First Northwest Bancorp · NASDAQ:FNWB
First Northwest Bancorp — Q1 2025 Earnings Presentation
27 slides from First Northwest Bancorp's earnings presentation, May 2025
Slide 1: Investor Presentation 2025 First Quarter
Investor Presentation 2025 First Quarter May 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: First Quarter 2025 Results
First Quarter 2025 Results Loan charge-offs totaled $7.7 million, primarily due to underlying collateral deficiencies Recorded $5.8 million legal reserve in connection with the legal matter discussed in Part II, Item 1 of the Company’s Form 10-Q for the quarter Classified loans decreased $10.9 milli
Slide 4: 2025 First Quarter Financial Summary
2025 First Quarter Financial Summary • Adjusted PPNR* of $1.5 million increased $39,000 compared to $1.4 PPNR* million LQ and increased $307,000 from $1.2 million in the PYQ • Growth in Adjusted PPNR driven by modest margin expansion • Loans decreased by $37.6 million or 2.2% during the quarter; pri
Slide 5: First Quarter 2025 GAAP Results
First Quarter 2025 GAAP Results Selected Financial Data ($ in thousands, except for per share data) Q1 2025 Q4 2024 Q3 2024 Q2 2024 Q1 2024 Q4 2023 Q3 2023 Q2 2023 Q1 2023 Net Interest Income $ 13,847 $ 14,137 $ 14,020 $ 14,234 $ 13,929 $ 14,195 $ 14,950 $ 15,982 $ 16,305 Provision for Credit Losses
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 first quarter 2025 ratios (as a percentage of risk-based capital) 1 30% construction 362% CRE Liquidi
Slide 7: 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 $417.7 million of time deposits repricing in next 9 months • $346.8 million of customer time deposits are repricing at an averag
Slide 8: Credit Trends – Risk Ratings
Credit Trends – Risk Ratings Loans by Risk Rating Q1 2025 Q4 2024 Q3 2024 Q2 2024 Q1 2024 ($ in Thousands) Balance % of Total Balance % of Total Balance % of Total Balance % of Total Balance % of Total Pass (Grades 1-3) $1,545,909 90.33% $1,574,647 92.73% $1,594,156 91.89% $1,582,848 93.34% $1,594,2
Slide 9: Classified Asset Trend
Classified Asset Trend Amortized Cost of Classified Assets ($ in Thousands) Q1 2025 Q4 2024 Q3 2024 Q2 2024 Q1 2024 Relationship 1 $ 8,120 $ 11,384 $ 11,187 $ 11,187 $ 14,437 Relationship 2 7,150 8,150 8,177 8,099 - Relationship 3 6,695 6,402 6,439 - - Relationship 4 - 6,197 6,228 9,134 9,268 Relati
Slide 10: Credit Quality – Classified Asset Summary
Credit Quality – Classified Asset Summary Classified Assets Schedule as of March 31, 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 • Townhome project
Slide 11: 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 12: 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 13: First Fed Executive Team
First Fed Executive Team Matt Deines Geri Bullard David Edelstein Kyle Henderson President and CEO Chief Operating Officer Chief Innovation Officer Chief Credit Officer Geri Bullard Chief Operating Officer Chris Neros Phyllis Nomura Chris Riffle Chief Banking Officer Chief Financial Officer Chief St
Slide 14: Thank You!
Thank You! Contact Matt Deines Phyllis Nomura President and CEO EVP | CFO matt.deines@ourfirstfed.com phyllis.nomura@ourfirstfed.com 14 14
Slide 15: Appendix
& First Northwest Bancorp S First Fed Appendix ‘& First Northwest Bancorp 15
Slide 16: 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 March 31, 2025 NASDAQ ticker symbol First Fed is a Washington state-chartered commercial bank, headquartered in Port Angeles where it was founded in 1923 12
Slide 17: Securities Portfolio
Securities Portfolio Investment Portfolio Characteristics as of: Q1 2025 Q1 2024 Book Value $348.2 million $365.0 million Market Value $315.4 million $325.9 million Effective Duration 4.3 years 4.4 years Average Life 6.9 years 7.8 years Portfolio Yield 4.6% 4.8% Non-agency CMBS 15.5% 20.2% Unrealize
Slide 18: Loan Portfolio Composition
Loan Portfolio Composition Loans by Type Change from ($ in Thousands) Q1 2025 % of Total Q1 2024 Q1 2024 Commercial Real Estate $387,902 23.4% $1,711 $386,191 1-4 Family 394,744 23.8% 10,479 384,265 Construction and Land Development 65,193 3.9% (60,667) 125,860 Multi-Family 339,423 20.5% (1,161) 340
Slide 19: Core Deposit Composition
Core Deposit Composition Deposits by Type Q1 2025 Change from ($ in Thousands) Balance % of Total one year ago Noninterest Checking $247,889 14.9% ($4,872) Interest Checking 169,912 10.2% (817) Savings 235,188 14.1% (1,362) Money Market 424,469 25.5% 28,990 Certificate of Deposit 450,663 27.0% 31,75
Slide 20: Net Interest Income and Margin
Net Interest Income and Margin ($ in Thousands) 20
Slide 21: 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 (%) 21
Slide 22: 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 on page 27 22
Slide 23: 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 23
Slide 24: 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 on page 27 2 - Current Period ca
Slide 25: 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 ($M) Franchise Branches (%) Clallam 1 8 1,196 42.0% 69.7% Jefferson 2 1 185 21.2% 10.8% Emerging Puget Sound Banking Markets Number Deposit Ma
Slide 26: Leading Deposit Market Share
Leading Deposit Market Share Clallam County, WA Whatcom County, WA Rank Institution (ST) # Branches Deposits ($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 27: Non-GAAP Reconciliations
Non-GAAP Reconciliations Equity/Total Assets and Tangible CE/Tangible Assets Bank Equity/Total Assets and Tangible CE/Tangible Assets 2024 Q1 2024 Q2 2024 Q3 2024 Q4 2025 Q1 2024 Q1 2024 Q2 2024 Q3 2024 Q4 2025 Q1 (Dollars in thousands) (Dollars in thousands) Total shareholders' equity $ 160,506 $ 1
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