PORT ANGELES, Wash., April 29, 2026 (GLOBE NEWSWIRE) -- First Northwest Bancorp (NASDAQ:FNWB) ("First Northwest" or the "Company"), the holding company for First Fed Bank ("First Fed" or the "Bank"), today reported net income of $6,000 for the first quarter of 2026, compared to net income of $382,000 for the fourth quarter of 2025 and a net loss of $9.0 million for the first quarter of 2025. Basic and diluted income per share were $0.00 for the first quarter of 2026, compared to basic and diluted income per share of $0.04 for the fourth quarter of 2025 and basic and diluted loss per share of $1.03 for the first quarter of 2025.

Management Outlook; President and Chief Executive Officer, Curt Queyrouze:

"As we move through 2026, we are executing a disciplined transformation to improve our operating efficiency and reposition the balance sheet for long-term performance. While near-term results will reflect this transition, we remain encouraged by the underlying momentum in our core banking franchise. We are focused on disciplined balance sheet management, strengthening our funding and liquidity profile, and maintaining a strong capital position as we work to improve profitability. We are confident that the actions we are taking today will drive improvement beginning in the second half of the year and position the company for stronger, more consistent performance in 2027 and beyond."

First Quarter Insights:

•		Core banking revenues remained steady.
•		Net interest margin expanded for the sixth consecutive quarter to 3.03% for the current quarter compared to 3.00% in the fourth quarter of 2025, primarily as a result of a decrease in the rate paid on interest-bearing liabilities.
•		Cost of total deposits dropped to 2.04% for the current quarter from 2.12% in the preceding quarter, as higher-cost brokered certificates of deposit ("CDs") matured during the current quarter.
•		First Fed total risk-based capital ratio remained relatively stable at 13.5% for the current quarter compared to 13.6% in the fourth quarter of 2025, and 13.4% for the first quarter of 2025.
•		Net loans receivable, excluding loans held for sale, increased $951,000, or 0.1%, to $1.61 billion at March 31, 2026 from $1.61 billion at December 31, 2025, and decreased $24.6 million, or 1.5%, from $1.64 billion at March 31, 2025.
•		Customer deposits increased $24.9 million, or 1.6%, to $1.54 billion at March 31, 2026 from $1.51 billion at December 31, 2025, and increased $9.3 million, or 0.6%, from $1.53 billion at March 31, 2025.
•		Brokered deposits decreased $22.4 million, or 25.9%, to $64.1 million at March 31, 2026 from $86.5 million at December 31, 2025, and decreased $73.8 million, or 53.5%, from $137.9 million at March 31, 2025.
•		FHLB advances increased $20.0 million, or 7.3%, to $293.5 million at March 31, 2026 from $273.5 million at December 31, 2025, partially offsetting the decrease in brokered deposits.
•		A recapture of provision for credit losses on loans of $13,000 was recorded in the first quarter of 2026, compared to a provision of $466,000 for the preceding quarter and a provision of $7.8 million for the first quarter of 2025.

Other Updates:

•

The Bank continues to vigorously defend the previously disclosed legal proceedings. First Fed is entering into discovery in the Socotra REIT matter. The Bank is also preparing for a hearing on 3|5|2 Capital GP LLC's and Leucadia Asset Management LLC's Motion to Dismiss the Bank's counter claims.

Selected Quarterly Financial Ratios:

	As of or For the Quarter Ended
	March 31, 2026			December 31, 2025			September 30, 2025			June 30, 2025			March 31, 2025
Performance ratios: ⁽¹⁾
Return on average assets		0.00	%		0.07	%		0.15	%		0.68	%		-1.69	%
Return on average equity		0.02			0.96			2.10			10.00			-23.42
Net interest margin ⁽²⁾		3.03			3.00			2.91			2.83			2.76
Efficiency ratio ⁽³⁾		101.4			92.0			104.9			78.0			113.5
Equity to total assets		7.36			7.46			7.32			6.82			6.75
Book value per common share	$	16.52		$	16.61		$	16.33		$	15.85		$	15.52
Tangible performance ratios: ⁽¹⁾
Tangible common equity to tangible assets ⁽⁴⁾		7.30	%		7.40	%		7.26	%		6.76	%		6.68	%
Return on average tangible common equity ⁽⁴⁾		0.02			0.97			2.12			10.10			-23.65
Tangible book value per common share ⁽⁴⁾	$	16.38		$	16.47		$	16.18		$	15.70		$	15.36
Capital ratios (First Fed): ⁽⁵⁾
Tier 1 leverage		9.6	%		9.5	%		9.3	%		9.1	%		9.0	%
Common equity Tier 1 capital		12.4			12.5			12.7			12.0			12.1
Total risk-based		13.5			13.6			13.7			13.1			13.4

(1	)	Performance ratios are annualized, where appropriate.
(2	)	Net interest income divided by average interest-earning assets.
(3	)	Total noninterest expense as a percentage of net interest income and total other noninterest income.
(4	)	See reconciliation of Non-GAAP Financial Measures later in this release.
(5	)	Current period capital ratios are preliminary and subject to finalization of the FDIC Call Report.

