First Northwest Bancorp · NASDAQ:FNWB

First Northwest Bancorp — Q4 2020 Earnings Presentation

24 slides from First Northwest Bancorp's earnings presentation, Feb 4, 2021

  1. Slide 1: Fourth Quarter 2020 Investor Presentation

    & First Northwest Bancorp Fourth Quarter 2020 Investor Presentation February 2021 ~SS SES (SS ———

  2. Slide 2: About First Northwest Bancorp (FNWB)

    FirstNorthwest Bancorp About First Northwes: Bancorp (FNWB) FNWB NASDAAKicker symbol N°1 Investor Presentation — Bankholding company for First Federal, a growing $1.6 billion* asset, state chartered savings bank headquartered in Port Angeles, Washington — First Federal is a Washington state-chartere

  3. Slide 3: Things we set out to do, and did

    Things we set out to do, and did — Hire Great People — Properly Leverage the Balance Sheet — Grow Top Line Revenue — Reduce Efficiency Ratio — Improve Earnings per Share

  4. Slide 4: Things we didn't set out to do, but did

    First Northwest Bancorp Things we didn’t set out to do, but did — Build Diverse Investment Portfolio — Grow Deposits by over 30% — Create a Commercial Bank — Participate in Government Lending Programs (PPP & MSLP) — Increase Mortgage Production by nearly 3x over 2019 — Increase Gain on Sale of mortg

  5. Slide 5: Strategic Goals

    First Northwest Bancorp Strategic Goals 01 Leverage Strategy 02 Human Capital 03 Revenue Growth 04 ‘Digital Channels

  6. Slide 6: Strategic Goal #1: Leverage Strategy

    FirstNorthwest Bancorp Strategic Goal #1 Leverage Strategy al Scale Assets to Improve EPS Improve Balance Sheet and ROAE Mix Investor Presentation Leverage Wholesale Sources

  7. Slide 7: Asset Mix

    First Northwest Bancorp ASSET MIX 4Q 2018 4Q 2019 4Q 2020 Other ‘other ‘Other 32973, 3% 34050, 3% Investor Presentation eens 2021 >

  8. Slide 8: Balance Sheet Leverage

    FirstNorthwest Bancorp BALANCE SHEET LEVERAGE $1,800, $1,600 13.69% $1400 $400 $200 s w2pyno1s mms $1,258,983 memDeposis 940.260 borrowings 3136552 leverage Ratio 13.69% Investor Presentation 13.53% w2psip2019 $1,307,336 $101,545 112930 53% mmmAssets me Deposts mBorrowings —Leverage Ratio 127% 12/31

  9. Slide 9: Wholesale Balances

    First Northwest Bancorp WHOLESALE BALANCES Assets iin aes sane a = Dl seas is Sialic, ikchecnnions, “Rane uabidicien: “ais Funding sae ne vee wine ines wie el saan ‘aan ‘aa Investor Presentation UmPuble/Tal Funds Brokered /CDARS FHLB Borrowings

  10. Slide 10: Strategic Goal #2: Human Capital

    FirstNorthwest Bancorp Strategic Goal #2 Human Capital ? SS *% 3s Hire the best people Empower them Hold them Accountable Reward them

  11. Slide 11: Experienced, but #YOUNG, Management Team

    First Northwest Bancorp Experienced, but #YOUNG, Management Team Matt Deines (age 47) Terry Anderson (age 52) Derek Brown (age 50) Geri Bullard (age 56) Preident and CEO EVP/Chiot Credit Offcer EVP/Chiet HR & Marketing Ofcer VP/Chiat Financial Oficer President & CEO ofthe Bank since August Chie Cred

  12. Slide 12: Management Team Cont.

    First Northwest Bancorp Management Team Cont. Kelly Liske (age 44) EVP /ChiefBenking Officer Chie Banking Officer sine 2013 ‘Over 20 years banking experiance, Including 1 yare wth FF (PCBS Graduate) Investor Presentation Chris Riffle (age 45) EvP/chiet Operating Ofc Corp, Counsel/Corp. Secretary Gen

  13. Slide 13: 2020 Key Hires

    FirstNorthwest Bancorp 2020 Key Hires Geri Bullard EVP/Chat Banking OFicer Experienced CFO/ formar Regulator Andy Pohiman & ‘SVP/Regional Market President ache - Banking leader from W. Washington WA 18+ bank Randy Riffle EVP/Chief Lending Ofer Commercial eader/former Chief Crest Offene Stephanie Nic

