Eagle Bancorp, Inc. (the “Company”) (NASDAQ:EGBN), the parent
company of EagleBank, today announced quarterly net income of $15.6
million ($30.2 million on an operating basis) for the three months
ended December 31, 2017, a 39% decrease on a net income basis (and
a 17% increase on an operating basis) over the $25.7 million net
income for the three months ended December 31, 2016. Quarterly
income on an operating basis continued a 36 quarter trend of record
earnings.
For the fourth quarter and full year 2017,
operating earnings exclude one time charges to reduce the carrying
value of deferred tax assets by $14.6 million, required as a result
of the reduction in corporate income tax rates to 21% in the Tax
Cuts and Jobs act of 2017 (“Tax Reform”). Tax Reform was enacted in
late December and is further discussed below. Where appropriate,
parenthetical references refer to operating earnings, which the
Company believes are more relevant comparisons to prior period
results of operations. Reconciliations of GAAP earnings to
operating earnings are contained in the tables that follow.
Net income for the three months ended December
31, 2017 was $0.46 per basic and $0.45 per diluted common share
($0.88 per basic and diluted common share on an operating basis),
as compared to $0.76 per basic common share and $0.75 per diluted
common share for the same period in 2016.
For the year ended December 31, 2017, the
Company’s net income was $100.2 million ($114.8 million on an
operating basis), a 3% increase (18% increase on an operating
basis) over the $97.7 million for the year ended December 31,
2016.
Net income was $2.94 per basic common share and
$2.92 per diluted common share for the year ended December 31, 2017
($3.36 per basic common share and $3.35 per diluted common share on
an operating basis), as compared to $2.91 per basic common share
and $2.86 per diluted common share for 2016.
“We are very pleased to report a continued trend
of balanced and consistently strong financial performance,” noted
Ronald D. Paul, Chairman and Chief Executive Officer of Eagle
Bancorp, Inc. “Our net income in the fourth quarter (excluding the
adjustment reflecting the impact of Tax Reform) represents 36
consecutive quarters of increasing operating earnings dating back
to the first quarter of 2009. This strong financial performance has
resulted from a combination of steady average balance sheet growth
and related revenue growth, coupled with a strong net interest
margin. Additionally, we have sustained very solid asset quality
over an extended period along with favorable operating leverage.”
Loan balances increased 5% in the fourth quarter while deposit
balances decreased by 1% from September 30, 2017. Mr. Paul added,
“While we experienced declines in deposit balances late in 2017, we
consider average balances more indicative of our growth
performance, since maintaining favorable averages translates to
improved revenue. During the fourth quarter of 2017, average
deposits increased 5% over the third quarter and average loans
increased 4%. Average growth in our balance sheet combined with a
continuing favorable net interest margin contributed to revenue
growth increases of 15% in the fourth quarter 2017 over the fourth
quarter of 2016 and by 8% over the third quarter of 2017. For the
full year 2017 over 2016, revenue growth was 10%. The net interest
margin in the fourth quarter was stable at 4.13% and favorable as
compared to peer banking companies. The loan pipeline remains
strong, and the yield on the loan portfolio in the fourth quarter
was 2 basis points higher at 5.21% versus 5.19% for the third
quarter, as the Company’s loan portfolio yield continues to benefit
from both higher general market interest rates and disciplined loan
pricing. Importantly, our credit quality remained very strong in
the fourth quarter as the level of nonperforming assets was just
0.19% of total assets at December 31, 2017. Mr. Paul added, “the
Company’s operating efficiency, another key driver of financial
performance, improved even further in the fourth quarter from
a strong position. Noninterest expense in the fourth
quarter of 2017 was less than 1% over the same period in 2016 while
total revenue increased by 15% resulting in a continued favorable
efficiency ratio.” For the fourth quarter in 2017, the efficiency
ratio was 35.12%, as compared to 37.49% in the third quarter of
2017 and 40.22% for the fourth quarter of 2016. Mr. Paul added,
“The Company remains committed to cost management measures and
strong productivity.”
Pre-tax, pre-provision income was $55.1 million
for the fourth quarter of 2017 a 24% increase over $44.3 million
for the fourth quarter of 2016 and a 12% increase over the $49.2
million for the third quarter of 2017.
The annualized return on average assets (“ROAA”)
was 0.82% (1.60% on an operating basis) for the fourth quarter of
2017 and 1.41% (1.62% on an operating basis) for the twelve months
ended December 31, 2017. The annualized return on average common
equity (“ROACE”) was 6.49% (12.57% on an operating basis) for the
fourth quarter of 2017 and 11.06% (12.67% on an operating basis)
for the year ended December 31, 2017.
For the full year 2017, loans grew 13% and
averaged 11% higher. For the full year 2017, deposits increased 2%
and averaged 8% higher. For the full year 2017, total revenue
increased by 10% while total noninterest expenses increased 3%.
Pre-tax, pre-provision income was $194.7 million
for the full year 2017 as compared to $170.4 million for the full
year 2016, a 14% increase.
For the fourth quarter of 2017, the net interest
margin was 4.13%, as compared to 4.14% for the third quarter of
2017 and 3.95% for the fourth quarter of 2016. The average
liquidity position was higher in the fourth quarter due to higher
average deposit growth than loan growth and contributed to the 1
basis point decline in the net interest margin quarter over
quarter.
For the full year of 2017, the net interest
margin was 4.15% as compared to 4.16% for the year ended December
31, 2016. Higher short and intermediate term market interest rates
during 2017 resulted in higher yields on loans and investments and
higher funding costs. These interest rate moves also validated the
Company’s strategy of balanced interest rate risk management. Mr.
Paul noted, “In the current environment, the Company has continued
its emphasis on disciplined pricing for both new loans and funding
sources, which has resulted in the Company maintaining a superior
net interest margin.”
Asset quality measures improved further in the
fourth quarter of 2017 from an already solid position. At December
31, 2017, the Company’s nonperforming loans amounted to $13.2
million (0.21% of total loans) as compared to $16.6 million (0.27%
of total loans) at September 30, 2017 and $17.9 million (0.31% of
total loans) at December 31, 2016. Nonperforming assets amounted to
$14.6 million (0.19% of total assets) at December 31, 2017 compared
to $18.0 million (0.24% of total assets) at September 30, 2017 and
$20.6 million (0.30% of total assets) at December 31, 2016. For the
year of 2017, the Company recorded net charge-offs of $3.3 million
(0.06% of average loans), as compared to net charge-offs of $4.9
million (0.09% of average loans) for the year of 2016.
Management continues to remain attentive to any
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 December 31, 2017 allowance for credit losses, at 1.01% of
total loans (excluding loans held for sale), is adequate to absorb
potential credit losses within the loan portfolio as of the end of
the year. The allowance for credit losses was 1.03% of total loans
at September 30, 2017 and 1.04% at December 31, 2016. The allowance
for credit losses represented 489% of nonperforming loans at
December 31, 2017.
Total assets at December 31, 2017 were $7.48
billion, a 1% increase as compared to $7.39 billion at September
30, 2017, and a 9% increase as compared to $6.89 billion at
December 31, 2016. Total loans (excluding loans held for sale) were
$6.41 billion at December 31, 2017, a 5% increase as compared to
$6.08 billion at September 30, 2017, and a 13% increase as compared
to $5.68 billion at December 31, 2016. Loans held for sale amounted
to $25.1 million at December 31, 2017 as compared to $26.0 million
at September 30, 2017, a 3% decrease, and $51.6 million at December
31, 2016, a 51% decrease. The investment portfolio totaled $589.3
million at December 31, 2017, a 6% increase from the $556.0 million
balance at September 30, 2017. As compared to December 31, 2016,
the investment portfolio at December 31, 2017 increased by $51.2
million or 10%.
