Eagle Bancorp, Inc. · NASDAQ:EGBN
Eagle Bancorp — Keefe, Bruyette & Woods Community Bank Investor Conference 2012
49 slides from Eagle Bancorp's conference presentation, Aug 1, 2012
Slide 1: Keefe, Bruyette & Woods Community Bank Investor Conference
” @EAGLE BANCORP INC. Keefe, Bruyette & Woods Community Bank Investor Conference August 1, 2012 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 an
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 16 current branches and 2 under development = Commercially oriented business model with deep relationships of loans, core deposits an
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 million in initial and secondary subscription offerings - 1997* and 2003+ = Reached $500 million in assets in 2004 = Private placement of $12.1 millio
Slide 5: EagleBank Locations
EagleBank Locations ol al “ County Montgomery County Reston 5 ral Ss Prince George's Typos Comme Washington, DC County Fairfax County a <I el - :
Slide 6: Market Information — Washington, DC MSA
Market Information —Washington, DC MSA = Population 6.2 Million a 5th largest market in the U.S. = Employment 2.9 Million a 47,000 new jobs created in last year a Average annual job creation is 30,400 over last decade a Highest in net new job growth in the U.S. over last decade a Unemployment rate o
Slide 7: Deposit Market Share
| Deposit Market Share ‘WASHINGTON, DC METROPOLITAN AREA (Coli Vales 9 Tswan) Laat Meadgusters Branches Jone 302010 me 30200 Amat 200 Rak Rank Campa Hane Oly Ste IGE Bae Bale Grew Market hae , CaptatOne Mum VAS erg so pT — HO aH a Wek Pagoe Samacsc CAD ween 0620 ASK 3 ‘Bot Amin Guia = NC mo pepo ple
Slide 8: Summary Statistics — June 30, 2012
| Summary Statistics — sune 30, 2012 Total Assets: $3.0 billion Total Loans: $2.3 billion Total Deposits: $2.5 billion Tangible Common Equity: $229.7 million (1) ‘Tangible Book Value per Common Share: $11.15 a) Shares Outstanding: 20,591,233. SBLF Preferred: (1% Dividend Rate) $56.6 million Headquar
Slide 9: Attributes of EagleBank
Attributes of EagleBank > > > > v v Driven by Profitability - 14 Consecutive Quarters of Increasing Earnings EPS Growth — 32% per annum over past 3 years Superior Net Interest Margin - 4.39% Balanced Organic Growth Geographic Market Positioning Experienced and Dedicated Board and Management Team - 1
Slide 10: Consistent Balance Sheet Growth
i i Consistent Balance Sheet Growth $3,000 Total Assets 327504 $2500 322504 $2000 31,3504 $1,500 si2504 ge CE tes CAGE 38% tes CAGE 38% 07Q2 0793 O74 GOI 98Q2 08GB _G9Q4 OPQI OQ? O9G3 OQ4 10QI 1092 1098 104 11QL 1192 11Q3 1194 1291 1292 c) ® 31,0004 sis04 ss00 s2s0 cm (0) Regina pees bela publly tae
Slide 11: 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 + $1,000,000,000 $500,000,000 $0 PLE PEEP IRE LE LLL LL (Total Loans WTexal Deposits CH) G20 Deposits exclude the “settlement deposit” 10
Slide 12: Growth in Pre-Tax, Pre-Provision Income
Millions of Dols Growth in Pre-Tax, Pre-Provision Income siege see Quarterly Pre-Tax Pre-Provision Net Revenue sie s1sp004 140004 si3po4 srzpm4 sup siopo seo seom4 som som ssom4 sion ssom4 20004 904 wo a mV VAUUUMUAU 0792 0793 G7Q BAI BZ —08QS OR4 O8Q1 O992 0993 OFF 1091 1092 1093 104 11Q1 1IG2 1193
Slide 13: Consistent Net Income Growth
| Consistent Net Income Growth DINet Income Available to Common IIT ARP Dividend CISBLF Dividend “Thousands of Dols 8 ea tnnea) cAcalaaf till HII 072 0703 "0794 "0891 G8Q2 "6893 G8OS "cAQI OFg2"08Q3 O8QS IOQI 1092 109B" 10g 11Q1"11Q2 119311941291” 1292 co) (0) Regina peen bela pubbely tae commer bar
Slide 14: Financial Indicators — Regional Peer Analysis
Financial Indicators — Regional Peer Analysis Regional EGBN _EGBN__ Peers (1) ‘Key Ratios (at or for the quarter ended) 6802011 6302012 3/31/2012 = Net Interest Margin 4.32% 4.39% 3.61% = Efficiency Ratio 55.13% 52.28% 68.75% = NPAs + 90 Days Past Due/Total Assets 147% 1.26% 3.11% = NPLs +90 Days Pa
Slide 15: Financial Indicators — Local Peer Analysis
Financial Indicators — Local Peer Analysis EGBN___ Peers (1 Loan Growth (June 30, 2011 - June 30, 2012) © Commercial & Industrial 7.0% (0.6%) = Commercial Real Estate 28.9% 11.0% = Construction & Development 11.0% (3.6%) = Total Loans 19.0% 6.2% Deposit Growth (June 30, 2011 - June 30, 2012) = Deman
