Financial Performance - Net loss attributable to the parent was $(1,980) thousand for the three months ended September 30, 2024, compared to a net income of $2,504 thousand in the same period last year, reflecting a significant downturn[11]. - Comprehensive income for the three months ended September 30, 2024, was $3,193 thousand, compared to a comprehensive loss of $(3,280) thousand in the same period last year, indicating a turnaround in comprehensive performance[13]. - The company reported a basic and diluted loss per common share of $(0.23) for the three months ended September 30, 2024, compared to earnings of $0.28 per share in the same period of 2023[11]. - The company recorded a net loss of $3.8 million for the nine months ended September 30, 2024, compared to net income of $7.8 million for the same period in 2023[204]. Income and Expenses - Net interest income after provision for credit losses decreased to $10,886 thousand for the three months ended September 30, 2024, down from $14,579 thousand for the same period in 2023, representing a decline of about 25.5%[11]. - Total interest income rose to $28,206 thousand for the three months ended September 30, 2024, compared to $25,834 thousand in the prior year, marking an increase of approximately 9.0%[11]. - Noninterest income for the three months ended September 30, 2024, was $1,779 thousand, down from $2,904 thousand in the same period of 2023, a decrease of about 38.8%[11]. - Total noninterest expense increased to $15,848 thousand for the three months ended September 30, 2024, compared to $14,376 thousand in the prior year, representing an increase of approximately 10.3%[11]. Assets and Liabilities - Total assets increased to $2,255,486 thousand as of September 30, 2024, compared to $2,201,797 thousand at December 31, 2023, reflecting a growth of approximately 2.4%[7]. - Total liabilities increased to $2,094,697 thousand as of September 30, 2024, from $2,038,457 thousand at December 31, 2023, an increase of approximately 2.8%[7]. - The total shareholders' equity at September 30, 2024, was $160,789,000, a decrease from $163,340,000 at December 31, 2023[17]. Credit Losses and Loans - Provision for credit losses on loans increased significantly to $3,077 thousand for the three months ended September 30, 2024, compared to $880 thousand for the same period in 2023, indicating a rise of over 249.9%[11]. - The allowance for credit losses on loans rose to $21,970,000 as of September 30, 2024, up from $17,510,000 at the end of 2023[55]. - Nonaccrual loans totaled $30,376,000 as of September 30, 2024, with interest income recognized on a cash basis for the three months ended September 30, 2024, being $1,000[58]. - The total loans receivable increased to $1,734,807,000 as of September 30, 2024, compared to $1,660,028,000 as of December 31, 2023, reflecting a growth of approximately 4.5%[55]. Deposits and Borrowings - Total deposits increased to $1,711.6 million as of September 30, 2024, compared to $1,676.9 million at December 31, 2023, reflecting a growth of 2.07%[88]. - The weighted-average interest rate on total deposits rose to 2.68% in September 2024 from 2.34% in December 2023[88]. - The total outstanding balance of FHLB long-term advances was $160.0 million as of September 30, 2024, with a weighted-average interest rate of 3.63%[100]. Securities and Investments - The total investment securities as of September 30, 2024, were valued at $310,860,000, down from an amortized cost of $341,011,000[49]. - The company recorded gross realized losses of $2,117,000 from the sales of available-for-sale securities for the nine months ended September 30, 2024[51]. - The total gross unrealized losses for available-for-sale securities in a loss position as of September 30, 2024, was $30,209 thousand[45]. Compensation and Equity - The company reported total compensation expense for equity incentive plans was $781,000, a decrease of 29% from $1.1 million in the same period of 2023[116]. - The number of non-vested restricted stock awards increased to 114,075 shares as of September 30, 2024, from 108,143 shares at the beginning of the quarter[116]. - The company granted 81,181 shares of restricted stock during the nine months ended September 30, 2024, compared to 96,022 shares in the same period of 2023[118]. Tax and Regulatory Matters - The effective tax rates were 25.5% for the nine months ended September 30, 2024, compared to 19.9% for the same period in 2023[103]. - The company adopted ASU 2022-02 on January 1, 2023, which introduced new reporting requirements for modifications of loans to borrowers experiencing financial difficulty[73].

