Northwest Bancshares, Inc. · NASDAQ:NWBI
Northwest Bancshares — Shareholder Meeting (April 2016)
28 slides from Northwest Bancshares's shareholder meeting presentation, Apr 21, 2016
Slide 1: NWBI NASDAQGS Market Price $13.72, April 19, 2016
“NWBI” NASDAQGS Market Price - $13.72 April 19, 2016
Slide 2: Forward Looking Statements
Forward Looking Statements • 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: Market Coverage
Market Coverage IN Anetwork of offices across four states TL ortnest Bank mca network @ Northwest consumer Discount Company ofice network
Slide 4: Corporate Profile and Overview
Corporate Profile and Overview • 176 full service retail banking locations • 51 consumer finance locations • 2,186 full-time equivalent employees (2,007 full-time and 357 part-time employees) • Total assets of $8.95 billion • Net loans of $7.16 billion • Deposits of $6.61 billion • Tangible sharehol
Slide 5: Historic Performance
HISTORIC PERFORMANCE
Slide 6: Loan Growth and Mix
Loan Growth and Mix $0 $1,000,000,000 $2,000,000,000 $3,000,000,000 $4,000,000,000 $5,000,000,000 $6,000,000,000 $7,000,000,000 $8,000,000,000 199 5 199 6 199 7 199 8 199 9 200 0 200 1 200 2 200 3 200 4 200 5 200 6 200 7 200 8 200 9 201 0 201 1 201 2 201 3 201 4 201 5 1-4 Family Residential Mortgage
Slide 7: Deposit Growth and Mix
Deposit Growth and Mix $0 $1,000,000,000 $2,000,000,000 $3,000,000,000 $4,000,000,000 $5,000,000,000 $6,000,000,000 $7,000,000,000 1 9 9 5 1 9 9 6 1 9 9 7 1 9 9 8 1 9 9 9 2 0 0 0 2 0 0 1 2 0 0 2 2 0 0 3 2 0 0 4 2 0 0 5 2 0 0 6 2 0 0 7 2 0 0 8 2 0 0 9 2 0 1 0 2 0 1 1 2 0 1 2 2 0 1 3 2 0 1 4 2 0 1 5 S
Slide 8: Net Income
Net Income (in millions of dollars) $16.3 $18.1 $20.4 $22.2 $23.9 $30.9 $31.4 $37.9 $40.0 $48.9 $57.8 $53.0 $53.5 $58.9 $48.5 $61.1 $67.0 $67.4 $66.0 $60.6 $68.0 $0.0 $10.0 $20.0 $30.0 $40.0 $50.0 $60.0 $70.0 $80.0 1 9 9 5 1 9 9 6 1 9 9 7 1 9 9 8 1 9 9 9 2 0 0 0 2 0 0 1 2 0 0 2 2 0 0 3 2 0 0 4 D e c
Slide 9: Earnings Per Share
Earnings Per Share (Adjusted for Stock Splits and 2.25x Second-step Conversion) $0.13 $0.20 $0.19 $0.25 $0.25 $0.37 $0.39 $0.46 $0.49 $0.46 $0.44 $0.44 $0.30 $0.53 $0.64 $0.68 $0.73 $0.68 $0.71 $0.00 $0.10 $0.20 $0.30 $0.40 $0.50 $0.60 $0.70 $0.80 1 9 9 7 199 8 1 9 9 9 2 0 0 0 2 0 0 1 2 0 0 2 200 3
Slide 10: Stock Performance and Per Share Information
STOCK PERFORMANCE AND PER SHARE INFORMATION
Slide 11: Price Performance Since IPO
Price Performance Since IPO 11 COMPARISON OF CUMULATIVE TOTAL RETURN SINCE IPO IN 1994 Among Northwest Bancshares, Inc., the NASDAQ Composite Index and the NASDAQ Bank Index
Slide 12: Annual Dividends Per Share
Annual Dividends Per Share $0.00 $0.20 $0.40 $0.60 $0.80 $1.00 $1.20 $1.40 $1.60 $1.80 1 9 9 5 1 9 9 6 1 9 9 7 1 9 9 8 1 9 9 9 2 0 0 0 2 0 0 1 2 0 0 2 2 0 0 3 2 0 0 4 2 0 0 5 2 0 0 6 2 0 0 7 2 0 0 8 2 0 0 9 2 0 1 0 2 0 1 1 2 0 1 2 2 0 1 3 2 0 1 4 2 0 1 5 Current Dividend Yield - $.60/$13.50 = 4.44%
Slide 13: Highlights for 2015
HIGHLIGHTS FOR 2015
Slide 14: Highlights for 2015: Shareholder Value
Highlights for 2015 Shareholder Value • Paid regular dividends of $.56 for an approximate dividend yield that exceeded 4.0%. • The market value of Northwest shares increased $.86, or 6%, during 2015. • The combined return on Northwest shares in 2015 exceeded 10%, placing Northwest in an exclusive gr
Slide 15: Highlights for 2015: Meeting Regulatory Expectations
Highlights for 2015 Meeting Regulatory Expectations • Continued to strengthen our Enterprise Risk Management program to meet the expectations of a $10 billion bank. o Launched projects to strengthen the management of vendor risk, interest rate risk, liquidity risk and credit risk. o Initiated the de
