Eagle Bancorp, Inc. · NASDAQ:EGBN
Eagle Bancorp — Sterne Agee Financial Institutions Investor Conference 2014
55 slides from Eagle Bancorp's conference presentation, Feb 12, 2014
Slide 1: Eagle Bancorp Inc. – Sterne Agee conference, February 12-14, 2014
” @EAGLE BANCORP INC. Sterne Agee Fi February 12-14, 2014 Ticker: EGBN www.eaglebankcorp.com
Slide 2: Forward-Looking Statements
Lool Stat fptexentation coutatas ewvard looking statements within the meaning of the Securities and Exctaage Act of 1934, as amended, including statements of goals, int pat fentions, and expectations as to future trends, plans, events or results of Company operations and policies and regarding gener
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 deposit mar
Slide 4: History of Growth
History of Growth , 1998 Reached $500 million in assets in 2004 ies i enith , en 2008 Placed $38.2 million July, 2011) Reached $2 billion in assets in 2010 Placed $56.6 million of SBLF Preferred Stock—July, 2011 Completed $35 million “At the Market " spt ‘ ber, 2012
Slide 5: Summary Statistics — December 31, 2013
| Summary Statistics — December 31,2013 Total Loans: Total Deposits: Tangible Common Equity $338.8 millon (1) Tangible Book Valve per Common Share: 312.89) Shares Outstanding: 25,885,963, $566 milion Headquarters: Bethesda, Maryland Market Capitalization (at close January 31,2014): $860.7 milion Ins
Slide 6: Attributes of EagleBank
Attributes of EagleBank > i ility - i ing Earning: > — Superior Net Interest Margin - 4.40% (4% Qtr 2013) > — Balanced Organic Growth > — Geographic Market Positioning > — Experi d Team - > Exceptional Asset Quality Record - > » — Proven Ability to Execute Acquisitions
Slide 7: EagleBank Locations
| EagleBank Locations eaesoe wwe « Washington, DC r Comsty, <a
Slide 8: Deposit Market Share
| Deposit Market Share [WASHINGTON DCNETROPOLTANAREA peel mo eats | inte essnoe setae Market ores rate eG zs EGBN Neri rate 15.4% tegen DE Mss Aes ND Necigoon <2 Pia Geel DC- Wal Drsecisan taco ain unannealed Eroce Foie thon 30018
Slide 9: Financial Indicators — Regional Peer Analysis
Financial Indicators — Regional Peer Analysis Regional EGBN EGBN EGBN_—_ Peers (1) 4Q2011 492012492013 492013 Net Interest Margin 4.16% 1% 4.40% 3.52% © Efficiency Ratio 56.97% 49.82% 50.03% 72.76% = Non-Interest Income’Total Revenue 26.67% NPAs +90 Days Past Due'Total Assets 2.70% » NPLs +90 Days P
Slide 10: Financial Indicators — Local Peer Analysis
Financial Indicators — Local Peer Analysis EGBN __ Peers Loan Growth (December 31, 2012 - December 31, 2013) = Commercial & Industrial 274% «4.5% = Commercial Real Estate 18.5% 5.3% = Construction & Development 8.2% 3.2% = Total Loans 18.1% 4.9% De ber 31, 2013) = Demand Deposits 8.6%) 0.6% = Money
Slide 11: Consistent Balance Sheet Growth
Consistent Balance Sheet Growth (Regional peo ince 5 Darsevhe pase 10 ‘Source: SNL Faanea!
