Our analysis is based on comparing First Financial Northwest, Inc. with the following peers – Riverview Bancorp, Inc., Provident Financial Holdings, Inc., Timberland Bancorp, Inc., Washington Federal, Inc., Broadway Financial Corporation, Anchor Bancorp, FS Bancorp, Inc., Territorial Bancorp Inc. and Banc of California, Inc. (RVSB-US, PROV-US, TSBK-US, WAFD-US, BYFC-US, ANCB-US, FSBW-US, TBNK-US and BANC-US).
First Financial Northwest, Inc.’s dividend yield is 1.25 percent and its dividend payout is 38.10 percent. This compares to a peer average dividend yield of 1.64 percent and a payout level of 28.69 percent. This combination of a relatively lower dividend yield and a higher payout ratio suggest that the dividend payout might not be sustainable. Supporting this is the company’s average dividend quality score of 42 out of a possible score of 100, which points to some weakness in being able to sustain the higher payout ratio.
Dividend Quality Overview
- Over the last twelve months (prior to September 30, 2016), FFNW-US paid a low quality dividend, which represents a yield of 1.25% at the current price.
- Dividend quality trend has not been consistent over the last five years. Dividends were paid during 3 of these years — of these 1 was high quality, 1 was medium quality and 1 was low quality.
- The ending cash balance, with a dividend coverage of 1.96x, provides a moderate cushion in case of a significant reduction of cash flows in the future.
Quadrant label definitions. Hover to know more
Over the last twelve months (prior to September 30, 2016), FFNW-US paid a low quality dividend.
The source of the company’s cash to support the dividend paid over the last twelve months is operating cash flow (coverage of 5.10x), investing cash flow (coverage of -61.95x), issuance cash flow (coverage of 27.52x) and twelve-month prior cash (coverage of 1.83x), for a total dividend coverage of 2.96x.
FFNW-US‘s issuance cash flow includes outflows from net share buybacks (coverage of -10.66x). Thus, the total coverage including share buybacks is 13.62x, which reflects our assumption that the cash paid for share buybacks is discretionary and could instead be used to pay dividends.
These coverage ratio factors imply that the firm had to dip into the beginning cash balance to pay the dividend, which suggests a low dividend quality.
|Dividend Yield (%)||0||0||1.11||1.61||1.68||1.25|
|Dividend Payout (%)||0||0||8.22||28.17||35.82||38.1|
A complete list of metrics and analysis is available on the company page.
First Financial Northwest, Inc. operates as a bank holding company for First Savings Bank Northwest, which offers commercial banking services, dynamic savings, stored savings, loaned savings, commercial savings, checking accounts and money market accounts. The company business includes attracting deposits from the public and utilizing these funds to originate one-to-four family, multifamily, real estate business, construction and land development loans. First Financial Northwest was founded on June 1, 2007 and is headquartered in Renton, WA.
The information presented in this report has been obtained from sources deemed to be reliable, but AnalytixInsight does not make any representation about the accuracy, completeness, or timeliness of this information. This report was produced by AnalytixInsight for informational purposes only and nothing contained herein should be construed as an offer to buy or sell or as a solicitation of an offer to buy or sell any security or derivative instrument. This report is current only as of the date that it was published and the opinions, estimates, ratings and other information may change without notice or publication. Past performance is no guarantee of future results. Prior to making an investment or other financial decision, please consult with your financial, legal and tax advisors. AnalytixInsight shall not be liable for any party’s use of this report. AnalytixInsight is not a broker-dealer and does not buy, sell, maintain a position, or make a market in any security referred to herein. One of the principal tenets for us at AnalytixInsight is that the best person to handle your finances is you. By your use of our services or by reading any our reports, you’re agreeing that you bear responsibility for your own investment research and investment decisions. You also agree that AnalytixInsight, its directors, its employees, and its agents will not be liable for any investment decision made or action taken by you and others based on news, information, opinion, or any other material generated by us and/or published through our services. For a complete copy of our disclaimer, please visit our website www.analytixinsight.com.