Trusted Advisors to Financial Institutions

Trusted Advisors to Financial Institutions

About Our Firm 1 Investment Banking 2 Strategic Consulting 3 ALM/IRR Management 4 Profitability Analysis 5 5 Loan Pricing Analytics 6 Technology Solutions 7 The Austin Team 8 Austin Associates, LLC 7205 W. Central Ave. Toledo, Ohio 43617 419.841.8521 www.austinassociates.com

professional excellence Austin Associates is dedicated to building client relationships that create value, maximize business opportunities and deliver measurable results. ustin Associates has been serving financial institutions from around the country for more than five decades. Our firm provides specialized consulting services in Investment Banking, Strategic Consulting, Asset/Liability Management, Interest Rate Risk Management, Profitability Analysis, and Technology Solutions. Austin Associates offers unparalleled service excellence to financial institutions throughout the U.S. As the financial services industry continues to evolve in many anticipated and unanticipated ways, Austin Associates knowledgeable and experienced professionals continue to develop creative solutions to the unique challenges bank executives and directors confront each day. We are committed to be trusted advisors to financial institutions. Our commitment to professional excellence, integrity and confidentiality is the foundation for our firm s practice areas and for our success. Our professional analysis and critical insights support Boards of Directors and community bank executives charged with managing and delivering financial services on behalf of shareholders, customers, regulators and employees. 1

Investment Banking Acquisitions are a viable option to meet growth and earnings objectives for today s successful community bank. Representing both buyers and sellers, Austin Associates provides strategic option assessments, stock valuation services, acquisition pricing, structure guidance, due diligence assistance, contract negotiations and ongoing advice through the closing of a transaction. According to SNL Securities, Austin Associates has consistently ranked nationally among the top 10 M&A advisors. Having a trusted advisor is crucial for the success of a merger or acquisition. Austin Associates has been advising community bank buyers and sellers for more than five decades. Our familiarity with capital markets and instruments provide clients with realistic strategies for attracting public and private capital resources to support growth opportunities and to meet ongoing regulatory expectations. Capital planning is an essential action item when evaluating the financial impact of acquisitions, expansion options and other strategic alternatives. Certain services are provided through Investment Bank Services, a registered broker-dealer. We have worked with Austin Associates for almost 20 years, including four acquisitions and various other strategic planning, risk management and technology initiatives. They bring levels of expertise that make them an invaluable partner in helping us to achieve our strategic objectives. Investment Banking Services Evaluating Strategic Alternatives Buy-Side and Sell-Side Transaction Advisory Services Stock Valuations Fairness Opinions Bruce Gerlach, President and Chief Executive Officer Inter-Mountain Bancorp, Inc. Bozeman, Montana Branch Acquisition and Divestiture Advisory Services Private Placements for Debt and Equity Evaluations of Unsolicited Offers Due Diligence Assistance 2

Strategic Consulting Austin Associates provides strategic advisory services to assist community banks anticipate and respond to dynamic trends and challenges affecting their institutions. Austin Associates strategic consulting practice area provides customized services related to strategic planning, expansion planning, capital stress testing, regulatory consulting and preparing for examinations. Our planning facilitation services enable management teams and directors to focus on identifying strategic objectives, profit plan targets, evaluating short- and long-term capital needs and determining value creation strategies. Austin Associates stock valuation services are provided for a variety of purposes including ESOPs, stock purchases, stock option grants, and general corporate purposes. Our capital planning and stress testing assess the capital needs based on multiple performance scenarios and regulatory capital requirements. Austin did an exemplary job of facilitating our annual off-site strategic planning session. They brought industry experience and expertise, along with meaningful data analysis and best practices that allowed for meaningful dialogue and further definition of a clear path for our organization. Mike Berryhill, Chairman, President and Chief Executive Officer Fort Morgan Federal Bank, Fort Morgan, Colorado Strategic Consulting Services Strategic Plan Development Facilitation of Planning Meetings Management Studies Board Governance and Director Assessments Branch Expansion Compensation Consulting Regulatory Consulting Stock Valuations Capital Planning 3

ALM/IRR management Austin s team of professionals delivers a depth of industry knowledge based upon solid experience, best practices, and the most comprehensive analyses available. Asset/Liability and Interest Rate Risk Management Austin works with financial institutions of all sizes to provide monthly and quarterly asset/liability management and interest rate risk reporting. We provide third party reviews in IRR and liquidity risk management. We collaborate with chief financial officers and senior management teams on timely and accurate reports designed for Asset/Liability Committees, executive management, directors, and regulators. Our team assists clients in navigating one of the most highly-regulated and complex industries, providing frontline support to help financial institutions meet and exceed all regulatory requirements. Our examiners appreciate and are impressed with the reporting that Austin Associates provides. Since we began using Austin Associates 12 years ago, we have had no regulatory issues with our Liquidity and Sensitivity (to IRR) components. The breadth of their client base keeps them informed on regulatory hot topics, which is beneficial to us at exam time. John Castle, Chairman and Chief Executive Officer Southern Michigan Bank & Trust, Coldwater, Michigan ALM and IRR Management Balance Sheet Structuring/Margin Management (ALM) Profits IRR Assumption and Liquidity Stress Tests Deposit Decay Speed and Loan Prepayment Analytics ALM Model Validation Liquidity Risk Review IRR Backtesting ALM Model Consulting 4

