2012 ANNuAl REpoR t MAKING CONNECTIONS THAT COUNT We Start with Relationships First Ronald paul, Chairman and CEo (right) and Robert pincus, Vice Chairman (left). View of Key Bridge connecting Virginia and Washington, DC, from the Waterview Building, Arlington, VA, also the location of EagleBank’s Rosslyn Branch. Relationships F·i·R·s·t EagleBank’s new tagline is our foundation and focus. It is an acronym that describes the attributes that set us apart. It is also our pledge that we will always put relationships first. Flexible We offer banking solutions that are flexible, not one size fits all. We ask what your needs are. then we take it from there. It is what our customers expect and deserve. involved We are deeply involved in the communities where we live and work. We dedicate our time and resources to improving our area’s economic health and quality of life. Responsive We offer responsive, relationship banking that comes from being accessible, local, and knowledgeable. Whatever the question, whatever the need, we will be there. stRong We have the financial strength that enables us to serve our customers and satisfy our shareholders. the strength of our assets is matched by the strength of our relationships. tRusted We know that trust must be earned and that in building trust, we are building relationships. Customers trust us to stand by them and turn challenges into opportunities. Cover: View of Memorial Bridge from Washington, DC to Virginia. Even though multiple bridges span the potomac River, making it easy for Virginians to bank with EagleBank in Washington, DC and Maryland, we wanted the connections to be closer with our Northern Virginia branches. letter to our shareholders to our shareholders March 2013 We are pleased to inform you that 2012 was another very overall cost of funds. this, along with a continued disciplined successful year for eagle Bancorp, Inc., with record earnings approach to loan pricing, provided for a Net Interest Margin for for the fourth consecutive year. In fact, we have reported record the year of 4.32%, as compared to 3.99% for the prior year. earnings now for 16 consecutive quarters. In summary: • Net income increased 44% over our record 2011 level, to $35.3 million. • Assets grew to $3.4 billion. • Deposits were up 21%, to $2.9 billion. • Our loan portfolio expanded 21%, to $2.5 billion. • Credit quality remained strong. The FDIC recognized EagleBank as the largest community bank in Metro Washington, measured by deposits. The US Small Business Administration recently recognized EagleBank as the leading community bank lending to small businesses in the Washington District. And Wall Street recognized our success, with our stock price increasing 37.3%. The details also speak for themselves. as we continually mention, our goal is to consistently increase the profitability of the Company, not just grow the balance sheet. Non-Interest Income grew significantly during 2012 to reach 14% of total revenue. the residential lending division was the major contributor to this growth, as it originated $1.5 billion of loans during the year, up from $864 million in 2011. Gains on the sale of these loans increased 146% over 2011, as the Bank continues to benefit from the strategic decision made in 2010 to expand this line of business. Revenue from service charges, insurance referrals, treasury management services and other fee income sources also demonstrated strong growth, up 20% for the year. We realize that all of these financial statistics are the result of the continued growth of our customer base and market presence in the Washington, DC Metropolitan Area. Our success is based on our ability to develop strong bonds with our customers, both in Earnings per Share were $1.61 for the year, up from $1.14 in the expansion of existing relationships and the building of new 2011 and $0.77 for 2010. We are very pleased to have achieved relationships. This is a continuation and confirmation of our the 41% increase in Earnings per Share given the impact of the original philosophy that our customers value a bank that provides additional shares issued in conjunction with the capital raised outstanding service, customized financial products, access to during the year, as discussed below. Return on Average Equity local senior management decision-makers and one that fulfills its was 14.14% for the year, up from 11.71% in 2011. Return on commitment to the community…regardless of the size or Average Assets was 1.18% vs. 0.97% in the prior year. complexity of the transaction. The growth in earnings is driven by our ability to continually During 2012, we also continued the progress of our expansion improve in so many aspects of our business–including a superior strategy in Northern Virginia as we opened two branches in net interest margin, outstanding credit quality, balanced growth Fairfax County during the year, in Reston and Merrifield. In in loans and deposits, improved non-interest fee income and an addition, we established, in Reston, a Regional Lending Center excellent efficiency ratio indicating a high level of productivity. for our Commercial and Real Estate Lending Departments and a The Company ended the year with total assets of $3.4 billion. new office for the Residential Lending Division. In March of The loan portfolio was $2.5 billion at year end, with annual 2013, we opened our newest branch in Old Town Alexandria, growth of 21%. Deposits ended the year at $2.9 billion, which bringing us to a total of 18 branches. We also continue to attract also reflected a 21% increase for the year and included highly qualified lenders and business development officers who significant growth in the fourth quarter. The Bank continues to have strong ties in the Northern Virginia business community. have a very favorable deposit mix, with a resulting benefit to the 1 Another significant achievement during 2012, and one of which EagleBank is extremely proud of its role as one of the leading we are extremely proud, is that EagleBank became the largest community banks in the Washington, DC Metropolitan Area. We community bank in the Washington area as measured by deposits. continue to work with industry leaders and our elected officials We have reached this market