Eagle Bancorp Montana, Inc. · NASDAQ:EBMT
Eagle Bancorp Montana — 2021 Hovde Group Financial Services Conference
34 slides from Eagle Bancorp Montana's conference presentation, Nov 3, 2021
Slide 1: 2021 Hovde Group Financial Services Conference
2021 Hovde Group Financial Services Conference November 3 - 5, 2021
Slide 2: Cautionary Notice Regarding Forward-Looking Statements
2 Cautionary Notice Regarding Forward - Looking Statements This presentation includes “forward - looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amen ded, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward - looking statements are base
Slide 3: Important Information about the Merger and Where to Find it
3 Important Information about the Merger and Where to Find it This communication does not constitute an offer to sell or the solicitation of an offer to buy any securities or a solicitati on of any vote or approval, nor shall there be any sale of securities in any jurisdiction in which such offer, s
Slide 4: Community Focused Institution
COMMUNITY FOCUSED INSTITUTION □ Eagle Bancorp Montana, Inc . is the holding company for Opportunity Bank of Montana ; established in 1922 , the Bank is the 4 th largest bank headquartered in Montana with 23 banking offices and has deeply embedded itself as the bank of choice within the community □ C
Slide 5: Company Overview
COMPANY OVERVIEW □ 23 branches in Montana operating under the Company’s banking subsidiary – Opportunity Bank of Montana □ Balance Sheet (9/30/21): ▪ Assets $1.407 billion ▪ Gross Loans $884.9 million ▪ Deposits $1.195 billion ▪ Total equity $156.5 million □ Asset Quality (9/30/21): ▪ NPAs/assets –
Slide 6: Experienced Executive Management
Peter Johnson President and CEO 3 9 years with the Company 4 2 years in banking Laura Clark EVP and Chief Financial Officer 7 years with the Company 4 5 years in banking Rachel Amdahl SVP and Chief Operations Officer 3 4 years with the Company 3 4 years in banking Dale Field SVP and Chief Credit Off
Slide 7: Experienced Board
EXPERIENCED BOARD Director Experience Year Elected Peter J. Johnson President and CEO of Opportunity Bank and the Company 2007 Rick F. Hays Retired President of a Montana telecommunications company 2007 Thomas J. McCarvel Retired Vice President of Carroll College 1998 Maureen J. Rude Retired Executi
Slide 8: Business Strategy
8 □ Continue to diversify our loan portfolio into commercial (C&I), commercial real estate and agriculture □ Attract and retain lower - cost core deposits □ Continue to expand our franchise through selective acquisitions and branch additions □ Maintain high asset quality levels □ Continue to operate
Slide 9: Key Montana Markets – Helena, Missoula, Great Falls
Key Montana Markets – Helena, Missoula, Great Falls Lewis and Clark County (Helena) Cascade County (Great Falls) Missoula County (Missoula) • Helena is the state capital of Montana. • Stable economy supported by state government, healthcare, education, and small business. • Government positions acco
Slide 10: Key Montana Markets – Bozeman, Billings, Butte
Key Montana Markets – Bozeman, Billings, Butte Gallatin County (Bozeman) Silver Bow (Butte) Yellowstone County (Billings) • Fastest growing area in Montana, and one of the fastest growing counties in the Western U.S. • Home to Montana State University, the largest university in the state (16,000+ st
Slide 11: Recent Corporate Developments and Acquisitions
11 □ On October 1, 2021, reached an agreement to acquire First Community Bancorp, Inc. and its subsidiary, First Community Bank. Upon completion of the acquisition, Opportunity Bank of Montana will have 32 retail branches in key commercial and agricultural markets across Montana. □ On June 10, 2020,
Slide 12: Acquisition of First Community Bancorp, Inc.
