PORT ANGELES — First Fed and First Northwest Bancorp, its holding company, reported net income of $3.7 million for the second quarter of 2025, an improvement over a net loss of $9 million in the first quarter.
In May, the bank revised its original first quarter earnings report that had originally showed a net income of $1.5 million.
Its share price was $7.73 on Monday, down from $10.53 on Jan. 28 — a 27 percent drop.
“Despite the volatility of the past few quarters, the Board remains focused on the strategic objectives of the Bank, building on the positive core trends from the past few quarters,” said Cindy Finnie, board chair of First Northwest Bancorp in its SEC filing on Thursday.
Directors decided not to declare dividends for the quarter as “part of a prudent approach to capital management,” according to the filing. “The Company remains committed to maintaining a strong balance sheet and will continue to evaluate future dividend decisions in light of the Company’s long-term strategic objectives.”
The board is in the process of searching for a permanent CEO to replace Matthew Deines, who stepped down June 12. Deines had signed a new employment agreement on Dec. 6, 2024, that paid him a base salary of $515,000 a year, as well as an incentive bonus package.
Geri Bullard is the bank’s interim CEO.
On July 21, First Fed announced it had entered into a settlement agreement to resolve a lawsuit connected with the bankruptcy proceedings of one of its borrowers, Water Station Management, a company under investigation by the state Department of Financial Institutions for misleading investors.
First Fed agreed to release certain liens against Water Station Management and borrowers associated with it (Creative Technologies, Refreshing USA and Ideal Property Investments), as well as make cash payments of between $2.87 million and $5.74 million to those companies’ creditors. All of the parties agreed to release all claims against each other.
According to an SEC filing, First Fed “determined that it is in the best interest of the Bank, the Company and the shareholders of the Company to enter into the Settlement Agreement to eliminate the risks, costs and distraction related to the Adversary Proceeding or any other claims of the parties.”
First Fed is defending itself in another lawsuit filed in June in King County Superior Court by 352 Capital Management, which is seeking $106 million in damages. It accuses the bank of conspiring with Water Management to defraud investors.
In June, the bank consolidated business centers in Fremont and Bellevue that were used for administrative support into a single location. There was a one-time $599,000 write-off of tenant improvements at the vacated space; the bank estimated a yearly $130,000 reduction in rent savings. No jobs were lost in the consolidation.
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Reporter Paula Hunt can be reached by email at paula.hunt@peninsuladailynews.com.
