Eagle Bancorp
Annual Report 2009

Plain-text annual report

LoyaL ty. Community. trust. The EagleBank Story 2 0 0 9 A n n uAl R e p oR t Loyalty The relationships we build and the loyalty we earn help make EagleBank what it is today. To us, loyalty is more than a word. It is a pledge to provide quality financial services and successful solutions. It is also a dedication to being the leading community bank in our market, respected for our banking knowledge, business ethics, and corporate citizenship. Community Banks, to a large degree, are reflections of the communities they serve. We realize that the economic growth and quality of life within these communities have a significant impact on our clients’ success as well as our own. EagleBank works hand-in-hand with customers to meet their banking needs and to make our area a better place to live. Trust In a challenging financial marketplace, where can a business place its trust? In a bank that has the resilience and strength, not only to weather a financial storm, but to take advantage of the opportunities that it presents. Customers trust EagleBank’s ability to stand by them through growth and change, with the local presence and accessibility that is our hallmark. 3 To Our Shareholders It is with great pleasure that we can report to you that in 2009, consideration by the Board, in December, 2009, we made Eagle Bancorp, Inc. had a record-breaking year despite the a substantial redemption of $15 million of the TARP preferred difficult economic times we are experiencing both locally and stock. The approval of this transaction by the Federal Reserve nationally. The results included $10.4 million of net income, which is another indication of the strength of the Company. In addition, was a 40% increase over the prior year, significantly strengthening the partial redemption will result in a reduction in the dividends our capital, and continuing the expansion of our size and market due to the Treasury. position. We ended the year with total capital of $188 million and total assets of $1.8 billion. While we have achieved growth and profitability in many prior years, 2009 was remarkable for our company because all this was accomplished during one of the worst and deepest recessions that the US and global economies have ever experienced. The year was especially difficult for commercial banks and other members of the financial services industry. While many analysts feel that the darkest hours for the US economy occurred during late 2008, the effects were felt throughout 2009. Not only were we dealing with the impact on the national and local economy, but also with negative sentiment towards financial services firms from a confused public and undeserved backlash from Capitol Hill. Another item of major focus during the recession has been asset quality, and EagleBank was prepared for this. Our traditional underwriting standards have resulted in a below average level of problem loans, when compared to other commercial banks across the country, whether community banks, regional or national institutions. In addition, during this time, the Bank has taken an active approach to early identification of problem loans and an aggressive approach to those loans which have become stressed. This strategy has allowed the Bank to achieve resolution and collection of many of the problems, rather than letting these loans become restructured loans or charge-offs. Net charge-offs for the year were a mere 0.42% of average loans. In addition, the early and realistic identification of problem loans has Our capital position was solid as we entered 2009, because of been acknowledged and provided for in the allowance for credit the $38.2 million of preferred stock placed with the US Treasury losses, which is adequate for the composition of the portfolio. under the TARP program in December 2008. This event As we worked through the early stages of the recession and our enhanced our ability to grow the balance sheet and meet the portfolio, our level of non-performing assets peaked in the 1st credit needs of current and new customers in the Washington quarter of 2009 at 3.33% of total assets. We have been able to Metropolitan Area. This was the original intention of the TARP achieve improvement in our portfolio quality and reductions in program in which we proudly participated. Our strong capital non-performing assets in each