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Preferred stock is a special equity security that has properties of both equity and debt. First Financial Northwest's preferred stock for the quarter that ended in Dec. 2024 was $0.00 Mil.
The market value of preferred stock needs to be added to the market value of common stocks in the calculation of Enterprise Value. First Financial Northwest's Enterprise Value for the quarter that ended in Dec. 2024 was $198.82 Mil.
In the calculation of book value, the par value of preferred stocks needs to subtracted from total equity. First Financial Northwest's Book Value per Share for the quarter that ended in Dec. 2024 was $17.50.
Dividends paid to preferred stocks need to be subtracted from net income in the calculation of Earnings per Share (Diluted). First Financial Northwest's Earnings per Share (Diluted) for the three months ended in Dec. 2024 was $0.13.
The historical data trend for First Financial Northwest's Preferred Stock can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
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Trend | Dec15 | Dec16 | Dec17 | Dec18 | Dec19 | Dec20 | Dec21 | Dec22 | Dec23 | Dec24 | |||||||||||
Preferred Stock | Get a 7-Day Free Trial |
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First Financial Northwest Quarterly Data | ||||||||||||||||||||
Mar20 | Jun20 | Sep20 | Dec20 | Mar21 | Jun21 | Sep21 | Dec21 | Mar22 | Jun22 | Sep22 | Dec22 | Mar23 | Jun23 | Sep23 | Dec23 | Mar24 | Jun24 | Sep24 | Dec24 | |
Preferred Stock | Get a 7-Day Free Trial |
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Preferred Stock is a special equity security that has properties of both equity and debt. It is generally considered a hybrid instrument. Preferred stock is senior to common stock, but is subordinate to bonds in terms of claim or rights to their share of the assets of the company.
Preferred stock has priority over common stock in the payment of dividends and any payments received when a company liquidates.
Preferred stock comes in many forms. It can be:
A preferred stock without a maturity date is called a perpetual preferred stock. These are relatively rare. A good example of perpetual preferred stock is the many series of Public Storage (PSA) preferred shares that trade on the New York Stock Exchange.
Before investing in preferred stock, it is important to know which of the above groups the stock belongs to. Is it convertible or non-convertible? Are dividends cumulative or non-cumulative?
It is also critical that an investor knows what bonds the company has in front of the preferred stock. Bondholders get paid first. So the decision to buy a preferred stock can be similar to the decision to buy a bond. But, remember, the preferred stock of a company with bonds is junior to those bonds.
Unless a preferred stock is convertible, the upside in a preferred stock investment is more limited than in a common stock investment. If a company doubles its earnings, it is usually under no more obligation to double the dividends paid to preferred shareholders than it is to double the interest paid to its bankers and bondholders.So preferred stock is very different from common stock.
First Financial Northwest (NAS:FFNW) Preferred Stock Explanation
When a company needs capital but does not wish to issue debt, they may sell preferred stocks to investors.
For instance, during the financial crisis of 2008, Goldman Sachs (GS) issued a combination of preferred stock and common stock options for $5 billion of capital to Warren Buffetts Berkshire Hathaway (BRK.A)(BRK.B). In this deal, Berkshire Hathaway paid $5 billion for 10% cumulative perpetual preferred stock and warrants to buy 43.5 million shares of Goldman Sachs at $115 a share. Goldman Sachs bought back the preferred in 2010. Guess how much money Warren Buffett made in this deal in two years? Read How Much Did Warren Buffetts Berkshire Hathaway (BRK.B) Make on Its Goldman Sachs (GS) Preferred Stock?
1. The market value of Preferred Stocks needs to be added to the market value of common stocks in the calculation of enterprise value.
First Financial Northwest's Enterprise Value for the quarter that ended in Dec. 2024 is calculated as
Enterprise Value | |||||||||
= | Market Cap | + | Preferred Stock | + | Long-Term Debt & Capital Lease Obligation | + | Short-Term Debt & Capital Lease Obligation | + | Minority Interest |
= | 200.291 | + | 0 | + | 112.55 | + | 0 | + | 0 |
- | Cash, Cash Equivalents, Marketable Securities | ||||||||
- | 114.019 | ||||||||
= | 198.82 |
2. In the calculation of Book Value, the par value of Preferred Stocks needs to subtracted from total equity.
First Financial Northwest's Book Value per Share for the quarter that ended in Dec. 2024 is calculated as
Book Value per Share | = | (Total Stockholders Equity | - | Preferred Stock) | / | Shares Outstanding (Diluted Average) |
= | (161.555 | - | 0) | / | 9.230 | |
= | 17.50 |
3. Dividends paid to Preferred Stocks need to be subtracted from net income in the calculation of earnings per share.
First Financial Northwest's Earnings per Share (Diluted) (EPS) for the three months ended in Dec. 2024 is calculated as
Earnings per Share (Diluted) | = | (Net Income | - | Preferred Dividends) | / | Shares Outstanding (Diluted Average) |
= | (1.2 | - | 0) | / | 9.437 | |
= | 0.13 |
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Thank you for viewing the detailed overview of First Financial Northwest's Preferred Stock provided by GuruFocus.com. Please click on the following links to see related term pages.
Simon Soh | officer: Chief Lending Officer FSBNW | 201 WELLS AVENUE SOUTH, RENTON WA 98057 |
Richard P Jacobson | officer: COO of the Bank | |
Kiley Joseph W Iii | director, officer: President and CEO of the Bank | IMPERIAL CAPITAL BANCORP INC, 888 PROSPECT STREET SUITE 110, LA JOLLA CA 92037 |
Cindy L. Runger | director | 201 WELLS AVENUE SOUTH, RENTON WA 98057 |
Christine A. Huestis | officer: 1st VP/Prin. Acct Officer | 201 WELLS AVENUE SOUTH, RENTON WA 98057 |
Richard M Riccobono | director | 201 WELLS AVENUE SOUTH, RENTON WA 98057 |
Ralph C Sabin | director | C/O PACIFIC VENTURE GROUP, 114 PACIFICA STREET, SUITE 270, IRVINE CA 92618 |
Diane C. Davis | director | 201 WELLS AVENUE SOUTH, RENTON WA 98057 |
Kevin D Padrick | director | 2055 FIRST STREET, BAKER CITY OR 97814 |
Patricia M. Remch | director | 201 WELLS AVENUE SOUTH, RENTON WA 98057 |
Randy T. Riffle | officer: Executive VP and CCO | 105 W. 8TH STREET, PORT ANGELES WA 98362 |
Gary F Faull | director | 201 WELLS AVENUE SOUTH, RENTON WA 98057 |
Joann E Lee | director | 201 WELLS AVENUE SOUTH, RENTON WA 98057 |
Ronnie J Clariza | officer: Sr.VP/Chief Risk Officer | 201 WELLS AVENUE SOUTH, RENTON WA 98057 |
Gregg H. Deritis | officer: Senior VP and CCO | 201 WELLS AVENUE SOUTH, RENTON WA 98057 |
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