RENTON, WA—In a decisive move, shareholders of First Financial Northwest , Inc. (NASDAQ:FFNW) voted to approve a major asset sale and the subsequent voluntary dissolution of the company. The special meeting held on July 19, 2024, saw the passage of two critical proposals that will reshape the future of the Renton-based state commercial bank.
The first proposal, which required at least two-thirds of the outstanding shares to vote in favor, received overwhelming support with 73.5% of shareholders approving the Purchase and Assumption Agreement dated January 10, 2024. According to the agreement, Global Federal Credit Union will acquire substantially all of the assets and assume nearly all of the liabilities of First Financial Northwest Bank, including deposit liabilities.
The second proposal, also requiring a two-thirds majority, was similarly approved with 73.5% of shareholders voting for the voluntary dissolution of the company. After the asset sale is completed, First Financial Northwest, Inc. will proceed to wind up its affairs, distribute its remaining net assets to shareholders, and dissolve under applicable Washington law.
Additionally, an advisory vote on executive compensation related to the asset sale was held, with 64.7% of shares present at the meeting voting in favor. This non-binding vote signals shareholder support for the compensation that may be paid to certain executive officers in connection with the asset sale.
The special meeting did not require an adjournment or postponement to solicit additional proxies as sufficient votes were already in place to approve the asset sale and company dissolution proposals. With the passing of these proposals, First Financial Northwest, Inc. is set to embark on the final stages of its strategic realignment.
This significant corporate restructuring follows the January 10, 2024, agreement and is based on information from a press release statement. The company has not announced any further details on the timeline for the completion of the asset sale or the dissolution process. Shareholders of First Financial Northwest, Inc. can expect to receive further communication regarding the distribution of remaining net assets in due course.
In other recent news, First Financial Northwest, Inc., the parent company of First Financial Northwest Bank, has declared a quarterly cash dividend of $0.13 per share on its common stock. This dividend will be payable to shareholders on record as of June 7, 2024. In addition to this, the company is in the midst of a pending transaction with Global Federal Credit Union, where most of the bank's assets and liabilities will be transferred. This agreement is currently subject to various conditions, including regulatory and shareholder approvals. The company's forward-looking statements indicate expectations of the business environment and projections of future performance. However, these statements involve risks and uncertainties, and actual results may differ materially from those currently expected. Factors that could impact results include potential changes in the agreement, regulatory approvals, and various economic and legislative conditions.
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