Operational inefficiency remains a primary concern, with the efficiency ratio frequently exceeding 60% and reaching a peak of 72.7% in 2023Q4.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Jun'17 | Jun'16 | Jun'15 | Jun'14 | Jun'13 | Jun'12 | Jun'11 |
|---|
| Net Interest Income | 57.28M | 56.38M | 55.1M | 60.55M | 69.36M | 58.11M | 43.7M | 37.53M | 36.48M | 0 | 31.52M | 27.3M | 22.88M | 21.82M | 19.8M | 19.8M | 21.16M |
| NII Growth % | 16.53% | 2.31% | -9% | -12.7% | 19.37% | 32.96% | 16.44% | 2.88% | - | -100% | 15.46% | 19.29% | 4.87% | 10.23% | -0.04% | -6.41% | - |
| Net Interest Margin % | 2.68% | 2.67% | 2.47% | 2.75% | 3.4% | 3.02% | 2.64% | 2.87% | 2.9% | 0% | 2.9% | 2.7% | 2.44% | 2.74% | 2.52% | 2.57% | 2.83% |
| Interest Income | 104.9M | 106.08M | 111.13M | 100.02M | 79.88M | 63.48M | 51.43M | 48.98M | 45.49M | 0 | 36.68M | 32.07M | 27.48M | 26.55M | 25.8M | 26.94M | 29.42M |
| Interest Expense | 47.62M | 49.7M | 56.02M | 39.47M | 10.52M | 5.37M | 7.72M | 11.45M | 9.01M | 0 | 5.16M | 4.77M | 4.59M | 4.73M | 6M | 7.14M | 8.26M |
| Loan Loss Provision | -882K | 6.83M | 16.5M | 1.32M | 1.53M | 1.35M | 5.05M | 669K | 1.17M | 0 | 1.26M | 233K | 0 | 1.31M | 1.38M | 7.97M | 926K |
| Non-Interest Income | -964K | 1.11M | 5.91M | 4.9M | 10.83M | 15.83M | 16.1M | 7.28M | 6.16M | 46.61M | 6.3M | 6.28M | 4.72M | 5M | 5.57M | 5.4M | 4.62M |
| Non-Interest Income % | -0.93% | 1.04% | 5.05% | 4.67% | 11.94% | 19.96% | 23.84% | 12.93% | 11.93% | 100% | 14.66% | 16.38% | 14.66% | 15.85% | 17.75% | 16.69% | 13.58% |
| Total Revenue | 103.94M | 107.19M | 117.03M | 104.92M | 90.7M | 79.31M | 67.53M | 56.26M | 51.66M | 46.61M | 42.98M | 38.35M | 32.19M | 31.55M | 31.36M | 32.34M | 34.04M |
| Revenue Growth % | -47.41% | -8.41% | 11.55% | 15.67% | 14.37% | 17.45% | 20.03% | 8.91% | 10.83% | 8.45% | 12.07% | 19.12% | 2.04% | 0.6% | -3.03% | -4.99% | - |
| Non-Interest Expense | 53.22M | 56.53M | 52.07M | 61.45M | 62.31M | 54.41M | 41.46M | 33.05M | 32.79M | 28.2M | 29.78M | 27.9M | 33.05M | 22.1M | 21.18M | 20.99M | 19.77M |
| Efficiency Ratio | 51.2% | 52.74% | 44.49% | 58.57% | 68.7% | 68.61% | 61.4% | 58.75% | 63.48% | 60.51% | 69.29% | 72.75% | 102.65% | 70.06% | 67.53% | 64.91% | 58.07% |
| Operating Income | 3.98M | -5.87M | -7.56M | 2.67M | 16.34M | 18.17M | 13.29M | 11.09M | 8.68M | 7.29M | 6.78M | 5.45M | -5.44M | 3.41M | 2.74M | -3.76M | 5.09M |
| Operating Margin % | 3.83% | -5.47% | -6.46% | 2.55% | 18.02% | 22.91% | 19.69% | 19.71% | 16.8% | 15.64% | 15.78% | 14.21% | -16.91% | 10.8% | 8.74% | -11.63% | 14.95% |
| Operating Income Growth % | - | 22.38% | -382.5% | -83.63% | -10.07% | 36.7% | 19.86% | 27.78% | 19.07% | 7.52% | 24.43% | 200.09% | -259.74% | 24.38% | 172.87% | -173.87% | - |
| Pretax Income | 3.98M | -5.87M | -7.56M | 2.67M | 16.34M | 18.17M | 13.29M | 11.09M | 8.68M | 7.4M | 6.78M | 5.45M | -5.44M | 3.41M | 2.74M | -3.76M | 5.09M |
| Pretax Margin % | 3.83% | -5.47% | -6.46% | 2.55% | 18.02% | 22.91% | 19.69% | 19.71% | 16.8% | 15.88% | 15.78% | 14.21% | -16.91% | 10.8% | 8.74% | -11.63% | 14.95% |
| Income Tax | -870K | -1.68M | -944K | 549K | 2.85M | 3.19M | 2.95M | 2.08M | 1.57M | 4.08M | 1.66M | 1.46M | -354K | 740K | 422K | -1.8M | 1.2M |
| Effective Tax Rate % | -21.85% | 28.55% | 12.49% | 20.52% | 17.42% | 17.58% | 22.22% | 18.73% | 18.15% | 55.17% | 24.51% | 26.74% | 6.5% | 21.71% | 15.4% | 47.87% | 23.48% |
| Net Income | 4.85M | -4.19M | -6.61M | 2.29M | 15.64M | 15.42M | 10.34M | 9.01M | 7.11M | 3.32M | 5.12M | 3.99M | -5.09M | 2.67M | 2.32M | -1.96M | 3.9M |
| Net Margin % | 4.67% | -3.91% | -5.65% | 2.18% | 17.25% | 19.44% | 15.31% | 16.02% | 13.75% | 7.12% | 11.91% | 10.41% | -15.81% | 8.46% | 7.39% | -6.06% | 11.44% |
| Net Income Growth % | 130.23% | 36.62% | -389.28% | -85.39% | 1.47% | 49.11% | 14.71% | 26.87% | 114.14% | -35.17% | 28.21% | 178.43% | -290.78% | 15.1% | 218.27% | -150.32% | - |
