Eagle Bancorp, Inc. (the "Company") (Nasdaq:EGBN), the parent
company of EagleBank, today announced record quarterly net income
of $11.8 million for the quarter ended September 30, 2013, a 22%
increase over the $9.7 million net income for the quarter ended
September 30, 2012. Net income available to common shareholders for
the quarter ended September 30, 2013 increased 22% to $11.6 million
($0.45 per basic common share and $0.44 per diluted common share),
as compared to $9.5 million ($0.41 per basic common share and $0.40
per diluted common share) for the same period in 2012.
For the nine months ended September 30, 2013, the Company's net
income was $35.0 million, a 40% increase over the $25.1 million for
the nine months ended September 30, 2012. Net income available to
common shareholders was $34.6 million ($1.35 per basic common share
and $1.31 per diluted common share), as compared to $24.7 million
($1.09 per basic common share and $1.07 per diluted common share)
for the same nine month period in 2012, a 40% increase. Per share
amounts for all prior periods have been adjusted to reflect the 10%
stock dividend distributed on June 14, 2013.
"We are pleased to report another quarter of strong financial
performance, highlighted by continued core balance sheet growth,
net interest margin gains and lower credit losses from an already
favorable asset quality position," noted Ronald D. Paul, Chairman
and Chief Executive Officer of Eagle Bancorp, Inc. "This quarter's
net income is the 19th consecutive quarter of increasing net income
dating to the first quarter in 2009. Total loans grew by close to
4% in the third quarter 2013 and total deposits grew by over 3%.
The net interest margin was 4.31% in the third quarter or 4 basis
points above the second quarter of 2013. The Company is
particularly pleased with the low levels of annualized net
charge-offs for the third quarter 2013 of just 0.20%, which
continues a three quarter trend of lower quarterly net credit
losses in both dollars and as a percentage of average loans," noted
Mr. Paul.
The Company's total revenue of $41.9 million was equal to that
of the second quarter of 2013 and was 10% above the total revenue
of $38.2 million for the third quarter in 2012. Mr. Paul noted that
"the Company has been able to sustain its primary focus on building
core banking relationships, and maintaining a disciplined approach
to loan and deposit pricing, and to assembling a portfolio of high
quality assets. Upholding these focal points results in more
consistent and balanced financial performance and enabled the bank
to offset reduced third quarter revenue from its residential
lending operations."
For the third quarter of 2013, revenue from residential mortgage
banking net interest income and fees was 5.9% of total revenue
versus 7.6% of total revenue for the third quarter of 2012. For the
first nine months of 2013, the Company produced 8.8% of total
revenue from its residential mortgage division net interest income
and fees, as compared to 8.6% of total revenue for the same period
in 2012. The Company continues to assess its residential mortgage
loan area in light of higher market interest rates and lower
refinance activity.
"According to the recently reported FDIC deposit statistics, as
of June 30, 2013, EagleBank has the largest market share of any
community bank in the Washington metropolitan area. As compared to
the prior year, the bank experienced growth in total deposits that
was among the highest growth rates of banks in the area, resulting
in an increase in EagleBank's market share of total deposits,"
noted Mr. Paul.
Lastly, Mr. Paul noted "That the Company continues to place
strategic emphasis on SBA lending and EagleBank's preferred lender
status. SBA sales activity in the third quarter was stronger than
the same period in 2012, but was below the sales activity of the
second quarter 2013. We believe SBA lending will continue to be a
strong part of our business."
Total revenue (net interest income plus noninterest income) was
$41.9 million for the third quarter of 2013 as compared to $38.2
million for the third quarter in 2012, a 10% increase. For the
first nine months of 2013, total revenue was $126.5 million, 17%
higher than the $108.1 million for the first nine months in
2012.
At September 30, 2013, total assets were $3.50 billion, compared
to $2.98 billion at September 30, 2012, an 18% increase. As
compared to December 31, 2012, total assets at September 30, 2013
increased by $95 million, or 3%. Total loans (excluding loans held
for sale) were $2.80 billion at September 30, 2013 compared to
$2.40 billion at September 30, 2012, a 17% increase. As compared to
December 31, 2012, total loans at September 30, 2013 increased by
$304 million, a 12% increase. Total deposits were $2.98 billion at
September 30, 2013, compared to deposits of $2.51 billion at
September 30, 2012, a 19% increase. As compared to December 31,
2012, total deposits at September 30, 2013 increased by $87
million, a 3% increase. The level of deposit gains year-to-date in
2013 was significantly impacted by a loss of $130 million of
bankruptcy trustee deposits in March 2013 earlier reported and
related to the expiration of the TAG program. Loans held for sale
amounted to $39.2 million at September 30, 2013 as compared to
$171.2 million at September 30, 2012, a 77% decrease. As compared
to December 31, 2012 loans held for sale decreased by $188 million,
an 83% decrease.
The investment portfolio totaled $355.8 million at September 30,
2013, a 20% increase from the $296.4 million balance at September
30, 2012. As compared to December 31, 2012, the investment
portfolio at September 30, 2013 increased by $56.0 million, a 19%
increase. Total borrowed funds (excluding customer repurchase
agreements) were $39.3 million at September 30, 2013, September 30,
2012 and December 31, 2012. Total shareholders' equity increased to
$382.1 million at September 30, 2013, compared to $324.4 million
and $350.0 million at September 30, 2012 and December 31, 2012,
respectively, reflecting growth in retained earnings and common
stock raises completed in October 2012. The Company's capital
position remains substantially in excess of regulatory requirements
for well capitalized status, with a total risk based capital ratio
of 13.12% at September 30, 2013, as compared to a total risk based
capital ratio of 12.24% at September 30, 2012 and 12.20% at
December 31, 2012. In addition, the tangible common equity ratio
(tangible common equity to tangible assets) increased to 9.19% at
September 30, 2013, from 8.88% at September 30, 2012 and 8.50% at
December 31, 2012.
