First Financial Northwest : FFNW Investor Presentation May 2024

May 2024

Joseph W. Kiley III, President & CEO

Richard P. Jacobson, EVP, CFO & COO

NASDAQ:FFNW

Safe Harbor for Forward-Looking Statements

This communication contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 regarding the financial condition, results of operations, business plans and the future performance of First Financial Northwest. Words such as "anticipates," "believes," "estimates," "expects," "forecasts," "intends," "plans," "projects," "could," "may," "should," "will" or other similar words and expressions are intended to identify these forward-looking statements. These forward-looking statements are based on First Financial Northwest's current expectations and assumptions regarding First Financial Northwest's and Global's businesses, the economy, and other future conditions. Because forward-looking statements relate to future results and occurrences, they are subject to inherent uncertainties, risks, and changes in circumstances that are difficult to predict. Many possible events or factors could affect First Financial Northwest's or Global's future financial results and performance and could cause actual results or performance to differ materially from anticipated results or performance. Such risks and uncertainties include, among others: the occurrence of any event, change or other circumstances that could give rise to the right of one or all of the parties to terminate the definitive agreement; the outcome of any legal proceedings that may be instituted against First Financial Northwest, the Bank or Global; delays in completing the transaction; the failure to obtain necessary regulatory approvals and shareholder approvals or to satisfy any of the other conditions to the transaction on a timely basis or at all; the possibility that the anticipated benefits of the transaction are not realized when expected or at all, including as a result of the impact of, or problems arising from, the dissolution of the Bank and First Financial Northwest; the possibility that the transaction may be more expensive to complete than anticipated, including as a result of unexpected factors or events, diversion of management's attention from ongoing business operations and opportunities; potential adverse reactions or changes to business or employee relationships, including those resulting from the announcement or completion of the transaction, and the ability to complete the transaction and integrate the Bank's customers, assets, and liabilities into Global successfully; 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; changes in the interest rate environment, including the recent increases in the Federal Reserve benchmark rate and duration at which such increased interest rate levels are maintained, which could adversely affect our revenues and expenses, the value of assets and obligations, and the availability and cost of capital and liquidity; the impact of continuing high inflation and the current and future monetary policies of the Federal Reserve in response thereto; the effects of any federal government shutdown; increased competitive pressures; legislative and regulatory changes; the impact of bank failures or adverse developments at other banks and related negative press about the banking industry in general on investor and depositor sentiment; disruptions, security breaches, or other adverse events, failures or interruptions in, or attacks on, our information technology systems or on the third-party vendors who perform several of our critical processing functions; effects of critical accounting policies and judgments, including the use of estimate in determining fair value of certain of our assets, which estimates may prove to be incorrect and result in significant declines in valuation; the effects of climate change, severe weather events, natural disasters, pandemics, epidemics and other public health crises, acts of war or terrorism, and other external events on our business. Any of the forward-looking statements that we make in this communication and in the other public statements are based upon management's beliefs and assumptions at the time they are made and may turn out to be wrong because of the inaccurate assumptions we might make, because of the factors illustrated above or because of other factors that we cannot foresee. Therefore, these factors should be considered in evaluating the forward-looking statements, and undue reliance should not be placed on such statements. Except to the extent required by applicable law or regulation, First Financial Northwest disclaims any obligation to update such factors or to publicly announce the results of any revisions to any of the forward-looking statements included herein to reflect future events or developments. Further information regarding First Financial Northwest and factors which could affect the forward-looking statements contained herein can be found in First Financial Northwest's Annual Report on Form 10-K, its Quarterly Reports on Form 10-Q and its other filings with the SEC.

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
Dalen D. Harrison	EVP, Chief Banking Officer (FFNWB)	10	43
Ronnie J. Clariza	SVP, Chief Risk Officer (FFNWB)	20	23
Simon Soh	SVP, Chief Credit Officer (FFNWB)	13	36

NASDAQ:FFNW 3

Company Highlights

Recent Announcement

• Global Federal Credit Union Agreed to Acquire First Financial Northwest Bank Pursuant to a Purchase & Assumption Agreement
• Anticipated to be completed in Q4 2024, subject to receiving shareholder and regulatory approvals

Holding Company: First Financial Northwest, Inc.

