Eagle Bancorp, Inc. · NASDAQ:EGBN
Eagle Bancorp — Investor Presentation (June 2015)
50 slides from Eagle Bancorp's investor presentation, Jun 18, 2015
Slide 1: Eagle Bancorp Inc. Investor Presentation
* @EAGLE BANCORP INC. Investor Presentation June, 2015 Ticker: EGBN www.eaglebankcorp.com
Slide 2: Forward Looking Statements
Forward Looking Statements This Presentation, contains: forw ard looking statements set the meaning of the Securities and Exchange Act of 1934, a nten to future trends Plans, di 1 ome cases, forward- iookin su such as “may,” rT ” “anticipates,” “believes,” “expects,” cm ” atmos, “continue,” “should,
Slide 3: Company Overview
Company Overview = Eagle Bancorp, Inc. is a growth-ori d ity bank head. di Bethesda, Maryland = Focused on the Washington, DC metropolitan area, with 22 branches (!) Commercially-oriented busi jel with deep relationships of loans, core deposits and related products #1 ind st ity banks head din the W
Slide 4: Investment Highlights
Investment Highlights = Focused on Profitability and Balanced Financial Performance Strong Net I Aargin = 4.41% Clean Asset Quality: NPAs/Assets = 0.58% Low Charge-Off History: NCOs/Average Loans = 0.15% Driven by Long-Term, Deep Customer Relationships ‘Wal : 7 1 Dedicated Board Focused on Vision Pr
Slide 5: Experienced Senior Management Team
‘Experienced Senior Management Team Years Years in with Name ‘Title/Function, Banking EGBN Ronald D. Paul Chainman, President & CEO 28 17 Robert P. Pincus Vice Chairman 42 7 Susan G. Riel Sr. EVP & COO - EagleBank 39 17 James H. Langmead E 44 10 Laurence E. Bensignor EVP & General Counsel 5 3 EVP &
Slide 6: Summary Statistics
| Summary Statistics Total Assets: Total Loans: Total Deposits: ‘Tangible Common Equity: Tangible Book Value per Common Share: Insider Ownership: Institutional Ownership: Member of Russell 2000 $5.5 billion $4.4 billion $4.6 billion. $560.0 million (1) $16.82 (1) 33,303,467 $71.9 million. $1.33 bill
Slide 7: EagleBank Branch Locations
EagleBank Branch Locations Loudoun County ‘Tyson's Comer Washington, DC Fairfax County : a: NOTE: Branch Totals as of March 31, 2015,
Slide 8: Deposit Market Share
Deposit Market Share (Daltarsin thousands) Loeal June 30, Tune 30, 2014 ‘Community 2013 2014 nual Market Rank Banks __Company Name Branches Balance Balance __Growth 1 Yells Farge 2 $21,404,970 $22,746,582 63% 6.8% 2 ank of Ameri ul 17,440,485 0,398,034 17.0% 15.1% 3 Capital One Financial Corp. 134 2
Slide 9: Performance vs. Peer Group
Performance vs. Peer Group aAl GBN 1Q2013 192014 192015 = Net Interest Margin 4.20% 4.45% = 4.41% = Efficiency Ratio 48.56% 51.94% — 44.89% = NPAs +90 Days Past Due/Total Assets 112% 1.19% 0.58% Hlowance Loan Losses/Gross Loans 152% 137% 1.07% = Reserve/NPLs (Coverage Ratio) 137.80% 15.67% 24.12% 0.
