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First Northwest Bancorp (NASDAQ: FNWB) edges back to profit with Q1 2026 results

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Rhea-AI Filing Summary

First Northwest Bancorp reported essentially break-even results for the first quarter of 2026, with net income of $6,000 and basic and diluted earnings per share of $0.00. This compares to net income of $382,000 in the fourth quarter of 2025 and a net loss of $9.0 million a year earlier.

Core banking trends were more favorable than headline earnings. Net interest margin improved for the sixth consecutive quarter to 3.03%, helped by a lower cost of funds and a drop in deposit costs to 2.04%. Customer deposits rose to $1.54 billion, while higher-cost brokered deposits fell sharply.

Credit quality and capital remained solid. The allowance for credit losses on loans was $16.8 million, or 1.03% of total loans, with a small $13,000 recapture of provision. Nonperforming assets were $23.1 million, or 1.08% of total assets, and the bank’s total risk-based capital ratio was 13.5%, keeping it in the well‑capitalized category.

Positive

  • None.

Negative

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Insights

Profitability is weak but margins, funding mix, and credit quality are improving.

First Northwest Bancorp posted Q1 2026 net income of only $6,000, essentially break-even, yet underlying trends were better. Net interest margin reached 3.03%, its sixth straight quarterly increase, as deposit and overall funding costs fell.

Balance sheet mix continues to shift away from expensive wholesale funding. Brokered deposits dropped to $64.1M, down more than half year over year, while customer deposits reached $1.54B. FHLB advances increased in tandem, supporting on‑balance‑sheet liquidity.

Credit metrics are generally stable to improving. The allowance for credit losses on loans was $16.8M, or 1.03% of total loans, alongside a small provision recapture. Nonperforming assets were $23.1M, or 1.08% of total assets. Bank-level capital ratios, including a total risk-based ratio of 13.5% as of March 31, 2026, remain comfortably above well‑capitalized thresholds.

Item 2.02 Results of Operations and Financial Condition Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 9.01 Financial Statements and Exhibits Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Net income Q1 2026 $6,000 For the quarter ended March 31, 2026
Prior-year net loss $9.0 million Net loss for the quarter ended March 31, 2025
Net interest margin 3.03% Q1 2026, sixth consecutive quarterly increase
Total deposits $1.60 billion Balance at March 31, 2026
Brokered deposits $64.1 million Balance at March 31, 2026, down 53.5% year over year
Allowance for credit losses on loans $16.8 million 1.03% of total loans at March 31, 2026
Nonperforming assets $23.1 million 1.08% of total assets at March 31, 2026
Total risk-based capital ratio 13.5% First Fed preliminary ratio at March 31, 2026
Net interest margin financial
"Net interest margin increased to 3.03% for the first quarter of 2026"
Net interest margin measures how much a bank earns from lending and investing compared with what it pays for funding, expressed as a percentage of its interest-earning assets. Think of it like a grocery store’s markup: it shows the gap between buying cost and selling price per dollar of goods — here, the cost is interest paid and the sale is interest received. Investors watch it because a higher margin usually means a bank is more profitable and better at managing interest rate and credit conditions.
Allowance for credit losses on loans financial
"The ACLL decreased $164,000 to $16.8 million at March 31, 2026"
A bank's allowance for credit losses on loans is a reserve of money set aside to cover loans the lender expects may not be repaid. Think of it as a rainy-day fund for a loan portfolio: larger allowances signal more expected losses and reduce reported profits and available capital, so investors watch it to judge a lender’s risk exposure, earnings quality, and financial strength.
Nonperforming assets financial
"Total nonperforming assets were $23,079 at March 31, 2026"
Nonperforming assets are loans or investments that are not generating expected payments or returns because the borrower has fallen behind on payments or the investment has lost value. They matter to investors because a high level of nonperforming assets can indicate financial trouble for a bank or institution, potentially affecting its stability and profitability.
Tangible common equity financial
"Total tangible common equity was $155,592 at March 31, 2026"
Tangible common equity is the portion of a company’s net worth that belongs to ordinary shareholders after removing intangible items (like goodwill or patents) and any preferred claims; it’s often expressed on a per-share basis. Think of it as the hard, sellable value left for common owners if you removed non-physical assets and paid off debts—investors use it to judge how much real cushion a company has and whether the stock might be under- or over-valued.
Efficiency ratio financial
"Efficiency ratio was 101.4 for the quarter ended March 31, 2026"
A measure of how much a company spends to produce each dollar of revenue, usually shown as operating expenses divided by revenue and expressed as a percentage. Think of it as a household’s budget: a lower percentage means more of each dollar earned stays as profit, while a higher number means costs are eating into returns. Investors use it to judge cost control and compare how efficiently companies turn revenue into earnings, especially in banks and financial firms.
Total interest income $25.3 million
Net income $6,000
Basic and diluted EPS $0.00
Net interest margin 3.03%
Guidance

Management expects actions taken in 2026 to drive improvement beginning in the second half of the year and support stronger, more consistent performance in 2027 and beyond.

Understanding 8-K Material Events →
false 0001556727 0001556727 2026-04-29 2026-04-29
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
FORM 8-K
 
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
 
Date of Report (Date of earliest event reported): April 29, 2026
 
FIRST NORTHWEST BANCORP
(Exact name of registrant as specified in its charter)
 
 
 
 
 
 
 
Washington
 
001-36741
 
46-1259100
(State or other jurisdiction of incorporation)
 
(Commission File Number)
 
(I.R.S. Employer Identification No.)
 
 
 
 
105 West 8th Street, Port Angeles, Washington
98362
(Address of principal executive offices)
(Zip Code)
 
Registrant's telephone number, including area code:  (360) 457-0461
 
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions.
 
☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
 
Securities registered pursuant to Section 12(b) of the Act:
 
Title of each class:
 
Trading Symbol(s):
 
Name of each exchange on which registered:
Common Stock, par value $0.01 per share
 
FNWB
 
The Nasdaq Stock Market LLC
 
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
 
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
 
 
 
 
 
 
 
Item 2.02
Results of Operations and Financial Condition
 
On April 29, 2026, First Northwest Bancorp (the "Company") issued an earnings release for the quarter ended March 31, 2026. A copy of the earnings release is furnished herewith as Exhibit 99.1 and is incorporated herein by reference.
 
This information (including Exhibit 99.1) is being furnished under Item 2.02 hereof and shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934 (the "Exchange Act"), or otherwise subject to the liabilities of that section, and such information shall not be deemed incorporated by reference into any filing under the Securities Act of 1933 or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.
 
 
 Item 9.01 Financial Statements and Exhibits 
(d) Exhibit.
The following exhibit is furnished with this Form 8-K.
 
 
Exhibit No.
Description
99.1
Press Release dated April 29, 2026
104
Cover Page Interactive Data File (embedded within the Inline XBRL document)
 
 
 
 
 
 
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
 
 
 
  
 
 
 
  
FIRST NORTHWEST BANCORP
 
 
  
 
 
 
  
 
Date:
April 29, 2026
  
/s/Curt T. Queyrouze
       
 
 
  
Curt T. Queyrouze
 
 
  
President and Chief Executive Officer
 
 
 
 

Exhibit 99.1

fnbsm.jpg

 

PORT ANGELES, Wash., April 29, 2026 (GLOBE NEWSWIRE)

 

First Northwest Bancorp Reports First Quarter 2026 Financial Results

 

First Northwest Bancorp (Nasdaq: FNWB) ("First Northwest" or the "Company"), the holding company for First Fed Bank ("First Fed" or the "Bank"), today reported net income of $6,000 for the first quarter of 2026, compared to net income of $382,000 for the fourth quarter of 2025 and a net loss of $9.0 million for the first quarter of 2025. Basic and diluted income per share were $0.00 for the first quarter of 2026, compared to basic and diluted income per share of $0.04 for the fourth quarter of 2025 and basic and diluted loss per share of $1.03 for the first quarter of 2025. 

 

Management Outlook; President and Chief Executive Officer, Curt Queyrouze:

 

"As we move through 2026, we are executing a disciplined transformation to improve our operating efficiency and reposition the balance sheet for long-term performance. While near-term results will reflect this transition, we remain encouraged by the underlying momentum in our core banking franchise. We are focused on disciplined balance sheet management, strengthening our funding and liquidity profile, and maintaining a strong capital position as we work to improve profitability. We are confident that the actions we are taking today will drive improvement beginning in the second half of the year and position the company for stronger, more consistent performance in 2027 and beyond."

 

First Quarter Insights:

•   Core banking revenues remained steady.
•   Net interest margin expanded for the sixth consecutive quarter to 3.03% for the current quarter compared to 3.00% in the fourth quarter of 2025, primarily as a result of a decrease in the rate paid on interest-bearing liabilities.
•   Cost of total deposits dropped to 2.04% for the current quarter from 2.12% in the preceding quarter, as higher-cost brokered certificates of deposit ("CDs") matured during the current quarter.
•   First Fed total risk-based capital ratio remained relatively stable at 13.5% for the current quarter compared to 13.6% in the fourth quarter of 2025, and 13.4% for the first quarter of 2025. 
•   Net loans receivable, excluding loans held for sale, increased $951,000, or 0.1%, to $1.61 billion at March 31, 2026 from $1.61 billion at December 31, 2025, and decreased $24.6 million, or 1.5%, from $1.64 billion at March 31, 2025.
•   Customer deposits increased $24.9 million, or 1.6%, to $1.54 billion at March 31, 2026 from $1.51 billion at December 31, 2025, and increased $9.3 million, or 0.6%, from $1.53 billion at March 31, 2025.
•   Brokered deposits decreased $22.4 million, or 25.9%, to $64.1 million at March 31, 2026 from $86.5 million at December 31, 2025, and decreased $73.8 million, or 53.5%, from $137.9 million at March 31, 2025.
•   FHLB advances increased $20.0 million, or 7.3%, to $293.5 million at March 31, 2026 from $273.5 million at December 31, 2025, partially offsetting the decrease in brokered deposits.
•   A recapture of provision for credit losses on loans of $13,000 was recorded in the first quarter of 2026, compared to a provision of $466,000 for the preceding quarter and a provision of $7.8 million for the first quarter of 2025.

 

Other Updates:

•
   The Bank continues to vigorously defend the previously disclosed legal proceedings. First Fed is entering into discovery in the Socotra REIT matter. The Bank is also preparing for a hearing on 3|5|2 Capital GP LLC's and Leucadia Asset Management LLC's Motion to Dismiss the Bank's counter claims.

 

1
 

 

Selected Quarterly Financial Ratios:

 

   

As of or For the Quarter Ended

  
   

March 31, 2026

    

December 31, 2025

    

September 30, 2025

    

June 30, 2025

    

March 31, 2025

  

Performance ratios: (1)

                                        

Return on average assets

     0.00 %     0.07 %     0.15 %     0.68 %     -1.69 %

Return on average equity

     0.02       0.96       2.10       10.00       -23.42  

Net interest margin (2)

     3.03       3.00       2.91       2.83       2.76  

Efficiency ratio (3)

     101.4       92.0       104.9       78.0       113.5  

Equity to total assets

     7.36       7.46       7.32       6.82       6.75  

Book value per common share

   $ 16.52     $ 16.61     $ 16.33     $ 15.85     $ 15.52  

Tangible performance ratios: (1)

                                        

Tangible common equity to tangible assets (4)

     7.30 %     7.40 %     7.26 %     6.76 %     6.68 %

Return on average tangible common equity (4)

