Eagle Bancorp, Inc. · NASDAQ:EGBN
Eagle Bancorp — Investor Presentation (June 2022)
31 slides from Eagle Bancorp's investor presentation, Jun 1, 2022
Slide 1: Investor Presentation
Investor Presentation Ticker: EGBN EagleBankCorp.com June 2022
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 45 years in banking 24 years with EGBN Charles Levingston EVP & Chief Financial Officer, Eagle Bancorp & EagleBank 21 years in banking 10 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 March 31, 2022) 32,079,474 Market Capitalization (at close May 26, 2022) $1.59 billion Tangible Book Value per Common Share $36.64 Institutional Ow
Slide 5: Limited Network of Offices
Limited Network of Offices T@ Branch Branch Lending T@_ Loan Office shady Grove Offices Offices © Corporate Headquarters MD vee ee irginia @ Regional Headquarters Parcrotomae | coed Maryland LOUDOUN COUNTY mA MONTGOMERY Rockville i. COUNTY ala w = 6 6 Washington, DC 5 Total 7 Chantilly ‘Tysons Come’
Slide 6: Investment Rationale
Investment Rationale 6 Solid capitalization and conservative capital management Well-managed asset quality Above average peer returns (ROAA) Superior efficiency with limited branch network Recognized expertise in CRE, C&I and residential mortgage lending Strategically positioned in one of the most a
Slide 7: 1st Quarter 2022 Highlights
1st Quarter 2022 Highlights 7 • Increase in loans – Up $48.2 million from the prior quarter-end. • Reversal of the allowance for credit losses – Reversal of $2.8 million. Fifth consecutive quarterly reversal as credit metrics and economy improved. • Reduction in noninterest income – Salaries and emp
Slide 8: Excess liquidity down, loans up
Excess liquidity down, loans up 8 • Assets down as excess liquidity declined in 1st quarter 2022. Cash items used to fund: ‒ Deposit outflow of $396 million ‒ Repaid $150 million FHLB advance • Loans grew again in the 1st quarter of 2022 ‒ Loans increased by $48 million ‒ Unfunded commitments up $55
Slide 9: Loan portfolio benefits from higher rates
Loan portfolio benefits from higher rates 9 • Impact of higher rates (as of 3/31/2022) ‒ $4.1 billion or 57.8% of loans are variable rate. ‒ $1.9 billion or 26.4% of loans have yet to benefit from rising rates. 58.6% of these loans reprice with a 100 bps rate increase. *Based on loans are at amortiz
Slide 10: Asset quality steady, reserves released
Asset quality steady, reserves released 10 *Non-performing assets (NPAs) include loans 90 days past due and still accruing. Note: CECL adoption on January 1, 2020 led to an initial adjustment to the allowance for credit losses of $10.6 million. Charts for Allowance for Credit Losses and NPAs are as
Slide 11: Margin up in Q1 as excess liquidity invested
11 Margin up in Q1 as excess liquidity invested • Impacting the margin ‒ NIM was up 10 bps from the prior quarter primarily from deployment of excess liquidity into securities. Average securities up $0.7 billion from the prior quarter. ‒ Yield on loans was down 10 bps from the prior quarter as highe
Slide 12: Securities portfolio
Securities portfolio 12 • Increased investment in securities ‒ Total investment securities at 3/31/2022, were up $306 million from end of the year ‒ Investment securities as a percent of assets were 26%, up from 22% at year end • Transfer to AFS ‒ Transferred $1.1 billion from AFS to HTM ‒ Reduces i
Slide 13: Efficiency continues to be a strength
Efficiency continues to be a strength 13 • Non-interest income in 1st quarter of 2022 ‒ Reduced gain on sale of mortgages, FHA multi- family income, and gain on sale of securities versus prior quarter. • Non interest expense in 1st quarter of 2022 ‒ One time reduction of $5 million related to share-
Slide 14: Strong returns
Strong returns 14 • Returns ‒ Return on tangible common equity (non- GAAP) negatively impacted by a higher level of capitalization (TCE/TA 10.57% vs. 7.91% peer median) ‒ Return on average assets continues to outpace peers • PPNR ‒ PPNR relatively stable as investments in securities increased *Pleas
Slide 15: Solid capitalization
Solid capitalization 15 Note: Peers are depository institutions with assets from $10-$20 billion as of March 31, 2022 (excludes savings banks, thrifts and mutuals). Source: S&P Global Market Intelligence. *Please refer to Non-GAAP reconciliation and footnotes in the appendices. • Capitalization ‒ Ta
Slide 16: Tangible book, EPS & dividends
Tangible book, EPS & dividends 16 • Tangible book ‒ Book and tangible book declined in the first quarter as rising interest rates lowered marks on AFS securities and increased the unrealized loss recorded in equity on these securities. • Dividend ‒ Quarterly dividend to $0.40 per share ‒ Dividend yi
