 NASDAQ:
EBMT Common Equity Offering
Investor Presentation October 2017 Free Writing Prospectus Filed Pursuant to Rule 433 Registration Statement No. 333-216983 Dated October 10, 2017 |
 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 wholly-owned subsidiary, Opportunity Bank of Montana, TwinCo, Inc. (“TwinCo”), including its wholly-owned subsidiary, Ruby Valley Bank (“Ruby Valley”), and
Eagle’s proposed acquisition of TwinCo and Ruby Valley, and may be
identified by the use of such words as "believe," "expect," "anticipate," "should," "planned," "estimated," and "potential." These forward-looking statements include, but are not limited to statements of our goals, intentions and expectations;
statements regarding
our business plans, prospects, growth and operating strategies; statements regarding the asset quality of our loan and investment portfolios; estimates of our risks and future costs and benefits; and the impact of acquisitions, including the proposed acquisition of TwinCo
and Ruby Valley. These forward-looking statements are based on
current beliefs and expectations of our management and are inherently subject to significant business, economic and competitive uncertainties and contingencies, many of which are beyond our control. In addition, these forward-looking
statements
are subject to assumptions with respect to future business strategies and decisions that are subject to change. These factors include, but are not limited to, the following: the expected costs savings, synergies and other financial benefits from Eagle’s acquisition of
TwinCo might not be realized within the expected time frames or at all;
our ability to effectively integrate TwinCo and Ruby Valley into our operations; governmental approval of the TwinCo acquisition may not be obtained or adverse regulatory conditions may be imposed in connection with governmental approvals
of the TwinCo acquisition, conditions to closing the acquisition may not be satisfied and the shareholders of TwinCo may fail to approve the consummation of the acquisition; changes in laws or government regulations or policies affecting financial institutions, including changes in
regulatory fees and capital requirements; general economic conditions,
either nationally or in our market areas, that are worse than expected; competition among depository and other financial institutions; loan demand or residential and commercial real estate values in Montana; inflation and changes
in the interest rate environment that reduce our margins or reduce the
fair value of financial instruments; adverse changes in the securities markets; and other economic, governmental, competitive, regulatory and technological factors that may affect our operations. Because of these and other uncertainties, our actual future results may be materially different from the results indicated by these forward-looking statements.
Annualized, pro forma, projected and estimated numbers in this
presentation are used for illustrative purposes only, are not forecasts and may not reflect actual results. Eagle undertakes no obligation to revise or publicly release any revision or update to these forward-looking statement to reflect events or
circumstances that occur after the date on which such statements were
made. Additional
Information About the Offering Eagle has filed a shelf registration statement on Form S-3 (including a prospectus) with the Securities and Exchange Commission
("SEC") which was declared
effective on April 28, 2017. Before you invest in the offering to which this communication relates, you should read the prospectus in that registration statement and the preliminary prospectus supplement related to the offering and the other documents Eagle has filed and will file with the SEC for more complete information about Eagle and this offering. You may get these documents for free by visiting the SEC web site at www.sec.gov. Alternatively, Eagle, any underwriter, or any dealer participating in the offering will arrange to send you the prospectus if you
request it by contacting D.A. Davidson & Co., 8 Third Street N. Great
Falls, MT 59401, or by calling toll-free (800) 755-7848.
