Eagle Bancorp, Inc. · NASDAQ:EGBN
Eagle Bancorp — Sandler O'Neill + Partners West Coast Financial Services Conference 2013
52 slides from Eagle Bancorp's conference presentation, Mar 5, 2013
Slide 1: Sandler O'Neill West Coast Financial Services Conference
” @EAGLE BANCORP INC. Sandler O’Neill + Partners West Coast Financial Services Conference March 5, 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 policies and
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 17 current branches and 1 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 mi ion in initial and secondary subscription offerings - 1997* and 2003* Reached $500 million in assets in 2004 Private placement of $12.1 million of subord
Slide 5: Summary Statistics — December 31, 2012
| Summary Statistics — December 31, 2012 ‘Total Assets: $3.4 billion ‘Total Loans: 82.5 billion ‘Total Deposits: $2.9 billion ‘Tangible Common Equity: $289.6 million (1) ‘Tangible Book Value per Common Share: $12.62 (1) Shares Outstanding: 22,954,889 SBLF Preferred: (1% Dividend Rate, until December
Slide 6: Attributes of EagleBank
Attributes of EagleBank v Driven by Profitability - 16 Consecutive Quarters of Increasing Earnings EPS Growth — 71.94% CAGR in Quarterly EPS over past 3 years Superior Net Interest Margin - 4.31% Balanced Organic Growth Geographic Market Positioning Experienced and Dedicated Board and Management Tea
Slide 7: EagleBank Locations
EagleBank Locations Loudoun County Reston Tyson's Comer Washington, DC (| Alexandria
Slide 8: Deposit Market Share
| Deposit Market Share WASHINGTON, DCMEIROPOLITAN AREA 2 on Neale Brmior Jone 302011 Jone 32012 Rank Lac Rink Lac Rk Ther Company Name ly Ste ance dee 1 OF Gta owe Melan —VA mss nenaT Ss 2x08 2 WIC WeleFame £00 Se Fanceco CA 16 msex0 212967 a BAC Binkof Ania mie NC 1% wstsie §=——rozas88 4 sm SesTrut
Slide 9: Financial Indicators — Regional Peer Analysis
| Financial Indicators — Regional Peer Analysis Net Interest Margin (2) Efficiency Ratio Non-Interest Income/Total Revenue NPAs #90 Days Past Due/Total Assets (2) NPLs + 90 Days Past Due/Total Loans Allowance Loan Losses/Gross Loans Coverage Ratio Net Charge-Ofs ‘Tangible Common Equity/Tangible Asse
Slide 10: Financial Indicators — Local Peer Analysis
Financial Indicators — Local Peer Analysis BN Peers Loan Growth (December 31, 2011 - December 31, 2012) = Commercial & Industrial 13.8% (0.2%) © Commercial Real Estate 20.4% 6.0% © Construction & Development 30.9% 2.3% © Total Loans 21.2% 6.4% Deposit Growth (December 31, 2011 - December 31, 2012) =
Slide 11: Consistent Balance Sheet Growth
Consistent Balance Sheet Growth $3,5009 Total Assets 33,2504 83,0004 E 1704 31.5004 4 ||! saw 1,900 s7s04 $5004 204 O7Q4 OBQI OQ 08Q3_08Q4_O9QI 992 09Q3 ONQ4 10QI 10Q2 10Q3 1OQt ~N1QI 11Q2 1193 11Q4 1291 12Q2 1293 1294 e) Q (0) Reional pers includes publ traded commercial banks wih asets between $1
Slide 12: Growth in Pre-Tax, Pre-Provision Income
Millions of Dollars Growth in Pre-Tax, Pre-Provision Income 821,000 $20,000 $19,000 $18,000 s17.000-4 $16,000 s1s.000-4 $14,000 313.0004 $12,000 11,0004 10,0004 39,0004 38,0004 87.0005 36.0005 85.0004 34.0005 33.0005 32.0004 1.0004 O7Q! OBOE O8Q2_O8Q3_O8QI_ OBI 092 09QI O9QI 10Q1 10Q2 10Q3 OQ! QI 11
Slide 13: Contribution from Non-Interest Income
