PORT ANGELES, Wash., Oct. 29, 2026 (GLOBE NEWSWIRE) -- First Northwest Bancorp (Nasdaq: FNWB) ("First Northwest" or the "Company"), the holding company for First Fed Bank ("First Fed" or the "Bank"), today reported its financial results for the third quarter and nine months ended September 30, 2026. The Company reported a net loss of $743,000 for the third quarter of 2026, compared to net income of $308,000 for the second quarter of 2026 and net income of $802,000 for the third quarter of 2025. Basic and diluted loss per share were $0.08 for the third quarter of 2026, compared to basic and diluted income per share of $0.03 for the second quarter of 2026 and basic and diluted income per share of $0.09 for the third quarter of 2025.
Management Outlook; President and Chief Executive Officer, Curt Queyrouze:
"We are encouraged by the continued momentum in our core banking franchise during the third quarter, including stable net interest income, modest net interest margin expansion and growth in customer deposits. These results reflect the progress we are making to enhance our funding mix and strengthen the balance sheet. Although reported results were affected by a higher provision for credit losses and the settlement of a previously disclosed legal matter, nonperforming loans declined and allowance coverage improved. With a stable capital position and several strategic and operational initiatives underway, we believe we are building a stronger foundation for improved profitability and long-term shareholder value."
| 2026 FINANCIAL RESULTS | 3Q 26 | 2Q 26 | 3Q 25 | 2026 YTD | 2025 YTD | ||||||||||||||||
| OPERATING RESULTS (in millions) | |||||||||||||||||||||
| Net (loss) income | $ | (0.7 | ) | $ | 0.3 | $ | 0.8 | $ | (0.4 | ) | $ | (4.6 | ) | ||||||||
| Net interest income | 14.3 | 14.2 | 14.6 | 42.9 | 42.6 | ||||||||||||||||
| Provision for credit losses | 0.7 | (0.5 | ) | (0.7 | ) | 0.3 | 6.8 | ||||||||||||||
| Noninterest income | 2.2 | 2.0 | 2.0 | 6.2 | 7.9 | ||||||||||||||||
| Noninterest expense | 17.3 | 16.4 | 17.4 | 50.4 | 50.2 | ||||||||||||||||
| PER SHARE DATA | |||||||||||||||||||||
| Basic and diluted (loss) earnings | $ | (0.08 | ) | $ | 0.03 | $ | 0.09 | $ | (0.05 | ) | $ | (0.52 | ) | ||||||||
| Book value | 15.65 | 16.66 | 16.33 | 15.65 | 16.33 | ||||||||||||||||
| Tangible book value (1) | 15.52 | 16.52 | 16.18 | 15.52 | 16.18 | ||||||||||||||||
| BALANCE SHEET (in millions) | |||||||||||||||||||||
| Total assets | $ | 2,143 | $ | 2,125 | $ | 2,111 | $ | 2,143 | $ | 2,111 | |||||||||||
| Total securities available for sale | 310 | 287 | 283 | 310 | 283 | ||||||||||||||||
| Total loans | 1,594 | 1,613 | 1,623 | 1,594 | 1,623 | ||||||||||||||||
| Total customer deposits | 1,576 | 1,549 | 1,549 | 1,576 | 1,549 | ||||||||||||||||
| Total brokered deposits | 59 | 59 | 104 | 59 | 104 | ||||||||||||||||
| Total shareholders' equity | 149 | 158 | 155 | 149 | 155 | ||||||||||||||||
| ASSET QUALITY | |||||||||||||||||||||
| Annualized net charge-offs to average outstanding loans | 0.11 | % | 0.04 | % | 0.37 | % | 0.07 | % | 0.90 | % | |||||||||||
| Nonperforming assets to total assets | 0.98 | 1.05 | 0.70 | 0.98 | 0.70 | ||||||||||||||||
| Allowance for credit losses on loans to total loans | 1.03 | 1.01 | 1.00 | 1.03 | 1.00 | ||||||||||||||||
| Nonaccrual loan coverage ratio | 82.41 | 78.68 | 121.17 | 82.41 | 121.17 | ||||||||||||||||
| (1) | Non-GAAP financial measure; see "Additional Information - Non-GAAP Financial Measures" later in this release for definitions and a reconciliation to the most comparable GAAP financial measure. | ||||||||||||||||||||
Third Quarter Insights:
- Growth of $27.0 million in customer deposits during the current quarter improved the funding mix.
- Additional investment security purchases during the third quarter of 2026 drove the increase in total assets and partially offset a decline in total loans from the preceding quarter.
- Net interest margin improved to 2.96% for the current quarter compared to 2.95% in the second quarter of 2026, and 2.91% for the third quarter of 2025.
- First Fed remains well capitalized with a total risk-based capital ratio of 13.3% for the current quarter, 13.4% for the second quarter of 2026, and 13.7% for the third quarter of 2025.
Selected Quarterly Financial Ratios:
| As of or For the Quarter Ended | As of or For the Nine Months Ended September 30, | ||||||||||||||||||||||||||||
| September 30, 2026 | June 30, 2026 | March 31, 2026 | December 31, 2025 | September 30, 2025 | 2026 | 2025 | |||||||||||||||||||||||
| Performance ratios: (1) | |||||||||||||||||||||||||||||
| Return on average assets | -0.14 | % | 0.06 | % | 0.00 | % | 0.07 | % | 0.15 | % | -0.03 | % | -0.28 | % | |||||||||||||||
| Return on average equity | -1.87 | 0.78 | 0.02 | 0.96 | 2.10 | -0.36 | -4.03 | ||||||||||||||||||||||
| Net interest margin (2) | 2.96 | 2.95 | 3.03 | 3.00 | 2.91 | 2.98 | 2.83 | ||||||||||||||||||||||
| Efficiency ratio (3) | 105.0 | 101.3 | 101.4 | 92.0 | 104.9 | 102.6 | 99.2 | ||||||||||||||||||||||
| Equity to total assets | 6.95 | 7.45 | 7.36 | 7.46 | 7.32 | 6.95 | 7.32 | ||||||||||||||||||||||
| Tangible performance ratios: (1) | |||||||||||||||||||||||||||||
| Tangible common equity to tangible assets (4) | 6.89 | % | 7.39 | % | 7.30 | % | 7.40 | % | 7.26 | % | 6.89 | % | 7.26 | % | |||||||||||||||
| Return on average tangible common equity (4) | -1.89 | 0.79 | 0.02 | 0.97 | 2.12 | -0.37 | -4.07 | ||||||||||||||||||||||
| Capital ratios (First Fed): (5) | |||||||||||||||||||||||||||||
| Tier 1 leverage | 9.6 | % | 9.6 | % | 9.6 | % | 9.5 | % | 9.3 | % | 9.6 | % | 9.3 | % | |||||||||||||||
| Common equity Tier 1 | 12.3 | 12.4 | 12.4 | 12.5 | 12.7 | 12.3 | 12.7 | ||||||||||||||||||||||
| Total risk-based | 13.3 | 13.4 | 13.5 | 13.6 | 13.7 | 13.3 | 13.7 | ||||||||||||||||||||||
| (1) | Performance ratios are annualized, where appropriate. | ||||||||||||||||||||||||||||
| (2) | Net interest income divided by average interest-earning assets. | ||||||||||||||||||||||||||||
| (3) | Total noninterest expense as a percentage of net interest income and total other noninterest income. | ||||||||||||||||||||||||||||
| (4) | Non-GAAP financial measure; see "Additional Information - Non-GAAP Financial Measures" later in this release for definitions and a reconciliation to the most comparable GAAP financial measure. | ||||||||||||||||||||||||||||
| (5) | Current period capital ratios are preliminary and subject to finalization of the FDIC Call Report. | ||||||||||||||||||||||||||||
Net Interest Income and Margin
Total interest income increased $134,000 to $25.6 million for the third quarter of 2026, compared to $25.5 million for the preceding quarter, and decreased $1.3 million compared to $26.9 million in the third quarter of 2025. Interest income increased during the third quarter of 2026 primarily due to 2026 purchases of investment securities. Average investment securities balances and yields increased compared to the preceding quarter as a result of these purchases. Average consumer and commercial business loan balances increased while average real estate loan balances decreased over the preceding quarter. The yield on interest-earning assets was flat at 5.30% for both the second and third quarters of 2026 as additional income from higher-yielding investment securities and deposits in banks offset a small decline in interest from loans receivable.
