Eagle Bancorp, Inc. · NASDAQ:EGBN
Eagle Bancorp — Investor Presentation (May 2011)
45 slides from Eagle Bancorp's investor presentation, May 2011
Slide 1: May 2011 Investor Presentation
May 2011 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 rapidly growing commercial bank headquartered in Bethesda, Maryland o $2.2 billion in assets, focused on Washington, DC Metro Area with 13 branches o Commercially oriented business model with deep relationships on loan and deposit side of balance sheet o 2nd
Slide 4: History of Growth
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 plac
Slide 5: Summary Statistics – March 31, 2011
Summary Statistics – March 31, 2011 Total Assets: $2.2 billion Total Loans: $1.8 billion Total Deposits: $1.8 billion Tangible Common Equity: $183.2 million Tangible Book Value per Common Share (1): $9.25 Shares Outstanding: 19,811,532 TARP Preferred: $23.2 million Headquarters: Bethesda, Maryland M
Slide 6: EagleBank Locations
EagleBank Locations Loudoun County Montgomery County Reston Bethesda Prince George’s Tyson's Corner Washington, DC County Fairfax County Branch Locations Arlington Maryland 7 Washington, DC 5 Virginia 1 13 Alexandria In-Process 2 Total 15 5
Slide 7: Nationally Recognized Financial Performance
Nationally Recognized Financial Performance For 2010, EagleBank was ranked 62nd among the top 100 best performing community banks in the country by SNL Financial. -Only Maryland based company on the list -Ranked 9th in terms of total loan growth SNL Financial’s ranking system considers criteria such
Slide 8: Financial Indicators – Regional Peer Analysis
Financial Indicators – Regional Peer Analysis Key Ratios (at or for the quarter ended March 31, 2011): EGBN Peers ■ Net Interest Margin 4.23% 3.65% ■ Efficiency Ratio 58.57% 68.96% ■ NPAs + 90 Days Past Due/Total Assets 1.68% 3.36% ■ NPLs + 90 Days Past Due/Total Loans 1.85% 3.24% ■ Allowance Loan L
Slide 9: Financial Indicators – Local Peer Analysis
Financial Indicators – Local Peer Analysis EGBN Peers Loan Growth (March 31, 2010 - March 31, 2011) ■ Commercial & Industrial 22.83% 9.60% ■ Commercial Real Estate 17.87% 1.52% ■ Construction & Development 40.62% (9.86%) ■ Total Loans 25.42% 0.34% Deposit Growth (March 31, 2010 - March 31, 2011) ■ D
Slide 10: Consistent Balance Sheet Growth
Consistent Balance Sheet Growth $2,250 Total Assets $2,000 $1,750 $1,500 Millions of Dollars $1,250 $1,000 $750 $500 $250 $0 06Q1 06Q2 06Q3 06Q4 07Q1 07Q2 07Q3 07Q4 08Q1 08Q2 08Q3 08Q4 09Q1 09Q2 09Q3 09Q4 10Q1 10Q2 10Q3 10Q4 11Q1 (1) Regional peers includes publicly-traded commercial banks with asse
Slide 11: Consistent Net Income Growth
Consistent Net Income Growth Net Income Available to Common TARP Dividend $5,250 $5,136 $5,000 $4,750 $4,500 $4,250 $4,000 $3,750 Thousands of Dollars $3,500 $3,250 $3,000 $2,750 $2,500 $2,250 $2,000 $1,750 $1,500 $1,250 $1,000 06Q1 06Q2 06Q3 06Q4 07Q1 07Q2 07Q3 07Q4 08Q1 08Q2 08Q3 08Q4 09Q1 09Q2 09
Slide 12: Pre-Tax, Pre-Provision Income
Pre-Tax, Pre-Provision Income $12,000 Quarterly Pre-Tax Pre-Provision Net Revenue $11,000 $10,126 $10,000 $9,000 $8,000 Millions of Dollars $7,000 $6,000 $5,000 $4,000 $3,000 $2,000 $1,000 $0 06Q1 06Q2 06Q3 06Q4 07Q1 07Q2 07Q3 07Q4 08Q1 08Q2 08Q3 08Q4 09Q1 09Q2 09Q3 09Q4 10Q1 10Q2 10Q3 10Q4 11Q1 (1)
