Eagle Bancorp, Inc. · NASDAQ:EGBN
Eagle Bancorp — Investor Presentation (September 2009)
35 slides from Eagle Bancorp's investor presentation, Sep 9, 2009
Slide 1: Follow-on Offering of Common Shares $40,000,000
Follow-on Offering of Common Shares $40,000,000 September 2009 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: Offering Terms
Offering Terms Issuer: Eagle Bancorp, Inc. Type of Offering: Follow-on Public Offering Type of Security: Common Stock Ticker Symbol: EGBN Exchange: The NASDAQ Capital Market Gross Proceeds: $40.0 Million Over-Allotment Option: 15% Use of Proceeds: General corporate purposes, including continued orga
Slide 4: 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* Fidelity & Trust Financial Corporation (“F&T”) acqu
Slide 5: Summary Statistics – June 30, 2009
Summary Statistics – June 30, 2009 Note: Data at June 30, 2009 unless otherwise noted.
Slide 6: EagleBank Locations
EagleBank Locations Bethesda Tysons Corner Montgomery County Prince George’s County Alexandria Arlington Fairfax County Loudoun County Washington, DC
Slide 7: Experienced Senior Management Team
Experienced Senior Management Team
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 Exceptional Asset Quality Record Conservative Securities Portfolio
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 thought
Slide 10: Consistent Balance Sheet Growth
Consistent Balance Sheet Growth EGBN CAGR 31.5% Peer CAGR: 15.1%¹ EGBN CAGR 24.7% (Excluding F&T Acquisition) (1) Regional peers includes publicly-traded commercial banks with assets between $1 and $5 billion and headquartered in Washington, DC, Virginia, West Virginia, Maryland, Pennsylvania and De
Slide 11: Net Income
Net Income EGBN Net Income CAGR: 38.9% Peer CAGR: 0.3%¹ $2,651 EGBN Net Income Available to Common CAGR: 35.2% (1) Regional peers includes publicly-traded commercial banks with Assets between $1 and $5 billion and headquartered in Washington, DC, Virginia, West Virginia, Maryland, Pennsylvania and D
Slide 12: Pre-Tax, Pre-Provision Income
Pre-Tax, Pre-Provision Income (1) Regional peers includes publicly-traded commercial banks with Assets between $1 and $5 billion and headquartered in Washington, DC, Virginia, West Virginia, Maryland, Pennsylvania and Delaware, less the following given these peers had not reported all shown pre-tax
Slide 13: Loan Portfolio Composition
Loan Portfolio Composition Loan Portfolio by Type Loan Portfolio by Location Total Gross Loans: $1.3 Billion Note: At June 30, 2009 Prince William 2.7% Other U.S. 3.3% Other VA 3.1% Alexandria 1.4% Loudoun 1.5% Montgomery 27.9% Arlington 0.8% Fairfax 8.6% Washington, DC 32.8% Other MD 9.2% Prince Ge
Slide 14: Geographic Detail of Loan Portfolio
15 Geographic Detail of Loan Portfolio Note: At June 30, 2009 Concentration in quality markets: Washington, DC and Montgomery County, Fairfax County Low levels of exposure to markets hit hardest by real estate downturn (Dollar Values in Thousands) Commercial Real Estate Owner Income Residential Home
Slide 15: Detail of Loan Portfolio
16 Detail of Loan Portfolio Note: At June 30, 2009 Construction Loans by Type Income Producing CRE by Type Total: $191.6 Million Total: $427.6 Million
Slide 16: Credit Quality
Credit Quality 30-89 day delinquencies experience significant improvement NPAs declined by 32% from March 31, 2009 to June 30, 2009 Cumulative loss on CRE portfolio since inception = $695,000 (Dollars Values in Thousands) As of 03/31/08 06/30/08 09/30/08 12/31/08 03/31/09 06/30/09 30-89 Days Past Du
Slide 17: Commercial focus drives growth of Non-Interest Bearing Demand accounts
Commercial focus drives growth of Non-Interest Bearing Demand accounts Taking market share from regional/super-regional banks, but demanding relationship pricing Quickly becoming the leading community bank in Washington DC Metro Area Deposit Composition Brokered CDs 9.7% CDARs 5.6% CDs, Less than $1
Slide 18: Superior Relationships/Net Interest Margin
Superior Relationships/Net Interest Margin Note: Regional peers includes publicly-traded commercial banks with Assets between $1 and $5 billion and headquartered in Washington, DC, Virginia, West Virginia, Maryland, Pennsylvania and Delaware. Source: SNL Financial F&T closed August 31, 2008 Repriced
Slide 19: Market Information – Washington, DC Metropolitan Statistical Area
Market Information –Washington, DC Metropolitan Statistical Area Population 6.3 Million 4th largest market in the U.S. Employment 2.9 Million Average annual job creation is 43,000 Highest in net new job growth in the U.S. over last decade Washington DC Metro area is the No. 2 hub for the fastest gro
Slide 20: Greater Washington Economy 2009
Greater Washington Economy 2009 Note: Other includes Health/Education, Media Source: George Mason University, Center for Regional Analysis Total Federal Spending of 33.3% Other 7.0% Associations 2.2% Hospitality 2.0% International 4.8% Other Federal 15.2% Federal Procurement 18.1% Local Business 38.
