First Northwest Bancorp (FNWB) AI Stock Analysis

• Market Cap: $88.09M
• Dividend Yield: 2.88%
• Average Volume (3M): 21.84K
• Price to Earnings (P/E): 58.6
• Beta (1Y): 0.31
• Revenue Growth: 8.02%
• EPS Growth: 21.36%
• Country: US
• Employees: 227
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 0.04
• Shares Outstanding: 9,462,150
• 10 Day Avg. Volume: 10,691
• 30 Day Avg. Volume: 21,836
• PEG Ratio: 0.59
• Price to Book (P/B): 0.57
• Price to Sales (P/S): 0.84
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 4.64
• Enterprise Value/Revenue: 3.81
• Enterprise Value/Gross Profit: 8.07
• Enterprise Value/Ebitda: -78.98
• 1Y Price Target: $13.50
• Price Target Upside: 45.01% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): 0.48
• Revenue Forecast (FY): $72.30M

• Rating: 46 Neutral
• Price Target: $10.00 ▲(7.41% Upside)
• Action: Reiterated Date: 02/19/26
• Date: Action: Reiterated 02/19/26

The score is driven down primarily by weak financial performance (losses in 2024–2025, elevated leverage, and operating/free cash flow reported at zero in 2025). Technicals are mixed with neutral momentum and some longer-term trend support, while valuation is constrained by a negative P/E despite a moderate dividend yield.

Positive Factors

Management strategy: data-driven efficiency and deposit focus

Management’s explicit pivot to data-driven operations and a focus on core deposits and relationship lending supports durable margin and asset quality improvements if executed. Structural emphasis on deposits reduces reliance on volatile wholesale funding and can sustain loan growth and NIM over multiple quarters.

Branch consolidation and expense reduction

Closing an underperforming branch and shifting customers to digital channels yields recurring cost savings and a leaner branch footprint. Savings of ~$900k annually materially lower fixed costs for a small regional bank, improving operating leverage and margin sustainability over the next several quarters.

Sizable balance sheet with stable equity

A sizable, stable balance sheet provides scale benefits in funding, lending and risk diversification. Even with near-term earnings pressure, an intact balance sheet and stable equity base give the bank time to implement restructuring and loan portfolio normalization without forcing asset fire sales.

Negative Factors

Sustained profitability deterioration

A multi-year decline into losses signals structural earnings challenges from margin compression, loan mix shifts or elevated credit costs. Sustained negative profitability erodes retained earnings and limits reinvestment, making recovery dependent on successful strategy execution and expense discipline.

Operating and free cash flow collapse

A collapse to zero operating and free cash flow removes internal funding for loan growth, dividends, and capital needs. Without reliable cash generation, the bank faces harder choices on capital allocation and must rely on external financing or asset sales, increasing execution risk over the medium term.

Elevated leverage reducing financial flexibility

Leverage above 2x equity limits the bank’s ability to absorb continued earnings shocks and raises refinancing risk if markets tighten. Higher debt magnifies capital strain during losses, constraining strategic options and potentially forcing more aggressive cost or capital measures in 2–6 months.

First Northwest Bancorp Business Overview & Revenue Model

Company Description

First Northwest Bancorp operates as a bank holding company for First Fed Bank that provides commercial and consumer banking services to individuals, businesses, and nonprofit organizations in western Washington, the United States. It accepts various deposit instruments, including checking, money market deposit, savings, and transaction accounts, as well as certificates of deposit. The company also originates one- to four-family mortgage loans, commercial and multi-family real estate loans, construction and land loans, and commercial business loans, as well as consumer loans primarily consisting of automobile loans, and home-equity loans and lines of credit. It operates through 12 full-service branches and a lending center in Seattle. The company was founded in 1923 and is based in Port Angeles, Washington.

How the Company Makes Money

First Northwest Bancorp generates revenue through several key streams, primarily interest income from loans and investments. The bank earns interest by lending funds to consumers and businesses, while also investing in securities. Additionally, FNWB generates non-interest income through fees for banking services, such as account maintenance, transaction services, and wealth management advisory services. The bank may also benefit from partnerships with local businesses and organizations, enhancing its service offerings and customer reach, which can contribute to a more stable revenue base. Overall, the company's financial performance is influenced by interest rate trends, loan demand, and the overall economic environment in its operating regions.

First Northwest Bancorp Financial Statement Overview

Summary

Overall financials are weak: profitability shifted from solid profits (2020–2022) to losses in 2024–2025, leverage is elevated at a little over ~2x equity with negative ROE in 2024–2025, and the most concerning factor is operating and free cash flow reported at zero in 2025.

