REGIONAL FINANCIAL SERVICES MERGERS & ACQUISITIONS UPDATE

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…………………………………………………………………………………………… ……… West Region Regional M&A Transaction Statistics

Number of Regional Whole & Thrift Transactions 35 30 29 25 27 27 28 28 20 15 18 10 5 0 '10 '11 '12 '13 '14 '15 Regional Average Deal Value Regional Average Deal Value to Tangible Book to LTM Earnings 1.6 40 1.4 35 1.41 1.41 35.00 1.2 1.33 30 32.82 1.0 1.16 1.15 25 0.8 20 24.75 0.87 21.10 0.6 15 18.92 0.4 10 14.70 0.2 5 0.0 0 '10 '11 '12 '13 '14 '15 '10 '11 '12 '13 '14 '15 Regional Average Deal Value Regional Average Tangible Book to Assets Premium to Core Deposits 18% 6% 16% 16.9% 5% 5.5% 5.6% 14% 15.0% 12% 13.5% 4% 4.5% 12.6% 12.9% 10% 4.1% 3% 8% 9.5% 6% 2% 4% 1% 2% NM 1.2% 0% 0% '10 '11 '12 '13 '14 '15 '10 '11 '12 '13 '14 '15 Note: Includes all whole bank transactions in Alaska, American Samoa, Arizona, California, Guam, Hawaii, Idaho, Montana, Nevada, Northern Mariana Islands, Oregon, U.S. Minor Outlying Islands, Washington and Wyoming. Source: SNL Financial

bkdcorporatefinance.com National M&A Transaction Statistics

Number of National Whole Bank & Thrift Transactions

350

300 296 283 283 282 250 267

200 216 222

150 176 142 145 100 110

50

0 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 National Average Deal Value National Average Deal Value to Tangible Book to LTM Earnings

3.00 25.00

2.50

20.00

22.62

22.61

22.12

21.59

2.49

21.34

21.27

20.35 2.35

2.00 2.34

19.72 19.59

15.00 18.72

1.50 16.26

1.71

10.00

1.45

1.00 1.43

1.26

1.22

1.18 1.16 1.11 5.00 0.50

0.00 0.00 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15

Source: SNL Financial

• Company Sales & Divestitures • Management Buyouts CORPORATE ………………………………………………………………………………… FINANCE …………………………………………………………………………………• Debt & Equity Recapitalizations • Succession Planning & Value Coaching SERVICES …………………………………………………………………………………• Mergers & Acquisitions • Affiliations

bkdcorporatefinance.com National M&A Transaction Statistics by Asset Size

National Average Deal Value National Average Deal Value to Tangible Book by Asset Size to LTM Earnings by Asset Size

2.50 30.00

2.00 25.00

28.49

20.00

1.93

1.50

21.88

21.80

21.23

21.15

1.66

1.64

20.43

15.00

19.35

19.31

1.43

1.40

1.39 1.37

1.00

16.29

15.87 1.19

1.18 10.00 1.07 0.50 5.00

0.00 0.00 '11 '12 '13 '14 '15 '11 '12 '13 '14 '15

Under $1B Over $1B Under $1B Over $1B

National M&A Transaction Statistics by Performance

National Average Deal Value National Average Deal Value to Tangible Book by Performance to LTM Earnings by Performance* 2.00 30.00

1.80

25.00

1.60

1.76

1.71

1.40

1.64 20.00

24.66

24.57

24.39

1.50 1.47

1.20

1.44

22.41

1.42

21.93

1.32

1.00 1.27 15.00

1.22

1.08

0.80

10.00

0.90

0.88 0.87

0.60 14.06

0.78

12.54

12.44 11.31 0.40 5.00 10.81 0.20 0.00 0.00 '11 '12 '13 '14 '15 '11 '12 '13 '14 '15

