Midland States Bancorp, Inc. · NASDAQ:MSBI
Midland States Bancorp — Merger or Acquisition (October 2017)
11 slides from Midland States Bancorp's merger presentation, Oct 17, 2017
Slide 1: Forward-Looking Statements
1 Forward-Looking Statements. Readers should note that in addition to the historical information contained herein, this presentation includes "forward-looking statements," including but not limited to statements about Midland States Bancorp, Inc. (the “Company”, “Midland States” or “MSBI”)’s expecte
Slide 2: Transaction Highlights
Transaction Highlights 2 Franchise Value Enhancing Transaction Financially Attractive Low Risk 100+ year old community bank with deep community ties that brings significant scale with $1.3B in assets and the #1 market share ranking in the Rockford, IL MSA Creates the 4th largest Illinois-based commu
Slide 3: Alpine Bancorporation, Inc. Overview
90 Alpine Bancorporation, Inc. Overview Source: SNL Financial. Financial data as of 6/30/17. Alpine is an S-Corporation. ROAA and ROAE tax-effected at an effective rate of 30%. NPLs include nonaccrual loans and TDRs. NPAs include NPLs, OREO and loans 90+ days past due and still accruing interest. 3
Slide 4: Pro Forma Franchise
55 64 70 55 72 74 39 57 44 70 35 29 Pro Forma Franchise Source: SNL Financial. As of 6/30/17, unadjusted for purchase accounting or merger adjustments. Community banks defined as banks headquartered in Illinois with total assets less than $20 billion. Deposit data as of 6/30/17. Alpine data excludes
Slide 5: Diversified, Low Risk Loan Portfolio
Diversified, Low Risk Loan Portfolio 5 Midland States Alpine Loan Growth Alpine Total: $3.2B MRQ Yield: 4.69% Total: $0.8B MRQ Yield: 4.15% Total: $4.0B MRQ Yield: 4.57% CRE / Total RBC: 250% CLD / Total RBC: 41% CRE / Total RBC: 208% CLD / Total RBC: 63% CRE / Total RBC: 233% CLD / Total RBC: 44% P
Slide 6: Attractive Core Deposit Base
Attractive Core Deposit Base Source: SNL Financial and Company documents. Financial data as of 6/30/17. Core deposits defined as total deposits less time deposits greater than $100k. Represents cost of total deposits. 6 Midland States Pro Forma Alpine Total: $3.3B MRQ Cost:(2) 0.42% Total: $1.1B MRQ
Slide 7: Financial Impact & Assumptions
Financial Impact & Assumptions 8 Purchase Accounting Pro Forma Capital Ratios At Closing 36% of Alpine’s non-interest expense base (75% phased in 2018; 100% thereafter) 1.5% gross credit mark on outstanding loan balances Core deposit intangible created equal to 1.5% of Alpine’s non-time deposits, am
Slide 8: Low Risk Transaction
Low Risk Transaction 9 Experienced Acquiror Extensive Due Diligence Process Midland States is an experienced and disciplined buyer (11 completed deals) Track record of successful post-closing integration of systems and businesses Extensive due diligence led by Midland States M&A and Credit teams Ext
Slide 9: Summary
Summary 10 Strategically attractive transaction with compelling financial metrics Creates the 4th largest Illinois-based community bank Meaningful addition of low-cost, core deposit funding and excess liquidity provides resources to fund organic growth Adds significant scale to our wealth management
Slide 10: Appendix – Alpine Bancorporation, Inc. Highlights
Appendix – Alpine Bancorporation, Inc. Highlights 11 Source: SNL Financial. Financial data as of 6/30/17. Alpine is an S-Corporation, financial figures are shown adjusted for a 30% effective tax rate. NPLs include nonaccrual loans and TDRs. NPAs include NPLs, OREO and loans 90+ days past due and sti
Slide 11: Appendix — Alpine Bancorporation, Inc. Highlights
Appendix — Alpine Bancorporation, Inc. Highlights “Twelve Months Ended, Six Months Ended, Cy 123415 36 6/30/17 Balance Sheet: Total Assets ($M) $1,619 $1 2079 $1,2500 $1,2832 Total Loans ($M) $624.2 $736.9 $8147 $830.2 Deposits ($M) $1,038.3 $1,082.5 $1,108.0 $1,198.3, Tangible Common Equity (SM) $1
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