First Northwest Bancorp · NASDAQ:FNWB
First Northwest Bancorp — Q1 2021 Earnings Presentation
35 slides from First Northwest Bancorp's earnings presentation, May 5, 2021
Slide 1: First Northwest Bancorp First Quarter 2021 Investor Presentation
& First Northwest Bancorp First Quarter 2021 Investor Presentation Ue May 2021 = te WSS AS \ LY
Slide 2: About First Northwest Bancorp (FNWB)
First Northwest Sancorp About First Northwest Bancorp (FNWB) FNWB NASDAQ ticker symbol N°1 Investor Presentation Bank holding company for First Fed, a growing $1.7 billion* asset, community bank headquartered in Port Angeles, ‘Washington First Fed is a Washington state-chartered savings bank, founde
Slide 3: Mission Statement
‘S First Fed We design and deliver delightful, accessible, and effortless financial solutions by empowering our team members to improve the lives of those we serve. Mission Statement Confidential © 2021 Fst Fad [/
Slide 4: Experienced and Deep Leadership Team
Fist Northwest Bancocp Experienced and Deep Leadership Team Years Years of the Banking. | Company | Experience Matthew P.Deines President, Chief Executive Officer and Director Geri Bullard Executive VP, Chief Financial Officer 1.25 25 Terry Anderson Executive VP, Chief Credit Officer 3 7 Christopher
Slide 5: Board Comprised of Community Leaders with Long Average Tenure
Fist Northwest Bancocp Board Comprised of Community Leaders with Long Average Tenure : Tenure with jee - he company, ‘Stephen E. Oliver Chairman of the Board Retired - Owned S.€. Oliver, Inc 21 years Cindy H. Finnie Vice Chairman of the Retired Executive from Allstate Insurance Sears Board Sherilyn
Slide 6: ESG — Creating Value Beyond Banking
Fist Northwest Bancocp ESG — Creating Value Beyond Banking Governance Initiatives "Appointed our third female director in 2020 Companywide recycling programs Paper waste reduced by approximately 1,800 pounds Carbon emissions reduced by over 25,000 pounds ‘Water consumption reduced by approximately 3
Slide 7: Overview of Risk Management
Fist Northwest Bancocp Overview of Risk Management Board and Committee Oversight and Reporting General Counsel reports directly to CEO ‘Tenured Chief Credit Officer Independent internal Audit Department ‘Succession Planning Related Party Transaction and Insider Loan Tracking ‘Augit Findings Tracking
Slide 8: Recent Developments
Fist Northwest Bancocp Recent Developments = Subordinated Debt Issuance = Bellevue Branch Purchase = Brand Refresh = Fintech Joint Venture
Slide 9: Subordinated Debt Issuance
Fist Northwest Bancocp Subordinated Debt Issuance ® On March 25, 2021, the Company completed a private placement of $40.0 million of 3.75% fixed-to-floating rate subordinated notes due 2031 (the “Notes”) to certain qualified institutional buyers and accredited investors. = The net proceeds to the Co
Slide 10: Bellevue Branch Purchase
Fist Northwest Bancocp Bellevue Branch Purchase "On March 22, 2021 the Company announced that First Fed has entered into an agreement with Sterling Bank and Trust of Southfield, Michigan to purchase its Bellevue, Washington branch, subject to applicable regulatory approvals and other customary closi
Slide 11: First Fed Brand Refresh
Fist Northwest Bancocp First Fed Brand Refresh First Federal A First Fed Primary Reasons for Our Name Change: 1. Familiar: Our customers and employees already call us “First Fed.” ad Findable: Our website is ourfirstfed.com and social media is “ourfirstfed.” So, itis easier for people to find us onl