Slide 16: Nationally Recognized Financial Performance
| Nationally Recognized Financial Performance SANDLER O'NEILL+ PARTNERS "2012 “Top Investment Idea” Recommendation = 2011 “Sm-All Stars” Designation A = Honor Roll of Community Banks 2010 _— & 2011 * Ranked 39" among Best Performing SNL Community Banks in the U.S. 2011 = Top 150 banks in the Country
Slide 17: Highly Regarded by Bank Rating Firms
| Highly Regarded by Bank Rating Firms FIRM RATING =IDC 256/300 Analyze the Future VERIBANC Green - ** = BAUERFINANCIAL, INC Joo
Slide 18: Geographic Detail of Loan Portfolio
| Geographic Detail of Loan Portfolio Pance George's 36181 26,085 80-—«125.974 «1049365 8DS2.268 «ORS «198.340 86% Otter MD 198% 22879 984 105,141 30,353 37137714 5,136 200 223,412 9.6% ak Alesanetia 9453 10915 zat 52 1621345 DP BHT 15% a 135 si P 13756 21,064 2096 2.189 61 52.708 2.3% Lowioun 8365
Slide 19: Credit Quality Trends
Credit Quality Trends Bolas Value sin Thousands) 30-89 Days Past Due Nonperforming Assets: 90 or More Days Past Due ‘Nonaccrual Rectructred Loans ‘Total NorperformingLoans (NPLs) Other Real Estate Owned (OREO) Total Norperforming Assets NPAs + 90 Days Past DuelAssets(1) Reserves Reserves/Loans Recer
Slide 20: Consistent Asset Quality
Consistent Asset Quality Total Loans s2soopm0001 s2a00000 sisooomoan } stacoonoon } eel one Is) mae) cst * Impact of F&T Acquisition Tas eorage Growth NPAs Chargers (000's) ams Saas L78% oe re ae Lam oa mo $m La 0.35% wi $3 La one zany __$_ reset 125% fea Tet Charge Off Experience: 9 Year Average 20
Slide 21: Deposit Composition
Deposit Composition (Delt Vain Thessande) Deposit Type hoe hoe hoe Balance __ Total Balance Total Balance Total Noninterest Bearing $ 436880 225% $ 688506 288% $773,119 30.8% Interest Bearing Transaction 67A58 3.5% 80,105 33% 95827 38% Core Savings & Money Market* 811,332, 41.8% ‘1,015,799 425% 1,07
Slide 22: Superior Net Interest Margin
Superior Relations! hips/Net Interest Margin 5.25% —EGEN Pees ine] 475% 425% Va [Net Interest Margin (96) 3.25% 375% nn Oa s ss 8 s[# 8 8 8 8 8 ¢ 3 3 2 3 3 3 3 878 RRERKKSRERSERRERRRERRRRRRERR gSesegegreggegeRegeegRgegseeRresesARe Tob Regional your bee poy ted conn us wiht tetween ST ard Sbload edga
Slide 23: Conservative Securities Portfolio
| Conservative Securities Portfolio US Teasury Securities {US Govenament Agency Securities 22396, 18 - 23034 no ‘Mongage Bacted Secures CBB respi 3500 1esp0% 29% Munseipal Bonds ‘pe 4655 78781 nee Omer Bait este a 2 st om “Toul secures =z a Ess Tae US Teesuny Secu: 5 : s s se om Us Govenatemt Agency
Slide 24: Capital Strength
Capital Strength Total Assets S$ 2186,268 $ 2,353,716 $ 3,219,456 $ 2831255 $ 2815.49 $ 2,962897 Total Capital S$ 210,119 $ 217027 $258,403 $ 266,711 $ 276,008 $ 290270 Tier 1 Leverage Ratio 9.44% 9.07% 9.61% 8.21% 9.33% 9.65% Tier 1 Risk Based Capital Ratio 10.03% 9.64% 10.49% 0.33% 10.08% 10.09% T
Slide 25: Key Success Factors
Key Success Factors = Building and maintaining core relationships = Maintenance of strong credit culture ° ° ° ° ° ° Conservative underwriting criteria and loan policies Disciplined Committee Approval and Review Process Limited Individual Authority Periodic Loan and Portfolio Stress Testing Asset Ba
Slide 26: Key Success Factors (continued)
Key Success Factors (continued) = Maintained focus on areas of strength o Concentration on core geographic markets and products = Built the proper infrastructure to support increased volume of business and regulation = Significant Management and Board level reporting = Human Resources o Addition of
Slide 27: Looking Ahead
Looking Ahead = Capitalize on investment in Northern Virginia market = Emphasis on Organic Growth o Hire seasoned lenders and business development officers o Expand customer base o Focus on relationships to increase deposit penetration and multiple product usage = Profitability o Continued focus on
Slide 28: EGBN Stock Price Performance
| EGBN Stock Price Performance Price Change (%) 2000 teens 1000 feoee 000 20.00 feeee 2000 Stock Price Performance 1 Year 3 Year 5 Year EGEN 25.4% 7.3% 18.0% NASDAQ Bank Stock Index 1.3% 13.1% 1.8% S&P 500 Index 2.8% ry 11.2% Sous: SNL Fine Blonbee, Chat ad cluster ae ofa, Sly 2, 2012
Slide 29: Appendices
Appendices 28
Slide 30: Loan Portfolio Trends
