First Northwest Bancorp · NASDAQ:FNWB
First Northwest Bancorp — Investor Presentation (March 2025)
28 slides from First Northwest Bancorp's investor presentation, Mar 10, 2025
Slide 1: First Northwest Bancorp Investor Presentation
& First Northwest Bancorp Investor Presentation
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 coumty "Tank paces amen MEMES pan Branches (%) a ee To wien 2 wes 2% 100% Emerging Puget Sound Banking Markets ‘Number Deposit Market Deposks in ot county MarketShare Rank geaenes Maret stay MMEEMT pranc
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* Loans Deposits Capital = Nor-GAAP reconciliation provided on page 28 ~ PPNR* of $8.9 million, an increase of $4.7 million over the prior year, primarily related to the sale-leaseback transaction gain of $7.6 million and a decrease in noninterest expenses of $1.5
Slide 7: Fourth Quarter 2024 GAAP Results
Fourth Quarter 2024 GAAP Results ‘Selected Financial Data (S in nousands, xcept for per share data) 42024 032024 22024 Qi 2024 442023032023 —Q22023_—_—Q1 2023 ‘Net Interest income $ 14137 $ 1402 $ 14234 $ 13929 $ 14195 $ 14,950 $ 15,982 $ 16305 Provision for Credit Losses 3,655 3,134 8,739 970 1,152
Slide 8: Strong Capital and Liquidity Positions
Strong Capital and Liquidity Positions Capital Levels = 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) * = 34% construction = 352% CRE Liquidity Coverage ® $1.3 bi
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 Rsk Rating 8 2028 032024 022024 ‘Qi 2024 042023, \sintrousands) Balance %ofTotal Babee _%of Tota __Balance __%of Total Balance %ofTotal Balance _% of Total Pass (Grades £3) $1574647 92.35% $1504156 91.89% 51582848 92.21% S1504,284 93.15% $1,549910 92.37% ‘Watch
Slide 11: Classified Asset Trend
Classified Asset Trend ‘Amortized Cost of Classified Assets ($ in Thousands) Q4 2024 Q3 2024 Q2 2024 Qi 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 Relation
Slide 12: Credit Quality — Classified Asset Summary
Credit Quality — Classified Asset Summary Classified Assets Schedule {Sin Thousands) Amortized % Total Loan Category Gost__ 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 Relationshi
Slide 13: Strategic Focus
Strategic Focus Grow customer deposits with focus on treasury management and digital platforms Expand our loan and deposit production with commercial relationships Target home equity growth with digital channel Continue collection and liquidation efforts for classified assets Grow and maintain capit
Slide 14: Financial Outlook
Financial Outlook ‘& First Northwest Bancorp Our mission: To improve the lives of those we serve Reduce credit costs in 2025 Focus on expanding net interest margin and neutralizing margin sensitivity Unchanged focus on noninterest expense and operating efficiencies Organic loan and deposit growth th
Slide 15: First Fed Executive Team
First Fed Executive Team Matt Deines President and CEO Kyle Henderson Chit Crest Officer Geri Bullard David Edelstein Chief Financial Officer Chiet Operating Officer CChiet Innovation Officer Chris Neros Chief Barking Officer Chris Riffle Chit Strategy Officer & General Counsel ‘S First Northwest Ba
Slide 16: Thank You! Contact
‘S& First Northwest Bancorp ‘S First Fed Thank You! Contact Matt Deines Geri Bullard President and CEO EVP | CFO and CoO matt. deines@ourfirstfed.com geribullard@ourfirstfed.com ‘S First Northwest Bancorp 16
Slide 17: Appendix
‘S& First Northwest Bancorp ‘S First Fed Appendix ‘S First Northwest Bancorp 7
Slide 18: About First Northwest Bancorp (FNWB)
