First Northwest Bancorp's Q2 net income rises to $3.7 mln

Overview

• First Northwest Q2 net income of $3.7 mln, reversing prior quarter's loss

• Net interest margin improved to 2.83% in Q2, reflecting better asset yields

• Company elected not to declare a dividend, focusing on capital management

Outlook

• Company elects not to declare a dividend for the current quarter

• First Northwest focused on maintaining a strong balance sheet

• Company evaluating future dividend decisions based on strategic objectives

Result Drivers

• NET INTEREST MARGIN - Expansion to 2.83% driven by increased yields on interest-earning assets and decreased rates on liabilities

• CREDIT LOSS PROVISION - $296,000 recapture of provision for credit losses due to commercial loan recoveries

• DEPOSIT MANAGEMENT - Customer deposits increased by $19.6 mln despite $31.0 mln reduction in brokered time deposits

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 1 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the banks peer group is "buy"

• Wall Street's median 12-month price target for First Northwest Bancorp is $10.00, about 23.2% above its July 23 closing price of $7.68

• The stock recently traded at 26 times the next 12-month earnings vs. a P/E of 12 three months ago

Press Release: ID:nGNX1SHGtF