Eagle Bancorp, Inc. · NASDAQ:EGBN
Eagle Bancorp — Sterne Agee Financial Institutions Investor Conference 2012
32 slides from Eagle Bancorp's conference presentation, Feb 13, 2012
Slide 1: Sterne Agee Financial Institutions Investor Conference
* @EAGLE BANCORP INC. Sterne Agee Financial Institutions Investor Conference February 12-14, 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 poli
Slide 3: Company Overview
Company Overview = Eagle Bancorp, Inc. is a rapidly growing community bank headquartered in Bethesda, Maryland = Focused on the Washington, DC metropolitan area, with 15 branches = Commercially oriented business model with deep relationships of loans, core deposits and related products » 24 largest
Slide 4: Attributes of EagleBank
Attributes of EagleBank » — Driven by Profitability - 12 Consecutive Quarters of Increasing Earnings » — Superior Net Interest Margin - 4.16% vs. Peer Average of 3.71% » — Strong Organic Growth > — Geographic Market Positioning » — Experienced and Dedicated Board and Management Team - 17% Insider Ow
Slide 5: Summary Statistics — December 31, 2011
| Summary Statistics — December 31, 2011 Total Asset $2.8 billion ‘Total Loans: $2.1 billion ‘Total De posits: $2.4 billion ‘Tangible Common Equity: ‘Tangible Book Value per Common Share: $10.32 (0) Shares Outstanding: 19,952,844 SBLF Preferred: $56.6 million Headquarters: Bethesda, Maryland Market
Slide 6: 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 mill
Slide 7: EagleBank Locations
| EagleBank Locations Tyson's Comer
Slide 8: Nationally Recognized Financial Performance
Nationally Recognized Financial Performance SANDLER O'NEILL+ PARTNERS "2012 “Top Investment Idea” Recommendation = 2011 “Sm-All Stars” Designation = Honor Roll of Community Banks 2010 = Ranked 62" among Best Performing Community Banks in the U.S. 2010 = Top 150 banks in the C C&IL AMERICAN BANKER, “
Slide 9: Highly Regarded by Bank Rating Agencies
| Highly Regarded by Bank Rating Agencies FIRM RATING CATEGORY LEVEL IDC 251/300 SUPERIOR ( Analyze the Future VERIBANC Green -*** BEST =» BAUERFINANCIAL, INC YOOK%™OK ~—_ BEST
Slide 10: Financial Indicators — Regional & National Peer Analysis
| Financial Indicators — Regional & National Peer Analysis Regional EGBN — EGBN_ Peers (1) Key Ratios (at or for the quarter ended December 31,2011): 12/31/2010 12/31/2011 12/31/2011 = Net Interest Margin (2) 4.18% 4.16% 3.71% = Efficiency Ratio 53.98% 66.13% = NPAs + 90 Days Past Due/Total Assets (
Slide 11: Financial Indicators — Local Peer Analysis
Financial Indicators — Local Peer Analysis Loan Growth (December 31, 2010 - December 31, 2011) = Commercial & Industrial = Commercial Real Estate = Construction & Development = Total Loans Deposit Growth (December 31, 2010 - December 31, 2011) = Demand Deposits = Money Market Accounts = Certificates
Slide 12: Consistent Balance Sheet Growth
Consistent Balance Sheet Growth $3,000 82,7504 82,5004 82,2504 $2,004 § s1,7504 e = 81,5004 2 3 81.2504 $1,004 $7504 $500 (Q) Regional pers includes publicly raded commercial banks with assets beeen $1 ands billion and headquarteredin Washington,DC, Virginia, West Virginia, Maryland, Pansyvania and
Slide 13: Consistent Net Income Growth
| Consistent Net Income Growth ividend Net Income Available to Common Ml TARP Dividend OSBLF $7,500 774 $7,000 $6,500 $6,000 $5,500 $5,000 4.500 $4,000 ‘Thousands of Dollars $3,500 $3,000 2.500 2,000 31,500 afaaalnA MAA NNNNNN 6Q! OTOL O7QE 0793 OTA OSGI O82 OQ OBQH OPI O9Q2 09Q3 OQ 10Q1 10Q2 10Q3 I
Slide 14: Pre-Tax, Pre-Provision Income
Pre-Tax, Pre-Provision Income $13,828 SHO Quarterly Pre-Tax Pre-Provision Net Revenue 313,004 $12,000 4 $11,000 $10,000 4 39,0004 38.0004 37,0004 Millions of Dollars 86,0004 35,0004 $4,000 83,0004 32,0004 1,004 304 6Q1 OTL 07Q2 07Q3 O7QF OSI _O8Q2 O8G3 OI _99QI_09Q2 09G3 OI IOQI_10Q2 1093 19Q1_11Q1_
Slide 15: Deposit Market Share
| Deposit Market Share WASHINGTON, DC METROPOLITAN AREA (Cobar Voie Thousands) Local Headarers Rank Rank Company Name ay Ste 1 ceptatone Metan VA 2 Welk Fargo & co San Franciteo CA a BankoF America Chathtte NC 4 SunTrust Atta GA s BRET Com Winston Sam NC 6 PNCBank Piusburgh PA. 7 Caan NewYork NY 8 M
Slide 16: Geographic Detail of Loan Portfolio
Geographic Detail of Loan Portfolio Maryland e 33,918 21,567 106.995 6,495 11,099 927 1,830 67 182,898 8.9% 15,590 24,447 94,171—«35,521 29,495 1,098 5,613 165 206,100 10.0% 7334 11,233 14,799 302 6,209 1,728 893 25 42,523 21% 13377 : 4,608 19,579 719 1,665 91 40,099 2.0% Loudoun 1,134 25,068 5,703