     0.02       0.97       2.12       10.10       -23.65  

Tangible book value per common share (4)

   $ 16.38     $ 16.47     $ 16.18     $ 15.70     $ 15.36  

Capital ratios (First Fed): (5)

                                        

Tier 1 leverage

     9.6 %     9.5 %     9.3 %     9.1 %     9.0 %

Common equity Tier 1 capital

     12.4       12.5       12.7       12.0       12.1  

Total risk-based

     13.5       13.6       13.7       13.1       13.4  

 

(1)

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

 

Net Interest Income and Margin

 

Total interest income decreased $803,000 to $25.3 million for the first quarter of 2026, compared to $26.1 million for the preceding quarter, and decreased $1.5 million compared to $26.8 million in the first quarter of 2025. Interest income decreased in the first quarter of 2026 primarily due to decreased average balances of interest-earning assets. Average real estate loan balances decreased while average consumer and commercial business loan balances increased over the preceding quarter. Average investment securities balances and yields also decreased compared to the preceding quarter as a result of maturities during the fourth quarter of 2025. The yield on interest-earning assets decreased by 2 basis points to 5.32% compared to the preceding quarter, primarily due to reduced average loan balances.

 

Total interest expense decreased $553,000 to $10.9 million for the first quarter of 2026, compared to $11.5 million for the preceding quarter, and decreased $2.1 million compared to $13.0 million in the first quarter of 2025. Interest expense decreased in the first quarter of 2026 primarily due to a reduced volume of higher-rate brokered CDs and decreases in interest paid on customer deposit accounts. The current quarter decreases were partially offset by an increase in the average balance of borrowings. As a result of these first quarter changes, the total cost of funds decreased 4 basis points to 2.37% compared to the preceding quarter.

 

The net interest margin increased to 3.03% for the first quarter of 2026, from 3.00% for the preceding quarter and 2.76% for the first quarter of 2025, marking six consecutive quarters of improvement for a total increase of 33 basis points over that period.

 

Noninterest Income and Expense

 

Noninterest income decreased $1.7 million to $2.0 million for the first quarter of 2026, from $3.7 million for the preceding quarter. The decrease is primarily due to the $1.7 million nonrecurring reimbursement received from the Bank's insurance carrier to offset expenses related to previously disclosed legal matters, which was recorded in other income for the fourth quarter of 2025.

 

Noninterest expense decreased $218,000 to $16.7 million for the first quarter of 2026, compared to $16.9 million for the preceding quarter. The decline resulted from branch closure costs experienced in the fourth quarter of 2025, partially offset by increases in data processing expenses and compensation costs. Legal fees recorded in professional fees remain elevated due to the ongoing legal matters previously disclosed.

 

 

2
 

 

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

 

The ACLL decreased $164,000 to $16.8 million at March 31, 2026, from $17.0 million at December 31, 2025. The ACLL as a percentage of total loans was 1.03% at March 31, 2026, a decrease from 1.04% at December 31, 2025, and a decrease from 1.24% one year earlier. A $13,000 recapture of loan provision expense for the quarter ended March 31, 2026, was the result of a $256,000 decrease in the overall pooled loan reserve, partially offset by $151,000 in net charge-offs and a $92,000 increase in reserves on individually evaluated loans. The change in pooled loan reserve was driven by decreased loan balances in most categories combined with lower loss factors applied to one-to-four family and other consumer loans. Decreases to the pooled loan reserve balance were partially offset by higher purchased auto and Northpointe Mortgage Purchase Program ("Northpointe MPP") balances and higher loss factors applied to commercial real estate, multi-family and construction loan balances at the end of the current quarter. The pooled loan reserve was impacted by a mild improvement in gross domestic product and unemployment forecasts, partially offset by a reduction in nonaccrual loans compared to the preceding quarter.

 

Nonperforming loans decreased $896,000 to $21.7 million at March 31, 2026, from $22.6 million at December 31, 2025. Current quarter activity included principal payments totaling $806,000, payoffs totaling $776,000 and net recoveries on nonperforming loans totaling $505,000. The decreases were partially offset by the transition into nonaccrual status of loans totaling $1.2 million across multiple loan categories. ACLL to nonperforming loans increased to 78% at March 31, 2026, from 75% at December 31, 2025, and decreased from 101% at March 31, 2025. This ratio increased compared to the preceding quarter primarily due to a reduction in nonperforming loan balances.

 

Classified loans decreased $685,000 to $34.6 million at March 31, 2026, from $35.3 million at December 31, 2025, primarily due to payoffs totaling $653,000, principal payments totaling $567,000, net recoveries on previously charged-off loans totaling $501,000 and upgrades totaling $156,000. The decreases were partially offset by $1.2 million of new downgrades across multiple loan categories. Four collateral-dependent loans totaling $26.5 million account for 77% of the classified loan balance at March 31, 2026.

 

 

3
 

 

   

For the Quarter Ended

  

ACLL ($ in thousands)

  

March 31, 2026

    

December 31, 2025

    

September 30, 2025

    

June 30, 2025

    

March 31, 2025

  
                                         

Balance at beginning of period

   $ 16,987     $ 16,203     $ 18,345     $ 20,569     $ 20,449  

Charge-offs:

                                        

Commercial real estate

     (3 )     (329 )     (656 )     (15 )     (5,571 )

Construction and land

     (171 )     (1,027 )     (483 )     —       (374 )

Auto and other consumer

     (276 )     (123 )     (106 )     (273 )     (243 )

Commercial business

     (133 )     (964 )     (1,005 )     (2,823 )     (1,513 )

Total charge-offs

     (583 )     (2,443 )     (2,250 )     (3,111 )     (7,701 )

Recoveries:

                                        