Slide 13: Deposit Market Share
Deposit Market Share WASHINGTON, DC METROPOLITAN AREA (Dollar Values in Thousands) Local Headquarters Branches June 30,2009 June 30,2010 Annual 2010 Rank Rank Company Name City State in List Balance Balance Growth Market Share 1 1 Capital One McLean VA 217 $ 30,665,416 $ 26,627,589 -13.17% 19.25% 2
Slide 14: Loan Portfolio Composition
Loan Portfolio Composition Loan Portfolio by Type Loan Portfolio by Location Home Equity Prince William Other USA Other Consumer Other VA Land 4.9% 1.2% 3.5% 0.3% Loudoun 2.2% 5.1% 1.4% Fairfax 7.8% Montgomery C&I 28.1% Construction 25.7% Arlington 12.6% 2.2% Alexandria 1.6% Residential Mortgage 1.1
Slide 15: Geographic Detail of Loan Portfolio
Geographic Detail of Loan Portfolio (Dollar Values in Thousands) Owner Investment Residential Other County C&I Occupied CRE CRE Construction Land Mortgage Home Equity Consumer TOTAL % of Total Maryland Montgomery $ 158,048 $ 60,844 $ 158,546 $ 43,533 $ 9,705 $ 3,856 $ 60,386 $ 4,214 $ 499,132 27.9%
Slide 16: Diversified Commercial Real Estate Portfolio
Diversified Commercial Real Estate Portfolio Construction Loans by Type Investment CRE by Type Comm Condo Unsecured Cash Church Comm Condo Coop Education Storage Industrial Storage 0.2% 0.8% 0.4% 0.1% Land 0.3% 1.3% 1.7% 2.3% 1.6% 1.4% 2.6% Special Use Gas Station 0.6% 0.3% Mixed Use Single & 1-4 Fa
Slide 17: Credit Quality Trends
Credit Quality Trends (Dollars Values in Thousands) As of As of As of As of As of As of As of As of Jun 2009 Sep 2009 Dec 2009 Mar 2010 Jun 2010 Sep 2010 Dec 2010 Mar 2011 30-89 Days Past Due $ 7,762 $ 11,499 $ 18,849 $ 29,336 $ 31,259 $ 28,125 $ 31,495 $ 25,744 Nonperforming Assets: 90 or More Days
Slide 18: Deposit Composition Trends
Deposit Composition Trends Annual Last 3 Months (Dollar Values in Thousands) As of March 31, 2010 As of December 31, 2010 As of March 31, 2011 Growth Rate (Annualized) Deposit Type % of % of % of Balance Total Balance Total Balance Total % % Noninterest Bearing $ 291,714 19.8% $ 400,291 23.2% $ 402,
Slide 19: Superior Relationships/Net Interest Margin
Superior Relationships/Net Interest Margin EGBN Peers 5.25% F&T closed August 31, 2008 4.75% Net Interest Margin (%) 4.23% 4.25% 3.75% 3.70% 3.25% 1Q2006 2Q2006 3Q2006 4Q2006 1Q2007 2Q2007 3Q2007 4Q2007 1Q2008 2Q2008 3Q2008 4Q2008 1Q2009 2Q2009 3Q2009 4Q2009 1Q2010 2Q2010 3Q2010 4Q2010 1Q2011 Note:
Slide 20: Capital Strength
Capital Strength (Dollars Values in Thousands) September 30, December 31, March 31, June 30, September 30, December 31, March 31, 2009 2009 2010 2010 2010 2010 2011 Total Assets $ 1,682,773 $ 1,805,504 $ 1,832,991 $ 1,937,265 $ 2,006,146 $ 2,089,370 $ 2,186,268 Total Capital $ 201,516 $ 188,321 $ 19
Slide 21: Market Information – Washington, DC Metropolitan Statistical Area
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 39,500 Highest in net new job growth in the U.S. over last decade Washington DC Metro area has highest concentration of fastest
Slide 22: Largest US Markets, Job Change Feb '10 – Feb '11