Slide 17: Diversified Commercial Real Estate Portfolio
| Diversified Commercial Real Estate Portfolio Total: $302.2 Million Total: $756.6 Million Note: At Deoember 31, 2011 15
Slide 18: Credit Quality Trends
| Credit Quality Trends 30-89 Days Past Due $ 2336 § 31259 $ 28125 $ 31495 $ DTH § 25727 S 32398 § 28,131 Nonperorming Assets: 90 or Moe Days Pas Dae sos 8 = ee Re Fe SS Nonaera post 2402523372 23.998 «31888, waste 32712 Restrtred Loans : io? 138939938) Qe Total Noneroming Loans (NPLS) TMG S 35303 -
Slide 19: Consistent Asset Quality
Consistent Asset Quality Total Loans '$2,000,000,000 $1,500,000,000 +} $1,000,000,000 + '$500,000,000 $0 PELLI ELIS IL EP EBE 20.00% 15.00% 10.00% 5.00% 0.00% sams Total Loans (8) —==NPA's (%) —==Charge Offs (%) * Impact of F&T Acquisition 2008 2009 2010 2011 (000's) $548,963 $ 133,671 $ 276,189
Slide 20: Deposit Composition
Deposit Composition (Beltax Volues in Shousands) Deposit Type %of Balance Balance Balance Total Noninterest Bearing $400,291 $488,689 S$ 688,506 28.8% Interest Bearing Transaction 61,771 3.6% 69,762 3.3% 80,105 3.3% Savings & Money Market TBI0T1 42.7% 986,585 46.3% 1,068,370 44.7% Core CD's 467.544
Slide 21: Superior Relationships/Net Interest Margin
Superior Relationships/Net Interest Margin —-EGBN -mPeers 5.25% 419% 3 i = } 425% i 16% 0 z 3.75% 4 3.25% SEES ESS See ee ee 88 Ss ez se RRRRRRR RRR RRR RRR RRR SR yg¢vyorvurv?eg? y¢vgrvervrvrrvrvrvgervgvyrveeyg PRBRRISSSI SRE See Ree ‘Note: Regional poor inches publicly-traded commercial banks with
Slide 22: Balanced Loan and Deposit Growth
Balanced Loan and Deposit Growth $2,500,000,000 $2,000,000,000 $1,500,000,000 + Total Loans $1,000,000,000 + m Total Deposits '$500,000,000 SPPPEPRES SPP ERE (1) (1) @ 2011 Deposits exclude the “Settlement deposit™
Slide 23: Capital Strength
| Capital Strength Total Assets S 2,006,146 S$ 2,089,370 S 2,186,268 $ 2,353,716 $ 3,219,746 S 2,831,255 Total Capital S 202,301 S$ 204,716 $210,119 $217,027 $258,463 S 266,711 Tier 1 Leverage Ratio 9.66% 9.32% 948% 9.07% 9.61% 821% Tier 1 Risk Based Capital Ratio 10.88% 9.91% 10.03% 9.64% 10.49% 10
Slide 24: Market Information — Washington, DC
Market Information —Washington, DC Metropolitan Statistical Area Population 6.2 Million a 5th largest market in the U.S. Employment 2.9 Million a Average annual job creation is 28,600 a Highest in net new job growth in the U.S. over last decade a Washington DC Metro area has highest concentration of
Slide 25: Unemployment Rate- Largest US Markets
Unemployment Rate- Largest US Markets December, 2011 5 Zz Source:
Slide 26: Greater Washington Economy
Greater Washington Economy International 43% Hospitality 22% Associations 2.0% Non-Local Business: 12.0% 36.6%
Slide 27: 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 30 22 20 1414] 1 10 6 =O 6 38 5 5 5 3 4584 ill 243,34 39 o ALU: an TTT Pet k Ve " 10 = 7s - Le atl 40° a 14 -20 ai 2018 -23 -2: -30 oats on ckAS eQA>ScCEAS RP SCsLADAEA CLARA
Slide 28: New Condominium Inventory
New Condominium Inventory Washington DC 6000 5000 4000 3000 2005 2006 2007 2008 2009 2010 2011 Current Inventory = 667 Units 3 Year Annual Average Sales = 3,065 Units All Inventory-Conversions and New Construction, Source: The Mayhood Co, October, 2011
Slide 29: Key Success Factors
Key Success Factors = Building and maintaining core relationships = Maintenance of strong credit culture o Conservative underwriting criteria and loan policies o Disciplined Committee Approval and Review Process o Limited Individual Authority o Periodic Loan and Portfolio Stress Testing o Asset Base
Slide 30: 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 o Team Bui
Slide 31: Looking Ahead
Looking Ahead = Focus on organic growth o Take advantage of dislocation in market o Hire seasoned lenders o Focus on relationships to increase deposit penetration = Profitability o Continued focus on Net Interest Margin » Diligent expense control to maintain Efficiency Ratio o Reduce effective tax r
Slide 32: EGBN Stock Price Performance
| EGBN Stock Price Performance Price Change (%) cen — ssp 500 —nasorasenk B00 pooncavaconseeeesvencamnenenereneroroner 20100 fannenensrnnneorsanacereceeniverennacneacs 1000 fev m, # 8 & £ 5 3 z g 8 2 & § 2 ‘Source: SNL. Financiat
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