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

* Deal Value to LTM Earnings for negative ROAA transactions are not meaningful and, therefore, not presented in this chart. Source: SNL Financial

bkdcorporatefinance.com National Branch M&A Transaction Statistics

Number of National Branch Transactions 120

100 105 95 80 86 85 81 82 80 76 77 71 60 62

40

20

0 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15

National Branch Average Franchise Premium to Deposits

8%

7% 7.15% 7.13% 6.97% 6% 5.79% 5%

4%

3.58% 3% 3.50% 3.12% 3.24% 2.62% 2.78% 2% 2.55%

1%

0% '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15

Source: SNL Financial bkdcorporatefinance.com Regional Publicly Traded Banking Companies The following table outlines the stock performance by the 15 largest publicly traded banking companies headquartered in the region, as defined by total assets:

Price Price to Price to Equity/ Total Assets Total Equity Stock Price Change Tangible LTM Dividend Return on Return on Assets Name Ticker State ($000) ($000) 12/31/2015 YTD (%) Book Earnings Yield Assets (%) Equity (%) (%) Wells Fargo & Company WFC CA 1,751,265,000 194,043,000 54.36 -0.84 195.12 13.13 2.76 1.37 12.45 11.08 First Republic Bank FRC CA 55,375,220 5,384,174 66.06 26.75 224.47 21.66 0.91 0.96 10.05 9.72 SVB Financial Group SIVB CA 40,236,118 3,189,472 118.90 2.44 192.83 19.59 0.00 0.96 11.91 7.93 East West Bancorp, Inc. EWBC CA 30,064,072 3,004,948 41.56 7.36 232.67 15.51 1.92 1.34 13.21 10.00 Umpqua Holdings Corporation UMPQ OR 22,793,331 3,804,179 15.90 -6.53 175.20 16.56 4.03 0.96 5.76 16.69 PacWest Bancorp PACW CA 16,814,105 3,581,704 43.10 -5.19 241.31 14.81 4.64 1.67 7.79 21.30 Bank of Hawaii Corporation BOH HI 15,248,043 1,082,939 62.90 6.05 255.55 17.23 2.86 1.09 15.29 7.10 , Inc. WAFD WA 14,370,496 1,959,121 23.83 7.58 133.71 14.27 2.18 1.08 8.00 13.63 Western Alliance Bancorporation WAL AZ 13,955,570 1,583,698 35.86 28.99 303.84 19.07 0.00 1.73 15.26 11.35 Cathay General Bancorp CATY CA 12,749,965 1,732,086 31.33 22.43 187.13 16.32 2.30 1.24 8.87 13.59 Glacier Bancorp, Inc. GBCI MT 8,589,810 1,056,451 26.53 -4.47 214.73 17.45 2.86 1.39 11.02 12.30 Columbia Banking System, Inc. COLB WA 8,518,019 1,236,214 32.51 17.75 222.39 20.45 2.21 1.03 7.03 14.51 First Interstate BancSystem, Inc. FIBK MT 8,386,218 924,855 29.07 4.49 182.39 15.46 2.75 1.05 9.65 11.03 CVB Financial Corp. CVBF CA 7,697,358 893,991 16.92 5.62 213.22 18.80 2.84 1.43 11.77 11.61 BBCN Bancorp, Inc. BBCN CA 7,583,002 929,569 17.22 19.75 166.84 14.72 2.56 1.35 10.96 12.26 AVERAGE 8.81 209.43 17.00 2.32 1.24 10.60 12.27 Source: SNL Financial National Failed Bank Statistics

180 157 160 140 140 120 100 92 80 60 51 40 25 24 18 20 6 0 0 3 0 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 Source: Federal Deposit Insurance Corporation ……………………………………………………………………………………………………...... … BKD Corporate Finance, LLC, a wholly owned subsidiary of BKD, LLP, provides merger and acquisition, sales, management buyout, recapitalization, financing and affiliation services. Member FINRA and SIPC. If you are considering exiting your business, acquiring a competitor or developing a plan for an eventual exit, contact us today to discuss your options.

Tony Giordano // President Wyatt Jenkins // Vice President [email protected] // 303.861.4545 [email protected] // 417.865.8701

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