Eagle Bancorp, Inc. · NASDAQ:EGBN
Eagle Bancorp — Investor Presentation (February 2023)
32 slides from Eagle Bancorp's investor presentation, Feb 15, 2023
Slide 1: Investor Presentation February 2023
Investor Presentation EagleBankCorp.com February 2023
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 46 years in banking 25 years with EGBN Charles Levingston EVP & Chief Financial Officer, Eagle Bancorp & EagleBank 22 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 December 31, 2022) 31,346,903 Market Capitalization (at close February 2, 2023) $1.52 billion Tangible Book Value per Common Share $35.86 Instituti
Slide 5: Limited Network of Offices
Limited Network of Offices LOUDOUN COUNTY cay Tyeons Corner FAIRFAX COUNTY MONTGOMERY ‘COUNTY PRINCE GEORGE'S ‘COUNTY VIRGINIA @® Alexandria 277s, Washington Street, Alexandra, VA 22314 6 Ballston 4420 N. Fairfax Drive, Arlington, VA 22203 @ Chantitty 13926 Metrotech Drive. Chantilly, VA 20151 @ 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 financing • February 2023
Slide 7: Investment Rationale
Investment Rationale 7 Solid capitalization and conservative capital management Well-managed asset quality History of above average peer returns (ROAA) Superior efficiency with limited branch network Recognized expertise in CRE, C&I and construction lending Strategically positioned in one of the mos
Slide 8: 4th Quarter 2022 Highlights
4th Quarter 2022 Highlights 8 • Earnings, revenue and efficiency: 1.49% ROAA, 1.83% PPNR* and 42.8% efficiency ratio* • Loan growth continued – Up $331.1 million from the prior quarter-end, up 4.5% from prior quarter and up 18.1% annualized for the quarter • Asset quality metrics stayed strong – NPA
Slide 9: Excess liquidity down, loans up
Excess liquidity down, loans up 9 • Assets - Loans at 68% of assets, up from 59% at year-end 2021 • Loans - Up $570 million from year-end 2021 • Liquidity – Has continued to decrease in Q1 2023 due primarily to an increase in deposit disintermediation • Unfunded commitments - Up $514 million from ye
Slide 10: Asset quality metrics remain strong
Asset quality metrics remain strong 10 *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 track record of strong underwri
Slide 11: Margin up, renewed focus on deposits
11 Margin up, renewed focus on deposits • NIM was up 12 bps from the prior quarter ‒ Yield on average earning assets up 72 bps ‒ Cost of funds up 60 bps • Deposit betas – Measuring from the 1st quarter of 2022, the beta on interest bearing deposits of 68% does not include the benefit of average noni
Slide 12: Loan portfolio benefits from higher rates
Loan portfolio benefits from higher rates 12 • Variable Rate Loans - $4.7 billion or 61.6% of loans are variable rate at quarter-end. • Repricing (fixed or variable) ‒ $3.6 billion or 47.5% of loans reprice within 30 days ‒ $1.1 billion or 13.9% of loans reprice within 1 year *Based on loans at amor
Slide 13: Securities provide cash & liquidity
Securities provide cash & liquidity 13 • Investment securities ‒ Down net of $72 million from prior quarter primarily from principal paydowns and maturities received, offset by higher carrying values on AFS securities. ‒ Portfolio positioned to manage pledging and liquidity needs ‒ 12 month projecte
Slide 14: Efficiency better than peers
Efficiency better than peers 14 • Efficiency – Branch light model continues to create superior efficiency versus peers • Net interest income – Up on higher loan balances and yields, partially offset by higher funding costs • Noninterest income – Loan fees and residential mortgage income remained low
Slide 15: Returns holding up
Returns holding up 15 • PPNR – The 3 quarters without one-time items are in $49-$53 million range. • Return on Average Tangible Common Equity – Disadvantaged by strong capital position with TCE/TA at 10.18% vs. peer median of 7.73% Note: PPNR/Average Assets and returns are annualized. *Please refer
Slide 16: Solid capitalization
Solid capitalization 16 Note: Peers are depository institutions with assets from $7-$20 billion as of December 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 ‒
Slide 17: Tangible book, EPS & dividends
Tangible book, EPS & dividends 17 • Tangible book ‒ As rates pulled back in the 4th quarter, carrying values of AFS securities improved reducing the AOCI impact on TBVPS to $6.36. • Dividend ‒ Quarterly dividend to $0.45 per share ‒ Dividend yield of 3.71%(1) competitive with peers ‒ 4th Quarter 202
Slide 18: Deposit mix – 36% non-interest bearing
Deposit mix – 36% non-interest bearing 18 *Core deposits include CDAR’s and ICS reciprocal deposits. Note: Chart is as of period end. ‒ Average noninterest bearing deposits were 40.9% of average deposits in the 4th quarter ‒ Increased focus on commercial relationships to drive growth of noninterest
Slide 19: Loan mix – 34% C&I and Own Occ. CRE
Loan mix – 34% C&I and Own Occ. CRE 19 – C&I and Owner Occupied CRE at 34.0% 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 20: Loan Portfolio – Details
Loan Portfolio – Details 20 Note: Data as of December 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 $377.2 $305.
