EJF Investments Ltd GBP · LSE:EJFI
EJF Investments Ltd GBP — EJF Investments — Investor Presentation (October 2023)
25 slides from EJF Investments Ltd GBP's investor presentation, October 2023
Slide 1: EJF Investments Limited Investor Presentation
EJF Investments Limited Investor Presentation October 2023 www.ejfi.com Ticker: EJFI LN For professional investors only // Not for public distribution
Slide 2: Overview
Overview The Opportunity Managed by EJF Investments Ltd (“EJFI” or the “Company”, together with its EJF Capital LLC (“EJF”) is a global alternative asset management subsidiary the “Group”) : firm focused primarily on regulatory event-driven investing within • has the objective to provide shareholder
Slide 3: Overview
Overview Cumulative NAV AND SHARE PRICE Total Return1 (%) 9.14% 3m 6m 1y 3y 5y ITD EJFI (share price)* (5.16) (14.31) (2.98) 17.23 (12.53) 18.05 Annualised Total Return since inception1 EJFI (NAV)* (6.10) (9.57) (6.99) 17.38 21.74 74.86 74.86% * inclusive of dividends Total Return since inception1 •
Slide 4: Portfolio Composition
Portfolio Composition Group assets as at 30 June 20231 US Banks Securitisations & Related Investments debt 3.8% ▪ £79.5 million investment in the CDO Equity Tranches of seven securitisations Other Assets sponsored by EJF Capital LLC 0.5% ▪ £6.8 million investment in EJF CDO Manager LLC (49% ownershi
Slide 5: Securitisation and Related Investments
Securitisation and Related Investments Securitisation and Related Investments represented approximately 71.5% of the Group’s assets as of 30 June 2023 and consists of : CDO Equity Tranches The investments into the equity tranches of 7 CDOs, via EJF Investments LP, provide the Company exposure £79.5m
Slide 6: CDO Equity Tranches as of 30 June 2023
CDO Equity Tranches as of 30 June 2023 Please see Legal Disclosures on pages 21-24 5
Slide 7: Diversification of underlying exposure
Diversification of underlying exposure Below is a summary of geographic diversification of bank and insurance company debt based on the headquarters of the underlying collateral issuers in TFINS 2017-2, TFINS 2018-1, TFINS 2018-2, TFINS 2019-1, TFINS 2019-2, TFINS 2020-1 and TFINS 2020-2 as of 30 Ju
Slide 8: Banking Turmoil in the First Half of 2023
Banking Turmoil in the First Half of 2023 • Silvergate Bank, Silicon Valley Bank, and Signature Bank all had outsized exposures, if not focusing their entire business models, on serving the digital assets, venture-backed companies, or other technology-related industries. WHY THE FAILED • Silicon Val
Slide 9: Banking Turmoil in the First Half of 2023
Banking Turmoil in the First Half of 2023 Silvergate Capital Corporation (“SI”) / Silvergate Bank: SVB Financial Group (“SIVB”) / Silicon Valley Bank (“SVB”): • SI focused almost entirely on serving the digital asset industry. With the turmoil in • SIVB primarily served customers in the technology a
Slide 10: Banking Turmoil in the First Half of 2023
Banking Turmoil in the First Half of 2023 Silvergate Capital Corporation (“SI”) / Silvergate Bank: SVB Financial Group (“SIVB”) / Silicon Valley Bank (“SVB”): • SI focused almost entirely on serving the digital asset industry. With the turmoil in • SIVB primarily served customers in the technology a
Slide 11: Why invest in U.S. Community Banks
Why invest in U.S. Community Banks Smaller Banks Have Greater Capital Ratios1 Commercial Bank Credit Quality Remains Pristine1 Tier 1 Leverage Ratio Credit Quality in the Banking Industry (1991-2023) 11.00% 4.00% 10.50% 3.54% 3.50% 10.00% 3.00% 2.67% 9.50% 2.50% 9.00% 2.00% 8.50% 1.65% 1.50% 1.61% 8
Slide 12: Specialty Finance Investments and US Bank debt
Specialty Finance Investments and US Bank debt Specialty Finance Investments Specialty Finance Investments, represented approximately 12.2% of the Group’s assets as of 30 June 2023 consisting of : Mortgage Servicing MSRs are a stream of regular and predictable servicing income cashflows originally a
Slide 13: Mortgage Servicing Rights
