Eagle Bancorp, Inc. · NASDAQ:EGBN
Eagle Bancorp — Sandler O'Neill + Partners East Coast Financial Services Conference 2012
50 slides from Eagle Bancorp's conference presentation, Nov 15, 2012
Slide 1: Sandler O'Neill East Coast Financial Services Conference
” @EAGLE BANCORP INC. Sandler O’ Neill + Partners East Coast Financial Services Conference November 15, 2012 Ticker: EGBN www.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 an
Slide 3: Company Overview
Company Overview Eagle Bancorp, Inc. is a growth oriented community bank headquartered in Bethesda, Maryland Focused on the Washington, DC metropolitan area, with 17 current branches and 1 under development Commercially oriented business model with deep relationships of loans, core deposits and rela
Slide 4: History of Growth
History of Growth Founding members had extensive banking experience ‘Commenced operations with three Maryland branches - July, 1998 Raised $46.5 million in initial and secondary subscription offerings - 1997* and 2003+ Reached $500 million in assets in 2004 Private placement of $12.1 million of subo
Slide 5: Summary Statistics — September 30, 2012
| Summary Statistics — september 30, 2012 Total Assets: $3.0 billion Total Loans: $2.4 illon Total Deposits: $2.5 billion Tangible Common Equity (adjusted for capital raised in October, 2012): $278.6 milion (2) Tangible Book Value per Common Share (adjusted for capital raised in October, 2012): $12.
Slide 6: Attributes of EagleBank
Attributes of EagleBank > > > = v v Driven by Profitability - 15 Consecutive Quarters of Increasing Earnings EPS Growth — 43.15% CAGR in Quarterly EPS over past 3 years Superior Net Interest Margin - 4.44% Balanced Organic Growth of Loans and Deposits Geographic Market Positioning Experienced and De
Slide 7: EagleBank Locations
EagleBank Locations “a a County Montgomery County Reston vas al oar ‘Tysonls Corner Prince George's ‘Washington, DC County Fairfax County = 96 a Fy Mexifictd| -Askingtea id S ta ‘Alexandria A : 1
Slide 8: Deposit Market Share
| Deposit Market Share ‘WAS MEO Ee METROPOLITAN ARI (Set Yo Foret) wm mm Metpstes Pred Fae%201 Jaentz0R ek 1 ink eed Rk Tea nk Baker Campy ame ‘Gy Ste lkt Race we Geoeh Matstone opts Mom vA ee ee ee 79% FH TenteDaken ie Toto © MAM mA mk 2 Mem aptamer Bek ean VA 2B aammsmis OmeLam B wes die Piaty WY
Slide 9: Financial Indicators — Regional Peer Analysis
| Financial Indicators — Regional Peer Analysis Regional EGBN EGBN _EGBN_ Pees (1) ‘Key Ratios (ator forthe quarter ended) 9302010 9302011 93072012 9/30/2012 = Net Interest Margin (2) 415% — 4Ad% = 3.58% = Efficiency Ratio 58.68% 54.43% 50.07% 67.95% Non-Interest Income/Total Revenue 10.59% 12.15% 2
Slide 10: Financial Indicators — Local Peer Analysis
Financial Indicators — Local Peer Analysis EGBN _ Peers Loan Growth (September 30, 2011 - September 30, 2012) © Commercial & Industrial 13.6% (14.09) = Commercial Real Estate 22.7% 13.0% ‘= Construction & Development 11.7% 44% = Total Loans 18.1% 6.1% Deposit Growth (September 30, 2011 - September 3
Slide 11: Consistent Balance Sheet Growth
i i Consistent Balance Sheet Growth $3,000 Total Assets || (UU I UMMAH 0798 0794 OBQI G82 0893 OBQ4 OAQI O92 0AQ3 09Q4 1OQI 1092 1093 1094 11QI 11Q2 1193 11Q4 12QI 1292 1298, 9 cy 327504 $2500 322504 $2000 31,3504 $1,500 si2504 31,0004 sis0- ss00 s2s0 cm (0) Regina pees bela pubbly tae commer bars w
Slide 12: Growth in Pre-Tax, Pre-Provision Income
Growth in Pre-Tax, Pre-Provision Income apes Quarterly Pre-Tax Pre-Provision Net Revenue 319052 sispo04 18,0004 $17,9004 169004 15,9004 14,0004 130004 $12,9004 s1,9004 10,0004 39,0004 $0004 $7,0004 $6,0004 $5004 $4,004 $3,004 $2,0004 $1,0004 so Milion of Dolls 0793. 07Q4 OBI BZ 083 BQH 091 O92 0993
