First Business Financial Services, Inc. · NASDAQ:FBIZ
First Business Financial Services — Shareholder Meeting (May 2017)
41 slides from First Business Financial Services's shareholder meeting presentation, May 31, 2017
Slide 1: Annual Shareholder Meeting
ANNUAL SHAREHOLDER MEETING
Slide 2: Forward-Looking Statements
Forward-Looking Statements 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,”
Slide 3: Annual Shareholder Meeting
ANNUAL SHAREHOLDER MEETING
Slide 4: Financial Performance
wT on =} ig) FINANCIAL PERFORMANCE
Slide 5: Balance Sheet - Full Year 2016
Balance Sheet Full Year 2016 Assets Cash & cash equivalents Investment securities Loans held for sale Loans and leases receivable, net Cash surrender value of bank-owned life insurance Goodwill & other intangible assets Accrued interest receivable & other assets Total assets Liabilities & Stockholde
Slide 6: Income Statement - Full Year 2016
Income Statement Full Year 2016 Net Interest Income: Interest income Interest expense Net interest income Provision for loan & lease losses Net interest income after provision for loan & lease losses Non-Interest Income: Trust & investment services fee income Gain on sale of SBA loans Service charge
Slide 7: Balance Sheet - First Quarter 2017
Balance Sheet First Quarter 2017 Assets Cash & cash equivalents Investment securities Loans held for sale Loans and leases receivable, net Cash surrender value of bank-owned life insurance Goodwill & other intangible assets Accrued interest receivable & other assets Total assets Liabilities & Stockh
Slide 8: Income Statement - First Quarter 2017
Income Statement First Quarter 2017 Net Interest Income: Interest income Interest expense Net interest income Provision for loan & lease losses Net interest income after provision for loan & lease losses Non-Interest Income: Trust & investment services fee income Gain on sale of SBA loans Service ch
Slide 9: CEO Presentation
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Slide 10: Company Overview, FBIZ Difference, First Business Model, Strategic Initiatives
¢ Company Overview e The FBIZ Difference e First Business Model e Strategi
Slide 11: Company Overview
sles ee =] 9} COMPANY OVERVIEW
Slide 12: Company Profile
Company Profile a —o 1. Consists of all FBIZ BANKING: FBIZ TRUST $1. 8 Billion $1. 3 Billion IN TOTAL ASSETS ASSETS UNDER MANAGEMENT & AGRaniSEATCn Headquarters: Madison, WI Mission: Build long-term shareholder value as an entrepreneurial financial services provider to businesses, executives and hig
Slide 13: Aligned with the Financial Needs of Our Niche Client Base
Aligned with the Financial Needs of Our Niche Client Base Asset-based Company Retirement Lending Plan Services Business Banking Equipment Private Wealth SBA Services Finance Services Factoring Lending ° 1990 ) 1995 )}1998 ) 2000 ) 2001 ) 2006 ) 2012 ) 2014 | T T 1 Northeast Kenosha & Wisconsj ss Mad
Slide 14: Geographic Footprint
Geographic Footprint Seattle, WA Appleton, WI Minneapolis, MIN Milwaukee, WI Kenosha, Wi Madison, WI Detroit, Mi Chicago, IL (Cleveland, OH Denver, CO St.Louis, MO. Kansas City, KS, _ Hockessin, DE Charlotte, NC @ Banking Office @ Asset-Based Lending Business Development Office © Equipment Finance B
Slide 15: Leadership Team
Leadership Team Experienced Team Trained at Large, Complex Institutions Corey A. Chambas Edward G. Sloane Jr. David R. Seiler Michael J. Losenegger Barbara McCarty Conley PRESIDENT AND CEO CHIEF FINANCIAL CHIEF OPERATING CHIEF CREDIT OFFICER GENERAL COUNSEL FFICER OFFICER Jodi A. Chandler Mark J. Me
Slide 16: The FBIZ Difference
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Slide 17: Client-Centric with High Touch Service
Client-Centric with High Touch Service Competitive Advantage Driven by Niche Business and Industry Focus CLIENT & COMMUNITY EVENTS = . -—— FIRST BUSINESS PRESENTS ——— Enterprisin ® = pos MANUFACTURING FIRST © Ad, hs omens = USINESS EXPO & CONFERENCE 10 you FIRST. BUSINESS SEMINAR SERIES INDUSTRY PRA
Slide 18: Superior Talent with Business Expertise
Superior Talent with Business Expertise Engaged Employees = Happy Clients AJD Power customer satisfaction survey for retail banks in the Midwest has an average of 79% satisfaction in 2015 and the top performer is at 82%. RIGOROUS HIRING PROCESS FORMAL MENTOR PROGRAM FUN EMPLOYEE OUTINGS ACTIVE COMMU
Slide 19: Efficient Operating Model
Efficient Operating Model Limited Branch, Highly Efficient Business Bank Total Loans / FTE Employees Total Deposits / Locations $10.0 4 $700 4 $600 + $8.0 | $500 + 960 4 z $400 + 2 é 2 g sao | $300 $200 + $2.0 4 $100 + $0.0 - $0 2010 2011 «2012S 2013S 2014S 2015-2016 2010 «2011 « «2012, 2013 2014S 2
Slide 20: First Business Model: Key Financial Targets
eles = i=) 9} FIRST BUSINESS MODEL KEY FINANCIAL TARGETS