  14. Slide 14: Strategic Goal #3: Revenue Growth

    FirstNorthwest Bancorp Strategic Goal #3 Revenue Growth ? Net Interest Income Mortgage Revenue Debit Card Interchange 8 5) Bank Owned Life Insurance Commercial Banking Investor Presentation

  15. Slide 15: Building Revenue

    First Northwest Bancorp BUILDING REVENUE 7900 6.000 5000 2,000 oan Swap Program Fees Investor Presentation Interchange income Mortgage Revenue fmsa208 #402019 m4022020 5000 42,000 38,000 36,000 32,000, Net interest Margin

  16. Slide 16: Strategic Goal #4: Digital Channels

    FirstNorthwest Bancorp Strategic Goal #4 Digital Channels Deposit Account Opening (Terafina) ‘Small Business Lending (Sageworks) Investor Presentation Mortgage Production (Blend/Ellie Mae) Digital Consumer Lending (Meridian tink) Digital Marketing Program (Salesforce)

  17. Slide 17: Financial Highlights

    FirstNorthwest Bancorp 4Q 2020 Financial Highlights — Fourth quarter net income totaled $3.8 million, compared to $3.7 millionin the preceding quarter and $2.2 million in the year ago quarter. Diluted earnings per share was $0.41, up from $0.40 per share in the preceding quarter and up from $0.23 co

  18. Slide 18: Loan Mix

    FirstNorthwest Bancorp LOAN MIX Commercial Now RE Const & Land ad aa7% 4Q 2019 Gross Loans: $888,568 Multifamily Investor Presentation ren Commercial Nom RE const Land 875% consumer 1030% 00% Consumer 25.76% 4Q 2020 Gross Loans: $1,159,569 et Resdenti 2535% Home Equity 206% Multifamily

  19. Slide 19: Deposit Portfolio Mix

    FirstNorthwest Bancorp DEPOSIT PORTFOLIO MIX 4Q 2019 4Q 2020 Non-Int Checking. $160,420 0.00% $274,930 Int Checking 116,076 12% 0.07% 156,240 12% 0.01% Savings 168,983 17% 0.91% 164,434 12% 0.14% Money Market 248,086 25% 0.55% 429,143 32% 0.31% Retail CDs 256,473 26% 1.94% 219,208 16% 1.17% Brokered

  20. Slide 20: Net Interest Income and Margin

    First Northwest Bancorp NET INTEREST INCOME AND MARGIN 311500 $10,500 $7500 $6,500 02018 102019, 202013 302019 402019 102020 Sin thousands sme interest ncome Net interest Margin Investor Presentation 202020 302020 402020 340% 330% 320% 310% 290%

  21. Slide 21: Return on Assets and Return on Equity

    FirstNorthwest Bancorp RETURN ON ASSETS AND RETURN ON EQUITY Return on Avg. Assets Return on Avg. Equity 120% 3.00% eam | 852% 090% 2.00% 1.00% py 700% oan 7% 600% s5% 08% ‘ 068% 0.65% soon 22% gery 477% 430% _ 060% 056% 4.00% 040% 00% 027% — 190% 0.20% 1.00% 2.00% 0.00% 4ais 1019 2019 3019 40191020

  22. Slide 22: Capital Metrics

    FirstNorthwest Bancorp CAPITAL METRICS 180 18.00 $1750 $1700 1650 1600 1550 1500 siaso Tangible Book Value Per Share $1820 31748 $1707 $16.48 J J saz019 1202020209 3020%0 © 40.2020 Investor Presentation 150% 180% 130% 320% 10% 90% Tangible Common Equity Ratio as 139% 126% 119% i : 4a2019 10700-20202

  23. Slide 23: Market Footprint

    First Northwest Bancorp Market Footprint 13 locations: — 6 Branchesin Clallamand Jefferson Counties — 2Branchesin Kitsap County — 2.Branchesin Whatcom County — 1 Lending Center in King County © Branches 0 HTM © Lending Center

  24. Slide 24: Thank you

    ‘S First Northwest Bancorp Thank you Contact Matt Deines Geri Bullard President and CEO eve/er0 serbullard@ourtsted.com ‘S First Federal

First Northwest Bancorp — Q4 2020 Earnings Presentation on 6ix