Commercial real estate

     —       —       6       20       6  

Construction and land

     —       —       —       5       —  

Auto and other consumer

     50       34       47       74       43  

Commercial business

     382       2,727       675       1,084       2  

Total recoveries

     432       2,761       728       1,183       51  

Net loan (charge-offs) recoveries

     (151 )     318       (1,522 )     (1,928 )     (7,650 )

(Recapture of) provision for credit losses

     (13 )     466       (620 )     (296 )     7,770  

Balance at end of period

   $ 16,823     $ 16,987     $ 16,203     $ 18,345     $ 20,569  
                                         

Average total loans

   $ 1,613,526     $ 1,622,476     $ 1,650,340     $ 1,658,723     $ 1,662,095  

Annualized net charge-offs (recoveries) to average outstanding loans

     0.04 %     -0.08 %     0.37 %     0.47 %     1.87 %

 

Asset Quality ($ in thousands)

  

March 31, 2026

    

December 31, 2025

    

September 30, 2025

    

June 30, 2025

    

March 31, 2025

  

Nonaccrual loans:

                                        

One-to-four family

   $ 2,521     $ 2,272     $ 2,345     $ 2,274     $ 1,404  

Commercial real estate

     9,619       9,745       3,439       4,095       4  

Construction and land

     4,164       5,146       6,037       13,063       15,280  

Home equity

     53       53       9       10       54  

Auto and other consumer

     1,280       1,086       1,072       410       710  

Commercial business

     4,062       4,293       470       514       2,903  

Total nonaccrual loans

     21,699       22,595       13,372       20,366       20,355  

Other real estate owned

     1,380       1,380       1,377       1,297       —  

Total nonperforming assets

   $ 23,079     $ 23,975     $ 14,749     $ 21,663     $ 20,355  
                                         

Nonaccrual loans as a % of total loans (1)

     1.33 %     1.39 %     0.82 %     1.22 %     1.23 %

Nonperforming assets as a % of total assets (2)

     1.08       1.14       0.70       0.99       0.94  

ACLL as a % of total loans

     1.03       1.04       1.00       1.10       1.24  

ACLL as a % of nonaccrual loans

     77.53       75.18       121.17       90.08       101.05  

Total past due loans to total loans

     1.18       1.21       0.88       1.17       1.36  

 

(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.

 

 

4
 

 

Financial Condition and Capital

 

Balance sheet growth was impacted by higher on-balance-sheet liquidity at March 31, 2026, compared to December 31, 2025. Capital levels remained stable despite the impact of the rate environment on the securities portfolio reflected in accumulated other comprehensive income.

 

Investment securities increased $2.7 million, or 1.0%, to $273.0 million at March 31, 2026, compared to $270.3 million three months earlier, and decreased $42.5 million compared to $315.4 million at March 31, 2025. Purchases totaling $11.1 million were partially offset by maturities totaling $3.3 million, regular principal payments totaling $3.9 million and a $1.2 million increase in net unrealized losses during the first quarter of 2026. The estimated average life of the securities portfolio was approximately 6.8 years at March 31, 2026, 6.5 years at the preceding quarter end and 6.9 years at the end of the first quarter of 2025. The effective duration of the portfolio was approximately 4.7 years at March 31, 2026, compared to 4.6 years at the preceding quarter end and 4.3 years at the end of the first quarter of 2025.

Investment Securities ($ in thousands)

     March 31, 2026       December 31, 2025       March 31, 2025       Three Month % Change       One Year % Change  

Available for Sale at Fair Value

                                        

Municipal bonds

   $ 79,565     $ 80,252     $ 78,295       -0.9 %     1.6 %

U.S. government agency issued asset-backed securities (ABS agency)

     11,632       11,943       12,643       -2.6       -8.0  

Corporate issued asset-backed securities (ABS corporate)

     7,676       7,961       15,671       -3.6       -51.0  

Corporate issued debt securities (Corporate debt)

     37,392       38,801       55,067       -3.6       -32.1  

U.S. Small Business Administration securities (SBA)

     5,820       6,293       8,061       -7.5       -27.8  

Mortgage-backed securities:

                                        

U.S. government agency issued mortgage-backed securities (MBS agency)

     97,968       91,656       96,642       6.9       1.4  

Non-agency issued mortgage-backed securities (MBS non-agency)

     32,932       33,404       49,054       -1.4       -32.9  

Total securities available for sale

   $ 272,985     $ 270,310     $ 315,433       1.0       -13.5  

 

Net loans receivable, excluding loans held for sale, increased $951,000, or 0.1%, to $1.61 billion at March 31, 2026, from $1.61 billion at December 31, 2025, and decreased $24.6 million, or 1.5%, from $1.64 billion one year prior. Construction loans that converted into fully amortizing loans during the quarter totaled $2.0 million. Loan payoffs of $39.8 million, regular payments of $27.8 million and charge-offs totaling $1.5 million outpaced draws on existing loans totaling $22.7 million and new loan funding totaling $16.5 million. Participation in the Northpointe MPP increased $23.0 million and purchased auto loans increased $8.5 million during the current quarter.

