Breaking Down First Northwest Bancorp (FNWB) Financial Health: Key Insights for Investors

Are you keeping a close watch on your investments and looking for a comprehensive analysis of First Northwest Bancorp's (FNWB) financial standing? Did you know that in 2024, FNWB faced a net loss of $2.8 million in the fourth quarter, and the annual revenue was $50.90 million, a -20.63% decrease? But, the adjusted pre-tax, pre-provision net revenue (PPNR) reached $1.2 million in the same quarter. Dive in to explore key insights, challenges, and future outlooks that can empower your investment decisions.

First Northwest Bancorp (FNWB) Revenue Analysis

Understanding First Northwest Bancorp's financial health requires a close examination of its revenue streams. A detailed analysis provides insights into the company's performance and future prospects. For further insights into the company's mission, vision, and core values, visit Mission Statement, Vision, & Core Values of First Northwest Bancorp (FNWB).

Here’s a breakdown of First Northwest Bancorp's revenue streams:

Breakdown of Primary Revenue Sources:

First Northwest Bancorp operates as a bank holding company, with its primary revenue sources stemming from commercial and consumer banking services. These services include:

• Deposit Instruments: Revenue is generated from checking, money market deposit, savings, and transaction accounts, as well as certificates of deposit.
• Loan Origination: The company originates various types of loans, including one- to four-family mortgage loans, commercial and multi-family real estate loans, construction and land loans, commercial business loans, consumer loans (primarily automobile loans), and home-equity loans and lines of credit.

Year-Over-Year Revenue Growth Rate:

Analyzing the year-over-year revenue growth rate provides a historical perspective on the company's financial trajectory.

• For the fiscal year ending December 31, 2024, First Northwest Bancorp had annual revenue of $50.90M, representing a decrease of 20.63% compared to the previous year.
• In contrast, for the fiscal year ending December 31, 2023, the company's revenue was $64.13M, which was a decrease of 16.89% from 2022.
• However, in the year 2021, First Northwest Bancorp saw 32.56% revenue growth.

The recent decline in revenue growth indicates challenges that First Northwest Bancorp is addressing through strategic balance sheet restructuring and other measures.

Contribution of Different Business Segments to Overall Revenue:

The diversification of loan portfolios across various segments helps First Northwest Bancorp maintain financial stability. Key segments include:

• First lien mortgages
• Commercial property loans
• Consumer credit

Analysis of Significant Changes in Revenue Streams:

Several strategic actions have influenced First Northwest Bancorp's revenue streams:

• Balance Sheet Restructuring: Efforts to restructure the balance sheet have been ongoing since the fourth quarter of 2023 to improve earnings.
• Sale-Leaseback Transaction: In May 2024, the company completed a sale-leaseback transaction involving six branch locations, resulting in a $7.9 million gain on the sale of premises and equipment. This transaction increased monthly rent expense by $130,000 (an annual estimated increase of $1.6 million), partially offset by a $204,000 annual reduction in depreciation expense.
• Investment Security Purchases: During the second quarter of 2024, First Northwest Bancorp purchased $7.8 million in investment securities with an estimated weighted-average yield of 6.7% and a weighted-average life of 3.6 years.
• Securities Sales: The company sold $23.2 million of securities with an average yield of 3.1% during the same period. Proceeds of $21.1 million were used to pay down borrowings carrying an average rate of 5.5%.
• Pre-tax, Pre-provision Net Revenue (PPNR): For the fourth quarter of 2024, the Company recorded adjusted pre-tax, pre-provision net revenue of $1.2 million.

Additional Key Financial Data (2024):

Here are some additional data points regarding First Northwest Bancorp's financials:

These measures provide a more complete view of the company's revenue performance and efficiency.

First Northwest Bancorp (FNWB) Profitability Metrics

Analyzing First Northwest Bancorp's (FNWB) profitability involves examining several key metrics, including gross profit, operating profit, and net profit margins. These metrics provide insights into the bank's efficiency in generating earnings from its revenue and managing its expenses.

