First Northwest Bancorp (Nasdaq: FNWB) reports modest Q2 2026 net income

Q: How did First Northwest Bancorp (FNWB) perform in Q2 2026?

First Northwest Bancorp reported Q2 2026 net income of $308,000 , up from $6,000 in Q1 2026 but down from $3.7 million in Q2 2025. Earnings per share were $0.03 , compared with $0.00 in Q1 2026 and $0.42 a year earlier.

Q: What were First Northwest Bancorp (FNWB)’s key margin and efficiency metrics?

For Q2 2026, First Northwest Bancorp’s net interest margin was 2.95% , down from 3.03% in Q1 2026 but above 2.83% in Q2 2025. The efficiency ratio was 101.3% , compared with 101.4% in Q1 2026 and 78.0% in Q2 2025.

Q: How strong is First Northwest Bancorp (FNWB)’s capital position?

At June 30, 2026, First Fed’s Common Equity Tier 1 ratio was 12.4% and its total risk-based capital ratio was 13.4% . The bank reported that capital levels at both the holding company and bank remained above required thresholds and that the bank was well-capitalized.

Q: What are First Northwest Bancorp (FNWB)’s asset and loan levels?

Total assets were $2.12 billion at June 30, 2026, down from $2.13 billion at March 31, 2026 and $2.20 billion a year earlier. Net loans receivable were $1.60 billion , down 1.0% sequentially and 3.0% year over year, reflecting portfolio rebalancing.

Q: How did deposits at First Northwest Bancorp (FNWB) change in Q2 2026?

Total deposits were $1.61 billion at June 30, 2026, up from $1.60 billion at March 31, 2026 but below $1.65 billion a year earlier. Customer deposits rose $11.3 million during Q2 2026, while brokered deposits fell by $5.5 million to $58.6 million.

Filing Impact

(Very High)

Filing Sentiment

(Neutral)

Form Type

8-K

Rhea-AI Filing Summary

First Northwest Bancorp reported net income of $308,000 for the second quarter of 2026, up from $6,000 in the first quarter but down sharply from $3.7 million in the second quarter of 2025. Basic and diluted earnings per share were $0.03, versus $0.00 in the prior quarter and $0.42 a year earlier.

Core banking trends were mixed: the net interest margin was 2.95%, down from 3.03% in the first quarter but above 2.83% a year ago, while the efficiency ratio was 101.3%, indicating noninterest expense exceeded net revenue. Total assets were $2.12 billion, down 0.4% sequentially and 3.2% year over year.

Credit quality and funding showed incremental improvement. The allowance for credit losses on loans was $16.3 million, or 1.01% of total loans, with a $337,000 recapture of provision in the quarter and annualized net charge-offs of 0.04% of average loans. Nonperforming assets were $22.3 million, or 1.05% of total assets. Customer deposits rose $11.3 million during the quarter, brokered deposits and FHLB advances declined, and the bank’s total risk-based capital ratio was 13.4%, with Common Equity Tier 1 at 12.4%, keeping the bank in the well-capitalized category.

Filing Explained

Unused repurchase capacity leaves no disclosed buyback commitment, while the March debt-rate reset increased second-quarter borrowing expense.

As a Form 8-K, this filing reports the company’s second-quarter and six-month 2026 earnings release and investor presentation under Items 2.02 and 7.01. At June 30, 2026, no common shares were repurchased during the quarter, while 846,123 shares remained available under the April 2024 Repurchase Plan; that is authorization capacity, not a disclosed buyback commitment.

The company also reports that its subordinated debt changed from a fixed rate to a floating rate at the end of March. Borrowing interest expense increased from the prior quarter to $11.3 million, with the debt-rate change identified as the primary reason.

Classified loans declined $9.1 million to $25.5 million, but the filing identifies $5.6 million of new downgrades and four collateral-dependent loans totaling $18.3 million, or 72% of classified loans. The company’s stated efficiency benefits are expected to begin in late 2026 and continue through 2027, so that milestone remains prospective rather than completed.

8-K Event Classification

3 items: 2.02, 7.01, 9.01

3 items

Item 2.02 Results of Operations and Financial Condition Financial

Disclosure of earnings results, typically an earnings press release or preliminary financials.

Item 7.01 Regulation FD Disclosure Disclosure

Material non-public information disclosed under Regulation Fair Disclosure, often investor presentations or guidance.

Item 9.01 Financial Statements and Exhibits Exhibits

Financial statements, pro forma financial information, and exhibit attachments filed with this report.

Key Figures

Net income Q2 2026: $308,000 Net income Q2 2025: $3.7 million Net interest margin: 2.95% +4 more

7 metrics

Net income Q2 2026 $308,000 Second quarter of 2026 net income

Net income Q2 2025 $3.7 million Second quarter of 2025 net income

Net interest margin 2.95% Net interest margin for Q2 2026

Total assets $2.12 billion Total assets at June 30, 2026

Total deposits $1.61 billion Total deposits at June 30, 2026

Allowance for credit losses on loans $16.3 million ACLL balance at June 30, 2026

Total risk-based capital ratio 13.4% First Fed total risk-based capital at June 30, 2026

Key Terms

net interest margin, efficiency ratio, allowance for credit losses on loans, nonperforming assets, +2 more

6 terms

net interest margin financial

"The net interest margin decreased to 2.95% for the second quarter of 2026"

Net interest margin measures how much a bank earns from lending and investing compared with what it pays for funding, expressed as a percentage of its interest-earning assets. Think of it like a grocery store’s markup: it shows the gap between buying cost and selling price per dollar of goods — here, the cost is interest paid and the sale is interest received. Investors watch it because a higher margin usually means a bank is more profitable and better at managing interest rate and credit conditions.

efficiency ratio financial

"Efficiency ratio (3) 101.3 ... 101.4 ... 78.0"

A measure of how much a company spends to produce each dollar of revenue, usually shown as operating expenses divided by revenue and expressed as a percentage. Think of it as a household’s budget: a lower percentage means more of each dollar earned stays as profit, while a higher number means costs are eating into returns. Investors use it to judge cost control and compare how efficiently companies turn revenue into earnings, especially in banks and financial firms.

allowance for credit losses on loans financial

"The ACLL decreased $514,000 to $16.3 million at June 30, 2026"

A bank's allowance for credit losses on loans is a reserve of money set aside to cover loans the lender expects may not be repaid. Think of it as a rainy-day fund for a loan portfolio: larger allowances signal more expected losses and reduce reported profits and available capital, so investors watch it to judge a lender’s risk exposure, earnings quality, and financial strength.

nonperforming assets financial

"Total nonperforming assets $22,296 ... Nonperforming assets as a % of total assets"

Nonperforming assets are loans or investments that are not generating expected payments or returns because the borrower has fallen behind on payments or the investment has lost value. They matter to investors because a high level of nonperforming assets can indicate financial trouble for a bank or institution, potentially affecting its stability and profitability.

brokered deposits financial

"Brokered deposits decreased $5.5 million, or 8.6%, to $58.6 million"

Brokered deposits are large sums of customer cash placed at a bank through a third-party intermediary that shops around for the best interest rate, like a broker assembling a big bucket of savings and directing it to a bank. They matter to investors because they can quickly change a bank’s funding level and cost — providing fast liquidity but also adding volatility and regulatory scrutiny that can affect a bank’s stability and profitability.