Loans ($ in thousands)

     March 31, 2026       December 31, 2025       March 31, 2025       Three Month % Change       One Year % Change  

Real Estate:

                                        

One-to-four family

   $ 362,984     $ 376,731     $ 394,428       -3.6 %     -8.0 %

Multi-family

     270,979       288,529       338,147       -6.1       -19.9  

Commercial real estate

     403,243       402,683       387,312       0.1       4.1  

Construction and land

     62,347       61,268       64,877       1.8       -3.9  

Total real estate loans

     1,099,553       1,129,211       1,184,764       -2.6       -7.2  

Consumer:

                                        

Home equity

     86,292       85,088       79,151       1.4       9.0  

Auto and other consumer

     290,960       283,502       273,878       2.6       6.2  

Total consumer loans

     377,252       368,590       353,029       2.4       6.9  

Commercial business

     152,591       130,311       119,783       17.1       27.4  

Total loans receivable

     1,629,396       1,628,112       1,657,576       0.1       -1.7  

Less:

                                        

Derivative basis adjustment

     (406 )     (903 )     (566 )     55.0       28.3  

Allowance for credit losses on loans

     16,823       16,987       20,569       -1.0       -18.2  

Total loans receivable, net

   $ 1,612,979     $ 1,612,028     $ 1,637,573       0.1       -1.5  

 

5
 

 

Total deposits increased $2.5 million to $1.60 billion at March 31, 2026, compared to $1.60 billion at December 31, 2025, and decreased $64.5 million compared to $1.67 billion one year prior. During the first quarter of 2026, total customer deposit balances increased $24.9 million and brokered deposit balances decreased $22.4 million. The customer deposit mix reflects increased average savings account balances while average balances of all other customer accounts decreased compared to the preceding quarter. The rates paid on customer interest-bearing deposits decreased 8 basis points to 2.29% for the current quarter, compared to 2.37% for the fourth quarter of 2025. The deposit mix compared to March 31, 2025, reflects a continued shift in average balances of customer accounts to savings and money market accounts from demand deposit and CD accounts, with an overall $17.3 million increase to average customer balances. An $88.1 million decrease in the average balance of brokered CDs was the main driver for the year-over-year decrease in total deposits. Rates paid on interest-bearing deposit accounts decreased 40 basis points compared to the same quarter one year ago.

 

Deposits ($ in thousands)

     March 31, 2026       December 31, 2025       March 31, 2025       Three Month % Change       One Year % Change  

Noninterest-bearing demand deposits

   $ 238,901     $ 245,760     $ 247,890       -2.8 %     -3.6 %

Interest-bearing demand deposits

     157,565       143,166       169,912       10.1       -7.3  

Money market accounts

     449,353       451,143       424,469       -0.4       5.9  

Savings accounts

     246,533       239,258       235,188       3.0       4.8  

Certificates of deposit, customer

     445,110       433,264       450,663       2.7       -1.2  

Certificates of deposit, brokered

     64,120       86,510       137,946       -25.9       -53.5  

Total deposits

   $ 1,601,582     $ 1,599,101     $ 1,666,068       0.2       -3.9  

 

FHLB advances increased $20.0 million during the current quarter, supporting increased on balance sheet liquidity.

 

Total shareholders’ equity decreased to $157.0 million at March 31, 2026, compared to $157.3 million three months earlier, due to a decrease in the after-tax fair market values of the available-for-sale investment securities portfolio of $847,000, partially offset by an increase in the after-tax fair value of the investment portfolio hedge of $295,000 and net income of $6,000. No shares of common stock were repurchased under the Company's April 2024 Stock Repurchase Plan (the "Repurchase Plan") during the quarter ended March 31, 2026. There are 846,123 shares that remain available for repurchase under the Repurchase Plan.

 

Capital levels for both the Company and the Bank remain in excess of applicable requirements and the Bank was categorized as "well-capitalized" at March 31, 2026. Preliminary calculations of Common Equity Tier 1 and Total Risk-Based Capital Ratios at March 31, 2026, for the Bank were 12.4% and 13.5%, respectively.

 

 

2025 Awards/Recognition            
      Sound Publishing:  
Forbes Best-in-State Banks     Best Bank in Clallam County  
Bellingham Best of the Northwest - Best Bank Silver     Best Lender in Clallam County and West End  
               
 
b02.jpg
bonw_silver2025.jpg
      
bank_clallam2025.jpg
lender2025.jpg
    

 

6
 

 

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 17 locations 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 organizations and commercial customers. First Northwest has also strategically invested in partnerships focused on developing modern financial solutions and a boutique investment banking/accelerator firm. These investments underscore the Company’s commitment to innovation and growth in the financial services sector. 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 litigation and 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, and other 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; risks related to overall economic conditions; geopolitical events; legislative, regulatory, and policy changes; legal proceedings, regulatory investigations and their resolutions; and other factors described in the Company’s 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 SEC’s 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 for 2026 and beyond to differ materially from those expressed in any forward-looking statements by, or on behalf of, us and could negatively affect the Company’s operations and stock price performance.

 

 

For More Information Contact:

Curt Queyrouze, President and Chief Executive Officer

Phyllis Nomura, Chief Financial Officer and EVP

IRGroup@ourfirstfed.com

360-457-0461

 

7
 

FIRST NORTHWEST BANCORP AND SUBSIDIARY

CONSOLIDATED BALANCE SHEETS

(Dollars in thousands, except share data) (Unaudited)

 

   

March 31, 2026

    

December 31, 2025

    

September 30, 2025

    

June 30, 2025

    

March 31, 2025

  

ASSETS

                                        

Cash and due from banks

   $ 16,548     $ 15,530     $ 15,688     $ 18,487     $ 18,911  

Interest-earning deposits in banks

     87,588       69,587       63,482       69,376       51,412  

Investment securities available for sale, at fair value (amortized cost at each period end of $299,707, $295,849, $310,545, $336,206 and $348,249)

     272,985       270,310       282,608       303,515       315,433  

Loans held for sale

     1,140       1,063       2,154       1,557       2,940  

Loans receivable (net of allowance for credit losses on loans at each period end of $16,823, $16,987, $16,203, $18,345, and $20,569)

