Finward Bancorp · NASDAQ:FNWD
Finward Bancorp — NorthWest Indiana Bancorp — Investor Presentation (September 2017)
25 slides from Finward Bancorp's investor presentation, Sep 7, 2017
Slide 1: Fall 2017 Investor Presentation
Fall 2017 Investor Presentation
Slide 2: Forward Looking Statements
Forward Looking Statements Fall 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. These inclu
Slide 3: Sustained Performance
SUSTAINED PERFORMANCE Fall 2017 3
Slide 4: Over Decades of Performance
Over 3 Decades of Performance Fall 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 Savings Acqu
Slide 5: Value-Driven Culture
Value - Driven Culture Fall 2017 Long - Term Value Shareholders Customers Employees Community 5
Slide 6: 2017 Performance Summary
2017 PERFORMANCE SUMMARY Fall 2017 6
Slide 7: 2017 Performance Summary
2017 Performance Summary Increased Earnings through June 30, 2017 • Net income totaled $4.8mn, 7.6% growth over 2016 for the six months ended June 30, 2017 Strong, stable asset quality • Non - performing loans at 1.06% of total loans Assets and capital continue to grow • Total assets at $921.2mn, an
Slide 8: Operating Results for the six months ended June 30, 2017
Operating Results for the six months ended June 30, 2017 Income $4.8mn 7.6% growth ROA 1.07% 4.9% growth Assets $921.2mn 0.8% growth Nonint. Income $3.7mn 6.8% growth Cost of Funds 0.29% Efficient funding Fall 2017 Named to “Best Places to Work in Indiana” 2013 - 2017 By the Best Companies Group Nam
Slide 9: Assets
Assets Fall 2017 Sustained Growth • Up $7.6mn in 2017 • 5.8% 5 year compound annual growth rate • $166.2mn in total loan originations resulting in $17.4mn of net loan growth for 2017 • Growth reflects focus on loan originations and acquisition strategies 9
Slide 10: Loans and Deposits
Loans and Deposits Fall 2017 10
Slide 11: Asset Quality
Asset Quality Fall 2017 Nonperforming loans • Stable at 1.06% Texas Ratio • Ratio was 25.0% in 2012, down to 11.0% at Jun 17 Total classification ratio • Ratios was 12.0% at Jun 17 • ALL reserves are proportionate to risk ¹Nonaccruing loans + accruing loans 90 days past due 11
Slide 12: Interest Income (TE)
Interest Income (TE) Fall 2017 Improved Yields • Positive impact from increasing yields and improved economic conditions • Prior acquisitions continue to benefit interest income • Portfolio mix delivering increased earnings • Shorter duration positions the portfolio for continued growth 12 Data Sour
Slide 13: Interest Expense
Interest Expense Fall 2017 Top performer • Strong competitive advantage against peers • Driven by focus on core funds • Consistently lead peers in balance sheet funding 13 Data Source: S&P Global Market Intelligence
Slide 14: Net Interest Margin (TE)
Net Interest Margin (TE) Fall 2017 Outperforms peers • Results of strong funding management • Continues to expand as asset yields improve • Main driver of ROA 14 Data Source: S&P Global Market Intelligence
Slide 15: Noninterest Income
Noninterest Income Fall 2017 Opportunities • Strategic focus to continue to enhance Noninterest Income • Tactical improvements in services pricing in 2017 • Main drivers are mortgage loan sales, deposit fees, and wealth management income 15 Data Source: S&P Global Market Intelligence
Slide 16: Noninterest Expense
Noninterest Expense Fall 2017 Strong expense management • Efficient operations ensure agility and low overhead • Investments back into the company have allowed for growth • Efficiency ratio of 65.2% • Approximately $4.6mn assets per employee, up from $4.0mn in 2012 16 Data Source: S&P Global Market
Slide 17: Return On Assets
Return On Assets Fall 2017 Competitive ROA • Strategic plan calls for continued improvement in ROA • Long - term performance is the key to ROE and continued independence 17 Data Source: S&P Global Market Intelligence
Slide 18: Building Capital
Building Capital Fall 2017 Deployed capital in 2014 & 2015 with acquisition of First Federal & Liberty Well capitalized with 9.3% Tier 1 Capital Strong capital allows for organic and inorganic growth 18
Slide 19: Return on Equity
Return on Equity Fall 2017 Continued excellence • Earnings and capital management deliver superior results to shareholders • Returned 34% of earnings to shareholders through Jun 17 19 Data Source: S&P Global Market Intelligence
Slide 20: Shareholder Returns
Shareholder Returns Fall 2017 Industry leading returns • Total Period Return of 5.7% • Single share increased by $1.65 or 4.2% • Dividends paid out per share of $0.57 or 2.9% dividend yield • Price to earnings per share – 12.7x • Price to book value per share – 139.5% 20 Data Source: S&P Global Mark
Slide 21: What's Ahead
NorthWest indiana | BANCORP WHAT’S AHEAD revi —>-
Slide 22: Q2 2017: Highlights
Q2 2017: Highlights (Three months ended June 30, 2017) • Net income totals $2.5mn, up 12.8% over Q2 2016 Earnings growth • Loan originations totaled $83.4mn Loan growth • Consumer, business, and not for profit balances grew by $4.1mn, 4.5% annual growth rate Core deposit growth [excludes cds and pub
Slide 23: Peoples Banking Center Network
Peoples Banking Center Network Fall 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 23
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
NorthWest Indiana BANCORP Thank you. revi —>
NorthWest Indiana Bancorp — Investor Presentation (September 2017) on 6ix