Finward Bancorp · NASDAQ:FNWD
Finward Bancorp — Investor Presentation (February 2022)
32 slides from Finward Bancorp's investor presentation, Feb 2, 2022
Slide 1: Investor Presentation
> FINWARD BANCORP Investor Presentation Wednesday, February 2, 2022
Slide 2: Finward Bancorp
Finward Bancorp > FINWARD BANCORP ANASDAQ Traded Company - Symbol FNWD eon
Slide 3: Forward-Looking Statements
Febrary 22022 Forward-Looking Statements Forward-Looking Statements This presentation may eran forwardckng statements regercing the iencial performance, business prospects, growth and opraing ststegjes of Fineard Bancorp (FNMD') Fr these ‘statements, FAD chins the potatos of he safe harbor for forar
Slide 4: Overview of Finward Bancorp
Foran 22022 Overview of Finward Bancorp soe l-year old bank headquartered in Munster diana 3 Community ark wih cora competency in commercial lending funded bya formidable wr anst covadepsit franchise Named a Best Bank to Work for in America for 2016-2020 as wells 2 Top 200 Community Bank for 15 cons
Slide 5: Investment Rationale
mc 5 Febrany Investment Rationale ‘+ S.9%TBV + Dvidend CABR since year-end 2013 + Enphesison expending both weath management and business banking Robust & Disciplined Growth Supporting Strong Profitability Organic grouth enka * Core ROAM of 085%" and care RATE of 9594 fr the oar-ended 12/31/2021 by
Slide 6: Corporate History
Corporate History (degre deel sal egies Crete sequin + BesBacaoet sdeittee 0 aa FeePern sc = Saeteee Beas saat pesigssr aspen naar tmelieste iisetapie Membre crete named Chairman = Partoered with yooh Finward Bancorp, Arse staat ihre Riana Baksliday ——eletag gh acsnaneéa —— ssleedon oideceun —" eman
Slide 7: Executive Management Team
Fotrary 2 Executive Management Team Multi-generational leadership ‘team wih decades of combined ‘experience working together Significant insider owmership of {8% aligning interests with shareholders ‘Seasoned banking team with deep ties to core operating markets Risk-aligned corporate culture, promo
Slide 8: Diverse Board of Directors
Febrany Diverse Board of Directors” ‘Year Joined Board Member Age Board avid A Bochnowski a ‘Year Joined Board Member Age Age Board 58 2008 Benjamin aeoows ga Preset BOLD ” as fA tea PARGEO avant frtces ° * 2000 y A sett 7 . i Y m 7003 es Suk ada ae D> FINWARD BANCORP
Slide 9: Dynamic & Attractive Operating Market
Dynamic & Attractive Operating Market 3" Largest MSA Deposit Market 4 Highest MSA HH Income! Deposits (S billions) Population (millions) Income (S ) == US 25 et — $25 Hk a Wong DE. $58 lesdagles lasegle 2 Teste 7 leelges eT ees Woskoge OC bam $073 ning OC Prise is am S68 Paeds eaten mm $635 a Mata b
Slide 10: Disciplined and Experienced Acquiror
Foran 22022 Disciplined and Experienced Acquiror First Federal Savings. ‘ ant ries gem 3S ym Hammond Sank action Onset | | Date April 2014 1 July 2015 1 duly 2018 1 January 2019 danwary 2022 1 1 ' ' ee 1 1 1 1 (sw 3M ! som ' sue ! si73M 1 Ssa3h : % 7 1s is 2 1 1 ' ' 1 1 ' ' E 1 1 I i wm | my sou sam
Slide 11: Acquisition of Royal Financial, Inc. (RYFL)
Acquisition of Royal Financial, Inc. (RYFL) * Royl Financial, as provided banking and francil services nthe Ghicagoland area since 1887 through ts wholy-owned subsidiary Royal Savings Bank = la ‘= Headquartered in Chicago. IL and operates rine ful-services branch locations ate “— ee throughout Chica
Slide 12: Driving Service Excellence
Fobrary 2.2022 Driving Service Excellence Transitioning from customers and features to relationships and solutions Deepen Relationships Focus on what clients need ta thrive Broaden product/service offerings Reduce complexity Drive Efficiency Reduce eye time Improve sles growth Brow into new markets
Slide 13: Well-Balanced, Growing Loan Portfolio
Foran 22022 Well-Balanced, Growing Loan Forttolio ue ‘Orga Loans ar ‘GhegredLoars!™ Conners Ral tts esta a tte + omrcton Sand Deepa Conner Bosees: +My cacee Hames fom er Core competency in commercil lending (45% combined total of CRE and C81) Growing Cl porto of $158 millon ($93.7 milion exc. PPP) a
Slide 14: COVID-19 Impacts
Fobrary 2.2022 COVID-19 Impacts * Prudently helping borrowers unable to Site fea tate = ; meet contractual payment obligations due ‘Homey ‘end acturd Homes smitty to COVID- Contes lan Deelgt 55 1% = Consistent with regulatory guidance, consider deferrals/ modifications if borrower's cash flow impact
