First Financial Northwest, Inc. (FFNW): History, Ownership, Mission, How It Works & Makes Money

How do you analyze a bank holding company whose story culminated in a major 2025 acquisition? First Financial Northwest, Inc. (FFNW) is no longer trading on the Nasdaq, having been delisted on April 21, 2025, following the sale of its bank subsidiary to Global Federal Credit Union for a cash consideration of $228.7 million. This move transformed a regional bank with $1.45 billion in assets (as of late 2024) into a liquidating entity. Are you aware of the mechanics behind the initial liquidating distribution of $22.00 per share declared in April 2025, and what this means for the final shareholder value?

First Financial Northwest, Inc. (FFNW) History

You need to understand the full arc of First Financial Northwest, Inc. to grasp its recent, definitive shift. The company's story is a classic community bank narrative-one that started nearly a century ago, built on local savings and home loans, and culminated in a major strategic exit in the first half of 2025.

Given Company's Founding Timeline

Year established

The institution that became First Financial Northwest, Inc. was established in 1923.

Original location

It began in Kirkland, Washington. Later, its parent company headquarters was in Renton, Washington, serving the Puget Sound Region.

Founding team members

The institution was founded by a group of local business leaders who saw a need for a community-focused financial partner in the Kirkland area. Specific names of the original founders are not widely documented.

Initial capital/funding

The precise initial capital is not available, but the model was a Savings and Loan, meaning it was initially funded by local deposits and focused on home loans.

Given Company's Evolution Milestones

Given Company's Transformative Moments

The single most transformative moment for First Financial Northwest, Inc. was its acquisition by Global Federal Credit Union in 2025. This wasn't just a merger; it was a strategic exit that fundamentally changed the entity from an operating bank holding company into a liquidating shell.

• The 2025 Acquisition: On April 11, 2025, Global Federal Credit Union acquired substantially all assets and liabilities of First Financial Northwest Bank for $228.7 million in cash. This deal effectively ended the bank's independent operation, transferring its 15 full-service banking offices and customer base in the Puget Sound Region to the credit union.
• Scale at Exit: Just before the acquisition agreement, the company was operating with total assets of $1.53 billion and deposits of $1.21 billion as of September 30, 2023. This sale was a significant move for a community-based commercial bank of that size.
• Delisting and Dissolution: Following the sale, First Financial Northwest, Inc. was delisted from the Nasdaq Global Select Market effective April 21, 2025. The holding company's remaining purpose is to wind down and dissolve, distributing the cash proceeds, less taxes and expenses, to shareholders in multiple distributions, with the first expected around April 30, 2025.

To be fair, this kind of sale is a major win for shareholders, crystallizing value at a premium. The company's century-long journey, which saw it grow from a local savings association to a publicly traded bank with a full suite of commercial services, ended not in failure, but in a strategic sale to a larger, growing financial cooperative. For a deeper dive into the company's financial standing leading up to this event, you should read Breaking Down First Financial Northwest, Inc. (FFNW) Financial Health: Key Insights for Investors.

First Financial Northwest, Inc. (FFNW) Ownership Structure

The ownership structure of First Financial Northwest, Inc. is unique as of November 2025 because the company is no longer an operating entity; it is a former bank holding company in the process of voluntary dissolution (liquidation) following the sale of its main asset, First Financial Northwest Bank, to Global Federal Credit Union.

The company's primary value now rests in the final cash distribution to shareholders, which is estimated to be in the range of $23.06 to $23.34 per share for the 2025 fiscal year, representing the net proceeds from the sale after all liabilities are settled. You've already received the bulk of this, but the final accounting is what matters now.

Given Company's Current Status

First Financial Northwest, Inc. is currently a non-operating, private entity managing its own dissolution. It was a publicly traded company on the Nasdaq Global Select Market under the ticker FFNW until its common stock was officially delisted on April 22, 2025. The core business-First Financial Northwest Bank-was acquired by Global Federal Credit Union for an all-cash consideration of $228.7 million, with the transaction closing on April 11, 2025. The holding company filed to suspend its periodic reporting obligations with the SEC around May 1, 2025.

