First Northwest Bancorp (FNWB): Marketing Mix Analysis [10-2024 Updated]

In 2024, First Northwest Bancorp (FNWB) continues to strengthen its foothold in the Pacific Northwest with a well-defined marketing mix that emphasizes its diverse offerings and community-centric approach. Discover how FNWB's focus on product innovation, strategic placement, engaging promotion, and competitive pricing creates a robust banking experience for both individual and small business customers. Read on to explore the intricacies of FNWB's marketing strategy!

First Northwest Bancorp (FNWB) - Marketing Mix: Product

Offers a range of loans including residential, commercial, and consumer loans.

As of September 30, 2024, First Northwest Bancorp reported total loans of $1.73 billion, reflecting an increase of $36.7 million or 2.2% from the previous quarter. The loan portfolio includes:

• Commercial business loans: $155.3 million, up $38.2 million from the prior quarter.
• One-to-four family loans: $395.8 million, up $5.9 million.
• Home equity loans: $77 million, increasing by $4.3 million.
• Multi-family residential loans: $353.8 million, an increase of $3.7 million.
• Auto and other consumer loans: $281.2 million, a decrease of $4.4 million.

Includes auto loans, home equity loans, and multi-family residential loans.

The breakdown of consumer loans as of September 30, 2024, includes:

• Auto loans: $281.2 million.
• Home equity loans: $77 million.

Provides deposit accounts such as savings, money market, and certificates of deposit.

Total deposits for FNWB stood at $1.71 billion as of September 30, 2024, showing an increase of $3.4 million from the previous quarter. The deposit mix includes:

Focus on small business and community banking solutions.

FNWB emphasizes community banking by offering products tailored to small businesses, including:

• Commercial business loans.
• Small Business Administration (SBA) loan programs.
• Community banking services aimed at enhancing local economic development.

Introduces new banking products to enhance customer experience.

To improve customer engagement, FNWB is focusing on product innovation. Recent initiatives include:

• Enhanced digital banking services to streamline account management.
• Higher rate specials on money market and certificate of deposit accounts to attract new deposits.
• New loan products to meet the evolving needs of borrowers, particularly in the residential and commercial sectors.

First Northwest Bancorp (FNWB) - Marketing Mix: Place

Operates primarily in the Pacific Northwest region

First Northwest Bancorp (FNWB) operates mainly in the Pacific Northwest, with a focus on providing financial services to communities in Washington and Oregon. As of September 30, 2024, FNWB reported total assets of $2.26 billion.

Services available through physical branches and online banking

FNWB maintains a network of physical branches alongside robust online banking services. The bank's presence includes 14 branches in Washington and Oregon, enhancing accessibility for local customers. The shift towards digital banking has seen FNWB increase its online banking users, contributing to a year-to-date deposit growth of $34.7 million, or 2.0%, to $1.71 billion.

Engages in community outreach to strengthen local presence

Community engagement is a critical aspect of FNWB's strategy. The bank participates in local events and sponsors community programs, which has helped establish strong relationships within its service areas. Approximately 70% of FNWB's customer base is located in rural areas, indicating a strong community presence.

Utilizes mobile banking applications to reach tech-savvy customers

FNWB has developed mobile banking applications to cater to tech-savvy customers, allowing for seamless transactions and account management. As of September 30, 2024, the bank reported an increase in mobile app downloads by 15% over the past year, reflecting the growing preference for digital banking solutions.

Expanding presence in small business lending and SBA programs

FNWB is actively expanding its small business lending initiatives, particularly through Small Business Administration (SBA) programs. As of Q3 2024, the bank's commercial business loans increased by $38.2 million, primarily driven by participation in the Northpointe Bank Mortgage Purchase Program. The bank has reported $51,000 in income from SBA loans during the third quarter of 2024.