Total interest expense was flat at $11.3 million for the second and third quarters of 2026, and decreased $1.1 million compared to $12.3 million in the third quarter of 2025. The deposit mix changed in the third quarter of 2026 with slightly higher rates paid on customer deposits offset by lower average balances on borrowings. As a result of third quarter changes, the total cost of funds decreased 1 basis point to 2.41% compared to the preceding quarter.
The net interest margin increased to 2.96% for the third quarter of 2026, from 2.95% for the preceding quarter and increased from 2.91% for the third quarter of 2025.
Noninterest Income and Expense
Noninterest income increased $169,000 to $2.2 million for the third quarter of 2026, compared to $2.0 million for the second quarter of 2026. The increase was primarily due to a nonrecurring gain recognized upon exercising a historic tax credit partnership redemption option, partially offset by a decline in the valuation of servicing rights on sold loans.
Noninterest expense increased $922,000 to $17.3 million for the third quarter of 2026, compared to $16.4 million for the preceding quarter. The increase was primarily due to a nonrecurring $1.3 million expense for the settlement of the litigation previously disclosed in the Company’s Form 8-K filed September 18, 2026. This increase was partially offset by lower consulting fees recorded in professional fees. Legal fees remain elevated due to the timing of the settlement in the quarter and the Company’s defense of other ongoing legal matters.
Allowance for Credit Losses on Loans ("ACLL") and Credit Quality
The ACLL increased $79,000 to $16.4 million at September 30, 2026, from $16.3 million at June 30, 2026. The ACLL as a percentage of total loans was 1.03% at September 30, 2026, an increase from 1.01% at June 30, 2026, and an increase from 1.00% at September 30, 2025. A $532,000 loan provision expense for the quarter ended September 30, 2026, was the result of $453,000 in net charge-offs and a $264,000 increase in reserves on individually evaluated loans, partially offset by a $185,000 decrease in the overall pooled loan reserve. The change in pooled loan reserve was driven by lower loss factors applied to multi-family and auto loans combined with decreased loan balances in commercial business loans.
Nonperforming loans decreased $842,000 to $19.9 million at September 30, 2026, from $20.7 million at June 30, 2026. Current quarter activity included principal payments totaling $1.4 million and net charge-offs on nonperforming loans totaling $419,000. The decreases were partially offset by the transition into nonaccrual status of loans totaling $1.0 million across multiple loan categories. ACLL to nonperforming loans increased slightly to 82% at September 30, 2026, from 79% at June 30, 2026, reflecting a higher ACLL balance and lower nonperforming loan balances.
Classified loans increased $593,000 to $26.1 million at September 30, 2026, from $25.5 million at June 30, 2026, primarily due to $2.5 million of new downgrades across multiple loan categories. The increase was partially offset by principal payments totaling $1.4 million and net charge-offs totaling $419,000. Four collateral-dependent loans totaling $17.4 million account for 67% of the classified loan balance at September 30, 2026.
| For the Quarter Ended | ||||||||||||||||||||
| ACLL ($ in thousands) | September 30, 2026 | June 30, 2026 | March 31, 2026 | December 31, 2025 | September 30, 2025 | |||||||||||||||
| Balance at beginning of period | $ | 16,309 | $ | 16,823 | $ | 16,987 | $ | 16,203 | $ | 18,345 | ||||||||||
| Charge-offs: | ||||||||||||||||||||
| Commercial real estate | — | — | (3 | ) | (329 | ) | (656 | ) | ||||||||||||
| Construction and land | (110 | ) | (200 | ) | (171 | ) | (1,027 | ) | (483 | ) | ||||||||||
| Auto and other consumer | (171 | ) | (125 | ) | (276 | ) | (123 | ) | (106 | ) | ||||||||||
| Commercial business | (273 | ) | (34 | ) | (133 | ) | (964 | ) | (1,005 | ) | ||||||||||
| Total charge-offs | (554 | ) | (359 | ) | (583 | ) | (2,443 | ) | (2,250 | ) | ||||||||||
| Recoveries: | ||||||||||||||||||||
| Commercial real estate | — | — | — | — | 6 | |||||||||||||||
| Auto and other consumer | 91 | 109 | 50 | 34 | 47 | |||||||||||||||
| Commercial business | 10 | 73 | 382 | 2,727 | 675 | |||||||||||||||
| Total recoveries | 101 | 182 | 432 | 2,761 | 728 | |||||||||||||||
| Net loan (charge-offs) recoveries | (453 | ) | (177 | ) | (151 | ) | 318 | (1,522 | ) | |||||||||||
| Provision for (recapture of) credit losses on loans | 532 | (337 | ) | (13 | ) | 466 | (620 | ) | ||||||||||||
| Balance at end of period | $ | 16,388 | $ | 16,309 | $ | 16,823 | $ | 16,987 | $ | 16,203 | ||||||||||
| Average total loans | $ | 1,578,190 | $ | 1,604,872 | $ | 1,613,526 | $ | 1,622,476 | $ | 1,650,340 | ||||||||||
| Annualized net charge-offs (recoveries) to average outstanding loans | 0.11 | % | 0.04 | % | 0.04 | % | -0.08 | % | 0.37 | % | ||||||||||
| Asset Quality ($ in thousands) | September 30, 2026 | June 30, 2026 | March 31, 2026 | December 31, 2025 | September 30, 2025 | ||||||||||||||||
| Nonaccrual loans: | |||||||||||||||||||||
| One-to-four family | $ | 1,608 | $ | 1,627 | $ | 2,521 | $ | 2,272 | $ | 2,345 | |||||||||||
| Multi-family | 17 | — | — | — | — | ||||||||||||||||
| Commercial real estate | 9,213 | 9,449 | 9,619 | 9,745 | 3,439 | ||||||||||||||||
| Construction and land | 3,598 | 4,164 | 4,164 | 5,146 | 6,037 | ||||||||||||||||
| Home equity | 158 | 159 | 53 | 53 | 9 | ||||||||||||||||
| Auto and other consumer | 1,018 | 1,332 | 1,280 | 1,086 | 1,072 | ||||||||||||||||
| Commercial business | 4,274 | 3,997 | 4,062 | 4,293 | 470 | ||||||||||||||||
| Total nonaccrual loans | 19,886 | 20,728 | 21,699 | 22,595 | 13,372 | ||||||||||||||||
| Other real estate owned | 1,101 | 1,568 | 1,380 | 1,380 | 1,377 | ||||||||||||||||
| Total nonperforming assets | $ | 20,987 | $ | 22,296 | $ | 23,079 | $ | 23,975 | $ | 14,749 | |||||||||||
| Nonaccrual loans as a % of total loans | 1.25 | % | 1.28 | % | 1.33 | % | 1.39 | % | 0.82 | % | |||||||||||
| Nonperforming assets as a % of total assets (1) | 0.98 | 1.05 | 1.08 | 1.14 | 0.70 | ||||||||||||||||
| ACLL as a % of total loans | 1.03 | 1.01 | 1.03 | 1.04 | 1.00 | ||||||||||||||||
| ACLL as a % of nonaccrual loans | 82.41 | 78.68 | 77.53 | 75.18 | 121.17 | ||||||||||||||||
| Total past due loans to total loans | 1.44 | 1.09 | 1.18 | 1.21 | 0.88 | ||||||||||||||||
| (1) | Nonperforming assets consists of nonperforming loans (which include nonaccruing loans and accruing loans more than 90 days past due), other real estate owned and repossessed assets. | ||||||||||||||||||||
Financial Condition and Capital
Continued disciplined balance sheet management and deposit growth resulted in reduced reliance on higher-cost brokered deposits while maintaining stable capital levels.
