Northwest Bancshares, Inc. · NASDAQ:NWBI
Northwest Bancshares — Shareholder Meeting (April 2019)
29 slides from Northwest Bancshares's shareholder meeting presentation, Apr 18, 2019
Slide 1: Message to Shareholders
Message to Shareholders “HONORING THE PAST - BUILDING FOR THE FUTURE” Ronald J. Seiffert Chairman, President and CEO
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: Honoring the Past
Honoring the Past > Community Bank Since 1896 > Balance of Consistent Internal Growth and Acquisitions > Delivery of Quality Service > Organization Built on Trust
Slide 4: Honoring the Past
Honoring the Past > Safe Balance Sheet Growth > Expansion of Products and Services > Increased Sophistication and Capability > Successful Acquisition of Banks and Branches > Transition from Thrift Institution to Commercial Bank
Slide 5: Enhancing Shareholder Value
Enhancing Shareholder Value > Acquisition of Lorain National Bank and First Niagara Bank branches > Consolidation of Banking Offices and Divestiture of Businesses > Development of Comprehensive Branding Strategy > Development of Commercial, Corporate and Small Business Capabilities
Slide 6: Enhancing Shareholder Value
Enhancing Shareholder Value > Development of Risk Management Capability > Development of Investment Brokerage Business > Development of Production Scorecard in Regions > Development of Sales Incentive Plans > Merger with Union Community Bank in Lancaster County
Slide 7: Enhancing Shareholder Value: Results
Enhancing Shareholder Value: Results > JD Power and Associates Awards > Net income of $105 million at December 31, 2018, an 11.7% increase Over 2017 > Increased Diluted Earnings Per Share by 10.9% > ROA Increase to 1.11% from .99% > Net Interest Margin of 3.94% > Capital Ratios and Liquidity Positio
Slide 8: Stock Performance Since IPO
Stock Performance Since IPO IN COMPARISON OF CUMULATIVE TOTAL RETURN SINCE IPO IN 1994 Among Northwest Bancshares, Inc., the S&P 500 Index and the SNL U.S. Bank Index Stock Price Performance Since IPO in total return % (Source: SNL Financial) 2,200 —{ @ nwe! 42,015.9% | 1,800 @ saP 500 +863.7% ‘aco
Slide 9: Corporate Profile and Overview
Corporate Profile and Overview * 172 full service retail banking locations ° 2,205 full-time equivalent employees ¢ Total assets of $10.30 billion ° Net loans of $8.51 billion ° Deposits of $8.59 billion ¢ Tangible shareholders’ equity of $946 million * 106.2 million shares outstanding Market Capita
Slide 10: $9,000,000,000 $8,000,000,000 $7,000,000,000 $6,000,000,000 $5,000,000,000 $4,000,000,000 $3,000,000,000 $2,000,000,0…
$9,000,000,000 $8,000,000,000 $7,000,000,000 $6,000,000,000 $5,000,000,000 $4,000,000,000 $3,000,000,000 $2,000,000,000 $1,000,000,000 $0
Slide 11: Deposit Growth and Mix
Deposit Growth and Mix $9,000,000,000 $8,000,000,000 $7,000,000,000 $6,000,000,000 $5,000,000,000 $4,000,000,000 $3,000,000,000 $2,000,000,000 $1,000,000,000 $o m Savings Accounts m Checking Accounts m Money Market Accounts m Certificates of Deposit
Slide 12: Financial Metrics
Financial Metrics 2018 A Net Income (000’s) $105,491 B Asset Yield 4.30% C Cost of Funds 0.57% D Net Interest Margin 3.88% E Return on Average Assets 1.11% F Return on Average Equity 8.61% G Earnings per Share, diluted (EPS) $1.02 H_ Dividends per Share $0.68 I Regular Dividend Yield 4.01% J Closing
Slide 13: Union Community Bank - 3/8/19 IN
Union Community Bank - 3/8/19 IN Assets $535.0 million Loans, Net $408.0 million Deposits $477.0 million Employees 75 Offices 12 Households 14,700 Accounts 39,000 Net Income 12/31/18 $6.0 million
Slide 14: Balance sheet comparison
From prior year March 31, December 31, From prior year (excluding UCB) Assets 2019 2018 $ Change % Change UCB $ Change % Change Total cash and marketable securities 957,251 893,004 64,247 7.2% Mortgage loans - one- to four- family 2,867,161 2,864,470 2,691 0.1% 5,574 (2,883) -0.10% Home equity loans
