Eagle Bancorp, Inc. · NASDAQ:EGBN
Eagle Bancorp — Sandler O'Neill + Partners East Coast Financial Services Conference 2013
55 slides from Eagle Bancorp's conference presentation, Nov 14, 2013
Slide 1: Eagle Bancorp Inc. - East Coast Financial Services Conference
” @EAGLE BANCORP INC. SANDLER O'NEILL + PARTNERS East Coast Financial Services Conference November 14, 2013 Ticker: EGBN www.eaglebankcorp.com
Slide 2: Forward Looking Statements
Forward Looking Statements This presentation, contain: rot ithin the meaning of the Securities and Exchange Act halen as eh cae eon of goals, intentions, to future trend orwar ook uch as “may,” el 5,” “expect potential,” i cme “estimates,” s “bel eve “continue, Should aad similar ous or pl anticipat
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 Iuly, 1998 5 million i y i ings - 1997* and 2003* Reached $500 million in assets in 2004 : ist 31, 2008 $1 P July, 2011) ber, 2009* pi : Reached $2 billion in assets in 2010 i July, 2011 t the Market
Slide 5: Summary Statistics - September 30, 2013
| Summary Statistics — september 30, 2013 Total Assets: $3.5 billion ‘Total Loans: $2.8 billion Total Deposits: $3.0 billion ‘Tangible Common Equity: $321.9 million (1) Tangible Book Value per Common Share: $12.48 (1) Shares Outstanding: 25,799,220 ivi i $56.6 million Headquarters: Bethesda, Marylan
Slide 6: Attributes of EagleBank
Attributes of EagleBank > iven by ity - i ing Earning > EPS Growth 1 » — Superior Net Interest Margin - 4.31% » — Balanced Organic Growth » — Geographic Market Positioning ya i i Team - » — Exceptional Asset Quality Record - NPA’s 1.11% of Total Assets » — Conservative Securities Portfolio - Average
Slide 7: EagleBank Locations
| EagleBank Locations
Slide 8: Deposit Market Share
| Deposit Market Share |WASHINGTON,DCMBETROPOLITAN AREA tesftoe 0.213) (oa Tice tbe a enya Xe Capt One DBaakot Amica tetoe PxCPink hak sank ety vg ak Dak tba inaton Fes ake st np pasierey nn Ft ad Bk Aces Nin Cop avira Conia County sept tae Sate Obey » eanlss VA, Aingon VA Mela vs Waskinon De Bicond
Slide 9: Financial Indicators - Regional Peer Analysis
| Financial Indicators — Regional Peer Analysis ce 4) Not Pemyhens aD Souree: SNL 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 EGBN__ Peers (1) ptember 30, 2013 = Commercial & Industrial 27.8% — (0.5%) = Commercial Real Estate 10.0% 4.4% = Construction & Development 20.0% (4.1%) = Total Loans 16.6% 2.3% ptember 30, 2013) = Demand Deposits 12.8% 16.9% = Money Market Accounts 30.3% 6
Slide 11: Consistent Balance Sheet Growth
| Consistent Balance Sheet Growth $3,750 Total Assets 10Q2 1093 10QI 1IQI 11? NB NU! NE! M@ Mgs 12@4 13Q1 13Q2 Q Millions of Dollars 08QS OQ D9QI_09Q2 09Q3 O9QI 10QI cH (Q) Regional peers includes publil-traded commercial banks wih assets between $1 and bili and headquasteredin Washington,DC, Virgin
Slide 12: Growth in Pre-Tax, Pre-Provision Income
Growth in Pre-Tax, Pre-Provision Income $20,286 Millions of Dollars 1 NAL 112 11Qs QI 1291 12@ 1293 1201 13QI_ 132 1393 ‘OD Region per inh ‘who rporte pre Source SNL. Financial
Slide 13: Contribution from Non-Interest Income
Contribution from Non-Interest Income vl
Slide 14: Consistent Net Income Growth