Core Viewpoint - First Northwest Bancorp (FNWB) is under investigation for potential violations of federal securities laws and unlawful business practices following the disclosure of significant financial discrepancies [1][2]. Financial Performance - On October 25, 2024, FNWB announced that its second quarter 2024 financial results should no longer be relied upon due to an additional $6.6 million in charge-offs and an increased provision for credit losses, totaling a restated provision of $8.7 million [2]. - A material weakness in the Company's internal control over financial reporting was identified as of June 30, 2024 [2]. Stock Market Reaction - Following the announcement of the financial issues, FNWB's stock price decreased by $0.23 per share, or 2.2%, closing at $10.13 per share on October 28, 2024 [3].

Financial Performance - First Northwest Bancorp (FNWB) reported a quarterly loss of $0.23 per share, significantly missing the Zacks Consensus Estimate of $0.05, and down from earnings of $0.28 per share a year ago, representing an earnings surprise of -560% [1] - The company posted revenues of $15.8 million for the quarter ended September 2024, missing the Zacks Consensus Estimate by 8.15%, and down from $17.85 million in the same quarter last year [2] - Over the last four quarters, FNWB has surpassed consensus EPS estimates only once and has topped consensus revenue estimates just once [2] Stock Performance - FNWB shares have declined approximately 36.5% since the beginning of the year, contrasting with the S&P 500's gain of 22.1% [3] - The current consensus EPS estimate for the upcoming quarter is $0.21 on revenues of $17.7 million, and for the current fiscal year, it is $0.46 on revenues of $66.8 million [7] Industry Outlook - The Zacks Industry Rank indicates that the Banks - West industry is currently in the bottom 39% of over 250 Zacks industries, suggesting potential challenges for FNWB's stock performance [8] - Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact FNWB's future performance [5]

Financial Performance - First Northwest Bancorp reported a net loss of $2.2 million for Q2 2024, compared to a net income of $396,000 in Q1 2024 and $1.8 million in Q2 2023[6]. - Total revenue, net of interest expense, was $21.6 million in Q2 2024, up from $16.1 million in Q1 2024 and $17.7 million in Q2 2023[4]. - The company reported a net loss of $2,219 thousand for June 30, 2024, compared to a net income of $1,776 thousand for June 30, 2023[66]. - Net loss for the first half of 2024 was $(1,823), a decrease of 134.4% compared to the same period in 2023[59]. - Basic and diluted loss earnings per common share for Q2 2024 was $(0.25), a decline of 725.0% from Q1 2024[57]. Credit Losses and Provisions - The provision for credit losses increased to $8.7 million in Q2 2024, primarily due to loan charge-offs related to substandard lending relationships[5]. - The provision for credit losses was $8.7 million in Q2 2024, compared to $970,000 in Q1 2024 and $300,000 in Q2 2023, primarily due to charge-offs in commercial loans[14]. - Provision for credit losses on loans surged to $8,640 in Q2 2024, a dramatic increase of 597.3% from Q1 2024 and 2,780.0% year-over-year[57]. - The allowance for credit losses on loans increased to $19,300 thousand, representing 1.14% of total loans as of June 30, 2024, up from 1.05% in Q1 2024[39]. - Nonperforming loans rose to $23,631 thousand in Q2 2024, an increase of $4,150 thousand from Q1 2024, primarily due to credit concerns related to commercial construction loans[40]. Loans and Deposits - The company experienced a significant increase in non-real estate loans, which rose by 11%, approximately $41 million, year-to-date in 2024, while real estate loans remained flat[3]. - Total deposits grew by $41.7 million, or 2.5%, to $1.71 billion during the second quarter[5]. - Total net loans decreased by $15.0 million, or 0.9%, to $1.68 billion at June 30, 2024, compared to $1.69 billion at March 31, 2024, but increased by $56.9 million, or 3.5%, from $1.62 billion one year ago[29]. - Total deposits increased to $1,708,288 thousand in Q2 2024, up from $1,676,892 thousand in Q1 2024, representing a growth of 7.7% year-over-year[38]. - Consumer deposits accounted for 57% of total deposits, with an average balance of $23,000 per account[36]. Interest Income and Expenses - Total interest income for Q2 2024 was $28,611, an increase of 4.7% from Q1 2024 and 12.3% year-over-year[57]. - Total interest expense increased by $978,000 to $14.4 million in Q2 2024, up from $13.4 million in Q1 2024, and up $4.9 million from $9.5 million in Q2 2023[12]. - Total interest expense for Q2 2024 was $14,376, up 7.3% from Q1 2024 and 51.5% year-over-year[57]. - The cost of total deposits increased to 2.47% in Q2 2024, compared to 2.43% in Q1 2024, reflecting rising interest rates[38]. Noninterest Income and Expenses - Noninterest income surged to $7.4 million in Q2 2024, a 329.4% increase from $1.7 million in Q2 2023, driven by a sale-leaseback transaction[20]. - Noninterest income for Q2 2024 reached $7,347, a significant increase of 235.8% from Q1 2024 and 329.4% year-over-year[57]. - Noninterest expense totaled $15.6 million in Q2 2024, up from $14.3 million in Q1 2024 and $15.2 million in Q2 2023, mainly due to increased incentive compensation and a one-time tax assessment[22]. Shareholder Equity and Capital Ratios - Total shareholders' equity decreased to $158,900 thousand at June 30, 2024, compared to $160,500 thousand at March 31, 2024, due to a net loss of $2,200 thousand[43]. - Common Equity Tier 1 capital ratio was 12.4% as of June 30, 2024, remaining above regulatory requirements[43]. - Return on average equity for June 30, 2024, was -5.47%, compared to 4.41% for June 30, 2023[66]. - Book value per common share was $16.81, up from $16.56 a year earlier[62]. Operational Changes and Future Outlook - A reduction-in-force impacting 9% of the workforce was completed on July 24, 2024, expected to reduce compensation expenses by approximately $1.0 million per quarter starting in Q4 2024[5]. - The company anticipates potential risks including increased competitive pressures and changes in the interest rate environment affecting future performance[51]. - The Company authorized a new share repurchase plan for 944,279 shares in Q2 2024, alongside cash dividends totaling $670,000[44].

