midwest fs m&a update 2018 - bkd · strategic options analysis • mergers & acquisitions...
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REGIONAL FINANCIAL SERVICES MERGERS & ACQUISITIONS UPDATE
MIDWEST REGION
2018
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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 Illinois, Indiana, Iowa, Kansas, Kentucky, Michigan, Minnesota, Missouri, Nebraska, North Dakota, Ohio, South Dakota and Wisconsin Source: S&P Global Market Intelligence
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76
109 105 11088
118
0
50
100
150
'13 '14 '15 '16 '17 '18
1.281.40 1.36 1.30
1.601.72
0.0
0.2
0.4
0.6
0.8
1.0
1.2
1.4
1.6
1.8
2.0
'13 '14 '15 '16 '17 '18
17.1219.56
17.3318.44 18.27 18.92
0
5
10
15
20
25
30
'13 '14 '15 '16 '17 '18
11.0%
12.6%13.8% 13.6%
15.1%16.3%
0%
2%
4%
6%
8%
10%
12%
14%
16%
18%
'13 '14 '15 '16 '17 '18
3.5%
4.9%4.4% 4.3%
8.3%
9.3%
0%
1%
2%
3%
4%
5%
6%
7%
8%
9%
10%
'13 '14 '15 '16 '17 '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
19
.59
16
.26
21
.59
20
.35
18
.72
19
.50 21
.50
21
.03
20
.21
19
.36 2
2.2
50
5
10
15
20
25
'08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '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
6
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 '18
142
110
176
145
217 221
280 274
238254 261
0
50
100
150
200
250
300
'08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '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
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1.1
8 1.3
9
1.3
6
1.2
8
1.5
4 1.6
5
1.6
6
1.6
5
1.9
3
1.7
6
2.1
4
2.2
2
0.00
0.50
1.00
1.50
2.00
2.50
'13 '14 '15 '16 '17 '18
Less than $1B Greater than $1B
20
.17
21
.47
21
.00
19
.66
18
.47 2
1.6
2
16
.29
21
.62
21
.20
22
.20
22
.14 24
.72
0.00
5.00
10.00
15.00
20.00
25.00
30.00
'13 '14 '15 '16 '17 '18
Less than $1B Greater than $1B
0.7
7
1.1
1
0.8
8
0.9
4
1.2
0 1.4
1
1.2
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
4
1.8
8
0.00
0.20
0.40
0.60
0.80
1.00
1.20
1.40
1.60
1.80
2.00
'13 '14 '15 '16 '17 '18
Negative ROAA ROAA of 0.0% to 0.99%
ROAA Greater than 1.0%
22
.41 24
.79
24
.06
23
.72
23
.57 2
6.9
6
11
.65
12
.20
14
.05
11
.05
13
.30
13
.86
0.00
5.00
10.00
15.00
20.00
25.00
30.00
'13 '14 '15 '16 '17 '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
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5.79%
3.12%
3.58%3.26%
2.52%2.67%
3.63%
2.79%
4.47% 4.58%4.79%
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 '18
62 76 81 82 95 77 80 84 56 42 50
196
248
197
413389
288
424
269
121
102
186
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 '18
Bra
nch
es
Sold
Tran
sact
ion
s
REGIONAL PUBLICLY TRADED BANKING COMPANIES
6
NATIONAL FAILED BANK STATISTICS
Source: S&P Global Market Intelligence
Source: Federal Deposit Insurance Corporation
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Name Ticker State Total Assets
($000)
Total Equity ($000)
Stock Price 12/31/2018
Price Change
YTD
Price to Tangible
Book
Price to LTM
Earnings
Dividend Yield
Return on Assets (%)
Return on Equity (%)
Equity/ Assets
(%)
U.S. Bancorp USB MN 467,374,000 51,657,000 45.70 -14.7% 216.67 11.40 3.24 1.61 14.50 11.05
Fifth Third Bancorp FITB OH 146,069,000 16,250,000 23.53 -22.4% 129.59 7.71 3.74 1.26 11.51 11.12
KeyCorp KEY OH 139,613,000 15,596,000 14.78 -26.7% 140.19 10.26 4.60 1.38 12.58 11.17
Northern Trust Corporation NTRS IL 132,212,500 10,508,300 83.59 -16.3% 213.57 13.16 2.63 1.35 15.92 7.95
Huntington Bancshares Inc. HBAN OH 108,781,000 11,102,000 11.92 -18.1% 170.99 9.31 4.70 1.26 12.27 10.21
Associated Banc-Corp ASB WI 33,647,859 3,780,888 19.79 -22.1% 145.09 11.71 3.44 1.08 9.50 11.24
Wintrust Financial Corporation WTFC IL 31,241,521 3,267,570 66.49 -19.3% 150.55 11.73 1.14 1.06 9.96 10.46
Commerce Bancshares, Inc. CBSH MO 25,463,842 2,937,149 56.37 6.0% 250.15 15.50 1.67 1.79 15.64 11.53
TCF Financial Corporation TCF MN 23,699,612 2,556,260 19.49 -4.9% 150.42 10.77 3.08 1.52 14.00 10.79
UMB Financial Corporation UMBF MO 23,351,119 2,228,470 60.97 -15.2% 151.48 10.77 1.97 0.47 4.61 9.54
Chemical Financial Corporation CHFC MI 21,498,341 2,836,260 36.61 -31.5% 161.01 11.96 3.71 1.39 10.44 13.19
MB Financial, Inc. MBFI IL 20,207,026 3,034,848 39.63 -11.0% 193.87 11.76 2.42 1.54 10.18 15.02
Old National Bancorp ONB IN 19,728,435 2,689,570 15.40 -11.7% 173.83 19.01 3.38 1.01 7.59 13.63
Flagstar Bancorp, Inc. FBC MI 18,531,000 1,570,000 26.40 -29.4% 105.06 17.72 0.00 1.17 13.95 8.47
First Midwest Bancorp, Inc. FMBI IL 15,505,649 2,054,998 19.81 -17.5% 175.03 17.08 2.42 1.07 8.22 13.25
Average -17.0% 168.50 12.66 2.81 1.26 11.39 11.24
25
140
157
92
51
2418
8 5 8
00
20
40
60
80
100
120
140
160
180
'08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18
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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.
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years of combined experience helping company owners plan for and execute
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improve financial and operational flexibility, BKDCF can help you to develop a
specific course of action for achieving your desired results.
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FINANCIAL SERVICES CONTACT
7
Wyatt JenkinsVice PresidentSpringfield, [email protected]
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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.
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