PORT ANGELES, Wash., Jan. 29, 2026 (GLOBE NEWSWIRE) -- First Northwest Bancorp (NASDAQ:FNWB) ("First Northwest" or the "Company"), the holding company for First Fed Bank ("First Fed" or the "Bank"), today reported net income of $382,000 for the fourth quarter of 2025, compared to net income of $802,000 for the third quarter of 2025 and a net loss of $2.8 million for the fourth quarter of 2024. Basic and diluted income per share were $0.04 for the fourth quarter of 2025, compared to basic and diluted income per share of $0.09 for the third quarter of 2025 and basic and diluted loss per share of $0.32 for the fourth quarter of 2024.
Management Outlook:
"As we enter 2026, we are building on momentum that began in 2025," said Curt Queyrouze, President and Chief Executive Officer of First Northwest and First Fed. "Our focus is clear: to position First Fed as a high-performing bank by leveraging data to operate more efficiently, strengthening our core deposit base and generating high-quality, relationship-based loan growth. I am encouraged by the progress our team has made and believe we are well prepared for the year ahead. The First Fed team remains committed to serving our communities and delivering exceptional service."
Other Announcements:
First Fed will permanently close its Bellevue branch, located at 1100 Bellevue Way Northeast in Bellevue, Washington, on April 30, 2026. This decision reflects the Bank's commitment to adapt to ongoing shifts in customer behavior toward digital banking services. "Customer preferences continue to evolve, and we are seeing that, for this location, the use of online and mobile banking services continues to become more prevalent than in-person visits," said Curt Queyrouze. "Closing this branch allows us to focus on streamlined delivery channels that are convenient, secure and bring innovative banking solutions to our markets." This closure is expected to reduce future annual operating expenses by approximately $900,000. First Fed purchased the Bellevue branch from Sterling Bank and Trust, FSB in July 2021. Bellevue branch customers will continue to have access to their accounts through the Bank's online and mobile platforms, ATM network and branches. First Fed remains committed to serving its communities and looks forward to continuing to provide exceptional banking experiences through multiple channels.
The Board of Directors of First Northwest did not declare a dividend for the current quarter. This decision reflects the Company's disciplined approach to capital management and its commitment to maintaining a strong balance sheet. The Board will continue to evaluate future dividend decisions in alignment with Company's long-term strategic objectives.
Fourth Quarter Insights:
| • | Net interest margin increased to 3.00% for the current quarter compared to 2.91% in the third quarter of 2025, primarily as a result of a decrease in the rate paid on interest-bearing liabilities. | |
| • | Cost of total deposits dropped to 2.12% for the current quarter from 2.20% in the preceding quarter as higher-rate certificates of deposit ("CDs") matured and rates paid on selected deposit products were lowered to align with the recent rate cuts implemented by the Federal Reserve. | |
| • | First Fed risk-based capital ratios remained relatively stable at 13.6% for the current quarter compared to 13.7% in the third quarter of 2025, and 13.6% for the fourth quarter of 2024. | |
| • | Brokered deposits decreased $17.9 million, or 17.1%, to $86.5 million at December 31, 2025 from $104.4 million at September 30, 2025, and decreased $96.4 million, or 52.7%, from $182.9 million at December 31, 2024. | |
| • | Advances increased $48.5 million, or 21.6%, to $273.5 million at December 31, 2025 from $225.0 million at September 30, 2025, partially offsetting the $54.2 million decrease in deposit balances. | |
| • | A provision for credit losses on loans of $466,000 was recorded in the fourth quarter of 2025, compared to a recapture of $620,000 for the preceding quarter and a provision for credit losses on loans of $3.8 million for the fourth quarter of 2024. | |
Other significant events:
| • | The Bank has continued to vigorously defend the previously disclosed legal proceedings, filing its Answer and Affirmative Defenses in the Socotra REIT matter and commencing initial discovery in the 3|5|2 Capital matter. | |
| • | The reimbursement from the Bank's insurance carrier discussed in the Company's previous Quarterly Report on Form 10-Q to partially offset costs associated with ongoing legal matters was received in the current quarter. | |
Selected Quarterly Financial Ratios:
| As of or For the Quarter Ended | As of or For the Year Ended December 31, | |||||||||||||||||||||||||||
| December 31, 2025 | September 30, 2025 | June 30, 2025 | March 31, 2025 | December 31, 2024 | 2025 | 2024 | ||||||||||||||||||||||
| Performance ratios:(1) | ||||||||||||||||||||||||||||
| Return on average assets | 0.07 | % | 0.15 | % | 0.68 | % | -1.69 | % | -0.51 | % | -0.20 | % | -0.30 | % | ||||||||||||||
| Adjusted PPNR return on average assets(2) | 0.09 | 0.06 | 0.39 | 0.27 | 0.26 | 0.20 | 0.18 | |||||||||||||||||||||
| Return on average equity | 0.96 | 2.10 | 10.00 | -23.42 | -6.92 | -2.74 | -4.09 | |||||||||||||||||||||
| Net interest margin(3) | 3.00 | 2.91 | 2.83 | 2.76 | 2.73 | 2.88 | 2.74 | |||||||||||||||||||||
| Efficiency ratio(4) | 92.0 | 104.9 | 78.0 | 113.5 | 92.2 | 97.3 | 87.0 | |||||||||||||||||||||
| Equity to total assets | 7.46 | 7.32 | 6.82 | 6.75 | 6.89 | 7.46 | 6.89 | |||||||||||||||||||||
| Book value per common share | $ | 16.61 | $ | 16.33 | $ | 15.85 | $ | 15.52 | $ | 16.45 | $ | 16.61 | $ | 16.45 | ||||||||||||||
| Tangible performance ratios:(1) | ||||||||||||||||||||||||||||
| Tangible common equity to tangible assets(2) | 7.40 | % | 7.26 | % | 6.76 | % | 6.68 | % | 6.83 | % | 7.40 | % | 6.83 | % | ||||||||||||||
| Return on average tangible common equity(2) | 0.97 | 2.12 | 10.10 | -23.65 | -6.99 | -2.76 | -4.13 | |||||||||||||||||||||
| Tangible book value per common share(2) | $ | 16.47 | $ | 16.18 | $ | 15.70 | $ | 15.36 | $ | 16.29 | $ | 16.47 | $ | 16.29 | ||||||||||||||
| Capital ratios (First Fed):(5) | ||||||||||||||||||||||||||||
| Tier 1 leverage | 9.5 | % | 9.3 | % | 9.1 | % | 9.0 | % | 9.4 | % | 9.5 | % | 9.4 | % | ||||||||||||||
| Common equity Tier 1 | 12.5 | 12.7 | 12.0 | 12.1 | 12.4 | 12.5 | 12.4 | |||||||||||||||||||||
| Total risk-based | 13.6 | 13.7 | 13.1 | 13.4 | 13.6 | 13.6 | 13.6 | |||||||||||||||||||||
| (1 | ) | Performance ratios are annualized, where appropriate. |
| (2 | ) | See reconciliation of Non-GAAP Financial Measures later in this release. |
| (3 | ) | Net interest income divided by average interest-earning assets. |
| (4 | ) | Total noninterest expense as a percentage of net interest income and total other noninterest income. |
| (5 | ) | Current period capital ratios are preliminary and subject to finalization of the FDIC Call Report. |
Adjusted Pre-tax, Pre-Provision Net Revenue (1)
Adjusted PPNR for the fourth quarter of 2025 increased $138,000 to $478,000, compared to $340,000 for the preceding quarter, and decreased $952,000 from $1.4 million in the fourth quarter one year ago.
