First Northwest Bancorp in Port Angeles, Wash., had a noisy second quarter that included a balance sheet restructuring, a sale-leaseback transaction and a spike in its loan-loss provision.
The $2.2 billion-asset company also announced in its press release that it cut about 9% of its workforce.
Net income fell 22% from a year earlier, to $1.4 million.
During the quarter, First Northwest sold six branches for a net gain of $7.9 million. The company will lease the locations.
The company also sold $23.2 million of lower-yielding securities at a $2.1 million loss.
First Northwest also set aside $4.2 million to cover potential loan losses. The company pointed to two borrowing relationships where it appointed a receiver.
The company, which converted lower-yielding bank-owned life insurance in the first quarter, said it plans two more policy restructures during the second half of this year.
The release provided no update on a 2023 consent order with the Federal Deposit Insurance Corp. that instructed the company to correct violations of consumer protection laws.