Total deposits at December 31, 2017 were $5.85
billion, compared to deposits of $5.91 billion at September 30,
2017, a 1% decrease, and deposits of $5.72 billion at December 31,
2016, a 2% increase. Total borrowed funds (excluding customer
repurchase agreements) were $541.9 million at December 31, 2017,
$416.8 million at September 30, 2017 and $216.5 million at December
31, 2016.
Total shareholders’ equity at December 31, 2017
increased 2%, to $950.4 million, compared to $934.0 million at
September 30, 2017, and increased 13%, from $842.8 million at
December 31, 2016. Growth in retained earnings has enhanced the
Company’s capital position well in excess of regulatory
requirements for well capitalized status. The total risk based
capital ratio was 15.02% at December 31, 2017, as compared to
15.30% at September 30, 2017, and 14.89% at December 31, 2016. In
addition, the tangible common equity ratio was 11.45% at December
31, 2017, compared to 11.35% at September 30, 2017 and 10.84% at
December 31, 2016.
Referring to the impact of the new corporate
income tax law as highlighted above; while the Company’s earnings
beginning in 2018 will benefit from the lower corporate income tax
marginal rates in the new legislation (The Tax Cuts and Jobs Act),
companies are required to revalue their deferred tax positions at
December 31, 2017 at the lower federal income tax rates. Since the
new law was enacted on December 22, 2017, this revaluation is
accounted for in the fourth quarter of 2017 through adjustments to
Income tax expense on the Consolidated Statements of Income. The
Company’s net deferred tax asset position revaluation is
attributable primarily to the timing difference created by the
allowance for loan losses being deductible at the lower U.S.
corporate income tax rate beginning in 2018, as opposed to the
higher rates in effect through December 31, 2017.
This adjustment increased Income tax expense for
the fourth quarter of 2017 and full year 2017 by $14.6 million
($0.42 per basic and $0.43 per diluted share). As a result of
reduced rates, the Company expects to incur substantially reduced
income tax expense in future periods. Excluding the discrete
adjustment for deferred tax assets, the effective tax rate in the
fourth quarter of 2017 was 40.8%. The higher effective rate was due
to the annual reconciliation of tax accounts following completion
and filing of the 2016 income tax
returns.
Analysis of the three months ended
December 31, 2017 compared to December 31, 2016
For the three months ended December 31, 2017,
the Company reported an annualized ROAA of 0.82% (1.60% on an
operating basis) as compared to 1.46% for the three months ended
December 31, 2016. The annualized ROACE for the three months ended
December 31, 2017 was 6.49% (12.57% on an operating basis), as
compared to 12.26% for the three months ended December 31,
2016.
Net interest income increased 12% for the three
months ended December 31, 2017 over the same period in 2016 ($75.4
million versus $67.0 million), resulting from growth in average
earning assets of 7% and an 18 basis point expansion of the net
interest margin. The net interest margin was 4.13% for the three
months ended December 31, 2017, as compared to 3.95% for the three
months ended December 31, 2016. The Company believes its net
interest margin remains favorable compared to peer banking
companies and that its disciplined approach to managing the loan
portfolio to a 5.21% yield for the fourth quarter of 2017 has been
a significant factor in its overall profitability.
The provision for credit losses was $4.1 million
for the three months ended December 31, 2017 as compared to $2.1
million for the three months ended December 31, 2016. The higher
provisioning in the fourth quarter of 2017, as compared to the
fourth quarter of 2016, is primarily due to higher loan growth
($327.3 million vs. $196.0 million) and higher net charge-offs. Net
charge-offs of $2.3 million in the fourth quarter of 2017
represented an annualized 0.15% of average loans, excluding loans
held for sale, as compared to a net recovery of $97 thousand, or an
annualized 0.01% of average loans, excluding loans held for sale,
in the fourth quarter of 2016. Net charge-offs in the fourth
quarter of 2017 were attributable primarily to net charge-offs in
construction - commercial and residential ($2.1 million).
Noninterest income for the three months ended
December 31, 2017 increased to $9.5 million from $7.0 million for
the three months ended December 31, 2016, due substantially to a
$1.2 million nonrecurring adjustment to a tax credit investment
resulting from the reversal of excess write downs in prior years.
The FHA business unit generated income of $948 thousand on
the origination, securitization, servicing and sale of FHA
Multifamily-Backed GNMA securities in the fourth quarter of 2017.
The residential mortgage unit had lower sales and
resulting gains on the sale of these loans in the fourth quarter of
2017 (gains of $2.3 million for the fourth quarter of 2017 versus
$3.1 million for the same period in 2016). Residential mortgage
loans closed were $136 million for the fourth quarter in 2017
versus $241 million for the fourth quarter of 2016. There was no
income related to FHA Multifamily-Backed GNMA securities in the
fourth quarter of 2016. The SBA business unit generated $893
thousand in revenue during the fourth quarter of 2017 compared to
$356 thousand for the same period in 2016 from sales of the
guaranteed portion on SBA loans. There were no gains or losses on
investment transactions in the fourth quarter of 2017 as compared
to a modest gain of $71 thousand in the fourth quarter of 2016.
The efficiency ratio, which measures the ratio
of noninterest expense to total revenue, was 35.12% for the fourth
quarter of 2017, as compared to 40.22% for the fourth quarter of
2016. Noninterest expenses totaled $29.8 million for the three
months ended December 31, 2017, as compared to $29.8 million for
the three months ended December 31, 2016. Salaries and employee
benefits expenses decreased $1.2 million in the fourth
quarter of 2017 as compared to the fourth quarter of 2016,
due to lower stock based and incentive compensation accruals and
lower health care costs, partially offset by higher salaries.
Premises and equipment expenses increased by $320 thousand
primarily due to rent and other occupancy cost increases as well as
cost increases associated with the expansion of our IT
infrastructure. Marketing and advertising expenses increased $278
thousand primarily due to costs associated with digital and print
advertising and sponsorships. Data processing costs increased by
$132 thousand primarily due to increased vendor fees. Legal,
accounting, and professional fees increased by $686 thousand due
substantially to consulting services, a portion of which relates to
recent short-sale stock activity.
The effective tax rate was substantially higher
(69.5%) for the fourth quarter 2017 as compared to 39.0% for the
same period in 2016 due primarily to tax rate changes earlier
discussed ($14.6 million deferred tax asset adjustment through tax
expense). Excluding this charge, the effective tax rate for the
fourth quarter was 40.8%, elevated from prior quarters due to
annual tax account reconciliation as earlier discussed.
Analysis of the year ended December 31,
2017 compared to December 31, 2016
For the year ended December 31, 2017, the
Company reported an annualized ROAA of 1.41% (1.62% on an operating
basis) as compared to 1.52% for the year ended December 31, 2016.
The annualized ROACE for the year ended December 31, 2017 was
11.06% (12.67% on an operating basis), as compared to 12.27% for
the year ended December 31, 2016.
Net interest income increased 10% for the year
ended December 31, 2017 over the same period in 2016 ($283.9
million versus $258.2 million), resulting from growth in average
earning assets of 10%. The net interest margin was 4.15% for the
year ended December 31, 2017 as compared to 4.16% for the same
period in 2016. The Company believes its net interest margin
remains favorable compared to peer banking companies and that its
disciplined approach to managing the loan portfolio yield to 5.17%
for the full year of 2017 has been a significant factor in its
overall profitability. Additionally, the percentage of average
noninterest bearing deposits to total deposits was 33% for the full
year of 2017 versus 30% for the same period in 2016.
The provision for credit losses was $9.0 million
for the year ended December 31, 2017 as compared to $11.3 million
for the year ended December 31, 2016. The lower provisioning during
2017, as compared to 2016, is due to lower net-charge-offs. Net
charge-offs of $3.3 million during 2017 represented an annualized
0.06% of average loans, excluding loans held for sale, as compared
to $4.9 million or an annualized 0.09% of average loans, excluding
loans held for sale, in 2016. Net charge-offs during 2017 were
attributable primarily to construction - commercial and residential
($1.7 million) and commercial real estate loans ($1.4 million).
