FIRST NORTHWEST BANCORP: Entering into a Material Definitive Agreement, Creating a Direct Financial Obligation or an Obligation Under an Off-Balance Sheet Arrangement of a Registrant (Form 8-K)

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Item 1.01. Conclusion of a significant definitive agreement.

On May 20, 2022, First North West Bancorp (the “Company”) has entered into a loan agreement (the “Loan Agreement”) with NexBank (the “Lender”) which provides the Company with a $20 million revolving line of credit (the “Credit Facility”) secured by a general lien on all personal property of the Company (with certain exclusions), including all outstanding shares of the Company’s wholly-owned subsidiary First federal bank, under a security agreement in favor of the lender. The credit facility matures on May 19, 2023, unless extended in accordance with the loan agreement. Amounts borrowed under the Credit Facility will bear interest at a rate equal to fifty basis points (0.50%) above the prime rate set forth in the the wall street journal, calculated daily, but in no event less than 4.00% (the “Applicable Rate”). From May 23, 2022the Applicable Rate is 4.50%.

The Loan Agreement contains customary affirmative and negative covenants and requirements relating to the Company and its operations, including a requirement that each of the Company and First federal bank maintain a debt to equity ratio of eight percent or more at the end of each fiscal quarter. “Leverage Ratio” means the ratio (expressed as a percentage) on the last day of any fiscal quarter of (a) Tier 1 capital (as defined in the regulations of the applicable banking regulator) to (b) the average total assets. Accrued interest is payable on the last day of each calendar quarter on the amount borrowed outstanding on the revolving credit note, the amounts, if any, being paid in addition to accrued interest, late fees or similar amounts applied to the reduction in the amount borrowed.

The Guarantee Agreement also contains customary affirmative and negative covenants, as well as requirements for the Company’s pledge of all outstanding shares of First federal bank. If an event of default as defined in the Loan Agreement occurs, the Lender may declare that all outstanding obligations under the Loan Agreement are immediately due and payable and may enforce any lien or security under the Loan Agreement. guarantee.

The above summary of the Loan Agreement, Guarantee Agreement and Revolving Credit Note does not purport to be complete and is submitted and qualified by reference to the documents attached hereto as Exhibits 10.1, 10.2 and 10.3, respectively, to this current report on Form 8-K and incorporated herein by reference.

Section 2.03. Creation of a direct financial obligation or an obligation under an off-balance sheet arrangement of a registrant.

The information set forth in Section 1.01 of this Current Report on Form 8-K is incorporated by reference into this Section 2.03.

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