NASDAQ: EBMT ACQUISITION OF FIRST COMMUNITY BANCORP, INC. Strategic Expansion of Montana’s Premier Community Bank
Slide 13: Strategic Montana Expansion - EBMT's Largest Acquisition
13 Strategic Montana Expansion - EBMT’s Largest Acquisition ▪ Eagle Bancorp Montana, Inc. (NASDAQ: EBMT), the holding company for Opportunity Bank of Montana (“Opportunity”) has entered i nto an agreement to acquire First Community Bancorp Inc., the holding company for First Community Bank (collecti
Slide 14: First Community Bank Overview
14 First Community Bank Overview Source: S&P Capital IQ Pro, financial and deposit data as 6/30/2021 Note: Bank - level call report data for First Community Bank History and Franchise Highlights Financial Highlights – First Community Bank Branch Footprint – First Community Bank ▪ Established by the
Slide 15: Montana Deposit Market Share
15 Rank MT Rank Institution (State) Branches Deposits ($000s) Market Share 1 1 Glacier Bancorp Inc. (MT) 67 7,206,605$ 21.3% 2 2 First Interstate BancSystem (MT) 46 6,010,908$ 17.8% 3 3 Stockman Financial Corp. (MT) 39 4,321,707$ 12.8% 4 - U.S. Bancorp (MN) 21 3,155,100$ 9.3% 5 - Wells Fargo & Co. (
Slide 16: Opportunity to Expand in Key Agriculture and Commercial Markets
16 Opportunity to Expand in Key Agriculture and Commercial Markets Source: S&P Capital IQ Pro, CNBC.com, Montana Department of Agriculture, American Land Brokers, Statista, U.S. News, U.S Census Bureau (1) USDA agricultural statistics data as of 2018 Northeast Montana Helena (Lewis & Clark County) ▪
Slide 17: Loan and Deposit Composition
17 Construction & Development 11.1% 1 - 4 Family 23.0% Multifamily 3.9% Non - Owner Occupied CRE 18.2% Owner - Occupied CRE 17.3% Commercial & Industrial 10.2% Farm/Agriculture 12.9% Consumer 2.0% Other 1.2% Construction & Development 8.1% 1 - 4 Family 13.7% Non - Owner Occupied CRE 0.5% Owner - Occ
Slide 18: Transaction Structure and Assumptions
18 Transaction Structure and Assumptions (1) Based on EBMT closing price of $22.10 as of September 29, 2021 (2) Required Adjusted Tangible Stockholders’ Equity of $29.5 million. Refer to the Agreement and Plan of Merger for complete term s Aggregate Deal Value: (1) ▪ $41.1 million, or $1,110.58 per
Slide 19: Transaction Multiples and Pro Forma Impact
19 Transaction Multiples and Pro Forma Impact (1) Based on EBMT closing price of $22.10 as of September 29, 2021 (2) Required Adjusted Tangible Stockholders’ Equity of $29.5 million. Refer to the Agreement and Plan of Merger for complete term s (3) Core deposits defined as total deposits less time d
Slide 20: An Expanding Franchise
20 $200 $213 $238 $251 $287 $306 $333 $332 $508 $516 $560 $630 $674 $717 $854 $1,054 $1,258 $1,733 $- $200 $400 $600 $800 $1,000 $1,200 $1,400 $1,600 $1,800 $2,000 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Q2 2021 Total Assets ($MM) Non-Acquired Assets Acqu
Slide 21: The Eagle Bancorp Montana Story
21 The Eagle Bancorp Montana Story Source: Company filings Note: Financial information for acquired companies and branches at closing (1) Based on total assets as of 6/30/2021 (2) Financial information as of 6/30/2021; region includes MT, ID, and WY Where Eagle Has Come From Where Eagle is Today Whe
Slide 22: Compelling Opportunity for EBMT and its Shareholders
22 Compelling Opportunity for EBMT and its Shareholders Source: Mobility Market Intelligence x Acquisition increases pro forma assets to over $1.7 billion and further solidifies Eagle’s position as the fourth largest ban k headquartered in Montana x Rare opportunity to acquire the leading bank in No
Slide 23: Important Information about the Merger and Where to Find it
