Eagle Bancorp, Inc. · NASDAQ:EGBN
Eagle Bancorp — FIG Partners Bank CEO Forum 2013
54 slides from Eagle Bancorp's conference presentation, Sep 17, 2013
Slide 1: Eagle Bancorp Inc. - FIG Partners Bank CEO Forum
* @EAGLE BANCORP INC. FIG Partners Bank CEO Forum September, 2013 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 polici
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 = Founding members had extensive banking experience = Commenced operations with three Maryland branches - July, 1998 = Raised $46.5 mil ion in initial and secondary subscription offerings - 1997* and 2003* = Reached $500 million in assets in 2004 = Private placement of $12.1 millio
Slide 5: Summary Statistics - June 30, 2013
| Summary Statistics — june 30, 2013 Total Assets: $3.4 billion ‘Total Loans: $2.7 billion ‘Total De posits: $2.9 billion ‘Tangible Common Equity: $309.1 million (1) ‘Tangible Book Value per Common Share: $12.00 Shares Outstandit 25,764,542 2) SBLE Preferred: (1% Dividend Rate, until December, 2015)
Slide 6: Attributes of EagleBank
Attributes of EagleBank » — Driven by Profitability - 18 Consecutive Quarters of Increasing Earnings » — EPS Growth — 44.64% CAGR in Quarterly EPS over past 3 years » — Superior Net Interest Margin - 4.27% » — Balanced Organic Growth » — Geographic Market Positioning » — Experienced and Dedicated Bo
Slide 7: EagleBank Locations
| EagleBank Locations Reston ax Washington, DC Tyson's Comer fax County
Slide 8: Deposit Market Share
| Deposit Market Share WASHINGTON, DCMETROPOLITAN AREA (Cater Value wren) Campy ime Cor Copal one BAC Bankof Anes WC FNCBank © Gian MTB MATRe&kCop SBC Trent Doniion Bak VCR VigieConmerce Bank ESI United Bank SSASR Suny Sig Hank ERD Rae & Herb unk Tt (NLC Fama Cop [MBRG —Misebrg Fanci Cop ANCK Access
Slide 9: Financial Indicators - Regional Peer Analysis
| Financial Indicators — Regional Peer Analysis Kev Ratios (at or for the quarter ended 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 ‘Ta
Slide 10: Financial Indicators - Local Peer Analysis
Financial Indicators — Local Peer Analysis Loan Growth (June 30, 2012 - June 30, 2013) © Commercial & Industrial = Commercial Real Estate = Construction & Development = Total Loans Deposit Growth (June 30, 2012 - June 30, 2013) = Demand Deposits = Money Market Accounts = Certificates of Deposit = To
Slide 11: Consistent Balance Sheet Growth
Milions of Dollars Consistent Balance Sheet Growth 83,5009 Total Assets s32504 33,0004 32,7504 325004 82,2504 08Q2 O8QS 08QI 09Q1 09Q2 09Q3 09Q4 10QI 10Q2 10Q3 10Q4 1IQI HQ 11Q3 1IQI 12QI 12Q@2 1293 1294 13Q1 1392 @ @ (0) Reional pers includes pull traded commercial banks with asets between $1 and b
Slide 12: Growth in Pre-Tax, Pre-Provision Income
Millions of Dollars Growth in Pre-Tax, Pre-Provision Income $22,0004 21,0004 s20,000-4 si9,000-4 sis.000-4 si7.000-4 s16,000-4 s1s,000-4 s14.000-4 s13,000-4 si2,000-4 su1.000-4 10,0004 39,0004 88,0004 37,0004 08Q2 0803 OFF O9QI_09Q2 0993 09H THQI 10Q2 10Q3 19QH_ 11QI_ NIG? 11Q3_ NQF 12Q1- 12Q2 1203
Slide 13: Consistently Improving Efficiency Ratio
Consistently Improving Efficiency Ratio (08Q208Q308Q409Q109Q209Q309Q4 10Q1 10Q210Q3 1094 11Q111Q211Q3 114121 12Q2 12Q312Q413Q113Q2
Slide 14: Consistent Net Income Growth
Consistent Net Income Growth Net Income Available to Common Ml TARP Dividend O SBLF Dividend 12,0005 $1175 11,0005 10,0004 9,004 38,0004 s7,0004 36,0004 Thousands of Dollars 35,0004 s4,0004 33,0004 s2,0004 1,000 sot 08Q2 0893 O8QH O9QI_O9Q2 0993 OI 10QI_ 1092 10Q3 I0Qt_11QI_11Q2 1193 IQ @ gi. agh ia
