First Business Financial Services, Inc. · NASDAQ:FBIZ
First Business Financial Services — Shareholder Meeting (May 2012)
47 slides from First Business Financial Services's shareholder meeting presentation, May 17, 2012
Slide 1: Annual Shareholder Meeting May 14, 2012
Annual Shareholder Meeting May 14, 2012
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: Your Success Comes First
YOUR SUCCESS COMES FIRST
Slide 4: Balance Sheet
Balance Sheet End of Year December, 31 Assets Cash and cash equivalents Investment securities Loans and leases receivable, net Cash surrender value of bank-owned life insurance Accrued interest receivable and other assets Total assets Liabilities and Stockholders’ Equity Deposits Borrowed funds Tota
Slide 5: Income Statement
Income Statement End of Year ‘Years Ended December 31, ott 2070 (@o Thousands) Net interest income: Total interest income 8 Total interest expense Net interest income Proision for loan and lease losses Net interest income ater provision fr loan & lease losses, Non-inte Saintes iardow ee For 2334 sed
Slide 6: Top Line Revenue
Top Line Revenue Years Ended December 31, 2011 2010 (In Thousands) Net interest income $ 35,461 $ 31,951 Non-interest income 7,060 6,743 Top Line Revenue $ 42,521 $ 38,694
Slide 7: Core Earnings Reconciliation
Years Ended December 31, 2011 2010 (In Thousands) Income before Tax Expense $11,874 $ 3,290 Add back Credit Related Costs Provision for Loan and Lease Loss 4,250 7,044 Loss on Foreclosed Properties 420 206 Adjustments for Discrete Items Unrelated to Core Business Goodwill Impairment 2 2,689 Gain on
Slide 8: CEO
CEO Company Update YOUR SUCCESS COMES FIRST
Slide 9: Agenda
Agenda Brief Company Overview How Are We Doing? 2011 Objectives Peer Comparisons Stock Performance 2012 Objectives
Slide 10: Brief Company Overview
Brief Company Overview YOUR SUCCESS COMES FIRST
Slide 11: Mission
The mission of First Business Financial Services, Inc. is to build long-term shareholder value as an entrepreneurial financial services provider to businesses, executives, and high net worth individuals. Mission
Slide 12: Mission
The mission of First Business Financial Services, Inc. is to build long-term shareholder value as an entrepreneurial financial services provider to businesses, executives, and high net worth individuals. Mission
Slide 13: Corporate Profile
Corporate Profile Headquarters: Madison, WI Employees (Q1 2012) 113 FT, 31 PT Full service branches: none Total assets at March 31, 2012: $1.21 Billion 1 of 2 WI based commercial bank holding companies listed on NASDAQ or NYSE Business model: Business focus Experienced leadership Entrepreneurial man
Slide 14: Operating Entities Timeline
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Jun 2000 First Business Bank - Milwaukee Operating Entities Mar 1990 First Business Bank - Madison May 1995 First Business Capital Corp. Oct 1998 First Business Equipment Finance Dec 2001 First B
Slide 15: Footprint
Footprint St. Louis, MO ^ Chicago, IL ^ Cleveland, OH ^ Minneapolis, MN ^ Detroit, MI ^ * Full Service Banking Office ^ Asset-Based Lending Business Development Office # Equipment Finance Business Development Office Madison, WI * Milwaukee, WI * Appleton, WI * Denver, CO ^ # Kansas City, KS #
Slide 16: How Are We Doing? 2011 Objectives
How Are We Doing? 2011 Objectives
Slide 17: 2011 Goals
Continue organic revenue growth Achieve additional improvement in core earnings Increase percentage of In-market Deposits Improve ROA 2011 Goals
Slide 18: Top Line Revenue Growth
Top Line Revenue Growth Compound Annual Growth Rate Through 2011 = 11.4%
Slide 19: 2007 2008 2009 2010 2011