As of Sept. 6, 2024, four stocks in the financials sector could be flashing a real warning to investors who value momentum as a key criteria in their trading decisions. The RSI is a momentum indicator, which compares a stock's strength on days when prices go up to its strength on days when prices go down. When compared to a stock's price action, it can give traders a better sense of how a stock may perform in the short term. An asset is typically considered overbought when the RSI is above 70, according to ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2024 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _____ to _____ Commission File Number: 001-36741 FIRST NORTHWEST BANCORP | --- | --- | |---------------------------------------------------------------- ...

Exhibit 99.1 "In spite of challenging times for the entire industry as a result of the rate environment, First Northwest executed on a balance sheet restructure strategy. The restructure included a sale-leaseback transaction for six of our branches, a restructure of our bankowned life insurance policies, two securities loss sale transactions, two balance sheet hedges against fixed rate loans and municipal bonds and the sale of our Visa B shares," commented Matthew P. Deines, President and CEO. "As a result, ...

Contact: Matthew P. Deines President & CEO 360-457-0461 First Northwest Bancorp (Nasdaq: FNWB) is a financial holding company engaged in investment activities including the business activity of its subsidiary, First Fed Bank, along with other fintech partnerships. First Fed is a small business-focused financial institution which has served its customers and communities since 1923. Currently First Fed has 18 locations in Washington state including 12 full-service branches. First Fed's business and operating ...

"As a community bank, First Fed is an essential partner for many local businesses, families, and individuals. I'm honored to continue supporting our customers while balancing risk to ensure our bank's long-term stability and sustainable growth," said Henderson. "Terry has been a steadfast leader over the past six years. He will always be part of the First Fed family. We wish Terry well in his next chapter of life," said Deines. First Northwest Bancorp (Nasdaq: FNWB) is a financial holding company engaged in ...

Core Viewpoint - First Fed Bank has promoted Kyle Henderson to Chief Credit Officer, succeeding Terry Anderson, who has retired after six years in the role [1][5]. Group 1: Leadership Transition - Kyle Henderson has been with First Fed since 2023 as Deputy Chief Credit Officer and is expected to ensure a smooth transition in credit administration leadership [1][2]. - Henderson has 16 years of experience in credit administration and financial services, previously serving as EVP of Credit for FirstBank in Denver, Colorado [3]. Group 2: Company Background - First Northwest Bancorp (FNWB) is a financial holding company that operates First Fed Bank, focusing on small business and community banking since 1923 [5]. - First Fed Bank has 18 locations in Washington state, including 12 full-service branches, and aims to build sustainable earnings through a full array of financial products and services [5]. Group 3: Community Engagement and Recognition - First Fed Bank has been recognized as a top Corporate Philanthropist in 2024 and has received multiple awards for being the best bank in various categories [6].