The key event in 2025 was the initial liquidating distribution of $22.00 per share, totaling approximately $203 million, which was paid to shareholders on April 30, 2025. That initial payment represented roughly 95% of the anticipated total proceeds. The final distribution is pending the wind-down of all remaining debts and expenses under the Plan of Dissolution. If you need to review the original business model, you can check out the Mission Statement, Vision, & Core Values of First Financial Northwest, Inc. (FFNW).

Given Company's Ownership Breakdown

The table below reflects the approximate ownership structure just prior to the April 2025 delisting, before the stock transfer books closed. This breakdown is based on the approximately 9.23 million common shares outstanding at the time of the liquidation announcement. It's a snapshot of who held the chips right before the payout.

Given Company's Leadership

As the company is dissolving, the leadership team's primary role has shifted from banking operations and growth strategy to managing the orderly wind-down of the holding company and maximizing the final distribution to shareholders. It's a clean-up crew now, defintely focused on the balance sheet.

• Joseph W. Kiley III: President and Chief Executive Officer (CEO) of the dissolving holding company, responsible for overseeing the Plan of Dissolution and final settlement of liabilities.
• Richard P. Jacobson: Executive Vice President and Chief Financial Officer (CFO), managing the financial aspects of the wind-down, including tax obligations and the final liquidating distribution.
• Jason Sasena: Chief Strategy Officer of Global Federal Credit Union, who was named the acting president of the acquired bank division, 'First Financial Northwest Operated by Global Federal Credit Union,' which is the operating successor.

The remaining leadership of First Financial Northwest, Inc. is essentially the fiduciary team ensuring shareholders receive the final expected payout, which is projected to be between $1.06 and $1.34 per share after the initial distribution.

First Financial Northwest, Inc. (FFNW) Mission and Values

First Financial Northwest, Inc.'s core purpose, prior to its acquisition by Global Federal Credit Union in 2025, was centered on fostering community financial health through personalized service and local investment, a commitment proven over a century of operation.

This dedication to its Puget Sound region roots defined its cultural DNA, focusing less on abstract corporate mandates and more on tangible, long-term relationships that drove its success until the acquisition closed on April 11, 2025.

First Financial Northwest, Inc.'s Core Purpose

You need to understand that for a community bank like First Financial Northwest, Inc., their mission is often less about a stiff, formal document and more about the actions they took daily, especially in the competitive Washington market.

The company's dedication to community banking was reflected in its operational focus, which allowed it to maintain strong local ties, even as the banking industry faced significant volatility in 2023.

Official Mission Statement

While a distinct, single-sentence mission statement wasn't the primary public focus, the company's operational history and communications consistently pointed to a clear mandate: to be the trusted, local financial partner for the communities it served. This mission was executed through specific actions:

• Build long-term banking relationships with customers.
• Offer high-quality banking products and services.
• Provide exceptional customer service through local decision-making.
• Demonstrate a strong commitment to community reinvestment.

Honestly, their mission was to be a great community bank-nothing more, nothing less. This commitment is why over 80 percent of their employees donated time to local nonprofits in 2023, contributing to an outstanding Community Reinvestment Act (CRA) rating.

Vision Statement

The company's vision was less about global expansion and more about becoming the preferred, sustainable financial institution within the Puget Sound Region, a vision that guided their growth to 15 full-service banking offices before the acquisition. Their vision was essentially an actionable plan for local market dominance, focusing on:

• Fostering financial well-being and community growth.
• Ensuring long-term financial health and stability for stakeholders.
• Delivering unique and innovative solutions tailored to individual needs.

Their focus on sustainable growth is what allowed them to increase total deposits by $24.1 million during the tumultuous environment of 2023, a defintely impressive feat.

First Financial Northwest, Inc. Slogan/Tagline

The company's most recent, concise public-facing theme, which encapsulated its approach to business and service, was a simple, three-word phrase:

• unique. innovative. solutions.

This tagline reinforced their strategy of differentiating themselves from larger banks by offering tailored financial advice and services, a key selling point that led to the all-cash acquisition by Global Federal Credit Union for approximately $231.2 million in 2025. For a deeper dive into the numbers that underpinned this strategy, you should check out Breaking Down First Financial Northwest, Inc. (FFNW) Financial Health: Key Insights for Investors.

