First Northwest Bancorp Announces Fourth Quarter 2025 Results

Company Release - 1/29/2026 PORT ANGELES, Wash., Jan. 29, 2026 (GLOBE NEWSWIRE) -- 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 $382,000 for the fourth quarter of 2025, compared to net income of $802,000 for the third quarter of 2025 and a net loss of $2.8 million for the fourth quarter of 2024. Basic and diluted income per share were $0.04 for the fourth quarter of 2025, compared to basic and diluted income per share of $0.09 for the third quarter of 2025 and basic and diluted loss per share of $0.32 for the fourth quarter of 2024. Management Outlook: "As we enter 2026, we are building on momentum that began in 2025," said Curt Queyrouze, President and Chief Executive Officer of First Northwest and First Fed. "Our focus is clear: to position First Fed as a high-performing bank by leveraging data to operate more efficiently, strengthening our core deposit base and generating high-quality, relationship-based loan growth. I am encouraged by the progress our team has made and believe we are well prepared for the year ahead. The First Fed team remains committed to serving our communities and delivering exceptional service." Other Announcements: First Fed will permanently close its Bellevue branch, located at 1100 Bellevue Way Northeast in Bellevue, Washington, on April 30, 2026. This decision reflects the Bank’s commitment to adapt to ongoing shifts in customer behavior toward digital banking services. "Customer preferences continue to evolve, and we are seeing that, for this location, the use of online and mobile banking services continues to become more prevalent than in-person visits," said Curt Queyrouze. "Closing this branch allows us to focus on streamlined delivery channels that are convenient, secure and bring innovative banking solutions to our markets." This closure is expected to reduce future annual operating expenses by approximately $900,000. First Fed purchased the Bellevue branch from Sterling Bank and Trust, FSB in July 2021. Bellevue branch customers will continue to have access to their accounts through the Bank's online and mobile platforms, ATM network and branches. First Fed remains committed to serving its communities and looks forward to continuing to provide exceptional banking experiences through multiple channels. The Board of Directors of First Northwest did not declare a dividend for the current quarter. This decision reflects the Company's disciplined approach to capital management and its commitment to maintaining a strong balance sheet. The Board will continue to evaluate future dividend decisions in alignment with Company’s long-term strategic objectives. Fourth Quarter Insights: • Net interest margin increased to 3.00% for the current quarter compared to 2.91% in the third quarter of 2025, primarily as a result of a decrease in the rate paid on interest-bearing liabilities.• Cost of total deposits dropped to 2.12% for the current quarter from 2.20% in the preceding quarter as higher-rate certificates of deposit ("CDs") matured and rates paid on selected deposit products were lowered to align with the recent rate cuts implemented by the Federal Reserve.• First Fed risk-based capital ratios remained relatively stable at 13.6% for the current quarter compared to 13.7% in the third quarter of 2025, and 13.6% for the fourth quarter of 2024.• Brokered deposits decreased $17.9 million, or 17.1%, to $86.5 million at December 31, 2025 from $104.4 million at September 30, 2025, and decreased $96.4 million, or 52.7%, from $182.9 million at December 31, 2024.• Advances increased $48.5 million, or 21.6%, to $273.5 million at December 31, 2025 from $225.0 million at September 30, 2025, partially offsetting the $54.2 million decrease in deposit balances.• A provision for credit losses on loans of $466,000 was recorded in the fourth quarter of 2025, compared to a recapture of $620,000 for the preceding quarter and a provision for credit losses on loans of $3.8 million for the fourth quarter of 2024.  Other significant events: • The Bank has continued to vigorously defend the previously disclosed legal proceedings, filing its Answer and Affirmative Defenses in the Socotra REIT matter and commencing initial discovery in the 3|5|2 Capital matter.• The reimbursement from the Bank's insurance carrier discussed in the Company's previous Quarterly Report on Form 10-Q to partially offset costs associated with ongoing legal matters was received in the current quarter.  