Industry Observations March 31, Banking Industry

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1 Industry Observations March 31, 2018 Banking Industry

2 Select Banking Public Company Industry Data (USD in millions, except per share data) Price at 03/31/18 Market Data LTM Operating Data Forward Estimates % of 52 Week High Equity Value Total Assets LTM Revenue LTM Earnings CY 2018 Revenue Estimate CY 2018 Earnings Estimate Company Name Ticker Commercial Banks Bank of Hawaii Corporation BOH $ % $3, $17, $ $ $ $ BOK Financial Corporation BOKF $ % $6, $33, $1, $ $1, $ Fifth Third Bancorp FITB $ % $21, $141, $6, $2, $6, $1, First Financial Bankshares, Inc. FFIN $ % $3, $7, $ $ $ $ First Republic Bank FRC $ % $14, $90, $2, $ $3, $ Fulton Financial Corporation FULT $ % $3, $19, $ $ $ $ Hancock Holding Company HBHC $ % $4, $27, $1, $ $1, $ Prosperity Bancshares, Inc. PB $ % $5, $22, $ $ $ $ UMB Financial Corporation UMBF $ % $3, $20, $ $ $1, $ Zions Bancorporation ZION $ % $10, $66, $2, $ $2, $ Investment Banking and Brokerage Evercore Inc. EVR $ % $3, $0.00 $1, $ $1, $ Greenhill & Co., Inc. GHL $ % $ $ $ $26.65 $ $24.66 Morgan Stanley MS $ % $96, $0.00 $39, $6, $40, $8, Piper Jaffray Companies PJC $ % $1, $2, $ $61.94 $ $94.38 Raymond James Financial, Inc. RJF $ % $12, $0.00 $6, $ $7, $ The Goldman Sachs Group, Inc. GS $ % $95, $974, $34, $4, $35, $8, Mortgage Bankers Federal Home Loan Mortgage Corporation FMCC $ % $4, $2,049, $16, $5, $11, $6, Federal National Mortgage Association FNMA $ % $8, $3,345, $25, $2, $0.00 $11, Flagstar Bancorp, Inc. FBC $ % $2, $17, $ $71.00 $ $ Nationstar Mortgage Holdings Inc. NSM $ % $1, $18, $ $30.00 $2, $ Ocwen Financial Corporation OCN $ % $ $8, $1, $ $1, $ Walker & Dunlop, Inc. WD $ % $1, $2, $ $ $ $ Notes: LTM (latest twelve months); Enterprise Value (market capitalization less total cash and short-term investments plus short-term borrowings and total long-term debt); EBITDA (earnings before interest, taxes, depreciation and amortization) Source: Capital IQ The material contained in this publication is meant to provide general information regarding valuation topics. This publication does not constitute investment advice with respect to the securities of any company discussed herein, is not intended to provide information upon which to base an investment decision, and should not be construed as such. Professional advice should be obtained before taking any action based on the information contained herein. Publicly available information utilized in this publication has been obtained from sources deemed to be reliable. Houlihan does not guarantee the accuracy or completeness of the information provided within this publication. The material presented reflects information known to the authors at the time this publication was written and this information is subject to change. Houlihan Capital 2

