First Northwest Bancorp · NASDAQ:FNWB
First Northwest Bancorp — Q1 2025 Earnings Presentation
27 slides from First Northwest Bancorp's earnings presentation, Apr 24, 2025
Slide 1: First Northwest Bancorp Investor Presentation 2025 First Quarter
& First Northwest Bancorp Investor Presentation 2025 First Quarter April 2025
Slide 2: Forward Looking Statement
Forward Looking Statement Certain matters discussed in this press release may contain forwardlooking 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 whic
Slide 3: First Quarter 2025 Results; Improved Profitability
First Quarter 2025 Results; Improved Profitability Grew customer deposit balances by $23.0 million quarter over quarter, brokered deposits decreased $45.0 million Reported net interest margin of 2.76% an increase of 3 bps from LQ primarily driven by lower deposit costs Classified loans decreased $4.
Slide 4: 2025 First Quarter Financial Summary
2025 First Quarter Financial Summary PPNR* Loans Deposits Capital * Non-GAAP reconeilaton provided on page 27 Adjusted PPNR® of $1.5 million increased $40,000 compared to $1.4 million LQ and increased $308,000 from $1.2 million in the PYQ Growth in Adjusted PPNR driven by modest margin expansion and
Slide 5: First Quarter 2025 GAAP Results
First Quarter 2025 GAAP Results Selected Financial Data (5 intncusands, except fo per share data) 12025 _qa202 32028 gz 2024 aqi202 —_qa2023 32023, Net Interest Income 13887 $ 14137 § 1400 $ 142% $ 1399 $ 14195 $ 14950 $ Provision for Credit Losses 3,568 3,655 3,134 8,739 970 43,152 371 Total Nonint
Slide 6: Strong Capital and Liquidity Positions
Strong Capital and Liquidity Positions Capital Levels = No shares repurchased in 2025 = 846,123 shares remaining to be repurchased under the April 2024 Share Repurchase Plan ® Additional first quarter 2025 ratios (as a percentage of risk-based capital) * = 28% construction = 348% CRE Liquidity Cover
Slide 7: 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 $417.7 million of time deposits repricing in next 9 months + $346.8 million of customer time deposits are repricing at an averag
Slide 8: Credit Trends — Risk Ratings
Credit Trends — Risk Ratings {Loans by Risk Rating 012025 ‘a8 2024 032028 022028 ‘at 2028 {Sin Tosands Balance _%ofTotal__Balonce _%of Total Balance _%of Total__Balance _stoF Total_Balance _%of Total Pass (Grades 13) $1585908 90.33% 51574687 02.73% $1,594156 91.89% 51,582,868 93.34% $1,594,286 95.82
Slide 9: Classified Asset Trend
Classified Asset Trend ‘Amortized Cost of Classified Assets (Gin Thousands} Qa 2025 4 2024 93 2024 Q2 2024 1 2024 Relationship 1 $8120 $ 1138 $ 11187 $ 11,187 $ 14,437 Relationship 2 7,150 8,150 8,177 8,099 - Relationship 3 6,695 6,402 6,439 : : Relationship 4 6,174 6,197 6,228 9,134 9,268 Relations
Slide 10: Credit Quality — Classified Asset Summary
Credit Quality — Classified Asset Summary Classified Assets Schedule as of March 31, 2025 (Sin Thousands) Amortized — % Total Loan Category Cost Assets Status + Condo project located in Bellevue, WA Relationship 1 CRE - Condo $ 8,120 0.37% + 18unit mixed-use project, 9units sold + Townhome project i
Slide 11: Strategic Focus
Strategic Focus Grow customer deposits with focus on treasury management and digital platforms Continue collection and liquidation efforts for classified assets Expand our loan and deposit production with commercial relationships Grow and maintain capital Target home equity growth with digital chann
Slide 12: Financial Outlook
Financial Outlook '& First Northwest Bancorp Our mission: To improve the lives of those we serve Reduce credit costs in 2025 Focus on expanding net interest margin and neutralizing margin sensitivity Unchanged focus on noninterest expense and operating efficiencies Organic loan and deposit growth th
Slide 13: First Fed Executive Team
First Fed Executive Team Matt Deines Geri Bullard kyle Henderson President and CEO Chie operating ofteer het innovation Ofcer Chief creatofticer Chris Neros Phyllis Nomura Chris Riffle Chief Banking Officer Chief Financ! Officer Chief suateey Officer & General Counsel ‘S First Northwest Bancorp B
Slide 14: Thank You! Contact
‘S First Northwest Bancorp S First Fed Thank You! Contact Matt Deines Phyllis Nomura President and CEO EVP | CFO matt.deines@ourfirstfed.com phylls.nomura@ourfirstfed.com S First Northwest Bancorp “