share position by consistently at a national and local level to demonstrate the key role that outperforming our peer group. the growth in deposits for the full community bank lending plays in stimulating economic growth year of 2012 was $505 million and was balanced by $437 million and employment. During 2012, EagleBank played a lead role in of growth in our loan portfolio and increases in our securities the development of the Small Business plus! program in portfolio and liquidity. Despite being the largest community bank, Montgomery County, MD, which led to increased small business we have only 1.62% of market share; therefore, the Bank has lending and employment in that County. The Bank is also involved tremendous potential for continued, additional growth in one of in small business lending programs sponsored by the State of the strongest regional economies in the country. Maryland and the District of Columbia and was recently ranked Based on the Board’s commitment to always maintaining a strong balance sheet and capital position, in May, we initiated a capital as the leading community bank by the Washington District office of the us small Business administration. raise through an “At The Market” Equity Offering of common another facet of our leadership in the community is our stock. We sold common shares through a disciplined and patient philanthropic activities including the volunteer service of many approach and were able to raise $35 million over a 5-month officers and employees and the many contributions to local period concluding in late October. Immediately thereafter, we charities and civic groups, including those made to cancer related completed an additional $10 million underwritten offering. a total education, research and treatment made possible by the activities of 2,604,186 shares were issued through the two offerings. The of the EagleBank Foundation. net result was that with the additional capital, and the record earnings during the year, at December 31, 2012, the Company had total capital of $350 million, with a Total Risk Based Capital Ratio of 12.20% and a total Tangible Capital Ratio of 8.50%. All of our capital ratios are significantly in excess of the regulatory requirements to be considered well capitalized. the economy is still fragile, and while improving, is doing so at a snail’s pace. We believe in the strength of our market–the Washington, DC Metropolitan Area–despite the issues currently facing our local and federal governments. Interest rates remain at historic lows, and all indications appear for them to stay at these levels for the foreseeable future. However, we remain disciplined Based upon the strong capital position and our overall financial in our approach to risk management, performing constant performance, the Company continues to receive favorable evaluation of our balance sheet and not over-reacting to the recognition within the banking industry. Bank management speaks current low-rate environment. We will continue to be nimble in our at many industry conferences and the Bank is rated at the highest response to changes in our market. This combination of being level by independent rating agencies such as IDC and Bauer disciplined but also dynamic has led us to our current level of Financial. EagleBank was ranked as the 24th best performing bank success. We will not deviate from this long-term approach. in the US during 2012 in the $500 million to $5 billion category by SNL Financial. We are equally pleased to note that during the year of 2012, the price of our common stock increased by 37.3%, well above general equity market and financial sector indices. The market capitalization is currently in excess of $500 million. We sincerely appreciate the support of our shareholders, as well as our customers, directors and employees, and the community at large. the unique relationship we have with each of you is what drives the success of EagleBank. We anticipate and look forward to growing and strengthening these relationships during 2013. sincerely, Ronald D. paul Chairman of the Board, president & Chief Executive Officer Robert p. pincus Vice Chairman 2 EA GLE B AN CO Rp, IN C 2 01 2 A N NUAL REpORT 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 in our Form 10-K. (dollars in thousands except per share data) 2012 2011 2010 2009 2008 2007 YEAR ENDED DECEMBER 31, Balance Sheet - Period end Securities Loans held for sale Loans Allowance for credit losses Intangible assets, net Total assets Deposits Borrowings Total liabilities preferred shareholders’ equity Common shareholders’ equity Total shareholders’ equity Tangible common equity (1) 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 $ $ 310,514 $ 226,923 2,493,095 37,492 3,785 3,409,441 2,897,222 140,638 3,059,465 56,600 293,376 349,976 289,591 141,943 $ 14,414 16,190 21,364 76,531 56,172 20,883 35,289 566 34,723 324,053 $ 237,576 $ 245,644 $ 169,079 $ 176,826 2,056,256 29,653 4,145 2,831,255 2,392,095 152,662 2,564,544 56,600 210,111 266,711 205,966 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 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 80,571 1,675,500 24,754 4,188 2,089,370 1,726,798 146,884 1,884,654 22,582 182,134 204,716 177,946 119,124 $ 20,077 10,983 13,501 63,276 38,289 13,731 24,558 1,511 23,047 96,658 $ 19,832 9,308 9,242 51,005 25,755 9,098 16,657 1,299 15,358 84,338 $ 24,809 7,669 7,297 42,773 16,384 5,965 10,419 2,307 8,112 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 Per common Share data (2) Net income, basic 0.63 $ Net income, diluted 0.62 dividends declared 0.11 Book value 8.34 Tangible book value (3) 8.14 22,954,889 19,952,844 19,700,387 19,534,226 12,714,355 Common shares outstanding Weighted average common shares outstanding 21,032,624 19,835,534 19,648,591 14,643,294 11,556,569 1.16 $ 1.14 - 10.53 10.32 1.65 $ 1.61 - 12.78 12.62 0.78 $ 0.77 - 9.25 9.03 0.55 $ 0.55 - 8.48 8.26 $ 0.73 0.71 0.22 7.59 7.57 10,693,447 10,531,236 5 year growth rate 29% 153% 28% 36% 32% 36% 2% 32% 29% 34% 29% 20% -9% 58% 33% 25% 36% 37% 36% 35% 18% 18% 11% 11% 17% 15% 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 4.32% 51.40% 1.18% 14.14% 12.20% 10.80% 10.44% 3.99% 56.22% 0.97% 11.71% 11.84% 10.33% 8.21% 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% 