Eagle Bancorp Montana, Inc. · NASDAQ:EBMT

Eagle Bancorp Montana — Merger or Acquisition (July 2012)

13 slides from Eagle Bancorp Montana's merger presentation, Jul 2, 2012

  1. Slide 1: Acquisition of Seven Montana Branches From Sterling Financial Corporation

    EAGLE BANCORP MONTANA Acquisition of Seven Montana Branches From Sterling Financial Corporation July 2, 2012

  2. Slide 2: Legal Disclosure

    Legal Disclosure Statements in this presentation, which are not historical facts, may be deemed to be "forward-looking statements.” Actual and anticipated future results may vary due to certain risks and uncertainties, including, without limitation; changes in laws or government regulations or polic

  3. Slide 3: Unique Expansion Opportunity

    Unique Expansion Opportunity v v Creates the 6" largest Montana-based banking institution Expands footprint in Southern Montana: > New markets include Missoula and Billings, the largest metropolitan markets in Montana Leverages excess capital in a lower risk branch transaction Limited credit risk: a

  4. Slide 4: Missoula Acquired Branches map

    Missoula Acquired 2 Branches. eves wnscup Branches 7 B NenoneF2"9 Loans ‘$44 Million $235 Million i te Bho" [Deposits $187MMillion $407 Million tert . “a esi Lodge fisena Tet ain Prine z eiton “1 Billings NITE DSTATES Hamilton [on ye a ten ete act Foest \ ave fo Reserva ® atti af Foret a Vinh cy a]

  5. Slide 5: Creates the 6th largest banking institution headquartered in Montana

    a Creates the 6" largest banking institution headquartered in Montana in terms of deposits a Pro forma footprint with presence in the key Montana markets epost data sof 6/30/32. Pro Forma Deposit Market Share - Montana Deposits in thousands 2011 Hof Deposits in Market Rank Institution State city Bra

  6. Slide 6: Entry Into New Metropolitan Markets

    Entry Into New Metropolitan Markets Pro Forma Deposit Market Share — Missoula, MSA Deposits in thousands Pro Forma Deposit Market Shar Deposits in thousands 2011, Hof Depositsin Market | 2012 Hof Deposits in Market Rank Institution (ST) Branches Market __ Share Rank (sn Branches Market Share 1. Firs

  7. Slide 7: Montana Markets: Bozeman

    Montan kets Pro Forma Deposit Market Share - Bozeman, MT MSA Deposits in thousands 2011 Hof Deposits in Market Rank Institution (ST) Branches Market __ Share 1 Inter-Mountain Bancorp. Inc. (MT) 8 $406,546 22.3% 2 First Interstate BancSystem (MT) 5 217,419 119 3° Glacier Bancorp Inc. (MT] 5 208,159 1

  8. Slide 8: Limited Risk in Acquired Loans

    Limited Risk in Acquired Loans a $44 million of loans a Diversified portfolio a Excludes past due, nonaccrual and TDRs a Weighted average yield: 5.5% Commercial Real Estate 10% a 34 party due diligence performed on the residential portfolio a Due diligence conducted on 1-4 Femily commercial and cons

  9. Slide 9: Attractive Deposit Base

    Attractive Deposit Base a $187 million of deposits a Cost of Deposits: 0.72% a 58% non-time deposits a Over 13,000 customer accounts a Re-pricing opportunities exist: >» $46 million of CDs mature in the next 12 months with a weighted average rate of 1.38% ‘oes nat contemplate the impact of purchase

  10. Slide 10: Key Transaction Terms

    Key Transaction Terms Transaction Summary: Consideration: Due Diligence: Expected Closing: Additional: * 7 retail branches * $187 million in deposits * $44 million in performing loans * 3.88% premium on total deposits, based on 30 day average prior to close * $7.3 million premium based on deposit ba

  11. Slide 11: Financially Attractive

    Financially Attractive a Pro forma assets over $500 million a Inexcess of 20% accretive to earnings beginning in fiscal year 2013 and significantly more thereafter a 14% tangible book value per share dilution is expected to be earned back between 4 and 5 years Financial a Approximately 15% IRR Impac

  12. Slide 12: Transaction Rationale

    Transaction Rationale a Franchise transforming «Enhances strategic significance in Montana * Enter major markets of Missoula and Billings a Financially compelling ° Effective use of excess capital ¢ Immediately and significantly accretive to EPS * Estimated tangible book value per share earn-back pe

  13. Slide 13: Slide Acquisition of Seven Montana Branches July 2, 2012 From Sterling Financial Corporation EAGLE

    Slide 1 Acquisition of Seven Montana Branches July 2, 2012 From Sterling Financial Corporation EAGLE BANCORP MONTANA Slide 2 Statements in this presentation, which are not historical facts, may be deemed to be "forward-looking statements.” Actual and anticipated future results may vary due to certai

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