Eagle Bancorp, Inc. · NASDAQ:EGBN
Eagle Bancorp — Investor Presentation (May 2010)
37 slides from Eagle Bancorp's investor presentation, May 3, 2010
Slide 1: Eagle Bancorp (EGBN)
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 n Founding members had extensive banking experience n Raised $16.5 million in initial subscription offering - 1997* n Commenced operations with three Maryland branches - July, 1998 n Second subscription offering raised $30 million - 2003* n Reached $500 million in assets in 2004 n
Slide 4: Summary Statistics - March 31, 2010
Summary Statistics - March 31, 2010
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 Tyson's 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 Years Years in with Name Title/Function Banking EGBN Ronald D. Paul Chairman, President & CEO 2B 2 Robert P. Pincus Vice Chairman 37 2 Michael T. Flynn EVP & COO - Eagk Bancorp 39 6 Susan G. Riel Sr. EVP & COO - BagkBank 34 12 ‘Thomas D. Murphy President - Retail B
Slide 8: Why Invest in EGBN?
Why Invest in EGBN? Ø Driven by Profitability Ø Superior Net Interest Margin Ø Emphasis on Core Deposits and Deep Relationship Banking Ø Strong Organic Growth Ø Geographic Market Positioning Ø Experienced and Dedicated Board and Management Team Ø Exceptional Asset Quality Record Ø Conservative Secur
Slide 9: Key Financial Attributes
Key Financial Attributes 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 who reported at all reporting periods shown above Source: SNL Financial
Slide 10: Consistent Balance Sheet Growth
Consistent Balance Sheet Growth (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 who reported total assets at all reporting periods shown above Source:
Slide 11: Net Income
Net 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 who reported net income or loss for all reporting periods shown above Source: SNL Financial
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 who reported pre-tax pre-provision net revenues for all reporting periods
Slide 13: Loan Portfolio Composition
Loan Portfolio Composition Loan Portfolio by Type Loan Portfolio by Location
Slide 14: Geographic Detail of Loan Portfolio
Geographic Detail of Loan Portfolio Note: At March 31, 2010 n Concentration in quality markets: Washington, DC and Montgomery County, Fairfax County n Low levels of exposure to markets hit hardest by real estate downturn
Slide 15: Detail of Loan Portfolio
Detail of Loan Portfolio Construction Loans by Type Income Producing CRE by Type
Slide 16: Consecutive quarters of improvement in NPA trend
n 4 consecutive quarters of improvement in NPA trend n Adequate Allowance is being maintained n If adjusted for impairment reserves related to the F&T acquisition, the allowance would be over 2.0%
Slide 17: Commercial focus drives growth of non-interest bearing demand accounts
n Commercial focus drives growth of Non-interest Bearing Demand accounts n Taking business from regional/super-regional banks, but demanding relationship pricing n Still have tremendous opportunity based on current market share in DC Metro Area Deposit Composition
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 who reported net interest margin for all periods shown abo
Slide 19: Market Information - Washington, DC
Market Information -Washington, DC Metropolitan Statistical Area n Population 6.2 Million q 5th largest market in the U.S. n Employment 2.9 Million q Average annual job creation is 37,500 q Highest in net new job growth in the U.S. over last decade q Washington DC Metro area has highest concentratio
Slide 20: Greater Washington Economy 2009
Greater Washington Economy 2009 Note: Other includes Health/Education, Media Source: George Mason University, Center for Regional Analysis
Slide 21: Deposit market share in defined market area
Note: Shaded companies in grey denote those companies headquartered outside of Washington, D.C. Metro Area. Data excludes: E*Trade and UNIFI Mutual Holding Company whose deposits are substantially from outside of the defined market area. Source: FDIC, as of June 30, 2009
Slide 22: Capital Strength
Capital Strength n $12.1 million of Sub-debt raised in August, 2008, $2.9 million repaid in September, 2009 n $38.2 million of TARP Preferred Stock placed in December, 2008, $15 million redeemed in December, 2009 n $55.2 million raised through common stock offering in September, 2009
Slide 23: Looking Ahead
Looking Ahead n 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 n Profitability o Continued focus on Net Interest Margin o Grow noninterest components of revenue
Slide 24: Appendices
Appendices
Slide 25: Loan Portfolio Trends
Loan Portfolio Trends n Focus on reducing construction as a percentage of the overall portfolio n Continued effort to grow C&I and Owner Occupied loans
Slide 26: Loan Portfolio by Risk Rating
Loan Portfolio by Risk Rating n Loan portfolio and risk ratings reviewed by independent, third-party credit review quarterly
Slide 27: Commercial focus drives growth of Non-Interest Bearing Demand accounts
n Commercial focus drives growth of Non-Interest Bearing Demand accounts n Taking market share from regional/super-regional banks, but demanding relationship pricing n Quickly becoming the leading community bank in Washington DC Metro Area Deposit Composition
Slide 28: Conservative Securities Portfolio
n Portfolio has $5.3 million of net unrealized gains at March 31, 2010 n No holdings of GSE equities or bank Trust Preferred or bank Trust Preferred CDOs n Average life of portfolio is 3.2 years n Excludes Federal Reserve and Federal Home Loan Bank stocks Conservative Securities Portfolio
Slide 29: Proven Acquisition Capabilities
Proven Acquisition Capabilities n Evaluated many acquisition opportunities in 11 year history and only pursued one transaction - F&T n Acquisition of F&T completed on August 31, 2008 n System conversion successfully completed one week after close n Targeted expense savings achieved in methodical and
Slide 30: Fidelity & Trust Acquisition
Fidelity & Trust Acquisition n Strategic Matters: q Strong cultural match q Both institutions were growth oriented q Both institutions were “high touch” q Both institutions were “well connected” to community n Financial Matters: q Stock-for-stock transaction - 1,638,031 shares issued q Acquisition c
Slide 31: 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 32: 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 33: Experienced Management Team
Experienced Management Team Martha Foulon - Tonat, EVP, Chief Lending Officer Ms. Foulon-Tonatis 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 34: Historical Balance Sheet
Historical Balance Sheet (tn Shs) _2085 tows iso isos Cha goons sug sua aoe Tn? Total Cath ad Senet Tene haar lara ise —saa1 re ears HL sez asm Tiger 165680 RDI on an eae Sms 7a xo Taya a9 ewe re 2g das) ae Toul Net Lane Teisr —OSST Tas zea TR ‘eal neo 2 20, “oad See ts ses i Oar Ames poss 246) aes
Slide 35: Historical Quarterly Balance Sheet
Historical Quarterly Balance Sheet
Slide 36: Historical Income Statement
(Dollar Values in Dhousands, excep per share data) Total Interest Income ‘Total Iterest Expense Net Interest Income Loan Loss Provision Service Chars on Deposits GainvLoss on Sale of Loans GsiavL.oss on Sale of Securities BOLI Revenue. Other Noninterst Income “Total Noninterest Income ‘Salaries and
Slide 37: Historical Quarterly Income Statement
Historical Quarterly Income Statement