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 second-rate 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

-5.4%

NasdaqGS:FFNW

-2.6%

US Banks

-1.0%

US Market


1 Year Return

-23.3%

NasdaqGS:FFNW

-14.2%

US Banks

-0.4%

US Market

FFNW underperformed the Banks industry which returned -14.2% over the past year.

FFNW underperformed the Market in United States of America which returned -0.4% over the past year.


Share holder returns

FFNWIndustryMarket
7 Day-5.4%-2.6%-1.0%
30 Day-4.2%-6.3%-3.3%
90 Day-12.6%-3.5%0.8%
1 Year-21.7%-23.3%-11.8%-14.2%1.9%-0.4%
3 Year8.2%2.7%42.2%32.4%39.4%30.4%
5 Year36.8%25.0%53.3%36.7%54.2%37.1%

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 based on future cash flows and its price relative to the stock market?

13.8x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

First Financial Northwest's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

First Financial Northwest's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

First Financial Northwest is overvalued based on earnings compared to the US Banks industry average.

First Financial Northwest is good value based on earnings compared to the United States of America market.


Price Based on Expected Growth

First Financial Northwest is poor value based on expected growth next year.


Price Based on Value of Assets

First Financial Northwest is good value based on assets compared to the US Banks industry average.


Next Steps

Future Growth

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

0.06%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

First Financial Northwest's revenue is expected to grow by 2.8% yearly, however this is not considered high growth (20% yearly).

First Financial Northwest's earnings are expected to grow by 0.1% yearly, however this is not considered high growth (20% yearly).

First Financial Northwest's revenue growth is positive but not above the United States of America market average.

First Financial Northwest's earnings growth is positive but not above the United States of America market average.

First Financial Northwest's earnings growth is positive but not above the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if First Financial Northwest will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


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

First Financial Northwest's year on year earnings growth rate has been positive over the past 5 years, however the most recent earnings are below average.

First Financial Northwest's 1-year earnings growth is negative, it can't be compared to the 5-year average.

First Financial Northwest's 1-year earnings growth is negative, it can't be compared to the US Banks industry average.


Return on Equity

First Financial Northwest has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

First Financial Northwest used its assets less efficiently than the US Banks industry average last year based on Return on Assets.


Return on Capital Employed

Unable to establish if First Financial Northwest improved its use of capital last year versus 3 years ago (Return on Capital Employed) due to insufficient past data.


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


Financial Institutions Analysis

First Financial Northwest has an acceptable proportion of non-loan assets held.

First Financial Northwest has a sufficient allowance for bad loans.

First Financial Northwest's liabilities are made up of primarily low risk sources of funding.

First Financial Northwest's level of assets compared to its equity is low (i.e. an appropriate level of borrowing to fund lending).

Loans at First Financial Northwest are broadly funded by customer deposits.

First Financial Northwest has an acceptable level of bad loans (less than 2%).


Next Steps

Dividend

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

2.58%

Expected Dividend Yield


Upcoming Dividend Payment

Purchase First Financial Northwest before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield and Payments Analysis

First Financial Northwest's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.49%).

First Financial Northwest's dividend is below the markets top 25% of dividend payers in United States of America (3.84%).

Dividends per share have been volatile in the past 10 years (annual drop of over 20%).

Dividends per share have increased over the past 10 years.


Current Payout to Shareholders

Dividends paid are well covered by earnings (3x coverage).


Future Payout to Shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.


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?

6.0yrs

Average management tenure


CEO

Joe Kiley (63yo)

5.9yrs

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

Joe's remuneration is higher than average for companies of similar size in United States of America.

Joe's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

6.0yrs

Average Tenure

56yo

Average Age

The average tenure for the First Financial Northwest management team is over 5 years, this suggests they are a seasoned and experienced team.


Board Age and Tenure

5.9yrs

Average Tenure

63yo

Average Age

The tenure for the First Financial Northwest board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Recent Insider Transactions

SellUS$159,29512 Mar 19
Joseph Kiley
EntityIndividual
Role
President
Member of the Board of Directors
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
SellUS$47,30114 Sep 18
Gary Faull
EntityIndividual
Shares2,765
Max PriceUS$17.11
SellUS$213,25312 Sep 18
Gary Faull
EntityIndividual
Shares12,409
Max PriceUS$17.22

Ownership Breakdown


Management Team

  • Karla Evans

    Assistant Vice President

  • Randy Riffle

    Executive VP & Chief Credit Officer

  • Rich Jacobson (56yo)

    Executive VP

    • Tenure: 6.0yrs
    • Compensation: $496.62k
  • Simon Soh (54yo)

    Senior VP & Chief Lending Officer

    • Compensation: $376.88k
  • Joe Kiley (63yo)

    President

    • Tenure: 5.9yrs
    • Compensation: $678.12k
  • Christine Huestis (53yo)

    VP & Controller

  • Dalen Harrison (60yo)

    Senior VP & Chief Deposit Officer

    • Compensation: $305.34k
  • Ronnie Clariza (38yo)

    Senior VP & Chief Risk Officer

    • Compensation: $301.19k
  • Joann Lee (64yo)

    Secretary & Director

    • Tenure: 8.3yrs
    • Compensation: $62.43k

Board Members

  • Rich Jacobson (56yo)

    Executive VP

    • Tenure: 5.9yrs
    • Compensation: $496.62k
  • Joe Kiley (63yo)

    President

    • Tenure: 6.7yrs
    • Compensation: $678.12k
  • Roger Molvar (63yo)

    Chairman of the Board

    • Tenure: 2.2yrs
    • Compensation: $68.32k
  • Dan Stevens (76yo)

    Director

    • Tenure: 7.6yrs
    • Compensation: $64.20k
  • Rick Riccobono (61yo)

    Director

    • Tenure: 2.8yrs
    • Compensation: $62.13k
  • Patricia Remch (66yo)

    Director

    • Tenure: 0.3yrs
  • Joann Lee (64yo)

    Secretary & Director

    • Tenure: 12.6yrs
    • Compensation: $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$137.633m
  • Shares outstanding: 9.99m
  • Website: Click here

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 AnalysisN/A
End of Day Share Price2019/08/16 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.