First Northwest Bancorp · NASDAQ:FNWB
First Northwest Bancorp — Q4 2021 Earnings Presentation
25 slides from First Northwest Bancorp's earnings presentation, January 2022
Slide 1: Investor Presentation Fourth Quarter 2021
Investor Presentation Fourth Quarter 2021 January 2022 © 2021 FNWB 1
Slide 2: About First Northwest Bancorp (FNWB)
Bank holding company for First Fed, a growing About First Northwest community bank with $1.9 billion* in assets Bancorp (FNWB) First Fed is a Washington state‐chartered commercial bank, headquartered in Port Angeles where it was founded in 1923 FNWB 12 branches: 6 in Clallam and Jefferson Coun
Slide 3: First Fed Executive Team
First Fed Executive Team Matt Deines Terry Anderson Geri Bullard President and CEO Chief Credit Officer Chief Financial Officer Kelly Liske Chris Riffle Derek Brown Chief Banking Officer Chief Operating Officer | Chief HR and Marketing General Counsel Officer © 2021 FNWB 3
Slide 4: Major Strategic Initiatives
Major Strategic Initiatives Fintech Partners Launch of quin Marketplace Lending Investment in Technology Primary focus is on payments Joint Venture launched in early Focus on leveraging our Deposit Account Opening utilizing our compliance 2021 charter, credit and compliance (Terafina) capabi
Slide 5: Selected Balance Sheet Detail
Selected Balance Sheet Detail ($ in Millions) $1,921 $1,654 $1,581 $1,334 $1,350 $1,307 $1,259 $1,216 $1,142 $1,002 $940 $885 $864 $878 $780 2017 2018 2019 2020 2021 Loans, Net ALLL Total Deposits Total Assets © 2021 FNWB Source: Company documents; Financial data as of December 31, 2021 5
Slide 6: Substantial Growth While Enhancing Asset Mix
Substantial Growth While Enhancing Asset Mix ($ in Thousands) Other BOLI Other BOLI Other BOLI Cash $34,553 $30,027 Cash $44,576 $38,353 $61,275 $39,318 Cash $48,739 3% 2% $65,155 3% 2% 3% 2% $126,01 4% 4% 6 7% Investments Investments Investments $315,580 $364,296 $344,212 24% 22% 18% 2019 2020 2021
Slide 7: Securities Portfolio
Securities Portfolio Investment Portfolio Characteristics as of US Govt Bonds December 31, 2021 1% Book Value: $341.5 Million Corp Debt Market Value $344.2 Million Corp ABS 17% Effective Duration: 5.17 years 4% MBS Average Life: 5.72 years Q4 2021 41% SBA 4% Yield Municipal Securities – Po
Slide 8: Building Revenue
Net Interest Non‐interest Building Revenue Income 84.4% Income 15.6% Total Operating ($ in Thousands) 2019 Revenue: 2019 $6,570 $44.9M 2020 $58,298 2019 2021 $5,773 2020 2021 Net Interest Non‐interest Income Income $43,958 73.5% 26.5% $37,865 Total Operating 2020 Revenue: $59.8M $2,127 $1,763 $1,743
Slide 9: Measurable Improved Profitability
Measurable Improved Profitability Net Income ($ in Thousands) ROAA (%) 0.87% $15,418 0.72% 0.72% 0.58% $10,340 $9,014 0.43% $7,105 $4,938 2017 2018 2019 2020 2021 2017 2018 2019 2020 2021 Efficiency Ratio (%) Net Interest Margin (%) 78.82% 3.51% 76.93% 73.80% 73.03% 3.27% 69.33% 3.20% 3.20% 3.15% 20
Slide 10: Net Interest Income and Margin
Net Interest Income and Margin ($ in Thousands) $16,000 3.70% $15,000 3.60% 3.46% 3.48% 3.58% $14,000 3.58% 3.50% $13,000 3.36% 3.34% 3.40% $12,000 3.30% $11,000 3.17% 3.20% 3.14% 3.10% 3.11% $10,000 3.10% $9,000 3.00% $8,000 2.90% $7,000 2.80% 3Q 2019 4Q 2019 1Q 2020 2Q 2020 3Q 2020 4Q 2020 1Q 2021
Slide 11: Balance Sheet Growth
Balance Sheet Growth Actual (Ex. PPP) PPP Loans ($ in Millions) Total Assets Total Loans and Leases $1,921 $1,350 CAGR¹: 13.0% $1,654 $15 CAGR¹: 14.4% $1,142 $1,307 $15 $1,216 $1,259 $23 $864 $878 $779 $23 2017 2018 2019 2020 2021 2017 2018 2019 2020 2021 Total Deposits Total Equity Loan / Deposit (
Slide 12: Strong Core Deposit Composition
Strong Core Deposit Composition Brokered CDs 12/31/2021 Change from 4% Deposits by Type ($ in thousands) Balance % of Total prior year MMDA & Savings $ 792,435 50.1% $198,858) Retail CDs Non‐Int. Non‐Interest Checking 343,932 21.6% 69,002) 11% Checking 22% Interest Checking 196,970 12.5% (33,350) Re
Slide 13: Loan Portfolio Composition
