Eagle Bancorp, Inc. · NASDAQ:EGBN
Eagle Bancorp — Investor Presentation (March 2010)
35 slides from Eagle Bancorp's investor presentation, March 2010
Slide 1: March 2010
March 2010 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 and
Slide 3: History of Growth
History of Growth Founding members had extensive banking experience Raised $16.5 million in initial subscription offering - 1997* Commenced operations with three Maryland branches - July, 1998 Second subscription offering raised $30 million - 2003* Reached $500 million in assets in 2004
Slide 4: Summary Statistics – December 31, 2009
Summary Statistics – December 31, 2009 Total Assets: $1.8 billion Total Loans: $1.4 billion Total Deposits: $1.5 billion Tangible Common Equity: $161 million Tangible Common Book Value per Share: $8.26 Shares Outstanding: 19,534,226 TARP Preferred: $23.2 million Headquarters: Bethesda, Maryland Mark
Slide 5: Company Overview
Company Overview Eagle Bancorp, Inc. is a rapidly growing commercial bank headquartered in Bethesda, Maryland o $1.8 billion in assets, focused on Washington, DC Metro Area with 14 branches o Commercially oriented business model with deep relationships on loan and deposit side of balance sheet o L
Slide 6: EagleBank Locations
EagleBank Locations Loudoun County Montgomery County Bethesda Prince George’s Tyson's Corner Washington, DC County Fairfax County Branch Locations Arlington Maryland 8 Washington, DC 5 Virginia 1 Alexandria Total 14 5
Slide 7: Experienced Senior Management Team
Experienced Senior Management Team Years Years in with Name Title/Function Banking EGBN Ronald D. Paul Chairman, President & CEO 22 11 Robert P. Pincus Vice Chairman 36 1 Michael T. Flynn EVP & COO - Eagle Bancorp 38 5 Susan G. Riel Sr. EVP & COO - EagleBank 33 11 Thomas D. Murphy President - Retail
Slide 8: Why Invest in EGBN?
Why Invest in EGBN? ¾ Driven by Profitability ¾ Superior Net Interest Margin ¾ Emphasis on Core Deposits and Deep Relationship Banking ¾ Strong Organic Growth ¾ Geographic Market Positioning ¾ Experienced and Dedicated Board and Management Team ¾ Exceptional Asset Quality Record ¾ Conservative Secur
Slide 9: Proven Acquisition Capabilities
Proven Acquisition Capabilities Evaluated many acquisition opportunities in 11 year history and only pursued one transaction – F&T Acquisition of F&T completed on August 31, 2008 System conversion successfully completed one week after close Targeted expense savings achieved in methodical and
Slide 10: Key Financial Attributes
Key Financial Attributes EGBN Peers Growth Rates (CAGR 2000 - December 31, 2009): Loan Growth 31.66% 16.41% Deposit Growth 30.20% 11.61% EPS Growth 11.90% NM Tangible Book Value Per Share Growth 12.38% 3.34% Key Ratios (at or for the quarter ended December 31, 2009): Net Interest Margin 3.96% 3.56%
Slide 11: Consistent Balance Sheet Growth
Consistent Balance Sheet Growth $2,000 Total Assets $1,750 $1,500 $1,250 % ) 6.7 tion Millions of Dollars R 2 u isi CAG T Acq $1,000 BN F& EG ding lu (Exc % 20.2 $750 R CAG B N EG $500 $250 R: 9.9%¹ Peer CAG $0 04Q4 05Q1 05Q2 05Q3 05Q4 06Q1 06Q2 06Q3 06Q4 07Q1 07Q2 07Q3 07Q4 08Q1 08Q2 08Q3 08Q4 09Q1
Slide 12: Net Income
Net Income $3,000 $2,951 Net Income Available to Common TARP Dividend $2,750 $2,500 % 5.6 Thousands of Dollars $2,250 : GR n CA % mo 0.0 o m $2,000 R :1 to C AG ble C vaila c ome meA n o $1,750 et I et I n c B NN BN N EG EG $1,500 $1,250 Peer CAGR: -2.6%¹ $1,000 04Q4 05Q1 05Q2 05Q3 05Q4 06Q1 06Q2 06
Slide 13: Pre-Tax, Pre-Provision Income
