First Northwest Bancorp price target raised to $12 from $11.50 at Piper Sandler

Piper Sandler raised the firm’s price target on First Northwest Bancorp (FNWB) to $12 from $11.50 and keeps a Neutral rating on the shares. While this was another difficult quarter given still elevated NCOs tied to previously identified loans as well as less-than-expected net interest margin expansion and balance sheet growth, the firm is optimistic that asset quality and core profitability should improve going forward. Piper believes First Northwest’s current discounted valuation is attractive for long-term investors, particularly given profitability improvement prospects with further net interest margin expansion and opportunities to grow commercial market share across the Puget Sound. However, the firm remains on the sidelines until more consistent asset quality improvement emerges and given limited visibility for First Northwest’s profitability to increase closer to peers.