Eagle Bancorp, Inc. · NASDAQ:EGBN
Eagle Bancorp — Sandler O'Neill + Partners East Coast Financial Services Conference 2015
51 slides from Eagle Bancorp's conference presentation, Nov 10, 2015
Slide 1: Eagle Bancorp Inc. - Sandler O'Neill East Coast Financial Services Conference
* @EAGLE BANCORP INC. Sandler O’ Neill + Partners East Coast Financial Services Conference November 10, 2015 Ticker: EGBN www.eaglebankcorp.com
Slide 2: Forward Looking Statements
Forward Looking Stat This Sean Tg Bevard looking statements within the meaning of the Securities and Exchange Act of 1934, as amended. ls, intentions, to future trends, plan: In ome case: f d-l such as “ma will, anti cipates, ” “bel * “plans,” “estimates,” “poten “continue,” Should,” and similar wor
Slide 3: Company Overview
Company Overview = Eagle Bancorp, Inc. i i i i Bethesda, Maryland = Focused on the Washington, DC metropolitan area, with 21 branches = C ially-ori J busi del with deep relationships of loans, d its and related products « #Lin deposi i oi s Washington, DC metropolitan area «TT 1 pe rf f any communit
Slide 4: Investment Highlights
Investment Highlights = Focused on Profitability and Balanced Financial Performance = Strong in = 4.23% = Clean Asset Quality: NPAs/Assets = 0.41% = Low Charge-Off History: NCOs/Average Loans = 0.16% = Driven by Long-Term, Deep Customer Relationships = Demonstrated Consistent Organic Growth = Dedica
Slide 5: Experienced Senior Management Team
‘Experienced Senior Management Team Years Years in with Name Title/Function Banking __EGBN Ronald D. Paul Chairman, President & CEO 28 7 Robert P. Pincus ‘Vice Chairman 42 7 Susan G, Riel Sr. EVP & COO - EagkBank 39 7 James H. Langmead 44 10 Laurence E. Bensignor EVP & General Counsel 5 5 Charles C.
Slide 6: Summary Statistics
Summary Statistics Total Assets: $5.9 billion Total Loans: $48 billion Total Deposits: $4.9 billion Tangible Common Equity: $604.7 million (1) Tangible Book Value per Common Share: $18.10) 33,466,992 5 $1.59 billion Insider Ownership: 10.7% Institutional Ownership: 64% Member of Russell 2000 Yes NOT
Slide 7: EagleBank Branch Locations
EagleBank Branch Locations Loudoun County years Comer George's County Fairfax County NOTE: Branch Totals as of September 30, 2015,
Slide 8: Deposit Market Share
Deposit Market Share Local ‘une 30, une 30, 2 Community 2014 2015 Annual Market Rank Banks Comp Branches Balanco Balance Growth __ share 1472420368 «25950359 hem 18 1723318620 -«77,168451 165% 16.6% 1 1,209 9 0965, 30% 128% 16922289 17966400 «6.2% 11.0% brass 142 11085,150 11753089 «= Som 7.2% 16 09
Slide 9: Performance vs. Peer Group
Performance vs. Peer Group Peer Group EGBN i 3Q2013_3Q2014G) 3Q2015 __3QU015 = Net Interest Margin 4319 45% 23% 3.70% Efficiency Ratio 51.68% 49.11% 42.04% 56.45% = NPAs +90 Days Past Due/Total Assets 111% 0.92% 0.41% 0.46% = Allowance Loan Losses/Gross Loans 142% 131% 1.05% 0.95% = Reserve/NPLs (Co
Slide 10: Consistent Balance Sheet Growth
[Consistent Balance Sheet Growth S60005 Total Assets Millions of Doles my 3)
Slide 11: Consistent Net Income Growth
Consistent Net Income Growth Ws LQ! QI Ge 11Qs NOt 12Q1 12Q2 12G3 129 BAI 1392 1393 LUG MQ MQ? Qs MQ 15QI_ 1592 1593
Slide 12: Net Interest Margin
Net Interest Margin 5.00% 3.00% 2.50% 2.00% 445% 442% 441% 201493 20144 2015Q1 2015Q2 2015Q3 MEGBN ® Peer Group
Slide 13: Yields and Cost of Funds
