NasdaqGS:FFNW

Stock Analysis Report

First Financial Northwest

Executive Summary

First Financial Northwest, Inc. operates as the holding company for First Financial Northwest Bank that provides commercial banking services in Washington.

Snowflake

Fundamentals

Flawless balance sheet average dividend payer.


Similar Companies

Share Price & News

How has First Financial Northwest's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

0.7%

FFNW

2.9%

US Banks

0.07%

US Market


1 Year Return

3.9%

FFNW

8.6%

US Banks

8.9%

US Market

Return vs Industry: FFNW underperformed the US Banks industry which returned 8.6% over the past year.

Return vs Market: FFNW underperformed the US Market which returned 8.9% over the past year.


Shareholder returns

FFNWIndustryMarket
7 Day0.7%2.9%0.07%
30 Day-4.1%3.4%-0.3%
90 Day-3.5%2.1%-1.6%
1 Year6.2%3.9%11.8%8.6%11.3%8.9%
3 Year4.3%-1.2%54.8%44.1%46.3%36.8%
5 Year38.7%26.5%70.2%51.6%62.1%44.3%

Price Volatility Vs. Market

How volatile is First Financial Northwest's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is First Financial Northwest undervalued compared to its fair value and its price relative to the market?

14.3x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: FFNW ($14.28) is trading above our estimate of fair value ($10.01)

Significantly Below Fair Value: FFNW is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: FFNW is poor value based on its PE Ratio (14.3x) compared to the Banks industry average (12.6x).

PE vs Market: FFNW is good value based on its PE Ratio (14.3x) compared to the US market (17.8x).


Price to Earnings Growth Ratio

PEG Ratio: FFNW is poor value based on its PEG Ratio (4.3x)


Price to Book Ratio

PB vs Industry: FFNW is good value based on its PB Ratio (0.9x) compared to the US Banks industry average (1.2x).


Next Steps

Future Growth

How is First Financial Northwest forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

3.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: FFNW's forecast earnings growth (3.3% per year) is above the savings rate (2.7%).

Earnings vs Market: FFNW's earnings (3.3% per year) are forecast to grow slower than the US market (14.5% per year).

High Growth Earnings: FFNW's earnings are forecast to grow, but not significantly.

Revenue vs Market: FFNW's revenue (3.6% per year) is forecast to grow slower than the US market (7.2% per year).

High Growth Revenue: FFNW's revenue (3.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: FFNW's Return on Equity is forecast to be low in 3 years time (6.6%).


Next Steps

Past Performance

How has First Financial Northwest performed over the past 5 years?

4.2%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: FFNW's earnings have grown by 4.2% per year over the past 5 years.

Accelerating Growth: FFNW's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: FFNW had negative earnings growth (-28.2%) over the past year, making it difficult to compare to the Banks industry average (29.7%).


Return on Equity

High ROE: FFNW's Return on Equity (6.6%) is considered low.


Return on Assets

ROA vs Industry: FFNW's Return on Assets is below or equal to the Banks industry average last year.


Return on Capital Employed

ROCE Improving: Insufficient data to calculate FFNW's Return on Capital Employed to determine if it has improved over the past 3 years.


Next Steps

Financial Health

How is First Financial Northwest's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: FFNW has a low level of unsold assets or inventory.

Debt Coverage by Assets: FFNW's debt is not covered by short term assets (assets are 0.4x debt).


Financial Institutions Analysis

Asset Level: FFNW's level of assets compared to its equity is low.

Allowance for Bad Loans: FFNW has a sufficient allowance for bad loans.

Low Risk Liabilities: FFNW's liabilities are made up of primarily low risk sources of funding.

Loan Level: FFNW has an acceptable proportion of non-loan assets held.

Low Risk Deposits: FFNW's loans are broadly funded by customer deposits.

Level of Bad Loans: FFNW has an appropriate level of bad loans (0.01%)


Next Steps

Dividend

What is First Financial Northwest's current dividend yield, its reliability and sustainability?

2.52%

Current Dividend Yield


Dividend Yield vs Market

company2.5%marketbottom25%1.4%markettop25%3.7%industryaverage2.9%forecastin3Years2.5%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: FFNW's dividend (2.52%) is higher than the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: FFNW's dividend (2.52%) is low compared to the top 25% of dividend payers in the US market (3.68%).

Stable Dividend: FFNW's dividend payments have been volatile in the past 10 years.