Investment securities increased $23.2 million, or 8.1%, to $310.2 million at September 30, 2026, compared to $287.0 million three months earlier, and increased $27.6 million compared to $282.6 million at September 30, 2025. Purchases totaling $44.4 million were partially offset by an $11.9 million increase in net unrealized losses, maturities totaling $4.4 million and regular principal payments totaling $4.9 million during the third quarter of 2026. The estimated average life of the securities portfolio was approximately 6.9 years at September 30, 2026, 6.4 years at the preceding quarter end and 6.9 years at the end of the third quarter of 2025. The effective duration of the portfolio was approximately 4.2 years at September 30, 2026, compared to 4.6 years at the preceding quarter end and 4.8 years at the end of the third quarter of 2025.
| Investment Securities ($ in thousands) | September 30, 2026 | June 30, 2026 | September 30, 2025 | Three Month % Change | One Year % Change | ||||||||||
| Available for Sale at Fair Value | |||||||||||||||
| Municipal bonds | $ | 72,758 | $ | 79,990 | $ | 79,621 | -9.0 | % | -8.6 | % | |||||
| U.S. government agency issued asset-backed securities (ABS agency) | 11,170 | 11,371 | 12,169 | -1.8 | -8.2 | ||||||||||
| Corporate issued asset-backed securities (ABS corporate) | 21,088 | 6,615 | 9,881 | 218.8 | 113.4 | ||||||||||
| Corporate issued debt securities (Corporate debt) | 60,191 | 50,991 | 43,339 | 18.0 | 38.9 | ||||||||||
| U.S. Small Business Administration securities (SBA) | 4,923 | 5,362 | 6,977 | -8.2 | -29.4 | ||||||||||
| Mortgage-backed securities: | |||||||||||||||
| U.S. government agency issued mortgage- backed securities (MBS agency) | 91,217 | 95,002 | 94,203 | -4.0 | -3.2 | ||||||||||
| Non-agency issued mortgage-backed securities (MBS non-agency) | 48,841 | 37,697 | 36,418 | 29.6 | 34.1 | ||||||||||
| Total securities available for sale | $ | 310,188 | $ | 287,028 | $ | 282,608 | 8.1 | 9.8 | |||||||
Net loans receivable, excluding loans held for sale, decreased $19.9 million, or 1.2%, to $1.58 billion at September 30, 2026, from $1.60 billion at June 30, 2026, and decreased $30.6 million, or 1.9%, from $1.61 billion one year prior. Construction loans that converted into fully amortizing loans during the quarter totaled $2.4 million. Regular payments of $34.0 million, loan payoffs of $42.4 million and charge-offs totaling $554,000 outpaced new loan funding totaling $58.1 million and draws on existing loans totaling $18.0 million. Participation in the Northpointe Bank Mortgage Purchase Program ("Northpoint Bank MPP") decreased $20.0 million while purchased consumer loans increased $322,000 during the current quarter.
| Loans ($ in thousands) | September 30, 2026 | June 30, 2026 | September 30, 2025 | Three Month % Change | One Year % Change | ||||||||||||
| Real Estate: | |||||||||||||||||
| One-to-four family | $ | 353,620 | $ | 357,077 | $ | 382,486 | -1.0 | % | -7.5 | % | |||||||
| Multi-family | 245,236 | 255,813 | 296,321 | -4.1 | -17.2 | ||||||||||||
| Commercial real estate | 420,161 | 402,798 | 396,519 | 4.3 | 6.0 | ||||||||||||
| Construction and land | 62,491 | 61,697 | 67,793 | 1.3 | -7.8 | ||||||||||||
| Total real estate loans | 1,081,508 | 1,077,385 | 1,143,119 | 0.4 | -5.4 | ||||||||||||
| Consumer: | |||||||||||||||||
| Home equity | 94,171 | 90,014 | 86,629 | 4.6 | 8.7 | ||||||||||||
| Auto and other consumer | 296,217 | 294,982 | 280,224 | 0.4 | 5.7 | ||||||||||||
| Total consumer loans | 390,388 | 384,996 | 366,853 | 1.4 | 6.4 | ||||||||||||
| Commercial business | 122,031 | 151,000 | 113,160 | -19.2 | 7.8 | ||||||||||||
| Total loans receivable | 1,593,927 | 1,613,381 | 1,623,132 | -1.2 | -1.8 | ||||||||||||
| Less: | |||||||||||||||||
| Derivative basis adjustment | 353 | (10 | ) | (896 | ) | 3,630.0 | 139.4 | ||||||||||
| Allowance for credit losses on loans | 16,388 | 16,309 | 16,203 | 0.5 | 1.1 | ||||||||||||
| Total loans receivable, net | $ | 1,577,186 | $ | 1,597,082 | $ | 1,607,825 | -1.2 | -1.9 | |||||||||
Total deposits increased $27.0 million to $1.63 billion at September 30, 2026, compared to $1.61 billion at June 30, 2026, and decreased $18.9 million compared to $1.65 billion one year prior. During the third quarter of 2026, total customer deposit balances increased $27.0 million and there was no change in brokered deposit balances. The customer deposit mix reflects increased average CD, money market and demand account balances while average balances of savings accounts decreased compared to the preceding quarter. The rates paid on customer interest-bearing deposits increased 7 basis points to 2.39% for the current quarter, compared to 2.32% for the second quarter of 2026. The deposit mix compared to September 30, 2025, reflects an increase in average balances of customer accounts to CD, savings and money market accounts, with an overall $29.6 million increase to average total customer balances. A $45.2 million decrease in the average balance of brokered CDs was the main driver for the year-over-year decrease in total deposits. Rates paid on total interest-bearing deposit accounts decreased 14 basis points compared to the same quarter one year ago.
