First Northwest net income falls 91.6% to $308,000 as legal costs and ERC reversal drive expenses

Filed August 6, 2026 · Period ending June 30, 2026 · Compared to 10-Q Aug 7, 2025 · ~2 min read

Key Changes

• high

  Net income plunged 91.6% to $308,000 ($0.03 diluted EPS, down 92.9%) in Q2 2026 from $3.7M in Q2 2025, driven by a $3.6M rise in noninterest expense.

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

  Compensation and benefits surged 31.2% ($3.9M) for the six months ended June 30, 2026, primarily due to reversal of a prior-year $2.6M Employee Retention Credit that had reduced 2025 expense. Legal costs rose $1.5M and consulting fees increased $651K as the Bank used outside resources for open positions.

  MD&A: Noninterest Expense verify on EDGAR →
• high

  Net interest margin improved 19 basis points to 2.99% for the six months ended June 30, 2026, from 2.80% in 2025, as the cost of interest-bearing liabilities fell 28 basis points to 2.75%. The Bank reduced reliance on brokered CDs and shifted deposit mix toward money market and savings accounts.

  MD&A: Net Interest Margin verify on EDGAR →