First Northwest Bancorp (FNWB) posted first‑quarter 2026 results on April 29, 2026, reporting a net income of $6,000, a dramatic turnaround from the $9.0 million loss it posted in the first quarter of 2025. Basic and diluted earnings per share were $0.00, compared with $0.04 in the fourth quarter of 2025 and a loss of $1.03 in the first quarter of 2025. The company’s revenue of $16.45 million fell short of the $17.15 million consensus estimate, and the EPS miss of $0.04 reflects the narrow profitability margin.
Net interest income declined to $25.3 million, a drop of $803,000 from the $26.1 million reported in Q4 2025, but the net interest margin expanded to 3.03% from 3.00% in the prior quarter and 2.76% in Q1 2025. The margin improvement is the sixth consecutive quarterly gain and is driven by a lower cost of funds and a shift away from higher‑cost brokered deposits toward core customer deposits.
Total deposits increased by $24.9 million to $1.54 billion at March 31 2026, up from $1.51 billion at December 31 2025. Brokered deposits fell by $22.4 million to $64.1 million, reflecting the bank’s strategic move to a more stable funding base. The cost of funds fell 4 basis points to 2.37%, while the cost of deposits dropped to 2.04% from 2.12% in Q4 2025.
Management emphasized disciplined balance‑sheet management and operating‑efficiency initiatives, noting that the shift in deposit mix and lower funding costs are expected to lift profitability in the second half of 2026. Analysts had projected EPS of $0.04 and revenue of $17.15 million; the company missed both estimates, underscoring the tight margin environment.
While the near break‑even earnings signal progress from the prior‑year loss, the bank still faces challenges in scaling profitability. The continued expansion of the net interest margin and the move toward core deposits suggest a focus on long‑term financial health, but the modest earnings and revenue miss indicate that the company must sustain cost discipline and deposit growth to achieve meaningful profitability gains.
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