2007 2008 2009 2010 2011
Slide 20: Core Earnings Growth
Core Earnings Growth Compound Annual Growth Rate Through 2011 = 20.0% $3,315 25.1%
Slide 21: Return on Average Assets
Return on Average Assets Compound Annual Growth Rate Through 2011 = 17.8% * Excludes goodwill impairment 42 bps 127.3%
Slide 22: In-Market Deposits
In-Market Deposits Compound Annual Growth Rate Through 2011 = 14.9%
Slide 23: How Are We Doing? Asset Quality
How Are We Doing? Asset Quality
Slide 24: 2011 Non-Performing Assets as a Percentage of Total Assets
2011 Non-Performing Assets as a Percentage of Total Assets
Slide 25: Non-Performing Assets as a Percentage of Total Assets
Non-Performing Assets as a Percentage of Total Assets
Slide 26: Cumulative Net Charge-offs as a Percentage of Average Loans
Cumulative Net Charge-offs as a Percentage of Average Loans (2008-2011)
Slide 27: How Are We Doing? Peer Comparisons
How Are We Doing? Peer Comparisons
Slide 28: Peer Group
Publicly traded < $3 billion in total assets > 70% Commercial & Industrial and Commercial Real Estate loans Geographically constrained Peer Group
Slide 29: Peer Group
Peer Group
Slide 30: Peer Group
Peer Group
Slide 31: Peer Group
Peer Group Mercantile Bank Corporation Enterprise Financial Services Corp Guaranty Bancorp West Bancorporation, Inc. Mackinac Financial Corporation QCR Holdings, Inc. Northern States Financial Corporation Bank of Kentucky Financial Corp. Crescent Financial Corporation Guaranty Federal Bancshares, In
Slide 32: Peer Comparison Graphs/Charts December 31, 2011
Peer Comparison Graphs/Charts December 31, 2011 ROA ROE Revenue Growth Net Interest Margin Efficiency Ratio NPA's to Assets NCO's to Loans Stock Price Change FBIZ 0.75 14.03 9.89% 3.29 61.53% 2.04% 0.74% 22.95% Peer Group Median 0.54 7.20 2.18% 3.65 72.19% 2.82% 1.06% 0.19%
Slide 33: Stock Performance
Stock Performance YOUR SUCCESS COMES FIRST
Slide 34: FBIZ Stock Performance vs. Selected Indices
Stock Performance FBIZ Stock Performance vs. Selected Indices Source: SNL Securities
Slide 35: Tangible Book Value per Share
Tangible Book Value per Share Compound Annual Growth Rates Through 2011 = 7.6% $3.17 14.9%
Slide 36: Dividend per Share
Dividend per Share Dividend Yield as of May 10, 2012 = 1.2%
Slide 37: 2012 Objectives
2012 Objectives YOUR SUCCESS COMES FIRST
Slide 38: 2012 Objectives
Continue organic revenue growth Achieve additional improvement in core earnings Increase percentage of In-market Deposits Continued asset quality improvement Maintain strong profitability/ROA Invest in talent for future growth and profitability 2012 Objectives
Slide 39: 2012 Q1 Performance Update
2012 Qi Performance Update YOUR SUCCESS COMES FIRST
Slide 40: Top Line Revenue Growth
Top Line Revenue Growth Year over Year Growth = 6.1% $620 6.1%
Slide 41: Core Earnings Growth
Core Earnings Growth Year over Year Growth = 19.5% $672 19.5%
Slide 42: Core Deposit Growth
Core Deposit Growth $113,563 22.5% Year over Year Growth = 22.5%
Slide 43: Return on Average Assets Growth
Return on Average Assets Growth 26 bps 54.2% Year over Year Growth = 54.2%
Slide 44: Non-performing Assets / Total Assets
Non-performing Assets / Total Assets -177 bps -47.5%
Slide 45: Talent Acquisition
Business Development Officers 2 C&I Lenders 1 Trust 2 Equipment Finance (part of 5 person team) Average of 20 years experience 15% increase in business development staff Talent Acquisition
Slide 46: Your Success Comes First
YOUR SUCCESS COMES FIRST
Slide 47: Annual Shareholder Meeting May 14, 2012
Annual Shareholder Meeting May 14, 2012
First Business Financial Services — Shareholder Meeting (May 2012) on 6ix