subsequent quarter, with the ratio levels allowed us to increase our loan portfolio by over $130 reduced to 1.50% by year end. We are confident that the problem million during the year. Given the importance of having a strong loans have been properly identified and reserved for adequately. capital base, when the equity markets became more receptive in mid-year, Eagle Bancorp chose to raise $55.2 million through a common stock offering in September, 2009. This was a very strong endorsement of the Company as the stock was purchased by over 60 new institutional investors. Because of the very positive response to the oversubscribed offering, the Company was able to raise more funds than initially forecast. The amount of the offering allowed for the elimination of 50% of the warrants issued to the Treasury under the TARP program. After further analysis and The Company’s long-term focus on asset quality has also been reflected in the investment portfolio. Our holdings have always been in investment grade securities and obligations of sound correspondent banks. The portfolio is highly liquid, and of a relatively short duration. During the year, we were able to realize some capital gains, while repositioning the portfolio for the current and expected interest rate environments. At year end, our securities portfolio had an unrealized gain of $3.9 million. 4 Our net interest margin for the year was 3.85%, which is among additional convenience for Montgomery County customers. the highest in the industry. This margin was achieved as we This branch is located in a new mixed-use development in an constantly monitored and controlled our cost of funds to benefit area with very strong demographics. We are excited about the from the impact of Federal Reserve policies on interest rates, while opportunity for both commercial and retail business in this market. at the same time maintaining asset yields through a disciplined Additionally, we expanded the staff, products and service level approach to loan pricing. Active management of the Bank’s of the International Banking Department, which saw significant securities portfolio was also an important factor in preserving the growth during the year. yield and margin. Early in 2009, the entire banking industry came under attack by As previously mentioned, the Bank achieved excellent growth in the national and local media, and often banks were painted as the our loan and deposit levels. This is a result of concerted efforts by scapegoat for the nation’s economic woes. Our management team our branch personnel, lending officers and business development was active in reaching out to local and national political leaders to officers to attract new clients to the Bank, and strengthen the make them understand the role played by EagleBank and other relationships with valued long-term customers. Our marketing community banks in the economy. These messages have been efforts during the year emphasized our ability to creatively meet heard and many more people in our community and on Capitol the customers’ banking needs, and not just sell products. At a Hill understand the key role played by community banks in fueling time when many national and regional banks were curtailing their job growth and credit. lending activities, we were providing customized credit solutions to our clients. Because we were able to meet all of our new and existing clients’ needs, including electronic banking and treasury management services, and because of an effective referral network, we were able to expand relationships and saw excellent growth in deposit levels, 50% on average, during the year. In addition to our focus on our own business, EagleBank will always be committed to giving back to the community. The EagleBank Bowl, held on December 29th, was a tremendous success, bringing an exciting event to thousands of college football fans here in the Washington, DC area and to over 3 million national viewers on ESPN. More importantly, the game We are proud that our strong capital position enabled us to supported the Wounded Warrior Project, which assists severely increase our average loan portfolio by 44% during the year. injured servicemen returning to the US from combat duty in Iraq We remained an active lender in the Washington Metropolitan and Afghanistan. Our 5th Annual EagleBank Fight Against Breast Area, and met the needs of our