Eagle Bancorp
Annual Report 2010

Plain-text annual report

BuILDING & EXpANDING RELATIONSHIpS THE ESSENCE Of EAGLEBANk 2 0 1 0 AN NuA L REpO R T 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 differentiate our company from other institutions by developing long-term client relationships, providing superior customer service, creating stockholder value, supporting and enhancing our community, and encouraging the growth and well-being of our employees. We are dedicated to growing our position as the leading community bank for businesses of all sizes in our market, through the respect and recognition we have earned for our banking knowledge, lending expertise, local decision-making, relationship continuity, business ethics, and corporate citizenship. To oUr shareholders We are pleased and proud to report to you that 2010 was a banner end and loan charge-offs for 2010 were just 0.35% of total loans, year for Eagle Bancorp, Inc. Building upon the foundation that was both down from 2009. We are very pleased with these results, laid in recent years, we had a record year. Assets are up, to over $2 given the economic environment and the experiences of large billion at year-end. Earnings are up, to $16.7 million. Net income segments of the financial services industry. We continue to take available to shareholders is up, to $15.4 million – an 89% increase an active approach to the early identification of problem loans over 2009. Deposits are up, to over $1.725 billion – an 18% increase. and to pursue an aggressive strategy to work out those loans Loans are up, to $1.675 billion – a 20% increase. which have become stressed. These are all record levels. We take particular pride in the $5.1 To fully appreciate our 2010 performance, it is helpful to recall how million of earnings in the 4th quarter of 2010. It was the most we got to where we are. During 2008, we had successfully completed profitable quarter in our history and was the 8th consecutive the merger with Fidelity & Trust Financial Corporation and twice quarter of increasing profits for the Company. We are proud of the bolstered our capital position. In 2009, we continued the growth of consistency and quality of the earnings, which reflect the strong the Bank and, again, strengthened our balance sheet through our performance of our Company in all critical areas and the ongoing third successful common stock offering. build-up of our infrastructure. In 2010, the Company capitalized on these actions, which positioned The net interest margin for the year was 4.09%, which was high us to be able to operate from a position of strength during the most for the industry, and a 24 basis point increase from the 3.85% we severe recession in recent memory. Eagle Bancorp saw the results experienced in 2009, itself a strong year. This was achieved through in unprecedented growth and profitability. In 2010, many of our strong and balanced growth of loans and deposits, along with competitor financial institutions were struggling with how to react stabilized loan yields, as well as the benefit of reduction in our cost to their credit problems and general economic uncertainty; as a of funds. The composition of our deposit base is very favorable. Our result, they were not responding to the needs of their customers. new and existing customers choose us for their operating accounts, Unlike many, our focus was on the growth and the quality of our which make up core deposits, and we were able to reduce higher cost earnings, as opposed to cleaning up toxic assets. Our growth in alternative sources of funding. assets, deposits and loans directly related to our focus on forming EagleBank continues to originate both real estate and business and building relationships. loans, and is recognized as a very active player in the marketplace. EagleBank stepped to the forefront last year and became the At the same time, we have not sacrificed our discipline of prudent community bank in the Washington area which could be counted lending. Credit quality in the loan portfolio remains at excellent on: by our depositors for competitive rates and outstanding service; levels. Nonperforming loans were only 1.51% of total loans at year- by our business and real estate borrowers for remaining an active 2 lender with competitive pricing, reasonable credit terms and Expense management remains a focus of the Board of Directors outstanding service; by our employees for being part of a winning and senior