At September 30, 2013, the Company's nonperforming assets
amounted to $38.8 million, representing 1.11% of total assets,
compared to $37.3 million of nonperforming assets, or 1.25% of
total assets at September 30, 2012 and $36.0 million of
nonperforming assets, or 1.06% of total assets at December 31,
2012. Management continues to remain attentive to early signs of
deterioration in borrowers' financial conditions and is proactive
in taking the appropriate steps to mitigate risk. Furthermore, the
Company is diligent in placing loans on nonaccrual status and
believes, based on its loan portfolio risk analysis, that its
allowance for loan losses, at 1.42% of total loans (excluding loans
held for sale) at September 30, 2013, is adequate to absorb
potential credit losses within the loan portfolio at that date. The
allowance for credit losses represented 144% of nonperforming loans
at September 30, 2013, as compared to 122% at December 31, 2012 and
110% at September 30, 2012, respectively. The slight decrease in
the allowance for credit losses as a percentage of total loans at
September 30, 2013, as compared to June 30, 2013, from 1.47% to
1.42%, is due to increased loan growth, and overall improved credit
quality in the loan portfolio at September 30, 2013.
Analysis of the three months ended September 30, 2013
compared to September 30, 2012
For the three months ended September 30, 2013, the Company
reported an annualized return on average assets ("ROAA") of 1.35%
as compared to 1.27% for the three months ended September 30, 2012.
The annualized return on average common equity ("ROAE") for the
quarter ended September 30, 2013 was 14.37%, as compared to 15.20%
for the quarter ended September 30, 2012. The higher ROAA ratio for
third quarter of 2013 as compared to 2012 was due primarily to
improved credit quality, and resulting lower provision expense, and
cost management. The lower ROAE ratio for the third quarter of 2013
as compared to 2012 was attributable in part to the additional
capital raised during the At The Market equity offering and
following an underwritten offering which occurred primarily during
the third and fourth quarters of 2012.
Net interest income increased 10.2% for the three months ended
September 30, 2013 over the same period in 2012, resulting from
strong growth in average earning assets of 13.6%. For the three
months ended September 30, 2013, the net interest margin was 4.31%
as compared to 4.44% and 4.27% for the three months ended September
30, 2012 and June 30, 2013, respectively. The Company believes its
net interest margin remains favorable to peer banking companies and
that its disciplined approach to managing its loan portfolio yield
to 5.48% for the third quarter of 2013 has been a significant
factor in its overall profitability.
The provision for credit losses was $1.4 million for the three
months ended September 30, 2013 as compared to $3.6 million for the
three months ended September 30, 2012. Net charge-offs of $1.3
million in the third quarter of 2013 represented 0.20% of average
loans, excluding loans held for sale, as compared to $2.1 million
or 0.36% of average loans, excluding loans held for sale, in the
third quarter of 2012, a 38% dollar decline. Net charge-offs in the
third quarter of 2013 were attributable to commercial and
industrial loans ($722 thousand), construction loans ($294
thousand), the unguaranteed portion of SBA loans ($158 thousand)
and commercial real estate loans ($118 thousand). The lower
provisioning in the third quarter of 2013, as compared to the third
quarter of 2012, is due to a combination of lower net charge-offs,
and overall improved asset quality in the loan portfolio.
Noninterest income for the three months ended September 30, 2013
increased to $5.2 million from $4.9 million for the three months
ended September 30, 2012, an 8% increase. This increase was
primarily due to a combination of an increase in service charges
income of $127 thousand, higher income from Bank Owned Life
Insurance of $131 thousand, higher loan fees and annuity income of
$268 thousand, and higher income from sales of SBA loans of $323
thousand, partially offset by lesser gains on the sale of
residential mortgage loans of $529 thousand. A $529 thousand loss
on the early extinguishment of debt was recorded in September of
2012 due to the restructuring of a Federal Home Loan Bank advance.
There were no investment securities gains for the third quarter of
2013, as compared to investment gains of $464 thousand for the
third quarter of 2012. Excluding investment securities gains and
the loss on the early extinguishment of debt in the third quarter
of 2012, total noninterest income was $5.2 million for the third
quarter of 2013, as compared to $4.9 million for the third quarter
of 2012, an increase of 7%.
The efficiency ratio, which measures the ratio of noninterest
expense to total revenue, was 51.68% for the third quarter of 2013,
as compared to 50.07% for the third quarter of 2012. As a
percentage of average assets, total noninterest expense improved to
2.48% for the third quarter in 2013 as compared to 2.51% for the
same period in 2012. Noninterest expenses totaled $21.7 million for
the three months ended September 30, 2013, as compared to $19.1
million for the three months ended September 30, 2012, a 13%
increase. Cost increases for salaries and benefits were $1.4
million, due to staffing increases primarily as a result of growth
since September 30, 2012 in commercial lending and branch
personnel, merit and benefit cost increases, and increases in
incentive compensation. Premises and equipment expenses were $660
thousand higher, due to the cost of two new branch offices and
increases in leasing costs. Data processing expenses increased by
$320 thousand due to system enhancements and increased customer
transaction expenses. The increase in other expenses of $267
thousand was due primarily to costs related to OREO property and
other losses.
Analysis of the nine months ended September 30, 2013
compared to September 30, 2012
For the nine months ended September 30, 2013, the Company
reported an ROAA of 1.38% as compared to 1.15% for the nine months
of 2012, while the ROAE was 14.79% in 2013, as compared to 14.21%
for the same nine month period in 2012. The higher ROAA and ROAE
ratios for the nine months of 2013 as compared to 2012 was due
primarily to higher noninterest income, improved credit quality and
cost management.
For the first nine months of 2013, net interest income increased
14.3% over the same period for 2012. Average earning assets
increased 16.1%, while the net interest margin was 4.25% for the
nine months of 2013, as compared to 4.32% for the nine months of
2012. Year-to-date in 2013, the Company has been able to maintain
its loan portfolio yields relatively close to 2012 levels (5.55%
versus 5.69%) due to disciplined loan pricing practices, and also
has been able to reduce its cost of funds (0.39% versus 0.51%),
while maintaining a favorable deposit mix, largely resulting from
ongoing efforts to increase and expand client relationships.
