Bank Directors Seminar, Coeur d'Alene, ID

Pacific Northwest Historical M&A Pricing: Tangible Book Value and Earnings

ƒ Average M&A multiples in the Pacific Northwest in 2017 and 2018 are trending above the national average

Pacific Northwest M&A Valuation – Since 2000

350.0%

60.0x

300.0%

50.0x

261.6%

252.7%

246.2%

250.0%

237.7% 237.3%

40.0x

201.5%

200.0% 31.1x

197.7% 190.7%

200.0%

186.5%

29.7x

171.5%

28.4x

30.0x

144.5%

150.0%

138.0%

22.2x 23.1x 21.8x

21.2x

21.0x

20.1x

19.5x

18.6x 19.0x

20.0x

93.0%

21.9x

14.9x

Price / LTM Earnings

100.0%

86.7%

68.4%

Price / Tangible Book Value

14.0x

10.0x

50.0%

0.0%

–

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018*

Average P/TBV

Average P/LTM Earnings

31

Source: S&P Global Market Intelligence, includes pending and completed deals (not all deals report complete deal information) Note: Average data, current as of 8/31/2018

Pacific Northwest Bank Trends

ƒ The total number of banks in the Pacific Northwest (ID, OR and WA) has declined by 73 since the end of 2007 (50% decrease) ƒ De novo activity has largely ceased nationwide over the last 5 years, but activity and interest has picked up over the last year

Total Number of Banks

Banks Sold/Failed vs. De Novo Banks

20

180

18

160

16

140

14

120

12

100

10

80 # of Banks

# of Banks

8

60

6

40

4

20

2

0

0

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018*

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018*

Banks Sold

Bank Failures

De Novo Banks

32

*Includes pending mergers Source: FDIC and S&P Global Market Intelligence as of 8/31/2018