First Northwest Bancorp Announces Third Quarter 2025 Results

PORT ANGELES, Wash., Oct. 27, 2025 (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 $802,000 for the third quarter of 2025, compared to net income of $3.7 million for the second quarter of 2025 and a net loss of $2.0 million for the third quarter of 2024. Basic and diluted income per share were $0.09 for the third quarter of 2025, compared to basic and diluted income per share of $0.42 for the second quarter of 2025 and basic and diluted loss per share of $0.23 for the third quarter of 2024. 

Management Outlook:
"With over a century of history behind First Fed, I'm committed to honoring that legacy by continuing to deliver long-term value for our shareholders and remaining a trusted partner in the communities we serve," said Curt Queyrouze, President and Chief Executive Officer of First Northwest and First Fed. "Guided by our Board and driven by a talented team, we are building a modern, forward-thinking financial institution. Our third quarter results demonstrate meaningful progress in positioning First Fed to meet the evolving needs of our customers. As we embrace a culture of customer obsession, we recognize that their success is our success. I'm excited to build on the strong foundation we've established and work to ensure First Northwest continues to be a catalyst for financial growth and wellness throughout our communities."

The Board of Directors of First Northwest elected not to declare a dividend for this quarter as part of a prudent approach to capital management. The Company remains committed to maintaining a strong balance sheet and will continue to evaluate future dividend decisions in light of the Company’s long-term strategic objectives.

Key Points for the Third Quarter

Positive Trends:

•		Net interest margin increased to 2.91% for the current quarter compared to 2.83% in the second quarter of 2025, as a result of a decrease in the rate paid on interest-bearing liabilities.
•		Cost of total deposits dropped to 2.20% for the current quarter from 2.31% in the preceding quarter as higher-rate certificates of deposit ("CDs") matured and noninterest-bearing demand balances increased.
•		First Fed risk-based capital ratios improved to 13.7% for the current quarter compared to 13.1% in the second quarter of 2025, and 13.4% for the third quarter of 2024.
•		Advances decreased $84.5 million, or 27.3%, to $225.0 million at September 30, 2025 from $309.5 million at June 30, 2025, contributing to the improved net interest margin.
•		Recorded a $620,000 recapture of provision for credit losses on loans in the third quarter of 2025, compared to a recapture of $296,000 for the preceding quarter and a provision for credit losses on loans of $3.1 million for the third quarter of 2024.

Other significant events:

•		During the third quarter of 2025, the Company experienced higher compensation expenses as a result of executive management changes.
•		The Bank continues to vigorously defend itself in the legal proceedings disclosed in our last Quarterly Report on Form 10-Q, resulting in continued higher legal expenses.

Selected Quarterly Financial Ratios:
		As of or For the Quarter Ended																				As of or For the Nine Months Ended September 30,
		September 30, 2025				June 30, 2025				March 31, 2025				December 31, 2024				September 30, 2024				2025				2024
Performance ratios:(1)
Return on average assets			0.15	%			0.68	%			-1.69	%			-0.51	%			-0.36	%			-0.28	%			-0.23	%
Adjusted PPNR return on average assets(2)			0.06				0.39				0.27				0.26				0.17				0.24				0.16
Return on average equity			2.10				10.00				-23.42				-6.92				-4.91				-4.03				-3.14
Net interest margin(3)			2.91				2.83				2.76				2.73				2.70				2.83				2.74
Efficiency ratio(4)			104.9				78.0				113.5				92.2				100.3				99.2				85.5
Equity to total assets			7.32				6.82				6.75				6.89				7.13				7.32				7.13
Book value per common share		$	16.33			$	15.85			$	15.52			$	16.45			$	17.17			$	16.33			$	17.17
Tangible performance ratios:(1)
Tangible common equity to tangible assets(2)			7.26	%			6.76	%			6.68	%			6.83	%			7.06	%			7.26	%			7.06	%
Return on average tangible common equity(2)			2.12				10.10				-23.65				-6.99				-4.96				-4.07				-3.17
Tangible book value per common share(2)		$	16.18			$	15.70			$	15.36			$	16.29			$	17.00			$	16.18			$	17.00
Capital ratios (First Fed):(5)
Tier 1 leverage			9.3	%			9.1	%			9.0	%			9.4	%			9.4	%			9.3	%			9.4	%
Common equity Tier 1			12.7				12.0				12.1				12.4				12.2				12.7				12.2
Total risk-based			13.7				13.1				13.4				13.6				13.4				13.7				13.4

(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 third quarter of 2025 decreased $1.8 million to $340,000, compared to $2.1 million for the preceding quarter, and decreased $607,000 from $947,000 in the third quarter one year ago.

