First Northwest Bancorp · NASDAQ:FNWB
First Northwest Bancorp — Shareholder Meeting (May 2020)
23 slides from First Northwest Bancorp's shareholder meeting presentation, May 6, 2020
Slide 1: 2020 Annual Meeting
2020 ANNUAL MEETING First Federal & First Northwest Bancorp
Slide 2: Safe Harbor Statement
SAFE HARBOR STATEMENT This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on the current beliefs and expectations of First Northwest Bancorp’s management and on information available to First Nor
Slide 3: About First Northwest Bancorp "FNWB"
ABOUT FIRST NORTHWEST BANCORP “FNWB” Bank holding company for First Federal, a growing $1.3 billion asset bank headquartered in Port Angeles, Washington First Federal is a Washington state-chartered savings bank, founded in 1923 NASDAQ ticker symbol “FNWB” 13 locations strong: 8 banking locations (i
Slide 4: Experienced, but #Young, Management Team
EXPERIENCED, BUT #YOUNG, MGMT. TEAM Matt Deines (age 46) • President & CEO of the Bank since August 2019, and President & CEO of the President and Company since December 2019. Former EVP/CFO of Liberty Bank and SFBC Chief Executive Officer • Over 20 years of banking experience (MBA, inactive CPA) Te
Slide 5: Banking Branch Footprint
BANKING BRANCHFOOTPRINT FOOTPRINT •136 locations: branches in Clallam and Jefferson • counties8 banking locations (6 Branches, 2 • 2stand-alone branches in KitsapITMs) Countyin Clallam and • 2 branches in Whatcom county • LendingJefferson center Counties in King county • Total2 Branches of 11 locati
Slide 6: COVID – Response
COVID – 19 RESPONSE EMPLOYEES CONSUMER/BUSINESS CONSUMER/BUSINESS COMMUNITY Increased Support and New and Existing Credit Meeting Customer Needs: Community Donations: Resources: Programs: Staff redeployed to call Support of state and Daily meetings between CEO SBA PPP loans for businesses ce
Slide 7: Capital and Liquidity
CAPITAL AND LIQUIDITY Tier 1 Common Capital Ratio 15.0% 14.0% 14.2% 14.0% 13.6% 13.5% 13.0% March 31, 2020 12.0% 12.0% 11.0% On Balance Sheet Liquidity 10.0% Cash $ 107,164 9.0% 1Q19 2Q19 3Q19 4Q19 1Q20 Investments $ 317,520 Encumbered ($ 105,613) Tangible Book Value Per Share Unencumbered $ 211,907
Slide 8: High Risk Industry Concentrations
HIGH RISK INDUSTRY CONCENTRATIONS Outstanding Total % of Gross Average Balance Commitment Loans LTV Hospitality $ 49,286,863 $ 53,146,948 5.44% 61.36% Restaurant 2,119,448 2,218,841 0.23% 59.84% Gaming 3,962,884 5,999,994 0.44% 80.00% Travel/Tourism 657,406 687,406 0.07% 43.09% Oil & Gas 216,072 437
Slide 9: Paycheck Protection Program and Loan Modifications
PAYCHECK PROTECTION PROGRAM AND LOAN MODIFICATIONS As of May 4, 2020 First Federal processed approvals for 350 loans through the SBA’s Payroll Protection Program. Total dollars of loans approved were $23.4 million. The average loan amount was $81,000. Through the application process, companies which
Slide 10: Strategies for the Company Today
STRATEGIES FOR THE COMPANY TODAY Strategic Goals Financial Goals • Enhance Digital Offerings • Leverage/Scale current fixed costs and excess capital • Expand in existing Markets • Generate organic and wholesale growth to increase • Invest in Human Capital NIM and reduce efficiency ratio • Leverage D
