AG˹ٷ

STOCK TITAN

First Northwest Bancorp ReportsFirst Quarter2025 Improved Profitability

Rhea-AI Impact
(Low)
Rhea-AI Sentiment
(Neutral)
Tags

First Northwest Bancorp (FNWB) reported improved financial results for Q1 2025, with net income of $1.5 million, compared to a net loss of $2.8 million in Q4 2024 and net income of $396,000 in Q1 2024. The company's earnings per share reached $0.17, up from -$0.32 in Q4 2024.

Key highlights include a $45.0 million decrease in brokered deposits while core customer deposits grew by $23.0 million. The company maintained a loan-to-deposit ratio of 99.9% and reduced borrowings by $28.9 million. Total cost of funds decreased to 2.67% from 2.80% in Q4 2024.

The company recorded a $1.6 million provision for credit losses due to $1.4 million in charge-offs. Notable gains included a $1.1 million BOLI death benefit, $846,000 from debt extinguishment, and $315,000 from loan conversion to equity investment. The Board declared a quarterly cash dividend of $0.07 per share, payable May 23, 2025.

First Northwest Bancorp (FNWB) ha riportato risultati finanziari migliorati per il primo trimestre del 2025, con un utile netto di 1,5 milioni di dollari, rispetto a una perdita netta di 2,8 milioni di dollari nel quarto trimestre del 2024 e un utile netto di 396.000 dollari nel primo trimestre del 2024. L’utile per azione della società ha raggiunto 0,17 dollari, in crescita rispetto a -0,32 dollari nel quarto trimestre del 2024.

I punti salienti includono una riduzione di 45,0 milioni di dollari nei depositi intermediati, mentre i depositi core dei clienti sono aumentati di 23,0 milioni di dollari. La società ha mantenuto un rapporto prestiti/depositi del 99,9% e ha ridotto gli indebitamenti di 28,9 milioni di dollari. Il costo totale dei fondi è diminuito al 2,67% dal 2,80% del quarto trimestre 2024.

La società ha registrato una accantonamento per perdite su crediti di 1,6 milioni di dollari a causa di 1,4 milioni di dollari di cancellazioni. Tra i guadagni rilevanti figurano un beneficio per decesso BOLI di 1,1 milioni di dollari, 846.000 dollari da estinzione di debiti e 315.000 dollari dalla conversione di prestiti in investimenti azionari. Il Consiglio ha dichiarato un dividendo trimestrale in contanti di 0,07 dollari per azione, pagabile il 23 maggio 2025.

First Northwest Bancorp (FNWB) reportó resultados financieros mejorados para el primer trimestre de 2025, con un ingreso neto de 1.5 millones de dólares, en comparación con una pérdida neta de 2.8 millones en el cuarto trimestre de 2024 y un ingreso neto de 396,000 dólares en el primer trimestre de 2024. Las ganancias por acción alcanzaron los 0.17 dólares, frente a -0.32 dólares en el cuarto trimestre de 2024.

Los aspectos destacados incluyen una disminución de 45.0 millones de dólares en depósitos intermediados, mientras que los depósitos principales de clientes crecieron en 23.0 millones. La empresa mantuvo una relación préstamo-depósito del 99.9% y redujo los préstamos en 28.9 millones. El costo total de fondos disminuyó a 2.67% desde 2.80% en el cuarto trimestre de 2024.

La compañía registró una provisión para pérdidas crediticias de 1.6 millones de dólares debido a 1.4 millones en cancelaciones. Las ganancias notables incluyeron un beneficio por fallecimiento BOLI de 1.1 millones, 846,000 dólares por extinción de deuda y 315,000 dólares por conversión de préstamos en inversión de capital. La Junta declaró un dividendo trimestral en efectivo de 0.07 dólares por acción, pagadero el 23 de mayo de 2025.

퍼스� 노스웨스� 뱅코�(FNWB)� 2025� 1분기� 순이� 150� 달러� 기록하며 재무 실적� 개선되었다고 보고했습니다. 이는 2024� 4분기 순손� 280� 달러와 2024� 1분기 순이� 39� 6� 달러와 비교됩니�. 주당 순이익은 0.17달러� 2024� 4분기� -0.32달러에서 상승했습니다.

주요 내용으로� 중개 예금 4,500� 달러 감소가 있었으나 핵심 고객 예금은 2,300� 달러 증가했습니다. 회사� 대� 대� 예금 비율� 99.9%� 유지했으� 차입금은 2,890� 달러 줄였습니�. � 자금 비용은 2024� 4분기 2.80%에서 2.67%� 감소했습니다.

회사� 140� 달러� 대손충당금으로 인해 160� 달러� 신용손실 충당�� 기록했습니다. 주요 이익으로� 110� 달러� BOLI 사망보험�, 84� 6� 달러� 부� 소멸 이익, 31� 5� 달러� 대출을 주식 투자� 전환� 이익� 포함됩니�. 이사회는 2025� 5� 23� 지� 예정� 주당 0.07달러� 분기 현금 배당금을 선언했습니다.

First Northwest Bancorp (FNWB) a annoncé des résultats financiers améliorés pour le premier trimestre 2025, avec un bénéfice net de 1,5 million de dollars, contre une perte nette de 2,8 millions au quatrième trimestre 2024 et un bénéfice net de 396 000 dollars au premier trimestre 2024. Le bénéfice par action a atteint 0,17 dollar, en hausse par rapport à -0,32 dollar au quatrième trimestre 2024.

Les points clés incluent une baisse de 45,0 millions de dollars des dépôts intermédiés, tandis que les dépôts clients de base ont augmenté de 23,0 millions. La société a maintenu un ratio prêts/dépôts de 99,9 % et a réduit ses emprunts de 28,9 millions. Le coût total des fonds est passé de 2,80 % au quatrième trimestre 2024 à 2,67 %.

L’entreprise a enregistré une provision pour pertes sur crédits de 1,6 million de dollars suite à 1,4 million de dollars de radiations. Parmi les gains notables figurent un bénéfice décès BOLI de 1,1 million, 846 000 dollars provenant d’extinctions de dette et 315 000 dollars de conversion de prêts en investissement en actions. Le conseil d’administration a déclaré un dividende trimestriel en espèces de 0,07 dollar par action, payable le 23 mai 2025.

