First Northwest Bancorp · NASDAQ:FNWB
First Northwest Bancorp — Q4 2024 Earnings Presentation
28 slides from First Northwest Bancorp's earnings presentation, Jan 29, 2025
Slide 1: Investor Presentation: 2024 Fourth Quarter and Year End
& First Northwest Bancorp Investor Presentation 2024 Fourth Quarter and Year End January 2025
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 transactions discus
Slide 3: Positioning for 2025
Positioning for 2025 * Successful interest rate hedge, tied to SOFR index, added $1.1 million to 2024 earnings and maintains positive carry for additional 25 bps of rate cuts * Sold $23.2 million of lower yielding securities, resulting in a $2.1 million loss * Surrendered Bank-owned life insurance a
Slide 4: Fourth Quarter 2024 Results
Fourth Quarter 2024 Results Reported net interest margin of 2.73% an increase of 2 bps from last quarter primarily driven by reductions in funding costs of certificate of deposits Increased AFS investments by $29.5 million in the fourth quarter of 2024 — strategic positioning of the balance sheet fo
Slide 5: 2024 Year End Financial Summary
2024 Year End Financial Summary PPNR* Loans Deposits Capital * Non-GAAP reconcilition provided on page 28 PPNR* of $8.9 million, an increase of $4.7 million over the prior year, primarily related to the sale-leaseback transaction gain of $7.6 million and a decrease in noninterest expenses of $1.5 mi
Slide 6: Fourth Quarter 2024 GAAP Results
Fourth Quarter 2024 GAAP Results ‘Selected Financial Data (Sin thousands, except for per share data) 042024 Q32024 022024 gi 2024 42023932023 Q22023 Qi 2023 Net Interest Income $ 14137 $ 14,02 $ 14,234 $ 13,929 § 14195 $ 14,950 $ 15,982 $ 16,305 Provision for Credit Losses 3,655 3,134 8,739 970 1,15
Slide 7: Securities Portfolio
Securities Portfolio Q4 2024 Yield 4.64% Investment Portfolio Characteristics as of: 42024 42023 Book Value $376.3 million $333.9 million Market Value $340.3 million $295.6 million Effective Duration 3.9 years 4B years Average Life 6.9 years 727 years Portfolio Yield 464% 453% Non-agency CMS 28.68%
Slide 8: Loan Portfolio Composition
Loan Portfolio Composition Loans by Type ‘Grange from fnmowned 042024 SofTorl 082023042023 ‘Commercial Real Exe ssa) 4% (54,867) $393168 14Fomily BIe71 3K 168378778, ‘Construction and Land Development 7328 4.6% (54,765) 130.193 Mute-Family ame 17% 3477 330135, Other futo m9 76% 120 127,699) Concurer
Slide 9: Credit Trends — Risk Ratings
Credit Trends — Risk Ratings Loans by Risk Rating (04 2028 032028 022024 ‘a1 2028 042023 (sinthousance) Balance %ofTotal_ Bane Sof Total __Balance kof Total _—Bolance_%6ofTotal Balance _% of Total Pass (Grades £3) 34566177 92.35% $1504156 9189 51582008 9221% SIs04204 93.15% $1,549,910 92.47% ‘Watch
Slide 10: Classified Asset Trend
Classified Asset Trend ‘Amortized Cost of Classified Assets (6 in Thousands) Q4 2024 93 2024 92.2024 Qi 2024 24 2023 Relati $ 11,384 $ 11,187 $ 11,187 $ 14,437 $ 14,981 Relationship 2 8,150 8177 8,099 = " Rel 6,402 6,439 = = = Relationship 4 6,197 6,228 9,134 9,268 9,283 Rel 3,307 3,385 3,458 3,531
Slide 11: Credit Quality — Classified Asset Summary
Credit Quality — Classified Asset Summary Classified Assets Schedule (Sin Thousands) Amortized —% Total Loan Category Gost Assets Status Condo project located in Bellevue, WA Relationship 1. CRE- Condo 11,384 051% — Units are currently listed for sale ‘Townhome project in Seattle, WA Relationship 2.
