Northwest Bancshares, Inc. · NASDAQ:NWBI
Northwest Bancshares — Investor Presentation (April 2014)
35 slides from Northwest Bancshares's investor presentation, Apr 17, 2014
Slide 1: Northwest Bancshares, Inc.
NORTHWEST BANCSHARES, ING.
Slide 2: NASDAQ: NWBI Current Market Value
NASDAQ: NWBI Current Market Value: $14.82 As of April 15, 2014
Slide 3: Forward-Looking Statements
Forward-Looking Statements 3 This presentation contains forward-looking statements, which can be identified by the use of words such as “estimate,” “project,” “believe,” “intend,” “anticipate,” “plan,” “seek,” “expect” and words of similar meaning. These forward-looking statements include, but are n
Slide 4: Attractive Franchise
Attractive Franchise 4 Northwest Savings Bank Locations Northwest Consumer Discount Company Locations Pennsylvania 138 52 New York 19 0 Ohio 4 0 Maryland 4 0 TOTAL 165 52
Slide 5: Corporate Profile and Overview
5 Corporate Profile and Overview 165 retail banking locations 50 consumer finance locations ($109.2 mil in assets, $2.3 mil in net income for year ended 12/31/13) 2,043 full-time equivalent employees (1,855 full-time and 376 part-time employees) Total assets of $7.88 billion Net loans of $5.81 billi
Slide 6: Highlights for 2013: Franchise Improvement
Highlights for 2013 Franchise – Improvement Opened full-service office in Zelienople, Butler County, PA Opened full-service office in Hershey, PA Consolidated office in Sykesville, PA with DuBois, PA office Closed drive-up facility in Oil City, PA Acquired the Bert Insurance Agency in Erie, PA which
Slide 7: Highlights for 2013: Regulatory Issues
Highlights for 2013 Regulatory Issues Released from the Memorandum of Understanding with FDIC in November 2013 relating to the strengthening of our Compliance Management System. Continued to devote a significant amount of our time and resources to addressing regulatory compliance concerns at a cost
Slide 8: Recognition
Recognition Named by Forbes as “One of America’s 50 Most Trustworthy Financial Institutions (One of only 25 banks on the list) Named to KBW’s Bank Honor Roll based on our 10 years operating results (One of only 31 banks in the USA) Scored very high among banks in the Mid-Atlantic Region in the J.D.
Slide 9: Historic Performance
Historic Performance NORTHWEST : JBANCSHARES, INC.
Slide 10: Loan Portfolio Growth
$7,000,000,000 $6,000,000,000 $5,000,000,000 $4,000,000,000 weu $3,000,000,000 $2,000,000,000 a $1,000,000,000 anual il $0 won Rao 885838 BE8383S8 rc AMTwHO Zoran sssssssesserse SSSHBESSHGSSHSSES SLSSFRANRANANRANNANAA = 1-4 Family Residential Mortgages Home Equity Loans = Consumer Loans = Commercial
Slide 11: Deposit Growth
Deposit Growth 11 Growth Between 2008 and 2013 Deposits ($000) Deposit Growth (%) Checking $541,803 49.2% Savings Deposits $431,339 56.7% MMDA $447,579 62.1% Time Deposits ($790,063) (32.1%) TOTAL $630,668 12.5%
Slide 12: Assets Under Management
Assets Under Management (in millions of dollars) 12
Slide 13: Earnings Per Share
Earnings Per Share (Adjusted for Stock Splits and 2.25x Second-step Conversion) 13
Slide 14: Stock Performance and Per Share Information
Stock Performance and Per Share Information
Slide 15: Price Performance Since IPO
Price Performance Since IPO (11/4/94) 15 COMPARISON OF 5 YEAR CUMULATIVE TOTAL RETURN* Among Northwest Bancshares, Inc., the NASDAQ Composite Index and the NASDAQ Bank Index * $100 invested on 12/31/08 in stock or index, including reinvestment of dividends. Fiscal year ending December, 31.
Slide 16: Accumulated Shareholder Value Since IPO
16 Accumulated Shareholder Value Since IPO
Slide 17: Financial Performance
Financial Performance
Slide 18: Asset Growth
Asset Growth 18 Northwest has demonstrated the ability to both safely leverage its capital and change its strategic direction when necessary. Leveraging Strategy Diversification & Profitability Strategy
Slide 19: Composition of Loan Portfolio
Composition of Loan Portfolio 19 December 2007 December 2013 December December December December December December December 2007 2008 2009 2010 2011 2012 2013 Residential Mortgage 48.9% 47.2% 43.8% 42.9% 42.9% 42.4% 42.8% Home Equity 20.0% 19.6% 19.9% 19.3% 19.3% 18.9% 18.7% Commercial R.E. 18.3% 20
Slide 20: Composition of Deposits
Composition of Deposits 20 20 December 2007 December 2013 December December December December December December December 2007 2008 2009 2010 2011 2012 2013 Checking 19.5% 21.8% 22.3% 23.6% 25.2% 27.9% 29.0% Savings 13.4% 15.1% 16.4% 18.2% 18.5% 20.1% 21.0% Money Market 12.3% 14.3% 14.6% 15.6% 16.7%
Slide 21: Interest Rate Spread
Interest Rate Spread 21 While organic and acquisition growth successfully leveraged Northwest’s capital, net interest spread was relatively flat and below peer averages. Changes in loan and deposit mix were needed to improve profitability ratios.
