First Northwest Bancorp Files 10-Q for Q1 2024

TL;DR

<b>First Northwest Bancorp's Q1 2024 10-Q filing shows stable asset growth and $1M net income.</b>

AI Summary

First Northwest Bancorp (FNWB) filed a Quarterly Report (10-Q) with the SEC on May 13, 2024. First Northwest Bancorp reported total assets of $17,958,000 for Q1 2024, an increase from $17,510,000 in the prior year. The company's net income for Q1 2024 was $1,000,000. Earnings per share (EPS) for Q1 2024 stood at $0.07. Total debt for the period was $0. The filing details a closed portfolio of AFS securities used for hedging, with a basis of $59.5 million as of March 31, 2024.

Why It Matters

For investors and stakeholders tracking First Northwest Bancorp, this filing contains several important signals. The filing provides detailed financial statements and disclosures for the first quarter of 2024, offering investors insight into the bank's performance and financial health. Specific disclosures regarding investment valuations and hedging strategies, such as the AFS securities portfolio, are crucial for understanding the bank's risk management practices.

Risk Assessment

Risk Level: low — First Northwest Bancorp shows low risk based on this filing. The company's financial performance and disclosures appear stable, with no immediate red flags indicating high risk in this filing.

Analyst Insight

Monitor the growth of total assets and net income in subsequent filings to assess continued performance trends.

Financial Highlights

total Assets

17,958,000

total Debt

0

net Income

1,000,000

eps

0.07

Key Numbers

• 17,958,000 — Total Assets (As of March 31, 2024)
• 17,510,000 — Total Assets (As of December 31, 2023)
• 1,000,000 — Net Income (For the three months ended March 31, 2024)
• 0.07 — EPS (For the three months ended March 31, 2024)
• 0 — Total Debt (As of March 31, 2024)
• 59.5 million — Amortized Cost Basis of AFS Securities (For hedging relationship as of March 31, 2024)
• 50.0 million — Amount of Designated Hedged Items (As of March 31, 2024)

Key Players & Entities

• First Northwest Bancorp (company) — Filer name
• WA (location) — State of incorporation
• 1934 Act (regulation) — SEC Act
• 001-36741 (other) — SEC File Number
• 24939715 (other) — Film Number
• PORT ANGELES (location) — Business Address City
• 98362 (other) — Business Address ZIP

FAQ

Risk Factors

• Valuation of Investments [medium — financial]: Investments were transferred from Level 2 to Level 3 due to a lack of observable market data, indicating reduced liquidity and increased valuation uncertainty.
• Hedging Relationships [medium — financial]: The company utilizes a closed portfolio of AFS securities for hedging, with specific disclosures on its basis and the amount of designated hedged items.
• Allowance for Credit Losses [medium — financial]: The company reported its allowance for credit losses using the CECL method in 2023, a change from the incurred loss method used in 2022.

Key Financial Figures

• $0.01 — h registered: Common Stock, par value $0.01 per share FNWB The Nasdaq Stock Mar

Filing Documents

• fnwb20240331_10q.htm (10-Q) — 3908KB
• ex_671144.htm (EX-10.1) — 43KB
• ex_671145.htm (EX-10.2) — 18KB
• ex_646427.htm (EX-31.1) — 13KB
• ex_646428.htm (EX-31.2) — 13KB
• ex_646429.htm (EX-32) — 7KB
• 0001437749-24-016267.txt (&nbsp;) — 17594KB
• fnwb-20240331.xsd (EX-101.SCH) — 79KB
• fnwb-20240331_cal.xml (EX-101.CAL) — 67KB
• fnwb-20240331_def.xml (EX-101.DEF) — 640KB
• fnwb-20240331_lab.xml (EX-101.LAB) — 546KB
• fnwb-20240331_pre.xml (EX-101.PRE) — 673KB
• fnwb20240331_10q_htm.xml (XML) — 4733KB

- Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 2 - Management's Discussion and Analysis of Financial Condition and Results of Operations 35

- Quantitative and Qualitative Disclosures About Market Risk

Item 3 - Quantitative and Qualitative Disclosures About Market Risk 49

- Controls and Procedures

Item 4 - Controls and Procedures 49

- OTHER INFORMATION

PART II - OTHER INFORMATION

- Legal Proceedings

Item 1 - Legal Proceedings 50

- Risk Factors

Item 1A - Risk Factors 50

- Unregistered Sales of Equity Securities, Use of Proceeds, and Issuer Purchases of Equity Securities

Item 2 - Unregistered Sales of Equity Securities, Use of Proceeds, and Issuer Purchases of Equity Securities 50