| Deposits ($ in thousands) | September 30, 2026 | June 30, 2026 | September 30, 2025 | Three Month % Change | One Year % Change | ||||||||||
| Noninterest-bearing demand deposits | $ | 253,385 | $ | 244,699 | $ | 255,366 | 3.5 | % | -0.8 | % | |||||
| Interest-bearing demand deposits | 146,932 | 147,019 | 146,373 | -0.1 | 0.4 | ||||||||||
| Money market accounts | 466,782 | 462,208 | 475,614 | 1.0 | -1.9 | ||||||||||
| Savings accounts | 243,962 | 241,711 | 232,831 | 0.9 | 4.8 | ||||||||||
| Certificates of deposit, customer | 464,732 | 453,140 | 438,780 | 2.6 | 5.9 | ||||||||||
| Certificates of deposit, brokered | 58,615 | 58,615 | 104,363 | 0.0 | -43.8 | ||||||||||
| Total deposits | $ | 1,634,408 | $ | 1,607,392 | $ | 1,653,327 | 1.7 | -1.1 | |||||||
Total shareholders’ equity decreased to $148.8 million at September 30, 2026, compared to $158.3 million three months earlier, due to decreases in the after-tax fair market values of the available-for-sale investment securities portfolio of $9.3 million and a net loss of $743,000, partially offset by the after-tax fair value of the investment portfolio hedge of $332,000. No shares of common stock were repurchased under the Company's April 2024 Stock Repurchase Plan (the "Repurchase Plan") during the quarter ended September 30, 2026. There are 846,123 shares that remain available for repurchase under the Repurchase Plan.
Capital levels for both the Company and the Bank remain in excess of applicable requirements and the Bank was categorized as "well-capitalized" at September 30, 2026. Preliminary calculations of Common Equity Tier 1 and Total Risk-Based Capital Ratios at September 30, 2026, for the Bank were 12.3% and 13.3%, respectively.
| 2026 Awards/Recognition | |
| Forbes Best-in-State Banks | Sound Publishing: |
| Bellingham Best of the Northwest - Best Bank Gold | Best Bank in Clallam County |
| Best Lender in the West End |
About the Company
First Northwest Bancorp (Nasdaq: FNWB) is a financial holding company engaged in investment activities including the business of its subsidiary, First Fed Bank. First Fed is a Pacific Northwest-based financial institution which has served its customers and communities since 1923. Currently First Fed has 16 locations in Washington state including 11 full-service branches. First Fed’s business and operating strategy is focused on building sustainable earnings by delivering a full array of financial products and services for individuals, small businesses, non-profit organizations and commercial customers. First Northwest has also strategically invested in partnerships focused on developing modern financial solutions and a boutique investment banking/accelerator firm. These investments underscore the Company’s commitment to innovation and growth in the financial services sector. First Northwest Bancorp was incorporated in 2012 and completed its initial public offering in 2015 under the ticker symbol FNWB. The Company is headquartered in Port Angeles, Washington.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements relate to, among other things, expectations of the business environment in which we operate, projections of future performance and execution on certain strategies, perceived opportunities in the market, potential future credit experience, including our ability to collect, and include, but are not limited to, statements about our plans, objectives, expectations and intentions that are not historical facts, and other statements often identified by words such as "believes," "expects," "anticipates," "estimates," or similar expressions. These forward-looking statements are based upon current management beliefs and expectations and may, therefore, involve risks and uncertainties, many of which are beyond our control. Our actual results, performance, or achievements may differ materially from those suggested, expressed, or implied by forward-looking statements as a result of a wide variety of factors including, but not limited to: increased competitive pressures; changes in the interest rate environment; the credit risks of lending activities; pressures on liquidity, including as a result of withdrawals of deposits, declines in the value of our investment portfolio or changes in interest rates; risks related to overall economic conditions; geopolitical events; legislative, regulatory, and policy changes; legal proceedings, regulatory investigations and their resolutions; and other factors described in the Company’s latest Annual Report on Form 10-K under the section entitled "Risk Factors," and other filings with the Securities and Exchange Commission ("SEC"), which are available on our website at www.ourfirstfed.com and on the SEC’s website at www.sec.gov.
Any of the forward-looking statements that we make in this press release and in the other public statements we make may turn out to be incorrect because of the inaccurate assumptions we might make, because of the factors illustrated above or because of other factors that we cannot foresee. Because of these and other uncertainties, our actual future results may be materially different from those expressed or implied in any forward-looking statements made by or on our behalf and the Company's operating and stock price performance may be negatively affected. Therefore, these factors should be considered in evaluating the forward-looking statements, and undue reliance should not be placed on such statements. We do not undertake and specifically disclaim any obligation to revise any forward-looking statements to reflect the occurrence of anticipated or unanticipated events or circumstances after the date of such statements, except as required by law. These risks could cause our actual results for 2026 and beyond to differ materially from those expressed in or implied by any forward-looking statements by, or on behalf of, us and could negatively affect the Company’s operations and stock price performance.
