Eagle Bancorp, Inc. · NASDAQ:EGBN
Eagle Bancorp — Investor Presentation (March 2011)
44 slides from Eagle Bancorp's investor presentation, March 2011
Slide 1: March 2011
March 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 $2.1 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 – December 31, 2010
Summary Statistics – December 31, 2010 Total Assets: $2.1 billion Total Loans: $1.7 billion Total Deposits: $1.7 billion Tangible Common Equity: $177.9 million Tangible Book Value per Common Share (1): $9.03 Shares Outstanding: 19,700,387 TARP Preferred: $23.2 million Headquarters: Bethesda, Marylan
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: Financial Indicators – Regional Peer Analysis
Financial Indicators – Regional Peer Analysis Key Ratios (at or for the quarter ended December 31, 2010): EGBN Peers ■ Net Interest Margin 4.18% 3.70% ■ Efficiency Ratio 53.98% 67.39% ■ NPAs + 90 Days Past Due/Total Assets 1.53% 3.59% ■ NPLs + 90 Days Past Due/Total Loans 1.51% 4.18% ■ Allowance Loa
Slide 8: Financial Indicators – Local Peer Analysis
Financial Indicators – Local Peer Analysis EGBN Peers Loan Growth (December 31, 2009 - December 31, 2010) ■ Commercial & Industrial 18.76% 1.94% ■ Commercial Real Estate 21.23% 2.19% ■ Construction & Development 21.92% (9.03%) ■ Total Loans 19.74% 0.33% Deposit Growth (December 31, 2009 - December 3
Slide 9: Consistent Balance Sheet Growth
Consistent Balance Sheet Growth $2,250 Total Assets $2,000 $1,750 i tion) .5 % A cquis 25 T $1,500 GR din g F& N CA ( Exclu B % EG 20.0 Millions of Dollars G R N CA $1,250 EGB $1,000 : 7.4%¹ Peer CAGR $750 $500 $250 $0 05Q4 06Q1 06Q2 06Q3 06Q4 07Q1 07Q2 07Q3 07Q4 08Q1 08Q2 08Q3 08Q4 09Q1 09Q2 09Q3 0
Slide 10: Consistent Net Income Growth
Consistent Net Income Growth Net Income Available to Common TARP Dividend $5,250 $5,054 $5,000 $4,750 $4,500 9.6% R: 1 $4,250 CA G $4,000 co me 18.0% et In R: $3,750 N N n CAG EGB o Thousands of Dollars m $3,500 to Com $3,250 aila ble o me Av c et In $3,000 N N $2,750 EGB $2,500 $2,250 $2,000 Peer C
Slide 11: Pre-Tax, Pre-Provision Income
Pre-Tax, Pre-Provision Income $12,000 Quarterly Pre-Tax Pre-Provision Net Revenue $11,489 $11,000 $10,000 2 .8% $9,000 G R: 2 CA BN $8,000 EG Millions of Dollars $7,000 R: 3.3% $6,000 Peer CAG $5,000 $4,000 $3,000 $2,000 $1,000 $0 05Q4 06Q1 06Q2 06Q3 06Q4 07Q1 07Q2 07Q3 07Q4 08Q1 08Q2 08Q3 08Q4 09Q1
Slide 12: 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 13: Loan Portfolio Composition
Loan Portfolio Composition Loan Portfolio by Type Loan Portfolio by Location Home Equity Prince William Other USA Other VA 5.4% Other Consumer 1.4% 2.9% Land Loudoun 2.2% 0.4% 5.5% 1.7% Fairfax 7.7% Montgomery C&I 27.5% 24.6% Arlington Construction 2.7% 12.9% Alexandria 1.6% Residential Mortgage 1.0
Slide 14: 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 $ 123,973 $ 59,105 $ 149,250 $ 53,089 $ 7,856 $ 1,519 $ 61,560 $ 4,374 $ 460,726 27.5%
Slide 15: Diversified Commercial Real Estate Portfolio
Diversified Commercial Real Estate Portfolio Construction Loans by Type Investment CRE by Type Industrial Storage Cash Church Comm Condo Coop Education Storage 0.3% Land 0.5% 0.9% 1.1% 0.4% 1.5% 1.3% Gas Station 1.9% 2.6% Special Use 0.4% 1.5% Mixed Use Health Care 11.0% Single & 1-4 Family 1.9% 10.