First Northwest Bancorp (FNWB) meldete verbesserte Finanzergebnisse für das erste Quartal 2025 mit einem Nettogewinn von 1,5 Millionen US-Dollar, verglichen mit einem Nettoverlust von 2,8 Millionen im vierten Quartal 2024 und einem Nettogewinn von 396.000 US-Dollar im ersten Quartal 2024. Der Gewinn je Aktie stieg auf 0,17 US-Dollar, nach -0,32 US-Dollar im vierten Quartal 2024.

Zu den wichtigsten Punkten zählt ein Rückgang der vermittelten Einlagen um 45,0 Millionen US-Dollar, während die Kernkundeneinlagen um 23,0 Millionen US-Dollar zunahmen. Das Unternehmen hielt eine Kredit-zu-Einlagen-Quote von 99,9 % und reduzierte die Verbindlichkeiten um 28,9 Millionen US-Dollar. Die Gesamtkapitalkosten sanken von 2,80 % im vierten Quartal 2024 auf 2,67 %.

Das Unternehmen bildete eine Rückstellung für Kreditausfälle in Höhe von 1,6 Millionen US-Dollar aufgrund von Abschreibungen in Höhe von 1,4 Millionen US-Dollar. Bedeutende Gewinne umfassten eine BOLI-Todesfallleistung von 1,1 Millionen US-Dollar, 846.000 US-Dollar aus Schuldenablösungen und 315.000 US-Dollar aus der Umwandlung von Krediten in Eigenkapitalinvestitionen. Der Vorstand erklärte eine vierteljährliche Bardividende von 0,07 US-Dollar pro Aktie, zahlbar am 23. Mai 2025.

Positive
  • Net income improved to $1.5 million from a $2.8 million loss in previous quarter
  • Core customer deposits grew by $23.0 million
  • Total cost of funds decreased to 2.67% from 2.80%
  • Nonperforming loans decreased 14% from previous quarter
  • Multiple gains recorded: $1.1M BOLI benefit, $846K debt extinguishment, $315K loan conversion
Negative
  • $1.4 million in loan charge-offs
  • $1.6 million provision for credit losses required
  • Net interest income decreased to $13.8 million from $14.1 million in previous quarter
  • Total interest income declined by $1.4 million to $26.8 million

Insights

First Northwest returns to profitability with $1.5M Q1 earnings, improved asset quality, and stronger funding position despite ongoing credit challenges.

First Northwest Bancorp has engineered a significant financial turnaround in Q1 2025, reporting net income of $1.5 million compared to a $2.8 million loss in Q4 2024 and just $396,000 in Q1 2024. This translates to earnings per share of $0.17, a substantial improvement from the previous quarter's loss of $0.32.

The bank's fundamentals show measurable improvement across several key metrics. The adjusted pre-tax, pre-provision net revenue increased to $1.5 million from $1.4 million in Q4 2024, demonstrating enhanced core operational performance. Asset quality metrics trended positively with nonperforming loans decreasing 14% quarter-over-quarter, while classified loans declined by $4.7 million.

Several one-time items contributed to the quarterly results, including a $1.1 million BOLI death benefit, $846,000 gain on debt extinguishment, and a $315,000 gain on conversion of a loan receivable to equity investment. However, even excluding these non-recurring items, the bank's core performance remained improved.

The bank's funding structure strengthened through a favorable deposit mix shift, with brokered deposits decreasing $45 million while core customer deposits grew $23 million. This contributed to reducing the total cost of funds to 2.67% from 2.80% in Q4 2024. The institution also reduced borrowings by $28.9 million, further enhancing its liability structure.

While credit quality showed improvement, the bank still recorded a $1.6 million provision for credit losses, primarily due to $1.4 million in charge-offs. Three significant commercial relationships account for 57% of classified loans, presenting some concentration risk. However, management expressed confidence in continued asset quality improvement throughout 2025, backed by tangible progress in the current quarter.

Performance ratios reflect the positive trajectory, with return on average assets improving to 0.28% from -0.51%, and return on average equity at 3.92% compared to -6.92% in Q4 2024. The efficiency ratio improved to 79.4% from 92.2%, though still leaves room for further operational enhancements.

PORT ANGELES, Wash., April 24, 2025 (GLOBE NEWSWIRE) -- First Northwest Bancorp (Nasdaq: FNWB)("First Northwest" or the "Company") today reported net income of$1.5 million for the first quarter of 2025, compared to a net loss of$2.8 million for thefourth quarter of 2024 and net income of$396,000 for the first quarter of 2024. Basic and diluted income per share were$0.17 for the first quarter of 2025, compared to basic and diluted loss per share of$0.32 for thefourth quarter of 2024 and basic and diluted income per share of$0.04 for the first quarter of 2024.

In the first quarter of 2025, the Company recorded adjusted pre-tax, pre-provision net revenue ("PPNR")(1) of $1.5 million, compared to$1.4 millionfor the preceding quarter and$1.2 millionfor the first quarter of 2024.

The Board of Directors of First Northwestdeclared a quarterly cash dividend of $0.07per common share, payable on May 23, 2025, to shareholders of record as of the close of business on May 9, 2025.

Quote from First Northwest President and CEO, Matthew P. Deines:
"We were pleased to see improved profitability in the first quarter of 2025, which helped grow capital levels and tangible book value. We saw improvement on our asset quality metrics, with nonperforming loans 14% lower than the prior quarter, and remain focused on continued asset quality improvementover the balance of 2025. Core commercial and consumer customer growth was positive during the first quarter, with lower net loans and deposits largely the result of a decrease in funding to one large wholesale relationshipand reduced brokered deposit balances. We expect better core growth and asset quality trends,combined with ongoing expense discipline and modest margin improvement, will continue to improve profitability and capital in future quarters. With improved profitability, we are evaluating the potential for future stock buybacks."

Key Points forFirst Quarter and Going Forward

Positive Balance Sheet Trends:

  • A favorable deposit mix shift included a $45.0 million decrease in brokered deposits while core customer deposits grew $23.0 million. The loan-to-deposit ratio was stable at 99.9% compared to 99.3% in the fourth quarter of 2024.
  • The Company reduced borrowings by $28.9 million. The total cost of funds decreased to 2.67% compared to 2.80% in the fourth quarter of 2024.

