Eagle Bancorp, Inc. · NASDAQ:EGBN
Eagle Bancorp — Investor Presentation (September 2023)
32 slides from Eagle Bancorp's investor presentation, Sep 11, 2023
Slide 1: Investor Presentation September 2023
Investor Presentation EagleBankCorp.com September 2023 Scan here for digital version:
Slide 2: Forward Looking Statements
Forward Looking Statements 2 This presentation contains forward looking statements within the meaning of the Securities and Exchange Act of 1934, as amended, including statements of goals, intentions, and expectations as to future trends, plans, events or results of Company operations and policies a
Slide 3: Biographies
Biographies 3 Susan Riel CEO & President, Eagle Bancorp & EagleBank 47 years in banking 25 years with EGBN Charles Levingston EVP & Chief Financial Officer, Eagle Bancorp & EagleBank 23 years in banking 11 years with EGBN Executive Vice President and Chief Financial Officer of the Company and Bank s
Slide 4: Summary Statistics
Summary Statistics 4 Total Assets $ billion Total Loans $ billion Total Deposits $ billion Tangible Common Equity $ billion Shares Outstanding (at close June 30, 2023) 29,912,082 Market Capitalization (at close September 7, 2023) $695 million Tangible Book Value per Common Share $37.29 Institutional
Slide 5: Limited Network of Offices
Limited Network of Offices LoupouN couNTY MONTGOMERY ‘COUNTY ‘Tysons Corner PRINCE GEORGE'S ‘COUNTY FAIRFAX COUNTY © wmrone "corporate Headquarters @ regionat Headquarters AD. Lean Production omrice VIRGINIA @® Batiston 4420N.Fairtax Drive. Artington. VA 22203 @® Fairtax 11165 Fairtax Boulevard, Fai
Slide 6: Environmental, Social & Governance
Environmental, Social & Governance 6 Diversity, Equity & Inclusion Council • Employee Resource Groups (ERGs) to foster a diverse and inclusive workplace • Mentorship Program that formally pairs mentors with mentees • Scholarship awards to EagleBank teammates Notable recent financings • August 2023 -
Slide 7: Investment Rationale
Investment Rationale 7 Solid capitalization and prudent capital management Well-managed asset quality Superior efficiency with limited branch network Recognized expertise in CRE, C&I and construction lending Strategically positioned in one of the most attractive markets in the U.S. Dedicated, divers
Slide 8: 2nd Quarter 2023 Highlights
2nd Quarter 2023 Highlights 8 • Dividend – Paid a quarterly dividend of $0.45 per share. • Stock repurchases – Repurchased 1.2 million shares at an average price of $24.48 per share (including commissions) totaling an aggregate of $29.4 million • Robust capital levels • Tangible common equity to tan
Slide 9: Moderated growth
Moderated growth 9 • Asset Trend – Down from 2021 peak as interest bearing deposits and other short-term investments returned to pre-pandemic levels • Loans - Up $29 million (0.04%) from the prior quarter- end and up 1.5% annualized • Unfunded commitments – Down $120 million from the prior quarter N
Slide 10: Renewed focus on deposits
10 Renewed focus on deposits • Improved funding mix in 2nd quarter ‒ Deposits up $255 million ‒ ST Borrowings down $277 million • Deposit betas – Measuring from the 1st quarter of 2022, the beta on interest bearing deposits of 75% does not include the benefit of average noninterest bearing deposits
Slide 11: Deposit mix – 26% noninterest bearing
Deposit mix – 26% noninterest bearing 11 *Core deposits include CDAR’s and ICS reciprocal deposits. • Increase in wholesale CDs in the 2nd quarter enabled reduction in 1st quarter borrowings • Average noninterest bearing deposits were 30.1% of average deposits in the 2nd quarter • Increased focus on