Noninterest income for the year ended December
31, 2017 was $29.4 million as compared to $27.3 million for the
year ended December 31, 2016, an 8% increase. This increase was
primarily due to revenue associated with the origination,
securitization, servicing, and sale of FHA Multifamily-Backed GNMA
securities of $2.5 million together with a $1.2 million
nonrecurring adjustment to a tax credit investment balance
resulting from the reversal of excess write downs in prior years.
These increases were partially offset by fewer sales and related
gain on sales of both SBA loans ($808 thousand) and residential
mortgage loans ($2.0 million). Noninterest income was $28.8 million
for the year ended December 31, 2017, as compared to $26.1 million
for the same period in 2016, excluding gains on sales of investment
securities, an 11% increase.
Noninterest expenses totaled $118.6 million for
the year ended December 31, 2017, as compared to $115.0 million for
the year ended December 31, 2016, a 3% increase. Cost increases for
salaries and benefits were modest due to new hires and merit
increases, which were effectively offset by decreases in employee
benefit costs due to the prior year acceleration of restricted
stock awards, lower incentive compensation accruals and lower
health care costs. Marketing and advertising increased by $600
thousand due primarily to increased digital and print advertising
spend. Data processing increased by $473 thousand due primarily to
increased vendor fees associated with higher volumes and rates.
Legal, accounting and professional fees increased by $1.4 million
primarily due to consulting services and enhanced IT risk
management. Other expenses increased $614 thousand due to
numerous factors. For 2017, the efficiency ratio was 37.84% as
compared to 40.29% for the same period in 2016.
The financial information which follows provides
more detail on the Company’s financial performance for the three
and twelve months ended December 31, 2017 as compared to the three
and twelve months ended December 31, 2016 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, 2016 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 twenty-one 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 its fourth quarter and year
end 2017 financial results on Thursday, January 18, 2018 at 10:00
a.m. eastern savings time. The public is invited to listen to this
conference call by dialing 1.877.303.6220, conference ID Code is
8159837, 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 February 1, 2018.
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, 2016 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) |
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Three Months Ended December 31, |
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Twelve Months Ended December 31, |
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2017 |
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2016 |
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2017 |
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2016 |
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Income
Statements: |
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Total interest
income |
$ |
86,526 |
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|
$ |
75,795 |
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|
$ |
324,034 |
|
|
$ |
285,805 |
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Total interest
expense |
|
11,167 |
|
|
|
8,771 |
|
|
|
40,147 |
|
|
|
27,640 |
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Net interest
income |
|
75,359 |
|
|
|
67,024 |
|
|
|
283,887 |
|
|
|
258,165 |
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Provision for credit
losses |
|
4,087 |
|
|
|
2,112 |
|
|
|
8,971 |
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|
|
11,331 |
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Net interest income
after provision for credit losses |
|
71,272 |
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|
|
64,912 |
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|
274,916 |
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|
246,834 |
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Noninterest income
(before investment gains) |
|
9,496 |
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6,943 |
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28,831 |
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26,090 |
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Gain on sale of
investment securities |
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- |
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|
71 |
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|
|
542 |
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|
1,194 |
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Total noninterest
income |
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9,496 |
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|
7,014 |
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|
29,373 |
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|
27,284 |
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Total noninterest
expense |
|
29,803 |
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|
|
29,780 |
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|
118,552 |
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115,016 |
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Income before income
tax expense |
|
50,965 |
|
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|
42,146 |
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185,737 |
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159,102 |
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Income tax expense |
|
35,396 |
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16,429 |
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85,505 |
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61,395 |
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Net income |
$ |
15,569 |
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$ |
25,717 |
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$ |
100,232 |
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$ |
97,707 |
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Per Share
Data: |
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Earnings per weighted
average common share, basic |
$ |
0.46 |
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$ |
0.76 |
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$ |
2.94 |
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$ |
2.91 |
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Earnings per weighted
average common share, diluted |
$ |
0.45 |
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$ |
0.75 |
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$ |
2.92 |
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$ |
2.86 |
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Weighted average common
shares outstanding, basic |
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34,179,793 |
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33,650,963 |
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34,138,536 |
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33,587,254 |
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Weighted average common
shares outstanding, diluted |
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34,334,873 |
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34,233,940 |
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34,320,639 |
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34,181,616 |
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Actual shares
outstanding at period end |
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34,185,163 |
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34,023,850 |
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34,185,163 |
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34,023,850 |
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Book value per common
share at period end |
$ |
27.80 |
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|
$ |
24.77 |
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$ |
27.80 |
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|
$ |
24.77 |
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Tangible book value per
common share at period end (1) |
$ |
24.67 |
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$ |
21.61 |
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$ |
24.67 |
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$ |
21.61 |
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Performance
Ratios (annualized): |
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Return on average
assets |
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0.82 |
% |
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1.46 |
% |
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1.41 |
% |
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1.52 |
% |
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Return on average
common equity |
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6.49 |
% |
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12.26 |
% |
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11.06 |
% |
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12.27 |
% |
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Net interest
margin |
|
4.13 |
% |
|
|
3.95 |
% |
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4.15 |
% |
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4.16 |
% |
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Efficiency ratio
(2) |
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35.12 |
% |
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40.22 |
% |
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37.84 |
% |
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40.29 |
% |
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Other
Ratios: |
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Allowance for credit
losses to total loans (3) |
|
1.01 |
% |
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1.04 |
% |
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1.01 |
% |
|
|
1.04 |
% |
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Allowance for credit
losses to total nonperforming loans |
|
489.20 |
% |
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|
330.49 |
% |
|
|
489.20 |
% |
|
|
330.49 |
% |
|
Nonperforming loans to
total loans (3) |
|
0.21 |
% |
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|
0.31 |
% |
|
|
0.21 |
% |
|
|
0.31 |
% |
|
Nonperforming assets to
total assets |
|
0.19 |
% |
|
|
0.30 |
% |
|
|
0.19 |
% |
|
|
0.30 |
% |
|
Net charge-offs
(annualized) to average loans (3) |
|
0.15 |
% |
|
|
-0.01 |
% |
|
|
0.06 |
% |
|
|
0.09 |
% |
|
Common equity to total
assets |
|
12.71 |
% |
|
|
12.23 |
% |
|
|
12.71 |
% |
|
|
12.23 |
% |
|
Tier 1 capital (to
average assets) |
|
11.45 |
% |
|
|
10.72 |
% |
|
|
11.45 |
% |
|
|
10.72 |
% |
|
Total capital (to risk
weighted assets) |
|
15.02 |
% |
|
|
14.89 |
% |
|
|
15.02 |
% |
|
|
14.89 |
% |
|
Common equity tier 1
capital (to risk weighted assets) |
|
11.24 |
% |
|
|
10.80 |
% |
|
|
11.24 |
% |
|
|
10.80 |
% |
|
Tangible common equity
ratio (1) |
|
11.45 |
% |
|
|
10.84 |
% |
|
|
11.45 |
% |
|
|
10.84 |
% |
|
|
|
|
|
|
|
|
|
|
Loan Balances -
Period End (in thousands): |
|
|
|
|
|
|
|
|
Commercial and
Industrial |
$ |
1,375,939 |
|
|
$ |
1,200,728 |
|
|
$ |
1,375,939 |
|
|
$ |
1,200,728 |
|
|
Commercial real estate
- owner occupied |
$ |
755,444 |
|
|
$ |
640,870 |
|
|
$ |
755,444 |
|
|
$ |
640,870 |
|
|
Commercial real estate
- income producing |
$ |
3,047,095 |
|
|
$ |
2,509,517 |
|
|
$ |
3,047,095 |
|
|
$ |
2,509,517 |
|
|
1-4 Family
mortgage |
$ |
104,357 |
|
|
$ |
152,748 |
|
|
$ |
104,357 |
|
|
$ |
152,748 |
|
|
Construction -
commercial and residential |
$ |
973,141 |
|
|
$ |
932,531 |
|
|
$ |
973,141 |
|
|
$ |
932,531 |
|
|
Construction - C&I
(owner occupied) |
$ |
58,691 |
|
|
$ |
126,038 |
|
|
$ |
58,691 |
|
|
$ |
126,038 |
|
|
Home equity |
$ |
93,264 |
|
|
$ |
105,096 |
|
|
$ |
93,264 |
|
|
$ |
105,096 |
|
|
Other
consumer |
$ |
3,598 |
|
|
$ |
10,365 |
|
|
$ |
3,598 |
|
|
$ |
10,365 |
|
|
|
|
|
|
|
|
|
|
|
Average
Balances (in thousands): |
|
|
|
|
|
|
|
|
Total assets |
$ |
7,487,740 |
|
|
$ |
6,984,492 |
|
|
$ |
7,089,241 |
|
|
$ |
6,436,774 |
|
|
Total earning
assets |
$ |
7,242,994 |
|
|
$ |
6,754,934 |
|
|
$ |
6,853,815 |
|
|
$ |
6,210,603 |
|
|
Total loans |
$ |
6,207,505 |
|
|
$ |
5,591,790 |
|
|
$ |
5,939,985 |
|
|
$ |
5,338,716 |
|
|
Total deposits |
$ |
6,101,727 |
|
|
$ |
5,796,516 |
|
|
$ |
5,787,665 |
|
|
$ |
5,369,261 |
|
|
Total borrowings |
$ |
382,687 |
|
|
$ |
312,842 |
|
|
$ |
355,377 |
|
|
$ |
240,232 |
|
|
Total shareholders’
equity |
$ |
951,743 |
|
|
$ |
834,823 |
|
|
$ |
906,174 |
|
|
$ |
796,400 |
|
|
|
|
|
|
|
|
|
|
|
(1) 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 and as such is
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.