management, as evidenced by our improving efficiency team; and by our shareholders for consistent growth in earnings ratio. Cost management occurred by our increasing productivity while acting prudently. Our growth has positioned us particularly rather than by taking drastic actions. We are determined to have a well to attract customers large and small, as we offer the intimacy solid infrastructure to be able to continue to provide unsurpassed and nimbleness of a community bank with the financial strength customer service today and to support growth tomorrow. EagleBank and capacities of a large institution. Putting relationships first is will further develop new products and grow its branch network, our call to duty and the essence of our being. as evidenced by the newly opened Gallery Place branch in To enhance and expand our customer relationships, we made several changes and additions to our traditional product offerings that either generated or are expected to generate higher levels Washington, DC. Locations in Rosslyn and Ballston will open this Spring and Summer and increase our presence in the vibrant Northern Virginia market. of noninterest fee income for the Bank. Based on the state of the We expanded our outreach efforts with local and national political economy and the low interest rate environment last Spring, we leaders and the media, to educate lawmakers and the public about saw an opportunity to increase our residential mortgage business. the valuable, positive role of community banks. We were also vocal Starting in the second quarter, EagleBank recruited an experienced about issues affecting EagleBank and our customer base. And, as collection of mortgage bankers and support staff to expand our always, we remained strong corporate citizens, actively participating Residential Mortgage Lending Division. The result of this investment in many charitable and community events. was a significant increase in the volume of mortgages originated and sold. Sales of $461 million of residential loans for the year compared with $91 million for the previous year, a quintupling of volume. Loans originated are pre-sold and price-locked, as our objective for this business line is fee income, not portfolio loan growth. EagleBank remains committed to being the best community bank in the Washington metropolitan area. We will continue to put relationships first, to build and solidify our customer base. We will enhance our capabilities by growing our branch network, maximizing the use of state-of-the-art technology to efficiently Similarly, we’ve entered into two referral agreements to generate provide the best in products and services. We will recruit additional additional non-interest fee income while deepening our client experienced staff to join our current group of 300 customer-focused relationships. Eagle Insurance Services offers a broad mix of life bankers. To our customers, shareholders, communities, directors, and employees, thank you for a great year. We look forward to continuing success with you in 2011. insurance; health and group benefits coverage; and property, casualty and liability insurance. The Bank provides Investment Advisory Services to our customers through a referral arrangement with Graystone Consulting, a unit of Morgan Stanley. Through its strong Washington area office, Graystone has significant experience with non-profit organizations and trade associations, as well as with high net worth families. Sincerely, Ronald D. Paul Chairman and Chief Executive Officer Robert P. Pincus Vice Chairman 3 5 Year Compound Growth rate 28.41% 94.11% 24.99% 32.84% 25.46% 24.87% 35.52% 25.42% 22.90% 25.80% 22.39% 21.35% 19.89% 38.25% 18.25% 21.89% 16.67% 15.80% 17.17% 15.28% 1.06% 1.92% 7.92% 7.43% 13.91% 14.06% -3.90% 0.45% -7.06% -6.53% -0.69% -2.14% -1.28% six-Year sUmmar Y of seleCTed finanCial da Ta 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 in our Form 10-K. (dollars in thousands except per-share data) 2010 2009 2008 2007 2006 2005 YEAR ENDED DECEMBER 31, $ 237,576 80,571 1,675,500 24,754 4,188 2,089,370 1,726,798 146,884 1,884,654 22,582 182,134 204,716 177,946 $ 96,658 19,832 9,308 9,242 51,005 25,755 9,098 16,657 1,299 15,358 $ 245,644 1,550 1,399,311 20,619 4,379 1,805,504 1,460,274 150,090 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 1,354,456 36,312 106,059 142,371 103,526 $ 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 $ 68,050 2,924 549,212 5,985 168 672,252 568,893 32,139 