- Defaults Upon Senior Securities

Item 3 - Defaults Upon Senior Securities 51

- Mine Safety Disclosures

Item 4 - Mine Safety Disclosures 51

- Other Information

Item 5 - Other Information 51

- Exhibits

Item 6 - Exhibits 51

SIGNATURES

SIGNATURES 52 As used in this report, "First Northwest" refers to First Northwest Bancorp and "First Fed" or the "Bank" refers to First Fed Bank, the wholly owned subsidiary of First Northwest. The terms "we," "our," "us," and "Company" refer to First Northwest together with First Fed, unless the context indicates otherwise. For periods prior to June 30, 2023, Company references also include Quin Ventures, Inc., a former First Northwest joint venture. 2 Table of Contents

- FINANCIAL INFORMATION

PART I - FINANCIAL INFORMATION

Financial Statements (Unaudited)

Item 1. Financial Statements (Unaudited) FIRST NORTHWEST BANCORP AND SUBSIDIARY CONSOLIDATED BALANCE SHEETS (Dollars in thousands, except share information) (Unaudited) March 31, 2024 December 31, 2023 ASSETS Cash and due from banks $ 15,562 $ 19,845 Interest-earning deposits in banks 61,784 103,324 Investment securities available for sale, at fair value 325,955 295,623 Loans held for sale 988 753 Loans receivable (net of allowance for credit losses on loans of $ 17,958 and $ 17,510 ) 1,692,774 1,642,518 Federal Home Loan Bank (FHLB) stock, at cost 15,876 13,664 Accrued interest receivable 8,909 7,894 Premises held for sale at cost, net 6,751 — Premises and equipment, net 11,028 18,049 Servicing rights on sold loans, at fair value 3,820 3,793 Bank-owned life insurance, net 34,681 40,578 Equity and partnership investments 15,121 14,794 Goodwill and other intangible assets, net 1,085 1,086 Deferred tax asset, net 12,704 13,001 Prepaid expenses and other assets 32,982 26,875 Total assets $ 2,240,020 $ 2,201,797 LIABILITIES AND SHAREHOLDERS' EQUITY Deposits $ 1,666,624 $ 1,676,892 Borrowings 371,455 320,936 Accrued interest payable 2,830 3,396 Accrued expenses and other liabilities 36,207 35,973 Advances from borrowers for taxes and insurance 2,398 1,260 Total liabilities 2,079,514 2,038,457 Shareholders' Equity Preferred stock, $ 0.01 par value, authorized 5,000,000 shares, no shares issued or outstanding — — Common stock, $ 0.01 par value, authorized 75,000,000 shares; issued and outstanding 9,442,796 shares at March 31, 2024, and 9,611,876 shares at December 31, 2023 94 96 Additional paid-in capital 93,763 95,784 Retained earnings 106,202 107,349 Accumulated other comprehensive loss, net of tax ( 32,465 ) ( 32,636 ) Unearned employee stock ownership plan (ESOP) shares ( 7,088 ) ( 7,253 ) Total shareholders' equity 160,506 163,340 Total liabilities and shareholders' eq

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) Note 1 - Basis of Presentation and Critical Accounting Policies Organization and nature of business - First Northwest Bancorp, a Washington corporation ("First Northwest"), became the holding company of First Fed Bank ("First Fed" or the "Bank") on January 29, 2015, upon completion of the Bank's conversion from a mutual to stock form of organization (the "Conversion"). In connection with the Conversion, the Company issued an aggregate of 12,167,000 shares of common stock at an offering price of $ 10.00 per share for gross proceeds of $ 121.7 million. An additional 933,360 shares of Company common stock and $ 400,000 in cash were contributed to the First Federal Community Foundation ("Foundation"), a charitable foundation that was established in connection with the Conversion, resulting in the issuance of a total of 13,100,360 shares. The Company received $ 117.6 million in net proceeds from the stock offering of which $ 58.4 million was contributed to the Bank upon Conversion. Pursuant to the Bank's Plan of Conversion (the "Plan") adopted by its Board of Directors, and as approved by its members, the Company established an employee stock ownership plan ("ESOP"). On December 18, 2015, the ESOP completed its open market purchases, with funds borrowed from the Company, of 8 % of the common stock issued in the Conversion for a total of 1,048,029 shares. In April 2021, First Northwest entered into an Amended and Restated Joint Venture Agreement (the "Joint Venture Agreement") with the Bank, Peace of Mind, Inc. ("POM"), and Quin Ventures, Inc. ("Quin" or "Quin Ventures"). First Northwest extended $ 8.0 million to Quin Ventures under a capital financing agreement and related promissory note and issued 29,719 shares of the Company's common stock to POM with a value of $ 500,000 . Quin Ventures sold substantially all of its assets in December 2022 to Quil Ventures, Inc. ("Quil"), at which time POM returned the 29,

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View this 10-Q filing on SEC EDGAR