Eagle Bancorp, Inc. · NASDAQ:EGBN
Eagle Bancorp — Investor Presentation (October 2010)
42 slides from Eagle Bancorp's investor presentation, October 2010
Slide 1: October 2010 Investor Presentation
October 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 Private plac
Slide 4: Summary Statistics – September 30, 2010
Summary Statistics – September 30, 2010 Total Assets: $2.0 billion Total Loans: $1.5 billion Total Deposits: $1.6 billion Tangible Common Equity: $175.5 million Tangible Common Book Value per Share: $8.92 Shares Outstanding: 19,671,797 TARP Preferred: $23.2 million Headquarters: Bethesda, Maryland M
Slide 5: Company Overview
Company Overview Eagle Bancorp, Inc. is a rapidly growing commercial bank headquartered in Bethesda, Maryland o $2.0 billion in assets, focused on Washington, DC Metro Area with 12 branches o Commercially oriented business model with deep relationships on loan and deposit side of balance sheet o 2nd
Slide 6: EagleBank Locations
EagleBank Locations Loudoun County Montgomery County Reston Bethesda Prince George’s Tyson's Corner Washington, DC County Fairfax County Branch Locations Arlington Maryland 7 Washington, DC 4 Virginia 1 12 Alexandria In-Process 2 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 23 12 Robert P. Pincus Vice Chairman 37 2 Michael T. Flynn EVP & COO - Eagle Bancorp 39 6 Susan G. Riel Sr. EVP & COO - EagleBank 34 12 Thomas D. Murphy President - Retail
Slide 8: Why Invest in EGBN?
Why Invest in EGBN? Driven by Profitability Superior Net Interest Margin Emphasis on Core Deposits and Deep Relationship Banking Strong Organic Growth Geographic Market Positioning Experienced and Dedicated Board and Management Team – 17% Insider Ownership Exceptional Asset Quality Record Conservati
Slide 9: Financial Indicators – Regional Peer Analysis
Financial Indicators – Regional Peer Analysis EGBN Peers Growth Rate (CAGR 2005 - 2009): ■ Loan Growth 27.49% 13.50% ■ Deposit Growth 25.86% 12.82% ■ Net Income Growth 15.50% 0.70% ■ Tangible Book Value Per Share Growth 7.33% (0.16%) Key Ratios (at or for the quarter ended September 30, 2010) (1): ■
Slide 10: Financial Indicators – Local Peer Analysis
Financial Indicators – Local Peer Analysis EGBN Peers Loan Growth (June 30, 2009 - June 30, 2010) ■ Commercial & Industrial 19.09% 5.62% ■ Commercial Real Estate 25.36% 6.32% ■ Construction & Development (9.94%) (21.14%) ■ Total Loans 14.54% 0.68% Deposit Growth (June 30, 2009 - June 30, 2010) ■ Dem
Slide 11: Consistent Balance Sheet Growth
Consistent Balance Sheet Growth $2,250 Total Assets $2,000 $1,750 $1,500 Millions of Dollars $1,250 $1,000 $750 $500 $250 $0 05Q1 05Q2 05Q3 05Q4 06Q1 06Q2 06Q3 06Q4 07Q1 07Q2 07Q3 07Q4 08Q1 08Q2 08Q3 08Q4 09Q1 09Q2 09Q3 09Q4 10Q1 10Q2 10Q3 (1) Regional peers includes publicly-traded commercial banks
Slide 12: Net Income
Net Income Net Income Available to Common TARP Dividend $5,000 $4,766 $4,750 $4,500 $4,250 $4,000 $3,750 $3,500 Thousands of Dollars $3,250 $3,000 $2,750 $2,500 $2,250 $2,000 $1,750 $1,500 $1,250 $1,000 05Q1 05Q2 05Q3 05Q4 06Q1 06Q2 06Q3 06Q4 07Q1 07Q2 07Q3 07Q4 08Q1 08Q2 08Q3 08Q4 09Q1 09Q2 09Q3 09
Slide 13: Pre-Tax, Pre-Provision Income
Pre-Tax, Pre-Provision Income $10,000 Quarterly Pre-Tax Pre-Provision Net Revenue $9,000 $8,000 $7,000 Millions of Dollars $6,000 $5,000 $4,000 $3,000 $2,000 $1,000 $0 05Q1 05Q2 05Q3 05Q4 06Q1 06Q2 06Q3 06Q4 07Q1 07Q2 07Q3 07Q4 08Q1 08Q2 08Q3 08Q4 09Q1 09Q2 09Q3 09Q4 10Q1 10Q2 10Q3 (1) Regional peer
Slide 14: EGBN Stock Price Performance
EGBN Stock Price Performance Price Change (%) EGBN S&P 500 NASDAQ Bank 60.00 50.00 40.00 30.00 20.00 10.00 0.00 -10.00 -20.00 Oct-09 Nov-09 Dec-09 Jan-10 Feb-10 Mar-10 May-10 Jun-10 Jul-10 Oct-10 Sep-10 Apr-10 Aug-10 Source: SNL Financial 13
Slide 15: Loan Portfolio Composition
