First Northwest Bancorp · NASDAQ:FNWB

First Northwest Bancorp — Q1 2022 Earnings Presentation

24 slides from First Northwest Bancorp's earnings presentation, April 2022

  1. Slide 1: Investor Presentation First Quarter 2022

    Investor Presentation First Quarter 2022 April 2022 © 2022 FNWB 1

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

     Bank holding company for First Fed, a growing About First Northwest community bank with $1.9 billion* in assets Bancorp (FNWB)  First Fed is a Washington state-chartered commercial bank, headquartered in Port Angeles where it was founded in 1923 FNWB  12 branches: 6 in Clallam and Jefferson Coun

  3. Slide 3: First Fed Executive Team

    First Fed Executive Team Matt Deines Terry Anderson Derek Brown Geri Bullard President and CEO Chief Credit Officer Chief HR & Marketing Officer Chief Financial Officer Kelly Liske Chris Neros Chris Riffle Chief Banking Officer Chief Lending Officer Chief Digital & Operating Officer | General Counse

  4. Slide 4: First Fed Strategic Initiatives

    First Fed Strategic Initiatives  Primary focus on non-interest income drivers including Treasury Management, Small Business Administration Lending and Interest Rate Swap Program  Recently hired new Chief Lending Officer, Chris Neros, from competitor in Whatcom County  Lending focus is on maintain

  5. Slide 5: First Fed Fintech Partners (F3P)

    First Fed Fintech Partners (F3P)  Recently formed division of the Bank, led by Chief Digital Officer, Chris Riffle  Onboarding Staff with extensive background in credit modeling, compliance and regulatory matters, project management, partnerships and integrations  Experience includes employment a

  6. Slide 6: Selected Balance Sheet Detail

    Selected Balance Sheet Detail ($ in Millions) © 2022 FNWB Source: Company documents; Financial data as of March 31, 2022 6

  7. Slide 7: Substantial Growth While Enhancing Asset Mix

    Substantial Growth While Enhancing Asset Mix ($ in Thousands) Other BOLI Other BOLI Cash $48,492 $38,596 Cash $73,899 $39,570 $99,271 3% 2% $82,527 4% 2% 6% 4% Investments Investments $377,696 $393,495 19% 23% Q1 2020 Q1 2021 Q1 2022 Total Assets: Total Assets: $1,397M $1,736M $1,944M Loans Receivab

  8. Slide 8: Securities Portfolio

    Securities Portfolio Investment Portfolio Characteristics as of Other 2% March 31, 2022  Book Value: $394.6 Million Corporate Debt  Market Value: $377.7 Million 16% Municipal 29%  Effective Duration: 5.04 years Q1 2022  Average Life: 6.96 years Yield  Municipal Securities – Portfolio Ratings: 2

  9. Slide 9: Building Revenue (TTM)

    Building Revenue (TTM) Net Interest Income Non-Interest Income ($ in Thousands) 80.2% 19.8% TTM Total Q1 2020 Operating Revenue: 2020 Q1 $7,540 $45.8M 2021 Q1 $60,300 2022 Q1 $48,034 $5,543 Net Interest Non-Interest Income Income 83.3% 16.7% $37,672 TTM Total Q1 2021 Operating Revenue: $64.3M $1,519

  10. Slide 10: Measurable Improved Profitability

    Measurable Improved Profitability Trailing Twelve Month Net Income ($ in Thousands) Trailing Twelve Month ROAA (%) Trailing Twelve Month Efficiency Ratio (%) Trailing Twelve Month Net Interest Margin (%) 3.48% 3.33% 3.19% 3.19% 3.15% 2018 Q1 2019 Q1 2020 Q1 2021 Q1 2022 Q1 © 2022 FNWB Source: S&P Gl

  11. Slide 11: Net Interest Income and Margin

    Net Interest Income and Margin ($ in Thousands) $20,000 3.58% 3.58% 3.65% 3.53% 3.53% 3.44% 3.34% 3.45% $17,500 3.34% $15,814 $15,486 $15,352 3.25% $15,000 3.12% 3.09% $13,483 $13,648 $12,677 3.05% $12,500 $11,760 2.85% $10,114 $10,000 $9,407 2.65% $7,500 2.45% $5,000 2.25% Q1 2020 Q2 2020 Q3 2020 Q

  12. Slide 12: Balance Sheet Growth

    Balance Sheet Growth Actual (Ex. PPP) PPP Loans ($ in Millions) Total Assets Total Loans and Leases CAGR¹: 13.1% $1,371 $1,944 CAGR¹: 14.4% $1,736 $1,156 $7 $1,397 $7 $883 $899 $1,190 $1,279 $48 $799 $48 Q1 2018 Q1 2019 Q1 2020 Q1 2021 Q1 2022 Q1 2018 Q1 2019 Q1 2020 Q1 2021 Q1 2022 Total Deposits T