Slide 10: Consistent Balance Sheet Growth
‘Consistent Balance Sheet Growth $6,009 Total Assets 5,s00-4 $5,000 4,500 15Q a fo)
Slide 11: Consistent Net Income Growth
Consistent Net Income Growth ‘Thousands of Dollars 1oQh 10Qz 10Q3_10Qt_11Q1 Ql LIL 1291 1292 12QE_ 1291 13QI 13Q2_13Q3_13Q1_ QL H4Q2 Qs Qt 1SQI
Slide 12: Net Interest Margin
‘Net Interest Margin 5.00% 4.00% 3.50% 3.00% 2.50% 2.00% 4.45% 448% 445% 4.42% 4.41% 2014Q1 2014Q2 2014Q3 2014Q4 2015Q1 MEGBN Peer Group
Slide 13: Yields and Cost of Funds
‘Yields and Cost of Funds Yield on Average Earning Assets Yield on Loans 5.50% 5.60% sine 487% 53% sam S 530% «537% 5.00% | A706 Rial = a 4 450% 4% 413% Same ‘cian 4.0686 4.06% 01% 5.009% 4.30% 3.50% a 4.00% 3.00% es 2.50% 20% 2.00% ~ - + 4.00% 20QI—-2014Q2_ 2013. -2OTUQH. «20151 2OMQI —«-20UUQZ_-O1
Slide 14: Earnings per Share
Earnings per Share EPS (Reported) ™EPS (Operating) $0.70 $0.60 $0.50 $0.40 $0.30 $0.20 $0.10 $0.00 2014Q1 2014Q2 2014Q3 201404 2015Q1
Slide 15: Tangible Book Value per Share
Tangible Book Value per Share 9 $18.00 9 CAGR= 24-68 Me $16.82 $16.00 + ; sino $14.12 SiG. S156 $14.00 4 ; $12.00 $10.00 $8.00 $6.00 $4.00 $2.00 $0.00 + 2014Q1 2014Q2 2014Q3 2014Q4 2015Q1
Slide 16: Consistent Increases in Operating Leverage
Consistent Increases in Operating Leverage $30,000 CAGR 19.5% $20,000 $10,000 $0 SLL HL HRY DY YH HY PD H ss LP PLS PEEP PPE PPLE PERL 9 == Revenue ($000s) == Non-Int Expense ($0008) [NOTE: Please refer tothe Non-GAAP recoeiliation and footnotes inthe appendices on pages 31 = 32. Data for Q2, Q3, Q4
Slide 17: Consistently Improving Efficiency Ratio
Consistently Improving Efficiency Ratio 2014Q1 2014Q2 201493 201494 2015Q1 MEGBN = Peer Group
Slide 18: Moderate Interest Rate Risk Position
Moderate Interest Rate Risk Position Interest Rate Risk Indicators ........and Trends Mar, 2014 Jun. 2014 Sep. 2014 Dec. 2014 Mar. 2015 Investments, 0 ro rr rr 45 Loans 28 28 26 a 27 Deposits 32 33 33 34 33 Borrowing 7 7 43 30 45 Interest Rate Shock Anal Net interest Income - Flat balance Sheet $ 15
Slide 19: Deposit Composition and Growth
Deposit Composition and Growth (Delis alas in FRosand} Deposit Type %of %of %of Balance Total Balance Total Balance Total % ‘Noninterest Bearing S$ 886,623 27.1% $1,173,799 273% $1,196,165 26.1% 34.9% Interest Bearing Transaction 106,645 3.3% 143,628 3.3% 178,291 3.0% 67.2% Core Savings & Money Mark
Slide 20: Balanced Loan and Deposit Growth
Balanced Loan and Deposit Growth $ in Billions y iy Ww Nd BP oe al? a mTotal Loans Total Deposits O T y > > be be ‘a be es ys ye ig oe we oat” ge ro ve @) QB 2011 excludes the “settlement deposit.”