35,983 $ 36,019 $ 31,988 $ 27,131 $ 26,366 $ 5,324 1.06% 1.50% 1.27% 1.44% 1.53% 1.48% 1.50% 1.47% 1.76% 1.45% 0.63% 1.12% 104.19% 82.33% 77.39% 76.00% 69.80% $ 8,351 $ 0.37% 6,084 $ 0.32% 5,172 $ 0.35% 5,454 $ 0.42% 1,123 $ 0.12% 150.96% 979 0.15% (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. (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. sIx-Year suMMar Y 3 MAKING CONNECTIONS THAT COUNT We start With relationships First At EagleBank, we make connections that count. Like connecting customers with customized banking solutions to help grow their businesses. Or matching the right employees with the right positions to best use their talents and meet customers’ needs. Or bringing the Bank and the community together to support charitable causes that make our area a better place in which to live. Whether we are making connections to our customers, is driven by balanced financial performance across all of the employees, shareholders, or the community, we always start Bank’s core elements and by a corporate culture where there the same way. With relationships first. is a shared passion for all that we do. In 2012, EagleBank again experienced exceptional growth by With the largest market capitalization of any Maryland-based, putting relationships first. With 16 consecutive quarters of Washington area community bank, EagleBank has the financial increasing record profits and earnings per share, we not only and human resources to reach more people in more places. In survived, but thrived in the challenging economic times that 2012, we strengthened our presence in Northern Virginia by continue to plague so many of our peers. By making every adding new branches, opening a regional headquarters with relationship and connection count, our total assets grew 20% expanded commercial and real estate lending departments, to $3.4 billion in 2012. Our net income reached $35.3 and also opening a new residential lending office. By adding million—a 44% increase over 2011. Deposits and total loans commercial and residential lenders, business development both increased 21%. officers, and branches, we are perfectly positioned to The FDIC recognized EagleBank’s financial strength in 2012. implement our growth strategy in this vital market. We were ranked as the largest community bank in the Washington As with our Northern Virginia branches, our locations in Metropolitan Area by deposit market share. EagleBank was Washington, DC and Maryland continue to add new relationships the only local bank ranked in the area’s top ten. The US Small based on our local accessibility, responsiveness, and market Business Administration also ranked EagleBank as the number knowledge. All of our 18 branches now have a Branch Service one local community bank in new small business loans and third Manager to concentrate on operational functions and a Branch overall among Washington area lenders. Rankings and recognition Relationship Manager to focus on existing and new relationships. for our financial success are gratifying, but it is what is behind Having two key branch officers is part of EagleBank’s efforts the numbers that gives us our meaning and mission. Our growth to improve our efficiency and better serve our customers. 4 EaglE bancorp, inc 2012 annual rEport based in the Washington, DC Metropolitan Area no.1 Deposit market share among community banks $3.4 16 Consecutive quarters of record net income Billion in total assets Everyone at EagleBank, from our executive team to our branch In putting relationships first, EagleBank puts our community personnel, is focused on building long-term relationships. We first. As a leading community bank and corporate citizen, encourage the use of multiple banking products and services to we are dedicated to improving our area’s economic health broaden our ties with customers. The Bank has had great success and quality of life. the effort we put into encouraging local in growing our fee-based income from our various residential municipalities to bank locally came to fruition in 2012. mortgage products. Through the efforts of our experienced home EagleBank was one of a select number of Montgomery County, mortgage lenders, our residential loan production exceeded Maryland-based banks to qualify for a new public-private $1.5 billion in 2012. We also continued to build fee-based partnership. Under the “Small Business plus!” program, the income by offering customers investment advisory services and County deposits funds into EagleBank and other qualified a range of insurance options through our referral relationships. banks. We, in turn, double those amounts to make loans to EagleBank is committed to making connections with a variety of industry segments in the markets we serve. In 2012, we developed a customized checking account product, as well as promoted an array of services to meet the banking needs of support County-based businesses. It is yet another example of EagleBank’s role as a leader in the DC Metro Area, as we strive to strengthen local economies and support local charitable, cultural, and civic endeavors. medical professionals. We also deepened our commitment to In 2012, we introduced our new tagline Relationships F·I·R·S·T. non-profits and trade associations by hiring a dedicated It is both an acronym and a pledge that even as we grow, we non-profit banking specialist. As with our existing relationships, remain committed to our core values of being Flexible, Involved, our success in attracting new relationships is based on having Responsive, Strong, and Trusted. We know that what drives profits knowledgeable, experienced local bankers with the flexibility and are people, and as we continue to expand our reach and make focus to help customers achieve their goals. connections that count, we always start with relationships first. MAKING CONNECTIONS THAT C OU N T 5 MAR yLAND MAKING CONNECTIONS WITH CUSTOMIZED pRODUCTS & LOCAL pARTNERSHIpS With our Bethesda, Maryland headquarters and our seven the Washington, DC Metro Area. But, it is the financing of Montgomery County branches, EagleBank’s Maryland connections small and medium size projects that is the essence of what get stronger every day. Our relationships in this market