		For the Quarter Ended																				For the Nine Months Ended
(Dollars in thousands)		September 30, 2025				June 30, 2025				March 31, 2025				December 31, 2024				September 30, 2024				September 30, 2025				September 30, 2024
Net interest income (GAAP)		$	14,569			$	14,193			$	13,847			$	14,137			$	14,020			$	42,609			$	42,183
Total noninterest income (GAAP)			2,002				2,170				3,777				1,300				1,779				7,949				11,314
Total revenue (GAAP)			16,571				16,363				17,624				15,437				15,799				50,558				53,497
Total noninterest expense (GAAP)			17,390				12,765				20,000				14,233				15,848				50,155				45,760
PPNR (Non-GAAP)(1)			(819	)			3,598				(2,376	)			1,204				(49	)			403				7,737
Less selected nonrecurring adjustments to PPNR (Non-GAAP):
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				—
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	)			—				—				651
One-time compensation payouts related to reduction in force			—				—				—				—				(996	)			—				(996	)
Net gain on sale of premises and equipment			—				—				—				—				—				—				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)		$	340			$	2,085			$	1,469			$	1,430			$	947			$	3,894			$	2,639

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

•		Total interest income decreased $221,000 to $26.9 million for the third quarter of 2025, compared to $27.1 million for the preceding quarter, and decreased $1.3 million compared to $28.2 million in the third quarter of 2024. Interest income decreased in the third 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.
•		Total interest expense decreased $597,000 to $12.3 million for the third quarter of 2025, compared to $12.9 million for the preceding quarter, and decreased $1.8 million compared to $14.2 million in the third quarter of 2024. Interest expense decreased in the third quarter of 2025 primarily due to a reduced volumes of brokered CDs and decreases in interest paid on customer CDs, brokered CDs and demand deposits. These decreases were partially offset by increases in the average balances and interest paid on money market and savings accounts. Advances also had reduced volumes and a decrease in the rate paid during the current quarter.
•		Net interest margin increased to 2.91% for the third quarter of 2025, from 2.83% for the preceding quarter and 2.70% for the third quarter of 2024, marking five consecutive quarters of improvement.
•		Noninterest income decreased $168,000 to $2.0 million for the third quarter of 2025, from $2.2 million for the preceding quarter. A period-over-period decrease in the value of equity and fintech partnership investments was recorded for the current quarter.
•		Noninterest expense increased $4.6 million to $17.4 million for the third quarter of 2025, compared to $12.8 million for the preceding quarter. The preceding quarter of 2025 included a nonrecurring ERC reduction to compensation and benefits totaling $2.6 million. Current quarter increases include nonrecurring costs related to the executive management transition of $1.1 million recorded in compensation and benefits and $105,000 for executive search fees recorded in professional fees. The $1.6 million increase in legal fees over the preceding quarter recorded in professional fees is due to the ongoing legal matters previously disclosed.

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

The allowance for credit losses on loans ("ACLL") decreased $2.1 million to $16.2 million at September 30, 2025, from $18.4 million at June 30, 2025. The ACLL as a percentage of total loans was 1.00% at September 30, 2025, a decrease from 1.10% at June 30, 2025, and from 1.27% one year earlier. A $2.1 million decline in the overall pooled loan reserve, driven primarily by reduced loan balances combined with a decrease in the loss factor applied to one-to-four family loans, was partially offset by net loan charge-offs totaling $1.5 million, contributing to a recapture of provision expense of $620,000 for the quarter ended September 30, 2025.

Nonperforming loans decreased $7.0 million to $13.4 million at September 30, 2025, from $20.4 million at June 30, 2025. Current quarter activity included a $4.9 million decrease due to the sale of a commercial construction loan and charged-off balances totaling $1.6 million. ACLL to nonperforming loans increased to 121% at September 30, 2025, from 90% at June 30, 2025, and from 72% at September 30, 2024. This ratio has increased as nonperforming loan balances have decreased due to principal payments, sales and charge-offs.

Classified loans decreased $7.1 million to $23.9 million at September 30, 2025, from $30.9 million at June 30, 2025, primarily due to the sale of a $4.9 million commercial construction loan, payments received of $1.6 million and commercial loan net charge-offs totaling $1.9 million, partially offset by $1.8 million of consumer loan downgrades. Three collateral dependent loans totaling $16.1 million account for 68% of the classified loan balance at September 30, 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 largest of these four collateral-dependent relationships. The Bank is also closely monitoring a group of commercial business loans that have similar collateral, with 12 loans totaling $149,000 included in classified loans at September 30, 2025, and one additional loan totaling $210,000 included in the special mention risk grading category.

