Eagle Bancorp, Inc. (the “Company”) (NASDAQ:EGBN), the parent
company of EagleBank (the “Bank”), today announced quarterly net
income of $36.5 million for the three months ended September 30,
2019, a 6% decrease from $38.9 million net income for the three
months ended September 30, 2018. Net income per basic common share
for the three months ended September 30, 2019 was $1.07 compared to
$1.14 for the same period in 2018. Net income per diluted common
share for the three months ended September 30, 2019 was $1.07
compared to $1.13 for the same period in 2018.
Earnings in the third quarter of 2019 were
impacted by two significant non-recurring expense items. The
Company recorded $2.0 million of accelerated shared based
compensation expense due to the resignation of certain directors of
the Company and Bank. Secondly, as a result of the FDIC Deposit
Insurance Fund exceeding 1.38% of insured deposits at June 30,
2019, EagleBank recognized a $1.1 million credit to its FDIC
assessment expense in the third quarter of 2019. Excluding these
two non-recurring items, net income for the third quarter of 2019
would have been $37.1 million ($1.08 per diluted
share).
For the nine months ended September 30, 2019,
the Company’s net income was $107.5 million, a 4% decrease from
$112.0 million net income for the same period in 2018. Net income
per basic common share for the nine months ended September 30, 2019
was $3.12 compared to $3.26 for the same period in 2018. Net income
per diluted common share for the nine months ended September 30,
2019 was $3.12 compared to $3.25 for the same period in 2018.
“Notwithstanding the negative impact that very
low interest rates and a flat yield curve are having on our
revenues and net interest margin, we are pleased to report a
continued quarterly trend of both loan and deposit growth, together
with solid asset quality and favorable operating leverage.
Additionally, our capital base remains very strong, with ratios
well in excess of the requirements for well capitalized status,”
noted Susan G. Riel, President and Chief Executive Officer of Eagle
Bancorp, Inc. Ms. Riel added that “period end loan growth in the
quarter was 2.3%, and average loans were 13% higher in the third
quarter 2019 as compared to the third quarter of 2018. For the
third quarter of 2019, period end deposit growth was a very strong
6.5% and average deposits were 13% higher as compared to the same
period in 2018. Total revenue for the third quarter of 2019 was
$87.3 million compared to $86.9 million for the third quarter of
2018 and was 4% higher for the first nine months of 2019 over the
same period in 2018.”
The net interest margin (“NIM”) in the third
quarter of 2019 was 3.72% as compared to 3.91% in the second
quarter of 2019 and 4.14% for the third quarter of 2018. Ms. Riel
added, “The net interest margin of banks is being challenged by a
very flat yield curve and further declines of interest rates from
already low levels. In this environment, the Company remains
committed to maintaining efficiency and growing the loan portfolio
while focusing attention on loan quality and pricing discipline.
Further, an increase in the mix of average balance sheet liquidity
in the third quarter of 2019 in addition to short-term rate
declines contributed to the 19 basis point decline in the NIM over
the second quarter of 2019. The average one month LIBOR rate was
down 26 basis points in the third quarter of 2019 as compared to
the second quarter of 2019. Ms. Riel added, “We continue to see
good lending opportunities and have worked to attract more deposits
to fund those loans and to bring down the loan to deposit ratio at
third quarter-end 2019 compared to second quarter-end 2019.
Furthermore, by sustaining favorable operating leverage, we
maintain strong profitability while rates remain very low and we
stay well positioned when interest rates begin moving back to more
normalized levels, given the degree of variability in our asset
pricing.”
Third quarter earnings resulted in an annualized
return on average assets (“ROAA”) of 1.62%, an annualized return on
average common equity (“ROACE”) of 12.09%, and an annualized return
on average tangible common equity (“ROATCE”) of 13.25%.
For the first nine months of 2019, total loans
grew 8% over December 31, 2018, and average loans were 11% higher
in the first nine months of 2019 as compared to the first nine
months of 2018. At September 30, 2019, total deposits were 6%
higher than deposits at December 31, 2018, while average deposits
were 13% higher for the first nine months of 2019 compared with the
first nine months of 2018.
Comparing asset yields and cost of funds in the
third quarter of 2019 to the third quarter of 2018, loan yields
were down 30 basis points (from 5.69% to 5.39%), yields on earning
assets were down 21 basis points (from 5.21% to 4.98%) and the cost
of funds was up 21 basis points (from 1.07% to 1.28%). Ms. Riel
noted, “Given our balance sheet growth goals and the fact that
average US Treasury rates beyond three year terms have declined
over 100 basis points in the third quarter of 2019 versus the third
quarter of 2018, we did expect our margin to compress but the
extent has been more than we projected owing in part to higher
fixed rate time deposit funding mix. Importantly, our funding
costs, which were slightly lower in the third quarter 2019 relative
to the second quarter 2019, continue to benefit from the
substantial average mix of noninterest deposits of 30% for the
third quarter, versus 31% for the second quarter of 2019.
Total revenue (net interest income plus
noninterest income) for the third quarter of 2019 was $87.3
million, compared to the $86.9 million of total revenue earned for
the third quarter of 2018 and 1% lower than the $87.7 million of
revenue in the second quarter of 2019. For the nine month periods
ended September 30, total revenue was $262.3 million for 2019, as
compared to $251.8 million in 2018, a 4% increase.
The Company continues to benefit from solid
asset quality. For the third quarter of 2019, net charge-offs
(annualized) were 0.08% of average loans, as compared to 0.05% for
the third quarter of 2018. Nonperforming assets amounted to $59.1
million (0.66% of total assets) at September 30, 2019 compared to
$16.5 million (0.20% of total assets) at September 30, 2018 and
$17.7 million (0.21% of total assets) at December 31, 2018.
Nonperforming assets of $59.1 million as of September 30, 2019
included one loan of $16.5 million which was brought current
shortly after quarter end. Excluding this loan the ratio of
nonperforming assets to total assets would have been 0.47% as of
September 30, 2019. At September 30, 2019, the Company’s
nonperforming loans amounted to $57.7 million (0.76% of total
loans) as compared to $15.1 million (0.22% of total loans) at
September 30, 2018 and $16.3 million (0.23% of total loans) at
December 31, 2018. Nonperforming loans of $57.7 million as of
September 30, 2019 included one loan of $16.5 million which was
brought current shortly after quarter end. Excluding this loan the
ratio of nonperforming loans to total loans would have been 0.54%
as of September 30, 2019.
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 when appropriate and believes, based on its loan portfolio
risk analysis, that its allowance for credit losses, at 0.98% of
total loans (excluding loans held for sale) at September 30, 2019,
is adequate to absorb potential credit losses within the loan
portfolio at that date. The allowance for credit losses was 1.00%
at both September 30, 2018 and December 31, 2018. The allowance for
credit losses at September 30, 2019 represented 128% of
nonperforming loans, as compared to 452% at September 30, 2018 and
430% at December 31, 2018. Excluding the $16.5 million
nonperforming loan that was brought current shortly after quarter
end, the coverage ratio would have been 179% as of September 30,
2019.
