Eagle Bancorp Montana, Inc. · NASDAQ:EBMT
Eagle Bancorp Montana — Janney 2022 CEO Bank Forum
33 slides from Eagle Bancorp Montana's conference presentation, Feb 2, 2022
Slide 1: Janney 2022 CEO Bank Forum
Janney 2022 CEO Bank Forum February 2 - 3, 2022
Slide 2: Cautionary Notice Regarding Forward-Looking Statements
2 Cautionary Notice Regarding Forward - Looking Statements This presentation includes “forward - looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amen ded, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward - looking statements are base
Slide 3: Community Focused Institution
COMMUNITY FOCUSED INSTITUTION □ Eagle Bancorp Montana, Inc . is the holding company for Opportunity Bank of Montana ; established in 1922 , the Bank is the 4 th largest bank headquartered in Montana with 23 banking offices and has deeply embedded itself as the bank of choice within the community □ C
Slide 4: Company Overview
COMPANY OVERVIEW □ 23 branches in Montana operating under the Company’s banking subsidiary – Opportunity Bank of Montana □ Balance Sheet (12/31/21): ▪ Assets $1.436 billion ▪ Gross Loans $933.1 million ▪ Deposits $1.223 billion ▪ Total equity $156.7 million □ Asset Quality (12/31/21): ▪ NPAs/assets
Slide 5: Experienced Executive Management
Peter Johnson President and CEO 40 years with the Company 4 3 years in banking Laura Clark EVP and Chief Financial Officer 7 years with the Company 4 5 years in banking Rachel Amdahl SVP and Chief Operations Officer 3 5 years with the Company 3 5 years in banking Dale Field SVP and Chief Credit Offi
Slide 6: Experienced Board
EXPERIENCED BOARD Director Experience Year Elected Peter J. Johnson President and CEO of Opportunity Bank and the Company 2007 Rick F. Hays Retired President of a Montana telecommunications company 2007 Thomas J. McCarvel Retired Vice President of Carroll College 1998 Maureen J. Rude Retired Executi
Slide 7: Business Strategy
7 □ Continue to diversify our loan portfolio into commercial (C&I), commercial real estate and agriculture □ Attract and retain lower - cost core deposits □ Continue to expand our franchise through selective acquisitions and branch additions □ Maintain high asset quality levels □ Continue to operate
Slide 8: Key Montana Markets – Helena, Missoula, Great Falls
Key Montana Markets – Helena, Missoula, Great Falls Lewis and Clark County (Helena) Cascade County (Great Falls) Missoula County (Missoula) • Helena is the state capital of Montana. • Stable economy supported by state government, healthcare, education, and small business. • Government positions acco
Slide 9: Key Montana Markets – Bozeman, Billings, Butte
Key Montana Markets – Bozeman, Billings, Butte Gallatin County (Bozeman) Silver Bow (Butte) Yellowstone County (Billings) • Fastest growing area in Montana, and one of the fastest growing counties in the Western U.S. • Home to Montana State University, the largest university in the state (16,000+ st
Slide 10: Recent Corporate Milestones and Transactions
10 □ On January 21, 2022, issued and sold $40 million in aggregate principal amount of its 3.50% fixed - to - floating rate subordinated notes to certain institutional accredited investors and qualified institutional buyers through a private placement offering. □ On October 1, 2021, reached an agree
Slide 11: Acquisition of First Community Bancorp, Inc.
