November 2023

Joseph W. Kiley III, President & CEO

Richard P. Jacobson, EVP, CFO & COO

NASDAQ:FFNW

Forward Looking Statement

This presentation includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are not historical facts but instead represent management's current expectations and forecasts regarding future events many of which are inherently uncertain and outside of our control. Actual results may differ, possibly materially from those currently expected or projected in these forward-looking statements. Factors that could cause our actual results to differ materially from those described in the forward-looking statements, include, but are not limited to, the following: potential adverse impacts to economic conditions in our local market areas, other markets where the Company has lending relationships, or other aspects of the Company's business operations or financial markets, including, without limitation, as a result of employment levels, labor shortages and the effects of inflation, a potential recession or slowed economic growth caused by increasing political instability from acts of war including Russia's invasion of Ukraine, as well as increasing prices and supply chain disruptions, and any governmental or societal responses to new COVID-19 variants; the uncertain impacts of quantitative tightening and current and future monetary policies of the Federal Reserve; increased competitive pressures; changes in the interest rate environment; legislative and regulatory changes; and other factors described in First Financial Northwest's latest Annual Report on Form 10-K and Quarterly Reports on Form 10-Q and other reports filed with or furnished to the Securities and Exchange Commission that are available on our website at www.ffnwb.comand on the SEC's website at www.sec.gov.

First Financial Northwest does not undertake any obligation to update the forward-looking statements to reflect the impact of circumstances or events that may arise after the date of the forward-looking statements.

NASDAQ:FFNW 2

Senior Management Team

Nearly 35 Years Average Experience

Years with

Years in

Name

Title

FFNWB

Industry

Joseph W. Kiley III

President, Chief Executive Officer

11

34

Richard P. Jacobson

EVP, Chief Financial Officer and

10

38

Chief Operating Officer

Ronnie J. Clariza

SVP, Chief Risk Officer (FFNWB)

20

23

Dalen D. Harrison

SVP, Chief Banking Officer (FFNWB)

10

43

Simon Soh

SVP, Chief Credit Officer (FFNWB)

13

36

NASDAQ:FFNW 3

Company Highlights

Holding Company: First Financial Northwest, Inc.

  • IPO October 2007
  • Nasdaq Global Select Market: FFNW
  • All-timehigh: $21.81 (6/8/18) | All-time low: $3.24 (11/30/10)
  • Closing stock price: $11.00 (11/2/2023)

Community Bank: First Financial Northwest Bank

  • Organized in 1923 as a state savings and loan association
  • Converted to a Washington State chartered mutual savings bank in 1992
  • Formed a mutual holding company in 2002
  • Converted to a Washington State-chartered commercial bank in 2016

Market Area: Headquartered in Renton, Washington

  • Western Washington along I-5 & I-405 corridors (outside Seattle)
  • Primary focus on King, Snohomish and Pierce counties

NASDAQ:FFNW 4

Key Financial Ratios

Maintaining strong capital levels and excellent asset quality

Quarter Ended

Sep 30,

Jun 30,

Mar 31,

Dec 31,

Sep 30,

2023

2023

2023

2022

2022

Performance Ratios (1)

Return on assets

0.39%

0.39%

0.57%

0.86%

1.06%

Return on equity

3.71

3.74

5.31

8.04

9.88

Equity-to-total assets

10.44

10.39

10.14

10.67

10.64

Net interest margin

2.69

2.84

3.22

3.52

3.65

Efficiency ratio

84.49

86.95

75.44

65.84

66.80

Noninterest expense/average total assets

2.29

2.50

2.42

2.30

2.43

Capital Ratios (2)

Tier 1 leverage ratio

10.25%

10.02%

10.24%

10.31%

10.43%

Total capital ratio

16.00

15.75

15.59

15.62

15.49

Asset Quality Ratios

Nonperforming assets/total assets

0.01%

0.01%

0.01%

0.01%

0.02%

ACL as a percent of total loans

1.29

1.31

1.33

1.29

1.27

Yields and Costs (1)