run we do. In fact, our average commercial real estate loan is deep. Customers feel comfortable stopping by to meet with our under $2 million. We are equally responsive to start-ups and Chairman and any of our bank officers. Many of the employees smaller businesses trying to gain a foothold in the market. who helped us get our start are still with us to welcome new Our average loan size to operating businesses is under members to our team. Our original shareholders are our neighbors $750,000. Residential real estate borrowers in Maryland and friends and their loyalty is matched by new investors who are also benefit from EagleBank’s lending expertise through our drawn to us by our growth, stability, and strength. We built our residential lending office in potomac, Maryland. foundation by starting with relationships first, and it is the source of our continued success. PreScriPtion f or fina ncial healt h At EagleBank, we are skilled at identifying specific business cuStomized ProductS, P roven caP aBilitieS needs and designing customized financial solutions to meet As market conditions change and new challenges arise, we have them. In 2012, we began promoting services to meet the unique proven our capability to meet and anticipate the needs of growing needs of physicians and medical practices. Medical package Maryland businesses. The real estate industry has always been a Checking helps medical professionals maximize cash flow, and focus of EagleBank. Builders and developers trust that despite Merchant services offer cost-effective payment processing a challenging economy, they can count on us for customized solutions. With our strong connections to Maryland-based products and flexible lending solutions to help them achieve their physicians and medical practices, EagleBank has a receptive goals. Easy access to EagleBank’s local decision-makers is often audience for products that help manage receivables and the difference between a successful transaction and a missed payables, improve cash flow, and reduce operating costs. opportunity for our customers. Medical professionals in all of our market areas benefit from EagleBank continues to originate both real estate and business our prescription for financial health. loans that require creative solutions and innate market Whatever the business, whatever the need, EagleBank offers knowledge. With our increased financial strength and ability to a wide-range of flexible banking products and services that make significantly larger loans, EagleBank signs are seen on are competitive with any bank, large or small. highly visible construction projects in Maryland and throughout 6 EaglE bancorp, inc 2012 annual rEport EagleBank park potomac Branch, potomac, Maryland. The branch lobby features a ceiling eagle mural by ATS Studios. With our seven Montgomery County branches and our Bethesda, Maryland headquarters, EagleBank’s Maryland connections get stronger every day. loc al PartnerS, Big BenefitS support of community health initiatives. EagleBank is EagleBank works hand-in-hand with local municipalities, proud to be on the Montgomery County Medical Society’s associations, and charitable organizations to benefit our area’s Advisory Board and participate in their expos and events. economy and quality of life. In 2012, we participated in the EagleBank is also represented on the board of the Shady Grove Montgomery County, Maryland “Small Business plus!” program. adventist hospital Foundation. We support the Foundation’s Under this program, EagleBank received over $6 million in fundraising efforts for the hospital’s cancer care services County deposits. We then agreed to double this amount to provide and other programs. more than $12 million in new loans to small County businesses so they can grow, create jobs, and stimulate the economy. In Maryland and throughout the DC Metro Area, both the Bank and our employees donate time and funds to a myriad of In addition to investing in the health of our economy, EagleBank activities that benefit the communities where we live and work. invests in the health of local residents through our ongoing MAKING CONNECTIONS THAT C OU N T 7 EagleBank client Osteopathic Center for Healing, Dr. Neil Spiegel, Rockville, Maryland. physicians and medical professionals in all of our market areas benefit from customized financial solutions designed to meet their specific needs. “EagleBank has been a tremendous charitable partner with the Shady Grove Adventist Hospital Foundation. In particular, through its annual EagleBank Foundation Fight Against Breast Cancer Golf Classic, the Bank has advanced the Hospital’s efforts against this terrible disease. We are very grateful for their support.” — William h. smith Chief Development Officer Shady Grove Adventist Hospital Foundation 8 EaglE bancorp, inc 2012 annual rEport VIRGINIA MAKING CONNECTIONS WITH STRATEGIC LOCATIONS & EXpANDED SERVICES EagleBank’s strategic growth in Northern Virginia is thoughtful, exP ande d Servi ceS & oPPo rt uniti eS timed to take advantage of opportunities, designed to increase EagleBank’s new Virginia headquarters in Reston Town Center market share, and always starts with relationships first. Our is where you’ll find our active commercial lenders. Experienced Virginia offices are staffed with experienced, local bankers who in the ins and outs of business and real estate lending, they offer know the market. They also have the passion, dedication, and the full spectrum of services to build relationships. As with all entrepreneurial spirit that is the essence of EagleBank. Even EagleBank bankers, they come to the table without preconceived though several bridges span the potomac River, making it easy notions and have the flexibility, knowledge, and resources to for Virginians to bank with us in Washington, DC and Maryland, customize loan and money-management solutions to fit our we wanted the connections to be closer. We are committed to customers’ specific needs. strengthening our presence in Virginia with the right people and in the places where our banking relationships can prosper. Along with offering the services of commercial bankers, our Virginia customers now have convenient access to residential new BrancheS, new relationShiP S