Slide 13: Consistent Net Income Growth
| Consistent Net Income Growth EiNet Income Available to Common IIT ARP Dividend EISBLF Dividend ‘10,0. $8,000 $8,000. 7000. $6000 $5,000. Thowsands of Dollie $4,000. $3,000. $2,000. $1000. $0. 10793 0794 '08Q1 "0892 0893. G84 0901 "08q2 0993 0994" 10QI "1092 1093 "10g "1101 a Cade $3575 niga" 11q3
Slide 14: Geographic Detail of Loan Portfolio
| Geographic Detail of Loan Portfolio Prace Georg’ 2978 6382—«3369DLETL— AS72585? L9SL 10S ISZSST. 81% Otter MD 22382 27898617975 31,127 387941775. 2679954 10.4% Vagina Ascari 1045311962554 1594355336619 a 279 - 10610 24s | 8B 77 6ST 2.2% Loudon 3309 B15 SB ~ (LO; 2A2ME «10% Pinos Wiliam 29642082 45
Slide 15: Credit Quality Trends
Credit Quality Trends (ollars Values m Thousands) 30-89 Days Past Due Norperforming Assets: 90 or More Days Past Due Noracerual Restructure Loans ‘Total Nomp erforming Loans (NPL®) Other Real Estate Owned (OREO) Total Norperforming Assets NPAs + 90 Days Past DueAssets (1) Reserves Reserves/Loans Res
Slide 16: Consistent Asset Quality
Consistent Asset Quality Total Loans Tas eorage Growth NPAs Chargers (000's) ams Saas L78% oe re ae Lam oa mo $m La 0.35% wi $3 La one zoaym__$_ sams 135% fea Wet Charge OF story Experience 2008:2011 GEN GEN Peers a een oan Type DicAve 3¥eAve S¥eAve income Producing CRE 0M OHH 6% Owner Occupied (RE
Slide 17: Balanced Loan and Deposit Growth
Balanced Loan and Deposit Growth $3,000,000,000 $2,500,000,000 §$2,000,000,000 $1,500,000,000 $1,000,000,000 “2 POEREP PEEP EREP OE w se Total Loans Total Deposts COE ANY Depa axe Ur “a Wea aapeAP 16
Slide 18: Deposit Composition
| Deposit Composition (2a a bn Passa) Deposit Type of of tot Balance Total Babnce Total Balance Total __% Noniterest Bearing T_485,089 B0% 3 688,506 Tea% “T_ 796,654 3% 630% Interest Bearing Transaction 69,762 3.3% 20,105 33% = 112,901 45% 618% Core Savings & Money Market* 958,830 45.0% 1,015,799 42
Slide 19: Superior Relationships/Net Interest Margin
Superior Relationships/Net Interest Margin ee EGEN 5.25% Pe 475% Ties] 425% \ aoe 4.49 Pid [Net Interest Margin (96) Sey’ 3.25% a ne 3.584 3Q2007 4Q0007 1Q2008 2Q2008 3Q2008 4Q2008 1Q2009 2Q2009 3Q2009 4Q2009 1Q2010 2Q2010 3Q2010 4Q2010 192011 fey ss 8 RBRRRRR gg<eeseg ‘Not: Regional pei includes po
Slide 20: Capital Strength
| Capital Strength (otters Value sin Thousands) Total Assets $ 3219,746 $ 2831255 $ 2815549 $ 2962897 $ 2975188 $ 2990846 Total Capital S 258463 $ 266,711 $ 276008 $ 2902 $ 324399 $ 330957 Tier 1 Leverage Ratio 9.61% 8.21% 9.33% 9.65% 10.36% 10.85% Tier 1 Risk Based Capital Ratio 10.49% 10.23% 10.08
Slide 21: Nationally Recognized Financial Performance
| Nationally Recognized Financial Performance = 2012 “Top Investment Idea” Recommendation = 2011 “Sm-All Stars” Designation = Honor Roll of Community Banks 2010 sin Fanci Sr & 2011 " Designated as a “Grower” Bank 2012 * Ranked 39" among Best Performing SNL Community Banks in the U.S. 2011 = Top 150
Slide 22: Highly Regarded by Bank Rating Firms
| Highly Regarded by Bank Rating Firms FIRM RATING IDC 266/300 ( Analyze the Future VERIBANC Green - * = BAUERFINANCIAL, INC Jooodok
Slide 23: Market Information — Washington, DC MSA
Market Information —Washington, DC MSA = Population a 5th largest market in the U.S. = Employment a 41,000 new jobs created in last year a Average annual job creation is 30,500 over last decade a Highest in net new job growth in the U.S. over last decade a Unemployment rate of 5.5% vs. US average of
Slide 24: Unemployment Rate - Largest US Markets
