First Northwest Bancorp(FNWB) - 2024 Q3 - Quarterly Report

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].