FFNW Sold! $23/ share. Stock is over $19 now

https://www.etrade.wallst.com/v1/stocks/news/search_results.asp?ChallengeUrl=https://idp.etrade.com/idp/SSO.saml2&reinitiate-handshake=0&AuthnContext=authenticated&env=PRD&symbol=FFNW&docKey=309-IN20240111091306FFNW_live-37HHUE85B6TB5FAUK74R32P590&DMSourceID=BRIEFING&Source=Briefing.com&DisplayName=Briefing.com&docDate=2024-01-11%2014%3A13%3A06&headline=First%20Financial%20Northwest%20and%20Global%20Federal%20Credit%20Union%20have%20entered%20into%20a%20definitive%20agreement%20in%20which%20Global%20will%20acquire%20Renton%2C%20Washington-based%20First%20Financial%20Northwest%20Bank%20(halted)

The purchase price - subject to adjustment - is over $23/share.

Nice call, Jim!

Vince

3 Likes

Thanks, Vince!

I expect bank deals may heat up a bit here this year. And in the next few weeks we’ll start to hear what thrifts may be converting in 2024 .

Best!

Jim

4 Likes

Any news re possible conversions?

Hey, Vince,

I’ve seen just one announcement so far this year, and it’s relatively small. Mutual Savings and Loan in Metairie, LA is looking to convert. Usually January is the big time of year for the announcement, but it’s possible to see some throughout the year, too.

Jim

2 Likes

I’ve been watching FFNW and see that prices haven’t changed much in the 2 mos since the deal was announced. Stock is at 20.72 and will go out at 23.00 or more sometime this year. It goes ex-div’d in a few days, but assuming you will collect the full $0.52, you receive 23.52 for your 20.72 - a 13.5% return in 10 months time - not too bad.

Seems like a good place to park cash.
Vince

2 Likes

Going ex-dividend tomorrow - act now or forfeit $0.13/sh forever!

Yes, it doesn’t seem like such a bad deal. And it’s in cash, which you don’t always get in these bank deals. Yes, always the possibility that the deal breaks, and if so, you have substantial downside from here. And some changes in capital could also alter the deal. And now at least 6.5 months before they’ll close it. Annualized it works out pretty nicely – if it works out.

Jim

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