TAYC

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TAYC

  1. 1. 2 Forward-Looking Statement This presentation contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include expressions such as “may,” “expect,” “anticipate,” “intend,” “believe,” “could,” and “should,” and reflect our current expectations and projections about future events. Actual results could materially differ from those presented due to a variety of internal and external factors. Except as required by the SEC, we undertake no obligation to release revisions or report events or circumstances after the date of this presentation. Additional information concerning factors that could cause actual results to differ materially from those in the forward-looking statements is contained from time to time in our SEC filings, including, but not limited to, our report on Form 10-K; our reports on Form 10-Q; and other filings. Copies of these filings may be obtained on our website at www.taylorcapitalgroup.com or the SEC’s website at www.sec.gov.
  2. 2. 3 Who is Taylor Capital Group? • Holding company for Cole Taylor Bank – 9th Largest bank based in Chicago area* • Celebrating 80th anniversary in 2009 *Ranked by assets as of 3/31/08
  3. 3. 4 Who is Taylor Capital Group? • Commercial banking is our sole focus – Serving Chicago metropolitan area – Owner-operated businesses – Sales from $5 million to $250 million
  4. 4. 5 Key Financials Nasdaq: TAYC Snapshot at 6/30/2008 Share price on 8/18/2008…………………$10.93 Shares outstanding……...11 Million Market Cap………….. $120 Million Ownership……...49% Insider/ESOP 51% Public Total Assets………….…..$3.7 Billion Total Equity……………..$221 Million Total equity to assets….……10.26% Tangible equity to assets……8.63%
  5. 5. 6 Key Developments • First half results – C&I first half loan growth 46% (annualized) – First half loss of $29 million vs. net income of $12.5 million for first half last year – Loss attributable to $61 million provision for loan losses in 1H08 • Plans to raise additional capital – Working with investment bank for 2008 capital augmentation • $50 million convertible preferred stock at holding company • $50 million in bank subordinated debt – Signed Letter of Intent
  6. 6. 7 Key Developments • CTB President and CEO: Mark Hoppe – More than 27 years in commercial banking with LaSalle Bank, N.A. • CEO, LaSalle Midwest Bank in Michigan • Vice chairman, LaSalle National Leasing Company • New Director: Hill Hammock – Chief administrative officer, Chicago Public Schools – COO, ABN AMRO North America, Inc. – More than 30 years with LaSalle Bank, N.A. • COO • Chief credit officer • Chief risk officer
  7. 7. 8 Residential Construction • Problem facing banks across the region and the country • Unprecedented drop- off in new home sales • Portfolio is in our market • Long time Chicago- based homebuilders • Reducing residential construction as % of overall portfolio Issues Cole Taylor Bank’s Position
  8. 8. 9 864 516 824 504 850 493 879 456 1,045 423 $0 $200 $400 $600 $800 $1,000 $1,200 Commercial Residential Construction Q207 Q307 Q407 Q108 Q208 Improving Loan MixMillions +20.8% Y/Y –18.1% Y/Y
  9. 9. 10 Strategic Growth • Made choice to invest in growth, not fall behind • Developed growth strategy to take advantage of disruption • Doubled commercial lending team • New bank and commercial lending leadership
  10. 10. 11 Chicago Middle Market Banking • Chicago area market share* – Top two banks 58% – Top five banks 83% – Cole Taylor Bank 2% *Of companies with $10 - $500 million in annual sales Top 5 Banks, 83% Cole Taylor Bank, 2% Other Banks, 15% Our Opportunity
  11. 11. 12 Chicago Middle Market Banking • Large and diverse market • Strong base of owner operated business • Market potential >15,000 firms
  12. 12. 13 Chicago Middle Market Banking • Primary competition is: – MB Bank – Fifth Third Bank – Bank of America – PrivateBank – WinTrust – National City • Singular focus on small-middle market gives us great upside
  13. 13. 14 Strategic Growth Initiative • Recognized opportunity to take advantage of market disruption in 2007 • Strategy developed • Committed substantial resources to core commercial banking • Brought in new bank and commercial banking leadership • Doubled commercial lending team – Exploit growth opportunity in market disruption – Navigate industry downturn
  14. 14. 15 Talent Investment to Facilitate Growth Strategy… Acquired Category Leaders – Larry Ryan, Chief Lending Officer – Mike Morton, Chief Credit Officer – Mike Sharkey, Head of Asset Based Lending Acquired 40 accomplished Chicago-area bankers – 25 commercial lenders averaging more than 13 years of experience – Experience managing larger portfolios
  15. 15. 16 Cole Taylor’s Plan Focused On Market Potential Top priorities: – Leverage existing relationships during market disruption – Enhance effectiveness of staff – Expand non-credit product offerings
  16. 16. 17 Representative New Clients • Plastic container manufacturer – $29 million in sales – $12 million in credit, derivatives, treasury management • Seasonal goods importer – $225 million in sales – $25 million in credit, derivatives, treasury management, foreign exchange, letters of credit • Specialty metal products manufacturer - $25 million in sales – $13 million credit, treasury management • Bank holding company - $500 million in assets – $25 million credit, DDA/Cash letter/Fed Funds, letters of credit
  17. 17. 18 Early Results Positive • First 90 days – $300 million in new commitments since 3/31 – $214 million in total new loans (up 34% annualized) since 3/31
  18. 18. 19 …and Superior Credit Support Added senior credit, loan review, workout teams – Augmented staff – Enhanced controls and monitoring – Infrastructure in place to manage larger, more complex book of business
  19. 19. 20 Summary • TAYC is a stock with significant upside • Portfolio is being managed and minimized • Team in place to build and manage a significantly larger organization • Adding capital to support growth: the future of the bank • 2Q loan and relationship growth confirms strategy
  20. 20. 21 Questions ?
  21. 21. 22 Thank you

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