- First Northwest Bancorp (FNWB, Financial) reported net income of $1.5 million for Q1 2025, recovering from a $2.8 million loss in Q4 2024.
- The company experienced a favorable shift in deposit mix, with a $45.0 million reduction in brokered deposits and a $23.0 million increase in core customer deposits.
- Earnings per share improved to $0.17, with a declared cash dividend of $0.07 per share, payable on May 23, 2025.
First Northwest Bancorp (FNWB) has showcased a strong financial performance for the first quarter of 2025, achieving net income of $1.5 million. This marks a significant turnaround from the $2.8 million net loss recorded in the previous quarter and an improvement over the $396,000 net income in Q1 2024.
The earnings per share (EPS) for the quarter surged to $0.17, a sharp increase from the -$0.32 recorded in Q4 2024. This robust financial recovery has been supported by strategic management decisions and improved market conditions.
One of the key highlights of FNWB's quarterly performance was a strategic shift in its deposit structure. The company successfully reduced brokered deposits by $45.0 million while enhancing its core customer deposit base by $23.0 million, supporting a more stable funding platform. This adjustment contributed to a decrease in the total cost of funds to 2.67% from 2.80% in Q4 2024.
The company reported a $1.6 million provision for credit losses, primarily due to $1.4 million in loan charge-offs. However, FNWB recorded significant gains, including a $1.1 million benefit from bank-owned life insurance (BOLI), an $846,000 gain from debt extinguishment, and a $315,000 gain from converting a loan into an equity investment.
FNWB's Board of Directors has declared a quarterly cash dividend of $0.07 per share, reflecting the company's commitment to returning value to its shareholders. This will be payable on May 23, 2025, to shareholders of record as of May 9, 2025.
The company's efforts to resolve troubled loans and improve asset quality are evident in the 14% reduction in nonperforming loans from the previous quarter. Despite these challenges, FNWB remains optimistic about continued asset quality improvement and profitability in the coming quarters.
