Finward Bancorp · NASDAQ:FNWD
Finward Bancorp — NorthWest Indiana Bancorp — Investor Presentation (September 2019)
27 slides from Finward Bancorp's investor presentation, Sep 24, 2019
Slide 1: Banking Fall 2019 Investor Presentation
BANKING FALL 2019 INVESTOR PRESENTATION
Slide 2: Keeps Getting Better
KEEPS GETTING BETTER STABILITY INTEGRITY COMMUNITY EXCELLENCE
Slide 3: Forward-Looking Statements
Fall 2019 FORWARD-LOOKING STATEMENTS This presentation may contain forward-looking statements regarding the financial performance, business prospects, growth and operating strategies of NorthWest Indiana Bancorp CNWIN’). For these forward-looking statements, NWIN clams the protections of the safe ha
Slide 4: Disclosures Regarding Non-GAAP Measures
Fall 2019 DISCLOSURES REGARDING NON-GAAP MEASURES This presentation refers te 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 Bancerp’s assets, eamings, and shareholders’ equity at the da
Slide 5: Overview & Introduction
OVERVIEW & INTRODUCTION STABILITY INTEGRITY COMMUNITY EXCELLENCE
Slide 6: Who We Are
Fall 2019 WHO WE ARE MISSION Peoples Bankis committed to helping our communities and customers be more successful VALUES STABILITY INTEGRITY COMMUNITY EXCELLENCE Customer experience Ethics Genuine concern Exceed expectations Risk management Tust Measurable impact Better, not just bigger Reliability
Slide 7: Who We Are
Fall 2019 WHO WE ARE Full-service, broadly-based community financial institution offering consumer, business, and wealth management services — in person and digitally 22 full-service Banking lo Centers 284 Employees $1.3 bn in Assets Accolades + Top 200 Community Bank for 14 consecutive years* + Bes
Slide 8: Strategic Overview
Fall 2019 STRATEGIC OVERVIEW Differentiation * Service-based value proposition * Performance and Profitability * Community Bank serving Northwest Indiana and South Chicagoland * Continued Independence Norn BANCORP Pore STABILITY = Market Expansion * Inorganic Growth * Organic Growth _s = Market Pene
Slide 9: Growth Story — Years
Fall 2019 GROWTH STORY — 25 YEARS <o 1 i | >» oo SG a , — a | 0$317 SH HP of
Slide 10: Growth Story
Fall 2019 GROWTH STORY Highlights 12s 2008 2013 zo | SY, | Sie Monite Assets ($ millions) $664.7 $6935 $1,096.2 9.6% $1,309.3 Net Income ($millions) $5.9 $71 $9.9 5.6% $6.2 Market Cap ¢$milions) $07 $71 $190 12.9% $152 ‘Stock Price ($ 12/31) $24 $25 $43 11.5% $44 Inorganic Expansion Year Institution
Slide 11: Total Return — Years
Fall 2019 TOTAL RETURN — 5 YEARS* 100% 030% 80% om 503% 40% 364% 20% 0% 20)% 2014, SNWIN Banco =—=SNLULS. Bank ==SNLUS. Thit aunezote West “imag ‘Peogles/- = sasury EGR COMANTY SCELEME ,, “lomation atheredtiom SEP Globe Market Itligence
Slide 12: Six Months 2019 Update
SIX MONTHS 2019 UPDATE STABILITY INTEGRITY COMMUNITY EXCELLENCE
Slide 13: Six Months 2019 Performance Summary
Fall 2019 SIX MONTHS 2019 PERFORMANCE SUMMARY Asset Quality Em a Total assets at $1.3 billion with 19.4% growth Capital continues to support growth plans Eamings at $6.2 million with 23.1% growth Closed on AJSB acquisition - 16.4% of assets as of date of close Fully integrated May 2019 Continue to b
Slide 14: Loan Portfolio Composition
Fall 2019 OAN PORTFOLIO COMPOSITION Total Loans $ 894.3 million as of 6/30/2019 Home Equity, $502 6 jal Real Estat
Slide 15: Deposit Composition
Fall POSIT COMPOSITIO Total Deposits $ 1,127.1 million as of 6/30/2019 Noninterest Bearing Cariicates of Deposit . i Checking, $178.4. 16: $317.6, 28° Money Market $186.0, 16 Savings, $214.1 19% (Dollarsin Milions)
Slide 16: Assets & Return on Assets
