Northwest Bancshares, Inc. · NASDAQ:NWBI
Northwest Bancshares — Investor Presentation (February 2010)
37 slides from Northwest Bancshares's investor presentation, Feb 8, 2010
Slide 1: Northwest Bancshares, Inc.
NASDAQ: NWBI Current Market Value: $11.41 As of February 3, 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: Offering Results
Issuer: Northwest Bancshares, Inc. Listing/Ticker: Nasdaq Global Select Market / "NWBI" IPO Price Per Share: $10.00 Current Market Price:* $11.41 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
Slide 4: Second Step Enhancement to Shareholder Value
N O R T H W E S T Second Step Enhancement to Shareholder Value 4
Slide 5: 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 6: Attractive Franchise
Attractive Franchise © Corporate Headquarters Hi Northwest Savings Bankand Northwest Consumer Discount Company I Northwest Savings Bank Northwest Consumer Discount Company Pennsfania 12 st New Yor 7 ° ono 2 8 Mayan 5 ° TOTAL m 3
Slide 7: Experienced Management & Board of Directors
Experienced Management & Board of Directors 7 Executive officers average 27 years of banking experience. Average tenure for executive officers at Northwest is approximately 19 years. Stable and experienced Board of Directors; 8 out of 9 Independent Directors
Slide 8: Historical Performance
4omsI2IAWOeL Historical Performance
Slide 9: Asset Growth
Asset Growth 9 Northwest has demonstrated the ability to both safely leverage its capital and change its strategic direction when necessary. Leveraging Strategy Diversification & Profitability Strategy
Slide 10: Growth of Our Franchise Since IPO
Growth of Our Franchise Since IPO 10 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 11: Operating Trends
4omsI2IAWOeL Operating Trends
Slide 12: Interest Rate Spread
Interest Rate Spread 12 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 13: 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 13 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 14: Composition of Deposits
Composition of Deposits 14 Checking Savings Money Market Certificates of Deposit East 18.3 17.9 11.4 52.4 14 December 2005 December 2009 Checking Savings Money Market Certificates of Deposit East 22.3 16.4 14.6 46.7
Slide 15: Deposit Growth
Deposit Grow $7.08 $6.08 $55 $52 $52 $62 S54 $5.08 saz $4.08 $3.08 $2.08 i i I $1.08 $0.08 an PEEP EE EES ES Non¥nterest Bearing Demand «$93,025 (23.60% Interest. bearing Demand, $61,980 3.20% Savings Deposits si4s077 18.60% MMDA sitgado 16.90% Time Deposits $167,281 6.20% TOTAL S506219_ 11.60% 15
Slide 16: Profitability Trends
Profitability Trends 16 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.
Slide 17: 2008 and 2009 Core Earnings Comparison
2008 and 2009 Core Earnings Comparison 17
Slide 18: Stock Performance and Per Share Information
Stock Performance and Per Share Information
Slide 19: Price Performance Since IPO
Price Performance Since IPO (11/4/94) 19 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 20: Tangible Book Value Per Share
Tangible Book Value Per Share 20 (Adjusted for Splits and Second-Step Exchange) 233% Increase 610% Increase
Slide 21: Annual Dividends Paid Per Share
Annual Dividends Paid Per Share (adjusted for splits and exchanges) 21 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 22: Asset Quality
4omsI2IAWOeL Asset Quality
Slide 23: Reserve & Charge-Offs History
Reserve & Charge-Offs History 23 NCOs / Average Loans 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 Ap
Slide 24: Delinquent Loans
Delinquent Loans As a % of Total Loans (30 to 90+ days) Total Delinquency % by Loan Type (30 to 90+ days) Delinquent Loans 24
Slide 25: Loan Breakdown By State
Loan Breakdown By State 25 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 26: Asset Quality
Asset Quality 26 See Appendix for Peers; Peer data based on SNL Financial as February 3, 2010 NPAs / Total Assets
Slide 27: 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 28: Investment Securities Portfolio
Investment Securities Portfolio 28 High quality portfolio with 95% backed by U.S. government, G.S.E., or municipalities Only $7.5 million, or 0.7%, of level III investments
Slide 29: Strategic Direction
4omsI2IAWOeL Strategic Direction
Slide 30: 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 31: Disciplined Acquisition Strategy
Disciplined Acquisition Strategy 31 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 32: Disciplined Acquisition Strategy
Disciplined Acquisition Strategy 32 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 33: Investment Opportunity
4omsI2IAWOeL Investment Opportunity
Slide 34: Investment Opportunity in Northwest
Investment Opportunity in Northwest 34 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
Slide 35: Forbes names Northwest one of America's Most Trustworthy Companies
Forbes names Northwest as one of America's 100 Most Trustworthy Companies The annual survey utilizes a proprietary process to evaluate financial reporting, transparency, fiscal policies, management behaviors, corporate governance, and risk factors. The result is a list of companies that "have consis
Slide 36: Appendix
Appendix z2oer FT SwuwoaHw
Slide 37: Peer Group Composition
Peer Group Composition 37 Peer group includes banks and thrifts with market capitalizations between $750 million and $5 billion in the Northeast, Mid-Atlantic and Ohio regions. Peer group members: KeyCorp (Bank) New York Community Bancorp, Inc. (Thrift) Huntington Bancshares Incorporated (Bank) Firs
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