Slide 11: Opportunity to Leverage: Three Pronged Approach
Will be a 13.5% 88% Loan to three pronged TCE/Assets* Deposit ratio* approach OPPORTUNITY TO LEVERAGE Relationship Digital Wholesale *As of December 31, 2019 11
Slide 12: 2019 Financial Highlights
2019 FINANCIAL HIGHLIGHTS 2019 net income totaled $9.0 million, up from the record of $7.1 million generated in 2018; Basic and diluted earnings per share was $0.91 in 2019, compared to $0.68 for 2018, and $0.46 for 2017; Originated $199.8 million of new loans in 2019, including $58.0 million of one
Slide 13: Balance Sheet
$1,400 $1,200 $1,000 $800 BALANCE SHEET $600 $400 $200 $- 12/31/15 12/31/16 12/31/17 12/31/18 12/31/19 $ in millions Net Loans Total Deposits Total Assets 13
Slide 14: Diversified Loan Portfolio
DIVERSIFIED LOAN PORTFOLIO 14
Slide 15: Deposit Portfolio
Savings 17% Certificates of Deposit DEPOSIT 31% Total Deposits PORTFOLIO $1.0 Billion at 12/31/19 Transaction Accounts 27% Money Market Accounts 25% 15
Slide 16: Deposit Market Share: Clallam and Jefferson Counties
DEPOSIT MARKET SHARE Clallam and Jefferson Counties Clallam County 2019 Market RankInstitution (ST) Branches Deposits ($) Share (%) 1 First Northwest Bancorp (WA) 7 661967 35.09 2 Sound Financial Bancorp Inc. (WA) 2 334,492 17.73 3 FS Bancorp Inc. (WA) 2 161,663 8.57 4 Wells Fargo & Co. (CA) 2 149,1
Slide 17: Deposit Market Share: Kitsap and Whatcom Counties
DEPOSIT MARKET SHARE Kitsap and Whatcom Counties Kitsap County 2019 Market Rank Institution (ST) Branches Deposits Share (%) 1 Bank of America Corporation (NC) 5 795,492 23.78 2 Olympic Bancorp Inc. (WA) 11 678,868 20.29 3 JPMorgan Chase & Co. (NY) 6 453,154 13.55 4 Wells Fargo & Co. (CA) 5 384,849
Slide 18: Tangible Common Equity Ratio
21.00% 19.77% TANGIBLE 20.00% COMMON EQUITY 19.00% 18.00% 16.95% 17.00% RATIO 16.00% 15.00% 14.56% 14.00% 13.69% 13.53% 13.00% 12.00% 11.00% 10.00% 9.00% 2015 2016 2017 2018 2019 18
Slide 19: Tangible Book Value Per Share
TANGIBLE BOOK VALUE PER SHARE 19
Slide 20: Return on Assets and Return on Equity
RETURN ON ASSETS AND RETURN ON EQUITY ROAA ROAE 0.80% 6.00% 0.72% 5.13% 0.70% 5.00% 0.58% 0.60% 4.09% 4.00% 0.50% 0.41% 0.43% 0.40% 3.00% 2.78% 0.30% 2.09% 2.00% 0.20% 1.00% 0.10% 0.00% 0.00% 2016 2017 2018 2019 2016 2017 2018 2019 20
Slide 21: Trends for Diluted EPS and ROAE
TRENDS FOR DILUTED EARNINGS PER SHARE (EPS) AND RETURN ON AVERAGE EQUITY (ROAE) EPS ROAE CALENDAR YEAR CALENDAR YEAR 21
Slide 22: Financial Goals and Objectives
1. Properly leverage capital to enhance EPS and ROAE FINANCIAL 2. Grow revenue while maintaining expense GOALS AND discipline to reduce efficiency ratio 3. Maintain market lead in historical markets and OBJECTIVES expand Puget Sound market share 4. Maintain strong credit culture and asset quality 22
Slide 23: Safe Harbor Statement / Questions?
SAFE HARBOR STATEMENT This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on the current beliefs and expectations of First Northwest Bancorp’s management and on information available to First Nor
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