Eagle Bancorp, Inc. · NASDAQ:EGBN
Eagle Bancorp — Keefe, Bruyette & Woods Investor Conference 2013
51 slides from Eagle Bancorp's conference presentation, Jun 6, 2013
Slide 1: Keefe, Bruyette & Woods Investor Conference
* @EAGLE BANCORP INC. Keefe, Bruyette & Woods Investor Conference June 6, 2013 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 polici
Slide 3: Company Overview
Company Overview = Eagle Bancorp, Inc. is a growth oriented community bank headquartered in Bethesda, Maryland = Focused on the Washington, DC metropolitan area, with 18 branches = Commercially oriented business model with deep relationships of loans, core deposits and related products = #1 in depos
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 mil ion 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 — March 31, 2013
| Summary Statistics — march 31,2013 Total Assets: $3.3 billion ‘Total Loans: $2.5 billion ‘Total Deposits: $28 billion ‘Tangible Common Equity: $301.6 million (1) ‘Tangible Book Value per Common Share: $12.89 (1) Shares Outstanding: 23,389,238 @) SBLF Preferred: (1% Dividend Rate, until December, 2
Slide 6: Attributes of EagleBank
Attributes of EagleBank » — Driven by Profitability - 17 Consecutive Quarters of Increasing Earnings » — EPS Growth — 47.36% CAGR in Quarterly EPS over past 3 years > — Superior Net Interest Margin - 4.20% » — Balanced Organic Growth » — Geographic Market Positioning » — Experienced and Dedicated Bo
Slide 7: EagleBank Locations
| EagleBank Locations Reston as Washington, DC Tyson's Comer
Slide 8: Deposit Market Share
| Deposit Market Share WASHINGTON. DC METROPOLITAN AREA (Cater Value wren) Nealgtrs Prmcher Jone 502011 Jane302012 Ann 2012 Rank Campy ime Gey Ste Hat ance dane Gh Mike Stare 1 OF Capa one Melan VA ms $ mena $s B0S7 oS 2 WIC WatFago 800 Se Fanceco CA 16 D796 smh a BAC Bankof Anni Guuhwe NC 16 poms e
Slide 9: Financial Indicators — Regional Peer Analysis
| Financial Indicators — Regional Peer Analysis Rati {at or for the quarter ended} Net Interest Margin Efficiency Ratio Non-Interest Income/Total Revenue NPAs +90 Days Past Due/Total Assets NPLs + 90 Days Past Due/Total Loans Allowance Loan Losses/Gross Loans Coverage Ratio Net Charge-Offs ‘Tangible
Slide 10: Financial Indicators — Local Peer Analysis
Financial Indicators — Local Peer Analysis Loan Growth (March 31, 2012 - March 31, 2013) = Commercial & Industrial = Commercial Real Estate = Construction & Development = Total Loans Deposit Growth (March 31, 2012 - March 31, 2013) = Demand Deposits = Money Market Accounts = Certificates of Deposit
Slide 11: Consistent Balance Sheet Growth
Millions of Dollars Consistent Balance Sheet Growth 83,5009 Total Assets 33,2504 $3,004 82,7504 32,5004 92,2504 82,0004 1.7504 $1,504 81,2504 A O8QI O8Q2 OQ O8QA _09QI 09Q2 9Q3 09Q4 10Q1 10Q2 10Q3 10Q4 NQI 11Q2 11Q3 1QI 12QI 1292 1293 12QH-13Q1 o Q (Q)Reional pers includes pull traded commercial ban
Slide 12: Growth in Pre-Tax, Pre-Provision Income
Millions of Dollars Growth in Pre-Tax, Pre-Provision Income sam007 Quarterly Pre-Tax Pre-Provision Net Revenue 21,0004 520.0004 519.0004 518.0004 517.0004 516.0004 515.0004 514.0004 513.0004 512.0004 11,0004 $10,0004 59,0004 53,0004 s7,0004 86,0004 35,0004 s4,0004 53,0004 52,0004 51,0004 08QI 08Q2 0
Slide 13: Contribution from Non-Interest Income
Contribution from Non-Interest Income IB Net Tinerest Income Gain on Sale of Loans © Other Non-Taterest Income $35,0009 $30,0004 $25,0004 2 $20,0004 15,0004 $10,0004 85,0004 so 108Q108Q208Q308Q409Q109Q209Q309Q410Q1 10Q210Q310Q411Q1 11Q211Q311Q412Q112Q212Q312Q413Q1
