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Net interest income, before the provision for loan losses, was $1.05 million for the second quarter of 2024, compared to $1.11 million in the second quarter of 2023. The decrease in net interest income year-over-year was primarily due to the increase in interest expense on deposits and other borrowings resulting from the higher interest rate environment. For the first six months of 2024, net interest income was $2.10 million, compared to $2.22 million for the first six months of 2023.

“As anticipated, our net interest margin showed signs of stabilizing during the second quarter, expanding three basis points compared to the preceding quarter. The growth in our yield on earning assets more than offset the increase in cost of funds,” said Darrow. “Our deposit mix is also improving, which is helping to stabilize our net interest margin.” The Company’s net interest margin was 2.45% for the second quarter of 2024, compared to 2.42% for the preceding quarter, and 2.51% for the second quarter of 2023. For the first six months of 2024, the net interest margin was 2.42%, compared to 2.56% for the first six months of 2023.

Total non-interest income was $79 thousand for the second quarter of 2024, compared to $130 thousand for the second quarter a year ago. The decrease compared to the year ago quarter was primarily due to higher referral fee income during the second quarter of 2023, compared to the second quarter of 2024. For the first six months of 2024, non-interest income was $152 thousand, compared to $260 thousand for the first six months of 2023.

Total noninterest expense was $1.21 million for the second quarter of 2024, a decrease of $55 thousand, or 4%, from the second quarter a year ago. Compensation and benefits costs decreased by $47 thousand, or 6%, over the year ago quarter, while occupancy costs decreased by $62 thousand, or 39% from the same quarter a year ago. Year-to-date, total noninterest expense decreased $106 thousand, or 4%, to $2.36 million, over the same period in 2023.

Capital ratios continue to exceed regulatory requirements, with a total risk-based capital ratio at 15.26% at quarter end, substantially above well-capitalized regulatory requirements. The tangible book value per share increased to $7.79 at quarter end, compared to $7.68 a year earlier.

“Our strong deposit franchise, abundant capital levels, and pristine credit quality put us in an excellent position to continue to expand our client base,” said Darrow. “Our community banking model is being well received in the markets that we serve, and we will continue to work to create value for our clients, shareholders and communities.”

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.