Unemployment Rate- Largest US Markets August, 2012 LE 3 TE on a a wo B sted BLS, NOT Seasonally Adius Source:
Slide 25: Average Sales Price Percent Change Washington MSA
Average Sales Price Percent Change Washington MSA All Housing Types Annual Change Annual Change by Month 2008 2009 2010 2011 2012 Source: MRIS, GMU Center for Regional Analysis 4
Slide 26: Greater Washington Economy
Greater Washington Economy jos HealtVE duration, Medka on University, Center for Regicnal Analysie 25
Slide 27: Key Success Factors
Key Success Factors = Building and maintaining core relationships = Maintenance of strong credit culture ° ° ° ° ° ° Conservative underwriting criteria and loan policies Disciplined Committee Approval and Review Process Limited Individual Authority Periodic Loan and Portfolio Stress Testing Asset Ba
Slide 28: Key Success Factors (continued)
Key Success Factors (continued) = Maintained focus on areas of strength ° Concentration on core geographic markets and products = Built the proper infrastructure to support the increased volume of business and regulation = Significant Management and Board level reporting = Human Resources ° Addition
Slide 29: Looking Ahead
Looking Ahead Capitalize on investment in Northern Virginia market Emphasis on Organic Growth o Hire seasoned lenders and business development officers o Expand customer base o Focus on relationships to increase deposit penetration and multiple product usage Profitability o Continued focus on Net In
Slide 30: EGBN Stock Price Performance
| EGBN Stock Price Performance Price Change (%) Stock Price Performance 1 Year 3 Year 5 Year EGEN 50.4% 123.1% 36.1% NASDAQ Bank Stock Index 17.8% 184% 36.49% S&P 500 Index 12.7% 36.3% 8.8% 29 Some: SNL Fie Blonbeg, Chat ad clas a ofa, Octber 31, 2012
Slide 31: Appendices
Appendices 30
Slide 32: Conservative Securities Portfolio
| Conservative Securities Portfolio US temurySecuates 5 - 5 : e qs ons US Covenant Agency Secustes ans 1s : 628 6 Mongage Bled Secures “OSB, pod 5 rer aoe Montyal Bondy “8 Sos 2 =m Bee Other Bi reson, ‘a = = ea Oe TosalSecuts eo CCS =z ee Tose US temuySecuates 5 E 5 e ee J 00s 1S Govenuens Agency Se
Slide 33: Loan Portfolio Trends
| Loan Portfolio Trends (hte te 9 hans) [ees eee ee ee Loan Type Baines _% o Tet Bawee _%ofTast Balas _o6of Tata % % Commerc endlodatid $ 70,03 732% «$RESULT 23% 136% 153% Owner Occupied 2307 121% 230174 122% 306108 128% 247% 2a OwnerOccwit Cont. 31,151 15% 407 17% 1479 0.6% 2m 462%) Ineome Prong mr
Slide 34: Loan Portfolio Composition
| Loan Portfolio Composition Total Gross Loans: $2.4 Billion ‘Note: AtSeptember 30, 2012 8
Slide 35: Diversified Commercial Real Estate Portfolio
| Diversified Commercial Real Estate Portfolio Total: $301.9 Million Total: $942.8 Million ‘Note: AtSeptember 30, 2012 ah
Slide 36: Loan Portfolio by Risk Rating
Loan Portfolio by Risk Rating (Dollar Valuesin Thousands) 1000- Prine $ 02% ‘2000. icelent 59% 19% 300--Good oer Bm 400- Acoeptble ar 26% ‘5000. Acceptable with Rise 149% 141% 6000- Watch, 16% 13% ‘70- Special Mention 1% 1% 2000. Subetardand am 29% 9000- Dow til 28 on 0 ony 9999-Lose oon . ony $2029
Slide 37: Geographic Detail of NPA's
| Geographic Detail of NPA’s lar Vas Thowaty Maryan Morgorery $1651 $ $ $ . $ wes BS $ IDS $ $268 $19 $ 4Ae Paace Gongs - 2» 1268 - #8 wait 23 3 e Oder MD 68195 12 oS S : 268 @ jan WiashinglonDC 1487 os 798 @ 10105 gs 1988 Vighia Alea » . » Adkgon 5 : 4% : 5 Puig, 313 i : 33 : 33 Loulom 48 : : 124 2
Slide 38: Acquisition Strategy & History
Acquisition Strategy & History = Significant Due Diligence precedes any Offer to Acquire = Accretive Transactions are always the Goal = Acquisition #1 (F&T completed on August 31, 2008) a System conversion successfully completed one week after close a Targeted expense savings achieved in methodical