mortgage lenders with EagleBank’s new residential lending From the foundation of our Tysons Corner branch, we opened office in our Reston branch. The Reston residential lending branches in Rosslyn and Ballston, followed in 2012 by our office focuses its efforts on working directly with borrowers and Reston and Merrifield locations. But, we’re not done. We builders in the Northern Virginia and Washington, DC markets. opened our sixth Virginia branch in Old Town Alexandria in Like our residential lending office in Maryland, our Virginia 2013, and more strategic growth is planned for the future. office offers competitive interest rates and a variety of products Our Virginia branches are located in areas offering different opportunities for building customer relationships. For example, our Merrifield branch is located in the vibrant new Mosaic District for home mortgages. Wherever our customers live, they can count on EagleBank for our full-service mortgage capabilities, from application to closing. with exciting choices for dining, shopping, and entertainment. good workS, Boo kS & gal aS EagleBank is contributing to the success of this redeveloped Just as EagleBank supports local business in Northern Virginia, area by meeting the banking needs of many of the restaurants, we also support local community service efforts. The Bank retailers, and businesses that support the local economy by was one of the sponsors of Inova Gala 2012 held at providing jobs and services. This is EagleBank’s role as a The Ritz-Carlton, Tysons Corner. The Gala benefits Inova’s leading community bank—connecting to restaurants, retailers, hospitals, services, and research. non-profits, builders, consulting firms, medical practices, government contractors, and other growing businesses in Virginia and throughout the Metro Area. Once again, the EagleBank Foundation Annual Fight Against Breast Cancer Golf Classic, held in October 2012 at the Trump MAKING CONNECTIONS THAT C OU N T 9 EagleBank branch, Merrifield’s Mosaic District, Fairfax, Virginia. Mosaic District clients include sweetgreen, Taylor Gourmet, and CAVA Mezze Grill, among others. EagleBank contributes to the success of this redeveloped area by meeting the banking needs of many of the restaurants, retailers, and businesses that support the local economy by providing jobs and services. National Golf Club in potomac Falls, Virginia, raised over party was held at the Columbia Grove Apartments Community $330,000 for local health care institutions’ fight against this Center in Arlington, Virginia. EagleBank organized the event disease. In the past eight years, the event has raised over in conjunction with the Arlington partnership for Affordable $1.5 million to support such a worthy cause. At EagleBank, Housing. EagleBank branch managers and employees we have always made the health of residents in the Washington, collected over 300 books and then distributed them to DC Metro Area a priority in our philanthropic efforts. underprivileged children. EagleBank not only contributes financially to charitable Whether we are opening new branches or being good endeavors, but EagleBank employees individually volunteer corporate citizens, EagleBank is committed to contributing their time. In 2012, the EagleBank Summer Reading to the economic health and well being of Northern Virginia. 10 EaglE bancorp, inc 2012 annual rEport “At sweetgreen, we believe in going beyond the transaction and creating a positive experience for every customer. EagleBank shares this same philosophy of putting relationships first.” — Nathaniel Ru, Jonathan Neman and Nicolas Jammet Co-Founders, Sweetgreen Restaurants MAKING CONNECTIONS THAT C OU N T 11 WASHINGTON, DC MAKING CONNECTIONS WITH CREATIVE SOLUTIONS & COMMUNITy SUppORT EagleBank is proud to have a strong presence in the Nation’s United Negro College Fund and funded in part by federal New Capital. Washington, DC is a dynamic community with Markets Tax Credits. Above it, EagleBank is also the lender for monuments, museums, federal buildings, high-rise and historic floors five through eight that are being built out for office space. office structures, and a population as diverse as its architecture Next door is the newly renovated Howard Theatre for which and neighborhoods. It is also a financial center where businesses EagleBank was the project lender. After extensive renovations, can choose from an abundance of banking options. With five this historic theater reopened in april 2012. the project was a branches serving a wide array of customers, EagleBank has true community effort combining an EagleBank loan with federal made its mark on the District of Columbia. Local businesses, funding, as well as District of Columbia grants and state historic from builders and bakers to theaters, clinics, and consulting tax credits. firms, prefer to deal with a local community bank that puts relationships first. fi nancing f or f ami ly homeBui l di ng In addition to our involvement in multiple redevelopment projects So lutionS i n all ShaPeS & SizeS in Washington, DC, EagleBank is also active in single family From Downtown to Georgetown, from Nationals park to the homebuilding that spans the price spectrum. In the family- potomac River, EagleBank is honored to be a part of Washington, friendly palisades neighborhood, along MacArthur Boulevard and DC’s revitalization. We design banking solutions in all shapes and the potomac River, we financed the building of 34 townhouses. sizes for our wide range of clients and their varying needs. Wormley Row, located in the heart of Georgetown on prospect Creativity and collaboration are the name of the game when government resources combine with private funding to finance a Street, is another EagleBank endeavor with the Bank financing the construction of six Victorian-style luxury townhouses. revitalization project. Recently, the District’s Shaw area has seen Whether we are providing funds for historic renovations, new healthy construction in which EagleBank is playing a prominent office construction, mixed use projects, or family homebuilding, part. One unique project is progression place, where the first EagleBank is there with flexible financing and the willingness to four floors are occupied by