First Northwest Bancorp · NASDAQ:FNWB
First Northwest Bancorp — Investor Presentation (October 2021)
25 slides from First Northwest Bancorp's investor presentation, Oct 28, 2021
Slide 1: First Northwest Bancorp Investor Presentation Third Quarter 2021
& First Northwest Bancorp Investor Presentation Third Quarter 2021 October 2021
Slide 2: About First Northwest Bancorp (FNWB)
‘S First Northwest Bancorp About First Northwest Bancorp (FNWB) FNWB NASDAQ ticker symbol N°1 Deposit Market Share in Clallam and Jefferson Counties 2021 FNWB = Bank holding company for First Fed, a growing community bank with $1.8 billion* in assets = First Fed is a Washington state-chartered savin
Slide 3: 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 noo Ewe ——_} /
Slide 4: 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 5: First Fed Executive Team
‘S First Northwest Bancorp First Fed Executive Team v_ Matt Deines (48) Terry Anderson (52) Derek Brown (50) Geri Bullard (56) Presidentand CEO Chief Credit officer Chief HR & Marketing Officer Chief Financial Officer MY ll Kelly Liske (44) Chris Riffle (45) Randy Riffle (45) Chief Banking Officer C
Slide 6: Experienced Leadership Collaborating across the PNW
‘S First Northwest Bancorp Experienced Leadership Collaborating aa PNW TNS Matthew P. Deines President, ChiefExecutive Officer and Director Port Angeles, Seattle Terry Anderson Executive VP, Chief Credit Officer Sequim 3 25+ Derek. Brown Executive VP, Chief Human Resources and Marketing Officer Sequ
Slide 7: Major Strategic Initiatives
‘S First Northwest Bancorp Major Strategic Initiatives Investment in Technology Launch of quin Marketplace Lending Deposit Account Opening (Terafina) = Mortgage Production (Blend/Ellie Mae) = Digital Consumer Lending (Meridian Link) = Small Business Lending (Sageworks) = Digital Marketing Program (S
Slide 8: Selected Balance Sheet Detail
‘S First Northwest Bancorp $1,845,137 Selected Balance Sheet Detail $1,564,670 $1,237,771 $1,250,310 $1,150,299 $970,71 $8411 2017 03 2018 03 2019 03 2020 03 2021 03 Loans, Net ALLL TotalDeposits _™ Total Assets \CSS Source: Company documents; Financial data az of September 30,2021 8
Slide 9: Substantial Growth While Enhancing Asset Mix
‘S First Northwest Bancorp Substantial Growth While Enhancing Asset Mix Other BOLI cosh $34,084 ~ $29,754 2% $56,481 Ba 5% Investments $288,845 23% Q3 2019 Total Assets: $1,250M Loans, Net ALLL $841,146 67% © 2021 FNWB. Other BOLI cash $43,959 $38,104 $52,079 5 2% 3% Investments $369,111 24% Q3 2020
Slide 10: Securities Portfolio
‘S First Northwest Bancorp Securities Portfolio Investment Portfolio Characteristics as of September 30, 2021 Corp Debt 17% Corp ABS 3% 40% ™ Municipal Securities — Portfolio Ratings: = 100% available-for-sale securities Aaa/AAA Aai/AAt+ Aa2/AA- Aa3/AA- A1/A+ A2/A ™ Book Value: $322.3 Million = Mark
Slide 11: Building Revenue
‘S First Northwest Bancorp Net Interest Non-interest Building Revenue (TTM) oy | ae 'Q3 2019 Operating Revenue: 201903 $55,161 $44.3M = 202003 $5289 201903 m 202103 = 202003 202103 Net Interest. Non-interest. Sonat Income Income $38,101 $4,380 74.8% 25.2% TIM Total 1Q3 2020 Operating Revenue: $54.1M
Slide 12: Measurable Improved Profitability
‘S First Northwest Bancorp Measurable Improved Profitability Trailing Twelve Month Net Income ($M) Trailing Twelve Month ROAA (%) $14,110 $8,926 $8,742 $6,240 a $4,861 201703 = 201803201903 202003202103 Trailing Twelve Month Efficiency Ratio (%) 76.41% 75.14% | LJ [| 0.82% 0.71% 058% 0.65% [| O | ]
Slide 13: Net Interest Income and Margin
‘S First Northwest Bancorp Net Interest Income and Margin $15,500 3.70% $14,500 3.60% $13,500 3.50% $12,500 3.40% $11,500 3.30% $10,500 3.20% $9,500 3.10% $8,500 3.00% $7,500 2.90% $6,500 2.80% 202019 302019 40.2019 10.2020 20.2020 30.2020 40.2020 10.2021 202021 30.2021 $ in thousands lim Net Intere