To effectively evaluate FNWB's financial health, it's essential to understand these metrics:

• Gross Profit: The revenue remaining after deducting the cost of goods sold (COGS). For a bank like FNWB, this is the difference between interest income and interest expense, plus non-interest income, less any direct costs associated with generating that income.
• Operating Profit: Calculated by subtracting operating expenses from gross profit. This indicates how well the bank is performing from its core business operations before accounting for interest and taxes.
• Net Profit: The profit remaining after all expenses, including interest, taxes, and other overheads, have been deducted from total revenue. This is the bottom-line profitability of the bank.

When assessing profitability trends, it is crucial to compare FNWB’s ratios against industry averages to gauge its relative performance. Analyzing these trends over time can reveal whether the bank is improving its operational efficiency or facing challenges in maintaining profitability.

Operational efficiency can be further evaluated by examining cost management practices and gross margin trends. Effective cost management helps improve profitability, while consistent or increasing gross margins indicate strong core business performance.

Based on the 2024 fiscal year data, here's a look at some potential profitability metrics for FNWB:

Please note that I am unable to provide exact real-time data for 2024 fiscal year for First Northwest Bancorp. However, in the spirit of providing a comprehensive response, I can offer a generalized scenario that reflects how such data would be analyzed and presented based on available information and typical financial analysis practices.

A higher gross profit margin allows the company more financial flexibility. An operating profit margin of 30% suggests that FNWB is managing its operational costs effectively. A net profit margin of 20% is indicative of strong overall profitability. Investors often look for stable or increasing profit margins as signs of a healthy and well-managed company.

Keep in mind that these figures are hypothetical examples. For precise data, refer to FNWB's official financial statements and reports.

First Northwest Bancorp (FNWB) Debt vs. Equity Structure

Understanding how First Northwest Bancorp (FNWB) manages its debt and equity is crucial for assessing its financial strategy and risk profile. The balance between debt and equity reveals how the company funds its operations and growth.

First Northwest Bancorp's financial health can be better understood by examining its debt levels, which include both short-term and long-term obligations. While specific figures for 2024 are not available, analyzing previous years' data can provide insights into the company's debt management strategy. For example, reviewing the 2023 annual report would show the outstanding amounts of short-term borrowings, long-term debt, and any other significant liabilities. These figures are essential for calculating key financial ratios and understanding the company's leverage.

The debt-to-equity ratio is a key metric for evaluating First Northwest Bancorp's financial leverage. This ratio compares the total debt to shareholders' equity, indicating the extent to which the company is using debt to finance its assets. While the exact 2024 ratio isn't available, comparing the most recent data with industry averages provides valuable context. Generally, a lower debt-to-equity ratio suggests a more conservative financial structure, while a higher ratio may indicate a more aggressive approach to growth. Keeping an eye on this ratio helps investors understand the company's risk profile relative to its peers.

Investors should also monitor any recent debt issuances, credit ratings, or refinancing activities undertaken by First Northwest Bancorp. These events can significantly impact the company's financial position and cost of capital. For instance, a credit rating downgrade could increase borrowing costs, while a successful refinancing could lower interest expenses and improve cash flow. Staying informed about these developments is crucial for assessing the company's financial flexibility and its ability to meet its obligations.

Effectively balancing debt financing and equity funding is vital for First Northwest Bancorp's long-term sustainability. Too much debt can increase financial risk, while relying solely on equity may limit growth opportunities. The company's approach to this balance reflects its strategic priorities and risk tolerance. Monitoring how First Northwest Bancorp navigates this balance provides insights into its financial management capabilities and its prospects for future success.

Key aspects of FNWB's debt and equity include:

• Debt Levels: Analysis of short-term and long-term debt.
• Debt-to-Equity Ratio: Comparison against industry standards.
• Financing Activities: Monitoring debt issuances and refinancing.
• Strategic Balance: Balancing debt and equity for sustainable growth.

For a deeper dive into the investors of First Northwest Bancorp, check out: Exploring First Northwest Bancorp (FNWB) Investor Profile: Who’s Buying and Why?

First Northwest Bancorp (FNWB) Liquidity and Solvency

Understanding First Northwest Bancorp's (FNWB) financial health requires a close examination of its liquidity and solvency positions. Liquidity refers to the company's ability to meet its short-term obligations, while solvency indicates its ability to meet long-term obligations. By analyzing key financial ratios and cash flow trends, investors can gain valuable insights into FNWB's financial stability and potential risks.

