Forward-Looking Statements
When used in this Current Report on Form 8-K and in other
reports filed with or furnished to the Securities and Exchange
Commission (the SEC), in press releases or other public stockholder
communications, or in oral statements made with the approval of an
authorized executive officer, the words or phrases believe, will,
should, will likely result, are expected to, will continue is
anticipated, estimate, project, plans, or similar expressions are
intended to identify forward-looking statements within the meaning
of the Private Securities Litigation Reform Act of 1995. You are
cautioned not to place undue reliance on any forward-looking
statements, which speak only as of the date made. These statements
may relate to our future financial performance, strategic plans or
objectives, revenues or earnings projections, or other financial
items. By their nature, these statements are subject to numerous
uncertainties that could cause actual results to differ materially
from those anticipated in the statements.
Important factors that could cause actual results to differ
materially from the results anticipated or projected include, but
are not limited to, the following: (1) expected revenues, cost
savings, synergies and other benefits from the Taylor Capital
merger and our other merger and acquisition activities might not be
realized within the anticipated time frames or at all; (2) the
credit risks of lending activities, including changes in the level
and direction of loan delinquencies and write-offs and changes in
estimates of the adequacy of the allowance for loan and lease
losses, which could necessitate additional provisions for loan
losses, resulting both from loans we originate and loans we acquire
from other financial institutions; (3) results of examinations by
the Office of Comptroller of Currency, the Federal Reserve Board,
the Consumer Financial Protection Bureau and other regulatory
authorities, including the possibility that any such regulatory
authority may, among other things, require us to increase our
allowance for loan and lease losses or write-down assets; (4)
competitive pressures among depository institutions; (5) interest
rate movements and their impact on customer behavior, net interest
margin and the value of our mortgage servicing rights; (6) the
possibility that our mortgage banking business may increase
volatility in our revenues and earnings and the possibility that
the profitability of our mortgage banking business could be
significantly reduced if we are unable to originate and sell
mortgage loans at profitable margins or if changes in interest
rates negatively impact the value of our mortgage servicing rights;
(7) the impact of repricing and competitors pricing initiatives on
loan and deposit products; (8) fluctuations in real estate values;
(9) the ability to adapt successfully to technological changes to
meet customers needs and developments in the market-place; (10) the
possibility that our security measures might not be sufficient to
mitigate the risk of a cyber attack or cyber theft, and that our
security measures might not protect us from systems failures or
interruptions; (11) our ability to realize the residual values of
our direct finance, leveraged, and operating leases; (12) our
ability to access cost-effective funding; (13) changes in financial
markets; (14) changes in economic conditions in general and in the
Chicago metropolitan area in particular; (15) the costs, effects
and outcomes of litigation; (16) new legislation or regulatory
changes, including but not limited to the Dodd-Frank Wall Street
Reform and Consumer Protection Act of 2010 (the Dodd-Frank Act) and
regulations adopted thereunder, changes in capital requirements
pursuant to the Dodd-Frank Act, other governmental initiatives
affecting the financial services industry and changes in federal
and/or state tax laws or interpretations thereof by taxing
authorities; (17) changes in accounting principles, policies or
guidelines; (18) our future acquisitions of other depository
institutions or lines of business; and (19) future goodwill
impairment due to changes in our business, changes in market
conditions, or other factors.
MB Financial does not undertake any obligation to update any
forward-looking statement to reflect circumstances or events that
occur after the date on which the forward-looking statement is
made.
Set forth below are investor presentation materials.
November 2015 NASDAQ: MBFI Investor Presentation
Forward-Looking Statements 1 When used in this presentation and
in reports filed with or furnished to the Securities and Exchange
Commission, in press releases or other public stockholder
communications, or in oral statements made with the approval of an
authorized executive officer, the words or phrases believe, will,
should, will likely result, are expected to, will continue is
anticipated, estimate, project, plans, or similar expressions are
intended to identify forward-looking statements within the meaning
of the Private Securities Litigation Reform Act of 1995. You are
cautioned not to place undue reliance on any forward-looking
statements, which speak only as of the date made. These statements
may relate to our future financial performance, strategic plans or
objectives, revenues or earnings projections, or other financial
items. By their nature, these statements are subject to numerous
uncertainties that could cause actual results to differ materially
from those anticipated in the statements. Important factors that
could cause actual results to differ materially from the results
anticipated or projected include, but are not limited to, the
following: (1) expected revenues, cost savings, synergies and other
benefits from the Taylor Capital merger and our other merger and
acquisition activities might not be realized within the anticipated
time frames or at all; (2) the credit risks of lending activities,
including changes in the level and direction of loan delinquencies
and write-offs and changes in estimates of the adequacy of the
allowance for loan and lease losses, which could necessitate
additional provisions for loan losses, resulting both from loans we
originate and loans we acquire from other financial institutions;
(3) results of examinations by the Office of Comptroller of
Currency, the Federal Reserve Board, the Consumer Financial
Protection Bureau and other regulatory authorities, including the
possibility that any such regulatory authority may, among other
things, require us to increase our allowance for loan and lease
losses or write-down assets; (4) competitive pressures among
depository institutions; (5) interest rate movements and their
impact on customer behavior, net interest margin and the value of
our mortgage servicing rights; (6) the possibility that our
mortgage banking business may increase volatility in our revenues
and earnings and the possibility that the profitability of our
mortgage banking business could be significantly reduced if we are
unable to originate and sell mortgage loans at profitable margins
or if changes in interest rates negatively impact the value of our
mortgage servicing rights; (7) the impact of repricing and
competitors pricing initiatives on loan and deposit products; (8)
fluctuations in real estate values; (9) the ability to adapt
successfully to technological changes to meet customers needs and
developments in the market-place; (10) the possibility that our
security measures might not be sufficient to mitigate the risk of a
cyber attack or cyber theft, and that our security measures might
not protect us from systems failures or interruptions; (11) our
ability to realize the residual values of our direct finance,
leveraged, and operating leases; (12) our ability to access
cost-effective funding; (13) changes in financial markets; (14)
changes in economic conditions in general and in the Chicago
metropolitan area in particular; (15) the costs, effects and
outcomes of litigation; (16) new legislation or regulatory changes,
including but not limited to the Dodd-Frank Wall Street Reform and
Consumer Protection Act of 2010 (the Dodd-Frank Act) and
regulations adopted thereunder, changes in capital requirements
pursuant to the Dodd-Frank Act, other governmental initiatives
affecting the financial services industry and changes in federal
and/or state tax laws or interpretations thereof by taxing
authorities; (17) changes in accounting principles, policies or
guidelines; (18) our future acquisitions of other depository
institutions or lines of business; and (19) future goodwill
impairment due to changes in our business, changes in market
conditions, or other factors. We do not undertake any obligation to
update any forward-looking statement to reflect circumstances or
events that occur after the date on which the forward-looking
statement is made.