Slide 14: Consistent Net Income Growth
Consistent Net Income Growth BINet Income Available to Common MlTARP Dividend O SBLF Dividend 12,0009 $1172 11,0004 10,0004 9,004 38,0004 7.0004 36,0004 35,0004 s4,0004 33,0004 32,0004 oom ATT 08Q1 08Q2 O8QS_0SQI O9QI_09Q2 09Q3 OQ 1OQI 102 10Q3 10QI QI 11Q2 1G’ MEH 12Q1 12@2 1293 12Q1 13Q1 a) so+ (0
Slide 15: Geographic Detail of Loan Portfolio
| Geographic Detail of Loan Portfolio (OallerVatwein howsonds) ‘Owner Owner Income Occupied — Occupied Producing Residential Other County C&L CRE Const. CRE Construction Land Mortgage Home Eyuity Consumer TOTAL _% of Total Maryland Montgomery S$ 20328 $ 75376 $ $496 $ 175331 $ 76411 $21,740 $ 65,278
Slide 16: Credit Quality Trends
Credit Quality Trends (Dollars Values in Thousands) 30-89 Days Past Due Nonperforming Assets: 90 or More Days Past Due Nonacerual Restructured Loans Total Nonperforming Loans (NPLs) Other Real Estate Owned (OREO) ‘Total Nonperforming Assets NPAs + 90 Days Past Due/Assets (1) Reserves Reserves/Loans
Slide 17: Consistent Asset Quality
| Consistent Asset Quality Total Loans Taam erage ane Growth WPA hare ts (oro) woos $ S67 me in 209 $ mesma ao $189) Ls aa ‘susoqaag00 ‘000% 2011 ‘$380,756 1.2% 0.32% 2012 ‘$436,839 1.06% 037% ‘Supoqaen.o0 muy $ sim 1% 039% — som ‘Net Charge Off History * 0 fiperience 2010-2012 sees yy oy ae EGBN EG
Slide 18: Balanced Loan and Deposit Growth
Balanced Loan and Deposit Growth $3,000,000,000 $2,500,000,000 '$2,000,000,000 $1,500,000,000 eTotal Loans Total Deposits $1,000,000,000 $50,000,000 so ° PS SS SP YP OP MM WM rae SP PK SK “ ) (1) QB 2011 Deposits exclude the “settlement deposit”. (2) QI 2013TAG" related deposit loss was $130 million
Slide 19: Deposit Composition
| Deposit Composition (Dretian Values in Thousands) Deposit Type % of %of %of Balance Total Balance ‘Total Balance Total Noninterest Bearing (1) S 698,636 29.5% $881,390 30.4% $756,177 26.9% 82% Interest Bearing Transaction 75,751 3.2% 113,813 3.9% 99,187 3.5% 30.9% Core Savings & Money Market (2) 1
Slide 20: Superior Relationships/Net Interest Margin
Superior Relationships/Net Interest Margin 5.25% [Fat dosed August 37, 2008] 475 g ; S425 i 3.75% 3.25% 1Q2008 2Q2008 2Q2009 32009
Slide 21: Capital Strength
Capital Strength (Dollars Values in Thousands) Total Assets S 2,831,255 S 2815549 S$ 2,962,897 S 2,976,188 S 3,409,441 Total Capital S 266,711 S$ 276,008 S$ 290,270 $324,399 S 349,976 Tier 1 Leverage Ratio 8.21% 9.33% 9.63% 10.36% 10.44% ‘Tier 1 Risk Based Capital Ratio 10.33% 10.08% 10.02% 10.76% 1
Slide 22: Nationally Recognized Financial Performance
Nationally Recognized Financial Performance SANDLER O'NEILL+ PARTNERS "0p Investment Idea” Recommendation 2012 = “Sm-All Stars” Designation 2011 = Designated as a “Grower” Bank 2012 = Honor Roll of Community Banks 2010, 2011 & 2012 = Ranked 24" among Best Performing Community Banks in the U.S, 2012
Slide 23: Highly Regarded by Bank Rating Firms
| Highly Regarded by Bank Rating Firms FIRM IDC Analyze the Future VERIBANC = BAUERFINANCIAL, INC RATING 273/300 Green - *
Slide 24: Market Information — Washington, DC MSA
Market Information —Washington, DC MSA = Population a Sth largest market in the U.S = Employment a 39,700 new jobs created in last year Average annual job creation is 30,200 over last decade Highest in net new job growth in the U.S. over last decade Unemployment rate of 5.4% vs. US average of 7.7% o