| For the Quarter Ended | For the Year Ended | |||||||||||||||||||||||||||
| (Dollars in thousands) | December 31, 2025 | September 30, 2025 | June 30, 2025 | March 31, 2025 | December 31, 2024 | December 31, 2025 | December 31, 2024 | |||||||||||||||||||||
| Net interest income (GAAP) | $ | 14,690 | $ | 14,569 | $ | 14,193 | $ | 13,847 | $ | 14,137 | $ | 57,299 | $ | 56,320 | ||||||||||||||
| Total noninterest income (GAAP) | 3,690 | 2,002 | 2,170 | 3,777 | 1,300 | 11,639 | 12,614 | |||||||||||||||||||||
| Total revenue (GAAP) | 18,380 | 16,571 | 16,363 | 17,624 | 15,437 | 68,938 | 68,934 | |||||||||||||||||||||
| Total noninterest expense (GAAP) | 16,902 | 17,390 | 12,765 | 20,000 | 14,233 | 67,057 | 59,993 | |||||||||||||||||||||
| PPNR (Non-GAAP)(1) | 1,478 | (819 | ) | 3,598 | (2,376 | ) | 1,204 | 1,881 | 8,941 | |||||||||||||||||||
| Less: selected nonrecurring adjustments to PPNR (Non-GAAP) | 1,000 | (1,159 | ) | 1,513 | (3,845 | ) | (226 | ) | (2,473 | ) | 4,872 | |||||||||||||||||
| Adjusted PPNR (Non-GAAP)(1) | $ | 478 | $ | 340 | $ | 2,085 | $ | 1,469 | $ | 1,430 | $ | 4,354 | $ | 4,069 | ||||||||||||||
| (1 | ) | See reconciliation of Non-GAAP Financial Measures later in this release for additional information and detail. |
| • | Total interest income decreased $773,000 to $26.1 million for the fourth quarter of 2025, compared to $26.9 million for the preceding quarter, and decreased $2.1 million compared to $28.2 million in the fourth quarter of 2024. Interest income decreased in the fourth quarter of 2025 primarily due to decreased average balances of interest-earning assets. Average real estate and commercial business loan balances decreased while average consumer loan balances increased over the preceding quarter. The yield on interest-earning assets decreased by 3 basis points to 5.34% compared to the preceding quarter, while the effective federal funds rate decreased 45 basis points to 3.64% during the same period. | |
| • | Total interest expense decreased $894,000 to $11.5 million for the fourth quarter of 2025, compared to $12.3 million for the preceding quarter, and decreased $2.6 million compared to $14.1 million in the fourth quarter of 2024. Interest expense decreased in the fourth quarter of 2025 primarily due to a reduced volumes of brokered CDs and decreases in interest paid on customer CDs, brokered CDs, money market and demand deposits. The current quarter decreases were partially offset by increases in the average balances and interest paid on savings accounts. Reduced volumes and lower rates paid on borrowings contributed to lower interest expense during the current quarter. | |
| • | Net interest margin increased to 3.00% for the fourth quarter of 2025, from 2.91% for the preceding quarter and 2.73% for the fourth quarter of 2024, marking six consecutive quarters of improvement for a total increase of 30 basis points over that period. | |
| • | Noninterest income increased $1.7 million to $3.7 million for the fourth quarter of 2025, from $2.0 million for the preceding quarter. A $1.7 million reimbursement from the Bank's insurance carrier to offset expenses paid in previous quarters associated with ongoing legal matters was recorded in other income during the current quarter. | |
| • | Noninterest expense decreased $488,000 to $16.9 million for the fourth quarter of 2025, compared to $17.4 million for the preceding quarter. Legal fees recorded in professional fees decreased $922,000 from the preceding quarter, which included higher fees related to the ongoing legal matters previously disclosed. The decrease in legal fees was partially offset by $681,000 of expenses related to the upcoming branch closure recorded in compensation and other expense. | |
Allowance for Credit Losses on Loans ("ACLL") and Credit Quality
The allowance for credit losses on loans ("ACLL") increased $784,000 to $17.0 million at December 31, 2025, from $16.2 million at September 30, 2025. The ACLL as a percentage of total loans was 1.04% at December 31, 2025, an increase from 1.00% at September 30, 2025, and a decrease from 1.21% one year earlier. A $466,000 provision expense for the quarter ended December 31, 2025, was the result of $318,000 in net recoveries, partially offset by a $636,000 increase in the overall pooled loan reserve, driven by increased loss factors applied to commercial real estate and commercial business loans, and increased reserves on individually analyzed loans totaling $151,000.
Nonperforming loans increased $9.2 million to $22.6 million at December 31, 2025, from $13.4 million at September 30, 2025. Current quarter activity included transition into nonaccrual status of a $6.3 million commercial real estate loan and four commercial business loans totaling $4.7 million. The recorded balances of the commercial business loans are fully supported by collateral and SBA guarantees. A $1.0 million charge-off on a commercial construction loan that was already on nonaccrual status partially offset the loans that transitioned into nonaccrual status during the quarter. ACLL to nonperforming loans decreased to 75% at December 31, 2025, from 121% at September 30, 2025, and increased from 67% at December 31, 2024. This ratio decreased primarily due to the higher balance of nonperforming loan balances compared to the preceding quarter.
Classified loans decreased $1.1 million to $22.8 million at December 31, 2025, from $23.9 million at September 30, 2025, primarily due to net recoveries on previously charged-off loans totaling $436,000 partially offset by downgrades of commercial business loans totaling $924,000 and other consumer loans totaling $429,000. Three collateral-dependent loans totaling $14.9 million account for 65% of the classified loan balance at December 31, 2025. The Bank has exercised legal remedies, including the appointment of a third-party receiver and foreclosure actions, to liquidate the underlying collateral to satisfy the real estate loans in the second largest of these collateral-dependent relationships.