About First Northwest Bancorp (FNWB) FNWB NASDAQticker symbol N°1 Deposit Market Share in Clallam. and Jefferson Counties Bank holding company for First Fed, a growing community bank with $2.2 billion in assets as of December 31, 2024 First Fed is a Washington state-chartered commercial bank, headqu
Slide 19: Securities Portfolio
Securities Portfolio Q4 2024 Yield 4.64% Investment Portfolio Characteristics as of: 42024 42023 ‘Book Value $376.3 million $333.9 million Market Value $340.3 million $295.6 million effective Duration 3.9 years 43 years Average Life 69 years 7.27 years Portfolio Yield 4.60% 453% Non-agency CMBS 28.6
Slide 20: Loan Portfolio Composition
Loan Portfolio Composition Other Consumer 12% Q4 2024 Yield 5.59% Toans by Type Change ron nto! 824 SotToral 042023042023, “Commercial Real Ee Sasi Bis (ia) SSSI 2-4 Family B57 233% 5885375776 Construction and Land Development 73,28 4.6% (51,765) 130193 Muts-Family am12 187% 3477330135 auto as 76%6
Slide 21: Core Deposit Composition
Core Deposit Composition Deposits by Type aa2024 Change from Noninterest (Sin Trousands) Balance _ % of Total_one year ago oa Noninterest Checking $256,417 2% 4383 ‘ad Interest Checking 164,891 9.8% (4,527) Savings 205,055 12.1% (37,093) Money Market 413,822 24.5% 51617, Certificate of Deposit 464,9
Slide 22: Net Interest Income and Margin
Net Interest Income and Margin ($ in Thousands) 450% $22,000 2.96% oe #19500 1" sigss1 250% 225% $17,000 a $15,982 3.00% 273% $14,950 $14,500 | $1615 saz929 514234 saaon0 $1437 | ‘$12,000 i Oo o | | 2.00% 82022 i203 Q2203—«BIO2A_—«QAIOPZ.—«QA70D_—«QDION.«—« NDA —QNION sm Net interest income ——=Net i
Slide 23: Performance Metrics
Performance Metrics Net Income (Loss) ($ in Thousands) ROAA (%) sisate——$15685 ons OK re $10340 01% $2,286 0.30% $5613 2020 2021 2022 2023 2024 2020 mi 2022 203 204 Efficiency Ratio (%) Net Interest Margin (%) 93.89% 351% 3.19% 326% nn% 313% 759% ans 2m0 ama am 203 as 2m0 aaa am ams ame S First Nort
Slide 24: Performance Metrics
Performance Metrics Return on Avg. Equity Earnings per Share FST, Saal $166 $170 am $1.0 143% aoe Sie $076 mo mi mm m3 ma 2000 2001 2022 203 2024 Historical Book Value per Share Historical CE and TCE Ratios * 127% $1889 ore iccal 128% 100% $1660 $1658 2020 aut a 203 ams 200 ar 2m 2m3 208 + Non-GAAP
Slide 25: Balance Sheet Growth
Balance Sheet Growth ($ in Millions) Total Assets Total Loans and Leases CAGR': 7.8% $2202 $2,232 CAGR’: 10.1% 1: SNGAB S675 gin saan S654 sue amo am 2m 23 ame 200 am mm 23 ams Total Deposits Total Equity CCRC, Loans / Deposits suse. suse «SST SB $186 $190 $1334 $158 $163 $154 amo amt mez ma 2m0 am
Slide 26: Bank Level Capital Ratios
Bank Level Capital Ratios Equity/Total Assets, Tangible CE/Tangible Assets * Leverage Ratio (as reported on FFIEC Form 054) nosxinose 1056810278 : = . a7 sasy, | [mW Ttal sets TCE/TA S65% 920% 822% 8.05% 799% ma 2023 2008 | Ratio (as reported on FFIEC Form 051) 2020 2001 ase 10.41% 10.28% 2020 2021
Slide 27: Leading Deposit Market Share
Leading Deposit Market Share Clallam County, WA Whatcom County, WA Rank Institution (ST) ‘#Branches Deposits (SM) MarketShare(5) Rank Institution (ST) # Branches Deposits (SM) Market Share (%) 1 FlstNorthwest Bancor (WA) 2 196 ‘20 1 PsotsBreor A) 2 uae 2 Saund rare Bancorp le (WA) caer ua 2 bankst A
Slide 28: Non-GAAP Reconciliations
Non-GAAP Reconciliations Historical CE and TCE Ratios Bank Equity/Total Assets and Tangible CE/Tangible Assets erage shareholders ity $ T7600 $ 187189 $ 164453 $ 159824 5 158515 Tol shareholders equity $ sms $ imem Sinan 3 1sa%6 $ Ee peycannr) connate aes asta aaee ORS ee ee ee Eee ewan 1m a 2 Soeee
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