First Northwest Bancorp · NASDAQ:FNWB
First Northwest Bancorp — Investor Presentation (January 2022)
25 slides from First Northwest Bancorp's investor presentation, Jan 27, 2022
Slide 1: First Northwest Bancorp Investor Presentation
& First Northwest Bancorp Investor Presentation
Slide 2: About First Northwest Bancorp (FNWB)
S First Northwest Bancorp About First Northwest = Bank holding company for First Fed, a growing community bank with $1.9 billion* in assets Bancorp (FNWB) = First Fed is a Washington state-chartered commercial bank, headquartered in Port Angeles where it was founded in 1923 FNWB + 12 branches: 6inCl
Slide 3: First Fed Executive Team
irst Northwest Bancorp First Fed Executive Team Matt Deines Terry Anderson Geri Bullard Presidentand £0 Chief credit oticer CChiefFinancial officer Kelly Liske Chris Riffle Derek Brown Chief Banking Officer Chief Operating officer | Chief HR and Marketing General Counsel Officer © 2021 FNWB,
Slide 4: Major Strategic Initiatives
°S First Northwest Bancorp Maj or Strategic Initiatives = Primary focusis on payments Joint Venture launched in early" Focusonleveraging our Deposit Account Opening ing our compliance 2021 charter, credit and compliance (rerafina) capabilities and access to i Version tcf product satt- capabilities a
Slide 5: Selected Balance Sheet Detail
‘S First Northwest Bancorp Selected Balance Sheet Detail ($ in Millions) si6se $1,307 $4 $1,259 pad $1,142 $1,00 1 $780 2017 2018 2019 2020 2021 loans, Net ALLL =Total Deposits = Total Assets Seure:Compuny coer Financ tase nce 2023 s
Slide 6: Substantial Growth While Enhancing Asset Mix
°S First Northwest Bancorp Substantial Growth While Enhancing Asset Mix ($ in Thousands) other ou 534558 $30,027 sam % * “pasate 4! 20% 2019 Total Assets: $1,307M Loans, Net ALLL ‘$878,37 mm © 2021 FNWB, sage al 2020 Total Assets: $1,654M tans, Net ALLL 34,141,969 Cs ‘Sources Company donuts Finan it
Slide 7: Securities Portfolio
‘S First Northwest Bancorp Securities Portfolio Investment Portfolio Characteristics as of US Govt Bonds December 31, 2021 Q4 2021 Book Value: $341.5 Million Market Value $344.2 Million Effective Duration:5.17 years Average Life: 5.72 years zm Vield = Municipal Securities— Portfolio Ratings: 2.68% =
Slide 8: Building Revenue
‘S First Northwest Bancorp Building Revenue ($ in Thousands) = 2019 2020 $59,298 2021 $43,958 $37,865 Net Interest Income © 2021 FNWB, $6,570 biel $5,773 2020 2021 $2,127 $1,763 $1,748 [] [| $1,253, Interchange Income Revenue from Sold Loans Seurces Company dcumets Fans dats Deen 31202, Netinterest
Slide 9: Measurable Improved Profitability
‘S First Northwest Bancorp Measurable Improved Profitability Net Income ($ in Thousands) ROAA (%) 087% $15,418 0.72% 0.72% 0.58% $10,340 sacs 008 0.43% $4,938 2017 2018 2019 2020 2001 2017 2018 2019 202022008 Efficiency Ratio (%) Net Interest Margin (%) 7882% — a6.93% 351% 73.80% moe 3.27% 69.33% na
Slide 10: Net Interest Income and Margin
‘S First Northwest Bancorp Net Interest Income and Margin ($ in Thousands) $16,000 $15,000 $14,000 $13,000 $12,000 ‘$11,000 $10,000 ‘$9,000 $8,000 $7,000 302019 402019 102020202020 302020 © 402020» 142021. © 202021 © 3202142021 Im Net Interest Income, Net interest Margin © 2021 FNWB, Sources S49 abl
Slide 11: Balance Sheet Growth
‘S First Northwest Bancorp Balance Sheet Growth ($ in Millions) Total Assets CAGR’: 13.0% Saese giais $4289 $4,307 on 2017 2018 2019 2020 2021 Total Deposits IB Actual (Ex. PPP) i ppp Loans Total Loans and Leases AGREES @ Loan /Deposit(%) —ga,5e1 $1,334 $940 jens $1,002 2017 2018 2019 2020 2021 © 20
Slide 12: Strong Core Deposit Composition
‘S First Northwest Bancorp Strong Core Deposit Composition noes te ete Deposits by Type 12/31/2021 Change from (Sinthowsands Balance _% of Total prioryear MMDA8 Savings $792,435 50.1% $198,858 Non-Interest Checking 343,932 21.6% 69,002 Interest Checking 196,970 12.5% (33,350) Retail CDs 181,509 11.5
