Slide 1: December 31, 2023 Earnings Presentation
December 31, 2023 Earnings Presentation January 24, 2024 Scan for digital version EagleBankCorp.com
Slide 2: Forward Looking Statements
Forward Looking Statements 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 and
Slide 3: Washington DC Market
Washington DC Market LOUDOUN COUNTY Tysons Corner FAIRFAX COUNTY MONTGOMERY ‘COUNTY ARLINGTON PRINCE GEORGE'S. COUNTY Branch Office Corporate Headquarters Regional Headquarters Loan Production Office VIRGINIA @ Batiston 4420N Fairfax Drive, Arlington, VA 22203 e@ Fairfax 11166 Fairfax Boulevard, Fai
Slide 4: Why Own EGBN?
Why Own EGBN? • Capitalizing on our Desirable Geography — Market depth provides EGBN the ability to grow its market share — Leverage our physical presence to capture market share through improved sales behaviors • Management Building Foundation for Growth — Focus on improving deposit franchise value
Slide 5: Key Strategic Objectives
Key Strategic Objectives • Enhance Deposit Franchise — Focus on deposit growth through improved sales behaviors; focusing on net new relationship metrics; enhancing products set and services to better serve our customers. — Enhance our treasury management program and product suite to build and maint
Slide 6: Summary Statistics
Summary Statistics Tangible Total Assets Total Loans Total Deposits Common Equity $ $ $ $ billion billion billion billion (1) Shares Outstanding Market Capitalization Tangible Book Value (at close December 31, 2023) (at close January 23, 2024) per Common Share 29,925,612 $821 million $ 39.08 (2) (1)
Slide 7: Net Income Walk
Net Income Walk Net Income Drivers Net interest income Net interest income up $2.3 million, driven by higher balances and yields on both loans and cash balances (see page 9) Provision for credit losses The PCL on credit was higher primarily driven by the partial charge-off of an office loan and a ch
Slide 8: Performance Measures
Performance Measures *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. For the periods above, return on average common equity was 13.57% (2022Q4), 7.92% (2023Q1
Slide 9: Net Interest Income
Net Interest Income Net Interest Income & Margin 3.14% 2.77% 2.49% 2.43% 2.45% $71.8 $70.7 $73.0 2023Q2 202303 202304 $85.6 (in millions) 2022Q4 20231 mmm Net Interest Income —-®=NIM Drivers of Net Interest Income Change $4,270 | $2,002 $72,992 $70,719 ese eo $(3,935) $(64) IE Assets Cost of Funds N
Slide 10: Yield/Cost Components
Yield/Cost Components *For betas, the denominator is the change in the Average Effective Federal 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 o
Slide 11: Funding
Funding Funding Improvement Deposits Deposits were up $432 million for the quarter, primarily driven by growth in noninterest bearing demand and money market accounts. Brokered deposits were down $38 million and were 27.0% of deposits. Trend of declining deposits reversed after the first quarter of
Slide 12: Deposit Mix and Trend
Deposit Mix and Trend Brokered CDs Brokered money market Core CDs* Core savings and money market Interest bearing transaction Noninterest bearing *Core deposits include CDAR’s and ICS reciprocal deposits. 12
Slide 13: Loan Mix and Trend
Loan Mix and Trend Home Equity Other Consumer Construction C&I (owner-occupied) Construction – comm& residential. Owner-Occupied CRE Commercial Income producing CRE (excluding office if applicable) Office 13
Slide 14: Loan Type and Classification
Loan Type and Classification Loans by Type - 12/31/2023 Income Producing CRE by Type - 12/31/2023 $ in millions Balance % of $ in millions Balance % of Loans Income-producing - CRE $3,146 39% Office & Office Condo $949 12% Income-producing - CRE (Office) 949 12% Multifamily 765 9% Total income produ
Slide 15: Asset Quality Metrics
Asset Quality Metrics *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. 15
Slide 16: Investment Portfolio
Investment Portfolio Investment portfolio strategy • Portfolio positioned to manage liquidity and pledging needs • Cash flow projected principal only (rates unchanged): o 2024 - $348 million o 2025 - $387 million • Total securities down $170 million in 2023 from principal paydowns, maturities receiv
Slide 17: Tangible Book Value Walk
Tangible Book Value Walk Please refer to Non-GAAP reconciliation and footnotes in the appendices. 17
Slide 18: Tangible Book Value Per Share
Tangible Book Value Per Share 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 3.0% and excluded was 7.7% for the period from December 31, 2020, through December 31, 2023. Book values
Slide 19: 2024 Outlook
2024 Outlook 2022-23 Key Drivers 2023 Actual 2024 Outlook Change Balance Sheet Average deposits 11.9% decline $8,919 million Low single digit % increase Average loans 8.5% increase $7,816 million Low single digit % increase Average earning assets 1.0% increase $11,483 million Low single digit % decl
Slide 20: 2024 Outlook Variables & Risks
2024 Outlook Variables & Risks To reach our 2024 outlook, we made many assumptions of variables and risks, including: Component Variables & Risks Economy & Rates • Business activity highly correlated to current and anticipated forward rates Clients • Credit quality and need for credit coupled with a
Slide 21: Appendices
Appendices ” @EAGLE BANCORB INC. 21
Slide 22: Loan Portfolio – Details
Loan Portfolio – Details $ in millions Owner Income Owner Occupied Producing Occupied CRE Residential % of Location C&I CRE CRE Const. Construction Land Mortgage Consumer TOTAL Total Washington DC $479.0 $294.4 $1,338.0 $69.5 $251.5 $30.6 $34.9 $13.4 $2,511.3 31.5% Suburban Washington Montgomery 173
Slide 23: Loan Portfolio – Income Producing CRE
Loan Portfolio – Income Producing CRE $ in millions Single/1-4 % of Family & Total Location Hotel/ Motel Industrial Mixed Use Multifamily Office Retail Res. Condo Other TOTAL Loans Washington DC $139.0 $5.0 $271.7 $353.8 $232.0 $82.4 $80.2 $173.9 $1,338.0 16.8% Suburban Washington Montgomery - 24.3
Slide 24: Loan Portfolio – CRE Construction
Loan Portfolio – CRE Construction $ in millions Single & 1-4 Residential % of Location Family Multifamily Office Hotel/Motel Mixed Use Retail Condo Other TOTAL Total Washington DC $17.9 $172.6 $0.0 $0.0 $23.4 $1.3 $11.1 $25.2 $251.5 3.2% Suburban Washington Montgomery 14.1 108.8 - - - - - 19.7 142.6
Slide 25: Non-GAAP Reconciliation (unaudited)
Non-GAAP Reconciliation (unaudited) $ in thousands, except per share data As of Period End As of Period End 2020Y 2021Y 2022Y 2022 Q4 2023 Q1 2023 Q2 2023 Q3 2023 Q4 Tangible common equity Common shareholders' equity $1,240,891 $1,350,775 $1,228,321 $1,228,321 $1,241,958 $1,219,766 $1,215,884 $1,274
Slide 26: Non-GAAP Reconciliation (unaudited)
Non-GAAP Reconciliation (unaudited) $ in thousands For the Quarter 2022 Q4 2023 Q1 2023 Q2 2023 Q3 2023 Q4 Efficiency Ratio Net interest income $85,600 $75,024 $71,811 $70,719 $72,992 Noninterest income 5,329 3,700 8,595 6,347 2,894 Revenue $90,929 $78,724 $80,406 $77,066 $75,886 Noninterest expense
Slide 27: Non-GAAP Reconciliation (unaudited)
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 equity a