3 Select Banking Public Company Valuation Metrics As of March 2018 (USD in millions, except per share data) LTM Operating Statistics Multiples Company Name Ticker Return Return Net Net Price/ Commercial Banks Bank of Hawaii Corporation BOH 1.1% 15.4% 1.8% 2.8% 30.3% 21.1x BOK Financial Corporation BOKF 1.1% 10.2% 9.8% 26.4% 22.5% 19.9x Fifth Third Bancorp FITB 1.8% 15.9% 17.7% 68.0% 38.7% 13.3x Fortress Investment Group LLC FFIN 4.3% 26.3% 27.9% N/A 14.4% 33.4x First Republic Bank FRC 0.9% 10.5% 19.0% 12.6% 29.2% 26.4x Fulton Financial Corporation FULT 0.9% 8.1% 7.1% 6.7% 23.5% 21.5x Hancock Holding Company HBHC 0.9% 8.4% 18.9% 22.9% 23.3% 20.9x Prosperity Bancshares, Inc. PB 1.2% 7.3% -1.9% 1.4% 39.1% 19.9x UMB Financial Corporation UMBF 1.0% 9.5% 0.0% 55.9% 27.1% 24.4x Zions Bancorporation ZION 1.0% 9.0% 14.7% 33.6% 25.5% 18.7x Mean 1.4% 12.1% 11.5% 25.6% 27.4% 21.9x Median 1.1% 9.9% 12.2% 22.9% 26.3% 21.0x Investment Banking and Brokerage Evercore Inc. EVR 0.0% 0.0% 9.1% -23.4% 8.2% 21.3x Greenhill & Co., Inc. GHL -5.0% -10.7% -30.2% N/A -11.5% NM Morgan Stanley MS 0.0% 0.0% 7.4% 1.1% 17.4% 14.8x Piper Jaffray Companies PJC -2.9% -7.6% 17.1% N/A -7.1% 20.9x Raymond James Financial, Inc. RJF 0.0% 0.0% 17.2% 32.7% 10.8% 19.4x The Goldman Sachs Group, Inc. GS 0.5% 5.7% 5.5% -42.9% 14.3% 14.6x Mean -1.2% -2.1% 4.3% -8.1% 5.3% 18.2x Median 0.0% 0.0% 8.2% -11.1% 9.5% 19.4x Mortgage Bankers Federal Home Loan Mortgage Corporation FMCC 0.3% 236.2% 2.2% -28.0% 34.6% 0.4x Federal National Mortgage Association FNMA 0.1% 206.5% 2.4% -80.0% 9.7% 0.7x Flagstar Bancorp, Inc. FBC 0.4% 5.1% 14.7% -55.3% 8.0% 15.6x Nationstar Mortgage Holdings Inc. NSM 0.2% 1.8% -26.5% 57.9% 3.3% 36.2x Ocwen Financial Corporation OCN 1.6% -21.4% -13.9% N/A -10.7% NM Walker & Dunlop, Inc. WD 8.1% 29.6% 24.1% 85.4% 30.1% 13.2x Mean 1.8% 76.3% 0.5% -4.0% 12.5% 13.2x Median 0.4% 17.4% 2.3% -28.0% 8.9% 13.2x Notes: LTM (latest twelve months); NTM (next twelve months); EBITDA (earnings before interest, taxes, depreciation and amortization); TEV (total enterprise value) Source: Capital IQ Houlihan Capital 3

4 Banking Public Company LTM Equity Performance 40.00% 30.00% 20.00% 10.00% 0.00% % % % Commercial Banks Mortgage Bankers S&P 500 Investment Banking and Brokerage Dow Jones Industrial Average Note: The indices are derived from the equity performance of the previously listed companies. Source: Capital IQ Houlihan Capital 4