		For the Quarter Ended
ACLL ($ in thousands)		September 30, 2025				June 30, 2025				March 31, 2025				December 31, 2024				September 30, 2024
Balance at beginning of period		$	18,345			$	20,569			$	20,449			$	21,970			$	19,343
Charge-offs:
Commercial real estate			(656	)			(15	)			(5,571	)			—				—
Construction and land			(483	)			—				(374	)			(411	)			—
Auto and other consumer			(106	)			(273	)			(243	)			(364	)			(492	)
Commercial business			(1,005	)			(2,823	)			(1,513	)			(4,596	)			(24	)
Total charge-offs			(2,250	)			(3,111	)			(7,701	)			(5,371	)			(516	)
Recoveries:
One-to-four family			—				—				—				—				42
Commercial real estate			6				20				6				2				—
Construction and land			—				5				—				—				—
Auto and other consumer			47				74				43				52				24
Commercial business			675				1,084				2				36				—
Total recoveries			728				1,183				51				90				66
Net loan charge-offs			(1,522	)			(1,928	)			(7,650	)			(5,281	)			(450	)
(Recapture of) provision for credit losses			(620	)			(296	)			7,770				3,760				3,077
Balance at end of period		$	16,203			$	18,345			$	20,569			$	20,449			$	21,970
Average total loans		$	1,650,340			$	1,658,723			$	1,662,164			$	1,708,232			$	1,718,402
Annualized net charge-offs to average outstanding loans			0.37	%			0.47	%			1.87	%			1.23	%			0.10	%

Asset Quality ($ in thousands)		September 30, 2025				June 30, 2025				March 31, 2025				December 31, 2024				September 30, 2024
Nonaccrual loans:
One-to-four family		$	2,345			$	2,274			$	1,404			$	1,477			$	1,631
Commercial real estate			3,439				4,095				4				5,598				5,634
Construction and land			6,037				13,063				15,280				19,544				19,382
Home equity			9				10				54				55				116
Auto and other consumer			1,072				410				710				700				894
Commercial business			470				514				2,903				3,141				2,719
Total nonaccrual loans			13,372				20,366				20,355				30,515				30,376
Other real estate owned			1,377				1,297				—				—				—
Total nonperforming assets		$	14,749			$	21,663			$	20,355			$	30,515			$	30,376
Nonaccrual loans as a % of total loans (1)			0.82	%			1.22	%			1.23	%			1.80	%			1.75	%
Nonperforming assets as a % of total assets (2)			0.70				0.99				0.94				1.37				1.35
ACLL as a % of total loans			1.00				1.10				1.24				1.21				1.27
ACLL as a % of nonaccrual loans			121.17				90.08				101.05				67.01				72.33
Total past due loans to total loans			0.88				1.17				1.36				1.98				1.92

(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 $20.9 million, or 6.9%, to $282.6 million at September 30, 2025, compared to $303.5 million three months earlier, and decreased $28.3 million compared to $310.9 million at September 30, 2024. Maturities totaling $16.3 million and regular principal payments totaling $9.3 million were partially offset by a $4.8 million reduction of net unrealized losses during the third quarter of 2025. The estimated average life of the securities portfolio was approximately 6.9 years at September 30, 2025, 7.6 years at the preceding quarter end and 7.4 years at the end of the third quarter of 2024. The effective duration of the portfolio was approximately 4.8 years at September 30, 2025, compared to 4.9 years at the preceding quarter end and 3.9 years at the end of the third quarter of 2024.

Investment Securities ($ in thousands)			September 30, 2025				June 30, 2025				September 30, 2024				Three Month  % Change				One Year % Change
Available for Sale at Fair Value
Municipal bonds		$	79,621			$	77,324			$	81,363				3.0	%			-2.1	%
U.S. government agency issued asset-backed securities (ABS agency)			12,169				12,298				13,296				-1.0				-8.5
Corporate issued asset-backed securities (ABS corporate)			9,881				13,105				16,391				-24.6				-39.7
Corporate issued debt securities (Corporate debt)			43,339				55,760				54,058				-22.3				-19.8
U.S. Small Business Administration securities (SBA)			6,977				7,504				9,317				-7.0				-25.1
Mortgage-backed securities:
U.S. government agency issued mortgage-backed securities (MBS agency)			94,203				96,014				78,549				-1.9				19.9
Non-agency issued mortgage-backed securities (MBS non-agency)			36,418				41,510				57,886				-12.3				-37.1
Total securities available for sale		$	282,608			$	303,515			$	310,860				-6.9				-9.1

Net loans, excluding loans held for sale, decreased $39.4 million, or 2.4%, to $1.61 billion at September 30, 2025, from $1.65 billion at June 30, 2025, and decreased $106.6 million, or 6.2%, from $1.71 billion one year prior. Construction loans that converted into fully amortizing loans during the quarter totaled $2.4 million. Loan payoffs of $73.7 million, regular payments of $32.5 million and charge-offs totaling $2.2 million outpaced new loan funding totaling $40.9 million and draws on existing loans totaling $25.3 million.

