First Northwest Bancorp · NASDAQ:FNWB
First Northwest Bancorp — Q4 2024 Earnings Presentation
28 slides from First Northwest Bancorp's earnings presentation, March 2025
Slide 1: Investor Presentation: 2024 Fourth Quarter and Year End
Investor Presentation 2024 Fourth Quarter and Year End March 2025 1
Slide 2: Forward Looking Statement
Forward Looking Statement Certain matters discussed in this investor presentation may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements relate to, among other things, expectations of the transactions discus
Slide 3: Established Community Bank in Puget Sound
Established Community Bank in Puget Sound Established Puget Sound Banking Markets Number Deposit Market Deposits in % of County of Market Share Rank Market ($M) Franchise Branches (%) Clallam 1 8 1,196 42.0% 69.7% Jefferson 2 1 185 21.2% 10.8% Emerging Puget Sound Banking Markets Number Deposit Ma
Slide 4: Positioning Efforts Expected to Benefit 2025
Positioning Efforts Expected to Benefit 2025 • Successful interest rate hedge, tied to SOFR index, added $1.1 million to 2024 earnings and maintains positive carry for additional 25 bps of rate cuts • Sold $23.2 million of lower yielding securities, resulting in a $2.1 million loss • Surrendered Ban
Slide 5: Fourth Quarter 2024 Results
Fourth Quarter 2024 Results Reported net interest margin of 2.73% an increase of 2 bps from last quarter primarily driven by reductions in funding costs of certificate of deposits Increased AFS investments by $29.5 million in the fourth quarter of 2024 – strategic positioning of the balance sheet fo
Slide 6: 2024 Year End Financial Summary
2024 Year End Financial Summary • PPNR* of $8.9 million, an increase of $4.7 million over the prior year, PPNR* primarily related to the sale-leaseback transaction gain of $7.6 million and a decrease in noninterest expenses of $1.5 million offset by the $2.1 million loss on sale of investment securi
Slide 7: Fourth Quarter 2024 GAAP Results
Fourth Quarter 2024 GAAP Results Selected Financial Data ($ in thousands, except for per share data) Q4 2024 Q3 2024 Q2 2024 Q1 2024 Q4 2023 Q3 2023 Q2 2023 Q1 2023 Net Interest Income $ 14,137 $ 14,020 $ 14,234 $ 13,929 $ 14,195 $ 14,950 $ 15,982 $ 16,305 Provision for Credit Losses 3,655 3,134 8,7
Slide 8: Strong Capital and Liquidity Positions
Strong Capital and Liquidity Positions Capital Levels Minimum 312,288 shares repurchased in 2024 944,279 share repurchase plan authorized in second quarter of 2024 Additional fourth quarter 2024 ratios (as a percentage of risk-based capital) 1 34% construction 352% CRE Liquidity Coverage
Slide 9: Repricing Time Deposits Benefits Margin
Repricing Time Deposits Benefits Margin Based on current maturities within the portfolio and assuming no further interest rate adjustments in the Fed Funds Rate, there are $580.0 million of time deposits repricing in next 12 months • $426.6 million of customer time deposits are repricing at an avera
Slide 10: Credit Trends – Risk Ratings
Credit Trends – Risk Ratings Loans by Risk Rating Q4 2024 Q3 2024 Q2 2024 Q1 2024 Q4 2023 ($ in Thousands) Balance % of Total Balance % of Total Balance % of Total Balance % of Total Balance % of Total Pass (Grades 1-3) $1,574,647 92.35% $1,594,156 91.89% $1,582,848 93.21% $1,594,284 93.15% $1,549,9
Slide 11: Classified Asset Trend
Classified Asset Trend Amortized Cost of Classified Assets ($ in Thousands) Q4 2024 Q3 2024 Q2 2024 Q1 2024 Q4 2023 Relationship 1 $ 11,384 $ 11,187 $ 11,187 $ 14,437 $ 14,981 Relationship 2 8,150 8,177 8,099 - - Relationship 3 6,402 6,439 - - - Relationship 4 6,197 6,228 9,134 9,268 9,283 Relations
Slide 12: Credit Quality – Classified Asset Summary
Credit Quality – Classified Asset Summary Classified Assets Schedule ($ in Thousands) Amortized % Total Loan Category Cost Assets Status •Condo project located in Bellevue, WA Relationship 1 CRE – Condo 11,384 0.51% •Units are currently listed for sale •Townhome project in Seattle, WA Relationship 2
Slide 13: Strategic Focus
Strategic Focus Grow customer Expand our loan and Target home equity deposits with focus on deposit production growth with digital treasury management with commercial channel and digital platforms relationships Continue collection Grow and maintain Maintain Strong Risk and liquidation efforts capita
Slide 14: Financial Outlook
Financial Outlook • Reduce credit costs in 2025 • Focus on expanding net interest margin and neutralizing margin sensitivity Our mission: • Unchanged focus on To improve noninterest expense and the lives of those operating efficiencies we serve • Organic loan and deposit growth through multiple cust
Slide 15: First Fed Executive Team
First Fed Executive Team Matt Deines Geri Bullard David Edelstein President and CEO Chief Financial Officer & Chief Innovation Officer Chief Operating Officer Kyle Henderson Chris Neros Chris Riffle Chief Credit Officer Chief Banking Officer Chief Strategy Officer & General Counsel 15
Slide 16: Thank You!