Contribution from Non-Interest Income [G Net tnterest Income Mf Gain on Sale of Loany © Osher Non-Tatcrest Income $10,000 $3,0004 so (07Q408Q108Q208Q308Q409Q109Q209Q309Q4 10Q110Q210Q310Q411Q111Q211Q311Q412Q1129212Q312Q4
Slide 14: Consistent Net Income Growth
Consistent Net Income Growth EINet Income Available to Common ll TARP Dividend BS) LF Dividend 11,0009 10.488 10,0004 9.0004 38,0004 $7,000 36.0004 ss0004 10004 (row CAGE: 50% (row CAGE: 50% Le. so+ ‘Thowsands of Dollars O7Q1 O8QI OSE OSGI OSI O9QI OQ? O9QI —O9QE 10QI 10Q2 10Q3 19H T1QI 11Q2 11QI 11
Slide 15: Geographic Detail of Loan Portfolio
Geographic Detail of Loan Portfolio 868 1207584042 ,06S SI 1,789 100 2964 3974 103,582 54,560 4474 6,270 253 Alexandra 10557 10,947 . 18,676 11,538 E 1,701,573 35 55,046 13,341 559, : 8803 30,682 - 2385 2.845 55 58,670 Loudoun 8470 530 : 8673 5 : 1,527 - 23504 0.9% Prince William 2785 1,176 855 4,48
Slide 16: 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 17: Consistent Asset Quality
| Consistent Asset Quality Total Loans sastaonaca szonaponnea 7 saseogonaea 4 stoeaponaea Ssongoooon Tol Lcrs(S) NASH) cha) * Impact of F&T Acquisition $0 EP PP EPO P EP PREP E Toon Average Growth NPAs Charge-Offs (00's) 2008 $ 548.963 1.76% 01% 2008 $ 15361 150% oan 2010 $ 276189 153% 035% rot $380
Slide 18: 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 '$500,000,000 =e E st et. te. ae i. 2 PS Fe gh We Se OS WW a PPP PLP EOL 8 Se OK Mo? ) ‘Total Loans Total Deposits (i) @ 2017 Deposits exclude the “settlement deposit™
Slide 19: Deposit Composition
| Deposit Composition (ots Vat in Thousands) Deposit Type Noninterest Bearing, Interest Bearing Transaction Core Savings & Money Market * Core CD's * Wholesale Money Market Wholesak: CD's ‘Total Deposits %of % of of Balance Total Balance Total Balance Total 688,506 28.8% S$ 796,654 31.7% $881,390 30
Slide 20: Superior Relationships/Net Interest Margin
Superior Relationships/Net Interest Margin 5.25% [[riicosed August a7, 2008] 475% ‘a 4 2 % 425% i 2 3.75% 3.25% gesgeeegs ‘Note: Regional por inchndes publicly-traded commercial banks with Assets between S1 and $3 Dillion and headquartered in Washington, DC, Virginia, ‘West Virginia, Maryland, Penns
Slide 21: Capital Strength
| Capital Strength (Dollars Values in Thousands) Total Assets S 3,219,746 S 2,831,255 $ 2,815,549 S 2,962,897 S$ 2,976,188 S 3,409,441 Total Capital S 258,462 S 266,711 $ 276,008 S 290,270 $324,399 S 349,976 Tier 1 Leverage Ratio 9.61% 821% 9.33% 9.63% 10.36% 10.44% Tier 1 Risk Based Capital Ratio 1
Slide 22: Nationally Recognized Financial Performance
| Nationally Recognized Financial Performance SANDLER O'NEILL+ PARTNERS "2022 “Top Investment Idea” Recommendation = 2011 “Sm-All Stars” Designation = Designated as a “Grower” Bank 2012 = Honor Roll of Community Banks 2010 & 2011 = Ranked 39 among Best Performing Community Banks in the U.S. 2011 Top
Slide 23: Highly Regarded by Bank Rating Firms
| Highly Regarded by Bank Rating Firms FIRM RATING =IDC 273/300 Analyze the Future VERIBANC Green - * = BAUERFINANCIAL, INC Jootolo:
Slide 24: Market Information — Washington, DC MSA
Market Information —Washington, DC MSA = Population 6.2 Million a Sth largest market in the U.S. = Employment 2.9 Million u 34,300 new jobs created in last year Average annual job creation is 29,100 over last decade Highest in net new job growth in the U.S. over last decade a Unemployment rate of 5.