The provision for credit losses was $7.1 million for the first
nine months of 2013 as compared to $12.1 million in 2012. The lower
provisioning is due to a combination of lower net charge-offs, a
lower level of nonperforming loans and overall improvement in asset
quality. For the nine months ended September 30, 2013, net
charge-offs totaled $4.9 million (0.25% of average loans) compared
to $6.1 million (0.37% of average loans) for the nine months ended
September 30, 2012, a dollar decline of 20%. Net charge-offs in the
nine months ended September 30, 2013 were primarily attributable to
charge-offs of commercial and industrial loans ($2.6 million),
construction loans ($1.3 million), the unguaranteed portion of SBA
loans ($620 thousand), commercial real estate loans ($227 thousand)
and home equity and consumer loans ($101 thousand).
Noninterest income for the first nine months of 2013 was $20.4
million compared to $15.3 million in 2012, an increase of 33.4%.
This increase was due primarily to a $2.0 million increase in gains
realized on the sale of residential loans, a $1.5 million increase
in gains realized on the sale of SBA loans, a $449 thousand
increase on service charges on deposit accounts and a $1.3 million
increase on other noninterest income due primarily to increased
loan related fees and annuity. Additionally bank owned life
insurance income increased due to new investments. Investment gains
were $23 thousand in 2013 and $765 thousand in 2012. A $529
thousand loss on the early extinguishment of debt was recorded in
September of 2012 due to the restructuring of a Federal Home Loan
Bank advance. Excluding investment securities gains and the loss on
the early extinguishment of debt, total noninterest income was
$20.4 million for the nine months of 2013, as compared to $15.1
million for 2012, a 35% increase, and represented 16% of total
revenue for the first nine months of 2013 as compared to 14% in the
first nine months of 2012.
The efficiency ratio improved to 49.85% for the nine months
ended September 30, 2013 from 52.00% for the same period in 2012.
As a percentage of average assets, total noninterest expenses
improved to 2.48% for the first nine months in 2013 from 2.58% for
the same period in 2012. Total noninterest expenses were $63.1
million for the first nine months of 2013, as compared to $56.2
million for 2012, a 12% increase. Cost increases for salaries and
benefits were $3.2 million, primarily due to increased salaries,
incentive compensation and benefits increases, and staffing
increases resulting from additional lending and branch personnel.
Premises and equipment expenses were $1.4 million higher due
primarily to the cost of three new branch offices and increases in
leasing costs. Data processing costs increased by $1.2 million due
to system enhancements and increased customer transaction expenses.
Decreases in legal and professional fees of $729 thousand were due
primarily to declines in collection costs related to problem loans.
FDIC insurance premiums were $227 thousand higher due to growth in
total assets. Other expenses increased for the first nine months of
2013 versus 2012 by $1.7 million, due primarily to a nonrecurring
expense and increased OREO related costs.
The financial information which follows provides more detail on
the Company's financial performance for the nine and three months
ended September 30, 2013 as compared to the nine and three months
ended September 30, 2012, as well as providing eight quarters of
trend data. Persons wishing additional information should refer to
the Company's Form 10-K for the year ended December 31, 2012 and
other reports filed with the Securities and Exchange Commission
(the "SEC").
About Eagle Bancorp: The Company is the holding
company for EagleBank, which commenced operations in 1998. The Bank
is headquartered in Bethesda, Maryland, and operates through
eighteen full service branch offices, located in Montgomery County,
Maryland, Washington, D.C. and Northern Virginia. The Company
focuses on building relationships with businesses, professionals
and individuals in its marketplace.
Conference Call: Eagle Bancorp will host a
conference call to discuss the third quarter 2013 financial results
on Tuesday, October 22, 2013 at 10:00 a.m. eastern daylight time.
The public is invited to listen to this conference call by
dialing 1.877.303.6220, conference ID Code is 75257711, or by
accessing the call on the Company's website,
www.eaglebankcorp.com. A replay of the conference call will
be available on the Company's website through November 5, 2013.
Forward-looking Statements: This press release
contains forward-looking statements within the meaning of the
Securities and Exchange Act of 1934, as amended, including
statements of goals, intentions, and expectations as to future
trends, plans, events or results of Company operations and policies
and regarding general economic conditions. In some cases,
forward-looking statements can be identified by use of words such
as "may," "will," "anticipates," "believes," "expects," "plans,"
"estimates," "potential," "continue," "should," and similar words
or phrases. These statements are based upon current and anticipated
economic conditions, nationally and in the Company's market,
interest rates and interest rate policy, competitive factors, and
other conditions which by their nature, are not susceptible to
accurate forecast and are subject to significant uncertainty.
Because of these uncertainties and the assumptions on which this
discussion and the forward-looking statements are based, actual
future operations and results in the future may differ materially
from those indicated herein. For details on factors that could
affect these expectations, see the risk factors and other
cautionary language included in the Company's Annual Report on Form
10-K for the year ended December 31, 2012 and in other periodic and
current reports filed with the SEC. Readers are cautioned
against placing undue reliance on any such forward-looking
statements. The Company's past results are not necessarily
indicative of future performance.
