First Northwest Bancorp (NASDAQ:FNWB) President and CEO Matthew Deines recently purchased 2,100 shares of the company's common stock, according to a filing with the Securities and Exchange Commission. The shares were acquired at a price of $9.79 each, totaling approximately $20,559.
Following this transaction, Deines now holds a total of 102,951 shares directly, including shares held in an IRA account and various unvested shares of restricted stock. Additionally, he has indirect ownership of shares through a 401(k) and an ESOP, bringing his total indirect holdings to 16,258 shares.
This transaction reflects Deines' continued investment in the company, as he maintains both direct and indirect stakes in First Northwest Bancorp.
In other recent news, First Northwest Bancorp announced the termination of a Consent Order issued by the Federal Deposit Insurance Corporation, marking a significant overhaul of the bank's compliance management system. This development was followed by the declaration of a $0.07 per common share quarterly cash dividend by the company's Board of Directors. In the financial arena, First Northwest Bancorp identified a material weakness in its second-quarter 2024 financial results, leading to a net loss of $6.4 million. Analyst firm Piper Sandler adjusted the company's price target down to $11.00 while maintaining a neutral rating.
Piper Sandler also revised the company's earnings estimates for 2024 to $0.00, a decrease of $0.50, but increased the 2025 earnings estimate to $1.20, reflecting improvements in net interest margin and operating expense outlooks. The firm maintains a neutral stance due to the bank's below-average profitability forecast. First Northwest Bancorp has implemented measures to enhance profitability, such as a branch sale-leaseback, a partial securities restructuring, and a 9% Reduction in Force.
In other recent developments, Kyle Henderson was promoted to the role of Chief Credit Officer at First Northwest Bancorp, succeeding Terry Anderson. These developments reflect the ongoing strategic measures undertaken by the company in response to its financial performance and market conditions.
InvestingPro Insights
Matthew Deines' recent purchase of First Northwest Bancorp (NASDAQ:FNWB) shares comes at a time when the company faces several financial challenges. According to InvestingPro data, FNWB's market capitalization stands at $89.53 million, with the stock trading at a price-to-book ratio of 0.56 as of the last twelve months ending Q3 2024. This low P/B ratio might suggest that the stock is undervalued relative to its book value, potentially aligning with Deines' decision to increase his stake.
However, InvestingPro Tips highlight some concerns for investors. The company is suffering from weak gross profit margins and is not profitable over the last twelve months. Additionally, analysts do not anticipate the company will be profitable this year, with net income expected to drop. These factors may explain the stock's current valuation and could be influencing insider buying decisions.
Despite these challenges, FNWB offers a dividend yield of 2.89%, which might be attractive to income-focused investors. The company's next earnings date is set for January 23, 2025, which will be a crucial event for stakeholders to assess the company's financial health and future prospects.
For investors seeking a more comprehensive analysis, InvestingPro offers additional tips and insights beyond those mentioned here. In fact, there are 8 more InvestingPro Tips available for FNWB, providing a deeper understanding of the company's financial position and market performance.
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