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REGIONAL FINANCIAL SERVICES MERGERS & ACQUISITIONS UPDATE

MIDWEST REGION

Q2 2018

bkdcorporatefinance.com

REGIONAL M&A TRANSACTION STATISTICS

2

Number of Regional Whole Bank & Thrift Transactions

Regional Average Deal Value to Tangible Book

Regional Average Deal Value to LTM Earnings

Regional Average Deal Value to Assets Regional Average Tangible Book Premium to Core Deposits

Note: Includes all whole bank transactions in Illinois, Indiana, Iowa, Kansas, Kentucky, Michigan, Minnesota, Missouri, Nebraska, North Dakota, Ohio, South Dakota and Wisconsin Source: S&P Global Market Intelligence

78

112 105 11188

42

69

0

50

100

150

'13 '14 '15 '16 '17 YTD Jun '17 YTD Jun '18

1.281.40 1.36 1.30

1.601.67

0.0

0.2

0.4

0.6

0.8

1.0

1.2

1.4

1.6

1.8

'13 '14 '15 '16 '17 YTD Jun'18

17.1219.56

17.3318.44 18.27 19.10

0

5

10

15

20

25

30

'13 '14 '15 '16 '17 YTD Jun'18

11.0%12.6%

13.8% 13.6%15.1%

16.6%

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

'13 '14 '15 '16 '17 YTD Jun'18

3.5%

4.9%4.4% 4.2%

8.4%

9.4%

0%

1%

2%

3%

4%

5%

6%

7%

8%

9%

10%

'13 '14 '15 '16 '17 YTD Jun'18

bkdcorporatefinance.com

NATIONAL M&A TRANSACTION STATISTICS

3

National Average Deal Value to Tangible Book

National Average Deal Value to LTM Earnings

Number of National Whole Bank & Thrift Transactions

BKD CORPORATE

FINANCE SERVICES

• Company Sales & Divestitures • Management Buyouts

• Debt & Equity Recapitalizations

• Succession Planning & Strategic Options Analysis

• Mergers & Acquisitions • Affiliations

Source: S&P Global Market Intelligence

144

110

186

148

219 225

284 276

239257

121140

0

50

100

150

200

250

300

'08 '09 '10 '11 '12 '13 '14 '15 '16 '17 YTD Jun'17

YTD Jun'18

1.7

1

1.1

6

1.1

8

1.1

0 1.2

0

1.2

5 1.4

3

1.4

4

1.3

8

1.6

7

1.7

4

0.0

0.2

0.4

0.6

0.8

1.0

1.2

1.4

1.6

1.8

2.0

'08 '09 '10 '11 '12 '13 '14 '15 '16 '17 YTDJun'18

19

.59

16

.26

21

.59

20

.35

18

.72

19

.50 21

.51

21

.05

20

.21

19

.53 2

2.8

10

5

10

15

20

25

'08 '09 '10 '11 '12 '13 '14 '15 '16 '17 YTDJun'18

bkdcorporatefinance.com

NATIONAL M&A TRANSACTION STATISTICS BY ASSET SIZE

4

National Average Deal Value to Tangible Book

National Average Deal Value to LTM Earnings

NATIONAL M&A TRANSACTION STATISTICS BY PERFORMANCE

National Average Deal Value to Tangible Book by Performance

National Average Deal Value to LTM Earnings by Performance*

Source: S&P Global Market Intelligence

*Deal value to LTM earnings for negative ROAA transactions are not meaningful and therefore are not presented in this chart

