Northwest Bancshares, Inc. · NASDAQ:NWBI
Northwest Bancshares — Shareholder Meeting (April 2018)
29 slides from Northwest Bancshares's shareholder meeting presentation, Apr 19, 2018
Slide 1: Northwest Bancshares Annual Meeting, April 2018
“NWBI” NASDAQGS Market Price - $16.73 as of 12/31/17 April 18, 2018 Exhibit 99.1
Slide 2: Forward Looking Statements
Forward Looking Statements • 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: Market Coverage
Market Coverage Anetwork of offices across three states
Slide 4: Corporate Profile and Overview
Corporate Profile and Overview • 172 full service retail banking locations • 2,106 full-time equivalent employees • Total assets of $9.36 billion • Net loans of $7.74 billion • Deposits of $7.83 billion • Tangible shareholders’ equity of $875 million • 102.4 million shares outstanding Market Capital
Slide 5: Historic Performance
HISTORIC PERFORMANCE
Slide 6: Asset Growth
Asset Growth 6 $1.9 $2.1 $2.6 $3.1 $3.4 $3.9 $4.3 $5.2 $5.8 $6.3 $6.4 $6.5 $6.7 $6.9 $8.0 $8.1 $8.0 $7.9 $7.9 $7.8 $9.0 $9.6 $9.4 $0.0 $2.0 $4.0 $6.0 $8.0 $10.0 $12.0 6 /3 0 /1 9 9 6 6 /3 0 /1 9 9 7 6 /3 0 /1 9 9 8 6 /3 0 /1 9 9 9 6 /3 0 /2 0 0 0 6 /3 0 /2 0 0 1 6 /3 0 /2 0 0 2 6 /3 0 /2 0 0 3 6 /3
Slide 7: Loan Growth and Mix
Loan Growth and Mix $0 $1,000,000,000 $2,000,000,000 $3,000,000,000 $4,000,000,000 $5,000,000,000 $6,000,000,000 $7,000,000,000 $8,000,000,000 $9,000,000,000 199 5 199 6 199 7 199 8 199 9 200 0 200 1 200 2 200 3 200 4 200 5 200 6 200 7 200 8 200 9 201 0 201 1 201 2 201 3 201 4 201 5 201 6 201 7 1-4
Slide 8: Deposit Growth and Mix
Deposit Growth and Mix $0 $1,000,000,000 $2,000,000,000 $3,000,000,000 $4,000,000,000 $5,000,000,000 $6,000,000,000 $7,000,000,000 $8,000,000,000 $9,000,000,000 199519971999200120032005200720092011201320152017 Savings Accounts Checking Accounts Money Market Accounts Certificates of Deposit 8 18% 22%
Slide 9: Net Income
Net Income (in millions of dollars) $16.3 $18.1 $20.4 $22.2 $23.9 $30.9 $31.4 $37.9 $40.0 $48.9 $57.8 $53.0 $53.5 $58.9 $48.5 $61.1 $64.2 $63.6 $66.6 $62.0 $67.0 $82.3 $83.7 $0.0 $10.0 $20.0 $30.0 $40.0 $50.0 $60.0 $70.0 $80.0 $90.0 1 9 9 5 1 9 9 6 1 9 9 7 1 9 9 8 1 9 9 9 2 0 0 0 2 0 0 1 2 0 0 2 2 0
Slide 10: Earnings Per Share
Earnings Per Share (Adjusted for Stock Splits and 2.25x Second-step Conversion) $0.13 $0.20 $0.19 $0.25 $0.25 $0.37 $0.39 $0.46 $0.49 $0.46 $0.44 $0.44 $0.30 $0.53 $0.64 $0.68 $0.73 $0.67 $0.71 $0.82 $0.83 $0.00 $0.10 $0.20 $0.30 $0.40 $0.50 $0.60 $0.70 $0.80 $0.90 1 9 9 7 1 9 9 8 199 9 2 0 0 0 2 0
Slide 11: Highlights for 2017
HIGHLIGHTS FOR 2017
Slide 12: Highlights for 2017
Highlights for 2017 Shareholder Value • Excluding the elevated loan losses of approximately $6 million, or $4 million after tax which resulted from the closure of our consumer finance subsidiary, income for the year was $88.7 million, a 7.8% increase over the previous year. • The market value of Nor
Slide 13: Stock Performance and Dividend Payouts
STOCK PERFORMANCE AND DIVIDEND PAYOUTS
Slide 14: Growth in Assets and Income
Growth in Assets and Income $2.1 $2.6 $3.1 $3.4 $3.9 $4.3 $5.2 $5.8 $6.4 $6.5 $6.7 $6.9 $8.0 $8.1 $8.0 $7.9 $7.9 $7.8 $9.0 $9.6 $9.4 $0.0 $10.0 $20.0 $30.0 $40.0 $50.0 $60.0 $70.0 $80.0 $90.0 $100.0 $0.0 $1.0 $2.0 $3.0 $4.0 $5.0 $6.0 $7.0 $8.0 $9.0 $10.0 Assets Income Assets Net Income
Slide 15: Growth in Assets and Earnings per Share
Growth in Assets and Earnings per Share $2.1 $2.6 $3.1 $3.4 $3.9 $4.3 $5.2 $5.8 $6.4 $6.5 $6.7 $6.9 $8.0 $8.1 $8.0 $7.9 $7.9 $7.8 $9.0 $9.6 $9.4 $0.00 $0.10 $0.20 $0.30 $0.40 $0.50 $0.60 $0.70 $0.80 $0.90 $1.00 $0.0 $1.0 $2.0 $3.0 $4.0 $5.0 $6.0 $7.0 $8.0 $9.0 $10.0 Asset Growth Earnings Per Share A
Slide 16: Annual Dividends Per Share