607,288 - 64,964 64,964 64,796 2,157 625,773 7,373 255 773,451 628,515 68,064 700,535 - 72,916 72,916 72,661 $ 50,318 $ 36,726 8,008 1,843 3,998 18,960 11,913 4,369 7,544 - 7,544 17,880 1,745 3,846 21,824 12,715 4,690 8,025 - 8,025 $ 0.78 0.77 - 9.25 9.03 19,700,387 19,648,591 $ 0.55 0.55 - 8.48 8.26 19,534,226 14,643,294 $ 0.63 0.62 0.11 8.34 8.14 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 0.70 0.20 6.32 6.31 10,274,394 10,177,948 0.74 0.21 6.99 6.97 10,425,870 10,373,080 4.09% 59.26% 0.86% 8.74% 11.64% 9.91% 9.32% 3.85% 64.01% 0.65% 6.52% 13.57% 11.82% 10.29% 4.05% 66.49% 0.69% 8.04% 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% BalanCe sheeT – Period end Securities Loans held for sale Loans Allowance for credit losses Intangible assets, net Total assets Deposits Borrowings Total liabilities Preferred stockholders’ equity Common stockholders’ equity Total stockholders’ equity Tangible common equity (1) sTaTemenT of oPera Tions 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 (2) Net income, basic Net income, diluted Dividends declared Book value Tangible book value (3) Common shares outstanding Weighted average common shares outstanding raTios Net interest margin Efficiency ratio (4) 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) 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 $ 31,988 $ 27,131 $ 26,366 $ 5,324 $ 2,013 $ 491 130.56% 1.53% 1.48% 1.50% 1.47% 1.76% 1.45% 0.63% 1.12% 0.26% 1.18% 0.07% 1.09% 77.39% $ 5,172 0.35% 76.00% $ 5,454 0.42% 69.80% $ 1,123 0.12% 150.96% $ 979 0.15% 366.27% 1218.94% $ 357 $ 98 0.02% 0.06% 85.32% 6.31% -42.39% 121.05% 77.26% (1) Tangible common shareholders’ equity, a non-GAAP financial measure, is defined as total common shareholders’ equity reduced by goodwill and other intangible assets. (2) 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% dividends on the common stock paid on of each July 5, 2006 and February 28, 2005. In July 2008, the Company discontinued the payment of its quarterly cash dividend. (3) Tangible book value per common share, a non-GAAP financial measure, is defined as tangible common shareholders’ equity divided by total common shares outstanding. (4) Computed by dividing noninterest expense by the sum of net interest income and noninterest income. “ aT eaGleBank, we Believe Tha T relaTionshiPs are aT oUr Core. new and lonG-sTandinG relaTionshiPs Provide Us wiTh oPPorTUniTies for sUCCess. we ConTinUe To sTrenGThen oUr Ties wiTh CUsTomers, shareholders, emPloYees, and The CommUniTY BY meeTinG needs and sharinG Goals. ” Ronald D. Paul Chairman & CEO, EagleBank 5 BUildinG and exPandinG relaTionshiPs The essenCe of eaGleBank “Record profits.” “Beating estimates.” “Gains in deposits, assets, loans.” In 2010, EagleBank made news as analysts praised our strong growth as “impressive” and even “astounding.” * But, at EagleBank, we continue to describe our exceptional growth in one word. “Relationships.” As we grow, we never forget our roots or our philosophy. EagleBank is a local, community bank and relationships come first. We are proud that 2010 was a year of marking milestones and exceeding expectations. Total assets surpassed $2 billion, a 16% increase over 2009, positioning us to greatly expand our market share and our ability to serve customers. The Bank achieved eight consecutive quarters of increasing, record profits, including a 60% increase over 2009. With these accomplishments, we never sacrificed our mission to build relationships in the communities we serve. EagleBank continues to welcome new customers of all sizes, just as we did when we were founded over a dozen years ago. But our growing capital base also enables us to serve even larger customers for both loans and deposits. In 2010, we continued to make loans, and attract deposits, when many banks in the marketplace could not. Total loans, business loans and commercial real estate loans, all increased. EagleBank is a leader in the Washington, DC area. Similarly, more customers turned to EagleBank for their deposits, which brought us double-digit growth in 2010. We are passionate about our customers, and they know that they can rely on us in both good and difficult times. In the credit challenges of 2010, EagleBank’s asset and credit quality remained at an excellent level. Making new loans does not come at the price of quality; we have maintained the discipline to do prudent lending. * American Banker article, Taking Market Share from Big Rivals Part of Md. Duo’s Plan. October 26, 2010 issue. Capital Business article, Eagle Bancorp shows strength in numbers. August 2 – August 8, 2010 issue. 