First Northwest Bancorp Posts Q1 Profit of $6,000 as Net Interest Margin Hits 3.03%
First Northwest Bancorp reported Q1 net income of $6,000, down from $382,000 in Q4 2025 and versus a $9.0 million loss year-over-year, with EPS flat at $0.00. Net interest margin rose to 3.03% while cost of deposits fell to 2.04%, customer deposits grew $24.9 million and brokered deposits tumbled 25.9%.
1. First Quarter Financial Results
First Northwest Bancorp generated net income of $6,000 in Q1 2026 with basic and diluted EPS of $0.00, compared to $382,000 and $0.04 EPS in Q4 2025 and a $9.0 million net loss with $1.03 loss per share in Q1 2025.
2. Margin Expansion and Funding Costs
The net interest margin expanded for the sixth consecutive quarter to 3.03% as interest expense on deposits fell; total interest income dipped $803,000 to $25.3 million while interest expense declined $553,000 to $10.9 million.
3. Balance Sheet Trends
Loans receivable rose by $951,000 to $1.61 billion and customer deposits increased by $24.9 million to $1.54 billion, while higher-cost brokered deposits decreased 25.9% to $64.1 million and FHLB advances climbed $20.0 million.
4. Management Outlook and Legal Proceedings
Management is executing a transformation to improve efficiency and balance sheet positioning, expecting performance gains in the second half; the company is also engaged in legal proceedings including the Socotra REIT discovery phase and upcoming motions to dismiss.