First Northwest Bancorp · NASDAQ:FNWB
First Northwest Bancorp — Q4 2022 Earnings Presentation
26 slides from First Northwest Bancorp's earnings presentation, Feb 1, 2023
Slide 1: First Northwest Bancorp Fourth Quarter 2022
& First Northwest Bancorp Fourth Quarter 2022 January 2023
Slide 2: About First Northwest Bancorp (FNWB)
S First Northwest Bancorp About First Northwest Bancorp (FNWB) FNWB N°1 Deposit Market Share in Clallam and Jefferson Counties © 2022 FW Bank holding company for First Fed, a growing community bank with $2 billion* in assets First Fed is a Washington state-chartered commercial bank, headquartered in
Slide 3: Mission Statement
‘> 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. Mission Statement exon rwve Sj y/
Slide 4: First Fed Executive Team
°S First Northwest Bancorp First Fed Executive Team Matt Deines Terry Anderson Derek Brown Presidentand CEO Chietceaitoticer Chief & Marketing Officer Geri Bullard Chris Neros Chris Rifle Chief Digital Operating Chief nancial Officer ChiefLending oficer ese officer | Generalcounsel © 2022 NWS
Slide 5: Quin Ventures joint venture termination
°S First Northwest Bancorp = In 2021, FNWB entered into a joint venture with another company and formed Quin Ventures, Inc. (“Quin”) ~a financial technology company focused on providing financial wellness tools to consumers. = In 2022, FNWB made the difficult decision to terminate its interest in Qu
Slide 6: Success Stories
°S First Northwest Bancorp Success Stories ® Converted from Bank Holding Company to Financial Holding Company Charter ® Invested in Meriwether Group and Meriwether Group Capital Hero Fund M MERIWETHER M MERIWETHER W GROUP W GROUP A a capiTAL ® Hired new Chief Lending Officer, Chris Neros, from compe
Slide 7: Meriwether Partnership
°S First Northwest Bancorp Meriwether Partnership = Completed strategic partnership investment for 33% of Meriwether Group (“MWG"), a Portland, Oregon based advisory and boutique investment banking firm "= MWG is run by founder, David Howitt, and works with authentic, disruptive, and iconic brands i
Slide 8: First Fed Fintech Partners (F3P)
'S First Northwest Bancorp First Fed Fintech Partners (F3P) Built on a robust Baas platform focused on regulatory, compliance and risk management, engineered to facilitate Fintech engagement, product development and financial success * Managed and operated by a highly qualified and talented team of
Slide 9: Selected Balance Sheet Detail
°S First Northwest Bancorp Selected Balance Sheet Detail ($ in Millions) $1,921 kcal $158 $1,259 $1,307 $1,33¢ $1,350, saa 2019 ey 20a 20m eaten Tot nes Loans Receivable, Net Soucy ts Fini elec 202
Slide 10: Substantial Growth While Enhancing Asset Mix
°S First Northwest Bancorp Substantial Growth While Enhancing Asset Mix ($ in Thousands) other con (1a sagas) =/@ 2021 Total Assets: Total Assets: $1,654M $1,921M ©2022 FNWe Source comuny sonic elec 3.202 10
Slide 11: Securities Portfolio
°S First Northwest Bancorp Securities Portfolio Other Investment Portfolio Characteristics as of 1% December 31, 2022 * Book Value: $375.2 Million * Market Value: $326.6 Million * Effective Duration: 5.08 years * Average Life: 8.23 years * Municipal Securities — Portfolio Ratings: "= Aaa/AMA $21.0 =
Slide 12: Building Revenue
°S First Northwest Bancorp Building Revenue 6 in thousands) ce Total Operating aaa $69,863 $2,227 amo Revenue: $59.8M_ s A $6,570 om heute $6235 nan — sus etincerest neces = nn ee » a Total Operating more Revenue: $73.9M_ $1891 Netinterest, ioe gpm, Total Operating 2 Revenue: $80.2M_ por mr a a Re ©
Slide 13: Measurable Improved Profitability
°S First Northwest Bancorp Measurable Improved Profitability Net Income (6 in thousands) ROAA (%) ssa si5ees one arm ites joo $038 $7308 ys aa a Er Efficiency Ratio (%) Net Interest Margin (%) _ S20 gay 8K mis)
Slide 14: Net Interest Income and Margin