Loan Portfolio Composition Loans by Type 12/31/2021 Change from Other Consumer PPP 1% ($ in thousands) Balance % of Total prior year 7% Commercial Commercial Real Estate $ 363,299 26.6% $ 66,725) and Industrial 5% 1‐4 Family 294,965 21.6% (14,863) Construction and Development 224,709 16.5% 101,082)
Slide 14: Historically Strong Asset Quality
Historically Strong Asset Quality NPA / Assets (%) Loan Loss Reserve / Total Loans (%) 1.19 0.15 0.15 0.14 0.13 1.11 1.11 1.09 1.08 0.07 Texas Ratio ALLL/Total Loans (Ex. PPP) 2021: 0.65% 2021: 1.13% 2017 2018 2019 2020 2021 2017 2018 2019 2020 2021 NCOs / Avg. Loans (%) 0.08 0.07 Growth focused o
Slide 15: Returning Capital to Shareholders
Returning Capital to Shareholders Status of Share Repurchase Program On October 28, 2020, the Company announced that its Board of Directors had authorized the repurchase and retirement of up to an additional ~1 million shares of its common stock, or 10% of the outstanding shares at that time As
Slide 16: Bank Level Capital Ratios
Bank Level Capital Ratios TCE / TA Leverage Ratio 11.9% 12.5% 12.2% 11.5% 11.4% 10.3% 10.6% 11.1% 10.3% 10.1% 2017 2018 2019 2020 2021 2017 2018 2019 2020 2021 Tier 1 Capital Ratio Total RBC Ratio 18.0% 17.0% 17.5% 19.1% 18.2% 18.7% 13.4% 13.8% 14.6% 14.9% 2017 2018 2019 2020 2021 2017 2018 2019 202
Slide 17: Building Value with Improved ROAE and EPS Growth
Building Value with Improved ROAE and EPS Growth Return on Avg. Equity Diluted Earnings per Share 8.19% $1.66 5.79% $1.10 5.13% 4.09% $0.91 $0.68 2.78% $0.46 2017 2018 2019 2020 2021 2017 2018 2019 2020 2021 Historical Book Value per Share Historical TCE Ratio $18.19 $19.10 14.56% $16.48 13.69% 13.5
Slide 18: Consolidated Historical Balance Sheet
For the Quarter Ending 2020Q4 2021Q1 2021Q2 2021Q3 2021Q4 Assets ($000) Consolidated Total Cash and Cash Equivalents Available for Sale Securities Other Securities 65,155 364,296 5,977 99,271 393,495 3,997 80,722 370,500 5,597 76,120 325,890 4,397 126,016 344,212 5,196 Historical Total Cash & Securi
Slide 19: Consolidated Historical Income Statement
For the Quarters Ending 2020Q4 2021Q1 2021Q2 2021Q3 2021Q4 Income ($000) Consolidated Interest and fees on loans receivable Interest on mortgage‐backed and investment securities Other interest income 11,894 2,018 65 12,541 2,034 58 12,866 2,124 61 14,581 2,138 59 15,041 2,073 95 Historical Interest
Slide 20: First Fed Mission Statement
We design and deliver delightful, accessible, and effortless financial solutions by empowering our team members to improve the lives of those we serve. First Fed Mission Statement © 2021 FNWB 20
Slide 21: Market Expansion
Market Expansion Opened first King County branch on July 26, 2021, after the acquisition of the Bellevue, Washington branch of Sterling Bank and Trust of Southfield, Michigan, adding $65.4 million in deposit accounts. Executed lease to relocate Commercial and Mortgage Lending and Business Center
Slide 22: Market Footprint
Market Footprint 12 branch locations: 5 in Clallam County 1 in Jefferson County 2 in Kitsap County 1 in King County* 3 in Whatcom County * Bellevue branch and team acquired from Sterling Bank and Trust on July 23, 2021. Business Center © 2021 FNWB 22
Slide 23: Leading Deposit Market Share
Leading Deposit Market Share Clallam County, WA Whatcom County, WA Rank Institution (ST) # Branches Deposits ($M) Market Share (%) Rank Institution (ST) # Branches Deposits ($M) Market Share (%) 1 First Northwest Bancorp (WA) 7 1,012 38.7 1 Peoples Bancorp (WA) 9 1,352 24.3 2 Sound Financial Bancorp
Slide 24: Experienced Leadership Collaborating Across PNW
Experienced Leadership Collaborating Across PNW Name Title Location Years with First Fed Years in Industry Matthew P. Deines President, Chief Executive Officer and Director Port Angeles, Seattle 2 20+ Terry Anderson Executive VP, Chief Credit Officer Sequim 3 25+ Derek J. Brown Executive VP, Chief H
Slide 25: Thank You!
Thank You! Contact Matt Deines Geri Bullard President and CEO EVP | CFO matt.deines@ourfirstfed.com geri.bullard@ourfirstfed.com © 2021 FNWB 25
First Northwest Bancorp — Q4 2021 Earnings Presentation on 6ix