| Loan Portfolio Trends (ir hse Soon) ae en eo Sa Loan Type Baluve _96 of Total Balare _9% of Total Balance _% cfTotal % % Commercial edindictil $ 482680 «248% © «478886. «233% «= $516,403 223% 7.0% 157% Owner Occupied 282265 124% 250174 122% 740 133% 269% 453% Owner Occupied Const. 24315, 12% 34497
Slide 31: Loan Portfolio Composition
| Loan Portfolio Composition Total Gross Loans: $2.3 Billion ‘Note: AtTuxe 30, 2012 36
Slide 32: Diversified Commercial Real Estate Portfolio
| Diversified Commercial Real Estate Portfolio Total: $269.1 Million Total: $932.5 Million ‘Note: At June 30,2012 31
Slide 33: Loan Portfolio by Risk Rating
| Loan Portfolio by Risk Rating 03% ‘DOD-Eeelent 36% 1% 2D00-Good ar, 2% DID- Acceptable BI 330% “DOD Accopable with REk 151% raz @D- Watch 16% 21% ‘OD-Speeial Mention 13% 16n ®D-Sthstandad 24% 13% s000-Dowetf 90 oon 0 ons 259- Lose aon - 0% Tigwa6—To.0% $2319, % = Loan portfolio and risk ratings re
Slide 34: Geographic Detail of NPA's
| Geographic Detail of NPA’s OpersA a - - 16657641 ss 7 gon son Tot $3961 $164 § $1990 $ 2465 $7 $433 $ 34s $734 “NO IENPLbahuoss cde bare omr0 days pat de ands can any ‘Note: tune 30, 2012 8
Slide 35: Greater Washington Economy
Greater Washington Economy jos HealtVE duration, Medka on University, Center for Regicnal Analysie 34
Slide 36: Unemployment Rate - Largest US Markets
yo" — ee ee N ci ai © a Be a — on = aeemees 9 Unemployment Rate- Largest US Markets 35 ted BLS, NOT Seasonally Adjust Source:
Slide 37: 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 9 a 2,3 34 12 33 3 Source: MRIS, GMU Center for Regional Analysis 36
Slide 38: Acquisition Strategy & History
Acquisition Strategy & History Significant Due Diligence precedes any Offer to Acquire Aceretive 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 39: Experienced Senior Management Team
Experienced Senior Management Team Years Years in with Name Title/Function Banking _EGBN Ronald D. Paul Chairman, President & CEO 24 4 Robert P. Pincus Vice Chairman 39 4 Michael T. Flynn Susan G. Riel Thomas D. Murphy Janice L. Williams Antonio F. Marquez Virginia N. Heine James H. Langmead Laurenc
Slide 40: 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 41: Experienced Management Team
| Experienced Management Team Susan G. Riel, Senior EVP, Chief Operating Officer of Eagle Bank Ms. Riel, Senior Executive Vice President - Chief Operating Officer of the Bank, and formerly Chief Administrative Officer. Ms. Riel hhas been with the bank for 13 years. She previously served as Executive
Slide 42: Experienced Management Team
| Experienced Management Team AntonioF. Marques, 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 W
Slide 43: Experienced Management Team
| Experienced Management Team James H. Langmead, EVP, Chief Financial Officer, Eagle Bancorp, Inc. and EagleBank ‘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 2
Slide 44: Historical Balance Sheet
Historical Balance Sheet
Slide 45: Historical Quarterly Balance Sheet
Historical Quarterly Balance Sheet S399 [a 8y 44
Slide 46: Historical Income Statement
| Historical Income Statement (Cotter Values in Thousands except per share date) Total Interest Income Toal Interest Exp ence ‘Net Interest Income Lown Loss Provision Service Charges onDepost's GsivLoce onSde of Loos GsitvLose on Sle of Securitice BOLIReverme Other N onirterest Income Total Noninter
Slide 47: Historical Quarterly Income Statement
Historical Quarterly Income Statement ott Fates Peusants exeytpe sha das) “Teta inte oo Teta iteest Epee Net Intec Lowa Provision Seve Changs on Deposits (GaiLon on Ssh of Lows GaitLoes on Sab of Sects BOLL Rare (Other Nerina ‘Total Nesntonst Incoe Susie: nd Engl Bef Prenises nd Byipmest Epes Mareti
Slide 48: GAAP Reconciliation
GAAP Reconciliation GAAP Reconciliation (@olars in thousands except per share data) ‘Six Monthe Ended ‘TwelveMonths Ended Six Months Exded June 30,2012 December 31,2011 ‘June 30,2011 Graudited) (@raudited) ‘naudited) ‘Common sharcholders equity 7 mm aon 193,792 Lese:Intangible assets Gore 14 070) ‘T
Slide 49: 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. We calculate the tangible common equity ratio by excluding the balance of inta
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