First Northwest Bancorp(US:FNWB)2025-10-27 15:41Financial 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].