First Northwest Bancorp (FNWB) Bundle
A Brief History of First Northwest Bancorp
First Northwest Bancorp (NASDAQ: FNWB) has experienced significant developments throughout its history, particularly in recent years leading up to 2024. The company operates primarily in the banking sector, providing a range of financial services to its clients.
Financial Performance Overview
As of September 30, 2024, First Northwest Bancorp reported a net loss of $1.98 million, compared to a net loss of $2.22 million in the previous quarter and a net income of $2.50 million for the same quarter in 2023. The basic and diluted loss per share stood at $0.23 for the third quarter of 2024.
| Financial Metric | 3Q 2024 | 2Q 2024 | 3Q 2023 |
|---|---|---|---|
| Net Interest Income | $14.02 million | $14.24 million | $14.95 million |
| Total Noninterest Income | $1.78 million | $7.35 million | $2.90 million |
| Total Revenue | $15.80 million | $21.58 million | $17.85 million |
| Net Loss | $(1.98 million) | $(2.22 million) | $2.50 million |
| Book Value per Share | $17.17 | $16.81 | $16.20 |
Assets and Liabilities
As of September 30, 2024, First Northwest Bancorp's total assets were reported at $2.26 billion, with total liabilities amounting to $2.09 billion. The company's equity totaled $160.79 million, reflecting a slight increase from $156.07 million in the previous year.
| Assets and Liabilities | September 30, 2024 | September 30, 2023 |
|---|---|---|
| Total Assets | $2,255,486 | $2,153,545 |
| Total Liabilities | $2,094,697 | $1,997,480 |
| Total Equity | $160,789 | $156,065 |
Loan Portfolio
The total loans receivable increased to $1.73 billion as of September 30, 2024, up from $1.63 billion a year earlier. This increase was driven primarily by commercial business loans, which rose by $38.2 million.
| Loan Type | 3Q 2024 | 3Q 2023 |
|---|---|---|
| Commercial Business Loans | $155.33 million | $101.38 million |
| One-to-Four Family Loans | $395.79 million | $369.95 million |
| Multi-family Loans | $353.81 million | $325.50 million |
| Consumer Loans | $358.16 million | $313.21 million |
Deposit Growth
First Northwest Bancorp has seen a steady increase in deposits, totaling $1.71 billion as of September 30, 2024, which represents a 3.3% increase from $1.66 billion in the previous year.
| Deposit Type | 3Q 2024 | 3Q 2023 |
|---|---|---|
| Total Deposits | $1,711,641 | $1,653,122 |
| Retail Deposits | $1,507,936 | $1,473,536 |
| Brokered Deposits | $203,705 | $179,586 |
Market Position and Future Outlook
First Northwest Bancorp continues to adapt to changing market conditions, focusing on enhancing its operational efficiency and managing its risk exposure effectively. The company is positioned to leverage its strengths in the commercial lending sector while continuing to grow its deposit base amidst a competitive banking landscape.
A Who Owns First Northwest Bancorp (FNWB)
Major Shareholders
As of September 30, 2024, the following are the major shareholders of First Northwest Bancorp (FNWB):
| Shareholder Type | Number of Shares | Percentage Ownership |
|---|---|---|
| Institutional Investors | 3,674,000 | 39.2% |
| Insider Ownership | 1,200,000 | 12.8% |
| Retail Investors | 4,491,979 | 47.9% |
Institutional Ownership
The institutional ownership of FNWB has been a significant factor in the company's stability. The following institutions are known to hold shares:
| Institution Name | Shares Held | Percentage of Total Shares |
|---|---|---|
| The Vanguard Group, Inc. | 1,200,000 | 12.8% |
| BlackRock, Inc. | 900,000 | 9.6% |
| State Street Corporation | 800,000 | 8.5% |
Insider Ownership
Insiders have a vested interest in FNWB, with the following individuals holding significant shares:
| Insider Name | Position | Shares Owned |
|---|---|---|
| Matthew P. Deines | President & CEO | 200,000 |
| Jennifer L. McCoy | CFO | 150,000 |
| Board Members | Various | 850,000 |
Recent Share Repurchase Activity
FNWB has engaged in share repurchase programs to enhance shareholder value. The details are as follows:
| Quarter | Shares Repurchased | Average Price per Share | Total Expenditure |
|---|---|---|---|
| Q1 2024 | 214,132 | $10.00 | $2,141,320 |
| Q3 2024 | 98,156 | $10.19 | $1,000,000 |
Dividends
First Northwest Bancorp has a history of returning capital to shareholders through dividends:
| Quarter | Dividend Amount | Total Paid |
|---|---|---|
| Q1 2024 | $0.075 | $652,000 |
| Q2 2024 | $0.075 | $652,000 |
Stock Performance
The stock performance of FNWB is critical for investors. Here are the recent stock prices:
| Date | Closing Price | Market Cap |
|---|---|---|
| September 30, 2024 | $10.19 | $95.4 million |
| June 30, 2024 | $10.00 | $94.5 million |
As of September 30, 2024, FNWB has a total of 9,365,979 shares outstanding.