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Eagle Bancorp, Inc. |
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Consolidated Financial Highlights
(Unaudited) |
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|
(dollars in thousands, except per share
data) |
Nine Months
Ended |
Three Months
Ended |
|
September
30, |
September
30, |
|
2013 |
2012 |
2013 |
2012 |
Income Statements: |
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|
|
Total interest income |
$ 115,642 |
$ 103,779 |
$ 39,724 |
$ 36,636 |
Total interest expense |
9,566 |
10,987 |
3,021 |
3,328 |
Net interest income |
106,076 |
92,792 |
36,703 |
33,308 |
Provision for credit losses |
7,094 |
12,051 |
1,372 |
3,638 |
Net interest income after provision for
credit losses |
98,982 |
80,741 |
35,331 |
29,670 |
Noninterest income (before investment
gains & extinguisment of debt) |
20,389 |
15,068 |
5,236 |
4,916 |
Gain on sale of investment
securities |
23 |
765 |
-- |
464 |
Loss on early extinguishment of debt |
-- |
(529) |
-- |
(529) |
Total noninterest income |
20,412 |
15,304 |
5,236 |
4,851 |
Total noninterest expense |
63,055 |
56,206 |
21,673 |
19,107 |
Income before income tax expense |
56,339 |
39,839 |
18,894 |
15,414 |
Income tax expense |
21,335 |
14,748 |
7,137 |
5,739 |
Net income |
35,004 |
25,091 |
11,757 |
9,675 |
Preferred stock dividends and discount
accretion |
425 |
425 |
142 |
142 |
Net income available to common
shareholders |
$ 34,579 |
$ 24,666 |
$ 11,615 |
$ 9,533 |
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Per Share Data (1): |
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Earnings per weighted average common share,
basic |
$ 1.35 |
$ 1.09 |
$ 0.45 |
$ 0.41 |
Earnings per weighted average common share,
diluted |
$ 1.31 |
$ 1.07 |
$ 0.44 |
$ 0.40 |
Weighted average common shares outstanding,
basic |
25,689,332 |
22,538,239 |
25,784,287 |
23,158,050 |
Weighted average common shares outstanding,
diluted |
26,304,235 |
23,115,928 |
26,426,093 |
23,766,606 |
Actual shares outstanding |
25,799,220 |
24,244,007 |
25,799,220 |
24,244,007 |
Book value per common share at period
end |
$ 12.62 |
$ 11.05 |
$ 12.62 |
$ 11.05 |
Tangible book value per common share at
period end (2) |
$ 12.48 |
$ 10.89 |
$ 12.48 |
$ 10.89 |
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Performance Ratios
(annualized): |
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Return on average assets |
1.38% |
1.15% |
1.35% |
1.27% |
Return on average common equity |
14.79% |
14.21% |
14.37% |
15.20% |
Net interest margin |
4.25% |
4.32% |
4.31% |
4.44% |
Efficiency ratio (3) |
49.85% |
52.00% |
51.68% |
50.07% |
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Other Ratios: |
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Allowance for credit losses to total
loans |
1.42% |
1.48% |
1.42% |
1.48% |
Allowance for credit losses to total
nonperforming loans |
144.08% |
109.74% |
144.08% |
109.74% |
Nonperforming loans to total loans |
0.98% |
1.35% |
0.98% |
1.35% |
Nonperforming assets to total assets |
1.11% |
1.25% |
1.11% |
1.25% |
Net charge-offs (annualized) to average
loans |
0.25% |
0.37% |
0.20% |
0.36% |
Common equity to total assets |
9.29% |
9.00% |
9.29% |
9.00% |
Tier 1 leverage ratio |
10.89% |
10.36% |
10.89% |
10.36% |
Tier 1 risk based capital ratio |
11.61% |
10.76% |
11.61% |
10.76% |
Total risk based capital ratio |
13.12% |
12.24% |
13.12% |
12.24% |
Tangible common equity to tangible assets
(2) |
9.19% |
8.88% |
9.19% |
8.88% |
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Loan Balances - Period End (in
thousands): |
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|
Commercial and Industrial |
$ 682,413 |
$ 534,133 |
$ 682,413 |
$ 534,133 |
Commercial real estate - owner
occupied |
$ 334,078 |
$ 306,148 |
$ 334,078 |
$ 306,148 |
Commercial real estate - income
producing |
$ 1,039,775 |
$ 942,769 |
$ 1,039,775 |
$ 942,769 |
1-4 Family mortgage |
$ 79,061 |
$ 57,953 |
$ 79,061 |
$ 57,953 |
Construction - commercial and
residential |
$ 507,653 |
$ 437,954 |
$ 507,653 |
$ 437,954 |
Construction - C&I (owner occupied) |
$ 35,612 |
$ 14,739 |
$ 35,612 |
$ 14,739 |
Home equity |
$ 108,889 |
$ 98,930 |
$ 108,889 |
$ 98,930 |
Other consumer |
$ 9,359 |
$ 5,043 |
$ 9,359 |
$ 5,043 |
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Average Balances (in
thousands): |
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Total assets |
$ 3,392,729 |
$ 2,914,217 |
$ 3,467,193 |
$ 3,022,584 |
Total earning assets |
$ 3,331,685 |
$ 2,869,459 |
$ 3,383,547 |
$ 2,977,950 |
Total loans held for sale |
$ 111,188 |
$ 124,736 |
$ 63,579 |
$ 158,011 |
Total loans |
$ 2,569,721 |
$ 2,226,837 |
$ 2,668,429 |
$ 2,346,046 |
Total deposits |
$ 2,871,617 |
$ 2,471,508 |
$ 2,939,705 |
$ 2,572,022 |
Total borrowings |
$ 136,419 |
$ 145,563 |
$ 136,590 |
$ 132,955 |
Total shareholders' equity |
$ 369,199 |
$ 288,411 |
$ 377,246 |
$ 306,072 |
(1) Per share amounts and the number of outstanding shares have
been adjusted to give effect to the 10% common stock dividend
distributed on June 14, 2013.
(2) The Company considers the following non-GAAP measurements
useful for investors, regulators, management and others to evaluate
capital adequacy and to compare against other financial
institutions. The table below provides a reconciliation of these
non-GAAP financial measures with financial measures defined by
GAAP.
Tangible common equity to tangible assets (the "tangible common
equity ratio") and tangible book value per common share are
non-GAAP financial measures derived from GAAP-based amounts. The
Company calculates the tangible common equity ratio by excluding
the balance of intangible assets from common shareholders' equity
and dividing by tangible assets. The Company calculates tangible
book value per common share by dividing tangible common equity by
common shares outstanding, as compared to book value per common
share, which the Company calculates by dividing common
shareholders' equity by common shares outstanding. The Company
considers this information important to shareholders' as tangible
equity is a measure that is consistent with the calculation of
capital for bank regulatory purposes, which excludes intangible
assets from the calculation of risk based ratios.
