First Northwest Bancorp (NASDAQ: FNWB) is a community banking company that operates through its subsidiary First Fed Bank, a Washington State chartered commercial bank serving consumers, businesses, and nonprofits across Clallam, Jefferson, King, Kitsap, Snohomish, and Whatcom counties. The company earns money primarily through net interest income, the spread between interest earned on loans and investment securities and interest paid on deposits and borrowings, supplemented by noninterest income from gain on sale of loans, servicing fees, and loan and deposit fees. First Fed operates twelve full-service branches and five business centers as of the 10-K filed March 12, 2026, competing against other community banks, credit unions, mortgage bankers, digital lenders, and fintech companies in Western Washington markets. The bank's single-borrower lending limit stood at $40.5 million as of December 31, 2025, a constraint that limits average commercial loan size relative to larger regional competitors. The company experienced significant executive turnover in 2025, with the CEO, Chief Banking Officer, Chief Strategy Officer, and Chief Operating Officer all departing between July 2025 and February 2026.

Revenue model

Net interest income from loans (commercial real estate, multi-family, commercial business, auto, consumer, and one-to-four family residential mortgage) and investment securities, funded by customer deposits and FHLB advances. Noninterest income comes from net gain on sale of loans into the secondary market, sold loan servicing fees and servicing rights mark-to-market, loan and deposit fees, and BOLI cash surrender value increases.

Products and services

Loan products: commercial real estate loans, multi-family real estate loans, commercial business loans, one-to-four family residential mortgage loans (originated primarily for secondary market sale), home equity loans, residential and commercial construction loans, auto loans (via purchased auto loan programs), consumer loans, and purchased manufactured home loans. Deposit products: interest-bearing transaction accounts, money market accounts, savings accounts, certificates of deposit (customer and brokered), and business deposit accounts. Digital services include mobile banking, online account opening, business remote deposit, real-time account-to-account transfers, and person-to-person funds transfer.

Customers and end markets

Individuals, businesses, and nonprofit organizations in Western Washington. End markets include residential real estate, commercial real estate, small and mid-size commercial businesses, and consumer lending. The bank targets relationship-based primary transaction account holders and emphasizes core deposit growth.

Value-chain role

Deposit-funded lender and loan originator. Originates residential mortgage loans primarily for sale into the secondary market, retaining servicing rights, and holds commercial and consumer loans on balance sheet. Competes for deposits against banks, credit unions, mutual funds, securities firms, insurance companies, and digital banking challengers.

Geographic exposure

Western Washington State: Clallam, Jefferson, King, Kitsap, Snohomish, and Whatcom counties, including the Puget Sound area markets such as Seattle, as of the 10-K filed March 12, 2026.

Competitors

Other commercial banks, Credit unions, Life insurance companies, Mortgage bankers, Digital lenders, Fintech companies, Challenger banks, Mutual funds, Securities firms

Source: SEC 10-K, filed 2026-03-12

Industry: Savings Institutions, Not Federally Chartered Peers: Embassy Bancorp Inc Finward Bancorp First Savings Financial Group, Inc. MIDDLEFIELD BANC CORP Richmond Mutual Bancorporation Inc PNC Financial Services Group Inc