May 20 - First Financial Northwest Inc. (Nasdaq: FFNW), the holding company for First Savings Bank Northwest, has announced that its board of directors has authorized the repurchase of as many as 1,880,517 shares of the company's common stock, or 10 percent of the company's outstanding shares. The shares may be purchased in the open market or in privately negotiated transactions from time to time over a six month period, depending upon market conditions and other factors.
"We are very pleased that the Company is now able to reinstate the payment of a quarterly cash dividend and to implement a stock repurchase program," said Joseph W. Kiley III, president and CEO of the bank. "The authorization of the stock repurchase program and payment of a cash dividend reflects our commitment to increasing shareholder value. Of course, any future dividends will be dependent on an evaluation of our results of operations, capital position and needs, and the general economic environment. In addition, given the recent positive developments in net income, we are conducting an extensive evaluation of the reserve for our deferred tax asset to determine if present circumstances make it more likely than not that this reserve can be reduced because a significant portion of our deferred tax asset is now realizable. As of March 31, 2013, our consolidated balance sheet included gross deferred tax assets of $20.4 million and the deferred tax asset valuation allowance of $16.5 million. In making the determination whether our deferred tax asset is more likely than not to be realized, we will evaluate all available positive and negative evidence including the possibility of future reversals of existing taxable temporary differences, projected future taxable income, tax planning strategies and our recent positive financial results. Until this evaluation is complete, we cannot ascertain the amount of the reduction in the valuation allowance that may occur this quarter, if any."
First Financial Northwest Inc. is the parent company of First Savings Bank Northwest, a Washington-chartered stock savings bank headquartered in Renton, Wash., serving the Puget Sound Region through its full-service banking office. We are a part of the ABA NASDAQ Community Bank Index as well as the Russell 2000 and 3000 Indices. For additional information about us, please visit www.fsbnw.com and click on the "Investor Relations" section.