Eagle Bancorp, Inc. · NASDAQ:EGBN
Eagle Bancorp — FBR Fall Investor Conference 2011
46 slides from Eagle Bancorp's conference presentation, Nov 29, 2011
Slide 1: FBR Fall Investor Conference
” @EAGLE BANCORP INC. FBR Fall Investor Conference November 28&29, 2011 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 commercial bank headquartered in Bethesda, Maryland o $3.2 billion* in assets, focused on Washington, DC Metro Area with 15 branches o Commercially oriented business model with deep relationships on loan and deposit side of balance sheet ©
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 mill
Slide 5: Summary Statistics
| Summary Statistics — september 30, Total Asse ‘Total Loans: Total Deposit ‘Tangible Common Equity: ‘Tangible Book Value per Common Share: Shares Outstanding: SBLF Preferred: Headquarters: Market Capitalization (at close October 27, 2011): Insider Ownership: Institutional Ownership: Member of Russe
Slide 6: EagleBank Locations
| EagleBank Locations Ha "ax. ‘Tyson's Comer Washington, DC N Cece : rd W 6 Pacman
Slide 7: Nationally Recognized Financial Performance
Nationally Recognized Financial Performance = Named to the Class of 2011 “Sm-All Stars” by Sandler O’ Neill + Partners as one of the Top 25 best performing small cap banks and thrifts in the nation. = In2011, ranked by the American Banker in the top 150 banks in the country for C&]I loan activity an
Slide 8: Financial Indicators — Regional Peer Analysis
Financial Indicators — Regional Peer Analysis Key Ratios (at or for the quarter ended September 30, 2011): = Net Interest Margin (1) = Efficiency Ratio = NPAs +90 Days Past Due/Total Assets (1) = NPLs +90 Days Past Due/Total Loans = Allowance Loan Losses/Gross Loans = Tangible Common Equity/Tangible
Slide 9: Financial Indicators — Local Peer Analysis
Financial Indicators — Local Peer Analysis EGBN Peers * Loan Growth (September 30, 2010 - September 30, 2011) = Commercial & Industrial 19.13% 20.40% = Commercial Real Estate 29.37% 1.84% = Construction & Development 66.65% (11.35%) = Total Loans 32.57% 1.91% Deposit Growth (September 30, 2010 - Sep
Slide 10: Consistent Balance Sheet Growth
| Consistent Balance Sheet Growth Milions of Dollars 92,7509 92,5004 $2,2504 $2,004 31,7504 1,504 31,2504 31,0004 s7s0 ss004 2504 Total Assets Peer Car chon: 69%) 06Q3 06Q4 07Q1 07Q2 07QB _O7QH OKQI OZ O8Q3_08Q4 09QI_09Q2 093 09Q4 10QI 10Q2 10Q3 10Q4 11QI 11Q2 1193 (o) (0) Reaional pers includes pub
Slide 11: Consistent Net Income Growth
Consistent Net Income Growth ELNet Income Available to Common TARP Dividend OSBLF Dividend $7,000 $6,500 86,0004 $5,500 $5,000 84,5004 $4,000 33,5004 Thousands of Dollars 33,0004 32,5004 32,0004 1.5004 atalaal still 0693 06QH 0701 07Q2 0793 O7QI OSI OQ? 08S OSI O9QI_ 09Q2 09Q3 OI 10QI 2) 36.494 102
Slide 12: Quarterly Pre-Tax Pre-Provision Net Revenue
Millions of Dollars Pre-Tax, Pre-Provision Income $14,000 Quarterly Pre-Tax Pre-Provision Net Revenue $13,000 $12,000 $11,000 $10,000 9.0005 38.0004 37.0005 86,0004 35.0004 84.0005 83.0004 32.0004 1,000 so+ 0603 06Q4 G7QI_07Q2 0703 97H OSI OSG? _08Q3 OSI O9QI_09Q2 0993 09Q4 2 woot 10Q2 1093 woos nat
Slide 13: Deposit Market Share
| Deposit Market Share WASHINGTON, DC METROPOLITAN AREA (oly Vater Thousands) Local Peadparters Branches June302010 June302011 Annual 2011 Rank Rank Company Name Gy Stale Inst Balance Balance Growth Market Share 1 ‘capital one Mclein VAS HANTS S$ mBOIRANT — 14.0% 163086 2 ‘Wells Fargo & 00 SunFranci
Slide 14: Loan Portfolio Composition
| Loan Portfolio Composition Total Gross Loans: $2.0 Billion ‘Note: At September 30,2011 1B
Slide 15: Geographic Detail of Loan Portfolio