Net Interest Income and Margin

Total interest income decreased $803,000 to $25.3 million for the first quarter of 2026, compared to $26.1 million for the preceding quarter, and decreased $1.5 million compared to $26.8 million in the first quarter of 2025. Interest income decreased in the first quarter of 2026 primarily due to decreased average balances of interest-earning assets. Average real estate loan balances decreased while average consumer and commercial business loan balances increased over the preceding quarter. Average investment securities balances and yields also decreased compared to the preceding quarter as a result of maturities during the fourth quarter of 2025. The yield on interest-earning assets decreased by 2 basis points to 5.32% compared to the preceding quarter, primarily due to reduced average loan balances.

Total interest expense decreased $553,000 to $10.9 million for the first quarter of 2026, compared to $11.5 million for the preceding quarter, and decreased $2.1 million compared to $13.0 million in the first quarter of 2025. Interest expense decreased in the first quarter of 2026 primarily due to a reduced volume of higher-rate brokered CDs and decreases in interest paid on customer deposit accounts. The current quarter decreases were partially offset by an increase in the average balance of borrowings. As a result of these first quarter changes, the total cost of funds decreased 4 basis points to 2.37% compared to the preceding quarter.

The net interest margin increased to 3.03% for the first quarter of 2026, from 3.00% for the preceding quarter and 2.76% for the first quarter of 2025, marking six consecutive quarters of improvement for a total increase of 33 basis points over that period.

Noninterest Income and Expense

Noninterest income decreased $1.7 million to $2.0 million for the first quarter of 2026, from $3.7 million for the preceding quarter. The decrease is primarily due to the $1.7 million nonrecurring reimbursement received from the Bank's insurance carrier to offset expenses related to previously disclosed legal matters, which was recorded in other income for the fourth quarter of 2025.

Noninterest expense decreased $218,000 to $16.7 million for the first quarter of 2026, compared to $16.9 million for the preceding quarter. The decline resulted from branch closure costs experienced in the fourth quarter of 2025, partially offset by increases in data processing expenses and compensation costs. Legal fees recorded in professional fees remain elevated due to the ongoing legal matters previously disclosed.

Allowance for Credit Losses on Loans ("ACLL") and Credit Quality

The ACLL decreased $164,000 to $16.8 million at March 31, 2026, from $17.0 million at December 31, 2025. The ACLL as a percentage of total loans was 1.03% at March 31, 2026, a decrease from 1.04% at December 31, 2025, and a decrease from 1.24% one year earlier. A $13,000 recapture of loan provision expense for the quarter ended March 31, 2026, was the result of a $256,000 decrease in the overall pooled loan reserve, partially offset by $151,000 in net charge-offs and a $92,000 increase in reserves on individually evaluated loans. The change in pooled loan reserve was driven by decreased loan balances in most categories combined with lower loss factors applied to one-to-four family and other consumer loans. Decreases to the pooled loan reserve balance were partially offset by higher purchased auto and Northpointe Mortgage Purchase Program ("Northpointe MPP") balances and higher loss factors applied to commercial real estate, multi-family and construction loan balances at the end of the current quarter. The pooled loan reserve was impacted by a mild improvement in gross domestic product and unemployment forecasts, partially offset by a reduction in nonaccrual loans compared to the preceding quarter.

Nonperforming loans decreased $896,000 to $21.7 million at March 31, 2026, from $22.6 million at December 31, 2025. Current quarter activity included principal payments totaling $806,000, payoffs totaling $776,000 and net recoveries on nonperforming loans totaling $505,000. The decreases were partially offset by the transition into nonaccrual status of loans totaling $1.2 million across multiple loan categories. ACLL to nonperforming loans increased to 78% at March 31, 2026, from 75% at December 31, 2025, and decreased from 101% at March 31, 2025. This ratio increased compared to the preceding quarter primarily due to a reduction in nonperforming loan balances.

Classified loans decreased $685,000 to $34.6 million at March 31, 2026, from $35.3 million at December 31, 2025, primarily due to payoffs totaling $653,000, principal payments totaling $567,000, net recoveries on previously charged-off loans totaling $501,000 and upgrades totaling $156,000. The decreases were partially offset by $1.2 million of new downgrades across multiple loan categories. Four collateral-dependent loans totaling $26.5 million account for 77% of the classified loan balance at March 31, 2026.

