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].

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, ...

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].

"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 ...

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 March 31, 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 | (Exact name of registrant as specified in its charter) | | | --- | --- | | W ...

Exhibit 99.1 PORT ANGELES, Wash., April 25, 2024 (GLOBE NEWSWIRE) First Northwest Bancorp Reports First Quarter 2024 Financial Results "The company returned to profitability in Q1 2024 following the first step of our balance sheet restructure in the fourth quarter of 2023," said Matthew P. Deines, President and CEO. "We continue to execute on this strategy as we added over $90 million in current market rate loans and securities over the course of the first quarter. We will continue this strategy in the seco ...

PORT ANGELES, Wash., April 08, 2024 (GLOBE NEWSWIRE) -- First Fed Bank has announced two new executive roles to foster a sharpened focus on digital and strategic initiatives. David Edelstein has been hired as Chief Innovation Officer, and will lead digital banking, technology, data, and fintech partnerships.  Edelstein brings more than 25 years of leadership experience in financial services and technology. "David is a skilled technology leader with significant knowledge and expertise in data, digital bankin ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K Commission File Number: 001-36741 FIRST NORTHWEST BANCORP (Exact name of registrant as specified in its charter) Washington 46-1259100 (State or other jurisdiction of incorporation or organization) (I.R.S. Employer I.D. Number) 105 West 8th Street, Port Angeles, Washington 98362 (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code: (360) 457-0461 Securities registered pursuant ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Table of Contents FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2023 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 | (Exact name of registrant as specified in its charter) | | | --- | --- | ...

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, 2023 Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting comp ...