Largest US Markets, Job Change Feb‘10 – Feb’11 (000s) Washington, DC +74,600 DC Washington, 100 Washington + 20,500 57,500 80 60 40 20 0 -20 -40 -60 -80 -100 N Lo ork C nge D H B A SF it Ph M n D a M kla Ph apo Se x ew hi al ou lph os n tla et ia in s -O at ila oe la ca les ro m ne d to nt st A tl e
Slide 23: Unemployment Rate - Largest US Markets
22 9.5% US Unemployment Rate- Largest US Markets it tro le s De nge sA Lo i am Mi ta lan d At aklan -O SF le February 2011 att Se go ic a hia Ch delp ila Ph ork Y w Ne nix oe Ph ton us Ho s lla Da n Source: BLS, NOT Seasonally Adjusted sto olis Bo p ea n nn o Mi ingt sh Wa 5.9 12 10 8 6 4 2 0
Slide 24: Greater Washington Economy - 2010
Greater Washington Economy - 2010 Total Federal Spending = 34.9% of GRP Other Federal International 15.7% 4.3% Hospitality 2.2% Associations 2.0% Federal Procurement Non-Local Business 19.2% 12.0% Other 8.0% Local Business 36.6% Note: Other includes Health/Education, Media 23 Source: George Mason Un
Slide 25: 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 30 22 20 20 14 14 11 9 8 9 10 6 6 6 4 6 5 4 7 5 4 2 3 2 2 1 3 0 0 0 -5 -4 -10 -9 -10 -9 -7 -12-11-13-13 -14 -20 -16-17 -18 -20-18 -23 -23 -24 -25 -26 -30 Source: MRIS, GMU C
Slide 26: New Condominium Inventory
New Condominium Inventory Washington DC 6000 5000 4000 3000 2000 1000 0 2005 2006 2007 2008 2009 2010 Current Inventory = 714 Units Source: The Mayhood Co, October, 2010 25
Slide 27: Looking Ahead
Looking Ahead Focus on organic growth o Take advantage of dislocation in market o Hire seasoned lenders o Increase Northern Virginia footprint o Focus on relationships to increase deposit penetration Profitability o Continued focus on Net Interest Margin o Grow noninterest components of revenue o Di
Slide 28: 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 – 17% Insider Ownership Exceptional Asset Quality Record Conservati
Slide 29: EGBN Stock Price Performance
EGBN Stock Price Performance Price Change (%) EGBN S&P 500 NASDAQ Bank 25.00 20.00 15.00 10.00 5.00 0.00 -5.00 -10.00 -15.00 -20.00 -25.00 May-10 Jun-10 Jul-10 Oct-10 Nov-10 Dec-10 Jan-11 Feb-11 Mar-11 May-11 Sep-10 Aug-10 Apr-11 Source: SNL Financial 28
Slide 30: Appendices
Appendices 29
Slide 31: Loan Portfolio Trends
Loan Portfolio Trends Last 3 Annual Growth Months (Dollar Values in Thousands) As of March 31, 2010 As of December 31, 2010 As of March 31, 2011 Rate (Annualized) Loan Type Balance % of Total Balance % of Total Balance % of Total % % Commercial and Industrial $ 360,865 25.3% $ 411,744 24.6% $ 443,25
Slide 32: Loan Portfolio by Risk Rating
Loan Portfolio by Risk Rating (Dollar Values in Thousands) Loan Portfolio as of March 31, 2011 8000 - Substandard 9999 - Loss 9000 - Doubtful 1000 - Prime 0.0% 3.1% 0.0% 0.3% 7000 - Special Mention Risk Rating Balance % of Loans 1.5% 2000 - Excellent 7.1% 1000 - Prime $ 5,365 0.3% 6000 - Watch 1.7%
Slide 33: Geographic Detail of NPA's
Geographic Detail of NPA’s (Dollar Values in Thousands) Owner Investment Residential Home Other TOTAL TOTAL County C&I Occupied CRE CRE Mortgage Construction Land Equity Consumer NPLs OREO NPAs Maryland Montgomery $ 2,520 $ - $ - $ - $ - $ 535 $ 99 $ - $ 3,154 $ - $ 3,154 Prince George's 22 295 1,20