Yields and Cost of Funds Yield on Average Earning Assets Yield on Loans 5.00% 7 478% 478% 60% 459% 5.3% 5.40% 5.29% — 5.26% 5.29% 201493 2014Q4-—2015Q1_-2015Q2_—-2015Q3 2014QS-2QA_—-2OISQI_—2015Q2_—-2015Q3 MEGBN =Peer Group MEGBN Peer Group Cost of Funds Osis oats 039% a3 037%030% oss 0.00% 2014Q3 2
Slide 14: Earnings per Share
Earnings per Share EPS (Reported) = EPS (Operating) 201493 2014Q4 2015Q1 2015Q2 2015Q3
Slide 15: Tangible Book Value per Share
Tangible Book Value per Share $20.00 $18.00 $16.00 $14.00 $12.00 $10.00 $8.00 $6.00 $4.00 $2.00 $0.00 + 20143 CAGR= 23.05% $16.82 $17.46 $18.10 20144 2015Q1 2015Q2 2015Q3
Slide 16: Consistent Increases in Operating Leverage
Consistent Increases in Operating Leverage $70,000 $60,000 $50,000 CAGR2A2% $40,000 -* $30,000 $20,000 SS $10,000 ym ® 3 oo £% fa * 9 oY SEPP SS PPE OPP ES s ee EK K =P Revenue ($0005) l= Non-int Expense (5000s) NOTE: Please er tothe Non-GAAP reconciliation and fotnales inthe sppendices on pages 3-3
Slide 17: Consistently Improving Efficiency Ratio
Consistently Improving Efficiency Ratio 20148 201404 2015Q1 20152 201508 MEGBN "Peer Group
Slide 18: Moderate Interest Rate Risk Position
Moderate Interest Rate Risk Position Interest Rate Risk Indicators ....and Trends Sep. 2014 Deo. 2014 Mar, 2015 Jun, 2015 Sep. 2015 Tmestments, 9 © © 71 Loans 26 a a 26 Deposits 33 34 3 34 32 Borrowings 43 30 ro ai 43 NNet Interest Income - Flat balance Sheet S 163,756 $202,091 § 237,263 Net Interes
Slide 19: Deposit Composition and Growth
Deposit Composition and Growth (ete Vass i Shosscnds) Deposit Type of %of %ol Balance Total Balance Total Balance ‘Total % Noninterest Bearing $1,056,559 29.9% $1,175,799 273% $1,402,447 28.5% 32.7% Interest Bearing Transaction 161,886 4.6% 143,628 3.3% 207,716 28.3% Core Savings & Money Matket 1} 1
Slide 20: Balanced Loan and Deposit Growth
Balanced Loan and Deposit Growth cs oo oe crs os A ga ™ gph saa™ ae gor ao” ya Gee sa so sao gar por wo” ga "Total Loans ™ Total Deposits a 11 excludes the “settlement deposit. 19
Slide 21: Detail of Loan Portfolio
Detail of Loan Portfolio Mar Prince Geor 446 $4,062 -4,884—*192,545 32,611 8869-2464 2,192 264 370,337 7.8% Other MD 58,146 32,119 4,520 386,048 90,467 21,342 10,726 6,479 284 610,131 128% Virginia Lowloun 31,738 48,39. - 20,000 14.654 - 2428 3,539 341 121,004 2.5% Prince Willa 11.480 17,202 - 79,78
Slide 22: CRE Risk Management
CRE Risk Management Executive & Board Level Oversight of Approval Process Disciplined Underwriting Proactive Portfolio Management Quarterly Stress Testing of Portfolio Quarterly Independent Credit Review Dedicated Special Assets Team
Slide 23: Credit Quality Trends
Credit Quality Trends (ottarsValuesin Thousands) 30-89 Days Past Due Nonperforming Assets: 90 or More Days Past Due Nonacerual ‘Total Nonperfoming Loans (NPLs) S$ 17,143 S$ 10,465 $ 19,222 $ 12401 $ 15,771 $ 17,655 $ 20,709 $ 14,715 - S$ - $ - $ S$ - $ - S$ - §$ 24,702 36,326 22,507 __ 29,343 22.443
Slide 24: Consistent Asset Quality
Consistent Asset Quality Total Loans (Smms) ge Mt Mae Sp Uke Mis > Sp Oko Bae Sip 2 BRR RAN NH BBB Biicaas)} MSG) cep 2013, 204 2018 YD efter Vaues x Thousands) S276189 $380,756 $436,839 $450,063 $1,367,241 $464,566 Income Producing CRE (Owner Occupied CRE Construction and Land (Commercial & Industr
Slide 25: Capital Strength
Capital Strength (Dollars Values in Thousands) Total Assets S$ 4,169,181 $ 5247880 $ 5,500,340 $5,753,803 S 5,888,958 S 5,817,058 Total Stockholders Eq S 442,614 $620,759 $ 741,530 S 765,061 S 786,069 S$ 714,169 Total Common Stockholders Equity $ 386014 S$ 548,859 S$ 669,630 $693,161 S$ 714,169 S$ 7