Slide 15: Income statement comparison
Three months ended Year Over Year March 31, Dec. 31, Linked Quarter $ Change % Change 2019 2018 2018 $ Change % Change Total interest income 10,756 12.0% 100,289 89,533 97,768 2,521 2.6% Total interest expense 4,541 58.5% 12,307 7,766 10,937 1,370 12.5% A Net interest income 6,215 7.6% 87,982 81,767
Slide 16: Building for the Future: Strategic Plan
Building for the Future: 'N Northwest Bancshares, Inc. | 2019 Strategic Plan Mission Statement “Building loyalty, trust and value among our employees, customers, communities and shareholders,” Vision Statement “Northwest strives to be the most highly-respected provider of banking, business solutions
Slide 17: Business Philosophy
Business Philosophy Our business philosophy revolves around the continued focus on being a true community bank that offers a full array of financial services. Our goal is to remain independent while maintaining a balanced focus on our employees, customers, | communities and shareholders.
Slide 18: Corporate Objectives
Corporate Objectives Enhancing Shareholder Value Through: Objective #1: Production Volume and Revenue Growth; Objective #2: Improved Profitability and Efficiency; Objective #3: Mergers and Acquisitions; Objective #4: Effective Risk Management; and, Objective #5: Acquisition, Development and Talent R
Slide 19: Key Corporate Initiatives
Key Corporate Initiatives * Close and Convert Merger with Union Community Bank e Assess Merger and Acquisition Opportunities ¢ Improve Production Capabilities in Commercial, Small Business and Retail Delivery Channels ¢ Expand Residential Mortgage Lending Capabilities e« Expand Power Sports Lending
Slide 20: Key Corporate Initiatives (cont’d.)
Key Corporate Initiatives (cont’d.) ¢ Open New Loan Production Office in Columbus, Ohio ¢ Improve Production Capabilities of our Cash Management Delivery Channel ¢ Improve Production Capabilities of our Electronic Banking Channel ¢ Improve Efficiencies and Reduce Costs of the Company e Explore Cloud
Slide 21: Key Corporate Initiatives (cont’d.)
Key Corporate Initiatives (cont’d.) ¢ Develop a Digital Bank Strategy ¢ Develop and Design our “Branch of the Future” e Maintain Effective Risk Management Oversight ¢ Talent Acquisition, Development and Retention
Slide 22: Corporate Initiatives
Corporate Initiatives Acquisition, Development and Retention of Talent
Slide 23: Production and Revenue Team Highlights 2018
Production and Revenue Team Highlights 2018 > Northwest services over 428,000 households across three states > Significant growth... > Acquired over 32,910 new customer households Total loan production exceeded $2.1 billion New retail checking accounts - 26,354 New business checking accounts - 4,598
Slide 24: Production and Revenue Team Highlights 2018
Production and Revenue Team Highlights 2018 > Financial contributions of $1.7 million to non-profit organizations in the communities we serve > J.D. Power Award > For the sixth time in nine years, our customers have ranked us “Highest in Customer Satisfaction with Retail Banking in the Mid-Atlantic
Slide 25: Questions?
Questions?
Slide 26: William J. Wagner
WILLIAM J. WAGNER
Slide 27: William J. Wagner Award
ae iit Waitin eying iv ei uty WILLIAM J. WAGNER AWARD
Slide 28: Presented to: Melody Schott
ZB. PRESENTED TO: MELODY SCHOTT.
Slide 29: Appendix A - Reconciliation of GAAP to Non-GAAP Net Income
Appendix A - Reconciliation of GAAP to Non-GAAP Net Income Year Ended Year Ended Year Ended (Dollars in thousands, except per share amounts) 12/31/2017 12/31/2016 12/31/2015 Operating Results (GAAP) Net Income $94,467 $49,667 $60,540 Return on Average Assets 0.99% 0.55% 0.73% Return on Average Equit
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