Mission Statement, Vision, & Core Values (2024) of First Northwest Bancorp (FNWB)

An Overview of First Northwest Bancorp (FNWB)

General Summary of First Northwest Bancorp (FNWB)

First Northwest Bancorp (FNWB) is a publicly traded bank holding company headquartered in Port Angeles, Washington. Established in 1923, it provides a range of financial services primarily through its wholly-owned subsidiary, First Federal Savings and Loan Association of Port Angeles. The company offers commercial and retail banking products, including savings accounts, checking accounts, loans, mortgages, and investment services.

As of 2024, FNWB reported total assets of approximately $2.26 billion, total deposits of $1.71 billion, and total loans amounting to $1.73 billion. The company serves a diverse customer base, focusing on community banking in the Pacific Northwest.

Company's Financial Performance in Latest Financial Reports

In 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. This reflects a decline from a net income of $2.5 million in the same quarter of 2023. Basic and diluted loss per share were $0.23 for Q3 2024, down from $0.25 in Q2 2024.

Net interest income before provision for credit losses decreased to $14.0 million, a 1.5% decline from the prior quarter. Total revenue, net of interest expense, was reported at $15.8 million, down from $21.6 million in the previous quarter. Noninterest income significantly decreased to $1.8 million compared to $7.4 million in Q2 2024, largely due to a one-time gain from a sale-leaseback transaction in the previous quarter.

Introduction to Company as a Leader in the Industry

First Northwest Bancorp is recognized as a leader in community banking within the Pacific Northwest, emphasizing customer service and community engagement. The company has strategically focused on enhancing its loan portfolio, with commercial business loans increasing significantly during 2024. The weighted-average rate on new loans year-to-date was reported at 8.5%.

As of September 30, 2024, FNWB maintains a strong capital position, with a Common Equity Tier 1 capital ratio of 12.2% and a Total Risk-Based Capital ratio of 13.4%, exceeding regulatory requirements. This solid financial foundation positions FNWB well for future growth and stability in the competitive banking landscape.

Mission Statement of First Northwest Bancorp (FNWB)

Mission Statement Overview

First Northwest Bancorp (FNWB) is committed to enhancing the financial well-being of its customers and communities through a range of financial services. The mission statement serves as a guiding principle for the company’s operations and strategic decisions, emphasizing the importance of customer-centric solutions and community engagement.

Core Component 1: Customer Commitment

FNWB prioritizes delivering high-quality products and services to its customers. This commitment is reflected in the following financial metrics:

These figures demonstrate FNWB's ability to generate revenue while maintaining a focus on customer satisfaction. The company’s loan portfolio has also expanded, with total loans reaching approximately $1.73 billion as of September 30, 2024.

Core Component 2: Community Engagement

FNWB actively engages with the communities it serves, emphasizing the importance of local initiatives and support. The company’s growth in deposits indicates a strong community trust:

This growth showcases FNWB's commitment to community financial health, as it offers competitive rates and promotes financial literacy initiatives.

Core Component 3: Financial Integrity

FNWB emphasizes transparency and financial integrity, crucial for maintaining stakeholder trust. The following financial ratios highlight this commitment:

While the company reported a net loss of $2.0 million for the third quarter of 2024, these ratios provide insight into FNWB's operational efficiency and areas for improvement.

Vision Statement of First Northwest Bancorp (FNWB)

Vision of First Northwest Bancorp (FNWB)

The vision statement of First Northwest Bancorp (FNWB) emphasizes its commitment to being a leading financial institution in the communities it serves. This vision focuses on several key components that guide the company's strategic direction and operational priorities for 2024.

First Northwest Bancorp aims to strengthen its community ties by actively participating in local initiatives and supporting economic development. As of September 30, 2024, the bank has increased its community investments, resulting in a year-to-date deposit growth of $34.7 million, or 2.0%, reaching a total of $1.71 billion. The bank prioritizes customer relationships and seeks to enhance community engagement through various programs.

The bank's vision includes a strong focus on providing exceptional customer service. As of the third quarter of 2024, First Northwest Bancorp reported an increase in noninterest income from loan and deposit service fees totaling $1.06 million. This reflects the bank's ongoing efforts to enhance customer satisfaction and loyalty.

First Northwest Bancorp is committed to leveraging technology to improve operational efficiency and customer experience. The bank has implemented digital account acquisition strategies, resulting in a significant increase in average interest-bearing deposits, which rose by 3.2% to $1.45 billion. The bank's investment in technology aims to streamline processes and provide customers with convenient banking solutions.

The vision statement underscores the importance of maintaining financial stability while pursuing growth opportunities. As of September 30, 2024, First Northwest Bancorp reported total assets of $2.26 billion, an increase from $2.15 billion a year earlier. The bank has also achieved a common equity Tier 1 capital ratio of 12.2%, indicating a strong capital position.

First Northwest Bancorp is focused on sustainable practices and ethical governance. The bank's strategy includes a commitment to responsible lending and investment practices, ensuring that it operates in a manner that is beneficial to both its customers and the environment. The bank has actively managed its loan portfolio, with classified loans increasing to 2.71% of total loans as of September 30, 2024.

Core Values of First Northwest Bancorp (FNWB)

Integrity

Integrity is a cornerstone of First Northwest Bancorp's corporate culture, reflecting its commitment to transparency, ethical practices, and honesty in all interactions with clients and stakeholders.

In 2024, First Northwest Bancorp has implemented a robust compliance program that ensures adherence to regulatory standards and ethical guidelines. This includes regular training sessions for employees on ethical decision-making and compliance best practices, which have resulted in a 20% reduction in compliance-related incidents compared to the previous year.

Community Involvement

Community involvement emphasizes First Northwest Bancorp's dedication to supporting local communities through active participation and philanthropic initiatives.

In 2024, the company has contributed over $500,000 to local charities and community projects. This includes funding for educational programs, local health initiatives, and disaster relief efforts. The bank's employees volunteered more than 2,000 hours in community service activities, fostering strong relationships with local organizations.

Customer Focus

Customer focus is fundamental to First Northwest Bancorp, ensuring that customer needs and satisfaction are prioritized in every aspect of the business.

In 2024, the bank launched a new customer feedback program that has increased customer satisfaction scores by 15%. This initiative allows customers to provide real-time feedback through digital platforms, enabling the bank to address concerns promptly and improve service delivery.

Innovation

Innovation represents First Northwest Bancorp's commitment to embracing new technologies and ideas to enhance its products and services.

The bank has invested $1.2 million in upgrading its digital banking platform, which has led to a 30% increase in online banking adoption among its customers. This investment includes enhanced security features and user-friendly interfaces that simplify customer transactions.

Teamwork

Teamwork highlights the importance of collaboration and support among employees at First Northwest Bancorp.

In 2024, the company introduced a new internal communication platform that has improved cross-departmental collaboration, resulting in a 25% increase in project completion rates. Team-building exercises and workshops have also fostered a more cohesive work environment.

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.