Eagle Bancorp Montana, Inc. · NASDAQ:EBMT
Eagle Bancorp Montana — IPO Roadshow (October 2017)
28 slides from Eagle Bancorp Montana's IPO roadshow presentation, Oct 10, 2017
Slide 1: Common Equity Offering Investor Presentation
Free Writing Prospectus Filed Pursuant to Rule 433 Registration Statement No. 333-216983 Dated October 10, 2017 Common Equity Offering Investor Presentation October 2017 NASDAQ: EBMT
Slide 2: Safe Harbor Statement
Safe Harbor Statement Forward-Looking Statements This presentation may contain certain "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, regarding Eagle Bancorp Montana, Inc. (“Eagle”), including its w
Slide 3: Safe Harbor Statement
Safe Harbor Statement Non-GAAP Financial Measures Eagle reports its results in accordance with United States generally accepted accounting principles ("GAAP"). However, management believes that certain non-GAAP performance measures used in managing the business may provide meaningful information abo
Slide 4: Offering Overview
Offering Overview Issuer: Eagle Bancorp Montana, Inc. (the “Company”) Exchange / Ticker: NASDAQ: EBMT Security: Common Stock Base Deal Value: $18 million (100% primary) Overallotment: 15% Pre-Offering Market Cap: $71.7 million (at 10/5/2017) General corporate purposes, including potential future acq
Slide 5: Investment Highlights
Investment Highlights $710 million total asset size commercial bank headquartered in Helena, MT(1) 7th largest bank headquartered in Montana and 3rd largest publicly traded bank(2) Only sub $10 billion asset size NASDAQ traded bank or bank holding company in MT, ID, ND or WY(3) History of robust gro
Slide 6: Overview of Eagle Bancorp Montana, Inc.
Overview of Eagle Bancorp Montana, Inc. Established in 1922 and headquartered in Helena, MT 14 branches in Montana operating under the Company’s banking subsidiary – Opportunity Bank Balance Sheet (6/30/17): Opportunity Bank Branches Assets $710.2 million Montana Gross loans $508.1 million(1) Deposi
Slide 7: Experienced Management
Experienced Management Peter J. Johnson • Has served as President and Chief Executive Officer since December 2009 President • 36 years with the Bank Chief Executive Officer • 38 years of banking experience Laura F. Clark • Has served as EVP and Chief Financial Officer since March 2014 Senior Vice Pr
Slide 8: Experienced Board
Experienced Board Year Director Experience Elected Larry A. Dreyer Retired President and CEO of Opportunity Bank 1990 James A. Maierle Retired President of a civil engineering corporation 1997 Peter J. Johnson President and CEO of Opportunity Bank and the Company 2007 Lynn E. Dickey Retired Partner
Slide 9: Approach to Business
Approach to Business Embed ourselves as the bank of choice within target communities Continue to operate as a community-oriented financial institution Expand franchise through selective acquisitions and branch additions Continue execution on commercial bank model Diversify loan portfolio into commer
Slide 10: Deposit Market Share - Montana
Deposit Market Share - Montana The 7th largest banking institution headquartered in Montana in terms of deposits Pro-forma for the pending TwinCo, Inc. acquisition the Company will be the 5th largest banking institution headquartered in Montana Diverse footprint with presence in the key Montana mark
Slide 11: Market Demographic Data by County
Market Demographic Data by County Robust population and income growth statistics in the market areas Eagle has a presence Double-digit income growth projections in four counties Unemployment rate in all counties is below the national average EBMT Market Presence Population Statistics Income and Unem
Slide 12: Key Montana Markets
Key Montana Markets Deposit Market Share – Missoula County Deposit Market Share – Yellowstone County 2017 2016 Number of Deposits in Market 2017 2016 Number of Deposits in Market Rank Rank Institution (State) Branches Market Share Rank Rank Institution (State) Branches Market Share 1 1 First Interst
Slide 13: Key Montana Markets
Key Montana Markets Deposit Market Share – Gallatin County Deposit Market Share – Lewis and Clark County 2017 2016 Number of Deposits in Market 2017 2016 Number of Deposits in Market Rank Rank Institution (State) Branches Market Share Rank Rank Institution (State) Branches Market Share 1 1 Inter-Mou
