First Northwest Bancorp · NASDAQ:FNWB
First Northwest Bancorp — Q2 2025 Earnings Presentation
29 slides from First Northwest Bancorp's earnings presentation, July 2025
Slide 1: Investor Presentation 2025 Second Quarter
Investor Presentation 2025 Second Quarter July 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 business environmen
Slide 3: Second Quarter 2025 Results
Second Quarter 2025 Results Reported net interest margin of 2.83% an increase of 7 bps from LQ Grew customer deposit balances by $19.6 million LQ, brokered deposits decreased $31.0 million Classified loans decreased $633,000 in second quarter from LQ Recorded a $296,000 recapture of provision for cr
Slide 4: 2025 Second Quarter Financial Summary
2025 Second Quarter Financial Summary • Adjusted PPNR* of $2.1 million increased $616,000 compared to $1.5 PPNR* million LQ and increased $1.6 million from $530,000 in the PYQ • Growth in Adjusted PPNR driven by continued margin expansion • Loans increased by $9.6 million or 0.6% during the quarter
Slide 5: Second Quarter 2025 GAAP Results
Second Quarter 2025 GAAP Results Selected Financial Data ($ in thousands, except for per share data) Q2 2025 Q1 2025 Q4 2024 Q3 2024 Q2 2024 Q1 2024 Q4 2023 Q3 2023 Q2 2023 Net Interest Income $ 14,193 $ 13,847 $ 14,137 $ 14,020 $ 14,234 $ 13,929 $ 14,195 $ 14,950 $ 15,982 Provision for Credit Losse
Slide 6: Strong Capital and Liquidity Positions
Strong Capital and Liquidity Positions Capital Levels Minimum No shares repurchased in 2025 846,123 shares remaining to be repurchased under the April 2024 Share Repurchase Plan Additional second quarter 2025 ratios (as a percentage of risk-based capital) 1 33% construction 364% CRE Liquid
Slide 7: Reduced Reliance on Brokered Deposits
Reduced Reliance on Brokered Deposits ($ in millions) Brokered deposit balances decreased $31.0 million from last quarter; $116.8 million from peak Non-Brokered deposits continue to increase 7
Slide 8: 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 $512.2 million of time deposits repricing in next 12 months • $410.3 million of customer time deposits are repricing at an avera
Slide 9: Average Deposits & NIM Recent Trends
Average Deposits & NIM Recent Trends ($ in millions) Slight NIM expansion over the past four quarters due to the reduction in deposit costs 9
Slide 10: Credit Trends – Risk Ratings
Credit Trends – Risk Ratings Loans by Risk Rating Q2 2025 Q1 2025 Q4 2024 Q3 2024 Q2 2024 ($ in Thousands) Balance % of Total Balance % of Total Balance % of Total Balance % of Total Balance % of Total Pass (Grades 1-3) $1,555,273 93.43% $1,545,909 93.26% $1,574,645 92.85% $1,593,927 91.88% $1,582,8
Slide 11: Classified Asset Trend
Classified Asset Trend Amortized Cost of Classified Assets ($ in Thousands) Q2 2025 Q1 2025 Q4 2024 Q3 2024 Q2 2024 Relationship 1 $ 8,120 $ 8,120 $ 11,384 $ 11,187 $ 11,187 Relationship 2 6,676 6,695 6,402 6,439 - Relationship 3 4,933 7,150 8,150 8,177 8,099 Relationship 4 4,091 - - - - Relationshi
Slide 12: Credit Quality – Classified Asset Summary
Credit Quality – Classified Asset Summary Classified Assets Schedule as of June 30, 2025 ($ in Thousands) Amortized % Total Loan Category Cost Assets Status • Condo project located in Bellevue, WA Relationship 1 CRE – Condo $ 8,120 0.37% • 18 unit mixed-use project, 9 units sold • Office Building in
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 noninterest To improve expense and operating efficiencies the lives of those • Organic loan and deposit growth we serve through multiple cust
Slide 15: First Fed Executive Team
First Fed Executive Team Geri Bullard David Edelstein Interim CEO & Chief Innovation Officer Chief Operating Officer Kyle Henderson Phyllis Nomura Chris Riffle Chief Credit Officer Chief Financial Officer Chief Strategy Officer & General Counsel 15
Slide 16: Thank You!
