Executive Summary

EPS of $0.17, a return to profitability, compared to a loss per share of $0.32 in Q4 2024 and $0.04 in Q1 2024; EPS beat S&P Global consensus of $0.09, aided by higher noninterest income and lower interest expense while maintaining expense discipline * .
Net interest margin expanded to 2.76% (+3 bps q/q), and the efficiency ratio improved to 79.4% from 92.2% in Q4 2024, reflecting early traction from balance sheet restructuring and cost controls .
Asset quality improved meaningfully: nonperforming loans fell 13.5% q/q to $26.4M and ACLL coverage of NPLs rose to 78% from 67% in Q4 2024; provision for credit losses moderated q/q to $1.6M .
Deposit mix improved: brokered CDs declined by $45.0M while core customer deposits increased $23.0M; borrowings fell $28.9M, lowering total cost of funds to 2.67% (vs. 2.80% in Q4 2024) .
Dividend maintained at $0.07 per share; management is evaluating potential future stock buybacks as profitability improves, a prospective stock reaction catalyst .

What Went Well and What Went Wrong

What Went Well

Improved profitability and capital: “We were pleased to see improved profitability... We expect better core growth and asset quality trends, combined with ongoing expense discipline and modest margin improvement, will continue to improve profitability and capital in future quarters,” said CEO Matthew P. Deines .
Mix shift toward core funding: Core deposits grew by $23.0M while brokered CDs fell by $45.0M; borrowings were reduced by $28.9M and cost of funds decreased to 2.67%, supporting NIM improvement .
Noninterest income tailwinds: $1.059M BOLI death benefit, $846k gain on extinguishment of subordinated debt, and $315k gain from converting a loan into a Series A equity investment lifted total noninterest income .

What Went Wrong

Credit costs remained a headwind: Provision for credit losses on loans was $1.553M, with $1.428M of charge-offs across commercial business, construction, and consumer loans; although improved from Q4 2024, it still weighed on results .
Top-line interest pressure: Total interest income fell $1.4M q/q to $26.8M, impacted by lower loan yields/volumes and reduced income on company deposit accounts; Northpointe Bank MPP balances declined by $24.7M, reducing loan interest $461k .
Loans and total deposits contracted: Net loans decreased $31.4M q/q and total deposits decreased $22.0M q/q, though underlying core deposit growth offset part of the decline .

Financial Results

Income Statement Key Metrics

Metric ($000s except per-share)	Q3 2024	Q4 2024	Q1 2025
Net Interest Income	14,020	14,137	13,847
Total Noninterest Income	1,779	1,300	4,092
Total Revenue (NII + Noninterest)	15,799	15,437	17,939
Total Noninterest Expense	15,848	14,233	14,249
Net Income (Loss)	(1,980)	(2,810)	1,514
Diluted EPS ($)	(0.23)	(0.32)	0.17

Margins and Efficiency

Metric	Q3 2024	Q4 2024	Q1 2025
Net Interest Margin (%)	2.70	2.73	2.76
Efficiency Ratio (%)	100.3	92.2	79.4
Return on Avg Assets (%)	-0.36	-0.51	0.28
Return on Avg Equity (%)	-4.91	-6.92	3.92

Asset Quality KPIs

Metric	Q3 2024	Q4 2024	Q1 2025
ACLL ($000s)	21,970	20,449	20,625
Provision for Credit Losses on Loans ($000s)	3,077	3,760	1,553
Nonperforming Loans ($000s)	30,376	30,515	26,387
ACLL % of Total Loans (%)	1.27	1.21	1.24
ACLL % of Nonaccrual Loans (%)	72.33	67.01	78.16
Annualized Net Charge-offs / Avg Loans (%)	0.10	1.23	0.34

Deposits and Funding

Metric ($000s)	Q3 2024	Q4 2024	Q1 2025
Total Deposits	1,711,641	1,688,026	1,666,068
Brokered CDs	203,705	182,914	137,946
Customer CDs	441,665	464,928	450,663
Borrowings	334,994	336,014	307,091
Loan-to-Deposit Ratio (%)	101	99.9	99.9

Estimates vs Actuals (Company-Reported Metrics vs S&P Global Consensus)

Metric	Q3 2024	Q4 2024	Q1 2025
EPS Consensus Mean ($)	0.10*	0.065*	0.09*
EPS Actual ($)	(0.23)	(0.32)	0.17
EPS Beat/Miss	Miss	Miss	Beat
Revenue Consensus Mean ($)	17,300,000*	16,400,000*	16,450,000*
Company “Total Revenue” Actual ($)	15,799,000	15,437,000	17,939,000
Revenue Beat/Miss vs Company “Total Revenue”	Miss	Miss	Beat