| Geographic Detail of Loan Portfolio 28,250 18,005 106,500 11,453 2,335 404 1,854 57 168.858 8.3% 15319 27,362 -—96,456—«28,248 29,569 1,776 4872 177 203,779 10.0% Akexandria 92 11,360 14,701 207 st 1,475 900 30 41,463 2.0% Ari - 7,760__ 17,836 - 779 1,093 102 39,651 2.0% Lowtoun 2,778 1149 25,127
Slide 16: Diversified Commercial Real Estate Portfolio
| Diversified Commercial Real Estate Portfolio Total: $290.5 Million Total: $772.7 Million ‘Note: At September 30,2011 15
Slide 17: Credit Quality Trends
| Credit Quality Trends (Dollars Values in Thousands) 30-89 Days Past Due Nonperforming Assets: 90 of More Days Past Due Nonacerual Restructured Loans ‘Total Nonperforming Loans (NPL) Other Real Estate Owned (OREO) ‘Total Nonperforming Assets NPAs +90 Days Past Due/Assets (1) Reserves Reserves/Loans
Slide 18: Deposit Composition
Deposit Composition (Dollar Values in Thousands) Deposit Type %ot %ot %ot Balance Total Balance Total Balance Total Noninterest Bearing $380,167 23.1% $ 400.291 23.2% $ 488,689 23.0% Interest Bearing Transaction 62,722 3.8% 61,771 3.6% 69,762 3.3% Savings & Money Market 693,381 42.2% 737,071 42.6% 9
Slide 19: Superior Relationships/Net Interest Margin
Superior Relationships/Net Interest Margin 5.25% FT closed August 31, 2008 475% 4.25% 415%) Net Interest Margin (%) 3.75% 4 3.25% SS 5552228 Ss eeeaeauud RERERSRERRERS ee R ERR SS svyeyssegsegsgy eessegegs SFZegseeggse GER eG s ‘Note: Regional por inchdes publicly-traded commercial banks with Assets
Slide 20: Capital Strength
| Capital Strength Total Assets $1,937,265 S 2,006,146 S 2,089,370 S$ 2,186,268 S$ 2,353,716 S 3,219,746 Total Capital S 196,743 S 202,301 S 204,716 S 210,119 $217,027 $258,463 Tier 1 Leverage Ratio 984% 9.66% 9.32% 944% 9.07% 9.61% Tier 1 Risk Based Capital R: 11.15% 10.88% 9.91% 10.03% 9.64% 10.49
Slide 21: 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 39,500 a Highest in net new job growth in the U.S. over last decade a Washington DC Metro area has highest concentration of
Slide 22: Unemployment Rate - Largest US Markets
Unemployment Rate- Largest US Markets July, 2011
Slide 23: Greater Washington Economy
Greater Washington Economy International 43% Hospitality 22% Associations 2.0% Local Business 36.6% jon, Media
Slide 24: Average Sales Price Percent Change Washington MSA
Average Sales Price Percent Change Washington MSA All Housing Types Annual Change Annual Change by Month 30 2008 2009 2010 2011 2022 20 “TTT ao ET] agit -20 -30 sss se Vagage ll 164 I Jan Mar May July Source: MRIS, GMU Center for Regional Analysis 23
Slide 25: New Condominium Inventory
New Condominium Inventory Washington DC 6000. 2005 2006 2007 2008 2009 2010 2011 Current Inventory = 821 Units Source: The Mayhood Co, July, 2011 4
Slide 26: Acquisition Strategy & History
Acquisition Strategy & History Significant Due Diligence precedes any Offer to Acquire Accretive Transactions are always the Goal Acquisition of F&T completed on August 31, 2008 a System conversion successfully completed one week after close a Targeted expense savings achieved in methodical and thou
Slide 27: Looking Ahead
Looking Ahead = Focus on organic growth o Take advantage of dislocation in market o Hire seasoned lenders » Focus on relationships to increase deposit penetration = Profitability e Continued focus on Net Interest Margin o Grow noninterest components of revenue © Diligent expense control to maintain
Slide 28: 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 Qualit
Slide 29: EGBN Stock Price Performance
| EGBN Stock Price Performance Price Change (%) econ —aasona Bank 2500 2000 16.00 10.00
Slide 30: Appendices
Appendices 29
Slide 31: Loan Portfolio Trends
