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REGIONAL FINANCIAL SERVICES MERGERS & ACQUISITIONS UPDATE

MID-ATLANTIC REGION

Q3 2018

bkdcorporatefinance.com

REGIONAL M&A TRANSACTION STATISTICS

2

Number of Regional Whole Bank & Thrift Transactions

Regional Average Deal Value to Tangible Book

Regional Average Deal Value to LTM Earnings

Regional Average Deal Value to Assets Regional Average Tangible Book Premium to Core Deposits

Note: Includes all whole bank transactions in Delaware, Washington, D.C., Maryland, New Jersey, New York, Pennsylvania and Puerto RicoSource: S&P Global Market Intelligence

bkdcorporatefinance.com

19

2732

15

27

2017

0

10

20

30

40

'13 '14 '15 '16 '17 YTD Sep '17 YTD Sep '18

1.12

1.47 1.44

1.271.39

1.53

0.0

0.2

0.4

0.6

0.8

1.0

1.2

1.4

1.6

1.8

'13 '14 '15 '16 '17 YTD Sep'18

23.33 24.25 23.85

20.69

25.2927.32

0

5

10

15

20

25

30

'13 '14 '15 '16 '17 YTD Sep'18

11.0%

14.5% 14.5%

11.0%

14.6% 14.6%

0%

2%

4%

6%

8%

10%

12%

14%

16%

'13 '14 '15 '16 '17 YTD Sep'18

1.4%

7.1% 7.5%

4.0%

6.8%

10.5%

0%

2%

4%

6%

8%

10%

12%

'13 '14 '15 '16 '17 YTD Sep'18

NATIONAL M&A TRANSACTION STATISTICS

3

National Average Deal Value to Tangible Book

National Average Deal Value to LTM Earnings

Number of National Whole Bank & Thrift Transactions

BKD CORPORATE

FINANCE SERVICES

• Company Sales & Divestitures • Management Buyouts

• Debt & Equity Recapitalizations

• Succession Planning & Strategic Options Analysis

• Mergers & Acquisitions • Affiliations

Source: S&P Global Market Intelligence

bkdcorporatefinance.com

144

110

186

148

219 225

284 275

239256

182199

0

50

100

150

200

250

300

'08 '09 '10 '11 '12 '13 '14 '15 '16 '17 YTD Sep'17

YTD Sep'18

1.7

1

1.1

6

1.1

8

1.1

0 1.2

0

1.2

5 1.4

3

1.4

4

1.3

8

1.6

7

1.7

3

0.0

0.2

0.4

0.6

0.8

1.0

1.2

1.4

1.6

1.8

2.0

'08 '09 '10 '11 '12 '13 '14 '15 '16 '17 YTDSep'18

19

.59

16

.26

21

.59

20

.35

18

.72

19

.50 21

.51

21

.05

20

.21

19

.46

23

.05

0

5

10

15

20

25

'08 '09 '10 '11 '12 '13 '14 '15 '16 '17 YTDSep'18

NATIONAL M&A TRANSACTION STATISTICS BY ASSET SIZE

4

National Average Deal Value to Tangible Book

National Average Deal Value to LTM Earnings

NATIONAL M&A TRANSACTION STATISTICS BY PERFORMANCE

National Average Deal Value to Tangible Book by Performance

National Average Deal Value to LTM Earnings by Performance*

Source: S&P Global Market Intelligence

*Deal value to LTM earnings for negative ROAA transactions are not meaningful and therefore are not presented in this chart

