Northwest Bancshares, Inc. · NASDAQ:NWBI
Northwest Bancshares — Investor Presentation (February 2020)
33 slides from Northwest Bancshares's investor presentation, Feb 13, 2020
Slide 1: Franchise Overview February 2020
Franchise Overview February 2020 | Strictly Private & Confidential
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: Who Are We? Northwest at-a-glance
Who Are We? Northwest at-a-glance Northwest Bancshares Inc. (“NWBI” NASDAQ) A network of offices across three states Leading regional bank, based in Warren, PA, and founded in 1896 Substantial growth from $8.0bn in assets to $10.5bn in assets from 2009, the year of our second step conversion D
Slide 4: Strategic Objectives
Strategic Objectives M&A: Continue to assess merger and acquisition opportunities Enhance productivity through multiple production channels Revenue: in order to further drive organic growth Efficiency: On-going cost optimization, including efficient use of technology Develop and refine digital bank
Slide 5: Superior Valuation Multiples Over Time
Superior Valuation Multiples Over Time 0-129-68 Over longer term (5-year) and shorter term (2-year) periods, the market has consistently valued Northwest at a premium to peers and the industry, particularly on a P/E and ROATCE regression implied basis. Price to Earnings(1) Last Five Years Last Two Y
Slide 6: Why Northwest
0-129-68 Why Northwest Management Culture Strong Customer Base Exceptional Financial Executing Strategic And Track Record and Well-positioned Performance Objectives Market Share 120-189-67 Management Culture Evaluate and execute Experienced and LeadingAnd Track (#1) deposit Attractive return
Slide 7: 1. Management Culture and Track Record
0-129-68 120-189-67 163-151-141 1. Management Culture and Track Record 254-191-15 237-125-48 127-127-127
Slide 8: Experienced Executive Leadership Team
Experienced Executive Leadership Team 0-129-68 Executive Leadership Team Company Culture Service: Delivering quality service to our customers while fostering Ronald J. Seiffert a positive, stable and secure working environment that provides our 120-189-67 • President and CEO employees opportunitie
Slide 9: Relative Price Performance Since NWBI IPO
Relative Price Performance Since NWBI IPO 0-129-68 Northwest has meaningfully outperformed its peers and bank index since its IPO in 1994. Total Shareholder Return(1) since NWBI IPO 123 year 120-189-67 history of serving the 5 9 banking needs in W. 1,743% PA and 8 beyond 7 6 1,051% 2 4 163-151-141 3
Slide 10: Earnings & Dividend Growth: 1995 – 2019
Earnings & Dividend Growth: 1995 – 2019 0-129-68 Northwest has demonstrated strong results since its inception as a public company, driven by notable EPS and dividend growth. Earnings & Dividend Growth 1995 – 2019 120-189-67 101 straight quarters NWBI has never cut in which the the dividend since it
Slide 11: Track Record of Steady Growth
Track Record of Steady Growth 0-129-68 Northwest has a demonstrated track record of strong and stable balance sheet growth since IPO. Total Assets Stockholder’s Equity ($ in billions) ($ in billions) $2.0 $12.0 1.8 120-189-67 $10.5 $9.6 $9.6 1.6 10.0 $9.4 $9.0 $1.4 $8.1 $7.9 1.4 $1.3 $7.9 $1.3 $1.3
Slide 12: Why Northwest
0-129-68 Why Northwest Management Culture Strong Customer Base Exceptional Financial Executing Strategic And Track Record and Well-positioned Performance Objectives Market Share 120-189-67 Management Culture Evaluate and execute Experienced and LeadingAnd Track (#1) deposit Attractive return
Slide 13: 2. Leading Market Share Positioned for the Future
0-129-68 120-189-67 163-151-141 2. Leading Market Share Positioned for the Future 254-191-15 237-125-48 127-127-127
Slide 14: Strong Marketshare in Northwest's Current Footprint
Strong Marketshare in Northwest’s Current Footprint Northwest Bank has a substantial footprint in Pennsylvania, Western New York, and Northeast Ohio. Excluding money center banks and super regionals, Northwest holds a top 5 market share in 70% of all its counties. Current Branch Footprint Market Sha
Slide 15: Northwest's Customer Base Evolution
Northwest’s Customer Base Evolution Northwest’s source of funds and mix of loans have changed considerably over the last five years as the bank has continued to transform from a thrift to a commercial bank. C&I Q1’12 Q3’19 5.7% New commercial loan production Consumer Consumer 4.1% office has opene
Slide 16: Fee Income
Fee Income 0-129-68 Northwest’s broad suite of fee income businesses allows for enhanced cross-sell opportunities as well as diversified revenue streams. Fee Income (ex. Service Charges and Interchange Fees) Q4’19 Fee Income Mix Interchange Fees Service Charges and Other Fees Other(1) 120-189-67 21%
Slide 17: Northwest's Key Fee Income Businesses
Northwest’s Key Fee Income Businesses 0-129-68 ($ in millions) $1,338 $1,223 $1,239 Revenue increased year-over-year in 2018, with a continuing focus on $1,092 $1,124 Business diversification of both revenue and AUM Trust 2014 2015 2016 2017 2018 120-189-67 Business Trust AUM $393 $404 $372 $365
