Eagle Bancorp Montana, Inc. · NASDAQ:EBMT
Eagle Bancorp Montana — D.A. Davidson Financial Services Conference May 2020
27 slides from Eagle Bancorp Montana's conference presentation, May 5, 2020
Slide 1: D.A. Davidson Financial Services Conference May 2020
D.A. DAVIDSON FINANCIAL SERVICES CONFERENCE MAY 2020
Slide 2: Cautionary Notice Regarding Forward-Looking Statements
CAUTIONARY NOTICE REGARDING FORWARD - LOOKING STATEMENTS 2 Certain statements contained in this presentation that are not statements of historical fact are forward - looking statements. These forward - looking statements, which are based on certain assumptions and describe our future plans, strategi
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 (3/31/20): ▪ Assets $1.159 billion ▪ Gross Loans $822.0 million ▪ Deposits $888.2 million ▪ Total equity $133.7 million □ Asset Quality (3/31/20): ▪ NPAs/assets –
Slide 5: Experienced Executive Management
EXPERIENCED EXECUTIVE MANAGEMENT 5
Slide 6: Experienced Board
EXPERIENCED BOARD Director Experience Year E le c t e d 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 Ex
Slide 7: Business Strategy
□ 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 a
Slide 8: Deposit Market Share - State of Montana
□ Since the acquisitions, the 4 th largest banking institution headquartered in Montana in terms of deposits □ Footprint with presence in the key Montana markets DEPOSIT MARKET SHARE - STATE OF MONTANA Institution (ST) 2019 Rank 2018 Rank B r a n c h e s Total Deposits In Market ($000) 2 0 1 9 To t
Slide 9: Montana Metropolitan Markets: Missoula and Billings
So u r c e : MONTANA METROPOLITAN MARKETS Deposit Market Share – Missoula, MSA The Missoula MSA is the 2 nd largest metropolitan area in Montana by population □ Home to the University of Montana (11,000+ students) □ Regional hub for a wide range of retail, professional and service activities S&P Glo
Slide 10: Deposit Market Share - Bozeman and Helena
Source: S&P Global Market Intelligence □ Fastest growing area in Montana □ Home to Montana State University (16,000+ students) □ Healthcare industry rapidly expanding □ High - tech center of Montana Deposit Market Share – Helena, MT □ Helena's economic stability is largely due to state government, r
Slide 11: COVID-19 Impact
COVID - 19 IMPACT □ Updating customers through the website □ Fee waivers addressed upon request □ Loan modifications based on degree of need □ Active in SBA Paycheck Protection Program loans for existing customers □ Proactively touched existing business borrowers to assess needs □ Employee safety is
Slide 12: COVID-19 Impact: Providing Relief to Customers
COVID - 19 IMPACT PROVIDING RELIEF TO CUSTOMERS Paycheck Protection Program (PPP) □ Began receiving PPP applications on 4/3/20 □ Currently funding loans Over 660 Applications received and approved Over $31.3 million Loans funded as of 4/30/20 Loan Modification To Borrowers □ Granting extensions and
Slide 13: COVID-19 High Impact Industries
COVID - 19 HIGH IMPACT INDUSTRIES $822 Million in Total Net Loans (as of March 31, 2020) Category Avg Loan Size Max Loan Size Total Exposure Storage Units $ 4 75 , 98 3 $ 2 , 412 , 90 8 $ 1 2 , 3 75 , 5 6 7 Educational Services $ 3 25 , 74 2 $ 9 50 , 00 0 $ 2 , 280 , 1 9 4 Healthcare and Social Assi
Slide 14: Recent Corporate Milestones and Acquisitions
□ On January 1, 2020 completed purchase of Western Bank of Wolf Point, in Wolf Point Montana. □ On January 1, 2019 completed purchase of The State Bank of Townsend, in Townsend, Montana. □ On January 31, 2018 completed purchase of Ruby Valley Bank,Twin Bridges, Montana. □ On October 13, 2017, succes