Slide 15: Conservative Approach to Credit
Foran 22022 Conservative Approach to Credit * Experienced banking tam with dap krawage of the Chicago area market empovered tobe relationship bankers (not just landers) ‘= Prudantris identification and mitigation processes in place to prascivelyaddressrist inthe loan porta Credit Philosophy ‘= Conpa
Slide 16: Stable and Growing Core Deposit Franchise
Foran 22022 Stable and Growing Core Deposit Franchise ‘Organic Depts = tcgareddeyt! ve ing = Savings ie 9% Core™ * Formidable and wel established core depos franchise proves low-cost source of funding for lan origination 7%loans aps provides ale aun fr loan growth 89% of teal deposit are non-maturiy
Slide 17: Core Earnings Power
a Febrany Core Earnings Power Sia sxcper sry mm orcone mm BP Necane more *© Strong earrings continue to acrate tn and build capital = Lowcost funding alos for sling the blanc sheet effienty i) 8415 * Success execution of MBA strategy resulng in realized synergies mare then saat! sansa 96183 accounti
Slide 18: High Quality, Recurring Revenues
Foran 22022 High Quality, Recurring Revenues Sold netinterest margin trroughut the ecanaic cycle driven by ~ Top quartile costo deposits ~ Well raragad/iversifed loan portili witha commercial facus Nosinterestincomeis a meaningful component of revenues Flsble mortgage banking operation capable of sc
Slide 19: Diversified Sources of Fee Income
Fobrary 2.2022 Diversified Sources of Fee Income Vk eon " BaincaSleaflome WFneBSercethares mesthMingene = Gon Sale Secoies m Other * Mortgage banking, serv income streams are all internally developed ame wealth management and other narntaest Recurring fe income continues tobe buttressed by strong ga
Slide 20: Focused Expense Management
Febrany 22022 Focused Expense id al Steer amore * Investments in care = Longrterm goal * Long-term goal of core Ni FINWARD BANCORP
Slide 21: Robust Capital Levels
Fobrary 2.2022 Robust Capital Levels * Regulatory capital levels in excess of well capitalized requirements Toate FP) sega FP) TCE and regulatory capital ratios demonstrate a consistent abiity to 265 a4 5 988 358 Brealaos petals 52% goNaON gay 7N entity BES Ay ‘= Have a capital plan in place that sa
Slide 22: Reliable Stewards of Capital
Foran 22022 Reliable Stewards of Capital * Commitment to growing tangible book value per share: eDdena CAR BH ( Spring organi growth SS 8 ae ie (2) Acquisitions $3338 Capi ma 8 wm Aa $03 s2a57 (3) Returning capital to shareholders = Retaining capital necessary ta support arganic grawth initiatives |
Slide 23: Recap of Franchise Highlights
Recap of Franchise Highlights VE stati and Invested seat om Track Record of ee Growth and Profitability = Praducing long-term aa He Ses roiSh ese [2H i * Future profitaity focused Investing to Position For the Future * levestingin all business ines wih a focus on: () deepening relationship; (2) driv
Slide 24: Thank You
THANK YOU BANCORP
Slide 25: Appendix
APPENDIX BANCORP.
Slide 26: Board of Directors
Fobrary 2.2022 Board of Directors” Year doined Board Member Age Beard Experience Gaidhikcmlh oy gy hin wd sinh ea es Chairman Honored by ina and former Chairman cf Amari Ce Became ¥P 6 00 ofthe Company in 208 promoted to President in 08 and became CO in 208 Eejain Bohra 7 pes 4 OH Commitee of Americ
Slide 27: Well-Positioned Securities Portfolio
Fobrary 2.2022 Well-Positioned Securities Portfolio va pcPOC sO 18% 02% oy ‘= Began investing excess liquidity into securities portfolio in 04'20 to enhance net interest margin 1 Nesiipal * Asof 147, 98% of portfolio consisted of municials and mortgege Eien ee backed securities 1 US. Government Spon
Slide 28: Historical Financial Summary
E Historical Financial Summary cal Yar Ended December ai Shtowsands, except per share cota Be ean 7 Za “etal Aosets 027280 06.158 sino Teal Oeposts a008 870706, 4asa201 “eble Common Equity saue soar 1.3m TePar Sn ss103 sos S101 TOE NTAG" oo % ea % 9% 90% ee Leverage Rao oo vee 5% 6% “el Rsk Based Ca
Slide 29: > FINWARD
> FINWARD BANCORP
Slide 30: Non-GAAP Reconciliation
Non-GAAP Reconciliation > FINWARD a BANCORP
Slide 31: Non-GAAP Reconciliation
Non-GAAP Reconciliation D> FINWARD BANCORP
Slide 32: Non-GAAP Reconciliation
Non-GAAP Reconciliation D> FINWARD BANCORP
Finward Bancorp — Investor Presentation (February 2022) on 6ix