Important Information about the Merger and Where to Find it “This communication does not consitute an offertosel or the solictation ofan offertobuy any secures ora solctation of any vote or approval, nor shal there be any sale of securties in any urlsdicton in which such offer, soletation or sale wo
Slide 24: Net Interest Income & Net Interest Margin
NET INTEREST INCOME & NET INTEREST MARGIN $ 2 , 0 $ 3 , 0 $ 4 , 0 $ 5 , 0 $ 6 , 0 $ 7 , 0 $ 8 , 0 $ 9 , 0 $ 1 0 , 2 . 8 0 3 . 0 0 3 . 2 0 3 . 4 0 3 . 6 0 3 . 8 0 4 . 0 0 4 . 2 0 4 . 4 0 4 . 6 0 Net Interest Income Net Interest Margin 24 3.95% 4.33% 4.31% 4.15% 4.22% 4.04% 3.85% 3.83% 4.03% 3.97% 3.8
Slide 25: Provision for Loan Losses
25 PROVISION FOR LOAN LOSSES $1,833 $1,228 $980 $2,627 $3,130 $576 $0 $500 $1,000 $1,500 $2,000 $2,500 $3,000 $3,500 2016 2017 2018 2019 2020 YTD 2021 2016 2017 2018 2019 2020 YTD 2021 $ in 000’s
Slide 26: Balance Sheet Expansion
BALANCE SHEET EXPANSION 26 $674 $717 $854 $1,054 $1,258 $1,407 $466 $513 $617 $779 $841 $885 $513 $521 $627 $809 $1,033 $1,195 $0 $200 $400 $600 $800 $1,000 $1,200 $1,400 $1,600 12/31/2016 12/31/2017 12/31/2018 12/31/2019 12/31/2020 9/30/2021 Assets Total Loans Deposits $ in millions
Slide 27: Loan Portfolio Composition – 9/30/2021
27 Loan Portfolio Composition – 9/30/2021 □ Since 2008, number of Commercial/Ag lenders has increased from 4 to 33 □ 28 Mortgage Lenders □ C&I accounts for 10% of loan portfolio □ Owner - occupied CRE loans represent 18% of total loans Per call report data as of 9/30/21, excludes loans held for sale
Slide 28: Deposit Mix – Rolling 8 Quarters
Non Interest Checking 31% Interest Bearing Checking 16% Savings 18% Money Market 22% Time Certificates 13% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 Time Certificates Money Market Savings Interest Checking Non Interest Checking September 30, 2021 Deposit Mix
Slide 29: Disciplined Credit Culture
29 DISCIPLINED CREDIT CULTURE 0.21% 0.45% 0.52% 0.68% 0.56% 0.00% 0.10% 0.20% 0.30% 0.40% 0.50% 0.60% 0.70% 0.80% 12/31/2017 12/31/2018 12/31/2019 12/31/2020 9/30/2021 Nonperforming Assets/Total Assets
Slide 30: COVID-Impact Providing Relief to Customers
COVID - 19 IMPACT PROVIDING RELIEF TO CUSTOMERS Accommodations and Modifications to Borrowers □ 90 - day payment deferrals □ 6 - month interest only payments □ Mortgage forbearances □ Montana Board of Investments program (MBOI) assistance □ SBA PPP loan assistance Loan Modification Status as of 9/30
Slide 31: Yield and Cost of Funds
YIELD AND COST OF FUNDS 0.00% 1.00% 2.00% 3.00% 4.00% 5.00% 6.00% 2016Y 2017Y 2018Y 2019Y 2020Y 3Q21 Yield on Average Earning Assets EBMT Peer Group 0.00% 1.00% 2.00% 3.00% 4.00% 5.00% 6.00% 2016Y 2017Y 2018Y 2019Y 2020Y 3Q21 Yield on Loans EBMT Peer Group 0.00% 0.20% 0.40% 0.60% 0.80% 1.00% 1.20% 2
Slide 32: Capital Strength
CAPITAL STRENGTH 32 □ Authorized the repurchase of up to 100,000 shares of its common stock, representing approximately 1.47% of outstanding shares. Total Assets 716,782$ 853,903$ 1,054,260$ 1,257,634$ 1,331,421$ 1,359,355$ 1,406,923$ Total Common Stockholders' Equity 83,616$ 94,806$ 121,659$ 152,93
Slide 33: 5 Year Stock Price Performance
33 Source: S&P Global Market Intelligence as of October 24, 2021 Information reflects the exchange as a result of the conversion and offering 5 YEAR STOCK PRICE PERFORMANCE
Slide 34: Pete Johnson President and CEO Office: (406) - 3080 Direct: (406) 457 - 4006
Pete Johnson President and CEO Office: (406) 442 - 3080 Direct: (406) 457 - 4006 pjohnson@oppbank.com Laura Clark EVP and Chief Financial Officer Office: (406) 442 - 3080 Direct: (406) 457 - 4007 lclark@oppbank.com www.opportunitybank.com 1400 Prospect Avenue P.O. Box 4999 Helena, MT 59604
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