Common equity Tier 1 regulatory

"Preliminary calculations of Common Equity Tier 1 and Total Risk-Based Capital Ratios"

Common Equity Tier 1 is the highest-quality capital a bank holds—mainly common shares and retained profits—that acts as the primary cushion against losses. Investors use the CET1 level and ratio to judge a bank’s financial strength and regulatory standing: a bigger cushion means the bank is better able to absorb shocks, sustain payouts and borrow cheaply, much like an emergency fund for a household.

Earnings Snapshot

Net income Q2 2026: $308,000

quarter and six months ended June 30, 2026

Net income Q2 2026 $308,000 compared with $3.7 million in Q2 2025

EPS Q2 2026 $0.03 compared with $0.42 in Q2 2025

Net interest margin Q2 2026 2.95% compared with 2.83% in Q2 2025

Total assets $2.12 billion compared with $2.20 billion at June 30, 2025

Customer deposits $1.55 billion slightly above $1.55 billion at June 30, 2025

Nonperforming assets $22.3 million compared with $21.7 million at June 30, 2025

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Available on EDGAR 07/29/2026 - 11:31 AM Accepted by SEC EDGAR 07/29/2026 - 11:30 AM

FAQ

How did First Northwest Bancorp (FNWB) perform in Q2 2026?

First Northwest Bancorp reported Q2 2026 net income of $308,000, up from $6,000 in Q1 2026 but down from $3.7 million in Q2 2025. Earnings per share were $0.03, compared with $0.00 in Q1 2026 and $0.42 a year earlier.

What were First Northwest Bancorp (FNWB)’s key margin and efficiency metrics?

For Q2 2026, First Northwest Bancorp’s net interest margin was 2.95%, down from 3.03% in Q1 2026 but above 2.83% in Q2 2025. The efficiency ratio was 101.3%, compared with 101.4% in Q1 2026 and 78.0% in Q2 2025.

How strong is First Northwest Bancorp (FNWB)’s capital position?

At June 30, 2026, First Fed’s Common Equity Tier 1 ratio was 12.4% and its total risk-based capital ratio was 13.4%. The bank reported that capital levels at both the holding company and bank remained above required thresholds and that the bank was well-capitalized.

What are First Northwest Bancorp (FNWB)’s asset and loan levels?

Total assets were $2.12 billion at June 30, 2026, down from $2.13 billion at March 31, 2026 and $2.20 billion a year earlier. Net loans receivable were $1.60 billion, down 1.0% sequentially and 3.0% year over year, reflecting portfolio rebalancing.

How did deposits at First Northwest Bancorp (FNWB) change in Q2 2026?

Total deposits were $1.61 billion at June 30, 2026, up from $1.60 billion at March 31, 2026 but below $1.65 billion a year earlier. Customer deposits rose $11.3 million during Q2 2026, while brokered deposits fell by $5.5 million to $58.6 million.

What is the credit quality profile for First Northwest Bancorp (FNWB)?

At June 30, 2026, the allowance for credit losses on loans was $16.3 million, or 1.01% of total loans. Nonaccrual loans totaled $20.7 million, and nonperforming assets were $22.3 million, equal to 1.05% of total assets, with annualized net charge-offs of 0.04%.

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): July 29, 2026

FIRST NORTHWEST BANCORP

(Exact name of registrant as specified in its charter)



Washington	001-36741	46-1259100
(State or other jurisdiction of incorporation)	(Commission File Number)	(I.R.S. Employer Identification No.)



105 West 8th Street, Port Angeles, Washington	98362
(Address of principal executive offices)	(Zip Code)

Registrant's telephone number, including area code: (360) 457-0461

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions.

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class:		Trading Symbol(s):		Name of each exchange on which registered:
Common Stock, par value $0.01 per share		FNWB		The Nasdaq Stock Market LLC

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 2.02

Results of Operations and Financial Condition

On July 29, 2026, First Northwest Bancorp (the "Company") issued an earnings release for the quarter and six months ended June 30, 2026. A copy of the earnings release is furnished herewith as Exhibit 99.1 and is incorporated herein by reference.

This information (including Exhibit 99.1) is being furnished under Item 2.02 hereof and shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934 (the "Exchange Act"), or otherwise subject to the liabilities of that section, and such information shall not be deemed incorporated by reference into any filing under the Securities Act of 1933 or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.

Item 7.01

Regulation FD Disclosure

On July 29, 2026, the Company issued a slide presentation, which includes, among other things, a review of financial results and trends through the quarter and six months ended June 30, 2026.

A copy of the Presentation Material is included as Exhibit 99.2 to this current report on Form 8-K and is incorporated herein by reference.

This information (including Exhibit 99.2) is being furnished under Item 7.01 hereof and shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934 (the "Exchange Act"), or otherwise subject to the liabilities of that section, and such information shall not be deemed incorporated by reference into any filing under the Securities Act of 1933 or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.

Item 9.01 Financial Statements and Exhibits
(d) Exhibit.	The following exhibit is furnished with this Form 8-K.

Exhibit No.	Description
99.1	Press Release dated July 29, 2026
99.2	Investor Presentation - Second Quarter 2026
104	Cover Page Interactive Data File (embedded within the Inline XBRL document)

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.


		FIRST NORTHWEST BANCORP


Date:	July 29, 2026	/s/Curt T. Queyrouze

		Curt T. Queyrouze
		President and Chief Executive Officer

Exhibit 99.1

PORT ANGELES, Wash., July 29, 2026 (GLOBE NEWSWIRE)

First Northwest Bancorp Reports Second Quarter 2026 Financial Results

First Northwest Bancorp (Nasdaq: FNWB) ("First Northwest" or the "Company"), the holding company for First Fed Bank ("First Fed" or the "Bank"), today reported its financial results for the second quarter and first six months of 2026. The Company reported net income of $308,000 for the second quarter of 2026, compared to net income of $6,000 for the first quarter of 2026 and $3.7 million for the second quarter of 2025. Basic and diluted income per share were $0.03 for the second quarter of 2026, compared to basic and diluted income per share of $0.00 for the first quarter of 2026 and basic and diluted income per share of $0.42 for the second quarter of 2025.