Loans ($ in thousands)			September 30, 2025				June 30, 2025				September 30, 2024				Three Month % Change				One Year % Change
Real Estate:
One-to-four family		$	382,486			$	387,459			$	395,792				-1.3	%			-3.4	%
Multi-family			296,321				329,696				353,813				-10.1				-16.2
Commercial real estate			396,519				391,362				376,008				1.3				5.5
Construction and land			67,793				72,538				95,709				-6.5				-29.2
Total real estate loans			1,143,119				1,181,055				1,221,322				-3.2				-6.4
Consumer:
Home equity			86,629				84,927				76,960				2.0				12.6
Auto and other consumer			280,224				280,877				281,198				-0.2				-0.3
Total consumer loans			366,853				365,804				358,158				0.3				2.4
Commercial business			113,160				117,843				155,327				-4.0				-27.1
Total loans receivable			1,623,132				1,664,702				1,734,807				-2.5				-6.4
Less:
Derivative basis adjustment			(896	)			(860	)			(1,579	)			-4.2				43.3
Allowance for credit losses on loans			16,203				18,345				21,970				-11.7				-26.2
Total loans receivable, net		$	1,607,825			$	1,647,217			$	1,714,416				-2.4				-6.2

Other decreases to total assets during the quarter included a $4.1 million reduction in the balance of FHLB stock required to be held. Other assets decreased during the current quarter primarily due to the return of $9.1 million for a BOLI policy surrendered in the first quarter of 2025.

Total deposits decreased $1.3 million to $1.65 billion at September 30, 2025, compared to $1.65 billion at June 30, 2025, and decreased $58.3 million compared to $1.71 billion one year prior. During the third quarter of 2025, total customer deposit balances increased $1.3 million and brokered deposit balances decreased $2.6 million. The customer deposit mix continues to shift towards increased average balances of money market, savings and noninterest-bearing demand accounts while interest-bearing demand deposit and CD account average balances decreased. The deposit mix compared to September 30, 2024, reflects a shift in average balances to money market and customer CD accounts while the average balance of brokered CDs decreased. The rates paid on all interest-bearing accounts decreased compared to the same quarter one year ago.

Deposits ($ in thousands)			September 30, 2025				June 30, 2025				September 30, 2024				Three Month % Change				One Year % Change
Noninterest-bearing demand deposits		$	255,366			$	240,051			$	252,999				6.4	%			0.9	%
Interest-bearing demand deposits			146,373				144,409				167,202				1.4				-12.5
Money market accounts			475,614				484,787				433,307				-1.9				9.8
Savings accounts			232,831				227,968				212,763				2.1				9.4
Certificates of deposit, customer			438,780				450,494				441,665				-2.6				-0.7
Certificates of deposit, brokered			104,363				106,927				203,705				-2.4				-48.8
Total deposits		$	1,653,327			$	1,654,636			$	1,711,641				-0.1				-3.4

Total shareholders’ equity increased to $154.5 million at September 30, 2025, compared to $149.7 million three months earlier, due to an increase in the after-tax fair market values of the available-for-sale investment securities portfolio of $3.7 million and net income of $802,000. No shares of common stock were repurchased under the Company's April 2024 Stock Repurchase Plan (the "Repurchase Plan") during the quarter ended September 30, 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 September 30, 2025. Preliminary calculations of Common Equity Tier 1 and Total Risk-Based Capital Ratios at September 30, 2025, were 12.7% and 13.7%, 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

2024 Awards/Recognition
					Sound Publishing:
Puget Sound Business Journal Top Corporate Philanthropists					Best of the Olympic Peninsula Awards
Bellingham Best of the Northwest - Silver					Best Lender in Clallam and Jefferson County
The Leader Readers Choice Award - Best Bank					Best Bank 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
IRGroup@ourfirstfed.com
360-457-0461