| For the Quarter Ended | ||||||||||||||||||||
| ACLL ($ in thousands) | December 31, 2025 | September 30, 2025 | June 30, 2025 | March 31, 2025 | December 31, 2024 | |||||||||||||||
| Balance at beginning of period | $ | 16,203 | $ | 18,345 | $ | 20,569 | $ | 20,449 | $ | 21,970 | ||||||||||
| Charge-offs: | ||||||||||||||||||||
| Commercial real estate | (329 | ) | (656 | ) | (15 | ) | (5,571 | ) | — | |||||||||||
| Construction and land | (1,027 | ) | (483 | ) | — | (374 | ) | (411 | ) | |||||||||||
| Auto and other consumer | (123 | ) | (106 | ) | (273 | ) | (243 | ) | (364 | ) | ||||||||||
| Commercial business | (964 | ) | (1,005 | ) | (2,823 | ) | (1,513 | ) | (4,596 | ) | ||||||||||
| Total charge-offs | (2,443 | ) | (2,250 | ) | (3,111 | ) | (7,701 | ) | (5,371 | ) | ||||||||||
| Recoveries: | ||||||||||||||||||||
| Commercial real estate | — | 6 | 20 | 6 | 2 | |||||||||||||||
| Construction and land | — | — | 5 | — | — | |||||||||||||||
| Auto and other consumer | 34 | 47 | 74 | 43 | 52 | |||||||||||||||
| Commercial business | 2,727 | 675 | 1,084 | 2 | 36 | |||||||||||||||
| Total recoveries | 2,761 | 728 | 1,183 | 51 | 90 | |||||||||||||||
| Net loan recoveries (charge-offs) | 318 | (1,522 | ) | (1,928 | ) | (7,650 | ) | (5,281 | ) | |||||||||||
| Provision for (recapture of) credit losses | 466 | (620 | ) | (296 | ) | 7,770 | 3,760 | |||||||||||||
| Balance at end of period | $ | 16,987 | $ | 16,203 | $ | 18,345 | $ | 20,569 | $ | 20,449 | ||||||||||
| Average total loans | $ | 1,622,476 | $ | 1,650,340 | $ | 1,658,723 | $ | 1,662,095 | $ | 1,708,232 | ||||||||||
| Annualized net (recoveries) charge-offs to average outstanding loans | -0.08 | % | 0.37 | % | 0.47 | % | 1.87 | % | 1.23 | % | ||||||||||
| Asset Quality ($ in thousands) | December 31, 2025 | September 30, 2025 | June 30, 2025 | March 31, 2025 | December 31, 2024 | |||||||||||||||
| Nonaccrual loans: | ||||||||||||||||||||
| One-to-four family | $ | 2,272 | $ | 2,345 | $ | 2,274 | $ | 1,404 | $ | 1,477 | ||||||||||
| Commercial real estate | 9,745 | 3,439 | 4,095 | 4 | 5,598 | |||||||||||||||
| Construction and land | 5,146 | 6,037 | 13,063 | 15,280 | 19,544 | |||||||||||||||
| Home equity | 53 | 9 | 10 | 54 | 55 | |||||||||||||||
| Auto and other consumer | 1,086 | 1,072 | 410 | 710 | 700 | |||||||||||||||
| Commercial business | 4,293 | 470 | 514 | 2,903 | 3,141 | |||||||||||||||
| Total nonaccrual loans | 22,595 | 13,372 | 20,366 | 20,355 | 30,515 | |||||||||||||||
| Other real estate owned | 1,380 | 1,377 | 1,297 | — | — | |||||||||||||||
| Total nonperforming assets | $ | 23,975 | $ | 14,749 | $ | 21,663 | $ | 20,355 | $ | 30,515 | ||||||||||
| Nonaccrual loans as a % of total loans(1) | 1.39 | % | 0.82 | % | 1.22 | % | 1.23 | % | 1.80 | % | ||||||||||
| Nonperforming assets as a % of total assets(2) | 1.14 | 0.70 | 0.99 | 0.94 | 1.37 | |||||||||||||||
| ACLL as a % of total loans | 1.04 | 1.00 | 1.10 | 1.24 | 1.21 | |||||||||||||||
| ACLL as a % of nonaccrual loans | 75.18 | 121.17 | 90.08 | 101.05 | 67.01 | |||||||||||||||
| Total past due loans to total loans | 1.21 | 0.88 | 1.17 | 1.36 | 1.98 | |||||||||||||||
| (1 | ) | Nonperforming loans consists of nonaccruing loans and accruing loans more than 90 days past due. |
| (2 | ) | Nonperforming assets consists of nonperforming loans (which include nonaccruing loans and accruing loans more than 90 days past due), real estate owned and repossessed assets. |
Financial Condition and Capital
Investment securities decreased $12.3 million, or 4.4%, to $270.3 million at December 31, 2025, compared to $282.6 million three months earlier, and decreased $70.0 million compared to $340.3 million at December 31, 2024. Maturities totaling $8.8 million and regular principal payments totaling $5.9 million were partially offset by a $2.4 million reduction of net unrealized losses during the fourth quarter of 2025. The estimated average life of the securities portfolio was approximately 6.5 years at December 31, 2025, 6.9 years at the preceding quarter end and 6.9 years at the end of the fourth quarter of 2024. The effective duration of the portfolio was approximately 4.6 years at December 31, 2025, compared to 4.8 years at the preceding quarter end and 3.9 years at the end of the fourth quarter of 2024.
| Investment Securities ($ in thousands) | December 31, 2025 | September 30, 2025 | December 31, 2024 | Three Month % Change | One Year % Change | |||||||||||||||
| Available for Sale at Fair Value | ||||||||||||||||||||
| Municipal bonds | $ | 80,252 | $ | 79,621 | $ | 77,876 | 0.8 | % | 3.1 | % | ||||||||||
| U.S. government agency issued asset-backed securities (ABS agency) | 11,943 | 12,169 | 12,876 | -1.9 | -7.2 | |||||||||||||||
| Corporate issued asset-backed securities (ABS corporate) | 7,961 | 9,881 | 16,122 | -19.4 | -50.6 | |||||||||||||||
| Corporate issued debt securities (Corporate debt) | 38,801 | 43,339 | 54,491 | -10.5 | -28.8 | |||||||||||||||
| U.S. Small Business Administration securities (SBA) | 6,293 | 6,977 | 8,666 | -9.8 | -27.4 | |||||||||||||||
| Mortgage-backed securities: | ||||||||||||||||||||
| U.S. government agency issued mortgage-backed securities (MBS agency) | 91,656 | 94,203 | 98,697 | -2.7 | -7.1 | |||||||||||||||
| Non-agency issued mortgage-backed securities (MBS non-agency) | 33,404 | 36,418 | 71,616 | -8.3 | -53.4 | |||||||||||||||
| Total securities available for sale | $ | 270,310 | $ | 282,608 | $ | 340,344 | -4.4 | -20.6 | ||||||||||||
Net loans, excluding loans held for sale, increased $4.2 million, or 0.3%, to $1.6 billion at December 31, 2025, from $1.6 billion at September 30, 2025, and decreased $63.2 million, or 3.8%, from $1.7 billion one year prior. Construction loans that converted into fully amortizing loans during the quarter totaled $9.0 million. New loan funding totaling $102.6 million and draws on existing loans totaling $19.5 million outpaced loan payoffs of $78.1 million, regular payments of $36.8 million and charge-offs totaling $2.4 million.
| Loans ($ in thousands) | December 31, 2025 | September 30, 2025 | December 31, 2024 | Three Month % Change | One Year % Change | |||||||||||||||
| Real Estate: | ||||||||||||||||||||
| One-to-four family | $ | 376,731 | $ | 382,486 | $ | 395,315 | -1.5 | % | -4.7 | % | ||||||||||
| Multi-family | 288,529 | 296,321 | 332,596 | -2.6 | -13.2 | |||||||||||||||
| Commercial real estate | 402,683 | 396,519 | 390,379 | 1.6 | 3.2 | |||||||||||||||
| Construction and land | 61,268 | 67,793 | 78,110 | -9.6 | -21.6 | |||||||||||||||
| Total real estate loans | 1,129,211 | 1,143,119 | 1,196,400 | -1.2 | -5.6 | |||||||||||||||
| Consumer: | ||||||||||||||||||||
| Home equity | 85,088 | 86,629 | 79,054 | -1.8 | 7.6 | |||||||||||||||
| Auto and other consumer | 283,502 | 280,224 | 268,876 | 1.2 | 5.4 | |||||||||||||||
| Total consumer loans | 368,590 | 366,853 | 347,930 | 0.5 | 5.9 | |||||||||||||||
| Commercial business | 130,311 | 113,160 | 151,493 | 15.2 | -14.0 | |||||||||||||||
| Total loans receivable | 1,628,112 | 1,623,132 | 1,695,823 | 0.3 | -4.0 | |||||||||||||||
| Less: | ||||||||||||||||||||
| Derivative basis adjustment | (903 | ) | (896 | ) | 188 | -0.8 | -580.3 | |||||||||||||
| Allowance for credit losses on loans | 16,987 | 16,203 | 20,449 | 4.8 | -16.9 | |||||||||||||||
| Total loans receivable, net | $ | 1,612,028 | $ | 1,607,825 | $ | 1,675,186 | 0.3 | -3.8 | ||||||||||||
Other changes to total assets during the quarter included a $2.2 million increase in the balance of FHLB stock required to be held. There was also a $1.7 million decrease in accrued interest receivable primarily due to interest payments received during the current quarter for maritime loans and investment securities.