Slide 12: Growth in Pre-Tax, Pre-Provision Income
Growth in Pre-Tax, Pre-Provision Income Quarterly Pre-Tax Pre-Provision Net Revenue oust
Slide 13: Contribution from Non-Interest Income
Contribution from Non-Interest Income 0. 18Q409Qi09Q209Q309Q4 10Q 1109210931094 119111921193 1194129122123 129413Q112Q213Q31304
Slide 14: Consistent Net Income Growth
Consistent Net Income Growth
Slide 15: Geographic Detail of Loan Portfolio
Geographic Detail of Loan Portfolio 92945158 100.0% $1,119,800 S413268 $1609 $ 90,418 $114,242 of Total 23.6% 108% «= 12% 38 4.0P 3.1% ashington, and price locked) ‘Note: AtDecember 31,2013
Slide 16: Geographic Detail of CRE — Construction
Geographic Detail of CRE — Construction (ela Vlsin Tas) Singles 1-4 Residential Fanily _MveUse Oke __Mulifmily_Retl___—Hiwel_—Condo__—Other_—TOTAL —_% ofTou Maryland Montgomery S$ Bg Ss - SIIB S - - 3 S - S 66899 16.2% Prince Georges 30-867 - «67 NOH 17457 4.2% Ofer 1275806 509 64 1426 47356 11.3% W
Slide 17: Geographic Detail of CRE- Income Producing
Geographic Detail of CRE- Income Producing Dolls Vatusin Thowserd) Office & Otice Single &14 Condo __Retil_Malifamity Family __Hinel__MinedUse Industral Other_ TOTAL _% of Toul Maryland Monigomery S 43304 $43,592 $ 9693 $13465 $ - $21,661 S$ 8,174 $10,708 $ 150,600 13.4% Prince George's 27 421 BOM 8
Slide 18: Credit Quality Trends
Credit Quality Trends (Dollar: Values in Thousand) 30-89 Days Past Due $ 23365 $ 32,079 $ 41,807 $ 19,927 $ 27,990 $ 18253 $ 8.794 $ 17,143 ‘Nonperforming Assets: 90 or More Days Past De 4 3 So os 8 eS soe aoe 36714 32,876 32,423 30,684 28,166 23,507 24,702 Boal Someone RSL J 36714 § 32876 S 32403 9
Slide 19: Consistent Asset Quality
Consistent Asset Quality Total Loans ntl reel , eee Wy), Mitales|) we) Oe pessy EOEP ERY Charge OF History cleat 21-2013 commercial & Industrial
Slide 20: Balanced Loan and Deposit Growth
Balanced Loan and Deposit Growth '$3,500,000,000 '$3,000,000,000 $2,500,000,000 '$2,000,000,000 Total Loans '$4,500,000,000 Total Deposits '1,000,000,000 '$500,000,000 so S's oY oe - ‘ee s ve ra ee s aca a ra i)
Slide 21: Deposit Composition
Deposit Composition (Den tale i Seman) Deposit Type of Total Noninteres Beaing (1) 3 263% Innerest Bearing Transaction 13813 3.9% 104,004 37 Core Savings & Money Matket(2) 1,160,713 40.1% 1323688 49.2% 364% Core CDs @) 267.130 246,869 79% Wholesale Money Market 74% 214.982 62% Wholesde CDs 9.0% 198,
Slide 22: Superior Relationships/Net Interest Margin
Superior Relationships/Net Interest Margin \ \ Note Regional pessi i a West Vigna, a Source: SNL Financial
Slide 23: Moderate Interest Rate Risk Position
Moderate Interest Rate Risk Position Source: FIN Quatedy IRR Report
Slide 24: Conservative Securities Portfolio
| Conservative Securities Portfolio Gonesunent Agesey Seectan Mengissacae fins sesepond on Sz mn of net unrealized losses at December 31, 2013, . 2 Siting ryape cas eal ae ed oe a eet Bred Ds = Average life of portfolio is 4.3 years { Exchdes Federal Reserve and Federal Home Loan Bank stock 1 Nouse
Slide 25: Capital Strength
Capital Strength (Dollar Val Thoscand) Total Assets S 2976188 S$ 3409481 S 3324865 S 3410568 S 3,504,928 S$ 3,771,503 Total Capital S 324,399 S$ 349,976 S 361852 S 369390 S$ 382,100 $393,863 Tier LLeverage Ratio 10.36% 10.44% 10.39% 10.89% 10.93% Tier Risk Based Capital Ratio 10.76% 10.80% 11.08% mi
Slide 26: Nationally Recognized Financial Performance
| Nationally Recognized Financial Performance SANDLER O'NEILL + PARTNERS AMERICAN BANKER, RAYMOND JAMES WASHINGTON BUSINESS JOURNAL = “Sm-All Star i i & 2013 = Designated as a “Grower” Bank 2012 of 2011 & 2012 = Ranked 24' 2012 & 1% six months of 2013 = Ron the Year 2012
