Northwest Bancshares, Inc. · NASDAQ:NWBI
Northwest Bancshares — Investor Presentation (April 2010)
39 slides from Northwest Bancshares's investor presentation, Apr 22, 2010
Slide 1: Northwest Bancshares
NASDAQ: NWBI Current Market Value: $11.80 As of April 16, 2010 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: 2009 Summary Annual Report: Making Headlines
2009 SUMMARY ANNUAL REPORT MAKING HEADLINES NORT EST BANCSHARES, INC.
Slide 4: Forbes Names Northwest Among Most Trustworthy Companies
Forbes® Names Northwest One of America’s 100 Most Trustworthy Companies. Northwest Bancshares, Inc. Completes Second Step Conversion. Northwest Sees Record Deposit Growth. NORTHWEST BANCSHARES, ING.
Slide 5: Mission Statement
Mission Statement "To create exceptional customer loyalty and continuous improvement in performance with our empowered team of highly-valued professionals." Loyalty refers to customers who are completely faithful to the Northwest brand and serve as ambassadors. 5
Slide 6: Reasons for Taking the Second Step
Reasons for Taking the "Second Step" Opportunities for acquisition Positioning and capability of our company Capital requirements Economic environment Market environment for bank stocks Regulatory environment 6
Slide 7: Offering Results
IPO Price Per Share: $10.00 Shares Offered: 68,878,267 - Total 33,024,898 - Subscription Offering 35,853,369 - Syndicated Offering Gross Proceeds: $688.8 Million Net Proceeds: $658.0 Million Tangible Equity / Tangible Assets: 14.22% Price / Book Value:* 88.6% Price / Tangible Book Value:* 103.4% * A
Slide 8: Second Step Enhancement to Shareholder Value
N O R T H W E S T Second Step Enhancement to Shareholder Value 8
Slide 9: Corporate Profile and Overview
Holding Company is regulated by the OTS, Bank is regulated by the FDIC and PA Department of Banking 171 retail banking locations 51 consumer finance locations ($116.3 mil in assets, $2.7 mil in net income for year ended 12/31/09) 1,697 full-time and 316 part-time employees Total assets of $8.0 billi
Slide 10: Counties Served
COUNTIES SERVED
Slide 11: Historical Performance
4omsDHNWOC 2 Historical Performance
Slide 12: Asset Growth
Asset Growth 12 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: Growth of Our Franchise Since IPO
Growth of Our Franchise Since IPO 13 About 50% of our balance sheet growth was organic, the other 50% was accomplished through mergers and acquisitions. Organic Growth 55 De Novo Branch Openings 24 Northwest Consumer Discount offices Merger and Acquisition activity: Branch Purchases - 10 acquisition
Slide 14: Deposit Growth
Deposit Gro’ $7.08 $6.08 $55 $52 $52 $52 $54 $5.08 saz $4.08 $3.08 $2.08 i i i $1.08 $0.08 Sera FoF gh oh Nonvinterest Bearing Demand «$93,025 (23.60% Interest bearing Demand, $61,980 3.20% Savings Deposits si45077 18.60% MMDA sitgaeo 16.90% Time Deposits $167,281 6.20% TOTAL S506219_ 11.60% 14
Slide 15: Composition of Deposits
Composition of Deposits 15 Checking Savings Money Market Certificates of Deposit East 18.3 17.9 11.4 52.4 15 December 2005 December 2009 Checking Savings Money Market Certificates of Deposit East 22.3 16.4 14.6 46.7
Slide 16: Composition of Loan Portfolio
Commercial Business One-to-Four Family Multi-Family & Commerical Consumer & Home Equity East 3.3 59.5 12.6 24.6 Composition of Loan Portfolio 16 December 2005 Commercial Business One-to-Four Family Multi-Family & Commerical Consumer & Home Equity East 7 44.1 23.3 25.6 December 2009
Slide 17: Other Major Events in 2009
Other Major Events in 2009 Originated $1.8 billion of loans including $883 million of mortgages - $568 million of which were sold. Assets under management grew by $246 million or 28.9% to almost $1.1 billion Opened four new offices Three in Rochester, NY area - Greece, Webster, Gates- Chili Youngsvi
Slide 18: Other Major Events in 2009 (continued)
Other Major Events in 2009 Implementation of check image capture in our offices. Mortgage servicing department named a "Platinum Servicer" by Freddie Mac Elected not to accept TARP funds Promotion of Tim Huber to EVP and Chief Lending Officer, Promotion of Mike Smelko to EVP and Chief Credit Officer
Slide 19: Operating Trends
4oms2DHWO 2 Operating Trends
Slide 20: Interest Rate Spread
