First Northwest Bancorp (FNWB) Q4 2025 earnings summary

Executive summary

• Net interest margin increased 9 bps sequentially to 3.00% in Q4 2025, driven by lower deposit costs and repricing benefits.

• Net income for Q4 2025 was $382,000, down from $843,000 in Q3 2025 but improved from a loss in Q4 2024; EPS was $0.04, down from $0.09 in Q3 2025.

• Management is focused on efficiency, strengthening core deposits, and high-quality loan growth for 2026.

• Legal expenses declined by $922,000 quarter-over-quarter, aided by a $1.7 million insurance reimbursement related to legal matters.

• $681,000 in expenses were recorded for an upcoming Bellevue branch closure in April 2026, expected to reduce annual operating expenses by $900,000.

Financial highlights

• Net interest income for Q4 2025 was $14.7 million, up from $14.6 million in Q3 2025 and $14.1 million in Q4 2024.

• Total interest income decreased to $26.1 million from $26.9 million in Q3 2025 and $28.2 million in Q4 2024.

• Total interest expense fell to $11.5 million from $12.3 million in Q3 2025 and $14.1 million in Q4 2024.

• Noninterest income increased by $1.7 million to $3.7 million, mainly due to a $1.7 million insurance reimbursement.

• Noninterest expense decreased by $488,000 to $16.9 million, with lower legal fees partially offset by branch closure costs.

Outlook and guidance

• $450.8 million of time deposits are set to reprice in the next 12 months, with expected interest expense savings of $821,000 if current rates hold.

• Strategic focus for 2026 includes building a resilient core deposit base, growing high-quality loans, and improving process efficiency.