First Northwest Bancorp(US:FNWB)2025-04-24 18:16Financial Performance - First Northwest Bancorp reported net income of $1.5 million for Q1 2025, a significant improvement from a net loss of $2.8 million in Q4 2024 and net income of $396,000 in Q1 2024[1]. - Adjusted pre-tax, pre-provision net revenue (PPNR) for Q1 2025 was $1.5 million, up from $1.4 million in the previous quarter and $1.2 million in Q1 2024[2]. - Total revenue for Q1 2025 was $17.9 million, an increase from $15.4 million in the previous quarter[11]. - Net interest income after provision for credit losses increased to $12,279 thousand, compared to $10,482 thousand in the previous quarter, reflecting a 17.2% improvement[34]. - Net income for the quarter was $1,514 thousand, a recovery from a net loss of $2,810 thousand in the previous quarter[34]. - Basic and diluted earnings per share improved to $0.17, compared to a loss of $0.32 per share in the previous quarter[34]. - The return on average assets (GAAP) improved to 0.28% from -0.51% year-over-year[41]. Loan and Deposit Trends - Nonperforming loans decreased by $4.1 million, or 13.5%, to $26.4 million at March 31, 2025, compared to December 31, 2024[13]. - Total net loans decreased by $31.4 million, or 1.9%, to $1.64 billion at March 31, 2025, compared to $1.68 billion at December 31, 2024[19]. - Total deposits decreased by $22.0 million to $1.67 billion at March 31, 2025, compared to $1.69 billion at December 31, 2024[21]. - Commercial business loans decreased by $31.0 million, or 20.5%, compared to the previous quarter[20]. - Total loans outstanding as of March 31, 2025, were $1,663,849 thousand, a decrease from $1,695,823 thousand in the previous quarter[36]. Credit Quality and Allowance - The allowance for credit losses on loans increased to $20.6 million, representing 1.24% of total loans, up from 1.21% at the end of 2024[12]. - Provision for credit losses was $1.55 million for the quarter ended March 31, 2025, compared to $3.76 million for the previous quarter[19]. - Provision for credit losses on loans was $1,553 thousand, significantly lower than $3,760 thousand in the previous quarter, indicating improved credit quality[34]. - The provision for credit losses was $1,568 for the quarter, down from $3,655 in the previous quarter[41]. Expenses and Dividends - Total noninterest expense was relatively unchanged at $14.3 million for Q1 2025, consistent with the previous quarter and Q1 2024[15]. - Total noninterest expense remained stable at $14,249 thousand, slightly up from $14,233 thousand in the previous quarter[34]. - The company declared a quarterly cash dividend of $0.07 per common share, payable on May 23, 2025[2]. - First Northwest Bancorp paid cash dividends totaling $649,000 in Q1 2025, with no shares repurchased under the Stock Repurchase Plan[24]. Asset Management - Total assets as of March 31, 2025, were $2,176,430,000, a decrease from $2,232,006,000 as of December 31, 2024[32]. - Total liabilities were $2,019,388,000 as of March 31, 2025, compared to $2,078,124,000 as of December 31, 2024[32]. - Total shareholders' equity increased to $157.0 million at March 31, 2025, from $153.9 million three months earlier[21]. - Shareholders' equity increased to $157,042,000 as of March 31, 2025, from $153,882,000 as of December 31, 2024[32]. - The company maintained a book value per common share of $16.63, up from $16.45 in the previous quarter[42]. Strategic Initiatives - The company is evaluating the potential for future stock buybacks due to improved profitability[3]. - First Northwest Bancorp focuses on strategic partnerships to enhance modern financial services, including digital payments and marketplace lending[27]. - The company made an investment in The Meriwether Group, LLC, a boutique investment banking and accelerator firm in 2022[27]. - The company has 18 locations in Washington state, including 12 full-service branches[27]. - The company has 846,123 shares remaining available for repurchase under the Repurchase Plan[24]. Market and Economic Conditions - Forward-looking statements indicate potential risks including competitive pressures and changes in the interest rate environment[28]. - The effective duration of the investment securities portfolio was approximately 4.3 years at March 31, 2025[18]. - The market value of the investment securities portfolio increased by $3.1 million during the first quarter of 2025[18]. - Total interest income for the quarter ended March 31, 2025, was $26,823 thousand, a decrease of 4.2% from $28,197 thousand in the previous quarter[34]. - Total interest-earning assets increased to $2,031,741, with a yield of 5.35%, compared to $2,027,821 and a yield of 5.42% in 2024[38]. - The net interest margin remained stable at 2.76% for both periods[38].