Selected Quarterly Financial Ratios: As of or For the Quarter Ended As of or For the Year Ended December 31, December 31, 2025 September 30, 2025 June 30, 2025 March 31, 2025 December 31, 2024 2025 2024 Performance ratios:(1) Return on average assets 0.07% 0.15% 0.68% -1.69% -0.51% -0.20% -0.30%Adjusted PPNR return on average assets(2) 0.09 0.06 0.39 0.27 0.26 0.20 0.18 Return on average equity 0.96 2.10 10.00 -23.42 -6.92 -2.74 -4.09 Net interest margin(3) 3.00 2.91 2.83 2.76 2.73 2.88 2.74 Efficiency ratio(4) 92.0 104.9 78.0 113.5 92.2 97.3 87.0 Equity to total assets 7.46 7.32 6.82 6.75 6.89 7.46 6.89 Book value per common share $16.61 $16.33 $15.85 $15.52 $16.45 $16.61 $16.45 Tangible performance ratios:(1) Tangible common equity to tangible assets(2) 7.40% 7.26% 6.76% 6.68% 6.83% 7.40% 6.83%Return on average tangible common equity(2) 0.97 2.12 10.10 -23.65 -6.99 -2.76 -4.13 Tangible book value per common share(2) $16.47 $16.18 $15.70 $15.36 $16.29 $16.47 $16.29 Capital ratios (First Fed):(5) Tier 1 leverage 9.5% 9.3% 9.1% 9.0% 9.4% 9.5% 9.4%Common equity Tier 1 12.5 12.7 12.0 12.1 12.4 12.5 12.4 Total risk-based 13.6 13.7 13.1 13.4 13.6 13.6 13.6 (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 the fourth quarter of 2025 increased $138,000 to $478,000, compared to $340,000 for the preceding quarter, and decreased $952,000 from $1.4 million in the fourth quarter one year ago. For the Quarter Ended For the Year Ended (Dollars in thousands) December 31, 2025 September 30, 2025 June 30, 2025 March 31, 2025 December 31, 2024 December 31, 2025 December 31, 2024 Net interest income (GAAP) $14,690 $14,569 $14,193 $13,847 $14,137 $57,299 $56,320 Total noninterest income (GAAP) 3,690 2,002 2,170 3,777 1,300 11,639 12,614 Total revenue (GAAP) 18,380 16,571 16,363 17,624 15,437 68,938 68,934 Total noninterest expense (GAAP) 16,902 17,390 12,765 20,000 14,233 67,057 59,993 PPNR (Non-GAAP)(1) 1,478 (819) 3,598 (2,376) 1,204 1,881 8,941 Less: selected nonrecurring adjustments to PPNR (Non-GAAP) 1,000 (1,159) 1,513 (3,845) (226) (2,473) 4,872 Adjusted PPNR (Non-GAAP)(1) $478 $340 $2,085 $1,469 $1,430 $4,354 $4,069 (1)See reconciliation of Non-GAAP Financial Measures later in this release for additional information and detail.• Total interest income decreased $773,000 to $26.1 million for the fourth quarter of 2025, compared to $26.9 million for the preceding quarter, and decreased $2.1 million compared to $28.2 million in the fourth quarter of 2024. Interest income decreased in the fourth quarter of 2025 primarily due to decreased average balances of interest-earning assets. Average real estate and commercial business loan balances decreased while average consumer loan balances increased over the preceding quarter. The yield on interest-earning assets decreased by 3 basis points to 5.34% compared to the preceding quarter, while the effective federal funds rate decreased 45 basis points to 3.64% during the same period.• Total interest expense decreased $894,000 to $11.5 million for the fourth quarter of 2025, compared to $12.3 million for the preceding quarter, and decreased $2.6 million compared to $14.1 million in the fourth quarter of 2024. Interest expense decreased in the fourth quarter of 2025 primarily due to a reduced volumes of brokered CDs and decreases in interest paid on customer CDs, brokered CDs, money market and demand deposits. The current quarter decreases were partially offset by increases in the average balances and interest paid on savings accounts. Reduced volumes and lower rates paid on borrowings contributed to lower interest expense during the current quarter.• Net interest margin increased to 3.00% for the fourth quarter of 2025, from 2.91% for the preceding quarter and 2.73% for the fourth quarter of 2024, marking six consecutive quarters of improvement for a total increase of 30 basis points over that period.• Noninterest income increased $1.7 million to $3.7 million for the fourth quarter of 2025, from $2.0 million for the preceding quarter. A $1.7 million reimbursement from the Bank's insurance carrier to offset expenses paid in previous quarters associated with ongoing legal matters was recorded in other income during the current quarter.