First Northwest Bancorp Reports Fourth Quarter 2024 Financial Results

Core Points - First Northwest Bancorp reported a net loss of $2.8 million for Q4 2024, an increase from a net loss of $2.0 million in Q3 2024 and a loss of $5.5 million in Q4 2023. The loss per share was $0.32 for Q4 2024 compared to $0.23 in Q3 2024 and $0.62 in Q4 2023 [1][2][3] - The adjusted pre-tax, pre-provision net revenue (PPNR) for Q4 2024 was $1.2 million, a significant improvement from a loss of $49,000 in Q3 2024 and a loss of $327,000 in Q4 2023 [2][11] - The company declared a quarterly cash dividend of $0.07 per common share, payable on February 28, 2025 [2] Financial Performance - The provision for credit losses on loans was $3.8 million in Q4 2024, up from $3.1 million in Q3 2024 and $1.2 million in Q4 2023. This provision negatively impacted net income [8][14] - Total interest income for Q4 2024 was $28.2 million, unchanged from the previous quarter but up from $26.3 million in Q4 2023. The net interest margin increased to 2.73% from 2.70% in Q3 2024 but decreased from 2.84% in Q4 2023 [18][21] - Noninterest expense decreased in Q4 2024, primarily due to a reduction in compensation and other discretionary spending [18] Asset Quality - Nonperforming loans totaled $30.5 million at the end of Q4 2024, a slight increase from $30.4 million at the end of Q3 2024. The allowance for credit losses on loans decreased to $20.5 million, representing 1.21% of total loans [15][24] - Classified loans decreased to $42.5 million, primarily due to charge-offs on commercial business loans [16] Capital and Liquidity - Total deposits decreased by $23.6 million to $1.69 billion at the end of Q4 2024, while total shareholders' equity decreased to $153.9 million [24][26] - The company maintained a strong capital position, with Common Equity Tier 1 and Total Risk-Based Capital Ratios at 12.4% and 13.6%, respectively [26] Strategic Focus - The company aims to improve asset quality and profitability while focusing on growing core commercial and retail customer relationships [3][27] - Investment securities increased by 9.5% to $340.3 million at the end of Q4 2024, with a strategy to rebalance the securities portfolio for 2025 [21][22]