©2013 Fiserv, Inc. or its affiliateswww.raddon.com / Measuring Opportunity and Success Best Banking Practices - Looking from the Inside Out

©2013 Fiserv, Inc. or its affiliateswww.raddon.com / The Key Questions What is our strategic plan? What is our potential? Existing Retail & Commercial How successful have we been reaching that potential? Customer Development Employee Accountability/Recognition Are our customers willing to give us their future business? What is our market potential?

©2013 Fiserv, Inc. or its affiliateswww.raddon.com / Asset MedianNational Median ROA0.80%0.76% ROE7.37%6.95% Capital to Assets10.32%10.54% Efficiency Ratio70.76%72.58% Earning Asset Yield4.18%4.15% Average Loan Yield5.44%5.55% Total Loan Growth-3.14%-3.77% Loan to Assets61.54%59.51% Net Chargeoffs0.06%0.04% Total Delinquencies0.87%0.92% Cost of Funds0.58%0.56% Core Deposit Growth7.57%7.76% Net Interest Margin3.55%3.54% Noninterest Income to Assets0.62%0.54% Key Financial Ratios In order to market effectively, we must understand the key financial issues, and how they create the framework of our strategic plan

©2013 Fiserv, Inc. or its affiliateswww.raddon.com / Measuring Potential Through Segmentation Segmentation backed by national research allows you to quantify the opportunity for products, services, and balances, as well as estimate channel usage

©2013 Fiserv, Inc. or its affiliateswww.raddon.com / Product Potential in Segments

©2013 Fiserv, Inc. or its affiliateswww.raddon.com /

©2013 Fiserv, Inc. or its affiliateswww.raddon.com /

©2013 Fiserv, Inc. or its affiliateswww.raddon.com / Depth of Relationship – Retail HH’s Realizing Potential Do we still have opportunity for organic growth? Total Retail HHs Services Per Household – Retail HHs (Services w/balance) Services Per Household – Retail HHs (All Services) Sales Activity Sales Activity Excluding CD’s Checking Penetration Loan Penetration Avg Loan Balance- Retail Avg Deposit Balance - Retail Share of Wallet – Loans (No 1 st Mtges) Share of Wallet - Deposits Revenue /HH - Retail Expense/HH - Retail Increase A HHs Re-engage E HHs

©2013 Fiserv, Inc. or its affiliateswww.raddon.com / Depth of Relationship – Commercial HH’s Realizing Potential Do we still have opportunity for organic growth? Total Commercial HHs Services Per Household – Commercial HHs Commercial Loan Penetration Average Loan Balance – Commercial HH’s Non Performing Loan Ratio Commercial Checking Penetration Avg Commercial Deposit Balance Revenue /HH – Business HHs Expense/HH – Business HHs Increase A HHs Re-engage E HHs Retail Loan Penetration – Commercial HHs Retail Deposit Penetration – Commercial HHs Avg Retail Loan Balance – Commercial HHs Avg Retail Deposit Balance – Commercial HHs

©2013 Fiserv, Inc. or its affiliateswww.raddon.com / Create Accountability and Recognize Success Banks that provided bonus incentives to their commercial lenders for loan growth achieved higher levels of profitable, commercial loan growth. (Incentives also factored credit quality and document exceptions) A culture of recognition creates higher levels of customer satisfaction and higher cross sales

©2013 Fiserv, Inc. or its affiliateswww.raddon.com / Measure Customer Sentiment Loyalty Primary Financial Institution Overall Satisfaction Willingness to give us their future business Barriers to future business Willingness to refer us to their friends and family Engagement – Emotional Connection to the bank Leads to higher loyalty, higher SOW, and higher financial performance Service Performance What attributes are most important to your customers How are we performing on different service attributes

©2013 Fiserv, Inc. or its affiliateswww.raddon.com / Measure Market Potential Existing and Proposed Segmentation Market Size Market Share Number of Competitors HH growth, balance growth Market Deposits Deposit Share Market Loans Loans Share Fair Share HH’s Loans Deposits

©2013 Fiserv, Inc. or its affiliateswww.raddon.com / Answering the Key Questions What is our strategic plan? – Understanding the financials What is our potential? Existing Retail & Commercial – Through Segmentation How successful have we been reaching that potential? Customer Development Employee Accountability/Recognition -Measuring through Household Metrics Are our customers willing to give us their future business? -Measuring Customer Loyalty, Engagement, and Service Performance What is our market potential? – Studying the Market

©2013 Fiserv, Inc. or its affiliateswww.raddon.com / Thank You Raddon Financial Group 701 East 22nd Street, Suite 400 Lombard, IL Office: Contact Information Kory Kunze Bank Strategic Advisor