First Business Financial Services, Inc. · NASDAQ:FBIZ
First Business Financial Services — Investor Presentation (August 2011)
35 slides from First Business Financial Services's investor presentation, Aug 16, 2011
Slide 1: Management Presentation August 2011
Management PresentationAugust 2011 Section 2: Exhibit 99.1
Slide 2: Forward Looking Statement
When used in this presentation, and in any other oral statements made with the approval of an authorized executive officer, the words or phrases "may," "could," "should," "hope," "might," "believe," "expect," "plan," "assume," "intend," "estimate," "anticipate," "project," "likely," or similar expre
Slide 3: FBIZ Company Overview
FBIZ Company Overview YOUR SUCCESS COMES FIRST
Slide 4: Corporate Profile
Corporate Profile Headquarters: Madison, WITotal assets at June 30, 2011: $1.1 Billion1 of 2 WI based commercial bank holding companies listed on NASDAQ or NYSEInsider ownership of 20.8%(1) Business-focused model (no retail branch network)Experienced leadershipEntrepreneurial management style100% or
Slide 5: Footprint
Footprint Source: FBIZ management. St. Louis, MO** Chicago, IL** Cleveland, OH** Minneapolis, MN** Detroit, MI** * Full Service Banking Office** Asset-Based Lending Business Development Office Madison, WI* Milwaukee, WI* Appleton, WI* Denver, CO**
Slide 6: History of First Business
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Jun 2000First Business Bank - Milwaukee History of First Business Mar 1990First Business Bank - Madison May 1995First Business Capital Corp. Oct 1998First Business Equipment Finance Dec 2001First Busi
Slide 7: Senior Executive Team
Senior Executive Team President & Chief Executive Officer 27 years of commercial banking experience specializing in commercial lending & cash management18 years with First BusinessPrior to joining First Business, Mr. Chambas held various senior lending positions with M & I Bank Corey Chambas Jim Rop
Slide 8: Senior Executive Team
Senior Executive Team General Counsel and Corporate SecretaryJuris Doctor, University of Wisconsin Law School, magna cum laude, Member of the State Bar of WisconsinOver 30 years of commercial banking experience3 years with First BusinessPrior to joining First Business, Ms. Conley held various senior
Slide 9: Corporate Strategy
Corporate Strategy High efficiency operating model"Business Bank"Limited branch networkInvest in technology to serve the needs of our business clientsSpecialized products designed to serve the needs of small businesses and their executives and owners Capitalize on market disruption from M&I sale"Lif
Slide 10: Recent Financial Performance
Recent Financial Performance
Slide 11: 1st Half 2011 Highlights
1st Half 2011 HighlightsNet Income $3.862 million, $1.49 fully diluted EPSDiluted EPS of $1.49 vs. $(0.25) in 1H 2010 and $0.81 in 1H 2010 excluding the impairment of goodwillTrust and Investment Services revenue of $1.296 million, up 11.1% year over yearAssets under management and administration in
Slide 12: Financial Highlights
Financial Highlights Source: SEC filings and FBIZ Management. See Appendix for non GAAP reconciliation schedules.Operating ROAA and ROAE exclude the impact of the goodwill impairment and gains on sales of securities. Realized gains tax-effected at 39.214%.
Slide 13: Loan and Lease Composition
Loan and Lease Composition Source: SEC filings. (CHART)
Slide 14: Deposit Composition
(CHART) Deposit Composition Source: SEC filings. See Appendix for non GAAP reconciliation schedules. Local Deposits - Compound Annual Growth Rate From 12/31/06 -12/31/10 = 11.7% 50.8% 8.2% 27.1% 2.7% 11.2%
Slide 15: Asset Quality Trends
Asset Quality Trends Source: SEC filings and FBIZ managementTexas Ratio =(Nonaccrual + 90 day PD + OREO) / (Tangible Equity + Allowance for loan and lease losses). See Appendix for non GAAP reconciliation schedules. As of 6/30/11, $22.2 million of our nonaccrual loans and leases were impaired but cu
Slide 16: Net Charge-Offs as a Percentage of Average Loans and Leases
Net Charge-Offs as a Percentage of Average Loans and Leases Source: SNL Financial and SEC Filings. All BHCs group comprised of all BHCs reporting consolidated regulatory financial data as of 6/30/2011.*June 2011 YTD data is annualized. (CHART)
Slide 17: Tangible Book Value per Share
Tangible Book Value per Share $20.34 $21.29 $19.74 $18.24 $17.22 $23.03 Source: SEC filings and FBIZ management. See Appendix for non GAAP reconciliation schedules.
