First Northwest Bancorp Announces Fourth Quarter 2025 Results

Core Insights - First Northwest Bancorp reported a net income of $382,000 for Q4 2025, a decrease from $802,000 in Q3 2025 and a significant improvement from a net loss of $2.8 million in Q4 2024 [1] - The company aims to enhance its performance by leveraging data for operational efficiency, strengthening its core deposit base, and focusing on relationship-based loan growth [2] - The Board of Directors did not declare a dividend for the current quarter, reflecting a disciplined approach to capital management [4] Financial Performance - Net interest margin increased to 3.00% in Q4 2025 from 2.91% in Q3 2025, attributed to a decrease in rates paid on interest-bearing liabilities [7] - Total interest income decreased by $773,000 to $26.1 million in Q4 2025 compared to Q3 2025, and decreased by $2.1 million from Q4 2024 [16] - Total noninterest income rose by $1.7 million to $3.7 million in Q4 2025, driven by a reimbursement from the Bank's insurance carrier [16] Deposits and Loans - Total deposits decreased by $54.2 million to $1.6 billion at December 31, 2025, compared to $1.7 billion at September 30, 2025 [22] - Net loans increased by $4.2 million, or 0.3%, to $1.6 billion at December 31, 2025, from $1.6 billion at September 30, 2025 [19] - The customer deposit mix shifted towards increased average savings account balances while average balances of other accounts decreased [23] Credit Quality - The allowance for credit losses on loans increased to $17.0 million at December 31, 2025, from $16.2 million at September 30, 2025 [12] - Nonperforming loans rose to $22.6 million at December 31, 2025, from $13.4 million at September 30, 2025 [13] - The ratio of allowance for credit losses to nonperforming loans decreased to 75% at December 31, 2025, from 121% at September 30, 2025 [13] Capital and Equity - Total shareholders' equity increased to $157.3 million at December 31, 2025, compared to $154.5 million three months earlier [24] - The Bank was categorized as "well-capitalized" at December 31, 2025, with Common Equity Tier 1 and Total Risk-Based Capital Ratios at 12.5% and 13.6%, respectively [25]