Finward Bancorp · NASDAQ:FNWD
Finward Bancorp — NorthWest Indiana Bancorp — Shareholder Meeting (April 2017)
25 slides from Finward Bancorp's shareholder meeting presentation, Apr 27, 2017
Slide 1: 2017 Annual Shareholders' Meeting
2017 Annual Shareholders’ Meeting 27 - April - 2017
Slide 2: Forward Looking Statements
Forward Looking Statements 27 - April - 2017 “Forward - looking statements” as defined in the Private Securities Litigation Reform Act of 1995 may be included in this release. A variety of factors could cause the Bancorp’s actual results to differ from those expected at the time of this release. The
Slide 3: Sustained Performance
SUSTAINED PERFORMANCE 27 - April - 2017
Slide 4: Over Decades of Performance
Over 3 Decades of Performance 27 - April - 2017 Converted to Stock Institution Munster Converted to Federal Stock Savings Bank Schererville NorthWest Indiana Bancorp formed East Chicago (new) Broadway Hobart Corporate Center Crown Point Gary Valparaiso St. John First Federal Acquisition Liberty Savi
Slide 5: Value Driven Culture
Value Driven Culture 27 - April - 2017 Long - Term Value Shareholders Customers Employees Community
Slide 6: 2016 Performance Summary
2016 PERFORMANCE SUMMARY 27 - April - 2017
Slide 7: 2016 Year-In-Review
2016 Year - In - Review Record earnings for the fifth consecutive year • Net income totaled $9.1mn, 16.4% growth over 2015 Strong, stable asset quality • Non - performing loans at 1.05% of total loans at year - end Assets and capital continue to grow • Total assets at $913.6mn, 5.6% growth over 2015
Slide 8: Operating Results
Operating Results 2016 Income $9.1mn 16.4% growth ROA 1.03% 7.3% growth Assets $913.6mn 5.6% growth Nonint. Income $7.6mn 11.4% growth Cost of Funds 0.30% Efficient funding 27 - April - 2017 Named to “Best Places to Work in Indiana” 2013 - 2016 By the Best Companies Group Named a top 200 community b
Slide 9: Assets Sustained Growth
Assets 27 - April - 2017 Sustained Growth • Up $48.7mn in 2016 • 5.7% 5 year compound annual growth rate • $342.0mn in total loan originations resulting in $11.7mn of net loan growth for 2016 • Growth reflects focus on loan originations and acquisition strategies
Slide 10: Loans and Deposits
Loans and Deposits 27 - April - 2017
Slide 11: Asset Quality
Asset Quality 27 - April - 2017 Nonperforming loans • Stable at 1.05% Texas Ratio • Ratio was 25.0% in 2012, down to 12.0% at the end of 2016 Total classification ratio • ALL reserves are proportionate to risk ¹Nonaccruing loans + accruing loans 90 days past due
Slide 12: Interest Income (TE)
Interest Income (TE) 27 - April - 2017 Improved Yields • Positive impact from increasing yields and improved economic conditions • Full year benefit from the Liberty acquisition realized • Portfolio mix delivering increased earnings • Shorter duration positions the portfolio for continued growth
Slide 13: Interest Expense
Interest Expense 27 - April - 2017 Top performer • Strong competitive advantage against peers • Driven by focus on core funds • Consistently lead peers in balance sheet funding
Slide 14: Net Interest Margin (TE)
Net Interest Margin (TE) 27 - April - 2017 Outperforms peers • Results of strong funding management • Continues to expand as asset yields improve • Main driver of ROA
Slide 15: Noninterest Income
Noninterest Income 27 - April - 2017 Opportunities • Strategic focus to enhance Noninterest Income • Tactical improvements in services pricing planned for 2017 • Main drivers are mortgage loan sales, deposit fees, and wealth management income
Slide 16: Noninterest Expense
Noninterest Expense 27 - April - 2017 Strong expense management • Efficient operations ensure agility and low overhead • Investments back into the company have allowed for growth • Efficiency ratio of 65.6% • Approximately $4.6mn assets per employee, up from $4.0mn in 2012
Slide 17: Return On Assets
Return On Assets 27 - April - 2017 Competitive ROA • 7.3% increase in 2016 • Strategic plan calls for continued improvement in ROA • Long - term performance is the key to ROE and continued independence
Slide 18: Building Capital
Building Capital 27 - April - 2017 Total Net Worth grew $3.2mn in 2016 Deployed capital in 2014 & 2015 with acquisition of First Federal & Liberty Well capitalized with 9.2% Tier 1 Capital Strong capital allows for organic and inorganic growth
Slide 19: Return on Equity
Return on Equity 27 - April - 2017 Continued excellence • Earnings and capital management deliver superior results to shareholders • Returned 34.7% of earnings to shareholders in 2016
Slide 20: Shareholder Returns
Shareholder Returns 27 - April - 2017 Industry leading returns • Total Return of 30.57% • Single share increased by $8.05 or 26.1% • Dividends paid out per share of $1.11 or 2.9% dividend yield • Price to earnings per share – 12.1x • Price to book value per share – 132.1%
Slide 21: What's Ahead
WHAT’S AHEAD 2017 27 - April - 2017
Slide 22: Q1 2017: Highlights
Q1 2017: Highlights • Net income totals $2.3mn, up 2.4% over Q1 2016 Earnings growth • Loan originations totaled $82.8mn Loan growth • Consumer, business, and not for profit balances grew by $16.2mn, or 3.6% Core deposit growth [excludes cds and public funds] • ROA - 1.02% • ROE - 10.73% Key perform
Slide 23: Peoples Banking Center Network
Peoples Banking Center Network 27 - April - 2017 16 full - service banking centers Focused on Strategic Growth • Well positioned to capture projected population growth • Strong potential in existing footprint • Active plans to enhance Porter County market presence
Slide 24: Strategic Priorities
Strategic Priorities • Incremental improvement to ROA • Noninterest income growth • Efficient overhead management Profitability • Enrich risk management culture • Align risk management with strategy • Execute effective risk strategies Risk Management • Achieve business operational efficiencies • Fos
Slide 25: Thank you.
Thank you. 27 - April - 2017
NorthWest Indiana Bancorp — Shareholder Meeting (April 2017) on 6ix