Slide 27: Highly Regarded by Bank Rating Firms
| Highly Regarded by Bank Rating Firms FIRM RATING 279/300 Analyze the Future Green - *** VERIBANC = BAUERFINANCIAL, INC
Slide 28: Market Information — Washington, DC MSA
Market Information —Washington, DC MSA = Population 6.3 Million a Sth largest market in the U.S. = Employment 3.1 Million a 24,100 sete created i in last year a a Hi over last decade - f = Gross Regional Product (GRP) $391 Billion a : a a a U.S. market
Slide 29: Washington Metropolitan Area Primary Sub-Markets
Washington Metropolitan Area Primary Sub-Markets Population (Actual) Virginia lrince William, Vieginia uquier, Virgin 65, 19,455 stafford, Virginia 30,845 Sootsyivania, Virgi 20.286
Slide 30: Unemployment Rate- Largest US Markets
Unemployment Rate- Largest US Markets November, 2013 of sos? Source: BLS, NOT Seasonally Adjusted
Slide 31: Average Sales Price Percent Change Washington MSA
Average Sales Price Percent Change Washington MSA All Housing Types Ronuali’Gh Month % 2008 2009 2010 2011 2012, 2013 | (ail Mas ada oo | #| | | 4 2 ol wp ]de13434 2 3nfe 5 4] pea | -30 2a | | | | ss ss $3 8358238 PG 2sFEFG 3 3 x0 Source: MRIS, GMU Center for Regional Analysis
Slide 32: Greater Washington Economy
Greater Washington Economy OtherFederal nema TS 5 Rospiatiy 36% Associations 2290 Federal Procurement 163% Non-Local Business 10.6% Local Business 399%
Slide 33: Key Success Factors
Key Success Factors = Building and maintaining core relationships Cross sales Focus on key customers = Maintenance of strong credit culture o Conservative underwriting criteria and loan policies e Disciplined Committee Approval and Review Process © Periodic Loan and Portfolio Stress Testing © Proact
Slide 34: Key Success Factors (continued)
Key Success Factors (continued) = Disciplined ALCO process = Maintained focus on areas of strength © Concentration on core geographic markets and products = Built the proper ae uate to support the increased volume of business and regulat: = Significant eres and Board level reporting = Human Resource
Slide 35: Looking Ahead
Looking Ahead = Profitability Pricing discipline = Expand market presence in Northern Virginia » Leverage strong seasoned staff = Emphasis on Organic Growth » Only 1.87% deposit market share ee ae 46 = Improve growth of noninterest income components of revenue » SBA guaranteed loan: gages, services,
Slide 36: EGBN Stock Price Performance
| EGBN Stock Price Performance Price Change (%) e ¢ 1 ‘Stock Price Performance 1y 3y sear EGBN 21% 37017% 525.0% NASDAQ Bank Stock Index 26.2% 36.2% 52.3% $ &P 500 Index 189% 38.6% 15.8%
Slide 37: EGBN Relative Valuation
EGBN Relative Valuation Trailing PIE Ratio 179 |] | || i NASDAQ —Russell3000$8&.PS00 EGBN — SNLNat'l Avg ravsagont suit
Slide 38: Appendices
Appendices
Slide 39: Loan Portfolio Trends
Loan Portfolio Trends (din tata Sharan) Loan Type Baunce _%ofTou! Balance Commercial and Indussiat $ $45,070 21.9% 241 Owner Ocewpied 297,887 334.078 Owner Ocewpied- Cons. 28,808 35,612 Income Producing 914,638 36.6% 1,039,775 24% ‘Construction 303,418 365,010 13.1% 13,268 Land 140,304 142,643 5.1%
Slide 40: Loan Portfolio Composition
| Loan Portfolio Composition Total Gross Loans: $2.9 Billion ‘Note: At December 31,2013 &
Slide 41: Diversified Commercial Real Estate Portfolio
Diversified Commercial Real Estate Portfolio Total : $413.3 Million Total : $1.1 Billion ‘Note: At December 31,2013 %
