Finward Bancorp · NASDAQ:FNWD
Finward Bancorp — NorthWest Indiana Bancorp — Shareholder Meeting (April 2018)
29 slides from Finward Bancorp's shareholder meeting presentation, Apr 27, 2018
Slide 1: 2018 Annual Shareholders' Meeting
2018 Annual Shareholders’ Meeting 27 - April - 2018 Filed by NorthWest Indiana Bancorp pursuant to Rule 425 under the Securities Act of 1933 and deemed filed Pursuant to Rule 14a - 12 of the Securities Exchange Act of 1934 Subject Company: NorthWest Indiana Bancorp Commission File No. 000 - 26128 Ex
Slide 2: Forward-Looking Statements
Forward - Looking Statements This presentation may contain forward - looking statements regarding the financial performance, business prospects, growth and operating strategies of NorthWest Indiana Bancorp (“NWIN”), as well as those of First Personal Financial Corp. (“First Personal”), with which NW
Slide 3: Additional Information For Shareholders
Additional Information For Shareholders In connection with the proposed merger, NorthWest Indiana Bancorp (“NWIN”) will file with the SEC a Registration Statement on Form S - 4 that will include a Proxy Statement of First Personal Financial and a Prospectus of NWIN (the “proxy statement/prospectus”)
Slide 4: Disclosures Regarding Non-GAAP Measures
Disclosures Regarding Non - GAAP Measures This presentation refers to certain financial measures that are identified as non - GAAP. The Bancorp believes that these non - GAAP measures are helpful to investors to better understand the Bancorp’s [assets, earnings, and shareholders’ equity] at the date
Slide 5: Sustained Performance
SUSTAINED PERFORMANCE 27 - April - 2018 5
Slide 6: Over Decades of Performance
Over 3 Decades of Performance 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 Acquisition 0
Slide 7: Value-Driven Culture
Value - Driven Culture • To help our customers and communities be more successful Mission • Stability • Integrity • Community • Excellence Values • Shareholders • Customer • Employee • Communities Stakeholders 27 - April - 2018 7
Slide 8: Strategic Priorities
Strategic Priorities • Continual improvement to ROA • Noninterest income growth • Efficient overhead management Profitability • Strong risk management culture • Align risk management with strategy • Effective risk management systems • Credit culture Risk Management • Foster a change management cultu
Slide 9: 2017 Performance Summary
2017 PERFORMANCE SUMMARY 27 - April - 2018 9
Slide 10: 2017 Performance Summary
2017 Performance Summary Tax reform • Non - GAAP income* at $9.5, 3.7% increase over 2016 (without tax legislation impact) • Net income totaled $9.0mn, 2.0% decrease from 2016 when considering tax legislation • Expected benefits going forward Asset quality • Strong, stable loan portfolio • Non - per
Slide 11: Operating Results for the year ended December 31, 2017
Operating Results for the year ended December 31, 2017 Income* $9.5mn 3.7% increase ROA* 1.04% 1 bp increase Assets $927.3mn 1.5% growth Nonint. Income $7.8mn 1.8% growth Cost of Funds 0.32% Efficient funding Named to “Best Places to Work in Indiana” 2013 - 2018 By the Best Companies Group Named a t
Slide 12: Loans and Deposits
Loans and Deposits 32% 33% 31% 29% 27% 45% 44% 46% 47% 48% 13% 12% 12% 13% 12% 5% 6% 6% 6% 6% 5% 5% 5% 5% 5% $0.0 $50.0 $100.0 $150.0 $200.0 $250.0 $300.0 $350.0 $400.0 $450.0 $500.0 $550.0 $600.0 $650.0 $700.0 2013 2014 2015 2016 2017 Loan Mix 2013 - 2017 1-4 first liens Commercial real estate Comm
Slide 13: Assets
Assets 693.5 775.0 864.9 913.6 927.3 $500.0 $550.0 $600.0 $650.0 $700.0 $750.0 $800.0 $850.0 $900.0 $950.0 2013 2014 2015 2016 2017 NWIN Growth 2013 - 2017 Growth and Quality • Up $13.7mn in 2017 • 6.0% 5 year compound annual growth rate • $337.8mn in total loan originations resulting in $36.6mn of
Slide 14: Asset Quality
Asset Quality ¹Nonaccruing loans + accruing loans 90 days past due 0.90% 1.10% 0.98% 1.05% 0.84% 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% $0.0 $1.0 $2.0 $3.0 $4.0 $5.0 $6.0 $7.0 $8.0 $9.0 2013 2014 2015 2016 2017 Asset Quality 2013 - 2017 Allowance for loan loss Nonperforming loans / loans¹ $ in millions Stron
