Eagle Bancorp, Inc. · NASDAQ:EGBN
Eagle Bancorp — Investor Presentation (November 2023)
26 slides from Eagle Bancorp's investor presentation, Nov 14, 2023
Slide 1: Investor Presentation November 2023
Investor Presentation EagleBankCorp.com November 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: Washington DC Market
Washington DC Market LoupouN couNTY MONTGOMERY ‘COUNTY ‘Tysons Corner PRINCE GEORGE'S ‘COUNTY FAIRFAX COUNTY © wmrone "corporate Headquarters @ regionat Headquarters AD. Lean Production omrice VIRGINIA @® Batiston 44200. Fairtax Drive. Arington. VA 22203 @® Fairtax 11165 Fairtax Boulevard, Fairtax,
Slide 4: Investment Rationale
Investment Rationale 4 Strategically positioned in one of the most attractive markets in the U.S. Solid capitalization and prudent capital management Well-managed asset quality Superior efficiency with optimized branch network Recognized expertise in CRE, C&I and construction lending Dedicated, dive
Slide 5: Key Strategic Objectives
Key Strategic Objectives 5 • Core Deposit Growth o Focus on deposit growth from existing and new CRE/C&I customers using our lending capacity to entice core deposit growth and stability of deposits. o Enhance our treasury management program and product suite to build and maintain C&I relationships.
Slide 6: Biographies
Biographies 6 Susan Riel CEO & President, Eagle Bancorp & EagleBank 47 years in banking 25 years with EGBN Eric Newell EVP & Chief Financial Officer, Eagle Bancorp 21 years in banking <1 year with EGBN Norman R. Pozez Executive Chair - Board of Directors 15 years with EGBN Charles Levingston EVP & C
Slide 7: Summary Statistics
Summary Statistics 7 Total Assets $ billion Total Loans $ billion Total Deposits $ billion Tangible Common Equity $ billion Shares Outstanding (at close September 30, 2023) 29,917,982 Market Capitalization (at close November 8, 2023) $649 million Tangible Book Value per Common Share $37.12 Instituti
Slide 8: Net Income Walk
Net Income Walk 8 Net Income Drivers Net interest income Net interest income down $1.1 million, driven by a continued shift of deposit balances from noninterest bearing to interest bearing accounts. Interest income was also negatively impacted by the reversal of $1.6 million from a loan entering non
Slide 9: Performance Measures
Performance Measures 9 *Please refer to the Non-GAAP reconciliation and footnotes in the appendices. PPNR/Average Assets and returns are annualized. See Non-GAAP reconciliation for calculation of annualized PPNR. Note: Proxy Peers are as disclosed in the May 2023 proxy statement..
Slide 10: Net Interest Income & Margin
(in millions) Net Interest Income Net Interest Income & Margin 3.02% 3.14% 2.17% 249% 2.43% 7 - 2022Q3 = 20224). 2023Q1 20232 mmm Net Interest Income 9 —®=NIM $70.7 202303 Drivers of Net Interest Income Change $71,811 $(188) i $4,827 $70,719 “ || $(2,731) IE Assets Cost of Funds NILQ3 NIL Q2 IB Liab
Slide 11: Yield/Cost Components
11 Yield/Cost Components *For betas, the denominator is the change in the Average Effective Fed Funds rate for the quarter, starting with 2022 Q1. **Beginning in the second quarter of 2023, the Company revised its cost of funds methodology to use a daily average calculation where interest expense on
Slide 12: Funding
Funding 12 Funding Improvement Deposits Deposits were up $658 million for the quarter, primarily driven by a growth in savings, money market and time deposits. Brokered funds were down $38 million and were 29.1% of deposits. The long-term strategy for deposits is to increase core deposits and reduce
Slide 13: Deposit Mix and Trend
Deposit Mix and Trend 13 *Core deposits include CDAR’s and ICS reciprocal deposits. Brokered CDs Brokered money market Core CDs* Core savings and money market Interest bearing transaction Noninterest bearing
Slide 14: Loan Mix and Trend
Loan Mix and Trend 14 Office Income producing CRE (excluding office if applicable) Commercial Owner-Occupied CRE Construction – comm& residential. Home Equity Other Consumer Construction C&I (owner-occupied)
Slide 15: Loan Type and Classification
15 Loan Type and Classification $ in millions Balance % of Hotel/Motel $400 9.6% Industrial 139 3.4% Mixed Use 378 9.1% Multifamily 820 19.8% Office & Office Condo 950 22.9% Retail 430 10.4% Single/1-4 Family & Res. Condo 113 2.7% Other 917 22.1% Total $4,147 100.0% Income Producing CRE by Type - 9/
Slide 16: Asset Quality Metrics
Asset Quality Metrics 16 *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.