Slide 12: Fintech Joint Venture Quin
First Northwest Bancorp Fintech Joint Venture quin Quin Ventures is joint venture partnership between FNWB and Peace of Mind, Inc. a combined effort by ‘2 community bank and a financial technology ‘company The purpose of Quin isto deliver digitalfrs financial services to improve the financial health
Slide 13: Current Strategic Initiatives
Fest Northwest Bancorp Current Strategic Initiatives 12) oianceshect srateey 2) HumanCapital RE) Revenue Growth ral See asst mero (ze trhane lane het mvt @ @=) fd & Hire the Best People Empower Them Hold them Accountable Reward Them 2S Net interest income FB mee tan ESTE] payments “Treasury Manageme
Slide 14: Substantial Growth Achieved With Similar Asset Mix
Fest Northwest Bancorp Substantial Growth Achieved With Similar Asset Mix Qi 2019 Total Assets: $1,279M Qi 2020 Total Assets: $1,397 Qi 2021 Total Assets: $1,736M. sans ssK09 Investor Presentation
Slide 15: Securities Portfolio
Fist Northwest Bancocp Securities Portfolio Investment Portfolio Cl istics as of March 34, 2021 = Book Value: $390.7 Million = Market Value $393.5 Million = Effective Duration: 5.42 years = Average Life: 6.78 years 100% available-for-sale securities
Slide 16: Lending Strategy & Portfolio Composition
Fist Northwest Bancocp Lending Strategy & Portfolio Composition cala% pppase Other (oes in Thousands) 3/31/2021 ‘nati pcm: oan Type Balance 14 Family 329500 ‘Commercial Rel Estate $295,826 1-4 Family 28% Mult-Famiy 5162487 cap 1a cao 5157316 Auto 103360 cal $35,105 2021Q1 PP $47,928 4% 7 Other Consu
Slide 17: Strong Core Deposit Composition
Fist Northwest Bancocp Strong Core Deposit Composition Deposits Type sys1/2001 Balance ‘MOA & Savings 3581438 75% Norn. Checking 5236232 20.6% fetal COs 5203278 14.0% Imerest Checking 5169910 18% Brokered COs 385.849, 6.0% ‘Total Deposits $1,488,807 100.0% Core Deposits 5.388.858 98.0% Strong deposi
Slide 18: Building Revenue
Fist Northwest Bancocp Building Revenue 16000 Investor Presentation se oz1a12 e287 Morege Revenue oon Total Operating 1 2019 Revere: ~ $10.9m fc 2020 gm TnL Opertng $11.7M bic, Total Operating Qi 2021 Revenue: $16.2
Slide 19: 1Q 2021 Financial Highlights
First Northwest Sancorp 1Q 2021 Financial Highlights = First quarter net income was $3.1 million, compared to $3.8 million in the preceding quarter and $873,000 in ‘the year ago quarter. Diluted earnings per share was $0.34, compared to $0.41 per share in the preceding quarter and $0.09 per share in
Slide 20: Strong, Consistent Historical Profitability
Fist Northwest Bancocp Strong, Consistent Historical Profitability Trailing 2017 TIMI 2018TIMAX 2019 TIMAL 2020TTMAL 2021 TM AL Trailing 2017 TIL 2018TTM a1 2019TTMAL 2020TTMAL 2021 TTM a2 Trailing 7 TIM G2 2018 TM QI 2019 TTMGL 2020TTM ax 2021 TT a Investor Presentation 2017 TIM Qi 2018 TIMI 2019 T
Slide 21: Net Interest Income and Margin
First Northwest Bancorp Net Interest Income and Margin en1s00 e750
Slide 22: Balance Sheet Growth
Fist Northwest Bancocp Balance Sheet Growth Ssleeel Hi rPP Loans ‘cAGR’: caar’ 11.8% 15.0% voiced 201702 01801 20901 202002 _—202IaL oxsar 201701 201801 703901 20200120201 Total Equity ($M) caGR’ =O oan Depo e =, 13.4% om Le sass | fon zoo 201701 201801 201901 20ROQI 200101 owsar 701701 701801 2oIBq
Slide 23: Leading Deposit Market Share
First Northwest Bancorp Leading Deposit Market Share I wOEEGESE MISE
Slide 24: Historically Strong Asset Quality
