First Northwest Bancorp Q2 2026: Net Income Reaches $308K as NIM Compresses to 2.95%
FNWB sits 79% above its 52-week low of $6.9 on light trading volume (0.2× avg).
Summary
First Northwest Bancorp posted Q2 2026 net income of $308,000 ($0.03 EPS), saw its net interest margin decline to 2.95%, and reported improving credit quality. Management expects profitability to improve in the second half of 2026.
Key Events · Earnings and Guidance · FNWB
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Q2 Net Income of $308K
Net income came in at $308,000 ($0.03 per share), compared to $6,000 in Q1 2026 and $3.7 million in Q2 2025. Revenue was flat sequentially at $16.2 million.
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Net Interest Margin Compresses
Driven by higher funding costs, the net interest margin declined to 2.95% from 3.03% in Q1 2026, though deposit costs remained flat at 2.04%.
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Credit Quality Improves
Nonperforming assets fell to 1.05% of total assets from 1.08% in Q1 2026. A $337,000 recapture of provision for credit losses was recorded, and classified loans decreased $9.1 million to $25.5 million.
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Balance Sheet Repositioning Continues
Customer deposits grew $11.3 million while brokered deposits declined $5.5 million. Loans decreased 1% to $1.60 billion as the bank reduces commercial real estate exposure.
Analysis · FNWB · Finance
A modest profit of $308,000 in Q2 2026 marks a sharp turnaround from the near-breakeven prior quarter, though it remains well below the $3.7M earned a year ago. The net interest margin compressed 8 basis points sequentially to 2.95% as funding costs rose, even while deposit costs held flat. Credit trends improved, with nonperforming assets declining and a $337K provision recapture. Management signaled that efficiency initiatives should begin boosting profitability in late 2026, but the path remains gradual. The stock trades near its 52-week high, suggesting the market has already priced in a recovery narrative.
How filings like this one have moved
In the 30 days to Oct 1, 2026, 30.2% of the 1645 measured filings Wiseek scored 7 moved their stock by 5% or more by the next session's close. The median move was -0.49%. These are measured outcomes after filings of this importance, not a forecast for this one.
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At the time of this filing, FNWB was trading at $12.35 on NASDAQ in the Finance sector, with a market capitalization of approximately $117.3M. The 52-week trading range was $6.90 to $12.52. This filing was assessed with neutral market sentiment and an importance score of 7 out of 10.