Finward Bancorp · NASDAQ:FNWD
Finward Bancorp — Investor Presentation (September 2021)
32 slides from Finward Bancorp's investor presentation, Sep 8, 2021
Slide 1: Investor Presentation
> FINWARD BANCORP Investor Presentation Wednesday, September 8, 2021
Slide 2: Finward Bancorp
Septerter 8.2021 Finward Bancorp > FINWARD BANCORP Symbol: FNWD tila
Slide 3: Forward-Looking Statements
Septerter 8.2021 Forward-Looking Statements Forward-Looking Statements Tis presentation may consi forwardookng statements regarding the financial performance, business prospects. growth and operating strategies of Finward Bancorp ("FRWO"). For these statements, AWD claims the protector ofthe safe ha
Slide 4: Overview of Finward Bancorp
Septerter 8.2021 Overview of Finward Bancorp Company Overview = {{(]-year old bank headquartered in Munster, Indiana Community benk wth care competancy in commercial ening funded by a formidable low-cost core deposit franchise Named a Bast Bark to Work for in America for 2015-2020 as well asa Top 20
Slide 5: Investment Rationale
Septerter 8.2021 Investment Rationale 10.3% TBY + Dividend CAGR since year-end 2013 Emphasis on expanding both wealth management and business banking Robust & Disciplined Growth Supporting Strang Profitability ‘Organic growth enhanced by strategic acquisitions expanding reach into markets thatare ve
Slide 6: Corporate History
Septerter 8.2021 Corporate History s2n7 ‘Ghequired Assets (0 Total Degans eet S865 f sms 9496 $1804 + Maragenest + Conjlaed + enechmorel) + Bendochroms + + Competed + Compete * foroucedhey + Applet traatonbegn——sequsitanol raed adied Ete acaustindt seuistionct cxcutne fret federal Fresiden Fira Pere
Slide 7: Executive Management Team
Septerber 8 202 Executive Management Team Years of Banking ‘Year Started at Ditcar Experience Finward Boncarp Postion with Company oe eee sla i] 2010 President & Chief Executive Officer team vith decades of combined Bocinos experience working together = Significant insider ownership of 18%" aligning
Slide 8: Diverse Board of Directors
Diverse Board of Directors Year Joined Board Member tae Board peecy) David A. Bechnowski Year Joinad Year Joined Board Member te Board Board Member fe Board Ta Gesjemin J Becknawski oar 0 24 Amy W Han 57 2008 James. Weser >» FINWARD a BANCORP
Slide 9: Dynamic & Attractive Operating Market
Septerter 8.2021 Dynamic & Attractive Operating Market Largest MSA Deposit Market” 3"! Mast Populated MSA@) 4 Highest MSA HH Income’! Deposits ($ billions) Population (millions) Household Income ($ thousands) 2 mm US. MedianHHt $67.8 ‘ev\r\ $75 57 NewYork 82 ‘Washington, D.C. eo — 133 ¢ Sovfroscisco
Slide 10: Disciplined and Experienced Acquiror
Septerter 8.2021 Disciplined and Experienced Acquiror First Federal Savings ast Sloan Association of a Bas ‘ALS TANCORF, ne ‘Poyet Hammond = “Bank, nail, Be Transaction Closed Closed i Closed Closed i Announced Date April 2014 uly 2015, I duly 2018 danvary 2019 1 uly 2021 1 1 Darel 0 0 ! 6M saan 1 s
Slide 11: Acquisition of Royal Financial, Inc. (RYFL)
Septerter 8.2021 Acquisition of Royal Financial, Inc. (RYFL) Company Overview * Royal Financial ne. has provided banking and financial services in he Chicagoland area sinc 87 through ts whally-avned subsidiary Royal Savings Bank Headquartered in Chicago, lL and operates rine ful-servces branch fcati
Slide 12: Driving Service Excellence
Septerber 8 202 Driving Service Excellence «= Transitioning from customers and features to relationships and solutions ® Focus on what clients need to thrive ® Broaden product/service offerings = Reduce complexity © Reduce cycle time Efficiency + Improve sales growth = Grow into new markets organica
Slide 13: Well-Balanced, Growing Loan Portfolio
Septerter 8.2021 Well-Balanced, Growing Loan Portfolio Historical Gross Loans ($ Millions) 1 Orgine Lone PPP Loans 3) $969 Acquired Loans!" oo a ca ai yon ual Set Ti iit er ee ee ee mn wana Yield on Loans (7%) 47% 485% ABI 495% ASK 43% AST % d I I I i l m8 7K 05 OB me me mm wa Sura bdo ag ores Yo ir
Slide 14: COVID-19 Impacts
Septerter 8.2021 COVID-19 Impacts = Prudently helping borrowers unable to ‘Sia Miles wa Commorcial Real Estate ‘Residential Real Estate = Commercial Business ‘meet contractual payment obligations due Hore Equity ‘Manufactured Homes ‘aHultfanily to COVID-I9 Construction & Land Development 1849 = Cons
Slide 15: Conservative Approach to Credit