“Productivity continued to be favorable in the
third quarter,” noted Ms. Riel. The efficiency ratio of 38.34%
reflects management’s ongoing efforts to maintain superior
operating leverage. The annualized ratio of noninterest expenses as
a percentage of average assets was 1.50% in the third quarter of
2019 as compared to 1.58% in the third quarter of 2018. A well
trained and knowledgeable staff, strict attention to personnel
increases, a focus on process improvement including strong third
party vendor relationships, and a continuing modest level of
problem assets, have been other major factors in maintaining
favorable operating leverage. Additionally, the Company continues
to invest in IT systems and resources, including its online client
services. Ms. Riel further noted, “Our goal is to improve operating
performance without inhibiting growth or negatively impacting our
ability to service our customers. We will continue to maintain
strict oversight of expenses, while focusing our spending on
advancing infrastructure that keeps us competitive and supports
growth initiatives while prudently managing risk.”
Total assets at September 30, 2019 were $9.00
billion, a 12% increase as compared to $8.06 billion at September
30, 2018, and a 7% increase as compared to $8.39 billion at
December 31, 2018. Total loans (excluding loans held for sale) were
$7.56 billion at September 30, 2019, a 10% increase as compared to
$6.84 billion at September 30, 2018, and an 8% increase as compared
to $6.99 billion at December 31, 2018. Loans held for sale amounted
to $52.2 million at September 30, 2019 as compared to $18.7 million
at September 30, 2018, a 179% increase, and $19.3 million at
December 31, 2018, a 171% increase. The investment portfolio
totaled $708.5 million at September 30, 2019, a 2% decrease from
the $722.7 million balance at September 30, 2018. As compared to
December 31, 2018, the investment portfolio at September 30, 2019
decreased by $75.6 million or 10%.
Total deposits at September 30, 2019 were $7.40
billion, compared to deposits of $6.37 billion at September 30,
2018, a 16% increase, and deposits of $6.97 billion at December 31,
2018, a 6% increase. Total borrowed funds (excluding customer
repurchase agreements) were $317.6 million at September 30, 2019,
$542.2 million at September 30, 2018, and $217.3 million at
December 31, 2018. We continue to work on expanding the breadth and
depth of our existing relationships while we pursue building new
relationships.
Total shareholders’ equity at September 30, 2019
increased 12%, to $1.18 billion, compared to $1.06 billion at
September 30, 2018, and increased 7% from $1.10 billion at December
31, 2018. The Company’s capital position remains substantially in
excess of regulatory requirements for well capitalized status, with
a total risk based capital ratio of 16.08% at September 30, 2019,
as compared to 15.74% at September 30, 2018, and 16.08% at December
31, 2018. In addition, the tangible common equity ratio was 12.13%
at September 30, 2019, compared to 12.01% at September 30, 2018 and
12.11% at December 31, 2018. Furthermore, Kroll Bond Rating Agency
reaffirmed our BBB+ senior unsecured debt rating (A- at the Bank
level) based on our strong capital position, above-peer earnings,
low operating expense base relative to peer, and a history of
strong asset quality metrics.
On August 9, 2019, the Company announced a Share
Repurchase Plan which authorized share repurchases up to 5% of
outstanding shares (1,715,547) until expiration on December 31,
2019. Through September 30, 2019, the Company has repurchased
822,200 shares at a weighted average price of $40.58 per share.
The Company announced a regular quarterly cash
dividend on September 25, 2019 of $0.22 per share to shareholders
of record on October 15, 2019 and payable October 31, 2019.
Under FDIC regulations, banks having
consolidated assets below $10 billion paid a refundable assessment
into the FDIC insurance fund over a nine quarter period beginning
with the third quarter of 2016. That assessment was to be credited
back to the institution if and when the deposit insurance fund
(“DIF”) exceeded 1.38% of insured deposits, which occurred with the
June 30, 2019 computation. The credit amount for EagleBank for the
third quarter of 2019 is $1.1 million. Additionally, if the DIF
remains above 1.38% of insured deposits at September 30, 2019,
EagleBank will receive an additional credit of approximately $600
thousand to be recorded for the fourth quarter of 2019.
Analysis of the three months ended
September 30, 2019 compared to September 30, 2018
For the three months ended September 30, 2019,
the Company reported an annualized ROAA of 1.62% as compared to
1.93% for the three months ended September 30, 2018. The annualized
ROACE for the three months ended September 30, 2019 was 12.09% as
compared to 14.85% for the three months ended September 30, 2018.
The annualized ROATCE for the three months ended September 30, 2019
was 13.25% as compared to 16.54% for the three months ended
September 30, 2018.
Net interest income decreased less than 1% for
the three months ended September 30, 2019 from the same period in
2018 ($81.0 million versus $81.3 million), resulting from
compressed margins associated with increased costs of funds and
lower loan yields due in part to enhanced competitive pressure more
than offsetting growth in average earning assets of 11%. The net
interest margin was 3.72% for the three months ended September 30,
2019, as compared to 4.14% for the three months ended September 30,
2018. In spite of our margin compression over the past 12 months,
the Company believes its current net interest margin remains
favorable compared to peer banking companies and that its
disciplined approach to managing the loan portfolio yield to 5.39%
for the third quarter of 2019 (as compared to 5.69% for the same
period in 2018) has been a significant factor in its overall
profitability.
The provision for credit losses was $3.2 million
for the three months ended September 30, 2019 as compared to $2.4
million for the three months ended September 30, 2018. Net
charge-offs of $1.5 million in the third quarter of 2019
represented an annualized 0.08% of average loans, excluding loans
held for sale, as compared to $862 thousand, or an annualized 0.05%
of average loans, excluding loans held for sale, in the third
quarter of 2018. Net charge-offs in the third quarter of 2019 were
attributable primarily to commercial loans ($1.6 million).
Noninterest income for the three months ended
September 30, 2019 increased to $6.3 million from $5.6 million for
the three months ended September 30, 2018, a 12% increase, due
substantially to $1.1 million higher gains on the sale of
residential mortgage loans ($2.5 million versus $1.4 million)
resulting from higher loan origination and sales volume as compared
to 2018, partially offset by lower service charges on deposit
accounts of $320 thousand. Residential mortgage loans closed were
$224 million for the third quarter of 2019 versus $107 million for
the third quarter of 2018.