Slide 15: Interest Income (TE)
Interest Income (TE) Data Source: S&P Global Market Intelligence 3.89% 3.83% 4.03% 3.71% 3.91% 3.5% 3.6% 3.7% 3.8% 3.9% 4.0% 4.1% Indiana Banks Indiana Thrifts U.S. Banks U.S. Thrifts NWIN Interest Income / Avg. Assets (Tax Equivalent) Competitive yields • Positive impact from increasing yields and
Slide 16: Interest Expense
Interest Expense Top performer • Strong competitive advantage against peers • Driven by focus on core funds • Consistently lead peers in balance sheet funding Data Source: S&P Global Market Intelligence 0.41% 0.36% 0.43% 0.58% 0.32% 0.0% 0.1% 0.2% 0.3% 0.4% 0.5% 0.6% 0.7% Indiana Banks Indiana Thrif
Slide 17: Net Interest Margin (TE)
Net Interest Margin (TE) Strong margin • Results of strong funding management • Continues to expand as asset yields improve • Main driver of ROA Data Source: S&P Global Market Intelligence 3.68% 3.73% 3.86% 3.33% 3.84% 2.5% 2.7% 2.9% 3.1% 3.3% 3.5% 3.7% 3.9% 4.1% Indiana Banks Indiana Thrifts U.S. B
Slide 18: Noninterest Expense
Noninterest Expense 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 Data Source: S&P Global Market Intelligence
Slide 19: Return On Assets
Return On Assets Competitive ROA • Strategic plan calls for continued improvement in ROA • NWIN 2017 non - GAAP ROA 1.04%* • Long - term performance is the key to ROE and continued independence Data Source: S&P Global Market Intelligence 1.02% 0.61% 1.12% 1.15% 0.98% 0.0% 0.2% 0.4% 0.6% 0.8% 1.0% 1.
Slide 20: Building Capital
Building Capital 10.0% 9.2% 9.0% 9.2% 9.6% 6.0% 6.5% 7.0% 7.5% 8.0% 8.5% 9.0% 9.5% 10.0% 10.5% Dec 13 Dec 14 Dec 15 Dec 16 Dec 17 NWIN Tier 1 Capital 2013 - 2017 Building capital for growth • Well capitalized at 9.6% tier 1 capital • Deployed capital in 2014 & 2015 through acquisitions • Capital lev
Slide 21: Return on Equity
Return on Equity Continued excellence • Earnings and capital management deliver superior results to shareholders • Returned 37% of earnings to shareholders during 2017 • Performance recognized as a top 200 community bank for past 13 years by American Banker Magazine Data Source: S&P Global Market In
Slide 22: Shareholder Returns
Shareholder Returns Industry leading returns • Total Period Return of 17.75% • Single share increased by $5.65 or 14.5% • Dividends paid out per share of $1.15 or 2.6% dividend yield • Price to earnings per share – 14.2x • Price to book value per share – 139.9% Data Source: S&P Global Market Intelli
Slide 23: First Personal Acquisition
FIRST PERSONAL ACQUISITION 27 - April - 2018 23
Slide 24: Expanding in Chicagoland Market
Expanding in Chicagoland Market First Personal Financial Deal Announcement Executing Growth Strategy • Financial, strategic, and cultural fit • South suburban Chicagoland market a natural extension • Companies share similar values and culture • Pro - forma combined balance sheet of $1.1bn 27 - April
Slide 25: Peoples Banking Center Network
Peoples Banking Center Network Projected 19 full - service banking centers 27 - April - 2018 25
Slide 26: Deal Assumptions
Deal Assumptions • 5.6% TBV per share day 1 dilution • Expected 12.7% EPS accretion for 2019 • Approximately 3.5 years TBV per share earn back Shareholder Impact • $15.6 million purchase price (44% stock, 56% cash)* • 1.34x price to tangible book at close Consideration • 2.5% gross credit mark ($2.5
Slide 27: Appendix
APPENDIX 27 - April - 2018 27
Slide 28: Reconciliation of GAAP and prospective, non-GAAP measures
27 - April - 2018 Appendix (Reconciliation of GAAP and prospective, non - GAAP measures) Pro - forma December 31, Tax adjustment for December 31, 2017 revaluation of the 2017 GAAP deferred tax asset Non - GAAP (unaudited) (unaudited) (unaudited) Total assets $ 927,259 $ 628 $ 927,887 Income before i
Slide 29: Thank you
-qhanteen you. Peoples Leuk Ps —s J
NorthWest Indiana Bancorp — Shareholder Meeting (April 2018) on 6ix