• Noninterest expense decreased $488,000 to $16.9 million for the fourth quarter of 2025, compared to $17.4 million for the preceding quarter. Legal fees recorded in professional fees decreased $922,000 from the preceding quarter, which included higher fees related to the ongoing legal matters previously disclosed. The decrease in legal fees was partially offset by $681,000 of expenses related to the upcoming branch closure recorded in compensation and other expense.  Allowance for Credit Losses on Loans ("ACLL") and Credit Quality The allowance for credit losses on loans ("ACLL") increased $784,000 to $17.0 million at December 31, 2025, from $16.2 million at September 30, 2025. The ACLL as a percentage of total loans was 1.04% at December 31, 2025, an increase from 1.00% at September 30, 2025, and a decrease from 1.21% one year earlier. A $466,000 provision expense for the quarter ended December 31, 2025, was the result of $318,000 in net recoveries, partially offset by a $636,000 increase in the overall pooled loan reserve, driven by increased loss factors applied to commercial real estate and commercial business loans, and increased reserves on individually analyzed loans totaling $151,000. Nonperforming loans increased $9.2 million to $22.6 million at December 31, 2025, from $13.4 million at September 30, 2025. Current quarter activity included transition into nonaccrual status of a $6.3 million commercial real estate loan and four commercial business loans totaling $4.7 million. The recorded balances of the commercial business loans are fully supported by collateral and SBA guarantees. A $1.0 million charge-off on a commercial construction loan that was already on nonaccrual status partially offset the loans that transitioned into nonaccrual status during the quarter. ACLL to nonperforming loans decreased to 75% at December 31, 2025, from 121% at September 30, 2025, and increased from 67% at December 31, 2024. This ratio decreased primarily due to the higher balance of nonperforming loan balances compared to the preceding quarter. Classified loans decreased $1.1 million to $22.8 million at December 31, 2025, from $23.9 million at September 30, 2025, primarily due to net recoveries on previously charged-off loans totaling $436,000 partially offset by downgrades of commercial business loans totaling $924,000 and other consumer loans totaling $429,000. Three collateral-dependent loans totaling $14.9 million account for 65% of the classified loan balance at December 31, 2025. The Bank has exercised legal remedies, including the appointment of a third-party receiver and foreclosure actions, to liquidate the underlying collateral to satisfy the real estate loans in the second largest of these collateral-dependent relationships. For the Quarter Ended ACLL ($ in thousands) December 31, 2025 September 30, 2025 June 30, 2025 March 31, 2025 December 31, 2024 Balance at beginning of period $16,203 $18,345 $20,569 $20,449 $21,970 Charge-offs: Commercial real estate (329) (656) (15) (5,571) — Construction and land (1,027) (483) — (374) (411)Auto and other consumer (123) (106) (273) (243) (364)Commercial business (964) (1,005) (2,823) (1,513) (4,596)Total charge-offs (2,443) (2,250) (3,111) (7,701) (5,371)Recoveries: Commercial real estate — 6 20 6 2 Construction and land — — 5 — — Auto and other consumer 34 47 74 43 52 Commercial business 2,727 675 1,084 2 36 Total recoveries 2,761 728 1,183 51 90 Net loan recoveries (charge-offs) 318 (1,522) (1,928) (7,650) (5,281)Provision for (recapture of) credit losses 466 (620) (296) 7,770 3,760 Balance at end of period $16,987 $16,203 $18,345 $20,569 $20,449 Average total loans $1,622,476 $1,650,340 $1,658,723 $1,662,095 $1,708,232 Annualized net (recoveries) charge-offs to average outstanding loans -0.08% 0.37% 0.47% 1.87% 1.23%Asset Quality ($ in thousands) December 31, 2025 September 30, 2025 June 30, 2025 March 31, 2025 December 31, 2024 Nonaccrual loans: One-to-four family $2,272 $2,345 $2,274 $1,404 $1,477 Commercial real estate 9,745 3,439 4,095 4 5,598 Construction and land 5,146 6,037 13,063 15,280 19,544 Home equity 53 9 10 54 55 Auto and other consumer 1,086 1,072 410 710 700 Commercial business 4,293 470 514 2,903 3,141 Total nonaccrual loans 22,595 13,372 20,366 20,355 30,515 Other real estate owned 1,380 1,377 1,297 — — Total nonperforming assets $23,975 $14,749 $21,663 $20,355 $30,515 Nonaccrual loans as a % of total loans(1) 1.39% 0.82% 1.22% 1.23% 1.80%Nonperforming assets as a % of total assets(2) 1.14 0.70 0.99 0.94 1.37 ACLL as a % of total loans 1.04 1.00 1.10 1.24 1.21 ACLL