  13. Slide 13: Strong Core Deposit Composition

    Strong Core Deposit Composition Brokered CDs 4% Deposits by Type 3/31/2021 Change from Change from ($ in Thousands) Balance % of Total Prior Quarter Prior Year Certificate of Noninterest Noninterest Checking $ 326,292 21.1% $ (17,642) $ 30,060 Deposit Checking Interest Checking 205,166 13.2% 8,199 3

  14. Slide 14: Loan Portfolio Composition

    Loan Portfolio Composition C&I Loans by Type 3/31/2022 Change from Change from 4% ($ in Thousands) Balance % of Total Prior Quarter Prior Year Commercial Real Estate $ 370,346 26.7% $ 7,047 $ 73,520 Other 1-4 Family 291,053 21.0% (3,912) (4,778) Consumer 9% Construction and Land Development 209,395

  15. Slide 15: Historically Strong Asset Quality

    Historically Strong Asset Quality NPA / Assets (%) Loan Loss Reserve / Total Loans (%) 0.50 ALLL/Total Loans (Ex. PPP) 1.20 1.20 0.41 2022 Q1: 1.11% 0.20 1.10 1.10 1.08 Texas Ratio 0.10 2022 Q1: 0.57% 0.06 2018 Q1 2019 Q1 2020 Q1 2021 Q1 2022 Q1 2018 Q1 2019 Q1 2020 Q1 2021 Q1 2022 Q1 NCOs / Avg. Lo

  16. Slide 16: Returning Capital to Shareholders

    Returning Capital to Shareholders Status of Share Repurchase Program  On October 28, 2020, the Company announced that its Board of Directors had authorized the repurchase and retirement of up to an additional ~1 million shares of its common stock, or 10% of the outstanding shares at that time  As

  17. Slide 17: Bank Level Capital Ratios

    Bank Level Capital Ratios TCE / TA Leverage Ratio 12.08% 12.18% 11.16% 10.54% 10.21% 11.75% 9.61% 11.44% 11.18% 10.61% 2018 Q1 2019 Q1 2020 Q1 2021 Q1 2022 Q1 2018 Q1 2019 Q1 2020 Q1 2021 Q1 2022 Q1 Tier 1 Capital Ratio Total RBC Ratio 18.44% 16.87% 16.82% 15.13% 19.61% 18.04% 18.06% 13.10% 16.34% 1

  18. Slide 18: Building Value with Improved ROAE and EPS Growth

    Building Value with Improved ROAE and EPS Growth Trailing Twelve Month Return on Avg. Equity Trailing Twelve Month Earnings per Share 7.99% $1.63 6.99% $1.36 4.52% 4.33% $0.77 $0.78 2.43% $0.40 2018 Q1 2019 Q1 2020 Q1 2021 Q1 2022 Q1 2018 Q1 2019 Q1 2020 Q1 2021 Q1 2022 Q1 Historical Book Value per

  19. Slide 19: Consolidated Historical Balance Sheet

    For the Quarter Ending 2021Q1 2021Q2 2021Q3 2021Q4 2022Q1 Assets ($000) Cash and Cash Equivalents 99,271 80,722 76,120 126,016 82,527 Consolidated Investments Federal Home Loan Bank (FHLB) Stock, at Cost 393,495 3,997 370,500 5,597 325,890 4,397 344,212 5,196 377,696 8,122 Total Cash & Securities 49

  20. Slide 20: Consolidated Historical Income Statement

    For the Quarter Ending 2021Q1 2021Q2 2021Q3 2021Q4 2022Q1 Income ($000) Interest and Fees on Loans Receivable 12,541 12,866 14,581 15,041 14,536 Consolidated Interest on Investment Securities Other Interest Income 2,034 58 2,124 61 2,138 59 2,073 96 2,275 90 Historical Interest Income Interest Expen

  21. Slide 21: First Fed Mission Statement

    We design and deliver delightful, accessible, and effortless financial solutions by empowering our team members to improve the lives of those we serve. First Fed Mission Statement © 2022 FNWB 21

  22. Slide 22: Market Footprint

    Market Footprint 12 branch locations:  5 in Clallam County  1 in Jefferson County  2 in Kitsap County  1 in King County  3 in Whatcom County Business Center © 2022 FNWB 22

  23. Slide 23: 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) 7 1,012 38.7 1 Peoples Bancorp (WA) 9 1,352 24.3 2 Sound Financial Bancorp

  24. Slide 24: Thank You!

    Thank You! Contact Matt Deines Geri Bullard President and CEO EVP | CFO matt.deines@ourfirstfed.com geri.bullard@ourfirstfed.com © 2022 FNWB 24

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