Consistent Net Income Growth st1767 08Q3 OH OQ 0902 0993 O9QI MQ! 10Q2 10Q3 INQ QI 11Q2 11Q3 11H 12QI 12Q2 1203 12OK I3QI_ 13g? 1303 Q (4) Regional pees incldes pubil.raded commercial barks with aes between $1 ans billion ad headqusteredin Washington,DC, Virginia, West Vina, Marland, Pennsylvania an
Slide 15: Geographic Detail of Loan Portfolio
Geographic Detail of Loan Portfolio (ott Vatuesin Thousand) Omer Onmer_——_Tncome Oceupied Occupied Producing Residential Otier Count car CRE Gost CRE__Comstruction Land Mortgage Hime Equity Consumer TOTAL _% of Tota Maryland Montgomery 6,028 $ 67,916 S$ 70M § 153,669 $ 55,567 $ 26615 $ 28789 $ 64,48
Slide 16: Geographic Detail of CRE - Construction
Geographic Detail of CRE — Construction (Dollar Vatuesin Thousands) Reta $+ Single 14 Tenan Residential County unlly__Mixed se __Offlce _ Multifamily _StripMall__Condo__Other_TOTAL _% of Total Maryland Montgomery $ 18899 S - $3638 $ 20S - $ - $ - $ 55567 152% Prince George's 98 : 2,261 - 4572 : 995
Slide 17: Geographic Detail of CRE - Income Producing
Geographic Detail of CRE- (Doliar Vatues in Thousands) Income Producing Retail 4+ Office & Office ‘Tenant! Single & 1-4 County Condo Multifamily StripMall__Mixed se Family Industrial Other_—TOTAL _% of Total Maryland Monilgomery $ 9,737 $ 16408 $ 26,952 $ 8163 $ 8205 $58,257 $ 153,669 14.8% Prince G
Slide 18: Credit Quality Trends
| Credit Quality Trends (Doltars Values in Thousands) 30-89 Days Past Due $ 28,131 $ 23,366 $ 32,079 S$ 41,807 $ 19,927 $ 27,990 $ 18,253 $ 8,794 Nonperforming Assets: 90 or More Days Past Due S - S$ s S$ - $ - S$ - $ = $ - Nonacerual 32,712 36,714 32,876 32,423 «30,684 «28,166 23,507 27,546 Restruc
Slide 19: Consistent Asset Quality
| Consistent Asset Quality Total Loans Tan ye charge-offs (000's) || wos $ saggns 1.76% 0.12% ‘sink 2009S asserk 15 on 1| aie Ge! fe il | | | {\" mn «$a tame ot wr $3539 1.06% oar | | | | | |= asym $303,745 .a1% 025% om Ly eee raat perience 201 oP eee y 9 9 fee eee Pepe? fé f fe “an ea ee loan Type
Slide 20: Balanced Loan and Deposit Growth
| Balanced Loan and Deposit Growth $2,500,000,000 + $2,000,000,000 + ‘eTotal Loans > Pe REE St ee 29 2 9
Slide 21: Deposit Composition
Deposit Composition (Dallas ates Thousands) Deposit Type %of %of %of Balance, Total Balanve, Total Balance Total % Noninterest Bearing (1) 3 796,654 31.7% $881,390 30.4% $898,831 30.1% 12.8% Interest Bearing Transaction. 112,901 45% 113,813 3.9% 104,004 3.5% (7.9%) Core Savings & Money Market (2) 97
Slide 22: Superior Relationships/Net Interest Margin
Superior Relationships/Net Interest Margin Net Interest Margin (%) {| O-EGBN te Peers Fosed 51705] 3.75% 42009 2008 42008
Slide 23: Moderate Interest Rate Risk Position
| Moderate Interest Rate Risk Position
Slide 24: Conservative Securities Portfolio
Conservative Securities Portfolio (Delt Uo Season ‘Goverment Agency Secusties 909 Moveage ached Sevres GSEs 1438 ‘Munizipal Bonds 2461 ‘Other Equity Investments “Total Securities = Sass US Govemment Ageney Secutis 7,606 1am Mortgage Backed Secustes -GSEs ro619 270 ‘Moieipal Bonds 72030 S3u Other Equ
Slide 25: Capital Strength
Capital Strength (Dollars Values in Thousands) Total Assets $ 2,962,897 S$ 2,976,188 S$ 3,409,441 S 3,324,865 $ 3,410,568 S$ 3,504,928 ‘Total Capital $s 290,270 S$ 324,399 $ 349,976 S 361,852 $ 369,390 S$ 382,100 ‘Tier 1 Leverage Ratio 9.63% 10.36% 10.44% 10.39% 10.81% 10.89% ‘Tier 1 Risk Based Capi