borrowers. Throughout the year, Cancer Golf Tournament was sold out once again and raised over EagleBank was able to attract new customers and acquire market $150,000, which is donated locally to research and treatment share as many of our competitors were contracting. Just as facilities involved with this disease that impacts so many. We are important, we continue to offer our customers access to our senior pleased that our effort in these charitable activities has been well- level decision makers, who are locally based, who understand recognized and received by the entire community. the Washington Metropolitan market, and who understand and respond to the customers’ needs rather than providing a “cookie cutter” response. While 2009 was a very good year, we are very well-positioned for continued growth in 2010 and beyond. Our size and capital strength allow us to be an active lender in both the business and During 2009, we began to see the results of our entrée into real estate markets throughout the Washington Metropolitan Area. Northern Virginia. We continue to successfully develop new Our commitment to service and recognizing the needs of our business and customer relationships in that market thanks to our community will continue to result in strong relationships with each growing lending and banking team in Virginia. Our 14th branch, of our customers. We appreciate your support and look forward to located in Potomac, Maryland, opened in November—providing continued success. Sincerely, Ronald D. Paul Chairman & CEO Robert P. Pincus Vice Chairman 5 Six-Year Summary of Selected Financial Data The following table shows selected historical consolidated financial data for Eagle Bancorp (“the Company”). It should be read in conjunction with the Company’s audited consolidated financial statements appearing elsewhere. YEAR ENDED DECEMBER 31, (dollars in thousands except per-share data) 2009 2008 2007 2006 2005 2004 Balance Sheet - Period End Securities Loans held for sale Loans Allowance for credit losses Intangible assets, net Total assets Deposits Borrowings Subordinated debt Total liabilities Preferred stockholders’ equity Common stockholders’ equity Total stockholders’ equity Tangible common equity Statement of Operations Interest income Interest expense Provision for credit losses Noninterest income Noninterest expense Income before taxes Income tax expense Net income Preferred dividends Net income available to common shareholders Per Common Share Data (1) Net income, basic Net income, diluted Dividends declared Book value Tangible book value Common shares outstanding Weighted average common shares outstanding Ratios Net interest margin Efficiency ratio (2) Return on average assets Return on average common equity Total capital (to risk weighted assets) Tier 1 capital (to risk weighted assets) Tier 1 capital (to average assets) $ 245,644 1,550 1,399,311 20,619 4,379 1,805,504 1,460,274 150,090 9,300 1,617,183 22,612 165,709 188,321 161,330 $ 84,338 24,809 7,669 7,297 42,773 16,384 5,965 10,419 2,307 8,112 $ 169,079 2,718 1,265,640 18,403 2,533 1,496,827 1,129,380 215,952 12,150 1,354,456 36,312 106,059 142,371 102,568 $ 65,657 23,676 3,979 4,366 30,817 11,551 4,123 7,428 177 7,251 $ 87,117 2,177 716,677 8,037 236 846,400 630,936 128,408 - 765,234 - 81,166 81,166 80,930 $ 57,077 23,729 1,643 5,186 24,921 11,970 4,269 7,701 - 7,701 $ 91,140 2,157 625,773 7,373 255 773,451 628,515 68,064 - 700,535 - 72,916 72,916 72,661 $ 50,318 17,880 1,745 3,846 21,824 12,715 4,690 8,025 - 8,025 $ 68,050 2,924 549,212 5,985 168 672,252 568,893 32,139 - 607,288 - 64,964 64,964 64,796 $ 36,726 8,008 1,843 3,998 18,960 11,913 4,369 7,544 - 7,544 $ 64,098 2,208 415,509 4,240 - 553,453 462,287 30,316 - 494,919 - 58,534 58,534 58,534 $ 24,195 4,328 675 3,753 14,952 7,993 2,906 5,087 - 5,087 $ 0.55 0.55 - 8.48 8.26 19,534,226 14,643,294 $ 0.63 0.62 0.11 8.19 7.92 12,714,355 11,556,569 $ 0.73 0.71 0.22 7.59 7.57 10,693,447 10,531,236 $ 0.77 0.74 0.21 6.99 6.97 10,425,870 10,373,080 $ 0.74 0.70 0.20 6.32 6.31 10,274,394 10,177,948 $ 0.51 0.48 - 5.80 5.80 10,078,712 10,062,368 3.85% 64.01% 0.65% 6.60% 13.57% 11.82% 10.29% 4.05% 66.49% 0.69% 8.05% 11.93% 9.78% 9.22% 4.37% 66.54% 0.96% 10.03% 11.21% 10.20% 9.46% 4.81% 60.15% 1.13% 11.63% 11.91% 10.82% 9.67% 4.99% 57.95% 1.24% 12.25% 12.05% 11.04% 9.94% 4.35% 63.30% 1.04% 9.16% 13.45% 12.52% 11.98% Asset Quality