The efficiency ratio, which measures the ratio
of noninterest expense to total revenue, was 38.34% for the third
quarter of 2019, as compared to 36.37% for the third quarter of
2018. Noninterest expenses totaled $33.5 million for the three
months ended September 30, 2019, as compared to $31.6 million for
the three months ended September 30, 2018, a 6% increase. Salaries
and employee benefits expense increased by $1.9 million due
primarily to the $2.0 million of non-recurring charges related to
the acceleration of share based compensation expense. Legal,
accounting and professional fees increased $1.5 million from $2.1
million to $3.6 million, as discussed below. Data processing
expense increased by $199 thousand due primarily to the costs of
software and infrastructure investments. FDIC insurance decreased
$848 thousand from $933 thousand to $85 thousand as the increased
premium cost of a higher assessment base was effectively offset by
the $1.2 million FDIC assessment credit detailed above.
Analysis of the nine months ended
September 30, 2019 compared to September 30, 2018
For the nine months ended September 30, 2019,
the Company reported an annualized ROAA of 1.66% as compared to
1.92% for the nine months ended September 30, 2018. The annualized
ROACE for the nine months ended September 30, 2019 was 12.34% as
compared to 14.92% for the nine months ended September 30, 2018.
The annualized ROATCE for the nine months ended September 30, 2019
was 13.57% as compared to 16.70% for the nine months ended
September 30, 2018.
Net interest income increased 3% for the nine
months ended September 30, 2019 over the same period in 2018
($243.3 million versus $235.3 million), resulting from growth in
average earning assets of 11%. The net interest margin was 3.88%
for the nine months ended September 30, 2019 and 4.15% for the same
period in 2018. 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 5.54%
for the first nine months of 2019 (as compared to 5.51% for the
same period in 2018) has been a significant factor in its overall
profitability.
The provision for credit losses was $10.1
million for the nine months ended September 30, 2019 as compared to
$6.1 million for the nine months ended September 30, 2018. The
higher provisioning for the nine months ended September 30, 2019,
as compared to the same period in 2018, is due primarily to higher
net charge-offs. Net charge-offs of $6.4 million for the nine
months ended September 30, 2019 represented an annualized 0.12% of
average loans, excluding loans held for sale, as compared to $2.6
million, or an annualized 0.05% of average loans, excluding loans
held for sale, in the first nine months of 2018. Net charge-offs in
the first nine months of 2019 were attributable to commercial real
estate loans ($5.0 million) and commercial loans ($1.4
million).
Noninterest income for the nine months ended
September 30, 2019 increased to $19.0 million from $16.5 million
for the nine months ended September 30, 2018, a 15% increase, due
substantially to $1.6 million higher gains on the sale of
investment securities primarily due to $829 thousand of noninterest
income recognized during March 2019 on interest rate swap
terminations, and $1.4 million higher gains on the sale of
residential mortgage loans ($5.7 million versus $4.3 million)
resulting from higher volume as compared to 2018, offset by $394
thousand lower service charges on deposit accounts. Residential
mortgage loans closed were $470 million for the nine months ended
September 30, 2019 versus $334 million for the same period in
2018.
Noninterest expenses totaled $105.1 million for
the nine months ended September 30, 2019, as compared to $95.0
million for the nine months ended September 30, 2018, an 11%
increase. Cost increases for salaries and benefits for the nine
months ended September 30, 2019 were $8.7 million, due primarily to
$8.2 million of nonrecurring charges related to acceleration of
share based compensation expenses associated with the retirement of
our former Chairman and Chief Executive Officer and the resignation
of certain directors. Legal, accounting, and professional fees
increased by $792 thousand from $7.3 million to $8.1 million, the
reasons of which are further discussed below. Other expenses
increased $1.4 million, due primarily to real estate and utility
costs on special assets ($441 thousand) and director compensation
($424 thousand).
Legal, accounting and professional fees and
expenses for the three months ended September 30, 2019 increased to
$3.6 million from $2.1 million for the same period in 2018, a 70%
increase. Legal, accounting and professional fees and expenses for
the nine months ended September 30, 2019 increased to $8.1 million
from $7.3 million for the same period in 2018, an 11% increase. The
increased expenses for both the quarter to date and year to date
2019 periods were primarily associated with government agencies
investigations previously disclosed in the second quarter 2019
earnings press release. The Company expects to incur elevated
levels of legal and professional fees and expenses for at least the
remainder of 2019 as it continues to cooperate with these
investigations. Other than these increased costs, we do not believe
at this time that the resolution of these investigations will be
materially adverse to the Company. As a result of these ongoing
investigations, there have been no regulatory restrictions placed
on the Company’s ability to fully engage in its banking business as
presently conducted. We are, however, unable to predict the
duration, scope or outcome of these investigations.
The effective income tax rate for the third
quarter of 2019 was 27.9% as compared to 26.3% for the third
quarter of 2018 due primarily to a decrease in federal tax credits,
an increase in nondeductible expenses, and adjustments related to
the completion of the 2018 tax returns.
The financial information that follows provides
more detail on the Company’s financial performance for the three
and nine months ended September 30, 2019 as compared to the three
and nine months ended September 30, 2018 as well as providing eight
quarters of trend data. Persons wishing to obtain additional
information should refer to the Company’s Form 10-K for the year
ended December 31, 2018 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 branch offices, located in
Suburban 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 third quarter 2019
financial results on Thursday, October 17, 2019 at 10:00 a.m.
eastern time. The public is invited to listen to this conference
call by dialing 1.877.303.6220, conference ID Code is 6989578, 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 October 31, 2019.
Forward-looking Statements:
This press release contains forward-looking statements within the
meaning of the Securities 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, 2018 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.