Slide 15: Geographic Detail of Loan Portfolio
Geographic Detail of Loan Portfolio 226 4241 139,745 144,619 45,052 29.991 34,431 26,005 1,978 7158 LP 48,582 318 314,393 49,013, 4409 10,794 19,921 24,691 ‘Other USA, $ 23,561 $ 14,530 $ - $ 31,478 $ 10469 $ 8817 $ 5,602 $ 2,220 $ 140 $ 6,817 3.6% ‘Total $ 636,623 $311,335 $ 28,807 $1,003,723 $376,
Slide 16: Geographic Detail of CRE - Construction
Geographic Detail of CRE — Construction (otar Vatwesin Thousands) Retail 4+ Single & 1-4 ‘Tenanl/ Residential County Family Mixed Use Office Multifamily Strip Mall__Condo__Other_—TOTAL _% of Total Maryland Montgomery $ 20,136 $ - $ 34,756 $ ami $ - $ a $ - $ 55,169 14.6% Prince George's 98 - 960 - 4
Slide 17: Geographic Detail of CRE - Income Producing
Geographic Detail of CRE- Income Producing (Dollar Valwesin Thousands) Retail 4+ Office & Office Tenant! Single & 1-4 County Condo Multifamily StripMall__ Mixed Use __ Family __Industrial__Other Maryland Montgomery S$ 26,239 $ 9,768 $ 15,965 S$ 27,167 $ 6,745 $ 8231 S$ 65,347 Z Prince George's 20. 1
Slide 18: Credit Quality Trends
Credit Quality Trends (Dollars Values in Thousands) 30-89 Days Past Due Nonperforming Assets: 90 or More Days Past Due Nonacerual Restructured Loans ‘Total Nonperforming Loans (NPLs) Other Real Estate Owned (OREO) ‘Total Nonperforming Assets NPAs + 90 Days Past Due/Assets (1) Reserves Reserves/Loans
Slide 19: Consistent Asset Quality
Consistent Asset Quality Total Loans ican Tere in Growth —NPAS_—_Charge-Ofs {000's) Sesannata 2008 $ 588963 1.76% on ie 203 $ HRE150% ax wi $7618 153% 039% Sisngtop00 ‘ite wou $ 380756 127% 032% stomnan win $435 839 1.06% a3 ” zisyro__$_ 198263 1.05% 020% som ~ ‘Net Charge Off History ‘ aia Experien
Slide 20: 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 + Total Loans Total Deposits $1,000,000,000 $50,000,000 $0 (1) QB 2011 Deposits exclude the “settlement deposit”. (2) Ql 2013 “TAG” related deposit loss was $130 million 19
Slide 21: Deposit Composition
Deposit Composition (C2ttas Vetus in Stousand) Deposit Type % of % of % of Balance Total Balance Total Balance Total % Noninterest Bearing (1) 3 773,119 30.8% $881,390 30.4% S$ 767,808 26.6% (0.7%) Interest Bearing Transaction 95,827 3.8% 113,813 3.9% 107,013 3.7% 11.7% Core Savings & Money Market 2
Slide 22: Superior Relationships/Net Interest Margin
Superior Relationships/Net Interest Margin 5.25% [paramere] 4.75 3 ? % 4.25% heal iee a8 a 3.25% 22008 32008 4Q2008 3Q2009 22013
Slide 23: Conservative Securities Portfolio
| Conservative Securities Portfolio (Delt tes ia Shands) Us coverment Agency Secuites assis 2 115% Mongage Backet Secutes - CSE 299 191 aos 6982 299 as% a2 as “Total Securites ETE z = Tae Tom. Us coverment Agency Secuites usr 908 164% Mortgage Backol Secutes = GSE 20 308 587% Municipal Bonds sais 73
Slide 24: Capital Strength
| Capital Strength (Dollars Valuesin Thousands) Total Assets S 2,815,549 $ 2,962,897 S$ 2,976,188 S$ 3,409,441 $ 3,324,865 S$ 3,410,568 Total Capital S 276,008 S$ 290,270 S$ 324,399 S 349,976 $361,852 $369,390 Tier 1 Leverage Ratio 9.33% 9.63% 10.36% 10.44% 10.39% 10.81% Tier 1 Risk Based Capital Ra
Slide 25: Nationally Recognized Financial Performance
Nationally Recognized Financial Performance SANDLER O'NEILL+ PARTNERS “Top Investment Idea” Recommendation 2012 = “Sm-All Stars” Designation 2011 = Designated as a “Grower” Bank 2012 = Honor Roll of Community Banks 2010, 2011 & 2012 = Ranked 24" among Best Performing Community Banks in the U.S. 2012
