First Financial Northwest : FFNW Investor Presentation February 2023

February 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 oil prices and supply chain disruptions, and any governmental or societal responses to the COVID-19 pandemic, including the possibility of new COVID-19 variants; 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 filings with the Securities and Exchange Commission which are available on the investor relations portion of 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.

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Senior Management Team

Nearly 34 Years Average Experience

		Years with	Years in
Name	Title	FFNWB	Industry
Joseph W. Kiley III	President, Chief Executive Officer	10	33
Richard P. Jacobson	EVP, Chief Financial Officer and	9	37
Chief Operating Officer
Ronnie J. Clariza	SVP, Chief Risk Officer (FFNWB)	19	22
Dalen D. Harrison	SVP, Chief Banking Officer (FFNWB)	9	42
Simon Soh	SVP, Chief Credit Officer (FFNWB)	12	35

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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: $15.07 (1/27/2023)

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

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Key Financial Ratios

Reducing the cost of funds through our expanded network

				Quarter Ended
		Dec 31,	Sep 30,	Jun 30,	Mar 31,	Dec 31,
		2022	2022	2022	2022	2021
	Performance Ratios (1)
	Return on assets	0.86%	1.06%	0.79%	0.93%	0.76%
	Return on equity	8.04	9.88	7.11	8.33	6.79
	Equity-to-total assets	10.67	10.64	10.78	11.15	11.07
	Net interest margin	3.52	3.65	3.53	3.43	3.40
	Efficiency ratio	65.84	66.80	72.62	70.96	68.62
	Noninterest expense/average total assets	2.30	2.43	2.60	2.46	2.42
	Capital Ratios (2)
	Tier 1 leverage ratio	10.31%	10.43%	10.53%	10.51%	10.34%
	Total capital ratio	15.62	15.49	15.47	15.33	15.48
	Asset Quality Ratios
	Nonperforming assets/total assets	0.01%	0.02%	0.00%	0.01%	0.00%
	ALLL as a percent of total loans	1.29	1.27	1.33	1.33	1.40
	Yields and Costs (1)
	Yield on loans	5.19%	4.77%	4.41%	4.36%	4.44%
	Cost of funds	1.48	0.84	0.55	0.51	0.55

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

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