Slide 13: Loan Portfolio Composition
“S First Northwest Bancorp Loan Portfolio Composition Other Consumer Commercial ™ ‘and industrial Q4 2021 \ ap Yield 4.49% PPP 1% Loans by Type 12/31/2021 Change from (Sin thousands Balance _% of Total prioryear ‘Commercial Real Estate $363,299 26.6% $ 66,725 1-4 Family 294,965 21.6% (14,863) Constr
Slide 14: Historically Strong Asset Quality
“S First Northwest Bancorp Historically Strong Asset Quality NPA / Assets (%) ‘Texas Ratio 2021: 0.65% 2017 2018 2019 2020 2021 NCOs / Avg. Loans (%) 0.08 007 0.05 2017 2018 2019 2020 2021 Loan Loss Reserve / Total Loans (%) 1p aa aa 1.08 a6 ALLL/Total Loans (Ex. PPP) 2021: 1.13% 2017 2018 2019 2020
Slide 15: Returning Capital to Shareholders
‘S First Northwest Bancorp 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 outstandin
Slide 16: Bank Level Capital Ratios
‘S First Northwest Bancorp Bank Level Capital Ratios TCE /TA 119% 114% 111% 101% 103% 2017 2018 2019 2020 2021 Tier 1 Capital Ratio Leverage Ratio 180% 70% «17.5% 13am 13.8% 2017 2018 2019 2020 2021 125% 122% pee 103% 10.6% 2017 2018 201920202028 Total RBC Ratio 194% —1g2% 18.7% 146% 14.9% 2017 2018
Slide 17: Building Value with Improved ROAE and EPS Growth
‘S First Northwest Bancorp Building Value with Improved ROAE and EPS Growth Return on Avg. Equity Diluted Earnings per Share 8.19% $1.66 Sa $1.10 toe BBM $i $0.68 Rolled $0.46 2017 2018 2019 2020 2021 2017 2018 2019 2020 2021 Historical Book Value per Share Historical TCE Ratio sieig $19.10 14.56% $
Slide 18: Consolidated Historical Balance Sheet
Si st Northwest Bancorp for the Quarter Ending wae sa 207102 ae Ear 5 assets (S00) Cons: olidated Total Cash and Cash Equivalents 555 Era BOT 76,120 25,016 Avallabltorsae Secures aet296 asus 370500 225890 mana i" : Othersecurties 3577 357 597 2357 5.196 Gross Loans Heldfor investment aasssis amor az
Slide 19: Consolidated Historical Income Statement
\\ st Northwest Bancorp Consolidated Historical Income Statement © 2021 FNWB For the Quarters Ending zom0aa 20240 porg2 207103207104 Income ($000) Interest and feeson oansrecelvable angst sai 12,866 1458 15081 Interest on mortgage-backed and investment securities 2018 2034 2a24 2138 2073 ther intere
Slide 20: First Fed Mission Statement
S First Northwest Bancorp 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
Slide 21: Market Expansion
“S First Northwest Bancorp Market Expansion = Opened first King County branch on July 26, 2021, after the acquisition of the Bellevue, Washington branch of Sterling Bank and Trust of Southfield, Michigan, adding $65.4 million in deposit accounts. = Executed lease to relocate Commercial and Mortgage
Slide 22: Market Footprint
‘S First Northwest Bancorp Market Footprint 12 branch locations: = 5 inClallamCounty = 1inJefferson County = 2inKitsap County = 1inKing County* = 3 in Whatcom County * Bellevue branch and team acquired from Sterling ‘Bank and Truston July 23, 2021. Business Center © 2021 FNWB,
Slide 23: Leading Deposit Market Share
‘S First Northwest Bancorp Leading Deposit Market Share Clallam County, WA Whatcom County, WA ttt Teoh Boo) Me a) Tienes Does Ba oe a Tsien ow (wa) 7 108 387 Peeler A 7 a a 2 tenant AE = 1 a o fy 2) race 2 = = 3 Un mcepoan : i ft + tampntnst 8 2 Ba u tL ameemncmes oni) * mH ro 5) wenn. ea 2 ie e wan
Slide 24: Experienced Leadership Collaborating Across PNW
‘S First Northwest Bancorp Experienced Leadership Collaborating Across PNW = The a TS a a aE OSS Tapoel Soot a = remy anderson cate. he Gea ofa sequtn 3 ae Pee Ree ae 0 = cerita [bectve Phan ter PortArgte Sone is a etiyuste Soe ae 5 a CiRMONaL Ae Saga che opmencothow seats pias r oa cs i ie aeacioe
Slide 25: Thank You!
‘S First Northwest Bancorp Thank You! Contact Matt Deines President and CEO matt.deines@ourfirstfed.com © 2021 FNWB, Geri Bullard EVP | CFO geri.bullard@ourfirstfed.com ‘S First Fed
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