Page 1

First Northwest Bancorp Contact : Matthew P. Deines , President and Chief Executive Officer Geri Bullard , EVP and Chief Financial Officer First Northwest Bancorp 360-457-0461 PORT ANGELES , Wash . , Oct. 27 , 2021 ( GLOBE NEWSWIRE ) -- First Northwest Bancorp ( Nasdaq : FNWB ) FIRST NORTHWEST BANCORP ANNOUNCES RECORD EARNINGS IN THE THIRD QUARTER OF 2021 Net Income $ 4.2 Million CEO Commentary Diluted Earnings Per Share $ 0.45 YTD Loan Growth 18 % Exhibit 99.1 Net Interest Margin Book Value per Share $ 18.65 3.58 % $ 18.481 , excluding goodwill and intangibles " First Fed achieved strong loan growth and record earnings in the third quarter as our strategic investment in technology , market expansion and personnel continues to deliver results , " said Matthew P. Deines , President and CEO of First Northwest Bancorp . " We believe our momentum will help us to continue to grow revenue , deliver results and create shareholder value in the years to come . " " We continue to make progress on all aspects of our business with significant loan and revenue growth and enhancements to our deposit franchise , " Deines added . " Loan growth in the third quarter was broad - based due to solid commercial real estate and construction lending originations and partnerships with select specialty lenders who give us the ability to add consumer loans with attractive risk - adjusted returns . Growth in our balance sheet led to a healthy increase in interest income while improvements in our deposit franchise kept interest expense stable . " The Board of Directors of First Northwest Bancorp declared a quarterly cash dividend of $ 0.07 per common share . The dividend will be payable on November 26 , 2021 , to shareholders of record as of the close of business on November 12 , 2021. On July 23 , we closed on the previously announced Bellevue branch purchase from Sterling Savings and Trust . The branch had over $ 65 million in deposits at closing . Quarter Ended September 30 , 2021 to June 30 , 2021 Financial Highlights Net income of $ 4.2 million and diluted earnings per share of $ 0.45 , compared to $ 3.0 million and $ 0.32 , respectively Total revenue of $ 21.1 million , an increase of 11.3 % , or $ 2.1 million , compared to an increase in non - interest expenses of 1.7 % , or $ 227,000 Effective tax rate of 18.9 % for both quarters Financial Position Total assets of $ 1.85 billion , up $ 57.7 million , or 3.2 % Total gross loans of $ 1.35 billion , up $ 96.7 million , or 7.7 % Total deposits of $ 1.52 billion , up $ 81.2 million , or 5.6 % Asset Quality Quarter Ended September 30 , 2021 to September 30 , 2020 Net income of $ 4.2 million and diluted earnings per share of $ 0.45 , compared to $ 3.7 million and $ 0.40 , respectively Total revenue of $ 21.1 million , an increase of 16.0 % , or $ 2.9 million , compared to an increase in non - interest expenses of 38.2 % , or $ 3.9 million Effective tax rate of 17.2 % , compared to 28.1 % Increase in total assets of $ 280.5 million , or 17.9 % Increase in total gross loans of $ 280.0 million , or 26.1 % Increase in total deposits of $ 268.5 million , or 21.4 % Nonperforming assets ( nonaccrual loans and repossessed assets ) to total assets of Nonperforming assets ( nonaccrual loans and repossessed assets ) to total assets 0.06 % , compared to 0.10 % Net loan charge - offs to average loans outstanding of approximately 0.00 % for both quarters Key Performance Metrics Net interest margin of 3.58 % , compared to 3.34 % Efficiency ratio of 70.3 % , compared to 78.2 % Return on average assets and on tangible common equity¹ of 0.92 % and 8.93 % , compared to 0.69 % and 6.37 % , respectively Tangible book value per share¹ of $ 18.48 , a decrease from $ 18.49 Year - To - Date Highlights of 0.06 % , compared to 0.21 % Net loan charge - offs to average loans outstanding of approximately 0.01 % , compared to 0.04 % Net interest margin of 3.58 % , compared to 3.36 % Efficiency ratio of 70.3 % , compared to 60.9 % Return on average assets and on tangible common equity¹ of 0.92 % and 8.93 % , compared to 0.99 % and 8.09 % , respectively Tangible book value per share of $ 18.48 , an increase of 4.70 % from $ 17.65 Net income of $ 10.3 million and diluted earnings per share of $ 1.11 , up 57.8 % and 60.9 % , from $ 6.5 million and $ 0.69 , respectively Total revenue of $ 57.3 million , an increase of 17.2 % , or $ 8.4 million , compared to an increase in noninterest expenses of 33.6 % , or $ 10.0 million Effective tax rate of 17.2 % , compared to 24.4 % Net interest margin of 3.48 % , compared to 3.20 % Efficiency ratio of 73.5 % , compared to 70.0 % Return on average assets and on tangible common equity¹ of 0.79 % and 7.41 % , compared to 0.62 % and 4.82 % Repurchased 291,932 shares of common stock at an average price of $ 16.87 per share for a total of $ 4.9 million year - to - date