Update on provision for credit losses:

  • The Company recorded a $1.6 million provision for credit losses on loans in the first quarter of 2025, primarily due to $1.4 million of charge-offs related to three commercial business loans, one commercial construction loan and a small number of consumer loans. This compares to loan credit loss provisions of $3.8 million for the preceding quarter and $1.2 million for the first quarter of 2024.
  • We believe the reserve on individually analyzed loans does not represent a universal decline in the collectability of all loans in the portfolio. We continue to work on resolution plans for all troubled borrowers and expect further improvement in nonperforming loans over the course of 2025.

Other significant events:

  • First Fed Bank's ("First Fed" or the "Bank") balance sheet restructuring continued with the remaining bank-owned life insurance policy ("BOLI") surrender transaction recorded in the first quarter of 2025, with $266,000 of tax and penalties recorded in the provision for income tax. The surrendered policy value was reinvested in the second quarter of 2025. We expect to receive the return of the surrendered funds early in the third quarter of 2025.
  • We sadly lost a former Bank employee in the first quarter of 2025, resulting in a $1.1 million BOLI death benefit gain.
  • The Company recorded a $846,000 gain on extinguishment of debt related to repurchasing $5.0 million of subordinated debt at a discount during the first quarter of 2025. In addition to the current quarter gain, the future cost related to interest expense on the subordinated debt will be reduced.
  • The Company also recognized a $315,000 gain on the conversion of a commercial business loan receivable into a Series A equity investment during the first quarter of 2025.

(1) See reconciliation of Non-GAAP Financial Measures later in this release.

Selected Quarterly Financial Ratios:

As of or For the Quarter Ended
March 31,
2025
December 31,
2024
September 30,
2024
June 30,
2024
March 31,
2024
Performance ratios: (1)
Return on average assets0.28%-0.51%-0.36%-0.40%0.07%
Adjusted PPNR return on average assets (2)0.270.260.170.100.22
Return on average equity3.92-6.92-4.91-5.470.98
Net interest margin (3)2.762.732.702.762.76
Efficiency ratio (4)79.492.2100.372.388.8
Equity to total assets7.226.897.137.177.17
Book value per common share$16.63$16.45$17.17$16.81$17.00
Tangible performance ratios: (1)
Tangible common equity to tangible assets (2)7.15%6.83%7.06%7.10%7.10%
Return on average tangible common equity (2)3.96-6.99-4.96-5.530.99
Tangible book value per common share (2)$16.48$16.29$17.00$16.64$16.83
Capital ratios (First Fed): (5)
Tier 1 leverage9.5%9.4%9.4%9.4%9.7%
Common equity Tier 1 capital12.712.412.212.412.6
Total risk-based13.913.613.413.513.6


(1)Performance ratios are annualized, where appropriate.
(2)See reconciliation of Non-GAAP Financial Measures later in this release.
(3)Net interest income divided by average interest-earning assets.
(4)Total noninterest expense as a percentage of net interest income and total other noninterest income.
(5)Current period capital ratios are preliminary and subject to finalization of the FDIC Call Report.


Adjusted Pre-tax, Pre-Provision Net Revenue
(1)

Adjusted PPNR for thefirst quarter of 2025increased$40,000to $1.5 million, compared to$1.4 millionfor the preceding quarter, and increased$308,000from$1.2 millionin thefirst quarter oneyear ago.

For the Quarter Ended
(Dollars in thousands)March 31,
2025
December 31,
2024
September 30,
2024
June 30,
2024
March 31,
2024
Net interest income$13,847$14,137$14,020$14,235$13,928
Total noninterest income4,0921,3001,7797,3472,188
Total revenue17,93915,43715,79921,58216,116
Total noninterest expense14,24914,23315,84815,60914,303
PPNR (1)3,6901,204(49)5,9731,813
Less selected nonrecurring adjustments to PPNR:
BOLI death benefit1,0591,536
Gain on extinguishment of subordinated debt included in other income846
Gain on conversion of loan receivable into Series A equity investment315
Equity investment repricing adjustment(1,762)651
One-time compensation payouts related to reduction in force(996)
Net gain on sale of premises and equipment7,919
Sale leaseback taxes and assessments included in occupancy and equipment(359)
Net gain on sale of investment securities(2,117)
Adjusted PPNR (1)$1,470$1,430$947$530$1,162


(1) See reconciliation of Non-GAAP Financial Measures later in this release.

  • Total interest income decreased $1.4 million to $26.8 million for the first quarter of 2025, compared to $28.2 million for the previous quarter, and decreased $503,000 compared to $27.3 million in the first quarter of 2024. Interest income decreased in the first quarter of 2025 primarily due to a decrease in the income earned on loans receivable and reduced interest income received on Company deposit accounts as both yields earned and average volumes decreased. Average loan balances and related interest income were impacted by a significant decrease in the Northpointe Bank Mortgage Purchase Program ("Northpointe Bank MPP") of $24.7 million and $461,000, respectively. Variable-rate yields on loans and investments were impacted by the cumulative 100 basis points Federal Reserve rate cuts which occurred between September and December 2024.
  • Total interest expense decreased $1.1 million to $13.0 million for the first quarter of 2025, compared to $14.1 million for the previous quarter, and decreased $422,000 compared to $13.4 million in the first quarter of 2024. Interest expense decreased in the first quarter of 2025 primarily due to decreases in interest paid on brokered certificates of deposit ("CDs"), money market accounts and customer CDs.
  • The net interest margin increased to 2.76% for the first quarter of 2025, from 2.73% for the prior quarter, and was flat compared to the first quarter of 2024. The Company reported reduced rates and declining volumes of CDs and money market accounts during the first quarter of 2025 which lowered costs; however, these savings were partially offset by a decrease in interest earned on loans and an increase in cost due to higher average borrowings.
  • Noninterest income included a $1.1 million BOLI death benefit payment received due to the passing of a former employee, a $846,000 gain on extinguishment of debt and a $315,000 gain on the conversion of a loan receivable into an equity investment during the current quarter.
  • Noninterest expense was relatively unchanged at $14.3 million for the first quarter of 2025, compared to the previous quarter and the first quarter of 2024.

