---
schema_version: "secwatch.filing_event.v1"
accession: "0001437749-25-023050"
form_type: "8-K"
ticker: "FNWB"
cik: "0001556727"
company_name: "First Northwest Bancorp"
filed_at: "2025-07-21T23:59:59+00:00"
generated_at: "2026-05-18T05:04:12.407407+00:00"
event_type: "litigation"
sentiment: "neutral"
materiality_score: 0.55
calibrated_materiality_score: 0.55
confidence: "high"
source: SEC EDGAR
---

# First Northwest Bancorp settles bankruptcy adversary proceeding; to pay $2.87M-$5.74M

## Summary
- Bank entered Settlement Agreement on July 17, 2025 to resolve adversary proceeding related to OpCo Debtors and Ideal Property.
- Bank will release certain liens and make cash payments of $2.87M to $5.74M, depending on creditor participation in release.
- Bank reserved $5.8M in Q1 2025 as noninterest expense for this matter and intends to seek insurance reimbursement.
- Settlement eliminates risks, costs, and distraction associated with the Adversary Proceeding for the Bank and Company.

## SEC filing metadata
- accession: 0001437749-25-023050
- form_type: 8-K
- ticker: FNWB
- cik: 0001556727
- company_name: First Northwest Bancorp
- filed_at: 2025-07-21T23:59:59+00:00
- event_type: litigation
- sentiment: neutral
- materiality_score: 0.55
- calibrated_materiality_score: 0.55
- confidence: high
- sec_items: 8.01
- EDGAR index: https://www.sec.gov/Archives/edgar/data/1556727/000143774925023050/0001437749-25-023050-index.htm
- EDGAR primary document: https://www.sec.gov/Archives/edgar/data/1556727/000143774925023050/fnwb20250721_8k.htm

## Machine-readable alternates
- HTML: https://secwatch.observer/filing/0001437749-25-023050
- JSON: https://secwatch.observer/filing/0001437749-25-023050.json
- Plain text: https://secwatch.observer/filing/0001437749-25-023050.txt

This AI-assisted summary is a reading aid. Review the linked SEC EDGAR filing before relying on any specific claim.