Eagle Bancorp, Inc. · NASDAQ:EGBN
Eagle Bancorp — Investor Presentation (March 2010)
34 slides from Eagle Bancorp's investor presentation, Mar 8, 2010
Slide 1: Eagle Bancorp March 2010
March 2010 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: History of Growth
2 History of Growth Founding members had extensive banking experience Raised $16.5 million in initial subscription offering - 1997* Commenced operations with three Maryland branches - July, 1998 Second subscription offering raised $30 million - 2003* Reached $500 million in assets in 2004 Private pl
Slide 4: Summary Statistics – December 31, 2009
3 Summary Statistics – December 31, 2009 Note: Data at December 31, 2009 unless otherwise noted. Total Assets: $1.8 billion Total Loans: $1.4 billion Total Deposits: $1.5 billion Tangible Common Equity: $161 million Tangible Common Book Value per Share: $8.26 Shares Outstanding: 19,534,226 TARP Pref
Slide 5: Company Overview
Company Overview Eagle Bancorp, Inc. is a rapidly growing commercial bank headquartered in Bethesda, Maryland $1.8 billion in assets, focused on Washington, DC Metro Area with 14 branches Commercially oriented business model with deep relationships on loan and deposit side of balance sheet Largest m
Slide 6: EagleBank Locations
5 EagleBank Locations Bethesda Tyson's Corner Montgomery County Prince George’s County Alexandria Arlington Fairfax County Loudoun County Washington, DC Branch Locations Maryland 8 Washington, DC 5 Virginia 1 Total 14
Slide 7: Experienced Senior Management Team
Experienced Senior Management Team Years Years in with Name Title/Function Banking EGBN Ronald D. Paul Chairman, President & CEO 22 11 Robert P. Pincus Vice Chairman 36 1 Michael T. Flynn EVP & COO - Eagle Bancorp 38 5 Susan G. Riel Sr. EVP & COO - EagleBank 33 11 Thomas D. Murphy President - Retail
Slide 8: Why Invest in EGBN?
Why Invest in EGBN? Driven by Profitability Superior Net Interest Margin Emphasis on Core Deposits and Deep Relationship Banking Strong Organic Growth Geographic Market Positioning Experienced and Dedicated Board and Management Team Exceptional Asset Quality Record Conservative Securities Portfolio
Slide 9: Proven Acquisition Capabilities
Proven Acquisition Capabilities Evaluated many acquisition opportunities in 11 year history and only pursued one transaction – F&T Acquisition of F&T completed on August 31, 2008 System conversion successfully completed one week after close Targeted expense savings achieved in methodical and thought
Slide 10: Consistent Balance Sheet Growth
Consistent Balance Sheet Growth EGBN CAGR 26.7% Peer CAGR: 9.9%¹ EGBN CAGR 20.2% (Excluding F&T Acquisition) (1) Regional peers includes publicly-traded commercial banks with assets between $1 and $5 billion and headquartered in Washington, DC, Virginia, West Virginia, Maryland, Pennsylvania and Del
Slide 11: Net Income
Net Income EGBN Net Income CAGR: 10.0% Peer CAGR: -2.6%¹ $2,951 EGBN Net Income Available to Common CAGR: 5.6% (1) Regional peers includes publicly-traded commercial banks with assets between $1 and $5 billion and headquartered in Washington, DC, Virginia, West Virginia, Maryland, Pennsylvania and D
Slide 12: Pre-Tax, Pre-Provision Income
Pre-Tax, Pre-Provision Income EGBN CAGR: 20.7% (1) Regional peers includes publicly-traded commercial banks with assets between $1 and $5 billion and headquartered in Washington, DC, Virginia, West Virginia, Maryland, Pennsylvania and Delaware who reported pre-tax pre-provision net revenues for all
Slide 13: Loan Portfolio Composition
13 Loan Portfolio Composition Loan Portfolio by Type Loan Portfolio by Location Total Gross Loans: $1.4 Billion Note: At December 31, 2009 Home Equity 6.2% Other Consumer 0.5% Construction 12.9% C&I 24.8% Owner Occupied CRE 14.0% Income Producing CRE 35.7% Residential Mortgage 0.7% Land 5.2% Other V
Slide 14: Geographic Detail of Loan Portfolio
14 Geographic Detail of Loan Portfolio Note: At December 31, 2009 Concentration in quality markets: Washington, DC and Montgomery County, Fairfax County Low levels of exposure to markets hit hardest by real estate downturn (Dollar Values in Thousands) County C&I Owner Occupied CRE Income Producing C
Slide 15: Detail of Loan Portfolio
15 Detail of Loan Portfolio Note: At December 31, 2009 Construction Loans by Type Income Producing CRE by Type Total: $179.9 Million Total: $499.5 Million Construction Loans by Type Residential Condo 20.2% Retail - Single Tenant 0.7% Single & 1-4 Family 17.8% Special Use 4.7% Storage 2.2% Office 14.