Eagle Bancorp,
Inc. |
|
|
|
|
|
|
|
Consolidated Financial
Highlights (Unaudited) |
|
|
|
|
|
|
|
(dollars in thousands, except
per share data) |
|
|
|
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
|
|
2019 |
|
|
|
2018 |
|
|
|
2019 |
|
|
|
2018 |
|
Income
Statements: |
|
|
|
|
|
|
|
Total interest income |
$ |
109,034 |
|
|
$ |
102,360 |
|
|
$ |
322,447 |
|
|
$ |
287,705 |
|
Total interest expense |
|
28,045 |
|
|
|
21,069 |
|
|
|
79,112 |
|
|
|
52,424 |
|
Net interest income |
|
80,989 |
|
|
|
81,291 |
|
|
|
243,335 |
|
|
|
235,281 |
|
Provision for credit
losses |
|
3,186 |
|
|
|
2,441 |
|
|
|
10,146 |
|
|
|
6,060 |
|
Net interest income after
provision for credit losses |
|
77,803 |
|
|
|
78,850 |
|
|
|
233,189 |
|
|
|
229,221 |
|
Noninterest income (before
investment gains) |
|
6,161 |
|
|
|
5,640 |
|
|
|
17,337 |
|
|
|
16,429 |
|
Gain on sale of investment
securities |
|
153 |
|
|
|
- |
|
|
|
1,628 |
|
|
|
68 |
|
Total noninterest income |
|
6,314 |
|
|
|
5,640 |
|
|
|
18,965 |
|
|
|
16,497 |
|
Total noninterest expense |
|
33,473 |
|
|
|
31,614 |
|
|
|
105,136 |
|
|
|
95,024 |
|
Income before income tax
expense |
|
50,644 |
|
|
|
52,876 |
|
|
|
147,018 |
|
|
|
150,694 |
|
Income tax expense |
|
14,149 |
|
|
|
13,928 |
|
|
|
39,531 |
|
|
|
38,735 |
|
Net income |
$ |
36,495 |
|
|
$ |
38,948 |
|
|
$ |
107,487 |
|
|
$ |
111,959 |
|
|
|
|
|
|
|
|
|
Per Share
Data: |
|
|
|
|
|
|
|
Earnings per weighted average
common share, basic |
$ |
1.07 |
|
|
$ |
1.14 |
|
|
$ |
3.12 |
|
|
$ |
3.26 |
|
Earnings per weighted average
common share, diluted |
$ |
1.07 |
|
|
$ |
1.13 |
|
|
$ |
3.12 |
|
|
$ |
3.25 |
|
Weighted average common shares
outstanding, basic |
|
34,232,890 |
|
|
|
34,308,684 |
|
|
|
34,418,154 |
|
|
|
34,291,929 |
|
Weighted average common shares
outstanding, diluted |
|
34,255,889 |
|
|
|
34,460,794 |
|
|
|
34,450,876 |
|
|
|
34,444,389 |
|
Actual shares outstanding at
period end |
|
33,720,522 |
|
|
|
34,308,473 |
|
|
|
33,720,522 |
|
|
|
34,308,473 |
|
Book value per common share at
period end |
$ |
35.13 |
|
|
$ |
30.94 |
|
|
$ |
35.13 |
|
|
$ |
30.94 |
|
Tangible book value per common
share at period end (1) |
$ |
32.02 |
|
|
$ |
27.84 |
|
|
$ |
32.02 |
|
|
$ |
27.84 |
|
Dividend per common share |
$ |
0.22 |
|
|
$ |
- |
|
|
$ |
0.44 |
|
|
$ |
- |
|
|
|
|
|
|
|
|
|
Performance Ratios
(annualized): |
|
|
|
|
|
|
|
Return on average assets |
|
1.62% |
|
|
|
1.93% |
|
|
|
1.66% |
|
|
|
1.92% |
|
Return on average common
equity |
|
12.09% |
|
|
|
14.85% |
|
|
|
12.34% |
|
|
|
14.92% |
|
Return on average tangible
common equity |
|
13.25% |
|
|
|
16.54% |
|
|
|
13.57% |
|
|
|
16.70% |
|
Net interest margin |
|
3.72% |
|
|
|
4.14% |
|
|
|
3.88% |
|
|
|
4.15% |
|
Efficiency ratio
(2) |
|
38.34% |
|
|
|
36.37% |
|
|
|
40.08% |
|
|
|
37.74% |
|
|
|
|
|
|
|
|
|
Other
Ratios: |
|
|
|
|
|
|
|
Allowance for credit losses to
total loans (3) |
|
0.98% |
|
|
|
1.00% |
|
|
|
0.98% |
|
|
|
1.00% |
|
Allowance for credit losses to
total nonperforming loans |
|
127.87% |
|
|
|
452.28% |
|
|
|
127.87% |
|
|
|
452.28% |
|
Nonperforming loans to total
loans (3) |
|
0.76% |
|
|
|
0.22% |
|
|
|
0.76% |
|
|
|
0.22% |
|
Nonperforming assets to total
assets |
|
0.66% |
|
|
|
0.20% |
|
|
|
0.66% |
|
|
|
0.20% |
|
Net charge-offs (annualized)
to average loans (3) |
|
0.08% |
|
|
|
0.05% |
|
|
|
0.12% |
|
|
|
0.05% |
|
Common equity to total
assets |
|
13.16% |
|
|
|
13.18% |
|
|
|
13.16% |
|
|
|
13.18% |
|
Tier 1 capital (to average
assets) |
|
12.19% |
|
|
|
12.13% |
|
|
|
12.19% |
|
|
|
12.13% |
|
Total capital (to risk
weighted assets) |
|
16.08% |
|
|
|
15.74% |
|
|
|
16.08% |
|
|
|
15.74% |
|
Common equity tier 1 capital
(to risk weighted assets) |
|
12.76% |
|
|
|
12.11% |
|
|
|
12.76% |
|
|
|
12.11% |
|
Tangible common equity ratio
(1) |
|
12.13% |
|
|
|
12.01% |
|
|
|
12.13% |
|
|
|
12.01% |
|
|
|
|
|
|
|
|
|
Loan Balances - Period
End (in thousands): |
|
|
|
|
|
|
|
Commercial and Industrial |
$ |
1,466,862 |
|
|
$ |
1,493,577 |
|
|
$ |
1,466,862 |
|
|
$ |
1,493,577 |
|
Commercial real estate - owner
occupied |
$ |
956,345 |
|
|
$ |
863,162 |
|
|
$ |
956,345 |
|
|
$ |
863,162 |
|
Commercial real estate -
income producing |
$ |
3,812,284 |
|
|
$ |
3,189,910 |
|
|
$ |
3,812,284 |
|
|
$ |
3,189,910 |
|
1-4 Family mortgage |
$ |
104,563 |
|
|
$ |
104,864 |
|
|
$ |
104,563 |
|
|
$ |
104,864 |
|