Slide 21: Detail of Loan Portfolio
Detail of Loan Portfolio fa Prince George's. 65,038 3 Other MD 54,102 32,992 495 7.4% 1,232 169,727 21,247 6,952 399 7,749 33 4,408 582,510 13.1% , 2,357 356,465 77,146 «27,998 12,7036 .S10—*10,185 Loudoun 38,276 $8,177 = 22,231 22,369 z 2,359 4,072 9,660 157,144 Prince Wiliam. 9,057 17,419 = 74,125
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 (Dollars Values in Thousands) 30-89 Days Past Due Nonperforming Asset or More Days Past oe Novara Total Nonperforming Loans (NPLs) Other Real Estate Owned ( (ome) Total tNonperfaming Asse ming Res ted aa (IDRs) NPAs/Assets NPAs+TDRs/ Assets Reserves Reser Reserves/NPLs (Covera
Slide 24: Consistent Asset Quality
Consistent Asset Quality Total Loans (Smms) Dollar Values in Thousands) 9 -_S-= amsyrD sis 056% 015% Mar line Sp Det» Mar Lue Sep Dee War ne Sep Det Lnhuterarrespeseesy ee s Tod Loens|f] NPA) che OH) Income Producing CRE 0.03% 0.06% Owner Occupied CRE 0.11% 0.12% Construction and Land 0.34% O4% Comm
Slide 25: Capital Strength
Capital Strength @ollars Values in Thousands) Total Assets $ 3,771,503 S$ 3,803,952 S 3,914,444 S 4,169,181 $ 5,247,880 $ 5,500,340 Total Stockholders Equity S 393,863 S$ 410,382 S 426,821 S 442,614 $ 620,759 S 741,530 Total Common Stockholders Equity $ 337,263 S 353,782 S 370,221 S$ 386,014 $ 548,8
Slide 26: Key Success Factors
Key Success Factors = Building and maintaining core relationships Focus on key customers = Maintenance of strong credit culture oan policie: Disciplined ‘ land revi. ° p proce: = Built and preserved a strong capital position and balance sheet ‘ f August 2008 2 ° i f i ing profitability (since Januar
Slide 27: Key Success Factors (continued)
Key Success Factors (continued) Disciplined ALCO process Maintained focus on areas of strength Built the proper infrastructure to support the increased volume of business and regulat: Comprehensive Management and Board level reporting Human Resources o Recruit easoned t wal dea Well de Stability of
Slide 28: EagleBank Growth Strategy
EagleBank Growth Strategy = Continue Integration of Virginia Heritage Bank Acquisition = Profitability = Maintain Credit Quality = Emphasis on Organic Growth * Only 3.1% d i ‘ket share in DC M A fter Virginia Heritage Bank acquisition igni J relationships, particularly in Northern Virginia Jationshi
Slide 29: EGBN Stock Price Performance
/EGBN Stock Price Performance Total Return Performance 400.00 350.00 300.00 250.00 200.00 —e Eagle Bancorp, Inc @- NASDAQ Bank Index HE NASDAQ Stock Market index - (U.S. Companies) oa SBP 150.00 100.00 50.00 5292010 sag2oi sagn012 5292013 5292018 sa9n01s Stock Price Performance 1 Year 3 Year 5 Year
Slide 30: Appendices
Appendices
Slide 31: Highly Valued Peer Group
Highly Valued Peer Group — Pena en c " ow gett Bis NOTE: Peer Group inclades all publicly-traded banks Nationwide with $2 billion to S75 blion in assets that trade: ss en en dis uncaee() Nonperom ‘SNL Financial 200% of angiblebook vale or higher. Pir quate or prior quarter IM. 3¢) ig assets are defi
Slide 32: Non-GAAP Reconciliation
Non-GAAP Reconciliation GAAP Reconciliation (Unaudited) (dollars in thousands ewept per share data) Three Months Ended Three Months Ended March 31,2015 March 31,2014 Common shareholders’ equity 669,630 353,782 Less: Intangible assets 3,482) Tangible common equity 350,300 Book value per common share
Slide 33: Non-GAAP Reconciliation Footnotes
Non-GAAP Reconciliation Footnotes i io") and tangible book ul i . The ieee 3 Ge 7 is ig) ssets P compared to book value per common share, which the Company calculates by dividing common n shareholders’ equity by common shares outstanding, The Company considers this information harehold tangible equi
Slide 34: 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 65, 600 new jobs created i in last year Qa private ector, over 180,000 new private sector jot last four yea ; 4.3% vs. US 49% (April 2015) = Gross Regional Product (GRP) $449 B
Slide 35: Greater Washington Economy