Balance Sheet Position: Attractive loan portfolio mix (percent
of total loans, excluding held for sale as of 9/30/2015): 55%
commercial and industrial loans and lease loans 31% commercial and
construction real estate Non-interest bearing deposits were 39% of
total deposits as of 9/30/2015; this ratio is in the top quartile
of peer banks. Shareholder focused Common (NASDAQ: MBFI) and 8%
Series A Preferred Stock (NASDAQ: MBFIP) $2.4 billion market
capitalization as of November 2, 2015. MBFI common shares are
included in several major indexes.1 Approximately 74 million common
shares outstanding with large institutional and mutual fund
ownership. In October 2015 we completed the previously announced
repurchase program of up to $50 million worth of common shares.
Increased quarterly common dividend to $0.17 per share in 2Q 2015.2
Company Highlights 2 1MBFI common shares are included in the
RUSSELL 2000 Index, the S&P 600 SMALLCAP Index, the NASDAQ BANK
Index and the MSCI Global Sustainability Index among other indexes
2Equates to an approximate annual dividend yield of 2.1% based on a
stock price of $33.05/share as of November 2, 2015 $0.00 $0.04
$0.08 $0.12 $0.16 $0.20 Quarterly Dividend per Common Share
Company Strategy Build a bank with lower risk and consistently
better returns than peers Develop balance sheet with superior
profitability and lower risk Add great customers, whether they
borrow or not Maintain low credit risk and low credit costs Attract
low-cost and stable funding Maintain strong liquidity and capital
Focus intensely on fee income Fees need to be high quality,
recurring, and profitable Not an easy task; requires meaningful
investment Emphasize leasing, capital markets, international
banking, cards, commercial deposit fees, treasury management, trust
and asset management, and mortgage Grow select fee businesses
nationally Invest in human talent Recruit and retain the best staff
very low turnover rate of A employees Maintain strong training
programs large commercial banker training program Be the employer
of choice Make opportunistic acquisitions Skilled and disciplined
acquirer Long track record of successful integrations 3 Operating
return on average assets 1.10%1 Non-interest bearing DDA make up
39% of total deposits Top Quartile Performance Low cost of funding
of 23 bps for 3Q YTD 2015 Top Quartile Performance Solid capital
ratios Diversified loan portfolio Strong investment portfolio
returns Top Quartile Performance Core non-interest income at 41% of
total revenue for 3Q YTD 2015 Top Quartile Performance Double digit
growth in key fee initiatives in each of the last four years One of
12 entities awarded Presidents E Award2 for export services in
2015, presented by U.S. Commerce Secretary Penny Pritzker MB
recognized by the Chicago Tribune, 4th year MB has met the
standards as one of Chicagolands best employers Ranked in the Top
50 of The Detroit Free Press Top Work Places for midsized companies
in 2013 and 2014 Taylor Capital completed 2014 JPMorgan Chase
Illinois Guardianship & Trust Business completed August 2015
MSA Holdings announced October 2015 1Annualized operating return on
average assets is computed by dividing annualized operating
earnings by average total assets. Operating earnings is defined as
net income as reported less non-core items, net of tax. Amount is
year-to-date September 2015 annualized. 2 According to the U.S.
Department of Commerce, the Presidents E Award is the highest
recognition any U.S. entity can receive for making a significant
contribution to the expansion of U.S. exports.
Banking Segment 4 Retail Banking Provides a significant portion
of funding for the banking segment; 49% of deposits and 12% of
loans High percentage of low-cost funding Low reliance on CDs
Focuses on business banking customers and individuals that live or
work near our branches Key fee initiatives include card services
and treasury management services for business banking customers
Wealth Management Provides customized private banking, trust,
investment management and retirement plan services through a team
of experienced advisors Specializes in serving business owners,
high-net worth families, foundations, and endowments Focused on
asset management, low-cost deposits, and private banking services
Manages more than $3.7 billion of client assets through trust
department and asset management subsidiary (Cedar Hill Associates,
LLC) Commercial Banking Lending, depository, capital markets and
international banking services to middle-market companies with
revenues ranging from $10 to $500 million Relationship banking
culture; calling officers have 20+ years average experience
Commercial and industrial and commercial real estate loan portfolio
terms generally range from 1 to 5 years, with total relationship
carrying amount typically $25 million or less; approximately 77%
have a floating rate of interest indexed to LIBOR or Prime Note:
Business line financial data as of September 30, 2015 Lease Banking
Lease Banking...
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