Slide 25: Washington Metropolitan Area Primary Sub-Markets
Washington Metropolitan Area Primary Sub-Markets Population Total Number of (Actual) Employment _Busines: [Anne Arundel, Maryland 540,836 214,336 Prince George's, Maryland 865,486 328,314 24,422 Howard, Maryland, 291,019 -128,89710,714 Frederick, Maryland 234,896 96,979 8,362] Charles, Maryland 148,
Slide 26: Unemployment Rate - Largest US Markets
| Unemployment Rate- Largest US Markets February, 2013 2 8 g 4 2 é
Slide 27: Average Sales Price Percent Change Washington MSA
Average Sales Price Percent Change Washington MSA All Housing Types Annual Change Annual Change by Month % 2008 2009 2010 2011 2012 30 20 | a 10 60385 ,754 ri oes a ale " 2 RATRTHI aR “i aati T | Ih a «oT -20 “oa LT bas -30 23-74 2 b6 Source: MRIS, GMU Center for Regional Analysis 26
Slide 28: Greater Washington Economy
Greater Washington Economy Hospitality 2.0% Assoctations 2.0% Non-Local Business 91% Other 82% Note: Othe s
Slide 29: Key Success Factors
Key Success Factors = Building and maintaining core relationships ° ° Cross sales Focus on key customers = Maintenance of strong credit culture ° ° ° ° Conservative underwriting criteria and loan policies Disciplined Committee Approval and Review Process Periodic Loan and Portfolio Stress Testing Pr
Slide 30: Key Success Factors (continued)
Key Success Factors (continued) = Maintained focus on areas of strength » Concentration on core geographic markets and products = Built the proper infrastructure to support the increased volume of business and regulation = Significant Management and Board level reporting = Human Resources o Recruiti
Slide 31: Looking Ahead
Looking Ahead = Capitalize on investment in Northern Virginia market Profitability o Pricing discipline to sustain Net Interest Margin o Diligent expense control to maintain Efficiency Ratio Emphasis on Organic Growth o Hire seasoned lenders and business development officers o Expand customer base »
Slide 32: EGBN Stock Price Performance
| EGBN Stock Price Performance Price Change (%) aco 2 8 3 2 & 8 & & a8 ne ee | Stock Price Performance 1 Year 3 Year 3 Year EGBN 54.4% 89.9% 145.4% NASDAQ Bank Stock Index 23.6% 18.7% (13.7%) S & P 500 Index 24.4% 49.7% 16.4% ‘Source: SNL Financial, Bloomberg, Chart and caeuatons a of eose, May 31,2
Slide 33: Appendices
Appendices
Slide 34: Conservative Securities Portfolio
| Conservative Securities Portfolio (alten Vans Phas US Govemment Agency Secusties sss02 feed 7 soz 12986 Mortgage Backed Securtes - GSEs 19,601 2514 7 1915978 crs Municipal Bonds ‘2007 esr Sut 36380 26s ‘Other Equity Investments 07 = s 39 1%, "Total Securities = ——sa917 =a Tic Se Tome US Govemment
Slide 35: Loan Portfolio Trends
| Loan Portfolio Trends (Pelosi Fhsands) Loan Type Babee _% of Total Balanee _% of Total Babnee _% of Total % % (Commercial and Industrial $ 22.5% © $ 543,070 219% $579,618 11.6 25.4% Owner Occupied 12.6% 297.857 11.9% 11.9% 10.1% Owner Oceupied-Const, 13% 28,808 1.2% 13% 24.0% Income Producing 829,
Slide 36: Loan Portfolio Composition
| Loan Portfolio Composition Total Gross Loans: $2.5 Billion Note: At March 31, 2013 35
Slide 37: Diversified Commercial Real Estate Portfolio
| Diversified Commercial Real Estate Portfolio Total: $395.8 Million Total: $910.8 Million Note: At March 31, 2013 36
Slide 38: Loan Portfolio by Risk Rating