5 Recent M&A Activity in Banking Industry April 1, 2017 to March 31, 2018 (USD in millions) Close Date Target Acquirer Target Company Primary Industry Implied Equity Value 6/23/2017 PrivateBancorp, Inc. Canadian Imperial Bank of Commerce Regional Banks $4, /9/2017 TIAA FSB Holdings, Inc. Teachers Insurance & Annuity Association of Regional Banks $2, /2/2017 Astoria Financial Corporation Sterling Bancorp Thrifts and Mortgage Finance $2, /30/2017 Capital Bank Financial Corp. First Horizon National Corporation Regional Banks $2, /16/2017 BNC Bancorp Pinnacle Financial Partners, Inc. Regional Banks $1, /18/2017 Scottrade Bank TD Bank, N.A. Regional Banks $1, /25/2017 World's Foremost Bank Synovus Bank Regional Banks $1, /31/2017 Sabadell United Bank, N.A. IBERIABANK Regional Banks $1, /21/2017 Cardinal Financial Corporation UBV Holding Company, LLC Regional Banks $ /8/2017 Berkeley Point Financial LLC Newmark & Company Real Estate, Inc. Thrifts and Mortgage Finance $ /26/2017 Stonegate Bank Centennial Bank (Conway, AR) Regional Banks $ /20/2017 CU Bancorp PacWest Bancorp Regional Banks $ /1/2018 Xenith Bankshares, Inc. Union Bankshares Corporation Regional Banks $ /30/2017 Park Sterling Corporation South State Corporation Regional Banks $ /1/2017 Pacific Continental Corporation Columbia Banking System, Inc. Regional Banks $ /30/2017 Cascade Bancorp First Interstate BancSystem, Inc. Regional Banks $ /19/2017 Southwest Bancorp, Inc. Simmons First National Corporation Regional Banks $ /31/2018 Sun Bancorp, Inc. OceanFirst Financial Corp. Regional Banks $ /1/2018 Bank Mutual Corporation Associated Banc-Corp Thrifts and Mortgage Finance $ /1/2017 Carlile Bancshares, Inc. Independent Bank Group, Inc. Regional Banks $ /1/2018 WashingtonFirst Bankshares, Inc. Sandy Spring Bancorp, Inc. Regional Banks $ /1/2017 Suffolk Bancorp People's United Financial, Inc. Regional Banks $ /1/2017 Heritage Oaks Bancorp Pacific Premier Bancorp, Inc. Regional Banks $ /1/2018 HCBF Holding Company, Inc. CenterState Banks, Inc. (nka:centerstate Bank Regional Banks $ /26/2018 Paragon Commercial Corporation TowneBank Regional Banks $ /12/2017 Merchants Bancshares, Inc. Community Bank System, Inc. Regional Banks $ /14/2017 Independent Alliance Banks, Inc. First Merchants Corporation Regional Banks $ /1/2017 Middleburg Financial Corporation Access National Corporation Regional Banks $ /14/2017 SinoPac Bancorp Cathay General Bancorp Regional Banks $ /31/2017 American City Bank And Clayton Bank and Trust FirstBank, Inc. Regional Banks $ /2/2017 First Community Financial Partners, Inc. First Busey Corporation Regional Banks $ /23/2018 Gibraltar Private Bank & Trust Company IBERIABANK Diversified Banks $ /1/2017 Plaza Bancorp Pacific Premier Bancorp, Inc. Regional Banks $ /31/2017 Stonegate Mortgage Corporation Home Point Financial Corporation Thrifts and Mortgage Finance $ /15/2018 Central Community Corporation BancorpSouth, Inc. (nka:bancorpsouth Bank) Regional Banks $ /30/2017 AloStar Bank of Commerce State Bank And Trust Company Regional Banks $ /28/2018 Alpine Bancorporation, Inc. Midland States Bancorp, Inc. Regional Banks $ /1/2017 Metropolitan BancGroup, Inc. Renasant Corporation Regional Banks $ /1/2017 Sovereign Bancshares, Inc. Veritex Holdings, Inc. Regional Banks $ /9/2017 Centrue Financial Corporation Midland States Bancorp, Inc. Regional Banks $ /1/2018 Sunshine Bancorp, Inc. CenterState Banks, Inc. (nka:centerstate Bank Regional Banks $ /1/2018 Inter-Mountain Bancorp., Inc. Glacier Bancorp, Inc. Regional Banks $ /1/2017 ASB Bancorp, Inc. First Bancorp Thrifts and Mortgage Finance $ /1/2017 First South Bancorp, Inc. Carolina Financial Corporation Regional Banks $ /23/2017 Eastern Virginia Bankshares, Inc. Southern National Bancorp of Virginia, Inc. Regional Banks $ /2/2017 Mid Illinois Bancorp, Inc. First Busey Corporation Regional Banks $ /1/2018 Peoples Inc. National Bank Holdings Corporation Regional Banks $ /1/2017 Gateway Financial Holdings of Florida, Inc. CenterState Banks, Inc. (nka:centerstate Bank Regional Banks $ /1/2017 Four Oaks Fincorp, Inc. United Community Banks, Inc. Regional Banks $ /15/2017 Royal Bancshares of Pennsylvania, Inc. Bryn Mawr Bank Corporation Regional Banks $ /16/2018 Puget Sound Bancorp, Inc. Heritage Financial Corporation Regional Banks $ /15/2018 Ouachita Bancshares Corp. BancorpSouth, Inc. (nka:bancorpsouth Bank) Regional Banks $ /3/2017 DCB Financial Corp First Commonwealth Financial Corporation Regional Banks $ /1/2018 FirstAtlantic Financial Holdings, Inc. National Commerce Corporation Regional Banks $ /1/2018 First Mariner Bank Howard Bank, Inc. Regional Banks $ /30/2017 Pool of 436 Mortgage Loans Great Ajax Corp. Thrifts and Mortgage Finance $ Source: Capital IQ Houlihan Capital 5