Slide 16: Credit Quality
16 Credit Quality 3 consecutive quarters of improvement in NPA trend Adequate Allowance is being maintained If adjusted for impairment reserves related to the F&T acquisition, the allowance would be over 2.0% (Dollar Values in Thousands) As of As of As of As of As of As of As of 6/30/08 9/30/08 12/3
Slide 17: Commercial focus drives growth of Non-Interest Bearing Demand accounts
17 Commercial focus drives growth of Non-Interest Bearing Demand accounts Taking market share from regional/super-regional banks, but demanding relationship pricing Quickly becoming the leading community bank in Washington DC Metro Area Deposit Composition Wholesale CD's 5% Core CD's 30% Savings and
Slide 18: Superior Relationships/Net Interest Margin
18 Superior Relationships/Net Interest Margin Note: Regional peers includes publicly-traded commercial banks with Assets between $1 and $5 billion and headquartered in Washington, DC, Virginia, West Virginia, Maryland, Pennsylvania and Delaware. F&T closed August 31, 2008 3.96% 3.56% 3.25 3.75 4.25
Slide 19: Market Information – Washington, DC Metropolitan Statistical Area
19 Market Information –Washington, DC Metropolitan Statistical Area Population 6.2 Million 5th largest market in the U.S. Employment 2.9 Million Average annual job creation is 37,500 Highest in net new job growth in the U.S. over last decade Washington DC Metro area has highest concentration of fast
Slide 20: Greater Washington Economy 2009
20 Greater Washington Economy 2009 Note: Other includes Health/Education, Media Source: George Mason University, Center for Regional Analysis Total Federal Spending of 33.3% Other 7.0% Associations 2.2% Hospitality 2.0% International 4.8% Other Federal 15.2% Federal Procurement 18.1% Local Business
Slide 21: Deposit Market Share
21 Deposit Market Share Washington, D.C. Metro Area: MD- Montgomery and Prince George's; DC - Washington DC; VA - Arlington, Alexandria, Fairfax, Fairfax (City), Falls Church, Loudon, Prince William, Manassas, Manassas Park Note: Shaded companies in grey denote those companies headquartered outside
Slide 22: Capital Strength
22 Capital Strength $12.1 million of Sub-debt raised in August, 2008, $2.9 million repaid in September, 2009 $38.2 million of TARP Preferred Stock placed in December, 2008, $15 million redeemed in December, 2009 $55.2 million raised through common stock offering in September, 2009 June 30 September
Slide 23: Looking Ahead
23 Looking Ahead Focus on organic growth Take advantage of dislocation in market Increase Northern Virginia footprint Focus on relationships to increase deposit penetration Profitability Continued focus on Net Interest Margin Diligent expense control to improve Efficiency Ratio Lower effective tax r
Slide 24: Appendices
24 Appendices
Slide 25: Loan Portfolio Trends
25 Loan Portfolio Trends Focus on reducing construction as a percentage of the overall portfolio Continued effort to grow C&I and Owner Occupied loans (Dollar Values in Thousands) As of As of As of 2009 December 31, 2008 September 30, 2009 December 31, 2009 Growth Rate Loan Type % of % of % of Balan
Slide 26: Loan Portfolio by Risk Rating
26 Loan Portfolio by Risk Rating Loan portfolio and risk ratings reviewed by independent, third-party credit review quarterly (Dollar Values in Thousands) LOAN PORTFOLIO 12/31/2009 Risk Rating Balance % of Loans 1000 - Prime 2,533 $ 0.18% 2000 - Excellent 135,819 $ 9.71% 3000 - Good 516,917 $ 36.94%
Slide 27: Commercial focus drives growth of Non-interest Bearing Demand accounts
27 Commercial focus drives growth of Non-interest Bearing Demand accounts Taking business from regional/super-regional banks, but demanding relationship pricing Still have tremendous opportunity based on current market share in DC Metro Area Deposit Composition (Dollar Values in Thousands) As of As
Slide 28: Conservative Securities Portfolio
28 Portfolio has $3.9 million of net unrealized gains at December 31, 2009 No holdings of GSE equities or bank Trust Preferred or bank Trust Preferred CDOs Average life of portfolio is 3.5 years Excludes Federal Reserve and Federal Home Loan Bank stocks Conservative Securities Portfolio (Dollar Valu
Slide 29: Fidelity & Trust Acquisition
29 Fidelity & Trust Acquisition Strategic Matters: Strong cultural match Both institutions were growth oriented Both institutions were “high touch” Both institutions were “well connected” to community Financial Matters: Stock-for-stock transaction - 1,638,031 shares issued Acquisition cost - $13.1 m
Slide 30: Experienced Management Team
30 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 31: Experienced Management Team
31 Experienced Management Team Michael T. Flynn, EVP, Chief Operating Officer of Eagle Bancorp, Inc. Mr. Flynn has been with EagleBank for 6 years and has served as Chief Operating Officer of Eagle Bancorp, In c, since June 2006. He has over 37 years of experience in the banking industry in the Wash
Slide 32: Experienced Management Team
32 Experienced Management Team Martha Foulon-Tonat, EVP, Chief Lending Officer Ms. Foulon-Tonat is one of the founding officers and has been with EagleBank for 11 years. She previously served at Allegiance B ank from January 1990 to December 1997. She was Senior Vice President and Chief Lending Offi
Slide 33: Historical Balance Sheet
33 Historical Balance Sheet (Dollars Values in Thousands) 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Assets Cash and Equivalents $11,168 $6,644 $27,700 $29,435 $55,729 $33,996 $33,832 $20,142 $29,837 $117,687 Securities Available for Sale 32,398 39,439 70,675 82,581 64,098 68,050 91,140 87,11
Slide 34: Historical Income Statement
34 Historical Income Statement (Dollar Values in Thousands, except per share data) 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Total Interest Income $10,501 $14,121 $16,661 $18,403 $24,195 $36,726 $50,318 $57,077 $65,657 $84,338 Total Interest Expense 4,549 5,998 5,170 3,953 4,328 8,008 17,880