Total deposits decreased $54.2 million to $1.6 billion at December 31, 2025, compared to $1.7 billion at September 30, 2025, and decreased $88.9 million compared to $1.7 billion one year prior. During the fourth quarter of 2025, total customer deposit balances decreased $36.4 million and brokered deposit balances decreased $17.9 million. The customer deposit mix shifted towards increased average savings account balances while average balances of all other customer accounts decreased. The rates paid on customer interest-bearing deposits decreased 10 basis points to 2.37% for the current quarter, compared to 2.47% for the third quarter of 2025. The deposit mix compared to December 31, 2024, reflects a shift in average balances of customer accounts to savings and money market accounts from demand deposit and CD accounts, with an overall $5.2 million increase to average customer balances. A $99.2 million decrease in the average balance of brokered CDs was the main driver for the year-over-year decrease in total deposits. Rates paid on interest-bearing deposit accounts decreased 53 basis points compared to the same quarter one year ago.
| Deposits ($ in thousands) | December 31, 2025 | September 30, 2025 | December 31, 2024 | Three Month % Change | One Year % Change | |||||||||||||||
| Noninterest-bearing demand deposits | $ | 245,760 | $ | 255,366 | $ | 256,416 | -3.8 | % | -4.2 | % | ||||||||||
| Interest-bearing demand deposits | 143,166 | 146,373 | 164,891 | -2.2 | -13.2 | |||||||||||||||
| Money market accounts | 451,143 | 475,614 | 413,822 | -5.1 | 9.0 | |||||||||||||||
| Savings accounts | 239,258 | 232,831 | 205,055 | 2.8 | 16.7 | |||||||||||||||
| Certificates of deposit, customer | 433,264 | 438,780 | 464,928 | -1.3 | -6.8 | |||||||||||||||
| Certificates of deposit, brokered | 86,510 | 104,363 | 182,914 | -17.1 | -52.7 | |||||||||||||||
| Total deposits | $ | 1,599,101 | $ | 1,653,327 | $ | 1,688,026 | -3.3 | -5.3 | ||||||||||||
Total shareholders' equity increased to $157.3 million at December 31, 2025, compared to $154.5 million three months earlier, due to an increase in the after-tax fair market values of the available-for-sale investment securities portfolio of $1.9 million and net income of $382,000. No shares of common stock were repurchased under the Company's April 2024 Stock Repurchase Plan (the "Repurchase Plan") during the quarter ended December 31, 2025. There are 846,123 shares that remain available for repurchase under the Repurchase Plan.
Capital levels for both the Company and the Bank remain in excess of applicable regulatory requirements and the Bank was categorized as "well-capitalized" at December 31, 2025. Preliminary calculations of Common Equity Tier 1 and Total Risk-Based Capital Ratios at December 31, 2025, for the Bank were 12.5% and 13.6%, respectively.
| 2025 Awards/Recognition | |||||||||
| Sound Publishing: | |||||||||
| Forbes Best-in-State Banks | Best Bank in Clallam County | ||||||||
| Bellingham Best of the Northwest - Best Bank Silver | Best Lender in Clallam County and West End | ||||||||
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About the Company
First Northwest Bancorp (NASDAQ:FNWB) is a financial holding company engaged in investment activities including the business of its subsidiary, First Fed Bank. First Fed is a Pacific Northwest-based financial institution which has served its customers and communities since 1923. Currently First Fed has 17 locations in Washington state including 12 full-service branches. First Fed's business and operating strategy is focused on building sustainable earnings by delivering a full array of financial products and services for individuals, small businesses, non-profit organizations and commercial customers. First Northwest has also strategically invested in partnerships focused on developing modern financial solutions and a boutique investment banking/accelerator firm. These investments underscore the Company's commitment to innovation and growth in the financial services sector. First Northwest Bancorp was incorporated in 2012 and completed its initial public offering in 2015 under the ticker symbol FNWB. The Company is headquartered in Port Angeles, Washington.
Forward-Looking Statements
Certain matters discussed in this press release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements relate to, among other things, expectations of the business environment in which we operate, projections of future performance and execution on certain strategies, perceived opportunities in the market, potential future credit experience, including our ability to collect, the outcome of litigation and statements regarding our mission and vision, and include, but are not limited to, statements about our plans, objectives, expectations and intentions that are not historical facts, and other statements often identified by words such as "believes," "expects," "anticipates," "estimates," or similar expressions. These forward-looking statements are based upon current management beliefs and expectations and may, therefore, involve risks and uncertainties, many of which are beyond our control. Our actual results, performance, or achievements may differ materially from those suggested, expressed, or implied by forward-looking statements as a result of a wide variety of factors including, but not limited to: increased competitive pressures; changes in the interest rate environment; the credit risks of lending activities; pressures on liquidity, including as a result of withdrawals of deposits or declines in the value of our investment portfolio; changes in general economic conditions and conditions within the securities markets, including potential recessionary and other unfavorable conditions and trends relating to housing markets, unemployment levels, interest rates and inflationary pressures, among other things; legislative, regulatory, and policy changes; legal proceedings, regulatory investigations and their resolutions; and other factors described in the Company's latest Annual Report on Form 10-K under the section entitled "Risk Factors," and other filings with the Securities and Exchange Commission ("SEC"),which are available on our website at www.ourfirstfed.com and on the SEC's website at www.sec.gov.
Any of the forward-looking statements that we make in this press release and in the other public statements we make may turn out to be incorrect because of the inaccurate assumptions we might make, because of the factors illustrated above or because of other factors that we cannot foresee. Because of these and other uncertainties, our actual future results may be materially different from those expressed or implied in any forward-looking statements made by or on our behalf and the Company's operating and stock price performance may be negatively affected. Therefore, these factors should be considered in evaluating the forward-looking statements, and undue reliance should not be placed on such statements. We do not undertake and specifically disclaim any obligation to revise any forward-looking statements to reflect the occurrence of anticipated or unanticipated events or circumstances after the date of such statements. These risks could cause our actual results for 2025 and beyond to differ materially from those expressed in any forward-looking statements by, or on behalf of, us and could negatively affect the Company's operations and stock price performance.