Thank You! Contact Geri Bullard Phyllis Nomura EVP | Interim CEO & COO EVP | CFO geri.bullard@ourfirstfed.com phyllis.nomura@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 June 30, 2025 NASDAQ ticker symbol First Fed is a Washington state-chartered commercial bank, headquartered in Port Angeles where it was founded in 1923 12 b
Slide 19: Securities Portfolio
Securities Portfolio Investment Portfolio Characteristics as of: Q2 2025 Q2 2024 Book Value $336.2 million $344.9 million Market Value $303.5 million $306.7 million Effective Duration 4.9 years 4.3 years Average Life 7.6 years 7.8 years Portfolio Yield 4.5% 5.0% Unrealized Gain/Loss on Investments,
Slide 20: Loan Portfolio Composition
Loan Portfolio Composition Loans by Type Change from ($ in Thousands) Q2 2025 % of Total Q2 2024 Q2 2024 Commercial Real Estate $392,193 23.6% $15,700 $376,492 1-4 Family 387,796 23.3% (2,516) 390,312 Construction and Land Development 72,808 4.4% (34,882) 107,689 Multi-Family 330,614 19.9% (20,515)
Slide 21: Core Deposit Composition
Core Deposit Composition Deposits by Type Q2 2025 Change from ($ in Thousands) Balance % of Total one year ago Noninterest Checking $240,052 14.5% ($36,508) Interest Checking 144,409 8.7% (17,775) Savings 227,968 13.8% 3,336 Money Market 484,787 29.3% 61,739 Certificate of Deposit 450,491 27.2% 52,3
Slide 22: Net Interest Income and Margin
Net Interest Income and Margin ($ in Thousands) 22
Slide 23: Performance Metrics
Performance Metrics Trailing Twelve Months Net Income (Loss) ($ in Thousands) Trailing Twelve Months ROAA (%) Trailing Twelve Months Efficiency Ratio (%) Trailing Twelve Months Net Interest Margin (%) 23
Slide 24: Performance Metrics
Performance Metrics Trailing Twelve Month Return on Avg. Equity Trailing Twelve Month Earnings per Share Trailing Twelve Month Historical Book Value per Share Trailing Twelve Month Historical CE and TCE Ratios * * Non-GAAP reconciliation provided at the end of this presentation 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 1 Leverage Ratio (as reported on FFIEC Form 051) 2 Tier 1 Capital Ratio (as reported on FFIEC Form 051) 2 Total RBC Ratio (as reported on FFIEC Form 051) 2 1 - Non-GAAP reconciliation provided at the end of this presentation
Slide 27: 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 ($M) Franchise Branches (%) Clallam 1 8 1,196 42.0% 69.7% Jefferson 2 1 185 21.2% 10.8% Emerging Puget Sound Banking Markets Number Deposit Ma
Slide 28: Leading Deposit Market Share
Leading Deposit Market Share Clallam County, WA Whatcom County, WA Rank Institution (ST) # Branches Deposits ($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 29: Non-GAAP Reconciliations
Non-GAAP Reconciliations Equity/Total Assets and Tangible CE/Tangible Assets Bank Equity/Total Assets and Tangible CE/Tangible Assets 2022 Q4 2023 Q4 2024 Q4 2025 Q1 2025 Q2 2022 Q4 2023 Q4 2024 Q4 2025 Q1 2025 Q2 (Dollars in thousands) (Dollars in thousands) Total shareholders' equity $ 158,881 $ 1
First Northwest Bancorp — Q2 2025 Earnings Presentation on 6ix