800.644.1704 |

REGIONAL FINANCIAL SERVICES MERGERS & ACQUISITIONS UPDATE

SOUTHWEST REGION

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 Colorado, Louisiana, New Mexico, Oklahoma, Texas and Utah Source: S&P Global Market Intelligence

bkdcorporatefinance.com

4049

38

26

40 38

0

20

40

60

'13 '14 '15 '16 '17 '18

1.371.51 1.59 1.63

1.77

2.00

0.0

0.5

1.0

1.5

2.0

2.5

'13 '14 '15 '16 '17 '18

20.01 20.0418.50

19.57

14.25

19.44

0

5

10

15

20

25

'13 '14 '15 '16 '17 '18

12.8%13.7% 13.9%

16.3% 16.4%18.0%

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

20%

'13 '14 '15 '16 '17 '18

4.5%

6.3% 6.0%

10.0%

11.7%11.1%

0%

2%

4%

6%

8%

10%

12%

14%

'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

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

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

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

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 1.6

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

bkdcorporatefinance.com

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

bkdcorporatefinance.com

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

(%)

Comerica Incorporated CMA TX 70,818,000 7,507,000 68.69 -20.9% 159.53 11.54 3.49 1.75 16.49 10.60

Zions Bancorporation ZION UT 68,746,000 7,578,000 40.74 -19.9% 131.09 11.44 2.95 1.35 12.05 11.02

BOK Financial Corporation BOKF OK 38,020,504 4,443,045 73.33 -20.6% 153.09 11.71 2.73 1.13 9.98 11.69

Cullen/Frost Bankers, Inc. CFR TX 31,223,402 3,308,246 87.94 -7.1% 224.42 13.32 3.05 1.52 14.13 10.60

IBERIABANK Corporation IBKC LA 30,826,166 4,049,428 64.28 -17.1% 143.75 14.95 2.55 1.71 13.13 13.14

Texas Capital Bancshares, Inc. TCBI TX 28,257,767 2,500,394 51.09 -42.5% 113.57 9.73 0.00 1.09 11.59 8.85

Prosperity Bancshares, Inc. PB TX 22,693,402 4,052,824 62.30 -11.1% 211.15 14.19 2.63 1.47 8.25 17.86

Hilltop Holdings Inc. HTH TX 13,683,572 1,973,893 17.83 -29.6% 104.86 15.92 1.57 0.86 6.03 14.43

International Bancshares Corp. IBOC TX 11,845,501 1,877,744 34.40 -13.4% 144.34 11.32 2.44 1.72 10.85 15.85

Independent Bank Group, Inc. IBTX TX 9,849,965 1,606,433 45.77 -32.3% 174.62 11.77 1.22 1.36 8.58 16.31

LegacyTexas Financial Group, Inc. LTXB TX 9,051,142 1,094,367 32.09 -24.0% 180.78 13.83 2.74 2.61 21.75 12.09

First Financial Bankshares, Inc. FFIN TX 7,731,854 1,053,295 57.69 28.1% 475.77 26.34 1.46 2.02 15.31 13.62

BancFirst Corporation BANF OK 7,574,258 902,789 49.90 -2.4% 207.41 14.81 2.40 1.72 14.60 11.92

Southside Bancshares, Inc. SBSI TX 6,105,354 752,506 31.75 -5.7% 209.69 16.37 3.78 1.31 10.69 12.33

National Bank Holdings Corp. NBHC CO 5,676,666 695,006 30.87 -4.8% 174.23 29.68 2.20 1.23 10.10 12.24

Average -14.9% 187.22 15.13 2.35 1.52 12.24 12.84

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

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

8bkdcorporatefinance.com