Loan Portfolio Composition Loan Portfolio by Type Loan Portfolio by Location Home Equity Prince William Other Consumer Other VA 5.8% 1.6% 0.5% 2.9% Other USA Fairfax 3.4% 6.6% Loudoun Land 1.7% 4.8% C&I Arlington 25.4% 1.3% Construction Montgomery 11.6% 29.2% Alexandria 1.3% Residential Mortgage 0.8
Slide 16: Geographic Detail of Loan Portfolio
Geographic Detail of Loan Portfolio (Dollar Values in Thousands) Income Owner Producing Residential Other County C&I Occupied CRE CRE Construction Land Mortgage Home Equity Consumer TOTAL % of Total Maryland Montgomery $ 137,552 $ 57,148 $ 129,445 $ 48,384 $ 8,367 $ 1,355 $ 59,953 $ 5,481 $ 447,685
Slide 17: Detail of Loan Portfolio
Detail of Loan Portfolio Construction Loans by Type Income Producing CRE by Type Industrial Storage Cash Church Comm Condo Coop Education 0.4% 1.6% 0.6% 1.0% 1.0% 0.5% 1.5% Gas Station Land 3.0% Special Use 0.4% Storage 1.6% 2.3% Health Care Single & 1-4 Family 2.1% Mixed Use 10.4% 13.1% Retail - Si
Slide 18: Credit Quality
Credit Quality (Dollars Values in Thousands) As of As of As of As of As of As of As of As of Dec 2008 Mar 2009 Jun 2009 Sep 2009 Dec 2009 Mar 2010 Jun 2010 Sep 2010 30-89 Days Past Due $ 14,123 $ 19,740 $ 7,762 $ 11,499 $ 18,849 $ 29,336 $ 31,259 $ 28,125 Nonperforming Assets: 90 or More Days Past D
Slide 19: Deposit Composition
Deposit Composition Annual Last 9 Months (Dollar Values in Thousands) As of September 30, 2009 As of December 31, 2009 As of September 30, 2010 Growth Rate (Annualized) Deposit Type % of % of % of Balance Total Balance Total Balance Total % % Noninterest Bearing $ 233,994 17.6% $ 307,959 21.1% $ 380
Slide 20: Superior Relationships/Net Interest Margin
Superior Relationships/Net Interest Margin EGBN Peers 5.25% F&T closed August 31, 2008 4.75% Net Interest Margin (%) 4.25% 4.10% 3.65% 3.75% 3.25% 1Q2005 2Q2005 3Q2005 4Q2005 1Q2006 2Q2006 3Q2006 4Q2006 1Q2007 2Q2007 3Q2007 4Q2007 1Q2008 2Q2008 3Q2008 4Q2008 1Q2009 2Q2009 3Q2009 4Q2009 1Q2010 2Q2010
Slide 21: 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 concentration of fastest
Slide 22: Greater Washington Economy
Greater Washington Economy Total Federal Spending of 33.3% Other Federal 15.2% International 4.8% Hospitality 2.0% Associations 2.2% Federal Procurement 18.1% Non-Local Business 11.8% Other 7.0% Local Business 38.9% Note: Other includes Health/Education, Media Source: George Mason University, Center
Slide 23: Deposit Market Share
Deposit Market Share WASHINGTON, DC METROPOLITAN AREA (Dollar Values in Thousands) Branches Deposit Market Share Local Headquarters in June 30,2010 Rank Rank Ticker Company Name City State List Balance % 1 1 COF Capital One McLean VA 217 $ 26,627,589 19.25% 2 WFC Wells Fargo & Co San Francisco CA 15
Slide 24: EagleBank Deposit Market Share
EagleBank Deposit Market Share EagleBank Market Share Analysis (based on FDIC Summary of Deposits) WASHINGTON, DC METROPOLITAN AREA (Dollar Values in Thousands) Montgomery Market Share Market Share Market Share Date County % Washington, DC % Fairfax County % EagleBank 6/30/1999 53,348 0.4% 3 0.0% n/
Slide 25: Capital Strength
Capital Strength (Dollars Values in Thousands) September 30, December 31, September 30, December 31, March 31, June 30, September 30, 2008 2008 2009 2009 2010 2010 2010 Total Assets $ 1,457,545 $ 1,496,827 $ 1,682,773 $ 1,805,504 $ 1,832,991 $ 1,937,265 $ 2,006,146 Total Capital $ 100,593 $ 142,371
Slide 26: Looking Ahead
Looking Ahead Focus on organic growth o Take advantage of dislocation in market o Hire seasoned lenders o Increase Northern Virginia footprint o Focus on relationships to increase deposit penetration Profitability o Continued focus on Net Interest Margin o Grow noninterest components of revenue o Di
Slide 27: Minimal Impact from Dodd-Frank Regulatory Reform
Minimal Impact from Dodd-Frank Regulatory Reform Increase in FDIC Limit to $250,000 is a plus Revision to FDIC assessment base is a relative benefit to community banks No impact on EagleBank from the Volker Rule No direct impact on EagleBank from new derivatives rules. Impact on overall derivatives
