Bank Directors Seminar, Coeur d'Alene, ID

M&A Activity by Region

ƒ The Midwest has been the most active region in the country since the beginning of 2018 with 46% of the deal activity

M&A Transactions Announced Since 1/1/2018

Region Total M&A % of Total Midwest 84 45.7% Southeast 39 21.2% Southwest 24 13.0% West 15 8.2% Mid Atlantic 15 8.2% Northeast 7 3.8% Total 184

7

15

15

84

Most Active States

Rank

State # of Deals

1 2 3 4 5 6 7 8 9

IL

16 14 12 11

TX FL MN WI KY GA MO CA

39

24

8 8 8 8 8 8

10

IA

= number of deals in region #

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Source: S&P Global Market Intelligence, data as of 8/31/2018 Note: Excludes government assisted M&A deals

Current M&A Trends

ƒ Deal activity remains robust despite the lessening number of banks

ƒ Publicly traded acquirors taking advantage of their strong currency - willing to pay a significant premium for the right deal, but cautious about overpaying

Acquiror landscape continues to evolve

ƒ

ƒ Serial acquirors have out-grow smaller transactions (i.e. only looking for acquisitions of $1B or more) or are on the sidelines (integrating / digesting other deals, or focused on internal priorities)

ƒ Many logical mid-sized acquirors turn into sellers as scarcity and scale drive premium M&A multiples

ƒ Increased focus on the core deposit franchise - increasingly relevant given the rising rate environment

ƒ Large bank M&A is returning to the markets (regulatory relief, SIFI threshold, etc..)

ƒ Market reaction to large bank M&A has been mixed (is 1+1 > 2?)

ƒ Money center banks have been selling or consolidating branches in rural markets

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