First Northwest Bancorp Q2 2024 10-Q Filed

TL;DR

**FNWB Q2 10-Q:** Assets $21.5M, Liabs $17.5M. Some investments moved to Level 3 due to market inactivity.

AI Summary

First Northwest Bancorp filed its 10-Q for the period ending June 30, 2024. The company reported total assets of $21.462 million and total liabilities of $17.510 million. The filing also details changes in asset valuation, specifically mentioning a transfer of investments from Level 2 to Level 3 due to a lack of observable market data.

Why It Matters

This filing provides insight into the financial health and asset valuation methods of First Northwest Bancorp, which can impact investor confidence and stock performance.

Risk Assessment

Risk Level: medium — The transfer of assets to Level 3 valuation indicates potential illiquidity or difficulty in determining fair market value, which can introduce uncertainty.

Key Numbers

• $21.462M — Total Assets (As of June 30, 2024)
• $17.510M — Total Liabilities (As of June 30, 2024)
• 5,000,000 — Common Stock (Par value of common stock)

Key Players & Entities

• First Northwest Bancorp (company) — Filer of the 10-Q
• 20240630 (date) — End of the reporting period
• $21,462 (dollar_amount) — Total assets
• $17,510 (dollar_amount) — Total liabilities
• Level 3 (other) — Asset valuation category

FAQ

Key Financial Figures

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

Filing Documents

• fnwb20240522_10q.htm (10-Q) — 4858KB
• ex_678667.htm (EX-31.1) — 13KB
• ex_678668.htm (EX-31.2) — 13KB
• ex_678669.htm (EX-32) — 7KB
• 0001437749-24-026106.txt ( ) — 20285KB
• fnwb-20240630.xsd (EX-101.SCH) — 87KB
• fnwb-20240630_cal.xml (EX-101.CAL) — 75KB
• fnwb-20240630_def.xml (EX-101.DEF) — 691KB
• fnwb-20240630_lab.xml (EX-101.LAB) — 589KB
• fnwb-20240630_pre.xml (EX-101.PRE) — 734KB
• fnwb20240522_10q_htm.xml (XML) — 5500KB

- 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 40

- Quantitative and Qualitative Disclosures About Market Risk

Item 3 - Quantitative and Qualitative Disclosures About Market Risk 60

- Controls and Procedures

Item 4 - Controls and Procedures 60

- OTHER INFORMATION

PART II - OTHER INFORMATION

- Legal Proceedings

Item 1 - Legal Proceedings 61

- Risk Factors

Item 1A - Risk Factors 61

- 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 61

- Defaults Upon Senior Securities

Item 3 - Defaults Upon Senior Securities 62

- Mine Safety Disclosures

Item 4 - Mine Safety Disclosures 62

- Other Information

Item 5 - Other Information 62

- Exhibits

Item 6 - Exhibits 62

SIGNATURES

SIGNATURES 63 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) June 30, 2024 December 31, 2023 ASSETS Cash and due from banks $ 19,184 $ 19,845 Interest-earning deposits in banks 63,995 103,324 Investment securities available for sale, at fair value 306,714 295,623 Loans held for sale 1,086 753 Loans receivable (net of allowance for credit losses on loans of $ 21,462 and $ 17,510 ) 1,682,282 1,642,518 Federal Home Loan Bank (FHLB) stock, at cost 13,086 13,664 Accrued interest receivable 9,466 7,894 Premises and equipment, net 10,714 18,049 Servicing rights on sold loans, at fair value 3,740 3,793 Bank-owned life insurance, net 41,113 40,578 Equity and partnership investments 15,085 14,794 Goodwill and other intangible assets, net 1,084 1,086 Deferred tax asset, net 12,216 13,001 Prepaid expenses and other assets 39,873 26,875 Total assets $ 2,219,638 $ 2,201,797 LIABILITIES AND SHAREHOLDERS' EQUITY Deposits $ 1,708,288 $ 1,676,892 Borrowings 302,575 320,936 Accrued interest payable 3,143 3,396 Accrued expenses and other liabilities 41,810 35,973 Advances from borrowers for taxes and insurance 1,304 1,260 Total liabilities 2,057,120 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 9,453,247 shares at June 30, 2024, and 9,611,876 shares at December 31, 2023 94 96 Additional paid-in capital 93,985 95,784 Retained earnings 106,959 107,349 Accumulated other comprehensive loss, net of tax ( 31,597 ) ( 32,636 ) Unearned employee stock ownership plan (ESOP) shares ( 6,923 ) ( 7,253 ) Total shareholders' equity 162,518 163,340 Total liabilities and shareholders' equity $ 2,219,638 $ 2,201,797 See selected no

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