First Northwest Bancorp Returns to Profitability in Q1 2026, Driven by Reduced Credit Losses
FNWB sits 65% above its 52-week low of $6.05 on light trading volume (0.4× avg).
Summary
First Northwest Bancorp reported a net income of $6,000 for Q1 2026, a substantial improvement from a $9.0 million net loss in Q1 2025, primarily due to a significant reduction in credit loss provisions.
Key Events · Earnings and Guidance · FNWB
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Return to Profitability
Reported a net income of $6,000 for Q1 2026, a significant improvement from a net loss of $9.036 million in Q1 2025.
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Reduced Credit Loss Provision
The provision for credit losses dramatically decreased to $78,000 in Q1 2026, including a $13,000 loan loss recapture, compared to a $7.785 million provision in Q1 2025.
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Improved Asset Quality
Nonperforming loans decreased by $896,000 to $21.7 million at March 31, 2026, from $22.6 million at December 31, 2025, and the Allowance for Credit Losses on Loans (ACLL) slightly decreased to $16.8 million.
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Stable Capital Position
The Bank continues to exceed all regulatory capital requirements, maintaining its 'well-capitalized' status with strong Tier 1 leverage and risk-based capital ratios.
Analysis · FNWB · Finance
First Northwest Bancorp reported a net income of $6,000 for Q1 2026, a significant turnaround from a $9.0 million net loss in Q1 2025. This return to profitability was primarily driven by a substantial reduction in the provision for credit losses, which decreased from $7.785 million in Q1 2025 to a net provision of $78,000 in Q1 2026. Noninterest expenses also saw a notable decrease, largely due to a $5.8 million legal settlement recorded in the prior year's comparable period. While noninterest income declined due to one-off benefits in Q1 2025 (BOLI death benefit and debt extinguishment gain), net interest income improved. The company also reported a slight decrease in nonperforming loans and maintained its 'well-capitalized' status, indicating improved financial stability and asset quality.
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.
Measured one observation per ticker per day, after exclusions. Current figures: Filing Impact Tracker · open dataset
At the time of this filing, FNWB was trading at $9.99 on NASDAQ in the Finance sector, with a market capitalization of approximately $94.9M. The 52-week trading range was $6.05 to $10.98. This filing was assessed with positive market sentiment and an importance score of 7 out of 10.