For More Information Contact:
Curt Queyrouze, President and Chief Executive Officer
Phyllis Nomura, Chief Financial Officer and EVP
IRGroup@ourfirstfed.com
360-457-0461
| FIRST NORTHWEST BANCORP AND SUBSIDIARY CONSOLIDATED BALANCE SHEETS (Dollars in thousands, except share data) (Unaudited) | ||||||||||||||||||||
| September 30, 2026 | June 30, 2026 | March 31, 2026 | December 31, 2025 | September 30, 2025 | ||||||||||||||||
| ASSETS | ||||||||||||||||||||
| Cash and due from banks | $ | 17,986 | $ | 14,649 | $ | 16,548 | $ | 15,530 | $ | 15,688 | ||||||||||
| Interest-earning deposits in banks | 85,639 | 83,709 | 87,588 | 69,587 | 63,482 | |||||||||||||||
| Investment securities available for sale, at fair value (amortized cost at each period end of $348,325, $313,215, $299,707, $295,849 and $310,545) | 310,188 | 287,028 | 272,985 | 270,310 | 282,608 | |||||||||||||||
| Loans held for sale | 300 | 1,286 | 1,140 | 1,063 | 2,154 | |||||||||||||||
| Loans receivable (net of allowance for credit losses on loans at each period end of $16,388, $16,309, $16,823, $16,987, and $16,203) | 1,577,186 | 1,597,082 | 1,612,979 | 1,612,028 | 1,607,825 | |||||||||||||||
| Federal Home Loan Bank (FHLB) stock, at cost | 13,211 | 13,279 | 13,927 | 13,105 | 10,856 | |||||||||||||||
| Accrued interest receivable | 8,197 | 7,181 | 7,051 | 6,498 | 8,160 | |||||||||||||||
| Premises and equipment, net | 9,270 | 9,160 | 8,591 | 8,464 | 8,788 | |||||||||||||||
| Servicing rights on sold loans, at fair value | 2,776 | 3,012 | 2,999 | 3,014 | 3,093 | |||||||||||||||
| Bank-owned life insurance ("BOLI"), net | 43,762 | 43,305 | 42,850 | 42,382 | 41,889 | |||||||||||||||
| Equity and partnership investments | 15,331 | 15,441 | 15,452 | 15,489 | 15,048 | |||||||||||||||
| Goodwill and other intangible assets, net | 1,062 | 1,062 | 1,062 | 1,062 | 1,080 | |||||||||||||||
| Deferred tax asset, net | 16,937 | 13,664 | 13,898 | 13,638 | 14,168 | |||||||||||||||
| Right-of-use ("ROU") asset, net | 14,975 | 15,057 | 15,316 | 15,596 | 15,494 | |||||||||||||||
| Prepaid expenses and other assets | 25,742 | 19,920 | 21,057 | 20,129 | 21,040 | |||||||||||||||
| Total assets | $ | 2,142,562 | $ | 2,124,835 | $ | 2,133,443 | $ | 2,107,895 | $ | 2,111,373 | ||||||||||
| LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||||||||||||||
| Deposits | $ | 1,634,408 | $ | 1,607,392 | $ | 1,601,582 | $ | 1,599,101 | $ | 1,653,327 | ||||||||||
| Borrowings | 311,694 | 313,177 | 328,160 | 308,143 | 259,625 | |||||||||||||||
| Accrued interest payable | 145 | 151 | 280 | 1,223 | 1,145 | |||||||||||||||
| Lease liability, net | 15,968 | 16,039 | 16,250 | 16,439 | 16,071 | |||||||||||||||
| Accrued expenses and other liabilities | 28,795 | 28,260 | 27,514 | 24,301 | 24,321 | |||||||||||||||
| Advances from borrowers for taxes and insurance | 2,716 | 1,503 | 2,691 | 1,424 | 2,356 | |||||||||||||||
| Total liabilities | 1,993,726 | 1,966,522 | 1,976,477 | 1,950,631 | 1,956,845 | |||||||||||||||
| Shareholders' Equity | ||||||||||||||||||||
| Preferred stock, $0.01 par value, authorized 5,000,000 shares, no shares issued or outstanding | — | — | — | — | — | |||||||||||||||
| Common stock, $0.01 par value, 75,000,000 shares authorized; issued and outstanding at each period end: 9,508,205; 9,504,441; 9,499,300; 9,467,925; and 9,462,150 | 95 | 95 | 95 | 95 | 94 | |||||||||||||||
| Additional paid-in capital | 94,075 | 93,986 | 93,854 | 93,803 | 93,646 | |||||||||||||||
| Retained earnings | 91,272 | 92,015 | 91,707 | 91,699 | 91,317 | |||||||||||||||
| Accumulated other comprehensive loss, net of tax | (31,165 | ) | (22,177 | ) | (22,920 | ) | (22,398 | ) | (24,429 | ) | ||||||||||
| Unearned employee stock ownership plan (ESOP) shares | (5,441 | ) | (5,606 | ) | (5,770 | ) | (5,935 | ) | (6,100 | ) | ||||||||||
| Total shareholders' equity | 148,836 | 158,313 | 156,966 | 157,264 | 154,528 | |||||||||||||||
| Total liabilities and shareholders' equity | $ | 2,142,562 | $ | 2,124,835 | $ | 2,133,443 | $ | 2,107,895 | $ | 2,111,373 | ||||||||||
| FIRST NORTHWEST BANCORP AND SUBSIDIARY CONSOLIDATED STATEMENTS OF OPERATIONS (Dollars in thousands, except per share data) (Unaudited) | ||||||||||||||||||||||||||||
| For the Quarter Ended | For the Nine Months Ended | |||||||||||||||||||||||||||
| September 30, 2026 | June 30, 2026 | March 31, 2026 | December 31, 2025 | September 30, 2025 | September 30, 2026 | September 30, 2025 | ||||||||||||||||||||||
| INTEREST INCOME | ||||||||||||||||||||||||||||
| Interest and fees on loans receivable | $ | 21,815 | $ | 21,997 | $ | 22,000 | $ | 22,431 | $ | 22,814 | $ | 65,812 | $ | 67,859 | ||||||||||||||
| Interest on investment securities | 3,067 | 2,723 | 2,585 | 2,971 | 3,244 | 8,375 | 10,513 | |||||||||||||||||||||
| Interest on deposits in banks | 464 | 453 | 467 | 473 | 570 | 1,384 | 1,572 | |||||||||||||||||||||
| FHLB dividends | 243 | 282 | 282 | 262 | 282 | 807 | 920 | |||||||||||||||||||||
| Total interest income | 25,589 | 25,455 | 25,334 | 26,137 | 26,910 | 76,378 | 80,864 | |||||||||||||||||||||
| INTEREST EXPENSE | ||||||||||||||||||||||||||||
| Deposits | 8,493 | 8,033 | 7,930 | 8,648 | 9,083 | 24,456 | 28,372 | |||||||||||||||||||||
| Borrowings | 2,778 | 3,249 | 2,964 | 2,799 | 3,258 | 8,991 | 9,883 | |||||||||||||||||||||
| Total interest expense | 11,271 | 11,282 | 10,894 | 11,447 | 12,341 | 33,447 | 38,255 | |||||||||||||||||||||
| Net interest income | 14,318 | 14,173 | 14,440 | 14,690 | 14,569 | 42,931 | 42,609 | |||||||||||||||||||||
| PROVISION FOR CREDIT LOSSES | ||||||||||||||||||||||||||||
| Provision for (recapture of) credit losses on loans | 532 | (337 | ) | (13 | ) | 466 | (620 | ) | 182 | 6,854 | ||||||||||||||||||
| Provision for (recapture of) credit losses on unfunded commitments | 207 | (203 | ) | 91 | 97 | (53 | ) | 95 | (102 | ) | ||||||||||||||||||
| Provision for (recapture of) credit losses | 739 | (540 | ) | 78 | 563 | (673 | ) | 277 | 6,752 | |||||||||||||||||||
| Net interest income after provision for (recapture of) credit losses | 13,579 | 14,713 | 14,362 | 14,127 | 15,242 | 42,654 | 35,857 | |||||||||||||||||||||
| NONINTEREST INCOME | ||||||||||||||||||||||||||||
