Community Bank M&A Newsletter

Community Bank M&A Newsletter

COMMUNITY BANK M&A NEWSLETTER July 2017 Issue GLC Advisors & Co. REGIONAL MERGERS & ACQUISITIONS STATISTICS Regional Bank Acquisitions 2017 Acquisition Activity by State 65 62 0 0 53 48 1 47 1 3 6 26 1 5 4 5 0 0 0 2012 2013 2014 2015 2016 YTD 2017 Price / LTM Earnings Price / Tangible Book 20.5x 18.9x 147% 17.4x 17.8x 18.0x 133% 132% 133% 15.2x 116% 124% 2012 2013 2014 2015 2016 YTD 2017 2012 2013 2014 2015 2016 YTD 2017 Price / Adjusted Tangible Book(1) Tangible Premium / Deposits 151% 134% 136% 141% 6.8% 118% 127% 4.9% 4.2% 4.1% 3.3% 3.5% 2012 2013 2014 2015 2016 YTD 2017 2012 2013 2014 2015 2016 YTD 2017 (1) Calculated on 9.0% of tangible assets Note: YTD figures as of 6/30/2017; Pricing charts with median figures; Excludes P/E’s >40x and Tangible Premium/Deposits >20% Source: SNL Financial REGIONAL MERGERS & ACQUISITIONS NEWS On June 26th, Greenwood Village, Colorado-based National Bank Holdings Corp. ($4.7 billion in assets) agreed to acquire Lawrence, Kansas-based Peoples Inc., the holding company for Lawrence, Kansas- based Peoples Bank ($490 million in assets) and Colorado Springs, Colorado-based Peoples National Bank ($376 million in assets). The announced transaction value was approximately $144 million (25% cash and 75% stock) representing 173% of tangible book value and 7.2x last twelve months earnings. Under terms of the agreement, Peoples will divest or wind down its mortgage business before year-end. The transaction is expected to close Q4 2017, subject to regulatory and shareholder approval. On June 8th, Moline, Illinois-based QCR Holdings Inc. ($3.4 billion in assets) agreed to acquire Cedar Rapids, Iowa-based Guaranty Bankshares Ltd., the holding company of Guaranty Bank and Trust Co. ($267 million in assets) for approximately $44 million (21% cash and 79% stock) representing 144% of tangible book value and 27.4x last twelve months earnings. The transaction is expected to close Q3 2017. Source: SNL Financial © 2017 GLC. All rights reserved. This material may not be reproduced in any format by any means or redistributed without the prior written consent of GLC. GLC gathers its data from sources it considers reliable; however, it does not guarantee the accuracy or completeness of the information within this presentation. This material has been prepared solely for informational purposes and is not to be construed as a solicitation or an offer to buy or sell any securities or related financial instruments. No investment, divestment or other financial decisions or actions should be based solely on the Page 1 information in this presentation and GLC is not, by making this report available, providing investment, legal, tax, financial, accounting or other advice to you or any other party. GLC may from time to time provide investment banking or related services to companies referenced in this presentation. GLC Advisors & Co. On June 6th, Kalispell, Montana-based Glacier Bancorp Inc. ($9.6 billion in assets) agreed to acquire Buena Vista, Colorado-based Columbine Capital Corp., the holding company of Collegiate Peaks Bank ($469 million in assets) for approximately $74 million (22% cash / 78% stock) representing 205% of tangible book value and 15.8x last twelve months earnings. Upon closing, Collegiate Peaks Bank will merge into Glacier Bancorp and operate as a separate banking division with its existing name and current staff under subsidiary Glacier Bank. The transaction is Glacier’s first acquisition in the Denver Metro area (three of Collegiate Peaks five branches are in Denver). The transaction is expected to close in the first quarter of 2018, subject to regulatory and shareholder approval. Source: SNL Financial REGIONAL BANK INDEX Regional Bank stocks jumped in June (up 6.0%) after three consecutive monthly declines – underperforming the SNL US Bank Index (up 8.0%) and outperforming the S&P 500 Index (up 0.5%). At the end of June, Regional Bank stocks were averaging a valuation of 20.1x last twelve months earnings and 215% of tangible book value. Regional Bank Index Companies and Statistics (market data as of 6/30/2017) MRQ % of Price/ Price/ Price/ Total LTM Market Stock 52-Week 6/30/2017 Return LTM Tangible Common