6 As EagleBank continues to expand externally, we also grow internally to ensure the continued level of service that our customers expect. Our reputation and growth have allowed us to attract dedicated employees from other banks in the area. As with customers, loan officers and other experienced professionals at large banks are returning to a community bank like EagleBank. We are also investing heavily in the systems that provide increased efficiencies and expanded capabilities, in order to continue providing our customers with more solutions, more choices, and the highest level of financial expertise. Our growth enables EagleBank to expand the financial services we offer customers. We greatly enhanced our Residential Mortgage Lending Division by building a team of highly experienced mortgage producers. We entered into a relationship with a respected, local insurance agency to form Eagle Insurance Services. We also broadened our scope of services through our strategic alliance with a well-regarded investment advisory firm. By adding value to what we offer customers, we solidify our relationships with them. Reflecting our commitment to the markets we serve, EagleBank continues to strengthen our branch network. In 2010, we announced plans for three new branch offices – Gallery Place in Washington, DC, and in Rosslyn and Ballston in Northern Virginia. We continue to look for new branch locations to better serve and increase our customer base, particularly in Northern Virginia. As we expand our reach, we also expand our relationships. Building relationships with customers, shareholders, employees, and our community is EagleBank’s focus and foundation. It is the essence of everything we do, from giving customers access to all of our resources and people, including top decision-makers, to mentoring and nurturing employees, to working with neighbors to make our community a better place to live. Whether it is EagleBank’s Chairman sharing his expertise on small business lending by meeting with the U.S. Senate Committee on Small Business and Entrepreneurship, the Bank’s sponsorship of philanthropic events, or the efforts of individual employees in civic and charitable endeavors, we share our resources, knowledge, and time. As we continue to grow, EagleBank’s customers count on us to be there for them, from a checking account, to the start up of a new business, to an array of financial services. Whether you are a shareholder, a prospective customer, or an employee, EagleBank offers what a real banking relationship should be. Right: EagleBank Rosslyn Branch. Arlington, Virginia. “ mY loan offiCer aT eaGleBank wenT The exTra mile To ensUre Tha T mY wireless Tower ComPanY had aCCess To CaPiTal aT jUsT The riGhT Time To meeT oUr ConsTrUCTion Goals. eaGleBank UndersTands The fUndamenTals of a niChe indUsTr Y and CUsTom T ailored a CrediT ProGram To meeT oUr needs. ” Len Forkas President, Milestone Communications, Inc. 8 BUildinG relaTionshiPs BY anTiCiP aTinG and meeTinG needs Business opportunities can develop unexpectedly. But the window of opportunity can close quickly. EagleBank gives customers immediate, local access to the decision-makers who know the market. We respond quickly and creatively, flexible to the needs of our customers. Loan consideration does not take place hundreds of miles from the account officer. It happens down the hall. Our local knowledge and entrepreneurial spirit combine to enable us to provide unsurpassed responsive, timely service to our customers. In 2010, we continued to build our teams to be able to meet our customers’ needs and to expand our customer base. We strengthened our team of branch managers. We added experienced lenders to both our Commercial and Industrial Division and our Commercial Real Estate Division. A particular emphasis was in Northern Virginia, as we expand our reach. Adding experienced professionals to our Northern Virginia Advisory Board illustrates EagleBank’s commitment to growing our presence in that market. Building on our branch in Tysons Corner, Virginia, the new branches in Rosslyn and Ballston will support future growth and allow us to be closer to existing and new customers in these vibrant communities. EagleBank’s goal of increasing our reach in Northern Virginia is complemented by efforts to expand our presence in Montgomery