|Greater Washington Economy ther Federal 13.7% Federal Procurement 163% Non-Local Business 10.6% Local Business 39.9% Distitet of Cot 24.0% ‘Northern Virginia 48.0% Gross Regional Product $449 Billion NOTE: Other includes Health Care/Education and Media SOURCE; The Wall Street Journal, George Mason
Slide 36: Loan Portfolio and Growth
Loan Portfolio and Growth (Delo Yels ix Tesscads) Loan Type Balance % of Total Babee _% of Total Bakinoe Commercial and Industrial $704,386 23.0% 916,226 21.2% = $933,714 Owner Ocoupied. 320,994 105% 461,581 107% 493,003 Owner Ocoupied-Const 35,480 1.2% 58,082 13% 49,558 Income Producing 1,196,406 3
Slide 37: Geographic Detail - Income Producing CRE
Geographic Detail - Income Producing CRE Vargtand Paice George’ 2057 7381SCS665—=SCCIDSCSCSSCSCSCSC«CTL:SCt«‘«t SCSI WoreT 8% omer D 630 S578 2 ee er) 355465 20.% Towdoun 03 LM 0236s 0 0 0 WLst7 BBL 1k Price Wiliam aun ase 0 0 ee eT mas 43% attervA 3883 Moa us Dal wisn 6% otter A eC) ry mm a0 39% SS
Slide 38: Geographic Detail — Construction
Geographic Detail — Construction (Bolan Vales in Provan) ingle &14 Multi- Residential Redevl/ Mixed Family Office Family __Condo__Hotel_—Retail_—_—_Use Other TOTAL % of Maryland Montgomery $48,392 $59,476 9 S16 $13,332 30 $0 $4183 SIBSB 178% ince George's 2404 0 0 0 0 7936 0 10907 2247 29% Other MD
Slide 39: Loan Portfolio by Risk Rating
Loan Portfolio by Risk Rating . third-party credit review firm
Slide 40: Conservative Securities Portfolio
Conservative Securities Portfolio (Dollar Values 91 Thousands) = Average life of portfolio is 3.8 years
Slide 41: Nationally Recognized Financial Performance
Nationally Recognized Financial Performance SANDLER O'NEILL+ PARTNERS " “Zop Idea” lati = “Sm-All Stars” Designation 2011, 2013 & 2014 "= Designated as a “Challenger” Bank 2015 = Honor Roll of Community Banks 2010-2013 Bankers of America Community Banker of the Year 2014 Independent Community | " Ro
Slide 42: Highly Regarded by Bank Rating Firms
‘Highly Regarded by Bank Rating Firms FIRM KBRA Analyze the Future BAUERFINANCIAL, INC VERIBANC BANK RATING BBB+ 283/300 todd Green - ***
Slide 43: Experienced Management Team
Experienced Management Team Ronald D. Paul, Chairman, President and CEO Paul i rman sit y 2008, i i i yy. Since June 2006, Bank, i ies and RDP M: from 1995. “Greater named Robert P. Pi Inc. and EagleBank i i nthe acquis i ly “P&T Bank” 2005. DC Met From 1991 to D.C. From 1986 to 1991, he From 1971 t
Slide 44: Experienced Management Team
Experienced Management Team
Slide 45: Experienced Management Team
Experienced Management Team tharles C. Brocks Bank He had Arlington, Vi Michael T. Fl Inc, since June 2006. _ D.C. and Maryland region ion. He I metropolitan area. L EB Eagle B Ine. and EagleBank ies i DC area. For t. M ing o fa the W f Melrod, the American College of Real Estate Lawyers,
Slide 46: Experienced Management Team
Experienced Management Team Antonio F. Marques, Jr, Marqu i DC Linds Rh Bank activities. America. Steve Reeder, EVP, Chief Deposit Officer Northem Vi i Mr. Reeder has over DC metropolitan area
Slide 47: Historical Balance Sheet
Historical Balance Sheet
Slide 48: Historical Quarterly Balance Sheet
Historical Quarterly Balance Sheet (Deiter Vatuerin Thotwant) cash ad Basalt (2) Sortie Ate “Fetal Cah ott vie Deposit Growth Rate 1Q201S ve 1Q2015 6 Jon 2013, __Sep2013, _Dec2019, _Mar20K4 __Jun 2014 _Sep2014 _Dec 2014 igang _" 42014 sista 3 16960 S2809S1—ST1S,AB2 208356 Sas6m25SHIS.661 ea uses _so
Slide 49: Historical Income Statement
| Historical Income Statement (Dollar Valuesin Thousands, except per share data) Total interest Income ‘Total interest Expense ‘Net Interest incom 3 g ea oneaa en Salaries and Employee Benefits Premises and peouat apes Marketingandl Adverts Data Processin Legal, ‘sone -and Professional Fees FDIC Ins
Slide 50: Historical Quarterly Income Statement
Historical Quarterly Income Statement (Color olsen Thousands, excep per ohare date) “Total terest tonne Tait ineet Boe Lom Lots Provision Sevice Chars on Dep Gain en Sl Low Ganon Se Sse = en Otero Income tal NointrstIncee sees and Bip ay ce Benefits pale Een Brows ‘Marketingand Ade DataProcesing Dep