Construction - commercial and
residential |
$ |
1,053,789 |
|
|
$ |
1,047,591 |
|
|
$ |
1,053,789 |
|
|
$ |
1,047,591 |
|
Construction - C&I (owner
occupied) |
$ |
81,916 |
|
|
$ |
56,572 |
|
|
$ |
81,916 |
|
|
$ |
56,572 |
|
Home equity |
$ |
81,117 |
|
|
$ |
86,525 |
|
|
$ |
81,117 |
|
|
$ |
86,525 |
|
Other consumer |
$ |
2,285 |
|
|
$ |
2,471 |
|
|
$ |
2,285 |
|
|
$ |
2,471 |
|
|
|
|
|
|
|
|
|
Average Balances (in
thousands): |
|
|
|
|
|
|
|
Total assets |
$ |
8,923,406 |
|
|
$ |
8,023,535 |
|
|
$ |
8,659,916 |
|
|
$ |
7,805,089 |
|
Total earning assets |
$ |
8,655,196 |
|
|
$ |
7,793,422 |
|
|
$ |
8,391,463 |
|
|
$ |
7,576,570 |
|
Total loans |
$ |
7,492,816 |
|
|
$ |
6,646,264 |
|
|
$ |
7,265,726 |
|
|
$ |
6,550,754 |
|
Total deposits |
$ |
7,319,314 |
|
|
$ |
6,485,144 |
|
|
$ |
7,068,137 |
|
|
$ |
6,273,975 |
|
Total borrowings |
$ |
345,464 |
|
|
$ |
464,460 |
|
|
$ |
360,920 |
|
|
$ |
490,970 |
|
Total shareholders’
equity |
$ |
1,197,513 |
|
|
$ |
1,040,826 |
|
|
$ |
1,164,541 |
|
|
$ |
1,003,439 |
|
(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 calculates return on average tangible common equity by
dividing annualized year to date net income by tangible common
equity. 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) |
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Nine Months Ended |
|
Twelve Months Ended |
|
Three Months Ended |
|
Nine Months Ended |
|
September 30, 2019 |
|
September 30, 2019 |
|
December 31, 2018 |
|
September 30, 2018 |
|
September 30, 2018 |
Common shareholders'
equity |
|
|
$ |
1,184,594 |
|
|
$ |
1,108,941 |
|
|
|
|
$ |
1,061,651 |
|
Less: Intangible assets |
|
|
|
(104,915 |
) |
|
|
(105,766 |
) |
|
|
|
|
(106,481 |
) |
Tangible common
equity |
|
|
$ |
1,079,679 |
|
|
$ |
1,003,175 |
|
|
|
|
$ |
955,170 |
|
|
|
|
|
|
|
|
|
|
|
Book value per common
share |
|
|
$ |
35.13 |
|
|
$ |
32.25 |
|
|
|
|
$ |
30.94 |
|
Less: Intangible book value
per common share |
|
|
|
(3.11 |
) |
|
|
(3.08 |
) |
|
|
|
|
(3.10 |
) |
Tangible book value
per common share |
|
|
$ |
32.02 |
|
|
$ |
29.17 |
|
|
|
|
$ |
27.84 |
|
|
|
|
|
|
|
|
|
|
|
Total assets |
|
|
$ |
9,003,467 |
|
|
$ |
8,389,137 |
|
|
|
|
$ |
8,057,855 |
|
Less: Intangible assets |
|
|
|
(104,915 |
) |
|
|
(105,766 |
) |
|
|
|
|
(106,481 |
) |
Tangible
assets |
|
|
$ |
8,898,552 |
|
|
$ |
8,283,371 |
|
|
|
|
$ |
7,951,374 |
|
Tangible common equity
ratio |
|
|
|
12.13% |
|
|
|
12.11% |
|
|
|
|
|
12.01% |
|
|
|
|
|
|
|
|
|
|
|
Average common shareholders' equity |
$ |
1,197,513 |
|
|
$ |
1,164,541 |
|
|
$ |
1,022,642 |
|
|
$ |
1,040,826 |
|
|
$ |
1,003,439 |
|
Less: Average intangible
assets |
|
(105,034 |
) |
|
|
(105,297 |
) |
|
|
(106,806 |
) |
|
|
(106,629 |
) |
|
|
(106,949 |
) |
Average tangible
common equity |
$ |
1,092,479 |
|
|
$ |
1,059,245 |
|
|
$ |
915,836 |
|
|
$ |
934,197 |
|
|
$ |
896,490 |
|
|
|
|
|
|
|
|
|
|
|
Net Income Available to Common
Shareholders |
$ |
36,495 |
|
|
$ |
107,487 |
|
|
$ |
152,276 |
|
|
$ |
38,949 |
|
|
$ |
111,959 |
|
Average tangible common
equity |
$ |
1,092,479 |
|
|
$ |
1,059,245 |
|
|
$ |
915,836 |
|
|
$ |
934,197 |
|
|
$ |
896,490 |
|
Annualized Return on
Average Tangible Common Equity (1) |
|
13.25% |
|
|
|
13.57% |
|
|
|
16.63% |
|
|
|
16.54% |
|
|
|
16.70% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Eagle Bancorp,
Inc. |
|
|
|
|
|
|
|
|
|
GAAP Reconciliation
(Unaudited) |
|
|
|
|
|
|
|
|
|
(dollars in thousands except
per share data) |
|
|
|
|
|
|
Nine Months Ended September 30, 2019 |
|
|
|
|
|
GAAP |
|
Change |
|
Non-GAAP |
|
|
|
|
Noninterest
Expense |
|
|
|
|
|
|
|
|
|
Nonperforming assets |
$ |
59,137 |
|
|
$ |
(16,528 |
) |
|
$ |
42,609 |
|
|
|
|
|
Nonperforming loans |
$ |
57,650 |
|
|
$ |
(16,528 |
) |
|
$ |
41,122 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Ratios
(annualized): |
|
|
|
|
|
|
|
|
|
Nonperforming assets to total assets (4) |
|
0.66% |
|
|
|
|
|
0.47% |
|
|
|
|
|
Nonperforming loans to total loans (4) |
|
0.76% |
|
|
|
|
|
0.54% |
|
|
|
|
|
Allowance for credit losses to total nonperforming loans (4) |
|
127.87% |
|
|
|
|
|
179.27% |
|
|
|
|
|
(2) Computed by dividing noninterest expense by the sum of net
interest income and noninterest income.
(3) Excludes loans held for sale.
(4) Nonperforming loans at September 30, 2019, includes a
$16.5 million loan that was brought current shortly after quarter
end.
