Financial Performance - First Northwest Bancorp reported a net income of $382,000 for Q4 2025, down from $802,000 in Q3 2025 and a net loss of $2.8 million in Q4 2024[2]. - Basic and diluted earnings per share were $0.04 for Q4 2025, compared to $0.09 in Q3 2025 and a loss of $0.32 in Q4 2024[2]. - Net income for the quarter was $382,000, a decrease from $802,000 in the previous quarter and a loss of $9,036,000 in the same quarter last year[42]. - Net interest income after provision for credit losses was $14,127,000 for the quarter, compared to $10,482,000 in the same quarter last year, reflecting an increase of 34.0%[35]. - Adjusted PPNR for the quarter was $478,000, up from $340,000 in the previous quarter and $1,469,000 in the same quarter last year[42]. Interest Income and Expense - Total interest income decreased by $773,000 to $26.1 million for Q4 2025, down from $26.9 million in Q3 2025 and $28.2 million in Q4 2024[17]. - Total interest expense decreased by $894,000 to $11.5 million for Q4 2025, compared to $12.3 million in Q3 2025 and $14.1 million in Q4 2024[17]. - Interest expense on deposits decreased to $8,648,000 for the quarter, down from $11,175,000 in the same quarter last year, a reduction of 22.6%[35]. - The company reported a total interest expense of $11,447,000 for the quarter, down from $14,060,000 in the same quarter last year, reflecting a decrease of 18.6%[35]. Asset Quality - The allowance for credit losses on loans increased to $17.0 million at December 31, 2025, from $16.2 million at September 30, 2025, representing 1.04% of total loans[14]. - Nonperforming loans rose by $9.2 million to $22.6 million at December 31, 2025, from $13.4 million at September 30, 2025[15]. - Total past due loans as a percentage of total loans increased to 1.21% at December 31, 2025, compared to 0.88% at September 30, 2025[22]. - The provision for credit losses for the quarter was $563,000, compared to a recapture of $673,000 in the previous quarter and a provision of $7,785,000 in the same quarter last year[42]. Deposits and Funding - Total deposits decreased by $54.2 million to $1.6 billion as of December 31, 2025, compared to $1.7 billion at September 30, 2025, and decreased by $88.9 million year-over-year[24]. - Brokered deposits decreased by $17.9 million, or 17.1%, to $86.5 million at December 31, 2025, compared to $104.4 million at September 30, 2025[8]. - The average balance of brokered CDs decreased by $99.2 million year-over-year, contributing to the overall decline in total deposits[24]. - The customer deposit mix shifted towards increased average savings account balances, with savings accounts increasing by 2.8% quarter-over-quarter and 16.7% year-over-year[25]. Capital and Equity - Total shareholders' equity increased to $157.3 million at December 31, 2025, from $154.5 million three months earlier, driven by a net income of $382,000[25]. - Common Equity Tier 1 and Total Risk-Based Capital Ratios for the Bank were 12.5% and 13.6%, respectively, indicating strong capital levels[26]. - Total tangible common equity reached $155,900,000, up from $153,131,000 in the previous quarter and $144,995,000 a year ago[43]. - Book value per common share increased to $16.61, up from $16.33 in the previous quarter and $15.52 a year ago[43]. Operational Efficiency - The efficiency ratio improved to 92.0% in Q4 2025 from 104.9% in Q3 2025[9]. - Noninterest expense decreased by $488,000 to $16.9 million for Q4 2025, compared to $17.4 million in Q3 2025, primarily due to a reduction in legal fees[17]. - Total noninterest income increased to $3,690,000 for the quarter, up from $1,300,000 in the same quarter of the previous year, marking a significant increase of 184.6%[35]. Loans and Advances - Advances increased by $48.5 million, or 21.6%, to $273.5 million at December 31, 2025, partially offsetting a $54.2 million decrease in deposit balances[8]. - Total loans outstanding were $1,628,112 million as of December 31, 2025, slightly up from $1,623,132 million in the previous quarter[37]. - Total construction and land loans amounted to $61,268 million as of December 31, 2025, a decrease from $67,793 million on September 30, 2025[37]. - Total commercial business loans increased to $130,311 million, up from $113,160 million in the prior quarter[37]. Recognition and Strategy - The company has been recognized as the Best Bank in Clallam County by Forbes and received multiple awards for its services[27]. - The company is focused on building sustainable earnings through a full array of financial products and services, emphasizing innovation and growth in the financial services sector[28].