Income Statement

Profitability has deteriorated meaningfully: the company moved from solid profits in 2020–2022 to a small profit in 2023 and then losses in 2024 and 2025. Revenue growth turned negative in 2025 (-9.4%) after previously growing, and profit margins swung from strong positive levels (2021–2022) to negative in 2024–2025. A positive is that the 2025 loss narrowed versus 2024, but overall earnings quality and momentum remain weak.

Balance Sheet

Leverage is elevated and has increased from 2020–2021 to recent years, with debt running at a little over 2x equity in 2023–2025, which reduces flexibility during a down-earnings period. Equity has been relatively stable but has not grown, and returns on equity have turned negative in 2024–2025, reflecting the earnings pressure. The balance sheet is sizable and has not shown abrupt shrinkage, but the combination of higher leverage and negative returns is a key risk.

Cash Flow

Cash flow performance weakened sharply in 2025, with operating cash flow and free cash flow reported at zero (versus healthy positive levels in 2020–2024). While prior years showed decent conversion of earnings into free cash flow (notably in 2022–2024), the 2025 step-down signals volatility and reduces near-term financial cushion. Overall cash generation trends are inconsistent, and the latest period is a clear negative.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	107.19M	117.03M	104.92M	90.70M	79.31M
Gross Profit	50.67M	44.52M	64.13M	78.66M	72.59M
EBITDA	-5.17M	-6.14M	4.29M	18.40M	19.72M
Net Income	-4.19M	-6.61M	2.29M	15.64M	15.42M
Balance Sheet
Total Assets	2.11B	2.23B	2.20B	2.04B	1.92B
Cash, Cash Equivalents and Short-Term Investments	285.84M	412.79M	418.79M	372.17M	470.23M
Total Debt	341.02M	353.55M	327.36M	285.36M	119.28M
Total Liabilities	1.95B	2.08B	2.04B	1.88B	1.73B
Stockholders Equity	157.26M	153.88M	163.34M	161.57M	190.96M
Cash Flow
Free Cash Flow	0.00	16.88M	16.30M	12.99M	9.14M
Operating Cash Flow	0.00	16.88M	17.88M	15.90M	15.15M
Investing Cash Flow	0.00	-87.07M	-84.19M	-237.65M	-136.86M
Financing Cash Flow	-72.45M	19.47M	143.89M	141.32M	182.57M

First Northwest Bancorp Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 9.31
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FNWB, the sentiment is Negative. The current price of 9.31 is below the 20-day moving average (MA) of 9.96, below the 50-day MA of 9.98, and above the 200-day MA of 8.75, indicating a neutral trend. The MACD of -0.23 indicates Positive momentum. The RSI at 33.72 is Neutral, neither overbought nor oversold. The STOCH value of 6.34 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FNWB.

First Northwest Bancorp Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BOTJ	73 Outperform	$86.91M	9.36	10.86%	2.18%	6.17%	-6.13%
FUSB	72 Outperform	$85.35M	9.54	5.50%	2.08%	1.03%	-35.72%
UBCP	69 Neutral	$87.80M	10.17	10.91%	6.51%	6.31%	-5.00%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
BYFC	54 Neutral	$72.89M	-0.65	0.22%	―	2.54%	-174.74%
FNWB	46 Neutral	$88.09M	58.63	-4.68%	2.88%	8.02%	21.36%
SSBI	45 Neutral	$90.06M	11.51	-1.41%	―	-0.81%	-129.22%

First Northwest Bancorp Corporate Events

First Northwest Bancorp Furnishes Investor Update Materials

On February 4, 2026, First Northwest Bancorp released an investor slide presentation reviewing its financial results and trends for the quarter and full year ended December 31, 2025. The materials, made available as part of a regulatory filing, are being furnished rather than filed, limiting their exposure to certain securities law liabilities and signaling a formal but lower‑risk channel for communicating recent performance information to investors and other stakeholders.

The most recent analyst rating on (FNWB) stock is a Hold with a $11.00 price target. To see the full list of analyst forecasts on First Northwest Bancorp stock, see the FNWB Stock Forecast page.

First Northwest Bancorp Announces Executive Vice President Resignation

On February 4, 2026, Geraldine L. Bullard, Executive Vice President and Chief Operating Officer of First Fed Bank, a subsidiary of First Northwest Bancorp, resigned from the company to pursue other opportunities, after having joined in January 2020 and serving during her tenure as Interim Chief Executive Officer and Chief Financial Officer in addition to her current role. The company stated that her departure was not the result of any disagreement over operations, policies or practices, that there were no special arrangements or severance agreements tied to her resignation, and publicly expressed appreciation for her service and leadership, signaling an orderly executive transition without disclosed operational disruption.

The most recent analyst rating on (FNWB) stock is a Buy with a $13.50 price target. To see the full list of analyst forecasts on First Northwest Bancorp stock, see the FNWB Stock Forecast page.