Nonperforming assets and loans 90+ past due Nonperforming assets and loans 90+ past due to total assets Allowance for credit losses to loans Allowance for credit losses to nonperforming assets Net charge-offs Net charge-offs to average loans $ 27,131 $ 26,366 $ 5,324 $ 2,013 $ 491 $ 156 1.50% 1.47% 76.00% $ 5,454 0.42% 1.76% 1.45% 69.80% $ 1,123 0.12% 0.63% 1.12% 150.96% $ 979 0.15% 0.26% 1.18% 366.27% $ 357 0.06% 0.07% 1.09% 1218.94% $ 98 0.02% 0.03% 1.02% 2717.95% $ 115 0.03% (1) Presented giving retroactive effect to the 10% stock dividend paid on the common stock on October 1, 2008 and the stock splits in the form of 30% dividend on the common stock paid on July 5, 2006 and February 28, 2005. In July 2008, the Company discontinued the payment of its quarterly cash dividend. (2) Computed by dividing noninterest expense by the sum of net interest income and noninterest income. M a r y l a n d ad v i s o r y B o a r d Anthony A. Cantalupo, Jr., Esquire The Cantalupo Law Group, PA Benson Klein Ward & Klein, Chartered Larry E. Walker The Walker Group Lisa J. Cines Aronson & Company Maureen West McCarthy, CPA Snyder Cohn, PC Jeffrey E. Weintraub, CPA Goodman & Company Albert A. D’Alessandro, Chair Financial Solutions, LLC Elsie L. Reid Furey, Doolan & Abell, LLP Marc Wertheimer, Esquire Wertheimer & Ciazza, LLC Jay A. Eichberg Eichberg Construction Co. MARYLAND7 LoyaLty. Community. trust. The EagleBank Story in the Year 2009. The EagleBank story in 2009 is one of loyalty earned, communities served, and trust that enabled the Bank to exceed expectations. Even as we strengthened our bond with longtime customers, employees, and shareholders, we earned new loyalties, built new relationships, and continued to contribute to the vitality of the area where we live and work. Now, more than ever, we are able to compete with larger Meeting the needs of local businesses and representing financial institutions and offer customers expanded the Bank in Montgomery County, Maryland, Washington, products and services. With a presence in three vibrant DC, and Northern Virginia, is the mission of the three markets in the Washington Metropolitan Area, we have EagleBank Advisory Boards created in 2009. The Boards the stability, strength, and experience to create and seize are comprised of talented professionals, respected in their opportunities. EagleBank’s achievements in 2009 reflect fields, who provide us with their expertise and take the the Bank’s ability to keep pace with an area that is fast EagleBank story to the markets we serve. becoming a major financial hub. Strengthening our International Banking Department was In 2009, EagleBank experienced solid financial results and a focus in 2009, as we added new products and services remarkable growth. Our profits increased 40% over 2008 to serve the international community and customers and our total assets grew 21% to more than $1.8 billion. traveling abroad. Always looking for ways to make our Reaping the rewards of our seamless merger with Fidelity products more competitive and convenient, we added & Trust Bank in 2008, we were able to realize cost savings new checking accounts for our customers’ business and by streamlining and consolidating our operations. We personal banking needs. We also expanded our branch were also able to attract institutional investors nationwide network in Montgomery County with our Park Potomac to share and contribute to our success. These measures, location, just off Interstate 270 in Potomac, Maryland. as well as our enhanced ability to meet the needs of our growing customer base, are effective safeguards against the challenges that continue in the banking industry and global economy. The EagleBank story in 2009 is one of corporate citizenship and giving back to the communities that have rewarded us with their loyalty and trust. Whether it is the efforts of individual employees or the Bank’s sponsorship When a team of the Bank’s senior executives took the of events like the EagleBank Bowl, EagleBank is proud EagleBank story to institutional investors in the fall of to play an active role in improving our area’s quality of 2009, it represented a departure from the retail-oriented, life. Looking ahead, we have set the stage for further locally focused stock offerings used in the past. In growth, community involvement, and taking advantage of successfully raising $55 million in new capital, the team opportunities for our clients and ourselves. demonstrated the Bank’s ability to exceed all regulatory capital expectations in addition to its readiness to fulfill the diverse banking requirements of the business community. 