First Northwest Bancorp (FNWB) came out with quarterly earnings of $0.04 per share, missing the Zacks Consensus Estimate of $0.09 per share. This compares to a loss of $0.32 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -55.56%. A quarter ago, it was expected that this company would post earnings of $0.18 per share when it actually produced earnings of $0.09, delivering a surprise of -50%.Over the last four quarters, the com ...

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 ...

Core Insights - First Fed Bank and its holding company, First Northwest Bancorp, announced the retirement of Norman J. Tonina, Jr. from the Boards of Directors effective December 9, 2025 [1] - Tonina served on the First Fed Board since 2012 and was an inaugural member of the FNWB Board starting in 2015, contributing significantly to the executive search and recruitment process [2][3] Company Overview - First Northwest Bancorp (NASDAQ: FNWB) is a financial holding company that operates First Fed Bank, a financial institution based in the Pacific Northwest since 1923, with 17 locations in Washington state [5] - The company focuses on sustainable earnings by offering a full range of financial products and services to individuals, small businesses, non-profits, and commercial customers [5] - First Northwest Bancorp was incorporated in 2012 and completed its initial public offering in 2015 under the ticker symbol FNWB [5] Leadership and Governance - Tonina was Chair of the Nominating and Corporate Governance Committee during his tenure and emphasized the importance of thoughtful succession planning [3][4] - The Nominating and Corporate Governance Committee is actively engaged in succession planning and will assess the need for a new Board member [4]

