Eagle Bancorp, Inc. · NASDAQ:EGBN
Eagle Bancorp — Investor Presentation (May 2010)
39 slides from Eagle Bancorp's investor presentation, May 2010
Slide 1: May 2010
May 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 – March 31, 2010
Summary Statistics – March 31, 2010 Total Assets: $1.8 billion Total Loans: $1.4 billion Total Deposits: $1.5 billion Tangible Common Equity: $166 million Tangible Common Book Value per Share: $8.44 Shares Outstanding: 19,633,763 TARP Preferred: $23.2 million Headquarters: Bethesda, Maryland Market
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 13 branches o Commercially oriented business model with deep relationships on loan and deposit side of balance sheet o E
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 5 Virginia 1 Alexandria Total 13 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? 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: Key Financial Attributes
Key Financial Attributes EGBN Peers Growth Rate (CAGR 2005 - December 31, 2009): ■ Loan Growth 27.49% 13.50% ■ Deposit Growth 25.86% 12.82% ■ EPS Growth 2.76% NM ■ Tangible Book Value Per Share Growth 7.33% (0.16%) Key Ratios (at or for the quarter ended March 31, 2010): ■ Net Interest Margin 3.98%
Slide 10: Consistent Balance Sheet Growth
Consistent Balance Sheet Growth $2,000 Total Assets $1,750 $1,500 $1,250 ) tion Millions of Dollars 5% isi R 25. Acq u $1,000 CAG F& T N g EG B clu din % (Ex 1 $750 R 19. AG B NC EG $500 GR : 9.8%¹ A Peer C $250 $0 05Q1 05Q2 05Q3 05Q4 06Q1 06Q2 06Q3 06Q4 07Q1 07Q2 07Q3 07Q4 08Q1 08Q2 08Q3 08Q4 09Q1
Slide 11: Net Income
Net Income Net Income Available to Common TARP Dividend $3,500 $3,391 $3,250 $3,000 5% 15. $2,750 R : C AG % me 3.2 Thousands of Dollars $2,500 nc o : 1 R N et I C AG BN n $2,250 mo EG o m l e to C lab $2,000 A vai e n com I $1,750 N Net B EG $1,500 $1,250 Peer CAGR: .7%¹ $1,000 05Q1 05Q2 05Q3 05Q4
Slide 12: Pre-Tax, Pre-Provision Income
Pre-Tax, Pre-Provision Income $8,000 Quarterly Pre-Tax Pre-Provision Net Revenue $7,000 $6,000 18.1% R : $5,000 CAG Millions of Dollars B N EG $4,000 $3,000 $2,000 ¹ Peer CAGR: 6.1% $1,000 $0 05Q1 05Q2 05Q3 05Q4 06Q1 06Q2 06Q3 06Q4 07Q1 07Q2 07Q3 07Q4 08Q1 08Q2 08Q3 08Q4 09Q1 09Q2 09Q3 09Q4 10Q1 (1)
Slide 13: Loan Portfolio Composition
Loan Portfolio Composition Loan Portfolio by Type Loan Portfolio by Location Home Equity Prince William Other VA Other Consumer 1.6% 3.3% Other USA 6.2% 0.3% Loudoun 3.4% 1.4% Fairfax Land 6.8% 5.2% C&I Montgomery 25.6% Arlington 28.8% Construction 1.4% 11.1% Alexandria 1.2% Residential Mortgage 0.8
Slide 14: Geographic Detail of Loan Portfolio
Geographic Detail of Loan Portfolio (Dollar Values in Thousands) Commercial Real Estate Income Owner Producing Residential Other County C&I Occupied CRE CRE Mortgage Construction Land Home Equity Consumer TOTAL % of Total Maryland Montgomery $ 123,550 $ 58,668 $ 124,357 $ 1,970 $ 37,159 $ 1,844 $ 60
Slide 15: Detail of Loan Portfolio
Detail of Loan Portfolio Construction Loans by Type Income Producing CRE by Type Cash Church Comm Condo Industrial 1.6% 1.1% 1.3% Entertainment Coop 0.5% 0.4% Storage 0.0% Land 1.8% Storage Education 3.9% 2.5% 1.9% Special Use 1.4% Gas Station Mixed Use 0.4% Single & 1-4 Family 13.4% Single & 1-4 Fa
Slide 16: Credit Quality
Credit Quality (Dollars Values in Thousands) As of As of As of As of As of As of As of As of Jun2008 Sep2008 Dec2008 Mar2009 Jun2009 Sep2009 Dec2009 Mar2010 30-89 Days Past Due $ 1,987 $ 7,909 $ 14,123 $ 19,740 $ 7,762 $ 11,499 $ 18,849 $ 29,336 Nonperforming Assets: 90 or More Days Past Due $ - $ 2