1.1

8 1.3

9

1.3

6

1.2

8 1.5

4

1.5

8

1.6

6

1.6

5 1.9

3

1.7

6

2.1

4

2.5

2

0.00

0.50

1.00

1.50

2.00

2.50

3.00

'13 '14 '15 '16 '17 YTD Jun'18

Less than $1B Greater than $1B

20

.17

21

.49

21

.01

19

.66

18

.66 2

2.2

2

16

.29

21

.62

21

.20

22

.20

22

.18 2

5.2

5

0.00

5.00

10.00

15.00

20.00

25.00

30.00

'13 '14 '15 '16 '17 YTD Jun'18

Less than $1B Greater than $1B

0.7

7

1.1

1

0.8

8

0.9

4 1.1

8

0.9

5

1.2

7 1.4

2

1.4

2

1.4

2 1.6

4 1.7

8

1.6

1

1.6

8

1.7

2

1.4

8

1.8

7

1.9

4

0.00

0.50

1.00

1.50

2.00

2.50

'13 '14 '15 '16 '17 YTD Jun'18

Negative ROAA ROAA of 0.0% to 0.99%

ROAA Greater than 1.0%

22

.41

24

.92

24

.08

23

.72

23

.57 2

7.4

8

11

.65

12

.37

14

.05

11

.05

13

.60

14

.02

0.00

5.00

10.00

15.00

20.00

25.00

30.00

'13 '14 '15 '16 '17 YTD Jun'18

ROAA of 0.0% to 0.99% ROAA Greater than 1.0%

bkdcorporatefinance.com

NATIONAL BRANCH M&A TRANSACTION STATISTICS

5

Number of National Branch Transactions & Branches Sold

National Branch Average Franchise Premium to Deposits

Source: S&P Global Market Intelligence

5.79%

3.12%

3.58%3.26%

2.52%2.68%

3.63%

2.79%

4.52% 4.58%

3.02%

0.00%

1.00%

2.00%

3.00%

4.00%

5.00%

6.00%

7.00%

'08 '09 '10 '11 '12 '13 '14 '15 '16 '17 YTD Jun'18

62 76 81 82 95 77 80 84 56 42 22 21

196

248

197

413389

288

424

269

121

102

5699

0

50

100

150

200

250

300

350

400

450

0

10

20

30

40

50

60

70

80

90

100

'08 '09 '10 '11 '12 '13 '14 '15 '16 '17 YTD Jun'17

YTD Jun'18

Bra

nch

es

Sold

Tran

sact

ion

s

bkdcorporatefinance.com

REGIONAL PUBLICLY TRADED BANKING COMPANIES

6

NATIONAL FAILED BANK STATISTICS

Source: S&P Global Market Intelligence

Source: Federal Deposit Insurance Corporation

Name Ticker State Total Assets

($000)

Total Equity ($000)

Stock Price 6/30/2018

Price Change

YTD

Price to Tangible

Book

Price to LTM

Earnings

Dividend Yield

Return on Assets (%)

Return on Equity (%)

Equity/ Assets

(%)

U.S. Bancorp USB MN 461,329,000 50,257,000 50.02 -6.6% 244.61 13.67 2.96 1.55 14.08 10.89

Fifth Third Bancorp FITB OH 140,695,000 16,252,000 28.70 -5.4% 159.03 8.34 2.51 1.66 14.53 11.55

KeyCorp KEY OH 137,792,000 15,102,000 19.54 -3.1% 188.88 15.89 2.46 1.40 12.82 10.96

Northern Trust Corporation NTRS IL 135,106,200 10,357,600 102.89 3.0% 270.05 19.02 1.63 1.26 15.31 7.67

Huntington Bancshares Inc. HBAN OH 104,246,000 11,308,000 14.76 1.4% 209.06 13.30 3.79 1.26 12.01 10.85

Associated Banc-Corp ASB WI 33,652,647 3,770,244 27.30 7.5% 202.61 18.45 2.20 1.07 9.59 11.20

Wintrust Financial Corporation WTFC IL 29,464,588 3,106,871 87.05 5.7% 206.43 18.14 0.87 1.25 11.69 10.54

Commerce Bancshares, Inc. CBSH MO 24,524,742 2,771,383 64.71 15.9% 286.00 20.45 1.45 1.82 16.32 11.30

TCF Financial Corporation TCF MN 23,385,052 2,550,950 24.62 20.1% 191.74 15.58 2.44 1.33 11.84 10.91

UMB Financial Corporation UMBF MO 20,987,904 2,167,386 76.23 6.0% 193.87 14.60 1.52 1.09 10.52 10.33

MB Financial, Inc. MBFI IL 19,966,557 2,948,693 46.70 4.9% 233.20 12.72 2.06 0.76 5.25 14.77

First National of Nebraska, Inc. FINN NE 19,950,623 1,997,441 8,250.00 3.1% 125.49 15.07 0.00 1.20 12.08 10.01