Slide 14: Balance Sheet Growth
‘S First Northwest Bancorp Balance Sheet Growth Total Assets ($M) CAGR': 12.0% asi $1,565 $27 $1,150 $1,238 $1,250 |" | 201703 = 201803201903 202003202103 Total Deposits ($M) —@- Loan / Deposit (%) $1,255, CAGR': 14.4% ee $932 $971 $851 201703 201803201903 202003 = 202103 © 2021 FNWB 1) CAGR calcula
Slide 15: Leading Deposit Market Share
‘S First Northwest Bancorp Leading Deposit Market Share Clallam County, WA Whatcom County, WA Rank Insiution (7) ‘aranches Deposits (SM) Market Share ( Rank Insiution (7) ‘aranches Deposits (SM) Market Share (6) 1 FrstNorthwest Bancorp (WA) 7 1012 387 1 Peoples Bancorp WA) 2 7382 ma 2 Sound Financia
Slide 16: Strong Core Deposit Composition
‘S First Northwest Bancorp Strong Core Deposit Composition Brokered CDs (Dollars in thousands) 9/30/2021 ae Deposits by Type Balance % of Total MMDA & Savings $767,192 50.4% Non-Int. Checking $328,463 21.6% Retail CDs $189,960 12.5% Interest Checking $182,181 12.0% Brokered CDs $55,120 3.6% Total De
Slide 17: Loan Portfolio Composition
‘S First Northwest Bancorp Loan Portfolio Composition Other Consumer PPP (Dollars in thousands) 9/30/2021 ; po a Loans by Type Balance % of Total oe Commercial Real Estate $353,356 26.0% 5% 1-4 Family $333,313 24.5% Construction and Development $214,472 15.8% Multi-Family $177,560 13.1% Auto $119,21
Slide 18: Historically Strong Asset Quality
‘S First Northwest Bancorp Historically Strong Asset Quality NPA / Assets (%) 0.20 0.21 Texas Ratio 2021 Q3: 0.57% 201703 201803201903 202003202103 NCOs / Avg. Loans (%) 0.18 0.07 a 0.01 as 201703 201803201903 202003 = 202103 Loan Loss Reserve / Total Loans (%) 1.21 ALLL/Total Loans (Ex. PPP) 2021 Q
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 million shares of its common stock, or 10% of the outstandin
Slide 20: Bank Level Capital Ratios
‘S First Northwest Bancorp Bank Level Capital Ratios TCE / TA Leverage Ratio 11.9% 12.5% 12.2% 11.5% 11.4% 10.3% 10.6% 11.1% 10.4% 10.1% Oo 201703 201803201903 -202003 202108 201703 20180320193 202003202143 Tier 1 Capital Ratio Total RBC Ratio 18.0% 17.0% 17.5% Sous 13.4% 13.4% i eee raids (] | [| 1
Slide 21: Consolidated Capital Ratios
‘S First Northwest Bancorp Consolidated Capital Ratios Trailing Twelve Month Return on Avg. Equity Trailing Twelve Month Earnings per Share 7.56% $1.52 5.13% 4.94% 3.48% $0.93 if 2.78% 2017 Q3 2018 Q3 2019 Q3 2020 Q3 2021 Q3 2017 Q3 2018 Q3 2019 Q3 2020 Q3 2021 Q3 Historical Book Value per Share His
Slide 22: Consolidated Historical Balance Sheet
S Fi = First Northwest Bancorp For the Quarter Ending 202003 202008 202101 202102 202403 . Assets ($000) Cons olidated Total Cash and Cash Equivalents 52,079 65,155 99,271 30,722 76,120 Available for ale Securities 369,111 364,296 393,495 370,500 325,890 Other Securities 5,944 5,977 3,997 5,597 4,39
Slide 23: Consolidated Historical Income Statement
\ ‘S First Northwest Bancorp Consolidated Historical Income Statement 2021 FNWB For the Quarters Ending 202003 202004 202101 202102 202103 (Dollarsin thousands) Interest and fees on loans receivable 11,097 11,894 12,541 12,866 14,581 Interest on mortgage-backed and investment securities, 2,168 2,018
Slide 24: Market Footprint
‘S First Northwest Bancorp Market Footprint 16 locations: = 7 in Clallam County: 5 branches, 2 ITMs only = 1inJefferson County = 2inKitsap County = 2inKing County: 1 branch* and a Business Center = 4in Whatcom County: 3 branches and a Business Center * Bellevue branch and team acquired from Sterling
Slide 25: Thank You! Contact
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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