|
|
|
|
|
|
GAAP
Reconciliation (Unaudited) |
|
|
|
|
|
(dollars in thousands
except per share data) |
|
|
|
|
|
|
Year Ended |
|
|
Year Ended |
|
|
December 31, 2017 |
|
|
December 31, 2016 |
|
Common shareholders'
equity |
$ |
950,439 |
|
|
|
$ |
842,799 |
|
|
Less: Intangible
assets |
|
(106,617 |
) |
|
|
|
(107,419 |
) |
|
Tangible common
equity |
$ |
843,822 |
|
|
|
$ |
735,380 |
|
|
|
|
|
|
|
|
Book value per common
share |
$ |
27.80 |
|
|
|
$ |
24.77 |
|
|
Less: Intangible book
value per common share |
|
(3.12 |
) |
|
|
|
(3.16 |
) |
|
Tangible book
value per common share |
$ |
24.68 |
|
|
|
$ |
21.61 |
|
|
|
|
|
|
|
|
Total assets |
$ |
7,475,925 |
|
|
|
$ |
6,890,096 |
|
|
Less: Intangible
assets |
|
(107,212 |
) |
|
|
|
(107,419 |
) |
|
Tangible
assets |
$ |
7,368,713 |
|
|
|
$ |
6,782,677 |
|
|
Tangible common
equity ratio |
|
11.45 |
% |
|
|
|
10.84 |
% |
|
|
|
|
|
|
|
(2) Computed by dividing noninterest expense by the sum of net
interest income and noninterest income.
(3) Excludes loans held for sale.
|
|
|
|
|
|
|
|
|
|
|
|
|
Eagle Bancorp, Inc. |
|
|
|
|
|
|
|
|
|
|
|
|
GAAP
Reconciliation (Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
(dollars in thousands
except per share data) |
|
|
|
|
|
Three Months Ended December 31, |
|
Twelve Months Ended December 31, |
|
|
GAAP |
|
|
|
Non-GAAP |
|
GAAP |
|
|
|
Non-GAAP |
|
|
|
2017 |
|
|
Change |
|
|
2017 |
|
|
|
2017 |
|
|
Change |
|
|
2017 |
|
|
Income
Statements: |
|
|
|
|
|
|
|
|
|
|
|
|
Income tax expense |
|
35,396 |
|
|
|
(14,588 |
) |
|
|
20,808 |
|
|
|
85,505 |
|
|
|
(14,588 |
) |
|
|
70,917 |
|
|
Net income |
$ |
15,569 |
|
|
|
14,588 |
|
|
$ |
30,157 |
|
|
$ |
100,232 |
|
|
|
14,588 |
|
|
$ |
114,820 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Per Share
Data: |
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per weighted
average common share, basic |
$ |
0.46 |
|
|
$ |
0.42 |
|
|
$ |
0.88 |
|
|
$ |
2.94 |
|
|
$ |
0.42 |
|
|
$ |
3.36 |
|
|
Earnings per weighted
average common share, diluted |
$ |
0.45 |
|
|
$ |
0.43 |
|
|
$ |
0.88 |
|
|
$ |
2.92 |
|
|
$ |
0.43 |
|
|
$ |
3.35 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Performance
Ratios (annualized): |
|
|
|
|
|
|
|
|
|
|
|
|
Return on average
assets |
|
0.82 |
% |
|
|
|
|
1.60 |
% |
|
|
1.41 |
% |
|
|
|
|
1.62 |
% |
|
Return on average
common equity |
|
6.49 |
% |
|
|
|
|
12.57 |
% |
|
|
11.06 |
% |
|
|
|
|
12.67 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP |
|
|
|
Non-GAAP |
|
|
|
|
|
|
|
Assets |
December 31, 2017 |
|
Change |
|
December 31, 2017 |
|
|
|
|
|
|
|
Deferred income
taxes |
|
28,770 |
|
|
|
14,588 |
|
|
|
43,358 |
|
|
|
|
|
|
|
|
Total Assets |
$ |
7,475,925 |
|
|
$ |
14,588 |
|
|
$ |
7,490,513 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders'
Equity |
|
|
|
|
|
|
|
|
|
|
|
|
Retained
earnings |
|
431,544 |
|
|
|
14,588 |
|
|
|
446,132 |
|
|
|
|
|
|
|
|
Total Shareholders' Equity |
|
950,439 |
|
|
|
14,588 |
|
|
|
965,027 |
|
|
|
|
|
|
|
|
Total Liabilities and Shareholders' Equity |
$ |
7,475,925 |
|
|
|
14,588 |
|
|
$ |
7,490,513 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended December 31, |
|
Twelve Months Ended December 31, |
|
|
GAAP |
|
|
|
Non-GAAP |
|
GAAP |
|
|
|
Non-GAAP |
|
Interest
Income |
|
2017 |
|
|
Change |
|
|
2017 |
|
|
|
2017 |
|
|
Change |
|
|
2017 |
|
|
Income Tax
Expense |
|
35,396 |
|
|
|
(14,588 |
) |
|
|
20,808 |
|
|
|
85,505 |
|
|
|
(14,588 |
) |
|
|
70,917 |
|
|
Net
Income |
$ |
15,569 |
|
|
$ |
14,588 |
|
|
$ |
30,157 |
|
|
$ |
100,232 |
|
|
$ |
14,588 |
|
|
$ |
114,820 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings Per
Common Share |
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
$ |
0.46 |
|
|
$ |
0.42 |
|
|
$ |
0.88 |
|
|
$ |
2.94 |
|
|
$ |
0.42 |
|
|
$ |
3.36 |
|
|
Diluted |
$ |
0.45 |
|
|
$ |
0.43 |
|
|
$ |
0.88 |
|
|
$ |
2.92 |
|
|
$ |
0.43 |
|
|
$ |
3.35 |
|
|
|
|
|
|
|
|
Eagle Bancorp,
Inc. |
|
|
|
|
|
Consolidated
Balance Sheets (Unaudited) |
|
|
|
|
|
(dollars in thousands,
except per share data) |
|
|
|
|
|
|
|
|
|
|
|
Assets |
December 31, 2017 |
|
September 30, 2017 |
|
December 31, 2016 |
Cash and due from
banks |
$ |
7,445 |
|
|
$ |
8,246 |
|
|
$ |
8,076 |
|
Federal funds sold |
|
15,767 |
|
|
|
8,548 |
|
|
|
2,397 |
|
Interest bearing
deposits with banks and other short-term investments |
|
167,261 |
|
|
|
432,156 |
|
|
|
357,690 |
|
Investment securities
available for sale, at fair value |
|
589,268 |
|
|
|
556,026 |
|
|
|
538,108 |
|
Federal Reserve and
Federal Home Loan Bank stock |
|
36,324 |
|
|
|
30,980 |
|
|
|
21,600 |
|
Loans held for
sale |
|
25,096 |
|
|
|
25,980 |
|
|
|
51,629 |
|
Loans |
|
6,411,528 |
|
|
|
6,084,204 |
|
|
|
5,677,893 |
|
Less allowance for
credit losses |
|
(64,758 |
) |
|
|
(62,967 |
) |
|
|
(59,074 |
) |
Loans,
net |
|
6,346,770 |
|
|
|
6,021,237 |
|
|
|
5,618,819 |
