2016 AGM Presentation

Annual and Special
Meeting of Shareholders
April 27, 2016
Officers in Attendance
David Taylor
Barry Walter
Shawn Clarke
Jonathan Taylor
Ross Duggan
Nick Kristo
Mike Dixon
Aly Lalani
Cameron Mitchell
Scott Mizzen
Jean-Paul Beker
Jason Patterson
David Thoms
Joanne Johnston
President & Chief Executive Officer
SVP & Chief Financial Officer
SVP & Chief Operating Officer
SVP, Deposit Services & Human Resources
SVP, Real Estate Lending
CRO & SVP Credit Risk & Administration
Vice President, Consumer Lending
Vice President, Treasurer
Vice President, General Counsel & Corporate Secretary
Vice President, Real Estate Lending
Vice President, Real Estate Lending
Vice President, Investment Risk & Control
Vice President, Structured & Corporate Finance
Chief Internal Auditor
Directors in Attendance
Hon. Thomas Hockin
Robbert-Jan Brabander
David Bratton
Richard Carter
Arnold Hillier
Colin Litton
Susan McGovern
Paul Oliver
David Taylor
Auditors
Director Nominees
Hon. Thomas Hockin
David Taylor
Robbert-Jan Brabander
David Bratton
Richard Carter
Arnold Hillier
Colin Litton
Susan McGovern
Paul Oliver
Avery Pennarun
Appointment of Auditors
Advisory
Forward-looking Statements
The Bank occasionally makes forward-looking statements about its objectives, operations and
targeted financial results. These statements may be written or verbal and may be included in such
things as press releases, corporate presentations, Annual Reports and other disclosure documents
and communications. By their very nature, forward-looking statements involve inherent risks and
uncertainties, both general and specific, and risks exist that predictions, forecasts, projections and
other forward-looking statements will not be achieved. A number of important factors could cause
actual results to differ materially from the plans, objectives, expectations, estimates and intentions
expressed in such forward-looking statements. These factors include, but are not limited to, the
strength of the Canadian economy in general and the strength of local economies within Canada in
which we conduct operations; the effect of changes in interest rates; the effects of competition in the
markets in which we operate; capital market fluctuations; and the impact of changes in laws and
regulations. When relying on forward-looking statements to make decisions, investors and others
should carefully consider these factors and other uncertainties or potential events. The Bank makes
no undertaking to update any forward-looking statement that is made from time to time by the Bank.
David Taylor, President & CEO
Introduction & Performance Review:
- F2015 Business Line Performance
- Bank Financial Performance
Strategic Review:
- The Way Ahead
- Key Growth Drivers
Management Presentation.
2016
Annual & Special
Meeting of Shareholders
04.27.16 Presented By: David Taylor
We aspire to be the preferred provider of
financial solutions to our clients.
Vision.
To deliver a competitive and sustainable rate of
return to shareholders by delivering ideally suited
financial products, services and solutions to our
clients in selected niche markets throughout
Canada.
Mission.
Leverage existing financial product
distribution channels
in order to minimize investment in physical
infrastructure and human resources.
Design, develop and maintain
state-of-the-art, custom banking
business and administration software in
order to maximize transaction capacity,
velocity and operational efficiency.
Strategic Priorities.
Deposit Activity.
Deposits raised through “branchless” network of
over 110 brokers across Canada.
Over 5,000 Investment Advisors in more than
450 Deposit Broker offices across Canada.
BRANCHLESS BANKING MODEL
Lending Services.
Real Estate.
Land and construction loans, residential term mortgages,
commercial term mortgages, and insured mortgages.
Sourced directly through the Bank or via brokers and
syndication partnerships with other financial institutions.
Bulk Lease/Loan Purchases.
Bulk purchases of fully serviced, small ticket loans/leases
from Sellers (originators).
Sellers primarily small/medium sized financial companies.
Each bulk purchase structured to exhibit risk profile of Arated security through cross/over collateralization.
Corporate Loans & Leases.
Term loans and leases to corporate and mid-market
commercial companies.
Financing to public setor entities and PPPs.
Sourced directly or through small brokers, leasing
companies/vendor partners or syndication partnerships
with other financial institutions.
BRANCHLESS BANKING
MODEL
Consumer
Loans.
Consumer loans sourced through purchases from nonregulated lenders.
Private label credit card program with Home Hardware.
Founded in
CMHC
approved
lender.
1979
Schedule I Bank
with
as
Pacific & Western
Trust Corp.
$1.7 billion
in assets.
Member institution
of the
Became a
Canada Deposit
Insurance
Corporation.
Schedule I
Canadian
Chartered Bank
in
Listed on
TSX
August 27
2013
Bank Overview.