	For the Quarter Ended
ACLL ($ in thousands)	March 31, 2026			December 31, 2025			September 30, 2025			June 30, 2025			March 31, 2025

Balance at beginning of period	$	16,987		$	16,203		$	18,345		$	20,569		$	20,449
Charge-offs:
Commercial real estate		(3	)		(329	)		(656	)		(15	)		(5,571	)
Construction and land		(171	)		(1,027	)		(483	)		—			(374	)
Auto and other consumer		(276	)		(123	)		(106	)		(273	)		(243	)
Commercial business		(133	)		(964	)		(1,005	)		(2,823	)		(1,513	)
Total charge-offs		(583	)		(2,443	)		(2,250	)		(3,111	)		(7,701	)
Recoveries:
Commercial real estate		—			—			6			20			6
Construction and land		—			—			—			5			—
Auto and other consumer		50			34			47			74			43
Commercial business		382			2,727			675			1,084			2
Total recoveries		432			2,761			728			1,183			51
Net loan (charge-offs) recoveries		(151	)		318			(1,522	)		(1,928	)		(7,650	)
(Recapture of) provision for credit losses		(13	)		466			(620	)		(296	)		7,770
Balance at end of period	$	16,823		$	16,987		$	16,203		$	18,345		$	20,569

Average total loans	$	1,613,526		$	1,622,476		$	1,650,340		$	1,658,723		$	1,662,095
Annualized net charge-offs (recoveries) to average outstanding loans		0.04	%		-0.08	%		0.37	%		0.47	%		1.87	%

Asset Quality ($ in thousands)	March 31, 2026			December 31, 2025			September 30, 2025			June 30, 2025			March 31, 2025
Nonaccrual loans:
One-to-four family	$	2,521		$	2,272		$	2,345		$	2,274		$	1,404
Commercial real estate		9,619			9,745			3,439			4,095			4
Construction and land		4,164			5,146			6,037			13,063			15,280
Home equity		53			53			9			10			54
Auto and other consumer		1,280			1,086			1,072			410			710
Commercial business		4,062			4,293			470			514			2,903
Total nonaccrual loans		21,699			22,595			13,372			20,366			20,355
Other real estate owned		1,380			1,380			1,377			1,297			—
Total nonperforming assets	$	23,079		$	23,975		$	14,749		$	21,663		$	20,355

Nonaccrual loans as a % of total loans⁽¹⁾		1.33	%		1.39	%		0.82	%		1.22	%		1.23	%
Nonperforming assets as a % of total assets⁽²⁾		1.08			1.14			0.70			0.99			0.94
ACLL as a % of total loans		1.03			1.04			1.00			1.10			1.24
ACLL as a % of nonaccrual loans		77.53			75.18			121.17			90.08			101.05
Total past due loans to total loans		1.18			1.21			0.88			1.17			1.36

(1	)	Nonperforming loans consists of nonaccruing loans and accruing loans more than 90 days past due.
(2	)	Nonperforming assets consists of nonperforming loans (which include nonaccruing loans and accruing loans more than 90 days past due), real estate owned and repossessed assets.

Financial Condition and Capital

Balance sheet growth was impacted by higher on-balance-sheet liquidity at March 31, 2026, compared to December 31, 2025. Capital levels remained stable despite the impact of the rate environment on the securities portfolio reflected in accumulated other comprehensive income.

Investment securities increased $2.7 million, or 1.0%, to $273.0 million at March 31, 2026, compared to $270.3 million three months earlier, and decreased $42.5 million compared to $315.4 million at March 31, 2025. Purchases totaling $11.1 million were partially offset by maturities totaling $3.3 million, regular principal payments totaling $3.9 million and a $1.2 million increase in net unrealized losses during the first quarter of 2026. The estimated average life of the securities portfolio was approximately 6.8 years at March 31, 2026, 6.5 years at the preceding quarter end and 6.9 years at the end of the first quarter of 2025. The effective duration of the portfolio was approximately 4.7 years at March 31, 2026, compared to 4.6 years at the preceding quarter end and 4.3 years at the end of the first quarter of 2025.

Investment Securities ($ in thousands)		March 31, 2026		December 31, 2025		March 31, 2025	Three Month % Change		One Year % Change
Available for Sale at Fair Value
Municipal bonds	$	79,565	$	80,252	$	78,295	-0.9	%	1.6	%
U.S. government agency issued asset-backed securities (ABS agency)		11,632		11,943		12,643	-2.6		-8.0
Corporate issued asset-backed securities (ABS corporate)		7,676		7,961		15,671	-3.6		-51.0
Corporate issued debt securities (Corporate debt)		37,392		38,801		55,067	-3.6		-32.1
U.S. Small Business Administration securities (SBA)		5,820		6,293		8,061	-7.5		-27.8
Mortgage-backed securities:
U.S. government agency issued mortgage-backed securities (MBS agency)		97,968		91,656		96,642	6.9		1.4
Non-agency issued mortgage-backed securities (MBS non-agency)		32,932		33,404		49,054	-1.4		-32.9
Total securities available for sale	$	272,985	$	270,310	$	315,433	1.0		-13.5

Net loans receivable, excluding loans held for sale, increased $951,000, or 0.1%, to $1.61 billion at March 31, 2026, from $1.61 billion at December 31, 2025, and decreased $24.6 million, or 1.5%, from $1.64 billion one year prior. Construction loans that converted into fully amortizing loans during the quarter totaled $2.0 million. Loan payoffs of $39.8 million, regular payments of $27.8 million and charge-offs totaling $1.5 million outpaced draws on existing loans totaling $22.7 million and new loan funding totaling $16.5 million. Participation in the Northpointe MPP increased $23.0 million and purchased auto loans increased $8.5 million during the current quarter.