County, Maryland and Washington, DC. In Maryland, adding new members to our EagleBank Advisory Board allows us to take advantage of their market knowledge as they act as liaisons to the community. In Washington, DC, our branch in Gallery Place, across the street from the Verizon Center, enables us to provide loan, deposit, cash management, and other valuable financial services to a broad spectrum of customers. Right: Georgetown Cupcake, Bethesda Row. Bethesda, Maryland. “ eaGleBank has Been a reliaBle P arTner of GeorGeTown CUPCake sinCe we oPened oUr firsT shoP Three Years aGo. as GeorGeTown CUPCake has Grown, now To Two reTail loCaTions and a naTionwide shiPPinG oPeraTion, so has oUr relaTionshiP. we look forward To GrowinG oUr rela TionshiP wiTh eaGleBank even fUrTher. ” Katherine Kallinis & Sophie LaMontagne Sisters & Owners, Georgetown Cupcake “ for Us aT maTChBox, iT’s Grea T To P arTner wiTh a Bank Tha T UndersT ands resTaUranTs and, more imPorT anTlY, Believes in resTaUranTs. wiTh eaGleBank’s helP, we are GaininG TraCTion in The dC area markeT and hoPe To ConTinUe GrowinG oUr Brands: ma TChBox, Ted’s BUlleTin, and dC-3. ” Ty Neal & Perry Smith Founders, Matchbox Restaurant Group 11 (left to right) Lisa Knapp, Vice President, Commercial Lender; Douglas Vigen, Senior Vice President, Commercial Real Estate Lender; Janice Williams, Executive Vice President, Chief Credit Officer; John Richardson, Senior Vice President, Commercial Lender Our dedication to offering value to our customers led us to provide an array of new services. The expansion of our Residential Mortgage Lending Division and the creation of Eagle Insurance Services and the EagleBank Investment Advisory Services Program benefit both customers and the Bank. All three lines of business also increase EagleBank’s fee income, which contributes to our growth and has a stabilizing effect on our income. We are well positioned in the Washington, DC area. Never losing sight of what brought us success, we continue to provide extraordinary customer service every day. In a world of big banks and revolving door employees, we still know our customers by name. At the same time, as a well-capitalized, $2 billion- plus bank, we now offer the strength to serve more customers of all sizes. Whether we help customers start or grow a business, buy a home, or make deposits, pay bills, and easily access their financial information online, we offer the familiarity and deftness of a local bank and the financial strength of a large bank. EagleBank’s record growth in 2010 is a consequence of thoughtful planning, proactive leadership, and prudent risk management. It is also a result of the entrepreneurial spirit we share with customers and the relationships we build and sustain. Our future success will be based on the same principles of relationship continuity and reasoned growth. Left: Matchbox. Rockville, Maryland. “ eaGleBank is resPonsive, CreaTive, and CommiTTed To The healTh and well BeinG of whiTman-w alker CliniC and The 13,000 meTro dC residenTs we Care for. ron PaUl and his Team have esTaBlished eaGleBank as The Gold sTandard for CommUniTY BankinG in oUr area. Their CommiTmenT To relaTionshiP-Based CommUniTY BankinG is UnP aralleled.” Donald Blanchon, CEO, Whitman-Walker Clinic 13 BUildinG relaTionshiPs BY sharinG wiTh The CommUniTY At EagleBank, we believe that all banking decisions that affect a community should be made in that community. Our dedication to local decision-making is accompanied by our commitment to the communities that contribute to our success. As we grow and prosper, we consider it a privilege to share our resources, knowledge, and time to make our community a better place to live. Working hand-in-hand with customers, colleagues, neighbors, and friends, EagleBank builds relationships as we build the community. Just as EagleBank’s Chairman shares his expertise at Senate hearings and business seminars, he and other Bank officers take a leadership role in civic organizations throughout the Washington metropolitan area. While our area has fared better than many parts of the country, these are still challenging times, and EagleBank works hard during and after business hours to promote our community’s economic growth. Through corporate sponsorships and the efforts of employees, EagleBank supports numerous charitable causes and philanthropic events. On October 2, 2010, EagleBank employees once again bonded together as a team to participate in the