First Financial Northwest Inc. reported that its Board of Directors declared a cash dividend of $0.085 per share on its common stock on October 21, 2009. The dividend will be paid November 18, 2009, to shareholders of record as of the close of business on November 4, 2009.

First Financial Northwest, Inc. reported unaudited consolidated earnings results for the third quarter and nine months ended September 30, 2009. For the quarter, the company reported net loss of $1.7 million, or $0.09 per diluted share, as compared to net income of $955,000, or $0.04 per diluted share for the quarter ended September 30, 2008. Net loss for the third quarter of 2009 compared to net income for the third quarter of 2008 was primarily the result of a $4.3 million increase to the provision for loan losses, and a $1.1 million increase in noninterest expense offset by a $3.7 million decrease in federal income tax expense. The company's net interest income decreased to $7.6 million, as compared to $8.3 million for the same period in 2008. Loss before provision for federal income taxes was $5 million compared to income before provision for federal income taxes of $1.4 million for the same quarter a year ago. Total interest income was $16.2 million compared to $17.3 million for the same quarter a year ago. Loss on assets was 0.50% and loss on equity of 2.61% compared to return on assets of 0.31% and return on equity of 1.22% for the same quarter a year ago. Book value per common share was $12.52 compared to $13.39 per share for the same quarter a year ago. For the nine months ended September 30, 2009, net loss was $28.5 million or $1.50 per diluted share as compared to net income of $7.6 million, or $0.36 per diluted share for the same period in 2008. For the nine months of 2009, compared to the same period in 2008 results were primarily reduced by an increase of $23.7 million in the provision for loan losses, an increase in noninterest expense of $20.3 million which included a goodwill impairment charge of $14.2 million recorded in the second quarter of 2009, partially offset by a $10.7 million decrease in federal income tax expense. Net interest income was $22.8 million compared to $24.6 million for the same period in 2008. Loss before provision for federal income taxes was $35.4 million compared to income before provision for federal income taxes of $11.4 million for the same period a year ago. Total interest income was $48.7 million compared to $51.7 million for the same period a year ago.

First Financial Northwest, Inc. reported un-audited consolidated earnings results for the second quarter and six months ended June 30, 2009. Net loss for the second quarter ended June 30, 2009 was $28.0 million, or $1.49 per diluted share, as compared to net income of $2.2 million, or $0.10 per diluted share for the quarter ended June 30, 2008. The second quarter results reflect the continued deteriorating economic conditions in the Pacific Northwest, which have resulted in unprecedented and continued declines in employment and real estate valuations for the region. This has negatively affected nearly all home builders, developers and businesses related to the real estate industry. Net interest income for the quarter ended June 30, 2009 decreased to $7.0 million, as compared to $8.1 million for the same period in 2008. Total interest income for the second quarter of 2009 decreased $1.4 million, or 8.0%, to $15.7 million from $17.1 million for the quarter ended June 30, 2008. This decline was partially offset by a decrease in interest expense of $297,000 for the three months ended June 30, 2009 from the comparable quarter in 2008. The decline in interest income was primarily the result of $2.2 million in foregone interest during the second quarter of 2009 and to a lesser extent the general decline in market interest rates. This decrease was partially offset by an increase in interest income due to the rise in average interest-earning assets during the quarter as compared to the second quarter of 2008. The yield on these average assets declined to 5.04% during the quarter ended June 30, 2009 from 5.94% during the same quarter in 2008. Return on assets was negative at 8.64% against positive 0.74% of prior year period. Return on equity was negative at 39.54% compared to positive 2.88% of previous year period. Book value per common share was $12.48 compared to $13.74 of previous year period. For the six months ended June 30, 2009, net loss was $26.801 million or $1.41 basic and diluted per share compared to net income of $6.694 million or $0.32 basic and diluted per share for the same period of last year. Net interest income for the six months ended June 30, 2009 was $15.2 million compared to $16.2 million for the six months ended June 30, 2008. Total interest income for the first six months of 2009 and 2008 was $32.5 million and $34.4 million, respectively. The company's foregone interest for the six months ended June 30, 2009 totaled $3.3 million as compared to $641,000 for the same period in 2008. For the first half of 2009, average interest-earning assets increased $81.2 million with an average yield of 5.32% compared to 6.03% for the same period in 2008. At June 30, 2009, troubled debt restructured loans totaled $38.2 million, an increase of $15.9 million from $22.3 million at March 31, 2009. Loss before provision for federal income taxes was $30.456 million compared to income of $9.979 million of prior year period.