Allowance for Credit Losses on Loans ("ACLL") and Credit Quality

The allowance for credit losses on loans ("ACLL") increased$176,000to$20.6 million at March 31, 2025, from$20.5 million at December 31, 2024. The ACLL as a percentage of total loans was1.24% at March 31, 2025, an increasefrom 1.21%at December 31, 2024, and an increase from1.05% one year earlier. The small increase to the pooled loan reserve combined with charge-offs totaling $1.4 million resulted in a provision expense of $1.6million for the quarter ended March 31, 2025.

Nonperforming loans totaled$26.4 million at March 31, 2025, a decrease of$4.1 million, or 13.5%, from December 31, 2024. ACLL to nonperforming loans increased to78% at March 31, 2025, from67% at December 31, 2024, and decreased from92% at March 31, 2024. This ratio increased during the first quarter as principal payments and charge-offs decreased balances on loans that were already adequately reserved.

Classified loans decreased$4.7 million to$37.9 million at March 31, 2025, from$42.5 millionat December 31, 2024, primarily due to $3.9 million in principal payments received on two commercial construction loans and charge-offs totaling$825,000 on two commercial business loans and one commercial construction loan during thefirst quarter. An $8.1million construction loan relationship, which became a classified loanin the fourth quarter of 2022; a$7.2million commercial construction loan relationship, which became classified in the second quarter of 2024; and a $6.2million commercial loan relationship, which became classified in the fourth quarter of 2023, account for 57% of the classified loan balance at March 31, 2025.The Bank has exercised legal remedies, including the appointment of a third-party receiverand foreclosure actions, to liquidate the underlying collateral to satisfy thereal estate loans in two of thesethree collateral-dependentrelationships. The Bank is also closely monitoring a group of commercial business loans that have similar collateral, with 16loans totaling $1.7million included in classified loans at March 31, 2025, and an additional seven loans totaling $2.4million included in thespecial mention risk grading category.

For the Quarter Ended
ACLL ($ in thousands)March 31,
2025
December 31,
2024
September 30,
2024
June 30,
2024
March 31,
2024
Balance at beginning of period$20,449$21,970$19,343$17,958$17,510
Charge-offs:
Construction and land(374)(411)(3,978)
Auto and other consumer(243)(364)(492)(832)(806)
Commercial business(811)(4,596)(24)(2,643)(33)
Total charge-offs(1,428)(5,371)(516)(7,453)(839)
Recoveries:
One-to-four family422
Commercial real estate62
Auto and other consumer43522419846
Commercial business236
Total recoveries51906619848
Net loan charge-offs(1,377)(5,281)(450)(7,255)(791)
Provision for credit losses1,5533,7603,0778,6401,239
Balance at end of period$20,625$20,449$21,970$19,343$17,958
Average total loans1,662,1641,708,2321,718,4021,717,8301,678,656
Annualized net charge-offs to average outstanding loans0.34%1.23%0.10%1.70%0.19%


Asset Quality ($ in thousands)March 31,
2025
December 31,
2024
September 30,
2024
June 30,
2024
March 31,
2024
Nonaccrual loans:
One-to-four family$1,404$1,477$1,631$1,750$1,237
Multi-family708708
Commercial real estate5,5745,5985,6341422
Construction and land15,28019,54419,38219,29214,440
Home equity5455116118121
Auto and other consumer7107008947461,012
Commercial business3,3653,1412,7191,0031,941
Total nonaccrual loans26,38730,51530,37623,63119,481
Other real estate owned
Total nonperforming assets$26,387$30,515$30,376$23,631$19,481
Nonaccrual loans as a % of total loans (1)1.59%1.80%1.75%1.39%1.14%
Nonperforming assets as a % of total assets (2)1.211.371.351.070.87
ACLL as a % of total loans1.241.211.271.141.05
ACLL as a % of nonaccrual loans78.1667.0172.3381.8592.18
Total past due loans to total loans1.741.981.921.451.91


(1)Nonperforming loans consists of nonaccruing loans and accruing loans more than 90 days past due.
(2)Nonperforming assets consists of nonperforming loans (which include nonaccruing loans and accruing loans more than 90 days past due), real estate owned and repossessed assets.


Financial Condition and Capital

Investment securities decreased $24.9 million, or 7.3%, to$315.4 million at March 31, 2025, compared to$340.3 million three months earlier, and decreased$10.5 million compared to$326.0 million at March 31, 2024.The market value of the portfolio increased $3.1million during thefirst quarter of 2025.The estimated average life of the securities portfolio was approximately6.9 years at March 31, 2025,6.9 years at the prior quarter end and7.8 years at the end ofthe first quarter of 2024. The effective duration of the portfolio was approximately4.3 years at March 31, 2025, compared to3.9 years at the prior quarter end and4.4 years at the end of the first quarter of 2024. The MBS non-agency portfolio decreased $20.2million due to early redemptions and maturities and $2.4 million from regular repayment activityduring the most recent quarter.

Investment Securities ($ in thousands)March 31,
2025
December 31,
2024
March 31,
2024
Three Month
% Change
One Year
% Change
Available for Sale at Fair Value
Municipal bonds$78,295$77,876$87,0040.5%-10.0%
U.S. government agency issued asset-backed securities (ABS agency)12,64312,87614,822-1.8-14.7
Corporate issued asset-backed securities (ABS corporate)15,67116,12213,929-2.812.5
Corporate issued debt securities (Corporate debt)55,06754,49153,0311.13.8
U.S. Small Business Administration securities (SBA)8,0618,6667,911-7.01.9
Mortgage-backed securities:
U.S. government agency issued mortgage-backed securities (MBS agency)96,64298,69783,271-2.116.1
Non-agency issued mortgage-backed securities (MBS non-agency)49,05471,61665,987-31.5-25.7
Total securities available for sale$315,433$340,344$325,955-7.3-3.2


Net loans, excluding loans held for sale, decreased $31.4 million, or 1.9%, to$1.64 billion at March 31, 2025, from$1.68 billion at December 31, 2024, and decreased $49.0 million, or 2.9%, from$1.69 billion one year prior.Construction loans that convertedinto fully amortizing loans during the quarter totaled$13.3million. Loan payoffs of $71.0million, regular payments of $29.4million and charge-offs totaling $1.4millionoutpaced new loan fundingtotaling$45.3millionand draws on existing loans totaling $23.3million. The large decrease in commercial business loans was due to the change in funding needs of the Northpointe Bank MPP, which dropped $36.2million compared to the prior quarter.