| Loan and deposit service fees | 1,150 | 1,107 | 1,122 | 1,044 | 1,114 | 3,379 | 3,315 | |||||||||||||||||||||
| Sold loan servicing fees and servicing rights mark-to-market | (47 | ) | 162 | 127 | 57 | 85 | 242 | 372 | ||||||||||||||||||||
| Net gain (loss) on sale of loans | 40 | 73 | 76 | 96 | (39 | ) | 189 | 16 | ||||||||||||||||||||
| Increase in BOLI cash surrender value | 457 | 455 | 468 | 493 | 539 | 1,380 | 1,396 | |||||||||||||||||||||
| Income from BOLI death benefit, net | — | — | — | — | — | — | 1,059 | |||||||||||||||||||||
| Other income | 574 | 208 | 215 | 2,000 | 303 | 997 | 1,791 | |||||||||||||||||||||
| Total noninterest income | 2,174 | 2,005 | 2,008 | 3,690 | 2,002 | 6,187 | 7,949 | |||||||||||||||||||||
| NONINTEREST EXPENSE | ||||||||||||||||||||||||||||
| Compensation and benefits | 8,185 | 8,054 | 8,232 | 8,042 | 8,353 | 24,471 | 20,766 | |||||||||||||||||||||
| Data processing | 1,943 | 1,702 | 2,228 | 1,990 | 1,941 | 5,873 | 5,878 | |||||||||||||||||||||
| Occupancy and equipment | 1,512 | 1,538 | 1,565 | 1,539 | 1,505 | 4,615 | 4,604 | |||||||||||||||||||||
| Supplies, postage, and telephone | 305 | 384 | 298 | 332 | 344 | 987 | 988 | |||||||||||||||||||||
| Regulatory assessments and state taxes | 548 | 581 | 534 | 688 | 558 | 1,663 | 1,538 | |||||||||||||||||||||
| Advertising | 278 | 245 | 304 | 290 | 282 | 827 | 846 | |||||||||||||||||||||
| Professional fees | 1,915 | 2,305 | 2,026 | 1,957 | 2,668 | 6,246 | 4,894 | |||||||||||||||||||||
| FDIC insurance premium | 381 | 387 | 363 | 424 | 411 | 1,131 | 1,308 | |||||||||||||||||||||
| Legal settlement | 1,300 | — | — | — | (10 | ) | 1,300 | 5,740 | ||||||||||||||||||||
| Other expense | 948 | 1,197 | 1,134 | 1,640 | 1,338 | 3,279 | 3,593 | |||||||||||||||||||||
| Total noninterest expense | 17,315 | 16,393 | 16,684 | 16,902 | 17,390 | 50,392 | 50,155 | |||||||||||||||||||||
| (Loss) income before (benefit from) provision for income taxes | (1,562 | ) | 325 | (314 | ) | 915 | (146 | ) | (1,551 | ) | (6,349 | ) | ||||||||||||||||
| (Benefit from) provision for income taxes | (819 | ) | 17 | (320 | ) | 533 | (948 | ) | (1,122 | ) | (1,776 | ) | ||||||||||||||||
| Net (loss) income | $ | (743 | ) | $ | 308 | $ | 6 | $ | 382 | $ | 802 | $ | (429 | ) | $ | (4,573 | ) | |||||||||||
| Basic and diluted (loss) earnings per common share | $ | (0.08 | ) | $ | 0.03 | $ | - | $ | 0.04 | $ | 0.09 | $ | (0.05 | ) | $ | (0.52 | ) | |||||||||||
| Diluted weighted average common shares outstanding | 8,903,832 | 8,930,663 | 8,894,998 | 8,860,060 | 8,813,632 | 8,877,432 | 8,779,708 | |||||||||||||||||||||
| FIRST NORTHWEST BANCORP AND SUBSIDIARY ADDITIONAL INFORMATION (Dollars in thousands) (Unaudited) | |||||||||||||||
| Selected Loan Detail | September 30, 2026 | June 30, 2026 | March 31, 2026 | December 31, 2025 | September 30, 2025 | ||||||||||
| Construction and land loans breakout | |||||||||||||||
| 1-4 Family construction | $ | 13,994 | $ | 5,682 | $ | 18,802 | $ | 21,954 | $ | 29,961 | |||||
| Multifamily construction | 18,584 | 14,826 | 12,144 | 10,109 | 15,660 | ||||||||||
| Nonresidential construction | 24,952 | 35,749 | 25,758 | 23,005 | 16,484 | ||||||||||
| Land and development | 4,961 | 5,440 | 5,643 | 6,200 | 5,688 | ||||||||||
| Total construction and land loans | $ | 62,491 | $ | 61,697 | $ | 62,347 | $ | 61,268 | $ | 67,793 | |||||
| Auto and other consumer loans breakout | |||||||||||||||
| Triad Manufactured Home loans | $ | 133,054 | $ | 131,367 | $ | 131,406 | $ | 132,287 | $ | 133,425 | |||||
| Woodside auto loans | 153,421 | 152,748 | 147,444 | 137,678 | 131,800 | ||||||||||
| First Help auto loans | 5,632 | 6,430 | 7,570 | 8,491 | 9,561 | ||||||||||
| Other auto loans | 257 | 346 | 468 | 586 | 767 | ||||||||||
| Other consumer loans | 3,853 | 4,091 | 4,072 | 4,460 | 4,671 | ||||||||||
| Total auto and other consumer loans | $ | 296,217 | $ | 294,982 | $ | 290,960 | $ | 283,502 | $ | 280,224 | |||||
| Commercial business loans breakout | |||||||||||||||
| Northpointe Bank MPP | $ | 24,644 | $ | 44,602 | $ | 41,951 | $ | 18,941 | $ | - | |||||
| Secured lines of credit | 24,747 | 34,485 | 40,991 | 39,783 | 43,081 | ||||||||||
| Unsecured lines of credit | 2,597 | 2,953 | 3,351 | 2,901 | 2,580 | ||||||||||
| SBA loans | 6,724 | 6,818 | 5,505 | 5,645 | 6,347 | ||||||||||
| Other commercial business loans | 63,319 | 62,142 | 60,793 | 63,041 | 61,152 | ||||||||||
| Total commercial business loans | $ | 122,031 | $ | 151,000 | $ | 152,591 | $ | 130,311 | $ | 113,160 | |||||
| Loans by Collateral and Unfunded Commitments | September 30, 2026 | June 30, 2026 | March 31, 2026 | December 31, 2025 | September 30, 2025 | ||||||||||
| One-to-four family construction | $ | 19,639 | $ | 20,583 | $ | 18,571 | $ | 23,815 | $ | 31,627 | |||||
| All other construction and land | 42,852 | 41,873 | 44,000 | 37,334 | 36,161 | ||||||||||
| One-to-four family first mortgage | 401,389 | 425,021 | 440,576 | 431,222 | 415,670 | ||||||||||
| One-to-four family junior liens | 19,018 | 19,986 | 21,169 | 21,003 | 20,568 | ||||||||||
| One-to-four family revolving open-end | 68,531 | 62,411 | 57,027 | 56,365 | 58,486 | ||||||||||
| Commercial real estate, owner occupied: | |||||||||||||||
| Health care | 31,244 | 31,522 | 28,177 | 28,488 | 28,794 | ||||||||||
| Office | 21,182 | 22,895 | 18,953 | 19,216 | 18,499 | ||||||||||
| Warehouse | 9,202 | 9,270 | 7,549 | 7,608 | 7,684 | ||||||||||
| Other | 74,961 | 71,064 | 72,556 | 71,313 | 73,562 | ||||||||||
| Commercial real estate, non-owner occupied: | |||||||||||||||
| Office | 40,034 | 36,297 | 36,657 | 40,311 | 40,917 | ||||||||||
| Retail | 51,685 | 52,465 | 53,519 | 50,494 | 50,839 | ||||||||||
| Hospitality | 63,005 | 62,352 | 62,729 | 63,113 | 63,953 | ||||||||||
| Other | 121,306 | 113,320 | 115,367 | 112,307 | 106,991 | ||||||||||
| Multi-family residential | 246,270 | 256,853 | 272,025 | 289,581 | 297,379 | ||||||||||
| Commercial business loans | 55,173 | 61,958 | 61,247 | 66,264 | 68,062 | ||||||||||
| Commercial agriculture and fishing loans | 31,886 | 30,197 | 27,982 | 25,842 | 23,346 | ||||||||||
| State and political subdivision obligations | 333 | 333 | 333 | 333 | 369 | ||||||||||