Financial Performance - Net interest income increased to $14,569 thousand for the three months ended September 30, 2025, compared to $14,020 thousand for the same period in 2024, reflecting a growth of about 3.9%[13] - The net income for the three months ended September 30, 2025, was $802 thousand, a recovery from a net loss of $1,980 thousand in the same period of 2024[13] - Basic earnings per share improved to $0.09 for the three months ended September 30, 2025, compared to a loss of $0.23 per share in the same period of 2024[13] - Comprehensive income for the three months ended September 30, 2025, was $4,571 thousand, compared to $3,193 thousand for the same period in 2024, reflecting an increase of approximately 43.1%[15] - The company recorded a net loss of $4.6 million for the nine months ended September 30, 2025, compared to a net loss of $3.8 million for the same period in 2024[193] - Net interest income increased by $426,000 to $42.6 million for the nine months ended September 30, 2025, from $42.2 million for the same period in 2024[194] - Total interest income decreased by $3.3 million, or 3.9%, to $80.9 million for the nine months ended September 30, 2025, primarily due to lower yields on interest-earning assets[198] Asset and Liability Management - Total assets decreased to $2,111,373 thousand as of September 30, 2025, down from $2,232,006 thousand at December 31, 2024, representing a decline of approximately 5.4%[11] - Total liabilities decreased to $1,956,845 thousand as of September 30, 2025, down from $2,078,124 thousand at December 31, 2024, a reduction of approximately 5.8%[11] - Shareholders' equity increased slightly to $154,528 thousand as of September 30, 2025, compared to $153,882 thousand at December 31, 2024[11] - Cash and cash equivalents at the end of the period were $79,289 thousand, a decrease from $82,722 thousand in the previous year[23] - Total deposits as of September 30, 2025, amounted to $1,653.3 million, a decrease of 2.1% from $1,688.0 million on December 31, 2024[73] Credit Quality and Losses - The provision for credit losses showed a recapture of $673 thousand for the three months ended September 30, 2025, compared to a provision of $3,134 thousand in the same period of 2024, indicating a significant improvement in credit quality[13] - The allowance for credit losses on loans was $16,203,000 as of September 30, 2025, compared to $20,449,000 as of December 31, 2024[46] - Nonperforming loans decreased by $17.1 million, or 56.2%, to $13.4 million at September 30, 2025, compared to $30.5 million at December 31, 2024[172] - The company reported a total of $2,125 thousand in gross charge-offs for the year, with $8,172 thousand in the prior year[54] - The provision for credit losses on loans was $6.9 million for the nine months ended September 30, 2025, compared to $13.0 million for the same period in 2024[202] Noninterest Income and Expenses - Noninterest income totaled $2,002 thousand for the three months ended September 30, 2025, compared to $1,779 thousand for the same period in 2024, marking an increase of approximately 12.5%[13] - Total noninterest expense rose to $17,390 thousand for the three months ended September 30, 2025, compared to $15,848 thousand in the same period of 2024, an increase of about 9.7%[13] - Noninterest income decreased by $3.4 million, or 29.7%, to $8.0 million for the nine months ended September 30, 2025, from $11.3 million for the same period in 2024[202] - Noninterest expense increased by $4.4 million, or 9.6%, to $50.2 million for the nine months ended September 30, 2025, compared to $45.8 million for the same period in 2024[204] Investment and Securities - The total securities available for sale amounted to $282,608 thousand as of September 30, 2025, with gross unrealized losses of $(28,604) thousand[37] - The total investment securities as of September 30, 2025, had an amortized cost of $310,545,000 and an estimated fair value of $282,608,000[42] - The company reported a balance of $1,607,825,000 in net loans receivable as of September 30, 2025, with an estimated fair value of $1,493,529,000[119] - The company’s total financial assets available for sale were valued at $282,608,000 as of September 30, 2025[119] Regulatory and Compliance - The effective tax rate for the nine months ended September 30, 2025, was 28.0%, compared to 25.5% for the same period in 2024[87] - The FDIC proposed a rule to adjust regulatory thresholds, increasing the total asset size threshold from $1 billion to $5 billion for certain requirements[158] - The Company received a "satisfactory" rating in its most recent performance evaluation under the CRA framework prior to the October 2023 final rule[155] Strategic Initiatives - First Fed Bank has increased its origination of commercial real estate and multi-family real estate loans to diversify its portfolio and increase interest income[149] - The Company is focused on developing user-friendly digital applications to attract new customers and enhance service delivery[146]

