PORT ANGELES, Wash. - First Northwest Bancorp (NASDAQ:FNWB), the parent company of First Fed Bank, has announced the promotion of Kyle Henderson to Chief Credit Officer, effective today. Henderson, who previously held the position of Deputy Chief Credit Officer since 2023, will succeed Terry Anderson following his retirement from financial services.
Henderson brings over 16 years of experience in credit administration and financial services to his new role. Before joining First Fed, he served as the Executive Vice President of Credit for FirstBank in Denver, Colorado, and has been involved with various community and economic development associations.
Matt Deines, President and CEO of First Fed Bank and FNWB, expressed confidence in Henderson's ability to lead the credit administration, citing his established track record and the trust he has earned from customers and the team over the past year.
First Fed Bank, a community-focused institution, has been serving local businesses, families, and individuals since 1923 and operates 18 locations in Washington state, including 12 full-service branches. The bank has been recognized for its philanthropic efforts and received multiple awards for its services, including being named a top Corporate Philanthropist by Puget Sound Business Journal in 2024.
In addition to traditional banking services, First Fed is engaged in strategic partnerships with financial technology companies to offer digital financial solutions. FNWB also makes direct investments in fintech companies and through venture capital partners.
This management transition is based on a press release statement from First Northwest Bancorp.
In other recent news, First Northwest Bancorp has had its stock target reduced by Piper Sandler. The firm revised the price target down to $12.00 from the previous $17.00, maintaining a Neutral rating on the stock. This adjustment comes in the wake of First Northwest Bancorp's first-quarter results, which showed modest profitability. Piper Sandler cites ongoing balance sheet optimization initiatives at First Northwest Bancorp as a positive factor, potentially enhancing future profitability.
However, a below-average return outlook and uncertainties surrounding the resolution of its consent order contribute to the Neutral rating. Piper Sandler has also revised its 2024 earnings per share estimate for First Northwest Bancorp downward to $0.50 from the prior $0.70 estimate. Despite this, the firm maintains its 2025 earnings per share estimate at $1.10.
InvestingPro Insights
As First Northwest Bancorp (NASDAQ:FNWB) welcomes Kyle Henderson as the new Chief Credit Officer, the company's financial health and stock performance provide a backdrop to the leadership transition. According to real-time data from InvestingPro, FNWB's market capitalization stands at $84.99 million, reflecting the size of the company in the financial sector. Despite recent challenges, analysts predict that the company will be profitable this year, an optimistic outlook for Henderson's tenure.
InvestingPro Tips highlight that FNWB has a high shareholder yield, which could be appealing to investors looking for potential income through dividends. However, it's important to note that the company has struggled with weak gross profit margins and has not been profitable over the last twelve months, as of Q1 2024. The stock price has seen a significant decline over the past three months, with a 38.19% drop in the 3-month price total return, and an even steeper 6-month price total return of -38.48%.
The bank's dividend yield is currently at 2.89%, with the ex-date of the last dividend on May 9, 2024. This indicates a commitment to returning value to shareholders amidst the financial headwinds. Additionally, the company's price-to-book ratio as of Q1 2024 is 0.53, suggesting that the stock may be undervalued relative to its assets, which could attract value investors.
For readers interested in a deeper analysis, there are more InvestingPro Tips available for FNWB at https://www.investing.com/pro/FNWB. By using the coupon code PRONEWS24, users can get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription, unlocking valuable insights that could inform investment decisions.
With Henderson's promotion and the bank's focus on sustainable growth, investors will be watching closely to see how these financial indicators play out in the company's performance under the new leadership.
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