First Northwest Bancorp (FNWB): History, Ownership, Mission, How It Works & Makes Money

Why should you, a savvy financial decision-maker, pay close attention to First Northwest Bancorp, a community bank that reported a net income of $802,000 in the third quarter of 2025? This financial holding company, operating First Fed Bank, has a century-long history since 1923 and recently executed a significant profitability turnaround, moving from a $9.0 million net loss in the first quarter of 2025 to a $3.7 million net income in the second quarter of 2025. For investors and strategists, understanding how an institution with $1.55 billion in customer deposits navigates the current market-and how it makes its money-is defintely crucial for mapping your own near-term risks and opportunities.

First Northwest Bancorp (FNWB) History

You're looking for the bedrock of First Northwest Bancorp, and the quick takeaway is this: it's a century-old community bank that went public to fuel a modern, growth-focused strategy. The institution's roots run deep in the Pacific Northwest, starting in 1923, but its current structure as a financial holding company, First Northwest Bancorp, is a much more recent vehicle for strategic expansion.

First Northwest Bancorp's Founding Timeline

The company's story is a two-part narrative. The operating subsidiary, First Fed Bank, is the original entity, born out of a community need for local financing. The parent company, First Northwest Bancorp, was established nearly 90 years later to facilitate capital raising and a broader strategic pivot beyond traditional savings and loan operations.

Year established

The core institution, First Fed Bank, was founded in 1923. The bank holding company, First Northwest Bancorp (FNWB), was incorporated in 2012.

Original location

The company has always been headquartered in Port Angeles, Washington, serving the communities of Western Washington.

Founding team members

While the original 1923 founders are part of the bank's legacy, the leadership team that has shaped the modern, publicly-traded First Northwest Bancorp as of November 2025 includes:

• Curt T. Queyrouze: President and Chief Executive Officer (named CEO in September 2025).
• Phyllis Nomura: Executive Vice President and Chief Financial Officer.
• Geraldine L. Bullard: Executive Vice President and Chief Operating Officer.

Initial capital/funding

The significant capital event for the holding company was its Initial Public Offering (IPO) on January 30, 2015. The stock was listed on NASDAQ under the ticker FNWB with an issue price of $10.00 per share.

First Northwest Bancorp's Evolution Milestones

The company's evolution tracks from a local thrift to a diversified financial holding company focused on commercial and consumer banking in the Pacific Northwest (PNW). Here's the quick math: 92 years as a private institution, ten years as a public one.

First Northwest Bancorp's Transformative Moments

The shift from a mutual savings bank to a publicly traded holding company was the biggest strategic move, allowing for the deployment of capital into higher-growth areas like commercial business lending and strategic partnerships (fintech). This is a defintely a new chapter for the company.

The 2025 fiscal year has been a period of significant operational turnaround and leadership change, which is a major transformative moment right now. For example, the second quarter saw a net income of $3.7 million, a sharp reversal from the $9.0 million net loss in the first quarter of 2025. This profitability swing, coupled with the September 2025 appointment of Curt T. Queyrouze as CEO, indicates a renewed focus on driving efficiency and earnings.

The company's strategy now involves a dual focus:

• Core Banking Improvement: The Net Interest Margin (NIM) has improved for five consecutive quarters, reaching 2.91% in the third quarter of 2025, showing better pricing power on loans and deposits.
• Strategic Investment: Continuing to invest in modern financial services, such as digital payments and marketplace lending, through strategic partnerships.

What this estimate hides is the ongoing capital management challenge; the Board elected not to declare a dividend for the second quarter of 2025 as a prudent approach to preserve capital. If you want to dig deeper into the company's forward-looking strategy, you should check out the Mission Statement, Vision, & Core Values of First Northwest Bancorp (FNWB).

First Northwest Bancorp (FNWB) Ownership Structure

First Northwest Bancorp (FNWB) operates as a publicly traded financial holding company, meaning its ownership is distributed among a diverse set of institutional, insider, and retail investors, with a significant portion controlled by professional money managers.

This structure, with a market capitalization of approximately $87.69 million as of November 2025, ensures governance is subject to public scrutiny and Securities and Exchange Commission (SEC) regulations, but the influence of institutional investors is a key factor in strategic decisions.

