First Northwest Bancorp · NASDAQ:FNWB
First Northwest Bancorp — Shareholder Meeting (May 2018)
20 slides from First Northwest Bancorp's shareholder meeting presentation, May 10, 2018
Slide 1: First Northwest Bancorp Fourth Annual Meeting
@ First Northwest Bancorp NWB Fourth Annual May 8, 2018
Slide 2: Forward-Looking Statements
Statemen Forward-Looking Statements When used inthis presentation the words or phrases “believes,” “expects,” “anticipates,” “estimates’ or similar expressions are intended to identify forward-looking staternents within the meaning ofthe Private Securities Litigation Reform Act of 4995. Additional f
Slide 3: Strategic Plan and Performance
Strategic Plan and Performance 2017 Accomplishments * Geographic diversification « Earning asset diversification * Company performance « Share repurchases 2018 Challenges * Continuing to improve earnings and efficiency « Managing excess liquidity and capital * Continuing product and geographic diver
Slide 4: Board of Directors
Board Title Director Since! Steven E. Oliver Chairman of the Board 2001 David A. Blake Vice Chairman of the Board 2005 David T. Flodstrom Director 2002 Larry Hueth Director and President and Chief Executive Officer 2010 Jennifer Zaccardo Director 2011 Cindy H. Finnie Director 2012 Norman J. Tonina J
Slide 5: Leadership
Leadership Senior Management Team Years with Years in Name Title Company! Industry Larry Hueth President and Chief Executive 9 34 Officer Regina Wood EVP. Chief Financial Officer 11 11 Kelly Liske EVP, Chief Banking Officer 11 22 Chris Donohue EVP. Chief Credit Officer 4 39 Jeff Davis EVP, Chief Ope
Slide 6: Economic Condition
Economic Condition December 2017 County unemployment rates, not seasonally adjusted 2016 distressed areas" Three-year average unemployment rate (Jan 2014-Dec 2016) (not seasonally Distressed area unemployment rate greater than or equal 5.0% or less 106.8% adjusted) Washington State 5.70% [Clallam Co
Slide 7: Olympic Peninsula
Olympic Peninsula Nonfarm industry employment, not seasonally adjusted, in Clallam County (Port Angeles MSA) : | lili il wilililt Jan Feb Mar Apr May Jun Jul. Aug Si Dec Nonfarm industry employment, not seasonally adjusted, in Jefferson County Jan Mar Apr May jun ful, Aug) Sep. Oct. Nov_—_—Deec In C
Slide 8: Expansion Market
Expansion Market Nonfarm industry employment, not seasonally adjusted, in Kitsap County (Bremerton MSA) 94,000 8,000. al EE ee Me ke ee ig a [ose Nonfarm industry employment, not seasonally adjusted, in Whatcom County (Bellingham MSA) 96 94,000 42,000 : “ddd dda $2,000 ils 6,000 Jan b Mar = Apr May
Slide 9: Olympic Peninsula Branch Locations
Olympic Peninsula Port Angeles Administration (1)! Downtown (1)! Fairhaven Sixth Street Eastside Sequim Sequim Avenue Sequim Village Forks 6 Pa Townsend Port Townsend Port Angeles C ¢ Sequim Puget Sound Expansion i Silverdale Bainbridge Island Bellingham sine € Bellingham/Fairhaven Seattlé Home Loan
Slide 10: Balance Sheet
Balance Sheet Total Assets 2013 2014-2015, 20162017, 2017-T $1,087.7 1,010.1 $936.8 [js ie Investment Securities “~ $360.6 $260.8 N \ $250 VN $232.2 N \ N a8 sss0 20132014 01S 2007 ‘investment Securities APS investment Securities HIM 91,2157 $340.4 GY; 2017-t 2013, 2014 Period 2013 2014 2015 2016 20
Slide 11: Loan Diversification
Loan Diversific Portfolio June 30, 2017 Geographic June 30, 2017 cries erste Washington December 31, 2017 other seater
Slide 12: Asset Quality and Reserves
et Quality and Re Nonperforming Assets to Total Assets 2013 2014-2015 20162017, 2017-T 1.5% 0.9% 0.8% 0.3% | ii 0.1% u ALLL to Nonperforming Loans 2013 201420152018, 2017,2017.T 570.7% 445.1% 222.3% 135.3 ue Nonperforming Loans to Total Loans 2013 201420152016. 2017, 2017-7 2.2% 1.2% | ja yx ALLL to
Slide 13: Deposits and Borrowings
Deposits Borrowings 2013 201420152016 017, -2017-T 2013 2014-2015 20182017, 2017-T 5885.0 $144.1 $823.8 105.1 $723.3 sro0.0 | |° [$647.2 [em i Net Loans to Date Period Deposits dune 30, 2013 75.5% June 30, 2014 826% June 30, 2015 75.4% dune 30, 2016 85.7% June 30, 2017 88.2% December31, 2017-T 88.0%
Slide 14: Deposit Diversification
Deposit Diversification At the periods presented Geographic June 30, 2017 witsap o% December 31, 2017 vtanp Whatcom Jetferson \ 15% Product June 30, 2017 Certificates senna ‘epost ring checking 26% \ 16% Interest bearing checking ro December 31, 2017 Noninterest Centficatesof /-bearingchecking = cn
Slide 15: Deposit Expansion
Deposit Expansion in mill Branch Locations Clallam County June 30, 2017 Deposits by Branch Forks oi Port Angeles oe O Street om Eastside $100 Sequim = Sequim Village co [| Sequim Avenue $20 oEREEIT, Jefferson County vase ate : . Port Townsend December 31, 2017 Deposits by Branch Kitsap County ine 36
Slide 16: Balance Sheet Equity
Balance Sheet Equity 2013 2014 2015 FNWB Shareholders’ Equity $78.6 $81.0 FNWB Regulatory Capital Ratios December 31, 2017 22.4% 22.4% aia ijdd Tier 1 / total adjusted assets Common Equity Tier Tir 1 Capital to risk: Total Capital to risk Capital torisk- weighted assets weighted assets weighted aset
Slide 17: Earnings
Earning month Net Income (Loss) 2013 2014 2015 2016 2017, 2017-T 34.0 $5.1 $2.3 $2.7 Of i ( | ie $-(5.1) Noninterest Income 2013 2014-2015 2016 2017, 2017-T 95.6 $5.0 4, fise2 sez | < ES § Noninterest Expense 2013 2014-2015, 20162017 2017-T $33.0 ys27.9 [iisz3.8 sanz ys224 l"
Slide 18: Earnings
Earnings Forthe ended. or the p dnd for the six months end Return on Average Assets Return on Average Equity 2013 2014 2015 2016 2017) -2017-T 2013 2014 2015 2016 2017 2017-1 0.41% (948% 2.84% | |333% 2.81% oso (234% ° 2.09% al = (} | | Vi J-0.58% 3.92% Earnings Per Share 2013 EPS Not Applicable 201
Slide 19: Stock Price
Stock Pric First Northwest Bancorp (NASDAQ: FNWB) IPO January 2015 at $10/share At the period ended: 12/31/2017 6/30/2017 12/31/2016 6/30/2016 Common Shares Outstanding (actual) 11,785,507 11,902,146 12,153,946 12,676,660 Basic Book Value per Share $ 1502 $ 1493 $ 1455 § 14.97 52 Week Price per Shar
Slide 20: Adjournment – Thank You
Adjournment Thank You
First Northwest Bancorp — Shareholder Meeting (May 2018) on 6ix