FIRST NORTHWEST BANCORP AND SUBSIDIARY CONSOLIDATED BALANCE SHEETS (Dollars in thousands, except share data) (Unaudited)
		September 30, 2025				June 30, 2025				March 31, 2025				December 31, 2024				September 30, 2024
ASSETS
Cash and due from banks		$	15,688			$	18,487			$	18,911			$	16,811			$	17,953
Interest-earning deposits in banks			63,482				69,376				51,412				55,637				64,769
Investment securities available for sale, at fair value (amortized cost at each period end of $310,545, $336,206, $348,249, $376,265 and $341,011)			282,608				303,515				315,433				340,344				310,860
Loans held for sale			2,154				1,557				2,940				472				378
Loans receivable (net of allowance for credit losses on loans at each period end of $16,203, $18,345, $20,569, $20,449, and $21,970)			1,607,825				1,647,217				1,637,573				1,675,186				1,714,416
Federal Home Loan Bank (FHLB) stock, at cost			10,856				14,906				13,106				14,435				14,435
Accrued interest receivable			8,160				8,305				8,319				8,159				8,939
Premises and equipment, net			8,788				8,999				9,870				10,129				10,436
Servicing rights on sold loans, at fair value			3,093				3,220				3,301				3,281				3,584
Bank-owned life insurance ("BOLI"), net			41,889				41,380				31,786				41,150				41,429
Equity and partnership investments			15,048				14,811				15,026				13,229				14,912
Goodwill and other intangible assets, net			1,080				1,081				1,082				1,082				1,083
Deferred tax asset, net			14,168				14,266				14,304				13,738				10,802
Right-of-use ("ROU") asset, net			15,494				15,772				16,687				17,001				17,315
Prepaid expenses and other assets			21,040				32,471				31,680				21,352				24,175
Total assets		$	2,111,373			$	2,195,363			$	2,171,430			$	2,232,006			$	2,255,486
LIABILITIES AND SHAREHOLDERS' EQUITY
Deposits		$	1,653,327			$	1,654,636			$	1,666,068			$	1,688,026			$	1,711,641
Borrowings			259,625				344,108				307,091				336,014				334,994
Accrued interest payable			1,145				1,514				2,163				3,295				2,153
Lease liability, net			16,071				16,257				17,266				17,535				17,799
Accrued expenses and other liabilities			24,321				27,790				29,767				31,770				25,625
Advances from borrowers for taxes and insurance			2,356				1,325				2,583				1,484				2,485
Total liabilities			1,956,845				2,045,630				2,024,938				2,078,124				2,094,697
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: 9,462,150; 9,444,963; 9,440,618; 9,353,348; and 9,365,979			94				94				94				93				94
Additional paid-in capital			93,646				93,595				93,450				93,357				93,218
Retained earnings			91,317				90,506				87,506				97,198				100,660
Accumulated other comprehensive loss, net of tax			(24,429	)			(28,198	)			(28,129	)			(30,172	)			(26,424	)
Unearned employee stock ownership plan (ESOP) shares			(6,100	)			(6,264	)			(6,429	)			(6,594	)			(6,759	)
Total shareholders' equity			154,528				149,733				146,492				153,882				160,789
Total liabilities and shareholders' equity		$	2,111,373			$	2,195,363			$	2,171,430			$	2,232,006			$	2,255,486