Loans ($ in thousands)March 31,
2025
December 31,
2024
March 31,
2024
Three Month
% Change
One Year
% Change
AG˹ٷ Estate:
One-to-four family$394,428$395,315$383,905-0.2%2.7%
Multi-family338,147332,596339,5381.7-0.4
Commercial real estate392,882390,379385,1300.62.0
Construction and land64,87778,110125,347-16.9-48.2
Total real estate loans1,190,3341,196,4001,233,920-0.5-3.5
Consumer:
Home equity79,15179,05472,3910.19.3
Auto and other consumer273,878268,876268,8341.91.9
Total consumer loans353,029347,930341,2251.53.5
Commercial business120,486151,493136,297-20.5-11.6
Total loans receivable1,663,8491,695,8231,711,442-1.9-2.8
Less:
Derivative basis adjustment(566)188710-401.1-179.7
Allowance for credit losses on loans20,62520,44917,9580.914.9
Total loans receivable, net$1,643,790$1,675,186$1,692,774-1.9-2.9


Total deposits decreased$22.0 million to$1.67 billion at March 31, 2025, compared to$1.69 billion at December 31, 2024, and was relatively unchanged compared toone year prior. During thefirst quarter of 2025, total customer deposit balances increased$23.0 million and brokered deposit balances decreased $45.0 million. Overall, the current rate environment continues to contributeto greater competition for deposits leading to higher rates paid on interest-bearing demand deposits and savings accounts during the current quarter. The deposit mix compared to March 31, 2024, also reflects a shift to higher demand and money market account balances with increased rates paid on those accounts while rates paid on certificate and savings accounts decreased.

Deposits ($ in thousands)March 31,
2025
December 31,
2024
March 31,
2024
Three Month
% Change
One Year
% Change
Noninterest-bearing demand deposits$247,890$256,416$252,761-3.3%-1.9%
Interest-bearing demand deposits169,912164,891170,7293.0-0.5
Money market accounts424,469413,822395,4802.67.3
Savings accounts235,188205,055236,55014.7-0.6
Certificates of deposit, customer450,663464,928418,904-3.17.6
Certificates of deposit, brokered137,946182,914192,200-24.6-28.2
Total deposits$1,666,068$1,688,026$1,666,624-1.30.0


Total shareholders� equity increased to$157.0 million at March 31, 2025, compared to$153.9 million three months earlier, due to an increase in the after-tax fair market values of the available-for-saleinvestment securities portfolio of $2.4million andnet income of $1.5 million, partially offset by dividends declared of$656,000 and a decrease in the after-tax fair market values of derivatives of $425,000.

Capital levels for both the Company and the Bankremain in excess of applicable regulatory requirements and the Bank was categorized as "well-capitalized" at March 31, 2025. Preliminary calculations ofCommon Equity Tier 1 and Total Risk-Based Capital Ratios at March 31, 2025, were12.7% and 13.9%, respectively.

First Northwest continuedto return capital to our shareholders through cash dividends during the first quarter of 2025. The Company paid cash dividends totaling$649,000 in the first quarter of 2025.No shares of common stock were repurchasedunder the Company's April 2024Stock Repurchase Plan (the "Repurchase Plan") during the quarter endedMarch 31, 2025. There are846,123 shares thatremain available for repurchase under the Repurchase Plan.

2024 Awards/Recognition
Sound Publishing:
Puget Sound Business Journal Top Corporate PhilanthropistsBest of the Olympic Peninsula Awards
Bellingham Best of the Northwest - SilverBest Lender in Clallam and Jefferson County
The Leader Readers Choice Award - Best BankBest Bank in Clallam County and West End
Puget Sound Business Journal Top Corporate Philanthropists
Bellingham Best of the Northwest - Silver
The Leader Readers Choice Award - Best Bank
Best of the Olympic Peninsula Awards
Best Lender in Clallam and Jefferson County
Best Bank in Clallam County and West End


We recommend reading this earnings release in conjunction with the FirstQuarter2025 Investor Presentation, located at http://investor.ourfirstfed.com/quarterly-reports and included as an exhibit to our April 24, 2025, Current Report on Form 8-K.

About the Company
First Northwest Bancorp (Nasdaq: FNWB) is a financial holding company engaged in investment activities including the business of its subsidiary, First Fed Bank. First Fed is a Pacific Northwest-based financial institution which has served its customers and communities since 1923. Currently First Fed has 18locations in Washington state including 12 full-service branches. First Fed’s business and operating strategy is focused on building sustainable earnings by delivering a full array of financial products and services for individuals, small businesses, non-profit organizationsand commercial customers. In 2022, First Northwest made an investment in The Meriwether Group, LLC, a boutique investment banking and accelerator firm. Additionally, First Northwest focuses on strategic partnerships to provide modern financial services such as digital payments and marketplace lending. First Northwest Bancorp was incorporated in 2012 and completed its initial public offering in 2015 under the ticker symbol FNWB. The Company is headquartered in Port Angeles, Washington.

Forward-Looking Statements
Certain matters discussed in this press release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements relate to, among other things, expectations of the business environment in which we operate, projections of future performance and execution on certain strategies, perceived opportunities in the market, potential future credit experience, including our ability to collect, the outcome of litigationand statements regarding our mission and vision, and include, but are not limited to, statements about our plans, objectives, expectations and intentions that are not historical facts, andother statements often identified by words such as "believes," "expects," "anticipates," "estimates," or similar expressions. These forward-looking statements are based upon current management beliefs and expectations and may, therefore, involve risks and uncertainties, many of which are beyond our control. Our actual results, performance, or achievements may differ materially from those suggested, expressed, or implied by forward-looking statements as a result of a wide variety of factors including, but not limited to: increased competitive pressures; changes in the interest rate environment; the credit risks of lending activities; pressures on liquidity, including as a result of withdrawals of deposits or declines in the value of our investment portfolio;changes in general economic conditions and conditions within the securities markets, including potential recessionary and other unfavorable conditions and trends relating to housing markets, costs of living, unemployment levels, interest rates, supply chain difficulties and inflationary pressures, among other things; legislative, regulatory, and policy changes; and other factors described in the Companys latest Annual Report on Form 10-K under the section entitled "Risk Factors,"and other filings with the Securities and Exchange Commission ("SEC"),which are available on our website at www.ourfirstfed.com and on the SECs website at www.sec.gov.