|
|
|
|
|
|
Eagle Bancorp,
Inc. |
|
|
|
|
|
Consolidated Balance
Sheets (Unaudited) |
|
|
|
|
|
(dollars in thousands, except
per share data) |
|
|
|
|
|
|
|
|
|
|
|
Assets |
September 30, 2019 |
|
December 31, 2018 |
|
September 30, 2018 |
Cash and due from banks |
$ |
6,657 |
|
|
$ |
6,773 |
|
|
$ |
4,459 |
|
Federal funds sold |
|
27,711 |
|
|
|
11,934 |
|
|
|
17,284 |
|
Interest bearing deposits with
banks and other short-term investments |
|
361,154 |
|
|
|
303,157 |
|
|
|
162,734 |
|
Investment securities
available for sale, at fair value |
|
708,545 |
|
|
|
784,139 |
|
|
|
722,674 |
|
Federal Reserve and Federal
Home Loan Bank stock |
|
28,725 |
|
|
|
23,506 |
|
|
|
37,257 |
|
Loans held for sale |
|
52,199 |
|
|
|
19,254 |
|
|
|
18,728 |
|
Loans |
|
7,559,161 |
|
|
|
6,991,447 |
|
|
|
6,844,672 |
|
Less allowance for credit
losses |
|
(73,720 |
) |
|
|
(69,944 |
) |
|
|
(68,189 |
) |
Loans, net |
|
7,485,441 |
|
|
|
6,921,503 |
|
|
|
6,776,483 |
|
Premises and equipment,
net |
|
14,515 |
|
|
|
16,851 |
|
|
|
17,457 |
|
Operating lease right-of-use
assets |
|
26,552 |
|
|
|
- |
|
|
|
- |
|
Deferred income taxes |
|
29,722 |
|
|
|
33,027 |
|
|
|
35,196 |
|
Bank owned life insurance |
|
74,726 |
|
|
|
73,441 |
|
|
|
73,007 |
|
Intangible assets, net |
|
104,915 |
|
|
|
105,766 |
|
|
|
106,481 |
|
Other real estate owned |
|
1,487 |
|
|
|
1,394 |
|
|
|
1,394 |
|
Other assets |
|
81,118 |
|
|
|
88,392 |
|
|
|
84,701 |
|
Total Assets |
$ |
9,003,467 |
|
|
$ |
8,389,137 |
|
|
$ |
8,057,855 |
|
|
|
|
|
|
|
Liabilities and
Shareholders' Equity |
|
|
|
|
|
Deposits: |
|
|
|
|
|
Noninterest bearing demand |
$ |
2,051,106 |
|
|
$ |
2,104,220 |
|
|
$ |
2,057,886 |
|
Interest bearing transaction |
|
918,011 |
|
|
|
593,107 |
|
|
|
459,455 |
|
Savings and money market |
|
3,034,530 |
|
|
|
2,949,559 |
|
|
|
2,573,258 |
|
Time, $100,000 or more |
|
772,340 |
|
|
|
801,957 |
|
|
|
758,152 |
|
Other time |
|
626,526 |
|
|
|
525,442 |
|
|
|
523,554 |
|
Total deposits |
|
7,402,513 |
|
|
|
6,974,285 |
|
|
|
6,372,305 |
|
Customer repurchase
agreements |
|
30,297 |
|
|
|
30,413 |
|
|
|
36,446 |
|
Other short-term
borrowings |
|
100,000 |
|
|
|
- |
|
|
|
325,000 |
|
Long-term borrowings |
|
217,589 |
|
|
|
217,296 |
|
|
|
217,198 |
|
Operating lease
liabilities |
|
29,586 |
|
|
|
- |
|
|
|
- |
|
Other liabilities |
|
38,888 |
|
|
|
58,202 |
|
|
|
45,255 |
|
Total liabilities |
|
7,818,873 |
|
|
|
7,280,196 |
|
|
|
6,996,204 |
|
|
|
|
|
|
|
Shareholders'
Equity |
|
|
|
|
|
Common stock, par value $.01
per share; shares authorized 100,000,000, shares |
|
|
|
|
|
issued and outstanding 33,720,522, 34,387,919, and 34,308,473,
respectively |
|
336 |
|
|
|
342 |
|
|
|
341 |
|
Additional paid in
capital |
|
502,566 |
|
|
|
528,380 |
|
|
|
526,423 |
|
Retained earnings |
|
677,055 |
|
|
|
584,494 |
|
|
|
544,177 |
|
Accumulated other
comprehensive income (loss) |
|
4,637 |
|
|
|
(4,275 |
) |
|
|
(9,290 |
) |
Total Shareholders' Equity |
|
1,184,594 |
|
|
|
1,108,941 |
|
|
|
1,061,651 |
|
Total Liabilities and Shareholders' Equity |
$ |
9,003,467 |
|
|
$ |
8,389,137 |
|
|
$ |
8,057,855 |
|
|
|
|
|
|
` |
Eagle Bancorp,
Inc. |
|
|
|
|
|
|
|
Consolidated
Statements of Income (Unaudited) |
|
|
|
|
|
|
|
(dollars in thousands, except
per share data) |
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
Interest Income |
|
2019 |
|
|
2018 |
|
|
2019 |
|
|
2018 |
Interest and fees on loans |
$ |
102,297 |
|
$ |
95,570 |
|
$ |
302,007 |
|
$ |
270,924 |
Interest and dividends on investment securities |
|
4,904 |
|
|
4,875 |
|
|
15,740 |
|
|
12,525 |
Interest on balances with other banks and short-term
investments |
|
1,762 |
|
|
1,897 |
|
|
4,533 |
|
|
4,152 |
Interest on federal funds sold |
|
71 |
|
|
18 |
|
|
167 |
|
|
104 |
Total interest income |
|
109,034 |
|
|
102,360 |
|
|
322,447 |
|
|
287,705 |
Interest
Expense |
|
|
|
|
|
|
|
Interest on deposits |
|
24,576 |
|
|
16,719 |
|
|
67,937 |
|
|
39,896 |
Interest on customer repurchase agreements |
|
82 |
|
|
54 |
|
|
255 |
|
|
166 |
Interest on other short-term borrowings |
|
408 |
|
|
1,317 |
|
|
1,983 |
|
|
3,425 |
Interest on long-term borrowings |
|
2,979 |
|
|
2,979 |
|
|
8,937 |
|
|
8,937 |
Total interest expense |
|
28,045 |
|
|
21,069 |
|
|
79,112 |
|
|
52,424 |
Net Interest
Income |
|
80,989 |
|
|
81,291 |
|
|
243,335 |
|
|
235,281 |
Provision for Credit
Losses |
|
3,186 |
|
|
2,441 |
|
|
10,146 |
|
|
6,060 |
Net Interest Income
After Provision For Credit Losses |
|
77,803 |
|
|
78,850 |
|
|
233,189 |
|
|
229,221 |
|
|
|
|
|
|
|
|
Noninterest
Income |
|
|
|
|
|
|
|
Service charges on deposits |
|
1,494 |
|
|
1,814 |
|
|
4,794 |
|
|
5,188 |
Gain on sale of loans |
|
2,563 |
|
|
1,434 |
|
|
5,874 |
|
|
4,632 |
Gain on sale of investment securities |
|
153 |
|
|
- |
|
|
1,628 |
|
|
68 |
