First Northwest Bancorp(US:FNWB) Globenewswire·2025-10-27 11:00Core Viewpoint - First Northwest Bancorp reported a net income of $802,000 for Q3 2025, a decrease from $3.7 million in Q2 2025 and a net loss of $2.0 million in Q3 2024, indicating a challenging financial environment [1][2]. Financial Performance - Net income for Q3 2025 was $802,000, with basic and diluted earnings per share at $0.09, compared to $0.42 in Q2 2025 and a loss of $0.23 in Q3 2024 [1]. - Adjusted Pre-tax, Pre-Provision Net Revenue (PPNR) decreased to $340,000 in Q3 2025 from $2.1 million in Q2 2025 and $947,000 in Q3 2024 [8][10]. - Total revenue for Q3 2025 was $16.6 million, down from $17.6 million in Q2 2025 and $15.4 million in Q3 2024 [9]. Key Financial Ratios - Return on average assets was 0.15% for Q3 2025, down from 0.68% in Q2 2025 and a loss of 1.69% in Q3 2024 [4]. - Net interest margin improved to 2.91% in Q3 2025 from 2.83% in Q2 2025, marking five consecutive quarters of improvement [5][14]. - Efficiency ratio increased to 104.9% in Q3 2025 from 78.0% in Q2 2025, indicating rising operational costs [4]. Credit Quality - The allowance for credit losses on loans decreased to $16.2 million at September 30, 2025, from $18.4 million at June 30, 2025, reflecting improved credit quality [11]. - Nonperforming loans decreased to $13.4 million at September 30, 2025, from $20.4 million at June 30, 2025, indicating a positive trend in asset quality [12]. - The ratio of allowance for credit losses to nonperforming loans increased to 121% at September 30, 2025, from 90% at June 30, 2025 [12]. Capital Management - The Board of Directors did not declare a dividend for Q3 2025 as part of a prudent capital management strategy [2]. - Total shareholders' equity increased to $154.5 million at September 30, 2025, compared to $149.7 million at June 30, 2025, due to net income and fair market value increases [22]. - Common Equity Tier 1 and Total Risk-Based Capital Ratios were 12.7% and 13.7%, respectively, indicating strong capital levels [24]. Deposits and Loans - Total deposits decreased slightly to $1.65 billion at September 30, 2025, from $1.65 billion at June 30, 2025, and down from $1.71 billion a year earlier [22]. - Net loans decreased by $39.4 million, or 2.4%, to $1.61 billion at September 30, 2025, compared to $1.65 billion at June 30, 2025 [19][20].