Any of the forward-looking statements that we make in this press release and in the other public statements we make may turn out to be incorrect because of the inaccurate assumptions we might make, because of the factors illustrated above or because of other factors that we cannot foresee. Because of these and other uncertainties, our actual future results may be materially different from those expressed or implied in any forward-looking statements made by or on our behalf and the Company's operating and stock price performance may be negatively affected. Therefore, these factors should be considered in evaluating the forward-looking statements, and undue reliance should not be placed on such statements. We do not undertake and specifically disclaim any obligation to revise any forward-looking statements to reflect the occurrence of anticipated or unanticipated events or circumstances after the date of such statements. These risks could cause our actual results for2025 and beyond to differ materially from those expressed in any forward-looking statements by, or on behalf of, us and could negatively affect the Companys operations and stock price performance.

For More Information Contact:
Matthew P. Deines, President and Chief Executive Officer
Phyllis Nomura, EVP andChief Financial Officer
[email protected]
360-457-0461


FIRST NORTHWEST BANCORP AND SUBSIDIARY
CONSOLIDATED BALANCE SHEETS
(Dollars in thousands, except share data) (Unaudited)
March 31,
2025
December 31,
2024
September 30,
2024
June 30,
2024
March 31,
2024
ASSETS
Cash and due from banks$18,911$16,811$17,953$19,184$15,562
Interest-earning deposits in banks51,41255,63764,76963,99561,784
Investment securities available for sale, at fair value315,433340,344310,860306,714325,955
Loans held for sale2,9404723781,086988
Loans receivable (net of allowance for credit losses
on loans $20,625, $20,449, $21,970, $19,343,
and $17,958)
1,643,7901,675,1861,714,4161,677,7641,692,774
Federal Home Loan Bank (FHLB) stock, at cost13,10614,43514,43513,08615,876
Accrued interest receivable8,3198,1598,9399,4668,909
Premises held for sale, net6,751
Premises and equipment, net9,87010,12910,43610,71411,028
Servicing rights on sold loans, at fair value3,3013,2813,5843,7403,820
Bank-owned life insurance, net31,78641,15041,42941,11334,681
Equity and partnership investments15,02613,22914,91215,08515,121
Goodwill and other intangible assets, net1,0821,0821,0831,0841,085
Deferred tax asset, net13,17913,73810,80212,21612,704
Right-of-use ("ROU") asset, net16,68717,00117,31517,6275,841
Prepaid expenses and other assets31,58821,35224,17523,08827,141
Total assets$2,176,430$2,232,006$2,255,486$2,215,962$2,240,020
LIABILITIES AND SHAREHOLDERS' EQUITY
Deposits$1,666,068$1,688,026$1,711,641$1,708,288$1,666,624
Borrowings307,091336,014334,994302,575371,455
Accrued interest payable2,1633,2952,1533,1432,830
Lease liability, net17,26617,53517,79918,0546,227
Accrued expenses and other liabilities24,21731,77025,62523,71729,980
Advances from borrowers for taxes and insurance2,5831,4842,4851,3042,398
Total liabilities2,019,3882,078,1242,094,6972,057,0812,079,514
Shareholders' Equity
Preferred stock, $0.01 par value, authorized
5,000,000 shares, no shares issued or outstanding
Common stock, $0.01 par value, 75,000,000
shares authorized; issued and outstanding at
each period end: 9,440,618; 9,353,348;
9,365,979; 9,453,247; and 9,442,796
9493949494
Additional paid-in capital93,45093,35793,21893,98593,763
Retained earnings98,05697,198100,660103,322106,202
Accumulated other comprehensive loss, net of tax(28,129)(30,172)(26,424)(31,597)(32,465)
Unearned employee stock ownership plan (ESOP) shares(6,429)(6,594)(6,759)(6,923)(7,088)
Total shareholders' equity157,042153,882160,789158,881160,506
Total liabilities and shareholders' equity$2,176,430$2,232,006$2,255,486$2,215,962$2,240,020



FIRST NORTHWEST BANCORP AND SUBSIDIARY
CONSOLIDATED STATEMENTS OFOPERATIONS
(Dollars in thousands, except per share data) (Unaudited)
For the Quarter Ended
March 31,
2025
December 31,
2024
September 30,
2024
June 30,
2024
March 31,
2024
INTEREST INCOME
Interest and fees on loans receivable$22,231$23,716$23,536$23,733$22,767
Interest on investment securities3,8033,6583,7863,9493,632
Interest on deposits in banks482550582571645
FHLB dividends307273302358282
Total interest income26,82328,19728,20628,61127,326
INTEREST EXPENSE
Deposits9,73711,17510,96010,18010,112
Borrowings3,2392,8853,2264,1963,286
Total interest expense12,97614,06014,18614,37613,398
Net interest income13,84714,13714,02014,23513,928
PROVISION FOR CREDIT LOSSES
Provision for credit losses on loans1,5533,7603,0778,6401,239
Provision for (recapture of) credit losses on unfunded commitments15(105)5799(269)
Provision for credit losses1,5683,6553,1348,739970
Net interest income after provision for credit losses12,27910,48210,8865,49612,958
NONINTEREST INCOME
Loan and deposit service fees1,1061,0541,0591,0761,102
Sold loan servicing fees and servicing rights mark-to-market195(115)1074219
Net gain on sale of loans11525815052
Net gain on sale of investment securities(2,117)
Net gain on sale of premises and equipment7,919
Increase in cash surrender value of bank-owned life insurance372328315293243
Income from death benefit on bank-owned life insurance, net1,0591,536
Other income (loss)1,349(1,555)337(48)572
Total noninterest income4,0921,3001,7797,3472,188
NONINTEREST EXPENSE
Compensation and benefits7,7157,3678,5828,5888,128
Data processing2,0112,0652,0852,0081,944
Occupancy and equipment1,5921,5591,5531,7991,240
Supplies, postage, and telephone298296360317293
Regulatory assessments and state taxes479460548457513
Advertising265362409377309
Professional fees777813698684910
FDIC insurance premium434491533473386
Other expense6788201,080906580
Total noninterest expense14,24914,23315,84815,60914,303
Income (loss) before provision for income taxes2,122(2,451)(3,183)(2,766)843
Provision for income taxes608359(1,203)(547)447
Net income (loss)$1,514$(2,810)$(1,980)$(2,219)$396
Basic and diluted earnings (loss) per common share$0.17$(0.32)$(0.23)$(0.25)$0.04


