REGIONAL FINANCIAL SERVICES MERGERS & ACQUISITIONS UPDATE

MIDWEST REGION Q3 2019

800.644.1704 | bkdcapitaladvisors.com REGIONAL FINANCIAL SERVICES M&A MIDWEST REGION

REGIONAL M&A TRANSACTION STATISTICS

Number of Regional Whole Bank & Thrift Transactions

107 106 110 115 89 92 93

'14 '15 '16 '17 '18 YTD Sep. '18 YTD Sep. '19 Regional Average Deal Value to Tangible Regional Average Deal Value to LTM Book Earnings

'14 1.39 '14 21.62

'15 1.36 '15 19.41

'16 1.31 '16 20.43

'17 1.60 '17 20.56

'18 1.73 '18 21.69 YTD YTD 1.44 19.15 Sep. '19 Sep. '19 Regional Average Deal Value to Assets Regional Average Tangible Book Premium to Core Deposits 16.3% 16.5% 15.1% 9.1% 13.8% 13.6% 8.3% 12.6% 7.0%

4.7% 4.4% 4.3%

'14 '15 '16 '17 '18 YTD '14 '15 '16 '17 '18 YTD Sep. '19 Sep. '19 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

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NATIONAL M&A TRANSACTION STATISTICS

Number of National Whole Bank & Thrift Transactions

277 274 254 257 239 217 221 198 205 176 145 110

'09 '10 '11 '12 '13 '14 '15 '16 '17 '18 YTD YTD Sep. '18 Sep. '19

National Average Deal Value to Tangible National Average Deal Value to LTM Book Earnings

'09 1.16 '09 18.99 '10 1.18 '10 23.10 '11 1.10 '11 24.27 '12 1.20 '12 20.36 '13 1.25 '13 21.21 '14 1.42 '14 23.43 '15 1.44 '15 22.19 '16 1.38 '16 21.24 '17 1.66 '17 21.31 '18 1.78 '18 23.85 YTD Sep. '19 1.57 YTD Sep. '19 17.42

Source: S&P Global Market Intelligence

• Company Sales & Divestitures • Management Buyouts BKD CAPITAL • Succession Planning & • Debt & Equity Recapitalizations ADVISORS Strategic Options Analysis SERVICES • Mergers & Acquisitions • Affiliations

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NATIONAL M&A TRANSACTION STATISTICS BY ASSET SIZE

National Average Deal Value to Tangible National Average Deal Value to LTM Book Earnings 2.22 2.14 1.94 25.28 24.96 24.88 24.48 24.43 24.30 1.76 22.74 22.65 1.69 22.47 1.67 22.32 1.65 1.60 1.54 20.08 1.38 1.36 1.29 13.79

'14 '15 '16 '17 '18 YTD '14 '15 '16 '17 '18 YTD Sep. '19 Sep. '19 Less than $1B Greater than $1B Less than $1B Greater than $1B

NATIONAL M&A TRANSACTION STATISTICS BY PERFORMANCE

National Average Deal Value to Tangible National Average Deal Value to LTM Book by Performance Earnings by Performance* 1.89 1.84 29.73 1.76 1.75 1.73 1.68 28.06 27.97 27.79 1.64 1.53 25.85 1.48 25.13 1.44 1.42 1.42 1.41 1.25 1.15 1.11 0.94 16.46 15.81 15.59 0.88 15.14 14.23 13.73

'14 '15 '16 '17 '18 YTD '14 '15 '16 '17 '18 YTD Sep. '19 Sep. '19 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 are not presented in this chart Source: S&P Global Market Intelligence

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NATIONAL BRANCH M&A TRANSACTION STATISTICS

Number of National Branch Transactions & Branches Sold

120 412 424 450 390 400 100 350 288 80 269 300 248 250 60 197 186 200

Transactions 40 121 150 102 Branches Sold 77 100 20 50 76 81 81 96 77 80 84 56 42 50 25 0 0 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 YTD Sep. '19 # of Branch Transactions # of Branches Sold