annual Ronald D. Paul Companies Kidney Walk. Co-sponsored by the National Kidney Foundation, the event raised over $200,000 to benefit kidney disease treatment, research, and education. We are especially proud of the Sixth Annual EagleBank Foundation Fight Breast Cancer Golf Classic, held at the Woodmont Country Club. EagleBank joined forces with sponsors, customers, and the community to raise over $260,000 to benefit local hospitals and organizations in their fight against breast cancer. Since the first golf tournament in 2005, the Foundation has raised more than $900,000, by building relationships with others dedicated to the cause. Left: Whitman-Walker Clinic. Washington, DC. 14 Throughout the year, EagleBank employees can be seen working on a variety of philanthropic endeavors, from selling tickets at “Taste of Bethesda,” to participating in a benefit for the Combat Soldiers Recovery Fund. In 2010, the Bank formed Eagle Helping Hands. Bank employees work together on specific projects, such as Food & Friends, which prepares and delivers meals to people living with HIV/AIDS and other life-challenging illnesses. In this way, employees build teamwork as they contribute to the community. Teaching fiscal knowledge and responsibility at a young age is the goal of the Junior Achievement of the National Capital Area (JANCA) and of the EagleBank officers who serve on the Board. By creating age-appropriate programs through the public school systems, students in K-12 learn everything from managing their allowance to understanding international trade. EagleBank is invested in giving students a head start to succeed in a global economy. Just as EagleBank continually seeks new ways to meet our customers’ banking needs, so do we renew our commitment to serve the community. Our focus on being the leading community bank in our market is mirrored by our dedication to achieving the highest level of corporate citizenship. exPandinG relaTionshiPs The essenCe of oUr fUTUre sUCCess As we move forward to fulfill goals for our customers, shareholders, and community, EagleBank is ever mindful of what is, and always will be, the essence of our success. Building and expanding relationships is our purpose and passion. It is our unwavering focus as we meet with customers at their offices, construction sites, clinics, restaurants, and stores. It is our driving force as we devote time and resources to fight deadly diseases, feed the needy, and contribute to the community’s economic health and quality of life. And it is our promise as we strive to continue to exceed expectations, expand opportunities, and put relationships first. Right: Shakespeare Theatre Company. Washington, DC. “ The shakesPeare TheaTre ComPanY is GraTefUl for The sUPPorT of eaGleBank and Their CommiTmenT To oUr work BoTh on and off The sTaGe. Their involvemenT helPs fUrTher oUr mission To Be The leadinG forCe in The PresenT aTion and PreservaTion of ClassiCal TheaTre. we look forward To a lonG relaTionshiP wiTh eaGleBank and Their assisT anCe in helPinG Us mainT ain oUr Core BUsiness and PhilanThroPiC Goals. ” Mandy Dickens Prather Director of Corporate Giving, Shakespeare Theatre Company 16 Board of direCTors Ronald D. Paul * Chairman, President & CEO of Eagle Bancorp, Inc. Chairman & CEO of EagleBank President of Ronald D. Paul Companies Robert P. Pincus * Vice Chairman of Eagle Bancorp, Inc. Vice Chairman of EagleBank Chairman of Blackstreet Capital Management & Milestone Merchant Partners, LLC Leslie M. Alperstein, Ph.D. * President of Washington Analysis, LLC Arthur H. Blitz, Esquire ** 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. Bruce H. Lee ** President of Lee Development Group Norman R. Pozez * Chairman & Chief Executive Officer of Uniwest Companies Thomas W. Roberson ** Partner of Montouri & Roberson Donald R. Rogers, Esquire * 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 Leland M. Weinstein * President of Syscom Services, Inc. Harvey M. Goodman * President of Goodman-Gable-Gould/Adjusters International Eric H. West ** Founding Principal of West, Lane & Schlager Realty Advisors, LLC Neal R. Gross * Founder, Chairman & Chief Executive Officer of Neal R. Gross & Company Benson Klein, Esquire ** Principal of Ward & Klein, Chartered Susan Lacz ** Principal & Chief Executive Officer of Ridgewells Caterers Steven M. Wiltse, CPA ** Tax Partner & Co-Founder of Argy, Wiltse & Robinson, P.C. * Director of EagleBank and Eagle Bancorp, Inc. ** Director