Pre-Tax, Pre-Provision Income $8,000 Quarterly Pre-Tax Pre-Provision Net Revenue $7,000 $6,000 20.7% R : $5,000 CAG Millions of Dollars B N EG $4,000 $3,000 $2,000 ¹ $1,000 Peer CAGR: 2.7% $0 04Q4 05Q1 05Q2 05Q3 05Q4 06Q1 06Q2 06Q3 06Q4 07Q1 07Q2 07Q3 07Q4 08Q1 08Q2 08Q3 08Q4 09Q1 09Q2 09Q3 09Q4 (1)
Slide 14: Loan Portfolio Composition
Loan Portfolio Composition Loan Portfolio by Type Loan Portfolio by Location Prince William Other VA Other Consumer 1.6% 3.8% Other USA Home Equity 6.2% 0.5% 3.3% Fairfax Loudoun 7.1% 1.4% C&I Arlington 24.8% 1.5% Montgomery 30.4% Construction 12.9% Land Alexandria 5.2% 1.2% Residential Mortgage 0.7
Slide 15: Geographic Detail of Loan Portfolio
Geographic Detail of Loan Portfolio (Dollar Values in Thousands) Commercial Real Estate Income Owner Producing Residential Home Other % of County C&I Occupied CRE CRE Mortgage Land Construction Equity Consumer TOTAL TOTAL Maryland Montgomery $ 130,821 $ 59,292 $ 124,818 $ 1,975 $ 1,844 $ 44,744 $ 58
Slide 16: Detail of Loan Portfolio
Detail of Loan Portfolio Construction Loans by Type Income Producing CRE by Type Church Coop Cash Income Producing CRE by Type Comm Condo 1.2% 0.0% Construction Loans by Type Education 1.7% 1.4% Storage Storage 4.7% 2.2% Industrial 1.9% Education 0.4% 0.4% Special Use Special Use Entertainment 4.7%
Slide 17: Credit Quality
Credit Quality (Dollar Values in Thousands) As of As of As of As of As of As of As of 6/30/08 9/30/08 12/31/08 3/31/09 6/30/2009 9/30/2009 12/31/2009 30-89 Days Past Due $ 1,987 $ 7,909 $ 14,123 $ 19,740 $ 7,762 $ 11,499 $ 18,849 Non-performing Assets 90 or more days past due $ - $ 248 $ - $ 10,909
Slide 18: Deposit Composition
Deposit Composition (Dollar Values in Thousands) As of December 31, 2009 Core CD's Savings and M oney % of 30% M arket DEPOSIT TYPE Balance Total 40% Noninterest Bearing $ 307,959 21% Interest Bearing Transaction 59,720 4% Savings & Money Market 582,854 40% Wholesale CD's 5% Core CD's 441,819 30% Wh
Slide 19: Superior Relationships/Net Interest Margin
Superior Relationships/Net Interest Margin 5.25 F&T closed August 31, 2008 4.75 Net Interest Margin (%) 4.25 3.96% 3.75 3.56% EGBN Peers 3.25 1Q2004 2Q2004 3Q2004 4Q2004 1Q2005 2Q2005 3Q2005 4Q2005 1Q2006 2Q2006 3Q2006 4Q2006 1Q2007 2Q2007 3Q2007 4Q2007 1Q2008 2Q2008 3Q2008 4Q2008 1Q2009 2Q2009 3Q20
Slide 20: Market Information – Washington, DC Metropolitan Statistical Area
Market Information –Washington, DC Metropolitan Statistical Area Population 6.2 Million 5th largest market in the U.S. Employment 2.9 Million Average annual job creation is 37,500 Highest in net new job growth in the U.S. over last decade Washington DC Metro area has highest concentratio
Slide 21: Greater Washington Economy 2009
Greater Washington Economy 2009 Total Federal Spending of 33.3% Federal Procurement 18.1% Other Federal 15.2% International 4.8% Hospitality 2.0% Associations 2.2% Other 7.0% Local Business Non-Local Business 38.9% 11.8% Note: Other includes Health/Education, Media 20 Source: George Mason University
Slide 22: Deposit Market Share
Deposit Market Share WASHINGTON, DC METROPOLITAN AREA (Dollar Values in Thousands) Branches Deposit Market Share Local Headquarters in June 30,2009 Rank Rank Ticker Company Name City State List Balance % 1 1 COF Capital One McLean VA 217 $ 30,665,416 22.82% 2 BAC Bank of America Charlotte NC 184 17,
Slide 23: Capital Strength
Capital Strength June 30 September 30 December 31 September 30 December 31 2008 2008 2008 2009 2009 Total Assets $ 915,800,000 $ 1,457,545,000 $ 1,496,827,000 $ 1,682,773,000 $ 1,805,504,000 Total Capital $ 84,123,000 $ 100,593,000 $ 142,371,000 $ 201,516,000 $ 188,321,000 Tier 1 Leverage Ratio 9.43