Slide 14: Company Developments
Company Developments In September 2017, announced proposed acquisition of TwinCo, Inc. and its wholly-owned subsidiary, Ruby Valley Bank (“Ruby Valley”) In May 2017, received approval by the state to convert our LPO in Great Falls to a full service branch In February 2017, sold $10 million in senior
Slide 15: TwinCo, Inc. Acquisition
TwinCo, Inc. Acquisition Transaction Overview Pro-Forma Financial Summary On September 5, 2017, the Company entered into an Aggregate Deal Value: (1) $17.8 million agreement to acquire TwinCo, Inc., the holding (1)(2) Deal Value / TBV: 125.9% company for Ruby Valley, headquartered in Twin Bridges, M
Slide 16: Financial Performance
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Slide 17: EBMT: Second Quarter 2017 Highlights
EBMT: Second Quarter 2017 Highlights Net income grew 39.7% to $1.1 million, or $0.27 per diluted share in the second quarter, compared to $763,000, or $0.20 per diluted share in the preceding quarter, and was down compared to $1.3 million, or $0.32 per diluted share, in the second quarter of 2016. N
Slide 18: Increased Loan Production and Margin
Increased Loan Production and Margin Net Interest Income and Net Interest Margin Gross Loans (Held for Investment) 4.00% $6,500 $550,000 3.90% $6,000 $500,000 3.80% $5,500 3.70% $450,000 $5,000 3.60% $4,500 $400,000 3.50% $4,000 $350,000 3.40% $3,500 3.30% $300,000 $3,000 3.20% $250,000 3.10% $2,500
Slide 19: Loan Portfolio Detail – Opportunity Bank
Loan Portfolio Detail – Opportunity Bank Total gross loans increased 12.8% Loan Portfolio Composition – 6/30/2017 from 6/30/16 to 6/30/17 Since 2008, number of commercial bankers has increased from 4 to 16 Total C&I loans have increased 82% since 2013 Current yield on loans of 4.82% increased from 4
Slide 20: CRE and C&D Loan Detail
CRE and C&D Loan Detail CRE Concentration by Location (% of total) C&D Concentration by Type (% of total) Other 1% Land Dev. Billings (Non 1-4) 11% 10% Land/Lot (Non-Farm) Helena 18% 31% Comm Const (Building) Bozeman 33% Res. Const 33% (1-4 Fam) 8% Missoula 7% Res. Const (Owner Occ.) Res. Land 20% B
Slide 21: Deposit Composition
Deposit Composition Total Deposits and Cost of Deposits Deposit Composition – 6/30/2017 CDs > $100k Non-Interest 14.7% Bearing Checking 17.9% CDs < $100k 14.4% Interest- Bearing Checking 18.5% Savings 17.3% MMDA 17.3% Deposit mix and cost continues to improve as the Company continues to implement it
Slide 22: Disciplined Credit Culture
Disciplined Credit Culture Non-Performing Assets / Total Assets(1) 2.25% 2.00% 1.91% 1.75% 1.47% 1.49% 1.50% 1.37% 1.25% 1.13% 1.08% 1.11% 1.00% 0.92% 0.75% 0.50% 0.50% 0.29% 0.29% 0.31% 0.25% 0.00% 12/31/14 12/31/15 12/31/16 6/30/17 EBMT Regional Peers U.S. Peers Source: SNL Financial; holding comp
Slide 23: Strong Track Record of Generating Shareholder Value
Strong Track Record of Generating Shareholder Value Tangible Book Value Per Share(1) Diluted Earnings Per Share and Dividends Per Share Source: Company data as of 6/30/2017 (1) See appendix for non-GAAP financial reconciliation 23
Slide 24: Favorable Valuation Metrics Relative to Peer Groups
Favorable Valuation Metrics Relative to Peer Groups Price / LTM EPS Price / TBV(2) Price / 2017E EPS(1) Dividend Yield Source: SNL Financial; holding company data as of 6/30/2017; market data as of 10/5/2017 Note: Regional peer group includes NASDAQ/NYSE traded banks headquartered in CO, ID, MT, OR,
Slide 25: Investment Highlights
Investment Highlights $710 million total asset size commercial bank headquartered in Helena, MT(1) 7th largest bank headquartered in Montana and 3rd largest publicly traded bank(2) Only sub $10 billion asset size NASDAQ traded bank or bank holding company in MT, ID, ND or WY(3) History of robust gro
Slide 26: Appendix
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Slide 27: Reconciliation of GAAP to Non-GAAP Financial Measures
Reconciliation of GAAP to Non-GAAP Financial Measures Eagle Bancorp Montana, Inc. (Dollars in Thousands, except per share data) 6/30/2015 9/30/2015 12/31/2015 3/31/2016 6/30/2016 9/30/2016 12/31/2016 3/31/2017 6/30/2017 Shareholders' Equity (GAAP) $ 53,707 $ 54,424 $ 55,450 $ 56,519 $ 59,004 $ 60,03
Slide 28: Eagle Bancorp Montana, Inc.
EAGLE BANCORP MONTANA, INC.