Eagle Bancorp, Inc. · NASDAQ:EGBN
Eagle Bancorp — Investor Presentation (November 2022)
31 slides from Eagle Bancorp's investor presentation, Nov 10, 2022
Slide 1: Investor Presentation November 2022
Investor Presentation Ticker: EGBN EagleBankCorp.com November 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 46 years in banking 25 years with EGBN Charles Levingston EVP & Chief Financial Officer, Eagle Bancorp & EagleBank 22 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 $10.7 billion Total Loans $7.3 billion Total Deposits $8 . 8 billion Tangible Common Equity $1. 1 billion Shares Outstanding (at close September 30, 2022) 32,082,321 Market Capitalization (at close October 28, 2022) $1.45 billion Tangible Book Value per Common Share
Slide 5: Limited Network of Offices
Limited Network of Offices 5 Branch Lending Offices Offices Virginia 5 1 Maryland 6 3 Washington, DC 5 1 Total 16 5
Slide 6: Investment Rationale
Investment Rationale 6 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 7: 3rd Quarter 2022 Highlights
3rd Quarter 2022 Highlights 7 • Loan growth continued – Up $149.8 million from the prior quarter-end, up 2.1% from prior quarter and 8.4% annualized • Asset quality metrics stayed strong – NPAs/total assets of 0.09% at quarter-end and small net recovery for the quarter • Allowance for credit losses/
Slide 8: Excess liquidity down, loans up
Excess liquidity down, loans up 8 • Assets - Down from prior year end, as excess liquidity in interest bearing deposits and other short-term investments were down, but loans and unfunded commitments were up • Loans - Up $149.8 million in Q3 ‒ Up 2.1% from prior quarter ‒ Up 8.4% on an annualized bas
Slide 9: Asset quality metrics remain strong
0.08% 0.07% 0.03% -0.04% 0.00% 2021Q3 2021Q4 2022Q1 2022Q2 2022Q3 NCO / Average Loans 0.31% 0.26% 0.23% 0.19% 0.09% 2021Q3 2021Q4 2022Q1 2022Q2 2022Q3 NPAs* / Assets Asset quality metrics remain strong 9 *Non-performing assets (NPAs) include loans 90 days past due and still accruing. Charts for Allo
Slide 10: Margin up, renewed focus on deposits
10 Margin up, renewed focus on deposits • NIM was up 8 bps from the prior quarter ‒ Yield on earning assets up 62 bps and cost of funds up 54 bps • Deposit betas – Measuring from the 1st quarter of 2022, the beta on interest bearing deposits of 64% does not include the benefit of average noninterest
Slide 11: Loan portfolio benefits from higher rates
Loan portfolio benefits from higher rates 11 • Variable Rate Loans - $4.4 billion or 60.2% of loans are variable rate. • Repricing (fixed or variable) ‒ $3.4 billion or 46.8% of loans reprice within 30 days and ‒ $1.0 billion or 13.5% of loans reprice within 1 year • Floors - Almost all variable rat
Slide 12: Securities provide cash & liquidity
Securities provide cash & liquidity 12 • Investment securities ‒ Down $135 million from prior quarter primarily from lower carrying values on AFS securities ‒ Portfolio positioned to manage pledging and liquidity needs ‒ 12 month projected cash flow $29.5 million per month principal and interest • H
Slide 13: Efficiency back to normal
Efficiency back to normal 13 • Efficiency – Improvement over the last two quarters of 2021 (before one-time items in 1Q and 2Q 2022) • Net interest income – Up on higher loan balances and yields, partially offset by higher funding costs • Noninterest income – Loan fees down and residential mortgage
Slide 14: Returns holding up
Returns holding up 14 • PPNR/Assets – Up to 1.85% as revenue stable at $53 million and average assets down • Return on Average Tangible Common Equity – Disadvantaged by strong capital position with TCE/TA at 10.52% vs. peer median of 7.67% 1.46% 1.32% 1.46% 0.54% 1.29% 1.32% 1.23% 1.15% 1.21% 1.25%
Slide 15: Solid capitalization