     1,612,979       1,612,028       1,607,825       1,647,217       1,637,573  

Federal Home Loan Bank (FHLB) stock, at cost

     13,927       13,105       10,856       14,906       13,106  

Accrued interest receivable

     7,051       6,498       8,160       8,305       8,319  

Premises and equipment, net

     8,591       8,464       8,788       8,999       9,870  

Servicing rights on sold loans, at fair value

     2,999       3,014       3,093       3,220       3,301  

Bank-owned life insurance ("BOLI"), net

     42,850       42,382       41,889       41,380       31,786  

Equity and partnership investments

     15,452       15,489       15,048       14,811       15,026  

Goodwill and other intangible assets, net

     1,062       1,062       1,080       1,081       1,082  

Deferred tax asset, net

     13,898       13,638       14,168       14,266       14,304  

Right-of-use ("ROU") asset, net

     15,316       15,596       15,494       15,772       16,687  

Prepaid expenses and other assets

     21,057       20,129       21,040       32,471       31,680  

Total assets

   $ 2,133,443     $ 2,107,895     $ 2,111,373     $ 2,195,363     $ 2,171,430  
                                         

LIABILITIES AND SHAREHOLDERS' EQUITY

                                        

Deposits

   $ 1,601,582     $ 1,599,101     $ 1,653,327     $ 1,654,636     $ 1,666,068  

Borrowings

     328,160       308,143       259,625       344,108       307,091  

Accrued interest payable

     280       1,223       1,145       1,514       2,163  

Lease liability, net

     16,250       16,439       16,071       16,257       17,266  

Accrued expenses and other liabilities

     27,514       24,301       24,321       27,790       29,767  

Advances from borrowers for taxes and insurance

     2,691       1,424       2,356       1,325       2,583  

Total liabilities

     1,976,477       1,950,631       1,956,845       2,045,630       2,024,938  
                                         

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: 9,499,300; 9,467,925; 9,462,150; 9,444,963; and 9,440,618

     95       95       94       94       94  

Additional paid-in capital

     93,854       93,803       93,646       93,595       93,450  

Retained earnings

     91,707       91,699       91,317       90,506       87,506  

Accumulated other comprehensive loss, net of tax

     (22,920 )     (22,398 )     (24,429 )     (28,198 )     (28,129 )

Unearned employee stock ownership plan (ESOP) shares

     (5,770 )     (5,935 )     (6,100 )     (6,264 )     (6,429 )

Total shareholders' equity

     156,966       157,264       154,528       149,733       146,492  

Total liabilities and shareholders' equity

   $ 2,133,443     $ 2,107,895     $ 2,111,373     $ 2,195,363     $ 2,171,430  

 

8
 

FIRST NORTHWEST BANCORP AND SUBSIDIARY

CONSOLIDATED STATEMENTS OF OPERATIONS

(Dollars in thousands, except per share data) (Unaudited)

 

 

   

For the Quarter Ended

  
   

March 31, 2026

    

December 31, 2025

    

September 30, 2025

    

June 30, 2025

    

March 31, 2025

  

INTEREST INCOME

                                        

Interest and fees on loans receivable

   $ 22,000     $ 22,431     $ 22,814     $ 22,814     $ 22,231  

Interest on investment securities

     2,585       2,971       3,244       3,466       3,803  

Interest on deposits in banks

     467       473       570       520       482  

FHLB dividends

     282       262       282       331       307  

Total interest income

     25,334       26,137       26,910       27,131       26,823  

INTEREST EXPENSE

                                        

Deposits

     7,930       8,648       9,083       9,552       9,737  

Borrowings

     2,964       2,799       3,258       3,386       3,239  

Total interest expense

     10,894       11,447       12,341       12,938       12,976  

Net interest income

     14,440       14,690       14,569       14,193       13,847  

PROVISION FOR CREDIT LOSSES

                                        

(Recapture of) provision for credit losses on loans

     (13 )     466       (620 )     (296 )     7,770  

Provision for credit losses on unfunded commitments

     91       97       (53 )     (64 )     15  

Provision for credit losses

     78       563       (673 )     (360 )     7,785  

Net interest income after provision for credit losses

     14,362       14,127       15,242       14,553       6,062  

NONINTEREST INCOME

                                        

Loan and deposit service fees

     1,122       1,044       1,114       1,095       1,106  

Sold loan servicing fees and servicing rights mark-to-market

     127       57       85       92       195  

Net gain on sale of loans

     76       96       (39 )     44       11  

Increase in BOLI cash surrender value

     468       493       539       485       372  

Income from BOLI death benefit, net

     —       —       —       —       1,059  

Other income

     215       2,000       303       454       1,034  

Total noninterest income

     2,008       3,690       2,002       2,170       3,777  

NONINTEREST EXPENSE

                                        

Compensation and benefits

     8,232       8,042       8,353       4,698       7,715  

Data processing

     2,228       1,990       1,941       1,926       2,011  

Occupancy and equipment

     1,565       1,539       1,505       1,507       1,592  

Supplies, postage, and telephone

     298       332       344       346       298  

Regulatory assessments and state taxes

     534       688       558       501       479  

Advertising

     304       290       282       299       265  

Professional fees

     2,026       1,957       2,668       1,449       777  

FDIC insurance premium

     363       424       411       463       434  

Legal settlement

     —       —       (10 )     —       5,750  

Other expense

     1,134       1,640       1,338       1,576       679  

Total noninterest expense

     16,684       16,902       17,390       12,765       20,000  

(Loss) income before (benefit from) provision for income taxes

     (314 )     915       (146 )     3,958       (10,161 )

(Benefit from) provision for income taxes

     (320 )     533       (948 )     297       (1,125 )

Net income (loss)

   $ 6     $ 382     $ 802     $ 3,661     $ (9,036 )
                                         

Basic and diluted earnings (loss) per common share

   $ -     $ 0.04     $ 0.09     $ 0.42     $ (1.03 )

Diluted weighted average common shares outstanding

     8,894,998       8,860,060       8,813,632       8,791,478       8,747,422  

 

9
 

FIRST NORTHWEST BANCORP AND SUBSIDIARY

ADDITIONAL INFORMATION

(Dollars in thousands) (Unaudited)