Financial Performance - Net income for Q3 2025 was $802,000, a decrease from $3.7 million in Q2 2025 and a net loss of $2.0 million in Q3 2024[2]. - Adjusted Pre-tax, Pre-Provision Net Revenue (PPNR) for Q3 2025 decreased to $340,000 from $2.1 million in Q2 2025[9]. - The net income for the quarter was $802,000, a significant decrease from $3,661,000 in the previous quarter, reflecting a decline of 78.0%[34]. - Basic earnings per share for the quarter was $0.09, down from $0.42 in the previous quarter, indicating a decrease of 78.6%[34]. - The return on average assets (GAAP) for the quarter was 0.15%, compared to -1.69% in the same quarter last year, showing improvement[41]. Interest and Loans - Net interest margin increased to 2.91% in Q3 2025, up from 2.83% in Q2 2025[6]. - Total interest income decreased by $221,000 to $26.9 million for Q3 2025, compared to $27.1 million in the previous quarter, and decreased by $1.3 million from $28.2 million in Q3 2024[14]. - Net interest income after provision for credit losses was $15,242,000 for the quarter, up from $14,553,000 in the previous quarter, indicating an increase of 4.7%[34]. - Total loans outstanding as of September 30, 2025, were $1,623,132 million, a decrease from $1,664,702 million in June 30, 2025, representing a decline of 2.5%[36]. - The cost of all deposits decreased to 2.20% for the three months ended September 30, 2025, down from 2.56% in the same period of 2024[39]. Asset and Equity Management - Total shareholders' equity increased to $154.5 million at September 30, 2025, from $149.7 million three months earlier, driven by a $3.7 million increase in the fair market values of investment securities and net income of $802,000[22]. - The company reported total assets of $2,111,373,000 as of September 30, 2025, down from $2,171,430,000 in the previous quarter[42]. - Tangible common equity to tangible assets ratio improved to 7.26% as of September 30, 2025, compared to 6.68% a year earlier[42]. - The book value per common share was $16.33 as of September 30, 2025, up from $15.52 a year earlier, indicating a growth of approximately 5.2%[42]. Credit Quality - The allowance for credit losses on loans decreased by $2.1 million to $16.2 million at September 30, 2025, representing 1.00% of total loans[11]. - Nonperforming loans decreased by $7.0 million to $13.4 million at September 30, 2025, from $20.4 million at June 30, 2025[12]. - The provision for credit losses on loans showed a recapture of $(620,000) for the quarter, compared to $(296,000) in the previous quarter, highlighting a positive trend in credit quality[34]. - The company experienced a provision for credit losses of $(673,000) in the latest quarter, compared to a provision of $7,785,000 in the same quarter last year, indicating improved credit quality[41]. Operational Efficiency - The efficiency ratio was reported at 104.9% for Q3 2025, indicating increased operational costs relative to income[7]. - Noninterest expense increased by $4.6 million to $17.4 million for Q3 2025, compared to $12.8 million in the previous quarter, driven by nonrecurring costs related to executive management transition[14]. - Total noninterest expense increased to $17,390,000 for the quarter, compared to $12,765,000 in the previous quarter, marking a rise of 36.5%[34]. Strategic Initiatives - The company is focused on building sustainable earnings by delivering a full array of financial products and services for various customer segments[27]. - The company has strategically invested in partnerships to develop modern financial solutions and a boutique investment banking firm, emphasizing its commitment to innovation and growth[27]. - First Northwest Bancorp was recognized as the Best Bank in Clallam County by Forbes and received multiple awards for corporate philanthropy and community service[25].

Core Insights - First Northwest Bancorp (FNWB) reported quarterly earnings of $0.09 per share, missing the Zacks Consensus Estimate of $0.18 per share, compared to a loss of $0.23 per share a year ago, indicating an earnings surprise of -50.00% [1] - The company posted revenues of $16.57 million for the quarter ended September 2025, missing the Zacks Consensus Estimate by 4.76%, and showing an increase from $15.8 million year-over-year [2] - The stock has underperformed, losing about 19.9% since the beginning of the year, while the S&P 500 gained 15.5% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.18 on revenues of $17.6 million, and for the current fiscal year, it is -$0.08 on revenues of $67.1 million [7] - The estimate revisions trend for First Northwest Bancorp was mixed ahead of the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market [6] Industry Context - The Zacks Industry Rank for Banks - West is currently in the top 17% of over 250 Zacks industries, suggesting that the industry outlook can significantly impact stock performance [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

