First Northwest Bancorp posts Q3 net loss on higher credit costs

Overview

• U.S. community bank reported Q3 net loss, reversing profit from prior quarter and year-ago period

• Q3 loss per share was $0.08, down from $0.09 EPS a year earlier

• Quarterly loss driven by higher credit loss provision and legal settlement

Outlook

• Company says strategic and operational initiatives are underway to improve profitability

• Company sees stable net interest income and modest net interest margin expansion

• Company aims to enhance funding mix and strengthen balance sheet

Result Drivers

• DEPOSIT GROWTH - Co said $27 mln increase in customer deposits improved funding mix

• SECURITIES PURCHASES - Investment security purchases increased assets and partially offset loan decline

• MARGIN EXPANSION - Co reported modest net interest margin expansion in Q3

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", no "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 $14.00, about 35.7% above its October 28 closing price of $10.32

• The stock recently traded at 23 times the next 12-month earnings vs. a P/E of 23 three months ago

Reuters Recommended Reads

• Oct 27 - National Bank Holdings posts Q3 loss on credit provisions

• Oct 28 - Princeton Bancorp's Q3 net income falls on higher credit loss provision

• Oct 27 - First Financial Q3 profit jumps year-over-year on higher interest margin

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)