Loans ($ in thousands)		March 31, 2026			December 31, 2025			March 31, 2025		Three Month % Change		One Year % Change
Real Estate:
One-to-four family	$	362,984		$	376,731		$	394,428		-3.6	%	-8.0	%
Multi-family		270,979			288,529			338,147		-6.1		-19.9
Commercial real estate		403,243			402,683			387,312		0.1		4.1
Construction and land		62,347			61,268			64,877		1.8		-3.9
Total real estate loans		1,099,553			1,129,211			1,184,764		-2.6		-7.2
Consumer:
Home equity		86,292			85,088			79,151		1.4		9.0
Auto and other consumer		290,960			283,502			273,878		2.6		6.2
Total consumer loans		377,252			368,590			353,029		2.4		6.9
Commercial business		152,591			130,311			119,783		17.1		27.4
Total loans receivable		1,629,396			1,628,112			1,657,576		0.1		-1.7
Less:
Derivative basis adjustment		(406	)		(903	)		(566	)	55.0		28.3
Allowance for credit losses on loans		16,823			16,987			20,569		-1.0		-18.2
Total loans receivable, net	$	1,612,979		$	1,612,028		$	1,637,573		0.1		-1.5

Total deposits increased $2.5 million to $1.60 billion at March 31, 2026, compared to $1.60 billion at December 31, 2025, and decreased $64.5 million compared to $1.67 billion one year prior. During the first quarter of 2026, total customer deposit balances increased $24.9 million and brokered deposit balances decreased $22.4 million. The customer deposit mix reflects increased average savings account balances while average balances of all other customer accounts decreased compared to the preceding quarter. The rates paid on customer interest-bearing deposits decreased 8 basis points to 2.29% for the current quarter, compared to 2.37% for the fourth quarter of 2025. The deposit mix compared to March 31, 2025, reflects a continued shift in average balances of customer accounts to savings and money market accounts from demand deposit and CD accounts, with an overall $17.3 million increase to average customer balances. An $88.1 million decrease in the average balance of brokered CDs was the main driver for the year-over-year decrease in total deposits. Rates paid on interest-bearing deposit accounts decreased 40 basis points compared to the same quarter one year ago.

Deposits ($ in thousands)		March 31, 2026		December 31, 2025		March 31, 2025	Three Month % Change		One Year % Change
Noninterest-bearing demand deposits	$	238,901	$	245,760	$	247,890	-2.8	%	-3.6	%
Interest-bearing demand deposits		157,565		143,166		169,912	10.1		-7.3
Money market accounts		449,353		451,143		424,469	-0.4		5.9
Savings accounts		246,533		239,258		235,188	3.0		4.8
Certificates of deposit, customer		445,110		433,264		450,663	2.7		-1.2
Certificates of deposit, brokered		64,120		86,510		137,946	-25.9		-53.5
Total deposits	$	1,601,582	$	1,599,101	$	1,666,068	0.2		-3.9

FHLB advances increased $20.0 million during the current quarter, supporting increased on balance sheet liquidity.

Total shareholders' equity decreased to $157.0 million at March 31, 2026, compared to $157.3 million three months earlier, due to a decrease in the after-tax fair market values of the available-for-sale investment securities portfolio of $847,000, partially offset by an increase in the after-tax fair value of the investment portfolio hedge of $295,000 and net income of $6,000. No shares of common stock were repurchased under the Company's April 2024 Stock Repurchase Plan (the "Repurchase Plan") during the quarter ended March 31, 2026. There are 846,123 shares that remain available for repurchase under the Repurchase Plan.

Capital levels for both the Company and the Bank remain in excess of applicable requirements and the Bank was categorized as "well-capitalized" at March 31, 2026. Preliminary calculations of Common Equity Tier 1 and Total Risk-Based Capital Ratios at March 31, 2026, for the Bank were 12.4% and 13.5%, respectively.

2025 Awards/Recognition
						Sound Publishing:
Forbes Best-in-State Banks						Best Bank in Clallam County
Bellingham Best of the Northwest - Best Bank Silver						Best Lender in Clallam County and West End

About the Company

First Northwest Bancorp (NASDAQ:FNWB) is a financial holding company engaged in investment activities including the business of its subsidiary, First Fed Bank. First Fed is a Pacific Northwest-based financial institution which has served its customers and communities since 1923. Currently First Fed has 17 locations in Washington state including 12 full-service branches. First Fed's business and operating strategy is focused on building sustainable earnings by delivering a full array of financial products and services for individuals, small businesses, non-profit organizations and commercial customers. First Northwest has also strategically invested in partnerships focused on developing modern financial solutions and a boutique investment banking/accelerator firm. These investments underscore the Company's commitment to innovation and growth in the financial services sector. First Northwest Bancorp was incorporated in 2012 and completed its initial public offering in 2015 under the ticker symbol FNWB. The Company is headquartered in Port Angeles, Washington.

