Finward Bancorp · NASDAQ:FNWD
Finward Bancorp — NorthWest Indiana Bancorp — Investor Presentation (April 2019)
29 slides from Finward Bancorp's investor presentation, Apr 25, 2019
Slide 1: Banking
BANKING
Slide 2: Keeps Getting Better
KEEPS GETTING BETTER STABILITY INTEGRITY COMMUNITY EXCELLENCE
Slide 3: Forward-Looking Statements
This presentation may contain forward - looking statements regarding the financial performance, business prospects, growth and operating strategies of NorthWest Indiana Bancorp (“NWIN ”) for these forward - looking statements, NWIN claims the protections of the safe harbor for forward - looking stat
Slide 4: Disclosures Regarding Non-GAAP Measures
This presentation refers to certain financial measures that are identified as non - GAAP . The Bancorp believes that these non - GAAP measures are helpful to investors to better understand the Bancorp’s assets , earnings, and shareholders’ equity at the date of this presentation . This supplemental
Slide 5: Overview & Introduction
OVERVIEW & INTRODUCTION APRIL 25, 2019 STABILITY INTEGRITY COMMUNITY EXCELLENCE
Slide 6: Who We Are: Mission, Values, Vision
WHO WE ARE 6 MISSION Peoples Bank is committed to helping our communities and customers be more successful VALUES Continued growth and independence as a high - performing community bank, so that we can continue to deliver on our mission in Northwest Indiana and South Suburban Chicagoland VISION Cust
Slide 7: Who We Are
• 22 full - service Banking C enters • 274 Employees • $1.3 bn in Assets • Accolades • Top 200 Community Bank for 14 consecutive years* • Best Bank to Work For 2014 - 2018* • Best Place To Work in Indiana 2013 - 2018** WHO WE ARE 7 Full - service, broadly - based community financial institution offe
Slide 8: Strategic Overview
Differentiation • Service - based value proposition • Performance and Profitability • Community Bank serving Northwest Indiana and South Suburban Chicagoland • Continued Independence STRATEGIC OVERVIEW 8 Market Expansion • Inorganic Growth • Organic Growth Market Penetration • Product development •
Slide 9: Growth Story – 25 Years
1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Assets Earnings Per Share GROWTH STORY – 25 YEARS 9 $ 1,096.2 $ 266.3 (Dollars in Millions, Except Per Share Amounts) $ 1.17 $ 3.17
Slide 10: Growth Story
GROWTH STORY 10 Year Institution Assets Footprint % of Assets 2014 First Federal $ 40 mn 2 Banking Centers – In Market 5.5% 2015 Liberty Savings $ 50 mn 2 Banking Centers – In Market 6.1% 2018 First Personal $ 150 mn 3 Banking Centers – Market Expansion 15.6% 2019 AJ Smith $180 mn 3 Banking Centers
Slide 11: Total Return – Years
NWIN Bancorp SNL U.S. Bank SNL U.S. Thrift TOTAL RETURN – 5 YEARS* 11 90.9 % 44.6 % 27.4 % Jan 2014 Dec 2018 75 % 95 % 55 % 35 % 15 % (5) % *Information gathered from S&P Global Market Intelligence
Slide 12: 2018 Performance Review & Q1 2019 Update
2018 PERFORMANCE REVIEW & Q1 2019 UPDATE STABILITY INTEGRITY COMMUNITY EXCELLENCE
Slide 13: 2018 Performance Summary
• Strong, stable loan portfolio • Non - performing loans at 0.90% of total loans • ALL at 1.04% of total loans, however, ALL + purchase accounting reserves at 1.63% of total loans 2018 PERFORMANCE SUMMARY 13 Asset Quality • Total assets at $ 1.1 billion with 18.2% growth • Capital continues to suppo
Slide 14: Loan Portfolio Composition
LOAN PORTFOLIO COMPOSITION 14 Total Loans $ 865.0 million as of 3/31/2019 (Dollars in Millions) Residential Real Estate , $302.9 , 35% Home Equity , $49.7 , 6% Other , $26.7 , 3% Commercial Real Estate , $265.0 , 30% Construction and Land Development , $66.9 , 8% Multifamily , $49.3 , 6% Commercial
Slide 15: Deposit Composition
DEPOSIT COMPOSITION 15 Total Deposits $ 1,101.7 million as of 3/31/2019 (Dollars in Millions) Noninterest Bearing Checking , $177.3 , 16% Interest Bearing Checking , $210.4 , 19% Savings , $218.8 , 20% Money Market , $188.6 , 17% Certificates of Deposit , $306.7 , 28%
Slide 16: Assets & Return on Assets
2014 2015 2016 2017 2018 Q1 2019 Assets Annualized ROA (%) Non-GAAP Annualized ROA (%) ASSETS & RETURN ON ASSETS 16 Growing to New Levels • Up $493.4 mn or 63.7% from end of 2014 to Q1 2019 • Acquisitions have created a platform for organic growth • Non - performing assets to total assets has decrea