Slide 26: Key Success Factors
Key Success Factors = Building and maintaining core relationships o Focus on key customers = Maintenance of strong credit culture = Built and preserved a strong capital position and balance sheet . ON v4 mall eT ° ty (since January 1, 2009) oe 1 ; eRe] 44 ing profitabili pital position
Slide 27: Key Success Factors (continued)
Key Success Factors (continued) = Disciplined ALCO process = Maintained focus on areas of strength ° = Built the proper ib gstructare to support the increased volume of business and regulat = Comprehensive Management and Board level reporting = Human Resources experience > Well designed o Stability
Slide 28: EagleBank Growth Strategy
EagleBank Growth Strategy = Continue Integration of Virginia Heritage Bank Acquisition = Profitability . Di = Maintain Credit Quality . Emphasis on Organic Growth Onlly 3.0% d Banke jacqui sition particularly in Northern Virginia hi Adeval pportunit = Improve Growth of Noninterest Income Components
Slide 29: EGBN Stock Price Performance
'EGBN Stock Price Performance Total Return Performance 5000 Te kage Bancorp ne 0000 —o-As00 Bonk index ~wAS0Aa Stock Market index-(US.Companie 350.00 fl eel a $80 500 300.00 250.00 2S 50.00 : " . " 10302010 10302011 10302012 10302013, 10302014 10302015 Stock Price Performance 1 Year 3.Year 3 Year EG
Slide 30: Appendices
Appendices
Slide 31: Highly Valued Peer Group
Highly Valued Peer Group [NOTE: Per Group includes all publ traded banks Nationwide with 32 billion to S7-ilon nasetsthat trades 2008 of engible book vale higher. Por quarter or ior quuterLTM -3¢ ett current daa is unavailable (1) Noperfonning assets ae defined as nenacenual loans, el estate ome and
Slide 32: Non-GAAP Reconciliation
Non-GAAP Reconciliation
Slide 33: Non-GAAP Reconciliation
Non-GAAP Reconciliation on Unaudited) Gi inhesands except per share data) Nine Months Bnded ‘Twelve Months Bnded September 30,2013 December 31,2014 lair nid Common shareholders! seat T4103 RRS 386014 Less: Intangible assets (109,498) (109,908 G32] Tangible common equi ity 3 L BR95L Book value percom
Slide 34: Non-GAAP Reconciliation Footnotes
‘Non-GAAP Reconciliation Footnotes ectively. As the magnitude of the merger expenses distorts the operational results of the Co ‘ompany, we eee in the GAAP reconciliation and in the accompanying text certain performance ratios excluding the effect of the We believe this information is important to e
Slide 35: Market Information - Washington, DC MSA
Market Information —Washington, DC MSA = Population 6.2 Million a Sth largest market in the U.S. = Employment 3.2 Million a jot di 1 h dri } private sector, over 190,000 new private sector j 4.49 US average of 5.1% (A 201 1 Gross Regional Product oe) $449 Billion a a 24.09 ‘ over the last 9 year a 1
Slide 36: Greater Washington Economy
Greater Washington Economy te ste Fete Prcenest ‘Sasi ma ° ‘Suburban Maryland ‘ow ‘Local Business 39.98% Northern Virginia 18.0% Gross Regional Product $449 Billion ‘NOTE: Other includes Health Care/Education and Media SOURCE: The Wall Street Journal, George Mason University - Center for Regional An
Slide 37: Loan Portfolio and Growth
Loan Portfolio and Growth (is Vela ie Heends) Loan Type Balnoe Balanoe__% of Total Balance _% of Total CCommercialand Industral $798,489 233% 916226 21.2% — $1,007,659 21.1% Owner Occupied 337,422 9.8% 461,581 10.7% 489,657 10.3% Owner Oceupied-Const 41,846 12% 58,082 1.3% 6 % Income Producing 1,382
Slide 38: Geographic Detail - Income Producing CRE