Slide 24: Looking Ahead
Looking Ahead Focus on organic growth o Take advantage of dislocation in market o Increase Northern Virginia footprint o Focus on relationships to increase deposit penetration Profitability o Continued focus on Net Interest Margin o Diligent expense control to improve Efficiency Ratio o Lower ef
Slide 25: Appendices
Appendices 24
Slide 26: Loan Portfolio Trends
Loan Portfolio Trends (Dollar Values in Thousands) As of As of As of 2009 December 31, 2008 September 30, 2009 December 31, 2009 Growth Rate Loan Type % of % of % of Balance Total Balance Total Balance Total % Commercial & Industrial $ 334,999 26.5% $ 327,245 24.8% $ 346,692 24.8% 3.5% Commercial Re
Slide 27: Loan Portfolio by Risk Rating
Loan Portfolio by Risk Rating 9000 - Doubtful Portfolio by Risk Rating 9999 - Loss (Dollar Values in Thousands) 0.1% 0.0% LOAN PORTFOLIO 12/31/2009 8000 - Substandard 1000 - Prime 0.2% 2.9% Risk Rating Balance % of Loans 7000 - Special Mention 2.4% 1000 - Prime $ 2,533 0.18% 2000 - Excellent 2000 -
Slide 28: Deposit Composition
Deposit Composition (Dollar Values in Thousands) As of As of As of 2009 December 31, 2008 September 30, 2009 December 31, 2009 Growth Rate Deposit Type % of % of % of Balance Total Balance Total Balance Total % Noninterest Bearing $ 223,580 19.8% $ 233,994 17.6% $ 307,959 21.1% 37.7% Interest Bearin
Slide 29: Conservative Securities Portfolio
Conservative Securities Portfolio (Dollar Values in Thousands) December 31, 2009 Gross Gross Estimated Amrt. Cost Amortized Unrealized Unrealized Fair % of Total Security Type Cost Gain Losses Value Securities US Treasury Securities $0 $0 $0 $0 0.00% US Government Agency Securities 75,980 412 285 76
Slide 30: Fidelity & Trust Acquisition
Fidelity & Trust Acquisition Strategic Matters: Strong cultural match Both institutions were growth oriented Both institutions were “high touch” Both institutions were “well connected” to community Financial Matters: Stock-for-stock transaction - 1,638,031 shares issued Acquisition c
Slide 31: 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 of
Slide 32: Experienced Management Team
Experienced Management Team Michael T. Flynn, EVP, Chief Operating Officer of Eagle Bancorp, Inc. Mr. Flynn has been with EagleBank for 6 years and has served as Chief Operating Officer of Eagle Bancorp, Inc, since June 2006. He has over 37 years of experience in the banking industry in the Washingt
Slide 33: Experienced Management Team
Experienced Management Team Martha Foulon-Tonat, EVP, Chief Lending Officer Ms. Foulon-Tonat is one of the founding officers and has been with EagleBank for 11 years. She previously served at Allegiance Bank from January 1990 to December 1997. She was Senior Vice President and Chief Lending Officer.
Slide 34: Historical Balance Sheet
Historical Balance Sheet (Dollars Values in Thousands) 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Assets Cash and Equivalents $11,168 $6,644 $27,700 $29,435 $55,729 $33,996 $33,832 $20,142 $29,837 $117,687 Securities Available for Sale 32,398 39,439 70,675 82,581 64,098 68,050 91,140 87,117 1
Slide 35: Historical Income Statement
Historical Income Statement (Dollar Values in Thousands, except per share data) 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Total Interest Income $10,501 $14,121 $16,661 $18,403 $24,195 $36,726 $50,318 $57,077 $65,657 $84,338 Total Interest Expense 4,549 5,998 5,170 3,953 4,328 8,008 17,880 23