Fri, Oct 25, 9:20 PM (69 days ago)
First Northwest Bancorp (FNWB) reported a net loss of $2,219,000 for Q2 2024, compared to a net income of $1,776,000 in Q2 2023, primarily attributed to increased charge-offs and provisions for credit losses, which rose to $8.7 million. The company's total assets increased slightly to $2.22 billion, while total liabilities also grew to $2.06 billion, driven by a $31.4 million increase in deposits. The allowance for credit losses rose to $19.3 million, or 1.14% of total loans. Net interest income decreased to $14.2 million, down from $16.0 million in the prior year, due to higher interest expenses stemming from increased rates on deposits and borrowings. Noninterest income surged to $7.4 million, mainly due to a $7.9 million gain from a sale-leaseback transaction involving six branch properties. The company noted a material weakness in internal controls related to loan evaluations, prompting amendments to its financial statements. Future operations may be impacted by regulatory changes and economic conditions affecting credit quality and funding costs. The company remains focused on enhancing its loan portfolio and managing liquidity effectively.