First Northwest Posts $743,000 Third-Quarter Loss After Earlier Profits

Key Facts

First Northwest Bancorp reported a net loss of $743,000 in the third quarter of 2026, compared with net income of $308,000 in the previous quarter and $802,000 in the same period of 2025, according to its earnings release published on October 29. Basic and diluted loss per share was $0.08, compared with earnings per share of $0.03 in the second quarter and $0.09 a year earlier. Chief Executive Kurt Queiroz said the results were affected by higher credit-loss provisions and the settlement of a previously disclosed legal matter. He also pointed to a decline in nonperforming loans and improved allowance coverage. The stock closed at $10.32 on October 28, according to EL7 data.

The return to a loss followed a stronger first half: the company reported net income of $0.6 million for the six months ended June 30, 2026, compared with a net loss of $5.4 million in the same period of 2025, according to its filing with the U.S. Securities and Exchange Commission. On a quarterly basis, earnings fell from $308,000 in the second quarter to a loss of $743,000 in the third quarter. The result also reversed from the third quarter of last year, when the company earned $802,000. These comparisons reflect mixed performance in recent periods, with the quarter ended in September turning from profit to loss. The $0.08 loss per share was below analysts' estimate of earnings of $0.02 per share, according to Investing.com.

In its core banking business, net interest income was $14.3 million in the third quarter, up from $14.2 million in the second quarter but below $14.6 million in the same period of 2025. The net interest margin widened to 2.96% from 2.95% in the previous quarter and 2.91% a year earlier. Queiroz said the company was seeing “continued momentum in its core banking business during the third quarter, including stable net interest income, modest expansion in the net interest margin and growth in customer deposits.” Meanwhile, Investing.com reported quarterly revenue of $16.49 million, compared with an average estimate of $16.55 million. That figure differs from net interest income, a separate measure reported by the company at $14.3 million.

Customer deposits increased $27.0 million during the quarter to $1.63 billion on September 30, compared with $1.61 billion on June 30, according to the company’s release. On asset quality, nonperforming loans fell $842,000 to $19.9 million at the end of September, from $20.7 million at the end of June. The allowance coverage ratio for nonperforming loans rose to 82% from 79% over the same period. Queiroz said nonperforming loans had declined and allowance coverage had improved, while reported results remained under pressure from credit-loss provisions. Deposit growth and fewer nonperforming loans paint a more positive operating picture than the quarterly bottom line, without changing the fact that the company recorded a loss.

The company said First Fed remained well capitalized in the current quarter, with a preliminary total risk-based capital ratio of 13.3% on September 30, 2026. In the market, Investing.com reported that the stock fell 9.95% in the three months ended October 29, but rose 11.78% over 12 months. The closing price on October 28 was $10.32, according to EL7 and Investing.com data. The company cautioned in its release that actual future results could differ materially from the forward-looking statements it contained. It added that it undertook no obligation to revise those statements unless required by law.