Management Outlook; President and Chief Executive Officer, Curt Queyrouze:

"At the midpoint of 2026, we continue to execute a disciplined transformation to improve operating efficiency and reposition the balance sheet for long-term performance. We are pleased to report growth in customer deposits during the current quarter and are encouraged by the underlying momentum in our core banking franchise. Loan balances were down slightly for the quarter as we continue to rebalance our portfolio to lessen the dependence on commercial real estate lending. Consumer and commercial business lending were up, but offset by a decrease in commercial real estate balances. Our efforts to improve operating efficiency are on target at the midpoint of the year and we expect to begin realizing these benefits in late 2026 and over the course of 2027. We remain focused on disciplined balance sheet management, strengthening our funding and liquidity profile, and maintaining a strong capital position. Second quarter results reflect improved performance positioning the Company for accelerated growth in the second half of 2026 and beyond."

Second Quarter Insights:

•		Core banking revenues remained steady.
•		Cost of total deposits was flat at 2.04% for both the first and second quarters of 2026.
•		A recapture of provision for credit losses on loans of $337,000 was recorded in the second quarter of 2026, compared to a recapture of $13,000 for the preceding quarter and a recapture of $296,000 for the second quarter of 2025.
•		First Fed total risk-based capital ratio remained relatively stable at 13.4% for the current quarter compared to 13.5% in the first quarter of 2026, and 13.1% for the second quarter of 2025.
•		Total assets decreased $8.6 million, or 0.4%, to $2.12 billion at June 30, 2026 from $2.13 billion at March 31, 2026, and decreased $70.5 million, or 3.2%, from $2.20 billion at June 30, 2025.
•		Net loans receivable, excluding loans held for sale, decreased $15.9 million, or 1.0%, to $1.60 billion at June 30, 2026 from $1.61 billion at March 31, 2026, and decreased $50.1 million, or 3.0%, from $1.65 billion at June 30, 2025.
•		Customer deposits increased $11.3 million, or 0.7%, to $1.55 billion at June 30, 2026 from $1.54 billion at March 31, 2026, and increased $1.1 million, or 0.1%, from $1.55 billion at June 30, 2025.
•		Brokered deposits decreased $5.5 million, or 8.6%, to $58.6 million at June 30, 2026 from $64.1 million at March 31, 2026, and decreased $48.3 million, or 45.2%, from $106.9 million at June 30, 2025.
•		FHLB advances decreased $15.0 million, or 5.4%, to $265.0 million at June 30, 2026 from $280.0 million at March 31, 2026, and decreased $35.0 million, or 11.7%, from $300.0 million at June 30, 2025.

Selected Quarterly Financial Ratios:

	As of or For the Quarter Ended															As of or For the Six Months Ended June 30,
	June 30, 2026			March 31, 2026			December 31, 2025			September 30, 2025			June 30, 2025			2026			2025
Performance ratios: ⁽¹⁾
Return on average assets		0.06	%		0.00	%		0.07	%		0.15	%		0.68	%		0.03	%		-0.50	%
Return on average equity		0.78			0.02			0.96			2.10			10.00			0.40			-7.15
Net interest margin ⁽²⁾		2.95			3.03			3.00			2.91			2.83			2.99			2.80
Efficiency ratio ⁽³⁾		101.3			101.4			92.0			104.9			78.0			101.4			96.4
Equity to total assets		7.45			7.36			7.46			7.32			6.82			7.45			6.82
Book value per common share	$	16.66		$	16.52		$	16.61		$	16.33		$	15.85		$	16.66		$	15.85
Tangible performance ratios: ⁽¹⁾
Tangible common equity to tangible assets ⁽⁴⁾		7.39	%		7.30	%		7.40	%		7.26	%		6.76	%		7.39	%		6.76	%
Return on average tangible common equity ⁽⁴⁾		0.79			0.02			0.97			2.12			10.10			0.40			-7.22
Tangible book value per common share ⁽⁴⁾	$	16.52		$	16.38		$	16.47		$	16.18		$	15.70		$	16.52		$	15.70
Capital ratios (First Fed): ⁽⁵⁾
Tier 1 leverage		9.6	%		9.6	%		9.5	%		9.3	%		9.1	%		9.6	%		9.1	%
Common equity Tier 1		12.4			12.4			12.5			12.7			12.0			12.4			12.0
Total risk-based		13.4			13.5			13.6			13.7			13.1			13.4			13.1

(1)	Performance ratios are annualized, where appropriate.
(2)	Net interest income divided by average interest-earning assets.
(3)	Total noninterest expense as a percentage of net interest income and total other noninterest income.
(4)	Non-GAAP financial measure; see "Additional Information - Non-GAAP Financial Measures" later in this release for definitions and a reconciliation to the most comparable GAAP financial measure.
(5)	Current period capital ratios are preliminary and subject to finalization of the FDIC Call Report.

Net Interest Income and Margin

Total interest income increased $121,000 to $25.5 million for the second quarter of 2026, compared to $25.3 million for the preceding quarter, and decreased $1.7 million compared to $27.1 million in the second quarter of 2025. Interest income increased during the second quarter of 2026 primarily due to 2026 purchases of investment securities. Average investment securities balances and yields increased compared to the preceding quarter as a result of purchases. Average real estate loan balances decreased while average consumer and commercial business loan balances increased over the preceding quarter. The yield on interest-earning assets decreased by 2 basis points to 5.30% compared to the preceding quarter, primarily due to a reduction in average balances of loans receivable and interest-earning deposits in banks.

Total interest expense increased $388,000 to $11.3 million for the second quarter of 2026, compared to $10.9 million for the preceding quarter, and decreased $1.7 million compared to $12.9 million in the second quarter of 2025. Interest expense increased in the second quarter of 2026 primarily due to the transition of the Company's subordinated debt from a fixed rate to a floating rate at the end of March 2026. Higher volumes of customer deposits were partially offset by a reduced volume of brokered CDs. Interest paid on customer deposit accounts also increased compared to the preceding quarter due to an increase in CD and money market average balances combined with higher rates paid on non-maturity deposits. As a result of these second quarter changes, the total cost of funds increased 5 basis points to 2.42% compared to the preceding quarter.