2 |
 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 about underling trends in its business. Non-GAAP financial measures should be viewed in addition to, and not as a substitute for, Eagle's reported results prepared in accordance
with GAAP. Please see Reconciliation of GAAP to Non-GAAP Financial
Measures in the appendix to this presentation for a reconciliation to the nearest GAAP financial measure. Additional Information About the Merger and Where to Find It This presentation does not constitute an offer to sell or the solicitation of an offer to buy any securities or a solicitation of any vote or
approval, nor shall there be any sale of securities in any jurisdiction
in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such jurisdiction. In connection with Eagle’s proposed acquisition of TwinCo, Eagle will file with the Securities and Exchange Commission (the “SEC”) a registration statement on Form S-4 containing a proxy statement of TwinCo and a prospectus of
Eagle, and Eagle
will file other documents with the SEC with respect to the proposed acquisition. SHAREHOLDERS OF TWINCO ARE ENCOURAGED TO READ THE REGISTRATION STATEMENT AND ANY OTHER RELEVANT DOCUMENTS FILED WITH THE SEC, INCLUDING THE PROXY
STATEMENT/PROSPECTUS THAT WILL BE PART OF THE REGISTRATION STATEMENT, CAREFULLY AND IN
THEIR ENTIRETY WHEN THEY BECOME AVAILABLE BECAUSE THEY WILL CONTAIN
IMPORTANT INFORMATION ABOUT THE PROPOSED MERGER. The final proxy
statement/prospectus will be mailed to shareholders of TwinCo. Potential investors and
security holders will be able to obtain the documents, and any other
documents Eagle has filed with the SEC, free of charge at the SEC's website, www.sec.gov. In addition, documents filed with the SEC by Eagle will be available free of charge by (1) accessing Eagle’s website at www.opportunitybank.com under the “Investor Relations” link and then under the heading “SEC Filings”, (2) writing Eagle at 1400 Prospect Avenue, P.O. Box 4999, Helena, MT 59604, Attention: Investor Relations, or
(3) writing TwinCo at 107 South Main, P.O. Box 417, Twin Bridges, MT
59754, Attention: Ken Walsh. Eagle,
TwinCo, their respective directors and executive officers and other members of management and employees may be considered participants in the solicitation of proxies in connection with the proposed transaction. Information about the directors and executive officers of Eagle is
set forth in its proxy statement for its 2017 annual meeting of
shareholders, which was filed with the SEC on March 14, 2017 and its Current Reports on Form 8- K. Other information regarding the participants in the proxy solicitations and a description of their direct and indirect interests, by security
holdings or otherwise, will be contained in the proxy
statement/prospectus and other relevant materials to be filed with the SEC when they become available. 3 |
 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) Use of Proceeds: General corporate purposes, including potential future acquisitions and to support continued organic growth. Company intends to contribute $10 million of net proceeds to subsidiary, Opportunity Bank of Montana (“Opportunity Bank”) Lock-Up Agreement: 90 days Book-Running Manager: D.A. Davidson & Co. Co-Manager: FIG Partners, LLC Offering Overview 4 |
 $710 million total asset size commercial bank headquartered in Helena, MT (1) 7 largest bank headquartered in Montana and 3 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 growth and improved diversification over the past several years Gross loans held for investment have grown at a 23.7% compound annual growth rate over the last 5 years Strategically positioned with 14 branch locations in attractive markets in Montana Experienced management team and Board of Directors with proven track record of execution on strategic initiatives Strong asset quality Pending acquisition provides opportunity for further diversification and scale Favorable valuation metrics relative to peer groups 5 Investment Highlights (1) As of June 30, 2017 (2) Based on FDIC deposit data as of June 30, 2017 (3) Including pending acquisitions Source: FDIC and Company filings th rd |