Geographic Detail - Income Producing CRE Prince George’ 44.510 28635 17.00 19739 11405 9616 28667 32,523, 93% Other MD ug777 s8018 304 so. 26982 sass 35017 so 191% Virginia Loudoun 5314 128 0 ° 2,685, ° BB 19210 206 Prinee William 24168 ngs ° ° mm 8990 3037 30939 p98 her VA 30,905 oon uo 2188 6.61 1
Slide 39: Geographic Detail - Construction
Geographic Detail — Construction (Wee Valaes bv Trond Single 14 Multi. Residential Redevel/ Mixed Coun Family Family Office __Hotel_Condo__Retail tee Other TOTAL _% of Viaryland Montgomery $51,586 90 S$B407S—SI4I0S «$3,233 30 $2533 $7,000 SUZSH 141% Prince George's 5751 0 0 o 0 5.580 559 15,84 Bll 1
Slide 40: Loan Portfolio by Risk Rating
Loan Portfolio by Risk Rating - 0% i 00% eR $3,492,548 100.0% $4,776,965 100.0% e ‘i F third-party credit review firm
Slide 41: Conservative Securities Portfolio
Conservative Securities Portfolio (Dotan Values Phovsanes) US Govemmont Agency Sesuritis $68,289 879 90 ” 13.2% mn Sther Baty lnvertnents “Total Securities {Us Government Agency Securities S298 Total Securities ams 5 eENSrd Monause che Seoustes~ GSEs 227,528 a4 59.9% Donieipat Bo 113,390 "350 29.80%
Slide 42: Nationally Recognized Financial Performance
Nationally Recognized Financial Performance aki ——- a SANDLER O'NEILL+ PARTNERS = “SipAll Stars” Designation 2011, 2013, 2014 & 2015 = Designated as a “Challenger” Bank 2015 = Honor Roll of Community Banks 2010-2013 Independent Community = Ronald D. Paul dkast C Reg Bankers of America Community Bank
Slide 43: Highly Regarded by Bank Rating Firms
‘Highly Regarded by Bank Rating Firms FIRM KBRA Analyze the Future BAUERFINANCIAL, INC VERIBANC BANK RATING A- 275/300 Green - ***
Slide 44: Experienced Management Team
Experienced Management Team Ronald D. Paul, Chairman, President and CEO Jr. Paul Bank, Since Tine 3008 he has served as Chief Executive Officer of the RDP M: fiom 1995, bert P. Pi d EagleBe on the a CE&T E 00: DC Met i D.C. From 138 iS ion he h DC National Bancorp, Ini
Slide 45: Experienced Management Team
Experienced Management Team Janice L. Williams, EVP, Chief Credit Officer ‘
Slide 46: Experienced Management Team
Experienced Management Team firm. He had the American College of Real Estate Lawyers.
Slide 47: Experienced Management Team
Experienced Management Team r DC metropolit anging in revenue Virginia Commerce Bank trial lending activities Americ:
Slide 48: Historical Balance Sheet
Historical Balance Sheet
Slide 49: Historical Quarterly Balance Sheet
Historical Quarterly Balance Sheet etter Vtuerin Thousand avivlnts (8) Lom Depens owt Rates (29 ud Guns ors Growth Rate 392015 Sep20i _peo2014 __Mar2018 592014 ssoost — Slusis2—stag3s6—s2sso2s—si5.661 469% sess “tussle, _aonias, _iotson, _“uaszt sare 3367.97 30,000 u,000 ° oor
Slide 50: Historical Income Statement
| Historical Income Statement (Doar Values n Thousands, except per share data) 1 Year Growth 2010 20 2012 2013 201s __Rate ‘Total interest income 8 S 19.124 $ 141943 187,294 218% ‘Total interest Expense 20.077 1aala 12504, 47% [ot Interest Income 2 047497829 148,79 178,078, 3.396 ‘Loan Loss Provisio
Slide 51: Historical Quarterly Income Statement
Historical Quarterly Income Statement {ote ase Donsnde, cet pe sare dae) “Total inrstIsoe ‘Tota inert Ey ese “Total Nene ncn Sar ud ployee fubensSprom Beara Marketing md Adveris ot Nite pene Bening per Stare Dit row rh Re Rate sQ2015.¢ sQ2015 Deo2015__Mar2004__Jun2014__Sep2014__Dee2014__Mar201S__un
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