First Northwest Bancorp's Current Status

First Northwest Bancorp is a public company, trading on the NasdaqGM under the ticker symbol FNWB. It completed its initial public offering (IPO) in 2015, which is why you see a mix of institutional and retail shareholders on the books.

As a financial holding company, FNWB's primary business is its wholly owned subsidiary, First Fed Bank, a Pacific Northwest-based financial institution. The holding company structure also allows for non-banking activities, such as its strategic investment in The Meriwether Group, LLC, an investment bank.

The total number of shares outstanding is around 8.81 million, which gives you a clear picture of the float and market size. For a deeper dive into the organizational goals, you can review its Mission Statement, Vision, & Core Values of First Northwest Bancorp (FNWB).

First Northwest Bancorp's Ownership Breakdown

The company's ownership is heavily weighted toward institutional investors, which is common for a publicly traded bank holding company. This means the majority of the stock is held by entities like mutual funds and hedge funds, not individual investors.

Here's the quick math on who owns the shares as of November 2025, based on total shares outstanding of 8.81 million:

What this estimate hides is the power of the largest institutions. For example, Fourthstone's nearly 10% stake gives them considerable influence on corporate governance matters. You defintely want to watch how these major funds adjust their positions.

First Northwest Bancorp's Leadership

The leadership team steering First Northwest Bancorp underwent a significant transition in 2025, bringing in a new long-term CEO to focus on stability and growth. The board and executive team are responsible for navigating the current economic climate and managing the bank's loan portfolio, which is a near-term risk.

• Chief Executive Officer & President: Curt Queyrouze, appointed effective September 17, 2025. He brings over 40 years of financial services experience, with a strong focus on credit, risk management, and financial technology.
• Chair of the Board: Cindy Finnie, who also chairs the Board of the subsidiary, First Fed Bank.
• Chief Operating Officer: Geraldine Bullard, who served as Interim CEO from July 2025 until Mr. Queyrouze's arrival, ensuring a smooth transition.
• Board Appointments: The Board of Directors saw new additions in 2025, including Diane C. Davis in July and Johanna Bartee in February, signaling a refresh in governance oversight.

This new leadership, particularly Mr. Queyrouze, is tasked with driving profitability improvements, following a Q2 2025 net income of $3.7 million and a focus on better core growth and asset quality trends.

First Northwest Bancorp (FNWB) Mission and Values

First Northwest Bancorp's core purpose extends beyond its $802,000 in net income for the third quarter of 2025; it centers on a dual commitment to delivering long-term shareholder value and being a trusted, modern partner for its Pacific Northwest communities. This focus drives all strategic decisions, from lending to digital investment.

First Northwest Bancorp's Core Purpose

The company's cultural DNA is rooted in its 1923 founding, but its strategy is defintely forward-looking. The new CEO, Curt Queyrouze, has clearly articulated that their success is directly tied to a 'culture of customer obsession' and the financial success of the people and businesses they serve.

Official Mission Statement

While First Northwest Bancorp (FNWB) and its subsidiary, First Fed Bank, do not publish a single, formal mission statement, their operating strategy is clear: focus on building sustainable earnings by delivering a full array of financial products and services. This isn't just about transactions; it's about being a complete financial partner for their customers in the Pacific Northwest.

• Deliver long-term value for shareholders.
• Act as a trusted partner in the communities served.
• Focus on sustainable earnings growth.
• Serve individuals, small businesses, and non-profit organizations.

Here's the quick math: with total assets of $1.74 billion as of year-end 2024 and total deposits of $1.53 billion, the institution's primary mission is to manage and grow these community-sourced funds responsibly while generating a return for shareholders, which was $0.09 diluted income per share in Q3 2025. That's the balance every community bank has to strike.

Vision Statement

The company's vision centers on modernization and being a 'catalyst for financial growth and wellness.' They are actively transforming First Fed Bank into a 'modern, forward-thinking financial institution' that can meet evolving customer needs. This means blending their century-long history with new technology.

• Build a modern, forward-thinking financial institution.
• Be a catalyst for financial growth and wellness in communities.
• Invest in modern financial services like digital payments and marketplace lending.
• Maintain a strong balance sheet and operational efficiency.

This vision is backed by strategic moves, such as the 2022 investment in Meriwether Group, a boutique investment banking and accelerator firm, showing they use partnerships to bring cutting-edge solutions to their customers. You can see more on who is betting on this vision at Exploring First Northwest Bancorp (FNWB) Investor Profile: Who's Buying and Why?