as a % of nonaccrual loans 75.18 121.17 90.08 101.05 67.01 Total past due loans to total loans 1.21 0.88 1.17 1.36 1.98 (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 $12.3 million, or 4.4%, to $270.3 million at December 31, 2025, compared to $282.6 million three months earlier, and decreased $70.0 million compared to $340.3 million at December 31, 2024. Maturities totaling $8.8 million and regular principal payments totaling $5.9 million were partially offset by a $2.4 million reduction of net unrealized losses during the fourth quarter of 2025. The estimated average life of the securities portfolio was approximately 6.5 years at December 31, 2025, 6.9 years at the preceding quarter end and 6.9 years at the end of the fourth quarter of 2024. The effective duration of the portfolio was approximately 4.6 years at December 31, 2025, compared to 4.8 years at the preceding quarter end and 3.9 years at the end of the fourth quarter of 2024. Investment Securities ($ in thousands) December 31, 2025 September 30, 2025 December 31, 2024 Three Month % Change One Year % Change Available for Sale at Fair Value Municipal bonds $80,252 $79,621 $77,876 0.8% 3.1%U.S. government agency issued asset-backed securities (ABS agency) 11,943 12,169 12,876 -1.9 -7.2 Corporate issued asset-backed securities (ABS corporate) 7,961 9,881 16,122 -19.4 -50.6 Corporate issued debt securities (Corporate debt) 38,801 43,339 54,491 -10.5 -28.8 U.S. Small Business Administration securities (SBA) 6,293 6,977 8,666 -9.8 -27.4 Mortgage-backed securities: U.S. government agency issued mortgage-backed securities (MBS agency) 91,656 94,203 98,697 -2.7 -7.1 Non-agency issued mortgage-backed securities (MBS non-agency) 33,404 36,418 71,616 -8.3 -53.4 Total securities available for sale $270,310 $282,608 $340,344 -4.4 -20.6  Net loans, excluding loans held for sale, increased $4.2 million, or 0.3%, to $1.6 billion at December 31, 2025, from $1.6 billion at September 30, 2025, and decreased $63.2 million, or 3.8%, from $1.7 billion one year prior. Construction loans that converted into fully amortizing loans during the quarter totaled $9.0 million. New loan funding totaling $102.6 million and draws on existing loans totaling $19.5 million outpaced loan payoffs of $78.1 million, regular payments of $36.8 million and charge-offs totaling $2.4 million. Loans ($ in thousands) December 31, 2025 September 30, 2025 December 31, 2024 Three Month % Change One Year % Change Real Estate: One-to-four family $376,731 $382,486 $395,315 -1.5% -4.7%Multi-family 288,529 296,321 332,596 -2.6 -13.2 Commercial real estate 402,683 396,519 390,379 1.6 3.2 Construction and land 61,268 67,793 78,110 -9.6 -21.6 Total real estate loans 1,129,211 1,143,119 1,196,400 -1.2 -5.6 Consumer: Home equity 85,088 86,629 79,054 -1.8 7.6 Auto and other consumer 283,502 280,224 268,876 1.2 5.4 Total consumer loans 368,590 366,853 347,930 0.5 5.9 Commercial business 130,311 113,160 151,493 15.2 -14.0 Total loans receivable 1,628,112 1,623,132 1,695,823 0.3 -4.0 Less: Derivative basis adjustment (903) (896) 188 -0.8 -580.3 Allowance for credit losses on loans 16,987 16,203 20,449 4.8 -16.9 Total loans receivable, net $1,612,028 $1,607,825 $1,675,186 0.3 -3.8  Other changes to total assets during the quarter included a $2.2 million increase in the balance of FHLB stock required to be held. There was also a $1.7 million decrease in accrued interest receivable primarily due to interest payments received during the current quarter for maritime loans and investment securities. Total deposits decreased $54.2 million to $1.6 billion at December 31, 2025, compared to $1.7 billion at September 30, 2025, and decreased $88.9 million compared to $1.7 billion one year prior. During the fourth quarter of 2025, total customer deposit balances decreased $36.4 million and brokered deposit balances decreased $17.9 million. The customer deposit mix shifted towards increased average savings account balances while average balances of all other customer accounts decreased. The rates paid on customer interest-bearing deposits decreased 10 basis points to 2.37% for the current quarter, compared to 2.47% for the third quarter of 2025. The deposit mix compared to December 31, 2024, reflects a shift in average balances of customer accounts to savings and money market accounts from demand deposit and CD accounts, with an overall $5.2 million increase to average customer balances. A $99.2 million decrease in the average balance of brokered CDs was the main driver for the year-over-year decrease in total deposits. Rates paid on interest-bearing deposit accounts decreased 53 basis points compared to the same quarter one year ago. Deposits ($ in thousands) December 31, 2025 September 30, 2025 December 31, 2024 Three Month % Change One Year % Change Noninterest-bearing demand deposits $245,760 $255,366 $256,416 -3.8% -4.2%Interest-bearing demand deposits 143,166 146,373 164,891 -2.2 -13.2 Money market accounts 451,143 475,614 413,822 -5.1 9.0 Savings accounts 239,258 232,831 205,055 2.8 16.7 Certificates of deposit, customer 433,264 438,780 464,928 -1.3 -6.8 Certificates of deposit, brokered 86,510 104,363 182,914 -17.1 -52.7 Total deposits $1,599,101 $1,653,327 $1,688,026 -3.3 -5.3  Total shareholders’ equity increased to $157.3 million at December 31, 2025, compared to $154.5 million three months earlier, due to an increase in the after-tax fair market values of the available-for-sale investment securities portfolio of $1.9 million and net income of $382,000. No shares of common stock were repurchased under the Company's April 2024 Stock Repurchase Plan (the "Repurchase Plan") during the quarter ended December 31, 2025. 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 regulatory requirements and the Bank was categorized as "well-capitalized" at December 31, 2025. Preliminary calculations of Common Equity Tier 1 and Total Risk-Based Capital Ratios at December 31, 2025, for the Bank were 12.5% and 13.6%, 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  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; changes in general economic conditions and conditions within the securities markets, including potential recessionary and other unfavorable conditions and trends relating to housing markets, unemployment levels, interest rates and inflationary pressures, among other things; 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 2025 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 [email protected] 360-457-0461 FIRST NORTHWEST BANCORP AND SUBSIDIARY CONSOLIDATED BALANCE SHEETS (Dollars in thousands, except share data) (Unaudited) December 31, 2025 September 30, 2025 June 30, 2025 March 31, 2025 December 31, 2024 ASSETS Cash and due from banks $15,530 $15,688 $18,487 $18,911 $16,811 Interest-earning deposits in banks 69,587 63,482 69,376 51,412 55,637 Investment securities available for sale, at fair value (amortized cost at each period end of $295,849, $310,545, $336,206, $348,249 and $376,265) 270,310 282,608 303,515 315,433 340,344 Loans held for sale 1,063 2,154 1,557 2,940 472 Loans receivable (net of allowance for credit losses on loans at each period end of $16,987, $16,203, $18,345, $20,569, and $20,449) 1,612,028 1,607,825 1,647,217 1,637,573 1,675,186 Federal Home Loan Bank (FHLB) stock, at cost 13,105 10,856 14,906 13,106 14,435 Accrued interest receivable 6,498 8,160 8,305 8,319 8,159 Premises and equipment, net 8,464 8,788 8,999 9,870 10,129 Servicing rights on sold loans, at fair value 3,014 3,093 3,220 3,301 3,281 Bank-owned life insurance ("BOLI"), net 42,382 41,889 41,380 31,786 41,150 Equity and partnership investments 15,489 15,048 14,811 15,026 13,229 Goodwill and other intangible assets, net 1,062 1,080 1,081 1,082 1,082 Deferred tax asset, net 13,638 14,168 14,266 14,304 13,738 Right-of-use ("ROU") asset, net 15,596 15,494 15,772 16,687 17,001 Prepaid expenses and other assets 20,129 21,040 32,471 31,680 21,352 Total assets $2,107,895 $2,111,373 $2,195,363 $2,171,430 $2,232,006 LIABILITIES AND SHAREHOLDERS' EQUITY Deposits $1,599,101 $1,653,327 $1,654,636 $1,666,068 $1,688,026 Borrowings 308,143 259,625 344,108 307,091 336,014 Accrued interest payable 1,223 1,145 1,514 2,163 3,295 Lease liability, net 16,439 16,071 16,257 17,266 17,535 Accrued expenses and other liabilities 24,301 24,321 27,790 29,767 31,770 Advances from borrowers for taxes and insurance 1,424 2,356 1,325 2,583 1,484 Total liabilities 1,950,631 1,956,845 2,045,630 2,024,938 2,078,124 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: 9,467,925; 9,462,150; 9,444,963; 9,440,618; and 9,353,348 95 94 94 94 93 Additional paid-in capital 93,803 93,646 93,595 93,450 93,357 Retained earnings 91,699 91,317 90,506 87,506 97,198 Accumulated other comprehensive loss, net of tax (22,398) (24,429) (28,198) (28,129) (30,172)Unearned employee stock ownership plan (ESOP) shares (5,935) (6,100) (6,264) (6,429) (6,594)Total shareholders' equity 157,264 154,528 149,733 146,492 153,882 Total liabilities and shareholders' equity $2,107,895 $2,111,373 $2,195,363 $2,171,430 $2,232,006 FIRST NORTHWEST BANCORP AND SUBSIDIARY CONSOLIDATED STATEMENTS OF OPERATIONS (Dollars in thousands, except per share data) (Unaudited) For the Quarter Ended For the Year Ended December 31, 2025 September 30, 2025 June 30, 2025 March 31, 2025 December 31, 2024 December 31, 2025 December 31, 2024 INTEREST INCOME Interest and fees on loans receivable $22,431 $22,814 $22,814 $22,231 $23,716 $90,290 $93,752 Interest on investment securities 2,971 3,244 3,466 3,803 3,658 13,484 15,025 Interest on deposits in banks 473 570 520 482 550 2,045 2,348 FHLB dividends 262 282 331 307 273 1,182 1,215 Total interest income 26,137 26,910 27,131 26,823 28,197 107,001 112,340 INTEREST EXPENSE Deposits 8,648 9,083 9,552 9,737 11,175 37,020 42,427 Borrowings 2,799 3,258 3,386 3,239 2,885 12,682 13,593 Total interest expense 11,447 12,341 12,938 12,976 14,060 49,702 56,020 Net interest income 14,690 14,569 14,193 13,847 14,137 57,299 56,320 PROVISION FOR CREDIT LOSSES Provision for (recapture of) credit losses on loans 466 (620) (296) 7,770 3,760 7,320 16,716 Provision for (recapture of) credit losses on unfunded commitments 97 (53) (64) 15 (105) (5) (218)Provision for (recapture of) credit losses 563 (673) (360) 7,785 3,655 7,315 16,498 Net interest income after provision for (recapture of) credit losses 14,127 15,242 14,553 6,062 10,482 49,984 39,822 NONINTEREST INCOME Loan and deposit service fees 1,044 1,114 1,095 1,106 1,054 4,359 4,291 Sold loan servicing fees and servicing rights mark-to-market 57 85 92 195 (115) 429 188 Net gain (loss) on sale of loans 96 (39) 44 11 52 112 312 Net gain on sale of investment securities — — — — — — (2,117)Net gain on sale of premises and equipment — — — — — — 7,919 Increase in BOLI cash surrender value 493 539 485 372 328 1,889 1,179 Income from BOLI death benefit, net — — — 1,059 1,536 1,059 1,536 Other income (loss) 2,000 303 454 1,034 (1,555) 3,791 (694)Total noninterest income 3,690 2,002 2,170 3,777 1,300 11,639 12,614 NONINTEREST EXPENSE Compensation and benefits 8,042 8,353 4,698 7,715 7,367 28,808 32,665 Data processing 1,990 1,941 1,926 2,011 2,065 7,868 8,102 Occupancy and equipment 1,539 1,505 1,507 1,592 1,559 6,143 6,151 Supplies, postage, and telephone 332 344 346 298 296 1,320 1,266 Regulatory assessments and state taxes 688 558 501 479 460 2,226 1,978 Advertising 290 282 299 265 362 1,136 1,457 Professional fees 1,957 2,668 1,449 777 813 6,851 3,105 FDIC insurance premium 424 411 463 434 491 1,732 1,883 Other expense 1,640 1,328 1,576 6,429 820 10,973 3,386 Total noninterest expense 16,902 17,390 12,765 20,000 14,233 67,057 59,993 Income (loss) before provision (benefit) for income taxes 915 (146) 3,958 (10,161) (2,451) (5,434) (7,557)Provision (benefit) for income taxes 533 (948) 297 (1,125) 359 (1,243) (944)Net income (loss) $382 $802 $3,661 $(9,036) $(2,810) $(4,191) $(6,613) Basic and diluted earnings (loss) per common share $0.04 $0.09 $0.42 $(1.03) $(0.32) $(0.48) $(0.75) FIRST NORTHWEST BANCORP AND SUBSIDIARY ADDITIONAL INFORMATION (Dollars in thousands) (Unaudited) Selected Loan Detail December 31, 2025 September 30, 2025 June 30, 2025 March 31, 2025 December 31, 2024 Construction and land loans breakout 1-4 Family construction $21,954 $29,961 $39,040 $42,371 $39,319 Multifamily construction 10,109 15,660 14,728 9,223 15,407 Nonresidential construction 23,005 16,484 12,832 7,229 16,857 Land and development 6,200 5,688 5,938 6,054 6,527 Total construction and land loans $61,268 $67,793 $72,538 $64,877 $78,110 Auto and other consumer loans breakout Triad Manufactured Home loans $132,287 $133,425 $135,537 $134,740 $128,231 Woodside auto loans 137,678 131,800 127,828 118,972 117,968 First Help auto loans 8,491 9,561 11,221 13,012 14,283 Other auto loans 586 767 1,016 1,313 1,647 Other consumer loans 4,460 4,671 5,275 5,841 6,747 Total auto and other consumer loans $283,502 $280,224 $280,877 $273,878 $268,876 Commercial business loans breakout Northpointe Bank MPP $18,941 $- $- $- $36,230 Secured lines of credit 39,783 43,081 41,043 39,986 35,701 Unsecured lines of credit 2,901 2,580 2,551 2,030 1,717 SBA loans 5,645 6,347 6,618 6,889 7,044 Other commercial business loans 63,041 61,152 67,631 70,878 70,801 Total commercial business