The net interest margin decreased to 2.95% for the second quarter of 2026, from 3.03% for the preceding quarter but increased from 2.83% for the second quarter of 2025.

Noninterest Income and Expense

Noninterest income was flat at $2.0 million for the second and first quarters of 2026.

Noninterest expense decreased $291,000 to $16.4 million for the second quarter of 2026, compared to $16.7 million for the preceding quarter. The decline resulted from lower data processing and compensation costs, partially offset by increased legal and consulting fees recorded in professional fees. Legal fees remain elevated due to the Company's continued defense of ongoing legal matters. Consulting fees increased as several projects to improve operating efficiency were launched during the second quarter of 2026.

Allowance for Credit Losses on Loans ("ACLL") and Credit Quality

The ACLL decreased $514,000 to $16.3 million at June 30, 2026, from $16.8 million at March 31, 2026. The ACLL as a percentage of total loans was 1.01% at June 30, 2026, a decrease from 1.03% at March 31, 2026, and a decrease from 1.10% at June 30, 2025. A $337,000 recapture of loan provision expense for the quarter ended June 30, 2026, was the result of a $444,000 decrease in the overall pooled loan reserve and a $70,000 decrease in reserves on individually evaluated loans, partially offset by $177,000 in net charge-offs. The change in pooled loan reserve was driven by lower loss factors applied to commercial real estate and multi-family loans combined with decreased loan balances in multi-family and commercial business loans. Decreases to the pooled loan reserve balance were partially offset by higher loss factors applied to commercial business and home equity loan balances at the end of the current quarter. The pooled loan reserve loss rates were impacted by higher unemployment forecasts partially offset by a mild improvement in gross domestic product.

Nonperforming loans decreased $971,000 to $20.7 million at June 30, 2026, from $21.7 million at March 31, 2026. Current quarter activity included principal payments totaling $1.1 million and net charge-offs on nonperforming loans totaling $216,000. The decreases were partially offset by the transition into nonaccrual status of loans totaling $1.1 million across multiple loan categories. ACLL to nonperforming loans increased slightly to 79% at June 30, 2026, from 78% at March 31, 2026. This ratio increased compared to the preceding quarter despite a reduction in nonperforming loan balances.

Classified loans decreased $9.1 million to $25.5 million at June 30, 2026, from $34.6 million at March 31, 2026, primarily due to payoffs totaling $14.2 million, principal payments totaling $1.0 million, and net charge-offs totaling $216,000. The decreases were partially offset by $5.6 million of new downgrades across multiple loan categories. Four collateral-dependent loans totaling $18.3 million account for 72% of the classified loan balance at June 30, 2026.

	For the Quarter Ended
ACLL ($ in thousands)	June 30, 2026			March 31, 2026			December 31, 2025			September 30, 2025			June 30, 2025

Balance at beginning of period	$	16,823		$	16,987		$	16,203		$	18,345		$	20,569
Charge-offs:
Commercial real estate		—			(3	)		(329	)		(656	)		(15	)
Construction and land		(200	)		(171	)		(1,027	)		(483	)		—
Auto and other consumer		(125	)		(276	)		(123	)		(106	)		(273	)
Commercial business		(34	)		(133	)		(964	)		(1,005	)		(2,823	)
Total charge-offs		(359	)		(583	)		(2,443	)		(2,250	)		(3,111	)
Recoveries:
Commercial real estate		—			—			—			6			20
Construction and land		—			—			—			—			5
Auto and other consumer		109			50			34			47			74
Commercial business		73			382			2,727			675			1,084
Total recoveries		182			432			2,761			728			1,183
Net loan (charge-offs) recoveries		(177	)		(151	)		318			(1,522	)		(1,928	)
(Recapture of) provision for credit losses		(337	)		(13	)		466			(620	)		(296	)
Balance at end of period	$	16,309		$	16,823		$	16,987		$	16,203		$	18,345

Average total loans	$	1,604,872		$	1,613,526		$	1,622,476		$	1,650,340		$	1,658,723
Annualized net charge-offs (recoveries) to average outstanding loans		0.04	%		0.04	%		-0.08	%		0.37	%		0.47	%

Asset Quality ($ in thousands)	June 30, 2026			March 31, 2026			December 31, 2025			September 30, 2025			June 30, 2025
Nonaccrual loans:
One-to-four family	$	1,627		$	2,521		$	2,272		$	2,345		$	2,274
Commercial real estate		9,449			9,619			9,745			3,439			4,095
Construction and land		4,164			4,164			5,146			6,037			13,063
Home equity		159			53			53			9			10
Auto and other consumer		1,332			1,280			1,086			1,072			410
Commercial business		3,997			4,062			4,293			470			514
Total nonaccrual loans		20,728			21,699			22,595			13,372			20,366
Other real estate owned		1,568			1,380			1,380			1,377			1,297
Total nonperforming assets	$	22,296		$	23,079		$	23,975		$	14,749		$	21,663

Nonaccrual loans as a % of total loans ⁽¹⁾		1.28	%		1.33	%		1.39	%		0.82	%		1.22	%
Nonperforming assets as a % of total assets ⁽²⁾		1.05			1.08			1.14			0.70			0.99
ACLL as a % of total loans		1.01			1.03			1.04			1.00			1.10
ACLL as a % of nonaccrual loans		78.68			77.53			75.18			121.17			90.08
Total past due loans to total loans		1.09			1.18			1.21			0.88			1.17

(1)	Nonperforming loans consists of nonaccruing loans and accruing loans more than 90 days past due.
(2)	Nonperforming assets consists of nonperforming loans (which include nonaccruing loans and accruing loans more than 90 days past due), real estate owned and repossessed assets.

Financial Condition and Capital

Continued disciplined balance sheet management resulted in lower borrowings and reduced reliance on higher-cost brokered deposits while maintaining stable capital levels.

Investment securities increased $14.0 million, or 5.1%, to $287.0 million at June 30, 2026, compared to $273.0 million three months earlier, and decreased $16.5 million compared to $303.5 million at June 30, 2025. Purchases totaling $27.8 million and a $535,000 decrease in net unrealized losses were partially offset by maturities totaling $9.7 million and regular principal payments totaling $4.6 million during the second quarter of 2026. The estimated average life of the securities portfolio was approximately 6.4 years at June 30, 2026, 6.8 years at the preceding quarter end and 7.6 years at the end of the second quarter of 2025. The effective duration of the portfolio was approximately 4.6 years at June 30, 2026, compared to 4.7 years at the preceding quarter end and 4.9 years at the end of the second quarter of 2025.

