1. April 21 and 22, 2005 Chicago, IL

2. THE REINVESTMENT FUND An Informed Discussion: Achieving Sustainability, Scale, and Impact in Community Development Finance Presentation to the Federal Reserve Bank of Chicago and The Aspen Institute April 21 st, 2005

3. Mission. The Reinvestment Fund builds wealth and opportunity for low-wealth communities and individuals through the promotion of socially and environmentally responsible development. Loans, equity Investments, and grants Products and partnerships that open new markets Data and policy analysis KnowledgeInnovation Capital

4. TRF Profile   Over $400 million in cumulative investments and loans   Currently manage $260 million in capital, with over 850 investors   FY2004: $66 million in closed loans and investments Residential Real Estate Commercial Real Estate Community Facilities Small Business Private Equity Sustainable Energy Policy, Research & Assessment Business Lines:

5. Capital Total Investments: 625 Individual 104 Religious 54 Civic Organizations and Corporations 42 Banks 29 Foundations Number of Investors Source of Funds, by dollars

6. Knowledge We provide high quality research, information and policy ideas to government, nonprofit institutions, and private sector partners.

7. Innovation Linking Private Equity & HR Assistance Distressed Urban Markets Data Product Pennsylvania Fresh Food Financing Initiative

8. Growth In Phase One The Foundational Years (1985-1990) Attitude Towards Permanence Regional Market Place as Geographical Unit Broad Capital and Civic Expression Not Owned by any Single Class of Investors Flexible but Disciplined Culture

9. Growth In Phase Two A Well Run Non-Profit (1991-2000) Movement Toward Capital Predictability Internalizing the Lessons of Major Mistakes Learning to Listen to the Market Breaking the Rules of the CD Paradigm Talent Attraction and Acquisition

10. Growth in Phase Three Structuring A Business Model (2001- ) Articulating A Sustainability Strategy Understanding the Value of Information Making Back Stage into Front Stage Geographical Expansion Broadening Capital Market Access

11. Sustainability Principles Pricing ModelSmart Subsidy Taking Advantage of Value We Create Impact TransparencyCivic and Commercial NetworksBalance Sheet for GrowthValued Products TRF Sustainability An Economic Engine

12. Regional Choice High Value Steady Transitional Distressed Reclamation Little Sales Activity* Non Residential * Less than 5 Sales per Block Group 1/02-7/03 Market Value Analysis Tools Philadelphia 2003 Camden 2001 High Value Strong Value Steady Transitional Distressed Public Market Reclamation

13. Back Stage to Front Stage: Automation and Brand

14. Geographical Expansion

15. Capital Market Access Priority Factors in Liquidity Options

16. April 21 and 22, 2005 Chicago, IL

17. Building a Better Business Model Thomas Munoz, Senior Vice President April 18, 2005

18. 18 MB Financial Snapshot (Dollars amounts in millions, except per share data)

19. 19 M & A Highlights 2001 to 2004 Assets Assets 1990 to 2000 (10 mergers and acquisitions)$1.9 billion Acquired FSL Holdings, Inc. $222 million April 2001 MidCity Financial and MB Financial merge MOE November 2001 Acquired Lincolnwood Financial Corp.$228 million April 2002 Acquired LaSalle Systems Leasing $92 million August 2002 Acquired South Holland Bancorp$560 million February 2003 Divested Abrams Centre Bancshares $98 million May 2003 Acquired First SecurityFed Financial $567 million May 2004

20. 20 Chicagoland Locations

21. 21 Customer Focused  We have always been Chicago based  Better convenience through convenient branch network  Great products  Third in Cook County in small loans to businesses; 58 th in U.S. (according to American Banker)

22. 22 Customer Focused  We speak many languages  Automated voice response system speaks five languages  Marketing messages and materials in multiple languages

23. 23  Korean Bank  Ukrainian Division  Hispanic Banking Initiative “Bank within the Bank”

24. 24

25. 25  “Outstanding” CRA rating from OCC  Lending testOutstanding  Service testOutstanding  Investment testOutstanding Community Oriented

26. 26 Community Oriented Community development investments and loans generated by MB Financial Community Development Corporation in 2004  Lending: Disbursements$ 50,132,000  Lending: Commitments7,875,000  Investments: Grants 215,744  Investments: Direct 10,986,900  Federal Home Loan Bank 2,993,326 AHP Approved Grants 431 units

27. 27 Strategic Allies and Partnerships  “Renting” the Bank Platform  Housing  Neighborhood Housing Services  Loan Servicing by the bank  Investor Remittances by the bank  Loan Origination in partnership with bank  Development of Investment vehicles to generate capital  Small and Micro-enterprise Financing  ACCION Chicago  Loan Servicing by the bank  Housed in bank office  Partnership Lending with bank products  Joint marketing and training for customers  Adds Efficiency  NHS saved $600,000.00 plus  ACCION Chicago saved $80,000.00 plus

28. 28 Small Business Lending – Retail Platform Delivery  Competency development  Constant Training of Retail sales staff  Cultural Shift management  New employees and merger partners  Incentive-based compensation  Part of the overall sales and service-delivery  Product Orientation  Suite of Credit and Deposit Services  Marketed through individual sales actions  Supported by Commercial Loan Officers

29. 29 Small Business Lending – Retail Platform Delivery  Centralized Underwriting and Processing  Within Retail Oversight and control  Staffed with Commercial Credit expertise  Remote documentation production  Transparent to the customer  Credit Limits  Loans up to $1 million  All Collateral types  Credit Policy segmentation and review

30. 30 Small Business Lending – Retail Platform Delivery  Delivery Differentiation  Enables true Commercial Credit to be handled within the Commercial Department  Subjective Credit review  No Credit Scoring “models”  Allows for more flexibility  Expands the deposit services growth  Deposit services, cash management tools, etc. as first offer  80% are non-borrowers  Provides further “granularity” to the bank’s overall commercial credit balances  Enhances returns  Spreads risk among variety of types

31. 31 Small Business Lending – Retail Platform Delivery  Challenges  No “instant answer”  Average 3-day decision  Capacity demands  Staff Confidence  Creating Small Business Sales Motivation  Internal Acceptance  New/expanded Credit Authority  Performance benefit  Lower than industry charge-off/losses

32. 32 Small Business Lending – Retail Platform Delivery  Outcomes  Grew platform performance  Expanded Deposit relationships (stickiness)  Added fee revenue  Grew outstanding credits  200 to more than 1000 in four years  $10 million to $70 million in credits in four years  Added franchise value to the Retail platform  Added 4,000 net new small business demand deposit accounts in four years  Grew Treasury Management Revenue 64% in four years

33. Building a Better Business Model Thomas Munoz, Senior Vice President April 18, 2005

34. April 21 and 22, 2005 Chicago, IL