Recent Updates — FNWB

First Northwest Bancorp's wholly owned subsidiary, First Fed Bank, entered into a Settlement Agreement & Mutual Release with Socotra REIT I, LLC on September 15, 2026, to resolve litigation filed in October 2025. The lawsuit alleged misrepresentation, fraud, conversion, and violations of the Washington Consumer Protection Act regarding a commercial loan transaction involving Ideal Property Investments LLC. Under the agreement, First Fed Bank agreed to pay $1.3 million within 30 days in exchange for a full release of claims and dismissal of the complaint with prejudice. The company stated that resolving the dispute avoids estimated litigation costs and uncertainties, noting the settlement does not constitute an admission of liability. First Northwest Bancorp operates as a bank holding company providing financial services through its subsidiary bank.

First Northwest Bancorp reported net income of $308,000 for the second quarter ended June 30, 2026, compared to a loss in the prior year period and minimal earnings in Q1 2026. Basic and diluted EPS were $0.03. The company recorded a $337,000 recapture of provision for credit losses. Total assets decreased 0.4% to $2.12 billion, while net loans receivable fell 1.0% to $1.60 billion. Customer deposits rose 0.7% to $1.55 billion, driven by a reduction in brokered deposits which declined 8.6% to $58.6 million. FHLB advances decreased $15.0 million to $265.0 million. The total risk-based capital ratio remained stable at 13.4%. First Northwest Bancorp operates as a financial holding company engaged in banking and investment activities through its subsidiary, First Fed Bank.