Slide 16: Division Update: Production and Revenue Enhancement Division
DIVISION UPDATE Production and Revenue Enhancement Division Steven G. Fisher, Chief Revenue Officer 16
Slide 17: Division Charge and Areas of Responsibility
Division Charge “Utilizing highly-effective sales processes to enhance customer procurement, deepen customer relationships and promote revenue growth.” Areas of Responsibility Region Presidents and Office Network Commercial Lending Wealth Management Retirement Services Insurance Marketing Sales Seni
Slide 18: Production and Revenue Team Highlights for 2015
Production and Revenue Team Highlights for 2015 • Integration of LNB production personnel • Realignment of commercial lending team: • Mike Bickerton named EVP, Commercial Lending • Neil Hoffman named SVP, C & I Lending • Neil Aquino named SVP, Commercial Real Estate Lending • Forrest Tefft named SVP
Slide 19: Production and Revenue Team Highlights for 2015
Production and Revenue Team Highlights for 2015 • Strengthened our business development teams under the leadership of our seven regional presidents. • Began rolling out the new Northwest brand to better establish Northwest as a full-service commercial bank while shedding our long-standing image as a
Slide 20: Division Update: Technology, Operations, Finance and Support Division
DIVISION UPDATE Technology, Operations, Finance and Support Division William W. Harvey, Jr., Chief Financial Officer 20
Slide 21: Division Charge and Areas of Responsibility
Senior EVP William Harvey Chief Financial Officer Technology, Operations, Finance and Support Division Division Charge “Providing reliable support to all areas of our company while utilizing technology and streamlined processes to drive efficiency in all areas of our operations.” Areas of Responsibi
Slide 22: Technology, Operations, Finance Team Highlights for 2015
Technology, Operations, Finance Team Highlights for 2015 • Full implementation of a modernized retail mortgage and home equity lending process which greatly improved turnaround times and customer satisfaction. • New process utilizes the consistency and efficiency of a staff of centralized, or virtua
Slide 23: 2015 Financial Performance
rN 2015 FINANCIAL PERFORMANCE
Slide 24: Balance Sheet
Balance Sheet (Assets, Liabilities, Shareholders’ Equity) • Total assets grew by $1.18 billion, or 15%, primarily due to the acquisition of Lorain National Bank (LNB). • Loans increased $1.23 billion, or 20.6%, again primarily due to LNB. Organic loan growth was $304.1 million, or 5%. • The number o
Slide 25: Income Statement (Earnings and Shareholder Returns)
12/31/2015 12/31/2014 12/31/2013 Amount ($ 000's) % Avg Assets Amount ($ 000's) % Avg Assets Amount ($ 000's) % Avg Assets A Net Interest Income $263,253 3.16% $248,840 3.15% $251,935 3.18% B Provision for Loan Losses ($9,712) (0.12%) ($20,314) (0.26%) ($18,519) (0.23%) C Noninterest Income $68,836
Slide 26: Asset Quality
Asset Quality • Nonperforming assets decreased by $15.1 million, or 15.6%, to $81.7 million, or just .91% of assets, less than half of the ratio at December 31,2012. • Net loan charge-offs in 2015 were $14.6 million, or .23% of loans, the lowest level of charge-offs since 2007. 26
Slide 27: Strategic Direction
STRATEGIC DIRECTION
Slide 28: Strategic Direction: Critical Issues
Strategic Direction Critical Issues A. Enhancing Shareholder Value • Enhancing Production Volume and Revenue Growth • Improving Profitability and Efficiency • Management of Capital B. Acquisition, Retention and Development of Talent C. Maintaining Effective Risk Management Oversight D. Crossing the
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