of EagleBank only 17 eaGleBank advisor Y Boards EagleBank continues to grow thanks to our community banking strategy in which our Advisory Boards play a key role. The advice, experience, and business expertise of our Advisory Board Members are valuable resources for EagleBank. Albert A. D’Alessandro, Chairman-All Advisory Boards Financial Solutions, LLC disTriCT of ColUmBia advisor Y Board memBers Rollin M. Bell, III PCM Construction Donald Blanchon Whitman-Walker Clinic Gregory J. Casten OceanPro Industries, LTD Barry N. Dickstein Blackstreet Capital Management, LLC Stefan C. Nicholas, Esquire Jackson and Campbell, P.C. Lynda Ellis Capitol Concierge Zeid Masri SilverHaze Partners, LLC Earl Segal, Esquire Newmark Knight Frank marYland advisor Y Board memBers Anthony A. Cantalupo, Jr., Esquire The Cantalupo Law Group, PA Joann Kay Kay Brothers Management Company Larry E. Walker The Walker Group Lisa J. Cines, CPA Jay A. Eichberg Eichberg Construction Co. Dominic Finelli Custom Vending Co. Maureen West McCarthy, CPA Snyder Cohn, PC Elsie L. Reid, Esquire Furey, Doolan & Abell, LLP Jeffrey E. Weintraub, CPA Goodman & Company Marc Wertheimer, Esquire Selzer Gurvitch Rabin Wertheimer Polott Obecny & Strickland, P.C. norThern virGinia advisor Y Board memBers Douglas C. Boggs, Esquire Patton Boggs Kristina Bouweiri Reston Limousine Enrico C. Cecchi, Esquire IDI Group Companies Harry M. Glazer, Esquire Kelley Drye & Warren, LLP Harry Klaff Jones Lang LaSalle Lorraine Lavet Korn/Ferry International Wade Tetsuka, CPA U.S. Transactions Corp. Richard C. Thomas Clark’s Litho 18 exeCUTive offiCers Ronald D. Paul * Chairman of the Board and Chief Executive Officer Susan G. Riel * Senior Executive Vice President and Chief Operating Officer of EagleBank Thomas D. Murphy ** President of Community Banking Michael T. Flynn * Executive Vice President and Chief Operating Officer of Eagle Bancorp, Inc. Martha Foulon-Tonat ** Executive Vice President and Chief Lending Officer James H. Langmead * Executive Vice President and Chief Financial Officer of Eagle Bancorp, Inc. and EagleBank Janice L. Williams ** Executive Vice President and Chief Credit Officer Laurence E. Bensignor * Senior Vice President of Eagle Bancorp, Inc. and EagleBank * Officer of EagleBank and Eagle Bancorp, Inc. ** Officer of EagleBank only Ryan Segars, Vice President, Commercial Real Estate Lender; Deborah Shumaker Senior Vice President, Business Development 19 Barbara I. Millard VP/Branch Manager II Ludwell L. Miller, III VP/Compliance Director Shan Mohamed VP/Business Development Officer Thomas S. Olin VP/Commercial Real Estate Loan Officer offiCers Robert R. Hoffmann EVP/Chief Administrative Lending Officer Susan J. Schumacher SVP/Commercial Deposit Services Manager Michele L. Capone VP/Workout, Liquidation & Recovery Officer Susan O. Kooker EVP/Chief Risk Officer Kim Ray EVP/Senior Operating Officer J. Mercedes Alvarez SVP/Director of Marketing John A. Bettini SVP/Commercial Loan Officer II Joseph L. Clarke SVP/Branch Administration Manager Thomas G. Durrer SVP/Commercial Loan Officer II Elizabeth A. Ferrenz SVP/Director of Customer Service Robert R. Giraldi SVP/Group Leader/Commercial Lending—Maryland Kai M. Hills SVP/Business Development Officer Linda M. Lacy SVP/Information Technology Manager Jodee Lichtenstein SVP/Workout, Liquidation & Recovery Officer R. Frederick Marsden SVP/Consumer Loan Manager Russell D. McNish SVP/Director of Human Resources Thomas A. Mee SVP/Group Leader/Commercial Real Estate Lending—Maryland Joan Y. Pawloski SVP/Loan Administration Manager Elaine B. Rial SVP/Conversion Project Coordinator John B. Richardson SVP/Group Leader/Commercial Lending—Washington, DC Ryan A. Riel SVP/Commercial Real Estate Loan Officer II Deborah C. Shumaker SVP/Business Development Sales Manager Kevin B. Thomas SVP/Director of Internal Audit Douglas L. Vigen SVP/Group Leader/Commercial Real Estate Lending—Northern Virginia Terrence D. Weber SVP/Controller Jay R. Abrahams VP/Reporting & Planning Manager Maria G. Acosta VP/Commercial Deposit Services Officer II Allan L. Acree VP/Commercial Real Estate Loan Officer II Roshan A. Alavi VP/Residential Mortgage Operations Manager Jacqueline Ames VP/Business Development Officer Timothy A. Annett VP/Commercial Real Estate Loan Officer II Daniell Bohnett VP/Branch Manager II Andrew S. Bridge VP/Business Development Officer Michael A. Brooks VP/Credit Administration Officer Trevor R. Brown VP/Area Manager Karen