Slide 25: Washington Metropolitan Area Primary Sub-Markets
Washington Metropolitan Area Primary Sub-Markets Population Total Number of C ci tual) _Employment__ Businesses JAnne Arundel, Maryland 540,836 214,336 19,063] 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| ICharles,
Slide 26: Unemployment Rate - Largest US Markets
Unemployment Rate- Largest US Markets | November, 2012 Source: BLS, NOT Seasonally Adjusted
Slide 27: 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 % Source: MRIS, GMU Center for Regional Analysis 26
Slide 28: Greater Washington Economy
Greater Washington Economy Hospitality 2.0% Assoctations 2.0% Non-Local Business 91% Other 82%
Slide 29: 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 Based Le
Slide 30: Key Success Factors (continued)
Key Success Factors (continued) = 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 = Human Resources Addition of
Slide 31: Looking Ahead
Looking Ahead = Capitalize on investment in Northern Virginia market Emphasis on Organic Growth » Hire seasoned lenders and business development officers » Expand customer base » Focus on relationships to increase deposit penetration and multiple product usage = Profitability » Continued focus on Ne
Slide 32: EGBN Stock Price Performance
| EGBN Stock Price Performance Price Change (%) sao 2 $ & § 2 8 8 8 g 4 2 Stock Price Performance 1 Year 3 Year 5 Year EGBN 33.7% 84.1% 92.7% NASDAQ Bank Stock Index. 13.1% 12.1% 24.8% S$ & P 500 Index, 8.9% 34.9% 8.5% ‘Source: SNL Financial, Bloomber, Chat and caleuatons a of eose, Febuary 28,2013,
Slide 33: Appendices
| Appendices 32
Slide 34: Conservative Securities Portfolio
| Conservative Securities Portfolio (i ts Thon) USGovemment Agency Secustes 47606 177 1 9092 16.86 Momignge Backed Securtes “GSEs 17m619 2730 296 173083 sm ‘Municipal Bonde 72.050 sau 3 mal 2h ‘Other Enuity Investments “07 os 32 o.. "Total Securities Sa Ss Sas, eT Too USGovemment Aueney Secusies sts
Slide 35: Loan Portfolio Trends
Loan Portfolio Trends (Potten Vues in Ths ads) Loan Type Balance _% of Total Balance _% of Tota Balance _% of Tota % Commercial and Industral $478,886 23.3% © $534,133 22.3% $545,070 21.9% 138% Ovner Occupied 250,174 12.2% 306,148 12.8% 297,851 11.9% Owner Occupied-Const 34.497 1.7% 14,739 0.6% 28,8
Slide 36: Loan Portfolio Composition
| Loan Portfolio Composition Total Gross Loans: $2.5 Billion ‘Note: At December 31, 2012 35
Slide 37: Diversified Commercial Real Estate Portfolio
| Diversified Commercial Real Estate Portfolio Total: $393.4 Million Total: $914.6 Million ‘Note: At December 31, 2012 36
Slide 38: Loan Portfolio by Risk Rating
Loan Portfolio by Risk Rating (Dollar Values in Thousands) 1000 Prime S 10330 2000 Eeellent ag 3000 - Good 813,61 4000 - Acceptable 706,703 5000- Acceptable with Risk 287,059 6000 Wateh 20837 7000 - Special Mention 25282 £8000 - Substandard 55083, 29% 9000 Doubtful 37 0.0% 9999- Loss : 0.0% S$ 2,056
Slide 39: Geographic Detail of NPA's
| Geographic Detail of NPA’s (Doll Vatwes in Thousands) Manylant Montgomery S1s2S mS + $ - $ HTS - $ = $ IS = $ 20% $ 220 $ 42% Price George's 2 266 : 1,265 = 1208 ne 3.206 3503556 Otter MD 06 119s - 182 : S15 : - 1 2579 os 318 Washington DC 1484 E : om Me : Be 9.284 igo L178 Virginia Alesana 1s x :
Slide 40: 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 41: Experienced Senior Management Team
| Experienced Senior Management Team Name Title/Funetion Ronald D. Paul Chairman, President & CEO 25 15 Robert P. Pincus Vice Chaiman 40 4 Michael T. Flynn EVP & COO - Eagk Bancorp 2 9 Susan G. Riel Sr. EVP & COO - EagkBank 37 1S ‘Thomas D. Murphy President - Community Banking - Eagl-Bank 40 15 Jani
Slide 42: 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
Slide 43: 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. M: has been with the bank for 13 years. She previously served as Executive Vice Pr
Slide 44: 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 45: Experienced Management Team
| Experienced Management Team James H. Langmead, EVP, Chief Financial Officer, Kagle Bancorp, Inc. and EagleBank cutive Vice President and Chief Financial Officer of the Company since January 2007, and Executive Vice President eviously served as Chief Financial Officer of Sandy Spring Bank and Mr. L
Slide 46: Historical Balance Sheet
| Historical Balance Sheet 45
Slide 47: Historical Quarterly Balance Sheet
Historical Quarterly Balance Sheet (1) Please refer to the GAAP reconciliation and footnotes in the appendices on pages 49-51 46
Slide 48: Historical Income Statement
| itstarieat Income Statement (Dollar Values n Thousands, except per share data) ‘Total Interest Income ‘Total Interest Expense [Net Interest Income ‘Loan Loss Provision Service Charges on Deposits GainvLoss on Sale of Loans GaitVLoss on Sale of Securities BOLI Revenue Other Noninterest Income ‘Tota
Slide 49: Historical Quarterly Income Statement
Historical Quarterly Income Statement (Coir seuesn Tonoonds xp per ohare data) ee Grew sQ2012 6 sQu0R2w Mar 2011 Jun 2011 _Sep2011__Dee2011__Mar2012_ un 2012 _Sep2022__Dee202__4guon__3Qu02 Total terest Inco S 26295 S$ BGS SAT S$ SOS SBSH SMITE S$ S566 BRIO «1S 4 ‘oual iteret Bene 4300, $102 5368 450
Slide 50: GAAP Reconciliation (Unaudited)
GAAP Reconciliation (Unaudited) dollars in thousands exept per share data) Common shareholders’ equity Less: Intangible assets ‘Tangible common equity Book value per common share Less: Intangible book value per common share ‘Tangille book value per common share Total assets Less: Intangible assets ‘
Slide 51: GAAP Reconciliation
| GAAP Reconciliation 50
Slide 52: 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 balanc
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