Slide 17: Loans
2014 2015 2016 2017 2018 Q1 2019 Loans Commercial as % of Total Loans LOANS 17 Acquisitions and Originations • Up $276.2 mn or 56.6% from end of 2014 to Q1 2019 • Strategically repositioning the balance sheet • Loans as a % of earning assets has increased from 63% in 2014 to 75% in Q1 2019, helping
Slide 18: Deposits
2014 2015 2016 2017 2018 Q1 2019 Deposits Non Maturity DP Acct as % of Total DP DEPOSITS 18 Positioned to Fund Growth • Up $467.7 mn or 73.8% from end of 2014 to Q1 2019 • Positioned for higher interest rate environment through core deposit franchise • Cost of non - maturity deposit increased from 0
Slide 19: Net Income & Earnings Per Share
2014 2015 2016 2017 2018 Q1 2018 Q1 2019 Net Income EPS Non-GAAP EPS NET INCOME & EARNINGS PER SHARE 19 Increased Earnings • Record earnings in 2018, despite one - time acquisition expenses of $2.1 mn • 2018 net income of 9.3 million resulted in EPS of $3.17, however, this included $2.1 mn in one -
Slide 20: Net-Interest Income
2014 2015 2016 2017 2018 Q1 2018 Q1 2019 Net-Interest Income Net Interest Margin (Tax-Equivalent) (%) NET - INTEREST INCOME 20 Increasing Despite Yield Curve • Margin holding, margin business expanding through economies of scale • Net - interest income up 35.3% Q1 2018 to Q1 2019 • Flattening yield
Slide 21: Non-Interest Income
2014 2015 2016 2017 2018 Q1 2018 Q1 2019 Non-Interest Income Non-Interest Income as % of Avg Assets NON - INTEREST INCOME 21 Adding Value • Noninterest income streams continue to be a strategic focus • 17.4% growth between 2017 and 2018 • Plans to further enhance wealth management and mortgage banki
Slide 22: Non-Interest Expense
2014 2015 2016 2017 2018 Q1 2018 Q1 2019 Non-Interest Expense NIE as % of Avg Assets Non-GAAP NIE as % of Avg Assets NON - INTEREST EXPENSE 22 Focused Expense Management • Recent acquisitions driving ratio of non - interest expense to average assets higher in 2018 and Q1 2019, yet core expenses rema
Slide 23: Looking Ahead
LOOKING AHEAD 23 AJ Smith Integration • Expected completion by late May, bringing total Illinois Banking Center Network to six • All material merger related expenses expected to be recognized by end of Q2 2019 Growth • Execution of sales strategies and continued organic growth in current markets • C
Slide 24: A Special Thanks
A SPECIAL THANKS 24 Randy Schwartz, and the Board and staff of First Personal Bank We will honor your work and commitment to the communities that you served so well Jerry Weberling, and the Board and staff of AJ Smith Federal Savings Bank
Slide 25: Thank You
THANK YOU Peoples Bank
Slide 26: Non-GAAP Reconciliation – Q1 2019
NON - GAAP RECONCILIATION – Q1 2019 Table 1 - Reconciliation of the Non - GAAP Earnings and Performance Ratios (Unaudited) March 31, 2019 Thee Months Ended GAAP net Income $ 2,222 GAAP income tax expense 340 GAAP income before income taxes 2,562 One - time acquisition costs 2,113 Pro forma income be
Slide 27: Non-GAAP Reconciliation – Q1 2019
NON - GAAP RECONCILIATION – Q1 2019 ($ in thousands) (Unaudited) For the three months ended, March 31, 2019 GAAP One - time acquisition costs - tax effected Non - GAAP Net income $ 2,222 $ 1,833 $ 4,055 Average equity $ 117,165 $ 117,165 ROE 7.59% 13.84% ($ in thousands, except per share data) (Unau
Slide 28: Non-GAAP Reconciliation – 2018
NON - GAAP RECONCILIATION – 2018 Table 1 - Reconciliation of the Non - GAAP Earnings and Performance Ratios (Unaudited) Twelve Months Ended December 31, 2018 GAAP net Income $ 9,337 GAAP income tax expense 1,430 GAAP income before income taxes 10,767 One - time acquisition costs 2,076 Pro forma inco
Slide 29: Non-GAAP Reconciliation – 2018
NON - GAAP RECONCILIATION – 2018 ($ in thousands) (Unaudited) For the twelve months ended, December 31, 2018 GAAP One - time acquisition costs - tax effected Non - GAAP Net income $ 9,337 $ 1,800 $ 11,137 Average equity $ 94,460 $ 94,460 ROE 9.88% 11.79% ($ in thousands, except per share data) (Unau
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