FIRST NORTHWEST BANCORP AND SUBSIDIARY
ADDITIONAL INFORMATION
(Dollars in thousands) (Unaudited)
Selected Loan DetailMarch 31,
2025
December 31,
2024
September 30,
2024
June 30,
2024
March 31,
2024
Construction and land loans breakout
1-4 Family construction$42,371$39,319$43,125$56,514$69,075
Multifamily construction9,22315,40729,10943,34145,776
Nonresidential construction7,22916,85717,5001,0153,374
Land and development6,0546,5275,9756,4037,122
Total construction and land loans$64,877$78,110$95,709$107,273$125,347
Auto and other consumer loans breakout
Triad Manufactured Home loans$134,740$128,231$129,600$110,510$119,309
Woodside auto loans118,972117,968126,129131,151128,072
First Help auto loans13,01214,28315,97117,4278,326
Other auto loans1,3131,6472,0642,6903,313
Other consumer loans5,8416,7477,43423,8459,814
Total auto and other consumer loans$273,878$268,876$281,198$285,623$268,834
Commercial business loans breakout
Northpointe Bank MPP$-$36,230$38,155$9,150$15,047
Secured lines of credit39,98635,70137,68628,86241,014
Unsecured lines of credit2,0301,7171,5711,1331,001
SBA loans6,8897,0447,2197,1468,944
Other commercial business loans71,58170,80170,69670,80370,291
Total commercial business loans$120,486$151,493$155,327$117,094$136,297



Loans by Collateral and Unfunded CommitmentsMarch 31,
2025
December 31,
2024
September 30,
2024
June 30,
2024
March 31,
2024
One-to-four family construction$38,221$44,468$51,607$49,440$70,100
All other construction and land30,94734,29045,16658,34655,286
One-to-four family first mortgage428,081466,046469,053434,840436,543
One-to-four family junior liens15,15515,09014,70113,70612,608
One-to-four family revolving open-end51,83251,48148,45944,80345,536
Commercial real estate, owner occupied:
Health care29,38629,12929,40729,67829,946
Office19,36317,75617,90119,21517,951
Warehouse14,84314,94811,64514,61314,683
Other74,91578,17064,53556,29255,063
Commercial real estate, non-owner occupied:
Office41,88549,41749,77050,15853,099
Retail50,73749,59149,71750,10150,478
Hospitality62,22661,91962,28262,62866,982
Other93,54981,64082,57384,42893,040
Multi-family residential339,217333,419354,118350,382339,907
Commercial business loans76,33077,38186,90479,05590,781
Commercial agriculture and fishing loans22,91421,83315,36914,41110,200
State and political subdivision obligations369369404405405
Consumer automobile loans133,209133,789144,036151,121139,524
Consumer loans secured by other assets137,619131,429132,749129,293122,895
Consumer loans unsecured3,0513,6584,4115,2096,415
Total loans$1,663,849$1,695,823$1,734,807$1,698,124$1,711,442
Unfunded commitments under lines of credit or existing loans$172,260$163,827$166,446$155,005$148,736



FIRST NORTHWEST BANCORP AND SUBSIDIARY
NET INTEREST MARGIN ANALYSIS
(Dollars in thousands) (Unaudited)
Three Months Ended March 31,
20252024
AverageInterestAverageInterest
BalanceEarned/Yield/BalanceEarned/Yield/
OutstandingPaidRateOutstandingPaidRate
(Dollars in thousands)
Interest-earning assets:
Loans receivable, net (1) (2)$1,642,007$22,2315.49%$1,661,420$22,7675.51%
Investment securities333,2083,8034.63307,4903,6324.75
FHLB dividends13,6093079.1512,3282829.20
Interest-earning deposits in banks42,9174824.5546,5836455.57
Total interest-earning assets (3)2,031,74126,8235.352,027,82127,3265.42
Noninterest-earning assets143,033138,366
Total average assets$2,174,774$2,166,187
Interest-bearing liabilities:
Interest-bearing demand deposits$168,414$2600.63$165,379$1870.45
Money market accounts414,4252,3452.29377,5051,9492.08
Savings accounts216,4997831.47235,7849531.63
Certificates of deposit, customer451,9364,5224.06437,5254,4944.13
Certificates of deposit, brokered158,2691,8274.68205,9232,5294.94
Total interest-bearing deposits (4)1,409,5439,7372.801,422,11610,1122.86
Advances279,5002,7964.06252,9122,8924.60
Subordinated debt38,3704434.6839,4463944.02
Total interest-bearing liabilities1,727,41312,9763.051,714,47413,3983.14
Noninterest-bearing deposits (4)243,569249,283
Other noninterest-bearing liabilities47,23840,563
Total average liabilities2,018,2202,004,320
Average equity156,554161,867
Total average liabilities and equity$2,174,774$2,166,187
Net interest income$13,847$13,928
Net interest rate spread2.302.28
Net earning assets$304,328$313,347
Net interest margin (5)2.762.76
Average interest-earning assets to average interest-bearing liabilities117.6%118.3%


(1)The average loans receivable, net balances include nonaccrual loans.
(2)Interest earned on loans receivable includesnet deferred costsof($338,000)and($171,000)for the three months ended March 31, 2025 and 2024, respectively.
(3)Includes interest-earning deposits (cash) at other financial institutions.
(4)Cost of all deposits, including noninterest-bearing demand deposits, was2.39%and2.43%for the three months ended March 31, 2025 and 2024, respectively.
(5)Net interest income divided by average interest-earning assets.