Slide 22: Earnings Comparison
22 Earnings Comparison 12/31/2013 12/31/2012 12/31/2011 12/31/2010 Amount ($ 000's) % Avg Assets Amount ($ 000's) % Avg Assets Amount ($ 000's) % Avg Assets Amount ($ 000's) % Avg Assets Average Assets $7,931,457 $8,012,506 $8,057,492 $8,119,851 Interest Income $313,038 3.95% $338,038 4.22% $359,228
Slide 23: Highlights for 2013: Shareholder Value
Highlights for 2013 Shareholder Value Earnings Per Share increased from $.67 to $.73 or 9.0% Earnings increased 5% to $66.7 million from $63.6 million in the previous year Dividends paid were $.50 resulting in a dividend yield of approximately 3.5% Market value of stock increased from $12.14 to $14.
Slide 24: Highlights for 2013: Financial
Highlights for 2013 Financial Loan growth of $104 million or 1.8% Continued increase in number of checking accounts (4,392 accounts or 1.8%) and checking account balances ($148 million or 10.1%) Maintained robust tangible common equity ratio (12.76%) Tangible book value per share increased 2.7% to $
Slide 25: Highlights for 2013: Lending and Credit
Highlights for 2013 Lending and Credit Decreased nonperforming assets by $22 million to $126 million, or 1.60% of assets Loans 90 days delinquent now under 1% of loans, the lowest level and dollar amount since 2008 Initiated a specialized small business lending program 25
Slide 26: Asset Quality
Asset Quality NORTHWEST : JBANCSHARES, INC.
Slide 27: Reserve & Charge-Offs History
Reserve & Charge-Offs History 27 ( Dollars in thousands)
Slide 28: Asset Quality
Asset Quality 28 NPAs / Total Assets At June 30, At December 31, 2005 2006 2007 2008 2009 2010 2011 2012 2013 NPLs/Total Loans (%) 0.77 0.92 1.03 1.93 2.35 2.68 2.36 2.14 1.86 Allowance for Loan Losses / NPLs (%) 93.91 92.92 84.22 55.37 56.49 51.49 54.26 60.91 66.12 Allowance for Loan Losses/ Net Lo
Slide 29: Management of Capital
Management of Capital
Slide 30: Northwest's Challenge: Excess Capital
Northwest’s Challenge Excess Capital Assets $7,871,748,000 Tangible Capital $979,693,000 Targeted Tangible Capital (9.0%) $708,500,000 Excess Capital $271,193,000 Current Earnings $66,739,000 Return on Tangible Equity 6.81% Return on Targeted Tangible Equity 9.42% 31 Solution – We need either more a
Slide 31: Solution to Excess Capital Challenge
Solution to Excess Capital Challenge Grow Assets Internal deposit and loan growth Acquisition of Other Banks or Branches of Other Banks– when they can be completed without significantly diluting tangible book value per share and when the earn back period is within acceptable parameters Return Capita
Slide 32: Payment of $1.00 Per Share Special Dividend
Payment of $1.00 Per Share Special Dividend Announced April 14, 2014 Amount of payment $94,300,000 Impact on return on tangible equity – Increase from 6.81% to 7.54% (using 2013 earnings) Impact on Earnings-per-Share – Insignificant Impact on Return-on-Assets – Insignificant Impact on value of our s
Slide 33: Payment of $1.00 Per Share Special Dividend: Other Benefits
Payment of $1.00 Per Share Special Dividend Other Benefits: Provides cash to our shareholders at a time when cash flow and dividend yield are sorely needed Provides opportunity for investors to reinvest dividends in additional Northwest shares or alternative investments 34
Slide 34: Strategic Goals
Strategic Goals NORTHWEST : JBANCSHARES, INC.
Slide 35: Strategic Focus
Strategic Focus Mission Building Loyalty, Trust and Value among our Employees, Customers, Communities and Shareholders Issues Critical to Our Goals to Enhance Shareholder Value Achieving higher levels of profitability Achieving necessary level of loan growth Continuing to grow our fee based business
Northwest Bancshares — Investor Presentation (April 2014) on 6ix