Increase in the cash surrender value of bank owned life
insurance |
|
431 |
|
|
373 |
|
|
1,285 |
|
|
1,073 |
Other income |
|
1,673 |
|
|
2,019 |
|
|
5,384 |
|
|
5,536 |
Total noninterest income |
|
6,314 |
|
|
5,640 |
|
|
18,965 |
|
|
16,497 |
Noninterest
Expense |
|
|
|
|
|
|
|
Salaries and employee benefits |
|
19,095 |
|
|
17,157 |
|
|
60,482 |
|
|
51,827 |
Premises and equipment expenses |
|
3,503 |
|
|
3,889 |
|
|
11,007 |
|
|
11,691 |
Marketing and advertising |
|
1,210 |
|
|
1,191 |
|
|
3,626 |
|
|
3,419 |
Data processing |
|
2,183 |
|
|
2,423 |
|
|
7,161 |
|
|
7,144 |
Legal, accounting and professional fees |
|
3,625 |
|
|
2,130 |
|
|
8,074 |
|
|
7,282 |
FDIC insurance |
|
85 |
|
|
933 |
|
|
2,327 |
|
|
2,559 |
Other expenses |
|
3,772 |
|
|
3,891 |
|
|
12,459 |
|
|
11,102 |
Total noninterest expense |
|
33,473 |
|
|
31,614 |
|
|
105,136 |
|
|
95,024 |
Income Before Income
Tax Expense |
|
50,644 |
|
|
52,876 |
|
|
147,018 |
|
|
150,694 |
Income Tax
Expense |
|
14,149 |
|
|
13,928 |
|
|
39,531 |
|
|
38,735 |
Net
Income |
$ |
36,495 |
|
$ |
38,948 |
|
$ |
107,487 |
|
$ |
111,959 |
|
|
|
|
|
|
|
|
Earnings Per Common
Share |
|
|
|
|
|
|
|
Basic |
$ |
1.07 |
|
$ |
1.14 |
|
$ |
3.12 |
|
$ |
3.26 |
Diluted |
$ |
1.07 |
|
$ |
1.13 |
|
$ |
3.12 |
|
$ |
3.25 |
Eagle Bancorp, Inc. |
Consolidated Average Balances, Interest Yields And Rates
(Unaudited) |
(dollars in thousands) |
|
|
|
|
|
|
|
|
|
Three Months Ended September 30, |
|
|
2019 |
|
|
|
2018 |
|
|
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 |
$ |
344,853 |
$ |
1,762 |
2.03 |
% |
|
$ |
377,324 |
$ |
1,897 |
1.99 |
% |
Loans held for sale
(1) |
|
49,765 |
|
492 |
3.95 |
% |
|
|
23,511 |
|
274 |
4.66 |
% |
Loans (1)
(2) |
|
7,492,816 |
|
101,805 |
5.39 |
% |
|
|
6,646,264 |
|
95,296 |
5.69 |
% |
Investment securities
available for sale (2) |
|
741,907 |
|
4,904 |
2.62 |
% |
|
|
735,586 |
|
4,875 |
2.63 |
% |
Federal funds sold |
|
25,855 |
|
71 |
1.09 |
% |
|
|
10,737 |
|
18 |
0.67 |
% |
Total interest earning assets |
|
8,655,196 |
|
109,034 |
5.00 |
% |
|
|
7,793,422 |
|
102,360 |
5.21 |
% |
|
|
|
|
|
|
|
|
Total noninterest earning
assets |
|
341,452 |
|
|
|
|
297,815 |
|
|
Less: allowance for credit
losses |
|
73,242 |
|
|
|
|
67,702 |
|
|
Total noninterest earning assets |
|
268,210 |
|
|
|
|
230,113 |
|
|
TOTAL ASSETS |
$ |
8,923,406 |
|
|
|
$ |
8,023,535 |
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY |
|
|
|
|
|
|
|
Interest bearing
liabilities: |
|
|
|
|
|
|
|
Interest bearing
transaction |
$ |
791,785 |
$ |
1,828 |
0.92 |
% |
|
$ |
482,820 |
$ |
973 |
0.80 |
% |
Savings and money market |
|
2,922,751 |
|
13,606 |
1.85 |
% |
|
|
2,596,010 |
|
9,636 |
1.47 |
% |
Time deposits |
|
1,444,328 |
|
9,142 |
2.51 |
% |
|
|
1,220,755 |
|
6,110 |
1.99 |
% |
Total interest bearing deposits |
|
5,158,864 |
|
24,576 |
1.89 |
% |
|
|
4,299,585 |
|
16,719 |
1.54 |
% |
Customer repurchase
agreements |
|
27,809 |
|
82 |
1.17 |
% |
|
|
30,445 |
|
54 |
0.70 |
% |
Other short-term
borrowings |
|
100,100 |
|
408 |
1.59 |
% |
|
|
216,851 |
|
1,317 |
2.38 |
% |
Long-term borrowings |
|
217,555 |
|
2,979 |
5.36 |
% |
|
|
217,164 |
|
2,979 |
5.37 |
% |
Total interest bearing liabilities |
|
5,504,328 |
|
28,045 |
2.02 |
% |
|
|
4,764,045 |
|
21,069 |
1.75 |
% |
|
|
|
|
|
|
|
|
Noninterest bearing
liabilities: |
|
|
|
|
|
|
|
Noninterest bearing
demand |
|
2,160,450 |
|
|
|
|
2,185,559 |
|
|
Other liabilities |
|
61,115 |
|
|
|
|
33,105 |
|
|
Total noninterest bearing liabilities |
|
2,221,565 |
|
|
|
|
2,218,664 |
|
|
|
|
|
|
|
|
|
|
Shareholders’ Equity |
|
1,197,513 |
|
|
|
|
1,040,826 |
|
|
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY |
$ |
8,923,406 |
|
|
|
$ |
8,023,535 |
|
|
|
|
|
|
|
|
|
|
Net interest income |
|
$ |
80,989 |
|
|
|
$ |
81,291 |
|
Net interest spread |
|
|
2.98 |
% |
|
|
|
3.46 |
% |
Net interest margin |
|
|
3.72 |
% |
|
|
|
4.14 |
% |
Cost of funds |
|
|
1.28 |
% |
|
|
|
1.07 |
% |
|
|
|
|
|
|
|
|
(1) Loans placed
on nonaccrual status are included in average balances. Net loan
fees and late charges included in interest income on loans totaled
$4.3 million and $5.0 million |
for the three
months ended September 30, 2019 and 2018, 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, |
|
|
2019 |
|
|
|
2018 |
|
|
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 |
$ |
285,150 |
$ |
4,533 |
2.13 |
% |
|
$ |
321,266 |
$ |
4,152 |
1.73 |
% |
Loans held for sale
(1) |
|
34,265 |
|
1,041 |
4.05 |
% |
|
|
24,692 |
|
839 |
4.53 |
% |
Loans (1)
(2) |
|
7,265,726 |
|
300,966 |
5.54 |
% |
|
|
6,550,754 |
|
270,085 |
5.51 |
% |
Investment securities
available for sale (1) |
|
784,970 |
|
15,740 |
2.68 |
% |
|
|
664,798 |
|
12,525 |
2.52 |
% |
Federal funds sold |
|
21,352 |
|
167 |
1.05 |
% |
|
|
15,060 |
|
104 |
0.92 |
% |
Total interest earning assets |