Slide 26: Highly Regarded by Bank Rating Firms
| Highly Regarded by Bank Rating Firms FIRM IDC Analyze the Future = BAUERFINANCIAL, INC RATING 279/300 Green - ***
Slide 27: Market Information - Washington, DC MSA
Market Information —Washington, DC MSA = Population a Sth largest market in the U.S = Employment a 48,500 new jobs created in last year Average annual job creation is 32,000 over last decade Highest in net new job growth in the U.S. over last decade Unemployment rate of 5.7% vs. US average of 7.4% o
Slide 28: Washington Metropolitan Area Primary Sub-Markets
Washington Metropolitan Area Primary Sub-Markets Population Total Number of (Actual) Employment _Bu Janne Arundel, Maryland, 540,836 214,336 Prince George's, Maryland 865,486 328,314 24,422 Howard, Maryland, 291,019 128,897 10,714 Frederick, Maryland 234,896 96,979 8,362] Charles, Maryland 148,269 4
Slide 29: Unemployment Rate - Largest US Markets
Unemployment Rate- Largest US Markets July, 2013 Source: BLS, NOT Seasonally Adjusted
Slide 30: 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 30 2 a 28 14 14 10 -y tobos,7acte o_o frases 4254554 4 4. o We: BP IIHT Arserweam TT TCU | | il! qT a -10 I a 78 18a a -20 hd [pose -30 enh §8384423424492392 44238
Slide 31: Greater Washington Economy
Greater Washington Economy Other Federal 16.5% International 4.0% Hospitality 23% Associations 21% Federal Procurement, 19.5% Non-Local Business 93% Local Business 37.6% 30 Note: Other includes HealthyEducation, Media Source: The Wall Street Journal, George Mason University, Center for Regional Anal
Slide 32: Key Success Factors
Key Success Factors = Building and maintaining core relationships ° ° Cross sales Focus on key customers = Maintenance of strong credit culture ° ° ° ° Conservative underwriting criteria and loan policies Disciplined Committee Approval and Review Process Periodic Loan and Portfolio Stress Testing Pr
Slide 33: 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 infrastructure to support the increased volume of business and regulation = Significant Management and Board level reporting =
Slide 34: Looking Ahead
Looking Ahead = Capitalize on investment in Northern Virginia market Profitability o Pricing discipline to sustain Net Interest Margin » Diligent expense control to maintain Efficiency Ratio Emphasis on Organic Growth o Hire seasoned lenders and business development officers o Expand customer base »
Slide 35: EGBN Stock Price Performance
| EGBN Stock Price Performance Price Change (%) _ siete ~ ive ~ N “ Ay 2 8 3 2 é 2 2 2 z 3 3 = Stock Price Performance 1 Year 3 Year 3 Year EGBN 64.5% 157.4% 269.8% NASDAQ Bank Stock Index 16.1% 55.6% 27.3% S & P 500 Index 23.9% 46.5% (2.7%) Souree: SNL Financial, Bloomberg, Chast and calculations a
Slide 36: EGBN Relative Valuation
EGBN Relative Valuation PIE Ratio 25 21.8% 20 17.2% 14.9% 17.0% 14.9% 15.0% 15 142% } 1 5 0 EGBN —SNLNat'l Avg KBWRegional SNLMid-Atl NASDAQ Russel! 3000 Bank Avg Ave S&P 500 Souree: SNL & KBW. Data as of August 28, 2013, P/E Ratio = Price /LTM Eamings Per Share
Slide 37: Appendices
Appendices 36
Slide 38: Loan Portfolio Trends
Loan Portfolio Trends (Peta se Saas) Loan Type Babnoe _% of Total Baknee_ _% of Total Babnee_ _% of Total % % Commercialand Industral $516,493 223% © § $45,070 219% — $636,623 23.1% 23.3% 33.6% (Owner Occupied 307,410 291857 11.9% 311,335 11.6% 1.3% 9.0% Owner Occupied-Corst. 10,501 28,808 1.2% 28,8
Slide 39: Loan Portfolio Composition
| Loan Portfolio Composition Total Gross Loans: $2.7 Billion ‘Note: At June 30, 2013, 38