|
Premises and equipment,
net |
|
20,991 |
|
|
|
19,546 |
|
|
|
20,661 |
|
Deferred income
taxes |
|
28,770 |
|
|
|
45,432 |
|
|
|
48,220 |
|
Bank owned life
insurance |
|
60,947 |
|
|
|
61,238 |
|
|
|
60,130 |
|
Intangible assets,
net |
|
107,212 |
|
|
|
107,150 |
|
|
|
107,419 |
|
Other real estate
owned |
|
1,394 |
|
|
|
1,394 |
|
|
|
2,694 |
|
Other assets |
|
68,680 |
|
|
|
75,723 |
|
|
|
52,653 |
|
Total Assets |
$ |
7,475,925 |
|
|
$ |
7,393,656 |
|
|
$ |
6,890,096 |
|
|
|
|
|
|
|
Liabilities and
Shareholders' Equity |
|
|
|
|
|
Deposits: |
|
|
|
|
|
Noninterest bearing demand |
$ |
1,982,912 |
|
|
$ |
1,843,157 |
|
|
$ |
1,775,684 |
|
Interest
bearing transaction |
|
420,417 |
|
|
|
429,247 |
|
|
|
289,122 |
|
Savings
and money market |
|
2,621,146 |
|
|
|
2,818,871 |
|
|
|
2,902,560 |
|
Time,
$100,000 or more |
|
515,682 |
|
|
|
482,325 |
|
|
|
464,842 |
|
Other
time |
|
313,827 |
|
|
|
340,352 |
|
|
|
283,906 |
|
Total
deposits |
|
5,853,984 |
|
|
|
5,913,952 |
|
|
|
5,716,114 |
|
Customer repurchase
agreements |
|
76,561 |
|
|
|
73,569 |
|
|
|
68,876 |
|
Other short-term
borrowings |
|
325,000 |
|
|
|
200,000 |
|
|
|
- |
|
Long-term
borrowings |
|
216,905 |
|
|
|
216,807 |
|
|
|
216,514 |
|
Other liabilities |
|
53,036 |
|
|
|
55,346 |
|
|
|
45,793 |
|
Total liabilities |
|
6,525,486 |
|
|
|
6,459,674 |
|
|
|
6,047,297 |
|
|
|
|
|
|
|
Shareholders'
Equity |
|
|
|
|
|
Common stock, par value
$.01 per share; shares authorized 100,000,000, shares |
|
|
|
|
|
issued
and outstanding 34,185,163, 34,174,009, and 34,023,850,
respectively |
|
340 |
|
|
|
340 |
|
|
|
338 |
|
Additional paid in
capital |
|
520,304 |
|
|
|
518,616 |
|
|
|
513,531 |
|
Retained
earnings |
|
431,544 |
|
|
|
415,975 |
|
|
|
331,311 |
|
Accumulated other
comprehensive loss |
|
(1,749 |
) |
|
|
(949 |
) |
|
|
(2,381 |
) |
Total Shareholders' Equity |
|
950,439 |
|
|
|
933,982 |
|
|
|
842,799 |
|
Total Liabilities and Shareholders' Equity |
$ |
7,475,925 |
|
|
$ |
7,393,656 |
|
|
$ |
6,890,096 |
|
|
|
|
|
|
` |
Eagle Bancorp,
Inc. |
|
|
|
|
|
|
|
|
Consolidated
Statements of Income (Unaudited) |
|
|
|
|
|
|
|
|
(dollars in thousands,
except per share data) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended December 31, |
|
Twelve Months Ended December 31, |
|
Interest
Income |
|
2017 |
|
|
2016 |
|
|
2017 |
|
|
2016 |
|
Interest
and fees on loans |
$ |
81,967 |
|
$ |
72,486 |
|
$ |
308,510 |
|
$ |
274,488 |
|
Interest
and dividends on investment securities |
|
3,360 |
|
|
2,508 |
|
|
12,214 |
|
|
9,629 |
|
Interest
on balances with other banks and short-term investments |
|
1,174 |
|
|
798 |
|
|
3,258 |
|
|
1,654 |
|
Interest
on federal funds sold |
|
25 |
|
|
3 |
|
|
52 |
|
|
34 |
|
Total
interest income |
|
86,526 |
|
|
75,795 |
|
|
324,034 |
|
|
285,805 |
|
Interest
Expense |
|
|
|
|
|
|
|
|
Interest
on deposits |
|
7,820 |
|
|
5,736 |
|
|
27,286 |
|
|
19,248 |
|
Interest
on customer repurchase agreements |
|
61 |
|
|
52 |
|
|
197 |
|
|
167 |
|
Interest
on other short-term borrowings |
|
307 |
|
|
5 |
|
|
748 |
|
|
732 |
|
Interest
on long-term borrowings |
|
2,979 |
|
|
2,978 |
|
|
11,916 |
|
|
7,493 |
|
Total
interest expense |
|
11,167 |
|
|
8,771 |
|
|
40,147 |
|
|
27,640 |
|
Net Interest
Income |
|
75,359 |
|
|
67,024 |
|
|
283,887 |
|
|
258,165 |
|
Provision for
Credit Losses |
|
4,087 |
|
|
2,112 |
|
|
8,971 |
|
|
11,331 |
|
Net Interest
Income After Provision For Credit Losses |
|
71,272 |
|
|
64,912 |
|
|
274,916 |
|
|
246,834 |
|
|
|
|
|
|
|
|
|
|
Noninterest
Income |
|
|
|
|
|
|
|
|
Service
charges on deposits |
|
1,723 |
|
|
1,518 |
|
|
6,364 |
|
|
5,821 |
|
Gain on
sale of loans |
|
2,536 |
|
|
3,099 |
|
|
9,276 |
|
|
11,564 |
|
Gain on
sale of investment securities |
|
- |
|
|
71 |
|
|
542 |
|
|
1,194 |
|
Increase
in the cash surrender value of bank owned life
insurance |
|
358 |
|
|
383 |
|
|
1,466 |
|
|
1,554 |
|
Other
income |
|
4,879 |
|
|
1,943 |
|
|
11,725 |
|
|
7,151 |
|
Total
noninterest income |
|
9,496 |
|
|
7,014 |
|
|
29,373 |
|
|
27,284 |
|
Noninterest
Expense |
|
|
|
|
|
|
|
|
Salaries
and employee benefits |
|
16,678 |
|
|
17,853 |
|
|
67,129 |
|
|
67,010 |
|
Premises
and equipment expenses |
|
4,019 |
|
|
3,699 |
|
|
15,632 |
|
|
15,118 |
|
Marketing
and advertising |
|
1,222 |
|
|
944 |
|
|
4,095 |
|
|
3,495 |
|
Data
processing |
|
2,163 |
|
|
2,031 |
|
|
8,220 |
|
|
7,747 |
|
Legal,
accounting and professional fees |
|
1,514 |
|
|
828 |
|
|
5,053 |
|
|
3,673 |
|
FDIC
insurance |
|
491 |
|
|
525 |
|
|
2,554 |
|
|
2,718 |
|
Other
expenses |
|
3,716 |
|
|
3,900 |
|
|
15,869 |
|
|
15,255 |
|
Total
noninterest expense |
|
29,803 |
|
|
29,780 |
|
|
118,552 |
|
|
115,016 |
|
Income Before
Income Tax Expense |
|
50,965 |
|
|
42,146 |
|
|
185,737 |
|
|
159,102 |
|
Income Tax
Expense |
|
35,396 |
|
|
16,429 |
|
|
85,505 |
|
|
61,395 |
|
Net
Income |