Assets ROAA Cap Price High Month YTD Earnings Book Book Company Name Ticker State ($M) (%) ($M) ($ Actual) (%) (%) (%) (x) (%) (%) BancFirst Corporation BANF OK $7,190 1.11 $1,537 $96.60 95.0 2.3 3.8 20.3 231.4 210.3 BOK Financial Corporation BOKF OK $32,629 0.86 $5,503 $84.13 98.0 4.5 1.3 19.8 192.8 164.7 Capitol Federal Financial, Inc. CFFN KS $9,246 0.74 $1,964 $14.21 84.0 2.8 (13.7) 22.9 142.1 142.1 CoBiz Financial Inc. COBZ CO $3,731 1.03 $726 $17.40 96.9 10.5 3.0 20.0 235.0 234.1 Commerce Bancshares, Inc. CBSH MO $25,308 1.14 $5,775 $56.83 94.0 6.2 (1.7) 21.3 254.8 239.8 Enterprise Financial Services Corp EFSC MO $5,106 1.25 $958 $40.80 88.6 1.7 (5.1) 16.8 231.9 177.8 Equity Bancshares, Inc. EQBK KS $2,399 0.58 $374 $30.64 82.1 3.0 (8.9) 27.9 180.2 133.9 First Interstate BancSystem, Inc. FIBK MT $9,061 1.12 $2,100 $37.20 83.0 6.6 (12.6) 17.0 223.4 167.7 Glacier Bancorp, Inc. GBCI MT $9,554 1.34 $2,856 $36.61 96.3 13.5 1.0 22.6 287.3 247.1 Great Southern Bancorp, Inc. GSBC MO $4,433 1.06 $751 $53.50 95.9 9.3 (2.1) 16.1 175.2 170.4 Great Western Bancorp, Inc. GWB SD $11,357 1.18 $2,398 $40.81 89.9 7.8 (6.4) 18.1 250.4 140.5 Guaranty Bancorp GBNK CO $3,400 0.98 $772 $27.20 100.0 7.7 12.4 24.1 268.4 215.2 Heartland Financial USA, Inc. HTLF IA $8,362 0.95 $1,256 $47.10 90.5 5.0 (1.9) 15.3 204.3 161.0 MidWestOne Financial Group, Inc. MOFG IA $3,084 0.71 $414 $33.89 88.0 (2.1) (9.9) 18.0 163.1 123.8 National Bank Holdings Corporation NBHC CO $4,728 0.67 $895 $33.11 97.3 8.5 3.8 29.8 189.7 166.7 People's Utah Bancorp PUB UT $1,718 1.53 $480 $26.80 95.0 4.7 (0.2) 19.6 205.6 205.1 Southern Missouri Bancorp, Inc. SMBC MO $1,496 1.07 $277 $32.26 87.8 2.7 (8.8) 15.5 189.1 179.4 UMB Financial Corporation UMBF MO $20,576 0.84 $3,732 $74.86 92.0 6.9 (2.9) 22.2 213.1 185.6 West Bancorporation, Inc. WTBA IA $1,868 1.28 $383 $23.65 95.2 7.7 (4.3) 16.4 225.5 225.5 Western Alliance Bancorporation WAL AZ $18,123 1.61 $5,187 $49.20 92.2 7.6 1.0 18.9 311.2 263.4 Zions Bancorporation ZION UT $65,463 0.84 $8,897 $43.91 94.4 9.6 2.0 19.8 148.3 126.7 Regional Bank Index (Average) $11,849 1.04 $2,249 92.2 6.0 (2.4) 20.1 215.4 184.8 SNL US Bank Index 8.0 3.7 15.9 189.8 143.9 S&P 500 Index 0.5 8.2 Note: Includes publicly traded banks headquartered in AZ, CO, IA, KS, MO, MT, ND, NE, NM, OK, SD, UT, WY 3-month daily average volume greater than 10,000 shares and market capitalization greater than $150 million Excludes banks identified as the target in a merger/acquisition Price / Earnings ratios greater than 40.0x deemed non-meaningful (“NM”) Source: SNL Financial © 2017 GLC. All rights reserved. This material may not be reproduced in any format by any means or redistributed without the prior written consent of GLC. GLC gathers its data from sources it considers reliable; however, it does not guarantee the accuracy or completeness of the information within this presentation. This material has been prepared solely for informational purposes and is not to be construed as a solicitation or an offer to buy or sell any securities or related financial instruments. No investment, divestment or other financial decisions or actions should be based solely on the Page 2 information in this presentation and GLC is not, by making this report available, providing investment, legal, tax, financial, accounting or other advice to you or any other party. GLC may from time to time provide investment banking or related services to companies referenced in this presentation. GLC Advisors & Co. SOFI’S ATTEMPT TO BECOME A BANK APPLICATION SUBMITTED: BIRTH OF THE FINTECH BANK? On June 6, 2017, Social Finance Inc. (“SoFi”) applied with the Federal Deposit Insurance Corp. (“FDIC”) to obtain a bank charter. BRANCHLESS BANK: SoFi’s application revealed the company’s plan to establish an industrial chartered bank, under the Submitted De Novo Bank brand SoFi Bank, headquartered in Salt Lake City, Application on June 6, 2017 Utah with additional operations in Wilmington, Delaware. It is planned that the bank will have an online-only presence, with no physical branches or ATMs. Because the Bank will be branchless, the Bank's CRA assessment area would be based on its Salt Lake City headquarters.

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