First Fed Announces Workforce Reduction

Rhea-AI Summary

First Northwest Bancorp (FNWB) announced a 5% workforce reduction to optimize operating expenses and realign resources. This decision, stemming from a thorough review of roles, aims to save approximately $1.3 million annually. One-time costs related to this restructuring are estimated at $225,000. Following the layoffs, First Fed Bank will employ around 280 team members. CEO Matthew Deines emphasized the necessity of this action to maintain high-quality banking services for customers and communities.

Positive

• Expected annual operating expense reduction of approximately $1.3 million.
• Strategic restructuring aligns resources with market conditions.

Negative

• One-time costs associated with the workforce reduction estimated at $225,000.
• Reduction in workforce may impact employee morale and productivity.

PORT ANGELES, Wash., Sept. 22, 2022 (GLOBE NEWSWIRE) -- First Fed Bank, subsidiary of First Northwest Bancorp (FNWB), today announced it has reduced its workforce by approximately 5% through position elimination and attrition. The bank is implementing organizational restructuring to optimize operating expenses and align resources to market conditions and opportunities.

The workforce reduction is the result of a comprehensive review of existing positions at the bank to assess whether certain roles and responsibilities were necessary or could be absorbed by other employees or automation. Through this process it was determined that it is in the best interest of the bank to eliminate certain positions and to decline to replace other positions following the departure of certain employees. Severance packages include an additional month of employee benefits, career coaching and payments aligned to years of service.

The bank estimates one-time costs associated with the workforce reduction are $225,000 and will reduce annual operating expenses by approximately $1.3 million in future quarters. After the reduction, First Fed will have approximately 280 team members.

"I would like to express my sincere gratitude to the talented group of professionals affected by today's announcement," said Matthew Deines, President and Chief Executive Officer. "While making the decision to reduce our workforce was very difficult, it was a necessary step to better align our resources and enable us to continue to provide first class banking solutions to the customers and communities we serve."

About FNWB

First Northwest Bancorp (Nasdaq: FNWB) is a bank holding company engaged in investment activities including the business activity of its subsidiary, First Fed Bank. First Fed is a community-oriented financial institution which has served customers and communities since 1923. Currently First Fed has 16 locations in Washington state including 12 full-service branches. First Fed’s business and operating strategy is focused on building sustainable earnings by delivering a full array of financial products and services for individuals, small business, and commercial customers. Additionally, First Fed focuses on strategic partnerships with financial technology (“fintech”) companies to develop and deploy digitally focused financial solutions to meet customers’ needs on a broader scale. FNWB also invests in fintech companies directly as well as through select venture capital partners. Fintech partnerships include banking-as-a-service, digital payments, and marketplace lending. FNWB was incorporated in 2012 and is headquartered in Port Angeles, Washington.

First Fed has been recognized by Puget Sound Business Journal as a “middle market fast 50,” best workplace, and top corporate philanthropist in 2022. Also, the community bank received a best-in-state bank award from Forbes in 2021. First Fed is a Member FDIC and equal housing lender.

Contact:
Matthew P. Deines
President & CEO
360-457-0461

FAQ

What changes did First Northwest Bancorp (FNWB) announce on September 22, 2022?

FNWB announced a 5% workforce reduction through position elimination and attrition to optimize operating expenses.

How much will FNWB save annually from the workforce reduction?

FNWB expects to save approximately $1.3 million annually from the workforce reduction.

What are the one-time costs associated with FNWB's workforce reduction?

The one-time costs related to the workforce reduction are estimated at $225,000.

How many employees will FNWB have after the workforce reduction?

After the reduction, FNWB will have approximately 280 team members.