Interest Rate Spread 20 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 21: 2009 and 2008 Core Earnings Comparison
2009 and 2008 Core Earnings Comparison 21
Slide 22: 2010 and 2009 Core Earnings Comparison
2010 and 2009 Core Earnings Comparison 22
Slide 23: Profitability Trends
Profitability Trends 23 Net Interest Margin Non-Interest Income / Average Assets Non-Interest Expense / Average Assets ROAA * Peer group includes banks and thrifts with market capitalizations between $750 million and $5 billion in the Northeast, Mid-Atlantic and Ohio regions. 2009 noninterest expens
Slide 24: Asset Quality
4YomSs2DAYROL Asset Quality
Slide 25: Reserve & Charge-Offs History
Reserve & Charge-Offs History 25 Northwest's actual losses have historically been much lower than its peer group. Conservative underwriting and a commitment to working with our borrowers, have kept our losses at comparatively low levels during the current economic crisis. See Appendix for Peers; Pee
Slide 26: Delinquent Loans
Delinquent Loans As a % of Total Loans (30 to 90+ days) Total Delinquency % by Loan Type (30 to 90+ days) Delinquent Loans 26 (CHART) (CHART)
Slide 27: Loan Breakdown By State
Loan Breakdown By State 27 Dollars in thousands Loans by State (based on borrowers' residence) at December 31, 2009 90% of our loans are located in our core market of Pennsylvania and New York.
Slide 28: Average Mortgage Loan Balance and LTV
Average Mortgage Loan Balance and LTV Northwest's average mortgage balance is extremely low which enables borrowers to continue making their payments during times of economic challenge. Conservative underwriting has ensured that Northwest's mortgage customers have a significant equity position in th
Slide 29: Investment Securities Portfolio
Investment Securities Portfolio 29 High quality portfolio with 95% backed by U.S. government, G.S.E., or municipalities Only $9.5 million, or 0.8%, of level III investments
Slide 30: Stock Performance and Per Share Information
Stock Performance and Per Share Information
Slide 31: Price Performance Since IPO
Price Performance Since IPO (11/4/94) 31 Source: SNL Financial As of February 3, 2010 Since its IPO in 1994, Northwest has significantly outperformed the Nasdaq Bank Index and the S&P 500 Index.
Slide 32: Tangible Book Value Per Share
Tangible Book Value Per Share 32 (Adjusted for Splits and Second-Step Exchange) 233% Increase 610% Increase
Slide 33: Annual Dividends Paid Per Share
Annual Dividends Paid Per Share (adjusted for splits and exchanges) 33 In early years, dividend payments were controlled as Northwest was focused on retaining capital and growing its franchise. In recent years, as acquisitions became expensive, Northwest steadily increased its dividends and provided
Slide 34: Strategic Direction
4omsrt0HWOC 2 Strategic Direction
Slide 35: Investment and Leveraging of Second Step
Investment of Proceeds of Second-Step Funds temporarily invested in overnight deposits Difficult environment to improve yield Want to stay short-term or variable rate Do not want to increase credit-risk exposure in investment portfolio Use funds to grow loan portfolio while being mindful of interest
Slide 36: Disciplined Acquisition Strategy
Disciplined Acquisition Strategy 36 Opportunity in our market areas: In PA, NY, OH and MD - approximately 170 public and private banks and thrifts with assets between $300 million and $3 billion On a selective basis, we would consider: whole bank acquisitions FDIC assisted transactions branch divest
Slide 37: Disciplined Acquisition Strategy: Criteria
Disciplined Acquisition Strategy 37 Acquisition criteria Strategic first preference is for acquisitions within our current markets secondarily, we prefer acquisitions in contiguous or near contiguous market areas prefer banks that add complementary products and services, diversified deposit mixes an
Slide 38: Investment Opportunity
Yomstr54RO2 Investment Opportunity
Slide 39: Investment Opportunity in Northwest
Investment Opportunity in Northwest 39 Things we plan to do: Continuing our evolution of becoming more bank-like Continue our disciplined acquisition strategy in our current or adjacent markets Focus on self-originated small business and commercial credits vs. residential loans Dividends and stock b
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