Forward-Looking Statements

Certain matters discussed in this press release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements relate to, among other things, expectations of the business environment in which we operate, projections of future performance and execution on certain strategies, perceived opportunities in the market, potential future credit experience, including our ability to collect, the outcome of litigation and statements regarding our mission and vision, and include, but are not limited to, statements about our plans, objectives, expectations and intentions that are not historical facts, and other statements often identified by words such as "believes," "expects," "anticipates," "estimates," or similar expressions. These forward-looking statements are based upon current management beliefs and expectations and may, therefore, involve risks and uncertainties, many of which are beyond our control. Our actual results, performance, or achievements may differ materially from those suggested, expressed, or implied by forward-looking statements as a result of a wide variety of factors including, but not limited to: increased competitive pressures; changes in the interest rate environment; the credit risks of lending activities; pressures on liquidity, including as a result of withdrawals of deposits or declines in the value of our investment portfolio; risks related to overall economic conditions; geopolitical events; legislative, regulatory, and policy changes; legal proceedings, regulatory investigations and their resolutions; and other factors described in the Company's latest Annual Report on Form 10-K under the section entitled "Risk Factors," and other filings with the Securities and Exchange Commission ("SEC"), which are available on our website at www.ourfirstfed.com and on the SEC's website at www.sec.gov.

Any of the forward-looking statements that we make in this press release and in the other public statements we make may turn out to be incorrect because of the inaccurate assumptions we might make, because of the factors illustrated above or because of other factors that we cannot foresee. Because of these and other uncertainties, our actual future results may be materially different from those expressed or implied in any forward-looking statements made by or on our behalf and the Company's operating and stock price performance may be negatively affected. Therefore, these factors should be considered in evaluating the forward-looking statements, and undue reliance should not be placed on such statements. We do not undertake and specifically disclaim any obligation to revise any forward-looking statements to reflect the occurrence of anticipated or unanticipated events or circumstances after the date of such statements. These risks could cause our actual results for 2026 and beyond to differ materially from those expressed in any forward-looking statements by, or on behalf of, us and could negatively affect the Company's operations and stock price performance.

For More Information Contact:

Curt Queyrouze, President and Chief Executive Officer

Phyllis Nomura, Chief Financial Officer and EVP

IRGroup@ourfirstfed.com

360-457-0461

FIRST NORTHWEST BANCORP AND SUBSIDIARY CONSOLIDATED BALANCE SHEETS (Dollars in thousands, except share data) (Unaudited)

	March 31, 2026			December 31, 2025			September 30, 2025			June 30, 2025			March 31, 2025
ASSETS
Cash and due from banks	$	16,548		$	15,530		$	15,688		$	18,487		$	18,911
Interest-earning deposits in banks		87,588			69,587			63,482			69,376			51,412
Investment securities available for sale, at fair value (amortized cost at each period end of $299,707, $295,849, $310,545, $336,206 and $348,249)		272,985			270,310			282,608			303,515			315,433
Loans held for sale		1,140			1,063			2,154			1,557			2,940
Loans receivable (net of allowance for credit losses on loans at each period end of $16,823, $16,987, $16,203, $18,345, and $20,569)		1,612,979			1,612,028			1,607,825			1,647,217			1,637,573
Federal Home Loan Bank (FHLB) stock, at cost		13,927			13,105			10,856			14,906			13,106
Accrued interest receivable		7,051			6,498			8,160			8,305			8,319
Premises and equipment, net		8,591			8,464			8,788			8,999			9,870
Servicing rights on sold loans, at fair value		2,999			3,014			3,093			3,220			3,301
Bank-owned life insurance ("BOLI"), net		42,850			42,382			41,889			41,380			31,786
Equity and partnership investments		15,452			15,489			15,048			14,811			15,026
Goodwill and other intangible assets, net		1,062			1,062			1,080			1,081			1,082
Deferred tax asset, net		13,898			13,638			14,168			14,266			14,304
Right-of-use ("ROU") asset, net		15,316			15,596			15,494			15,772			16,687
Prepaid expenses and other assets		21,057			20,129			21,040			32,471			31,680
Total assets	$	2,133,443		$	2,107,895		$	2,111,373		$	2,195,363		$	2,171,430

LIABILITIES AND SHAREHOLDERS' EQUITY
Deposits	$	1,601,582		$	1,599,101		$	1,653,327		$	1,654,636		$	1,666,068
Borrowings		328,160			308,143			259,625			344,108			307,091
Accrued interest payable		280			1,223			1,145			1,514			2,163
Lease liability, net		16,250			16,439			16,071			16,257			17,266
Accrued expenses and other liabilities		27,514			24,301			24,321			27,790			29,767
Advances from borrowers for taxes and insurance		2,691			1,424			2,356			1,325			2,583
Total liabilities		1,976,477			1,950,631			1,956,845			2,045,630			2,024,938