Slide 26: Nationally Recognized Financial Performance
Nationally Recognized Financial Performance SANDLER O'NEILL+ PARTNERS "op fi Idea” Re 2012 = “Sm-All Stars” Designation 2011 & 2013 = Designated as a “Grower” Bank 2012 . ri es of Community Banks 2010, . pi 24% among Best Performing mmunity Banks in the U.S. 2012 & I" six nore of 2013 AMERICAN BANKE
Slide 27: Highly Regarded by Bank Rating Firms
| Highly Regarded by Bank Rating Firms FIRM Analyze the Future = BAUERFINANCIAL, INC RATING 269/300
Slide 28: Market Information - Washington, DC MSA
Market Information —Washington, DC MSA = Population a 7 Employment a Average, annual Jobe creation i last d 5th largest market in the U.S. din last year a . over last decade a Unemployment rate of 5.4% vs. US average of 7.3% a 24.09 a Gnas Regional Product cOHY) 1 P over the last 36. 6% “of GRP. 6.2
Slide 29: Washington Metropolitan Area Primary Sub-Markets
Washington Metropolitan Area Primary Sub-Markets Population Total Number of ‘Actual)_Employment_ Businesses 214,336 Loudoun, Virginia 321,933 100,776 —10,116| Prince William, Virginia 400.654 —100,438.——*10,113| Fauquier, Virginia 65,705 19,455 2,630] Stafford, Virginia 129,606 30,84 2,923] Spotsylv
Slide 30: Unemployment Rate - Largest US Markets
Unemployment Rate- Largest US Markets August, 2013 % 12 Source: BLS, NOT Seasonally Adjusted
Slide 31: 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 2013
Slide 32: Greater Washington Economy
Greater Washington Economy Other Federal 16.5% International 4.0% Hospitality 23% Associations 21% Federal Procurement 19.5% Non-Local Bus ness 93% Note: Other includes Health’Education, Media Source: The Wall Street Journal, George Mason University, Center for Regional Analysis
Slide 33: Key Success Factors
Key Success Factors = Building and maintaining core relationships » Cross sales o Focus on key customers = Maintenance of strong credit culture o Conservative underwriting criteria and loan policies o Disciplined Committee Approval and Review Process o Periodic Loan and Portfolio Stress Testing o Pr
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 a infrastructure to support the increased volume of business and 1 regulation = Significant Management and Board level reporting = Human Resource
Slide 35: Looking Ahead
Looking Ahead = Profitability Dili 1 = Expand market presence in Northern Virginia o Leverage strong seasoned staff = Emphasis on Organic Growth o Only 1.87% deposit market share ee es aa PP P Jationch} 1 daxel I 7 ae = Improve growth of noninterest income components of revenue BA ‘4 p \ mortgages,
Slide 36: EGBN Stock Price Performance
| EGBN Stock Price Performance Price Change (%) 2 8 £ $ & FG 2 8 Stock Price Performance 1 Year 3 Yea 5 Year EGBN 39.5% 135.3% 273.6% NASDAQ Bank Stock Index 29.8% 46.9% 7.6% S&P 500 Ind 24.4% 48.4% 81.3%
Slide 37: EGBN Relative Valuation
EGBN Relative Valuation PIE Ratio 25 EGBN —SNLNat'l Avg KBWRegional SNL Bar Mid-Atl NASDAQ — Russell 3000 ink Avg Avg S&P 500
Slide 38: Appendices
Appendices
Slide 39: Loan Portfolio Trends
Loan Portfolio Trends (Pate Vln Stoasnds) Loan ‘Type Baknee _% of Total Babee _% of Total Babnee _% of Total % Commerciiland Industral $934,133 3% $545,070 219% = S 682413 24.4% 27.8% 33.5% Owner Ocoupied 306,148 128% 297,857 11.9% 334,078 11.9% 91% 16.2% Owner Qecupied-Const 14739 0.6% 28,808 1.2%