NASDAQ: EBMT ACQUISITION OF FIRST COMMUNITY BANCORP, INC. Strategic Expansion of Montana’s Premier Community Bank
Slide 12: Strategic Montana Expansion - EBMT's Largest Acquisition
12 Strategic Montana Expansion - EBMT’s Largest Acquisition ▪ Eagle Bancorp Montana, Inc. (NASDAQ: EBMT), the holding company for Opportunity Bank of Montana (“Opportunity”) has entered i nto an agreement to acquire First Community Bancorp Inc., the holding company for First Community Bank (collecti
Slide 13: First Community Bank Overview
13 First Community Bank Overview Source: S&P Capital IQ Pro, financial and deposit data as 6/30/2021 Note: Bank - level call report data for First Community Bank History and Franchise Highlights Financial Highlights – First Community Bank Branch Footprint – First Community Bank ▪ Established by the
Slide 14: Montana Deposit Market Share Pro Forma
14 Rank MT Rank Institution (State) Branches Deposits ($000s) Market Share 1 1 Glacier Bancorp Inc. (MT) 67 7,206,605$ 21.3% 2 2 First Interstate BancSystem (MT) 46 6,010,908$ 17.8% 3 3 Stockman Financial Corp. (MT) 39 4,321,707$ 12.8% 4 - U.S. Bancorp (MN) 21 3,155,100$ 9.3% 5 - Wells Fargo & Co. (
Slide 15: Opportunity to Expand in Key Agriculture and Commercial Markets
15 Opportunity to Expand in Key Agriculture and Commercial Markets Source: S&P Capital IQ Pro, CNBC.com, Montana Department of Agriculture, American Land Brokers, Statista, U.S. News, U.S Census Bureau (1) USDA agricultural statistics data as of 2018 Northeast Montana Helena (Lewis & Clark County) ▪
Slide 16: Loan and Deposit Composition
16 Construction & Development 11.1% 1 - 4 Family 23.0% Multifamily 3.9% Non - Owner Occupied CRE 18.2% Owner - Occupied CRE 17.3% Commercial & Industrial 10.2% Farm/Agriculture 12.9% Consumer 2.0% Other 1.2% Construction & Development 8.1% 1 - 4 Family 13.7% Non - Owner Occupied CRE 0.5% Owner - Occ
Slide 17: Transaction Structure and Assumptions
17 Transaction Structure and Assumptions (1) Based on EBMT closing price of $22.10 as of September 29, 2021 (2) Required Adjusted Tangible Stockholders’ Equity of $29.5 million. Refer to the Agreement and Plan of Merger for complete term s Aggregate Deal Value: (1) ▪ $41.1 million, or $1,110.58 per
Slide 18: Transaction Multiples and Pro Forma Impact
18 Transaction Multiples and Pro Forma Impact (1) Based on EBMT closing price of $22.10 as of September 29, 2021 (2) Required Adjusted Tangible Stockholders’ Equity of $29.5 million. Refer to the Agreement and Plan of Merger for complete term s (3) Core deposits defined as total deposits less time d
Slide 19: An Expanding Franchise
19 $200 $213 $238 $251 $287 $306 $333 $332 $508 $516 $560 $630 $674 $717 $854 $1,054 $1,258 $1,733 $- $200 $400 $600 $800 $1,000 $1,200 $1,400 $1,600 $1,800 $2,000 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Q2 2021 Total Assets ($MM) Non-Acquired Assets Acqu
Slide 20: The Eagle Bancorp Montana Story
20 The Eagle Bancorp Montana Story Source: Company filings Note: Financial information for acquired companies and branches at closing (1) Based on total assets as of 6/30/2021 (2) Financial information as of 6/30/2021; region includes MT, ID, and WY Where Eagle Has Come From Where Eagle is Today Whe
Slide 21: Compelling Opportunity for EBMT and its Shareholders
21 Compelling Opportunity for EBMT and its Shareholders Source: Mobility Market Intelligence x Acquisition increases pro forma assets to over $1.7 billion and further solidifies Eagle’s position as the fourth largest ban k headquartered in Montana x Rare opportunity to acquire the leading bank in No