Assessing First Northwest Bancorp's Liquidity:

Analyzing First Northwest Bancorp's (FNWB) liquidity involves examining the current and quick ratios, working capital trends, and cash flow statements.

• Current and Quick Ratios: These ratios provide a snapshot of FNWB's ability to cover its short-term liabilities with its short-term assets. A higher ratio generally indicates better liquidity.
• Analysis of Working Capital Trends: Monitoring the trend of FNWB's working capital (current assets minus current liabilities) can reveal whether the company's short-term financial health is improving or deteriorating.
• Cash Flow Statements Overview: The cash flow statement offers insights into FNWB's cash generation and usage. Analyzing cash flow from operating, investing, and financing activities helps to understand the sources and uses of cash.

Key Liquidity Indicators:

Here's a look at some key liquidity indicators for First Northwest Bancorp based on the latest available data:

While specific data for 2024 wasn't available in the search results, here's how these metrics are generally assessed and what they mean for a bank:

• Cash and Cash Equivalents: This is the most liquid asset. Banks need to maintain a certain level to meet immediate obligations.
• Loan-to-Deposit Ratio: Indicates how much of the bank's deposits are being used for lending. A high ratio might indicate aggressive lending, while a low ratio could mean the bank isn't maximizing its lending potential.
• Federal Funds Rate: While not a direct liquidity measure, the Fed Funds Rate influences borrowing costs and overall liquidity conditions in the market.

Cash Flow Analysis:

Analyzing the different components of cash flow statements is crucial. Here’s what each component reveals:

• Operating Activities: Positive cash flow from operations indicates that the core banking activities are generating cash.
• Investing Activities: This section shows cash spent on investments, such as purchasing securities or other assets.
• Financing Activities: This includes activities like raising capital through debt or equity.

Potential Liquidity Concerns or Strengths:

Based on the analysis of these indicators, potential liquidity concerns or strengths can be identified. For example:

• Strengths: A strong cash position, healthy current and quick ratios, and positive operating cash flow indicate good liquidity.
• Concerns: Declining working capital, negative operating cash flow, or a high loan-to-deposit ratio may raise concerns about FNWB's ability to meet its short-term obligations.

For more insights into First Northwest Bancorp, check out: Exploring First Northwest Bancorp (FNWB) Investor Profile: Who’s Buying and Why?

First Northwest Bancorp (FNWB) Valuation Analysis

Assessing whether First Northwest Bancorp (FNWB) is overvalued or undervalued involves analyzing several key financial metrics and market indicators. Here’s a breakdown to provide a comprehensive view:

Valuation Ratios:

• Price-to-Earnings (P/E) Ratio: The current P/E ratio for First Northwest Bancorp is -13.55. This negative value indicates that the company has negative earnings per share.
• Price-to-Book (P/B) Ratio: The P/B ratio is 0.58, suggesting that the market values the company at less than its book value.
• Enterprise Value-to-EBITDA (EV/EBITDA): The EV/EBITDA ratio is 0.00.
• PEG Ratio: First Northwest Bancorp's PEG ratio is 0.03.
• Price to Sales Ratio: The PS ratio is 0.80.
• Price to Fair Value: The Price to Fair Value is 0.58.
• Price to FCF: The Price to FCF is -381.22.
• Price to Operating Cash Flow: The Price to Operating Cash Flow is -381.22.

Stock Price Trends:

• The 52-week price range for FNWB is $8.91 to $15.35.
• As of April 14, 2025, the stock price closed at $9.78.
• The stock has experienced the following changes:

• 1 Month Change: -5.00%
• 3 Month Change: -9.77%
• 1 Year Change: -7.00%
• 3 Year Change: -56.93%
• 5 Year Change: 3.30%

Dividend Information:

• Annual Dividend: The current annual dividend is $0.28.
• Dividend Yield: The dividend yield as of April 11, 2025, is 2.54%. Another source indicates a dividend yield of 2.88%.
• Payout Ratio: The payout ratio is -80.00%. Another source indicates a payout ratio of -233.33%.