Slide 15: An Expanding Franchise
AN EXPANDING FRANCHISE — EAGLE BANCORP MONTANA, INC. A SSE T S $800 MM $940 MM $710 MM $510 MM $316 MM $ 150 MM 2 0 0 0 2 0 1 0 2 0 1 2 2012 - 2016 2 0 1 7 2 0 1 8 201 8 201 7 2012 - 2016 201 2 201 0 200 0 2 0 1 9 First Stage Second Acquisition Organic Acquisition Acquisition A c q u i s i t i o n C
Slide 16: Financial Highlights
FINANCIAL HIGHLIGHTS 16
Slide 17: Net Interest Income & Net Interest Margin
NET INTEREST INCOME & NET INTEREST MARGIN 3.65% 3.80% 3.75% 3.77% 4.18% 3.95% 3.95% 4.33% 4.31% 4.15% 4.22% 4.04% 3.20% 3.40% 3.60% 3.80% 4.00% 4.20% 4.40% $ 0 $ 2,000 $ 4,000 $ 6,000 $ 8,000 $ 10,0 0 0 $ 12,0 0 0 2 Q 17 3 Q 17 4 Q 17 3 Q 19 4 Q 19 1 Q 20 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 Net Interest I
Slide 18: Provision for Loan Losses
PROVISION FOR LOAN LOSSES $ 1,303 $ 1,833 $1,228 $ 980 $ 2,627 $ 670 $ 0 $ 500 $ 1,000 $ 1,500 $ 2,000 $ 2,500 $ 3,000 2015 2016 2019 1 Q 20 2017 2018 Provision for Loan Losses 18 $ in 000’s
Slide 19: Balance Sheet Expansion
BALANCE SHEET EXPANSION $ in millions $ 630 $ 674 $ 717 $ 854 $ 1,054 $1,159 $ 466 $ 617 $ 779 $ 822 $ 483 $ 513 $513 $521 $ 627 $ 809 $ 888 $ 407 $400 $ 200 $ 0 $ 600 $ 800 $ 1,000 $ 1,200 $ 1,400 12 / 31 / 2 015 12 / 31 / 2 016 12 / 31 / 2 017 12 / 31 / 2 018 12 / 31 / 2 019 3 / 31 / 2 0 20 A ss e
Slide 20: Loan Portfolio Detail
Loan Portfolio Composition – 3/31/2020 □ Since 2008, number of Commercial/Ag lenders has increased from 4 to 30 □ Total loans increased 13% comparing 3/31/20 to 3/31/19 □ C&I accounts for 9.3% of loan portfolio □ Owner - occupied CRE loans represent 16.3% of total loans R e s i de n t i a l 1 - 4 fa
Slide 21: Deposit Mix - Rolling 8 Quarters
Non Interest C h e c k i n g 25% Interest Bearing C h e c k i n g 15% S a vi n g s 16% M o n ey Ma r k e t 18 % Time C e r t i f i c a t e s 26% 0 % 1 0 0 % 9 0 % 8 0 % 7 0 % 6 0 % 5 0 % 4 0 % 3 0 % 2 0 % 1 0 % 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 Time Certificates Money Market Savings Interest C
Slide 22: Disciplined Credit Culture
22 DISCIPLINED CREDIT CULTURE 0.29% 0.21% 0.45% 0.52% 0.52% 0.84% 0.69% 0.56% 0.60% 0.68% 0.20% 0.10% 0.00% 0.30% 0.40% 0.50% 0.60% 0.70% 0.80% 0.90% 12 / 31 / 2 016 12 / 31 / 2 017 12 / 31 / 2 019 3 / 31 / 2 0 20 Nonperforming Assets/Total Assets E BM T 12/31/2018 Peer Group Peer Group includes PFL
Slide 23: CRE Risk Management
CRE RISK MANAGEMENT □ Executive Board Level Oversight of Approval Process □ Disciplined Underwriting □ Proactive Portfolio Management □ Quarterly Stress Testing of CRE Portfolio □ Independent Credit Review 23
Slide 24: Yield and Cost of Funds
YIELD AND COST OF FUNDS 6.00% 5.00% 4.00% 3.00% 2.00% 1.00% 0.00% 2015Y 1 Q 20 2016Y 2017Y 2018Y 2019Y EBMT Peer Group 6.00% 5.00% 4.00% 3.00% 2.00% 1.00% 0.00% 1 Q 20 Yield on Average Earning Assets Yield on Loans 2015Y 2016Y 2017Y 2018Y 2019Y EBMT Peer Group 0.00% 0.80% 0.60% 0.40% 0.20% 2015Y 201
Slide 25: Capital Strength
CAPITAL STRENGTH □ Authorized the repurchase of up to 100,000 shares of its common stock, representing approximately 1.47% of outstanding shares. ($ in 000s) 2016Y 2017Y 2018Y 2019Y 3/31/2020 Total Assets $ 673,925 $ 716,782 $ 853,903 $ 1,054,260 $ 1,158,600 Total Common Stockholders' Equity $ 59,45
Slide 26: 5 Year Stock Price Performance
Source: S&P Global Market Intelligence as of April 24, 2020 Information reflects the exchange as a result of the conversion and offering 5 YEAR STOCK PRICE PERFORMANCE 26
Slide 27: Eagle Bancorp Montana
Ee EAGLE BANCORP MONTANA
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