the new national headquarters of the do whatever it takes to make it work. 12 EaglE bancorp, inc 2012 annual rEport EagleBank client Howard Theatre, Washington, DC. EagleBank helped provide the funding for the restoration of this historic theater in the District’s Shaw neighborhood. From Downtown to Georgetown, from Nationals park to the potomac River, EagleBank is honored to be a part of Washington, DC’s revitalization. MAKING CONNECTIONS THAT C OU N T 13 The Washington Harbour Ice Rink, Georgetown, Washington, DC. EagleBank Washington Harbour clients include MRp Realty and Rockpoint Group (owners of The Washington Harbour), Farmers Fishers Bakers, Nick’s Riverside Grill, and Tony & Joe’s. Local businesses, from builders and bakers to theaters, clinics, and consulting firms, prefer to deal with a bank that puts relationships first. clin icS, culture & community 2012 “Summer Journey” from New york City to the Deep South EagleBank is committed to helping those who help others. to share culturally diverse experiences. With EagleBank as its lender, Whitman-Walker Health, in the District, has thrived as a non-profit community health center with clinics specializing in HIV/AIDS care. In October 2012, EagleBank employees participated as a team in AIDS Walk Washington, a 5K walk and run to raise funds for HIV/AIDS services at Whitman-Walker. As part of the Washington, DC community, we feel a responsibility to help preserve its historical and cultural landmarks. The National Mall, with its monuments, memorials, and cherry trees is a national treasure. the trust for the National Mall is dedicated to restoring and improving this important landmark. EagleBank is proud to support the Trust’s Washington, DC is a melting pot of cultures, religions, and efforts, including serving as a Gold Sponsor of the Trust’s 5 th ethnicities. EagleBank formed a client relationship with Annual Benefit Luncheon in May 2012 to raise funds and Operation Understanding DC to fund its award-winning program awareness for their mission. that promotes understanding and cooperation among african American and Jewish students. With EagleBank’s assistance, the organization was able to send a group of students on their The Nation’s Capital will continue to be a priority for EagleBank, both as leading community bank and a good corporate citizen. 14 EaglE bancorp, inc 2012 annual rEport “EagleBank has always shared our goals for our business and for the community. Whether the Bank is providing financing for our real estate projects or joining us in our efforts on behalf of the Trust for the National Mall, we look forward to continuing our mutually rewarding, value-added relationship.” — John E. (“Chip”) Akridge, III Founder and Chairman Akridge, Commercial Real Estate and Trust for the National Mall EagleBank client OpX pLLC, Architecture, Interiors, and Sustainable Design, Dupont Circle, Washington, DC. EagleBank offers customized banking services in all shapes and sizes for our wide range of clients and their varying needs. With five Washington, DC branches, EagleBank has made its mark on the District of Columbia. MAKING CONNECTIONS THAT C OU N T 15 CONNECTING TO FUTURE SUCCESS We start With relationships First At EagleBank, we cannot see where we are going until we can look back to where we have been. The year 2012 was a banner year for the Bank. By building relationships and making connections, we reached new heights in the strength of our assets, loans, and earnings. We moved up in both national and local rankings and were American Banker magazine. In recognizing Ron paul as recognized for our consistency and financial accomplishments. one of only three community bankers nationwide to receive We also continued in our efforts to serve customers, satisfy this distinction, American Banker stated, “since founding shareholders, retain and attract employees, and contribute to Eagle in 1998, paul has steadily built the company into an the communities where we live and work. outstanding performer and one of the most active lenders in As we look forward to our fifteenth anniversary in 2013, the Washington area…”. we are grateful for the nearly 400 employees who contribute Ron paul will be the first to tell you that the credit for to our success. From EagleBank Chairman & Chief Executive EagleBank’s success is not his alone. In addition to our loyal Officer Ronald paul and Vice Chairman Robert pincus, to our and dedicated employees, it belongs to our customers who rely experienced local bankers and support staff, they all work on us to treat their businesses as our own and to our shareholders tirelessly to make EagleBank the Washington area’s leading who trust us to safeguard their investment. It also belongs to and most accessible community bank. our Board of directors and advisory Boards who guide us with As an ambassador for not only EagleBank but for all local community banks, 2012 was also a banner year for our Chairman and CEO, Ron paul. He often spoke at conferences and seminars to share EagleBank’s success story as well as his banking expertise. He also met frequently with government officials to advocate for the benefits of banking locally. Over the years, Ron paul has received numerous awards for his contribution as a community banker and his passion for philanthropy. perhaps none of these honors is as significant as his being named a 2012 Community Banker of the y ear by 16 their expertise and market knowledge. Lastly, we give credit to the communities that we serve in the Washington Metropolitan Area. We are grateful to be living in an area where the economy remains strong in contrast to other markets and where our unique style of community banking has been so well received. The Washington area is not a part of our business. It is our business. Making connections that count brought us to where we are today and are vital for our continued success. As we look forward to the future with confidence, we know that wherever these connections take us, they will always start the same way. With relationships first. EaglE bancorp, inc 2012 annual rEport eaGleBanK Branch locations maryland Bethesda virginia Ballston waShington, dc dupont circle 7815 Woodmont Avenue 4420 N. Fairfax Drive 1228 Connecticut Avenue, NW