Slide 18: How Are We Doing? Strategic Objectives
How Are We Doing? Strategic Objectives
Slide 19: Strategic Objectives
Improve core funding mix by capturing local deposits from our commercial customers & their ownersContinue organic revenue growth Maintain a relatively stable number of employeesAchieve additional improvement in operating efficiencyAchieve additional improvement in core earnings Strategic Objectives
Slide 20: Top Line Revenue Growth
Top Line Revenue Growth1 Compound Annual Revenue Growth Rate From 12/31/06 - 12/31/10 = 14.3% Source: SEC Filings and FBIZ Management. See Appendix for non GAAP reconciliation schedules. Top line revenue growth calculated as net interest income + total noninterest income (including realized gains on
Slide 21: Efficiency Ratio
Efficiency Ratio Source: SEC Filings and FBIZ Management. See Appendix for non GAAP reconciliation schedules. (CHART)
Slide 22: Core Earnings Growth
Core Earnings Growth1 Compound Annual Growth Rate From 12/31/06 - 12/31/10 = 17.5% -$0.7M-8.7% $1.0M 14.7% $2.9M27.8% $2.6M 32.1% -$0.2M-1.6% $1.8M31.2% Source: SEC Filings and FBIZ Management. See Appendix for non GAAP reconciliation schedules.Core earnings defined as earnings before tax plus loan
Slide 23: How Are We Doing? Peer Comparisons
How Are We Doing? Peer Comparisons
Slide 24: Peer Group Criteria
Publicly traded< $3 billion in total assets> 70% Commercial & Industrial and Commercial Real Estate loans(1)Constrained geographically(CO, IA, IL, IN, KS, KY, MI, MN, MO, NC, ND, NE, OH, SD, TN and WI) Currently paying a dividend Peer Group Based on consolidated bank holding company regulatory loan
Slide 25: Peer Comparison Graphs/Charts
Peer Comparison Graphs/Charts June 30, 2011 Source: SNL Financial. Market data as of 8/12/11. Financial data as of 6/30/11.Represents year over year growth rates. Operating revenue growth calculated as net interest income + total noninterest income (including realized gains on securities).Non-perfor
Slide 26: 2011 Objectives
2011 Objectives YOUR SUCCESS COMES FIRST | First Business
Slide 27: 2011 Objectives
Continue organic revenue growth Achieve additional improvement in core earnings Increase percentage of in-market depositsImprove ROA 2011 Objectives
Slide 28: 2011 Objectives
2011 Objectives Top Line Revenue Growth Core Earnings Growth Core (In-Market) Deposit Growth Return on Average Assets Growth Source: SEC filings and FBIZ management. Dollar values represent annual increase and growth rates represent year over year growth. See Appendix for non GAAP reconciliation sch
Slide 29: Current Market Opportunity
Significant disruption among competitors in our core Wisconsin marketsBMO acquires Marshall & IlsleyJohnson Bank reports a loss of $149.5 million in 2010Signs written agreement with Federal ReserveNew CEO named in January 2011 and again in June 2011Associated Bank's top commercial banking executive
Slide 30: Management Presentation August 2011
Management PresentationAugust 2011
Slide 31: Appendix Non GAAP Reconciliations
Appendix Non GAAP Reconciliations
Slide 32: Operating Returns and Core Earnings
Operating Returns and Core Earnings Operating ROAA and ROAE are annualized. Operating ROAA and Operating ROAE Core Earnings (Pre-tax)
Slide 33: Efficiency Ratio and Top Line Revenue
Efficiency Ratio and Top Line Revenue Efficiency Ratio Top Line Revenue
Slide 34: Deposit Cost and Tangible Book Value
Deposit Cost and Tangible Book Value Average interest-bearing deposits for 2006-2008 equal to the average of the period averages for each of the four calendar quarters in each respective year.Average non-interest-bearing deposits for 2006-2008 equal to the average of the period averages for each of
Slide 35: Texas Ratio
Texas Ratio (dollars in thousands) For the Quarters Ended, Bfaijzo10_e/s0/2010_gs0/2010__12/31/2010____3/31fz011 6/30/2011 ‘Nonaccrual Loans and Leases S 34618 “$ 31456 5 30.918 “S$ 38406 S 39,190 5 34,624 90+ Days Past Due : : z Other RealEstate Owned. 1,333 1322 4247 1750 2327 2400 Nonpreforming A
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