$ |
15,569 |
|
$ |
25,717 |
|
$ |
100,232 |
|
$ |
97,707 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Common Share |
|
|
|
|
|
|
|
|
Basic |
$ |
0.46 |
|
$ |
0.76 |
|
$ |
2.94 |
|
$ |
2.91 |
|
Diluted |
$ |
0.45 |
|
$ |
0.75 |
|
$ |
2.92 |
|
$ |
2.86 |
|
|
|
|
|
|
|
|
|
|
Eagle Bancorp, Inc. |
Consolidated Average Balances, Interest Yields
And Rates (Unaudited) |
(dollars in thousands) |
|
|
|
|
|
|
|
|
|
Three Months Ended December 31, |
|
|
2017 |
|
|
|
2016 |
|
|
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 |
$ |
381,339 |
$ |
1,175 |
1.22 |
% |
|
$ |
601,356 |
$ |
798 |
0.53 |
% |
Loans
held for sale (1) |
|
38,449 |
|
379 |
3.94 |
% |
|
|
70,874 |
|
615 |
3.47 |
% |
Loans
(1) (2) |
|
6,207,505 |
|
81,588 |
5.21 |
% |
|
|
5,591,790 |
|
71,871 |
5.11 |
% |
Investment securities available for sale (2) |
|
603,550 |
|
3,360 |
2.21 |
% |
|
|
487,730 |
|
2,508 |
2.05 |
% |
Federal
funds sold |
|
12,151 |
|
25 |
0.82 |
% |
|
|
3,184 |
|
3 |
0.37 |
% |
Total interest earning assets |
|
7,242,994 |
|
86,527 |
4.74 |
% |
|
|
6,754,934 |
|
75,795 |
4.46 |
% |
|
|
|
|
|
|
|
|
Total
noninterest earning assets |
|
308,138 |
|
|
|
|
287,540 |
|
|
Less:
allowance for credit losses |
|
63,392 |
|
|
|
|
57,982 |
|
|
Total noninterest earning assets |
|
244,746 |
|
|
|
|
229,558 |
|
|
TOTAL ASSETS |
$ |
7,487,740 |
|
|
|
$ |
6,984,492 |
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY |
|
|
|
|
|
|
|
Interest bearing
liabilities: |
|
|
|
|
|
|
|
Interest
bearing transaction |
$ |
380,137 |
$ |
456 |
0.48 |
% |
|
$ |
303,994 |
$ |
201 |
0.26 |
% |
Savings
and money market |
|
2,923,750 |
|
5,113 |
0.69 |
% |
|
|
2,941,919 |
|
3,715 |
0.50 |
% |
Time
deposits |
|
811,484 |
|
2,251 |
1.10 |
% |
|
|
786,782 |
|
1,820 |
0.92 |
% |
Total interest bearing deposits |
|
4,115,371 |
|
7,820 |
0.75 |
% |
|
|
4,032,695 |
|
5,736 |
0.57 |
% |
Customer
repurchase agreements |
|
80,758 |
|
61 |
0.30 |
% |
|
|
95,283 |
|
52 |
0.22 |
% |
Other
short-term borrowings |
|
85,057 |
|
307 |
1.41 |
% |
|
|
1,090 |
|
5 |
1.79 |
% |
Long-term borrowings |
|
216,872 |
|
2,979 |
5.38 |
% |
|
|
216,469 |
|
2,978 |
5.38 |
% |
Total interest bearing liabilities |
|
4,498,058 |
|
11,167 |
0.98 |
% |
|
|
4,345,537 |
|
8,771 |
0.80 |
% |
|
|
|
|
|
|
|
|
Noninterest bearing liabilities: |
|
|
|
|
|
|
|
Noninterest bearing demand |
|
1,986,356 |
|
|
|
|
1,763,821 |
|
|
Other
liabilities |
|
51,583 |
|
|
|
|
40,311 |
|
|
Total noninterest bearing liabilities |
|
2,037,939 |
|
|
|
|
1,804,132 |
|
|
|
|
|
|
|
|
|
|
Shareholders’
Equity |
|
951,743 |
|
|
|
|
834,823 |
|
|
TOTAL LIABILITIES AND SHAREHOLDERS'
EQUITY |
$ |
7,487,740 |
|
|
|
$ |
6,984,492 |
|
|
|
|
|
|
|
|
|
|
Net interest
income |
|
$ |
75,360 |
|
|
|
$ |
67,024 |
|
Net interest
spread |
|
|
3.76 |
% |
|
|
|
3.66 |
% |
Net interest
margin |
|
|
4.13 |
% |
|
|
|
3.95 |
% |
Cost of funds |
|
|
0.61 |
% |
|
|
|
0.51 |
% |
|
|
|
|
|
|
|
|
(1) Loans placed on nonaccrual status are included in average
balances. Net loan fees and late charges included in interest
income on loans totaled $5.2 million and $4.4 million |
for the three months ended December 31, 2017 and 2016,
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) |
|
|
|
|
|
|
|
|
|
Years Ended December 31, |
|
|
2017 |
|
|
|
2016 |
|
|
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 |
$ |
313,296 |
$ |
3,258 |
1.04 |
% |
|
$ |
341,574 |
$ |
1,654 |
0.45 |
% |
Loans
held for sale (1) |
|
35,813 |
|
1,400 |
3.91 |
% |
|
|
53,590 |
|
1,903 |
3.59 |
% |
Loans
(1) (2) |
|
5,939,985 |
|
307,111 |
5.17 |
% |
|
|
5,338,716 |
|
272,585 |
5.10 |
% |
Investment securities available for sale (1) |
|
557,049 |
|
12,214 |
2.19 |
% |
|
|
468,773 |
|
9,629 |
2.06 |
% |
Federal
funds sold |
|
7,672 |
|
52 |
0.68 |
% |
|
|
7,950 |
|
34 |
0.43 |
% |
Total interest earning assets |
|
6,853,815 |
|
324,035 |
4.73 |
% |
|
|
6,210,603 |
|
285,805 |
4.65 |
% |
|
|
|
|
|
|
|
|
Total
noninterest earning assets |
|
296,592 |
|
|
|
|
282,060 |
|
|
Less:
allowance for credit losses |
|
61,166 |
|
|
|
|
55,889 |
|
|
Total noninterest earning assets |
|
235,426 |
|
|
|
|
226,171 |
|
|
TOTAL ASSETS |
$ |
7,089,241 |
|
|
|
$ |
6,436,774 |
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY |
|
|
|
|
|
|
|
Interest bearing
liabilities: |
|
|
|
|
|
|
|
Interest
bearing transaction |
$ |
369,953 |
$ |
1,537 |
0.42 |
% |
|
$ |
251,954 |
$ |
646 |
0.26 |
% |
Savings
and money market |
|
2,739,776 |
|
17,284 |
0.63 |
% |
|
|
2,728,347 |
|
12,038 |
0.44 |
% |
Time
deposits |
|
799,816 |
|
8,465 |
1.06 |
% |
|
|
769,801 |
|
6,564 |
0.85 |
% |
Total interest bearing deposits |
|
3,909,545 |
|
27,286 |
0.70 |
% |
|
|
3,750,102 |
|
19,248 |
0.51 |
% |
Customer
repurchase agreements |
|
73,237 |
|
197 |
0.27 |
% |
|
|
77,833 |
|
167 |
0.21 |
% |
Other
short-term borrowings |
|
65,416 |
|
748 |
