Northwest Bancorporation — Investor Presentation (June 2010)
21 slides from Northwest Bancorporation's investor presentation, Jun 1, 2010
Slide 1: Northwest Bancorporation, Inc. Shareholder Rights Common Stock Offering
Northwest Bancorporation, Inc. Shareholder Rights Common Stock Offering Investor Presentation
Slide 2: Legal Disclaimer
Legal Disclaimer In the course of our presentation, we may discuss matters that are deemed to be forward- looking statements, which are intended to be covered by the safe harbor for “forward-looking statements” provided by the Private Securities Litigation Reform Act of 1995 (the “Reform Act”)(1). F
Slide 3: Offering Summary
Offering Summary Issuer: Northwest Bancorporation, Inc. Ticker: (OTCBB: NBCT) Closing Stock Price (5/25/2010): $6.00 Tangible Book Value Per Share: $9.83 Type of Security: Common Stock Offering Type: Non-Transferable Shareholder Rights Transaction Size: $4,000,000 Upsize Option: 20% (up to $4,800,00
Slide 4: Offering Rationale
Offering Rationale Further strengthen balance sheet • Increase tangible common equity and enhance capital ratios • Proactive approach to uncertain economic and regulatory environment Better positions the Company to take advantage of opportunities resulting from market dislocation • Favorable competi
Slide 5: Company Profile
Company Profile Company Name: Northwest Bancorporation, Inc. Bank Name: Inland Northwest Bank Year Established: 1989 Headquarters: Spokane, WA Branch Network: 11 Branches (7 in WA and 4 in ID) Assets: $398.2 million Gross Loans: $315.4 million Deposits: $343.3 million Common Equity: $23.6 million Ne
Slide 6: Investment Highlights
Investment Highlights Returned to profitability in 1st Quarter 2010 Experienced and disciplined management team Attractive and growing core deposit base Growing net interest margin, operating revenue and core earnings Largely avoided the major credit quality problems that have plagued peers in the r
Slide 7: 1st Quarter Update
1st Quarter Update Update on the financial results for the Company for the fiscal quarter ended 3/31/2010 • Profit of $586 thousand during Q1 2010 Earnings • Core earnings of $1.7 million during Q1 2010 • Operating revenue of $4.6 million during Q1 2010 • Net interest margin expanded to 4.04% during
Slide 8: Executive Management Team and Ownership
Executive Management Team and Ownership Executive Management Team and Current Insider Ownership Years With Ownership Name Title Age Company % Randall L. Fewel Chief Executive Officer 61 16 2.05% Holly A. Poquette, CPA Chief Financial Officer 39 13 0.35% Douglas J. Beaudoin Manager of Mortgage Depart
Slide 9: Conservative and Steady Growth
Conservative and Steady Growth Total Assets (From 1990-Present) $450 $400.2 $393.7 $398.2 $400 $343.7 $350 $300 $278.9 $245.5 $250 $220.5 $209.1 $210.5 $192.9 $200 $173.7 $151.9 $161.2 $150 $120.4 $99.5 $100 $84.5 $65.6 $54.7 $36.5 $50 $25.6 $17.6 $- 9 Source: SNL Financial and Internal Company Repo
Slide 10: Attractive Branch Network
Attractive Branch Network Airway Heights, WA Regional concentration in Eastern Washington and Northern Idaho • 11 branches across Spokane County and Kootenai County • High quality full-service banking facilities • 2 new branch locations opened since 2007 and 4 branch relocations since 2006 Branch Lo
Slide 11: Established Market Share Position
Established Market Share Position Deposit Market Share Deposit Number of Deposits Growth Market Deposit Rank Institution (State) Branches in Market (1-Year) Share % Number of Deposits Growth Market 1 Sterling Financial Corp. (WA) 8 $ 1,969,138 +12.8% 26.97% 2 W.T.B. Financial Corp. (WA) 16 $ 1,746,8
Slide 12: Attractive and Growing Deposit Base
Attractive and Growing Deposit Base • Non-interest bearing deposits represent 18.4% of total deposit balances • Core deposits increased $16.6 million, or 10.08% since 12/31/2009 • Non-core deposits decreased $11.0 million, or 6.38% since 12/31/2009 • Significant new account growth during 1st quarter
Slide 13: Net Interest Margin
Net Interest Margin • The Company’s net interest margin has expanded 64 basis Interest Income points since 1st quarter 2009 • Margin expansion is largely attributed to decreasing interest $5,600 expense and stable interest income $5,545 $5,545 $5,550 $5,505 • Interest expense of $1.8 million compare
Slide 14: Earnings Power
Earnings Power Operating Revenue Returned to Profitability During 1st Quarter 2010 $4,750 $4,589 Results from 1st Quarter 2010 • Net interest income of $3.6 million $4,500 $4,396 $4,341 • Net income of $586 thousand (before preferred dividends) $4,226 • Net income for common shareholders of $417 tho
Slide 15: Capital Ratio Snapshot
Capital Ratio Snapshot 16.00% Capital Snapshot 14.00% Northwest Bancorporation, Inc. ($000s) 2010 Q1 Scen. 1 Scen. 2 Common Equity (Actual) $ 23,587 $ 23,587 $ 23,587 Additional Capital From Offering - 4,000 4,800 12.00% Common Equity 23,587 27,587 28,387 TARP Preferred Equity 10,618 10,618 10,618 T
Slide 16: Diversified Loan Portfolio
Diversified Loan Portfolio Loan Detail By Category Loan Composition Balance % of Commercial Non-Real ($000s) Gross Loans Estate Owner-Occupied CRE $ 83,381 26.4% 17.3% Commercial Construction Non Owner-Occupied CRE 65,132 20.7% 5.6% Land and Land Commercial Real Estate 148,513 47.1% Development 1-4
Slide 17: Credit Quality Snapshot
Credit Quality Snapshot Non-Accrual Loan Trends Credit Quality Statistics ($000s) 3/31/2009 6/30/2009 9/30/2009 12/31/2009 3/31/2010 $16.0 4.50% $14.0 $13.6 $14.0 Beginning Reserve Balance $ 4,737 $ 5,453 $ 4,425 $ 6,334 $ 7,082 $11.7 4.00% Plus: Loan Loss Provisions 1,180 1,800 2,400 2,047 500 $12.
Slide 18: Appendix
Appendix 18
Slide 19: Historical Key Financials
Historical Key Financials 2005 2006 2007 2008 2009 3/31/2010 Balance Sheet ($000s) Cash and Equivalents $ 10,570 $ 12,369 $ 12,271 $ 11,414 $ 18,119 $ 21,522 Investment Securities 36,935 35,955 37,206 27,339 26,069 36,131 Net Loans 186,465 216,693 276,452 335,207 317,198 309,071 Loan Loss Reserve 2,
Slide 20: Historical Key Ratios
Historical Key Ratios 2005 2006 2007 2008 2009 3/31/2010 Performance Ratios Net Interest Margin 4.39% 4.57% 4.35% 3.71% 3.67% 4.04% Yield on Interest Earning Assets 6.39% 7.26% 7.58% 6.66% 5.87% 5.99% Cost of Funds 2.04% 2.77% 3.31% 3.00% 2.28% 1.97% Efficiency Ratio 69.6% 66.6% 71.0% 77.9% 82.2% 70
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