First Northwest Bancorp (FNWB) PT Raised to $11.50 at Piper Sandler

Piper Sandler analyst Nathan Race raised the price target on First Northwest Bancorp (NASDAQ: FNWB) to $11.50 (from $11.00) while maintaining a Neutral rating.

The analyst commented, "FNWB's core earnings were challenged in 2Q given some unfavorable credit migrations that resulted in a higher LLP and softer core fee income partially tied to some FV write-downs. We are nevertheless encouraged by FNWB's ongoing initiatives to drive improved profitability (e.g. the branch sale-leaseback and a partial securities restructuring in 2Q as well as the recently announced 9% RIF) and FNWB's L-T prospects to grow commercial market share across the Puget Sound. We remain Neutral given FNWB's still below average profitability outlook, uncertain timing on its consent order resolution, and recent credit noise. We lower our 2024E to $0.00 (-$0.50) post the 2Q core shortfall, and bump up our 2025E to $1.20 (from $1.10) with improved NIM and operating expense outlooks. Our PT moves to $11.50 (+$0.50) based on 0.65x our one-year forward TBV estimate (unch.), and still consistent with a discount to peers (1.2x) given the aforementioned factors."

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