Slide 12: Core Deposit Composition
Core Deposit Composition Deposits by Type 942024 ‘Change from Brokered CDs | Noninterest ($ in Thousands) Balance _% of Total_one year ago ae Checking Noninterest Checking $256 417 15.2% 54,333 Interest Checking 164,291 9.8% (4,527) Savings 205,055 32.1% (37,093) Money Market 413,822 24.5% SL6IT Cer
Slide 13: Repricing Time Deposits
Repricing Time Deposits Based on current maturities within the portfolio and assuming no further interest rate adjustments in the Fed Funds Rate, there are $580.0 million of time deposits repricing in next 12 months * $426.6 million of customer deposits are repricing at an average rate of ~64 basis
Slide 14: Capital Management
Capital Management Status of Share Repurchase Program Shares Repurchased = The Company has bought back a total of 813,400 3,985,342 shares since 2016 = In April 2024, the Company announced that eset sysese its Board of Directors has authorized the Pe repurchase of 10% , or 944,279, of authorized son
Slide 15: Strategic Focus
Strategic Focus Grow customer deposits with focus on treasury management and digital platforms Expand our loan and deposit production with commercial relationships Target home equity growth with digital channel Continue collection and liquidation efforts for classified asset Grow and maintain capita
Slide 16: Strategic Priorities
Strategic Priorities & First Northwest Bancorp Our mission: To improve the lives of those we serve Reduce credit costs in 2025 Focus on net interest margin and being prepared for interest rate changes Continue to focus on noninterest expense and operating efficiencies Organic loan and deposit growth
Slide 17: First Fed Executive Team
First Fed Executive Team Matt Deines President and CEO Kyle Henderson Chit Credit Officer Geri Bullard David Edelstein Chief Financial Officer & Chief innovation Officer (Chief Operating Officer Chris Neros Chris Riffle Chief Banking Officer (Chit Strategy Officer & General Counsel ‘S First Northwes
Slide 18: About First Northwest Bancorp (FNWB)
About First Northwest Bancorp (FNWB) FNWB NASDAQticker symbol N°1 Deposit Market Share in Clallam and Jefferson Counti Bank holding company for First Fed, a growing community bank with $2.2 billion in assets as of December 31, 2024 First Fed is a Washington state-chartered commercial bank, headquart
Slide 19: Thank You! Contact
‘S First Northwest Bancorp S First Fed Thank You! Contact Matt Deines Geri Bullard President and CEO EVP | CFO and COO matt.deines@ourfirstfed.com geri.bullard@ourfirstfed.com ‘S First Northwest Bancorp 19
Slide 20: Appendix
‘S First Northwest Bancorp S First Fed Appendix ‘S First Northwest Bancorp 20
Slide 21: Net Interest Income and Margin
Net Interest Income and Margin ($ in Thousands) $22,000 $19,500 $17,000 $14,500 $12,000 3.96% $18,931 42022 $16,305 $15,982 14,234 $18185 543,929 [ $14,020 2023 22023032023 «Qs 2023.—«QA2024—az2024 032004 lM Net interest Income ——=Net interest Margin 2.73% $14,137 as2024 450% 4.00% 2.00% ‘S First No
Slide 22: Performance Metrics
Performance Metrics Net Income (Loss) ($ in Thousands) ROAA (%) gisais $15,655 om aK $10,340 0.11% $2,286 030% $6,613 2020 2001 22 203 20 2020 21 2022 103 2004 Efficiency Ratio (%) Net Interest Margin (%) 93.89% ane 3.79% 7% = 33% ane 200 2021 202 2023 2004 2000 2021 222 2023 2028 ‘S First Northwest
Slide 23: Performance Metrics
Performance Metrics Return on Avg. Equity Earnings per Share no 9.08% 5.19% 143% 4.09% 220 ai mn m3 204 Historical Book Value per Share $18.89 $18.19 $16.86 $16.60 $16.58 200 221 202 03 204 + Non-GAAP reconciliation provided on page 28 $1.66 $1.70 $1.10 $0.26 $0.76 2020 rat 202 203 2004 Historical C
Slide 24: Balance Sheet Growth
Balance Sheet Growth ($ in Millions) Total Assets Total Loans and Leases CAGR': 7.8% fry RS CAGR': 10.1% guss.SE843 $675 saga $1,350 $1,654 $1142 20 2 am 2023 204 20 a am 203 2008 Total Deposits Total Equity CAGR!: 6.1% —Loans / Deposits ae sus? $4688 $186 $190 $1334 sa $158 aes $154 m0 mt 222 m3 (0
Slide 25: Bank Level Capital Ratios
Bank Level Capital Ratios Equity/Total Assets, Tangible CE/Tangible Assets * Leverage Ratio (as reported on FFIEC Form 051) 1036%1027% Fractigaiate Equiy/Total Assets TCE/TA | | 829% 822% 05% 7.99% ao 2m 203 2004 2000 Tier 1 Capital Ratio (as reported on FFIEC Form 051) 10.56% 10.28% ad 2000 221 22
Slide 26: Liquidity Overview
Liquidity Overview Liquidity as of December 31, 2024 ($ in thousands) Sequential Total Off Balance Sheet Liquidity Available Quarter Gross Net ‘Three Months Ended change ‘Aveilabilty Utilization Availability (Sinthousands) 42024 03202442024 FHLB Lines ‘$558,027 $350,772 $207,255 Brokered deposits S1
Slide 27: Leading Deposit Market Share
Leading Deposit Market Share Clallam County, WA Whatcom County, WA Rank Institution (ST) ‘Branches Deposits (SM) MarketShare(#) Rank institution (57) ‘Branches Deposits (5M) Market Share (6) 1 FirstNorthwest Bancorp (WA) 5 4196 20 2 Peoples Bancorp (WA) 2 1238 ma 2. scund Financial Bancorp In. (WA)
Slide 28: Non-GAAP Reconciliations
Non-GAAP Reconciliations Historical CE and TCE Ratios Bank Equity/Total Assets and Tangible CE/Tangible Assets arpa oo svcagstelies eqsty «$7 $ ITAD'S Teas —S $5082 S$ SESIS Toplamnolleveuty —$SINS $NA S IN Times 3 DAE Sees uss unm ante iapiant uum ate eae ateciaoomree coer iepeeere ms pees ee east
First Northwest Bancorp — Q4 2024 Earnings Presentation on 6ix