First Northwest Bancorp Slogan/Tagline

First Northwest Bancorp does not rely on a single, short public-facing tagline; instead, their slogan is embedded in their operational identity: a PNW-based financial institution committed to community and customer success. Their dedication is shown by their 227 employees operating 16 locations across Washington state. They are local, and they are invested.

First Northwest Bancorp (FNWB) How It Works

First Northwest Bancorp (FNWB) operates as a bank holding company, primarily generating revenue through its subsidiary, First Fed Bank, by taking local deposits and deploying that capital into loans and investments across the Pacific Northwest. Simply put, it makes money on the spread between what it pays depositors and what it earns on its lending portfolio-its net interest margin (NIM).

First Northwest Bancorp's Product/Service Portfolio

First Northwest Bancorp's Operational Framework

The operational engine is First Fed Bank, which focuses on community banking with local decision-making, not a distant corporate office. The core of the framework is managing the balance sheet to maximize the net interest margin (NIM), which hit 2.91% in the third quarter of 2025, up from 2.83% in the prior quarter.

This improvement is defintely tied to liability management. The cost of total deposits dropped to 2.20% in Q3 2025, down from 2.31% in Q2 2025, as higher-rate certificates of deposit (CDs) matured. That's a direct boost to profitability. They also aggressively reduced advances (borrowings) by $84.5 million, or 27.3%, to $225.0 million in Q3 2025, which further lowered funding costs. If you want a deeper dive on the numbers, I suggest checking out Breaking Down First Northwest Bancorp (FNWB) Financial Health: Key Insights for Investors.

The company also saw a net income of $802,000 for the third quarter of 2025, reflecting a recovery from a net loss in the same quarter of the previous year, though it was a decrease from the second quarter's $3.7 million. Analysts, however, are looking for a full-year 2025 earnings per share (EPS) of $1.00. That's the near-term hurdle.

First Northwest Bancorp's Strategic Advantages

First Northwest Bancorp's competitive edge comes from a blend of its deep local roots and a forward-looking approach to credit and technology.

• Centennial Community Trust: First Fed Bank has over a century of operating history, which translates into an irreplaceable level of trust and local market expertise in Washington state.
• Improved Asset Quality: They are aggressively managing risk. Nonperforming loans decreased significantly by $7.0 million to $13.4 million in Q3 2025, partly due to the sale of a commercial construction loan. This pushed the Allowance for Credit Losses on Loans (ACLL) to nonperforming loans ratio up to a strong 121%, compared to 90% in the prior quarter.
• Fintech and Investment Partnerships: The company strategically invests in and partners with modern financial services companies, including an investment in The Meriwether Group, to provide digital payments and marketplace lending capabilities without having to build everything in-house. You need to adapt to survive.
• New Leadership Focus: The new CEO, Curt Queyrouze, appointed in September 2025, brings a focus on data-driven decision-making and building a 'modern, forward-thinking financial institution' with a culture of customer obsession.

First Northwest Bancorp (FNWB) How It Makes Money

First Northwest Bancorp, the holding company for First Fed Bank, primarily makes money through the classic banking model: borrowing short-term via customer deposits and lending long-term via loans, profiting from the interest rate spread (Net Interest Income). They also generate revenue from non-interest sources like service fees and investment activities.

First Northwest Bancorp's Revenue Breakdown

The vast majority of First Northwest Bancorp's revenue comes from Net Interest Income (NII), which is the difference between the interest earned on assets (like loans and securities) and the interest paid on liabilities (like deposits and borrowings). As of the third quarter of 2025, this core function drove nearly 88% of the total revenue.

Here's the quick math: For the third quarter of 2025, the company reported Net Interest Income of $14.57 million against a total revenue of $16.57 million. That leaves Noninterest Income at approximately $2.00 million, or 12.1%. That's a very high reliance on NII, which is typical for a community-focused bank.

Business Economics

The economic engine of First Northwest Bancorp is built on managing its interest rate risk and credit risk. Their pricing strategy centers on attracting low-cost core deposits-checking and savings accounts-to fund higher-yielding loans, particularly in commercial and real estate segments in the Pacific Northwest.