8 Earning LoyaLty with Exceptional Service & Enhanced Products Increased capital gives EagleBank the ability to improve In 2009, EagleBank’s International Banking Department its financial, physical, and human resources. The three began offering the benefit of Foreign Currency Exchange. Advisory Boards created in 2009 provide us with greater We facilitate the exchange and guarantee delivery within knowledge to grow strategically. Northern Virginia, with an 48 hours of placing the order. Customers can also save EagleBank branch in Tysons Corner, is an area especially time and money by ordering Foreign Currency Travelers targeted for further expansion. The market insight and Cheques at our branch locations. These new banking expertise of our Northern Virginia Advisory Board assists products reflect EagleBank’s desire to provide personal us in achieving this goal. Likewise, our Advisory Boards in and business banking solutions to the international Montgomery County, Maryland and Washington, DC help community, including embassies, their employees and us expand and develop new relationships with various affiliates, and local companies doing business abroad. segments of the business community, from health care and non-profits to retail and real estate. Providing competitive and convenient banking products and services is a constant goal at EagleBank. In 2009, EagleBank’s drive to strengthen our presence in our we introduced two new checking accounts; a Small respective markets is also evidenced by our redesigned Business Checking Account, ideal for growing businesses, Commercial and Industrial Lending Department. Dedicated and Eagle Checking for personal banking. Both offer team leaders in each market know the area and have the no monthly maintenance fee and no minimum balance experience, knowledge, and ability to customize loans and requirement, free bill pay and eStatement Service with banking products. EagleBank also offers our commercial online banking, and free use of EagleBank ATMs. lending clients the access to top management and local decision-making that can turn a business opportunity into a reality. As EagleBank’s presence and ability to serve our three markets increases, so does our commitment to earning customer loyalty and trust. We know that if our customers As a leading community bank, EagleBank is able to grow succeed, so will we, and we derive satisfaction in achieving both loans and deposits and weather business cycles our shared goals. profitably. Maintaining credit and asset quality is critical to our success. Credit specialists in our Credit Administration Department understand the market and work proactively with customers. Through solid underwriting, relationship building, and local accessibility, EagleBank maintains a strong credit culture and provides superior service. n o r T H Er n v i r Gi n i a ad v i s o r y B o a r d Douglas C. Boggs, Esquire Patton Boggs Harry M. Glazer Kelley Drye & Warren, LLP Kristina Bouweiri Reston Limousine Enrico C. Cecchi IDI Group Companies Albert A. D’Alessandro, Chair Financial Solutions, LLC Richard C. Thomas Clark’s Litho Steven M. Wiltse Argy, Wiltse & Robinson, P.C. VIRGINIAWa sHi nG T o n, dC ad v i s o r y B o a r d Rollin M. Bell, III PCM Construction Donald Blanchon Whitman-Walker Clinic Gregory J. Casten OceanPro Industries, LTD Barry F. DesRoches Vintage Settlement Services Earl Segal, Esquire Newmark Knight Frank Barry N. Dickstein Blackstreet Capital Management, LLC Zeid Masri SilverHaze Partners, LLC Albert A. D’Alessandro, Chair Financial Solutions, LLC Stefan C. Nicholas, Esquire Jackson and Campbell, P.C. WASHINGTON, DC11 Giving Back to the Communities Where We Live & Work Whether assembling meals for HIV/AIDS patients with EagleBank Foundation Fight Breast Cancer Golf Classic. Food & Friends in Washington, DC, helping a needy family The tournament was held on October 12, 2009 at in Montgomery County, Maryland build their home with Woodmont Country Club in Montgomery County. Despite Habitat for Humanity, or mentoring a developmentally the difficulties in the economy, more golfers than ever disabled client of Alexandria, Virginia’s