First Northwest Bancorp · NASDAQ:FNWB
First Northwest Bancorp — Shareholder Meeting (November 2016)
23 slides from First Northwest Bancorp's shareholder meeting presentation, Nov 9, 2016
Slide 1: First Northwest Bancorp Second Annual Shareholders Meeting
First Northwest Bancorp NASDAQ: FNWB Second Annual Shareholders Meeting November 8, 2016
Slide 2: Welcome
Welcome * Call to order ¢ Notice of meeting ¢ Appointment of Inspector of Election * Description of proposals * Proceed to vote ¢ Report on 2016 * Results of vote ¢ Adjournment
Slide 3: Proposals
Proposals |. Election of Directors Il. Advisory vote on the approval of executive compensation Ill. Ratification of appointment of Moss Adams LLP as the Company’s independent auditor for 2017 Preliminary results will be announced following the vote.
Slide 4: Safe Harbor Statement
Safe Harbor Statement Forward-Looking statements Certain matters discussed in this presentation constitute forward-looking statements, within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are not staternents of historical fact, are based on certain a
Slide 5: Strategic Plan and Performance
Strategic Plan and Performance 2016 accomplishments Geographic diversification ¢ Earning asset diversification Technology Initiatives * Company performance 2017 challenges * Improve earnings * Manage excess liquidity * Manage excess capital ¢ Continue product and geographic diversification * Cost as
Slide 6: Board of Directors
Board of Directors Director Board Title ait Since Stephen 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 Director taurenged..Hueth President and Chief Executive Officer F010 Jennifer Zaccardo Direct
Slide 7: Management team
Years with Years in Com pany’ Industry Larry Hueth President and Chief Executive Officer 7 32 Regina Wood EVP, Chief Financial Officer 10 10 Kelly Liske EVP, Chief Banking Officer 10 21 Chris Donohue EVP, Chief Credit Officer 3 38 Jeff Davis EVP, Chief Operations Officer 2 31 Joyce Ruiz SVP, Chief A
Slide 8: Economic Condition
Economic Condition August 2016 County unemployment rates, not seasonally adjusted . Whatcom . 1 Sanuan o7{__ 83% 2016 distressed areas Three-year average | Distressed area’ unemployment rate | unemployment rate (Jan 2013 -Dec 2015) | greeterthan or equal = (not seasonally to 7.5% GaN King [Washingto
Slide 9: Olympic Peninsula Economic Conditions
Olympic Peninsula Economic Conditions Nonfarm industry employment, not seasonally adjusted, in Clallam County (Port Angeles MSA) aati | pr May Jun Jul, Aug Se Dec Nonfarm industry employment, not seasonally adjusted, in Jefferson County 8,600 > = aasdillliniie = Jan Feb Mar Apr Mays Jun Jul. Aug Sep
Slide 10: Expansion Market Economic Conditions
Expansion Market Economic Conditions Nonfarm industry employment, not seasonally adjusted, in Kitsap County (Bremerton MSA) 92,000 90,000 88,000} 82,0001] Jan jul Aug Se Nonfarm industry employment, not seasonally adjusted, in Whatcom County (Bellingham MSA) 92,000 90,000 88,000} 84,000 a = 82,0001
Slide 11: Locations
Locations Olympic Peninsula Port Angeles (4) Administration (T) Downtown (T) Sixth Street Eastside Sequim (2) Sequim Avenue Sequim Village Forks Port Townsend Puget Sound Expansion v Silverdale V Bellingham V_ Bellingham/Fairhaven Mortgage Loan Center v Seattle (1)= Technology service location using
Slide 12: Balance Sheet Assets
Balance Sheet Assets Fiscalyearto date per rter end September Total Assets $in millions Loans Investments. Period to to. Assets Assets 2012 51.9% 35.7% 2013 57.3% 33.7% 2014 62.4% 29.2% 2015 52.1% 38.5% 2016 61.4% 32.1% Sep-15 51.9% 39.5% Sep-16 63.3% 28.8% Investment Securities $ in milions $360.6
Slide 13: Loan Portfolio Diversification
Loan Portfolio Diversification earta date peri 2016 Home Equity Home Equity __ Other Consumer Commercial Real 5% 2% Estate 26% Multifamily Single Family a Residential 49% Construction and, Commercial '2nd Business 3% Single Family Residential 52% 2015 ‘Commercial Real Other Consumer Estate 2% 25% Mu
Slide 14: Loan Geographic Diversification
Loan Geographic Diversificati 2016 Other States 8% Other Washington ax North Olympic Peninsula PugetSound 47% 41% 2015 Otherstates Other 1% Washington 4% North Olympic Peninsula 57%
Slide 15: Asset Quality and Reserves
Asset Quality and Reserves Fiscalyearto date perio Quarter end september 201 00.0% 100.0% 72.9% 15% 9% 02% | | 0.3% 132014201 ONG ALLL to nonperforming loans Nonperforming Assets to Total Assets 05% 1 0.3% 15 Sep-1 rears | 2 126.5% 1a Nonperforming Loans to Total Loans 25% 2.2% 12% 1.0% ALLL to tota
Slide 16: Balance Sheet Liabilities
Balance Sheet Lial Fiscalyearto date per rter end September Deposits $in millions $7763 sma ser $006.9 $047.2 595.0 $6004 $5032 1 | Period 2012 2013 2014 2015 2016 Sep-15 Sep-16 Borrowings $ in millions $105 $100.0 $100.0 $90.0 se09 $00.7 | $75.4 Loans to Deposits 68.7% 75.5% 82.6% 75.4% 85.7% 74.6%
Slide 17: Deposit Product Diversification
Deposit Product Diversification 2016 Certificates of Noninterest Deposit. bearing checking 2% 15% Interest bearing checking 14% ——, 2015 Certificates of Noninterest Deposit bearing checking 23% 2% Interest bearing checking 17%
Slide 18: Deposit Geographic Diversification
Deposit Geographic Diversificatio 2016 Kitsap Whatcom 5% ox Jefferson 15% xitsap 2015 4% Jefferson 14% 18
Slide 19: Balance Sheet Equity
Balance Sheet Equity earta date period: Quarter end september FNWB Equity $100 $77.3 $78.6 $81.0 | | | i) Bank Regulatory Capital Ratios FNWB Regulatory Capital Ratios September 30, 2016 September 30, 2016 20.0% 20.0% paced OF 27.8% 27.8% bostnink
Slide 20: Earnings
Earnings Fiscalyearto date perio Quarter end september Net Interest Income Sin millions sis $19.8 Noninterest Income Sin millions $3.6 | | sar Net Income (Loss) $in millions sao $23 I $5 $ i 20
Slide 21: Earnings
Earnings Fiscalyearto date perio Quarter end september ROAA oa% ji 026% 058% EPS Not Applicable $10.42) EPS $0.33 ROAE 3.39% 294% 2.09% 137% 250% 3.92% so.10 $0.08
Slide 22: Stock Price
Stock Price First Northwest Bancorp (NASDAQ: FNWB) First Northwest Bancorp * IPO January 2015 at $10.00/Share * NASDAQ Global Select Market: FNWB. Period Ended Per Share Information (%) ‘Avg Diluted Shares (actual) First Northwest Bancorp - Stock Price Basle book Male ner sete () (34.80% s2Week High
Slide 23: Thank You
Thank You
First Northwest Bancorp — Shareholder Meeting (November 2016) on 6ix