For More Information Contact:
Curt Queyrouze, President and Chief Executive Officer
Phyllis Nomura, Chief Financial Officer and EVP
IRGroup@ourfirstfed.com
360-457-0461
| FIRST NORTHWEST BANCORP AND SUBSIDIARY CONSOLIDATED BALANCE SHEETS (Dollars in thousands, except share data) (Unaudited) | ||||||||||||||||||||
| December 31, 2025 | September 30, 2025 | June 30, 2025 | March 31, 2025 | December 31, 2024 | ||||||||||||||||
| ASSETS | ||||||||||||||||||||
| Cash and due from banks | $ | 15,530 | $ | 15,688 | $ | 18,487 | $ | 18,911 | $ | 16,811 | ||||||||||
| Interest-earning deposits in banks | 69,587 | 63,482 | 69,376 | 51,412 | 55,637 | |||||||||||||||
| Investment securities available for sale, at fair value (amortized cost at each period end of $295,849, $310,545, $336,206, $348,249 and $376,265) | 270,310 | 282,608 | 303,515 | 315,433 | 340,344 | |||||||||||||||
| Loans held for sale | 1,063 | 2,154 | 1,557 | 2,940 | 472 | |||||||||||||||
| Loans receivable (net of allowance for credit losses on loans at each period end of $16,987, $16,203, $18,345, $20,569, and $20,449) | 1,612,028 | 1,607,825 | 1,647,217 | 1,637,573 | 1,675,186 | |||||||||||||||
| Federal Home Loan Bank (FHLB) stock, at cost | 13,105 | 10,856 | 14,906 | 13,106 | 14,435 | |||||||||||||||
| Accrued interest receivable | 6,498 | 8,160 | 8,305 | 8,319 | 8,159 | |||||||||||||||
| Premises and equipment, net | 8,464 | 8,788 | 8,999 | 9,870 | 10,129 | |||||||||||||||
| Servicing rights on sold loans, at fair value | 3,014 | 3,093 | 3,220 | 3,301 | 3,281 | |||||||||||||||
| Bank-owned life insurance ("BOLI"), net | 42,382 | 41,889 | 41,380 | 31,786 | 41,150 | |||||||||||||||
| Equity and partnership investments | 15,489 | 15,048 | 14,811 | 15,026 | 13,229 | |||||||||||||||
| Goodwill and other intangible assets, net | 1,062 | 1,080 | 1,081 | 1,082 | 1,082 | |||||||||||||||
| Deferred tax asset, net | 13,638 | 14,168 | 14,266 | 14,304 | 13,738 | |||||||||||||||
| Right-of-use ("ROU") asset, net | 15,596 | 15,494 | 15,772 | 16,687 | 17,001 | |||||||||||||||
| Prepaid expenses and other assets | 20,129 | 21,040 | 32,471 | 31,680 | 21,352 | |||||||||||||||
| Total assets | $ | 2,107,895 | $ | 2,111,373 | $ | 2,195,363 | $ | 2,171,430 | $ | 2,232,006 | ||||||||||
| LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||||||||||||||
| Deposits | $ | 1,599,101 | $ | 1,653,327 | $ | 1,654,636 | $ | 1,666,068 | $ | 1,688,026 | ||||||||||
| Borrowings | 308,143 | 259,625 | 344,108 | 307,091 | 336,014 | |||||||||||||||
| Accrued interest payable | 1,223 | 1,145 | 1,514 | 2,163 | 3,295 | |||||||||||||||
| Lease liability, net | 16,439 | 16,071 | 16,257 | 17,266 | 17,535 | |||||||||||||||
| Accrued expenses and other liabilities | 24,301 | 24,321 | 27,790 | 29,767 | 31,770 | |||||||||||||||
| Advances from borrowers for taxes and insurance | 1,424 | 2,356 | 1,325 | 2,583 | 1,484 | |||||||||||||||
| Total liabilities | 1,950,631 | 1,956,845 | 2,045,630 | 2,024,938 | 2,078,124 | |||||||||||||||
| Shareholders' Equity | ||||||||||||||||||||
| Preferred stock, $0.01 par value, authorized 5,000,000 shares, no shares issued or outstanding | — | — | — | — | — | |||||||||||||||
| Common stock, $0.01 par value, 75,000,000 shares authorized; issued and outstanding at each period end: 9,467,925; 9,462,150; 9,444,963; 9,440,618; and 9,353,348 | 95 | 94 | 94 | 94 | 93 | |||||||||||||||
| Additional paid-in capital | 93,803 | 93,646 | 93,595 | 93,450 | 93,357 | |||||||||||||||
| Retained earnings | 91,699 | 91,317 | 90,506 | 87,506 | 97,198 | |||||||||||||||
| Accumulated other comprehensive loss, net of tax | (22,398 | ) | (24,429 | ) | (28,198 | ) | (28,129 | ) | (30,172 | ) | ||||||||||
| Unearned employee stock ownership plan (ESOP) shares | (5,935 | ) | (6,100 | ) | (6,264 | ) | (6,429 | ) | (6,594 | ) | ||||||||||
| Total shareholders' equity | 157,264 | 154,528 | 149,733 | 146,492 | 153,882 | |||||||||||||||
| Total liabilities and shareholders' equity | $ | 2,107,895 | $ | 2,111,373 | $ | 2,195,363 | $ | 2,171,430 | $ | 2,232,006 | ||||||||||
| FIRST NORTHWEST BANCORP AND SUBSIDIARY CONSOLIDATED STATEMENTS OF OPERATIONS (Dollars in thousands, except per share data) (Unaudited) | ||||||||||||||||||||||||||||
| For the Quarter Ended | For the Year Ended | |||||||||||||||||||||||||||
| December 31, 2025 | September 30, 2025 | June 30, 2025 | March 31, 2025 | December 31, 2024 | December 31, 2025 | December 31, 2024 | ||||||||||||||||||||||
| INTEREST INCOME | ||||||||||||||||||||||||||||
| Interest and fees on loans receivable | $ | 22,431 | $ | 22,814 | $ | 22,814 | $ | 22,231 | $ | 23,716 | $ | 90,290 | $ | 93,752 | ||||||||||||||
| Interest on investment securities | 2,971 | 3,244 | 3,466 | 3,803 | 3,658 | 13,484 | 15,025 | |||||||||||||||||||||
| Interest on deposits in banks | 473 | 570 | 520 | 482 | 550 | 2,045 | 2,348 | |||||||||||||||||||||
| FHLB dividends | 262 | 282 | 331 | 307 | 273 | 1,182 | 1,215 | |||||||||||||||||||||
| Total interest income | 26,137 | 26,910 | 27,131 | 26,823 | 28,197 | 107,001 | 112,340 | |||||||||||||||||||||
| INTEREST EXPENSE | ||||||||||||||||||||||||||||
| Deposits | 8,648 | 9,083 | 9,552 | 9,737 | 11,175 | 37,020 | 42,427 | |||||||||||||||||||||
| Borrowings | 2,799 | 3,258 | 3,386 | 3,239 | 2,885 | 12,682 | 13,593 | |||||||||||||||||||||
| Total interest expense | 11,447 | 12,341 | 12,938 | 12,976 | 14,060 | 49,702 | 56,020 | |||||||||||||||||||||
| Net interest income | 14,690 | 14,569 | 14,193 | 13,847 | 14,137 | 57,299 | 56,320 | |||||||||||||||||||||
| PROVISION FOR CREDIT LOSSES | ||||||||||||||||||||||||||||
| Provision for (recapture of) credit losses on loans | 466 | (620 | ) | (296 | ) | 7,770 | 3,760 | 7,320 | 16,716 | |||||||||||||||||||
| Provision for (recapture of) credit losses on unfunded commitments | 97 | (53 | ) | (64 | ) | 15 | (105 | ) | (5 | ) | (218 | ) | ||||||||||||||||
| Provision for (recapture of) credit losses | 563 | (673 | ) | (360 | ) | 7,785 | 3,655 | 7,315 | 16,498 | |||||||||||||||||||