 

Selected Loan Detail

   March 31, 2026     December 31, 2025     September 30, 2025     June 30, 2025     March 31, 2025  

Construction and land loans breakout

                                        

1-4 Family construction

   $ 18,802     $ 21,954     $ 29,961     $ 39,040     $ 42,371  

Multifamily construction

     12,144       10,109       15,660       14,728       9,223  

Nonresidential construction

     25,758       23,005       16,484       12,832       7,229  

Land and development

     5,643       6,200       5,688       5,938       6,054  

Total construction and land loans

   $ 62,347     $ 61,268     $ 67,793     $ 72,538     $ 64,877  
                                         

Auto and other consumer loans breakout

                                        

Triad Manufactured Home loans

   $ 131,406     $ 132,287     $ 133,425     $ 135,537     $ 134,740  

Woodside auto loans

     147,444       137,678       131,800       127,828       118,972  

First Help auto loans

     7,570       8,491       9,561       11,221       13,012  

Other auto loans

     468       586       767       1,016       1,313  

Other consumer loans

     4,072       4,460       4,671       5,275       5,841  

Total auto and other consumer loans

   $ 290,960     $ 283,502     $ 280,224     $ 280,877     $ 273,878  
                                         

Commercial business loans breakout

                                        

Northpointe Bank MPP

   $ 41,951     $ 18,941     $ -     $ -     $ -  

Secured lines of credit

     40,991       39,783       43,081       41,043       39,986  

Unsecured lines of credit

     3,351       2,901       2,580       2,551       2,030  

SBA loans

     5,505       5,645       6,347       6,618       6,889  

Other commercial business loans

     60,793       63,041       61,152       67,631       70,878  

Total commercial business loans

   $ 152,591     $ 130,311     $ 113,160     $ 117,843     $ 119,783  

 

Loans by Collateral and Unfunded Commitments

  

March 31, 2026

    

December 31, 2025

    

September 30, 2025

    

June 30, 2025

    

March 31, 2025

  

One-to-four family construction

   $ 18,571     $ 23,815     $ 31,627     $ 40,509     $ 38,221  

All other construction and land

     44,000       37,334       36,161       36,129       30,947  

One-to-four family first mortgage

     440,576       431,222       415,670       420,847       428,081  

One-to-four family junior liens

     21,169       21,003       20,568       20,116       15,155  

One-to-four family revolving open-end

     57,027       56,365       58,486       57,502       51,832  

Commercial real estate, owner occupied:

                                        

Health care

     28,177       28,488       28,794       29,091       29,386  

Office

     18,953       19,216       18,499       19,116       19,363  

Warehouse

     7,549       7,608       7,684       7,432       9,272  

Other

     72,556       71,313       73,562       74,364       74,915  

Commercial real estate, non-owner occupied:

                                        

Office

     36,657       40,311       40,917       42,198       41,885  

Retail

     53,519       50,494       50,839       51,708       50,737  

Hospitality

     62,729       63,113       63,953       64,308       62,226  

Other

     115,367       112,307       106,991       93,505       93,549  

Multi-family residential

     272,025       289,581       297,379       330,784       339,217  

Commercial business loans

     61,247       66,264       68,062       73,403       75,628  

Commercial agriculture and fishing loans

     27,982       25,842       23,346       22,443       22,914  

State and political subdivision obligations

     333       333       369       369       369  

Consumer automobile loans

     155,443       146,708       142,064       139,992       133,209  

Consumer loans secured by other assets

     133,825       134,826       136,073       138,378       137,619  

Consumer loans unsecured

     1,691       1,969       2,088       2,508       3,051  

Total loans

   $ 1,629,396     $ 1,628,112     $ 1,623,132     $ 1,664,702     $ 1,657,576  
                                         

Unfunded commitments under lines of credit or existing loans

   $ 166,897     $ 167,489     $ 158,118     $ 166,589     $ 175,100  

 

10
 

FIRST NORTHWEST BANCORP AND SUBSIDIARY

NET INTEREST MARGIN ANALYSIS

(Dollars in thousands) (Unaudited)

 

   

Three Months Ended March 31,

  
   

2026

    

2025

  
   

Average

    

Interest

            

Average

    

Interest

          
   

Balance

    

Earned/

    

Yield/

    

Balance

    

Earned/

    

Yield/

  

(dollars in thousands)

  

Outstanding

    

Paid

    

Rate

    

Outstanding

    

Paid

    

Rate

  

Interest-earning assets:

                                                

Loans receivable, net (1) (2)

   $ 1,597,287     $ 22,000       5.59 %   $ 1,641,937     $ 22,231       5.49 %

Total investment securities

     269,658       2,585       3.89       333,208       3,803       4.63  

FHLB dividends

     12,168       282       9.40       13,609       307       9.15  

Interest-earning deposits in banks

     51,046       467       3.71       42,917       482       4.55  

Total interest-earning assets (3)

     1,930,159       25,334       5.32       2,031,671       26,823       5.35  

Noninterest-earning assets

     140,292                       143,077                  

Total average assets

   $ 2,070,451                     $ 2,174,748                  

Interest-bearing liabilities:

                                                

Interest-bearing demand deposits

   $ 140,578     $ 72       0.21     $ 168,414     $ 260       0.63  

Money market accounts

     446,467       2,343       2.13       414,425       2,345       2.29  

Savings accounts

     243,322       871       1.45       216,499       783       1.47  

Certificates of deposit, customer

     438,176       3,892       3.60       451,936       4,522       4.06  

Certificates of deposit, brokered

     70,123       752       4.35       158,269       1,827       4.68  

Total interest-bearing deposits (4)

