Eagle Bancorp Montana, Inc. · NASDAQ:EBMT
Eagle Bancorp Montana — Shareholder Meeting (April 2020)
25 slides from Eagle Bancorp Montana's shareholder meeting presentation, Apr 23, 2020
Slide 1: Annual Shareholder Meeting April 23, 2020
= S a cd EAGLE BANCORP Opportunity Bank MONTANA ANNUAL SHAREHOLDER MEETING APRIL 23, 2020
Slide 2: Cautionary Notice Regarding Forward-Looking Statements
CAUTIONARY NOTICE REGARDING FORWARD- LOOKING STATEMENTS ‘Cerain statements conned inthis presenaton tht are not statements of historia fact are forwardooking statements. These forwardJooking statements, whch are based on cerain assumptions and describe ‘our future plans, sategiesand expecatons an ge
Slide 3: Community Focused Institution
COMMUNITY FOCUSED INSTITUTION Q Eagle Bancorp Montana, Inc. is the holding company for Opportunity Bank of Montana; established in 1922, the Bank is the 4" largest bank headquartered in Montana with 23 banking offices and has deeply embedded itself as the bank of choice within the community Continue
Slide 4: Company Overview
COMPANY OVERVIEW Q 23 branches in Montana operating under the Company's banking subsidiary - Opportunity Bank of Montana Q Balance Sheet (12/31/19): ES Si = Assets $1.054 billion le = Gross Loans $779.2 million = Deposits $809.0 million = Total equity $121.7 million QO Asset Quality (12/31/19): = NP
Slide 5: Management Team
Y Peter Johnson Presidentand CEO 38 years with the Company 41 years in banking é Chantelle Nash ‘SVP and Chief Risk Officer 13 years with the Company ‘13,years in banking Laura Clark EVP and Chief Financial Officer 6 years wah the Company 43 years in banking a \ Mark O'Neil ‘SVP and Chief Lending Of
Slide 6: Experienced Board
EXPERIENCED BOARD Director Peter J. Johnson Lynn E. Dickey Rick F. Hays Thomas J. McCarvel Maureen J. Rude Shavon R. Cape Tanya J. Chemodurow Kenneth M. Walsh Corey Jensen Benjamin G. Ruddy Cynthia A. Utterback Experience President and CEO of Opportunity Bank and the Company Retired Partner of a maj
Slide 7: Business Strategy
BUSINESS STRATEGY a Continue to diversify our loan portfolio into commercial (C&l) and commercial real estate a Attract and retain lower-cost core deposits a Continue to expand our franchise through selective acquisitions and branch additions a Maintain high asset quality levels a Continue to operat
Slide 8: Deposit Market Share - State of Montana
DEPOSIT MARKET SHARE-STATE OF MONTANA 2 Since the acquisitions, the 4" largest banking institution headquartered in Montana in terms of deposits 2 Footprint with presence in the key Montana markets Total Deposits In Market Institution (ST) Branches __ ($000) Montana Glacier Bancorp Inc. (MT) 1 4,875
Slide 9: Montana Metropolitan Markets
MONTANA METROPOLITAN MARKETS Deposit Market Share — Missoula, MSA 2018 Rank lbiterroot Hola e oldingCo. (V E Corp. (Mt [Total For InstRutions in Market Total Deposits Inttarket (5000) 2 [Total For istRutions in Market 5.076021 The Missoula MSA is the 2" largest metropolitan area in Montana by popula
Slide 10: Montana Markets
MONTANA MARKETS Branches own a system (MT) 2 Co. (CA) 3 4 USA Ine. (14) 5. ne. (MN 0 0 [Total For institutions in Market [Total For institutions in Market a a Fastest growing area in Montana A777 a Helena's economic stability is largely due to a Home to Montana State University (16,000+ state govern
Slide 11: COVID-19 Response
COVID-19 RESPONSE a OPERATIONS 2 Most branches remain open for drive-ups, walk-ups, or ATMs 3 Online banking and mobile banking are available 3 Bankers available by appointment 2 Executive management meeting at least daily to address changing issues a CUSTOMERS 3 Updating customers through the websi
Slide 12: Company Developments
COMPANY DEVELOPMENTS 2 OnJanuary 1,2020 completed purchase of Western Bank of Wolf Point, in Wolf Point Montana. 2 OnJanuary 1,2019 completed purchase of The State Bank of Townsend, in Townsend, Montana. 2 OnJanuary 31,2018 completed purchase of Ruby Valley Bank, Twin Bridges, Montana. 2 On October
Slide 13: An Expanding Franchise
AN EXPANDING FRANCHISE—EAGLE BANCORP MONTANA, INC. 2000 MM 2000 2010 2012 2012-2016 2017 2018 2019 First Stage Second Acquisition Organic Acquisition Acquisition Acquisition Conversion Stage IPO of 7 Branches Growth of of The State from Sterling through new — RubyValley Bank of Financial lending tea
Slide 14: Financial Highlights
FINANCIAL HIGHLIGHTS 14
Slide 15: Net Interest Income & Net Interest Margin
NET INTEREST INCOME & NET INTEREST MARGIN $12,000 $10,000 $8,000 $6,000 $4,000 $2,000 $0 433% 4.31% s 4.22% 4.18% iiss 3.95% 3.95% 3.80% 3.759 B77 la SE 1QI7 2QI7 3QI7_ 4QI7_ 1Q18 2QI8 3QI8 4QI8 IQI9 2QI9 3QI9 4QI9 MME Net Interest Income Net Interest Margin 15 4.40% 4.20% 4.00% 3.80% 3.60% 3.40% 3.
