EJF Investments Ltd GBP · LSE:EJFI
EJF Investments Ltd GBP — EJF Investments — FY2023 Earnings Presentation
23 slides from EJF Investments Ltd GBP's earnings presentation, Mar 28, 2024
Slide 1: EJF Investments Limited 2023 Year End Results Presentation
EJF Investments Limited 2023 Year End Results Presentation 28 March 2024 www.ejfi.com Ordinary ShareTicker: EJFI LN For professional investors only // Not for public distribution
Slide 2: Portfolio Summary
Portfolio Summary The chart below provides a breakdown of the portfolio in £ million at 31 December EJF Investments Limited (‘EJFI’ or the ‘Company’) primarily 2022 and 31 December 2023. invests in a diversified portfolio of debt issued by smaller U.S. banks and insurance companies via CDO Equity Tr
Slide 3: Significant Investment Exposures at 31 December 2023
Significant Investment Exposures at 31 December 2023 CDO Equity Tranches The investments into the equity tranches of 7 CDOs, via EJF Investments LP, provide the Company exposure £79.5m to underlying collateral comprising 347 debt instruments issued by 157 US banks and 35 US insurance company unique
Slide 4: Sample CDO
Sample CDO1 Typical Collateral Sample CDO Typical Structure Characteristics Characteristics US Banks & Issuer Type Leverage 2x to 7x Insurance Companies Senior Tranche TruPS, Term Match funded Senior Notes, Debt Type Subordinated Debt, & Surplus notes Collateral Management 10bps to 30bps Mezzanine T
Slide 5: Mortgage Servicing Rights
Mortgage Servicing Rights ▪ Mortgage Servicing Rights ─ Mortgage servicing rights (“MSRs”) are contractual rights to annual cash flows, paid monthly, generated at the time of a loan origination. ─ MSR cash flows are paid first in the waterfall of MBS securitisations, thereby posing de minimis credit
Slide 6: Banking Turmoil in 2023
Banking Turmoil in 2023 • Silvergate Bank, Silicon Valley Bank, and Signature Bank all had outsized exposures, if not focusing their entire business models, on serving the digital assets, venture-backed companies, or other technology-related industries. WHY THE FAILED • Silicon Valley (94%), Signatu
Slide 7: Banking Turmoil in 2023
Banking Turmoil in 2023 • Silvergate Bank, Silicon Valley Bank, and Signature Bank all had outsized exposures, if not focusing their entire business models, on serving the digital assets, venture-backed companies, or other technology-related industries. WHY THE FAILED • Silicon Valley (94%), Signatu
Slide 8: Returns Profile
Returns Profile Annualised Total Return Total Return Total Return for the since since Period1 Inception1 Inception1 (7.27%) 79.32% 8.84% ¹All figures are as at 31 December 2023. These are APMs as defined on pages 82 to 83 of the Annual Report. Please see Legal Disclosures on pages 19-22. 7
Slide 9: Valuation and Dividends
Valuation and Dividends Valuation Market View Share price Ordinary Share 2025 ZDP Share Market NAV per ordinary Net Asset Value discount to NAV per price price Capitalisation share¹ ordinary share¹ 2022: £112.5m 2022: 184p 2022: 28.3% 2022: 132p 2022: 118.5p 2022: £80.7m 2023: £98.0m 2023: 160p 2023
Slide 10: NAV Bridge - Gross and Net
NAV Bridge - Gross and Net1 1Expenses and Expenses reimbursed allocated to each portfolio line above based on average fair value during the period. Please see Legal Disclosures on pages 19-22. 9
Slide 11: Why invest in U.S. Community Banks
Why invest in U.S. Community Banks Smaller Banks Have Greater Capital Ratios1 Commercial Bank Credit Quality Remains Pristine1 Credit Quality in the Banking Industry (1991-2023) Tier 1 Leverage Ratio 4.0% 11.0% 3.5% 3.54% 10.5% 3.0% 10.0% 2.67% 9.5% 2.5% 9.0% 2.0% 8.5% 1.65% 1.5% 1.61% 8.0% 1.20% 0.
Slide 12: Recap, Events Post Year End and Outlook
Recap, Events Post Year End and Outlook • 2023 was undoubtedly a volatile year, particularly the first three quarters of the year. It is our view that the failures in first half of the year were largely driven by idiosyncratic events, and that, following heightened levels of stress and fear during t
Slide 13: Summary
Summary 79.32% Total Return1 and 8.84% Annualised Total Return1 since inception to December 2023 • Risk Retention Vehicle: Supports the $2.99bn securitisation platform of EJF. • Underlying exposure: Exposure to a portfolio of loans to US financial institutions and related assets, with an emphasis on
Slide 14: Any Questions
? Any Questions Please see Legal Disclosures on pages 19-22. 13
Slide 15: Appendix
Appendix Please see Legal Disclosures on pages 19-22. 14
Slide 16: CDO Equity Tranches at 31 December 2023
CDO Equity Tranches at 31 December 2023 Please see Legal Disclosures on pages 19-22. 15
Slide 17: Summary Audited Financials
Summary Audited Financials 1 January 2023 to 1 January 2022 to Income Statement 31 December 2023 31 December 2022 £ million £ million Dividend Income from Subsidiary 8.0 8.5 Net (loss)/gain from Investment in Subsidiary (13.0) 8.9 Total Income (5.0) 17.4 Investment Management fee (0.9) (1.0) Other O
Slide 18: Summary Audited Financials
Summary Audited Financials Balance sheet 31 December 2023 31 December 2022 £ million £ million Investment in Subsidiary 121.7 132.0 Cash at EJFI level 0.7 0.4 Other Assets 0.2 0.4 Total Assets 122.6 132.7 ZDP shares (24.1) (19.7) Other Liabilities (0.5) (0.5) Total Liabilities (24.6) (20.2) Net Asse
Slide 19: Contact Information
Contact Information Enquiries For the Manager For the Independent Directors EJF Investments Manager LLC Joanna Dentskevich Peter Stage / Jay Ghatalia Alan Dunphy pstage@ejfcap.com / jghatalia@ejfcap.com Nick Watkins +44 203 752 6775 / +44 203 752 6776 jersey.bp2s.ejf.cosec@bnpparibas.com For the Bro
Slide 20: Legal Disclosures
Legal Disclosures PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS, WHICH MAY VARY. THIS PRESENTATION AND ITS CONTENTS ARE NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, IN OR INTO OR FROM AUSTRALIA, CANADA, SOUTH AFRICA, THE EUROPEAN ECONOMIC AREA ("E
Slide 21: Legal Disclosures
Legal Disclosures Statements of historical events are strategy and fund specific and may not apply to all products and services offered by the Company, the Manager or EJF. Certain statements may contain performance calculations which were prepared by EJF and contain assumptions about future delinque
Slide 22: Legal Disclosures
Legal Disclosures This presentation does not constitute an offer to sell, or a solicitation of an offer to buy, securities in the United States. The securities mentioned herein have not been, and will not be, registered under the U.S. Securities Act of 1933, as amended (the "US Securities Act") or w
Slide 23: Legal Disclosures
Legal Disclosures Each of Barclays, which is authorised by the Prudential Regulation Authority (the “PRA”) and regulated in the United Kingdom by the Financial Conduct Authority (the “FCA”) and the PRA, and Liberum, which is authorised and regulated in the United Kingdom by the FCA (together, Barcla