Chemical Financial Corporation CHFC MI 19,756,084 2,703,277 55.67 4.1% 258.62 23.29 2.01 1.44 10.52 13.68

Flagstar Bancorp, Inc. FBC MI 17,736,000 1,427,000 34.26 -8.4% 145.13 28.08 0.00 0.82 9.90 8.05

Old National Bancorp ONB IN 17,496,287 2,179,118 18.60 6.6% 217.48 24.80 2.80 1.10 8.86 12.45

Average 3.6% 208.81 17.43 1.91 1.27 11.69 11.01

25

140

157

92

51

2418

8 5 80

0

20

40

60

80

100

120

140

160

180

'08 '09 '10 '11 '12 '13 '14 '15 '16 '17 YTD Jun '18

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ABOUT US

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INDUSTRY FOCUS

BKDCF, a wholly owned subsidiary of BKD, LLP, helps companies and stockholders go beyond their numbers by creating value through investment banking solutions that include mergers, acquisitions, sales, recapitalizations, management buyouts and financings.

Founded in 1994, BKDCF is staffed with experienced investment bankers and financial analysts. In addition, the firm draws on the resources of BKD with its network of accountants, auditors, tax professionals, business consultants and industry-specific consultants.

BKDCF is a member of the Financial Industry Regulatory Authority and the Securities Investor Protection Corporation.

The professionals of BKD Corporate Finance, LLC (BKDCF) have more than 200

years of combined experience helping company owners plan for and execute

their growth and exit strategies. From managing the sale of a company to

negotiating the acquisition of a competitor or raising debt and equity capital to

improve financial and operational flexibility, BKDCF can help you to develop a

specific course of action for achieving your desired results.

BKD/BKDCF OfficeBKD Office

FINANCIAL SERVICES CONTACT

7

Wyatt JenkinsVice PresidentSpringfield, MO417.865.8701wjenkins@bkd.com

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BKD SERVICES

Abundant services.

Sheer precision.

BKD, LLP offers a full range of services and industry-focused expertise to provide you with insightful solutions and help you stay a cut above the competition.

FINANCIAL

ASSURANCE• Audit, review & compilations• Benchmarking• Internal audit• Internal control studies• SEC filings• SOX 404 compliance

CONSULTING• Accounting outsourcing• Bankruptcy consulting• Budgeting & financial planning• Cost accounting• Employee benefit plan

structuring & administering• ESOP feasibility analysis• Forecasts & projections

FEDERAL & STATE TAX

PLANNING & COMPLIANCE• Compensation planning• Corporate tax planning• Inventory tax planning• R&D tax credit enhancements• Real estate cost segregation

studies• Restructuring planning• State & local tax planning

FORENSICS & VALUATION

CONSULTING• Bankruptcy services• Business valuations• Fraud prevention• Litigation support

INTERNATIONAL TAX

STRATEGIES• DISC• Expatriate assignment services• Foreign tax credit planning• Global structuring support• Indirect global taxes• Transfer pricing

INVESTMENT & FINANCIAL

PLANNING• Estate & gift planning• Family tax planning• Investment management• Personal wealth planning• Retirement planning

TRANSACTION SERVICES• Federal, state & local tax

diligence• Financial diligence• Operations diligence• Technology diligence

GROWTH & ADVISORY

INVESTMENT BANKING• Mergers & acquisitions• Company sales & divestitures• Debt & equity recapitalizations• Management buyouts• Affiliations• Succession planning• Strategic options analysis

ECONOMIC DEVELOPMENT• Expansion projects• Grants & public incentives

INTERNATIONAL MARKET• Development• Exporting• Direct investment• Licensing• Acquisitions

OPERATIONS MANAGEMENT

PERFORMANCE ENHANCEMENT

ADVICE & KNOW-HOW (PEAK)

METHODOLOGY• Business process improvement• Decision costing• Inventory optimization• Lean manufacturing• Profit improvement

TECHNOLOGY

APPLICATIONS SOFTWARE• Best-Abra• MAS 90, 200 & 500• Microsoft CRM• Microsoft Dynamics AX• Microsoft Dynamics GP

IT SERVICES• IT assessments & planning• IT control reviews• Project management assistance• Security solutions & penetration

testing

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