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 Analysis

Flawless balance sheet, good value and pays a dividend.


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

Stable Share Price: FFNW's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

15.7%

FFNW

16.8%

US Banks

12.5%

US Market


1 Year Return

-39.1%

FFNW

-26.9%

US Banks

-12.7%

US Market

Return vs Industry: FFNW underperformed the US Banks industry which returned -26.9% over the past year.

Return vs Market: FFNW underperformed the US Market which returned -12.7% over the past year.


Shareholder returns

FFNWIndustryMarket
7 Day15.7%16.8%12.5%
30 Day-30.1%-24.7%-14.7%
90 Day-34.7%-38.6%-21.5%
1 Year-37.4%-39.1%-24.8%-26.9%-10.9%-12.7%
3 Year-39.4%-43.1%-16.9%-23.0%12.6%5.4%
5 Year-13.2%-21.2%12.0%-0.7%31.9%17.5%

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?

21.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: FFNW ($9.75) is trading below our estimate of fair value ($12.37)

Significantly Below Fair Value: FFNW is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: FFNW is poor value based on its PE Ratio (9.4x) compared to the Banks industry average (8.8x).

PE vs Market: FFNW is good value based on its PE Ratio (9.4x) compared to the US market (13x).


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 (0.6x) compared to the US Banks industry average (0.8x).


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?

2.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: FFNW's forecast earnings growth (2.2% per year) is above the savings rate (1.7%).

Earnings vs Market: FFNW's earnings (2.2% per year) are forecast to grow slower than the US market (12.3% per year).

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

Revenue vs Market: FFNW's revenue (0.1% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: FFNW's revenue (0.1% 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 (6.9%).


Next Steps

Past Performance

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

5.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: FFNW has high quality earnings.

Growing Profit Margin: FFNW's current net profit margins (23.9%) are lower than last year (30.9%).


Past Earnings Growth Analysis

Earnings Trend: FFNW's earnings have grown by 5% 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 (-30.4%) over the past year, making it difficult to compare to the Banks industry average (11%).


Return on Equity

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


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 0.2x 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?

4.10%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: FFNW's dividend (4.1%) is higher than the bottom 25% of dividend payers in the US market (1.98%).

High Dividend: FFNW's dividend (4.1%) is low compared to the top 25% of dividend payers in the US market (5.49%).


Stability and Growth of Payments

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 (33.7%), 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 (39% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

7.0yrs

Average management tenure


CEO

Joe Kiley (63yo)

6.5s

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 ($USD678.12K) is about average for companies of similar size in the US market ($USD605.16K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Joseph Kiley
President6.5yrsUS$678.12k0.30% $284.4k
Richard Jacobson
Executive VP6.5yrsUS$496.62k0.11% $106.4k
Simon Soh
Senior VP & Chief Credit Officer7.42yrsUS$376.88k0.41% $390.7k
Ronnie Clariza
Senior VP & Chief Risk Officerno dataUS$301.19k0.23% $216.7k
Dalen Harrison
Senior VP & Chief Banking Officerno dataUS$305.34k0.087% $83.4k
Joann Lee
Secretary & Director13.17yrsUS$62.43k0.95% $917.0k
Karla Evans
Assistant Vice Presidentno datano datano data
Christine Huestis
First VP & Controllerno datano datano data

7.0yrs

Average Tenure

56yo

Average Age

Experienced Management: FFNW's management team is seasoned and experienced (7 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Joseph Kiley
President6.5yrsUS$678.12k0.30% $284.4k
Richard Jacobson
Executive VP6.5yrsUS$496.62k0.11% $106.4k
Joann Lee
Secretary & Director13.17yrsUS$62.43k0.95% $917.0k
Ralph Sabin
Independent Director0.25yrno datano data
Roger Molvar
Independent Director4.58yrsUS$68.32k0.079% $75.6k
Diane Davis
Directorno datano datano data
Daniel Stevens
Chairman of the Board0.50yrUS$64.20k0.10% $100.0k
Richard Riccobono
Independent Director3.33yrsUS$62.13k0.11% $106.4k

4.6yrs

Average Tenure

63yo

Average Age

Experienced Board: FFNW's board of directors are considered experienced (4.6 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: FFNW insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

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$96.228m
  • Shares outstanding: 9.87m
  • 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, including noninterest bearing accounts, interest-bearing demand accounts, money market deposit accounts, statement savings accounts, and certificates of deposit. Its loan products comprise one-to-four family residential loans; multifamily and commercial real estate loans; construction/land loans for the construction of single-family residences, condominiums, townhouses, multifamily properties, and residential developments; business loans; and consumer loans, such as home equity loans and savings account loans. The company primarily serves the greater Puget Sound region of King, as well as Pierce, Snohomish, and Kitsap counties, Washington through its full-service banking office in Renton, Washington; and nine additional branches in King and Snohomish counties, Washington. First Financial Northwest, Inc. was founded in 1923 and is based in Renton, Washington. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/30 03:46
End of Day Share Price2020/03/27 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.