National Branch Average Franchise Premium to Deposits

'09 3.1% '10 3.6% '11 3.2% '12 2.5% '13 2.7% '14 3.6% '15 2.7% '16 4.1% '17 4.1% '18 5.2% YTD Sep. '19 5.0%

Source: S&P Global Market Intelligence

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REGIONAL PUBLICLY TRADED BANKING COMPANIES

Average Average of Total of Total Stock Price Price to Price to Return Return Assets Equity Price Change Tangible LTM Dividend on on Equity/ Name Ticker State ($MM) ($MM) 09/30/19 YTD Book Earnings Yield Assets Equity Assets U.S. Bancorp USB MN 487,671 54,147 55.34 21.1% 239.07 13.02 3.04% 1.59% 14.22% 10.98% Fifth Third Bancorp FITB OH 168,802 20,671 27.38 16.4% 136.76 9.31 3.51% 1.08% 8.91% 12.13% KeyCorp KEY OH 146,691 17,116 17.84 20.7% 147.81 10.62 4.15% 1.15% 9.72% 11.69% Northern Trust Corp NTRS IL 126,551 10,806 93.32 11.6% 220.09 14.12 3.00% 1.34% 14.78% 8.54% Huntington Bancshares HBAN OH 108,247 11,668 14.27 19.7% 180.92 11.24 4.20% 1.35% 12.69% 10.78% Associated Banc-Corp ASB WI 33,630 3,494 64.63 -2.8% 135.46 11.10 1.55% 1.09% 10.44% 10.34% Wintrust Financial Corp WTFC IL 33,273 3,900 20.25 2.3% 138.80 10.23 3.36% 1.01% 8.79% 11.72% Commerce Bancshares CBSH MO 25,876 3,106 60.65 7.6% 231.69 16.17 1.71% 1.75% 14.06% 12.29% TCF Financial Corporation TCF MN 24,627 2,711 38.07 NA 264.51 19.23 3.68% 1.54% 14.12% 10.90% UMB Financial Corp UMBF MO 24,016 2,478 64.58 5.9% 138.69 16.06 1.86% 0.98% 9.44% 10.32% Chemical Financial Corp CHFC MI 21,420 2,395 10,100.00 16.8% 124.52 8.39 0.99% 1.70% 15.63% 11.18% First National of Nebraska FINN NE 20,145 2,803 17.21 11.7% 174.44 13.23 3.02% 1.26% 9.13% 13.91% Old National Bancorp ONB IN 17,462 2,301 19.48 -1.7% 151.52 11.01 2.87% 1.12% 8.39% 13.17% First Midwest Bancorp FMBI IL 14,438 2,188 24.48 3.2% 189.79 11.82 3.76% 1.49% 9.82% 15.16% First Financial Bancorp. FFBC OH 13,279 2,054 605.00 7.8% 149.60 13.73 0.99% 1.58% 10.34% 15.47% Average 81,235 9,083 705.45 9.2% 172.45 12.52 2.70% 1.32% 11.31% 11.81% Source: S&P Global Market Intelligence NATIONAL FAILED BANK STATISTICS

157

140

92

51

24 18 8 5 8 0 1

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Source: Federal Deposit Insurance Corporation

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FINANCIAL SERVICES CONTACT INDUSTRY FOCUS

Wyatt Jenkins Vice President Springfield, MO 417.865.8701 [email protected]

ABOUT US Financial Health Services Care The professionals of BKD Capital Advisors (BKDCA) 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, BKDCA can help you to develop a specific course of action for achieving your desired results.

BKDCA, 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, Manufacturing & Business management buyouts and financings. Distribution Services

Founded in 1994, BKDCA 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.

Construction & Energy Engineering

BKD Office Consumer Technology, BKD/BKDCA Office Services & Media & Products Telecom BKDCA is a member of the Financial Industry Regulatory Authority and the Securities Investor Protection Corporation.

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