First Northwest Bancorp stock swings to Q3 loss after settlement

Published on 11/10/2026 at 00:30 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

First Northwest Bancorp stock faces a quarterly loss after a legal settlement and higher credit costs. Deposits grew as loans contracted.

Quarterly loss and balance-sheet trends

Customer deposits increased by USD 27.0 million during the third quarter, while total loans declined 1.2 percent from June 30.
Net interest margin improved to 2.96 percent, but the bank remained exposed to credit-quality and funding-cost risks.
First Fed operates 16 Washington locations and serves consumers, small businesses, nonprofits and commercial customers.

FNWB, US3358341077, Illustration mit AI erstellt.

First Northwest Bancorp reported a net loss of USD 743,000 for the third quarter ended September 30, 2026, reversing net income of USD 308,000 in the second quarter and USD 802,000 a year earlier. The financial results were released on October 29, 2026, and published by Yahoo Finance from a GlobeNewswire release.

Settlement charge weighs on earnings

Basic and diluted loss per share was USD 0.08, compared with earnings per share of USD 0.03 in the second quarter and USD 0.09 in the third quarter of 2025. Management said the quarter was affected by a higher provision for credit losses and the settlement of a previously disclosed legal matter.

Noninterest expense rose to USD 17.3 million from USD 16.4 million in the preceding quarter. The increase primarily reflected a nonrecurring USD 1.3 million litigation-settlement expense. The provision for credit losses was USD 0.7 million, compared with a USD 0.5 million recovery in the second quarter.

Deposits rise while loans decline

Customer deposits increased by USD 27.0 million during the quarter, helping improve the funding mix. Total deposits reached USD 1.63 billion at September 30, while total loans declined 1.2 percent from June 30 to USD 1.59 billion.

Net interest income rose to USD 14.3 million from USD 14.2 million in the second quarter but remained below USD 14.6 million a year earlier. The net interest margin improved to 2.96 percent from 2.95 percent in the second quarter and 2.91 percent a year earlier. Nonperforming loans declined to USD 19.9 million, while the allowance for credit losses increased to 1.03 percent of total loans.

First Northwest Bancorp business profile

First Northwest Bancorp is a financial holding company whose subsidiary, First Fed Bank, provides banking products and services to individuals, small businesses, nonprofit organizations and commercial customers. The company also invests in partnerships focused on digital payments, marketplace lending and other financial services. First Fed is based in the Pacific Northwest, operates 16 locations in Washington state and is headquartered in Port Angeles, Washington, according to the company's corporate profile.