First Northwest returns to profit as credit costs normalize; legal reserve removed

Filed May 7, 2026 · Period ending March 31, 2026 · Compared to 10-Q May 12, 2025 · ~1 min read

Key Changes

• high

  Net income of $6,000 vs. $9.0M loss prior year, driven by $7.8M provision recapture (prior year charged off two CRE loans) and absence of $5.8M legal settlement that hit Q1 2025.

  MD&A: Net Income & Credit Provision verify on EDGAR →
• high

  Net interest margin expanded 27 basis points to 3.03% as deposit and borrowing costs fell faster than loan yields, improving core profitability despite flat loan balances.

  MD&A: Net Interest Margin verify on EDGAR →
• high

  Bankruptcy adversary proceeding disclosure removed; baseline showed $5.8M reserve for fraudulent transfer claims by borrower Ideal Property Investments against First Fed.

  Legal Proceedings verify on EDGAR →