Slide 17: 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 $ 2,378 $ 1,191 $ - $ - $ - $ - $ 24 $ - $ 3,593 $ 345 $
Slide 18: Deposit Composition
Deposit Composition Quarterly Annual Growth Rate (Dollar Values in Thousands) As of March 31, 2009 As of December 31, 2009 As of March 31, 2010 Growth Rate (Annualized) Deposit Type % of % of % of Balance Total Balance Total Balance Total % % Noninterest Bearing $ 232,725 20.2% $ 307,959 21.1% $ 291
Slide 19: 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% 3.98% 3.70% 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 Note:
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% 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 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: EagleBank Deposit Market Share
EagleBank Deposit Market Share 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/a n/a 6/30/2000 112,960 0.7% 4 0.0% n/a n/a 6/30/2001 177,196 1.1% 8
Slide 24: Capital Strength
Capital Strength June 30, September 30, December 31, September 30, December 31, March 31, 2008 2008 2008 2009 2009 2010 Total Assets $ 915,800,000 $ 1,457,545,000 $ 1,496,827,000 $ 1,682,773,000 $ 1,805,504,000 $ 1,832,991,000 Total Capital $ 84,123,000 $ 100,593,000 $ 142,371,000 $ 201,516,000 $ 18
Slide 25: 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
Slide 26: Appendices
Appendices 25
Slide 27: Loan Portfolio Trends
Loan Portfolio Trends Quarterly Growth Annual Growth Rate (Dollar Values in Thousands) As of March 31, 2009 As of December 31, 2009 As of March 31, 2010 Rate (Annualized) Loan Type Balance % of Total Balance % of Total Balance % of Total % % Commercial and Industrial $ 321,517 25.4% $ 350,614 25.1%
Slide 28: Loan Portfolio by Risk Rating
Loan Portfolio by Risk Rating (Dollar Values in Thousands) Loan Portfolio as of March 31, 2010 4000 - Acceptable, 32.9% Portfolio by Risk Rating Risk Rating Balance % of Loans 1000 - Prime $ 2,106 0.1% 2000 - Excellent 135,897 9.5% 3000 - Good 530,107 37.1% 5000 - Acceptable w ith Risk, 4000 - Accep
Slide 29: Deposit Composition
Deposit Composition (Dollar Values in Thousands) As of Wholesale CD's March 31, 2010 4% NonInterest Bearing 20% % of DEPOSIT TYPE Balance Total Core CD's 31% Interest Bearing NonInterest Bearing $ 291,714 20% Transaction 3% Interest Bearing Transaction 48,865 3% Savings & Money Market 624,197 42% Co
Slide 30: Conservative Securities Portfolio
Conservative Securities Portfolio (Dollar Values in Thousands) March 31, 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 95,521 702 96 96
Slide 31: 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 32: 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 33: 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 34: 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 35: 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 36: 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 37: Historical Quarterly Balance Sheet
Historical Quarterly Balance Sheet (Dollar Values in Thousands) Jun 2008 Sep 2008 Dec 2008 Mar 2009 Jun 2009 Sep 2009 Dec 2009 Mar 2010 Assets Cash and Equivalents $20,019 $46,078 $29,837 $37,007 $57,657 $111,688 $117,687 $100,367 Securities Available for Sale 79,585 213,915 169,079 158,976 177,710
Slide 38: 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 39: Historical Quarterly Income Statement
Historical Quarterly Income Statement (Dollar Values in Thousands, except per share data) Jun 2008 Sep 2008 Dec 2008 Mar 2009 Jun 2009 Sep 2009 Dec 2009 Mar 2010 Total Interest Income $ 13,995 $ 16,744 $ 20,904 $ 20,067 $ 20,432 $ 21,426 $ 22,413 $ 22,508 Total Interest Expense 4,753 5,829 7,680 6,6