     1,338,666       7,930       2.40       1,409,543       9,737       2.80  

Advances

     252,778       2,619       4.20       279,500       2,855       4.14  

Subordinated debt

     34,651       345       4.04       38,370       384       4.06  

Total interest-bearing liabilities

     1,626,095       10,894       2.72       1,727,413       12,976       3.05  

Noninterest-bearing deposits (4)

     240,633                       243,569                  

Other noninterest-bearing liabilities

     44,191                       47,329                  

Total average liabilities

     1,910,919                       2,018,311                  

Average equity

     159,532                       156,437                  

Total average liabilities and equity

   $ 2,070,451                     $ 2,174,748                  
                                                 

Net interest income

           $ 14,440                     $ 13,847          

Net interest rate spread

                     2.60                       2.30  

Net earning assets

   $ 304,064                     $ 304,258                  

Net interest margin (5)

                     3.03                       2.76  

Average interest-earning assets to average interest-bearing liabilities

     118.7 %                     117.6 %                

 

(1) The average loans receivable, net balances include nonaccrual loans.

(2) Interest earned on loans receivable includes net deferred costs of $633,000 and $338,000 for the three months ended March 31, 2026 and 2025, respectively.

(3) Includes interest-earning deposits (cash) at other financial institutions.

(4) Cost of all deposits, including noninterest-bearing demand deposits, was 2.04% and 2.39% for the three months ended March 31, 2026 and 2025, respectively.

(5) Net interest income divided by average interest-earning assets.

 

11
 

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 understand the 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 Tangible Common Equity:

 

   

For the Quarter Ended

  

($ in thousands, except per share data)

  

March 31, 2026

    

December 31, 2025

    

September 30, 2025

    

June 30, 2025

    

March 31, 2025

  
                                         

Total shareholders' equity

   $ 156,966     $ 157,264     $ 154,528     $ 149,733     $ 146,492  

Less: Goodwill and other intangible assets

     1,062       1,062       1,080       1,081       1,082  

Disallowed non-mortgage loan servicing rights

     312       302       317       372       415  

Total tangible common equity

   $ 155,592     $ 155,900     $ 153,131     $ 148,280     $ 144,995  
                                         

Total assets

   $ 2,133,443     $ 2,107,895     $ 2,111,373     $ 2,195,363     $ 2,171,430  

Less: Goodwill and other intangible assets

     1,062       1,062       1,080       1,081       1,082  

Disallowed non-mortgage loan servicing rights

     312       302       317       372       415  

Total tangible assets

   $ 2,132,069     $ 2,106,531     $ 2,109,976     $ 2,193,910     $ 2,169,933  
                                         

Average shareholders' equity

   $ 159,532     $ 157,588     $ 151,376     $ 146,857     $ 156,437  

Less: Average goodwill and other intangible assets

     1,062       1,080       1,081       1,081       1,082  

Average disallowed non-mortgage loan servicing rights

     302       317       371       415       423  

Total average tangible common equity

   $ 158,168     $ 156,191     $ 149,924     $ 145,361     $ 154,932  
                                         

Net income (loss)

   $ 6     $ 382     $ 802     $ 3,661     $ (9,036 )

Common shares outstanding

     9,499,300       9,467,925       9,462,150       9,444,963       9,440,618  

GAAP Ratios:

                                        

Equity to total assets

     7.36 %     7.46 %     7.32 %     6.82 %     6.75 %

Return on average equity

     0.02 %     0.96 %     2.10 %     10.00 %     -23.42 %

Book value per common share

   $ 16.52     $ 16.61     $ 16.33     $ 15.85     $ 15.52  

Non-GAAP Ratios:

                                        

Tangible common equity to tangible assets (1)

     7.30 %     7.40 %     7.26 %     6.76 %     6.68 %

Return on average tangible common equity (1)

     0.02 %     0.97 %     2.12 %     10.10 %     -23.65 %

Tangible book value per common share (1)

   $ 16.38     $ 16.47     $ 16.18     $ 15.70     $ 15.36  

(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.

 

12

Source: View Original Filing on SEC EDGAR

FAQ

How did First Northwest Bancorp (FNWB) perform in Q1 2026?

First Northwest Bancorp reported net income of $6,000 for Q1 2026, essentially break-even. This compares with net income of $382,000 in Q4 2025 and a net loss of $9.0 million in Q1 2025, showing a return to modest profitability year over year.

What was First Northwest Bancorp’s (FNWB) net interest margin in Q1 2026?

First Northwest Bancorp’s net interest margin was 3.03% in Q1 2026. This was up from 3.00% in Q4 2025 and 2.76% in Q1 2025, marking six consecutive quarters of improvement driven mainly by lower funding and deposit costs.

How did deposits change at First Northwest Bancorp (FNWB) in Q1 2026?

Total deposits were $1.60 billion at March 31, 2026, roughly flat quarter over quarter. Within that, customer deposits rose $24.9 million to $1.54 billion, while higher-cost brokered deposits fell $22.4 million to $64.1 million, improving the funding mix.

What is the credit quality picture for First Northwest Bancorp (FNWB)?

Allowance for credit losses on loans was $16.8 million, or 1.03% of total loans, at March 31, 2026. Nonperforming assets totaled $23.1 million, equal to 1.08% of total assets, and the quarter included a small $13,000 provision recapture.

What are First Northwest Bancorp’s (FNWB) key capital ratios?

At March 31, 2026, First Fed’s preliminary Common Equity Tier 1 capital ratio was 12.4% and total risk-based capital ratio was 13.5%. These levels kept the bank categorized as well-capitalized, even with accumulated other comprehensive loss in the securities portfolio.

How did noninterest income and expense trend for First Northwest Bancorp (FNWB)?

Noninterest income fell to $2.0 million in Q1 2026 from $3.7 million in Q4 2025, mainly due to a prior quarter $1.7 million insurance reimbursement. Noninterest expense declined slightly to $16.7 million, as prior branch closure costs subsided despite higher data processing and compensation.

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