1.13 |
% |
|
|
29,376 |
|
732 |
2.45 |
% |
Long-term borrowings |
|
216,724 |
|
11,916 |
5.42 |
% |
|
|
133,023 |
|
7,493 |
5.54 |
% |
Total interest bearing liabilities |
|
4,264,922 |
|
40,147 |
0.94 |
% |
|
|
3,990,334 |
|
27,640 |
0.69 |
% |
|
|
|
|
|
|
|
|
Noninterest bearing liabilities: |
|
|
|
|
|
|
|
Noninterest bearing demand |
|
1,878,120 |
|
|
|
|
1,619,159 |
|
|
Other
liabilities |
|
40,025 |
|
|
|
|
30,881 |
|
|
Total noninterest bearing liabilities |
|
1,918,145 |
|
|
|
|
1,650,040 |
|
|
|
|
|
|
|
|
|
|
Shareholders’
equity |
|
906,174 |
|
|
|
|
796,400 |
|
|
TOTAL LIABILITIES AND SHAREHOLDERS'
EQUITY |
$ |
7,089,241 |
|
|
|
$ |
6,436,774 |
|
|
|
|
|
|
|
|
|
|
Net interest
income |
|
$ |
283,888 |
|
|
|
$ |
258,165 |
|
Net interest
spread |
|
|
3.79 |
% |
|
|
|
3.91 |
% |
Net interest
margin |
|
|
4.15 |
% |
|
|
|
4.16 |
% |
Cost of funds |
|
|
0.58 |
% |
|
|
|
0.44 |
% |
|
|
|
|
|
|
|
|
(1) Loans
placed on nonaccrual status are included in average balances. Net
loan fees and late charges included in interest income on loans
totaled $18.1 million and $16.1 million |
for the years ended December 31, 2017 and 2016, 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 |
|
December 31, |
|
September 30, |
|
June 30, |
|
March 31, |
|
December 31, |
|
September 30, |
|
June 30, |
|
March 31, |
Income
Statements: |
|
2017 |
|
|
|
2017 |
|
|
|
2017 |
|
|
|
2017 |
|
|
|
2016 |
|
|
|
2016 |
|
|
|
2016 |
|
|
|
2016 |
|
Total interest
income |
$ |
86,526 |
|
|
$ |
82,370 |
|
|
$ |
79,344 |
|
|
$ |
75,794 |
|
|
$ |
75,795 |
|
|
$ |
72,431 |
|
|
$ |
69,772 |
|
|
$ |
67,807 |
|
Total interest
expense |
|
11,167 |
|
|
|
10,434 |
|
|
|
9,646 |
|
|
|
8,900 |
|
|
|
8,771 |
|
|
|
7,703 |
|
|
|
5,950 |
|
|
|
5,217 |
|
Net interest
income |
|
75,359 |
|
|
|
71,936 |
|
|
|
69,698 |
|
|
|
66,894 |
|
|
|
67,024 |
|
|
|
64,728 |
|
|
|
63,822 |
|
|
|
62,590 |
|
Provision for credit
losses |
|
4,087 |
|
|
|
1,921 |
|
|
|
1,566 |
|
|
|
1,397 |
|
|
|
2,112 |
|
|
|
2,288 |
|
|
|
3,888 |
|
|
|
3,043 |
|
Net interest income
after provision for credit losses |
|
71,272 |
|
|
|
70,015 |
|
|
|
68,132 |
|
|
|
65,497 |
|
|
|
64,912 |
|
|
|
62,440 |
|
|
|
59,934 |
|
|
|
59,547 |
|
Noninterest
income (before investment gains) |
|
9,496 |
|
|
|
6,773 |
|
|
|
6,997 |
|
|
|
5,565 |
|
|
|
6,943 |
|
|
|
6,404 |
|
|
|
7,077 |
|
|
|
5,666 |
|
Gain on sale of
investment securities |
|
- |
|
|
|
11 |
|
|
|
26 |
|
|
|
505 |
|
|
|
71 |
|
|
|
1 |
|
|
|
498 |
|
|
|
624 |
|
Total noninterest
income |
|
9,496 |
|
|
|
6,784 |
|
|
|
7,023 |
|
|
|
6,070 |
|
|
|
7,014 |
|
|
|
6,405 |
|
|
|
7,575 |
|
|
|
6,290 |
|
Salaries and
employee benefits |
|
16,678 |
|
|
|
16,905 |
|
|
|
16,869 |
|
|
|
16,677 |
|
|
|
17,853 |
|
|
|
17,130 |
|
|
|
15,908 |
|
|
|
16,119 |
|
Premises and
equipment |
|
4,019 |
|
|
|
3,846 |
|
|
|
3,920 |
|
|
|
3,847 |
|
|
|
3,699 |
|
|
|
3,786 |
|
|
|
3,807 |
|
|
|
3,826 |
|
Marketing and
advertising |
|
1,222 |
|
|
|
732 |
|
|
|
1,247 |
|
|
|
894 |
|
|
|
944 |
|
|
|
857 |
|
|
|
920 |
|
|
|
774 |
|
Merger
expenses |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
Other
expenses |
|
7,884 |
|
|
|
8,033 |
|
|
|
7,965 |
|
|
|
7,814 |
|
|
|
7,284 |
|
|
|
7,065 |
|
|
|
7,660 |
|
|
|
7,383 |
|
Total noninterest
expense |
|
29,803 |
|
|
|
29,516 |
|
|
|
30,001 |
|
|
|
29,232 |
|
|
|
29,780 |
|
|
|
28,838 |
|
|
|
28,295 |
|
|
|
28,102 |
|
Income before income
tax expense |
|
50,965 |
|
|
|
47,283 |
|
|
|
45,154 |
|
|
|
42,335 |
|
|
|
42,146 |
|
|
|
40,007 |
|
|
|
39,214 |
|
|
|
37,735 |
|
Income tax expense |
|
35,396 |
|
|
|
17,409 |
|
|
|
17,382 |
|
|
|
15,318 |
|
|
|
16,429 |
|
|
|
15,484 |
|
|
|
15,069 |
|
|
|
14,413 |
|
Net income |
|
15,569 |
|
|
|
29,874 |
|
|
|
27,772 |
|
|
|
27,017 |
|
|
|
25,717 |
|
|
|
24,523 |
|
|
|
24,145 |
|
|
|
23,322 |
|
Preferred stock
dividends |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
Net income available to
common shareholders |
$ |
15,569 |
|
|
$ |
29,874 |
|
|
$ |
27,772 |
|
|
$ |
27,017 |
|
|
$ |
25,717 |
|
|
$ |
24,523 |
|
|
$ |
24,145 |
|
|
$ |
23,322 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Per Share
Data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per weighted
average common share, basic |
$ |
0.46 |
|
|
$ |
0.87 |
|
|
$ |
0.81 |
|
|
$ |
0.79 |
|
|
$ |
0.76 |
|
|
$ |
0.73 |
|
|
$ |
0.72 |
|
|
$ |
0.70 |
|
Earnings per weighted
average common share, diluted |
$ |
0.45 |
|
|
$ |
0.87 |
|
|
$ |
0.81 |
|
|
$ |
0.79 |
|
|
$ |
0.75 |
|
|
$ |
0.72 |
|
|
$ |
0.71 |
|
|
$ |
0.68 |
|
Weighted average common
shares outstanding, basic |
|
34,179,793 |
|
|
|
34,173,893 |
|
|
|
34,128,598 |
|
|
|
34,069,528 |
|
|
|
33,650,963 |
|
|
|
33,590,183 |
|
|
|
33,588,141 |
|
|
|
33,518,998 |
|
Weighted average common
shares outstanding, diluted |
|
34,334,873 |
|
|
|
34,338,442 |
|
|
|
34,324,120 |
|
|
|
34,284,316 |
|
|
|
