First Northwest Bancorp Announces Fourth Quarter 2025 Results

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
IRGroup@ourfirstfed.com
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

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