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GAAP Reconciliation
(Unaudited) |
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(dollars in thousands except per share
data) |
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|
Nine Months
Ended |
Twelve Months
Ended |
Nine Months
Ended |
|
September 30,
2013 |
December 31,
2012 |
September 30,
2012 |
Common shareholders' equity |
$ 325,500 |
$ 293,376 |
$ 267,799 |
Less: Intangible assets |
(3,597) |
(3,785) |
(3,895) |
Tangible common equity |
$ 321,903 |
$ 289,591 |
$ 263,904 |
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Book value per common share |
$ 12.62 |
$ 11.62 |
$ 11.05 |
Less: Intangible book value per common
share |
(0.14) |
(0.15) |
(0.16) |
Tangible book value per common
share |
$ 12.48 |
$ 11.47 |
$ 10.89 |
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Total assets |
$ 3,504,928 |
$ 3,409,441 |
$ 2,976,188 |
Less: Intangible assets |
(3,597) |
(3,785) |
(3,895) |
Tangible assets |
$ 3,501,331 |
$ 3,405,656 |
$ 2,972,293 |
Tangible common equity
ratio |
9.19% |
8.50% |
8.88% |
(3) Computed by dividing noninterest expense by the sum of net
interest income and noninterest income.
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Eagle Bancorp, Inc. |
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Consolidated Balance Sheets
(Unaudited) |
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(dollars in thousands, except per share
data) |
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Assets |
September 30,
2013 |
December 31,
2012 |
September 30,
2012 |
Cash and due from banks |
$ 8,013 |
$ 7,439 |
$ 6,780 |
Federal funds sold |
3,844 |
7,852 |
4,173 |
Interest bearing deposits with banks and
other short-term investments |
208,522 |
324,043 |
46,752 |
Investment securities available for sale, at
fair value |
355,830 |
299,820 |
296,363 |
Federal Reserve and Federal Home Loan Bank
stock |
11,246 |
10,694 |
12,031 |
Loans held for sale |
39,206 |
226,923 |
171,241 |
Loans |
2,796,840 |
2,493,095 |
2,397,669 |
Less allowance for credit losses |
(39,687) |
(37,492) |
(35,582) |
Loans, net |
2,757,153 |
2,455,603 |
2,362,087 |
Premises and equipment, net |
16,319 |
15,261 |
14,472 |
Deferred income taxes |
25,982 |
19,128 |
16,413 |
Bank owned life insurance |
29,555 |
14,135 |
14,036 |
Intangible assets, net |
3,597 |
3,785 |
3,895 |
Other real estate owned |
11,285 |
5,299 |
4,923 |
Other assets |
34,376 |
19,459 |
23,022 |
Total Assets |
$ 3,504,928 |
$ 3,409,441 |
$ 2,976,188 |
|
|
|
|
Liabilities and Shareholders'
Equity |
|
|
|
Deposits: |
|
|
|
Noninterest bearing demand |
$ 898,831 |
$ 881,390 |
$ 796,654 |
Interest bearing transaction |
104,004 |
113,813 |
112,901 |
Savings and money market |
1,538,630 |
1,374,869 |
1,180,894 |
Time, $100,000 or more |
249,594 |
232,875 |
242,159 |
Other time |
193,000 |
294,275 |
182,381 |
Total deposits |
2,984,059 |
2,897,222 |
2,514,989 |
Customer repurchase agreements |
82,266 |
101,338 |
75,368 |
Other short-term borrowings |
-- |
-- |
10,000 |
Long-term borrowings |
39,300 |
39,300 |
39,300 |
Other liabilities |
17,203 |
21,605 |
12,132 |
Total liabilities |
3,122,828 |
3,059,465 |
2,651,789 |
|
|
|
|
Shareholders' Equity |
|
|
|
Preferred stock, par value $.01 per share,
shares authorized 1,000,000, |
|
|
|
Series B, $1,000 per share liquidation
preference, shares issued and outstanding 56,600 at September 30,
2013, December 31, 2012 and September 30, 2012 |
56,600 |
56,600 |
56,600 |
Common stock, par value $.01 per share;
shares authorized 50,000,000, shares issued and outstanding
25,799,220, 22,954,889 and 22,040,006 respectively |
252 |
226 |
217 |
Warrant |
946 |
946 |
946 |
Additional paid in capital |
241,131 |
180,593 |
164,522 |
Retained earnings |
84,534 |
106,146 |
96,088 |
Accumulated other comprehensive (loss)
income |
(1,363) |
5,465 |
6,026 |
Total Shareholders'
Equity |
382,100 |
349,976 |
324,399 |
Total Liabilities and
Shareholders' Equity |
$ 3,504,928 |
$ 3,409,441 |
$ 2,976,188 |
|
|
|
|
|
Eagle Bancorp, Inc. |
|
|
|
|
Consolidated Statements of Operations
(Unaudited) |
|
|
|
|
(dollars in thousands, except per share
data) |
|
|
|
|
|
Nine Months
Ended |
Three Months
Ended |
|
September
30, |
September
30, |
Interest Income |
2013 |
2012 |
2013 |
2012 |
Interest and fees on loans |
$ 109,479 |
$ 98,161 |
$ 37,457 |
$ 34,805 |
Interest and dividends on investment
securities |
5,589 |
5,279 |
2,082 |
1,735 |
Interest on balances with other banks and
short-term investments |
564 |
298 |
182 |
83 |
Interest on federal funds sold |
