FNWB

FNWB is a small Port Angeles, WA savings-institution holding company (First Fed) with ~$2.11B assets, twelve branches and a $99.2M market cap. Ignore the headline P/S of 563.8 and net margin of -2381%: those derive from a mis-tagged XBRL 'revenue' item of just $176K (FY2020), which does not capture a bank's net interest income, so they are not meaningful for a depository. The right lens is price-to-book and earnings trajectory. On equity of $157M against 9.45M shares, book value is ~$16.6/share, so at $10.50 the stock trades near 0.63x book — a ~37% discount that reflects real, not imagined, problems.

The franchise has deteriorated hard: net income went $15.4M (FY21) → $15.6M (FY22) → $2.29M (FY23) → -$6.61M (FY24) → -$4.19M (FY25). It is two straight years in the red with ROE of -2.7% and negative operating cash flow of -$2.76M. Management has eliminated the dividend ('we have not [declared] since [May 2025], as part of a prudent approach to capital management'), cut dividends paid 50% to $1.32M, halted buybacks ($0 in FY25, with 846,123 shares still authorized but unused), and is closing the King County branch on April 30, 2026 — all signs of a balance sheet being defended, not a growing business. Total assets shrank 5.6% and liabilities 6.1%, consistent with deliberate shrinkage.