First Northwest Settles Socotra REIT Lawsuit for $1.3M
FNWB sits 39% above its 52-week low of $7.25 on light trading volume (0.2× avg).
Summary
First Northwest Bancorp's unit Fed Bank entered a settlement agreement with Socotra on Sept 15, 2026, agreeing to a $1.3 million cash payment for full release and dismissal of the complaint. This resolves the $106.9 million lawsuit that had been weighing on the outlook, as noted in the Q2 10-Q. The settlement amount is modest relative to the original claim, removing a significant legal overhang. The company's Q2 net income was only $308,000, so the $1.3 million payment is material to near-term earnings but eliminates uncertainty. Watch for the formal dismissal and any impact on Q3 results.
At the time of this announcement, FNWB was trading at $10.10 on NASDAQ in the Finance sector, with a market capitalization of approximately $96.1M. The 52-week trading range was $7.25 to $12.52. This news item was assessed with positive market sentiment and an importance score of 7 out of 10. Source: Reuters.