Investment Securities ($ in thousands)		June 30, 2026		March 31, 2026		June 30, 2025	Three Month % Change		One Year % Change
Available for Sale at Fair Value
Municipal bonds	$	79,990	$	79,565	$	77,324	0.5	%	3.4	%
U.S. government agency issued asset-backed securities (ABS agency)		11,371		11,632		12,298	-2.2		-7.5
Corporate issued asset-backed securities (ABS corporate)		6,615		7,676		13,105	-13.8		-49.5
Corporate issued debt securities (Corporate debt)		50,991		37,392		55,760	36.4		-8.6
U.S. Small Business Administration securities (SBA)		5,362		5,820		7,504	-7.9		-28.5
Mortgage-backed securities:
U.S. government agency issued mortgage-backed securities (MBS agency)		95,002		97,968		96,014	-3.0		-1.1
Non-agency issued mortgage-backed securities (MBS non-agency)		37,697		32,932		41,510	14.5		-9.2
Total securities available for sale	$	287,028	$	272,985	$	303,515	5.1		-5.4

Net loans receivable, excluding loans held for sale, decreased $15.9 million, or 1.0%, to $1.60 billion at June 30, 2026, from $1.61 billion at March 31, 2026, and decreased $50.1 million, or 3.0%, from $1.65 billion one year prior. Construction loans that converted into fully amortizing loans during the quarter totaled $8.9 million. Regular payments of $50.9 million, loan payoffs of $21.9 million and charge-offs totaling $359,000 outpaced new loan funding totaling $30.2 million and draws on existing loans totaling $20.4 million. Participation in the Northpointe MPP increased $2.7 million and purchased consumer loans increased $3.5 million during the current quarter.

Loans ($ in thousands)		June 30, 2026			March 31, 2026			June 30, 2025		Three Month % Change		One Year % Change
Real Estate:
One-to-four family	$	357,077		$	362,984		$	387,459		-1.6	%	-7.8	%
Multi-family		255,813			270,979			329,696		-5.6		-22.4
Commercial real estate		402,798			403,243			391,362		-0.1		2.9
Construction and land		61,697			62,347			72,538		-1.0		-14.9
Total real estate loans		1,077,385			1,099,553			1,181,055		-2.0		-8.8
Consumer:
Home equity		90,014			86,292			84,927		4.3		6.0
Auto and other consumer		294,982			290,960			280,877		1.4		5.0
Total consumer loans		384,996			377,252			365,804		2.1		5.2
Commercial business		151,000			152,591			117,843		-1.0		28.1
Total loans receivable		1,613,381			1,629,396			1,664,702		-1.0		-3.1
Less:
Derivative basis adjustment		(10	)		(406	)		(860	)	97.5		98.8
Allowance for credit losses on loans		16,309			16,823			18,345		-3.1		-11.1
Total loans receivable, net	$	1,597,082		$	1,612,979		$	1,647,217		-1.0		-3.0

Total deposits increased $5.8 million to $1.61 billion at June 30, 2026, compared to $1.60 billion at March 31, 2026, and decreased $47.2 million compared to $1.65 billion one year prior. During the second quarter of 2026, total customer deposit balances increased $11.3 million and brokered deposit balances decreased $5.5 million. The customer deposit mix reflects increased average money market and CD account balances while average balances of all other customer accounts decreased compared to the preceding quarter. The rates paid on customer interest-bearing deposits increased 3 basis points to 2.32% for the current quarter, compared to 2.29% for the first quarter of 2026. The deposit mix compared to June 30, 2025, reflects a continued shift in average balances of customer accounts to savings and money market accounts from demand deposit and CD accounts, with an overall $4.7 million decrease to average total customer balances. A $72.6 million decrease in the average balance of brokered CDs was the main driver for the year-over-year decrease in total deposits. Rates paid on total interest-bearing deposit accounts decreased 31 basis points compared to the same quarter one year ago.

Deposits ($ in thousands)		June 30, 2026		March 31, 2026		June 30, 2025	Three Month % Change		One Year % Change
Noninterest-bearing demand deposits	$	244,699	$	238,901	$	240,051	2.4	%	1.9	%
Interest-bearing demand deposits		147,019		157,565		144,409	-6.7		1.8
Money market accounts		462,208		449,353		484,787	2.9		-4.7
Savings accounts		241,711		246,533		227,968	-2.0		6.0
Certificates of deposit, customer		453,140		445,110		450,494	1.8		0.6
Certificates of deposit, brokered		58,615		64,120		106,927	-8.6		-45.2
Total deposits	$	1,607,392	$	1,601,582	$	1,654,636	0.4		-2.9

FHLB advances decreased $15.0 million during the current quarter.

Total shareholders’ equity increased to $158.3 million at June 30, 2026, compared to $157.0 million three months earlier, due to increases in the after-tax fair market values of the available-for-sale investment securities portfolio of $418,000, the after-tax fair value of the investment portfolio hedge of $295,000 and net income of $308,000. No shares of common stock were repurchased under the Company's April 2024 Stock Repurchase Plan (the "Repurchase Plan") during the quarter ended June 30, 2026. There are 846,123 shares that remain available for repurchase under the Repurchase Plan.

Capital levels for both the Company and the Bank remain in excess of applicable requirements and the Bank was categorized as "well-capitalized" at June 30, 2026. Preliminary calculations of Common Equity Tier 1 and Total Risk-Based Capital Ratios at June 30, 2026, for the Bank were 12.4% and 13.4%, respectively.

2025 Awards/Recognition
						Sound Publishing:
Bellingham Best of the Northwest - Best Bank Silver						Best Bank in Clallam County
						Best Lender in Clallam County and West End

