First Financial Northwest (FFNW) AI Stock Analysis

• Market Cap: $210.49M
• Dividend Yield: 2.28%
• Average Volume (3M): 78.37K
• Price to Earnings (P/E): 196.8
• Beta (1Y): 0.44
• Revenue Growth: 2.28%
• EPS Growth: -83.17%
• Country: US
• Employees: 135
• Sector: Financial
• Sector Strength: 82
• Industry: Banks - Regional
• EPS (TTM): 0.11
• Shares Outstanding: 9,227,938
• 10 Day Avg. Volume: 101,589
• 30 Day Avg. Volume: 78,373
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 5.45
• Price to Cash Flow (P/CF): 30.80
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $22.00
• Price Target Upside: -3.68% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

First Financial Northwest's overall stock score reflects significant financial headwinds, with declining revenues, profitability, and negative cash flows being the most critical concerns. While technical analysis indicates current positive momentum, caution is advised due to potential overbought conditions. The high P/E ratio suggests overvaluation risk, and the modest dividend yield offers limited compensation. Improvement in financial performance is essential for a more favorable outlook.

First Financial Northwest Business Overview & Revenue Model

Company Description

First Financial Northwest, Inc. operates as the bank 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 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 also provides wealth management services; and online banking platform, as well as debit cards and ATMs. As of December 31, 2021, it operated seven retail branches in King County, five retail branches in Snohomish County, and two retail branches in Pierce County, Washington. First Financial Northwest, Inc. was founded in 1923 and is headquartered in Renton, Washington.

How the Company Makes Money

First Financial Northwest makes money primarily through interest income generated from its lending activities, including residential and commercial real estate loans, consumer loans, and business loans. The company also earns revenue from fees associated with its banking services, such as account maintenance fees, transaction fees, and service charges. Additionally, FFNW benefits from investment income derived from its portfolio of securities. Key revenue streams include interest from loans, fees from banking services, and returns on investments. The company may also engage in partnerships with other financial institutions to expand its service offerings and increase its revenue potential.

First Financial Northwest Financial Statement Overview

Summary

First Financial Northwest is facing significant financial challenges. The income statement shows declining revenues and profitability, the balance sheet indicates a stable equity base but a reduction in total assets, and the cash flow situation is troubling with negative operating and free cash flow. The company needs to improve operational efficiency and cash flow management to restore financial health.

Income Statement

The company's income statement shows a concerning trend with declining revenues and gross profits. The gross profit margin deteriorated significantly, with a negative figure for the latest year. Net profit margin also decreased sharply from previous years. This indicates a severe decline in profitability, raising concerns about operational efficiency and cost management.

Balance Sheet

The balance sheet presents a stable equity base, with the debt-to-equity ratio improving due to the complete repayment of debt. The equity ratio is healthy, indicating a solid capital structure. However, the decline in total assets and stockholders’ equity from the previous year suggests a potential contraction in the company's resource base.

Cash Flow

Cash flow analysis reveals significant challenges, with negative operating and free cash flow in the latest year. The operating cash flow to net income ratio indicates inefficiencies in cash generation relative to earnings. The drop in free cash flow growth is concerning and suggests difficulties in sustaining cash-generating operations.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
37.61M	43.32M	51.60M	48.84M	44.91M
	Gross Profit
37.61M	43.52M	51.60M	48.84M	44.91M
	EBIT
1.58M	7.86M	27.30M	15.17M	10.50M
	EBITDA
0.00	9.89M	18.56M	17.33M	12.67M
	Net Income Common Stockholders
1.07M	6.30M	13.24M	12.25M	8.56M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
9.54M	30.53M	242.10M	242.34M	208.04M
	Total Assets
1.42B	1.51B	1.50B	1.43B	1.39B
	Total Debt
0.00	127.81M	148.45M	98.81M	123.78M
	Net Debt
-9.54M	97.28M	124.13M	25.41M	43.29M
	Total Liabilities
1.26B	1.34B	1.34B	1.27B	1.23B
	Stockholders Equity
161.56M	161.66M	160.36M	157.88M	156.30M
Cash Flow		Free Cash Flow
-894.00K	3.66M	27.09M	16.42M	9.69M
	Operating Cash Flow
-894.00K	4.17M	27.99M	18.44M	11.97M
	Investing Cash Flow
0.00	2.73M	-134.12M	-49.21M	12.78M
	Financing Cash Flow
-2.68M	-689.00K	57.05M	23.67M	32.75M

First Financial Northwest Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 22.84
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FFNW, the sentiment is Positive. The current price of 22.84 is above the 20-day moving average (MA) of 22.66, above the 50-day MA of 21.86, and above the 200-day MA of 21.99, indicating a bullish trend. The MACD of 0.27 indicates Positive momentum. The RSI at 64.11 is Neutral, neither overbought nor oversold. The STOCH value of 77.26 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FFNW.

First Financial Northwest Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PKBK	70 Outperform	$207.72M	7.28	9.81%	4.10%	8.45%	-3.39%
OVLY	67 Neutral	$196.56M	7.79	14.28%	2.26%	2.83%	-19.38%
Sector *	63 Neutral	$12.75B	9.36	8.64%	84.32%	13.82%	-3.89%
JMSB	63 Neutral	$206.14M	12.02	7.17%	1.73%	31.17%	231.96%
NWFL	56 Neutral	$207.95M	2,255.88	0.59%	5.39%	-2.09%	-99.46%
FFNW	55 Neutral	$210.49M	196.81	0.66%	2.28%	2.28%	-83.17%
MVBF	49 Neutral	$203.58M	10.28	6.75%	4.33%	0.35%	1.96%

First Financial Northwest Corporate Events

First Financial Northwest Amends Executive Retirement Plans

On March 26, 2025, First Financial Northwest Bank’s Board of Directors approved amendments to the supplemental executive retirement plans (SERPs) for its executives, Joseph W. Kiley III and Richard P. Jacobson, in preparation for a pending asset sale. These amendments allow for the termination and liquidation of the SERPs, with annuity contracts distributed to the executives. Additionally, employment and severance agreements for several executives, including Kiley and Jacobson, are being terminated, with lump sum payments provided in exchange.