Slide 12: Asset quality metrics remain strong
Asset quality metrics remain strong 12 *Excludes loans held for sale. **Non-performing assets (“NPAs”) include loans 90 days past due and still accruing. Charts for Allowance for Credit Losses and NPAs are as of period end. Net Charge Offs (“NCO”) are annualized for periods of less than a year. Long
Slide 13: Loan breakdown and classification trends
$ in millions Income Producing CRE % of Loans Hotel / Motel $401 5.2% Industrial 139 1.8% Mixed Use 328 4.2% Multi-Family 819 10.5% Office & Office Condo 976 12.5% Retail 426 5.5% Family & Residential Condo 104 1.3% Other 893 11.5% Total Income Producing CRE $4,086 52.5% Income Producing CRE Loans -
Slide 14: Loan portfolio benefits from higher rates
Loan portfolio benefits from higher rates 14 • LIBOR – All remaining loans that were still tied to LIBOR based rates on June 30, 2023 were transitioned to their appropriate fallback or replacement rate on July 3, 2023. • Variable Rate Loans - $4.8 billion or 61.6% of loans are variable rate at quart
Slide 15: Securities provide cash & liquidity
Securities provide cash & liquidity 15 • Investment securities ‒ Down net of $66 million from prior quarter primarily from principal paydowns and maturities received, and lower carrying values on AFS securities. ‒ Portfolio positioned to manage pledging and liquidity needs ‒ 1st half 2023 averaged $
Slide 16: Efficiency better than peers
Efficiency better than peers 16 • Efficiency – Branch light model continues to create superior efficiency versus peers • Net interest income – Down from the prior quarter on the impact of higher rates paid on deposits and the full impact of changes in the funding mix beginning late in the 1st quarte
Slide 17: Returns improved from prior quarter
Returns improved from prior quarter 17 • PPNR – Up from the prior quarter on higher noninterest income and lower noninterest expenses • Return on Average Tangible Common Equity – Disadvantaged by strong capital position with TCE/TA at 10.21% vs. peer median of 8.08% *Please refer to the Non-GAAP rec
Slide 18: Solid capitalization
Solid capitalization 18 *Please refer to Non-GAAP reconciliation and footnotes in the appendices. Note: Peers are depository institutions with assets from $7-$20 billion as of June 30, 2023 (excludes savings banks, thrifts and mutuals). Source: S&P Global Market Intelligence. • Capitalization ‒ Tang
Slide 19: Tangible book, EPS & dividends
Tangible book, EPS & dividends 19 • Tangible book ‒ AOCI impact on TBVPS is $6.41 at June 30, 2023. • Dividend ‒ $1.80 per share for last four quarters *Chart for Tangible Book Value Per Share is as of period end. Please refer to Non-GAAP reconciliation and footnotes in the appendices. **2022Q2 adju
Slide 20: Loan mix – 33% C&I and Own Occ. CRE
Loan mix – 33% C&I and Own Occ. CRE 20 – C&I and Owner Occupied CRE at 32.9% of portfolio are more of a focus than other local banks – C&I Loan Portfolio is predominantly variable rate loans – Owner Occupied Loans are key to small and mid-market relationships – DDA Operating Accounts of C&I relation
Slide 21: Loan Portfolio – Details
Loan Portfolio – Details 21 Note: Data as of June 30, 2023. $ in millions Location C&I Owner Occupied CRE Income Producing CRE Owner Occupied Const. CRE Construction Land Residential Mortgage Consumer TOTAL % of Total District of Columbia $310.7 $289.5 $1,340.5 $72.4 $296.9 $30.0 $35.3 $13.8 $2,389.
