First Northwest Bancorp · NASDAQ:FNWB
First Northwest Bancorp — Investor Presentation (January 2020)
21 slides from First Northwest Bancorp's investor presentation, Jan 29, 2020
Slide 1: 2020 Investor Presentation
Exhibit 99.1 2020 INVESTOR PRESENTATION
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”; Current Market Cap $187 Million 13 locatio
Slide 4: Experienced, but #Young, Management Team
EXPERIENCED, BUT #YOUNG, MGMT. TEAM • President & CEO of the Bank since August 2019, and President & CEO of the Company since Matt Deines (age 46) December 2019. President and • Formerly CFO of Liberty Bay Bank and Sound Community Bank. Chief Executive Officer • Over 20 years of banking experience (
Slide 5: Stakeholders: Shareholders, Customers, Community, Employees
STAKEHOLDERS SHAREHOLDERS CUSTOMERS COMMUNITY EMPLOYEES 5
Slide 6: Banking Branch Footprint
(2) BANKING BRANCHFOOTPRINT FOOTPRINT (2) (2) 13• locations:6 branches in Clallam and Jefferson counties • •8 2banking branches locationsin Kitsap County (6 Branches, •2 2stand branches-alone in Whatcom ITMs) countyin Clallam •andLending Jefferson center in Counties King county Total of 11 locations
Slide 7: Strategies for the Bank Today
STRATEGIES FOR THE BANK TODAY Strategic Goals Financial Goals • Enhance digital offerings • Increase Return on Equity and • Deepen presence in existing grow Earnings per Share markets • Leverage infrastructure to reduce • Investment in Human Capital efficiency ratio • Leverage Data to • Lead with or
Slide 8: Opportunity to Leverage
Three- 13.5% 88% Loan to pronged TCE/Assets Deposit ratio approach OPPORTUNITY TO LEVERAGE Relationship Digital Wholesale 8
Slide 9: Q4 2019 Financial Highlights
Q4 2019 FINANCIAL HIGHLIGHTS 4Q2019 net income totaled $2.2 million, down from the record of $2.5 million generated in 3Q19 and up 4.1% compared to $2.1 million in 4Q18; Basic and diluted earnings per share was $0.23 in 4Q19, compared to $0.25 for 3Q19, and increased from $0.21 for 4Q18; Loans recei
Slide 10: Balance Sheet
$1,400 $1,200 $1,000 $800 BALANCE SHEET $600 $400 $200 $- 12/31/15 12/31/2017 12/31/2019 $ in millions Net Loans Total Deposits Total Assets 10
Slide 11: Capital Strength
Tangible Common Equity to Tangible Assets 21.0% 19.8% 20.0% 19.0% CAPITAL 18.0% 17.0% 17.0% STRENGTH 16.0% 15.0% 14.6% 14.0% 13.7% 13.5% 13.0% 12.0% 11.0% 10.0% 9.0% 2015 2016 2017 2018 2019 11
Slide 12: Diversified Loan Portfolio
DIVERSIFIED LOAN PORTFOLIO 12 12
Slide 13: Net Interest Income and Net Interest Margin
$9,500 3.30% 3.25% 3.22% 3.25% 3.19% $8,500 3.20% 3.16% 3.16% 3.17% 3.14% 3.15% 3.10% $7,500 3.10% 3.05% $6,500 3.00% 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 $ in thousands Net Interest Income Net Interest Margin NET INTEREST INCOME AND NET INTEREST MARGIN 13
Slide 14: Deposit Portfolio
Savings 17% Certificates of Deposit DEPOSIT 31% Total Deposits PORTFOLIO $1.0 Billion at 12/31/19 Transaction Accounts 27% Money Market Accounts 25% 14 14
Slide 15: Deposit Market Share: Clallam and Jefferson Counties
DEPOSIT MARKET SHARE Clallam and Jefferson Counties Clallam County 2019 Market Rank Institution (ST) Branches Deposits ($) 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,
Slide 16: 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 17: Tangible Book Value Per Share
TANGIBLE BOOK VALUE PER SHARE 17
Slide 18: Quarterly Return on Assets and Return on Equity
QUARTERLY RETURN ON ASSETS AND RETURN ON EQUITY ROA ROE 0.90% 6.00% 5.65% 0.81% 5.12% 0.80% 4.96% 4.99% 0.70% 0.71% 4.77% 0.68% 5.00% 0.70% 0.64% 0.65% 4.45% 0.60% 4.00% 0.51% 0.51% 3.47% 3.51% 0.50% 3.00% 0.40% 0.30% 2.00% 0.20% 1.00% 0.10% 0.00% 0.00% 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q18 2
Slide 19: 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 Source: S&P Global Market Intelligence 19
Slide 20: Financial Goals and Objectives
1. Properly leverage equity capital to improve 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 qua
Slide 21: Three Year Stock Performance
THREE YEAR STOCK PERFORMANCE Source: S&P Global Market Intelligence 21
First Northwest Bancorp — Investor Presentation (January 2020) on 6ix