First Northwest Bancorp · NASDAQ:FNWB
First Northwest Bancorp — Shareholder Meeting (November 2017)
20 slides from First Northwest Bancorp's shareholder meeting presentation, Nov 13, 2017
Slide 1: Third Annual Shareholders' Meeting
@ First Northwest Bancorp NASDAQ: FNWB Third Annual Shareholders’ Meeting November 7, 2017
Slide 2: Forward-Looking Statements
Statemen Forward-Looking Statements When used in this presentation the words or phrases “believes,” “expects,” “anticipates,” “estimates” or similar expressions are intended to identify forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Additional
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
Board Title Director Since Steven E. Oliver Chairman of the Board 2001 David A. Blake Vice Chairman of the Board 2005 Lloyd J. Eisenman? —_ Director 1985 David T. Flodstrom Director 2002 Larry Hueth Director and President and Chief Executive Officer 2010 Jennifer Zaccardo Director 2011 Cindy H. Finn
Slide 5: Leadership
Leadership Senior Management Team Years with Years in Name Title Company! Industry Larry Hueth President and Chief Executive 8 33 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 Pacific 62% July 2017 County unemployment rates, not seasonally adjusted 4.0% or ess 4.1% 105.0% 5.1% to 6.0% 6.1% or greater Source: Employment Security Department Washington state esdwa.gov 2016 distressed areas" Three-year average unemployment rate (Jan 2014-Dec 2016) (not seas
Slide 7: Olympic Peninsula
Olympic Peninsula Nonfarm industry employment, not seasonally adjusted, in Clallam County (Port Angeles MSA) sad pad Jan Feb Mar Apr May-Jun 24,000 Nonfarm industry employment, not seasonally adjusted, in Jefferson County a ilelililili pian =" Jan Feb Mar Apr) May Jun Jul, = Aug Oct Dec While employ
Slide 8: Expansion Market
Expansion Market Nonfarm industry employment, not seasonally adjusted, in Kitsap County (Bremerton MSA) lL Mar Apr May Jun Jan Nonfarm industry employment, not seasonally adjusted, in Whatcom County (Bellingham MSA) = Jada ctil Jan Feb Mar Apr May jun jul Aug Nonfarm jobs exceed 90,000 in both Kitsa
Slide 9: Olympic Peninsula
Olympic Peninsula Port Angeles Administration (1)! Downtown (1)! Sixth Street Eastside Sequim Sequim Avenue Sequim Village Forks Port Townsend Puget Sound Expansion Silverdale Bellingham Bellingham/Fairhaven Bainbridge Island? Mortgage Loan Center Seattle (1)- Technologysenice location using Interac
Slide 10: Balance Sheet
Balance Sheet Total Assets Loans Receivable, net 2013 2014 2015 2016 2017 a 2013 2014 2015 2016 2017 a1 $1,150.3 3726.8 s7269 1$1,087.7 i$1,010.1 619.8 11$936.8 795.3 Ma6.2: i 8 i" yy" 1.14, Investment Securities Net fvachnents “ 360.6 riod to Assets to Assets s3eo, se \ 2 s 2013 573% 337% bi a N NI
Slide 11: Portfolio Geographic
1c Portfolio Geographic 2016 2016 ome Egy Other Consumer coy otro her Other Stetes 7 wasington * sty — 2017 2017 Home auty _OtherConsumer other otherstates se 3 Washington jn Mutter Puget Sound * 51% ‘constrctonand and Business
Slide 12: Asset Quality and Reserves
t Quality and Rese Nonperforming Assets to Total Assets 2013 2014 2015 2016 2017 ai 1.5% 0.3% | ue ue ALLL to Nonperforming Loans 2013 2014 2015 2016 2017 ai 445.1% 479.8% 222.3%! 1145.6%| ." 3% I" 8% 2013 2013, Nonperforming Loans to Total Loans 2014 2015 2016 2017 a 12.2% 1.2% a on, [0.5% | a go2%
Slide 13: Deposits
2013 Deposits 2014-2015 20162017 a [$850.9 $823.8 $723.3 [$647.2 pee yo 2013 2014 2015 2016 2017 a 2013 2014 $100.0 Net Loans to Deposits 78.5% 82.6% 75.4% 85.7% 88.2% 85.4% Borrowings 2015 [$105.1 2016 = 2017 $90.0 $80.7 $77.4 ) a $111.7
Slide 14: Deposit Diversification
Deposit Diversification At September 30 for the years presented Geographic 2016 Kitsap 3% Jefferson 15% Jefferson pial Product 2016 centeatesot Deport bewingchecting 22%, a 16% Inerst bering checking 4% Savings 12% 2017 Noninterest Centificatesof bearing checking Deposit / 17% 27% Interest bearing c
Slide 15: Branch Locations
Branch Locations Clallam County Forks Port Angeles 6 Street Eastside Sequim Sequim Village Sequim Avenue Jefferson County Port Townsend Kitsap County Silverdale Bucklin Hill Whatcom County Bellingham Barkley Blvd. Fairhaven $200 $180 $160 $140 $120 $100 $80 360 $40 $20 $0 September 30, 2016 Deposits
Slide 16: FNWB Shareholders' Equity
FNWB Shareholders’ Equity 2013 2014 2015 2016 2017 ai $78.6 | $81.0 8 FNWB Regulatory Capital Ratios - 2016 FNWB Regulatory Capital Ratios - 2017 35.0% sci) one. ae oe 244% 246 a 200% 25.0% 25.0% __ m 16.5% tte 18.7% 15.0% 15.0% saan, 100% 50% s0% 00% 0.0% Tier 1/total Common Equity Ter Tier 1 Capit
Slide 17: Earnings
Earnings Forthe d June 30 for the Jand for the Net Income (Loss) 2013 201420152018 2017 $4.0 $2.7 $2.3 | le }$-(5.1) Noninterest Income Noninterest Expense 2013 2014 2015 2016 2017 ai 2013 2014 2015 2016 2017 a Cee ee $33.0 pysz7.9 |ijs2a.8 wysa7 : - 212 ys224 I” I"
Slide 18: Earnings
Earning Forthe e rthe Jand for the Return on Average Assets Return on Average Equity 2013 2014 2015 2016 2017 2013 2014 2015 2016 2017 10.63% 3.96% 0.48% 2.81% 0.34% 0.41% 3.33% 2.08% (| 1.30% 2.94% 0.58% 3.92% Earnings Per Share 2013 EPS Not Applicable| 2014 EPS Not Applicable 215 ¢ $10.42) 2016 $0
Slide 19: Stock Price
Stock Price Stock Price Volume First Northwest Bancorp (NASDAQ: FNWB) IPO January 2015 at $10/share At the period ende: 6/30/2017 12/31/2016 6/30/2016 Common Shares Outstanding (actual) 11,902,146 12,153,946 12,676,660 Basic Book Value per Share $ 1493 $ 1455 $ 14.97 52 Week Price per Share Highligh
Slide 20: Adjournment
Adjournment Thank You
First Northwest Bancorp — Shareholder Meeting (November 2017) on 6ix