First Northwest Bancorp (FNWB) Q4 2024 earnings summary

Executive summary

• Reported net loss of $2.8 million for Q4 2024, compared to $2.0 million loss in Q3 2024 and $5.5 million loss in Q4 2023; EPS of $(0.32) for Q4 2024.

• Adjusted pre-tax, pre-provision net revenue (PPNR) was $1.2 million, up from a $49,000 loss in Q3 2024 and $327,000 in Q4 2023.

• Board declared a $0.07 per share quarterly dividend, payable February 28, 2025.

• 2024 highlights include termination of FDIC Consent Order, reduced core operating expenses, and improved liquidity with loan-to-deposit ratio below 100% at year-end.

Financial highlights

• Net interest income was $14.1 million in Q4 2024, nearly flat sequentially, and down from $14.2 million in Q4 2023.

• Total revenue for Q4 2024 was $15.4 million, down from $15.8 million in Q3 2024, but up from $11.3 million in Q4 2023.

• Noninterest income included a $1.8 million write-down on an equity investment and a $1.5 million BOLI death benefit.

• Noninterest expense decreased to $14.2 million, mainly due to lower compensation and reduced discretionary spending.

• Provision for credit losses on loans was $3.8 million, up from $3.1 million in Q3 2024 and $1.2 million in Q4 2023.

Outlook and guidance

• Management expects continued improvement in asset quality in early 2025 and is focused on resolving problem assets, growing core relationships, and maintaining strong capital.

• Bank expects to maintain a positive carry on its derivative hedge for up to an additional 25-basis points of rate cuts.

• Remaining BOLI surrender transaction expected to complete in Q1 2025.