Our current and future uses of Artificial Intelligence (AI) and other emerging technologies may create additional risks.
Sees AI as a riskDetail: GeneralNew this year
Similar wording appears in 4 other banks' reports.
First Financial Northwest, Inc.
WA · Mid-size bank ($1B to $50B)
Total assets of FDIC-insured bank subsidiaries: $1.4B at the end of 2024
Filings on the SEC website · This bank on Bankgraph
In short. In its 2024 annual report, First Financial Northwest, Inc. mentions AI in 4 passages. It lists AI as a risk and explains how AI is controlled. Compared with banks of its size, it gives more detail than most.
In the 2024 annual reportThe yearly report a listed company files with the SEC, called a 10-K. It describes the business, its risks and its results.
Mentions AI
Yes
4 passages
Highest detail levelHow specific a passage is about AI at this bank. General: could be in any bank's report. Names an area: says where AI is used or how it is controlled. Concrete example: names a tool or vendor, gives a number, a date or a result.
Names an area
What it says
Sees AI as a risk
Kinds of AI named
None named
How AI is controlled
Human review, Model risk management, Policy or framework, Staff training
AI in its annual reports over time
- What this shows
- How many passages about AI each annual report contains, 2022 to 2024, by what they say.
- What it means
- 0 passages in 2022, 4 passages in 2024.
- How to read it
- Each bar is a report year, split by what the passages say. Hover or tap a bar for the count.
- Where it comes from
- Banks' annual reports (10-K) filed with the SEC, up to 6 Oct 2026. How we did this
Show as a table
| Report year | Using or planning AI | Explains how AI is controlled | Sees AI as a risk | Other mentions |
|---|---|---|---|---|
| 2022 | ||||
| 2022 | ||||
| 2022 | ||||
| 2022 | ||||
| 2023 | ||||
| 2023 | ||||
| 2023 | ||||
| 2023 | ||||
| 2024 | ||||
| 2024 | ||||
| 2024 | ||||
| 2024 |
Compared with banks of its size
- What this shows
- This bank's 2024 annual report next to all 230 banks of its size ($1B to $50B).
- What it means
- Its most specific passage is "Names an area"; for banks of its size the typical level is "General".
- How to read it
- Yes or no for this bank; the share of banks of the same size for comparison.
- Where it comes from
- Banks' annual reports (10-K) filed with the SEC, up to 6 Oct 2026. How we did this
| In the 2024 report | This bank | Banks of its size |
|---|---|---|
| Using AI now | No | 10 of 230 (4%) |
| Explains how AI is controlled | Yes | 21 of 230 (9%) |
| Sees AI as a risk | Yes | 144 of 230 (63%) |
| Mentions generative AI | No | 70 of 230 (30%) |
| Mentions AI agents | No | 0 of 230 (0%) |
What changed from 2023
4 passages new in the 2024 report, 0 passages from the 2023 report no longer there. The most specific passage is more detailed than last year.
Every passage about AI
- What this shows
- All 4 passages about AI in this bank's annual reports, quarterly reports and earnings materials since 2023, newest first.
- What it means
- 0 passages say the bank is using AI now.
- How to read it
- Highlighted words are the terms that matched. Labels show what each passage says. Follow the link to read it in the filing.
- Where it comes from
- Banks' annual reports (10-K), quarterly reports (10-Q) and earnings materials (8-K) filed with the SEC. How we did this
Annual report, report year 2024 filed 20 Mar 2025
The increasing adoption of AI in financial services presents significant opportunities but also introduces a range of risks that could impact our operations, regulatory compliance, and customer trust. AI introduces model risk, where flawed algorithms or biased data could result in inaccurate credit decisions, compliance violations, or discriminatory outcomes in lending or customer service. Cybersecurity threats, such as data breaches, adversarial attacks, and data poisoning, pose significant challenges, particularly as these systems handle large volumes of sensitive customer information. Additionally, the opaque nature of some AI models, often referred to as "black-box" systems, raises regulatory compliance concerns, as regulators increasingly require transparency and explainability in AI-driven decision-making.
Sees AI as a riskDetail: GeneralNew this year
Operational risks also arise from potential system failures, over-reliance on AI, and integration challenges with existing infrastructure. Disruptions in AI systems could impact critical functions such as fraud detection, transaction monitoring, and customer support. Ethical and reputational risks, including unintended consequences or perceived unfairness in AI-driven decisions, may erode customer trust and expose us to regulatory scrutiny.
Sees AI as a riskDetail: Names an areaNew this year
Mitigate these risks requires a robust governance framework, regularly testing and auditing of AI models, and strong human oversight. Investments in cybersecurity, data privacy protections, and employee training are critical to managing these risks.
Sees AI as a riskDetail: GeneralNew this year
Similar wording appears in 4 other banks' reports.