About the Company

First Northwest Bancorp (Nasdaq: FNWB) is a financial holding company engaged in investment activities including the business of its subsidiary, First Fed Bank. First Fed is a Pacific Northwest-based financial institution which has served its customers and communities since 1923. Currently First Fed has 16 locations in Washington state including 11 full-service branches. First Fed’s business and operating strategy is focused on building sustainable earnings by delivering a full array of financial products and services for individuals, small businesses, non-profit organizations and commercial customers. First Northwest has also strategically invested in partnerships focused on developing modern financial solutions and a boutique investment banking/accelerator firm. These investments underscore the Company’s commitment to innovation and growth in the financial services sector. First Northwest Bancorp was incorporated in 2012 and completed its initial public offering in 2015 under the ticker symbol FNWB. The Company is headquartered in Port Angeles, Washington.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements relate to, among other things, expectations of the business environment in which we operate, projections of future performance and execution on certain strategies, perceived opportunities in the market, potential future credit experience, including our ability to collect, and include, but are not limited to, statements about our plans, objectives, expectations and intentions that are not historical facts, and other statements often identified by words such as "believes," "expects," "anticipates," "estimates," or similar expressions. These forward-looking statements are based upon current management beliefs and expectations and may, therefore, involve risks and uncertainties, many of which are beyond our control. Our actual results, performance, or achievements may differ materially from those suggested, expressed, or implied by forward-looking statements as a result of a wide variety of factors including, but not limited to: increased competitive pressures; changes in the interest rate environment; the credit risks of lending activities; pressures on liquidity, including as a result of withdrawals of deposits, declines in the value of our investment portfolio or changes in interest rates; risks related to overall economic conditions; geopolitical events; legislative, regulatory, and policy changes; legal proceedings, regulatory investigations and their resolutions; and other factors described in the Company’s latest Annual Report on Form 10-K under the section entitled "Risk Factors," and other filings with the Securities and Exchange Commission ("SEC"), which are available on our website at www.ourfirstfed.com and on the SEC’s website at www.sec.gov.

Any of the forward-looking statements that we make in this press release and in the other public statements we make may turn out to be incorrect because of the inaccurate assumptions we might make, because of the factors illustrated above or because of other factors that we cannot foresee. Because of these and other uncertainties, our actual future results may be materially different from those expressed or implied in any forward-looking statements made by or on our behalf and the Company's operating and stock price performance may be negatively affected. Therefore, these factors should be considered in evaluating the forward-looking statements, and undue reliance should not be placed on such statements. We do not undertake and specifically disclaim any obligation to revise any forward-looking statements to reflect the occurrence of anticipated or unanticipated events or circumstances after the date of such statements, except as required by law. These risks could cause our actual results for 2026 and beyond to differ materially from those expressed in or implied by any forward-looking statements by, or on behalf of, us and could negatively affect the Company’s operations and stock price performance.

For More Information Contact:

Curt Queyrouze, President and Chief Executive Officer

Phyllis Nomura, Chief Financial Officer and EVP

IRGroup@ourfirstfed.com

360-457-0461

FIRST NORTHWEST BANCORP AND SUBSIDIARY

CONSOLIDATED BALANCE SHEETS

(Dollars in thousands, except share data) (Unaudited)

	June 30, 2026			March 31, 2026			December 31, 2025			September 30, 2025			June 30, 2025
ASSETS
Cash and due from banks	$	14,649		$	16,548		$	15,530		$	15,688		$	18,487
Interest-earning deposits in banks		83,709			87,588			69,587			63,482			69,376
Investment securities available for sale, at fair value (amortized cost at each period end of $313,215, $299,707, $295,849, $310,545 and $336,206)		287,028			272,985			270,310			282,608			303,515
Loans held for sale		1,286			1,140			1,063			2,154			1,557
Loans receivable (net of allowance for credit losses on loans at each period end of $16,309, $16,823, $16,987, $16,203, and $18,345)		1,597,082			1,612,979			1,612,028			1,607,825			1,647,217
Federal Home Loan Bank (FHLB) stock, at cost		13,279			13,927			13,105			10,856			14,906
Accrued interest receivable		7,181			7,051			6,498			8,160			8,305
Premises and equipment, net		9,160			8,591			8,464			8,788			8,999
Servicing rights on sold loans, at fair value		3,012			2,999			3,014			3,093			3,220
Bank-owned life insurance ("BOLI"), net		43,305			42,850			42,382			41,889			41,380
Equity and partnership investments		15,441			15,452			15,489			15,048			14,811
Goodwill and other intangible assets, net		1,062			1,062			1,062			1,080			1,081
Deferred tax asset, net		13,664			13,898			13,638			14,168			14,266
Right-of-use ("ROU") asset, net		15,057			15,316			15,596			15,494			15,772
Prepaid expenses and other assets		19,920			21,057			20,129			21,040			32,471
Total assets	$	2,124,835		$	2,133,443		$	2,107,895		$	2,111,373		$	2,195,363

LIABILITIES AND SHAREHOLDERS' EQUITY
Deposits	$	1,607,392		$	1,601,582		$	1,599,101		$	1,653,327		$	1,654,636
Borrowings		313,177			328,160			308,143			259,625			344,108
Accrued interest payable		151			280			1,223			1,145			1,514
Lease liability, net		16,039			16,250			16,439			16,071			16,257
Accrued expenses and other liabilities		28,260			27,514			24,301			24,321			27,790
Advances from borrowers for taxes and insurance		1,503			2,691			1,424			2,356			1,325
Total liabilities		1,966,522			1,976,477			1,950,631			1,956,845			2,045,630

Shareholders' Equity
Preferred stock, $0.01 par value, authorized 5,000,000 shares, no shares issued or outstanding		—			—			—			—			—
Common stock, $0.01 par value, 75,000,000 shares authorized; issued and outstanding at each period end: 9,504,441; 9,499,300; 9,467,925; 9,462,150; and 9,444,963		95			95			95			94			94
Additional paid-in capital		93,986			93,854			93,803			93,646			93,595
Retained earnings		92,015			91,707			91,699			91,317			90,506
Accumulated other comprehensive loss, net of tax		(22,177	)		(22,920	)		(22,398	)		(24,429	)		(28,198	)
Unearned employee stock ownership plan (ESOP) shares		(5,606	)		(5,770	)		(5,935	)		(6,100	)		(6,264	)
Total shareholders' equity		158,313			156,966			157,264			154,528			149,733
Total liabilities and shareholders' equity	$	2,124,835		$	2,133,443		$	2,107,895		$	2,111,373		$	2,195,363

FIRST NORTHWEST BANCORP AND SUBSIDIARY

CONSOLIDATED STATEMENTS OF INCOME

(Dollars in thousands, except per share data) (Unaudited)