August 2002.
78
Full-time
employees.
$8.2M
$1.7B
$1.4B
$173M
13.17%
NET INCOME
2015
ASSETS
DEPOSITS
SHAREHOLDERS’
EQUITY
TOTAL
CAPITAL
Bank Overview.
13.6%
10.6%
10.1%
10.1%
10.1%
Comparative Capital Ratios.
COMMON EQUITY TIER 1
9.9%
9.9%
9.7%
8.6%
7.7%
16.8%
14.2%
14.2%
13.7%
13.5%
Comparative Capital Ratios.
TOTAL CAPITAL
13.4%
13.4%
13.2%
12.0%
10.8%
Other Loans and Leases
$157
Credit Cards
$27
Liquid Assets
$201
Other Loans and Leases
$131
2%
2%
8% 11%
11% 13%
33%
Bulk Financing
and Leases
$485
Credit Cards
$27
Liquid Assets
$188
40%
41%
January 31, 2015
Real Estate Loans
and Mortgages
$618
Bulk Financing
and Leases
$671
Balance Sheet.
JANUARY 31, 2016 BALANCE SHEET ANALYSIS
39%
January 31, 2016
Real Estate Loans
and Mortgages
$655
800M
600M
400M
Our bulk receivable purchase program
continues to grow as we establish new
relationships and increase purchase
from exiting partners.
200M
Q4'12 Q1'13
Q2'13 Q3'13
Q4'13
Q1'14
Q2'14
Q3'14
Bulk Receivable Purchases.
Q4'14
Q1'15
Q2'15
Q3'15
Q4'15
Q1'16
60
140M
Number of Trustee Offices
Total Trustee Deposits
45
105M
30
70M
15
April 2012, PWB launches Trustee
Integrated Banking Services;
As of January 31, 2016: 53 Trustee
Offices and over $121M on Deposit.
Q4'12 Q1'13 Q2'13
Q3'13 Q4'13 Q1'14
Q2'14 Q3'14
Q4'14 Q1'15
Q2'15 Q3'15
Q4'15 Q1'16
Trustee Integrated Banking.
Q4'12 Q1'13 Q2'13
Q3'13 Q4'13 Q1'14
Q2'14 Q3'14
Q4'14 Q1'15
Q2'15 Q3'15
Q4'15 Q1'16
40
2.21%
Net Interest Income (NII) $millions
Net Interets Margin (NIM)
35
2.18%
2.30%
2.10%
1.96%
1.90%
30
1.74%
1.70%
25
1.30%
20
1.15%
1.50%
1.21%
1.30%
15
1.10%
10
0.90%
5
0.70%
0
0.50%
2010
CGAAP
2011
IFRS
2012
IFRS
Key Performance Trends.
2013
IFRS
2014
IFRS
2015
IFRS
YTD
2016
Gross Impaired Loans / Total Loans
0.14%
2011
Credit Quality.
0.13%
2012
0%
0%
0%
0%
2013
2014
2015
2016
$milions
1800
1600
1400
1200
1000
800
600
400
200
0
2004
Total Assets.
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
Q1
2016
Common Shares:
PWB:TSX $5.50
Preferred Shares:
PWB.PR.A:TSX
$10.00 (yield 7.0%)
Preferred Shares:
PWB.PR.B:TSX
$10.00 (yield 7.0%)
Issued Shares: 19,437,171
Non-cumulative 5-year rate
preferred shares, series 1.
Non-cumulative 6-year rate reset
preferred shares, series 3.
Issued Shares 1,461,460
Issued Shares 1,681,320
Based on recent share price of
$9.50 Market Capitalization was
$13,883,870.
Based on recent share price of
$9.50 Market Capitalization was
$15,972,540.
Based on recent share price
$5.50, Market Capitalization was
$106,904,441.
Financial Overview.
For the year ended October 31
2015
(IFRS)
2014
(IFRS)
2013
(IFRS)
2012
(IFRS)
2011
(IFRS)
Net Interest
Income
34.0
27.9
25.6
19.6
16.9
Net Interest
Margin (NIM)
2.21%
1.96%
1.75%
1.30%
1.21%
Net Income
8.2
5.7
1.8
3.8
7.6
Assets
1,625
1,446
1,405
1,534
1,486
Deposits
1,326
1,194
1,187
1,317
1,270
Shareholder’s
Equity
174.6
152.5
133.1
93.1
96.6
Common Equity
Tier 1 Ratio
10.32%
11.25%
11.29%
n/a
n/a
Total Capital
Ratio
13.51%
13.69%
12.99%
12.81%
13.33%
Financial Snapshot.