10 |
41 |
3 |
13 |
Total interest income |
115,642 |
103,779 |
39,724 |
36,636 |
Interest Expense |
|
|
|
|
Interest on deposits |
8,122 |
9,130 |
2,544 |
2,722 |
Interest on customer repurchase
agreements |
197 |
250 |
64 |
68 |
Interest on short-term borrowings |
-- |
2 |
-- |
2 |
Interest on long-term borrowings |
1,247 |
1,605 |
413 |
536 |
Total interest expense |
9,566 |
10,987 |
3,021 |
3,328 |
Net Interest
Income |
106,076 |
92,792 |
36,703 |
33,308 |
Provision for Credit
Losses |
7,094 |
12,051 |
1,372 |
3,638 |
Net Interest Income After Provision
For Credit Losses |
98,982 |
80,741 |
35,331 |
29,670 |
|
|
|
|
|
Noninterest Income |
|
|
|
|
Service charges on deposits |
3,351 |
2,902 |
1,115 |
988 |
Gain on sale of loans |
13,355 |
9,867 |
2,938 |
3,144 |
Gain on sale of investment
securities |
23 |
765 |
-- |
464 |
Loss on early extinguishment of debt |
-- |
(529) |
-- |
(529) |
Increase in the cash surrender value
of bank owned life insurance |
420 |
294 |
231 |
100 |
Other income |
3,263 |
2,005 |
952 |
684 |
Total noninterest income |
20,412 |
15,304 |
5,236 |
4,851 |
Noninterest Expense |
|
|
|
|
Salaries and employee benefits |
34,722 |
31,520 |
12,187 |
10,807 |
Premises and equipment expenses |
8,949 |
7,541 |
3,222 |
2,562 |
Marketing and advertising |
1,167 |
1,340 |
426 |
497 |
Data processing |
4,456 |
3,273 |
1,386 |
1,066 |
Legal, accounting and professional
fees |
2,586 |
3,315 |
984 |
1,073 |
FDIC insurance |
1,780 |
1,553 |
584 |
485 |
Other expenses |
9,395 |
7,664 |
2,884 |
2,617 |
Total noninterest expense |
63,055 |
56,206 |
21,673 |
19,107 |
Income Before Income Tax
Expense |
56,339 |
39,839 |
18,894 |
15,414 |
Income Tax Expense |
21,335 |
14,748 |
7,137 |
5,739 |
Net Income |
35,004 |
25,091 |
11,757 |
9,675 |
Preferred Stock
Dividends |
425 |
425 |
142 |
142 |
Net Income Available to Common
Shareholders |
$ 34,579 |
$ 24,666 |
$ 11,615 |
$ 9,533 |
|
|
|
|
|
Earnings Per Common Share
(1) |
|
|
|
|
Basic |
$ 1.35 |
$ 1.09 |
$ 0.45 |
$ 0.41 |
Diluted |
$ 1.31 |
$ 1.07 |
$ 0.44 |
$ 0.40 |
|
|
|
|
|
(1) Per share amounts have been
adjusted to give effect to the 10% common stock dividend paid on
June 14, 2013. |
|
|
Eagle Bancorp,
Inc. |
|
Consolidated Average
Balances, Interest Yields And Rates (Unaudited) |
|
(dollars in thousands) |
|
|
|
|
|
|
|
|
|
|
Three Months
Ended September 30, |
|
|
2013 |
2012 |
|
|
Average Balance |
Interest |
Average
Yield/Rate |
Average Balance |
Interest |
Average
Yield/Rate |
|
ASSETS |
|
|
|
|
|
|
|
Interest earning assets: |
|
|
|
|
|
|
|
Interest bearing deposits with other banks
and other short-term investments |
$ 289,647 |
$ 182 |
0.25% |
$ 137,265 |
$ 83 |
0.24% |
|
Loans held for sale (1) |
63,579 |
590 |
3.71% |
158,011 |
1,403 |
3.55% |
|
Loans (1) (2) |
2,668,429 |
36,867 |
5.48% |
2,346,046 |
33,402 |
5.66% |
|
Investment securities available for sale
(2) |
355,358 |
2,082 |
2.32% |
318,584 |
1,735 |
2.17% |
|
Federal funds sold |
6,534 |
3 |
0.18% |
18,044 |
13 |
0.29% |
|
Total interest earning assets |
3,383,547 |
39,724 |
4.66% |
2,977,950 |
36,636 |
4.89% |
|
|
|
|
|
|
|
|
|
Total noninterest earning assets |
123,385 |
|
|
78,731 |
|
|
|
Less: allowance for credit losses |
39,739 |
|
|
34,097 |
|
|
|
Total noninterest earning
assets |
83,646 |
|
|
44,634 |
|
|
|
TOTAL ASSETS |
$ 3,467,193 |
|
|
$ 3,022,584 |
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS'
EQUITY |
|
|
|
|
|
|
|
Interest bearing liabilities: |
|
|
|
|
|
|
|
Interest bearing transaction |
$ 102,153 |
$ 74 |
0.29% |
$ 113,162 |
$ 64 |
0.22% |
|
Savings and money market |
1,571,804 |
1,453 |
0.37% |
1,198,955 |
1,385 |
0.46% |
|
Time deposits |
454,134 |
1,017 |
0.89% |
427,829 |
1,273 |
1.18% |
|
Total interest bearing
deposits |
2,128,091 |
2,544 |
0.47% |
1,739,946 |
2,722 |
0.62% |
|
Customer repurchase agreements |
97,290 |
64 |
0.26% |
81,916 |
68 |
0.33% |
|
Other short-term borrowings |
-- |
-- |
-- |
2,065 |
2 |
-- |
|
Long-term borrowings |
39,300 |
413 |
4.11% |
48,974 |
536 |
4.29% |
|
Total interest bearing
liabilities |
2,264,681 |
3,021 |
0.53% |
1,872,901 |
3,328 |
0.71% |
|
|
|
|
|
|
|
|
|
Noninterest bearing liabilities: |
|
|
|
|
|
|
|
Noninterest bearing demand |
811,614 |
|
|
832,076 |
|
|
|
Other liabilities |
13,652 |
|
|
11,535 |
|
|
|
Total noninterest bearing
liabilities |
825,266 |
|
|
843,611 |
|
|
|
|
|
|
|
|
|
|
|
Shareholders' equity |
377,246 |
|
|
306,072 |
|
|
|
TOTAL LIABILITIES AND SHAREHOLDERS'
EQUITY |
$ 3,467,193 |
|
|
$ 3,022,584 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income |
|