Slide 40: Loan Portfolio Composition
| Loan Portfolio Composition Total Gross Loans: $2.8 Billion ‘Note: At September 30, 2013 39
Slide 41: Diversified Commercial Real Estate Portfolio
| Diversified Commercial Real Estate Portfolio Total : $365.0 Million Total : $1.0 Billion ‘Note: At September 30, 2013 40
Slide 42: Loan Portfolio by Risk Rating
Loan Portfolio by Risk Rating ~ ee = _—— 20. third-party = credit review firm
Slide 43: Geographic Detail of NPA's
Geographic Detail of NPA’s Moigmry $§ 2S - $ - § = 8 Ss IBS som os $390 $ 4gi0 Prince George's : 254 : a4 E 350 16095 Other MD ea) 1195 E wr 7 487 348 WashinglomDC 60684081 : a : h 3 16,526 1394 Virginia Akandia 5 . : : : 3 = 7 5 : 3 gon . E : : : . 38 w 38 F 240 : - E 7 I on * en Loulou : : 99 0 1,
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 Syst fully completed on: kc after cl aT. d : tiaved’s hodical and thouchtful manner, witl di i a Contributi key
Slide 45: Experienced Senior Management Team
| Experienced Senior Management Team Years Years in with Name TitleFunetion Banking EGBN Ronald D. Paul Chairman, President & CEO 25 15 Robert P. Pincus Vice Chairman 40 4 Michael T. Flynn EVP & COO - Fagk Bancorp co 9 Susan G. Riel Sr. EVP & COO - EagkBank 37 15 ‘Thomas D. Murphy President - Commun
Slide 46: Experienced Management Team
Experienced Management Team Ronald D. Paul, Chairman, President and CEO ition by F&M, Inc. M Paul has been named Greater Washington Entrepreneur of the Year” by Ernst & Young. Robert P. Pi Inc. and EagleBank 2005. m 1991 to 199% 1, D.C. From 198610 1991 he Bancorp, I LLC. H Companies, Inc.
Slide 47: Experienced Management Team
Si Experienced Management Team Ms. Riel, EagleBank, Michael T. Fl
Slide 48: Experienced Management Team
Experienced Management Team A F Me Mr. Marquez, M Recently M: M: Janice L, Willi Ms. Will Bank,
Slide 49: Experienced Management Team
Experienced Management Team Inc. and EagleBank Sandy Spring Bancorp. Mr. Langmead, a CP! , Eagle Bancorp, Inc. DC law firm of Melrod, Red Gartl the American College of Real Estate Lawyers.
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 (Dollar Values n Thousands, except per share data) 1Yea Growth 2008 2009 2010 2011 2012, __ Rate ‘Total Interest Income STS BHS3B«S_9G658 Total Interest Expense 19,832 76526 z 9,308 10,983 16190 47.49% Net Interest Ineome Loan Loss Provision 7,669 vice Charges on Deposi
Slide 53: Historical Quarterly Income Statement
| Historical Quarterly Income Statement (alr Yes te Towsande expt pe sare dt) “Tata aeet cae Teathens Bp ae ‘Nel Iter Inn Lowa Les Provision ‘Save Chass on Dposts (GainvLaes on Se of Lams (GanvLaes on Se of Suis BOL Reve (the None came “otal Nine acome ‘Sars and EmpayeBents Premises nd Bxsipment Exp
Slide 54: GAAP Reconciliation
| GAAP Reconciliation GAAP Reconciliation (Unaudited) (dollars in thousands except pershare data) ‘Nine Months Ended ‘Twelve Months Ended December 31, ace ‘Nine Months: Ended September 30,2013 ‘Common shareholders equity $ 3055 Less: Intangible assets September 30, a $ 167,75 a a ne Tangible common
Slide 55: GAAP Reconciliation Footnotes
| GAAP Reconciliation Footnotes qd) 1 ge outstanding, per common share, which the Compan: quity culates by The Company considers calculation of risk based ratios.
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