loans $130,311 $113,160 $117,843 $119,783 $151,493 Loans by Collateral and Unfunded Commitments December 31, 2025 September 30, 2025 June 30, 2025 March 31, 2025 December 31, 2024 One-to-four family construction $23,815 $31,627 $40,509 $38,221 $44,468 All other construction and land 37,334 36,161 36,129 30,947 34,290 One-to-four family first mortgage 431,222 415,670 420,847 428,081 466,046 One-to-four family junior liens 21,003 20,568 20,116 15,155 15,090 One-to-four family revolving open-end 56,365 58,486 57,502 51,832 51,481 Commercial real estate, owner occupied: Health care 28,488 28,794 29,091 29,386 29,129 Office 19,216 18,499 19,116 19,363 17,756 Warehouse 7,608 7,684 7,432 9,272 14,948 Other 71,313 73,562 74,364 74,915 78,170 Commercial real estate, non-owner occupied: Office 40,311 40,917 42,198 41,885 49,417 Retail 50,494 50,839 51,708 50,737 49,591 Hospitality 63,113 63,953 64,308 62,226 61,919 Other 112,307 106,991 93,505 93,549 81,640 Multi-family residential 289,581 297,379 330,784 339,217 333,419 Commercial business loans 66,264 68,062 73,403 75,628 77,381 Commercial agriculture and fishing loans 25,842 23,346 22,443 22,914 21,833 State and political subdivision obligations 333 369 369 369 369 Consumer automobile loans 146,708 142,064 139,992 133,209 133,789 Consumer loans secured by other assets 134,826 136,073 138,378 137,619 131,429 Consumer loans unsecured 1,969 2,088 2,508 3,051 3,658 Total loans $1,628,112 $1,623,132 $1,664,702 $1,657,576 $1,695,823 Unfunded commitments under lines of credit or existing loans $167,489 $158,118 $166,589 $175,100 $163,827 FIRST NORTHWEST BANCORP AND SUBSIDIARY NET INTEREST MARGIN ANALYSIS (Dollars in thousands) (Unaudited) Three Months Ended December 31, 2025 2024 Average Interest Average Interest Balance Earned/ Yield/ Balance Earned/ Yield/ Outstanding Paid Rate Outstanding Paid Rate (Dollars in thousands) Interest-earning assets: Loans receivable, net(1) (2) $1,606,056 $22,431 5.54% $1,688,239 $23,716 5.59%Total investment securities 276,724 2,971 4.26 313,759 3,658 4.64 FHLB dividends 11,117 262 9.35 11,762 273 9.23 Interest-earning deposits in banks 46,878 473 4.00 45,358 550 4.82 Total interest-earning assets(3) 1,940,775 26,137 5.34 2,059,118 28,197 5.45 Noninterest-earning assets 142,993 146,384 Total average assets $2,083,768 $2,205,502 Interest-bearing liabilities: Interest-bearing demand deposits $141,128 $63 0.18 $162,954 $210 0.51 Money market accounts 459,821 2,625 2.26 442,481 2,773 2.49 Savings accounts 237,396 884 1.48 206,605 721 1.39 Certificates of deposit, customer 440,018 4,079 3.68 461,136 4,925 4.25 Certificates of deposit, brokered 92,771 997 4.26 192,018 2,546 5.27 Total interest-bearing deposits(4) 1,371,134 8,648 2.50 1,465,194 11,175 3.03 Advances 230,033 2,454 4.23 236,576 2,491 4.19 Subordinated debt 34,634 345 3.95 39,504 394 3.97 Total interest-bearing liabilities 1,635,801 11,447 2.78 1,741,274 14,060 3.21 Noninterest-bearing deposits(4) 247,496 256,715 Other noninterest-bearing liabilities 42,883 45,953 Total average liabilities 1,926,180 2,043,942 Average equity 157,588 161,560 Total average liabilities and equity $2,083,768 $2,205,502 Net interest income $14,690 $14,137 Net interest rate spread 2.56 2.24 Net earning assets $304,974 $317,844 Net interest margin(5) 3.00 2.73 Average interest-earning assets to average interest-bearing liabilities 118.6% 118.3% (1)The average loans receivable, net balances include nonaccrual loans.(2)Interest earned on loans receivable includes net deferred (costs) fees of ($409,000) and $103,000 for the three months ended December 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, was 2.12% and 2.58% for the three months ended December 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 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 PPNR and Adjusted PPNR: For the Quarter Ended For the Year Ended (Dollars in thousands) December 31, 2025 September 30, 2025 June 30, 2025 March 31, 2025 December 31, 2024 December 31, 2025 December 31, 2024 Net income (loss) (GAAP) $382 $802 $3,661 $(9,036) $(2,810) $(4,191) $(6,613)Plus: provision for (recapture of) credit losses (GAAP) 563 (673) (360) 7,785 3,655 7,315 16,498 Provision (benefit) for income taxes (GAAP) 533 (948) 297 (1,125) 359 (1,243) (944)PPNR (Non-GAAP)(1) 1,478 (819) 3,598 (2,376) 1,204 1,881 8,941 Less selected nonrecurring adjustments to PPNR (Non-GAAP): Insurance reimbursement included in