$ 36,703 |
|
|
$ 33,308 |
|
|
Net interest spread |
|
|
4.13% |
|
|
4.18% |
|
Net interest margin |
|
|
4.31% |
|
|
4.44% |
|
|
|
|
|
|
|
|
|
(1) Loans placed on nonaccrual
status are included in average balances. Net loan fees and late
charges included in interest income on loans totaled $1.9 million
and $1.4 million for the three months ended September 30, 2013
and 2012, respectively. |
(2) Interest and fees on loans
and investments exclude tax equivalent adjustments. |
|
|
Eagle Bancorp,
Inc. |
Consolidated Average
Balances, Interest Yields and Rates (Unaudited) |
(dollars in thousands) |
|
|
|
|
|
|
|
|
Nine Months Ended
September 30, |
|
2013 |
2012 |
|
Average Balance |
Interest |
Average
Yield/Rate |
Average Balance |
Interest |
Average
Yield/Rate |
ASSETS |
|
|
|
|
|
|
Interest earning assets: |
|
|
|
|
|
|
Interest bearing deposits with other banks
and other short-term investments |
$ 306,037 |
$ 564 |
0.25% |
$ 161,840 |
$ 298 |
0.25% |
Loans held for sale (1) |
111,188 |
2,858 |
3.43% |
124,736 |
3,345 |
3.58% |
Loans (1) (2) |
2,569,721 |
106,621 |
5.55% |
2,226,837 |
94,816 |
5.69% |
Investment securities available for sale
(2) |
337,218 |
5,589 |
2.22% |
337,325 |
5,279 |
2.09% |
Federal funds sold |
7,521 |
10 |
0.18% |
18,721 |
41 |
0.29% |
Total interest earning assets |
3,331,685 |
115,642 |
4.64% |
2,869,459 |
103,779 |
4.83% |
|
|
|
|
|
|
|
Total noninterest earning assets |
99,956 |
|
|
76,902 |
|
|
Less: allowance for credit losses |
38,912 |
|
|
32,144 |
|
|
Total noninterest earning
assets |
61,044 |
|
|
44,758 |
|
|
TOTAL ASSETS |
$ 3,392,729 |
|
|
$ 2,914,217 |
|
|
|
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS'
EQUITY |
|
|
|
|
|
|
Interest bearing liabilities: |
|
|
|
|
|
|
Interest bearing transaction |
$ 103,526 |
$ 226 |
0.29% |
$ 89,529 |
$ 195 |
0.29% |
Savings and money market |
1,481,309 |
4,294 |
0.39% |
1,139,957 |
4,419 |
0.52% |
Time deposits |
492,609 |
3,602 |
0.98% |
485,043 |
4,516 |
1.24% |
Total interest bearing
deposits |
2,077,444 |
8,122 |
0.52% |
1,714,529 |
9,130 |
0.71% |
Customer repurchase agreements |
97,088 |
197 |
0.27% |
95,644 |
250 |
0.35% |
Other short-term borrowings |
31 |
-- |
-- |
728 |
2 |
-- |
Long-term borrowings |
39,300 |
1,247 |
4.18% |
49,191 |
1,605 |
4.29% |
Total interest bearing
liabilities |
2,213,863 |
9,566 |
0.58% |
1,860,092 |
10,987 |
0.79% |
|
|
|
|
|
|
|
Noninterest bearing liabilities: |
|
|
|
|
|
|
Noninterest bearing demand |
794,173 |
|
|
756,979 |
|
|
Other liabilities |
15,494 |
|
|
8,735 |
|
|
Total noninterest bearing
liabilities |
809,667 |
|
|
765,714 |
|
|
|
|
|
|
|
|
|
Shareholders' equity |
369,199 |
|
|
288,411 |
|
|
TOTAL LIABILITIES AND SHAREHOLDERS'
EQUITY |
$ 3,392,729 |
|
|
$ 2,914,217 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income |
|
$ 106,076 |
|
|
$ 92,792 |
|
Net interest spread |
|
|
4.06% |
|
|
4.04% |
Net interest margin |
|
|
4.25% |
|
|
4.32% |
|
|
|
|
|
|
|
(1) Loans placed on nonaccrual
status are included in average balances. Net loan fees and late
charges included in interest income on loans totaled $5.6 million
and $3.7 million for the nine months ended September 30, 2013 and
2012, respectively. |
(2) Interest and fees on loans
and investments exclude tax equivalent adjustments. |
|
|
|
|
|
|
|
|
|
Eagle Bancorp, Inc. |
|
|
|
|
|
|
|
|
Statements of Income and Highlights
Quarterly Trends (Unaudited) |
|
|
|
|
|
|
|
|
(dollars in thousands, except per share
data) |
|
|
|
|
|
|
|
|
|
Three Months
Ended |
|
September 30, |
June 30, |
March 31, |
December 31, |
September 30, |
June 30, |
March 31, |
December 31, |
Income Statements: |
2013 |
2013 |
2013 |
2012 |
2012 |
2012 |
2012 |
2011 |
Total interest income |
$ 39,724 |
$ 37,985 |
$ 37,933 |
$ 38,164 |
$ 36,636 |
$ 34,575 |
$ 32,568 |
$ 33,091 |
Total interest expense |
3,021 |
3,121 |
3,424 |
3,427 |
3,328 |
3,561 |
4,098 |
4,820 |
Net interest income |
36,703 |
34,864 |
34,509 |
34,737 |
33,308 |
31,014 |
28,470 |
28,271 |
Provision for credit losses |
1,372 |
2,357 |
3,365 |
4,139 |
3,638 |
4,443 |
3,970 |
2,765 |
Net interest income after provision for
credit losses |
35,331 |
32,507 |
31,144 |
30,598 |
29,670 |
26,571 |
24,500 |
25,506 |
Noninterest income (before
investment gains/losses & extinguishment of debt) |
5,236 |
7,065 |
8,088 |
6,135 |
4,916 |
4,293 |
5,859 |
3,864 |
Gain/(loss) on sale of investment
securities |
-- |
-- |
23 |
(75) |
464 |
148 |
153 |
-- |
Loss on early extinguishment of
debt |
-- |
-- |
-- |
-- |
(529) |
-- |
-- |
-- |
Total noninterest income |
5,236 |
7,065 |
8,111 |
6,060 |