Yield on loans

5.73%

5.71%

5.56%

5.19%

4.77%

Cost of funds

2.97

2.76

2.23

1.48

0.84

  1. Calculated on an annualized basis.
  2. First Financial Northwest Bank only.

NASDAQ:FFNW 5

Consolidated Results

Quarter Ended

Sep 30,

Jun 30,

Mar 31,

Dec 31,

Sep 30,

2023

2023

2023

2022

2022

(Dollars in thousands, except per share data)

Net interest income

$

9,703

$

10,309

$

11,256

$

12,468

$

12,717

Provision (recapture of provision) for credit

losses

(300)

(247)

338

500

(400)

Net interest income after provision

(recapture of) for loan losses

10,003

10,556

10,917

11,968

13,117

Total noninterest income

677

798

665

695

778

Total noninterest expense

8,770

9,504

8,955

8,666

9,014

Income before federal income tax provision

1,910

1,850

2,628

3,997

4,881

Federal income tax provision

409

362

506

771

935

Net income

$

1,501

$

1,488

$

2,122

$

3,226

$

3,946

Total assets

$

1,525,568

$

1,528,079

$

1,574,271

$

1,502,916

$

1,484,311

Book value per common share

$17.35

$17.35

$17.45

$17.57

$17.30

Tangible book value per common share (1)

17.20

17.20

17.30

17.41

17.14

(1) Tangible book value per share is a non-GAAP financial measure. Refer to the Appendix: Non-GAAP Financial Measures for a reconciliation to the nearest GAAP equivalent.

NASDAQ:FFNW 6

Regional Economy

Company

Square Feet Occupied (1)

29.65 million

22.09 million

13.05 million

2.54 million

2.28 million

2.16 million

1.89 million

1.80 million

1.44 million

Largest Office Occupiers

in the Seattle Metro Area

as of July 2023

*Includes office, industrial, flex and retail spaces, if any

Source: Office Occupiers, Puget Sound Business Journal, August 11, 2023

NASDAQ:FFNW 7

Local Economy

"Renton's going to happen"

  • Puget Sound Business Journal, February 18, 2022

Sounders FC to build a state-of-the-art training facility and office at the former Boeing commercial airplanes headquarters; slated to open in January 2024. Seattle selected to host a 2026 World Cup match

Seattle-based Unico Properties is also planning around 3,000 units of multifamily housing on the property named for Longacres, the horse racing track previously located there from 1932 until the early 1990s

8,185 residential units planned or in development across Renton

Joining the Seattle Seahawks whose 200,000 square-foot waterfront headquarters and practice facility opened in Renton in 2008

UW Medicine leased a long-vacant, 197,000 square-foot former FAA building in Renton to house its Department of Laboratory Medicine and Pathology in June 2022

Blue Origin is reported to have leased nearly 100,000 square feet of office in a Lind Avenue Southwest building

Vulcan Real Estate on track to begin building a 385-unit apartment project on

  1. long-heldproperty in the Kennydale neighborhood in June 2023

Bay West Development plans a 1,179-unit,three-building multifamily community with nearly 50,000 square feet of retail and commercial space at the former Fry's Electronics location over three phases beginning in 2024. If all three phases are realized, the project would be the largest mixed-use residential development in Renton history.

NASDAQ:FFNW 8

Market Area

Smokey Point

Lake Stevens

Mill Creek

Clearview

Woodinville

Gig Harbor

Puget Sound Region of Western Washington along I-5 & I-405 corridors (outside Seattle)

Primary focus on King, Snohomish, Pierce and, to a lesser extent, Kitsap counties

Suburban Strategy -

Surround Seattle and

Bellevue Proper

NASDAQ:FFNW 9

Office Experience

Cost-Efficient,

Technology-Centered

Branch Concept

NASDAQ:FFNW 10

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Disclaimer

First Financial Northwest Inc. published this content on 06 November 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 06 November 2023 21:35:22 UTC.