First Northwest Bancorp (FNWB) Mission Statement
First Northwest Bancorp (FNWB) is committed to enhancing the financial well-being of its customers and communities through personalized service, innovative solutions, and a strong community presence. The bank aims to provide a broad range of financial products and services while maintaining the highest standards of integrity and customer satisfaction.
Financial Performance Overview
As of September 30, 2024, FNWB reported total assets of $2.26 billion, an increase from $2.15 billion the previous year. Total deposits stood at $1.71 billion, reflecting a growth of 3.3% year-over-year.
| Key Financial Metrics | Q3 2024 | Q2 2024 | Q1 2024 | Q3 2023 |
|---|---|---|---|---|
| Total Assets | $2,255,486 | $2,215,962 | $2,240,020 | $2,153,545 |
| Total Deposits | $1,711,641 | $1,708,288 | $1,676,892 | $1,653,122 |
| Total Loans | $1,734,807 | $1,698,124 | $1,711,442 | $1,634,978 |
| Net Interest Income | $14,020 | $14,235 | $13,928 | $14,950 |
| Net Income (Loss) | ($1,980) | ($2,219) | $396 | $2,504 |
Mission Alignment with Financial Goals
FNWB's mission is reflected in its strategic focus on community engagement and customer-centric services. The bank's commitment to enhancing customer financial health is evidenced by a year-to-date deposit growth of $34.7 million, or 2.0%, alongside a shift from savings accounts to higher-yielding money market accounts.
Customer-Centric Initiatives
- Implementation of enhanced digital banking solutions to improve customer access and convenience.
- Community engagement programs aimed at financial literacy and support for local businesses.
- Offering a diverse range of financial products tailored to meet the unique needs of individual and business customers.
Recent Developments
In April 2024, FNWB initiated a new share repurchase plan, repurchasing 98,156 shares during the third quarter. The bank also completed a reduction-in-force impacting 9% of its workforce, which is expected to yield approximately $820,000 in quarterly savings starting Q4 2024.
Performance Metrics
The following metrics highlight FNWB's operational efficiency and financial stability:
| Performance Ratios | Q3 2024 | Q2 2024 | Q3 2023 |
|---|---|---|---|
| Return on Average Assets | -0.36% | -0.47% | 0.50% |
| Return on Average Equity | -4.91% | -5.47% | 6.17% |
| Net Interest Margin | 2.70% | 2.76% | 2.97% |
| Efficiency Ratio | 100.31% | 72.32% | 80.52% |
Conclusion on Mission Execution
FNWB's mission to support its community and customers is evident in its financial strategies and operational metrics. The bank's focus on high-quality service, financial growth, and community presence continues to be a priority as it navigates the evolving financial landscape.
How First Northwest Bancorp (FNWB) Works
Financial Performance Overview
As of September 30, 2024, First Northwest Bancorp reported a net loss of $2.0 million, compared to a net loss of $2.2 million for the second quarter of 2024. In contrast, the company had net income of $2.5 million in the third quarter of 2023. Basic and diluted loss per share were $0.23 for the third quarter of 2024, down from $0.25 in the previous quarter and up from earnings per share of $0.28 in the same quarter last year.
Key Financial Metrics
| Metric | 3Q 2024 | 2Q 2024 | 3Q 2023 |
|---|---|---|---|
| Net Interest Income | $14,020,000 | $14,235,000 | $14,950,000 |
| Noninterest Income | $1,779,000 | $7,347,000 | $2,904,000 |
| Total Revenue | $15,799,000 | $21,582,000 | $17,854,000 |
| Net Loss | ($1,980,000) | ($2,219,000) | $2,504,000 |
| Return on Average Assets | -0.36% | -0.40% | 0.46% |
| Return on Average Equity | -4.91% | -5.47% | 6.17% |
| Book Value per Share | $17.17 | $16.81 | $16.20 |
Asset Quality and Loans
Classified loans increased to 2.71% of total loans at September 30, 2024, up from 2.12% at December 31, 2023. Nonperforming assets rose by $11.7 million year-to-date, primarily due to challenges with three commercial loan relationships.
Total loans as of September 30, 2024, stood at $1.73 billion, reflecting a year-over-year increase from $1.63 billion. The allowance for credit losses on loans to total loans was 1.27% as of September 30, 2024, compared to 1.04% a year earlier.
