First Northwest Bancorp (FNWB) investor relations material

Executive summary

• Net income for Q1 2026 was $6,000, a significant improvement from a $9.0 million loss in Q1 2025, but down from $382,000 in Q4 2025, driven by lower provision for credit losses, reduced noninterest expense, and higher net interest income.

• Basic and diluted EPS were $0.00, down from $0.04 in Q4 2025 and up from a $1.03 loss per share year-over-year.

• Total assets increased 1.2% to $2.13 billion at March 31, 2026, with cash and cash equivalents up 22.3% to $104.1 million.

• Management is focused on operational efficiency, balance sheet repositioning, and expects improved performance in the second half of 2026 and into 2027.

Financial highlights

• Net interest margin expanded for the sixth consecutive quarter to 3.03%, up from 2.76% in Q1 2025 and 3.00% in Q4 2025.

• Net interest income rose $593,000 year-over-year to $14.4 million.

• Total interest income decreased $1.5 million year-over-year and $803,000 sequentially, mainly due to lower average earning assets and investment yields.

• Interest expense fell $2.1 million year-over-year and $553,000 sequentially to $10.9 million, reflecting lower deposit and borrowing costs.

• Noninterest income dropped $1.8 million year-over-year and $1.7 million sequentially, primarily due to the absence of prior year BOLI death benefit and insurance reimbursement.

• Noninterest expense decreased $3.3 million year-over-year and $218,000 sequentially, with prior year including a $5.8 million legal settlement.

• Allowance for credit losses on loans (ACLL) was $16.8 million (1.03% of loans), down from $17.0 million at year-end.

Outlook and guidance

• Management anticipates improved profitability beginning in the second half of 2026, with a focus on core banking momentum and disciplined balance sheet management.

• Management continues to monitor economic conditions and expects the investment portfolio to provide supplemental income and liquidity.

• Focus remains on growing core customer deposits and prudent credit risk management.

• No material changes to risk factors or critical accounting policies were reported.