First Oak Brook Bancshares Inc
First Oak Brook Bancshares — Shareholder Meeting (May 2005)
26 slides from First Oak Brook Bancshares's shareholder meeting presentation, May 12, 2005
Slide 1: 21st Annual Meeting of Shareholders
First Oak Brook Bancshares, Inc. 21st Annual Meeting of Shareholders May 10, 2005
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation may contain forward-looking statements regarding financial performance, business prospects, growth and operating strategies. Actual results, performance or developments could differ materially from those expressed or implied by these forward-looking state
Slide 3: Treasury Management Customer Survey Results
75% of Oak Brook Bank Treasury Management customers rated Oak Brook Bank as excellent 24% rated Oak Brook Bank as good Oak Brook Bank far exceeded the other banks mentioned in all key categories 2005 Survey/Benchmark of Treasury Management Quality Treasury Management
Slide 4: Evolution of Payments
Evolution of Payments Increasingly Complex Payment Environment 1970's Cash Check Wire ACH ATM Credit Card 1980's Cash Check Wire ACH ATM Credit Card Debit Card EBP 1990's Cash Check Wire ACH ATM Credit Card Debit Card EBP Commercial Card ECP + Paper Today Cash Check Wire ACH ATM Credit Card Debit Ca
Slide 5: Treasury Management Revenue and Earnings
Treasury Management Generates over $10MM in revenue and approximately $5MM in direct pre-tax earnings Commercial Demand Deposit Account (DDA) average balances increased 10% in 2004 to $227MM
Slide 6: Treasury Management: It's a Process, not a Product
Treasury Management Initial sales contact Fact finding and relationship building Analysis and due diligence Referrals/Introductions to specialists Proposal and negotiation Implementation and training Customer service Relationship management It's a Process, not a Product
Slide 7: Oak Brook Bank Offices
Oak Brook Bank Offices
Slide 8: Market Share - DuPage County
Market Share - DuPage County As of June 30, 2004 In DuPage In DuPage Rank Institution ($M) Deposits % Market Share 1 JP Morgan/Chase (Bank One) 3,054.7 13.68% 2 Harris Bank (Bank of Montreal) 2,460.8 11.02% 3 Mid America Bank FSB 1,524.8 6.83% 4 Fifth Third Bancorp Inc. 1,340.0 6.00% 5 First Oak Bro
Slide 9: Dealer Lending Business
Dealer Lending Business Auto & Harley Terrific Cross-sell Business Indirect Auto $276 million in outstandings Indirect Harley $52 million in outstandings Commercial loans $50 million in outstandings Treasury Management $20 million plus in commercial deposits Wealth Management $20 million plus in per
Slide 10: Merchant Credit Card Program
Merchant Credit Card Program Sales Volume has grown from $64 million 7 years ago to $284 million today Ranked 80th largest processor in the U.S. and the 3rd largest based in Illinois by Nilson Report 2004 Sales Volume up 25% over 2003 Growth Opportunities Branch referrals Commercial banking referral
Slide 11: Residential Lending Best Rate Guarantee
Residential Lending "Best Rate Guarantee" If we can't match the lowest rate customers find in Chicagoland, we'll pay them $300 Offer valid for owner-occupied home mortgages and home equity lines Advertising Campaign WBBM Radio Chicago Tribune Broadcast TV (CBS, NBC, ABC, WGN) BestRateChicago.com (we
Slide 12: Real Estate Group: Sound Principles
A healthy, stable market Lower risk asset classes (multifamily, retail, 1-4 family "for-sale" construction) and security position (senior debt) Deeply researched & underwritten transactions Local market knowledge & networks Extensive client & prospect contacts Broad staff experience & skill sets Rea
Slide 13: Real Estate Group Commercial Real Estate Portfolio
