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1. Company Snapshot

1.a. Company Description

First Northwest Bancorp operates as a bank holding company for First Fed Bank that provides commercial and consumer banking services to individuals, businesses, and nonprofit organizations in western Washington, the United States.It accepts various deposit instruments, including checking, money market deposit, savings, and transaction accounts, as well as certificates of deposit.The company also originates one- to four-family mortgage loans, commercial and multi-family real estate loans, construction and land loans, and commercial business loans, as well as consumer loans primarily consisting of automobile loans, and home-equity loans and lines of credit.


It operates through 12 full-service branches and a lending center in Seattle.The company was founded in 1923 and is based in Port Angeles, Washington.

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1.b. Last Insights on FNWB

First Northwest Bancorp's recent performance was negatively impacted by a Q4 earnings miss, with quarterly earnings of $0.04 per share, falling short of the Zacks Consensus Estimate of $0.09 per share. The company's net income also declined to $382,000 in Q4 2025 from $802,000 in Q3 2025. Additionally, the retirement of Norman J. Tonina, Jr. from the boards of directors may have raised concerns about leadership stability. The company's profitability and earnings have been under scrutiny, with comparisons to peers such as First Northern Community Bancorp and Bank of Marin Bancorp.

1.c. Company Highlights

2. Transcript Summary

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3. NewsRoom

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First Northwest Bancorp (FNWB) Q4 Earnings Miss Estimates

Jan -29

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First Northwest Bancorp Announces Fourth Quarter 2025 Results

Jan -29

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First Northern Community Bancorp (OTCMKTS:FNRN) and First Northwest Bancorp (NASDAQ:FNWB) Head-To-Head Comparison

Jan -04

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Financial Contrast: Bank of Marin Bancorp (NASDAQ:BMRC) vs. First Northwest Bancorp (NASDAQ:FNWB)

Dec -31

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First Northwest Bancorp and First Fed Announce the Retirement of Norman Tonina, Jr. from Boards of Directors

Dec -10

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First Northwest Bancorp (FNWB) Misses Q3 Earnings and Revenue Estimates

Oct -27

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First Northwest Bancorp Announces Third Quarter 2025 Results

Oct -27

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First Northwest Bancorp (FNWB) Soars 5.0%: Is Further Upside Left in the Stock?

Sep -29

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (15.00%)

6. Segments

Commercial and Consumer Banking

Expected Growth: 15%

Strong loan growth driven by commercial real estate and residential mortgage lending, coupled with expansion in deposit base and fee income. Effective cost management and improved operating efficiency also contributed to growth. Additionally, strategic investments in digital banking and customer experience initiatives enhanced customer acquisition and retention, supporting 15% growth in Commercial and Consumer Banking segment.

7. Detailed Products

Personal Banking

First Northwest Bancorp offers a range of personal banking services, including checking and savings accounts, credit cards, loans, and investment products.

Business Banking

The company provides business banking services, including commercial loans, cash management, and treasury management solutions.

Mortgage Lending

First Northwest Bancorp offers a variety of mortgage loan options, including fixed-rate and adjustable-rate loans, for homebuyers and homeowners.

Wealth Management

The company provides wealth management services, including investment advice, portfolio management, and retirement planning.

Online Banking

First Northwest Bancorp offers online banking services, allowing customers to manage their accounts, pay bills, and transfer funds online.

Mobile Banking

The company provides mobile banking services, enabling customers to access their accounts, deposit checks, and transfer funds on-the-go.

8. First Northwest Bancorp's Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for First Northwest Bancorp is medium due to the presence of alternative banking services and financial institutions.

Bargaining Power Of Customers

The bargaining power of customers for First Northwest Bancorp is low due to the lack of concentration of buyers and the limited ability of customers to negotiate prices.

Bargaining Power Of Suppliers

The bargaining power of suppliers for First Northwest Bancorp is medium due to the presence of multiple suppliers and the moderate level of dependence on these suppliers.

Threat Of New Entrants

The threat of new entrants for First Northwest Bancorp is low due to the high barriers to entry in the banking industry, including regulatory hurdles and capital requirements.

Intensity Of Rivalry

The intensity of rivalry for First Northwest Bancorp is high due to the presence of multiple competitors in the banking industry, leading to a highly competitive market.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 66.33%
Debt Cost 8.22%
Equity Weight 33.67%
Equity Cost 8.22%
WACC 8.22%
Leverage 197.04%

11. Quality Control: First Northwest Bancorp passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Alerus Financial

A-Score: 5.9/10

Value: 6.7

Growth: 3.0

Quality: 6.3

Yield: 7.0

Momentum: 5.0

Volatility: 7.7

1-Year Total Return ->

Stock-Card
Nicolet Bankshares

A-Score: 5.9/10

Value: 5.8

Growth: 6.3

Quality: 8.0

Yield: 1.0

Momentum: 7.0

Volatility: 7.3

1-Year Total Return ->

Stock-Card
First Northwest Bancorp

A-Score: 5.5/10

Value: 9.3

Growth: 5.4

Quality: 3.8

Yield: 4.0

Momentum: 3.5

Volatility: 7.0

1-Year Total Return ->

Stock-Card
Summit State Bank

A-Score: 5.4/10

Value: 7.2

Growth: 3.4

Quality: 3.8

Yield: 3.0

Momentum: 9.5

Volatility: 5.7

1-Year Total Return ->

Stock-Card
Old Point Financial

A-Score: 5.2/10

Value: 4.1

Growth: 5.3

Quality: 5.9

Yield: 3.0

Momentum: 5.0

Volatility: 8.0

1-Year Total Return ->

Stock-Card
Kentucky First Federal

A-Score: 4.3/10

Value: 3.1

Growth: 1.9

Quality: 4.6

Yield: 4.0

Momentum: 10.0

Volatility: 2.3

1-Year Total Return ->

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

9.38$

Current Price

9.38$

Potential

-0.00%

Expected Cash-Flows