Growing Dividend: FFNW's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (33%), FFNW's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: FFNW's dividends in 3 years are forecast to be well covered by earnings (36.6% payout ratio).


Next Steps

Management

What is the CEO of First Financial Northwest's salary, the management and board of directors tenure and is there insider trading?

6.2yrs

Average management tenure


CEO

Joe Kiley (63yo)

6.1yrs

Tenure

US$678,115

Compensation

Mr. Joseph W. Kiley, III, also known as Joe, has been the Chief Executive Officer and President of First Financial Northwest, Inc. since September 1, 2013. Mr. Kiley has been the Chief Executive Officer an ...


CEO Compensation Analysis

Compensation vs. Market: Joe's total compensation ($USD678.12K) is about average for companies of similar size in the US market ($USD509.30K).

Compensation vs Earnings: Joe's compensation has been consistent with company performance over the past year.


Management Age and Tenure

6.2yrs

Average Tenure

56yo

Average Age

Experienced Management: FFNW's management team is seasoned and experienced (6.2 years average tenure).


Board Age and Tenure

5.1yrs

Average Tenure

63yo

Average Age

Experienced Board: FFNW's board of directors are considered experienced (5.1 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

SellUS$159,29512 Mar 19
Joseph Kiley
EntityIndividual
Role
Chief Executive Officer
President
Shares10,000
Max PriceUS$15.93
SellUS$692,28008 Feb 19
First Financial Northwest Foundation, Endowment Arm
EntityCompany
Shares40,000
Max PriceUS$20.08
BuyUS$158,37318 Dec 18
Kevin Padrick
EntityIndividual
Shares10,524
Max PriceUS$15.05
BuyUS$20,91205 Nov 18
Kevin Padrick
EntityIndividual
Shares1,453
Max PriceUS$14.39

Ownership Breakdown


Management Team

  • Rich Jacobson (56yo)

    Executive VP

    • Tenure: 6.1yrs
    • Compensation: US$496.62k
  • Joe Kiley (63yo)

    President

    • Tenure: 6.1yrs
    • Compensation: US$678.12k
  • Dalen Harrison (60yo)

    Senior VP & Chief Deposit Officer

    • Tenure: 0yrs
    • Compensation: US$305.34k
  • Joann Lee (64yo)

    Secretary & Director

    • Tenure: 12.8yrs
    • Compensation: US$62.43k
  • Simon Soh (54yo)

    Senior VP & Chief Lending Officer

    • Tenure: 0yrs
    • Compensation: US$376.88k
  • Ronnie Clariza (38yo)

    Senior VP & Chief Risk Officer

    • Tenure: 0yrs
    • Compensation: US$301.19k
  • Christine Huestis (53yo)

    VP & Controller

    • Tenure: 0yrs
  • Karla Evans

    Assistant Vice President

    • Tenure: 0yrs
  • Randy Riffle

    Executive VP & Chief Credit Officer

    • Tenure: 0yrs

Board Members

  • Rich Jacobson (56yo)

    Executive VP

    • Tenure: 6.1yrs
    • Compensation: US$496.62k
  • Joe Kiley (63yo)

    President

    • Tenure: 6.1yrs
    • Compensation: US$678.12k
  • Roger Molvar (63yo)

    Director

    • Tenure: 4.2yrs
    • Compensation: US$68.32k
  • Dan Stevens (76yo)

    Chairman of the Board

    • Tenure: 0.08yrs
    • Compensation: US$64.20k
  • Rick Riccobono (61yo)

    Director

    • Tenure: 2.9yrs
    • Compensation: US$62.13k
  • Joann Lee (64yo)

    Secretary & Director

    • Tenure: 12.8yrs
    • Compensation: US$62.43k

Company Information

First Financial Northwest, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: First Financial Northwest, Inc.
  • Ticker: FFNW
  • Exchange: NasdaqGS
  • Founded: 1923
  • Industry: Regional Banks
  • Sector: Banks
  • Market Cap: US$142.627m
  • Shares outstanding: 9.99m
  • Website: https://www.ffnwb.com

Number of Employees


Location

  • First Financial Northwest, Inc.
  • 201 Wells Avenue South
  • Renton
  • Washington
  • 98057
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
FFNWNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDOct 2007

Biography

First Financial Northwest, Inc. operates as the holding company for First Financial Northwest Bank that provides commercial banking services in Washington. The company offers a range of deposit products, i ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/23 00:02
End of Day Share Price2019/10/22 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.