Northwest Bancshares, Inc. · NASDAQ:NWBI
Northwest Bancshares — Investor Presentation (April 2013)
31 slides from Northwest Bancshares's investor presentation, Apr 18, 2013
Slide 1: Northwest Bancshares, Inc.
NORTHWEST BANCSHARES, ING.
Slide 2: 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 3: 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 4: Corporate Profile and Overview
5 Corporate Profile and Overview 165 retail banking locations 52 consumer finance locations ($115.1 mil in assets, $3.2 mil in net income for year ended 12/31/12) 2,042 full-time equivalent employees (1,864 full-time and 356 part-time employees) Total assets of $7.94 billion Net loans of $5.63 billi
Slide 5: Highlights for 2012: Shareholder Value
Highlights for 2012 Shareholder Value Earnings Per Share increased from $.64 to $.68 or 6.25% Earnings decreased slightly from $64.2 million to $63.6 million Stock repurchases – 4.2 million shares at $11.81 Dividends paid - $.60 for a dividend yield of approximately 5% (Prepaid fourth quarter divide
Slide 6: Highlights for 2012: Financial
Highlights for 2012 Financial Loan growth of $151 million or 2.7% Continued increase in number of checking accounts (4,392 accounts) and checking account balances ($148 million or 10.1%) Maintained robust tangible capital ratio of 12.23% Interest rate margin preserved (3.65% in 2012 versus 3.68% in
Slide 7: Highlights for 2012: Franchise - Improvement
Highlights for 2012 Franchise - Improvement Replaced Oil City South Side office Consolidated Offices in Glen Burnie, MD and Johnsonburg and Weedville, PA Acquired The Bert Agency in Erie, Pennsylvania, expanding our insurance and employee benefits business 8
Slide 8: Highlights for 2012: Lending and Credit
Highlights for 2012 Lending and Credit Finished the restructuring of our Commercial Lending and Credit Administration groups – transferred administrative function to Credit Decreased nonperforming assets from $158 million to $145 million – 8.2% decrease Developing specialized small business lending
Slide 9: Highlights for 2012: Regulatory Issues
Highlights for 2012 Regulatory Issues Released from the Consent Order with FDIC in July 2012, one year after it became effective. Signed Memorandum of Understanding (MOU) with the FDIC in November, 2012 which requires an independent study of the adequacy of our compliance staffing as well as the enh
Slide 10: Highlights for 2012: Recognition
Highlights for 2012 Recognition Third consecutive J.D. Power Award for highest customer satisfaction of any bank in the Mid-Atlantic Region Second consecutive KBW Bank Honor Roll recognition – top 50 banks for financial performance over past 10 years Bank Directors’ Magazine “Top 50 (banks) Users of
Slide 11: Operating Performance
Operating Performance INORTHWEST : JBANCSHARES, INC.
Slide 12: Asset Growth
Asset Growth 13 Northwest has demonstrated the ability to both safely leverage its capital and change its strategic direction when necessary. Leveraging Strategy Diversification & Profitability Strategy
Slide 13: Deposit Growth
Deposit Growth 14 Growth Between 2008 and 2012 Deposits ($000) Deposit Growth (%) Checking $507,069 46.1% Savings Deposits $398,550 52.4% MMDA $392,141 54.4% Time Deposits ($571,371) (23.2%) TOTAL $726,389 14.4%
Slide 14: Earnings Per Share
Earnings Per Share (Adjusted for Stock Splits and 2.25x Second-step Conversion) 15
Slide 15: Composition of Loan Portfolio
Composition of Loan Portfolio 16 December 2006 December 2012 December December December December December December December 2006 2007 2008 2009 2010 2011 2012 Residential Mortgage 53.5% 48.9% 47.2% 43.8% 42.9% 42.9% 42.4% Home Equity 19.7% 20.0% 19.6% 19.9% 19.3% 19.3% 18.9% Commercial R.E. 15.6% 18
Slide 16: Composition of Deposits
Composition of Deposits 17 December 2006 December 2012 December December December December December December December 2006 2007 2008 2009 20010 2011 2012 Checking 18.5% 19.5% 21.8% 22.3% 23.6% 25.2% 27.9% Savings 15.1% 13.4% 15.1% 16.4% 18.2% 18.5% 20.1% Money Market 11.1% 12.3% 14.3% 14.6% 15.6% 16
Slide 17: Interest Rate Spread
Interest Rate Spread 18 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 18: Core Earnings Comparison
Core Earnings Comparison 19 12/31/2012 12/31/2011 12/31/2010 % of % of % of Amount Avg Assets Amount Avg Assets Amount Avg Assets Average Assets $8,012,506,000 $8,057,492,000 $8,119,851,000 Net Interest Income $263,976,000 3.29% $267,269,000 3.25% $257,641,000 3.17% Provision for Loan Losses ($26,33
Slide 19: Assets Under Management
Assets Under Management (in millions of dollars) 20
Slide 20: Asset Quality
Asset Quality NORTHWEST : JBANCSHARES, INC.
Slide 21: Reserve & Charge-Offs History
Reserve & Charge-Offs History 22 ( Dollars in thousands)
Slide 22: Asset Quality
Asset Quality 23 NPAs / Total Assets At June 30, At December 31, 2004 2005 2006 2007 2008 2009 2010 2011 2012 NPLs/Total Loans (%) 0.80 0.77 0.92 1.03 1.93 2.35 2.68 2.36 2.11 Allowance for Loan Losses / NPLs (%) 94.35 93.91 92.92 84.22 55.37 56.49 51.49 54.26 60.91 Allowance for Loan Losses/ Net Lo
Slide 23: Stock Performance and Per Share Information
Stock Performance and Per Share Information
Slide 24: Price Performance Since IPO (11/4/94)
Price Performance Since IPO (11/4/94) 25 Since its IPO in 1994, Northwest has significantly outperformed the SNL U.S. Bank Index and the S&P 500 Index.
Slide 25: Computation of Tangible Book Value per Share
Computation of Tangible Book Value per Share Shareholders’ Equity (Capital or Book Value) $1,128,469,000 Intangible Assets $181,280,000 Tangible Capital $947,189,000 Shares Outstanding 93,652,960 Book Value per Share $12.05 Tangible Book Value per Share $10.11 26 TBV per share increases through earn
Slide 26: Accumulated Shareholder Value Since IPO
Accumulated Shareholder Value Since IPO 27 Tangible Book Value per Share Plus Cumulative Dividends Market Value per Share Plus Cumulative Dividends
Slide 27: Management of Capital
Management of Capital
Slide 28: Northwest's Challenge: Excess Capital
Northwest’s Challenge Excess Capital Assets $8,000,000,000 Tangible Capital $947,000,000 Targeted Tangible Capital (8.5%) $680,000,000 Excess Capital $267,000,000 Current Earnings $64,000,000 Return on Tangible Equity 6.76% Return on Targeted Equity 9.41% 29 Solution – We need either more assets to
Slide 29: Solution to Excess Capital Challenge
Solution to Excess Capital Challenge Grow Assets Internal deposit and loan growth Acquisition of Other Banks – when they can be completed without significantly diluting tangible book value per share Return Capital to Our Shareholders Stock Buybacks At 122% of tangible book value, purchases dilute ou
Slide 30: Strategic Direction
Strategic Direction NORTHWEST : ]BANCSHARES, INC.
Slide 31: 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
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