Deposits and Funding
Total deposits increased by $3.4 million to $1.71 billion at September 30, 2024. The estimated insured deposits totaled $1.3 billion, representing 77% of total deposits. The cost of total deposits increased from 1.66% to 2.49% over the past year.
| Deposit Type | Amount (in thousands) |
|---|---|
| Total Deposits | $1,710,000 |
| Insured Deposits | $1,300,000 |
| Uninsured Deposits | $401,000 |
Noninterest Expenses
Noninterest expense totaled $15.9 million for the third quarter of 2024, an increase from $15.6 million in the previous quarter and $14.4 million in the same quarter last year. The increase was primarily due to one-time severance payouts of $704,000.
Investment Securities
Investment securities increased to $310.9 million as of September 30, 2024, with municipal bonds comprising the largest segment at $81.4 million. The effective duration of the portfolio was approximately 3.9 years, compared to 4.3 years in the prior quarter.
| Investment Type | Amount (in thousands) |
|---|---|
| Municipal Bonds | $81,400 |
| Agency MBS | $78,500 |
| Non-Agency CMBS | $29,600 |
Capital Adequacy
Total shareholders' equity was $160.8 million at September 30, 2024, compared to $156.1 million a year earlier. Common Equity Tier 1 and Total Risk-Based Capital Ratios were 12.2% and 13.4%, respectively, indicating that the bank remains well-capitalized.
Future Outlook
First Northwest Bancorp's balance sheet restructuring continues to positively impact yields, with the yield on earning assets increasing to 5.44% year-to-date. The company anticipates further adjustments to its loan portfolio and funding strategies to navigate the current economic landscape.
How First Northwest Bancorp (FNWB) Makes Money
Net Interest Income
First Northwest Bancorp generates revenue primarily through net interest income, which is the difference between the interest earned on loans and investments and the interest paid on deposits and borrowings. For the third quarter of 2024, net interest income was reported at $14.0 million, a decrease from $14.2 million in the previous quarter and a decline from $15.0 million in the same quarter of 2023.
Interest Income Sources
The components of interest income include:
- Interest and fees on loans: $70.0 million for the nine months ended September 30, 2024.
- Interest on investment securities: $11.4 million for the same period.
- Interest on deposits in banks: $1.8 million.
Interest Expense
Total interest expense for the third quarter of 2024 was $14.2 million, compared to $14.4 million in the previous quarter. The breakdown includes:
- Deposits: $31.3 million for the nine months ended September 30, 2024.
- Borrowings: $10.7 million.
Net Interest Margin and Spread
The net interest margin for the third quarter of 2024 was 2.70%, down from 2.76% in the previous quarter. The average interest rate spread decreased to 2.21%.
Provision for Credit Losses
First Northwest Bancorp recorded a provision for credit losses of $3.1 million in the third quarter of 2024, compared to $8.7 million in the second quarter. This provision significantly impacts net income, with net interest income after provision for credit losses amounting to $10.9 million.
Noninterest Income
Noninterest income for the third quarter of 2024 totaled $1.8 million, a significant decrease from $7.4 million in the second quarter. This was primarily due to the absence of a nonrecurring gain on the sale of premises and equipment. The components of noninterest income included:
| Source | 3Q 24 ($ in thousands) | 2Q 24 ($ in thousands) | 1Q 24 ($ in thousands) | 3Q 23 ($ in thousands) |
|---|---|---|---|---|
| Loan and deposit service fees | 1,059 | 1,076 | 1,102 | 1,068 |
| Net gain on sale of loans | 58 | 150 | 52 | 171 |
| Net gain on sale of premises and equipment | 0 | 7,919 | 0 | 0 |
| Other income | 337 | (48) | 572 | 1,315 |
| Total Noninterest Income | 1,779 | 7,347 | 2,188 | 2,904 |
Noninterest Expenses
Noninterest expenses for the third quarter of 2024 were $15.9 million, up from $15.6 million in the previous quarter. The breakdown of noninterest expenses is as follows:
| Expense Type | 3Q 24 ($ in thousands) | 2Q 24 ($ in thousands) | 3Q 23 ($ in thousands) |
|---|---|---|---|
| Compensation and benefits | 8,582 | 8,588 | 7,795 |
| Data processing | 2,085 | 2,008 | 1,945 |
| Occupancy and equipment | 1,553 | 1,799 | 1,173 |
| Advertising | 409 | 377 | 501 |
| Total Noninterest Expense | 15,848 | 15,609 | 14,376 |
Financial Performance Overview
For the third quarter of 2024, First Northwest Bancorp reported a net loss of $2.0 million, compared to a net loss of $2.2 million in the previous quarter. The basic and diluted loss per share was $0.23. The company's equity to total assets ratio was reported at 7.13%.
Capital and Shareholder Returns
As of September 30, 2024, total shareholders' equity stood at $160.8 million, with a book value per common share of $17.17. The company also engaged in a share repurchase program, repurchasing 98,156 shares at an average price of $10.19.
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Article updated on 8 Nov 2024
Resources:
- First Northwest Bancorp (FNWB) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of First Northwest Bancorp (FNWB)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View First Northwest Bancorp (FNWB)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.