First Northwest Bancorp (FNWB) investor relations material

Executive summary

• Net income for Q2 2026 was $308,000, up from $6,000 in Q1 2026 but down from $3.7 million in Q2 2025, primarily due to higher noninterest expenses and lower noninterest income, partially offset by a recapture of provision for credit losses and lower tax provision.

• For the first half of 2026, net income was $314,000, a turnaround from a net loss of $5.4 million in the same period last year, driven by a significant decrease in provision for credit losses and higher net interest income.

• Maintains a strong presence in the Puget Sound region with $2.1B in assets, $1.6B in loans, and $1.6B in deposits as of June 30, 2026.

• Management is focused on operational efficiency, core deposit growth, and repositioning the balance sheet for long-term growth.

• Transformation initiatives are underway to improve profitability, with uneven near-term results but expected improvement in late 2026 and into 2027.

Financial highlights

• Total assets were $2.12 billion at June 30, 2026, with a 0.8% increase from year-end and a 0.4% sequential decrease.

• Net loans decreased 0.9% sequentially to $1.60 billion, with declines in one-to-four family and multifamily loans, partially offset by increases in commercial business and consumer loans.

• Customer deposits increased 0.7% sequentially and 0.5% from year-end to $1.61 billion, while brokered deposits dropped 8.6% sequentially and 45.2% year-over-year.

• Net interest income was $14.2 million for Q2 2026, with net interest margin at 2.95%.

• Noninterest expense was $16.4 million, with increases driven by compensation, professional fees, and legal costs.

Outlook and guidance

• Profitability is expected to improve in the second half of 2026 and into 2027 as transformation and efficiency initiatives take hold.

• Management continues to focus on disciplined balance sheet management, liquidity, and capital strength, while monitoring economic and regulatory changes.

• Near-term results may remain uneven due to ongoing operational changes.