°S First Northwest Bancorp Net Interest Income and Margin (S in Thousands) 450% $22,000 4.00% $19,500 353% sel bsszied 3.53% $18,927 3.40% 350% 17,000 3.00% $15,352 $14,500 $18,205, $17,282 $13,483 $13,648 250% a || |_| I I i 42m — i201. © azzm@1=— 2021421 = ai.2022,» 22022, 3.20228 2022 (mE Net int
Slide 15: Balance Sheet Growth
“S First Northwest Bancorp: Balance Sheet Growth ($ in Millions) Total Assets Ill Actual (Ex. PPP) i Ppp Loans Total Loans and Leases cAGR 12.9% ee suase $1207 cAGR' 15.4% sis EE Mis soa eee sore Total Deposits Total Equity TR toons Jeno jum Uses sim a7 3136 $130 fe somo $1002 re ee ee es 2018 2019
Slide 16: Strong Core Deposit Composition
°S First Northwest Bancorp Strong Core Deposit Composition Brokered CDs % Deposits by Type Bp ‘Change from (GinTrousnd) Balance _% of Total __prioryear ca Noninterest Checking $315,082 «20.1% ($2852) Gaiey Interest Checking 193559 24% (3,408) pst Savings 20s1 128% 6301 Money Market 473009 30.2% (124
Slide 17: Loan Portfolio Composition
Northwest Bancorp Loan Portfolio Composition commends! Loansby Type wapayeon hangs rom (Sas Balance of Tota 12/3/2021 12/31/2024 Conmercl este $380285—-52K_—«S5IS_—«SISES 14Famiy 33819 22% 48520 85,288 ConstrucionandlandDevdopment 184644 126% (27,770) 228 Malay 253560 164% = $3102——170458 Ato 130 85
Slide 18: Historically Strong Asset Quality
°S First Northwest Bancorp Historically Strong Asset Quality NPA / Assets (%) Loan Loss Reserve / Total Loans (%) oar soa cas (FP) as, 04s eri 202206 1.05% 119 i 109 ne) cote 105 Tonacom NCOs / Avg. Loans (%) "Growth focused on appropriate risk adjusted return loan types * Continued use of enhanced
Slide 19: 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 milion shares of its common stock, or 10% of the outstanding
Slide 20: Bank Level Capital Ratios
°S First Northwest Bancorp Bank Level Capital Ratios TCE /TA Leverage Ratio Tier 1 Capital Ratio Total RBC Ratio rom 750% mary 18708 ©2022 FW Soucy nts Fini elect. 202 2
Slide 21: Building Value with Improved ROAE and EPS Growth
°S First Northwest Bancorp Building Value with Improved ROAE and EPS Growth Return on Avg. Equity Earnings per Share 219% Let su66 sun 53% baad ren is 4.09% sa 218 2019 2020 2001 202 2o1s 2019, 2020 2021 222 Historical Book Value per Share Historical TCE Ratio sug $1889 sisaz S164 $16.3 13.69% 2018
Slide 22: Consolidated Historical Balance Sheet
\\ SA Northwest Bancorp Consolidated Historical Balance Sheet © 2022 FNwe Fer the Quarter Ecing FC5T0 7 1 SD assets $000) (ash and Gah ave Tsois sas arya Invesomens su2 37760 s34et 29.8668 Federal Home oon Bank FHL) Sto, at Cost 5.196 2 ioa02 11.961 11.681 ‘etal Cash & Secures W508 AECL rots oan bef
Slide 23: Consolidated Historical Income Statement
SA Northwest Bancorp For the Quate nding . ag aera pe — Consolidated "2:2. Historical ‘Other Interest income 36 30 165 260 363 a) 7 Income eth oe er a SS rin a os) a Statement —— = = = = = Se tet casas ee = er rs es sepals aa am, a rT —— a Ss ———E NRT Fo TT EE ——— mE TTS ‘cnet 2 \\ © 2022 eNwe
Slide 24: Market Footprint
°S First Northwest Bancorp Market Footprint 16 locations in 5 counties: 7 in Clallam: Headquarters with ITM, 5 branches, 1 business center with ITM. Lin Jefferson 2 in Kitsap 2 in King: 1 branch, 1 business center 4 in Whatcom: 3 branches, 1 business center ©2022 FNwe
Slide 25: Leading Deposit Market Share
°S First Northwest Bancorp Leading Deposit Market Share Clallam County, WA Whatcom County, WA Rate 6) Tends been a) nana arenes ee eee aS - = SS See se a 3 imtpindme 0) 2 2 as jn Reenter a a a tee seers bt Bi oe rn aor a a 5 mrt eA : i a cee i EA 6 Usemcnt 2 a a ‘ a 6 weet) 2 o a a > wmngen ttn 5 “
Slide 26: Thank You! Contact
s ‘S First Northwest Bancorp First Fed Thank You! Contact Matt Deines Geri Bullard President and CEO EvP | CFO
First Northwest Bancorp — Q4 2022 Earnings Presentation on 6ix