Bethesda, MD 20814 Arlington, VA 22203 Washington, DC 20036 T: 240.497.2044 F: 301.986.8529 T: 571.319.4800 F: 571.319.4808 T: 202.466.3161 F: 202.466.4931 chevy chase merrifield Gallery Place 15 Wisconsin Circle 2905 District Avenue 700 7th Street, NW Chevy Chase, MD 20815 Fairfax, VA 22031 Washington, DC 20001 t: 301.280.6800 F: 301.280.6810 T: 571.319.4900 F: 571.319.4911 T: 202.628.7300 F: 202.628.6116 Park Potomac old town alexandria Georgetown 12505 park potomac Avenue 277 S. Washington Street 1044 Wisconsin Avenue, NW potomac, MD 20854 Alexandria, VA 22314 Washington, DC 20007 T: 301.444.4520 F: 301.444.4525 rockville T: 703.956.5075 F: 703.956.5077 Opened March 2013 110 North Washington Street reston T: 202.481.7025 F: 202.298.6575 K street 2001 K Street, NW Rockville, MD 20850 12011 sunset hills road Washington, DC 20006 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 Reston, VA 20190 T: 571.319.4848 F: 571.319.4847 rosslyn 1919 N. Lynn Street Arlington, VA 22209 T: 571.319.4855 F: 571.319.4866 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 tysons corner 8601 Westwood Center Drive other officeS Vienna, VA 22182 T: 703.485.8011 F: 703.356.4951 commercial deposit services 2001 K Street, NW Suite 204 Washington, DC 20006 T: 202.292.1630 F: 202.292.1654 commercial lending 7830 Old Georgetown Road Bethesda, MD 20814 T: 240.497.2049 F: 301.718.8973 2001 K Street, NW Suite 204 Washington, DC 20006 T: 202.292.1624 F: 202.292.1652 11911 Freedom Drive suite 610 Reston, VA 20190 T: 703.485.8031 F: 703.356.4951 residential mortgage lending 12505 park potomac Avenue suite 510 potomac, MD 20854 T: 301.738.7200 F: 301.444.4529 12011 sunset hills road Reston, VA 20190 T: 571.319.4837 F: 301.841.9831 eagle insurance services, llc 7830 Old Georgetown Road Bethesda, MD 20814 T: 240.497.2061 F: 301.986.0680 investment advisory services 7815 Woodmont Avenue Bethesda, MD 20814 T: 240.497.1788 F: 301.841.9872 17 Board of directors ronald d. Paul * susan lacz ** Chairman, president & Chief Executive Officer of Eagle Bancorp, Inc. principal & Chief Executive Officer of Chairman & Chief Executive Officer of EagleBank Ridgewells Caterers president of Ronald D. paul Companies roBert P. Pincus * Vice Chairman of Eagle Bancorp, Inc. Vice Chairman of EagleBank Chairman of Blackstreet Capital Fund I & II leslie m. alPerstein, Ph.d. * president of Washington Analysis, LLC dudley c. dworKen * Managing partner of Dworken Associates, LLC & JDJ Investments, LLC steven l. fanaroff ** Managing Director of Fanaroff & Steppa, LLC harvey m. Goodman * president of Goodman-Gable-Gould/ adjusters International Benson Klein, esquire ** principal of Ward & Klein, Chartered Bruce h. lee ** president of Lee Development Group norman r. Pozez * Chairman & Chief Executive Officer of Uniwest Companies 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. * Director of EagleBank and Eagle Bancorp, Inc. ** Director of EagleBank only 18 EaglE bancorp, inc 2012 annual rEport eaGleBanK advisory 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 adviSory Board memBerS John aKridGe, iv height analytics Brian c. athey Congressional Capital, LLC donald Blanchon Whitman-Walker Health christoPher m. Brown Ackerman Brown Law GreGory J. casten Oceanpro Industries, LTD GeorGe choPivsKy, iii Simpson Housing, L.p. Barry n. dicKstein Houlihan Lokey lynda ellis Capitol Concierge zeid masri SilverHaze partners, LLC Brad l. mendelson, cPa, mst Mendelson & Mendelson eric h. west West, Lane & Schlager Realty maryland adviSory Board memBerS anthony a. cantaluPo, Jr., esquire The Cantalupo Law Group, pA david m. maGed, esquire pinnacle Title & Escrow, Inc. Jeffrey e. weintrauB, cPa Dixon Hughes Goodman, LLp Jay a. eichBerG Eichberg Construction Co. maureen west mccarthy, cPa Medical Business Advisors, LLC Joann Kay Kay Brothers Management Company larry e. walKer The Walker Group marc wertheimer, esquire Selzer Gurvitch Rabin Wertheimer polott & Obecny, p.C. northern virginia adviSory Board memBerS douGlas c. BoGGs, esquire patton Boggs susan m. GaBay Bluestone Capital partners Kristina Bouweiri reston limousine harry m. Glazer, esquire Kelley Drye & Warren, LLp enrico c. cecchi, esquire IDI Group Companies matt curry Curry’s Auto Service Jeffrey r. houle dla piper harry Klaff Jones lang lasalle roBert malm BeaconCrest Homes wade tetsuKa, cPa U.S. Transactions Corp. richard c. thomas Clark’s Litho 19 EagleBank Senior Officers and Business Development/Relationship Team Leaders at EagleBank client Akridge’s property, 7550 Wisconsin Avenue, Bethesda, MD, (left to right) Vincent Curcio, Vp/Residential Lending, VA; Douglas Vigen, SVp/Commercial Real Estate Lending, VA; Jane Cornett, Corporate Secretary; John Richardson, SVp/C&I Lending, DC; Janice Williams, EVp/Chief Credit Officer; Thomas Murphy, president of Community Banking; Mark Deitz, Vp/Residential Lending, MD; James Langmead, EVp/Chief Financial Officer; Susan Schumacher, SVp/Commercial Deposit Services; Andrew Bridge, SVp/Business Development. executive officers ronald d. Paul * Chairman, president & Chief Executive Officer of Eagle Bancorp, Inc. and Chairman & Chief Executive Officer of EagleBank susan G. riel * Executive Vice president of Eagle Bancorp, Inc. and Senior Executive Vice president & Chief Operating Officer of EagleBank thomas d. murPhy ** president of Community Banking of EagleBank laurence e. BensiGnor, esquire * Executive Vice president & General Counsel of Eagle Bancorp, Inc. and EagleBank michael t. flynn * Executive Vice president & Chief Operating Officer of eagle Bancorp, Inc. 20 virGinia n. heine ** Executive Vice president & Chief Commercial & Industrial Lending Officer of EagleBank James h. lanGmead, cPa * Executive Vice president & Chief Financial Officer of Eagle Bancorp, Inc. and EagleBank antonio f. marquez ** Executive Vice president & Chief Commercial Real Estate Lending Officer of EagleBank Janice l. williams, esquire ** Executive Vice president & Chief Credit Officer of EagleBank * Officer of EagleBank and Eagle Bancorp, Inc. ** Officer of EagleBank only EaglE bancorp, inc 2012 annual rEport Laurence Bensignor, EVp/General Counsel; Joseph Clarke, SVp/Retail Banking; Roshan Alavi, SVp/Residential Lending; Virginia Heine, EVp/Chief