Finward Bancorp · NASDAQ:FNWD
Finward Bancorp — Merger or Acquisition (July 2021)
10 slides from Finward Bancorp's merger presentation, Jul 29, 2021
Slide 1: Enhancing Chicagoland Presence
Exhibit 99.2 Filed by Finward 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: Finward Bancorp Commission File No. 000-26128 FOR FURTHER INFORMATION Contact Sarah Ricciardi (219) 853-7575 +
Slide 2: Disclosures: Forward-Looking Statements
July 29, 2021 Disclosures Forward-Looking Statements This presentation may contain forward-looking statements regarding the financial performance, business prospects, growth and operating strategies of Finward Bancorp (“FNWD”). For these statements, FNWD claims the protections of the safe harbor for
Slide 3: Overview of Royal Financial, Inc. (RYFL)
July 29, 2021 Overview of Royal Financial, Inc. (RYFL) Company Overview Branch Map § Royal Financial, Inc. has provided banking and financial services in the Chicagoland area since 1887 through its wholly-owned subsidiary Royal Savings Bank § Headquartered in Chicago, IL and operates nine full-servi
Slide 4: Pro Forma Franchise Overview
July 29, 2021 Pro Forma Franchise Overview Pro Forma Branch Map § 31 full-service branches in the Chicago-Naperville-Elgin, IL-IN-WI MSA FNWD (22) § Pro Forma, Finward Bancorp will have a top 25 deposit market share in the RYF L (9) Chicago-Naperville-Elgin, IL-IN-WI MSA − Meaningful presence in one
Slide 5: Transaction Rationale
July 29, 2021 Transaction Rationale (1) § Strengthens presence in attractive Chicago market, with pro forma deposits of approximately $1.9 billion and top 25 deposit market share in the Chicago-Naperville-Elgin, IL-IN-WI MSA § Meaningful acceleration of Illinois market expansion and leverages existi
Slide 6: Continuing Our Growth Story
July 29, 2021 Continuing Our Growth Story $2,139 Merger with Royal Financial is a capstone of a multi-year transformation that has enhanced our platform for organic growth $533 (1) Acquired Assets $1,329 Total Organic Assets $1,096 $179 $1,606 $146 $865 $775 $1,498 $57 $38 $1,150 $927 $950 $914 $808
Slide 7: Transaction Terms
July 29, 2021 Transaction Terms (1) Aggregate D eal Value§ $52.9 million § Each share of RYFL may elect to receive either 0.4609 shares of FNWD stock or $20.14 in cash Consideration Structure § Elections subject to proration such that 65% of RYFL shares will receive FNWD stock and 35% will receive c
Slide 8: Transaction Details
July 29, 2021 Transaction Details Earnings Estimates§ FNWD and RYFL earnings assumptions based on management projections § 42% of RYFL’s non-interest expense base with 75% realized in 2022 and 100% realized thereafter Cost Savings ‒ Validated through comprehensive due diligence § 0.97% of RYFL’s non
Slide 9: Disciplined and Experienced Acquiror
July 29, 2021 Disciplined and Experienced Acquiror First Federal Savings Liberty Savings & Loan Association of Bank, FSB Hammond Transaction Closed Closed Closed Closed Announced April 2014 July 2015 January 2019 July 2021 July 2018 D ate Transaction (1) (1) $16M $34M $53M Value (2) $38M $57M $146M
Slide 10: Pro Forma Loan & Deposit Portfolio
July 29, 2021 Pro Forma Loan & Deposit Portfolio FNWD RYFL Pro Forma FNWD RYF L Pro Forma 8.6% 0.2% 10.7% 10.0% 3.2% 4.7% 1.9% 10.9% 15.2% 29.4% 27.7% 31.9% 40.6% 13.3% $971M $464M $1,435M 5.5% 3.8% 19.1% 17.0% 2.6% 12.4% 13.3% 0.3% 11.1% 6.5% Construction & Land Residential Mortgage Construction &