Northwest Bancshares, Inc. · NASDAQ:NWBI
Northwest Bancshares — Shareholder Meeting (April 2017)
32 slides from Northwest Bancshares's shareholder meeting presentation, Apr 20, 2017
Slide 1: NWBI NASDAQGS Market Price April 2017
“NWBI” NASDAQGS Market Price - $18.03 as of 12/31/16 April 19, 2017 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 IN Anetwork of offices across four states TL ortnest Bank mca network @ Northwest consumer Discount Company ofice network
Slide 4: Corporate Profile and Overview
Corporate Profile and Overview • 176 full service retail banking locations • 2,466 full-time equivalent employees (2,145 full-time and 321part-time employees) • Total assets of $9.62 billion • Net loans of $7.50 billion • Deposits of $7.88 billion • Tangible shareholders’ equity of $831 million Mark
Slide 5: Buffalo Branch Acquisition: A Transformational Deal
BUFFALO BRANCH ACQUISITION September 9, 2016 A Transformational Deal
Slide 6: Acquisition of Offices in Erie and Niagara Counties, NY: Background
Acquisition of 18 Offices in Erie and Niagara Counties, NY Background • 18 offices with deposits of $1.643 billion, an average of $91.2 million per office. Average cost of deposits was .19%. 38.5% of the deposits were in checking accounts. • $460 million of performing consumer, residential real esta
Slide 7: Acquisition of Offices in Erie and Niagara Counties, NY: Value Provided
Acquisition of 18 Offices in Erie and Niagara Counties, NY Value Provided • Moved Northwest from #6 to #4 in market share behind M&T, Key and Bank of America (M&T and Key combined have 75% market share, with Bank of America and Northwest hovering around 5%.) • Increased our average deposits per offi
Slide 8: Historic Performance
HISTORIC PERFORMANCE
Slide 9: 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 $8,000,000,000 199 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 2 0 1 3 201 4 201 5 2 0 1 6 1-4 Family Residentia
Slide 10: 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 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
Slide 11: 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 $67.0 $67.4 $66.0 $60.6 $67.0 $84.3 $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 0 3 2
Slide 12: 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 $0.68 $0.71 $0.84 $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 1 9 9 9 2 0 0 0 2 0 0 1
Slide 13: Stock Performance and Per Share Information
STOCK PERFORMANCE AND PER SHARE INFORMATION
Slide 14: 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 14
Slide 15: 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 Current Dividend Yield - $.64/$18.03
Slide 16: Highlights for 2016
HIGHLIGHTS FOR 2016
Slide 17: Highlights for 2016: Shareholder Value
Highlights for 2016 Shareholder Value • Paid regular dividends of $0.60 for an approximate dividend yield that exceeded 4.50% based upon the beginning of the year market value. • The market value of Northwest shares increased $4.64, or 35%, during 2016. • The combined return on Northwest shares in 2
Slide 18: Highlights for 2016: Meeting Regulatory Expectations
Highlights for 2016 Meeting Regulatory Expectations • Continued to strengthen our Enterprise Risk Management program to meet the expectations of a $10 billion bank. o Launched projects to strengthen the management of vendor risk, interest rate risk, liquidity risk and credit risk. o Developed a plan
Slide 19: Division Update: Production and Revenue Enhancement Division
DIVISION UPDATE Production and Revenue Enhancement Division Steven G. Fisher, Chief Revenue Officer
Slide 20: Division Charge and Areas of Responsibility
Division Charge “Utilizing highly-effective sales processes to enhance customer procurement, deepen customer relationships and promote revenue growth.” Areas of Responsibility Region Presidents and Office Network Commercial Lending Trust and Retail Investments Retirement Services Insurance Marketing
Slide 21: Production and Revenue Team Highlights 2016
Production and Revenue Team Highlights 2016 • Significant growth in … • Total loan production exceeded $1.5 billion with net loans increasing $483.6 million or 6.8% • Retail and business checking account balances increased by $671.8 million or 29.8% from the previous year. Checking accounts represen
Slide 22: Production and Revenue Team Highlights 2016 (continued)
Production and Revenue Team Highlights 2016 • Insurance Services gross revenue increased 14% • Aligned with our growth strategy, we acquired two agencies: • Best Agency – Butler, Pa (Southwest Region) • Winans Agency – Warren, Pa (Northwest Region) • J.D. Power Award • For the fifth time in seven ye
Slide 23: First Niagara Branch Acquisition
First Niagara Branch Acquisition • Purchased 18 offices with an average deposit base of $91.2 million • Acquired 145,000 deposit accounts and 26,000 loan accounts • Converted customer information from 25 different systems • Re-issued 54,000 debit and credit cards • Replaced 10 million checks • Maile
Slide 24: Division Update: Technology, Operations, Finance and Support Division
DIVISION UPDATE Technology, Operations, Finance and Support Division William W. Harvey, Jr., Chief Financial Officer 24
Slide 25: Division Charge and Areas of Responsibility
Chief Financial Officer William Harvey Senior EVP Technology, Operations, Finance and Support Division Division Charge “Providing reliable support throughout our company while utilizing technology and streamlined processes to drive efficiency in all areas of our operations.” Areas of Responsibility
Slide 26: Financial Performance 2010-2016
2016* 2015** 2014 2013 2012 2011 2010 A Net Income (000’s) $84,321 $67,012 $61,962 $66,559 $63,560 $64,151 $57,523 B Asset Yield 4.19% 4.22% 4.24% 4.35% 4.65% 4.90% 5.02% C Cost of Funds 0.59% 0.93% 0.97% 1.03% 1.25% 1.52% 1.83% D Net Interest Margin 3.73% 3.49% 3.47% 3.52% 3.63% 3.66% 3.52% E Retur
Slide 27: Branch Consolidation
Branch Consolidation • Bank and branch consolidation is trending in the industry. • Capital investment is shifting from brick and mortar to technology. • Customer behavior is changing. Over the past five years check inclearings and teller transactions at Northwest are down 14%, and 21% respectively,
Slide 28: Enhancing Customer Convenience and Security
Enhancing Customer Convenience and Security • Multichannel payment solution providing customers more options to make loan payments via electronic check, ACH, Debit Card or Website • Collateral Store – offering print-on-demand capability in our branches to replace stocked brochures • New online and m
Slide 29: Other Accomplishments
Other Accomplishments • Completed the signage replacement on all Northwest facilities to support the new brand • Secured a region headquarters site in Williamsville, NY to house region management, lending and credit teams, compliance, commercial loan operations, training labs and a second call cente
Slide 30: Asset Quality
Asset Quality ($ in millions) 2016 2015 2014 2013 2012 2011 2010 A Total Assets $9,623. 6 $8,952.9 $7,775. 0 $7,879.9 $7,941. 2 $7,957.7 $8,148. 2 B Average Loans $7,391. 5 $6,460.1 $5,883. 2 $5,682.4 $5,655. 2 $5,508.8 $5,487. 6 C Nonperforming assets (NPA) $85.1 $81.7 $96.8 $126.1 $148.1 $158.0 $1
Slide 31: Strategic Direction
STRATEGIC DIRECTION
Slide 32: Strategic Direction: Critical Issues
Strategic Direction Critical Issues A. Will there be meaningful regulatory reform? B. Enhancing Shareholder Value • Enhancing Production Volume and Revenue Growth • Improving Profitability and Efficiency • Management of Capital C. Acquisition, Retention and Development of Talent D. Maintaining Effec
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