First Northwest Bancorp(US:FNWB)2025-11-06 20:33Financial Performance - Net interest income increased to $14,569 thousand for the three months ended September 30, 2025, compared to $14,020 thousand for the same period in 2024, reflecting a growth of about 3.9%[13] - The net income for the three months ended September 30, 2025, was $802 thousand, a recovery from a net loss of $1,980 thousand in the same period of 2024[13] - Basic earnings per share improved to $0.09 for the three months ended September 30, 2025, compared to a loss of $0.23 per share in the same period of 2024[13] - Comprehensive income for the three months ended September 30, 2025, was $4,571 thousand, compared to $3,193 thousand for the same period in 2024, reflecting an increase of approximately 43.1%[15] - The company recorded a net loss of $4.6 million for the nine months ended September 30, 2025, compared to a net loss of $3.8 million for the same period in 2024[193] - Net interest income increased by $426,000 to $42.6 million for the nine months ended September 30, 2025, from $42.2 million for the same period in 2024[194] - Total interest income decreased by $3.3 million, or 3.9%, to $80.9 million for the nine months ended September 30, 2025, primarily due to lower yields on interest-earning assets[198] Asset and Liability Management - Total assets decreased to $2,111,373 thousand as of September 30, 2025, down from $2,232,006 thousand at December 31, 2024, representing a decline of approximately 5.4%[11] - Total liabilities decreased to $1,956,845 thousand as of September 30, 2025, down from $2,078,124 thousand at December 31, 2024, a reduction of approximately 5.8%[11] - Shareholders' equity increased slightly to $154,528 thousand as of September 30, 2025, compared to $153,882 thousand at December 31, 2024[11] - Cash and cash equivalents at the end of the period were $79,289 thousand, a decrease from $82,722 thousand in the previous year[23] - Total deposits as of September 30, 2025, amounted to $1,653.3 million, a decrease of 2.1% from $1,688.0 million on December 31, 2024[73] Credit Quality and Losses - The provision for credit losses showed a recapture of $673 thousand for the three months ended September 30, 2025, compared to a provision of $3,134 thousand in the same period of 2024, indicating a significant improvement in credit quality[13] - The allowance for credit losses on loans was $16,203,000 as of September 30, 2025, compared to $20,449,000 as of December 31, 2024[46] - Nonperforming loans decreased by $17.1 million, or 56.2%, to $13.4 million at September 30, 2025, compared to $30.5 million at December 31, 2024[172] - The company reported a total of $2,125 thousand in gross charge-offs for the year, with $8,172 thousand in the prior year[54] - The provision for credit losses on loans was $6.9 million for the nine months ended September 30, 2025, compared to $13.0 million for the same period in 2024[202] Noninterest Income and Expenses - Noninterest income totaled $2,002 thousand for the three months ended September 30, 2025, compared to $1,779 thousand for the same period in 2024, marking an increase of approximately 12.5%[13] - Total noninterest expense rose to $17,390 thousand for the three months ended September 30, 2025, compared to $15,848 thousand in the same period of 2024, an increase of about 9.7%[13] - Noninterest income decreased by $3.4 million, or 29.7%, to $8.0 million for the nine months ended September 30, 2025, from $11.3 million for the same period in 2024[202] - Noninterest expense increased by $4.4 million, or 9.6%, to $50.2 million for the nine months ended September 30, 2025, compared to $45.8 million for the same period in 2024[204] Investment and Securities - The total securities available for sale amounted to $282,608 thousand as of September 30, 2025, with gross unrealized losses of $(28,604) thousand[37] - The total investment securities as of September 30, 2025, had an amortized cost of $310,545,000 and an estimated fair value of $282,608,000[42] - The company reported a balance of $1,607,825,000 in net loans receivable as of September 30, 2025, with an estimated fair value of $1,493,529,000[119] - The company’s total financial assets available for sale were valued at $282,608,000 as of September 30, 2025[119] Regulatory and Compliance - The effective tax rate for the nine months ended September 30, 2025, was 28.0%, compared to 25.5% for the same period in 2024[87] - The FDIC proposed a rule to adjust regulatory thresholds, increasing the total asset size threshold from $1 billion to $5 billion for certain requirements[158] - The Company received a "satisfactory" rating in its most recent performance evaluation under the CRA framework prior to the October 2023 final rule[155] Strategic Initiatives - First Fed Bank has increased its origination of commercial real estate and multi-family real estate loans to diversify its portfolio and increase interest income[149] - The Company is focused on developing user-friendly digital applications to attract new customers and enhance service delivery[146]