First Business Financial Services, Inc. · NASDAQ:FBIZ
First Business Financial Services — Investor Presentation (November 2011)
35 slides from First Business Financial Services's investor presentation, Nov 18, 2011
Slide 1: Management Presentation November 2011
Management Presentation November 2011 Section 2: Exhibit 99.1
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: FBIZ Company Overview
FBIZ Company Overview YOUR SUCCESS COMES FIRST
Slide 4: Corporate Profile
Corporate Profile Headquarters: Madison, WI Total assets at September 30, 2011: $1.1 Billion 1 of 2 WI based commercial bank holding companies listed on NASDAQ or NYSE Insider ownership of 20.8%(1) Business-focused model (no retail branch network) Experienced leadership Entrepreneurial management st
Slide 5: Footprint
Footprint Source: FBIZ management. St. Louis, MO** Chicago, IL** Cleveland, OH** Minneapolis, MN** Detroit, MI** * Full Service Banking Office ** Asset-Based Lending Business Development Office Madison, WI* Milwaukee, WI* Appleton, WI* Denver, CO**
Slide 6: History of First Business
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Jun 2000 First Business Bank - Milwaukee History of First Business Mar 1990 First Business Bank - Madison May 1995 First Business Capital Corp. Oct 1998 First Business Equipment Finance Dec 2001 First
Slide 7: Senior Executive Team
Senior Executive Team President & Chief Executive Officer 27 years of commercial banking experience specializing in commercial lending & cash management 18 years with First Business Prior to joining First Business, Mr. Chambas held various senior lending positions with M & I Bank Corey Chambas Jim R
Slide 8: Senior Executive Team
Senior Executive Team General Counsel and Corporate Secretary Juris Doctor, University of Wisconsin Law School, magna cum laude, Member of the State Bar of Wisconsin Over 30 years of commercial banking experience 3 years with First Business Prior to joining First Business, Ms. Conley held various se
Slide 9: Corporate Strategy
Corporate Strategy High efficiency operating model "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 from M&I sale
Slide 10: Recent Financial Performance
Recent Financial Performance
Slide 11: Highlights through September 30, 2011
Highlights through September 30, 2011 Net Income $6.040 million, $2.32 fully diluted EPS Diluted EPS of $2.32 vs. $0.14 or $1.20, excluding the impairment of goodwill, in the first 9 months of 2010 Trust and Investment Services revenue of $1.918 million, up 10.4% year over year Assets under manageme
Slide 12: Financial Highlights
Financial Highlights Source: SEC filings and FBIZ Management. See Appendix for non GAAP reconciliation schedules. Operating ROAA and ROAE exclude the impact of the goodwill impairment and gains on sales of securities. Realized gains tax-effected at 39.214%.
Slide 13: Loan and Lease Composition
Loan and Lease Composition Source: SEC filings. (CHART)
Slide 14: Deposit Composition
(CHART) Deposit Composition Source: SEC filings. See Appendix for non GAAP reconciliation schedules. Local Deposits - Compound Annual Growth Rate From 12/31/06 -12/31/10 = 11.7% 47.7% 7.1% 31.4% 2.1% 11.7%
Slide 15: Asset Quality Trends
Asset Quality Trends Source: SEC filings and FBIZ management Texas Ratio =(Nonaccrual + 90 day PD + OREO) / (Tangible Equity + Allowance for loan and lease losses). See Appendix for non GAAP reconciliation schedules. As of 9/30/11, $14.5 million of our nonaccrual loans and leases were impaired but c
Slide 16: Net Charge-Offs as a Percentage of Average Loans and Leases
Net Charge-Offs as a Percentage of Average Loans and Leases Source: SNL Financial and SEC Filings. All BHCs group comprised of all BHCs reporting consolidated regulatory financial data as of 9/30/2011. *September 2011 YTD data is annualized. (CHART)
Slide 17: Tangible Book Value per Share
Tangible Book Value per Share $20.34 $21.29 $19.74 $18.24 $17.22 $23.48 Source: SEC filings and FBIZ management. See Appendix for non GAAP reconciliation schedules. Compound Annual Revenue Growth Rate From 12/31/06 - 9/30/11 = 6.75%