bkdcorporatefinance.com

1.1

8 1.3

9

1.3

6

1.2

8 1.5

4

1.5

9

1.6

6

1.6

5

1.9

3

1.7

6

2.1

4 2.3

5

0.00

0.50

1.00

1.50

2.00

2.50

'13 '14 '15 '16 '17 YTD Sep'18

Less than $1B Greater than $1B

20

.17

21

.49

21

.01

19

.66

18

.57 2

2.5

5

16

.29

21

.62

21

.20

22

.20

22

.16 24

.94

0.00

5.00

10.00

15.00

20.00

25.00

30.00

'13 '14 '15 '16 '17 YTD Sep'18

Less than $1B Greater than $1B

0.7

7

1.1

1

0.8

8

0.9

4 1.1

8

1.0

01.2

7 1.4

2

1.4

2

1.4

2 1.6

4

1.7

6

1.6

1

1.6

8

1.7

2

1.4

8

1.8

5

1.9

6

0.00

0.50

1.00

1.50

2.00

2.50

'13 '14 '15 '16 '17 YTD Sep'18

Negative ROAA ROAA of 0.0% to 0.99%

ROAA Greater than 1.0%

22

.41

24

.92

24

.08

23

.72

23

.57 2

7.8

7

11

.65

12

.37

14

.05

11

.05

13

.42

14

.11

0.00

5.00

10.00

15.00

20.00

25.00

30.00

'13 '14 '15 '16 '17 YTD Sep'18

ROAA of 0.0% to 0.99% ROAA Greater than 1.0%

NATIONAL BRANCH M&A TRANSACTION STATISTICS

5

Number of National Branch Transactions & Branches Sold

National Branch Average Franchise Premium to Deposits

Source: S&P Global Market Intelligence

bkdcorporatefinance.com

62 76 81 82 95 77 80 84 56 42 22 22

196

248

197

413389

288

424

269

121

102

69 115

0

50

100

150

200

250

300

350

400

450

0

10

20

30

40

50

60

70

80

90

100

'08 '09 '10 '11 '12 '13 '14 '15 '16 '17 YTD Sep'17

YTD Sep'18

Bra

nch

es

Sold

Tran

sact

ion

s

5.79%

3.12%

3.58%3.26%

2.52%2.68%

3.63%

2.79%

4.47% 4.58% 4.57%

0.00%

1.00%

2.00%

3.00%

4.00%

5.00%

6.00%

7.00%

'08 '09 '10 '11 '12 '13 '14 '15 '16 '17 YTD Sep'18

REGIONAL PUBLICLY TRADED BANKING COMPANIES

6

NATIONAL FAILED BANK STATISTICS

Source: S&P Global Market Intelligence

Source: Federal Deposit Insurance Corporation

bkdcorporatefinance.com

Name Ticker State Total Assets

($000)

Total Equity ($000)

Stock Price 9/30/2018

Price Change

YTD

Price to Tangible

Book

Price to LTM

Earnings

Dividend Yield

Return on Assets (%)

Return on Equity (%)

Equity/ Assets

(%)

JP Morgan Chase & Co. JPM NY 2,615,183,000 258,956,000 112.84 5.5% 207.13 15.07 2.84 1.29 13.06 9.90

Citigroup Inc. C NY 1,925,165,000 197,863,000 71.74 -3.6% 115.61 NM 2.51 0.96 9.28 10.28

PNC Financial Services Group, Inc. PNC PA 380,080,000 47,102,000 136.19 -5.6% 189.57 11.85 2.79 1.48 11.99 12.39

Bank of New York Mellon Corp. BK NY 349,770,000 41,650,000 50.99 -5.3% 295.80 12.29 2.20 1.34 10.65 11.91

M&T Bank Corporation MTB NY 116,827,637 15,436,085 164.54 -3.8% 244.84 16.95 2.43 1.81 13.53 13.21

New York Community Bancorp, Inc. NYCB NY 51,246,654 6,794,015 10.37 -20.4% 132.07 11.92 6.56 0.84 6.28 13.26

Popular, Inc. BPOP PR 47,919,428 5,244,349 51.25 44.4% 114.44 18.30 1.95 1.18 10.16 10.94

Signature Bank SBNY NY 45,870,710 4,237,997 114.84 -16.3% 154.53 14.61 1.95 1.37 14.83 9.24

F.N.B. Corporation FNB PA 32,617,595 4,524,864 12.72 -8.0% 203.09 15.70 3.77 1.24 8.92 13.87

Sterling Bancorp STL NY 31,261,265 4,438,303 22.00 -10.6% 201.68 20.00 1.27 1.54 10.88 14.20

Valley National Bancorp VLY NJ 30,881,948 3,302,936 11.25 0.3% 193.25 20.09 3.91 0.91 8.41 NA

Investors Bancorp, Inc. ISBC NJ 25,518,495 3,035,221 12.27 -11.6% 122.20 22.72 2.93 0.85 7.05 11.89

Fulton Financial Corporation FULT PA 20,364,810 2,283,014 16.65 -7.0% 170.80 17.53 2.88 1.29 11.57 11.21