Slide 17: Investment Portfolio
Investment Portfolio 17 Investment portfolio strategy • Portfolio positioned to manage liquidity and pledging needs • Cash flow (principal and interest) from portfolio averaged $69 million per quarter YTD • Cash flow projected principal only: o 2024 - $326 million o 2025 - $375 million • Total secur
Slide 18: Tangible Book Value Walk
Tangible Book Value Walk 18 Please refer to Non-GAAP reconciliation and footnotes in the appendices.
Slide 19: Tangible Book Value Per Share
Tangible Book Value Per Share 19 Per share data is as of period end. Please refer to Non-GAAP reconciliation and footnotes in the appendices. The CAGR for Book Value Per Share with AOCI included was 1.5% and excluded was 8.1% for the period from December 31, 2020, through September 30, 2023. Book va
Slide 20: Appendices
Appendices " @EAGLE BANCORB INC. 20
Slide 21: Loan Portfolio – Details
Loan Portfolio – Details 21 Note: Data as of September 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 Washington DC $346.0 $294.4 $1,332.4 $67.1 $315.2 $30.5 $35.8 $14.3 $2,435.7
Slide 22: Loan Portfolio – Income Producing CRE
Loan Portfolio – Income Producing CRE 22 Note: Data as of September 30, 2023. $ in millions Location Hotel/Motel Industrial Mixed Use Multifamily Office Retail Other TOTAL % of Total Washington DC $139.6 $5.0 $276.0 $354.0 $232.5 $82.5 $79.5 $163.3 $1,332.4 32.1% Suburban Washington Montgomery - 24.
Slide 23: Loan Portfolio – CRE Construction
Loan Portfolio – CRE Construction 23 Note: Data as of September 30, 2023. $ in millions Location Single & 1-4 Family Multifamily Office Hotel/Motel Mixed Use Retail Residential Condo Other TOTAL % of Total Washington DC $28.1 $189.4 $0.0 $0.0 $70.8 $1.3 $11.0 $14.6 $315.2 39.3% Suburban Washington M
Slide 24: Non-GAAP Reconciliation (unaudited)
24 Non-GAAP Reconciliation (unaudited) $ in thousands 2022 Q3 2022 Q4 2023 Q1 2023 Q2 2023 Q3 Average tangible common equity Common shareholders' equity $1,271,753 $1,233,705 $1,240,978 $1,245,647 $1,235,162 Less: Intangible assets (104,253) (104,238) (104,231) (104,224) (104,639) Average tangible c
Slide 25: Non-GAAP Reconciliation (unaudited)
25 Non-GAAP Reconciliation (unaudited) $ in thousands 2022 Q3 2022 Q4 2023 Q1 2023 Q2 2023 Q3 Efficiency Ratio Net interest income $83,897 $85,600 $75,024 $71,811 $70,719 Noninterest income 5,308 5,329 3,700 8,595 6,347 Revenue $89,205 $90,929 $78,724 $80,406 $77,066 Noninterest expense $36,206 $38,
Slide 26: Non-GAAP Reconciliation (unaudited)
26 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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