Community participated and more money was raised to benefit local Services Board, EagleBank employees participate in health care facilities’ fight against breast cancer. many area philanthropic efforts. The dedication that these individuals bring to their banking relationships is complemented by the commitment they have to the communities where they live and work. Taking the next step against cancer, The EagleBank Foundation partnered with the GW Cancer Institute to host the 2009 Annual Cancer Survivorship Symposium. Held at The George Washington University’s Marvin Center on Just as EagleBank employees proudly contribute to the October 15, 2009, the symposium addressed the needs of area’s quality of life, so does the Bank dedicate itself to cancer survivors and how to improve their quality of life. a leadership role in corporate citizenship. EagleBank’s financial stability and strength enabled the Bank to devote time and resources to its second annual sponsorship of the EagleBank Bowl. Held on December 29, 2009 at Washington, DC’s historic RFK Stadium, the Bowl game between UCLA and Temple was attended by more than 23,000 fans. The beneficiary of the 2009 EagleBank Bowl was the Wounded Warrior Project established to honor and meet the needs of our severely injured war veterans. October 3, 2009 was a busy day for giving back to the community. Many EagleBank employees participated in the eighth annual Ronald D. Paul Companies Kidney Walk, founded by EagleBank’s Chairman Ronald Paul, which raised over $170,000 for the National Kidney Foundation. Also, on October 3, EagleBank employees volunteered at the Annual Taste of Bethesda event to benefit the Bethesda Urban Partnership. The EagleBank Bowl also benefits local businesses and EagleBank views its commitment to corporate citizenship stimulates the economy in the Nation’s Capital. as a vital part of community banking. As members of the A shared commitment to the community was evident when the Bank and community members worked together to raise over $150,000 in the fifth annual community it serves, the Bank and its employees are committed to making our area a better place to live. Building trust as We Build an Exciting Future The EagleBank story of earning loyalty, serving the community, and building trust continues with confidence into 2010. With financial strength, experience, and market knowledge, we are able to turn challenges into opportunities. As a leading community bank, EagleBank is well-positioned to fulfill the needs of customers, satisfy shareholders, and support the communities that contribute to our success. WASHINGTON, DC12 EagleBank Mission Statement EagleBank is committed to providing quality financial services and successful solutions that consistently achieve a high degree of customer satisfaction. We will distinguish our company from other institutions in our ability to provide superior service while creating stockholder value, building our community, and encouraging the growth and well-being of our people. We are dedicated to being the leading community bank in our market, recognized and respected for our banking knowledge, customer service, business ethics, and corporate citizenship. The EagleBank Pledge We pledge to our customers, and to each other, to abide by the following five components of quality customer service. Competency We will know our job and how to deliver to you the best in banking products and services. Appreciation We will consistently act in a manner that demonstrates to you that we value you as a customer of EagleBank. We understand that you are the lifeblood of our organization and we will demonstrate that to you in every interaction. Reliability We will do what we say we are going to do. We will do it when we say we are going to do it. We will do it right the first time. Responsiveness We will listen carefully to your needs and we will act promptly to respond to those needs. Ethics We will deliver the highest level of customer service with the highest level of business ethics. 