 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): Assets $710.2 million Gross loans $508.1 million (1) Deposits $514.3 million Shareholders’ equity $62.1 million Asset Quality (6/30/17): NPAs/assets – 0.31% (2) Profitability (Q2’17): Net income of $1.1 million Net interest margin – 3.65% ROAA – 0.61% ROAE – 6.97% Current Dividend: $0.09 quarterly 1.91% current dividend yield (3) Montana Missoula Hamilton Billings Townsend Butte Bozeman Livingston Big Timber Opportunity Bank Branches 6 Helena Great Falls Overview of Eagle Bancorp Montana, Inc. Source: Company filings and SNL Financial (1) Gross loans including loans held for investment (2) Includes nonperforming assets and loans 90 days or more delinquent but still accruing interest
(3) Based on $18.80 closing price for EBMT shares on 10/5/2017 |
 Experienced
Management Peter J. Johnson
President Chief Executive Officer • Has served as President and Chief Executive Officer since December 2009 • 36 years with the Bank • 38 years of banking experience Laura F. Clark Senior Vice President Chief Financial Officer • Has served as EVP and Chief Financial Officer since March 2014 • 3 years with the Bank • 42 years of banking experience Rachel R. Amdahl Senior Vice President Chief Operations Officer • Has served as SVP and Chief Operations Officer since February 2006 • 30 years with the Bank • 30 years of banking experience Tracy A. Zepeda Senior Vice President Chief Retail Officer • Has served as SVP and Chief Retail Officer since December 2012 • 4 years with the Bank • 17 years of banking experience Dale Field Senior Vice President Chief Credit Officer • Has served as SVP and Chief Credit Officer since July 2014 • 16 years with the Bank • 20 years of banking experience Chantelle Nash Senior Vice President Chief Risk Officer • Has served as SVP and Chief Risk Officer since July 2014 • 10 years with the Bank • 10 years of banking experience Mark O’Neill Senior Vice President Chief Lending Officer • Has served as SVP and Chief Lending Officer since October 2017 • 1 year with the Bank • 21 years of banking experience 7 |
 8 Experienced Board Director Experience Year 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 of a major Montana certified pubic accounting firm 2005 Rick F. Hays Retired President of a Montana telecommunications company 2007 Thomas J. McCarvel Retired Vice President of Carroll College 1998 Maureen J. Rude Executive Director of Montana Homeownership Network/NeighborWorks Montana 2010 Shavon R. Cape Co-founder of JWT Capital, LLC, a real estate development and operating company
2015 Tanya J. Chemodurow President of Abatement Contractors of Montana, LLC, specializing in environmental remediation
2015 |
 9 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 commercial and industrial (“C&I”) and commercial real
estate (“CRE”)
Attract and retain lower-cost core deposits
Expand mortgage lending platform
Offer full suite of products and services to meet customers’ banking
needs Maintain and improve strong asset quality standards
Approach to Business |
  Deposit Market Share - Montana The 7 largest banking institution headquartered in Montana in terms of deposits Pro-forma for the pending TwinCo, Inc. acquisition the Company will be the