Slide 21: ADC & CRE – Concentration
ADC & CRE – Concentration 21 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 2022 Q2 2022 Q3 2022 Q4 Total CRE portfolio 4,425$
Slide 22: Mortgages & FHA
Mortgages & FHA 22 • Residential Mortgage Division – Will cease originating mortgages early in the 2nd quarter. • FHA Multi-Family – Trade premiums, origination fees and mortgage servicing rights income of $1.8 million year-to-date through 12/31/2022. *Locked loans are loans for which an application
Slide 23: Appendices
Appendices " @EAGLE BANCORB INC. 23
Slide 24: Performance Statistics Summary
Performance Statistics Summary 24 Note: Peers are depository institutions with assets from $7-$20 billion as of December 31, 2022 (excludes savings banks, thrifts and mutuals). There were 70 depository institutions within that range as of December 31, 2022, and all were included in the peer group. S
Slide 25: Historical Balance Sheets
Historical Balance Sheets 25 $'s in thousands 12/31/2017 12/31/2018 12/31/2019 12/31/2020 12/31/2021 12/31/2022 Annualized Growth Rate 5 years Assets Cash and Equivalents $190,473 $321,864 $241,973 $1,789,055 $1,714,222 $311,854 10.4% Securities AFS* 625,592 807,645 878,557 1,191,187 2,657,561 1,663
Slide 26: Historical Income Statements
Historical Income Statements 26 *Please refer to Non-GAAP reconciliation and footnotes in the appendices. $ in thousands, except per share data 2017Y 2018Y 2019Y 2020Y 2021Y 2022Y Total Interest Income $324,034 $393,286 $429,630 $389,986 $364,496 $424,613 Total Interest Expense 40,147 76,293 105,585
Slide 27: Loan Portfolio – Income Producing CRE
Loan Portfolio – Income Producing CRE 27 Note: Data as of December 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 $186.4 $5.0 $199.4 $418.0 $196.2 $79.9 $78.8 $196.2 $1,359.
Slide 28: Loan Portfolio – CRE Construction
Loan Portfolio – CRE Construction 28 Note: Data as of December 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 $41.1 $128.2 $53.4 $0.0 $106.7 $0.9 $15.4 $14.6 $360.3 4
Slide 29: Non-GAAP Reconciliation (unaudited)
29 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 2021Q4 202
Slide 30: Non-GAAP Reconciliation (unaudited)
30 Non-GAAP Reconciliation (unaudited) $ in thousands 2021 Q4 2022 Q1 2022 Q2 2022 Q3 2022 Q4 Income statement Net interest income $78,186 $80,452 $82,918 $83,897 $85,600 Non-interest income 10,574 7,453 5,564 5,308 5,329 Non-interest expense (39,309) (31,012) (58,962) (36,206) (38,918) Pre-provisio
Slide 31: Non-GAAP Reconciliation (unaudited)
31 Non-GAAP Reconciliation (unaudited) $ in thousands, except per share data 2022 Q1 2022 Q2 2022 2021 Net income $45,744 $15,696 $140,930 $176,691 Reversal: Accrual reduction for former CEO and Chairman ($5,018) - ($5,018) - Reversal: Penalty, disgorgement & prejudgment interest - 22,874 22,874 - A
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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