Core Viewpoint - First Northwest Bancorp reported a net income of $802,000 for Q3 2025, a decrease from $3.7 million in Q2 2025 and a net loss of $2.0 million in Q3 2024, indicating a challenging financial environment [1][2]. Financial Performance - Net income for Q3 2025 was $802,000, with basic and diluted earnings per share at $0.09, compared to $0.42 in Q2 2025 and a loss of $0.23 in Q3 2024 [1]. - Adjusted Pre-tax, Pre-Provision Net Revenue (PPNR) decreased to $340,000 in Q3 2025 from $2.1 million in Q2 2025 and $947,000 in Q3 2024 [8][10]. - Total revenue for Q3 2025 was $16.6 million, down from $17.6 million in Q2 2025 and $15.4 million in Q3 2024 [9]. Key Financial Ratios - Return on average assets was 0.15% for Q3 2025, down from 0.68% in Q2 2025 and a loss of 1.69% in Q3 2024 [4]. - Net interest margin improved to 2.91% in Q3 2025 from 2.83% in Q2 2025, marking five consecutive quarters of improvement [5][14]. - Efficiency ratio increased to 104.9% in Q3 2025 from 78.0% in Q2 2025, indicating rising operational costs [4]. Credit Quality - The allowance for credit losses on loans decreased to $16.2 million at September 30, 2025, from $18.4 million at June 30, 2025, reflecting improved credit quality [11]. - Nonperforming loans decreased to $13.4 million at September 30, 2025, from $20.4 million at June 30, 2025, indicating a positive trend in asset quality [12]. - The ratio of allowance for credit losses to nonperforming loans increased to 121% at September 30, 2025, from 90% at June 30, 2025 [12]. Capital Management - The Board of Directors did not declare a dividend for Q3 2025 as part of a prudent capital management strategy [2]. - Total shareholders' equity increased to $154.5 million at September 30, 2025, compared to $149.7 million at June 30, 2025, due to net income and fair market value increases [22]. - Common Equity Tier 1 and Total Risk-Based Capital Ratios were 12.7% and 13.7%, respectively, indicating strong capital levels [24]. Deposits and Loans - Total deposits decreased slightly to $1.65 billion at September 30, 2025, from $1.65 billion at June 30, 2025, and down from $1.71 billion a year earlier [22]. - Net loans decreased by $39.4 million, or 2.4%, to $1.61 billion at September 30, 2025, compared to $1.65 billion at June 30, 2025 [19][20].

Group 1: Company Performance - First Northwest Bancorp (FNWB) shares increased by 5% to close at $7.75, supported by strong trading volume, contrasting with a 4.2% loss over the past four weeks [1][2] - The company is projected to report quarterly earnings of $0.18 per share, reflecting a year-over-year increase of 178.3%, with revenues expected to reach $17.4 million, up 10.1% from the previous year [3] Group 2: Market Context - The Federal Reserve's initiation of an interest rate cut cycle, with indications of two additional cuts this year, has placed banking stocks in focus, potentially stabilizing banks' funding costs and improving lending scenarios [2] - The consensus EPS estimate for FNWB has remained unchanged over the last 30 days, suggesting that stock price movements may not sustain without trends in earnings estimate revisions [4] Group 3: Industry Comparison - First Northwest Bancorp is part of the Zacks Banks - West industry, where another company, Hanmi Financial (HAFC), saw a 1.2% increase to $25.11, but has returned -1.8% over the past month [4] - Hanmi Financial's consensus EPS estimate is $0.65, indicating a year-over-year change of 32.7%, with its Zacks Rank also at 3 (Hold) [5]

Core Insights - First Fed Bank has launched the Apiture Digital Banking Platform to enhance online and mobile banking for business customers, reflecting its commitment to digital solutions for businesses of all sizes [1][4] Group 1: New Digital Features - The upgraded platform includes advanced cash flow and forecasting tools, a unified view of accounts, and improved self-service and administrative controls for business account holders [2] - The platform aims to provide a seamless user experience across desktop and mobile devices [2] Group 2: Data Intelligence Implementation - First Fed has implemented Apiture's Data Intelligence solution to gain deeper insights into business customers' banking behaviors and preferences [3] - These insights will be used to create more strategic and customized financial solutions, enhancing customer engagement through a personalized digital experience [3] Group 3: Leadership Comments - David Edelstein, chief innovation officer at First Fed, emphasized the importance of modern digital tools in supporting small business and commercial customers while maintaining local relationships [4] - Chris Babcock, CEO of Apiture, expressed excitement about the partnership, highlighting its role in providing leading-edge solutions for financial institutions [4] Group 4: Company Background - First Fed Bank, a subsidiary of First Northwest Bancorp, has been serving Western Washington since 1923, operating 12 full-service branches and three business centers [4] - Apiture is a provider of digital banking solutions to banks and credit unions across the US, offering a flexible, API-first platform [4]