Fall 2019 ASSETS & RETURN ON ASSETS Growing to New Levels * Up $534.3 mn or 68.99% from end of 2014 tofirst six months 2019 + Ac uisitions have createda platform for growth + Non-performingassets tc ssets have decreased from 1.15% in 2014 to 1.03% at six months 2019; Non- performing assets were comp
Slide 17: Loans
Fall 2019 LOANS Acquisitions and Organic Growth * Portfolio up $406.1 mn or 83.2% $504 from end of 2014 to six months 2019 * Strategically repositioning the balance sheet * Loa fo of earningassets have increased from 63% in 2014 to ‘506 at six months 2019, helping profitability Organic growth pla bu
Slide 18: Deposits
Fall 2019 DEPOSITS Positioned to Fund Growth + Up $493.1 mn or 77.8% from end of 2014 to six months 2019 * Atsix months 2019, 72% of total deposits are non-maturity deposits, allowing continued access to a low-cost funding source + Positioned for organic growth through core deposit franchise + Atsix
Slide 19: Net Income & Earnings Per Share
NET INCOME & EARNINGS PER SHARE Increased Earnings * Record eamings in 2018, d: time acquisition + 2018 net income of $9.3 mn res in EPS of $3.17 + Six months 2019 net income of $6.2 sulted in EPS of $1.84 ented a 16.4% increase in Non-GAAP Adjusted Basis {adjusted for §2:1 mn aequisttion exp + YTD
Slide 20: Net Interest Income
NET INTEREST INCOME Increasing Despite Yield Curve * Actively mar yields nd funding co: reduce yield curve risk o $o4a 2 $o01 $308 + Net interest income up 38.8% six va ES months 2018 to six months 2019 ia * Strategic loan mix positioned to protect interest yield in falling rat cond cond sod oo oma
Slide 21: Adding Value
Adding Value + Noninterest income streams continue to be a strategic focus * 17.4% growth between 2017 and $9 $76 3 2018 ue + Plans to further enhance wealth z= management and mortgage banking business lines * Continue to competitively price bank services and look for new ory noninterest income stre
Slide 22: Noninterest Expense
NONINTEREST EXPENSE Focused Expense Management + Recent acquisitions drivingrati noninterest expense toavera higherin 2018 and six month yel core expensesremain stable 2019 was and was ciency ratiofor six mo 69.2%, for 2018 was 72.2 66.9% for 2014 + Long term, noninterest expense to fed under 3.00%
Slide 23: Looking Ahead
LOOKING AHEAD Fall 2019 Recent Mergers + Focusing on building out Ilinois Retail Banking strategy + Continue to realize cost savings and operational efficiencies Growth + Execution of sales strategies and continued organic growth in current foot! + Continued product developmentand technology enhance
Slide 24: Thank You
THANK YOU Peoples Zink
Slide 25: Non-GAAP Reconciliation — Six Months 2019
Fall 2019 NON-GAAP RECONCILIATION — SIX MONTHS 2019 Table 1 - Reconciliation of the Non-GAAP Eamings and Performance Ratios GAAP net Income GAAP income tax expense GAAP income before income taxes acquisition costs Proforma net income change (in thousands, except per share data) (Unaucited) June 30,
Slide 26: Non-GAAP Reconciliation — Six Months 2019
a (Sin thousands) (Unaveites Onesie acquisition ‘costs - tax For the six months ended, June 30, 2019 GAAP. effected Non-GAAP Net income S$ 6245 «S170 SS (8.005 Average assets $1,247,870 S$ _1247.870 ROA 41.00% 1.28% (Sin thousands) (Unaucited Onesie acquisition For the six months ended, June 30, 201
Slide 27: Non-GAAP Reconciliation — Six Months 2019
a Fall 2019 NON-GAAP RECONCILIATION — SIX MONTHS 2019 (Sin thousands) Unaudited) ‘Additional resenes not For the six months ended, June 30, 2019 GAAP___patt ofthe ALL _Non-GAAP ‘Allowance for loan losses (ALL) S$ 87 S742 S$ 15.886 Total loans S$ 994.274 894,274 ALL to total loans 0.98% 178% (Sin tho
NorthWest Indiana Bancorp — Investor Presentation (September 2019) on 6ix