Shareholders' Equity
Preferred stock, $0.01 par value, authorized 5,000,000 shares, no shares issued or outstanding		—			—			—			—			—
Common stock, $0.01 par value, 75,000,000 shares authorized; issued and outstanding at each period end: 9,499,300; 9,467,925; 9,462,150; 9,444,963; and 9,440,618		95			95			94			94			94
Additional paid-in capital		93,854			93,803			93,646			93,595			93,450
Retained earnings		91,707			91,699			91,317			90,506			87,506
Accumulated other comprehensive loss, net of tax		(22,920	)		(22,398	)		(24,429	)		(28,198	)		(28,129	)
Unearned employee stock ownership plan (ESOP) shares		(5,770	)		(5,935	)		(6,100	)		(6,264	)		(6,429	)
Total shareholders' equity		156,966			157,264			154,528			149,733			146,492
Total liabilities and shareholders' equity	$	2,133,443		$	2,107,895		$	2,111,373		$	2,195,363		$	2,171,430

FIRST NORTHWEST BANCORP AND SUBSIDIARY CONSOLIDATED STATEMENTS OF OPERATIONS (Dollars in thousands, except per share data) (Unaudited)

	For the Quarter Ended
	March 31, 2026			December 31, 2025		September 30, 2025			June 30, 2025			March 31, 2025
INTEREST INCOME
Interest and fees on loans receivable	$	22,000		$	22,431	$	22,814		$	22,814		$	22,231
Interest on investment securities		2,585			2,971		3,244			3,466			3,803
Interest on deposits in banks		467			473		570			520			482
FHLB dividends		282			262		282			331			307
Total interest income		25,334			26,137		26,910			27,131			26,823
INTEREST EXPENSE
Deposits		7,930			8,648		9,083			9,552			9,737
Borrowings		2,964			2,799		3,258			3,386			3,239
Total interest expense		10,894			11,447		12,341			12,938			12,976
Net interest income		14,440			14,690		14,569			14,193			13,847
PROVISION FOR CREDIT LOSSES
(Recapture of) provision for credit losses on loans		(13	)		466		(620	)		(296	)		7,770
Provision for credit losses on unfunded commitments		91			97		(53	)		(64	)		15
Provision for credit losses		78			563		(673	)		(360	)		7,785
Net interest income after provision for credit losses		14,362			14,127		15,242			14,553			6,062
NONINTEREST INCOME
Loan and deposit service fees		1,122			1,044		1,114			1,095			1,106
Sold loan servicing fees and servicing rights mark-to-market		127			57		85			92			195
Net gain on sale of loans		76			96		(39	)		44			11
Increase in BOLI cash surrender value		468			493		539			485			372
Income from BOLI death benefit, net		—			—		—			—			1,059
Other income		215			2,000		303			454			1,034
Total noninterest income		2,008			3,690		2,002			2,170			3,777
NONINTEREST EXPENSE
Compensation and benefits		8,232			8,042		8,353			4,698			7,715
Data processing		2,228			1,990		1,941			1,926			2,011
Occupancy and equipment		1,565			1,539		1,505			1,507			1,592
Supplies, postage, and telephone		298			332		344			346			298
Regulatory assessments and state taxes		534			688		558			501			479
Advertising		304			290		282			299			265
Professional fees		2,026			1,957		2,668			1,449			777
FDIC insurance premium		363			424		411			463			434
Legal settlement		—			—		(10	)		—			5,750
Other expense		1,134			1,640		1,338			1,576			679
Total noninterest expense		16,684			16,902		17,390			12,765			20,000
(Loss) income before (benefit from) provision for income taxes		(314	)		915		(146	)		3,958			(10,161	)
(Benefit from) provision for income taxes		(320	)		533		(948	)		297			(1,125	)
Net income (loss)	$	6		$	382	$	802		$	3,661		$	(9,036	)

Basic and diluted earnings (loss) per common share	$	-		$	0.04	$	0.09		$	0.42		$	(1.03	)
Diluted weighted average common shares outstanding		8,894,998			8,860,060		8,813,632			8,791,478			8,747,422

FIRST NORTHWEST BANCORP AND SUBSIDIARY ADDITIONAL INFORMATION (Dollars in thousands) (Unaudited)

Selected Loan Detail	March 31, 2026		December 31, 2025		September 30, 2025		June 30, 2025		March 31, 2025
Construction and land loans breakout
1-4 Family construction	$	18,802	$	21,954	$	29,961	$	39,040	$	42,371
Multifamily construction		12,144		10,109		15,660		14,728		9,223
Nonresidential construction		25,758		23,005		16,484		12,832		7,229
Land and development		5,643		6,200		5,688		5,938		6,054
Total construction and land loans	$	62,347	$	61,268	$	67,793	$	72,538	$	64,877