First Financial Northwest, Inc. (FFNW) How It Works

First Financial Northwest, Inc. (FFNW) no longer operates as a commercial bank holding company; its core business, First Financial Northwest Bank, was acquired by Global Federal Credit Union on April 11, 2025, for a cash consideration of $228.7 million. As of November 2025, FFNW is a non-operating entity executing a Plan of Dissolution to wind down its affairs and distribute remaining cash to shareholders.

First Financial Northwest, Inc.'s Former Product/Service Portfolio

The value FFNW delivered was through its former subsidiary, First Financial Northwest Bank, which focused on community commercial banking in the Puget Sound Region of Washington. These products are now offered by the acquiring entity, but they represent the asset base that generated the acquisition value. The bank centered its strategy on relationship-based lending and a full suite of deposit products.

First Financial Northwest, Inc.'s Operational Framework

The operational framework for First Financial Northwest, Inc. as of November 2025 is the execution of its Plan of Dissolution, not banking. The company's primary remaining function is to liquidate its remaining assets, pay final liabilities, and distribute the net cash proceeds to its shareholders.

Here's the quick math on the wind-down:

• The Bank's assets and liabilities were transferred to Global Federal Credit Union for a cash payment of $228.7 million.
• FFNW delisted its common stock from the Nasdaq Global Select Market on April 21, 2025.
• An initial liquidating distribution of $22.00 per share was paid to shareholders on April 30, 2025, representing approximately 95% of the anticipated total proceeds.
• The company estimates the total distributions to shareholders will potentially be in the $23.06 to $23.34 per share range.

The holding company is now focused on administrative and legal compliance to finalize the dissolution under Washington state law, which includes filing a Form 15 with the SEC to suspend its periodic reporting obligations. What this estimate hides is the final cost of winding up, which will determine the final distribution amount. You defintely need to track the final payout.

First Financial Northwest, Inc.'s Strategic Advantages

FFNW's past strategic advantage was its deep-rooted community focus and local market expertise in the Puget Sound region, which ultimately drove its successful exit. The acquisition itself is the final strategic outcome, maximizing shareholder value through a sale to a credit union seeking to expand its commercial footprint.

• Local Market Premium: The bank's established network of 15 full-service banking offices in Western Washington and its commercial lending relationships were highly valuable to Global Federal Credit Union, allowing FFNW's shareholders to realize a significant premium.
• Clean Exit Strategy: The all-cash Purchase and Assumption Agreement provided a clear, high-value exit for shareholders, promising a total per-share distribution of over $23.00, which is a decisive return.
• Portfolio Lender Model: The bank acted as a portfolio lender, meaning it retained and serviced its loans in-house, which provided better customer service and deeper insight into its asset quality, a key attractive feature for the acquirer.

The ultimate strategic success here was the ability to monetize the community bank's franchise value at a high price. You can get more clarity on the financial details of this transaction in Breaking Down First Financial Northwest, Inc. (FFNW) Financial Health: Key Insights for Investors.

First Financial Northwest, Inc. (FFNW) How It Makes Money

First Financial Northwest, Inc. (FFNW) primarily made its money the old-fashioned way: by operating as a traditional community bank, taking in deposits from customers and lending that capital back out at a higher rate. This model, known as spread banking, relies on the difference between the interest earned on loans and the interest paid on deposits and borrowings, which is the Net Interest Margin (NIM). The entire business model, however, was fundamentally changed in April 2025 when the company was acquired by Global Federal Credit Union for $228.7 million in cash.

Before the acquisition, the company's financial health was measured by its ability to manage this interest rate spread and generate supplementary fee income from banking services and wealth management. The reported full-year 2024 revenue was $37.6 million, reflecting the last complete year of operations under this model.

First Financial Northwest, Inc.'s Revenue Breakdown

As a bank holding company, the vast majority of First Financial Northwest's revenue came from the interest generated by its loan portfolio. This is typical for a community bank focused on commercial and residential lending in the Puget Sound region. The table below reflects the approximate breakdown of their revenue streams based on the last full fiscal year's performance before the 2025 acquisition.

The Net Interest Income (NII) stream was under pressure, declining by $5.8 million in 2024 due to higher interest expense paid on deposits and borrowings.

Business Economics

The core economic engine of First Financial Northwest was the Net Interest Margin (NIM), which represents the profitability of its lending operations. You're essentially analyzing a spread business, where the cost of funds (what they pay for deposits) must be significantly lower than the yield on assets (what they earn on loans).