8

FIRST NORTHWEST BANCORP AND SUBSIDIARY CONSOLIDATED STATEMENTS OF OPERATIONS (Dollars in thousands, except per share data) (Unaudited)
		For the Quarter Ended																				For the Nine Months Ended
		September 30, 2025				June 30, 2025				March 31, 2025				December 31, 2024				September 30, 2024				September 30, 2025				September 30, 2024
INTEREST INCOME
Interest and fees on loans receivable		$	22,814			$	22,814			$	22,231			$	23,716			$	23,536			$	67,859			$	70,036
Interest on investment securities			3,244				3,466				3,803				3,658				3,786				10,513				11,367
Interest on deposits in banks			570				520				482				550				582				1,572				1,798
FHLB dividends			282				331				307				273				302				920				942
Total interest income			26,910				27,131				26,823				28,197				28,206				80,864				84,143
INTEREST EXPENSE
Deposits			9,083				9,552				9,737				11,175				10,960				28,372				31,252
Borrowings			3,258				3,386				3,239				2,885				3,226				9,883				10,708
Total interest expense			12,341				12,938				12,976				14,060				14,186				38,255				41,960
Net interest income			14,569				14,193				13,847				14,137				14,020				42,609				42,183
PROVISION FOR CREDIT LOSSES
(Recapture of) provision for credit losses on loans			(620	)			(296	)			7,770				3,760				3,077				6,854				12,956
(Recapture of) provision for credit losses on unfunded commitments			(53	)			(64	)			15				(105	)			57				(102	)			(113	)
(Recapture of) provision for credit losses			(673	)			(360	)			7,785				3,655				3,134				6,752				12,843
Net interest income after (recapture of) provision for credit losses			15,242				14,553				6,062				10,482				10,886				35,857				29,340
NONINTEREST INCOME
Loan and deposit service fees			1,114				1,095				1,106				1,054				1,059				3,315				3,237
Sold loan servicing fees and servicing rights mark-to-market			85				92				195				(115	)			10				372				303
Net (loss) gain on sale of loans			(39	)			44				11				52				58				16				260
Increase in BOLI cash surrender value			539				485				372				328				315				1,396				851
Income from BOLI death benefit, net			—				—				1,059				1,536				—				1,059				—
Other income (loss)			303				454				1,034				(1,555	)			337				1,791				861
Total noninterest income			2,002				2,170				3,777				1,300				1,779				7,949				11,314
NONINTEREST EXPENSE
Compensation and benefits			8,353				4,698				7,715				7,367				8,582				20,766				25,298
Data processing			1,941				1,926				2,011				2,065				2,085				5,878				6,037
Occupancy and equipment			1,505				1,507				1,592				1,559				1,553				4,604				4,592
Supplies, postage, and telephone			344				346				298				296				360				988				970
Regulatory assessments and state taxes			558				501				479				460				548				1,538				1,518
Advertising			282				299				265				362				409				846				1,095
Professional fees			2,668				1,449				777				813				698				4,894				2,292
FDIC insurance premium			411				463				434				491				533				1,308				1,392
Other expense			1,328				1,576				6,429				820				1,080				9,333				2,566
Total noninterest expense			17,390				12,765				20,000				14,233				15,848				50,155				45,760
(Loss) income before (benefit) provision for income taxes			(146	)			3,958				(10,161	)			(2,451	)			(3,183	)			(6,349	)			(5,106	)
(Benefit) provision for income taxes			(948	)			297				(1,125	)			359				(1,203	)			(1,776	)			(1,303	)
Net income (loss)		$	802			$	3,661			$	(9,036	)		$	(2,810	)		$	(1,980	)		$	(4,573	)		$	(3,803	)
Basic and diluted earnings (loss) per common share		$	0.09			$	0.42			$	(1.03	)		$	(0.32	)		$	(0.23	)		$	(0.52	)		$	(0.43	)

FIRST NORTHWEST BANCORP AND SUBSIDIARY ADDITIONAL INFORMATION (Dollars in thousands) (Unaudited)
Selected Loan Detail		September 30, 2025				June 30, 2025				March 31, 2025				December 31, 2024				September 30, 2024
Construction and land loans breakout
1-4 Family construction		$	29,961			$	39,040			$	42,371			$	39,319			$	43,125
Multifamily construction			15,660				14,728				9,223				15,407				29,109
Nonresidential construction			16,484				12,832				7,229				16,857				17,500
Land and development			5,688				5,938				6,054				6,527				5,975
Total construction and land loans		$	67,793			$	72,538			$	64,877			$	78,110			$	95,709
Auto and other consumer loans breakout
Triad Manufactured Home loans		$	133,425			$	135,537			$	134,740			$	128,231			$	129,600
Woodside auto loans			131,800				127,828				118,972				117,968				126,129
First Help auto loans			9,561				11,221				13,012				14,283				15,971
Other auto loans			767				1,016				1,313				1,647				2,064
Other consumer loans			4,671				5,275				5,841				6,747				7,434
Total auto and other consumer loans		$	280,224			$	280,877			$	273,878			$	268,876			$	281,198
Commercial business loans breakout
Northpointe Bank MPP		$	-			$	-			$	-			$	36,230			$	38,155
Secured lines of credit			43,081				41,043				39,986				35,701				37,686
Unsecured lines of credit			2,580				2,551				2,030				1,717				1,571
SBA loans			6,347				6,618				6,889				7,044				7,219
Other commercial business loans			61,152				67,631				70,878				70,801				70,696
Total commercial business loans		$	113,160			$	117,843			$	119,783			$	151,493			$	155,327