Slide 16: Provision for Loan Losses
PROVISION FOR LOAN LOSSES $ in 000’s $3,000 $2,627 $2,500 $2,000 $1,833 $1,500 $1,303 <a $980 $1,000 sari a | $0 2014 2015 2016 2017 2018 2019 Provision for Loan Losses 16
Slide 17: Balance Sheet Expansion
BALANCE SHEET EXPANSION $1,200 $1,000 $800 $600 $400 $200 $0 $560 $441 15319 12/31/2014 $630 $483 15407 12/31/2015 717 $674 $ $521 $513 513 $466, | = 1231/2016 12/31/2017 WAssets =Total Loans mDeposits 17 $854 12/31/2018 $ in millions $1,054 8779 $809 12/31/2019
Slide 18: Loan Portfolio Detail
LOAN PORTFOLIO DETAIL O Since 2008, number of Commercial/Ag lenders has increased from 4 to 26 Q Total loans increased 26% comparing 12/31/19 to 12/31/18 Q C&l accounts for 9.3% of loan portfolio QO Owner-occupied CRE loans represent | 6.6% of total loans Per call report data, excludes loans held fo
Slide 19: Funding Overview - Deposit Composition
FUNDING OVERVIEW- DEPOSIT COMPOSITION December 31, 2019 Deposit Mix - Rolling 8 Quarters 100% 90% Noe 80% + Interest | : | ste creme Checking ore SEE 60% + 50% 1 Money Market 40% savings 30% Inverest Checking Savings rs if HE | i | Cee 1018 2018 3018 4Q18 1019 2019 3Q18 4019 O The deposit mix is des
Slide 20: Nonperforming Assets/Total Assets
Nonperforming Assets/Total Assets 1.20% 1.08% 1.00% 0.84% 0.80% 0.69% 0.56% 0.60% 0.60% sox . oe. 0.45% 0.40% 0.29% 0.21%. 0.20% [ 0.00% 1281/2015 1281/2016 1281/2017 1281/2018 1281/2019 MEBMT = Peer Group eer Group includes PFLX RVSB, CSHX FSBW, TSBK, SFC OVLY, CYCY, NRIM, BOCH, CZBC SSB FNRN & AMR
Slide 21: CRE Risk Management
CRE RISK MANAGEMENT Q Executive Board Level Oversight of Approval Process Q Disciplined Underwriting Q Proactive Portfolio Management Q Quarterly Stress Testing of CRE Portfolio Q Independent Credit Review 21
Slide 22: Yield and Cost of Funds
YIELD AND COST OF FUNDS Yield on Average Earning Assets Yield on Loans 6.00% 6.00% 5.00% 5.00% 4.00% 4.00% 3.00% 3.00% 2.00% 2.00% 1.00% 1.00% 0.00% 0.00% 2ISY 2016Y 2017Y -2018Y 2019 201SY 2016Y 2017Y__2018Y ~—-2019Y MEBMT Peer Group MEBMT m= Peer Group Cost of Deposits 0.60% 0.50% 0.40% 0.30% 0.20
Slide 23: Capital Strength
CAPITAL STRENGTH ($ in 000s) Total Assets Total Common Stockholders’ Equity Total Regulatory Capital Tier 1 Leverage Ratio Tier 1 Risk Based Capital Ratio Total Risk Based Capital Ratio Common Equity Tier 1 (CETI) Ratio Tangible Common Equity Ratio 2015Y 2016Y 2017Y 2018Y 2019Y $630,348 $673,925 $71
Slide 24: Year Stock Price Performance
5 YEAR STOCK PRICE PERFORMANCE i o i pare) Ware L ss ee cal bal Jan "16 Jan'17 Jan 18 Jan"19 Jan "20 -—— NASDAQ:EBMT: 35.02% @ NASDAQ:EBMT-Vol — KBW Nasdaq Bank Index: -16.99 % Source: S&P Global Market Intelligence as of April 3, 2020 Information reflects the exchange as a result of the conversion
Slide 25: Eagle Bancorp Montana
4 EAGLE BANCORP MONTANA
Eagle Bancorp Montana — Shareholder Meeting (April 2020) on 6ix