Septerter 8.2021 Conservative Approach to Credit Experienced banking team with deep knavdedge of the Chicago area markat empowered tobe relationship bankers (natjust lenders) Prudent risk identification and mitigation processesin place to proactively addressrists inthe loan partiio Credit Phitasophy
Slide 16: Stable and Growing Core Deposit Franchise
Septerter 8.2021 Stable and Growing Core Deposit Franchise Historical Total Deposits (§ Millions) srg pasts ‘Acquired Deposits!” m8 2h (SO Rms Cost of Depasits (%) mm FAHD —o=Peer Median) 008% 013% 039% 100% 183% 216% 036% fg, Fed ands 1% 007% Rate: 02% 020% 020% 022% 026% m8 04 25 26 mn m8 ms mM 02
Slide 17: Core Earnings Power
Core Earnings Power Strong earnings continue to acoreta to and build capital Low cost funding allows for utlzng the balance sheet efcienty Successful execution of MBA strategy resultngin relied syreries mare than acccuntng for one-time deal-elated costs Future profitability tobe driven by a combinat
Slide 18: High Quality, Recurring Revenues
Septerter 8.2021 High Quality, Recurring Revenues Sold netinterest margin throughcut the economic cycle driven by ~ Top quartile costo deposits ~ Well managed/tiversfed loan portilo with commercial focus * Noninterestincome is a meaningful componentof reverues ~ Aleible martgage banking operation ca
Slide 19: Diversified Sources of Fee Income
Septerter 8.2021 Diversitied Sources of Fee Income ‘ 1 Garon SleoT Loans m Fees BServiceCharges = WeathManagenet = Ganon Solel Sets m Other = Morigage tanking service income, wealth management. and other noninterest income streams are all internally developed 02.2021 VTD: $8.0M (86.00 annua’) + Recu
Slide 20: Focused Expense Management
Focused Expense Management * lavestments in core technology platforms ky to leveraging of the pense base * Long-term goal of core efficiency ratio under 60% ‘$hHttet——emmCorelointres igenen-—o—Lore Eisen Rta * Long-tarm goal af core NIE / Avg. Assets under 25% vor 2 36.9 * Total assets per FTE has i
Slide 21: Robust Capital Levels
Robust Capital Levels = Regulatory capital levels in excess of well-capitalized requirements = TRE and regulatory capital ratios demonstrate a consistent ability to leverage capital 1 Have a capital plan in place that satisfies our internal goals Holding Company Total Capital Ratio (%) 55% yd 3% 140
Slide 22: Reliable Stewards of Capital
Septerter 8.2021 Reliable Stewards of Capital = Commitment to growing tangible book value per share: ‘eDhddond OBR (0% (O Skppnitng argc iit ae ‘TRY CAGR” 39.4) 1 $40.48 (2 Acs ee $28 $7730 $2828 (3) Returning capital to shareholders cis = Retaining capital necessary to support organic growth initia
Slide 23: Recap of Franchise Highlights
Recap of Franchise Highlights (Vv) Experienced and Invested Leadership = Dyn eorp era eee = Interests algned with shareholders through substantial own G Meaningful Presence in Diverse, Dynamic Markets . Beng rn Ca days and Indana’sbusiness-riendy environment ned to grow thrcugh acquisition opportuni
Slide 24: Thank You
THANK YOu 2” FINWARD
Slide 25: Appendix
APPENDIX > FINWARD BANCORP.
Slide 26: Board of Directors
Septerter 8.2021 Board of Directors Board Member Age Experience David A. Bochnawski 5 ‘© Executive Chairman since 2016 and previously CED of the Company for 35 years Benjamin J Bochnowski Prose OED 0 204 lirectorand member of he Eecutve Com thelniana Bankers and serves onthe ip Committee of American
Slide 27: Well-Positioned Securities Portfolio
Septerter 8.2021 Well-Fositioned Securities Porttolio Securities book eurrnty represents 28.6% athe veal blnce sheet Began investing excess liquidity into securities portfolio in 04°20 to enhance net interest margin * Municipal = Asof 07721 87% of pertflio consisted of municipals and mortgage * Mort
Slide 28: Historical Financial Summary
Seve Fd Septerber 8.2 Historical Financial Summary Fiscal Year Ended December 34 scar Sr thousands, except per share ata 207 zuie 218 7a zie Tasos $0775 08 58 sisraet siden stenasia Loans, Net 12720 ro64a8 97220 52.600 55052 Toa posts 004 79,196 sst.70 ions 495000 Tanpble Common Ea eps var? 497319 t
Slide 29: Non-GAAP Reconciliation
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Slide 30: Non-GAAP Reconciliation
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Slide 31: Non-GAAP Reconciliation
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Slide 32: Non-GAAP Reconciliation
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Finward Bancorp — Investor Presentation (September 2021) on 6ix