Slide 17: Deposit mix – 31% non-interest bearing
Deposit mix – 31% non-interest bearing* 17 *Average noninterest bearing deposits to average deposits is 36.1% for the first quarter of 2022. **Core deposits include CDAR’s and ICS reciprocal deposits. Note: Chart is as of period end. • Deposits ‒ Commercial focus drives growth of Noninterest Bearing
Slide 18: Loan mix – 35% C&I and Own Occ. CRE
Loan mix – 35% C&I and Own Occ. CRE 18 • Loan commentary – C&I and Owner Occupied CRE at 34.9% 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 Accoun
Slide 19: Loan Portfolio – Details
Loan Portfolio – Details 19 Note: Data as of March 31, 2022. $ in millions Location C&I Owner Occupied CRE Income Producing CRE Owner Occupied Const. CRE Construction Land Residential Mortgage Consumer TOTAL (ex PPP) % of Total (ex PPP) PPP Total Percent of Total District of Columbia $304.8 $285.0 $
Slide 20: ADC & CRE – Concentration
ADC & CRE – Concentration 20 Note: 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 millions 2020Y 2021Y 1Q 2022 Total ADC portfolio $1,378 $1,
Slide 21: Mortgages & FHA
Mortgages & FHA 21 • Mortgages ‒ Increase in mortgage rates in the 1st quarter reduced locked loans to $137 million ‒ 1Q 2022 about 49% re-fi • FHA Multi-Family ‒ For the 1st quarter, had trade premiums, origination fees and mortgage servicing rights income of $1.65 million. *Locked loans are loans
Slide 22: Appendices
Appendices (EAGLE BANCORB INC. 22
Slide 23: Performance Statistics Summary
Performance Statistics Summary 23 Note: Peers are depository institutions with assets from $10-$20 billion as of March 31, 2022 (excludes savings banks, thrifts and mutuals). There were 42 depository institutions within that range as of March 31, 2022, and all were included in the peer group. Source
Slide 24: Historical Balance Sheets
Historical Balance Sheets 24 $'s in thousands 12/31/2017 12/31/2018 12/31/2019 12/31/2020 12/31/2021 3/31/2022 Compound Growth Rate 5.25 years Assets Cash and Equivalents $190,473 $321,864 $241,973 $1,789,055 $1,714,222 $722,382 28.9% Securities AFS 625,592 807,645 878,557 1,191,187 2,657,561 1,804,
Slide 25: Historical Income Statements
Historical Income Statements 25 $ in thousands, except per share data 2017Y 2018Y 2019Y 2020Y 2021Y 2022 Q1 Total Interest Income $324,034 $393,286 $429,630 $389,986 $364,496 $88,321 Total Interest Expense 40,147 76,293 105,585 68,424 39,982 7,869 Net Interest Income 283,887 316,993 324,045 321,562
Slide 26: Loan Portfolio – Income Producing CRE
Loan Portfolio – Income Producing CRE 26 Note: Data as of March 31, 2022. $ in millions Office Family & Hotel/ Mixed Multi- & Office Res. % of Location Motel Industrial Use Family Condo Retail Condo Other Total Total District of Columbia $188.3 $14.4 $199.1 $340.7 $192.1 $99.0 $88.1 $177.0 $1,298.7
Slide 27: Loan Portfolio – CRE Construction
Loan Portfolio – CRE Construction 27 Note: Data as of March 31, 2022. $ 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 $41.2 $122.7 $52.1 $0.0 $76.8 $0.9 $22.1 $16.8 $332.6 46.8%
Slide 28: Non-GAAP Reconciliation (unaudited)
28 Non-GAAP Reconciliation (unaudited) Note: Per share data is adjusted for - 5:4 stock split 3/31/2000, 7:5 stock split 6/15/2001, 1.3:1 stock split 2/28/2005; 1.3:1 stock split 7/5/2006; 10% stock dividend 10/1/2008 and 10% stock dividend 6/14/2013. $ in thousands, except per share data For the Qt
Slide 29: Non-GAAP Reconciliation (unaudited)
29 Non-GAAP Reconciliation (unaudited) $ in thousands 12/31/2020 12/31/2021 3/31/2022 Total loans, excluding loans held for sale $6,850,863 $7,065,598 $7,113,807 Less: PPP loans (non-GAAP) (67,311) (51,105) (35,744) Total loans, excluding loans held for sale and PPP loans (non-GAAP) $6,783,552 $7,01
Slide 30: Non-GAAP Reconciliation (unaudited)
30 Non-GAAP Reconciliation (unaudited) $ in thousands For the Qtr. 2017Y 2018Y 2019Y 2020Y 2021Y 2022 Q1 Income statement Net interest income $283,887 $316,993 $324,045 $321,562 $324,514 $80,452 PPP accelerated net income (Non-GAAP) - - - - (4,667) - Add: Accelerated interest expense on redemption o
Slide 31: Non-GAAP Reconciliation (unaudited)
31 Non-GAAP Reconciliation (unaudited) Tangible common equity to tangible assets (the "tangible common equity ratio"), tangible book value per common share, and the return on average tangible common equity are non- GAAP financial measures derived from GAAP based amounts. The Company calculates the t