Annual Dividends Per Share $0.00 $0.20 $0.40 $0.60 $0.80 $1.00 $1.20 $1.40 $1.60 $1.80 1 9 9 5 1 9 9 6 1 9 9 7 1 9 9 8 1 9 9 9 2 0 0 0 2 0 0 1 2 0 0 2 2 0 0 3 2 0 0 4 2 0 0 5 2 0 0 6 2 0 0 7 2 0 0 8 2 0 0 9 2 0 1 0 2 0 1 1 2 0 1 2 2 0 1 3 2 0 1 4 2 0 1 5 2 0 1 6 2 0 1 7 Current Dividend Yield - $.68
Slide 17: Price Performance Since IPO
Price Performance Since IPO COMPARISON OF CUMULATIVE TOTAL RETURN SINCE IPO IN 1994 Among Northwest Bancshares, Inc., the NASDAQ Composite Index and the NASDAQ Bank Index
Slide 18: Priorities for Deployment of Capital
Priorities for Deployment of Capital 1. Fund internal (organic) loan and deposit growth 2. Maintain an attractive dividend yield 3. Buying back our shares when the economics are sound 4. Fund acquisition of other banks or branches of other banks – when they can be completed without significantly dil
Slide 19: Introduction of Ronald J. Seiffert, President and COO
Introduction of Ronald J. Seiffert President and Chief Operating Officer
Slide 20: Initial Observations and Impressions
Initial Observations and Impressions • Bank’s size and reputation • Historical financial performance • Transformational changes • Effective integrator of acquisitions • Quality of bank personnel • Strong culture driven by community bank values • Community engagement • Platform built for growth and s
Slide 21: Division Update: Steven G. Fisher, Chief Revenue Officer
DIVISION UPDATE Steven G. Fisher, Chief Revenue Officer
Slide 22: Production and Revenue Team Highlights 2017
Production and Revenue Team Highlights 2017 • Significant growth in … • Total loan production which exceeded $2.0 billion in 2017 versus $1.5 billion in 2016 with loans increasing $236 million or 3.1% • Retail and business checking account balances which increased by $176 million or 6.1% from the pr
Slide 23: Production and Revenue Team Highlights 2017
Production and Revenue Team Highlights 2017 • Successfully divested the administration and actuarial portion of our retirement services business while retaining the investment management responsibilities for the plans’ assets. • Acquired over 10,000 new consumer households and 3,700 new business cus
Slide 24: Division Update: William W. Harvey, Jr., Chief Financial Officer
DIVISION UPDATE William W. Harvey, Jr., Chief Financial Officer 24
Slide 25: Selected Financial Metrics 2011-2017
2017* 2016** 2015*** 2014 2013 2012 2011 A Net Income (000’s) $83,735 $82,264 $67,012 $61,962 $66,559 $63,560 $64,151 B Asset Yield 4.14% 4.19% 4.22% 4.24% 4.35% 4.65% 4.90% C Cost of Funds 0.42% 0.59% 0.93% 0.97% 1.03% 1.25% 1.52% D Net Interest Margin 3.82% 3.73% 3.49% 3.47% 3.52% 3.63% 3.66% E Re
Slide 26: Q1 2018 Balance Sheet
Q1, 2018 Balance Sheet March 31, December 31, 2018 2017 $ Change % Change Total cash and marketable securities 977,843 899,923 77,920 8.7% Mortgage loans - one- to four- family 2,772,148 2,776,203 (4,055) (0.1%) Home equity loans and lines of credit 1,288,361 1,310,355 (21,994) (1.7%) Consumer loans
Slide 27: Q1 2018 Income Statement
Q1, 2018 Income Statement Dec. 31, $ Change % Change 2018 2017 2017 $ Change % Change Total interest income 2,266 2.6% 89,533 87,267 91,561 (2,028) (2.2%) Total interest expense 1,076 16.1% 7,766 6,690 7,321 445 6.1% Net interest income 1,190 1.5% 81,767 80,577 84,240 (2,473) (2.9%) Provision for lo
Slide 28: Strategic Direction
STRATEGIC DIRECTION
Slide 29: Strategic Direction: Critical Issues
Strategic Direction Critical Issues • Will there be meaningful regulatory reform? • Enhancing shareholder value • Enhancing production volume and revenue growth • Improving profitability and efficiency • Management of capital • Acquisition, retention and development of talent • Maintaining effective
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