Slide 34: Conservative Securities Portfolio
Conservative Securities Portfolio (Dollar Values in Thousands) March 31, 2011 Gross Gross Estimated Amrt. Cost Amortized Unrealized Unrealized Fair % of Total Security Type Cost Gain Losses Value Securities US Treasury Securities $ - $ - $ - $ - 0.0% US Government Agency Securities 70,441 971 192 71
Slide 35: Proven Acquisition Capabilities
Proven Acquisition Capabilities Evaluated many acquisition opportunities in 12 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 36: Fidelity & Trust Acquisition
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 mill
Slide 37: Experienced Senior Management Team
Experienced Senior Management Team Years Years in with Name Title/Function Banking EGBN Ronald D. Paul Chairman, President & CEO 23 13 Robert P. Pincus Vice Chairman 38 3 Michael T. Flynn EVP & COO - Eagle Bancorp 40 7 Susan G. Riel Sr. EVP & COO - EagleBank 35 13 Thomas D. Murphy President - Commun
Slide 38: 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 of
Slide 39: 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 12 years. She previously served as Executive Vice
Slide 40: Experienced Management Team
Experienced Management Team Robert R. Hoffmann, EVP, Interim Chief Lending Officer Mr. Hoffman, Executive Vice President, joined EagleBank in 2003 as Senior Commercial Lender and became Chief Administrative Officer-Lending in 2009. Mr. Hoffmann was a Commercial Lending Officer for Chevy Chase Bank f
Slide 41: Historical Balance Sheet
Historical Balance Sheet 5 Year Compound 1 Year Growth Growth (Dollar Values in Thousands) 2006 2007 2008 2009 2010 Rate Rate Assets Cash and Equivalents $33,832 $20,142 $29,837 $117,687 $58,114 11.3% (50.6%) Securities Available for Sale 91,140 87,117 169,079 245,644 237,576 28.4% (3.3%) Total Cash
Slide 42: Historical Quarterly Balance Sheet
Historical Quarterly Balance Sheet Growth Rate 1Q2011 vs (Dollar Values in Thousands) Jun 2009 S ep 2009 Dec 2009 Mar 2010 Jun 2010 S ep 2010 Dec 2010 Mar 2011 4Q2010 Assets Cash and Equivalents $57,657 $111,688 $117,687 $100,367 $121,718 $99,412 $58,114 $107,165 84.4% Securities Available for Sale
Slide 43: Historical Income Statement
Historical Income Statement (Dollar Values in Thousands, except per share data) 1 Year Growth 2006 2007 2008 2009 2010 Rate Total Interest Income $ 50,318 $ 57,077 $ 65,657 $ 84,338 $ 96,658 14.6% Total Interest Expense 17,880 23,729 23,676 24,809 19,832 (20.1%) Net Interest Income 32,438 33,348 41,
Slide 44: Historical Quarterly Income Statement
Historical Quarterly Income Statement (Dollar Values in Thousands, except per share data) Growth Rate 1Q2011 vs Jun 2009 S ep 2009 Dec 2009 Mar 2010 Jun 2010 S ep 2010 Dec 2010 Mar 2011 4Q2010 Total Interest Income $ 20,432 $ 21,426 $ 22,413 $ 22,508 $ 23,689 $ 24,421 $ 26,040 $ 26,296 1.0% Total In
Slide 45: GAAP Reconciliation
GAAP Reconciliation S eptember 30, December 31, March 31, June 30, S eptember 30, December 31, March 31, (dollars in thousands except per share data) 2009 2009 2010 2010 2010 2010 2011 Common stockholders' equity $ 164,975 $ 165,709 $ 170,016 $ 174,250 $ 179,764 $ 182,134 $ 187,490 Less: Intangible