Auto and other consumer loans breakout
Triad Manufactured Home loans	$	131,406	$	132,287	$	133,425	$	135,537	$	134,740
Woodside auto loans		147,444		137,678		131,800		127,828		118,972
First Help auto loans		7,570		8,491		9,561		11,221		13,012
Other auto loans		468		586		767		1,016		1,313
Other consumer loans		4,072		4,460		4,671		5,275		5,841
Total auto and other consumer loans	$	290,960	$	283,502	$	280,224	$	280,877	$	273,878

Commercial business loans breakout
Northpointe Bank MPP	$	41,951	$	18,941	$	-	$	-	$	-
Secured lines of credit		40,991		39,783		43,081		41,043		39,986
Unsecured lines of credit		3,351		2,901		2,580		2,551		2,030
SBA loans		5,505		5,645		6,347		6,618		6,889
Other commercial business loans		60,793		63,041		61,152		67,631		70,878
Total commercial business loans	$	152,591	$	130,311	$	113,160	$	117,843	$	119,783

Loans by Collateral and Unfunded Commitments	March 31, 2026		December 31, 2025		September 30, 2025		June 30, 2025		March 31, 2025
One-to-four family construction	$	18,571	$	23,815	$	31,627	$	40,509	$	38,221
All other construction and land		44,000		37,334		36,161		36,129		30,947
One-to-four family first mortgage		440,576		431,222		415,670		420,847		428,081
One-to-four family junior liens		21,169		21,003		20,568		20,116		15,155
One-to-four family revolving open-end		57,027		56,365		58,486		57,502		51,832
Commercial real estate, owner occupied:
Health care		28,177		28,488		28,794		29,091		29,386
Office		18,953		19,216		18,499		19,116		19,363
Warehouse		7,549		7,608		7,684		7,432		9,272
Other		72,556		71,313		73,562		74,364		74,915
Commercial real estate, non-owner occupied:
Office		36,657		40,311		40,917		42,198		41,885
Retail		53,519		50,494		50,839		51,708		50,737
Hospitality		62,729		63,113		63,953		64,308		62,226
Other		115,367		112,307		106,991		93,505		93,549
Multi-family residential		272,025		289,581		297,379		330,784		339,217
Commercial business loans		61,247		66,264		68,062		73,403		75,628
Commercial agriculture and fishing loans		27,982		25,842		23,346		22,443		22,914
State and political subdivision obligations		333		333		369		369		369
Consumer automobile loans		155,443		146,708		142,064		139,992		133,209
Consumer loans secured by other assets		133,825		134,826		136,073		138,378		137,619
Consumer loans unsecured		1,691		1,969		2,088		2,508		3,051
Total loans	$	1,629,396	$	1,628,112	$	1,623,132	$	1,664,702	$	1,657,576

Unfunded commitments under lines of credit or existing loans	$	166,897	$	167,489	$	158,118	$	166,589	$	175,100

FIRST NORTHWEST BANCORP AND SUBSIDIARY NET INTEREST MARGIN ANALYSIS (Dollars in thousands) (Unaudited)

	Three Months Ended March 31,
	2026								2025
	Average			Interest					Average			Interest
	Balance			Earned/		Yield/			Balance			Earned/		Yield/
(dollars in thousands)	Outstanding			Paid		Rate			Outstanding			Paid		Rate
Interest-earning assets:
Loans receivable, net^{(1) (2)}	$	1,597,287		$	22,000		5.59	%	$	1,641,937		$	22,231		5.49	%
Total investment securities		269,658			2,585		3.89			333,208			3,803		4.63
FHLB dividends		12,168			282		9.40			13,609			307		9.15
Interest-earning deposits in banks		51,046			467		3.71			42,917			482		4.55
Total interest-earning assets⁽³⁾		1,930,159			25,334		5.32			2,031,671			26,823		5.35
Noninterest-earning assets		140,292								143,077
Total average assets	$	2,070,451							$	2,174,748
Interest-bearing liabilities:
Interest-bearing demand deposits	$	140,578		$	72		0.21		$	168,414		$	260		0.63
Money market accounts		446,467			2,343		2.13			414,425			2,345		2.29
Savings accounts		243,322			871		1.45			216,499			783		1.47
Certificates of deposit, customer		438,176			3,892		3.60			451,936			4,522		4.06
Certificates of deposit, brokered		70,123			752		4.35			158,269			1,827		4.68
Total interest-bearing deposits⁽⁴⁾		1,338,666			7,930		2.40			1,409,543			9,737		2.80
Advances		252,778			2,619		4.20			279,500			2,855		4.14
Subordinated debt		34,651			345		4.04			38,370			384		4.06
Total interest-bearing liabilities		1,626,095			10,894		2.72			1,727,413			12,976		3.05
Noninterest-bearing deposits⁽⁴⁾		240,633								243,569
Other noninterest-bearing liabilities		44,191								47,329
Total average liabilities		1,910,919								2,018,311
Average equity		159,532								156,437
Total average liabilities and equity	$	2,070,451							$	2,174,748

Net interest income				$	14,440							$	13,847
Net interest rate spread							2.60								2.30
Net earning assets	$	304,064							$	304,258
Net interest margin⁽⁵⁾							3.03								2.76
Average interest-earning assets to average interest-bearing liabilities		118.7	%							117.6	%

(1) The average loans receivable, net balances include nonaccrual loans.