| Net interest income after provision for (recapture of) credit losses | 14,127 | 15,242 | 14,553 | 6,062 | 10,482 | 49,984 | 39,822 | |||||||||||||||||||||
| NONINTEREST INCOME | ||||||||||||||||||||||||||||
| Loan and deposit service fees | 1,044 | 1,114 | 1,095 | 1,106 | 1,054 | 4,359 | 4,291 | |||||||||||||||||||||
| Sold loan servicing fees and servicing rights mark-to-market | 57 | 85 | 92 | 195 | (115 | ) | 429 | 188 | ||||||||||||||||||||
| Net gain (loss) on sale of loans | 96 | (39 | ) | 44 | 11 | 52 | 112 | 312 | ||||||||||||||||||||
| Net gain on sale of investment securities | — | — | — | — | — | — | (2,117 | ) | ||||||||||||||||||||
| Net gain on sale of premises and equipment | — | — | — | — | — | — | 7,919 | |||||||||||||||||||||
| Increase in BOLI cash surrender value | 493 | 539 | 485 | 372 | 328 | 1,889 | 1,179 | |||||||||||||||||||||
| Income from BOLI death benefit, net | — | — | — | 1,059 | 1,536 | 1,059 | 1,536 | |||||||||||||||||||||
| Other income (loss) | 2,000 | 303 | 454 | 1,034 | (1,555 | ) | 3,791 | (694 | ) | |||||||||||||||||||
| Total noninterest income | 3,690 | 2,002 | 2,170 | 3,777 | 1,300 | 11,639 | 12,614 | |||||||||||||||||||||
| NONINTEREST EXPENSE | ||||||||||||||||||||||||||||
| Compensation and benefits | 8,042 | 8,353 | 4,698 | 7,715 | 7,367 | 28,808 | 32,665 | |||||||||||||||||||||
| Data processing | 1,990 | 1,941 | 1,926 | 2,011 | 2,065 | 7,868 | 8,102 | |||||||||||||||||||||
| Occupancy and equipment | 1,539 | 1,505 | 1,507 | 1,592 | 1,559 | 6,143 | 6,151 | |||||||||||||||||||||
| Supplies, postage, and telephone | 332 | 344 | 346 | 298 | 296 | 1,320 | 1,266 | |||||||||||||||||||||
| Regulatory assessments and state taxes | 688 | 558 | 501 | 479 | 460 | 2,226 | 1,978 | |||||||||||||||||||||
| Advertising | 290 | 282 | 299 | 265 | 362 | 1,136 | 1,457 | |||||||||||||||||||||
| Professional fees | 1,957 | 2,668 | 1,449 | 777 | 813 | 6,851 | 3,105 | |||||||||||||||||||||
| FDIC insurance premium | 424 | 411 | 463 | 434 | 491 | 1,732 | 1,883 | |||||||||||||||||||||
| Other expense | 1,640 | 1,328 | 1,576 | 6,429 | 820 | 10,973 | 3,386 | |||||||||||||||||||||
| Total noninterest expense | 16,902 | 17,390 | 12,765 | 20,000 | 14,233 | 67,057 | 59,993 | |||||||||||||||||||||
| Income (loss) before provision (benefit) for income taxes | 915 | (146 | ) | 3,958 | (10,161 | ) | (2,451 | ) | (5,434 | ) | (7,557 | ) | ||||||||||||||||
| Provision (benefit) for income taxes | 533 | (948 | ) | 297 | (1,125 | ) | 359 | (1,243 | ) | (944 | ) | |||||||||||||||||
| Net income (loss) | $ | 382 | $ | 802 | $ | 3,661 | $ | (9,036 | ) | $ | (2,810 | ) | $ | (4,191 | ) | $ | (6,613 | ) | ||||||||||
| Basic and diluted earnings (loss) per common share | $ | 0.04 | $ | 0.09 | $ | 0.42 | $ | (1.03 | ) | $ | (0.32 | ) | $ | (0.48 | ) | $ | (0.75 | ) | ||||||||||
| FIRST NORTHWEST BANCORP AND SUBSIDIARY ADDITIONAL INFORMATION (Dollars in thousands) (Unaudited) | ||||||||||||||||||||
| Selected Loan Detail | December 31, 2025 | September 30, 2025 | June 30, 2025 | March 31, 2025 | December 31, 2024 | |||||||||||||||
| Construction and land loans breakout | ||||||||||||||||||||
| 1-4 Family construction | $ | 21,954 | $ | 29,961 | $ | 39,040 | $ | 42,371 | $ | 39,319 | ||||||||||
| Multifamily construction | 10,109 | 15,660 | 14,728 | 9,223 | 15,407 | |||||||||||||||
| Nonresidential construction | 23,005 | 16,484 | 12,832 | 7,229 | 16,857 | |||||||||||||||
| Land and development | 6,200 | 5,688 | 5,938 | 6,054 | 6,527 | |||||||||||||||
| Total construction and land loans | $ | 61,268 | $ | 67,793 | $ | 72,538 | $ | 64,877 | $ | 78,110 | ||||||||||
| Auto and other consumer loans breakout | ||||||||||||||||||||
| Triad Manufactured Home loans | $ | 132,287 | $ | 133,425 | $ | 135,537 | $ | 134,740 | $ | 128,231 | ||||||||||
| Woodside auto loans | 137,678 | 131,800 | 127,828 | 118,972 | 117,968 | |||||||||||||||
| First Help auto loans | 8,491 | 9,561 | 11,221 | 13,012 | 14,283 | |||||||||||||||
| Other auto loans | 586 | 767 | 1,016 | 1,313 | 1,647 | |||||||||||||||
| Other consumer loans | 4,460 | 4,671 | 5,275 | 5,841 | 6,747 | |||||||||||||||
| Total auto and other consumer loans | $ | 283,502 | $ | 280,224 | $ | 280,877 | $ | 273,878 | $ | 268,876 | ||||||||||
| Commercial business loans breakout | ||||||||||||||||||||
| Northpointe Bank MPP | $ | 18,941 | $ | - | $ | - | $ | - | $ | 36,230 | ||||||||||
| Secured lines of credit | 39,783 | 43,081 | 41,043 | 39,986 | 35,701 | |||||||||||||||
| Unsecured lines of credit | 2,901 | 2,580 | 2,551 | 2,030 | 1,717 | |||||||||||||||
| SBA loans | 5,645 | 6,347 | 6,618 | 6,889 | 7,044 | |||||||||||||||
| Other commercial business loans | 63,041 | 61,152 | 67,631 | 70,878 | 70,801 | |||||||||||||||
| Total commercial business loans | $ | 130,311 | $ | 113,160 | $ | 117,843 | $ | 119,783 | $ | 151,493 | ||||||||||
| Loans by Collateral and Unfunded Commitments | December 31, 2025 | September 30, 2025 | June 30, 2025 | March 31, 2025 | December 31, 2024 | |||||||||||||||
| One-to-four family construction | $ | 23,815 | $ | 31,627 | $ | 40,509 | $ | 38,221 | $ | 44,468 | ||||||||||
| All other construction and land | 37,334 | 36,161 | 36,129 | 30,947 | 34,290 | |||||||||||||||
| One-to-four family first mortgage | 431,222 | 415,670 | 420,847 | 428,081 | 466,046 | |||||||||||||||
| One-to-four family junior liens | 21,003 | 20,568 | 20,116 | 15,155 | 15,090 | |||||||||||||||
| One-to-four family revolving open-end | 56,365 | 58,486 | 57,502 | 51,832 | 51,481 | |||||||||||||||
| Commercial real estate, owner occupied: | ||||||||||||||||||||
| Health care | 28,488 | 28,794 | 29,091 | 29,386 | 29,129 | |||||||||||||||
| Office | 19,216 | 18,499 | 19,116 | 19,363 | 17,756 | |||||||||||||||
| Warehouse | 7,608 | 7,684 | 7,432 | 9,272 | 14,948 | |||||||||||||||
| Other | 71,313 | 73,562 | 74,364 | 74,915 | 78,170 | |||||||||||||||
| Commercial real estate, non-owner occupied: | ||||||||||||||||||||
