ) | | (16,611 | ) | Net (decrease) increase in cash | (36,933 | ) | | (14,133 | ) | | 55,260 |
| Cash and cash equivalents at beginning of year | 50,338 |
| | 64,471 |
| | 9,211 |
| Cash and cash equivalents at end of year | $ | 13,405 |
| | $ | 50,338 |
| | $ | 64,471 |
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