Slide 42: Loan Portfolio by Risk Rating
Loan Portfolio by Risk Rating (Deller Values n Thowconst Saath ipa! by deg , third:panty credit review firm
Slide 43: Geographic Detail of NPA's
Geographic Detail of NPA’s (ale Vales in Thssent) s S$ <8 WishigonDC 6084.81 18 Viegna Aantia 3 r ‘ Z ‘ é : . 3 3 3 ey : : - : i Fi a : : : 2m : é . ss : oe 2s : m6 we 264 Other USA, : 38 : is 687908 Toul S97 $552 '§ $255 $605 $1361 $a 63 § sms 995 *NOTENPL bamesincbtefoa oe 90 day passa sl acing. i
Slide 44: 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 ip! ] a 4 . Ftcsantes relationship growth = Acquisition #2 Potential Acquisition of Alliance Bankshares announce
Slide 45: Experienced Senior Management Team
Experienced Senior Management Team Years Years in with Name Title/Function Banking EGBN Ronald D. Paul Chairman, President & CEO 26 16 Robert P. Pincus Vice Chairman a 5 Michael T. Flynn EVP & COO - Eagle Bancorp 43 10 Susan G. Riel Sr. EVP & COO - EagleBank 38 16 Thomas D. Murphy President - Commun
Slide 46: 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 Chainnan and Chief Executive Officer since the organization of the Company. He also has served as Chairman of the Board o
Slide 47: Experienced Management Team
| Experienced Management Team senior Executive Vice President - Chief Operati er of the Bank, and formerly Chief Administrative Officer. Ms. Riel halbeatwin te baikfer a seae he Segoe Meret ieee vie ead Chief Operating Officer of Columbia First Bay Ee fe Seeiit ns insta ee aby Sais fren ee ‘Sheis on
Slide 48: Experienced Management Team
| Experienced Management Team ive Vice President, recently joined EagleBank as the Chief Real Estate Lender. Prior to joining EagleBank, Mr. Mean sieldline ue veal eae lending franchise for HSBC forthe Washington, DC market. Earlier he was the head of Comin celeste tg ak Ary Clase Han From 199901200
Slide 49: Experienced Management Team
Experienced Management Team Mr. Langmead, Executive Vice President and Chief Financial Officer of the Company since January 2007, and Executive Vice President snd Cet Rowman of the Bale dee Ternary 2005, revoudy served ms Cet Financial Officer of Sets sy Sena Be Book sad Sandy Spring Bancorp. Mr. La
Slide 50: Historical Balance Sheet
Historical Balance Sheet
Slide 51: Historical Quarterly Balance Sheet
Historical Quarterly Balance Sheet
Slide 52: Historical Income Statement
| Historical Income Statement Detter Vetus ne Thowande ep per shave daa) avewr Growth 2009 201 0: 3m3_Rawe ve S 84538 S966 StigIDe Suns 8 157, 109% Tadlucotneet Hae sn sa nin 33%) ‘Nat ntecet Hose xs 380 S a ‘Lean Lows Provision 7668 oss 10g8s 36,380 9.602 ce Dds Retincome Availabe to Com crags pes
Slide 53: Historical Quarterly Income Statement
Historical Quarterly Income Statement (ica ee es epee i aga air _ta2013__syp20__peeray sg” _“3gN0 —— 3.08 3331 3f2t any eee eo ae i Lsetoevtie ait a8 cepa mise ne Sterne ae 0 suse 3 @ oot sittin a ~ 3m ‘Casco ec 2 ig ys TeaiSwiawese nc ine a ro Bee aay os ey Fc eo = ie iat Bas oe HL i a ML som $08 5
Slide 54: GAAP Reconciliation
| GAAP Reconciliation GAAP Reconciliation Unaudited) (Gollars in thousands escept per share data) December 31, zo Common shareholders’ equity 37,263 Less:Intangible assets a Tangible common equity $ 333,753 Book value per common share s BOS 11.62 i 0.14) (0.15) Ss 39 a7 Total assets s 3,771,503, 3.4
Slide 55: GAAP Reconciliation Footnotes
| GAAP Reconciliation Footnotes a) stand calculation of risk based ratios.
Eagle Bancorp — Sterne Agee Financial Institutions Investor Conference 2014 on 6ix