Loans by Collateral and Unfunded Commitments		September 30, 2025				June 30, 2025				March 31, 2025				December 31, 2024				September 30, 2024
One-to-four family construction		$	31,627			$	40,509			$	38,221			$	44,468			$	51,607
All other construction and land			36,161				36,129				30,947				34,290				45,166
One-to-four family first mortgage			415,670				420,847				428,081				466,046				469,053
One-to-four family junior liens			20,568				20,116				15,155				15,090				14,701
One-to-four family revolving open-end			58,486				57,502				51,832				51,481				48,459
Commercial real estate, owner occupied:
Health care			28,794				29,091				29,386				29,129				29,407
Office			18,499				19,116				19,363				17,756				17,901
Warehouse			7,684				7,432				9,272				14,948				11,645
Other			73,562				74,364				74,915				78,170				64,535
Commercial real estate, non-owner occupied:
Office			40,917				42,198				41,885				49,417				49,770
Retail			50,839				51,708				50,737				49,591				49,717
Hospitality			63,953				64,308				62,226				61,919				62,282
Other			106,991				93,505				93,549				81,640				82,573
Multi-family residential			297,379				330,784				339,217				333,419				354,118
Commercial business loans			68,062				73,403				75,628				77,381				86,904
Commercial agriculture and fishing loans			23,346				22,443				22,914				21,833				15,369
State and political subdivision obligations			369				369				369				369				404
Consumer automobile loans			142,064				139,992				133,209				133,789				144,036
Consumer loans secured by other assets			136,073				138,378				137,619				131,429				132,749
Consumer loans unsecured			2,088				2,508				3,051				3,658				4,411
Total loans		$	1,623,132			$	1,664,702			$	1,657,576			$	1,695,823			$	1,734,807
Unfunded commitments under lines of credit or existing loans		$	158,118			$	166,589			$	175,100			$	163,827			$	166,446

FIRST NORTHWEST BANCORP AND SUBSIDIARY NET INTEREST MARGIN ANALYSIS (Dollars in thousands) (Unaudited)
		Three Months Ended September 30,
		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)		$	1,632,684			$	22,814				5.54	%		$	1,699,302			$	23,536				5.51	%
Total investment securities			293,723				3,244				4.38				307,623				3,786				4.90
FHLB dividends			12,810				282				8.73				12,697				302				9.46
Interest-earning deposits in banks			50,150				570				4.51				42,348				582				5.47
Total interest-earning assets (3)			1,989,367				26,910				5.37				2,061,970				28,206				5.44
Noninterest-earning assets			146,042												147,363
Total average assets		$	2,135,409											$	2,209,333
Interest-bearing liabilities:
Interest-bearing demand deposits		$	141,469			$	52				0.15			$	166,846			$	187				0.45
Money market accounts			464,265				2,832				2.42				431,346				2,875				2.65
Savings accounts			231,431				914				1.57				224,159				923				1.64
Certificates of deposit, customer			443,312				4,175				3.74				415,450				4,340				4.16
Certificates of deposit, brokered			103,959				1,110				4.24				215,016				2,635				4.88
Total interest-bearing deposits (4)			1,384,436				9,083				2.60				1,452,817				10,960				3.00
Advances			265,554				2,913				4.35				255,348				2,832				4.41
Subordinated debt			34,617				345				3.95				39,484				394				3.97
Total interest-bearing liabilities			1,684,607				12,341				2.91				1,747,649				14,186				3.23
Noninterest-bearing deposits (4)			251,448												252,911
Other noninterest-bearing liabilities			47,978												48,294
Total average liabilities			1,984,033												2,048,854
Average equity			151,376												160,479
Total average liabilities and equity		$	2,135,409											$	2,209,333
Net interest income						$	14,569											$	14,020
Net interest rate spread											2.46												2.21
Net earning assets		$	304,760											$	314,321
Net interest margin (5)											2.91												2.70
Average interest-earning assets to average interest-bearing liabilities			118.1	%											118.0	%

(1) The average loans receivable, net balances include nonaccrual loans.
(2) Interest earned on loans receivable includes net deferred (costs) fees of ($410,000) and $22,000 for the three months ended September 30, 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 2.20% and 2.56% for the three months ended September 30, 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 Nine Months Ended
(Dollars in thousands)		September 30, 2025				June 30, 2025				March 31, 2025				December 31, 2024				September 30, 2024				September 30, 2025				September 30, 2024
Net income (loss) (GAAP)		$	802			$	3,661			$	(9,036	)		$	(2,810	)		$	(1,980	)		$	(4,573	)		$	(3,803	)
Plus: (recapture of) provision for credit losses (GAAP)			(673	)			(360	)			7,785				3,655				3,134				6,752				12,843
(Benefit) provision for income taxes (GAAP)			(948	)			297				(1,125	)			359				(1,203	)			(1,776	)			(1,303	)
PPNR (Non-GAAP) (1)			(819	)			3,598				(2,376	)			1,204				(49	)			403				7,737
Less selected nonrecurring adjustments to PPNR (Non-GAAP):
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				—
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	)			—				—				651
One-time compensation payouts related to reduction in force			—				—				—				—				(996	)			—				(996	)
Net gain on sale of premises and equipment			—				—				—				—				—				—				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)		$	340			$	2,085			$	1,469			$	1,430			$	947			$	3,894			$	2,639
Average total assets (GAAP)		$	2,135,409			$	2,164,579			$	2,174,748			$	2,205,502			$	2,209,333			$	2,158,091			$	2,198,337
GAAP Ratio:
Return on average assets (GAAP)			0.15	%			0.68	%			-1.69	%			-0.51	%			-0.36	%			-0.28	%			-0.23	%
Non-GAAP Ratios:
PPNR return on average assets (Non-GAAP) (1)			-0.15	%			0.67	%			-0.44	%			0.22	%			-0.01	%			0.02	%			0.47	%
Adjusted PPNR return on average assets (Non-GAAP) (1)			0.06	%			0.39	%			0.27	%			0.26	%			0.17	%			0.24	%			0.16	%