Thank You! Contact Matt Deines Geri Bullard President and CEO EVP | CFO and COO matt.deines@ourfirstfed.com geri.bullard@ourfirstfed.com 16 16
Slide 17: Appendix
& First Northwest Bancorp S First Fed Appendix ‘& First Northwest Bancorp 17
Slide 18: About First Northwest Bancorp (FNWB)
About First Northwest Bancorp (FNWB) FNWB Bank holding company for First Fed, a growing community bank with $2.2 billion in assets as of December 31, 2024 NASDAQ ticker symbol First Fed is a Washington state-chartered commercial bank, headquartered in Port Angeles where it was founded in 1923
Slide 19: Securities Portfolio
Securities Portfolio Investment Portfolio Characteristics as of: Q4 2024 Q4 2023 Book Value $376.3 million $333.9 million Market Value $340.3 million $295.6 million Effective Duration 3.9 years 4.8 years Average Life 6.9 years 7.7 years Portfolio Yield 4.64% 4.53% Non-agency CMBS 28.68% 21.30% Unrea
Slide 20: Loan Portfolio Composition
Loan Portfolio Composition Loans by Type Change from ($ in Thousands) Q4 2024 % of Total Q4 2023 Q4 2023 Commercial Real Estate $391,301 23.1% ($1,867) $393,168 1-4 Family 395,671 23.3% 16,896 378,776 Construction and Land Development 78,428 4.6% (51,765) 130,193 Multi-Family 333,612 19.7% 3,477 330
Slide 21: Core Deposit Composition
Core Deposit Composition Deposits by Type Q4 2024 Change from ($ in Thousands) Balance % of Total one year ago Noninterest Checking $256,417 15.2% $4,333 Interest Checking 164,891 9.8% (4,527) Savings 205,055 12.1% (37,093) Money Market 413,822 24.5% 51,617 Certificate of Deposit 464,921 27.5% 21,50
Slide 22: Net Interest Income and Margin
Net Interest Income and Margin ($ in Thousands) 22
Slide 23: Performance Metrics
Performance Metrics Net Income (Loss) ($ in Thousands) ROAA (%) Efficiency Ratio (%) Net Interest Margin (%) 23
Slide 24: Performance Metrics
Performance Metrics Return on Avg. Equity Earnings per Share Historical Book Value per Share Historical CE and TCE Ratios * * Non-GAAP reconciliation provided on page 28 24
Slide 25: Balance Sheet Growth
Balance Sheet Growth ($ in Millions) Total Assets Total Loans and Leases Total Deposits Total Equity 1 - CAGR calculated from first period to last period shown in chart 25
Slide 26: Bank Level Capital Ratios
Bank Level Capital Ratios Equity/Total Assets, Tangible CE/Tangible Assets * Leverage Ratio (as reported on FFIEC Form 051) Tier 1 Capital Ratio (as reported on FFIEC Form 051) Total RBC Ratio (as reported on FFIEC Form 051) * Non-GAAP reconciliation provided on page 28 26
Slide 27: Leading Deposit Market Share
Leading Deposit Market Share Clallam County, WA Whatcom County, WA Rank Institution (ST) # Branches Deposits ($M) Market Share (%) Rank Institution (ST) # Branches Deposits ($M) Market Share (%) 1 First Northwest Bancorp (WA) 8 1,196 42.0 1 Peoples Bancorp (WA) 9 1,238 24.4 2 Sound Financial Bancorp
Slide 28: Non-GAAP Reconciliations
Non-GAAP Reconciliations Historical CE and TCE Ratios Bank Equity/Total Assets and Tangible CE/Tangible Assets 2020 2021 2022 2023 2024 2020 2021 2022 2023 2024 (Dollars in thousands) (Dollars in thousands) Average shareholders' equity $ 177,630 $ 187,189 $ 164,453 $ 159,824 $ 158,515 Total sharehol
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