Community Bank System, Inc. CBU NY 10,659,567 1,668,345 61.07 13.6% 371.04 16.42 2.49 1.62 10.36 15.65

Customers Bancorp, Inc. CUBI PA 10,617,104 954,812 23.53 -9.5% 106.21 12.13 0.00 0.22 2.54 8.99

Average -2.5% 188.15 16.11 2.70 1.20 9.97 11.93

25

140

157

92

51

2418

8 5 80

0

20

40

60

80

100

120

140

160

180

'08 '09 '10 '11 '12 '13 '14 '15 '16 '17 YTD Sep'18

ABOUT US

Construction &

Engineering

Financial

Services

Health

Care

Manufacturing

&

Distribution

Business

Services

Consumer

Services &

Products

Energy

Technology,

Media &

Telecom

INDUSTRY FOCUS

BKDCF, a wholly owned subsidiary of BKD, LLP, helps companies and stockholders go beyond their numbers by creating value through investment banking solutions that include mergers, acquisitions, sales, recapitalizations, management buyouts and financings.

Founded in 1994, BKDCF is staffed with experienced investment bankers and financial analysts. In addition, the firm draws on the resources of BKD with its network of accountants, auditors, tax professionals, business consultants and industry-specific consultants.

BKDCF is a member of the Financial Industry Regulatory Authority and the Securities Investor Protection Corporation.

The professionals of BKD Corporate Finance, LLC (BKDCF) have more than 200

years of combined experience helping company owners plan for and execute

their growth and exit strategies. From managing the sale of a company to

negotiating the acquisition of a competitor or raising debt and equity capital to

improve financial and operational flexibility, BKDCF can help you to develop a

specific course of action for achieving your desired results.

BKD/BKDCF OfficeBKD Office

FINANCIAL SERVICES CONTACT

7

Wyatt JenkinsVice PresidentSpringfield, MO417.865.8701wjenkins@bkd.com

bkdcorporatefinance.com

BKD SERVICES

Abundant services.

Sheer precision.

BKD, LLP offers a full range of services and industry-focused expertise to provide you with insightful solutions and help you stay a cut above the competition.

FINANCIAL

ASSURANCE• Audit, review & compilations• Benchmarking• Internal audit• Internal control studies• SEC filings• SOX 404 compliance

CONSULTING• Accounting outsourcing• Bankruptcy consulting• Budgeting & financial planning• Cost accounting• Employee benefit plan

structuring & administering• ESOP feasibility analysis• Forecasts & projections

FEDERAL & STATE TAX

PLANNING & COMPLIANCE• Compensation planning• Corporate tax planning• Inventory tax planning• R&D tax credit enhancements• Real estate cost segregation

studies• Restructuring planning• State & local tax planning

FORENSICS & VALUATION

CONSULTING• Bankruptcy services• Business valuations• Fraud prevention• Litigation support

INTERNATIONAL TAX

STRATEGIES• DISC• Expatriate assignment services• Foreign tax credit planning• Global structuring support• Indirect global taxes• Transfer pricing

INVESTMENT & FINANCIAL

PLANNING• Estate & gift planning• Family tax planning• Investment management• Personal wealth planning• Retirement planning

TRANSACTION SERVICES• Federal, state & local tax

diligence• Financial diligence• Operations diligence• Technology diligence

GROWTH & ADVISORY

INVESTMENT BANKING• Mergers & acquisitions• Company sales & divestitures• Debt & equity recapitalizations• Management buyouts• Affiliations• Succession planning• Strategic options analysis

ECONOMIC DEVELOPMENT• Expansion projects• Grants & public incentives

INTERNATIONAL MARKET• Development• Exporting• Direct investment• Licensing• Acquisitions

OPERATIONS MANAGEMENT

PERFORMANCE ENHANCEMENT

ADVICE & KNOW-HOW (PEAK)

METHODOLOGY• Business process improvement• Decision costing• Inventory optimization• Lean manufacturing• Profit improvement

TECHNOLOGY

APPLICATIONS SOFTWARE• Best-Abra• MAS 90, 200 & 500• Microsoft CRM• Microsoft Dynamics AX• Microsoft Dynamics GP

IT SERVICES• IT assessments & planning• IT control reviews• Project management assistance• Security solutions & penetration

testing

STRATEGIC TECHNOLOGY• E-business planning• IT assessments & planning• Systems selection & implementation

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