(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 Nine Months Ended
(Dollars in thousands, except per share data)		September 30, 2025				June 30, 2025				March 31, 2025				December 31, 2024				September 30, 2024				September 30, 2025				September 30, 2024
Total shareholders' equity		$	154,528			$	149,733			$	146,492			$	153,882			$	160,789			$	154,528			$	160,789
Less: Goodwill and other intangible assets			1,080				1,081				1,082				1,082				1,083				1,080				1,083
Disallowed non-mortgage loan servicing rights			317				372				415				423				489				317				489
Total tangible common equity		$	153,131			$	148,280			$	144,995			$	152,377			$	159,217			$	153,131			$	159,217
Total assets		$	2,111,373			$	2,195,363			$	2,171,430			$	2,232,006			$	2,255,486			$	2,111,373			$	2,255,486
Less: Goodwill and other intangible assets			1,080				1,081				1,082				1,082				1,083				1,080				1,083
Disallowed non-mortgage loan servicing rights			317				372				415				423				489				317				489
Total tangible assets		$	2,109,976			$	2,193,910			$	2,169,933			$	2,230,501			$	2,253,914			$	2,109,976			$	2,253,914
Average shareholders' equity		$	151,376			$	146,857			$	156,470			$	161,560			$	160,479			$	151,538			$	161,803
Less: Average goodwill and other intangible assets			1,081				1,081				1,082				1,083				1,084				1,081				1,085
Average disallowed non-mortgage loan servicing rights			371				415				423				489				517				403				496
Total average tangible common equity		$	149,924			$	145,361			$	154,965			$	159,988			$	158,878			$	150,054			$	160,222
Net income (loss)		$	802			$	3,661			$	(9,036	)		$	(2,810	)		$	(1,980	)		$	(4,573	)		$	(3,803	)
Common shares outstanding			9,462,150				9,444,963				9,440,618				9,353,348				9,365,979				9,462,150				9,365,979
GAAP Ratios:
Equity to total assets			7.32	%			6.82	%			6.75	%			6.89	%			7.13	%			7.32	%			7.13	%
Return on average equity			2.10	%			10.00	%			-23.42	%			-6.92	%			-4.91	%			-4.03	%			-3.14	%
Book value per common share		$	16.33			$	15.85			$	15.52			$	16.45			$	17.17			$	16.33			$	17.17
Non-GAAP Ratios:
Tangible common equity to tangible assets (1)			7.26	%			6.76	%			6.68	%			6.83	%			7.06	%			7.26	%			7.06	%
Return on average tangible common equity (1)			2.12	%			10.10	%			-23.65	%			-6.99	%			-4.96	%			-4.07	%			-3.17	%
Tangible book value per common share (1)		$	16.18			$	15.70			$	15.36			$	16.29			$	17.00			$	16.18			$	17.00

(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/ec579098-745c-484e-875a-7badda595e77

https://www.globenewswire.com/NewsRoom/AttachmentNg/ca5bcf4c-52db-4392-9cdc-f7333c018c22 

https://www.globenewswire.com/NewsRoom/AttachmentNg/0913d4ab-50e2-41b4-a1fe-d43d85e0f4d7

https://www.globenewswire.com/NewsRoom/AttachmentNg/3132ac7b-cc0d-4e0d-b744-a417ff214939

https://www.globenewswire.com/NewsRoom/AttachmentNg/d2166982-bb18-44c8-b2d8-0d40b9869770

https://www.globenewswire.com/NewsRoom/AttachmentNg/ddb5106b-5143-4a27-a9f2-f58276fc70ec

https://www.globenewswire.com/NewsRoom/AttachmentNg/f9de5be9-4a05-4fb5-8431-54a8c730b9f3

https://www.globenewswire.com/NewsRoom/AttachmentNg/595dcf62-1c3a-4f14-a3ba-9461d66f8deb

https://www.globenewswire.com/NewsRoom/AttachmentNg/c7698dc4-85d4-4d1a-bba4-94991cce5aad

https://www.globenewswire.com/NewsRoom/AttachmentNg/4d8cabf9-b6f5-4d87-bcf4-af6398e4081

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