5 largest banking institution headquartered in Montana Diverse footprint with presence in the key Montana markets 10 Deposit Market Share - Montana Source: FDIC and SNL Financial; current deposit data as of 6/30/2017 Note: All deposits in thousands 2017 Rank 2016 Rank Institution (State) Number of Branches Deposits in Market Deposit Growth (1-Year) Market Share 1 1 First Interstate BancSystem (MT) 49 4,082,308 $ +2.1% 17.75% 2 2 Glacier Bancorp Inc. (MT) 54 3,784,614 $ +4.6% 16.45% 3 3 Wells Fargo & Co. (CA) 41 2,927,070 $ +2.3% 12.73% 4 4 Stockman Financial Corp. (MT) 37 2,424,415 $ +3.8% 10.54% 5 5 U.S. Bancorp (MN) 25 2,328,998 $ +0.4% 10.13% 6 6 Inter-Mountain Bancorp. Inc. (MT) 11 855,296 $ -0.1% 3.72% 7 9 Montana Security Inc. (MT) 7 544,546 $ +8.7% 2.37% 8 7 Yellowstone Holding Co. (MT) 9 523,667 $ +1.8% 2.28% 9 8 Eagle Bancorp Montana, Inc. (MT) 14 514,612 $ +1.1% 2.24% 10 10 Heartland Financial USA Inc. (IA) 10 416,436 $ +2.6% 1.81% Total For Institutions In Market 383 $ 23,000,591 +3.1% th th |
   Market
Demographic Data by County 11
Source: FIDC, BLS, SNL Financial and Nielsen as of 10/3/2017
(1) In July 2017, the Company converted its loan production office in Great Falls,
Montana to a branch office 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 County
Number of Branches EBMT Deposits in Market ($000) Market Rank Total Population 2018 Population Change 2010-2018 Projected Population Change 2018-2023 Projected HH Income Change 2018-2023 Unemployment Rate (August 2017) Lewis and Clark 3 $172,244 4 68,262 7.7% 4.8% 4.5% 3.0% Gallatin 2 $104,553 9 109,153 21.9% 9.2% 13.1% 2.0% Silver Bow 1 $67,861 4 34,560 1.1% 1.8% -0.3% 3.5% Missoula 2 $40,183 9 118,355 8.3% 5.5% 2.9% 3.1% Park 1 $32,125 5 16,297 4.2% 3.9% 8.9% 2.7% Sweet Grass 1 $28,542 3 3,616 -1.0% 1.1% 7.4% 2.7% Yellowstone 1 $25,314 10 160,797 8.7% 5.0% 11.3% 3.2% Ravalli 1 $22,965 6 42,796 6.4% 4.9% 3.9% 3.8% Broadwater 1 $20,825 2 5,792 3.2% 3.3% 10.8% 3.7% Cascade (1) 1 $0 10 81,564 0.3% 1.3% 11.3% 3.3% Montana - - - - 6.8% 4.4% 8.5% 3.9% National - - - - 5.8% 3.5% 8.9% 4.4% EBMT Market Presence Population Statistics Income and Unemployment Statistics |
 Deposit Market Share – Yellowstone County Source: FDIC, SNL Financial and Nielsen Note: Deposit data as of 6/30/2016; all deposits in thousands (1) Nielsen (2) August, 2017 BLS data 12 Deposit Market Share – Missoula County Yellowstone County is the largest county in Montana by population (1) Missoula County is the 2 largest county in Montana by population (1) Billings, the county seat, is the largest city in Montana with over 110 thousand residents (1) Low unemployment rate of 3.20% (2) Significant investment and activity by energy industry Regional hub for healthcare and trade Home to the University of Montana (12,000+ students) Regional hub for a wide range of retail, professional and service activities Key Montana Markets nd 2017 Rank 2016 Rank Institution (State) Number of Branches Deposits in Market Market Share 1 1 First Interstate BancSystem (MT) 4 694,162 $ 29.54% 2 2 Glacier Bancorp Inc. (MT) 7 621,157 $ 26.43% 3 3 Wells Fargo & Co. (CA) 3 352,554 $ 15.00% 4 4 U.S. Bancorp (MN) 3 250,965 $ 10.68% 5 5 Bitterroot Holding Co. (MT) 6 159,522 $ 6.79% 6 6 Bancorp of Montana Holding Co. (MT) 1 76,018 $ 3.23% 7 9 Stockman Financial Corp. (MT) 2 50,996 $ 2.17% 8 7 Forstrom Bancorp. Inc. (MN) 1 43,479 $ 1.85% 9 8 Eagle Bancorp Montana, Inc. (MT) 2 40,183 $ 1.71% 10 10 Farmers State Financial Corp. (MT) 2 32,162 $ 1.37% Total For Institutions In Market 34 $ 2,349,893 2017 Rank 2016 Rank Institution (State) Number of Branches Deposits in Market Market Share 1 1 First Interstate BancSystem (MT) 9 1,161,516 $ 25.25% 2 2 U.S. Bancorp (MN) 5 1,050,098 $ 22.83% 3 3 Wells Fargo & Co. (CA) 5 724,655 $ 15.75% 4 4 Glacier Bancorp Inc. (MT) 7 591,005 $ 12.85% 5 5 Stockman Financial Corp. (MT) 6 554,239 $ 12.05% 6 6 Yellowstone Holding Co. (MT) 5 330,360 $ 7.18% 7 7 Heartland Financial USA Inc. (IA) 3 95,673 $ 2.08% 8 8 Beartooth Financial Corp. (MT) 1 34,118 $ 0.74% 9 10 Antler Land Co. (MT) 1 32,717 $ 0.71% 10 9 Eagle Bancorp Montana, Inc. (MT) 1 25,314 $ 0.55% Total For Institutions In Market 44 $ 4,599,695 |