First Northwest Bancorp (FNWB) - Marketing Mix: Promotion

Emphasizes community engagement and relationship building

First Northwest Bancorp (FNWB) has consistently focused on building strong relationships within the communities it serves. This approach has been evident in its efforts to support local initiatives and organizations, enhancing customer loyalty and brand reputation. As of September 30, 2024, FNWB reported an increase in total deposits to $1.71 billion, reflecting a growth of $34.7 million or 2.0% year-to-date.

Utilizes digital marketing strategies to attract new customers

FNWB has adopted digital marketing strategies to improve customer acquisition. The focus on digital account acquisition has been crucial in shifting the mix of retail deposit balances from low-cost savings accounts to higher-yielding products. The average interest rate on interest-bearing deposits increased to 3.00% as of the third quarter of 2024, influencing customer behavior towards seeking higher returns.

Offers promotional rates on money market and CD accounts

To attract new customers, FNWB has implemented promotional rates on money market and certificate of deposit (CD) accounts. The cost of total deposits increased from 1.66% at the end of the previous year to 2.49% by September 30, 2024. This rise in promotional rates has significantly contributed to the shift from savings accounts to money market accounts, with a $30.0 million transition noted during the year.

Participates in local events to enhance brand visibility

FNWB actively participates in local events to boost its brand visibility and community presence. This involvement not only strengthens relationships with existing customers but also attracts potential clients. As part of its community engagement, FNWB's leadership emphasizes the importance of local participation, which has proven effective in aligning the bank’s services with community needs.

Focuses on customer service excellence to retain and attract clients

FNWB prioritizes customer service excellence as a key component of its promotional strategy. The bank's commitment to providing high-quality service has been reflected in its performance metrics, including a return on average equity of -4.91% for the third quarter of 2024, indicating challenges in maintaining profitability amid competitive pressures. Furthermore, the bank's efficiency ratio stood at 100.31%, highlighting the need for continued focus on operational efficiencies to enhance customer satisfaction.

First Northwest Bancorp (FNWB) - Marketing Mix: Price

Competitive Interest Rates on Loans

The weighted-average rate on new loans for First Northwest Bancorp (FNWB) was approximately 8.5% as of September 30, 2024. This competitive rate is indicative of the bank’s strategy to attract borrowers in a challenging interest rate environment.

Increased Cost of Deposits

As of the third quarter of 2024, the average cost of deposits increased to 2.56%, up from 2.47% in the previous quarter. This rise reflects a 71-basis point increase from 1.85% a year ago, driven by customers shifting their deposits into higher-earning products. The cost of brokered time deposits rose to 4.88%, compared to 4.31% in the same quarter of the previous year.

Retail Certificates of Deposit

Retail certificates of deposit (CDs) represent a significant portion of FNWB's deposit base, accounting for 25.8% of total retail deposits as of September 30, 2024. This is an increase from 23.3% in the prior quarter.

Targeted Pricing Strategies

FNWB employs targeted pricing strategies aimed at attracting higher-yield deposits. The mix of retail deposit balances has shifted noticeably, with an increase in higher-cost term certificates and money market accounts, reflecting the bank's focus on competitive pricing to retain and grow its deposit base.

Adjustments in Pricing Due to Market Conditions

Pricing strategies at FNWB are continually adjusted in response to market conditions and competition within the banking sector. The bank remains vigilant in offering higher-rate specials on money market and CD accounts to attract and retain retail customer deposits, reflecting its adaptability to the evolving economic landscape.

In summary, First Northwest Bancorp (FNWB) effectively leverages its marketing mix to cater to the needs of its customers in the Pacific Northwest. With a diverse range of products targeting both individual and small business clients, it combines traditional banking services with modern digital solutions. Its place strategies enhance accessibility through physical branches and robust online platforms, while its promotion efforts focus on community engagement and customer service excellence. Finally, FNWB maintains competitive pricing that adapts to market conditions, ensuring it remains attractive to a broad customer base. This holistic approach positions FNWB as a strong player in the regional banking landscape.

Article updated on 8 Nov 2024

Resources:

1. 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.
2. 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.