Slide 18: Why Northwest
0-129-68 Why Northwest Management Culture Strong Customer Base Exceptional Financial Executing Strategic And Track Record and Well-positioned Performance Objectives Market Share 120-189-67 Management Culture Evaluate and execute Experienced and LeadingAnd Track (#1) deposit Attractive return
Slide 19: 3. Exceptional Financial Performance
0-129-68 120-189-67 163-151-141 3. Exceptional Financial Performance 254-191-15 237-125-48 127-127-127
Slide 20: Robust Outperformance with Low Volatility
Robust Outperformance with Low Volatility Low historical volatility of key performance metrics underscores steady earnings stream and low risk nature of the institution, despite frequent M&A and balance sheet evolution. 3.73% 3.58% 3.54% 3.98% 0.44% 0.30% Net Interest Margin Peers: Current Historica
Slide 21: Credit Discipline Paramount – Exceptional Performance Under Stress
Credit Discipline Paramount – Exceptional Performance Under Stress Northwest’s credit performance during the Financial Crisis underscores its superior underwriting. NCOs / Average Loans [Commentary] 3.00% Improved Underwriting: [Monitoring, Allowance / Avg. Loans (4Q19) underwriting, and collectio
Slide 22: Cost of Deposits Well Maintained
Cost of Deposits Well Maintained 0-129-68 Post crisis, NWBI has been able to reduce its deposit costs more quickly than most banks. Cost of Deposits 120-189-67 3.00% 2.50 [TBU: Second-step liquidity allowed realignment of lower cost customer base] 163-151-141 First Fed 2.00 Rate Hike of Current KeyC
Slide 23: Highest Dividend Payout While Maintaining Capital
Highest Dividend Payout While Maintaining Capital 0-129-68 Northwest’s capital distributions to shareholders are significantly above peer and industry averages. Maintaining strong capital buffers allows Northwest optimal strategic flexibility, especially during economic downturns Dividend Payout Rat
Slide 24: Why Northwest
0-129-68 Why Northwest Management Culture Strong Customer Base Exceptional Financial Executing Strategic And Track Record and Well-positioned Performance Objectives Market Share 120-189-67 Management Culture Evaluate and execute Experienced and LeadingAnd Track (#1) deposit Attractive return
Slide 25: 4. Executing Strategic Objectives
0-129-68 120-189-67 163-151-141 4. Executing Strategic Objectives 254-191-15 237-125-48 127-127-127
Slide 26: Defining a Distinctive M&A Culture
Defining a Distinctive M&A Culture 0-129-68 Northwest M&A Philosophy Northwest Bank & Branch Acquisitions Since IPO Completion Purchase Deposits Company Name Assets ($MM) M&A in current and contiguous markets a priority: Knowledge Date Price ($MM) ($MM) MutualFirst Financial 4/1/2020 (1) $362.1 $2
Slide 27: Building A Bank For The Future
Building A Bank For The Future 0-129-68 Key Technology Offerings Technology and Branch Priorities Leveraging and enhancing our technology offerings to improve customer service, supplement face-to-face interaction, and 120-189-67 take advantage of cross-sell opportunities is a key focus of Northwes
Slide 28: Five-Year Strategic Plan
Five-Year Strategic Plan 0-129-68 Northwest has developed a strategic five-year plan driven by key corporate initiatives that will continue to drive exceptional performance and shareholder value in 2020 and beyond. Target Range 12.5-16% 120-189-67 12.07% 163-151-141 NWBI 2019Y ROATCE Revenue Growth
Slide 29: Key Take-Aways
Key Take-Aways Why is Northwest the Preferred Platform? Management and company track-record of delivering superior results to shareholders and superior service to customers Equity markets have appreciated the “Northwest story”, historically placing premium valuations on the franchise Low-risk
Slide 30: Appendix
0-129-68 120-189-67 163-151-141 Appendix 254-191-15 237-125-48 127-127-127
Slide 31: Year Ended December 31, 2019 Highlights
Year Ended December 31, 2019 Highlights Strong and steady loan growth – Loan growth of 9.4% for the year with approximately half of growth coming from Union Community Bank acquisition – Ability to fund this growth came almost entirely from internal deposit growth The Board of Directors announced
Slide 32: 4Q19 Operating Results and Highlights
4Q19 Operating Results and Highlights Change from ($ in thousands) 4Q19 3Q19 4Q18 3Q19 4Q18 2019 Operating Highlights Net interest income $88,945 $90,936 $86,831 ($1,991) $2,114 Net income for the quarter ended December 31, 2019 of $25.6 million Provision for loan losses 8,223 3,302 3,792 4,921 4,
Slide 33: Peer Set
Peer Set Community Bank System, Inc. (NYSE: CBU) First Commonwealth Financial Corporation (NYSE: FCF) Fulton Financial Corporation (NASDAQ: FULT) NBT Bancorp, Inc. (NASDAQ: NBTB) S&T Bancorp, Inc. (NASDAQ: STBA) Tompkins Financial Corporation (NYSEAM: TMP) WesBanco, Inc. (NASDAQ: WSBC)
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