Slide 21: First Business Model: Key Financial Targets
First Business Model Key Financial Targets Client-centric plan that we believe will drive: ¢A more diversified income stream eA higher net interest margin e Increased fee income ratio ¢ Improved efficiencies (organizational structure, loan approval process and governance structure) ¢ Improved mix of
Slide 22: Diversified Income Stream
Diversified Income Stream Margin and Fee Revenue Diversification Driven by Suite of Commercial Products & Services Average Gross Loan and Lease Mix Data as of and for the year ended December 31, 2016. Fee Revenue Sources Commercial Lending - CRE NOO Commercial Lending - CRE Commercial fing - C&l Com
Slide 23: Net Interest Margin
Net Interest Margin Annual Trend 4.00% 4 3.75% + 3.50% mm me 3.25% | 3.00% + 2.75% + 2.50% 2010 2011 2012 2013 2014 2015 2016
Slide 24: Fee Income Ratio Annual Trend
Annual Trend 30% 4 25% 4 20% 4 15% 4 10% 4 5% | 0% ~ 2010 2011 2012 2013 2014 2015 2016 ™ Fee Income Ratio Strategic Goal
Slide 25: Efficiency Ratio
Efficiency Ratio Annual Trend 70% 4 68% 4 66% 4 64% 4 62% + 60% | 58% 4 56% 4 54% 4 52% 4 50% - 2010 2011 2012 2013 2014 2015 2016 | Efficiency Ratio — — Strategic Goal Global Market intelligence. Efficiency ratio is a non-GAA\
Slide 26: In-Market Deposits / Total Bank Funding
In-Market Deposits / Total Bank Funding 100% 4 90% 4 80% | 70% + 60% + 50% 4 40% | 30% 4 20% 4 10% 4 0% Annual Trend 2010 2011 2012 2013 2014 2015 2016 ® In-Market Deposits ™ Bank Wholesale Funding — — Strategic Goal
Slide 27: Annualized Net Charge-Offs / Average Loans
Annualized Net Charge-Offs / Average Loans Annual Trend 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Slide 28: Return on Average Assets
Return on Average Assets Annual Trend 1.40% 4 1.20% 4 (0 Te OOo llU EE 0.80% + 0.60% + 0.40% + 0.20% + 0.00% 2010 2011 2012 2013 2014 2015 2016
Slide 29: Return on Average Equity
Return on Average Equity Annual Trend 16% 4 14% 4 12% += = — — ee — rr — a eee ee eee ee 10% 4 8% 4 6% 4 4% 4 2% | 0% 2010 2011 2012 2013 2014 2015 2016
Slide 30: Top Line Revenue Growth
Top Line Revenue Growth Annual Trend 2010 2011 2012 2013 2014 2015 2016 — FBIZ === U.S. Commercial Banks $1B-$3B Source: S&P Global Market intelligence. Quarter
Slide 31: Strategic Initiatives: Growth Opportunities
eles = i=) 9} STRATEGIC INITIATIVES GROWTH OPPORTUNITIES
Slide 32: Strategic Initiatives
Strategic Initiatives Scalable Franchise Positioned for Sustainable Growth Organic growth remains the foundation for the future Opportunity to increase market share in Milwaukee, Northeast and Kansas City regions However, we believe our future success will create opportunities for acquisitions == Sp
Slide 33: Trust / Private Wealth
Trust / Private Wealth Wealth Management Services for Businesses, Executives and High Net Worth Individuals Assets Under Management & Administration Fee Revenue $1,400 5 $6.0 4 $1,200 $1,000 $800 Millions Millions $600 $400 $200 $o . 2011 2012 2013 2014 2015 2016 2011 2012 2013 2014 2015 2016
Slide 34: SBA Lending & Servicing
SBA Lending & Servicing Full Client Acquisition Strategy for Small Businesses © BUILD COMPLETE RELATIONSHIP © EXPAND WITH CHANGING CENT [| FRANCHISE IN-MARKET NEEEDS VALUE DEPOSIT © PRIVATE WEALTH GROWTH IANAGEMENT © FEE INCOME OPPORTUNITIES ry COMPLETE SBA EPS GROWTH ENT RELATIONSHIP bd EARNING ASS
Slide 35: Stock Performance
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Slide 36: Stock Performance: Price Appreciation 2010-2016
Stock Performance Price Appreciation 2010-2016 450% 400% 350% 300% 250% 200% 150% 100% 50% 0% Dec-10 Dec-11 Dec-12 Dec-13 Dec-14 Dec-15 Dec-16 —— FBIZ-US
Slide 37: Stock Performance: Dividend Yield & Dividends Per Share
Stock Performance Dividend Yield & Dividends Per Share 2010-2016 Dividend Yield Dividends Per Share 3.00% $0.60 5 2.50% $0.50 4 2.00% $0.40 ates $0.30 4 1.00% $0.20 4 Sethe $0.10 + 0.00% Dec-10 Dec-11 Dec-12 Dec-13 Dec-14 Dec-15 Dec-16 2010 2011 2012 2013 2014 2015 2016 ———FBIZ-US = —-~SNLU.S. Bank
Slide 38: Thank You for Your Support!
wun" roles THANK YOU FOR YOUR SUPPORT! WE ARE BANKING. FOCUSED.
Slide 39: Appendix: Supplemental Data & Non-GAAP Reconciliations
wn" a eves APPENDIX SUPPLEMENTAL DATA & NON- GAAP RECONCILIATIONS
Slide 40: Efficiency Ratio Non-GAAP Reconciliation
Efficiency Ratio Non-GAAP Reconciliation “Efficiency Ratio” is a non-GAAP measure representing non-interest expense excluding the effects of losses or gains on foreclosed properties, other discrete items unrelated to our primary business activities and amortization of other intangible assets, if any
Slide 41: First Business - We Are Banking. Focused.
First Business" WE ARE BANKING. FOCUSED.
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