34,233,940 |
|
|
|
34,187,171 |
|
|
|
34,183,209 |
|
|
|
34,104,237 |
|
Actual shares
outstanding at period end |
|
34,185,163 |
|
|
|
34,174,009 |
|
|
|
34,169,924 |
|
|
|
34,110,056 |
|
|
|
34,023,850 |
|
|
|
33,590,880 |
|
|
|
33,584,898 |
|
|
|
33,581,599 |
|
Book value per common
share at period end |
$ |
27.80 |
|
|
$ |
27.33 |
|
|
$ |
26.42 |
|
|
$ |
25.59 |
|
|
$ |
24.77 |
|
|
$ |
24.28 |
|
|
$ |
23.48 |
|
|
$ |
22.71 |
|
Tangible book value per
common share at period end (1) |
$ |
24.67 |
|
|
$ |
24.19 |
|
|
$ |
23.28 |
|
|
$ |
22.45 |
|
|
$ |
21.61 |
|
|
$ |
21.08 |
|
|
$ |
20.27 |
|
|
$ |
19.48 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Performance
Ratios (annualized): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average
assets |
|
0.82 |
% |
|
|
1.66 |
% |
|
|
1.60 |
% |
|
|
1.62 |
% |
|
|
1.46 |
% |
|
|
1.50 |
% |
|
|
1.57 |
% |
|
|
1.54 |
% |
Return on average
common equity |
|
6.49 |
% |
|
|
12.86 |
% |
|
|
12.51 |
% |
|
|
12.74 |
% |
|
|
12.26 |
% |
|
|
12.04 |
% |
|
|
12.40 |
% |
|
|
12.39 |
% |
Net interest
margin |
|
4.13 |
% |
|
|
4.14 |
% |
|
|
4.16 |
% |
|
|
4.14 |
% |
|
|
3.95 |
% |
|
|
4.11 |
% |
|
|
4.30 |
% |
|
|
4.31 |
% |
Efficiency ratio
(2) |
|
35.12 |
% |
|
|
37.49 |
% |
|
|
39.10 |
% |
|
|
40.06 |
% |
|
|
40.22 |
% |
|
|
40.54 |
% |
|
|
39.63 |
% |
|
|
40.80 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
Ratios: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for credit
losses to total loans (3) |
|
1.01 |
% |
|
|
1.03 |
% |
|
|
1.02 |
% |
|
|
1.03 |
% |
|
|
1.04 |
% |
|
|
1.04 |
% |
|
|
1.05 |
% |
|
|
1.06 |
% |
Allowance for credit
losses to total nonperforming loans |
|
489.20 |
% |
|
|
379.11 |
% |
|
|
356.00 |
% |
|
|
416.91 |
% |
|
|
330.49 |
% |
|
|
255.29 |
% |
|
|
264.44 |
% |
|
|
249.03 |
% |
Nonperforming loans to
total loans (3) |
|
0.21 |
% |
|
|
0.27 |
% |
|
|
0.29 |
% |
|
|
0.25 |
% |
|
|
0.31 |
% |
|
|
0.41 |
% |
|
|
0.40 |
% |
|
|
0.43 |
% |
Nonperforming assets to
total assets |
|
0.19 |
% |
|
|
0.24 |
% |
|
|
0.26 |
% |
|
|
0.22 |
% |
|
|
0.30 |
% |
|
|
0.41 |
% |
|
|
0.39 |
% |
|
|
0.42 |
% |
Net charge-offs
(annualized) to average loans (3) |
|
0.15 |
% |
|
|
0.00 |
% |
|
|
0.02 |
% |
|
|
0.04 |
% |
|
|
-0.01 |
% |
|
|
0.14 |
% |
|
|
0.15 |
% |
|
|
0.09 |
% |
Tier 1 capital (to
average assets) |
|
11.45 |
% |
|
|
11.78 |
% |
|
|
11.61 |
% |
|
|
11.51 |
% |
|
|
10.72 |
% |
|
|
11.12 |
% |
|
|
11.24 |
% |
|
|
11.01 |
% |
Total capital (to risk
weighted assets) |
|
15.02 |
% |
|
|
15.30 |
% |
|
|
15.13 |
% |
|
|
14.97 |
% |
|
|
14.89 |
% |
|
|
15.05 |
% |
|
|
12.71 |
% |
|
|
12.87 |
% |
Common equity tier 1
capital (to risk weighted assets) |
|
11.24 |
% |
|
|
11.40 |
% |
|
|
11.18 |
% |
|
|
10.97 |
% |
|
|
10.80 |
% |
|
|
10.83 |
% |
|
|
10.74 |
% |
|
|
10.83 |
% |
Tangible common equity
ratio (1) |
|
11.45 |
% |
|
|
11.35 |
% |
|
|
11.15 |
% |
|
|
10.97 |
% |
|
|
10.84 |
% |
|
|
10.64 |
% |
|
|
10.88 |
% |
|
|
10.86 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average
Balances (in thousands): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets |
$ |
7,487,740 |
|
|
$ |
7,128,769 |
|
|
$ |
6,959,994 |
|
|
$ |
6,772,164 |
|
|
$ |
6,984,492 |
|
|
$ |
6,492,274 |
|
|
$ |
6,191,164 |
|
|
$ |
6,072,533 |
|
Total earning
assets |
$ |
7,242,994 |
|
|
$ |
6,897,613 |
|
|
$ |
6,728,055 |
|
|
$ |
6,538,377 |
|
|
$ |
6,754,935 |
|
|
$ |
6,266,311 |
|
|
$ |
5,968,488 |
|
|
$ |
5,846,081 |
|
Total loans |
$ |
6,207,505 |
|
|
$ |
5,946,411 |
|
|
$ |
5,895,174 |
|
|
$ |
5,705,261 |
|
|
$ |
5,591,790 |
|
|
$ |
5,422,677 |
|
|
$ |
5,266,305 |
|
|
$ |
5,070,386 |
|
Total deposits |
$ |
6,101,727 |
|
|
$ |
5,827,953 |
|
|
$ |
5,660,119 |
|
|
$ |
5,554,402 |
|
|
$ |
5,796,516 |
|
|
$ |
5,353,834 |
|
|
$ |
5,178,501 |
|
|
$ |
5,143,670 |
|
Total borrowings |
$ |
382,687 |
|
|
$ |
344,959 |
|
|
$ |
375,124 |
|
|
$ |
318,143 |
|
|
$ |
312,842 |
|
|
$ |
300,083 |
|
|
$ |
207,221 |
|
|
$ |
139,324 |
|
Total shareholders’
equity |
$ |
951,743 |
|
|
$ |
921,493 |
|
|
$ |
890,498 |
|
|
$ |
859,779 |
|
|
$ |
834,823 |
|
|
$ |
809,973 |
|
|
$ |
783,318 |
|
|
$ |
756,916 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
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 and as such is useful for investors, regulators,
management and others to evaluate capital adequacy |
and to compare against
other financial institutions. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(2)
Computed by dividing noninterest expense by the sum of net interest
income and noninterest income. |
|
|
|
|
|
|
|
|
|
|
|
|
(3) Excludes loans held
for sale. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EAGLE BANCORP,
INC.CONTACT:Michael T.
Flynn301.986.1800
Eagle Bancorp (NASDAQ:EGBN)
Historical Stock Chart
Von Sep 2024 bis Okt 2024
Eagle Bancorp (NASDAQ:EGBN)
Historical Stock Chart
Von Okt 2023 bis Okt 2024