| Consumer automobile loans | 159,316 | 159,519 | 155,443 | 146,708 | 142,064 | ||||||||||
| Consumer loans secured by other assets | 135,280 | 133,899 | 133,825 | 134,826 | 136,073 | ||||||||||
| Consumer loans unsecured | 1,621 | 1,563 | 1,691 | 1,969 | 2,088 | ||||||||||
| Total loans | $ | 1,593,927 | $ | 1,613,381 | $ | 1,629,396 | $ | 1,628,112 | $ | 1,623,132 | |||||
| Unfunded commitments under lines of credit or existing loans | $ | 169,974 | $ | 164,614 | $ | 166,899 | $ | 167,489 | $ | 158,118 | |||||
| FIRST NORTHWEST BANCORP AND SUBSIDIARY NET INTEREST MARGIN ANALYSIS (Unaudited) | ||||||||||||||||||||||||||||||||||
| Three Months Ended | ||||||||||||||||||||||||||||||||||
| September 30, 2026 | June 30, 2026 | September 30, 2025 | ||||||||||||||||||||||||||||||||
| (dollars in thousands) | Average Balance Outstanding | Interest Earned/ Paid | Yield/ Rate | Average Balance Outstanding | Interest Earned/ Paid | Yield/ Rate | Average Balance Outstanding | Interest Earned/ Paid | Yield/ Rate | |||||||||||||||||||||||||
| Interest-earning assets: | ||||||||||||||||||||||||||||||||||
| Loans receivable, net (1) (2) | $ | 1,561,983 | $ | 21,815 | 5.54 | % | $ | 1,588,321 | $ | 21,997 | 5.55 | % | $ | 1,632,684 | $ | 22,814 | 5.54 | % | ||||||||||||||||
| Total investment securities | 294,960 | 3,067 | 4.13 | 276,147 | 2,723 | 3.96 | 293,723 | 3,244 | 4.38 | |||||||||||||||||||||||||
| FHLB dividends | 9,943 | 243 | 9.70 | 12,020 | 282 | 9.41 | 12,810 | 282 | 8.73 | |||||||||||||||||||||||||
| Interest-earning deposits in banks | 49,136 | 464 | 3.75 | 48,783 | 453 | 3.72 | 50,150 | 570 | 4.51 | |||||||||||||||||||||||||
| Total interest-earning assets (3) | 1,916,022 | 25,589 | 5.30 | 1,925,271 | 25,455 | 5.30 | 1,989,367 | 26,910 | 5.37 | |||||||||||||||||||||||||
| Noninterest-earning assets | 143,191 | 143,007 | 146,042 | |||||||||||||||||||||||||||||||
| Total average assets | $ | 2,059,213 | $ | 2,068,278 | $ | 2,135,409 | ||||||||||||||||||||||||||||
| Interest-bearing liabilities: | ||||||||||||||||||||||||||||||||||
| Interest-bearing demand deposits | $ | 142,597 | $ | 99 | 0.28 | $ | 141,339 | $ | 83 | 0.24 | $ | 141,469 | $ | 52 | 0.15 | |||||||||||||||||||
| Money market accounts | 466,389 | 2,642 | 2.25 | 455,356 | 2,451 | 2.16 | 464,265 | 2,832 | 2.42 | |||||||||||||||||||||||||
| Savings accounts | 241,159 | 974 | 1.60 | 243,735 | 921 | 1.52 | 231,431 | 914 | 1.57 | |||||||||||||||||||||||||
| Certificates of deposit, customer | 461,588 | 4,189 | 3.60 | 449,938 | 4,024 | 3.59 | 443,312 | 4,175 | 3.74 | |||||||||||||||||||||||||
| Certificates of deposit, brokered | 58,745 | 589 | 3.98 | 51,788 | 554 | 4.29 | 103,959 | 1,110 | 4.24 | |||||||||||||||||||||||||
| Total interest-bearing deposits (4) | 1,370,478 | 8,493 | 2.46 | 1,342,156 | 8,033 | 2.40 | 1,384,436 | 9,083 | 2.60 | |||||||||||||||||||||||||
| Advances | 204,364 | 2,159 | 4.19 | 252,230 | 2,633 | 4.19 | 265,554 | 2,913 | 4.35 | |||||||||||||||||||||||||
| Subordinated debt | 34,685 | 619 | 7.08 | 34,668 | 616 | 7.13 | 34,617 | 345 | 3.95 | |||||||||||||||||||||||||
| Total interest-bearing liabilities | 1,609,527 | 11,271 | 2.78 | 1,629,054 | 11,282 | 2.78 | 1,684,607 | 12,341 | 2.91 | |||||||||||||||||||||||||
| Noninterest-bearing deposits (4) | 249,784 | 237,762 | 251,448 | |||||||||||||||||||||||||||||||
| Other noninterest-bearing liabilities | 42,502 | 43,529 | 47,978 | |||||||||||||||||||||||||||||||
| Total average liabilities | 1,901,813 | 1,910,345 | 1,984,033 | |||||||||||||||||||||||||||||||
| Average equity | 157,400 | 157,933 | 151,376 | |||||||||||||||||||||||||||||||
| Total average liabilities and equity | $ | 2,059,213 | $ | 2,068,278 | $ | 2,135,409 | ||||||||||||||||||||||||||||
| Net interest income | $ | 14,318 | $ | 14,173 | $ | 14,569 | ||||||||||||||||||||||||||||
| Net interest rate spread | 2.52 | 2.52 | 2.46 | |||||||||||||||||||||||||||||||
| Net earning assets | $ | 306,495 | $ | 296,217 | $ | 304,760 | ||||||||||||||||||||||||||||
| Net interest margin (5) | 2.96 | 2.95 | 2.91 | |||||||||||||||||||||||||||||||
| Average interest-earning assets to average interest- bearing liabilities | 119.0 | % | 118.2 | % | 118.1 | % | ||||||||||||||||||||||||||||
| (1) | The average loans receivable, net balances include nonaccrual loans. | |||||||||||||||||||||||||||||||||
| (2) | Interest earned on loans receivable includes net deferred costs of $841,000, $775,000 and $410,000 for the three months ended September 30, 2026, June 30, 2026 and September 30, 2025, respectively. | |||||||||||||||||||||||||||||||||
| (3) | Includes interest-earning deposits (cash) at other financial institutions. | |||||||||||||||||||||||||||||||||
| (4) | Cost of all deposits, including noninterest-bearing demand deposits, was 2.08%, 2.04%, and 2.20% for the three months ended September 30, 2026, June 30, 2026 and September 30, 2025, respectively. | |||||||||||||||||||||||||||||||||
| (5) | Net interest income divided by average interest-earning assets. | |||||||||||||||||||||||||||||||||
FIRST NORTHWEST BANCORP AND SUBSIDIARY
ADDITIONAL INFORMATION
(Unaudited)
Non-GAAP Financial Measures
This press release contains financial measures that are not in conformity with generally accepted accounting principles in the United States of America ("GAAP"). Non-GAAP financial measures are presented where management believes the information will help investors understand the Company’s results of operations or financial position and assess trends. Where non-GAAP financial measures are used, the comparable GAAP financial measure is also provided. These disclosures should not be viewed as a substitute for operating results determined in accordance with GAAP, and are not necessarily comparable to non-GAAP performance measures that may be presented by other companies. Other banking companies may use names similar to those the Company uses for the non-GAAP financial measures the Company discloses, but may calculate them differently. Investors should understand how the Company and other companies each calculate their non-GAAP financial measures when making comparisons. Reconciliations of the GAAP and non-GAAP measures are presented below.