Values marked with * retrieved from S&P Global.
Note: Company “Total Revenue” equals Net Interest Income + Total Noninterest Income reported in press releases; S&P Global “Revenue” for banks may use a different definition, which can cause differences when comparing to company-reported “Total Revenue” .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Dividend per Share	Q1 2025	$0.07 declared in Q4 2024	$0.07 declared; payable May 23, 2025	Maintained
Net Interest Margin	2025 Outlook	—	“Modest margin improvement” expected (directional)	Raised (directional)
Asset Quality	2025 Outlook	—	Expect further improvement in nonperforming loans (directional)	Raised (directional)
Capital Return (Buybacks)	2025 Outlook	No Q4 2024 repurchases; 846,123 shares remaining under plan	Evaluating potential future stock buybacks	Potentially Raised

No numeric ranges were provided; management commentary was directional rather than quantified .

Earnings Call Themes & Trends

Earnings call transcript for Q1 2025 was not available in our document catalog; themes below reflect management’s press release commentary.

Topic	Previous Mentions (Q3 & Q4 2024)	Current Period (Q1 2025)	Trend
Asset Quality	Elevated provisions; NPLs increased in Q3; ACLL coverage declined; Q4 provision remained high	Provision moderated; NPLs down 13.5% q/q; ACLL/NPL improved to 78%	Improving
Balance Sheet Restructuring (BOLI, derivatives, securities)	Hedge added income; BOLI reinvestment; sale-leaseback gain; security mix rebalanced	BOLI death benefit +$1.059M; completed BOLI surrender (tax/penalties $266k); securities duration ~4.3 years	Continuing execution
Deposits & Funding	Mix shifts toward MM/CDs; brokered down in Q3; competitive rate environment	Brokered CDs -$45M; core deposits +$23M; cost of funds down to 2.67%	Positive mix shift
Credit Costs	Q3/Q4 provisions materially impacted results	Provision reduced to $1.553M; charge-offs $1.428M	Moderating
Capital Return	Q3 repurchases; Q4 none; dividend stable	Dividend maintained; considering buybacks	Potential upside

Management Commentary

“We saw improvement on our asset quality metrics, with nonperforming loans 14% lower than the prior quarter… We expect better core growth and asset quality trends, combined with ongoing expense discipline and modest margin improvement, will continue to improve profitability and capital in future quarters. With improved profitability, we are evaluating the potential for future stock buybacks.” — Matthew P. Deines, President & CEO .
CFO transition: Phyllis Nomura appointed EVP/CFO, reinforcing finance leadership for execution on profitability and efficiency initiatives; management highlighted her role in balance sheet restructuring over five quarters supporting a return to profitability in 2025 .

Q&A Highlights

Earnings call transcript for Q1 2025 was not found; no Q&A highlights or clarifications were available in our document set.

Estimates Context

EPS: Q1 2025 EPS of $0.17 vs S&P Global consensus of $0.09 — a beat as margin improved and noninterest income benefited from discrete items; prior quarters Q4 and Q3 missed consensus as elevated provisions weighed on results * * *.
Revenue: Company-reported “Total Revenue” of $17.94M, while S&P Global revenue consensus was $16.45M; definitional differences for banks mean S&P’s “Revenue” may not map directly to company “Total Revenue” — investors should align definitions when assessing beats/misses *.
Estimate implications: With moderating credit costs, improving NIM, and a better funding mix, EPS estimates may need upward revision if discrete noninterest income items are sustained and core margin expansion continues; watch for clarity on sustainable noninterest income vs. one-time gains .

Values marked with * retrieved from S&P Global.

Key Takeaways for Investors

Near-term: EPS beat and margin expansion signal improving core earnings power; watch for subsequent quarters to confirm sustainability absent one-time gains *.
Credit trajectory: Provision and charge-offs moderated, NPLs declined; continued progress on classified relationships could unlock further reserve normalization and earnings leverage .
Funding and NIM: Mix shift away from brokered CDs and reduced borrowings lowered cost of funds and supported NIM expansion; further gains possible if competitive deposit pressures ease .
Capital return optionality: Dividend maintained; the board is evaluating stock buybacks, which could add support to the shares if profitability trends persist .
Operating discipline: Efficiency ratio improved markedly; ongoing expense control (post reduction-in-force in 2024) should provide downside protection if top-line pressures persist .
Definitions matter: Align S&P Global bank “Revenue” definitions with company “Total Revenue” to avoid misreads on beats/misses; prioritize EPS vs consensus for cleaner comparability *.
Leadership: CFO appointment underscores focus on finance rigor and execution of restructuring initiatives; a potential positive for continued margin and efficiency improvements .

Citations:

First Northwest Bancorp (FNWB)·Q1 2025 Earnings Summary