First Northwest Bancorp Settles Socotra Lawsuit for $1.3M
FNWB sits 37% above its 52-week low of $7.25.
Summary
First Northwest Bancorp settled the Socotra REIT lawsuit for $1.3 million, resolving claims of fraud and misrepresentation against its subsidiary First Fed Bank.
Key Events · Legal and Risk Events · FNWB
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Settlement Agreement Signed
On September 15, 2026, First Fed Bank and Socotra REIT I, LLC entered into a Settlement Agreement & Mutual Release, resolving all claims in the lawsuit.
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$1.3M Cash Payment
The Bank agreed to pay $1.3 million within 30 days in exchange for a full release of claims and dismissal of the complaint with prejudice.
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Lawsuit Background
Socotra filed the complaint on October 17, 2025, alleging misrepresentation, fraud, conversion, and Washington Consumer Protection Act violations related to a commercial loan involving Ideal Property Investments LLC.
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No Admission of Liability
The Settlement Agreement reflects a compromise of disputed claims and does not constitute an admission of liability, wrongdoing, or fault by the Bank or the Company.
Analysis · FNWB · Finance
A $1.3 million settlement removes a significant legal overhang for First Northwest Bancorp, whose subsidiary First Fed Bank faced allegations of misrepresentation, fraud, and conversion tied to a commercial loan. The cash payment is a meaningful expense for a bank that earned only $308,000 in Q2 2026, but it clears the path forward.
How filings like this one have moved
In the 30 days to Oct 1, 2026, 30.2% of the 1644 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 $9.96 on NASDAQ in the Finance sector, with a market capitalization of approximately $94.7M. The 52-week trading range was $7.25 to $12.52. This filing was assessed with neutral market sentiment and an importance score of 7 out of 10.