Calculations Based on Tangible Common Equity:
| For the Quarter Ended | For the Nine Months Ended | ||||||||||||||||||||||||||||
| ($ in thousands, except per share data) | September 30, 2026 | June 30, 2026 | March 31, 2026 | December 31, 2025 | September 30, 2025 | September 30, 2026 | September 30, 2025 | ||||||||||||||||||||||
| Total shareholders' equity | $ | 148,836 | $ | 158,313 | $ | 156,966 | $ | 157,264 | $ | 154,528 | $ | 148,836 | $ | 154,528 | |||||||||||||||
| Less: Goodwill and other intangible assets | 1,062 | 1,062 | 1,062 | 1,062 | 1,080 | 1,062 | 1,080 | ||||||||||||||||||||||
| Disallowed non-mortgage loan servicing rights | 226 | 247 | 312 | 302 | 317 | 226 | 317 | ||||||||||||||||||||||
| Total tangible common equity | $ | 147,548 | $ | 157,004 | $ | 155,592 | $ | 155,900 | $ | 153,131 | $ | 147,548 | $ | 153,131 | |||||||||||||||
| Total assets | $ | 2,142,562 | $ | 2,124,835 | $ | 2,133,443 | $ | 2,107,895 | $ | 2,111,373 | $ | 2,142,562 | $ | 2,111,373 | |||||||||||||||
| Less: Goodwill and other intangible assets | 1,062 | 1,062 | 1,062 | 1,062 | 1,080 | 1,062 | 1,080 | ||||||||||||||||||||||
| Disallowed non-mortgage loan servicing rights | 226 | 247 | 312 | 302 | 317 | 226 | 317 | ||||||||||||||||||||||
| Total tangible assets | $ | 2,141,274 | $ | 2,123,526 | $ | 2,132,069 | $ | 2,106,531 | $ | 2,109,976 | $ | 2,141,274 | $ | 2,109,976 | |||||||||||||||
| Average shareholders' equity | $ | 157,400 | $ | 157,933 | $ | 159,532 | $ | 157,588 | $ | 151,376 | $ | 158,281 | $ | 151,538 | |||||||||||||||
| Less: Average goodwill and other intangible assets | 1,062 | 1,062 | 1,062 | 1,080 | 1,081 | 1,062 | 1,081 | ||||||||||||||||||||||
| Average disallowed non-mortgage loan servicing rights | 247 | 311 | 302 | 317 | 371 | 286 | 403 | ||||||||||||||||||||||
| Total average tangible common equity | $ | 156,091 | $ | 156,560 | $ | 158,168 | $ | 156,191 | $ | 149,924 | $ | 156,933 | $ | 150,054 | |||||||||||||||
| Net (loss) income | $ | (743 | ) | $ | 308 | $ | 6 | $ | 382 | $ | 802 | $ | (429 | ) | $ | (4,573 | ) | ||||||||||||
| Common shares outstanding | 9,508,205 | 9,504,441 | 9,499,300 | 9,467,925 | 9,462,150 | 9,508,205 | 9,462,150 | ||||||||||||||||||||||
| GAAP Ratios: | |||||||||||||||||||||||||||||
| Equity to total assets | 6.95 | % | 7.45 | % | 7.36 | % | 7.46 | % | 7.32 | % | 6.95 | % | 7.32 | % | |||||||||||||||
| Return on average equity | -1.87 | % | 0.78 | % | 0.02 | % | 0.96 | % | 2.10 | % | -0.36 | % | -4.03 | % | |||||||||||||||
| Book value per common share | $ | 15.65 | $ | 16.66 | $ | 16.52 | $ | 16.61 | $ | 16.33 | $ | 15.65 | $ | 16.33 | |||||||||||||||
| Non-GAAP Ratios: | |||||||||||||||||||||||||||||
| Tangible common equity to tangible assets (1) | 6.89 | % | 7.39 | % | 7.30 | % | 7.40 | % | 7.26 | % | 6.89 | % | 7.26 | % | |||||||||||||||
| Return on average tangible common equity (1) | -1.89 | % | 0.79 | % | 0.02 | % | 0.97 | % | 2.12 | % | -0.37 | % | -4.07 | % | |||||||||||||||
| Tangible book value per common share (1) | $ | 15.52 | $ | 16.52 | $ | 16.38 | $ | 16.47 | $ | 16.18 | $ | 15.52 | $ | 16.18 | |||||||||||||||
| (1) | We believe that the use of tangible equity and tangible assets improves the comparability to other institutions that have not engaged in acquisitions that resulted in recorded goodwill and other intangibles. | ||||||||||||||||||||||||||||
Photos accompanying this announcement are available at
https://www.globenewswire.com/NewsRoom/AttachmentNg/43935da2-1fac-45d3-aaa6-7e49c5d48c82
https://www.globenewswire.com/NewsRoom/AttachmentNg/497cc8f7-e380-4650-b771-abaf7d6f38a0
https://www.globenewswire.com/NewsRoom/AttachmentNg/5267f335-4f02-4e57-903c-642aeea8ee39
https://www.globenewswire.com/NewsRoom/AttachmentNg/a1bbf68e-d1dd-4a67-828e-4c138f1be953