Loan Portfolio by Risk Rating (Dollar Values in Thousands) ell ey we 1000 - Prime S 1LISs 05% $4610 ar ~ 2000 - Exwellent 132,770 192507 3000 - Good 826124 943,345 4000 - Acceptable 750.639 903,571 5000-Acceptable with Risk 314,160, 358181 £00 - Watch 39.216 41326 7000 - Special Mention 45.29 46,566
Slide 39: Geographic Detail of NPA's
| Geographic Detail of NPA’s (Dollar Values in Thousands) Maryland Mogmey $1067 $ - $ - $ - $ OBS - S$ - BOS - 8 18% $570 $ 7,570 Prince Geore’'s S16 262 . 1,260 2 569 a 3083 750 3.803 Otter MD 6199s > : 2 965 > : 7 279 os 3,384 WashinglonDC 1,379 : P ol gus » 2 8257188 1IST Virginia eso I : 2 : E *
Slide 40: Acquisition Strategy & History
Acquisition Strategy & History Significant Due Diligence precedes any Offer to Acquire Accretive Transactions are always the Goal Acquisition #1 (F&T completed on August 31, 2008) a System conversion successfully completed one week after close a Targeted expense savings achieved in methodical and th
Slide 41: Experienced Senior Management Team
| Experienced Senior Management Team Years in Name Title/Function i Ronald D. Paul Chairman, President & CEO 25 15 Robert P. Pincus Vice Chaiman 40 4 Michael T. Flynn EVP & COO - Eagk Bancorp 42 9 Susan G. Riel Sr. EVP & COO - EagkBank 37 15 ‘Thomas D. Murphy President - Community Banking - EagleBan
Slide 42: 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 o
Slide 43: 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 V
Slide 44: Experienced Management Team
| Experienced Management Team AntonioF. Marquez, EVP, Chief Commercial Real Estate Lending Officer Mr. Marquez, Executive Vice President, recently joined EagleBank as the Chief Real Estate Lender. Prior to joining EagleBank, Mr. Marquez established the real estate lending franchise for HSBC for the
Slide 45: Experienced Management Team
| Experienced Management Team James HL EVP, Chief Financial Officer, Eagle rp, Inc. and Eé 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 served
Slide 46: Historical Balance Sheet
Historical Balance Sheet 45
Slide 47: Historical Quarterly Balance Sheet
Historical Quarterly Balance Sheet
Slide 48: Historical Income Statement
| Historical Income Statement (Dollar Values n Thousands, except per share data) Total Interest Ineome ‘Total Interest Expense [Net Interest Income Loan Loss Provision Service Charges on Deposits Gain/Loss on Sale of Loans Gain/Loss on Sale of Securities BOLI Revenue (Other Noninterest Income ‘Total
Slide 49: Historical Quarterly Income Statement
Historical Quarterly Income Statement (Cor tae howd except por hare dota) Growth Growth Rate 1Q2H3 1920138 Jun2011__$ep2011__Dee2011__Mar2012__Jun 2012__Sep2012__Dee2012__Mar2013__1g202__4gu012 “Toa terest ncome S 2890 $ MOTHS SRL $ 32S SHSTS S66 Ss SEIS SERS 16S HH) Taal terest pene S02 S36 4620 1.
Slide 50: GAAP Reconciliation
GAAP Reconciliation GAAP Reconciliation (Unaudited) (dollars in thousands except per share data) Common shareholders’ equity Less: Intangible assets ‘Tangible common equity Book value per common share Less: Intangible book value per common share ‘Tangible book value per common share Totalassets Less
Slide 51: GAAP Reconciliation Footnotes
GAAP Reconciliation Footnotes (1) Tangible common equity to tangible assets (the "tangible common equity ratio") and tangible book value per common share are non-GAAP financial measures derived from GAAP-based amounts. The Company calculates the tangible common equity ratio by excluding the balance
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