Slide 40: Diversified Commercial Real Estate Portfolio
| Diversified Commercial Real Estate Portfolio Total: $376.9 Million Total: $1.0 Billion ‘Note: At June 30, 2013, 39
Slide 41: Loan Portfolio by Risk Rating
Loan Portfolio by Risk Rating Dollar Values in Thousands) 1000 - Prime 2000 - Esvellent 179.49 3000 - Good 914260 1.023376 380% 4000 - Acceptable 165173 937473 Mm 5000- Acceptable with Risk 330253 34408 128% {6000 - Watch 48451 ar202 19% 58,201 22 49.98 19% 358 100.0% = Periodic review of loan portf
Slide 42: Geographic Detail of NPA's
| Geographic Detail of NPA’s (Dollar Values in Thonsands) Manan Montgomery S$ 586 $ - $ _ $s s 9 s - $ GS MH $ 1327 $ 390 $ 5227 PineGemes MGT ee, a ee ne eC) Ofer a - re WaskingonDC 478 ‘ % sie : 1 998M 11368 Virginia ema a. : : * “8 7 7 gon Bo : “ - Soo 38 8 Fai wo : : so - os Pay Pn Lod Bo. - he
Slide 43: 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 System conversion successfully completed one week after close a Targeted expense savings achieved in methodical and th
Slide 44: Experienced Senior Management Team
| Experienced Senior Management Team Years in Name Title/Function i Ronald D. Paul Chairman, President & CEO 25 15 Robert P. Pincus Vice Chairman 40 4 Michael T. Flynn EVP & COO - Eagk Bancorp 2 9 Susan G. Riel St. EVP & COO - FagkBank 37 15 ‘Thomas D. Murphy President - Community Banking - EagleBan
Slide 45: 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 46: Experienced Management Team
| Experienced Management Team Susan G. Riel, Senior EVP, Chief Operating Officer of EagleBank ‘Ms. Riel, Senior Executive Vice President - Chief Operating Officer of the Bank, and formerly Chief Administrative Officer. Ms. Riel has been with the bank for 13 years. She previously served as Executive
Slide 47: Experienced Management Team
| Experienced Management Team AntonioF. Marquez, 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
Slide 48: Experienced Management Team
| Experienced Management Team James H. L EVP, Chief Fit Officer, Eagle rp, Inc. and E¢ 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 2005, previously served as C
Slide 49: Historical Balance Sheet
Historical Balance Sheet 48
Slide 50: Historical Quarterly Balance Sheet
Historical Quarterly Balance Sheet ({) Please refer to the GAAP reconciliation and footnotes in the appendices on pages 52-53, 49
Slide 51: Historical Income Statement
| Historical Income Statement (Dollar Values n Thousands, except per share data) ‘Total Interest Ineome ‘Total Interest Expense [Net Interest Ineome Loan Loss Provision Service Charges on Deposits Gain/Loss on Sale of Loans Gain/Loss on Sale of Securities BOLI Revenue (Other Noninterest Income ‘Tota
Slide 52: Historical Quarterly Income Statement
| Historical Quarterly Income Statement “Toa tres Income ‘Teva nteret pense ‘Lom Los Provision ‘Service Chars on Depots Gains on Sl of Loan ‘Gaines on Sle Seton ROU Revere (Other Nenibneest Income Total Nointerest Income ‘Sabie ant ip oy Benefits Premises and Equipment Expenses Markaingand Advertisi
Slide 53: GAAP Reconciliation
GAAP Reconciliation GAAP Reconciliation (Unaudited) dolls in thousands exwept per share data) Six Months Ended ‘Twelve Months Ended ‘Six Months Ended Tune 30,2013 December 31,2012 June 30,2012 Common shareholders’ equity $ 312,790 $ 293,376 $ 233,670 Less: Intangible assets 3,690) (3,785) G,978) ‘Ta
Slide 54: 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. The Company calculates the tangible common equity ratio by excluding the balance