 13 Deposit Market Share – Gallatin County Bozeman, the county seat, is the fastest growing community in Montana (1) Healthcare industry rapidly expanding (2) High-tech center of Montana (3) Home to Montana State University (16,000+ students) Deposit Market Share – Lewis and Clark County Economic stability is largely due to state government, regional healthcare, education, and small business 60% of the Lewis and Clark County workforce is connected to state and government positions (4) Unemployment rate at 3.00% for Lewis & Clark County (5) Key Montana Markets Source: FDIC, SNL Financial and Nielsen Note: Deposit data as of 6/30/2017; all deposits in thousands (1) U.S. Census Bureau (2) Bozeman Daily Chronicle (3) Fast Company (4) Helena Chamber of Commerce (5) August, 2017 BLS data 2017 Rank 2016 Rank Institution (State) Number of Branches Deposits in Market Market Share 1 2 Glacier Bancorp Inc. (MT) 7 379,598 $ 27.71% 2 3 First Interstate BancSystem (MT) 5 296,781 $ 21.67% 3 1 Wells Fargo & Co. (CA) 4 252,422 $ 18.43% 4 4 Eagle Bancorp Montana, Inc. (MT) 3 172,244 $ 12.57% 5 5 U.S. Bancorp (MN) 1 125,173 $ 9.14% 6 6 Stockman Financial Corp. (MT) 2 64,958 $ 4.74% 7 7 Ascent Bancorp (MT) 1 39,459 $ 2.88% 8 9 Countricorp (MT) 1 15,573 $ 1.14% 9 8 Forstrom Bancorp. Inc. (MN) 1 14,373 $ 1.05% 10 10 First Community Bancorp Inc. (MT) 1 9,252 $ 0.68% Total For Institutions In Market 26 $ 1,369,833 2017 Rank 2016 Rank Institution (State) Number of Branches Deposits in Market Market Share 1 1 Inter-Mountain Bancorp. Inc. (MT) 7 618,307 $ 22.10% 2 2 First Interstate BancSystem (MT) 6 393,295 $ 14.06% 3 3 Glacier Bancorp Inc. (MT) 5 358,501 $ 12.81% 4 4 Wells Fargo & Co. (CA) 2 306,125 $ 10.94% 5 5 U.S. Bancorp (MN) 2 259,819 $ 9.29% 6 6 Stockman Financial Corp. (MT) 4 242,527 $ 8.67% 7 7 Guaranty Dev. Co. (MT) 3 202,004 $ 7.22% 8 8 MSB Financial Inc. (MT) 4 152,008 $ 5.43% 9 9 Eagle Bancorp Montana, Inc. (MT) 2 104,553 $ 3.74% 10 10 Bozeman Bancorp Inc. (MT) 1 62,323 $ 2.23% Total For Institutions In Market 41 $ 2,797,959 |
 14 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 unsecured notes in a private placement offering Mortgage origination team is in the top 4 of market share in Helena, Bozeman, Butte and Missoula Company Developments |
 TwinCo,
Inc. Acquisition EBMT Branch
TwinCo Branch Pro-forma Branch Map Establishes Opportunity Bank as the fifth largest bank headquartered in Montana with over $800 million in pro-forma assets and 16 branch locations in key Montana markets Acquisition provides the Company with a significant expansion of its agricultural lending capability and skills to be leveraged throughout Montana Ruby Valley has an attractive core deposit base with a 0.19% cost of funds, 26% non interest bearing deposits and 76% non time deposits Ruby Valley’s current President and CEO , Ken Walsh, will join the Company’s Board and lead Opportunity Bank’s effort in Madison County Strategic Rationale On September 5, 2017, the Company entered into an agreement to acquire TwinCo, Inc., the holding company for Ruby Valley, headquartered in Twin Bridges, MT Ruby Valley Bank has been serving the local community for over 100 years TwinCo common stock will be exchanged for 11.1540 shares of Eagle and $247.16 per share in cash (45% stock / 55% cash mix) Transaction Overview Pro-Forma Financial Summary Aggregate Deal Value: (1) $17.8 million Deal Value / TBV: (1)(2) 125.9% Deal Value / LTM Earnings: (1)(3) 14.4x Pro-Forma Assets: $806 million Pro-Forma Gross Loans: $563 million Pro-Forma Deposits: $592 million 15 (1) Pro-forma metrics based on the Company’s closing stock price prior to announcement of $17.60
(2) See appendix for non-GAAP financial reconciliation (3) LTM net income tax adjusted at 35% to reflect TwinCo’s S-Corporation status |
 Financial Performance |
 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.
