First Business Financial Services, Inc. · NASDAQ:FBIZ
First Business Financial Services — Investor Presentation (August 2012)
32 slides from First Business Financial Services's investor presentation, Aug 13, 2012
Slide 1: Management Presentation
Management Presentation August 2012 YOUR SUCCESS COMES FIRST
Slide 2: Forward Looking Statement
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,”
Slide 3: FBIZ Company Overview
FBIZ Company Overview YOUR SUCCESS COMES FIRST First Business
Slide 4: Corporate Profile
Corporate Profile Headquarters: Madison, WI Total assets at June 30, 2012: $1.2 Billion 1 of 2 WI based commercial bank holding companies listed on NASDAQ or NYSE e Insider ownership of 18.9%) 4. Data as ofthe date of the Company's Proxy statement of March 14,2012 Business-focused model (no retail b
Slide 5: Office locations
Appleton, WI * Minneapolis, MN Milwaukee, WI * Madison, WI ~ Detroit, MI * Chicago, IL St. Louis, MO * Denver, CO * # Cleveland, OH “ Kansas City, KS # Full Service Banking Office Asset-Based Lendin: Business vee Office
Slide 6: History of First Business
History of First Business Jun 2000 First Business Bank - Milwaukee May 1995 Dec 2001 Sep 2006 First Business First Business First Business First Business Bank - Madison Capital Corp. Trust & Investments Bank — Northeast" ANSE PAS SIS Oct 1998 First Business Equipment Finance ‘Source: F812 Management
Slide 7: Senior Executive Team
Senior Executive Team Corey Chambas Jim Ropella President & Chief Executive Officer of First Business * Chief Financial Officer Financial Services, I * Over 30 years of experience in finance and accounting 28 years of commercial albaniine experience specializi primarily in the banking industry ¥ com
Slide 8: Senior Executive Team
Senior Executive Team Barbara Conley Dave Vetta + General Counsel and Corporate Secretary * President & Chief Executive Officer of First Business Bank ~ Juris Doctor University of Wisconsin Law School, mers Member of the State Bar of Wisconsi * Over 30 years of commercial banking experience Over 30
Slide 9: Senior Executive Team
Senior Executive Team Randy Shumate Jodi Chandler reside of First Business Equipment Finance — National . Division Senior Vice President — Human Resources Over 25 years of experience in human resources 20 years with First Business 25 years of equipment finance and leasing experience © 4 months with
Slide 10: Corporate Strategy
Corporate Strategy ¢ High efficiency operating model e “Business Bank” — Limited branch network — Invest in technology to serve the needs of our business clients — Specialized products designed to serve the needs of small businesses and their executives and owners © Capitalize on market disruption —
Slide 11: Recent Financial Performance
Recent Financial Performance YOUR SUCCESS COMES FIRST First Business
Slide 12: Highlights through June 30, 2012
Highlights through June 30, 2012 — Net Income $3.8 million, $1.44 fully diluted EPS © Diluted EPS of $1.44 vs. $1.49 in the first 6 months of 2011 e First six months of 2011 included a one-time tax benefit which reduced the effective tax rate to 16% — Top line revenue increased 6.8% year over year t
Slide 13: Financial Highlights
Financial Highlights 3 23208 § 26258 $ 28034 § 31951 § 35461 § 18535 2,904 4299 3225, 70a 4,250 2549 43383 5,105 6128 6743 7,060 3.754 : 322 : : 24, 2 26,397 13,964 5,776 77 2,001 z Tosi S375 Balance Sheet Data “otal Cash and cash equivalents 3 17624 3 50819 3 Securities 9,7 155,746 loans and teases
Slide 14: Loan and Lease Composition
Loan and Lease Composition 4Family Leases All Other Loans vse RE 1.9% 2.0% nif Commercial and Industrial 27.9% Construction & (S000) Development Commercial ay aa! 3 so Commercial mercial Ri Cisruston Deepen itifamily 14 Fal Residential RE eases All Other Loan 2.0% Total Loans and teases 363,175 100.
Slide 15: Strategic Objectives
Strategic Objectives YOUR SUCCESS COMES FIRST First Business
Slide 16: Strategic Objectives
Strategic Objectives Continue organic revenue growth Achieve additional improvement in core earnings Continue to improve our core funding mix by capturing local deposits from commercial clients & their owners Continue asset quality improvement Maintain strong profitability/ROA Invest in talent for f
Slide 17: Top Line Revenue Growth
Top Line Revenue Growth?+ 1M 10.0% $1.4M 6.8% Millions 2008 2009 2010 2011 YTD YTD 6/30/11 6/30/12 Compound Annual Revenue Growth Rate From 12/31/08 — 12/31/11 = 10.7% Percentages represent year over year change.
