First Northwest Bancorp stock reports $743,000 Q3 loss

Published on 11/03/2026 at 00:23 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

First Northwest Bancorp stock faces higher credit costs and a legal-settlement charge. Deposits rose while loans declined during the quarter.

Quarterly loss meets balance-sheet progress

Net interest margin improved to 2.96% from 2.95% in the second quarter.
Customer deposits increased while total loans declined during the quarter.
Management cited strategic initiatives and a stable capital position as foundations for improved profitability.

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First Northwest Bancorp reported a third-quarter net loss on Thursday, October 29, 2026, as higher credit-loss provisions and a previously disclosed legal settlement weighed on earnings. The company's earnings release published by GlobeNewswire covered the quarter and nine months ended September 30, 2026.

Credit costs weigh on quarterly earnings

Net loss reached 743,000 US dollars, compared with net income of 308,000 US dollars in the second quarter and 802,000 US dollars a year earlier. Basic and diluted loss per share was 0.08 US dollars, versus earnings per share of 0.03 US dollars in the prior quarter and 0.09 US dollars in the third quarter of 2025.

The provision for credit losses was 0.7 million US dollars, compared with a 0.5 million US dollar benefit in the second quarter. Noninterest expense rose to 17.3 million US dollars, including a nonrecurring 1.3 million US dollar expense related to the settlement of litigation disclosed earlier in 2026.

Deposits grow as loans contract

Customer deposits increased by 27.0 million US dollars during the quarter to 1.63 billion US dollars, while total loans declined to 1.59 billion US dollars from 1.61 billion US dollars at June 30. Securities available for sale increased to 310 million US dollars, helping lift total assets to 2.14 billion US dollars.

Net interest income was 14.3 million US dollars, compared with 14.2 million US dollars in the second quarter and 14.6 million US dollars a year earlier. Net interest margin improved to 2.96% from 2.95% sequentially and 2.91% in the third quarter of 2025.

Management points to operating initiatives

Chief Executive Officer Curt Queyrouze said stable net interest income, margin expansion and customer-deposit growth reflected progress in the funding mix and balance sheet. Management also cited declining nonperforming loans, improved allowance coverage, stable capital and strategic and operational initiatives intended to support future profitability.

Regional banking model

First Northwest Bancorp is a financial holding company whose subsidiary, First Fed Bank, serves individuals, small businesses, nonprofit organizations and commercial customers in the Pacific Northwest. First Fed operates 16 locations in Washington state, including 11 full-service branches. The company is headquartered in Port Angeles, Washington, and also invests in partnerships focused on digital payments, marketplace lending and other financial services, according to its corporate profile.