FIRST NORTHWEST BANCORP AND SUBSIDIARY
ADDITIONAL INFORMATION
(Dollars in thousands) (Unaudited)


Non-GAAP Financial Measures
This press release contains financial measures that are not in conformity with generally accepted accounting principles in the United States of America("GAAP"). Non-GAAP measures are presented where management believes the information will help investors understandthe Company’s results of operations or financial position and assess trends. Where non-GAAP financial measures are used, the comparable GAAP financial measure is also provided. These disclosures should not be viewed as a substitute for operating results determined in accordance with GAAP, and are not necessarily comparable to non-GAAP performance measures that may be presented by other companies. Other banking companies may use names similar to those the Company uses for the non-GAAP financial measures the Company discloses, but may calculate them differently. Investors should understand how the Company and other companies each calculate their non-GAAP financial measures when making comparisons. Reconciliations of the GAAP and non-GAAP measures are presented below.

Calculations Based on PPNR and Adjusted PPNR:

For the Quarter Ended
(Dollars in thousands)March 31,
2025
December 31,
2024
September 30,
2024
June 30,
2024
March 31,
2024
Net income (loss)$1,514$(2,810)$(1,980)$(2,219)$396
Plus: provision for credit losses1,5683,6553,1348,739970
Provision for income taxes608359(1,203)(547)447
PPNR (1)3,6901,204(49)5,9731,813
Less selected nonrecurring adjustments to PPNR:
BOLI death benefit1,0591,536
Gain on extinguishment of subordinated debt included in other income846
Gain on conversion of loan receivable into Series A equity investment315
Equity investment repricing adjustment(1,762)651
One-time compensation payouts related to reduction in force(996)
Net gain on sale of premises and equipment7,919
Sale leaseback taxes and assessments included in occupancy and equipment(359)
Net gain on sale of investment securities(2,117)
Adjusted PPNR (1)$1,470$1,430$947$530$1,162
Average total assets$2,174,774$2,205,502$2,209,333$2,219,370$2,166,187
Return on average assets (GAAP)0.28%-0.51%-0.36%-0.40%0.07%
PPNR return on average assets (Non-GAAP) (1)0.69%0.22%-0.01%1.08%0.34%
Adjusted PPNR return on average assets (Non-GAAP) (1)0.27%0.26%0.17%0.10%0.22%


(1)PPNR removes the provisions for credit loss and income tax from net income. This removes potentially volatile estimates, providinga comparative amount limited to income and expense recorded during the period. Adjusted PPNR further removes large nonrecurring transactions recorded during the period. We believe these metrics provide comparative amounts for a better review of recurring net revenue.


FIRST NORTHWEST BANCORP AND SUBSIDIARY
ADDITIONAL INFORMATION
(Dollars in thousands) (Unaudited)
Calculations Based on Tangible Common Equity:
For the Quarter Ended
(Dollars in thousands, except per share data)March 31,
2025
December 31,
2024
September 30,
2024
June 30,
2024
March 31,
2024
Total shareholders' equity$157,042$153,882$160,789$158,881$160,506
Less: Goodwill and other intangible assets1,0821,0821,0831,0841,085
Disallowed non-mortgage loan servicing rights415423489517489
Total tangible common equity$155,545$152,377$159,217$157,280$158,932
Total assets$2,176,430$2,232,006$2,255,486$2,215,962$2,240,020
Less: Goodwill and other intangible assets1,0821,0821,0831,0841,085
Disallowed non-mortgage loan servicing rights415423489517489
Total tangible assets$2,174,933$2,230,501$2,253,914$2,214,361$2,238,446
Average shareholders' equity$156,554$161,560$160,479$163,079$161,867
Less: Average goodwill and other intangible assets1,0821,0831,0841,0851,085
Average disallowed non-mortgage loan servicing rights423489517489481
Total average tangible common equity$155,049$159,988$158,878$161,505$160,301
Net income (loss)$1,514$(2,810)$(1,980)$(2,219)$396
Common shares outstanding9,440,6189,353,3489,365,9799,453,2479,442,796
GAAP Ratios:
Equity to total assets7.22%6.89%7.13%7.17%7.17%
Return on average equity3.92%-6.92%-4.91%-5.47%0.98%
Book value per common share$16.63$16.45$17.17$16.81$17.00
Non-GAAP Ratios:
Tangible common equity to tangible assets (1)7.15%6.83%7.06%7.10%7.10%
Return on average tangible common equity (1)3.96%-6.99%-4.96%-5.53%0.99%
Tangible book value per common share (1)$16.48$16.29$17.00$16.64$16.83


(1)We believe that the use of tangible equity and tangible assets improves the comparability to other institutions that have not engaged in acquisitions that resulted in recorded goodwill and other intangibles.


Photos accompanying this announcement are available at:


FAQ

What is First Northwest Bancorp's (FNWB) net income for Q1 2025?

FNWB reported net income of $1.5 million for Q1 2025, compared to a net loss of $2.8 million in Q4 2024.

How much is FNWB's quarterly dividend payment for Q1 2025?

FNWB declared a quarterly cash dividend of $0.07 per common share, payable on May 23, 2025.

What was FNWB's provision for credit losses in Q1 2025?

FNWB recorded a $1.6 million provision for credit losses, primarily due to $1.4 million in charge-offs related to commercial and consumer loans.

How did FNWB's deposit mix change in Q1 2025?

FNWB reduced brokered deposits by $45.0 million while growing core customer deposits by $23.0 million.

What was FNWB's earnings per share for Q1 2025?

FNWB reported basic and diluted earnings per share of $0.17 for Q1 2025.
First Northwest

NASDAQ:FNWB

FNWB Rankings

FNWB Latest News

FNWB Latest SEC Filings

FNWB Stock Data

72.64M
7.97M
20.83%
48.6%
0.14%
Banks - Regional
Savings Institutions, Not Federally Chartered
United States
PORT ANGELES