First Northwest Bancorp (FNWB) posted a net income of $802,000 for the third quarter of 2025, translating to basic and diluted earnings per share of $0.09. The result represents a turnaround from the $3.7 million net income and $0.42 EPS reported in the second quarter, and a reversal of the $0.23 loss per share recorded in the third quarter of 2024. Net interest income remained steady at $13.8 million, while non‑interest income rose 72.6% to $3.8 million, driven by a $1.1 million BOLI death benefit and a gain on debt extinguishment.
The quarter saw a significant improvement in credit quality: the allowance for credit losses fell to $16.2 million, down from $18.4 million at the end of June, and non‑performing loans dropped to $13.4 million from $20.4 million. Charge‑offs of $1.5 million and a sale of a commercial construction loan contributed to the reduction, while the bank’s ACLL to non‑performing loan ratio rose to 121% from 90%. These changes indicate a healthier loan portfolio and lower provisioning needs for the coming periods.
On the balance‑sheet front, total deposits were $1.65 billion, unchanged from June, and shareholders’ equity increased to $154.5 million, supported by a $3.7 million fair‑value gain on available‑for‑sale securities. Capital ratios remained robust, with Common Equity Tier 1 at 12.7% and Total Risk‑Based Capital at 13.7%, keeping the bank well‑capitalized and well‑above regulatory thresholds. No dividend was declared for the quarter, reflecting the board’s focus on capital preservation and future growth.
CEO Curt Queyrouze emphasized the company’s commitment to building a modern, forward‑thinking institution. He highlighted the progress in positioning First Fed to meet evolving customer needs and reiterated the board’s prudent approach to capital management. The announcement signals a continued emphasis on strengthening credit quality, maintaining solid capital, and investing in digital capabilities to support long‑term value creation.
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