(2) Interest earned on loans receivable includes net deferred costs of $633,000 and $338,000 for the three months ended March 31, 2026 and 2025, respectively.

(3) Includes interest-earning deposits (cash) at other financial institutions.

(4) Cost of all deposits, including noninterest-bearing demand deposits, was 2.04% and 2.39% for the three months ended March 31, 2026 and 2025, respectively.

(5) Net interest income divided by average interest-earning assets.

FIRST NORTHWEST BANCORP AND SUBSIDIARY

ADDITIONAL INFORMATION

(Dollars in thousands) (Unaudited)

Non-GAAP Financial Measures

This press release contains financial measures that are not in conformity with generally accepted accounting principles in the United States of America ("GAAP"). Non-GAAP measures are presented where management believes the information will help investors understand the Company's results of operations or financial position and assess trends. Where non-GAAP financial measures are used, the comparable GAAP financial measure is also provided. These disclosures should not be viewed as a substitute for operating results determined in accordance with GAAP, and are not necessarily comparable to non-GAAP performance measures that may be presented by other companies. Other banking companies may use names similar to those the Company uses for the non-GAAP financial measures the Company discloses, but may calculate them differently. Investors should understand how the Company and other companies each calculate their non-GAAP financial measures when making comparisons. Reconciliations of the GAAP and non-GAAP measures are presented below.

Calculations Based on Tangible Common Equity:

	For the Quarter Ended
($ in thousands, except per share data)	March 31, 2026			December 31, 2025			September 30, 2025			June 30, 2025			March 31, 2025

Total shareholders' equity	$	156,966		$	157,264		$	154,528		$	149,733		$	146,492
Less: Goodwill and other intangible assets		1,062			1,062			1,080			1,081			1,082
Disallowed non-mortgage loan servicing rights		312			302			317			372			415
Total tangible common equity	$	155,592		$	155,900		$	153,131		$	148,280		$	144,995

Total assets	$	2,133,443		$	2,107,895		$	2,111,373		$	2,195,363		$	2,171,430
Less: Goodwill and other intangible assets		1,062			1,062			1,080			1,081			1,082
Disallowed non-mortgage loan servicing rights		312			302			317			372			415
Total tangible assets	$	2,132,069		$	2,106,531		$	2,109,976		$	2,193,910		$	2,169,933

Average shareholders' equity	$	159,532		$	157,588		$	151,376		$	146,857		$	156,437
Less: Average goodwill and other intangible assets		1,062			1,080			1,081			1,081			1,082
Average disallowed non-mortgage loan servicing rights		302			317			371			415			423
Total average tangible common equity	$	158,168		$	156,191		$	149,924		$	145,361		$	154,932

Net income (loss)	$	6		$	382		$	802		$	3,661		$	(9,036	)
Common shares outstanding		9,499,300			9,467,925			9,462,150			9,444,963			9,440,618
GAAP Ratios:
Equity to total assets		7.36	%		7.46	%		7.32	%		6.82	%		6.75	%
Return on average equity		0.02	%		0.96	%		2.10	%		10.00	%		-23.42	%
Book value per common share	$	16.52		$	16.61		$	16.33		$	15.85		$	15.52
Non-GAAP Ratios:
Tangible common equity to tangible assets⁽¹⁾		7.30	%		7.40	%		7.26	%		6.76	%		6.68	%
Return on average tangible common equity⁽¹⁾		0.02	%		0.97	%		2.12	%		10.10	%		-23.65	%
Tangible book value per common share⁽¹⁾	$	16.38		$	16.47		$	16.18		$	15.70		$	15.36

)

We believe that the use of tangible equity and tangible assets improves the comparability to other institutions that have not engaged in acquisitions that resulted in recorded goodwill and other intangibles.

Photos accompanying this announcement are available at:

https://www.globenewswire.com/NewsRoom/AttachmentNg/1c76ada4-597c-45e8-b3b1-8bb0f196c0e2

https://www.globenewswire.com/NewsRoom/AttachmentNg/dfb214d6-3a5a-4095-82df-e786decdea72

https://www.globenewswire.com/NewsRoom/AttachmentNg/b2d7e84f-1d80-4387-b19b-8e734f449862

https://www.globenewswire.com/NewsRoom/AttachmentNg/ffc8f120-ce6f-4aca-9658-a93b9946741d

First Northwest Bancorp Reports First Quarter 2026 Financial Results