First Northwest Bancorp (FNWB) investor relations material

Executive summary

• 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.

• Net income for Q2 2026 was $308,000, up from $6,000 in Q1 2026 but down from $3.7 million in Q2 2025; EPS was $0.03 for Q2 2026.

• Management is focused on operational efficiency, core deposit growth, and disciplined organic loan growth, with transformation initiatives underway to improve profitability.

• Customer deposits grew during the quarter, while loan balances declined slightly due to reduced commercial real estate exposure.

Financial highlights

• Net income for Q2 2026 was $308,000, with diluted EPS of $0.03.

• Net interest margin decreased 8 bps sequentially to 2.95%.

• Total revenue for Q2 2026 was $16.2M; noninterest expense was $16.4M, down $291,000 sequentially.

• Customer deposits increased $11.3M (0.74%) from last quarter; brokered deposits decreased $5.5M (8.59%) sequentially and 45.2% year-over-year.

• Gross loans decreased $16.0M (0.98%) from last quarter, with specialty portfolio growth offset by declines in multifamily and residential mortgages.

Outlook and guidance

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

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

• Focus remains on disciplined balance sheet management, liquidity, and capital strength.