Slide 39: Experienced Senior Management Team
Experienced Senior Management Team Years Years in with Name Title/Function Banking _EGBN Ronald D. Paul Chairman, President & CEO 24 4 Robert P. Pincus Vice Chairman 39 4 Michael T. Flynn Susan G. Riel Thomas D. Murphy Janice L. Williams Antonio F. Marquez Virginia N. Heine James H. Langmead Laurenc
Slide 40: Experienced Management Team
| Experienced Management Team Ronald D. Paul, Chairman, President and CEO Mr. Paul, a founder of EagleBank, has served as Chairman since May 2008, and prior to that time was Vice Chairman and Chief Executive Officer since the organization of the Company. He also has served as Chairman of the Board o
Slide 41: Experienced Management Team
| Experienced Management Team Susan G. Riel, Senior EVP, Chief Operating Officer of EagleBank Ms. Riel, Senior Executive Vice President - Chief Operating Officer of the Bank, and formerly Chief Administrative Officer. Ms. Riel has been with the bank for 13 years, She previously served as Executive V
Slide 42: Experienced Management Team
| Experienced Management Team AntonioF. Marques, EVP, Chief Commercial Real Estate Lending Officer Mr. Marquez, Executive Vice President, recently joined EagleBank as the Chief Real Estate Lender. Prior to joining EagleBank, Mr. Marquez established the real estate lending franchise for HSBC for the
Slide 43: Experienced Management Team
| Experienced Management Team James H. Langmead, EVP, Chief Financial Officer, Eagle Bancorp, Inc. and EagleBank Mr. Langmead, Executive Vice President and Chief Financial Officer of the Company since January 2007, and Executive Vice President and Chief Financial Officer of the Bank since January 20
Slide 44: Historical Balance Sheet
Historical Balance Sheet
Slide 45: Historical Quarterly Balance Sheet
Historical Quarterly Balance Sheet sgt sgzette (Ein tai Fenn) _Dee2000_Mas20_Jum2011_Sep011 Dee _oir2022 _3m202, __ £202 i sqm? Cone resin ty se1M s1716 eT? MGas) «ML MAIS ROWS ABO «HD ‘Steaua Araby eS zoe _“mesis doves _‘sougs) _“smass “mas _“mems _monse aoe _ alge, YouCuhendtecnathe Bias —Sese —he
Slide 46: Historical Income Statement
| Historical Income Statement (Cotter Values in Thousands except per share date) Total Interest Income Toal Interest Exp ence ‘Net Interest Income Lown Loss Provision Service Charges onDepost's GsinLose onSde of Loos GsitvLose onSide of Seeuitice BOLI Revere Other N onirterest Income Total Nonintere
Slide 47: Historical Quarterly Income Statement
| Historical Quarterly Income Statement (elt totes Mewands ep perre do) Gcowth Cor Rate Rate 3QOLve — 3Qm012w Mar2011_ Jum 2011__Sep20H1__Dec2011__-Mar2912__Sn2012__Sp202__3QU11__ 200012 ‘otal iatenst come $255 $ BH $F MM $ BO $ BD FHS $F BME IH — 6% ‘Totalhiost Bere 40 S102 555 ag aos] RDH_ (659 Ne
Slide 48: GAAP Reconciliation
GAAP Reconciliation (Gidars in ouside exept pershare dat) Nenperfoming assets Norperforming assets to total sets Toulasses Agusted otal assets eppeoming aes ‘Romperiorming moet toot aijustedassets Toul depesite Less setdement deposit ‘Aajusted eta deposits Tess intangible assets ‘Tanedle commen eqei
Slide 49: GAAP Reconciliation
| GAAP Reconciliation 48
Slide 50: GAAP Reconciliation Footnotes
| GAAP Reconciliation Footnotes (2) The reported figure includes the effect of a $618 million deposit received on September 13, 2011 in connection with a class action settlement, which was disbursed by year end. The deposit was invested in excess reserves at the Federal Reserve. As the magnitude of
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