other income 1,681 — — — — 1,681 — Branch closure costs included in compensation and other expense (681) — — — — (663) — Executive transition costs included in compensation and professional fees — (1,159) — — — (1,159) — Employee retention credit ("ERC") included in compensation — — 2,640 — — 2,640 — ERC consulting expense included in professional fees — — (528) — — (528) — Costs associated with early termination of Bellevue Business Center lease included in other expense — — (599) — — (599) — Bank-owned life insurance ("BOLI") death benefit — — — 1,059 1,536 1,059 1,536 Gain on extinguishment of subordinated debt included in other income — — — 846 — 846 — Legal reserve included in other expense — — — (5,750) — (5,750) — Equity investment repricing adjustment included in other income — — — — (1,762) — (1,111)One-time compensation payouts related to reduction in force — — — — — — (996)Net gain on sale of premises and equipment related to sale-leaseback — — — — — — 7,919 Sale leaseback taxes and assessments included in occupancy and equipment — — — — — — (359)Net gain on sale of investment securities — — — — — — (2,117)Adjusted PPNR (Non-GAAP)(1) $478 $340 $2,085 $1,469 $1,430 $4,354 $4,069 Average total assets (GAAP) $2,083,768 $2,135,409 $2,164,579 $2,174,748 $2,205,502 $2,139,358 $2,200,138 GAAP Ratio: Return on average assets (GAAP) 0.07% 0.15% 0.68% -1.69% -0.51% -0.20% -0.30%Non-GAAP Ratios: PPNR return on average assets (Non-GAAP)(1) 0.28% -0.15% 0.67% -0.44% 0.22% 0.09% 0.41%Adjusted PPNR return on average assets (Non-GAAP)(1) 0.09% 0.06% 0.39% 0.27% 0.26% 0.20% 0.18%(1)PPNR removes the provisions for credit loss and income tax from net income. This removes potentially volatile estimates, providing a 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 For the Year Ended (Dollars in thousands, except per share data) December 31, 2025 September 30, 2025 June 30, 2025 March 31, 2025 December 31, 2024 December 31, 2025 December 31, 2024 Total shareholders' equity $157,264 $154,528 $149,733 $146,492 $153,882 $157,264 $153,882 Less: Goodwill and other intangible assets 1,062 1,080 1,081 1,082 1,082 1,062 1,082 Disallowed non-mortgage loan servicing rights 302 317 372 415 423 302 423 Total tangible common equity $155,900 $153,131 $148,280 $144,995 $152,377 $155,900 $152,377 Total assets $2,107,895 $2,111,373 $2,195,363 $2,171,430 $2,232,006 $2,107,895 $2,232,006 Less: Goodwill and other intangible assets 1,062 1,080 1,081 1,082 1,082 1,062 1,082 Disallowed non-mortgage loan servicing rights 302 317 372 415 423 302 423 Total tangible assets $2,106,531 $2,109,976 $2,193,910 $2,169,933 $2,230,501 $2,106,531 $2,230,501 Average shareholders' equity $157,588 $151,376 $146,857 $156,470 $161,560 $153,063 $161,742 Less: Average goodwill and other intangible assets 1,080 1,081 1,081 1,082 1,083 1,081 1,084 Average disallowed non-mortgage loan servicing rights 317 371 415 423 489 381 494 Total average tangible common equity $156,191 $149,924 $145,361 $154,965 $159,988 $151,601 $160,164 Net income (loss) $382 $802 $3,661 $(9,036) $(2,810) $(4,191) $(6,613)Common shares outstanding 9,467,925 9,462,150 9,444,963 9,440,618 9,353,348 9,467,925 9,353,348 GAAP Ratios: Equity to total assets 7.46% 7.32% 6.82% 6.75% 6.89% 7.46% 6.89%Return on average equity 0.96% 2.10% 10.00% -23.42% -6.92% -2.74% -4.09%Book value per common share $16.61 $16.33 $15.85 $15.52 $16.45 $16.61 $16.45 Non-GAAP Ratios: Tangible common equity to tangible assets(1) 7.40% 7.26% 6.76% 6.68% 6.83% 7.40% 6.83%Return on average tangible common equity(1) 0.97% 2.12% 10.10% -23.65% -6.99% -2.76% -4.13%Tangible book value per common share(1) $16.47 $16.18 $15.70 $15.36 $16.29 $16.47 $16.29 (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: https://www.globenewswire.com/NewsRoom/AttachmentNg/d3a6468f-4c55-4761-a717-34818584fa19 https://www.globenewswire.com/NewsRoom/AttachmentNg/e85de603-f6c1-461a-a7da-ac24fafd246c https://www.globenewswire.com/NewsRoom/AttachmentNg/25fa62f5-48bc-407d-9a32-934aaf92231a https://www.globenewswire.com/NewsRoom/AttachmentNg/950f6f55-fd89-4f16-84bf-3eb5f356b96a Forbes Best-in-State Banks Forbes Best-in-State Banks Bellingham Best of the Northwest - Best Bank Silver Bellingham Best of the Northwest - Best Bank Silver Best Bank in Clallam County Best Bank in Clallam County Best Lender in Clallam County and West End Best Lender in Clallam County and West End Source: First Northwest Bancorp View all news