Net interest margin was 3.65%, which was up four basis points compared to the
preceding quarter and a 34 basis point improvement compared to the second
quarter a year ago.
Revenues (net interest income before the provision for loan losses, plus
non-interest income) increased 8.0% to $9.5 million compared to $8.7
million in the same period a year ago.
Total gross loans held for investment increased 14.5% to $508.1 million at June 30,
2017, compared to $443.9 million a year earlier.
Commercial real estate loans increased 22.5% to $246.0 million, or 48.4% of total
loans, at June 30, 2017, compared to $200.8 million, or 45.2% of total
loans, a year earlier.
Capital ratios remain strong with a tangible common shareholders’ equity ratio of
7.79% at June 30, 2017.
(1) Announced increase of quarterly cash dividend by 12.5% to $0.09 per share. 17 EBMT: Second Quarter 2017 Highlights Source: Company press release and filings (1) See appendix for non-GAAP financial reconciliation |
 18 Increased Loan Production and Margin Net Interest Income and Net Interest Margin Gross Loans (Held for Investment) Source: Company data as of 6/30/2017 Note: All dollars in thousands $2,000 $2,500 $3,000 $3,500 $4,000 $4,500 $5,000 $5,500 $6,000 $6,500 3.00% 3.10% 3.20% 3.30% 3.40% 3.50% 3.60% 3.70% 3.80% 3.90% 4.00% Net Interest Income Net Interest Margin $200,000 $250,000 $300,000 $350,000 $400,000 $450,000 $500,000 $550,000 Gross Loans (Held for Investment) |
 19 Loan Portfolio Composition – 6/30/2017 Total gross loans increased 12.8% 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 4.63% at 12/31/16 Total real estate exposure is 84%; but only 15% is construction and land development (“C&D”) Owner-occupied CRE loans represent 19% of total loans Loan Portfolio Detail – Opportunity Bank Source: Bank call report data as of 6/30/2017 (1) Total loans and leases including loans held for investment and held for sale (2) Year-to-date as of 6/30/2017 Total Gross Loans (1) : $524.3 million Yield on Loans: 4.82% (2) |
 20 CRE and C&D Loan Detail C&D Concentration by Type (% of total) CRE Concentration by Location (% of total) Source: Company data as of 6/30/2017 Billings 11% Bozeman 33% Butte 12% Great Falls 5% Missoula 7% Helena 31% Other 1% Res. Const (1-4 Fam) 8% Res. Const (Owner Occ.) 20% Res. Land Dev/ Sub Div 10% Other 1% Comm Const (Building)
33% Land Dev. (Non 1-4)
10% Land/Lot (Non-Farm)
18% |
 Deposit
mix and cost continues to improve as the Company continues to implement its
commercial strategy Cost of deposits has declined from 35 basis points in 2014 to 29 basis points at 2Q’17
Non-Interest Bearing accounts represent approximately 18% of total deposits at
2Q’17 MMDA & Checking accounts represent over 53% of total
deposits at 2Q’17 Deposit Composition
21 Deposit Composition – 6/30/2017 Total Deposits and Cost of Deposits Source: Company data as of 6/30/2017 Note: All dollars in millions Non-Interest Bearing Checking 17.9% Interest- Bearing Checking 18.5% MMDA 17.3% Savings 17.3% CDs < $100k 14.4% CDs > $100k 14.7% |
 22 Non-Performing Assets / Total Assets (1) Disciplined Credit Culture Source: SNL Financial; holding company data as of 6/30/2017 where available Note: Regional peer group includes NASDAQ/NYSE traded banks headquartered in CO, ID, MT, OR, UT, WA and WY with total assets under $5 billion;
excludes pending merger targets Note: U.S. peer group includes