Slide 18: How Are We Doing? Strategic Objectives
How Are We Doing? Strategic Objectives
Slide 19: Strategic Objectives
Improve core funding mix by capturing local deposits from our commercial customers & their owners Continue organic revenue growth Maintain a relatively stable number of employees Achieve additional improvement in operating efficiency Achieve additional improvement in core earnings Strategic Objectiv
Slide 20: Top Line Revenue Growth
Top Line Revenue Growth1 Compound Annual Revenue Growth Rate From 12/31/06 - 12/31/10 = 14.3% Source: SEC Filings and FBIZ Management. See Appendix for non GAAP reconciliation schedules. Top line revenue growth calculated as net interest income + total noninterest income (including realized gains on
Slide 21: Efficiency Ratio
Efficiency Ratio Source: SEC Filings and FBIZ Management. See Appendix for non GAAP reconciliation schedules. (CHART)
Slide 22: Core Earnings Growth
Core Earnings Growth1 Compound Annual Growth Rate From 12/31/06 - 12/31/10 = 17.5% -$0.7M -8.7% $1.0M 14.7% $2.9M 27.8% $2.6M 32.1% -$0.2M -1.6% $2.5M 26.8% Source: SEC Filings and FBIZ Management. See Appendix for non GAAP reconciliation schedules. Core earnings defined as earnings before tax plus
Slide 23: How Are We Doing? Peer Comparisons
How Are We Doing? Peer Comparisons
Slide 24: Peer Group Criteria
Publicly traded < $3 billion in total assets > 70% Commercial & Industrial and Commercial Real Estate loans(1) Constrained geographically (CO, IA, IL, IN, KS, KY, MI, MN, MO, NC, ND, NE, OH, SD, TN and WI) Currently paying a dividend Peer Group Based on consolidated bank holding company regulatory l
Slide 25: Peer Comparison Graphs/Charts
Peer Comparison Graphs/Charts September 30, 2011 Source: SNL Financial. Market data as of 11/15/11. Financial data as of 9/30/11. Represents year over year growth rates. Operating revenue growth calculated as net interest income + total noninterest income (including realized gains on securities). No
Slide 26: 2011 Objectives
2011 Objectives YOUR SUCCESS COMES FIRST
Slide 27: 2011 Objectives
Continue organic revenue growth Achieve additional improvement in core earnings Increase percentage of in-market deposits Improve ROA 2011 Objectives
Slide 28: 2011 Objectives
(CHART) 2011 Objectives Top Line Revenue Growth Core Earnings Growth Core (In-Market) Deposit Growth Return on Average Assets Growth Source: SEC filings and FBIZ management. Dollar values represent annual increase and growth rates represent year over year growth. See Appendix for non GAAP reconcilia
Slide 29: Current Market Opportunity
Significant disruption among competitors in our core Wisconsin markets BMO acquires Marshall & Ilsley Johnson Bank reports a loss of $149.5 million in 2010 Signs written agreement with Federal Reserve New CEO named in January 2011 and again in June 2011 Associated Bank's top commercial banking execu
Slide 30: Management Presentation November 2011
Management Presentation November 2011
Slide 31: Appendix Non GAAP Reconciliations
Appendix Non GAAP Reconciliations
Slide 32: Operating Returns and Core Earnings
Operating Returns and Core Earnings Operating ROAA and ROAE are annualized. Operating ROAA and Operating ROAE Core Earnings (Pre-tax)
Slide 33: Efficiency Ratio and Top Line Revenue
Efficiency Ratio and Top Line Revenue Efficiency Ratio Top Line Revenue
Slide 34: Deposit Cost and Tangible Book Value
Deposit Cost and Tangible Book Value Average interest-bearing deposits for 2006-2008 equal to the average of the period averages for each of the four calendar quarters in each respective year. Average non-interest-bearing deposits for 2006-2008 equal to the average of the period averages for each of
Slide 35: Texas Ratio
Texas Ratio (Goliars in housanes) Nonaccrual Loans and Leases 90+ Days Past Ove ‘Other Rea Estate Owned Nonpreforming Assets Allowance for Loan and Lete Losses Total Equity Intangible Assets Tangible Tota Equity Tevas Rao Forthe Quarters Ended Bai “pono Lyne sino _ sino Soo __woT Saisie “$3056 “S s0
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