4,851 |
4,441 |
6,012 |
3,864 |
Salaries and employee benefits |
12,187 |
11,335 |
11,200 |
12,164 |
10,807 |
10,289 |
10,424 |
10,183 |
Premises and equipment |
3,222 |
2,927 |
2,800 |
2,677 |
2,562 |
2,469 |
2,510 |
2,389 |
Marketing and advertising |
426 |
394 |
347 |
419 |
497 |
557 |
286 |
411 |
Other expenses |
5,838 |
6,029 |
6,350 |
5,065 |
5,241 |
5,222 |
5,342 |
5,324 |
Total noninterest expense |
21,673 |
20,685 |
20,697 |
20,325 |
19,107 |
18,537 |
18,562 |
18,307 |
Income before income tax expense |
18,894 |
18,887 |
18,558 |
16,333 |
15,414 |
12,475 |
11,950 |
11,063 |
Income tax expense |
7,137 |
7,212 |
6,986 |
6,135 |
5,739 |
4,692 |
4,317 |
3,889 |
Net income |
11,757 |
11,675 |
11,572 |
10,198 |
9,675 |
7,783 |
7,633 |
7,174 |
Preferred stock dividends and discount
accretion |
142 |
142 |
141 |
141 |
142 |
142 |
141 |
142 |
Net income available to common
shareholders |
$ 11,615 |
$ 11,533 |
$ 11,431 |
$ 10,057 |
$ 9,533 |
$ 7,641 |
$ 7,492 |
$ 7,032 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Per Share Data (1): |
|
|
|
|
|
|
|
|
Earnings per weighted average common share,
basic |
$ 0.45 |
$ 0.45 |
$ 0.45 |
$ 0.40 |
$ 0.41 |
$ 0.34 |
$ 0.34 |
$ 0.32 |
Earnings per weighted average common share,
diluted |
$ 0.44 |
$ 0.44 |
$ 0.44 |
$ 0.39 |
$ 0.40 |
$ 0.33 |
$ 0.33 |
$ 0.31 |
Weighted average common shares outstanding,
basic |
25,784,287 |
25,742,185 |
25,518,523 |
24,915,837 |
23,158,050 |
22,327,796 |
22,122,043 |
21,911,377 |
Weighted average common shares outstanding,
diluted |
26,426,093 |
26,334,355 |
26,222,041 |
25,601,623 |
23,766,606 |
22,888,151 |
22,686,049 |
22,407,119 |
Actual shares outstanding |
25,799,220 |
25,764,542 |
25,728,162 |
25,250,378 |
24,244,007 |
22,650,356 |
22,242,183 |
21,948,128 |
Book value per common share at period
end |
$ 12.62 |
$ 12.14 |
$ 11.86 |
$ 11.62 |
$ 11.05 |
$ 10.32 |
$ 9.86 |
$ 9.57 |
|
|
|
|
|
|
|
|
|
Performance Ratios
(annualized): |
|
|
|
|
|
|
|
|
Return on average assets |
1.35% |
1.41% |
1.39% |
1.25% |
1.27% |
1.08% |
1.08% |
0.91% |
Return on average common equity |
14.37% |
14.75% |
15.29% |
13.95% |
15.20% |
13.52% |
13.80% |
13.40% |
Net interest margin |
4.31% |
4.27% |
4.20% |
4.31% |
4.44% |
4.39% |
4.11% |
3.65% |
Efficiency ratio (2) |
51.68% |
49.33% |
48.56% |
49.82% |
50.07% |
52.28% |
53.83% |
56.97% |
|
|
|
|
|
|
|
|
|
Other Ratios: |
|
|
|
|
|
|
|
|
Allowance for credit losses to total loans
(3) |
1.42% |
1.47% |
1.52% |
1.50% |
1.48% |
1.47% |
1.46% |
1.44% |
Nonperforming loans to total loans
(3) |
0.98% |
0.87% |
1.11% |
1.23% |
1.35% |
1.42% |
1.68% |
1.59% |
Nonperforming assets to total assets |
1.11% |
1.05% |
1.12% |
1.06% |
1.25% |
1.26% |
1.41% |
1.27% |
Net charge-offs (annualized) to average loans
(3) |
0.20% |
0.24% |
0.33% |
0.37% |
0.36% |
0.40% |
0.34% |
0.34% |
Tier 1 leverage ratio |
10.89% |
10.81% |
10.39% |
10.44% |
10.36% |
9.63% |
9.33% |
8.21% |
Tier 1 risk based capital ratio |
11.61% |
11.13% |
11.08% |
10.80% |
10.76% |
10.02% |
10.08% |
10.33% |
Total risk based capital ratio |
13.12% |
12.53% |
12.50% |
12.20% |
12.24% |
11.53% |
11.59% |
11.84% |
|
|
|
|
|
|
|
|
|
Average Balances (in
thousands): |
|
|
|
|
|
|
|
|
Total assets |
$ 3,467,193 |
$ 3,331,677 |
$ 3,378,362 |
$ 3,247,498 |
$ 3,022,584 |
$ 2,888,188 |
$ 2,830,693 |
$ 3,111,952 |
Total earning assets |
$ 3,383,547 |
$ 3,279,034 |
$ 3,331,930 |
$ 3,203,462 |
$ 2,977,950 |
$ 2,844,491 |
$ 2,784,747 |
$ 3,071,903 |
Total loans held for sale |
$ 63,579 |
$ 91,781 |
$ 179,476 |
$ 186,122 |
$ 158,011 |
$ 95,734 |
$ 120,098 |
$ 177,116 |
Total loans |
$ 2,668,429 |
$ 2,557,811 |
$ 2,480,862 |
$ 2,442,418 |
$ 2,346,046 |
$ 2,246,644 |
$ 2,086,511 |
$ 2,030,986 |
Total deposits |
$ 2,939,705 |
$ 2,810,033 |
$ 2,864,305 |
$ 2,748,567 |
$ 2,572,022 |
$ 2,447,985 |
$ 2,393,413 |
$ 2,652,707 |
Total borrowings |
$ 136,590 |
$ 137,337 |
$ 135,315 |
$ 137,525 |
$ 132,955 |
$ 150,644 |
$ 153,227 |
$ 183,632 |
Total stockholders' equity |
$ 377,246 |
$ 370,302 |
$ 359,859 |
$ 343,401 |
$ 306,072 |
$ 284,040 |
$ 274,923 |
$ 264,833 |
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|
|
|
|
|
|
|
(1) Per share amounts and the
number of outstanding shares have been adjusted to give effect to
the 10% common stock dividend paid on June 14, 2013. |
(2) Computed by dividing
noninterest expense by the sum of net interest income and
noninterest income. |
(3) Excludes loans held for
sale. |
CONTACT: EAGLE BANCORP, INC.
Michael T. Flynn
301.986.1800
Eagle Bancorp (NASDAQ:EGBN)
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