profitability analysis We serve community banks that represent a wide range of business models, asset sizes and profitability levels. Profitability Analysis Services As an accessible resource for clients, we provide ongoing communication and systematic reports that include comprehensive analyses on recommended budgets and profitability improvements by focusing on markets, customers and product lines. We help our clients to formulate strategies that achieve profitability goals and objectives. Our specialized profitability consulting utilizes account-level data management software. We prepare cost allocation assumptions for clients that are integrated with our proprietary funds transfer pricing model to generate profitability measures by line of business, product, department, branch, officer and customer. Profitability Analysis Account Level Data Management Funds Transfer Pricing Modeling Cost Allocation Consulting Profitability Reporting by Line of Business, Department, Branch and Officer Customer Profitability Reporting Custom Marketing Reports On-site Consulting Financial Management Profitability Services Budgeting and Financial Forecasts Custom Peer Group Reports Integration of Profitability Data with MCIF Systems Consulting CFO Retreat Facilitation and Presentations Financial Management Software Loan Pricing Models Deposit Pricing Models Comprehensive Budgeting Package 5

loan pricing analytics Managing commercial loan portfolios is a key strategy for improving bank profitability and pricing. Risk is one of the most significant challenges facing bankers today. LoanPricingPRO is a valuable software program developed by Austin Associates for financial institutions that can ensure a significant advantage in today s competitive business environment. LoanPricingPRO provides lenders with competitive loan pricing analytics, as well as information highlighting the value of customer relationships. LoanPricingPRO is fast, accurate and easy to use. And, because you have full control over the system s configuration, your team will have 100 percent confidence in the results. In just minutes, lenders can model new or existing relationships, obtain profitability-enhancing recommendations, and present the best, most competitive loan package. LoanPricingPRO, when coupled with Austin s Profitability System, gives you the greatest understanding of your institution s financial performance and allows you to compete more aggressively by setting obtainable ROE targets. LoanPricingPRO gives our lenders the flexibility they need to price loans in the context of the entire customer relationship. We could not be happier with the model. Raj Mehra, Chief Financial Officer Middleburg Bank, Middleburg, Virginia LoanPricingPRO has shown our lenders the value of the entire relationship and has given them what they need to compete in today s lending environment. Klint D. Manz, Assistant Vice President First Federal Bank, Defiance, Ohio LoanPricingPRO Advantages Fast, Accurate and Easy-to-Use Integrates with Core Loan and Deposit Data Analyzes Risk-Based Pricing Flexible Configuration Choices Consistent Loan Portfolio Information by Product, Customer and Lender For more information, go to loanpricingpro.com 6

TECHNOLOGY SOLUTIONS Technology decisions are paramount in that they drive an organization to remain current in their data management systems, require adherence to contract timelines and capital improvement budgets, and employ safeguards for cybersecurity. The Technology Solutions Division at Austin Associates provides assistance to financial institutions that are evaluating new processing platforms or renewing existing service contracts. Our proven process for vendor evaluation considers bank strategy and objectives, as well as product and service requirements. Clients are confident that we negotiate the best pricing for proposed services. Considerable attention is given to business issues as they relate to contracts negotiated. Austin s Technology Solutions Division is impressive in that they share valuable insight specific to community banking. James Brown, President and Chief Executive Officer Bank of Bennington, Bennington, Vermont Technology Solutions Bank Technology Consulting Core Vendor Search and Selection Technology Cost Analysis In-House vs. Outsourced Processing Contract Renewal Merger Assistance Conversion Management Assistance 7

the austin team Front Row (LtoR): Michael Williams, Todd Togrul, Craig Mancinotti, Hal Nichols, Rick Maroney, Paul Simoff, Sheryl Kenczewicz, Kristen Vaughn, Jennifer Heath. Back Row (LtoR): Lisa Cordier, Jeff Morris, Dave Walter, Troy Fleck, Matt Wainscott, Steve Heckard, Tom Hauck, Andy Morgan. Chairman R. Hal Nichols 419.517.1762 hnichols@austinassociates.com Investment Banking and Strategic Consulting Craig J. Mancinotti Managing Director & Principal 419.517.1769 craig.mancinotti@austinassociates.com Richard F. Maroney, Jr. Managing Director & Principal 419.517.1766 rmaroney@austinassociates.com Paul L. Simoff Principal 419.517.1771 psimoff@austinassociates.com Troy W. Fleck Principal 419.214.0118 tfleck@austinassociates.com Michael M. Moran Senior Consultant 517.749.3914 mmoran@austinassociates.com 8

the austin team continued Asset Liability Management and Interest Rate Risk Management Thomas C. Hauck Managing Director & Principal 419.517.1770 thauck@austinassociates.com Todd A. Togrul Managing Director & Principal 419.517.1776 ttogrul@austinassociates.com Robert J. Morgan Senior Consultant 419.283.4960 rmorgan@austinassociates.com Profitability Analysis and LoanPricingPRO Jeffrey L. Morris Managing Director & Principal 419.517.1775 jmorris@austinassociates.com Andrew E. Morgan Managing Director & Principal 419.517.1777 amorgan@austinassociates.com Technology Solutions Stephen D. Heckard Managing Director 219.246.2300 sheckard@austinassociates.com For additional information on partners and professionals, please go to the firm s website: www.austinassociates.com 9

Austin Associates, LLC 7205 W. Central Ave. Toledo, Ohio 43617 419.841.8521 www.austinassociates.com