First Business Financial Services, Inc. · NASDAQ:FBIZ
First Business Financial Services — Merger or Acquisition (May 2014)
16 slides from First Business Financial Services's merger presentation, May 23, 2014
Slide 1: Acquisition of Aslin Group, Inc. and its Alterra Bank Subsidiary
Acquisition of Aslin Group, Inc. and its Alterra Bank Subsidiary May 23, 2014 First __Alterra: Business: YOUR SUCCESS COMES FIRST
Slide 2: Forward-Looking Statements
Forward-Looking Statements /hen used in this presentation, and in any other oral 2 the words or phrases “may,” “could,” “should,” “hope,” “might,” “believe,” “expect,” “plan,” fassunte, ” “intend,” “estimate,” “anticipate,” ‘Proect , ately ” or similar statements” within the meaning of such in the P
Slide 3: Transaction Highlights
Transaction Highlights Strategically Compelling Financially Attractive Cc ion of y Pp ial cultures, with emphasis on growth and asset quality Maintain Alterra Bank’s market momentum in Kansas City with retention of key leaders, lenders and client contact team members Alterra’s single branch model an
Slide 4: Transaction Overview
Transaction Overview Consideration Management Team & Board Representation ed Approvals & Timing $30.1 million $6,496.02 per share in cash plus $7,939.57 per share in FBIZ common stock for each share of Aslin Group, Inc. common stock Stock portion based on a floating exchange ratio (186.8121 shares o
Slide 5: Alterra Bank Overview
Alterra Bank Overview Franchise Overview Assets $223 M Gross Loans $182 M Deposits $192M + Single branch model headquartered in Leawood, KS is similar to FBIZ's legacy focus ona branchless philosophy Management team has significant long- term commercial relationships in Kansas City metropolitan area
Slide 6: Consistent Commercial Lending Focus
Consistent Commercial Lending Focus SS Multifamily MQ Yield on MRQ Yield on Loans: 5.10% Loans: 5.55% uli fam Construction Multi-family 4 Family a 3% ps 9 24 F2PY Construction id 1% (Sin 000s) _% of Total ($ in 000s) Sere 137,648 14.0% 20,97 336,806 71,465 28,690 Iti-fami cen & Industrial ther mi It
Slide 7: Similar Efficient Funding Strategy
Similar Efficient Funding Strategy ee Brokered of Contificate of Deposit Time Deposits> Deposi 36% $100,000 a% 50% other Transaction Interest Bearing Time Deposits < ects Trans. Aects. $100,000 al ™% 7% Noninterest Bearing Trans. Accts. $146,507 12.9% Demand $ 27598 144% Interest Bearing Trans. Acct
Slide 8: Track Record of Growth & Profitability
Track Record of Growth & Profitability Aaa) Aon foe tel ference 11-13 12/31/11__12/31/12__12/31/139]__CAGR Balance Sheet & Balance Sheet Ratios Total Assets 136,115 165,666 222,891 tale Gross Loans 106,195 135,293 182,297 111,924 139,164 191,819 ial Deposits (%) 94.9 97.2 95.0 TCE /TA(%) 10.77 9.84
Slide 9: Comprehensive Due Diligence Review
Comprehensive Due Diligence Review Due Diligence Highlights Credit Due Diligence Detail Comprehensive due diligence process including operations, core systems, legal and credit Extensive Credit review focused on the largest commercial relationships, adversely classified assets and watch list loans C
Slide 10: Pro Forma Impact
Pro Forma Impact Tangible Book Value Capital Attractive Financial Returns) Anticipated to be 5% Key Assumptions accretive to earnings per share in the first full 12 months, excluding one-time costs Expected high single digit earnings per share accretion long term’) ~5% dilution estimated at closing
Slide 11: Pro Forma Footprint
Pro Forma Footprint Source: F812 Management,
Slide 12: KC Market — Similar Business Mix, Triple the Size
KC Market — Similar Business Mix, Triple the Size Madison MSA — By Percentage of Businesses Kansas City MSA — By Percentage of Businesses Retail Trade 13% Public Wholesale Trade *% eal Estate, lal & Leasing Accommod: ox & Food Services Te Total Businesses in Market: 27,350 Total Businesses in Market
Slide 13: Complementary Products
Complementary Products Complementary offerings enhance growth opportunities across the combined franchise First s Alte: ombined Business Business Banking Commercial Lending v v v Commercial Real Estate v v v Treasury Management v v v ; > SBA Lending ( vj v ‘me Specialized Lending - Y Asset Based Len
Slide 14: Transaction Summary
Transaction Summary Commercial focus with limited brick and mortar footprint consistent with FBIZ’s long-term strategy Strong credit culture fits our focus on asset quality Attractive expected earnings per share accretion and payback metrics Internal rate of return well in excess of our cost of capi
Slide 15: Additional Information
Additional Information 0 sell or the solicitation of an offer to buy any securities or a solicitation of any proxy vote or poetetae: The proposed ‘merger and issuance eof FBIZ common stock in connection with the proposed merger will be submitted to Aslin Group, Inc.’s stockholders for their consider
Slide 16: Your Success Comes First
YOUR SUCCESS COMES FIRST | irst Business
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