First Northwest Bancorp (FNWB, Financial) released its earnings report for the third quarter of 2023 on October 26, 2023. The company reported a net income of $2.5 million, compared to $1.8 million for the second quarter of 2023, and $4.3 million for the third quarter of 2022. Basic and diluted earnings per share were $0.28 for the third quarter of 2023, compared to $0.20 for the second quarter of 2023, and $0.47 for the third quarter of 2022.
Financial Highlights and Performance
First Northwest Bancorp (FNWB, Financial) reported a total revenue, net of interest expense, of $17.9 million for Q3 2023, slightly up from $17.7 million in Q2 2023. The company's total assets stood at $2,154 million, while total loans and total deposits were $1,635 million and $1,658 million respectively. The company's net interest margin decreased to 2.97% for Q3 2023, from 3.25% for Q2 2023.
Matthew P. Deines, President and CEO, commented on the financial results, stating,
The Company continues to manage through this historic interest rate environment by remaining focused on deepening existing relationships and acquiring new customers. We are also maintaining our commitment to reducing non-interest expense, which bore out in lower operating expenses and an improved efficiency ratio this quarter compared to the linked quarter."
Income Statement Highlights
Total interest income increased to $25.8 million for Q3 2023, compared to $25.5 million in Q2 2023, and $20.9 million in Q3 2022. The increase in interest income was attributed to an increased volume of loans and higher yields on investments and interest-earning deposits in banks. However, total interest expense was $10.9 million for Q3 2023, compared to $9.5 million in Q2 2023 and $2.7 million in Q3 2022, due to a 31 basis point increase in the cost of deposits.
Balance Sheet and Cash Flow Statement Highlights
First Northwest Bancorp (FNWB, Financial) reported total assets of $2,154 million, total loans of $1,635 million, and total deposits of $1,658 million. The company's total shareholders' equity stood at $156 million. The company also declared a quarterly cash dividend of $0.07 per common share, payable on November 24, 2023.
Outlook and Analysis
First Northwest Bancorp (FNWB, Financial) continues to focus on deepening existing relationships and acquiring new customers in the face of the historic interest rate environment. The company's commitment to reducing non-interest expense has resulted in lower operating expenses and an improved efficiency ratio for Q3 2023 compared to Q2 2023. With a year-to-date deposit growth of $93.5 million and loan growth of $87.4 million, the company's financial position remains strong.
Explore the complete 8-K earnings release (here) from First Northwest Bancorp for further details.