• Loan Portfolio Mix: The company focused on diversifying its loan portfolio, which included commercial real estate, multifamily, one-to-four family residential, construction/land, and business loans. Diversification helps manage risk if one sector slows down.
• Funding Strategy: They attracted deposits from the general public, but also relied on wholesale funding, including borrowings from the Federal Home Loan Bank (FHLB) of Des Moines. This strategy became more expensive as interest rates rose, squeezing the NIM.
• Fee Income Stability: Noninterest income-from services like wealth management, deposit-related fees, and Bank-Owned Life Insurance (BOLI) income-provided a stable, though small, buffer against fluctuations in the NIM. It's a key part of the model because it doesn't carry the credit risk of loans.

The entire model was highly sensitive to the Federal Reserve's interest rate policy, which is defintely a challenge for any bank. For a deeper dive into the company's shareholder base before the sale, you can check out Exploring First Financial Northwest, Inc. (FFNW) Investor Profile: Who's Buying and Why?

First Financial Northwest, Inc.'s Financial Performance

The final full-year financial results before the acquisition showed a company struggling with the high-rate environment, which ultimately led to the strategic sale. The key performance indicators for the year ended December 31, 2024, paint a clear picture of the pressures on the traditional banking model.

• Net Income Plunge: Full-year 2024 net income was only $1.1 million, a sharp drop from $6.3 million in 2023. This is an 82.5% reduction.
• Squeezed Margin: The Net Interest Margin (NIM) decreased to 2.54% for the full year 2024, down from 2.82% the previous year. This shows the rising cost of deposits eroding the core lending profit.
• Asset Contraction: Total assets decreased to $1.42 billion at the end of 2024, down from $1.51 billion a year earlier, partly due to decreases in investments available-for-sale and net loans receivable.
• Credit Quality: Net loans receivable stood at $1.14 billion at the end of 2024. Despite the challenges, the bank maintained strong credit quality, with nonaccrual loans at a low 0.07% of the total portfolio in Q4 2024.
• Capital Strength: The bank was categorized as 'well capitalized' under regulatory guidelines, with a Tier 1 leverage ratio of 11.2% and a total capital ratio of 16.7% in Q4 2024. Strong capital is what allowed them to execute a clean sale.

First Financial Northwest, Inc. (FFNW) Market Position & Future Outlook

First Financial Northwest, Inc. (FFNW) is no longer an operating bank holding company; its future outlook is exclusively tied to the successful execution of its Plan of Dissolution following the sale of First Financial Northwest Bank to Global Federal Credit Union in April 2025. The company's primary goal is to maximize the final liquidating distribution to its shareholders, a process that is expected to conclude with a total payout in the range of $23.06 to $23.34 per share.

Competitive Landscape (Liquidation Focus)

In a traditional sense, FFNW has no competitive landscape, as it ceased banking operations and delisted from Nasdaq on April 21, 2025. However, for shareholders, the effective competition is the market's expectation of the final liquidation value versus the risk of retained liabilities. The company's core advantage is the high recovery rate already achieved through its initial distribution.

The initial liquidating distribution of $22.00 per share, paid on April 30, 2025, represented approximately 95% of the anticipated total proceeds. This is a strong, defintely front-loaded return for investors who held through the transaction.

Opportunities & Challenges

The opportunities and risks are now entirely administrative and financial, centered on the wind-down of the corporate entity under Washington state law. The focus shifts from generating revenue to minimizing final costs and resolving contingent liabilities (potential future obligations) efficiently.

Industry Position

First Financial Northwest, Inc. has effectively exited the financial services industry, transitioning from a regional bank holding company to a non-operating entity focused solely on shareholder liquidation. The company is now positioned as a case study in successful asset monetization and dissolution.

• The core business-First Financial Northwest Bank-is now a division of Global Federal Credit Union, ensuring continuity for former customers.
• FFNW's formal status is a liquidating entity under a Plan of Dissolution, having filed to suspend its periodic reporting obligations with the SEC around May 1, 2025.
• The total estimated shareholder return of $23.06 to $23.34 per share provides a clear benchmark for evaluating the transaction's success.

For a deeper dive into the financial metrics leading up to the sale, you should review Breaking Down First Financial Northwest, Inc. (FFNW) Financial Health: Key Insights for Investors.