First Northwest Bancorp Reports $4.2 Million Net Loss for 2025

**First Northwest Bancorp Reports Financial Results for 2025**

First Northwest Bancorp (FNWB), a bank holding company for First Fed Bank, released its 10-K filing, reporting a net loss of $4.2 million for the year ended December 31, 2025, compared to a net loss of $6.6 million for the year ended December 31, 2024. This translates to a loss of $0.48 per common and diluted share, an improvement from the $0.75 loss per share reported in the previous year. The company's total assets decreased by 5.6% to $2.11 billion, primarily due to a reduction in investment securities and loans receivable. As of December 31, 2025, the aggregate market value of the registrant's common stock held by non-affiliates was $68.6 million.

Net interest income increased slightly by 1.7% to $57.3 million, driven by a decrease in interest expense that outpaced a decrease in interest income. Interest income decreased by 4.8% to $107.0 million, while interest expense decreased by 11.3% to $49.7 million. The net interest margin increased to 2.88% from 2.74% in the prior year. The provision for credit losses decreased significantly to $7.3 million, compared to $16.5 million in the previous year, reflecting improved asset quality and lower loan reserve balances. Noninterest income decreased by 7.7% to $11.6 million, impacted by the absence of a gain on sale of premises and equipment, partially offset by an insurance reimbursement and a gain on extinguishment of subordinated debt.

Key operational developments included a decrease in total loans outstanding by 4.0% to $1.63 billion. One-to-four family residential loans decreased by 4.7%, while commercial real estate loans increased by 3.2%. The company continued its strategy of originating and purchasing loans outside of its traditional market areas in the Puget Sound region. The company sold $24.6 million of residential mortgage loans into the secondary market during the year. Total deposits decreased by 5.3% to $1.60 billion, with a shift from certificates of deposit to money market and savings accounts. The company also redeemed $5.0 million of its subordinated notes, resulting in a gain on extinguishment of debt.

Looking ahead, First Northwest Bancorp will focus on process and data improvement, building a resilient core deposit base, and growing the organic loan portfolio. The company intends to extend its traditional and digital operations in the Puget Sound Region. Subsequent to year end, the Company redeemed its interest in MWGC at par and the Bank signed a redemption agreement which sets forth the path to unwind its investment in the Hero Fund through capital distributions beginning in April 2026. The company is also monitoring a subordinated debt investment that may be approaching payment default.