| Loan Portfolio Trends (Dien Shas) [susiamueom amenities “gm Loan Type Balance _% of Tol Balnce _%6 of Tot Balanoe _¢6 of Total % % Commercial Indwsial $ 304615 258% «S| AILTM—DhGM «S| ATOIOB 8 19.1% 142% Commercial Real Etat: Omer Occpied 21,780 13.8% masse 1.4% 245,497 159% 9.6% Investment 575294
Slide 32: Loan Portfolio by Risk Rating
| Loan Portfolio by Risk Rating (Dollar Values in Thousands 100 Pie er 2000 -Felent uss07 — 3000 -Good srs 400» Acceptable 4531 5000-AcceplablewihRsk 23361 6000-Wach saa 7000 - Speci Menton 26651 $000 Substandard stors em gegen 9000 - Doub fal 1,535, ba 2 9999-Loss - 51530986 $2,029,645 100.0% = Loa
Slide 33: Geographic Detail of NPA's
Geographic Detail of NPA’s (Dollar Values in Thousands) Maryland Montgomery S$ 34GB $ =, § - S$ + $ Ws 35S MS 8 Sad S - § 4a Prine George's 289 1,265 L862 3,074 707 3,781 Other MD 608 A 7 3432 140 3,592 Washington DC 360 a 885 : Bam 3008S 16,200 17417948 ae Alesana . “ 5 2 “ Atington E - : 3 ‘ : Fai
Slide 34: Conservative Securities Portfolio
| Conservative Securities Portfolio (Deli teks in Shs) US Treasury Secuniies s 7 s ‘ 7 0.00% {US Govemment Agency Secusties 10363 sit 103708 359% Momigage Backed Secustes -GSES 133467 321 13639 4630% Municipal Bonds 48516 307 17036 (ther Equity investments ‘0 - 0.148% “Total Secustes aso. Tto.0r US
Slide 35: Experienced Senior Management Team
| Experienced Senior Management Team Years Years in with Name ‘Title/Function Banking __EGBN Ronald D. Paul Chairman, President & CEO B B Robert P. Pincus Vice Chairman 38 3 Michael T. Flynn EVP & COO- Eagle Bancorp 40 7 Susan G. Riel Sr. EVP & COO - EagleBank 35 B ‘Thomas D. Murphy President - Comm
Slide 36: Experienced Management Team
| Experienced Management Team EAGLE BANCorP, INC, EXECUTIVE 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 h
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 13 years. She previously served as Executive Vi
Slide 38: Experienced Management Team
| Experienced Management Team Antonio¥. Marquez, EVP, Chief Commercial Real Estate Lending Officer Mr. Marquez, Executive Vice President, recently joined EagleBank as the Chief Real Estate Lender. Prior to joini EagleBank, Mr. Marquez established the real estate lending franchise for HSBC for the Wa
Slide 39: Experienced Management Team
| Experienced Management Team James H. L EVP, Chief Financial Officer, Eagle rp, Inc. and Et 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 2005, previously serve
Slide 40: Historical Balance Sheet
Historical Balance Sheet
Slide 41: Historical Quarterly Balance Sheet
Historical Quarterly Balance Sheet ({) Please refer to the GAAP reconciliation and footnotes in the appendices on pages 43-45, 40
Slide 42: Historical Income Statement
| Historical Income Statement (Dollar Values in Thousands, except per share data) 1 Year Growth 2006 2007 2008 2009 2010 __ Rate ‘Total Interest Income $ 50318 $57,077 $ 65,657 $84,338 «$96,658 Total Interest Expense 17,880, 23,729 23,676 24,809 19,832 Net Interest Income 32,438 41,981 59,529 76,826
Slide 43: Historical Quarterly Income Statement
Historical Quarterly Income Statement (Dolan Yales i Thousands except per share dats) Growth Growth Rate Rate 3Q2011 5 32011 Mar2010__Jun 2010 _Sep2010__Dee2010__Mar2011 Sep201_ _ 392010 _ 29201 ‘otal Interest Income S 22508 $2369 S$ 2HA21 $2600 $26,296, S307 259% 6.0% Tolal Interest Expense 5285, 5
Slide 44: GAAP Reconciliation
| GAAP Reconciliation Coottars snd except per share datay
Slide 45: GAAP Reconciliation
| GAAP Reconciliation 44
Slide 46: GAAP Reconciliation Footnotes
| GAAP Reconciliation Footnotes (J) The reported balance sheet and income statement amounts include the effect of a $618 million deposit received in c with a class action P 13, 2011 and which is expected to be disbursed by year end. In the interim the deposit is invested in excess reserves at the Fe