Sean Patrick Brennan, a director at First Northwest Bancorp (NASDAQ:FNWB), recently acquired 2,000 shares of the company's common stock. The purchase, which took place on December 13, 2024, was made at a price of $10.70 per share, amounting to a total transaction value of $21,400. The transaction comes as the $93 million market cap company faces challenging conditions, with InvestingPro analysis indicating weak financial health and profitability concerns.
Following this acquisition, Brennan holds a total of 9,104 shares in the company. This figure includes 4,651 unvested shares of restricted stock granted under the company's 2020 Equity Incentive Plan, with specified portions scheduled to vest in 2025. The director's purchase comes amid a challenging year for FNWB, with the stock down over 30% year-to-date. InvestingPro subscribers can access 12+ additional insights and detailed financial metrics to better evaluate this insider purchase.
In other recent news, First Northwest Bancorp has seen considerable developments. The Federal Deposit Insurance Corporation (FDIC) lifted the Consent Order issued to the company's subsidiary, First Fed Bank, acknowledging their successful rectification of previous compliance deficiencies. This development was followed by the declaration of a quarterly cash dividend of $0.07 per common share by First Northwest Bancorp's Board of Directors.
However, the company identified a material weakness in its second-quarter 2024 financial results, leading to an additional $6.6 million in net charge-offs and a resulting net loss of $6.4 million. Analyst firm Piper Sandler subsequently adjusted its price target for the company down to $11.00, maintaining a neutral rating.
First Northwest Bancorp's earnings estimates have also been revised by Piper Sandler due to its second-quarter performance. The firm decreased the 2024 estimate to $0.00, a decrease of $0.50, but increased the 2025 earnings estimate to $1.20, indicating improved net interest margin and operating expense outlooks.
In response to these challenges, First Northwest Bancorp has taken steps to enhance profitability, such as a branch sale-leaseback, a partial securities restructuring, and a recently announced 9% Reduction in Force. Lastly, the company promoted Kyle Henderson to the role of Chief Credit Officer, succeeding Terry Anderson. These are all recent developments in the company's ongoing strategic adjustments.
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