Real Estate Group Construction & Development Multifamily Retail Owner-occupied Nonowner-occupied CRE Loans 0.27 0.29 0.2 0.18 0.06 $329.4MM Commercial Real Estate loan portfolio $96.1MM Multifamily $89.3MM Construction $64.9MM Retail $58.2MM Owner-occupied $20.9MM Nonowner-occupied Multifamily 29% C
Slide 14: Real Estate Group: Superior Execution
Oak Brook Bank "walks the talk" A "flat" organization structure Average 17 years of experience Hands-on training & mentoring High client "touch" with senior managers Promise what is deliverable, deliver what is promised Real Estate Group "Superior Execution"
Slide 15: Real Estate Group: Solid Results
$329 million aggregate commercial real estate balances on 3/31/2005 vs. $275 million at 12/31/2003- up 19.63% $89 million in aggregate construction loan balances on 3/31/2005 vs. $40 million at 12/31/2003- up 122.5% Total new loans booked during 2004 of $189 million Real Estate Group "Solid Results"
Slide 16: Wealth Advisory Group
Wealth Advisory Group 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 Discretionary Assets 35.5 47.9 67.5 91 134 194.9 245.2 271.2 379.2 485.1 635.2 751 Revenue 367.9 442.9 591.7 800.4 878.5 1048.3 1128.4 1144.3 1429.3 1700.7 2138.2 2628.1
Slide 17: Wealth Advisory Group Investment Results
Wealth Advisory Group Investment Results Stocks YTD 3/31/05 3 Year CAR* 5 Year CAR* OBB Model Equity Portfolio (0.97)% 6.31% (0.96)% S&P 500 Index (2.15)% 3.58% (2.30)% Bonds OBB Managed Fixed Income (0.51)% 5.91% 7.71% ML U.S. Treasury/Agency Master (0.40)% 5.62% 7.39% *Compound Annual Rate for per
Slide 18: Chicago Private Bank
@ CHICAGO PRIVATE BANK
Slide 19: Credit Risk Management
Credit Risk Management 12/01/2002 12/01/2003 12/01/2004 Current Commitment 31958 9184 259 Outstanding 24733 8392 176 $ in thousands
Slide 20: Interest Rate Risk
First Oak Brook Bancshares, Inc. 4% of Fully Tax EquivalentNet interest Income Interest Rate Risk Cong arison of Rate Shock vs. Gradual Change Earnings at Risk - Next 12 Months As of March 31, 2005 20 20 45 40 50 0 50 1m im 20 20 Interest Rafe Scenario —Interest RateShock ——Interest Rate Ramp 2
Slide 21: Total Loan Portfolio
Total Loan Portfolio December 31, 2003 $ 915,678,000 December 31, 2004 $1,071,655,000 March 31, 2005 $1,102,439,000
Slide 22: Fixed vs. Floating Rate Commercial Loans
Fixed vs. Floating Rate Commercial Loans** 12/31/2003 12/31/2004 03/31/2005 Fixed Rate 196.7 214.8 208.1 Floating Rate 207.6 260.4 287 3/31/2005 12/31/2004 12/31/2003 **Includes Commercial, Syndicated, Construction and Commercial Real Estate loans
Slide 23: 2004 Financial Highlights
2004 Financial Highlights Record earnings of $19.1 million Record assets of $2.1 billion Loans surpassed $1 billion Cash dividends increased 38% Stock price increased 8%
Slide 24: 2005 First Quarter Highlights
2005 First Quarter Highlights Net income down 10% Margin Compression Linked quarter margin down only 2 basis points to 2.70% from 2.72% Fee income boosted by growing wealth management, merchant credit processing and gains on mortgages sold Cost of branch expansion (Average $0.04 per share per branch
Slide 25: Stock Performance
Stock Performance April 30, 2005 December 31, December 31, December 31, December 31, April 30, 2005 2004 2003 2002 2001 Market Price $28.49 $32.41 $30.01 $20.95 $16.10 FOBB (12.1)% 8.0% 43.3% 30.1% 37.0% SNL Bank Index (Assets $1-5 Billion) (14.4)% 20.9% 32.9% 12.8% 18.5% Nasdaq Bank Index (10.8)% 1
Slide 26: Why invest in FOBB?
Why invest in FOBB? Our attractive growing Chicagoland franchise Experienced management and high inside ownership Solid fundamentals and stellar asset quality FOBB trades at a discount to our peers
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