Slide 22: ADC & CRE (Bank Level) – Concentration
ADC & CRE (Bank Level) – Concentration 22 Note: Acquisition, Development and Construction (“ADC”) and CRE concentration ratios represents concentration as a percentage of consolidated risk-based capital. CRE excludes owner occupied. Charts and data are as of period end. CRE Details ADC Details $ in
Slide 23: Appendices
Appendices " @EAGLE BANCORB INC. 23
Slide 24: Historical Balance Sheets
Historical Balance Sheets 24 $'s in thousands 12/31/2018 12/31/2019 12/31/2020 12/31/2021 12/31/2022 6/30/2023 Assets Cash and Equivalents $321,864 $241,973 $1,789,055 $1,714,222 $311,854 $187,918 Securities AFS* 807,645 878,557 1,191,187 2,657,561 1,663,733 1,581,788 Securities HTM - - - - 1,093,37
Slide 25: Historical Income Statements
Historical Income Statements 25 *Six months ended June 30, 2023. **Included in Other Noninterest Expenses. ***Please refer to Non-GAAP reconciliation and footnotes in the appendices. $ in thousands, except per share data 2018Y 2019Y 2020Y 2021Y 2022Y 2023 YTD* Total Interest Income $393,286 $429,630
Slide 26: Loan Portfolio – Income Producing CRE
Loan Portfolio – Income Producing CRE 26 Note: Data as of June 30, 2023. $ in millions Office Family & Hotel/ Mixed Multi- & Office Res. % of Location Motel Industrial Use Family Condo Retail Condo Other Total Total District of Columbia $140.4 $5.0 $225.8 $423.2 $234.9 $82.5 $74.6 $154.1 $1,340.5 32
Slide 27: Loan Portfolio – CRE Construction
Loan Portfolio – CRE Construction 27 Note: Data as of June 30, 2023. $ in millions Office Single & Multi- & Office Hotel/ Mixed Residential % of Location 1-4 Family Family Condo Motel Use Retail Condo Other Total Total District of Columbia $32.3 $167.0 $0.0 $0.0 $68.7 $0.9 $14.9 $13.1 $296.9 39.2% S
Slide 28: Non-GAAP Reconciliation (unaudited)
28 Non-GAAP Reconciliation (unaudited) $ in thousands, except per share data 2022 Q2 2022 Q3 2022 Q4 2023 Q1 2023 Q2 Tangible common equity Common shareholders' equity $1,252,720 $1,219,771 $1,228,321 $1,241,958 $1,219,766 Less: Intangible assets (104,257) (104,240) (104,233) (104,226) (104,220) Tan
Slide 29: Non-GAAP Reconciliation (unaudited)
29 Non-GAAP Reconciliation (unaudited) $ in thousands 2022 Q2 2022 Q3 2022 Q4 2023 Q1 2023 Q2 Average tangible common equity Common shareholders' equity $1,281,742 $1,271,753 $1,233,705 $1,240,978 $1,245,647 Less: Intangible assets (104,246) (104,253) (104,238) (104,231) (104,224) Average tangible c
Slide 30: Non-GAAP Reconciliation (unaudited)
30 Non-GAAP Reconciliation (unaudited) $ in thousands 2022 Q2 2022 Q3 2022 Q4 2023 Q1 2023 Q2 Efficiency Ratio Net interest income $82,918 $83,897 $85,600 $75,024 $71,811 Noninterest income 5,564 5,308 5,329 3,700 8,595 Revenue $88,482 $89,205 $90,929 $78,724 $80,406 Noninterest expense $58,962 $36,
Slide 31: Non-GAAP Reconciliation (unaudited)
31 Non-GAAP Reconciliation (unaudited) $ in thousands, except per share data 2022 Q2 2022 Net Income Net income $15,696 $140,930 Reversal: Accrual reduction for former CEO and Chairman - (5,018) Reversal: Penalty, disgorgement & prejudgment interest 22,874 22,874 Adjusted net income (non-GAAP) $38,5
Slide 32: Non-GAAP Reconciliation (unaudited)
32 Non-GAAP Reconciliation (unaudited) Tangible common equity to tangible assets (the "tangible common equity ratio"), tangible book value per common share, tangible book value per common share excluding accumulated other comprehensive income (“AOCI”), and the return on average tangible common equit
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