	For the Quarter Ended														For the Six Months Ended
	June 30, 2026			March 31, 2026			December 31, 2025		September 30, 2025			June 30, 2025			June 30, 2026			June 30, 2025
INTEREST INCOME
Interest and fees on loans receivable	$	21,997		$	22,000		$	22,431	$	22,814		$	22,814		$	43,997		$	45,045
Interest on investment securities		2,723			2,585			2,971		3,244			3,466			5,308			7,269
Interest on deposits in banks		453			467			473		570			520			920			1,002
FHLB dividends		282			282			262		282			331			564			638
Total interest income		25,455			25,334			26,137		26,910			27,131			50,789			53,954
INTEREST EXPENSE
Deposits		8,033			7,930			8,648		9,083			9,552			15,963			19,289
Borrowings		3,249			2,964			2,799		3,258			3,386			6,213			6,625
Total interest expense		11,282			10,894			11,447		12,341			12,938			22,176			25,914
Net interest income		14,173			14,440			14,690		14,569			14,193			28,613			28,040
PROVISION FOR CREDIT LOSSES
Recapture of provision for credit losses on loans		(337	)		(13	)		466		(620	)		(296	)		(350	)		7,474
(Recapture of) provision for credit losses on unfunded commitments		(203	)		91			97		(53	)		(64	)		(112	)		(49	)
(Recapture of) provision for credit losses		(540	)		78			563		(673	)		(360	)		(462	)		7,425
Net interest income after (recapture of) provision for credit losses		14,713			14,362			14,127		15,242			14,553			29,075			20,615
NONINTEREST INCOME
Loan and deposit service fees		1,107			1,122			1,044		1,114			1,095			2,229			2,201
Sold loan servicing fees and servicing rights mark-to-market		162			127			57		85			92			289			287
Net gain on sale of loans		73			76			96		(39	)		44			149			55
Increase in BOLI cash surrender value		455			468			493		539			485			923			857
Income from BOLI death benefit, net		—			—			—		—			—			—			1,059
Other income		208			215			2,000		303			454			423			1,488
Total noninterest income		2,005			2,008			3,690		2,002			2,170			4,013			5,947
NONINTEREST EXPENSE
Compensation and benefits		8,054			8,232			8,042		8,353			4,698			16,286			12,413
Data processing		1,702			2,228			1,990		1,941			1,926			3,930			3,937
Occupancy and equipment		1,538			1,565			1,539		1,505			1,507			3,103			3,099
Supplies, postage, and telephone		384			298			332		344			346			682			644
Regulatory assessments and state taxes		581			534			688		558			501			1,115			980
Advertising		245			304			290		282			299			549			564
Professional fees		2,305			2,026			1,957		2,668			1,449			4,331			2,226
FDIC insurance premium		387			363			424		411			463			750			897
Legal settlement		—			—			—		(10	)		—			—			5,750
Other expense		1,197			1,134			1,640		1,338			1,576			2,331			2,255
Total noninterest expense		16,393			16,684			16,902		17,390			12,765			33,077			32,765
Income (loss) before provision for (benefit from) income taxes		325			(314	)		915		(146	)		3,958			11			(6,203	)
Provision for (benefit from) income taxes		17			(320	)		533		(948	)		297			(303	)		(828	)
Net income	$	308		$	6		$	382	$	802		$	3,661		$	314		$	(5,375	)

Basic and diluted earnings per common share	$	0.03		$	-		$	0.04	$	0.09		$	0.42		$	0.04		$	(0.61	)
Diluted weighted average common shares outstanding		8,930,663			8,894,998			8,860,060		8,813,632			8,791,478			8,911,965			8,765,335

FIRST NORTHWEST BANCORP AND SUBSIDIARY

ADDITIONAL INFORMATION

(Dollars in thousands) (Unaudited)

Selected Loan Detail	June 30, 2026		March 31, 2026		December 31, 2025		September 30, 2025		June 30, 2025
Construction and land loans breakout
1-4 Family construction	$	5,682	$	18,802	$	21,954	$	29,961	$	39,040
Multifamily construction		14,826		12,144		10,109		15,660		14,728
Nonresidential construction		35,749		25,758		23,005		16,484		12,832
Land and development		5,440		5,643		6,200		5,688		5,938
Total construction and land loans	$	61,697	$	62,347	$	61,268	$	67,793	$	72,538

Auto and other consumer loans breakout
Triad Manufactured Home loans	$	131,367	$	131,406	$	132,287	$	133,425	$	135,537
Woodside auto loans		152,748		147,444		137,678		131,800		127,828
First Help auto loans		6,430		7,570		8,491		9,561		11,221
Other auto loans		346		468		586		767		1,016
Other consumer loans		4,091		4,072		4,460		4,671		5,275
Total auto and other consumer loans	$	294,982	$	290,960	$	283,502	$	280,224	$	280,877

Commercial business loans breakout
Northpointe Bank MPP	$	44,602	$	41,951	$	18,941	$	-	$	-
Secured lines of credit		34,485		40,991		39,783		43,081		41,043
Unsecured lines of credit		2,953		3,351		2,901		2,580		2,551
SBA loans		6,818		5,505		5,645		6,347		6,618
Other commercial business loans		62,142		60,793		63,041		61,152		67,631
Total commercial business loans	$	151,000	$	152,591	$	130,311	$	113,160	$	117,843

Loans by Collateral and Unfunded Commitments	June 30, 2026		March 31, 2026		December 31, 2025		September 30, 2025		June 30, 2025
One-to-four family construction	$	20,583	$	18,571	$	23,815	$	31,627	$	40,509
All other construction and land		41,873		44,000		37,334		36,161		36,129
One-to-four family first mortgage		425,021		440,576		431,222		415,670		420,847
One-to-four family junior liens		19,986		21,169		21,003		20,568		20,116
One-to-four family revolving open-end		62,411		57,027		56,365		58,486		57,502
Commercial real estate, owner occupied:
Health care		31,522		28,177		28,488		28,794		29,091
Office		22,895		18,953		19,216		18,499		19,116
Warehouse		9,270		7,549		7,608		7,684		7,432
Other		71,064		72,556		71,313		73,562		74,364
Commercial real estate, non-owner occupied:
Office		36,297		36,657		40,311		40,917		42,198
Retail		52,465		53,519		50,494		50,839		51,708
Hospitality		62,352		62,729		63,113		63,953		64,308
Other		113,320		115,367		112,307		106,991		93,505
Multi-family residential		256,853		272,025		289,581		297,379		330,784
Commercial business loans		61,958		61,247		66,264		68,062		73,403
Commercial agriculture and fishing loans		30,197		27,982		25,842		23,346		22,443
State and political subdivision obligations		333		333		333		369		369
Consumer automobile loans		159,519		155,443		146,708		142,064		139,992
Consumer loans secured by other assets		133,899		133,825		134,826		136,073		138,378
Consumer loans unsecured		1,563		1,691		1,969		2,088		2,508
Total loans	$	1,613,381	$	1,629,396	$	1,628,112	$	1,623,132	$	1,664,702

Unfunded commitments under lines of credit or existing loans	$	164,614	$	166,899	$	167,489	$	158,118	$	166,589

FIRST NORTHWEST BANCORP AND SUBSIDIARY

NET INTEREST MARGIN ANALYSIS

(Unaudited)

