First Northwest Bancorp · NASDAQ:FNWB
First Northwest Bancorp — Q2 2026 Earnings Presentation
20 slides from First Northwest Bancorp's earnings presentation, July 2026
Slide 1: Investor Deck: Second Quarter Earnings & Strategic Update
Investor Deck 2026 Second Quarter Earnings & Strategic Update July 2026 © 2026 First Fed
Slide 2: Forward Looking Statement
Forward Looking Statement This investor presentation contains 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 environment in which we operate, projectio
Slide 3: Deeply Rooted Puget Sound Banking Franchise
Deeply Rooted Puget Sound Banking Franchise First Northwest at a Glance Established Presence in Our Legacy Markets 1 Deposit Market Number of Deposits in % of County Market $2.1B $1.6B $1.6B Rank Branches Market ($M) Franchise Share (%) Assets Loans Deposits Clallam 2 1 8 1,162 41.2% 70.6% Jefferson
Slide 4: Strategic Pillars: Transform Operations, Funding, and Growth
Strategic Pillars: Transform Operations, Funding, and Growth Process & Data Core Deposit Organic Loan Growth Efficiency Strategy Focus • Enterprise process • Grow relationship- • Relationship-driven mapping based deposits lending • Automation of key • Strengthen operating • Expand commercial workflo
Slide 5: Executing a Disciplined Transformation: 2026 Priorities
Executing a Disciplined Transformation: 2026 Priorities Deliberate actions underway to improve efficiency, reposition the balance sheet, and drive sustainable profitability • Reduce elevated expense base Cost & Efficiency • Renegotiate vendor contracts • Implement automation initiatives to improve b
Slide 6: Second Quarter 2026 Highlights
Second Quarter 2026 Highlights Net interest margin decreased 8 bps from LQ to 2.95% Cost of deposits remained flat with LQ at 2.04% Recorded a $337,000 recapture provision for credit losses on loans compared to a recapture of $13,000 in prior quarter NPAs decreased to 1.05% of assets from 1.08% LQ G
Slide 7: Second Quarter 2026 Results
Second Quarter 2026 Results • Net income of $308,000 for the second quarter of 2026 EPS • Diluted EPS of $0.03 • Gross loans decreased $16.0 million, or 0.98% from LQ Loans • Growth in specialty/Northpointe portfolio mostly offset by further declines in multifamily and residential mortgages • Custom
Slide 8: Second Quarter 2026 Results: Selected Financial Data
Second Quarter 2026 Results Selected Financial Data ($ in thousands, except for per share data) Q1 2026 Q4 2025 Q3 2025 Q2 2025 Q1 2025 Q4 2024 Q3 2024 Q2 2024 Q1 2024 Net Interest Income $ 14,173 $ 14,440 $ 14,690 $ 14,569 $ 14,193 $ 13,847 $ 14,137 $ 14,020 $ 14,234 Provision for Credit Losses (53
Slide 9: Average Deposits & Recent NIM Trends
Average Deposits & Recent NIM Trends ($ in millions) $1,657 $1,636 $1,619 $1,579 $1,580 $244 $251 $248 $241 $238 3.00% $1,414 2.91% 2.83% 3.03% 2.95% $1,384 $1,371 $1,339 $1,342 2.31% 2.20% 2.12% 2.04% 2.04% Q2 2025 Q3 2025 Q4 2025 Q1 2026 Q2 2026 Average Interest Bearing Average Non-Interest Bearin
Slide 10: 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 $275.3 million of time deposits repricing in the next 6 months • $267.8 million of customer time deposits are repricing at an av
Slide 11: Loan Portfolio Composition
Loan Portfolio Composition Total Loans and Average Yield Loan Trends • Loan production was increased, as new fundings increased to $30.2 million from $16.5 million in 1Q26 • Draws on existing loans totaled $20.4 million compared to $22.7 million in 1Q26 • Participation in the Northpointe Mortgage Pu
Slide 12: Core Deposit Composition
Core Deposit Composition Total Deposits and Average Cost Deposit Trends • Total deposits were little changed at $1.60 billion • Customer deposits increased $11.3 million, or 0.74%, while brokered CDs continued to decline, with balances decreasing $5.5 million • The average cost of customer interest-
Slide 13: Credit Trends – Risk Ratings
Credit Trends – Risk Ratings Loans by Risk Rating Q2 2026 % of Q1 2026 % of Q4 2025 % of Q3 2025 % of Q2 2025 % of ($ in Millions) Balance Total Balance Total Balance Total Balance Total Balance Total Pass (Grades 1-3) $1,444.9 90% $1,450.0 89% $1,454.0 89% $1,496.7 92% $1,555.3 93% Watch (Grade 4)
Slide 14: Credit Trends – Allowance for Credit Losses
Credit Trends – Allowance for Credit Losses The reserve rate declined 2 basis points sequentially to 1.01% as of June 30, 2026. The Company recorded a $337,000 recapture of provision expense, reflecting a $444,000 decrease in the pooled loan reserve and a $70,000 decrease in reserves on individually
Slide 15: Classified Assets Trend Lower
Classified Assets Trend Lower Amortized Cost of Classified Assets ($ in Thousands) Q2 2026 Q1 2026 Q4 2025 Q3 2025 Q2 2025 CRE – Office $ 6,044 $ 6,158 $ 6,306 $ 6,656 $ 6,676 CRE – Multifamily Spokane 4,704 - - - - CRE – Condo 4,160 4,160 5,139 6,029 8,120 CRE – Gas Station 3,367 3,435 3,435 3,435
Slide 16: Credit Quality Classified Asset Summary
Credit Quality Classified Asset Summary Classified Assets Schedule as of June 30, 2026 ($ in Thousands) Amortized % Total Cost Assets Status • Office Building in Fremont, WA CRE – Office $ 6,044 0.28% • Master lease signed for entire space • Multifamily housing in Spokane, WA CRE – Multifamily Spoka
Slide 17: Strong Capital and Liquidity Positions
Strong Capital and Liquidity Positions Capital and Liquidity Ratios Bank (1) 9.6% leverage capital 12.4% CET1 capital 13.4% total risk-based capital 8.5% TCE/TA (2) Company 14.9% primary liquidity 37.7% total liquidity Cash & Borrowings Combined $800 million cash and available borrowin
Slide 18: Bank Level Capital Ratios
Bank Level Capital Ratios Equity/Total Assets, Tangible CE/Tangible Assets 1 Leverage Ratio (as reported on FFIEC Form 051) Tier 1 Capital Ratio (as reported on FFIEC Form 051) Total RBC Ratio (as reported on FFIEC Form 051) 1 - Non-GAAP reconciliation provided at the end of this presentation 18 © 2
Slide 19: First Fed Executive Team
First Fed Executive Team Curt Queyrouze David Edelstein Jennifer Gribble Kyle Henderson President and CEO Chief Innovation Officer Chief People Officer Chief Credit Officer Allison Mahaney Phyllis Nomura Chris Walsh Chief Legal Officer Chief Fianancial Officer Chief Banking Officer ‘S First Northwes
Slide 20: Non-GAAP Reconciliations
Non-GAAP Reconciliations Equity/Total Assets and Tangible CE/Tangible Assets Bank Equity/Total Assets and Tangible CE/Tangible Assets 2025 Q2 2025 Q3 2025 Q4 2026 Q1 2026 Q2 2025 Q2 2025 Q3 2025 Q4 2026 Q1 2026 Q2 (Dollars in thousands) (Dollars in thousands) Total shareholders' equity $ 149,733 $ 1
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