Fist Northwest Bancocp Historically Strong Asset Quality | NPAs / Assets (9) ‘Texas Ratio 20210: 1.08% 050 040 , oat zorsor 201701 201801201801 202001202101 voisar 201701 2018a2 019202001 202101 Total Loans (%) = Growth focused on low-risk asset classes such as Multi-Family PP) © Use S21 827A) "Port
Slide 25: Returning Capital to Shareholders
Fist Northwest Bancocp Returning Capital to Shareholders (On October 28, 2020, th eC irement of .dditional “1 stock, or 10% of time As of March 31, 2021, the Company had repurchased 135,837 shares of common stock at an average price of $15.89 per share for a total cost of $2.5 million ‘The Company h
Slide 26: Bank Level Capital Ratios
Fist Northwest Bancocp Bank Level Capital Ratios TCE / TA (%) ti 332 a4 OC eT os Bs, a 101 to poisy 2017 2018Y 201820207 202101 See ay, only ania Sane’ Sania Tier 1 Capital Rati Total RBC Ratio (94) 209 91 agp 187 163 186 2gusy 20n7Y—zo1sy—201sy 020" 202101 2ousy —2017Y—201eY «2019 2020" «2020 Inves
Slide 27: Capital Metrics
Fist Northwest Bancocp Capital Metrics Tangible Book Value Per Share sam 19200 © 29700 390 Aq aL 2a Investor Presentation Tangible Common Equity Ratio 119% 119% ll [| ' sams 10700 2a 2AM AMM 1am
Slide 28: Consolidated Historical Balance Sheet
Fist Northwest Bancocp Consolidated Historical Balance Sheet mae a8 as ans assis ase sean (nosy aso spo sas) sous Sonan sana ssa sts Toahoas Eres asa moon asm amass 59310 Investor Presentation sams sans asst sess aaa
Slide 29: Consolidated Historical Income Statement
First Northwest Bancorp Consolidated Historical Income Statement 702008 72008 Net interest income 9407 12677 Provision for Loan Losses 11266 330 Loanand Deposit 381 940 Mortgage Serving Fes, Net 35 7 Net Gain on Sale of Loans 383 2324 Net Gain on Sale of Investments 7 12 Banke Qumned fe Insurance, N
Slide 30: COVID — Related Loan Deferrals By Industry
First Northwest Bancorp COVID — 19 Related Loan Deferrals By Industry the Loan Deferral Trends {sin tases sugsta . s2saz0 financial assistance sanay aia $8007 period ae : of total loans PP ee PPP KEP PPLE OEE 6 ssornoris,200 Exposure {in thovsens) Panta ote of esr 2025 Taaance Count Sanee Count _~S
Slide 31: Limited COVID — At-Risk Industry Exposure
Fist Northwest Bancocp Limited COVID — 19 At-Risk Industry Exposure dustry Exposure (Sin Thousands) outstanding Balance Totaltoans ‘Accommodation and Food Services: a7 50 4% None of the Loan Balances Within “At-Risk” Industries Heattheare and Soca assistance 315510 13% Are Currently on Deferral etal
Slide 32: Experienced, but #YOUNG, Management Team
First Northwest Bancorp Experienced, but #YOUNG, Management Team x Matt Deines, 47 Terry Anderson, 52 Derek Brown, 50 Geri Bullard, 56 bry Bankr 59 Near 20 art Fees Gadus) c (ot mreinton ‘bank Bs, PBS Grace) stor resentation (OA PoBs ratte)
Slide 33: Experienced, but #YOUNG, Management Team
First Northwest Bancorp Experienced, but #YOUNG, Management Team Kelly Liske, 44 Chris Riffle, 45 Randy Riffle, 45 ‘epoca Fie Fs utc counel sine 20080, eran stern 8S) Investor Presentation
Slide 34: Market Footprint locations
Fist Northwest Bancocp Market Footprint 13 locations: 81in Clallam and Jefferson Counties 2m Kitsap County 2 in Whatcom County (#1 in August 2021) Lin King County (#1 in June 2021) Branches
Slide 35: Thank you
‘S First Northwest Bancorp Thank you Contact Matt Deines Geri Bullard President and CEO eve/cro ation i blrdourtstedcom ‘S First Fed
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