• IPO October 2007
• Nasdaq Global Select Market: FFNW
• All-timehigh: $22.17 (1/11/24) | All-time low: $3.21 (11/12/10)
• Closing stock price: $20.40 (5/3/2024)

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
		Mar 31,	Dec 31,	Sep 30,	Jun 30,	Mar 31,
		2024	2023	2023	2023	2023
	Performance Ratios (1)
	Return on assets (2)	(0.29)%	0.31%	0.39%	0.39%	0.57%
	Return on equity (2)	(2.67)	2.97	3.71	3.74	5.31
	Equity-to-total assets	10.91	10.74	10.44	10.39	10.14
	Net interest margin	2.55	2.54	2.69	2.84	3.22
	Efficiency ratio (2)	116.97	85.17	84.49	85.57	75.12
	Noninterest expense/average total assets (2)	3.05	2.18	2.29	2.50	2.42
	Capital Ratios (3)
	Tier 1 leverage ratio	10.41%	10.18%	10.25%	10.02%	10.24%
	Total capital ratio	16.24	16.15	16.00	15.75	15.59
	Asset Quality Ratios (4)
	Nonaccrual loans/total loans	0.02%	0.02%	0.02%	0.02%	0.02%
	ACL as a percent of total loans	1.30	1.28	1.29	1.31	1.33
	Yields and Costs (1)
	Yield on loans	5.88%	5.83%	5.73%	5.71%	5.56%
	Cost of funds	3.31	3.23	2.97	2.76	2.23

1. Calculated on an annualized basis.
2. Includes expenses relating to pending sale transaction in process.

1. First Financial Northwest Bank only.
2. Loans are reported net of undisbursed funds.

NASDAQ:FFNW 5

Consolidated Results

					Quarter Ended
		Mar 31,		Dec 31,		Sep 30,		Jun 30,		Mar 31,
		2024		2023		2023		2023		2023
				(Dollars in thousands, except per share data)
Net interest income	$	8,900	$	9,275	$	9,703	$	10,309	$	11,256
(Recapture of provision) provision for credit
losses		(175)		--		(300)		(247)		338
Net interest income after (recapture of)
provision for credit losses		9,075		9,275		10,003		10,556		10,918
Total noninterest income		787		633		677		798		665
Total noninterest expense		11,331		8,439		8,770		9,504		8,955
(Loss) income before federal income tax
(benefit) provision		(1,469)		1,469		1,910		1,850		2,628
Federal income tax (benefit) provision		(393)		275		409		362		506
Net income	$	(1,076)	$	1,194	$	1,501	$	1,488	$	2,122
Total assets	$	1,468,350	$	1,505,082	$	1,525,568	$	1,528,079	$	1,574,271
Book value per common share		$17.46		$17.61		$17.35		$17.35		$17.45
Tangible book value per common share (1)		17.32		17.47		17.20		17.20		17.30

(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

Amazon's workforce in Seattle and Bellevue has shifted in opposite directions since 2020 with Bellevue growing to 12,000 in 2024 from 2,790, while Seattle has dropped to 50,000 from its 2020 peak of 60,000

"Why is Amazon's Workforce Shrinking in its Hometown?" Puget Sound Business Journal, March 1-7, 2024

Boeing received 113 orders for commercial aircraft in March 2024, a sharp increase from just 15 in February.

Piper Sandler Economic Snapshot, Durable Goods Orders (March 2024), April 24, 2024

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

Best Cities for Jobs in 2024

Overall Rank City

1. Scottsdale, AZ
2. Tampa, FL
3. Salt Lake City, UT
4. Columbia, MD
5. Austin, TX
6. Atlanta, GA
7. Seattle, WA
8. Pittsburgh, PA
9. Plano, TX

10 Boston, MA

WalletHub compared more than 180 U.S. cities across 31 key indicators of job-market strength, ranging from job opportunities per job seeker to employment growth to the monthly average starting salary

***

Seattle tied for #1 along with 4 other West Coast cities and Washington, D.C. for highest monthly average starting salary

Source: WALLETHUB, January 4, 2024

NASDAQ:FFNW 8

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 9

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 10