Mortgage Servicing Rights ▪ Mortgage Servicing Rights ─ Mortgage servicing rights (“MSRs”) are contractual rights to annual cash flows, paid monthly, generated at the time of a loan origination. ─ MSR cash flows are paid first in the waterfall of MBS securitisations, thereby posing de minimis credit
Slide 14: Summary
Summary 74.86% Total Return1 and 9.14% Annualised Total Return1 since inception to June 2023 • Risk Retention Vehicle: Supports the $3.2bn securitisation platform of EJF. • Underlying exposure: Exposure to a portfolio of loans to US financial institutions and related assets, with an emphasis on floa
Slide 15: Appendix
Appendix Please see Legal Disclosures on pages 21-24 14
Slide 16: Company Overview
Company Overview Listing/Currency London Stock Exchange Main Market - Specialist Fund Segment / GBP Structure Jersey domiciled closed-ended investment company Strategy Focused on: (1) debt issued by US community banks and insurance companies; and (2) specialty finance Manager EJF Investments Manager
Slide 17: Sample CDO
Sample CDO1 Typical Collateral Sample CDO Typical Structure Characteristics Characteristics US Banks & Issuer Type Leverage 2x to 7x Insurance Companies Senior Tranche TruPS, Term Match funded Senior Notes, Debt Type Subordinated Debt, & Surplus notes Collateral Management 10bps to 30bps Mezzanine T
Slide 18: CDO Equity Tranches offers strong relative value to traditional CLOs
CDO Equity Tranches offers strong relative value to traditional CLOs TruPS CDO(1) Sample CLO(2) ▪ Complex structure with multiple triggers AA AAA ▪ 4yr reinvestment period Structure allows for significant changes to collateral base ▪ CLO 2.0 Equity NAV can Mezz AA be volatile due to A underlying s
Slide 19: EJFI's Key Milestones
EJFI’s Key Milestones 2017-present Corporate • EJF Investments Manager covered most of the ongoing operating expenses of EJFI since inception Actions • EJFI continues to pay dividends, even throughout the uncertain period of the outbreak of the pandemic May 2022 • Diversification of the shareholder
Slide 20: EJFI Board and Advisory Team
EJFI Board and Advisory Team Independent Board Of Directors Advisers & Service Providers to EJFI Joanna Dentskevich – Chair of the Board KPMG – Auditors Joanna Dentskevich has over 35 years of finance, risk and investment banking experience gained in London and Asia. She started her career in 1986 i
Slide 21: Contact Information
Contact Information Enquiries For the Manager For the Independent Directors EJF Investments Manager LLC Joanna Dentskevich Peter Stage / Jay Ghatalia Alan Dunphy pstage@ejfcap.com / jghatalia@ejfcap.com Nick Watkins +44 203 752 6775 / +44 203 752 6776 jersey.bp2s.ejf.cosec@bnpparibas.com For the Com
Slide 22: Legal Disclosures
Legal Disclosures PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS, WHICH MAY VARY. THIS PRESENTATION AND ITS CONTENTS ARE NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, IN OR INTO OR FROM AUSTRALIA, CANADA, SOUTH AFRICA, THE EUROPEAN ECONOMIC AREA ("E
Slide 23: Legal Disclosures
Legal Disclosures Statements of historical events are strategy and fund specific and may not apply to all products and services offered by the Company, the Manager or EJF. Certain statements may contain performance calculations which were prepared by EJF and contain assumptions about future delinque
Slide 24: Legal Disclosures
Legal Disclosures This presentation does not constitute an offer to sell, or a solicitation of an offer to buy, securities in the United States. The securities mentioned herein have not been, and will not be, registered under the US Securities Act of 1933, as amended (the "US Securities Act") or wit
Slide 25: Legal Disclosures
Legal Disclosures Each of Barclays Bank PLC, which is authorised by the Prudential Regulation Authority (the “PRA”) and regulated in the United Kingdom by the Financial Conduct Authority (the “FCA”) and the PRA, and Liberum, which is authorised and regulated in the United Kingdom by the FCA (togethe
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