Solid capitalization 15 Note: Peers are depository institutions with assets from $7-$20 billion as of September 30, 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 16: Tangible book, EPS & dividends
$1.36 $1.30 $1.42 $0.49 $1.16 $1.36 $1.30 $1.27 $1.20 $1.16 2021Q3 2021Q4 2022Q1 2022Q2 2022Q3 Earnings per Share (diluted) Report and Adjusted EPS, Reported EPS, Adjusted* Tangible book, EPS & dividends 16 • Tangible book ‒ Book and tangible book values declined in the first three quarters of 2022
Slide 17: Deposit mix – 33% non-interest bearing
Deposit mix – 33% non-interest bearing 17 *Core deposits include CDAR’s and ICS reciprocal deposits. Note: Chart is as of period end. ‒ Average noninterest bearing deposits were 38.4% of average deposits in the 3rd quarter ‒ Increased focus on commercial relationships to drive growth of noninterest
Slide 18: Loan mix – 34% C&I and Own Occ. CRE
Loan mix – 34% C&I and Own Occ. CRE 18 – C&I and Owner Occupied CRE at 34.3% 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 19: Loan Portfolio – Details
Loan Portfolio – Details 19 Note: Data as of September 30, 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 $336.0 $303
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 2021 Q4 2022 Q2 2022 Q3 Total ADC portfolio 1,508$
Slide 21: Mortgages & FHA
Mortgages & FHA 21 • Mortgages –3rd quarter mix was over 90% purchase mortgage • FHA Multi-Family – Trade premiums, origination fees and mortgage servicing rights income of $1.7 million year-to-date through 9/30/2022. *Locked loans are loans for which an application is received and an interest rate
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 $7-$20 billion as of September 30, 2022 (excludes savings banks, thrifts and mutuals). There were 72 depository institutions within that range as of September 30, 2022, and all were included in the peer group.
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 9/30/2022 Annualized Growth Rate 4.75 years Assets Cash and Equivalents $190,473 $321,864 $241,973 $1,789,055 $1,714,222 $144,175 -5.7% Securities AFS* 625,592 807,645 878,557 1,191,187 2,657,561 1,6
Slide 25: Historical Income Statements
Historical Income Statements 25 $ in thousands, except per share data 2017Y 2018Y 2019Y 2020Y 2021Y 2022 YTD* Total Interest Income $324,034 $393,286 $429,630 $389,986 $364,496 $295,483 Total Interest Expense 40,147 76,293 105,585 68,424 39,982 48,216 Net Interest Income 283,887 316,993 324,045 321,
Slide 26: Loan Portfolio – Income Producing CRE
Loan Portfolio – Income Producing CRE 26 Note: Data as of September 30, 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 $187.4 $5.0 $210.1 $317.7 $192.6 $80.5 $81.2 $204.9 $1,279
Slide 27: Loan Portfolio – CRE Construction
Loan Portfolio – CRE Construction 27 Note: Data as of September 30, 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 $39.0 $131.6 $52.9 $0.0 $97.0 $0.9 $15.4 $7.8 $344.6 44
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 2021Q3 202
Slide 29: Non-GAAP Reconciliation (unaudited)
29 Non-GAAP Reconciliation (unaudited) $ in thousands 2021 Q3 2021 Q4 2022 Q1 2022 Q2 2022 Q3 Efficiency Ratio Net interest income $79,045 $78,186 $80,452 $82,918 $83,897 Noninterest income 8,299 10,574 7,453 5,564 5,308 Revenue $87,344 $88,760 $87,905 $88,482 $89,205 Noninterest expense $36,375 $39
Slide 30: Non-GAAP Reconciliation (unaudited)
30 Non-GAAP Reconciliation (unaudited) $ in thousands, except per share data 2022 Q1 2022 Q2 Net income $45,744 $15,696 Reversal: Accrual reduction for former CEO and Chairman ($5,000) - Reversal: Penalty, disgorgement & prejudgment interest - 22,874 Adjusted net income (non-GAAP) $40,744 $38,570 Ea
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, tangible book value per common share excluding accumulated other comprehensive income (“AOCI”), and the return on average tangible common equit
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