• Net Interest Margin (NIM) Expansion: The bank's ability to pay less for deposits than it earns on loans is key. The NIM for Q3 2025 increased to 2.91%, up from 2.83% in the prior quarter, which is a defintely positive trend driven by lower rates on interest-bearing liabilities.
• Deposit Cost Management: A core focus is reducing reliance on expensive funding sources like brokered certificates of deposit (CDs). They saw the cost of total deposits decrease to 2.20% in Q3 2025.
• Noninterest Income Volatility: Noninterest income, which includes service charges, loan fees, and gains/losses on securities, is less stable. It was $2.0 million in Q3 2025, and while it's a smaller piece of the pie, it's important for diversification.

The strategic actions, like consolidating business centers, are aimed at improving the efficiency ratio (noninterest expense as a percentage of revenue), which stood at 78.0% in Q2 2025. A lower ratio means the bank is spending less to generate each dollar of revenue. You want to see that number drop over time.

First Northwest Bancorp's Financial Performance

The company's financial performance in 2025 shows a turnaround from prior losses but still signals a need for sustained earnings growth. The focus is on capital preservation and balance sheet strength, which is why the Board elected not to declare a dividend for Q3 2025.

• Profitability Recovery: Net income for the third quarter of 2025 was $802,000, a significant improvement from the net loss of $2.0 million in the same quarter of the previous year.
• Earnings Per Share (EPS): Basic and diluted earnings per share for Q3 2025 were $0.09, down from $0.42 in Q2 2025, but a recovery from a loss per share of $0.23 a year ago.
• Return on Equity (ROE): The firm's Return on Equity (ROE) for Q3 2025 was low at 0.25%, indicating that the bank is not yet generating strong returns on shareholder capital.
• Capital Strength: On the positive side, First Fed Bank's risk-based capital ratio improved to 13.7% in Q3 2025, up from 13.1% in the prior quarter, showing enhanced capital strength and a robust balance sheet.

What this estimate hides is the impact of non-recurring items and the volatility of the current interest rate environment on loan origination volume. For a deeper dive into the ownership structure and who is betting on this turnaround, see Exploring First Northwest Bancorp (FNWB) Investor Profile: Who's Buying and Why?

First Northwest Bancorp (FNWB) Market Position & Future Outlook

First Northwest Bancorp, through its subsidiary First Fed Bank, is a small but strategically focused community bank in Washington's Pacific Northwest, currently navigating a challenging rate environment by aggressively managing its deposit base and pursuing core commercial growth. The company is positioned as a $2.18 Billion asset institution as of Q2 2025, with a clear path toward margin improvement and capital build, despite recent earnings volatility.

Competitive Landscape

In the Pacific Northwest, First Northwest Bancorp competes primarily against larger regional banks and national players, making its market share relatively small. Its competitive strategy hinges on deep local relationships and targeted digital partnerships, rather than scale. The table below visualizes its standing relative to key regional competitors, using Q2 2025 data.

Opportunities & Challenges

The company's near-term trajectory is defined by its success in executing a balance sheet restructuring, which started in late 2023. The focus is on replacing high-cost funding with cheaper core deposits and leveraging its commercial lending expertise.

Industry Position

First Northwest Bancorp operates firmly within the community bank segment, defined as institutions with less than $10 billion in total assets. This segment is facing intense competition from larger regional banks and new digital-only providers, but its localized model remains a key differentiator.

• Focus on Relationship Lending: The bank's strength is in commercial and multi-family real estate loans, which are relationship-driven products that larger banks often commoditize.
• Capital Strength: The bank's risk-based capital ratio improved to 13.7% in Q3 2025, which is a strong position for a community bank and provides a buffer against credit losses.
• Digital-First Strategy: While physically focused on 16 locations in Washington state, the bank is actively pursuing strategic partnerships for digital payments and marketplace lending to compete with larger institutions on service convenience.
• Navigating Headwinds: The consensus analyst rating is a 'Hold,' with an average price target of $13.50 as of November 2025, reflecting mixed views on its ability to sustain recent profitability improvements.

To be fair, the success of the new CEO's plan hinges on defintely reducing noninterest expenses while accelerating core customer deposit growth. You can review the company's long-term vision in detail by reading the Mission Statement, Vision, & Core Values of First Northwest Bancorp (FNWB).