Slide 28: Appendices
Appendices 27
Slide 29: Loan Portfolio Trends
Loan Portfolio Trends Last 9 Annual Growth Months (Dollar Values in Thousands) As of September 30, 2009 As of December 31, 2009 As of September 30, 2010 Rate (Annualized) Loan Type Balance % of Total Balance % of Total Balance % of Total % % Commercial and Industrial $ 329,316 25.0% $ 350,614 25.1%
Slide 30: Loan Portfolio by Risk Rating
Loan Portfolio by Risk Rating (Dollar Values in Thousands) 9000 - Doubtful 9999 - Loss 1000 - Prime Loan Portfolio as of September 30, 2010 8000 - Substandard 0.1% 0.0% 0.3% 3.5% 2000 - Excellent 7000 - Special Mention 7.8% Risk Rating Balance % of Loans 1.7% 1000 - Prime $ 5,267 0.3% 6000 - Watch 2
Slide 31: Geographic Detail of NPA's
Geographic Detail of NPA’s (Dollar Values in Thousands) Commercial Real Estate Owner Income Residential Home Other TOTAL TOTAL County C&I Occupied CRE Producing CRE Mortgage Construction Land Equity Consumer NPLs OREO NPAs Maryland Montgomery $ 1,573 $ - $ - $ - $ - $ - $ - $ - $ 1,573 $ 280 $ 1,853
Slide 32: Deposit Composition
Deposit Composition (Dollar Values in Thousands) As of September 30, 2010 Wholesale CD's 4% Noninterest Bearing 23% % of DEPOSIT TYPE Balance Core CD's Total 27% Noninterest Bearing $ 380,167 23% Interest Bearing Transaction Interest Bearing Transaction 62,722 4% 4% Savings & Money Market 693,381 42
Slide 33: Conservative Securities Portfolio
Conservative Securities Portfolio (Dollar Values in Thousands) September 30, 2010 Gross Gross Estimated Amrt. Cost Amortized Unrealized Unrealized Fair % of Total Security Type Cost Gain Losses Value Securities US Treasury Securities $ - $ - $ - $ - 0.00% US Government Agency Securities 85,263 1,768
Slide 34: Proven Acquisition Capabilities
Proven Acquisition Capabilities Evaluated many acquisition opportunities in 12 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 thought
Slide 35: 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 cost - $13.1 mill
Slide 36: 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 37: 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 12 years. She previously served as Executive Vice
Slide 38: 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 12 years. She previously served at Allegiance Bank from January 1990 to December 1997. She was Senior Vice President and Chief Lending Officer.
Slide 39: Historical Balance Sheet
Historical Balance Sheet 5 Year Compound Growth (Dollar Values in Thousands) 2005 2006 2007 2008 2009 Rate Assets Cash and Equivalents $33,996 $33,832 $20,142 $29,837 $117,687 16.1% Securities Available for Sale 68,050 91,140 87,117 169,079 245,644 30.8% Total Cash and Securities 102,046 124,972 107
Slide 40: Historical Quarterly Balance Sheet
Historical Quarterly Balance Sheet (Dollar Values in Thousands) Dec 2008 Mar 2009 Jun 2009 S ep 2009 Dec 2009 Mar 2010 Jun 2010 S ep 2010 Assets Cash and Equivalents $29,837 $37,007 $57,657 $111,688 $117,687 $100,367 $121,718 $99,412 Securities Available for Sale 169,079 158,976 177,710 219,652 245,
Slide 41: Historical Income Statement
Historical Income Statement (Dollar Values in Thousands, except per share data) 2005 2006 2007 2008 2009 Total Interest Income $ 36,726 $ 50,318 $ 57,077 $ 65,657 $ 84,338 Total Interest Expense 8,008 17,880 23,729 23,676 24,809 Net Interest Income 28,718 32,438 33,348 41,981 59,529 Loan Loss Provis
Slide 42: Historical Quarterly Income Statement
Historical Quarterly Income Statement (Dollar Values in Thousands, except per share data) Dec 2008 Mar 2009 Jun 2009 S ep 2009 Dec 2009 Mar 2010 Jun 2010 S ep 2010 Total Interest Income $ 20,904 $ 20,067 $ 20,432 $ 21,426 $ 22,413 $ 22,508 $ 23,689 $ 24,421 Total Interest Expense 7,680 6,604 6,112 6