First Northwest Bancorp (FNWB) risk factors, FY2024 10-K

Other

1. 01Adverse economic conditions in market areas we serve could adversely impact our earnings and could increase the credit risk associated with our loan portfolio
2. 02The amount of our deposits may decrease and the composition of our deposits may be adversely affected
3. 03Conditions in the financial markets may limit our access to additional funding to meet our liquidity needs, which could adversely affect our earnings and capital levels
4. 04Competition for deposits may limit our ability to grow
5. 05Public health crises, geopolitical developments, acts of terrorism, natural disasters, climate change and other external factors could harm our business
6. 06Our increased emphasis on commercial real estate lending subjects us to various risks that could adversely impact our results of operations and financial condition
7. 07An increase in unsecured lending exposes us to an increase in loan losses
8. 08The significant growth in our loan portfolio and expansion into new markets may increase our credit risk
9. 09We have a concentration of large loans outstanding to a limited number of borrowers that increases our risk of loss
10. 10Our construction and land loans are based upon estimates of costs and the value of the completed project
11. 11Our business may be adversely affected by credit risk associated with residential real estate
12. 12Repayment of our commercial business loans is often dependent on the cash flows of the borrower, which may be unpredictable, and the collateral securing these loans may fluctuate in value
13. 13Our allowance for credit losses on loans may prove to be insufficient to absorb losses in our loan portfolio
14. 14If our nonperforming assets increase, our earnings will be adversely affected
15. 15Our securities portfolio may be negatively impacted by fluctuations in market value and interest rates
16. 16We may incur losses due to direct and indirect minority investments in fintech and specialty finance companies
17. 17If our real estate owned is not properly valued or declines further in value, our earnings could be reduced
18. 18We operate in a highly competitive industry
19. 19We are subject to certain risks in connection with our use of networks and technology systems
20. 20We support the ability of our customers to transact business through multiple automated methods. As such, we may be susceptible to fraud performed through these technologies
21. 21We are subject to interest rate risk
22. 22Decreased volumes and lower gains on sales of loans could adversely impact our noninterest income
23. 23A portion of our loan portfolio is serviced by third parties, which may limit our ability to foreclose on or repossess such loans
24. 24Our lending limit may restrict our growth
25. 25We operate in a highly regulated environment and may be adversely affected by changes in laws and regulations
26. 26We are dependent on key personnel and the loss of one or more of those key persons may materially and adversely affect our prospects
27. 27Our consideration of whole bank, branch acquisitions, or fintech partnerships in the future may expose us to financial, execution and operational risks that could adversely affect us
28. 28Our expansion strategy will cause our expenses to increase and may negatively affect our earnings