	Three Months Ended June 30,
	2026								2025
	Average			Interest					Average			Interest
	Balance			Earned/		Yield/			Balance			Earned/		Yield/
(dollars in thousands)	Outstanding			Paid		Rate			Outstanding			Paid		Rate
Interest-earning assets:
Loans receivable, net ^{(1) (2)}	$	1,588,321		$	21,997		5.55	%	$	1,639,236		$	22,814		5.58	%
Total investment securities		276,147			2,723		3.96			311,078			3,466		4.47
FHLB dividends		12,020			282		9.41			13,313			331		9.97
Interest-earning deposits in banks		48,783			453		3.72			46,807			520		4.46
Total interest-earning assets ⁽³⁾		1,925,271			25,455		5.30			2,010,434			27,131		5.41
Noninterest-earning assets		143,007								154,145
Total average assets	$	2,068,278							$	2,164,579
Interest-bearing liabilities:
Interest-bearing demand deposits	$	141,339		$	83		0.24		$	164,475		$	240		0.59
Money market accounts		455,356			2,451		2.16			444,135			2,660		2.40
Savings accounts		243,735			921		1.52			228,901			884		1.55
Certificates of deposit, customer		449,938			4,024		3.59			451,712			4,396		3.90
Certificates of deposit, brokered		51,788			554		4.29			124,383			1,372		4.42
Total interest-bearing deposits ⁽⁴⁾		1,342,156			8,033		2.40			1,413,606			9,552		2.71
Advances		252,230			2,633		4.19			275,176			3,041		4.43
Subordinated debt		34,668			616		7.13			34,600			345		4.00
Total interest-bearing liabilities		1,629,054			11,282		2.78			1,723,382			12,938		3.01
Noninterest-bearing deposits ⁽⁴⁾		237,762								243,655
Other noninterest-bearing liabilities		43,529								50,685
Total average liabilities		1,910,345								2,017,722
Average equity		157,933								146,857
Total average liabilities and equity	$	2,068,278							$	2,164,579

Net interest income				$	14,173							$	14,193
Net interest rate spread							2.52								2.40
Net earning assets	$	296,217							$	287,052
Net interest margin ⁽⁵⁾							2.95								2.83
Average interest-earning assets to average interest-bearing liabilities		118.2	%							116.7	%

(1) The average loans receivable, net balances include nonaccrual loans.

(2) Interest earned on loans receivable includes net deferred costs of $1.4 million and $486,000 for the three months ended June 30, 2026 and 2025, respectively.

(3) Includes interest-earning deposits (cash) at other financial institutions.

(4) Cost of all deposits, including noninterest-bearing demand deposits, was 2.04% and 2.31% for the three months ended June 30, 2026 and 2025, respectively.

(5) Net interest income divided by average interest-earning assets.

FIRST NORTHWEST BANCORP AND SUBSIDIARY

ADDITIONAL INFORMATION

(Unaudited)

Non-GAAP Financial Measures

This press release contains financial measures that are not in conformity with generally accepted accounting principles in the United States of America ("GAAP"). Non-GAAP financial measures are presented where management believes the information will help investors understand the Company’s results of operations or financial position and assess trends. Where non-GAAP financial measures are used, the comparable GAAP financial measure is also provided. These disclosures should not be viewed as a substitute for operating results determined in accordance with GAAP, and are not necessarily comparable to non-GAAP performance measures that may be presented by other companies. Other banking companies may use names similar to those the Company uses for the non-GAAP financial measures the Company discloses, but may calculate them differently. Investors should understand how the Company and other companies each calculate their non-GAAP financial measures when making comparisons. Reconciliations of the GAAP and non-GAAP measures are presented below.

Calculations Based on Tangible Common Equity:

	For the Quarter Ended															For the Six Months Ended
($ in thousands, except per share data)	June 30, 2026			March 31, 2026			December 31, 2025			September 30, 2025			June 30, 2025			June 30, 2026			June 30, 2025

Total shareholders' equity	$	158,313		$	156,966		$	157,264		$	154,528		$	149,733		$	158,313		$	149,733
Less: Goodwill and other intangible assets		1,062			1,062			1,062			1,080			1,081			1,062			1,081
Disallowed non-mortgage loan servicing rights		247			312			302			317			372			247			372
Total tangible common equity	$	157,004		$	155,592		$	155,900		$	153,131		$	148,280		$	157,004		$	148,280

Total assets	$	2,124,835		$	2,133,443		$	2,107,895		$	2,111,373		$	2,195,363		$	2,124,835		$	2,195,363
Less: Goodwill and other intangible assets		1,062			1,062			1,062			1,080			1,081			1,062			1,081
Disallowed non-mortgage loan servicing rights		247			312			302			317			372			247			372
Total tangible assets	$	2,123,526		$	2,132,069		$	2,106,531		$	2,109,976		$	2,193,910		$	2,123,526		$	2,193,910

Average shareholders' equity	$	157,933		$	159,532		$	157,588		$	151,376		$	146,857		$	158,728		$	151,620
Less: Average goodwill and other intangible assets		1,062			1,062			1,080			1,081			1,081			1,062			1,082
Average disallowed non-mortgage loan servicing rights		311			302			317			371			415			306			419
Total average tangible common equity	$	156,560		$	158,168		$	156,191		$	149,924		$	145,361		$	157,360		$	150,119

Net income	$	308		$	6		$	382		$	802		$	3,661		$	314		$	(5,375	)
Common shares outstanding		9,504,441			9,499,300			9,467,925			9,462,150			9,444,963			9,504,441			9,444,963
GAAP Ratios:
Equity to total assets		7.45	%		7.36	%		7.46	%		7.32	%		6.82	%		7.45	%		6.82	%
Return on average equity		0.78	%		0.02	%		0.96	%		2.10	%		10.00	%		0.40	%		-7.15	%
Book value per common share	$	16.66		$	16.52		$	16.61		$	16.33		$	15.85		$	16.66		$	15.85
Non-GAAP Ratios:
Tangible common equity to tangible assets ⁽¹⁾		7.39	%		7.30	%		7.40	%		7.26	%		6.76	%		7.39	%		6.76	%
Return on average tangible common equity ⁽¹⁾		0.79	%		0.02	%		0.97	%		2.12	%		10.10	%		0.40	%		-7.22	%
Tangible book value per common share ⁽¹⁾	$	16.52		$	16.38		$	16.47		$	16.18		$	15.70		$	16.52		$	15.70

(1)	We believe that the use of tangible equity and tangible assets improves the comparability to other institutions that have not engaged in acquisitions that resulted in recorded goodwill and other intangibles.