Midwest Banc — Investor Presentation (August 2008)
22 slides from Midwest Banc's investor presentation, Aug 19, 2008
Slide 1: Forward Looking Statements
Any oral statements made by representatives of the Company or any written statements contained in any written documents provided at this presentation concerning financial and other projections constitute forward looking statements within the meaning of the Securities Exchange Act and are subject to
Slide 2: Our Message Today
Our Message Today Management enhancements Capitalize on dislocation in Chicago market Transformed into full-service bank Asset quality improving 2Q08 highlights Improving net interest margin "Big Bank Relief"
Slide 3: Chief Financial Officer JoAnn Sannasardo Lilek
Chief Financial Officer JoAnn Sannasardo Lilek 23-year career at LaSalle ABN-AMRO reporting directly to Chairman CFO DSC Logistics last 6 years Chair the Board of Trustees, Lou Holland Trust for Holland Capital Management, L.P. President of the Board of Directors, YWCA Metropolitan Chicago Member: C
Slide 4: Other Management Enhancements
Other Management Enhancements David J. Taylor, EVP and Head of Wealth Management 11-year career SVP & Division Head - Wealth Management Group Bank of America (LaSalle) 9-year career with other wealth management firms Brogan Ptacin, EVP Head of Corporate Banking 9-year career EVP Royal American Corpo
Slide 5: Vital Statistics
Vital Statistics Assets $3.7 billion Shares 27.8 million Market Cap (1) $171 million (1) As of August 14, 2008. (1) As of August 14, 2008.
Slide 6: Serving Chicagoland: Offices
Serving Chicagoland: 29 Offices McHenry Union Algonquin Island Lake Barrington Buffalo Grove Inverness Mount Prospect Des Plaines Glenview Roselle Bloomingdale Bensenville Addison Village Naperville Downers Grove Hinsdale Melrose Park Norridge Elmwood Park
Slide 7: 6th Largest Independent Chicago Bank
6th Largest Independent Chicago Bank Source: SNL; pro forma information as of June 2007
Slide 8: The Chicago Opportunity
The Chicago Opportunity Chicago MSA: 3rd largest in US based on deposits If a state, the Chicago MSA would rank 5th in US $268 billion in deposits Rich diversity of small and middle market business MBHI building a franchise to be bedrock of long- term shareholder value
Slide 9: Capitalize on Dislocation in Chicago
Capitalize on Dislocation in Chicago Many small businesses don't identify with policies and decisions made in: Montreal Edinburgh Manhattan Charlotte Cleveland Cincinnati Many top quality small business bankers want to or have jumped ship and joined a community bank TEXAS RATIO
Slide 10: MBHI: Transforming from Thrift to Bank - Loan Portfolio
MBHI: Transforming from Thrift to Bank Transitioning loan portfolio from 2002 "thrift" to "bank" model through two acquisitions. 12/31/2002 $1.1 Billion 6/30/2008 $2.5 Billion In 2002 virtually none of CRE was owner occupied Today, 45% of the CRE portfolio is owner occupied
Slide 11: MBHI: Transforming from Thrift to Bank - Deposit Mix
MBHI: Transforming from Thrift to Bank Improving the deposit mix Demand deposits up 165% compared to 2002 12/31/2002 $1.2 Billion 6/30/2008 $2.3 Billion
Slide 12: Asset Quality Improving
Asset Quality Improving Asset quality ratios at lowest levels since late 2006 * Peer Group Consists of: AMFI, FMBI, MBFI, OSBC, PVTB, TAYC, WTFC
Slide 13: Asset Quality Improving
—SESESEeEeseseseses— ss Asset Quality Improving a Asset quality ratios at lowest levels since late 2006 NPAs / Assets NALs / Loans 1.78% 2.50% 1.50% 2.00% 1.25% 1.00% 1.50% 0.75% 4.00% 0.50% 0.50% 0.25% 0.00% 0.00% 12/31/2006 12/31/2007 3/31/2008 6/30/2008 12/31/2006 12/31/2007 3/31/2008 6/30/2008 E
Slide 14: 2nd Quarter Results
Net Income $ 2.428 million EPS $ .06 Net Interest Margin 2.89 % NPAs / Assets 1.16 % NCOs / Average Loans 0.35 % Delinquencies 30-89 Days / Loans 0.35 % Loan Growth (Annualized) 5 % Total Risk Based Capital Ratio 10.4 % 2nd Quarter Results
Slide 15: Big Bank Relief
Big Bank Relief $37 million in new loan relationships in the second quarter Since June 2008, over $135 million new retail customer deposits through recent campaign
Slide 16: Yields, Costs and Margin
Yields, Costs and Margin Cost Liabilities NIM * 6/07 and 6/08 figures represent second quarter following Guide 3 ** Monthly figures are computed based on actual days Earning Assets 6.92%* 5.88%* 4.36%* 3.32%* 3.05%* 2.89%*
Slide 17: Margin vs. Peers
Margin vs. Peers * Peer Group Consists of: AMFI, FMBI, MBFI, OSBC, PVTB, TAYC, WTFC
Slide 18: Margin vs. Peers
BS Margin vs. Peers 3.40% 3.30% 3.20% 3.10% 3.00% 2.90% 2.80% 2.70% 2.60% 2.50% 6107 7107 8107 9107 10107 11107 12107 108 208 308 4/08 5108 6/08 * Peer Group Consists of AMFI, FMBI, MBFI, OSBC, PVTB, TAYC, WTFC ”
Slide 19: Revenue Potential
zzz Revenue Potential 30 Fee Income 29 ‘ore Depy Loan 28 z va a 27 : [| 2s 2Q08 Potential_Potential_Potential__—_ Potential @ Fee Income $08 1 S25MM Core Deposits $02 $02 1 SI00MM Loan $0.6 $0.6 $0.6 1 10bps Margin $08 S08 $08 $08 Total Revenue 2Q08 $27.2 9272 9272 9272 9272 EPS Impact 2Q08 $0.02 $0
Slide 20: Critical Factors for Success
Continue to: Strengthen management Capitalize on dislocation in vibrant & over- banked Chicago marketplace Improve credit quality and margin Build on solid platform for growth Critical Factors for Success
Slide 21: Questions?
Jim Giancola JoAnn Lilek Questions?
Slide 22: Midwest Banc Holdings, Inc. August 2008
Midwest Banc Holdings, Inc. MBHI James J. Giancola JoAnn Sannasardo Lilek August 2008
Midwest Banc Holdings — Investor Presentation (August 2008) on 6ix