Slide 21: Deposit Market Share Washington, DC Metropolitan Area
Deposit Market Share Washington, DC METROPOLITAN AREA Data Adjusted for all Pending and Completed Mergers as of 8/26/2009 (Dollars Values in Thousands) D.C. Metro Area: MD- Montgomery and Prince George's; DC - Washington DC; VA - Arlington, Alexandria, Fairfax, Fairfax (City), Falls Church, Loudon,
Slide 22: Pro Forma Capital Ratios
Pro Forma Capital Ratios (1) See appendix at page 36 for a reconciliation of these non –GAAP financial measures Note: Assumes net proceeds of $37.474 million that are invested in short term investments with a 20% risk weighting
Slide 23: Looking Ahead
Looking Ahead Focus on organic growth Take advantage of dislocation in market Increase Northern Virginia footprint Focus on relationships to increase deposit penetration Profitability Continued focus on Net Interest Margin Diligent expense control to improve Efficiency Ratio Lower effective tax rate
Slide 24: Appendices
Appendices
Slide 25: Loan Portfolio Trends
Loan Portfolio Trends Acquisition of F&T closed August 31, 2008 Focus on reducing construction as a percentage of the overall portfolio Continue to effort to grow core C&I lending effort Grow core CRE if LTVs, yields and deposits are attractive vs. historical levels (1) Annualized growth based on gr
Slide 26: Loan Portfolio by Risk Rating
Loan Portfolio by Risk Rating Loan portfolio and risk ratings reviewed by independent, third-party credit review quarterly 9999 - Loss 0.0% 9000 - Doubtful 0.1% 8000 - Substandard 3.6% 7000 - Special Mention 1.5% 6000 - Watch 1.1% 5000 - Acceptable with Risk 14.1% 4000 - Acceptable 33.1% 3000 - Good
Slide 27: Commercial focus drives growth of Non-interest Bearing Demand accounts
Commercial focus drives growth of Non-interest Bearing Demand accounts Taking market share from regional/super-regional banks, but demanding relationship pricing Quickly becoming the leading community bank in DC Metro Area Deposit Composition(1) Annualized growth based on growth from September 30, 2
Slide 28: Conservative Securities Portfolio
Portfolio has $1.8 million of net unrealized gains at June 30, 2009 No holdings of GSE equities or bank Trust Preferred or bank Trust Preferred CDOs Average life of portfolio is 3.6 years Conservative Securities Portfolio Note: Total securities at 9/30/08 includes $99 million acquired from F&T (Doll
Slide 29: 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 30: 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 31: 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 32: Experienced Management Team
Experienced Management Team Susan G. Riel, EVP, Chief Operating Officer of EagleBank Ms. Riel, Executive Vice President - Chief Operating Officer of the Bank, and formerly Chief Administrative Officer, previously served as Executive Vice President - Chief Operating Officer of Columbia First Bank, FS
Slide 33: Historical Balance Sheet
Historical Balance Sheet (Dollars Values in Thousands) 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 December 31, Assets Cash and June 30, Equivalents $11,168 $6,644 $27,700 $29,435 $55,729 $33,996 $33,832 $20,142 $29,837 $57,657 Securities Available for Sale 32,398 39,439 70,675 82,581 64,098 6
Slide 34: Historical Income Statement
Historical Income Statement (Dollar Values in Thousands, except per share data) LTM For the Twelve Months Ended December 31, June 30, 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 $78,147 Total Interest
Slide 35: Non-GAAP Financial Measures
Non- GAAP Financial Measures Tangible common equity and tangible book value per share are non-GAAP financial measures derived from GAAP-based amounts. We calculate tangible common equity by excluding the balance of intangible assets from common stockholders’ equity. We calculate tangible book value
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