NASDAQ/NYSE traded banks headquartered nationwide with total assets between $700 million and $1 billion; excludes pending merger targets (1) Includes nonperforming assets and loans 90 days or more delinquent but still accruing interest
0.29% 0.50% 0.29% 0.31% 1.37% 1.47% 0.92% 1.08% 1.91% 1.49% 1.13% 1.11% 0.00% 0.25% 0.50% 0.75% 1.00% 1.25% 1.50% 1.75% 2.00% 2.25% 12/31/14 12/31/15 12/31/16 6/30/17 EBMT Regional Peers U.S. Peers |
 23 Diluted Earnings Per Share and Dividends Per Share Strong Track Record of Generating Shareholder Value Tangible Book Value Per Share (1) Source: Company data as of 6/30/2017 (1) See appendix for non-GAAP financial reconciliation |
 24 Price / TBV (2) Dividend Yield Price / LTM EPS Price / 2017E EPS (1) Favorable Valuation Metrics Relative to Peer Groups 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, UT, WA or WY with total assets under $5 billion; excludes pending merger targets Note: U.S. peer group includes NASDAQ/NYSE traded banks headquartered nationwide with total assets between $700 million and $1 billion;
excludes pending merger targets (1)
Based on S&P CapitalIQ mean EPS estimate for 2017
(2) See appendix for non-GAAP financial reconciliation |
 $710 million total asset size commercial bank headquartered in Helena, MT (1) 7 largest bank headquartered in Montana and 3 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 growth and improved diversification over the past several years Gross loans held for investment have grown at a 23.7% compound annual growth rate over the last 5 years Strategically positioned with 14 branch locations in attractive markets in Montana Experienced management team and Board of Directors with proven track record of execution on strategic initiatives Strong asset quality Pending acquisition provides opportunity for further diversification and scale Favorable valuation metrics relative to peer groups 25 Investment Highlights (1) As of June 30, 2017 (2) Based on FDIC deposit data as of June 30, 2017 (3) Including pending acquisitions Source: FDIC and Company filings th rd |
 Appendix |
 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 $ 60,035 $ 59,456 $ 60,035 $ 62,122 $ Goodwill and Core Deposit Intangibles, net (GAAP) (7,622) (7,584) (7,548) (7,515) (7,483) (7,450) (7,418) (7,390) (7,362) Tangible Common Shareholders' Equity (non-GAAP) 46,085 $ 46,840 $ 47,902 $ 49,004 $ 51,521 $ 52,585 $ 52,038 $ 52,645 $ 54,760 $ Common Shares Outstanding at end of Period 3,822,981 3,776,916 3,779,464 3,779,464 3,779,464 3,779,464 3,811,409 3,811,409 3,811,409 Book Value per Share (GAAP) 14.05 $ 14.41 $ 14.67 $ 14.95 $ 15.61 $ 15.88 $ 15.60 $ 15.75 $ 16.30 $ Tangible Book Value per Share (non-GAAP) 12.05 $ 12.40 $ 12.67 $ 12.97 $ 13.63 $ 13.91 $ 13.65 $ 13.81 $ 14.37 $ Total Assets (GAAP) 583,367 $ 611,409 $ 630,347 $ 643,004 $ 663,336 $ 674,495 $ 673,925 $ 683,677 $ 710,214 $ Goodwill and Core Deposit Intangibles, net (GAAP) (7,622) (7,584) (7,548) (7,515) (7,483) (7,450) (7,418) (7,390) (7,362) Total Tangible Assets (non-GAAP) 575,745 $ 603,825 $ 622,799 $ 635,489 $ 655,853 $ 667,045 $ 666,507 $ 676,287 $ 702,852 $ Tangible Common Equity / Tangible Assets (%) 8.00% 7.76% 7.69% 7.71% 7.86% 7.88% 7.81% 7.78% 7.79% TwinCo, Inc. (Dollars in Thousands, except per share data) 6/30/2017 Shareholders' Equity (GAAP) 14,564 $ Goodwill (GAAP) (422) Tangible Common Shareholders' Equity (non-GAAP) 14,142 $ Source: Company filings and unaudited financials for TwinCo |
 |