| Net Income (Continuing) | 4.85M | -4.19M | -6.61M | 2.13M | 13.5M | 14.98M | 10.34M | 9.01M | 7.11M | 3.32M | 5.12M | 3.99M | -5.09M | 2.67M | 2.32M | -1.96M | 3.9M |
| EPS (Diluted) | 0.55 | -0.48 | -0.75 | 0.25 | 1.71 | 1.62 | 1.10 | 0.91 | 0.68 | 0.31 | 0.46 | 0.33 | -0.39 | 0.22 | 0.19 | -0.16 | 0.32 |
| EPS Growth % | 130.09% | 36% | -400% | -85.38% | 5.56% | 47.27% | 20.88% | 33.82% | 119.35% | -32.61% | 39.39% | 184.62% | -277.27% | 15.79% | 218.75% | -150% | - |
| EPS (Basic) | - | -0.48 | -0.75 | 0.26 | 1.71 | 1.63 | 1.11 | 0.92 | 0.69 | 0.31 | 0.46 | 0.33 | -0.39 | 0.22 | 0.19 | -0.16 | 0.32 |
| Diluted Shares Outstanding | 8.89M | 9.55M | 8.76M | 8.94M | 9.14M | 9.23M | 9.4M | 9.92M | 10.43M | 10.7M | 11.17M | 12.05M | 13.05M | 12.1M | 12.1M | 12.11M | 12.1M |
CRE concentration and margin compression
As reported in recent financial filings, FNWB's net interest income has remained largely range-bound between $13.5 million and $14.7 million over the last ten quarters, suggesting that the bank is struggling to expand its interest-earning asset base despite the broader regional economic growth in Washington.
The lack of meaningful NII expansion indicates that the bank's loan production is likely being offset by portfolio runoff or competitive pricing pressures. Investors should monitor whether the bank can successfully pivot its loan mix toward higher-yielding commercial assets without further sacrificing the stability of its core interest income.
Based on the provided quarterly data, FNWB's net interest margin has remained compressed at approximately 0.6% to 0.7%, reflecting a structural inability to effectively manage funding costs relative to the yields generated by its current loan portfolio in a competitive interest rate environment.
This margin profile appears to be significantly weaker than regional peers, suggesting that the bank's deposit base may be more rate-sensitive than previously anticipated. The inability to expand NIM suggests that the bank's funding strategy may be failing to keep pace with the repricing of its interest-bearing liabilities.
According to the bank's historical income statements, the efficiency ratio has frequently exceeded 60%, peaking at 72.7% in 2023Q4, which highlights a high fixed-cost burden that severely limits the bank's ability to generate positive operating leverage during periods of revenue volatility.
The elevated efficiency ratio suggests that the bank's current operating model is not sufficiently scaled to support its expansion into urban markets. This high overhead structure warrants further investigation into whether management can rationalize non-interest expenses without compromising the bank's long-term growth initiatives.
As evidenced by the significant fluctuations in provision expense, including a peak of $8.7 million in 2024Q2, the bank's credit cost profile appears highly erratic, potentially reflecting the impact of CECL-related adjustments on its concentrated commercial real estate and construction loan portfolio.
The volatility in provisioning suggests that the bank's asset quality may be subject to significant swings based on regional economic conditions in the Puget Sound area. Investors should remain cautious, as these large provision swings may be masking the true underlying earnings power of the core banking franchise.
Quick answers to the most common questions about buying FNWB stock.
First Northwest Bancorp (FNWB) reported a net loss of $4.2M for the fiscal year ending 2025.
First Northwest Bancorp (FNWB) reported an operating income of $-5.9M, resulting in an operating profit margin of -5.5%. This margin reflects the operational efficiency of the business before interest and taxes.
First Northwest Bancorp (FNWB) generated $50.7M in gross profit for the year, representing a gross profit margin of 47.3%. This demonstrates the company's core pricing power and production efficiency.