M. Bryan VP/Commercial Deposit Services Officer II Judy L. Callaway VP/Commercial Deposit Services Officer II Horacio Chacon VP/Commercial Loan Officer II James R. Chittock VP/Area Manager Terry L. Clarke VP/Project Manager Demond D. Davis VP/Commercial Loan Officer II David A. Paxton VP/Branch Manager II Linda A. Dawkins VP/Business Development Officer Robin D. Powell VP/Commercial Loan Officer II Michael L. Devito VP/SBA Loan Officer Youssouf M. Diallo VP/Branch Manager II P. Lucas Flynn VP/Credit Analyst II Joan M. Grant VP/Wire & Cash Room Manager Sharon A. Gray VP/Loan Servicing Manager Yulissa Guerra VP/Branch Manager II Timothy D. Hamilton VP/Commercial Loan Officer II Jackie Ho VP/Credit Analyst II Glenn M. Johnson VP/Electronic Application Manager Scott S. Kinlaw VP/Commercial Loan Officer II Lisa J. Knapp VP/Commercial Loan Officer II Susan M. Lewis VP/Project Manager Matthew B. Leydig VP/Commercial Real Estate Loan Officer II W. Randy McVey VP/Commercial Loan Officer Courtney W. Michel VP/Human Resources Officer Leonid Rann VP/Commercial Loan Officer II Alexis Santin VP/Cash Management Officer Kenneth S. Scales VP/Commercial Loan Officer II Ryan G. Segars VP/Commercial Real Estate Loan Officer II Lynne K. Shaer VP/Senior Assistant Controller Janette S. Shaw VP/Marketing & Advertising Manager Jenny A. Shtipelman VP/Business Development Officer Catherine E. Slepitza VP/Deposit Operations Manager Kenneth A. Sonner VP/Residential Mortgage Sales Manager Sydnee C. Stein VP/Business Development Officer Kenneth J. Van Valkenburgh VP/Insurance Sales/Eagle Insurance Services, LLC Brandon M. Whitacre VP/Commercial Loan Officer II Jane N. Willis VP/Credit Analyst II CorPoraTe informaTion Annual Meeting Bethesda Marriott 5151 Pooks Hill Road Bethesda, MD 20814 Thursday, May 19, 2011, 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 Eagle Bancorp, Inc. 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 ©2011 Eagle Bancorp, Inc. STOCk pERfORMANCE COMp ARISON 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, 2010, with the hypothetical cumulative total return on the S&P 500 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 12/31/10 EAGLE BANCORP, INC. NASDAQ BANK INDEX S&P 500 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Eagle Bancorp, Inc. 100.00 169.67 228.35 295.38 342.69 509.12 503.74 356.02 188.14 342.57 472.14 NASDAQ Bank Index 100.00 112.55 120.36 160.14 182.02 178.50 203.17 162.72 127.67 106.86 121.99 S&P 500 100.00 88.11 68.64 88.33 97.94 102.75 118.98 125.52 79.08 100.01 115.07 Assuming $100 was invested on December 31, 2000 l . t n u B n o R : y h p a r g o t o h P . d n a l y r a M , a d s e h t e B . c n I , p u o r G n g i s e D a l l e m o C : n g i s e D www.eaglebankcorp.com MARYLAND Bethesda WASHINGTON, DC OTHER OffICES Shady Grove Dupont Circle Commercial Lending 7815 Woodmont Avenue 9600 Blackwell Road 1228 Connecticut Avenue, NW 7830 Old Georgetown Road Bethesda, MD 20814 Rockville, MD 20850 Washington, DC 20036 Bethesda, MD 20814 T: 240.497.2044 F: 301.986.8529 T: 301.762.3076 F: 301.762.2234 T: 202.466.3161 F: 202.466.4931 T: 240.497.2049 F: 301.718.8973 Chevy Chase Silver Spring Gallery Place Residential Mortgage Lending 15 Wisconsin Circle 8665-B Georgia Avenue 700 7th Street, NW 12505 Park Potomac Avenue Chevy Chase, MD 20815 Silver Spring, MD 20910 Washington, DC 20001 Suite 510 T: 301.280.6800 F: 301.280.6810 Park Potomac T: 301.588.6700 F: 301.589.5064 VIRGINIA T: 202.628.7300 F: 202.628.6116 Georgetown Potomac, MD 20854 T: 301.738.7200 F: 301.444.4529 12505 Park Potomac Avenue 1044 Wisconsin Avenue, NW Eagle Insurance Services, LLC Potomac, MD 20854 Tysons Corner Washington, DC 20007 7830 Old Georgetown Road T: 301.444.4520 F: 301.444.4525 Rockville 8601 Westwood Center Drive T: 202.481.7025 Bethesda, MD 20814 Vienna, VA 22182 T: 703.485.8011 F: 703.356.4951 F: 202.298.6575 K Street T: 240.497.2061 F: 301.986.0680 110 North Washington Street 2001 K Street, NW Investment Advisory Services Rockville, MD 20850 Ballston Washington, DC 20006 7815 Woodmont Avenue 4420 N. Fairfax Drive Arlington, VA 22203 Opens Spring 2011 Rosslyn 1919 N. Lynn Street Arlington, VA 22209 Opens Summer 2011 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 Bethesda, MD 20814 T: 240.497.1788 F: 301.841.9872 T: 301.738.9600 F: 301.738.1210 Rollins Avenue 130 Rollins Avenue Rockville, MD 20852 T: 301.287.8500 F: 301.468.5601 EGBN-2010 

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