First Northwest Bancorp (FNWB) investor relations material

Executive summary

• Q3 2026 net loss was $743,000, or $0.08 per diluted share, versus net income of $308,000 in Q2 2026 and $802,000 in Q3 2025; a $1.3 million litigation settlement and higher credit provision weighed on results.

• Nine-month net loss narrowed to $429,000 from $4.6 million, while NIM improved 15 bps year over year to 2.98%.

Financial highlights

• Q3 net interest income was $14.3 million, up from $14.2 million QoQ and down from $14.6 million YoY; nine-month NII was $42.9 million versus $42.6 million.

• Q3 provision for credit losses was $739,000, versus a $540,000 recapture in Q2 and a $673,000 recapture in Q3 2025; nine-month provision was $277,000 versus $6.8 million.

• Q3 noninterest income rose $172,000 YoY to $2.2 million, including a nonrecurring historic tax-credit partnership redemption gain; noninterest expense was $17.3 million, including the settlement expense.

• Nine-month net loss per share was $0.05, versus $0.52 loss in 2025; nine-month noninterest income declined $1.8 million to $6.2 million and expenses rose $237,000 to $50.4 million.

Outlook and guidance

• Management expects underlying profitability to improve beginning in Q4 2026 after the nonrecurring settlement expense, with momentum into 2027; strategic and operational initiatives aim to support long-term shareholder value.

• Lending priorities span diversified commercial real estate, multifamily and commercial business, residential lending and purchased consumer loans, with growth balanced against credit risk.

• Funding strategy prioritizes core customer deposits, especially small- and medium-sized business accounts, while managing funding costs and reliance on brokered deposits and FHLB advances.

• $455.1 million of CDs mature within one year; if not renewed, replacement funding may carry higher rates.