| Office | 40,311 | 40,917 | 42,198 | 41,885 | 49,417 | |||||||||||||||
| Retail | 50,494 | 50,839 | 51,708 | 50,737 | 49,591 | |||||||||||||||
| Hospitality | 63,113 | 63,953 | 64,308 | 62,226 | 61,919 | |||||||||||||||
| Other | 112,307 | 106,991 | 93,505 | 93,549 | 81,640 | |||||||||||||||
| Multi-family residential | 289,581 | 297,379 | 330,784 | 339,217 | 333,419 | |||||||||||||||
| Commercial business loans | 66,264 | 68,062 | 73,403 | 75,628 | 77,381 | |||||||||||||||
| Commercial agriculture and fishing loans | 25,842 | 23,346 | 22,443 | 22,914 | 21,833 | |||||||||||||||
| State and political subdivision obligations | 333 | 369 | 369 | 369 | 369 | |||||||||||||||
| Consumer automobile loans | 146,708 | 142,064 | 139,992 | 133,209 | 133,789 | |||||||||||||||
| Consumer loans secured by other assets | 134,826 | 136,073 | 138,378 | 137,619 | 131,429 | |||||||||||||||
| Consumer loans unsecured | 1,969 | 2,088 | 2,508 | 3,051 | 3,658 | |||||||||||||||
| Total loans | $ | 1,628,112 | $ | 1,623,132 | $ | 1,664,702 | $ | 1,657,576 | $ | 1,695,823 | ||||||||||
| Unfunded commitments under lines of credit or existing loans | $ | 167,489 | $ | 158,118 | $ | 166,589 | $ | 175,100 | $ | 163,827 | ||||||||||
| FIRST NORTHWEST BANCORP AND SUBSIDIARY NET INTEREST MARGIN ANALYSIS (Dollars in thousands) (Unaudited) | ||||||||||||||||||||||||
| Three Months Ended December 31, | ||||||||||||||||||||||||
| 2025 | 2024 | |||||||||||||||||||||||
| Average | Interest | Average | Interest | |||||||||||||||||||||
| Balance | Earned/ | Yield/ | Balance | Earned/ | Yield/ | |||||||||||||||||||
| Outstanding | Paid | Rate | Outstanding | Paid | Rate | |||||||||||||||||||
| (Dollars in thousands) | ||||||||||||||||||||||||
| Interest-earning assets: | ||||||||||||||||||||||||
| Loans receivable, net(1) (2) | $ | 1,606,056 | $ | 22,431 | 5.54 | % | $ | 1,688,239 | $ | 23,716 | 5.59 | % | ||||||||||||
| Total investment securities | 276,724 | 2,971 | 4.26 | 313,759 | 3,658 | 4.64 | ||||||||||||||||||
| FHLB dividends | 11,117 | 262 | 9.35 | 11,762 | 273 | 9.23 | ||||||||||||||||||
| Interest-earning deposits in banks | 46,878 | 473 | 4.00 | 45,358 | 550 | 4.82 | ||||||||||||||||||
| Total interest-earning assets(3) | 1,940,775 | 26,137 | 5.34 | 2,059,118 | 28,197 | 5.45 | ||||||||||||||||||
| Noninterest-earning assets | 142,993 | 146,384 | ||||||||||||||||||||||
| Total average assets | $ | 2,083,768 | $ | 2,205,502 | ||||||||||||||||||||
| Interest-bearing liabilities: | ||||||||||||||||||||||||
| Interest-bearing demand deposits | $ | 141,128 | $ | 63 | 0.18 | $ | 162,954 | $ | 210 | 0.51 | ||||||||||||||
| Money market accounts | 459,821 | 2,625 | 2.26 | 442,481 | 2,773 | 2.49 | ||||||||||||||||||
| Savings accounts | 237,396 | 884 | 1.48 | 206,605 | 721 | 1.39 | ||||||||||||||||||
| Certificates of deposit, customer | 440,018 | 4,079 | 3.68 | 461,136 | 4,925 | 4.25 | ||||||||||||||||||
| Certificates of deposit, brokered | 92,771 | 997 | 4.26 | 192,018 | 2,546 | 5.27 | ||||||||||||||||||
| Total interest-bearing deposits(4) | 1,371,134 | 8,648 | 2.50 | 1,465,194 | 11,175 | 3.03 | ||||||||||||||||||
| Advances | 230,033 | 2,454 | 4.23 | 236,576 | 2,491 | 4.19 | ||||||||||||||||||
| Subordinated debt | 34,634 | 345 | 3.95 | 39,504 | 394 | 3.97 | ||||||||||||||||||
| Total interest-bearing liabilities | 1,635,801 | 11,447 | 2.78 | 1,741,274 | 14,060 | 3.21 | ||||||||||||||||||
| Noninterest-bearing deposits(4) | 247,496 | 256,715 | ||||||||||||||||||||||
| Other noninterest-bearing liabilities | 42,883 | 45,953 | ||||||||||||||||||||||
| Total average liabilities | 1,926,180 | 2,043,942 | ||||||||||||||||||||||
| Average equity | 157,588 | 161,560 | ||||||||||||||||||||||
| Total average liabilities and equity | $ | 2,083,768 | $ | 2,205,502 | ||||||||||||||||||||
| Net interest income | $ | 14,690 | $ | 14,137 | ||||||||||||||||||||
| Net interest rate spread | 2.56 | 2.24 | ||||||||||||||||||||||
| Net earning assets | $ | 304,974 | $ | 317,844 | ||||||||||||||||||||
| Net interest margin(5) | 3.00 | 2.73 | ||||||||||||||||||||||
| Average interest-earning assets to average interest-bearing liabilities | 118.6 | % | 118.3 | % | ||||||||||||||||||||
| (1 | ) | The average loans receivable, net balances include nonaccrual loans. |
| (2 | ) | Interest earned on loans receivable includes net deferred (costs) fees of ($409,000) and $103,000 for the three months ended December 31, 2025 and 2024, respectively. |
| (3 | ) | Includes interest-earning deposits (cash) at other financial institutions. |
| (4 | ) | Cost of all deposits, including noninterest-bearing demand deposits, was 2.12% and 2.58% for the three months ended December 31, 2025 and 2024, respectively. |
| (5 | ) | Net interest income divided by average interest-earning assets. |
| FIRST NORTHWEST BANCORP AND SUBSIDIARY ADDITIONAL INFORMATION (Dollars in thousands) (Unaudited) |
Non-GAAP Financial Measures
This press release contains financial measures that are not in conformity with generally accepted accounting principles in the United States of America ("GAAP"). Non-GAAP measures are presented where management believes the information will help investors understand the Company's results of operations or financial position and assess trends. Where non-GAAP financial measures are used, the comparable GAAP financial measure is also provided. These disclosures should not be viewed as a substitute for operating results determined in accordance with GAAP, and are not necessarily comparable to non-GAAP performance measures that may be presented by other companies. Other banking companies may use names similar to those the Company uses for the non-GAAP financial measures the Company discloses, but may calculate them differently. Investors should understand how the Company and other companies each calculate their non-GAAP financial measures when making comparisons. Reconciliations of the GAAP and non-GAAP measures are presented below.