Slide 16: 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 Mar 2009 Jun 2009 Sep 2009 Dec 2009 Mar 2010 Jun 2010 Sep 2010 Dec 2010 30-89 Days Past Due $ 19,740 $ 7,762 $ 11,499 $ 18,849 $ 29,336 $ 31,259 $ 28,125 $ 31,495 Nonperforming Assets: 90 or More Days
Slide 17: Deposit Composition Trends
Deposit Composition Trends Annualized (Dollar Values in Thousands) As of December 31, 2009 As of September 30, 2010 As of December 31, 2010 Growth Rate Deposit Type % of % of % of Balance Total Balance Total Balance Total % Noninterest Bearing $ 307,959 21.1% $ 380,167 23.1% $ 400,291 23.2% 30.0% In
Slide 18: Superior Relationships/Net Interest Margin
Superior Relationships/Net Interest Margin F&T closed August 31, 2008 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 who reported net interest margi
Slide 19: Capital Strength
Capital Strength (Dollars Values in Thousands) December 31, September 30, December 31, March 31, June 30, September 30, December 31, 2008 2009 2009 2010 2010 2010 2010 Total Assets $ 1,496,827 $ 1,682,773 $ 1,805,504 $ 1,832,991 $ 1,937,265 $ 2,006,146 $ 2,089,370 Total Capital $ 142,371 $ 201,516 $
Slide 20: 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 21: Largest US Markets, Job Change Dec‘09 – Dec‘10
Largest US Markets, Job Change Dec‘09 – Dec‘10 (000s) 100 Washington, DC 80 Washington + 20,500 57,500 60 40 20 0 -20 -40 -60 -80 -100 N Lo ork C nge D H B A i SF it Ph M n D a M kla Ph ap Se ix ew hi al ou lph os n tla et ia in s -O at ila oe olis la ca les ro m ne d to nt st A tle Y s a de n go o
Slide 22: Unemployment Rate - Largest US Markets January 2011
Unemployment Rate- Largest US Markets January 2011 6.0 Source: BLS, NOT Seasonally Adjusted 21
Slide 23: 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 22 Source: George Mason Un
Slide 24: Average Sales Price Percent Change Washington MSA
Average Sales Price Percent Change Washington MSA All Housing Types Annual Change Annual Change by Month % 2007 2008 2009 2010 30 22 20 20 1414 11 9 8 9 10 6 6 6 6 6 5 7 5 4 4 3 4 4 2 2 2 2 1 1 2 0 0 0 0 0 0 -2 -5 -4 -7 -10 -9 -10 -9 -12-11 -13-13 -14 -16-17 -20 -18 -18 -20 -23 -23 -24 -25 -26 -30 F
Slide 25: New Condominium Inventory
New Condominium Inventory Washington DC 6000 5000 4000 3000 2000 1000 0 2005 2006 2007 2008 2009 2010 Current Inventory = 866 Units Source: The Mayhood Co, December, 2010 24
Slide 26: 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 27: 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 28: EGBN Stock Price Performance
EGBN Stock Price Performance Price Change (%) EGBN S&P 500 NASDAQ Bank 30.00 25.00 20.00 15.00 10.00 5.00 0.00 -5.00 -10.00 -15.00 Mar-10 May-10 Jun-10 Jul-10 Oct-10 Nov-10 Dec-10 Jan-11 Feb-11 Mar-11 Sep-10 Apr-10 Aug-10 Source: SNL Financial 27
Slide 29: Appendices
Appendices 28
Slide 30: Loan Portfolio Trends
Loan Portfolio Trends Annualized (Dollar Values in Thousands) As of December 31, 2009 As of September 30, 2010 As of December 31, 2010 Growth Rate Loan Type Balance % of Total Balance % of Total Balance % of Total % Commercial and Industrial $ 346,692 24.8% $ 388,401 25.4% $ 411,744 24.6% 18.8% Comm
Slide 31: Loan Portfolio by Risk Rating
Loan Portfolio by Risk Rating (Dollar Values in Thousands) Loan Portfolio as of December 31, 2010 9000 - Doubtful 9999 - Loss 1000 - Prime 8000 - Substandard 0.1% 0.0% 0.5% Risk Rating Balance % of Loans 3.5% 2000 - Excellent 1000 - Prime $ 7,568 0.5% 7000 - Special Mention 7.3% 1.4% 2000 - Excellen
Slide 32: 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 $ 1,578 $ - $ - $ - $ - $ - $ 99 $ 535 $ 1,844 $ - $ 1,844 Prince George's - - 1,315 5
Slide 33: Conservative Securities Portfolio
Conservative Securities Portfolio (Dollar Values in Thousands) December 31, 2010 Gross Gross Estimated Amrt. Cost Amortized Unrealized Unrealized Fair % of Total Security Type Cost Gain Losses Value Securities US Treasury Securities $ - $ - $ - $ - 0.00% US Government Agency Securities 67,288 1,253
Slide 34: 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 35: 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 36: 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 37: 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 38: Experienced Management Team
Experienced Management Team Susan G. Riel, Senior EVP, Chief Operating Officer of EagleBank Ms. Riel is the Senior Executive Vice President and Chief Operating Officer of the Bank, and was formerly Chief Administrative Officer. Ms. Riel has been with the bank for 13 years. She previously served as E
Slide 39: Experienced Management Team
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 12 years. She previously served at Allegiance Bank from January 1990 to December 1997. She was Senior Vice President and Chief Lending Officer.
Slide 40: 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 41: Historical Quarterly Balance Sheet
Historical Quarterly Balance Sheet Growth Rate 4Q2010 vs (Dollar Values in Thousands) Mar 2009 Jun 2009 S ep 2009 Dec 2009 Mar 2010 Jun 2010 S ep 2010 Dec 2010 3Q2010 Assets Cash and Equivalents $37,007 $57,657 $111,688 $117,687 $100,367 $121,718 $99,412 $58,114 (41.5%) Securities Available for Sale
Slide 42: 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 43: Historical Quarterly Income Statement
Historical Quarterly Income Statement (Dollar Values in Thousands, except per share data) Growth Rate 4Q2010 vs Mar 2009 Jun 2009 S ep 2009 Dec 2009 Mar 2010 Jun 2010 S ep 2010 Dec 2010 3Q2010 Total Interest Income $ 20,067 $ 20,432 $ 21,426 $ 22,413 $ 22,508 $ 23,689 $ 24,421 $ 26,040 6.6% Total In
Slide 44: GAAP Reconciliation
GAAP Reconciliation December 31, S eptember 30, December 31, March 31, June 30, S eptember 30, December 31, (dollars in thousands except per share data) 2008 2009 2009 2010 2010 2010 2010 Common stockholders' equity $ 105,259 $ 164,975 $ 165,709 $ 170,016 $ 174,250 $ 179,764 $ 182,134 Less: Intangib