Slide 18: Core Earnings Growth
Core Earnings Growth? Millions | so |= _ = 2008 2009 2010 2011 YTD 6/30/11 YTD 6/30/12 Compound Annual Growth Rate From 12/31/08 — 12/31/11 = 16.3%
Slide 19: Deposit Composition
Deposit Composition $1,200 + r F 5.25% $1,000 4.50% _—a — ; — » $800 3.75% < 2 $600 3.00% = $400 2.25% $200 1.50% $0 0.75% 2008 2009 2010 2011 YTD 6/30/12 mam Brokered Deposits mm local CDs Money Market gam int. Bearing Transaction Accounts NIB Transaction Accounts — Cost of Total Deposits Local Dep
Slide 20: Asset Quality Trends
Asset Quality Trends (dollars in thousands) 2008 2009 2010 2011 Non-Accrual Loans and Leases $ 16,285 $ 27,825 $ 38,406 $ 21,766 | $ 15,451 90+ Days Delinquent 0) t) t) t) tt) Non-Performing Loans and Leases $ 16,285 | $ 27,825/§ 38,406 | § 21,766 | $ 15,451 OREO 3,011,167. ay 2,2: 1,937 Non-Perform
Slide 21: Net Charge-Offs as a Percentage of Average Loans and Leases
Net Charge-Offs as a Percentage of Average Loans and Leases 2.00% 1.80% 1.60% 1.40% 1.20% 1.00% 0.80% 0.60% 0.40% 0.20% - 0.00% + 2006 2007 2008 2009 2010 2011 YTD 6/30/12 mm=FBIZ —AllBHCs —=WI-Based BHCs —=Peer Group
Slide 22: Operating Return on Average Assets
Operating Return on Average Assets 1.00% 4 @® 0.69% 0.80% @®> “= 0.40% 0.20% Te 71 0.00% +—| 2008 2009 2010 2011 YTD YTD 6/30/11 6/30/12
Slide 23: Efficiency Ratio & FTEs
Efficiency Ratio & FTEs 80.0% 75.0% ~ 70.0% 65.0% 60.0% ~ 55.0% 50.0% + 2008 @> o ee 2009 2010 eff ratio —FTE 2011 —_— YTD 6/30/12 150 140 130 120 - 110 100 90
Slide 24: Tangible Book Value per Share
Tangible Book Value per Share $27.00 4 $26.00 + $25.00 +4 a> $24.00 $23.00 | $22.00 4 2129 $21.00 + $20.00 + > $19.00 + $18.00 + $17.00 + $16.00 $15.00 + 2008 2009 2010 2011 06/30/12 Compound Annual Revenue Growth Rate From 12/31/08 — 6/30/12 = 7.9%
Slide 25: Investment Considerations
Investment Considerations YOUR SUCCESS COMES FIRST First Business
Slide 26: Investment Considerations
Investment Considerations Local market opportunities available for locally based institutions with strong balance sheets Manageable legacy asset quality situation with low historical charge-off levels Improving core funding base Attractive valuation point for entry
Slide 27: Appendix: Non GAAP Reconciliations
Appendix Non GAAP Reconciliations YOUR SUCCESS COMES FIRST First Business
Slide 28: Operating Returns and Core Earnings
Operating Returns and Core Earnings Operating ROAA and Operating ROAE (dollars in thousands) Net Income Realized Gain on cattn Goodwill Impairm: Operating Net mont Average Assets Operating Return on Average Assets Average Equity Operating Return on Average Equity (dollars in thousands) tamings befor
Slide 29: Efficiency Ratio and Top Line Revenue
Efficiency Ratio and Top Line Revenue (dollars in thousands) For the Years Ended 6 Months Ended 2008 2010 2011 6/30/: Non-Interest Expense $21,884 $24,501 $ 28,360 $ 26,397 $ 13,399 $ 13,964 ss on Foreclosed Properties (1,043) (691) (206) (420) (130) (242) FDIC Tne assessment (481) j00dwill my (2,68
Slide 30: Deposit Cost and Tangible Book Value
Deposit Cost and Tangible Book Value (dollars in thousands) For the Years cree. Shon iths Ended —2008__ 2009 2000 _ 200 _6f30/2011___6/30/2012_| $29,431 $24,398 § ea: 77 $17,115 0 ‘Average interest-bearing Deposits $ 777,280 $ ee a $ ae $ 892,958 $ 890,731 $ 911,566 Average Non- interest-bearing Dep
Slide 31: Texas Ratio
Texas Ratio (dollars in thousands) For the Quarters Ended sale gore hate 3/31/2011 _ 6/30/2011 _9/30/2011 ara pee 30,918 $ 39,190 $ 34,624 $ ora bal ‘and Leases ys Other real Die ‘Owned Nonpreforming Assets Allowance for Loan and Lease Losses 15,091 15,684 16,271 16,802 15,937 14141 14,155 14,451 14
Slide 32: Your Success Comes First
-— YOUR SUCCESS COMES FIRST | First Business
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