Investor Presentaiton
Attractive Financial Profile
Valuation
Consideration
Impact on
Capital
Synergies and
Costs
Accretion
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Purchase price based on the book value of equity plus a premium
Favourable premium compared to recent comparable transactions
Issuing $225 million of subscription receipts at $51.70. The subscription receipts will be
exchangeable into common shares of the Bank upon closing of the acquisition
Bank's current liquidity position to fund remainder of the assets
Based on anticipated assets at the close of the transaction and giving effect to the
related equity issuance, it is expected that the Bank's pro forma CET1 ratio would be
maintained within the guided 7.8% to 8.2% range
Revenue synergies anticipated to be realized over time through cross-selling between
existing NCF / LBC customers
Approximately $6 million of transaction and integration costs are currently expected with
a substantial portion to be incurred by the end of calendar 2017
Attractive margins that should be accretive, with the Bank's lower cost of funds expected
to have a positive impact on Northpoint's margins
⚫ Bank believes this acquisition will be accretive to its EPS in the first full year of operation
and by approximately 4% in 2019
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