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REGIONAL FINANCIAL SERVICES MERGERS & ACQUISITIONS UPDATE
SOUTHWEST 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 Colorado, Louisiana, New Mexico, Oklahoma, Texas and Utah Source: S&P Global Market Intelligence
bkdcorporatefinance.com
4049
38
26
40
2925
0
20
40
60
'13 '14 '15 '16 '17 YTD Sep '17 YTD Sep '18
1.371.51 1.59 1.63
1.78
2.06
0.0
0.5
1.0
1.5
2.0
2.5
'13 '14 '15 '16 '17 YTD Sep'18
20.01 19.9718.50
19.57
14.53
19.73
0
5
10
15
20
25
'13 '14 '15 '16 '17 YTD Sep'18
12.8%13.7% 13.9%
16.3% 16.7%
18.5%
0%
2%
4%
6%
8%
10%
12%
14%
16%
18%
20%
'13 '14 '15 '16 '17 YTD Sep'18
4.5%
6.3% 6.0%
10.0%
11.9% 11.9%
0%
2%
4%
6%
8%
10%
12%
14%
'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
(%)
Comerica Incorporated CMA TX 71,448,000 7,786,000 90.20 3.9% 207.29 16.86 2.66 1.79 16.27 10.90
Zions Bancorporation ZION UT 66,731,000 7,553,000 50.15 -1.3% 162.23 15.48 2.39 1.34 11.75 11.32
BOK Financial Corporation BOKF OK 33,289,864 3,625,760 97.28 5.3% 207.22 16.83 2.06 1.40 13.01 10.89
Cullen/Frost Bankers, Inc. CFR TX 31,223,402 3,308,246 104.44 10.3% 266.35 16.76 2.57 1.52 14.13 10.60
IBERIABANK Corporation IBKC LA 30,118,387 3,942,361 81.35 5.0% 185.94 26.58 1.92 1.35 10.31 13.09
Texas Capital Bancshares, Inc. TCBI TX 27,127,107 2,426,442 82.65 -7.0% 190.60 17.51 0.00 1.32 14.29 8.94
Prosperity Bancshares, Inc. PB TX 22,612,583 3,995,697 69.35 -1.0% 242.31 16.55 2.08 1.46 8.30 17.67
Hilltop Holdings Inc. HTH TX 13,764,536 1,964,158 20.17 -20.4% 117.24 19.21 1.39 1.07 7.67 14.27
International Bancshares Corp. IBOC TX 11,988,995 1,898,499 45.00 13.4% 186.30 15.73 1.87 1.83 11.73 15.84
Independent Bank Group, Inc. IBTX TX 9,891,464 1,567,184 66.30 -1.9% 262.81 18.62 0.84 1.42 9.19 15.84
LegacyTexas Financial Group, Inc. LTXB TX 9,082,792 1,039,599 42.60 0.9% 250.20 20.88 1.50 1.87 16.76 11.45
BancFirst Corporation BANF OK 7,602,438 884,801 59.95 17.2% 256.71 19.59 2.00 1.72 14.98 11.64
First Financial Bankshares, Inc. FFIN TX 7,571,231 995,739 59.10 31.2% 493.47 28.97 1.42 2.11 16.13 13.15
Southside Bancshares, Inc. SBSI TX 6,105,354 752,506 34.80 3.3% 230.24 18.81 3.45 1.31 10.69 12.33
National Bank Holdings Corp. NBHC CO 5,585,104 673,065 37.65 16.1% 217.59 52.29 1.49 1.31 10.88 12.05
Average 5.0% 231.77 21.38 1.84 1.52 12.41 12.66
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
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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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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
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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
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Wyatt JenkinsVice PresidentSpringfield, [email protected]
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