C&I Lending Officer; Ronald paul, Chairman & CEO; Kenneth Van Valkenburgh, Vp/Insurance Sales; Susan Riel, SEVp/Chief Operating Officer of EagleBank; Ryan Riel, SVp/Commercial Real Estate Lending, MD & DC; Michael Flynn, EVp/Chief Operating Officer of Eagle Bancorp; Jessica Tencza, SVp/C&I Lending, VA; Antonio Marquez, EVp/Chief CRE Lending Officer. officers susan o. KooKer EVp/Chief Risk Officer Kim ray EVp/Senior Operations Officer roshan a. alavi SVp/Residential Real Estate Lending Manager J. mercedes alvarez SVp/Director of Marketing John a. Bettini SVp/Commercial Loan Officer andrew s. BridGe SVp/ Business Development Sales Manager charles e. Brown SVp/Director of Compliance JosePh l. clarKe SVp/Retail Banking Manager thomas G. durrer SVp/Commercial Loan Officer elizaBeth a. ferrenz SVp/Director of Branch Operations Kai m. hills SVp/Business Development Officer mary stuart B. Kilner SVp/Commercial Loan Officer linda m. lacy SVp/Information Technology Manager Jodee lichtenstein SVp/Special Assets Group Manager John s. Powell SVp/Sales and Sales Coaching Manager lisa J. Punt SVp/Director of Human Resources John B. richardson SVp/Group Leader/Commercial Lending— Washington, DC ryan a. riel SVp/ Group Leader/Commercial Real Estate Lending—Maryland/Washington, DC susan J. schumacher SVp/Commercial Deposit Services Manager Jessica l. tencza SVp/Group Leader/Commercial Lending— Northern Virginia 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 21 officers Jay r. aBrahams Vp/Reporting & planning Manager horacio chacon Vp/Commercial Loan Officer timothy d. hamilton Vp/Commercial Loan Officer maria G. acosta Vp/Commercial Deposit Services Officer terry l. clarKe Vp/MIS project Manager JacKie ho Vp/Credit Analyst allan l. acree Vp/Commercial Real Estate Loan Officer rosemary cruz Vp/B2B Team Leader Glenn m. Johnson Vp/Electronic Applications Manager vincent J. curcio Vp/Residential Lending production Manager/Virginia marK a. deitz Vp/Residential Lending production Manager/Maryland michael l. devito Vp/SBA Loan Officer youssouf m. diallo Vp/Branch Relationship Manager P. lucas flynn Vp/Credit Analyst calvin l. Garlic Vp/Commercial Credit Manager Joan m. Grant Vp/Wire & Cash Room Manager sharon a. Gray Vp/Loan Servicing Manager yulissa Guerra-reyes Vp/Branch Relationship Manager m. Jacqueline ames Vp/Business Development Officer mary l. anderson Vp/Business Development Officer timothy a. annett Vp/Commercial Real Estate Loan Officer eileen f. ascher Vp/SBA Loan Officer andrea rc BerKeley Vp/Commercial Real Estate Loan Officer michael a. BrooKs Vp/Loan Servicing & Administration Manager Karen michelle Bryan Vp/Commercial Deposit Services Officer Jenifer J. Bush Vp/Commercial Real Estate Loan Officer Judy l. callaway Vp/Commercial Deposit Services Officer michele l. caPone Vp/Workout, Liquidation & Recovery Officer 22 scott s. Kinlaw Vp/Commercial Loan Officer lisa J. KnaPP Vp/Commercial Loan Officer daniel t. laurenzi Vp/Commercial Loan Officer charles d. levinGston Vp/Deputy Controller susan m. lewis Vp/project Manager matthew B. leydiG Vp/Commercial Real Estate Loan Officer courtney w. michel Vp/Human Resources Officer BarBara i. millard Vp/Branch Service Manager erin v. newill Vp/Recruiting and Employee relations Manager BarBara B. Patterson Vp/Training Manager EaglE bancorp, inc 2012 annual rEport roBin d. Powell Vp/Commercial Loan Officer lynne K. shaer Vp/Senior Assistant Controller marshelle r. taylor Vp/AML/BSA Compliance Manager leonid rann Vp/Commercial Loan Officer starla t. shamBourGer Vp/Construction Loan Administration Officer deBorah B. thomPson Vp/Loan Documentation Manager alexis santin Vp/Director of Treasury Management Janette s. shaw Vp/Marketing & Advertising Manager Kenneth J. van valKenBurGh Vp/Insurance Sales/Eagle Insurance services Kenneth s. scales Vp/Commercial Loan Officer wayne P. schisler Vp/Consumer Loan Manager ryan G. seGars Vp/Commercial Real Estate Loan Officer Jenny a. shtiPelman Vp/Business Development Officer Jane n. willis Vp/Credit Analyst Justin e. silvers Vp/Branch Relationship Manager ronald K. wills Vp/Business Development Officer daniel G. swanson Vp/Commercial Real Estate Loan Officer Bannon P. wysocKi Vp/Business Development Officer 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. 23 corPorate information annual meeting Bethesda Marriott hotel 5151 pooks Hill Road Bethesda, MD 20814 stock exchange listing Common shares of Eagle Bancorp are counsel BuckleySandler LLp traded on the NASDAQ Capital Market 1250 24th Street, NW under the symbol EGBN. Suite 700 thursday, May 16, 2013, at 10:00 a.m. Washington, DC 20037 form 10-K The Company’s Form 10-K transfer agent and registrar Computershare Trust Company, N.A. p.O. Box 43078 independent accounting firm Stegman & Company may be obtained, free of charge, providence, RI 02940-3078 405 East Joppa Road 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 For more 2012 financial information about Eagle Bancorp, visit our Investor relations page at www.eaglebankcorp.com. www.computershare.com suite 100 Baltimore, Md 21286 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 Member Federal Deposit Insurance Corporation equal housing lender Member Federal Reserve System Member Federal Home Loan Bank of Atlanta Affirmative Action/Equal Opportunity Employer ©2013 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, 2002 through December 31, 2012, with the hypothetical cumulative total return on the NASDAQ Bank Index and the S&p 500 for the comparable period, including reinvestment of dividends. 300 250 200 150 100 50 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 12/31/11 12/31/12 EAGLE BANCORP, INC. NASDAQ BANK INDEX S&P 500 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 eagle bancorp, inc. 100.00 129.36 150.07 222.96 220.61 115.91 82.39 150.02 206.76 208.34 286.15 nasdaQ bank index 100.00 133.04 151.23 148.30 168.80 135.19 106.07 88.78 101.35 90.71 107.66 s&p 500 100.00 128.68 142.69 149.70 173.34 182.86 115.21 145.70 167.64 171.18 198.58 Assuming $100 was invested on December 31, 2002 . o h t i l s ’ k r a l C : g n i t n i r p . ) n e g a F . p m a d A : r e v o C ( y h p a r g o t o h p t n u l 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 EGBN-2012