Northwest Bancshares, Inc. · NASDAQ:NWBI
Northwest Bancshares — Merger or Acquisition (May 2010)
10 slides from Northwest Bancshares's merger presentation, May 5, 2010
Slide 1: Announces the acquisition of NexTier
announces the acquisition of N O R T H W E S T
Slide 2: Forward-Looking Statements
Forward-Looking Statements 2 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: NexTier Overview
NexTier Overview 3 NexTier Bank is a privately held commercial bank founded in 1878 and headquartered in Butler, PA, 30 miles north of downtown Pittsburgh At March 31, 2010 the Company had: $584 million in assets $376 million in gross loans $514 million in deposits $18 million in tangible common equ
Slide 4: Transaction Summary
Transaction Summary 4 Acquisition of an extremely attractive core deposit base 38% demand deposits Cost of deposits of 0.58% Attractively priced transaction 100% cash, $200 per share or $20.3 mm in total consideration 113% of tangible book value, 88% of book value $2.3 mm premium on tangible book, 0
Slide 5: Asset Quality
Asset Quality 5 $376 million loan portfolio $314 million of loans are in the Pennsylvania market $62 million of loans are in Arizona and other markets $37.6 million in non-performing assets $8.5 million of non-performing assets are in the Pennsylvania market $29.2 million of non-performing assets ar
Slide 6: Extensive Credit Review Process
Extensive Credit Review Process 6 NexTier engaged a third party credit review firm in December 2009 who reviewed 222 commercial loans with an aggregate balance of $240 mm (70%) NWBI engaged a third party credit review firm in March 2010 who reviewed 129 loans with an aggregate balance of $175 mm (62
Slide 7: Transaction Highlights
Transaction Highlights 7 Northwest Savings Bank NexTier Bank, NA Acquisition Criteria NexTier Transaction Preference for in-market transactions NWBI's market share moves from #7 in Butler County to #2 Adds 12 branches and $345 mm of deposits in Butler County Adds 3 branches and $64 mm of deposits in
Slide 8: Market Share
Market Share 8 Allegheny Deposit Market Share Armstrong Deposit Market Share Butler Deposit Market Share Deposit market share as of June 30, 2009 and June 30, 2008. Rank Institution (ST) 2009 Number of Branches 2009 Total Deposits in Market ($000) 2009 Total Market Share (%) 2008 Total Deposits in M
Slide 9: Composition of Deposits
Composition of Deposits 9 NWBI December 2005 NWBI December 2009 NexTier December 2009 Pro Forma December 2009 Cost of Deposits: 2.35% Cost of Deposits: 1.79% Cost of Deposits: 0.78% Cost of Deposits: 1.71% Cost of deposits for each respective year. Transaction 18.3% MMDA & Savings 29.3% Certificates
Slide 10: Composition of Loan Portfolio
Composition of Loan Portfolio 10 NWBI December 2005 NWBI December 2009 NexTier December 2009 Pro Forma December 2009 Yield: 6.23% Yield: 6.17% Yield: 5.67% Yield: 6.14% Yield on loans for each respective year. Commercial Business 3.3% One-to-Four Family 59.5% Multi-Family & Commerical 12.6% Consumer
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