Eagle Bancorp, Inc. · NASDAQ:EGBN
Eagle Bancorp — Merger or Acquisition (June 2014)
12 slides from Eagle Bancorp's merger presentation, Jun 9, 2014
Slide 1: Announces the Acquisition of: A High Performing Community Bank
Announces the Acquisition of: A High Performing Community Bank in Strategic Growth Market June 9, 2014 Ticker: EGBN www.eaglebankcorp.com
Slide 2: Forward Looking Statements
Forward Looking Statements: This press release 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 Eagle’s operations and policies a
Slide 3: Transaction Summary
Transaction Summary Virginia Heritage Bank is acquired and merged into EagleBank Deal Structure Combining two strong well capitalized community banks Transaction value of $182.9 million or $29.00 per share Fixed price within range of EGBN price of $29.00 to $35.50 Consideration Above range
Slide 4: Transaction Perspective
Transaction Perspective High performing bank with strong credit quality Solidifies Eagle as the largest community bank in the Washington D.C. metro area, with opportunity for continued growth in Northern Virginia Rationale Seasoned management with expanded local knowledge Similar operating s
Slide 5: Combining Two High Performing Banks
Combining Two High Performing Banks Eagle Virginia Heritage Eagle Virginia Heritage Peer Average Peer Average NPAs / Assets 1.40% 1.43% 0.30% 2.22% LTM NCO / Avg. Loans 0.18% 0.36% 0.05% 0.61% Reserves / Loans 1.36% 1.32% 1.36% 1.44% Core Return on Assets1 1.36% 0.94% 1.07% 0.77% Core Return on Equi
Slide 6: Virginia Heritage Bank Overview
Virginia Heritage Bank Overview Growing community bank in Eagle’s target market Total Assets ($mm) Loans, Net ($mm)1 Six branches in Northern Virginia $1,000.0 $894.8 $917.4 $800.0 $900.0 $696.1 $715.8 Attractive demographic trends $781.6 $700.0 $800.0 $579.3 Growing market of small and $700
Slide 7: Increased Market Share in Region
Increased Market Share in Region Pro Forma Northern Virginia Deposit Market Share Pro Forma DC Metropolitan Area Deposit Market Share Local 2013 6/30/2012 6/30/2013 Annual 2013 Local 2013 6/30/2012 6/30/2013 Annual 2013 Rank Rank Company Name Branches Balance Balance Growth Market Share Rank Rank Co
Slide 8: Pro Forma Footprint
Pro Forma Footprint Acquisition materially accelerates goal of expansion in Northern Virginia Virginia branches provide opportunities for consolidation Eagle Bancorp, Inc. Virginia Heritage Bank 7
Slide 9: Pro Forma Financial Impact
Pro Forma Financial Impact Key Assumptions Pro Forma Impacts Approximately 75% stock / 25% cash split in consideration ~4.8% accretion to EGBN in EPS Impact 20152 Gross credit mark on loans of 1.60% Fair market value adjustments applied to loans, deposits and borrowings ~5.5% dilutive to E
Slide 10: Combined Loan & Deposit Composition
Combined Loan & Deposit Composition Virginia Heritage Bank Eagle Bancorp, Inc. Combined Other Consumer Consumer 0% 0% 3% Other Other 1% 1% Consumer C&I C&I C&I 14% 25% 21% 7% LOANS Const & Land Const & Land Const & Land 18% 21% 20% Resi 10% Resi Resi 11% 11% CRE CRE CRE 51% 42% 44% 1 1 1 Total Loans
Slide 11: Transaction Summary
Transaction Summary Enhances Eagle footprint in high growth Northern Virginia market Additional Virginia branches Pro forma number 12 ranked deposit market share in Northern Virginia Pro forma number 10 ranked deposit market share in Washington, D.C. metro area Demonstrated quality loan gr
Slide 12: Virginia Heritage Bank – An Honor Roll Company
Virginia Heritage Bank – An Honor Roll Company SNL Financial Top 100 Community Banks 2013 #40 of Top 200 Community Banks, 2013 Bauer Financial Washington Business Journal Five Star Rated, 2013 Top 20 SBA Lender, 2013 11