Calculations Based on PPNR and Adjusted PPNR:
| For the Quarter Ended | For the Year Ended | |||||||||||||||||||||||||||
| (Dollars in thousands) | December 31, 2025 | September 30, 2025 | June 30, 2025 | March 31, 2025 | December 31, 2024 | December 31, 2025 | December 31, 2024 | |||||||||||||||||||||
| Net income (loss) (GAAP) | $ | 382 | $ | 802 | $ | 3,661 | $ | (9,036 | ) | $ | (2,810 | ) | $ | (4,191 | ) | $ | (6,613 | ) | ||||||||||
| Plus: provision for (recapture of) credit losses (GAAP) | 563 | (673 | ) | (360 | ) | 7,785 | 3,655 | 7,315 | 16,498 | |||||||||||||||||||
| Provision (benefit) for income taxes (GAAP) | 533 | (948 | ) | 297 | (1,125 | ) | 359 | (1,243 | ) | (944 | ) | |||||||||||||||||
| PPNR (Non-GAAP)(1) | 1,478 | (819 | ) | 3,598 | (2,376 | ) | 1,204 | 1,881 | 8,941 | |||||||||||||||||||
| Less selected nonrecurring adjustments to PPNR (Non-GAAP): | ||||||||||||||||||||||||||||
| Insurance reimbursement included in other income | 1,681 | — | — | — | — | 1,681 | — | |||||||||||||||||||||
| Branch closure costs included in compensation and other expense | (681 | ) | — | — | — | — | (663 | ) | — | |||||||||||||||||||
| Executive transition costs included in compensation and professional fees | — | (1,159 | ) | — | — | — | (1,159 | ) | — | |||||||||||||||||||
| Employee retention credit ("ERC") included in compensation | — | — | 2,640 | — | — | 2,640 | — | |||||||||||||||||||||
| ERC consulting expense included in professional fees | — | — | (528 | ) | — | — | (528 | ) | — | |||||||||||||||||||
| Costs associated with early termination of Bellevue Business Center lease included in other expense | — | — | (599 | ) | — | — | (599 | ) | — | |||||||||||||||||||
| Bank-owned life insurance ("BOLI") death benefit | — | — | — | 1,059 | 1,536 | 1,059 | 1,536 | |||||||||||||||||||||
| Gain on extinguishment of subordinated debt included in other income | — | — | — | 846 | — | 846 | — | |||||||||||||||||||||
| Legal reserve included in other expense | — | — | — | (5,750 | ) | — | (5,750 | ) | — | |||||||||||||||||||
| Equity investment repricing adjustment included in other income | — | — | — | — | (1,762 | ) | — | (1,111 | ) | |||||||||||||||||||
| One-time compensation payouts related to reduction in force | — | — | — | — | — | — | (996 | ) | ||||||||||||||||||||
| Net gain on sale of premises and equipment related to sale-leaseback | — | — | — | — | — | — | 7,919 | |||||||||||||||||||||
| Sale leaseback taxes and assessments included in occupancy and equipment | — | — | — | — | — | — | (359 | ) | ||||||||||||||||||||
| Net gain on sale of investment securities | — | — | — | — | — | — | (2,117 | ) | ||||||||||||||||||||
| Adjusted PPNR (Non-GAAP)(1) | $ | 478 | $ | 340 | $ | 2,085 | $ | 1,469 | $ | 1,430 | $ | 4,354 | $ | 4,069 | ||||||||||||||
| Average total assets (GAAP) | $ | 2,083,768 | $ | 2,135,409 | $ | 2,164,579 | $ | 2,174,748 | $ | 2,205,502 | $ | 2,139,358 | $ | 2,200,138 | ||||||||||||||
| GAAP Ratio: | ||||||||||||||||||||||||||||
| Return on average assets (GAAP) | 0.07 | % | 0.15 | % | 0.68 | % | -1.69 | % | -0.51 | % | -0.20 | % | -0.30 | % | ||||||||||||||
| Non-GAAP Ratios: | ||||||||||||||||||||||||||||
| PPNR return on average assets (Non-GAAP)(1) | 0.28 | % | -0.15 | % | 0.67 | % | -0.44 | % | 0.22 | % | 0.09 | % | 0.41 | % | ||||||||||||||
| Adjusted PPNR return on average assets (Non-GAAP)(1) | 0.09 | % | 0.06 | % | 0.39 | % | 0.27 | % | 0.26 | % | 0.20 | % | 0.18 | % | ||||||||||||||
| (1 | ) | PPNR removes the provisions for credit loss and income tax from net income. This removes potentially volatile estimates, providing a comparative amount limited to income and expense recorded during the period. Adjusted PPNR further removes large nonrecurring transactions recorded during the period. We believe these metrics provide comparative amounts for a better review of recurring net revenue. |
FIRST NORTHWEST BANCORP AND SUBSIDIARY
ADDITIONAL INFORMATION
(Dollars in thousands) (Unaudited)
Calculations Based on Tangible Common Equity:
| For the Quarter Ended | For the Year Ended | |||||||||||||||||||||||||||
| (Dollars in thousands, except per share data) | December 31, 2025 | September 30, 2025 | June 30, 2025 | March 31, 2025 | December 31, 2024 | December 31, 2025 | December 31, 2024 | |||||||||||||||||||||
| Total shareholders' equity | $ | 157,264 | $ | 154,528 | $ | 149,733 | $ | 146,492 | $ | 153,882 | $ | 157,264 | $ | 153,882 | ||||||||||||||
| Less: Goodwill and other intangible assets | 1,062 | 1,080 | 1,081 | 1,082 | 1,082 | 1,062 | 1,082 | |||||||||||||||||||||
| Disallowed non-mortgage loan servicing rights | 302 | 317 | 372 | 415 | 423 | 302 | 423 | |||||||||||||||||||||
| Total tangible common equity | $ | 155,900 | $ | 153,131 | $ | 148,280 | $ | 144,995 | $ | 152,377 | $ | 155,900 | $ | 152,377 | ||||||||||||||
| Total assets | $ | 2,107,895 | $ | 2,111,373 | $ | 2,195,363 | $ | 2,171,430 | $ | 2,232,006 | $ | 2,107,895 | $ | 2,232,006 | ||||||||||||||
| Less: Goodwill and other intangible assets | 1,062 | 1,080 | 1,081 | 1,082 | 1,082 | 1,062 | 1,082 | |||||||||||||||||||||
| Disallowed non-mortgage loan servicing rights | 302 | 317 | 372 | 415 | 423 | 302 | 423 | |||||||||||||||||||||
| Total tangible assets | $ | 2,106,531 | $ | 2,109,976 | $ | 2,193,910 | $ | 2,169,933 | $ | 2,230,501 | $ | 2,106,531 | $ | 2,230,501 | ||||||||||||||
| Average shareholders' equity | $ | 157,588 | $ | 151,376 | $ | 146,857 | $ | 156,470 | $ | 161,560 | $ | 153,063 | $ | 161,742 | ||||||||||||||
| Less: Average goodwill and other intangible assets | 1,080 | 1,081 | 1,081 | 1,082 | 1,083 | 1,081 | 1,084 | |||||||||||||||||||||
| Average disallowed non-mortgage loan servicing rights | 317 | 371 | 415 | 423 | 489 | 381 | 494 | |||||||||||||||||||||
| Total average tangible common equity | $ | 156,191 | $ | 149,924 | $ | 145,361 | $ | 154,965 | $ | 159,988 | $ | 151,601 | $ | 160,164 | ||||||||||||||
| Net income (loss) | $ | 382 | $ | 802 | $ | 3,661 | $ | (9,036 | ) | $ | (2,810 | ) | $ | (4,191 | ) | $ | (6,613 | ) | ||||||||||
| Common shares outstanding | 9,467,925 | 9,462,150 | 9,444,963 | 9,440,618 | 9,353,348 | 9,467,925 | 9,353,348 | |||||||||||||||||||||
| GAAP Ratios: | ||||||||||||||||||||||||||||
| Equity to total assets | 7.46 | % | 7.32 | % | 6.82 | % | 6.75 | % | 6.89 | % | 7.46 | % | 6.89 | % | ||||||||||||||
| Return on average equity | 0.96 | % | 2.10 | % | 10.00 | % | -23.42 | % | -6.92 | % | -2.74 | % | -4.09 | % | ||||||||||||||
| Book value per common share | $ | 16.61 | $ | 16.33 | $ | 15.85 | $ | 15.52 | $ | 16.45 | $ | 16.61 | $ | 16.45 | ||||||||||||||
| Non-GAAP Ratios: | ||||||||||||||||||||||||||||
| Tangible common equity to tangible assets(1) | 7.40 | % | 7.26 | % | 6.76 | % | 6.68 | % | 6.83 | % | 7.40 | % | 6.83 | % | ||||||||||||||
| Return on average tangible common equity(1) | 0.97 | % | 2.12 | % | 10.10 | % | -23.65 | % | -6.99 | % | -2.76 | % | -4.13 | % | ||||||||||||||
| Tangible book value per common share(1) | $ | 16.47 | $ | 16.18 | $ | 15.70 | $ | 15.36 | $ | 16.29 | $ | 16.47 | $ | 16.29 | ||||||||||||||
| (1 | ) | We believe that the use of tangible equity and tangible assets improves the comparability to other institutions that have not engaged in acquisitions that resulted in recorded goodwill and other intangibles. |
Photos accompanying this announcement are available at:
https://www.globenewswire.com/NewsRoom/AttachmentNg/d3a6468f-4c55-4761-a717-34818584fa19
https://www.globenewswire.com/NewsRoom/AttachmentNg/e85de603-f6c1-461a-a7da-ac24fafd246c
https://www.globenewswire.com/NewsRoom/AttachmentNg/25fa62f5-48bc-407d-9a32-934aaf92231a
https://www.globenewswire.com/NewsRoom/AttachmentNg/950f6f55-fd89-4f16-84bf-3eb5f356b96a