Slide 22: Financial Highlights
FINANCIAL HIGHLIGHTS
Slide 23: Net Interest Income & Net Interest Margin
NET INTEREST INCOME & NET INTEREST MARGIN $ 2 , 0 $ 3 , 0 $ 4 , 0 $ 5 , 0 $ 6 , 0 $ 7 , 0 $ 8 , 0 $ 9 , 0 $ 1 0 , 2 . 8 0 3 . 0 0 3 . 2 0 3 . 4 0 3 . 6 0 3 . 8 0 4 . 0 0 4 . 2 0 4 . 4 0 4 . 6 0 Net Interest Income Net Interest Margin 23 4.33% 4.31% 4.15% 4.22% 4.04% 3.85% 3.83% 4.03% 3.97% 3.81% 3.8
Slide 24: Provision for Loan Losses
24 PROVISION FOR LOAN LOSSES $1,833 $1,228 $980 $2,627 $3,130 $861 $0 $500 $1,000 $1,500 $2,000 $2,500 $3,000 $3,500 2016 2017 2018 2019 2020 2021 2016 2017 2018 2019 2020 2021 $ in 000’s
Slide 25: Balance Sheet Expansion
BALANCE SHEET EXPANSION 25 $674 $717 $854 $1,054 $1,258 $1,436 $466 $513 $617 $779 $841 $933 $513 $521 $627 $809 $1,033 $1,223 $0 $200 $400 $600 $800 $1,000 $1,200 $1,400 $1,600 12/31/2016 12/31/2017 12/31/2018 12/31/2019 12/31/2020 12/31/2021 Assets Total Loans Deposits $ in millions
Slide 26: Loan Portfolio Composition – 12/31/2021
26 Loan Portfolio Composition – 12/31/2021 □ Since 2008, number of Commercial/Ag lenders has increased from 4 to 32 □ 27 Mortgage Lenders □ C&I accounts for 11% of loan portfolio □ Owner - occupied CRE loans represent 18% of total loans Per call report data as of 12/31/21, excludes loans held for sa
Slide 27: Deposit Mix – Rolling 8 Quarters
Non Interest Checking 30% Interest Bearing Checking 17% Savings 18% Money Market 23% Time Certificates 12% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 Time Certificates Money Market Savings Interest Checking Non Interest Checking December 31, 2021 Deposit Mix
Slide 28: Disciplined Credit Culture
28 DISCIPLINED CREDIT CULTURE 0.21% 0.45% 0.52% 0.68% 0.49% 0.00% 0.10% 0.20% 0.30% 0.40% 0.50% 0.60% 0.70% 0.80% 12/31/2017 12/31/2018 12/31/2019 12/31/2020 12/31/2021 Nonperforming Assets/Total Assets
Slide 29: COVID-19 Impact Providing Relief to Customers
COVID - 19 IMPACT PROVIDING RELIEF TO CUSTOMERS Accommodations and Modifications to Borrowers □ 90 - day payment deferrals □ 6 - month interest only payments □ Mortgage forbearances □ Montana Board of Investments program (MBOI) assistance □ SBA PPP loan assistance Loan Modification Status as of 12/3
Slide 30: Yield and Cost of Funds
YIELD AND COST OF FUNDS 0.00% 1.00% 2.00% 3.00% 4.00% 5.00% 6.00% 2016Y 2017Y 2018Y 2019Y 2020Y 2021Y Yield on Average Earning Assets EBMT Peer Group 0.00% 1.00% 2.00% 3.00% 4.00% 5.00% 6.00% 2016Y 2017Y 2018Y 2019Y 2020Y 2021Y Yield on Loans EBMT Peer Group 0.00% 0.20% 0.40% 0.60% 0.80% 1.00% 1.20%
Slide 31: Capital Strength
CAPITAL STRENGTH 31 □ Authorized the repurchase of up to 100,000 shares of its common stock, representing approximately 1.47% of outstanding shares. Total Assets 716,782$ 853,903$ 1,054,260$ 1,257,634$ 1,435,926$ Total Common Stockholders' Equity 83,616$ 94,806$ 121,659$ 152,938$ 156,729$ Total Regu
Slide 32: 5 Year Stock Price Performance
32 Source: S&P Global Market Intelligence as of January 24, 2022 Information reflects the exchange as a result of the conversion and offering 5 YEAR STOCK PRICE PERFORMANCE
Slide 33: Contact
Pete Johnson President and CEO Office: (406) 442 - 3080 Direct: (406) 457 - 4006 pjohnson@oppbank.com Laura Clark EVP and Chief Financial Officer Office: (406) 442 - 3080 Direct: (406) 457 - 4007 lclark@oppbank.com www.opportunitybank.com 1400 Prospect Avenue P.O. Box 4999 Helena, MT 59604