13 Board of Directors Ronald D. Paul * Chairman, President & CEO of Eagle Bancorp, Inc. Bruce H. Lee ** President of Lee Development Group Chairman & CEO of EagleBank President of Ronald D. Paul Companies Robert P. Pincus * Vice Chairman of Eagle Bancorp, Inc. Vice Chairman of EagleBank Philip N. Margolius * Principal of the Margolius Law Firm Norman R. Pozez * Chairman & Chief Executive Officer of Chairman of Blackstreet Capital Management & Milestone Uniwest Companies Merchant Partners, LLC Leslie M. Alperstein, Ph.D. * President of Washington Analysis, LLC Arthur H. Blitz ** Principal of Paley, Rothman, Goldstein, Rosenberg, Eig & Cooper, Chartered Dudley C. Dworken * Managing Partner, JDJ Investments, LLC Steven L. Fanaroff ** Vice President & Chief Financial Officer of Magruder Holdings, Inc. Harvey M. Goodman * President of Goodman-Gable-Gould/Adjusters International Neal R. Gross * Founder, Chairman & Chief Executive Officer of Neal R. Gross & Company Benson Klein ** Principal of Ward & Klein, Chartered Susan Lacz ** Principal & Chief Executive Officer of Ridgewells Caterers Thomas W. Roberson ** Partner of Montouri & Roberson Donald R. Rogers * Principal of Shulman, Rogers, Gandal, Pordy & Ecker, P.A. James A. Soltesz, P.E. ** President & Chief Executive Officer of Loiederman Soltesz Associates, Inc. Benjamin M. Soto, Esquire ** President & Chief Executive Officer of Premium Title & Escrow, LLC Worthington H. Talcott, Jr. ** Principal of Shulman, Rogers, Gandal, Pordy & Ecker, P.A. Leland M. Weinstein * President of Syscom Services, Inc. Eric H. West ** Founding Principal of West, Lane & Schlager Realty Advisors, LLC * Director of EagleBank and Eagle Bancorp, Inc. ** Director of EagleBank only 14 Executive Officers Ronald D. Paul Chairman of the Board, President & Chief Executive Officer of Eagle Bancorp, Inc. Chairman of the Board & Chief Executive Officer of EagleBank Susan G. Riel Senior Executive Vice President & Chief Operating Officer of EagleBank Michael T. Flynn Executive Vice President & Chief Operating Officer of Eagle Bancorp, Inc. Martha Foulon-Tonat Executive Vice President & Chief Lending Officer of EagleBank James H. Langmead Executive Vice President & Chief Financial Officer of Eagle Bancorp, Inc. and EagleBank Thomas D. Murphy President of Retail Banking of EagleBank Janice L. Williams Executive Vice President & Chief Credit Officer of EagleBank Officers Richard D. Corrigan President/Eagle Commercial Ventures, LLC Susan O. Kooker SVP/Director of Audit Deborah C. Shumaker SVP/Business Development Sales Manager Robert R. Hoffmann EVP/Chief Administrative Lending Officer Linda M. Lacy SVP/Information Technology Manager Terrence D. Weber SVP/Controller Kim Ray EVP/Senior Operations Officer R. Frederick Marsden SVP/Consumer Loan Manager Jay R. Abrahams VP/Reporting & Planning Manager J. Mercedes Alvarez SVP/Director of Marketing Russell D. McNish SVP/Director of Human Resources Maria G. Acosta VP/Commercial Deposit Services Officer II Joseph L. Clarke SVP/Branch Administration Manager Thomas A. Mee SVP/Group Leader/Commercial Real Estate Allan L. Acree VP/Commercial Real Estate Loan Officer II Lending Thomas G. Durrer SVP/Group Leader/Commercial Lending— Northern Virginia Joan Y. Pawloski SVP/Loan Administration Manager Jacqueline Ames VP/Business Development Officer— International Banking Elizabeth A. Ferrenz SVP/Director of Customer Service Cynthia A. Pehl SVP/Chief Risk Officer Thomas G. Austing VP/Business Development Officer Robert R. Giraldi SVP/Group Leader/Commercial Lending— John B. Richardson SVP/Group Leader/Commercial Lending— Rokas Beresniovas VP/Business Development Officer Maryland Washington, DC Kai M. Hills SVP/Business Development Officer Susan J. Schumacher SVP/Commercial Deposit Services Manager John A. Bettini VP/Commercial Loan Officer II 15 Andrew S. Bridge VP/Business Development Officer Glenn M. Johnson VP/Electronic Application Manager Janette S. Shaw VP/Marketing & Advertising Manager Michael A. Brooks VP/Credit Administration Officer Scott S. Kinlaw VP/Commercial Loan Officer II Jenny A. Shtipelman VP/Business Development Officer Judy L. Callaway VP/Commercial Deposit Services Officer II Lisa J. Knapp VP/Commercial Loan Officer II Carisa D. Stanley VP/Commercial Real Estate Loan Officer Michele Capone VP/Workout, Liquidation & Recovery Officer Susan M. Lewis VP/Project Manager James R. Walker VP/Commercial Real Estate Loan Officer II Horacio Chacon VP/Commercial Loan Officer II Matthew B. Leydig VP/Commercial Real Estate Loan Officer II Jane N. Willis VP/Credit Analyst II James R. Chittock VP/Retail Sales & Service Coordinator Jodee Lichtenstein VP/Workout, Liquidation & Recovery Officer Bernard P. Worrell VP/Business Development Officer