Slide 15: Appendix
‘S First Northwest Bancorp S First Fed Appendix S First Northwest Bancorp 15
Slide 16: About First Northwest Bancorp (FNWB)
About First Northwest Bancorp (FNWB) FNWB NASDAQ ticker symbol N°1 Deposit Market Share in Clallam County Bank holding company for First Fed, a growing community bank with $2.2 billion in assets as of March 34, 2025 First Fed is a Washington state-chartered commercial bank, headquartered in Port Ang
Slide 17: Securities Portfolio
Securities Portfolio Other Q1 2025 Yield 4.63% Unrealized Gain/Loss on Investments, net of tax Investment Portfolio Characteristics as of: Qa 2025 Qa 2028 Book Value $348.2 milion $365.0 million Market Value $3154 million $325.9 million Effective Duration 43 years 4a years Average Life 63 years 78 y
Slide 18: Loan Portfolio Composition
Loan Portfolio Composition Other Consumer 12% Q1 2025 Yield 5.49% Toans by Type ‘Change from Guntonana) 12025 sefTotal_@12028 12028 ‘Comverial Rea Estate 3393473 236% «7.282 ——«$386.191 LaFamiy 394744 237% 10479388 265 Construction and Land Development 65193 39% (60.867) 125,860, Multifamily 339,23
Slide 19: Core Deposit Composition
Core Deposit Composition Noninterest Checking 15% Qi 2025 Cost of Deposits 2.39% Deposits by Type Qi 2025 ‘Change from {Sin Thousands) Balance _% of Total_one year ago Noninterest Checking $247,889 149% ($4,872) Interest Checking 169,912 10.2% (817) Savings 235,188 14.1% (2,362) Money Market 424,489
Slide 20: Net Interest Income and Margin
Net Interest Income and Margin ($ in Thousands) 4.00% $22,000 ao 3.50% $19,500 3.00% 17,000 250% 14,195 $14,500 Ge $13,929 Ge) geo $12,000 2.00% 1203 © 22023 © 032023. «82023. «12024 «= a2 2024032024 = Q47024 =. 2025 mEENet interest Income © ——Net interest Margin ‘S First Northwest Bancorp 20
Slide 21: Performance Metrics
Performance Metrics Trailing Twelve Months Net Income (Loss) ($ in Thousands] gisey S883 814435 Trailing Twelve Months ROA (%) 0.82% 0.79% ons son “004% $5495, 025% amiqn 20d. 20B5A rmiat «moa ara ‘Trailing Twelve Months Efficiency Ratio (%) Trailing Twelve Months Net Interest Margin (%) sa11% 7% 77
Slide 22: Performance Metrics
Performance Metrics Trailing Twelve Month Return on Avg. Equity Trailing Twelve Month Earnings per Share 9.98% cox 79% 053% 3.43% aig mat msgt meats Trailing Twelve Month Historical Book Value per Share $1788 gun. amiga: mart mS “Non-GAAP reconciliation provided on page 27 a $178 $136 $0.40 $063 rai
Slide 23: Balance Sheet Growth
Balance Sheet Growth ($ in Millions) Total Assets Total Loans and Leases CAGR': 5.8% gaa $220 gare CAGR': 9.2% susez SASS LAH sian $736 GuE3 i201 = anzmz = aims. «ata ats Total Deposits anzo = atm azm3 tama tas Total Equity CAGR': 3.8% Ses Suss7 $1,666 siaas SHH SESH iz —anzm = atzms ams am 1-CAGR c
Slide 24: Bank Level Capital Ratios
Bank Level Capital Ratios Equity/Total Assets, Tangible CE/Tangible Assets» Leverage Ratio (as reported on FFIEC Form 051)? snsesi0ses | 970% s.1% SEauity/Total Assets WTCE/TA a] 826% 818% B19% gory 838% 832% mag = mt BLS Tier 4 Capital Ratio (as reported on FFIEC Form 051)? 15.3% 12.56% zoiar —aaaa
Slide 25: Established Community Bank in Puget Sound
Established Community Bank in Puget Sound Established Puget Sound Banking Markets ortar MP oe osksin _ Devonit county c Market share ‘ Rank geanches Market(sa) MNO Franchise lala 1 @ 1196 20% «87% Jefferson 2 1 185 21.2% 108% Emerging Puget Sound Banking Markets market “PP Depostsin ,, ePesit or cou
Slide 26: Leading Deposit Market Share
Leading Deposit Market Share Clallam County, WA Whatcom County, WA Rank netuton 51) Waranches_Deposts (GM) Market Share(4] Rank isttution ST) Wrenches Deposits SM) Market share (2) 1 FirstNomthwestSancorp (WA) ® 1196 20 1 Peoples Bancoro WAY 3 1238 248 2. Souns Facil Bancorp ie. (WA) 3 486 164 2 Bar
Slide 27: Non-GAAP Reconciliations
Non-GAAP Reconciliations Equity/Total Assets and Tangible CE/Tangible Assets Bank Equity/Total Assets and Tangible CE/Tangible Assets Conisamacerceeuty —«$—«15OS0 S$ ASARHLS” ISIIE S ISLANDS 157002 etaarhaiaweity SEEDS bo severe ors ws su. as 2 ae Teonsevore ons ess sy es 2 as outtegblecammencaty TE
First Northwest Bancorp — Q1 2025 Earnings Presentation on 6ix