6 S&P Capital IQ - Sector Last 3 Month Equity Performance 25.0% Change in Market Cap by S&P Capital IQ Sector 20.0% 15.0% 10.0% 5.0% 0.0% -5.0% -10.0% -15.0% 12/31/2017 1/31/2018 2/28/2018 3/31/2018 Energy Materials Industrials Consumer Discretionary Healthcare Financials Information Technology Telecommunication Services Utilities Consumer Staples Note: The indices are derived from the equity performance of the S&P Capital IQ Sectors. Source: Capital IQ Houlihan Capital 6

7 M&A Deal Flow Statistics by S&P Capital IQ Sector 16,000 M&A Deal Count - Number of Transactions 14,000 12,000 10,000 8,000 6,000 7,176 7,735 7,544 8,953 7,561 8,024 8,265 8,970 7,120 6,788 6,011 6,954 6,702 5,967 5,258 6,410 5,471 4,000 2,000 4,647 4,989 5,391 5,700 5,147 5,062 5,134 5,244 4,543 4,297 4,033 4,197 4,316 3,697 3,347 3,788 3,667 0 $1,000 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q M&A Deals - USA & Canada M&A Deals - Rest of the World M&A Deal Count - Total Transaction Value ($ Billions) $900 $800 $700 $600 $500 $400 $321.9 $372.8 $381.4 $462.7 $430.2 $512.6 $406.6 $440.3 $419.0 $268.0 $295.1 $445.7 $364.7 $336.2 $292.0 $335.7 $272.3 $300 $200 $100 $400.7 $251.0 $289.7 $450.7 $402.3 $385.2 $499.4 $408.0 $403.0 $375.6 $293.7 $363.7 $363.7 $338.9 $414.0 $346.2 $292.1 $0 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q Transaction Value - USA & Canada Transaction Value - Rest of World Houlihan Capital 7

8 M&A Deal Flow Statistics by S&P Capital IQ Sector Percentage Dollars Invested by Sector 1Q18 1% 10% 3% 12% Consumer Discretionary Consumer Staples 7% Energy Financials Healthcare 16% 11% Industrials Information Technology Materials 7% 4% Real Estate Telecommunications Services 11% 8% 10% Utilities Not Listed Houlihan Capital 8

9 About Houlihan Capital Houlihan Capital is a leading, solutions-driven valuation, financial advisory and boutique investment banking firm. We pride ourselves on being thought leaders in an ever-changing landscape. Houlihan Capital is SOC-compliant, a FINRA and SIPC member and committed to the highest levels of professional ethics and standards. Valuation & Financial Advisory We provide an array of services that include enterprise valuations, portfolio valuation, valuation of carried interest, transaction opinions, tax and financial reporting compliance, purchase price allocations, and a wide variety of consulting services through our Financial Advisory Group. Investment Banking Through our Investment Banking Group, we offer sell side/buy side advisory and capital raises. Through our Special Situations desk, we provide services that fit outside the archetypal verticals, including liquidity solutions, transactional advisory, and secondary market advisory and trading. Litigation Support Our team provides support for a wide variety of situations including commercial and shareholder disputes, derivatives and structured finance litigation, and fraudulent conveyance. For additional information about our Industry expertise and services, visit: Andrew Smith Paul Clark Michael Norton pclark@houlihancapital.com asmith@houlihancapital.com mnorton@houlihancapital.com