Terry L. Clarke VP/Project Manager Maria C. Lumpkins VP/B2B Manager William A. Youngblood VP/Commercial Loan Officer Linda A. Dawkins VP/Relationship Manager W. Randy McVey VP/Commercial Loan Officer Michael L. Devito VP/SBA Loan Officer Juanita Douglas VP/Branch Manager II P. Lucas Flynn VP/Credit Analyst II Courtney W. Michel VP/Human Resources Officer Ludwell L. Miller, III VP/Compliance Director Shan Mohamed VP/Business Development Officer Joan M. Grant VP/Wire & Cash Room Manager Robin D. Powell VP/Commercial Loan Officer II Sharon A. Gray VP/Loan Operations Manager Ryan A. Riel VP/Commercial Real Estate Loan Officer II Stephen I. Greene VP/Residential Lending Manager Alexis Santin VP/Cash Management Officer Timothy D. Hamilton VP/Commercial Loan Officer II Kenneth S. Scales VP/Commercial Loan Officer II Jackie Ho VP/Credit Analyst II Lynne K. Shaer VP/Senior Assistant Controller Corporate Information Annual Meeting Hyatt Regency Bethesda One Bethesda Metro Center 7400 Wisconsin Avenue Bethesda, Maryland 20814 Thursday, May 20, 2010, at 10:00 a.m. Form 10-K The Company’s Form 10-K may be obtained, free of charge, by contacting: Jane E. Cornett Corporate Secretary EagleBank 7815 Woodmont Avenue Bethesda, MD 20814 240.497.2041 jcornett@eaglebankcorp.com www.eaglebankcorp.com Stock Exchange Listing Common shares of Eagle Bancorp are traded on the NASDAQ Capital Market under the symbol EGBN. Transfer Agent and Registrar Computershare Trust Company, N.A. P.O. Box 43078 Providence, RI 02940-3078 www.computershare.com Corporate Headquarters 7815 Woodmont Avenue Bethesda, MD 20814 301.986.1800 Investor Relations Michael T. Flynn EVP & Chief Operating Officer Eagle Bancorp, Inc. 7815 Woodmont Avenue Bethesda, MD 20814 240.497.2040 mflynn@eaglebankcorp.com www.eaglebankcorp.com Counsel BuckleySandler LLP 1250 24th Street, NW Suite 700 Washington, DC 20037 Independent Accounting Firm Stegman & Company 405 East Joppa Road Suite 100 Baltimore, MD 21286 Member Federal Deposit Insurance Corporation Equal Housing Lender Member Federal Reserve System Member Federal Home Loan Bank of Atlanta Affirmative Action/Equal Opportunity Employer ©2010 Eagle Bancorp, Inc. Stock performance Comparison Stock Price Performance. The following table compares the cumulative total return on a hypothetical investment of $100 in the Company’s common stock on December 31, 2000 through December 31, 2009, with the hypothetical cumulative total return on the NASDAQ Composite Index (U.S. Companies) and the NASDAQ Bank Index for the comparable period, including reinvestment of dividends. 600 500 400 300 200 100 0 12/31/00 12/31/01 12/31/02 12/31/03 12/31/04 12/31/05 12/31/06 12/31/07 12/31/08 12/31/09 EAGLE BANCORP, INC. NASDAQ BANK INDEX NASDAQ COMPOSITE INDEX 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Eagle Bancorp, Inc. 100.00 169.67 228.35 295.38 342.69 509.12 503.74 356.02 188.14 342.57 NASDAQ Composite Index 100.00 78.95 54.06 81.09 88.06 89.27 97.76 107.36 63.83 91.85 NASDAQ Bank Index 100.00 110.08 115.05 149.48 165.92 158.73 176.20 137.31 104.46 85.13 Assuming $100 was invested on December 31, 2000 M A RY L A N D Bethesda 7815 Woodmont Avenue Bethesda, MD 20814 T: 240.497.2044 F: 301.986.8529 Chevy Chase 15 Wisconsin Circle Chevy Chase, MD 20815 T: 301.280.6800 F: 301.280.6810 Park Potomac 12505 Park Potomac Avenue Potomac, MD 20854 T: 301.444.4520 F: 301.444.4525 Rockville 110 North Washington Street Rockville, MD 20850 T: 301.738.9600 F: 301.738.1210 Rollins Avenue 130 Rollins Avenue Rockville, MD 20852 T: 301.287.8500 F: 301.468.5601 Shady Grove 9600 Blackwell Road Rockville, MD 20850 T: 301.762.3076 F: 301.762.2234 Silver Spring 8665-B Georgia Avenue Silver Spring, MD 20910 T: 301.588.6700 F: 301.589.5064 V I RG I N I A Tysons Corner 8601 Westwood Center Drive Vienna, VA 22182 T: 703.485.8011 F: 703.356.4951 WA S H I N G TO N , D C Dupont Circle 1228 Connecticut Avenue, NW Washington, DC 20036 T: 202.466.3161 F: 202.466.4931 Eye Street 1725 Eye Street, NW Washington, DC 20006 T: 202.292.1600 F: 202.292.1652 Georgetown 1044 Wisconsin Avenue, NW Washington, DC 20007 T: 202.481.7025 F: 202.298.6575 K Street 2001 K Street, NW Washington, DC 20006 T: 202.296.6886 F: 202.296.0212 McPherson Square 1425 K Street, NW Washington, DC 20005 T: 202.408.8411 F: 202.408.8644 www.eaglebankcorp.com EGBN-2009 

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