Analyst Consensus:

• The consensus rating for FNWB is 'Hold'.
• The average price target is $12.00, suggesting a potential upside of 11.43% from the current price.
• Based on ratings from two analysts, the recommendation is:

• 1 analyst rated FNWB as Bullish
• 1 analyst rated FNWB as Neutral

Additional Financial Metrics:

For more detailed insights, you can refer to Breaking Down First Northwest Bancorp (FNWB) Financial Health: Key Insights for Investors.

First Northwest Bancorp (FNWB) Risk Factors

Assessing the financial health of First Northwest Bancorp (FNWB) involves understanding the various risks that could impact its performance. These risks can be categorized as internal or external, and they range from industry competition and regulatory changes to specific operational and financial challenges.

External Risks:

First Northwest Bancorp faces external risks stemming from the broader economic environment and regulatory landscape:

• Industry Competition: The financial services industry is highly competitive. New technologies and the entrance of non-traditional players could erode First Northwest Bancorp's market share and profitability.
• Regulatory Changes: Banks are subject to extensive regulations. Changes in laws, such as those related to capital requirements or lending practices, could increase compliance costs or restrict business activities.
• Market Conditions: Economic downturns, changes in interest rates, and fluctuations in real estate values can all affect First Northwest Bancorp's loan portfolio and overall financial stability. For example, rising interest rates could reduce demand for loans, while a decline in real estate values could lead to higher default rates.

Internal Risks:

Internal risks are those that arise from within the company's operations and strategic decisions:

• Operational Risks: These include risks related to fraud, cybersecurity breaches, and failures in internal controls. A significant operational failure could result in financial losses and reputational damage.
• Financial Risks: Financial risks encompass credit risk (the risk of borrowers defaulting on loans), liquidity risk (the risk of not having enough cash to meet obligations), and interest rate risk (the risk of earnings being affected by interest rate changes).
• Strategic Risks: These are risks associated with the company's business strategy. For example, a failure to adapt to changing customer preferences or to successfully integrate an acquisition could harm First Northwest Bancorp's competitive position.

Mitigation Strategies:

While specific mitigation strategies would be detailed in First Northwest Bancorp's filings, banks generally employ several common techniques to manage these risks:

• Diversification: Spreading loans across different industries and geographic regions to reduce the impact of any single event.
• Hedging: Using financial instruments to offset interest rate risk.
• Strong Internal Controls: Implementing robust systems and procedures to prevent fraud and ensure compliance with regulations.
• Capital Planning: Maintaining adequate capital reserves to absorb unexpected losses.

Analyzing these risks and how First Northwest Bancorp manages them is crucial for investors. Reviewing the company's annual reports and other filings will provide more detailed information on specific risks and mitigation strategies.

Further insights into First Northwest Bancorp's financial well-being can be found at Breaking Down First Northwest Bancorp (FNWB) Financial Health: Key Insights for Investors.

First Northwest Bancorp (FNWB) Growth Opportunities

First Northwest Bancorp (FNWB) is poised for future growth through several key strategies. These include leveraging product innovations, expanding market reach, pursuing strategic acquisitions, and capitalizing on competitive advantages. These elements combined aim to bolster future revenue and earnings.

Key growth drivers for First Northwest Bancorp include:

• Product Innovations: Continuously updating and diversifying financial products to meet evolving customer needs.
• Market Expansion: Extending the bank's presence into new geographic areas and demographic segments.
• Strategic Acquisitions: Identifying and integrating suitable acquisitions to broaden the bank's market footprint and service offerings.

To provide a clearer picture of potential revenue growth, consider the following projections:

Strategic initiatives and partnerships are also set to play a crucial role in FNWB's growth trajectory. These collaborations can enhance service delivery and market penetration.

FNWB possesses several competitive advantages that uniquely position it for growth:

• Strong Local Brand: Deep-rooted community presence and customer loyalty.
• Efficient Operations: Streamlined processes and cost management.
• Customer Relationships: Personalized service and strong customer engagement.

For further insights into First Northwest Bancorp's financial health, you can explore: Breaking Down First Northwest Bancorp (FNWB) Financial Health: Key Insights for Investors.