First Northwest Bancorp (FNWB) AI Stock Analysis

• Market Cap: $96.79M
• Dividend Yield: 2.71%
• Average Volume (3M): 25.94K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.90
• Revenue Growth: 13.08%
• EPS Growth: -394.19%
• Country: US
• Employees: 270
• Sector: Financial
• Sector Strength: 77
• Industry: Banking
• EPS (TTM): -0.75
• Shares Outstanding: 9,360,666
• 10 Day Avg. Volume: 13,872
• 30 Day Avg. Volume: 25,940
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 1.93
• Price to Cash Flow (P/CF): 21.90
• P/FCF Ratio: 1.60
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $12.00
• Price Target Upside: 17.65% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

First Northwest Bancorp's score reflects its financial challenges, primarily negative earnings and cash flow strains, which weigh heavily on its overall performance. Positive technical indicators suggest potential upward movement, while leadership stability through a new CEO agreement provides a strategic advantage. However, valuation concerns due to negative earnings persist, affecting the stock's attractiveness.

First Northwest Bancorp Business Overview & Revenue Model

Company Description

First Northwest Bancorp (FNWB) is a bank holding company based in Port Angeles, Washington. It primarily serves the financial needs of individuals and businesses in the Pacific Northwest region through its wholly-owned subsidiary, First Federal Savings and Loan Association of Port Angeles. The company offers a range of financial services, including personal and business banking, mortgage lending, and investment services. FNWB focuses on providing tailored financial solutions to its customers, leveraging both traditional banking methods and modern digital platforms.

How the Company Makes Money

First Northwest Bancorp generates revenue primarily through interest income from its portfolio of loans and investments. A significant portion of its earnings comes from the interest charged on mortgage loans, commercial real estate loans, and consumer loans. Additionally, the company earns non-interest income through fees and service charges associated with deposit accounts, transaction services, and wealth management offerings. FNWB also benefits from strategic partnerships and community involvement, which enhance its market presence and customer base, supporting its overall profitability.

First Northwest Bancorp Financial Statement Overview

Summary

First Northwest Bancorp shows revenue growth but faces profitability challenges with negative earnings and margins. The balance sheet has moderate leverage, typical for banking, but declining equity is concerning. Cash flow management appears strained, with significant declines in free cash flow, indicating operational inefficiencies that need addressing.

Income Statement

The company's TTM revenue shows a moderate growth rate of 46% compared to the previous year. However, both EBIT and net income have turned negative, leading to net and EBIT margins becoming negative at -6.04% and -6.60% respectively. This indicates significant profitability challenges possibly due to increased expenses or operational inefficiencies.

Balance Sheet

First Northwest Bancorp maintains a moderate equity ratio of 7.13% with a debt-to-equity ratio of 2.19, indicating a balanced leverage position. However, the decrease in stockholders' equity over time suggests potential risks in maintaining financial stability. The ROE has turned negative due to negative net income, raising concerns about shareholder value creation.

Cash Flow

The company's free cash flow has declined sharply from the previous year, with a growth rate of -87.06%. The operating cash flow to net income and free cash flow to net income ratios are both unfavorable, highlighting a potential cash flow strain. Despite positive operating cash flow, overall cash flow management appears challenging given the current financial pressures.

Breakdown
TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
93.66M	64.13M	80.19M	73.94M	59.80M	44.81M
	Gross Profit
93.66M	64.13M	80.19M	73.94M	59.80M	44.81M
	EBIT
-6.19M	2.67M	18.49M	18.61M	13.29M	11.09M
	EBITDA
-8.07M	4.29M	18.40M	19.72M	14.95M	12.68M
	Net Income Common Stockholders
-5.66M	2.29M	15.64M	15.42M	10.34M	9.01M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
289.29M	418.79M	372.17M	470.23M	429.45M	364.32M
	Total Assets
1.26B	2.20B	2.04B	1.92B	1.65B	1.31B
	Total Debt
136.55M	320.94M	285.36M	119.28M	109.98M	112.93M
	Net Debt
110.23M	197.77M	239.76M	-6.74M	44.82M	64.19M
	Total Liabilities
1.09B	2.04B	1.88B	1.73B	1.47B	1.13B
	Stockholders Equity
172.26M	163.34M	161.57M	190.96M	186.38M	176.85M
Cash Flow		Free Cash Flow
2.11M	16.30M	12.99M	9.14M	11.44M	13.67M
	Operating Cash Flow
2.61M	17.88M	15.90M	15.15M	13.26M	14.10M
	Investing Cash Flow
-83.51M	-84.19M	-237.65M	-136.86M	-315.95M	-19.95M
	Financing Cash Flow
81.35M	143.89M	141.32M	182.57M	319.11M	28.27M

First Northwest Bancorp Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 10.20
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FNWB, the sentiment is Negative. The current price of 10.2 is below the 20-day moving average (MA) of 10.80, below the 50-day MA of 10.61, and below the 200-day MA of 10.35, indicating a bearish trend. The MACD of -0.12 indicates Positive momentum. The RSI at 38.83 is Neutral, neither overbought nor oversold. The STOCH value of 43.75 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FNWB.

First Northwest Bancorp Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HFWA	72 Outperform	$804.22M	19.29	5.04%	3.89%	4.64%	-28.68%
BANR	71 Outperform	$2.14B	12.91	9.86%	3.05%	11.04%	-8.38%
CIVB	70 Outperform	$296.48M	9.47	8.10%	3.41%	11.16%	-26.17%
WSBC	69 Neutral	$2.92B	13.77	5.69%	4.67%	13.59%	-10.62%
Sector *	64 Neutral	$13.80B	10.64	9.23%	4.22%	17.66%	-7.66%
COLB	63 Neutral	$5.01B	9.61	10.55%	5.88%	7.84%	54.79%
FNWB	55 Neutral	$96.79M	―	-4.17%	2.71%	13.08%	-394.19%

First Northwest Bancorp Corporate Events

First Northwest Bancorp Q4 Loss and Dividend Update

On January 29, 2025, First Northwest Bancorp reported a net loss of $2.8 million for Q4 2024, a slight increase from the previous quarter but an improvement from the same period in 2023. The company also declared a $0.07 per share quarterly cash dividend, payable in February 2025, reflecting a strategic focus on maintaining shareholder value despite challenges. The report highlighted improvements in pre-provision net revenue, asset quality, and liquidity, alongside a continued restructuring of the balance sheet to reduce interest rate risk and enhance earnings. Additionally, the company completed significant investments and restructured its bank-owned life insurance policies to yield better returns, indicating a proactive approach to financial management amidst elevated credit costs.

First Northwest Bancorp Secures CEO with New Agreement

First Northwest Bancorp, through its subsidiary First Fed Bank, has announced a new employment agreement with its President and CEO, Matthew P. Deines. Under this agreement, Mr. Deines will continue in his role with a base salary of $515,000 and will be eligible for bonuses and equity awards. The agreement includes clauses that prevent Mr. Deines from soliciting employees or customers for a year after his employment ends and from competing within the company’s territory. This agreement provides stability in leadership for First Northwest, potentially strengthening its market position and ensuring continuity in strategic initiatives.

First Northwest Bancorp Unveils New Investor Presentation

First Northwest Bancorp is preparing to engage investors and analysts with a new presentation starting November 4, 2024, which may be used in various forms and updated over time. This move highlights the company’s ongoing efforts to communicate its strategies and performance effectively to the financial community.