|
8,391,463 |
|
322,447 |
5.14 |
% |
|
|
7,576,570 |
|
287,705 |
5.08 |
% |
|
|
|
|
|
|
|
|
Total noninterest earning
assets |
|
339,355 |
|
|
|
|
294,948 |
|
|
Less: allowance for credit
losses |
|
70,902 |
|
|
|
|
66,429 |
|
|
Total noninterest earning assets |
|
268,453 |
|
|
|
|
228,519 |
|
|
TOTAL ASSETS |
$ |
8,659,916 |
|
|
|
$ |
7,805,089 |
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY |
|
|
|
|
|
|
|
Interest bearing
liabilities: |
|
|
|
|
|
|
|
Interest bearing
transaction |
$ |
696,825 |
$ |
4,206 |
0.81 |
% |
|
$ |
433,921 |
$ |
2,252 |
0.69 |
% |
Savings and money market |
|
2,781,663 |
|
37,848 |
1.82 |
% |
|
|
2,670,578 |
|
23,846 |
1.19 |
% |
Time deposits |
|
1,406,237 |
|
25,883 |
2.46 |
% |
|
|
1,078,608 |
|
13,798 |
1.71 |
% |
Total interest bearing deposits |
|
4,884,725 |
|
67,937 |
1.86 |
% |
|
|
4,183,107 |
|
39,896 |
1.28 |
% |
Customer repurchase
agreements |
|
29,617 |
|
255 |
1.15 |
% |
|
|
45,504 |
|
166 |
0.49 |
% |
Other short-term
borrowings |
|
113,845 |
|
1,983 |
2.30 |
% |
|
|
228,398 |
|
3,425 |
1.98 |
% |
Long-term borrowings |
|
217,458 |
|
8,937 |
5.42 |
% |
|
|
217,068 |
|
8,937 |
5.43 |
% |
Total interest bearing liabilities |
|
5,245,645 |
|
79,112 |
2.02 |
% |
|
|
4,674,077 |
|
52,424 |
1.50 |
% |
|
|
|
|
|
|
|
|
Noninterest bearing
liabilities: |
|
|
|
|
|
|
|
Noninterest bearing
demand |
|
2,183,412 |
|
|
|
|
2,090,868 |
|
|
Other liabilities |
|
66,318 |
|
|
|
|
36,705 |
|
|
Total noninterest bearing liabilities |
|
2,249,730 |
|
|
|
|
2,127,573 |
|
|
|
|
|
|
|
|
|
|
Shareholders’ equity |
|
1,164,541 |
|
|
|
|
1,003,439 |
|
|
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY |
$ |
8,659,916 |
|
|
|
$ |
7,805,089 |
|
|
|
|
|
|
|
|
|
|
Net interest income |
|
$ |
243,335 |
|
|
|
$ |
235,281 |
|
Net interest spread |
|
|
3.12 |
% |
|
|
|
3.58 |
% |
Net interest margin |
|
|
3.88 |
% |
|
|
|
4.15 |
% |
Cost of funds |
|
|
1.26 |
% |
|
|
|
0.93 |
% |
|
|
|
|
|
|
|
|
(1) Loans placed
on nonaccrual status are included in average balances. Net loan
fees and late charges included in interest income on loans totaled
$13.1 million and $14.9 million |
for the nine months ended
September 30, 2019 and 2018, 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: |
|
2019 |
|
|
|
2019 |
|
|
|
2019 |
|
|
|
2018 |
|
|
|
2018 |
|
|
|
2018 |
|
|
|
2018 |
|
|
|
2017 |
|
Total interest income |
$ |
109,034 |
|
|
$ |
108,279 |
|
|
$ |
105,134 |
|
|
$ |
105,581 |
|
|
$ |
102,360 |
|
|
$ |
96,296 |
|
|
$ |
89,049 |
|
|
$ |
86,526 |
|
Total interest expense |
|
28,045 |
|
|
|
26,950 |
|
|
|
24,117 |
|
|
|
23,869 |
|
|
|
21,069 |
|
|
|
18,086 |
|
|
|
13,269 |
|
|
|
11,167 |
|
Net interest income |
|
80,989 |
|
|
|
81,329 |
|
|
|
81,017 |
|
|
|
81,712 |
|
|
|
81,291 |
|
|
|
78,210 |
|
|
|
75,780 |
|
|
|
75,359 |
|
Provision for credit
losses |
|
3,186 |
|
|
|
3,600 |
|
|
|
3,360 |
|
|
|
2,600 |
|
|
|
2,441 |
|
|
|
1,650 |
|
|
|
1,969 |
|
|
|
4,087 |
|
Net interest income after
provision for credit losses |
|
77,803 |
|
|
|
77,729 |
|
|
|
77,657 |
|
|
|
79,112 |
|
|
|
78,850 |
|
|
|
76,560 |
|
|
|
73,811 |
|
|
|
71,272 |
|
Noninterest income (before investment gains) |
|
6,161 |
|
|
|
5,797 |
|
|
|
5,379 |
|
|
|
6,060 |
|
|
|
5,640 |
|
|
|
5,527 |
|
|
|
5,262 |
|
|
|
9,496 |
|
Gain on sale of investment securities |
|
153 |
|
|
|
563 |
|
|
|
912 |
|
|
|
29 |
|
|
|
- |
|
|
|
26 |
|
|
|
42 |
|
|
|
- |
|
Total noninterest income |
|
6,314 |
|
|
|
6,360 |
|
|
|
6,291 |
|
|
|
6,089 |
|
|
|
5,640 |
|
|
|
5,553 |
|
|
|
5,304 |
|
|
|
9,496 |
|
Salaries and employee benefits |
|
19,095 |
|
|
|
17,743 |
|
|
|
23,644 |
|
|
|
15,907 |
|
|
|
17,157 |
|
|
|
17,812 |
|
|
|
16,858 |
|
|
|
16,678 |
|
Premises and equipment |
|
3,503 |
|
|
|
3,652 |
|
|
|
3,852 |
|
|
|
3,969 |
|
|
|
3,889 |
|
|
|
3,873 |
|
|
|
3,929 |
|
|
|
4,019 |
|
Marketing and advertising |
|
1,210 |
|
|
|
1,268 |
|
|
|
1,148 |
|
|
|
1,147 |
|
|
|
1,191 |
|
|
|
1,291 |
|
|
|
937 |
|
|
|
1,222 |
|
Other expenses |
|
9,665 |
|
|
|
10,696 |
|
|
|
9,660 |
|
|
|
10,664 |
|
|
|
9,377 |
|
|
|
9,313 |
|
|
|
9,397 |
|
|
|
7,884 |
|
Total noninterest expense |
|
33,473 |
|
|
|
33,359 |
|
|
|
38,304 |
|
|
|
31,687 |
|
|
|
31,614 |
|
|
|
32,289 |
|
|
|
31,121 |
|
|
|
29,803 |
|
Income before income tax
expense |
|
50,644 |
|
|
|
50,730 |
|
|
|
45,644 |
|
|
|
53,514 |
|
|
|
52,876 |
|
|
|
49,824 |
|
|
|
47,994 |
|
|
|
50,965 |
|
Income tax expense |
|
14,149 |
|
|
|
13,487 |
|
|
|
11,895 |
|
|
|
13,197 |
|
|
|
13,928 |
|
|
|
12,528 |
|
|
|
12,279 |
|
|
|
35,396 |
|
Net income |
|
36,495 |
|
|
|
37,243 |
|
|
|
33,749 |
|
|
|
40,317 |
|
|
|
38,948 |
|
|
|
37,296 |
|
|
|
35,715 |
|
|
|
15,569 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Per Share
Data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per weighted average
common share, basic |
$ |
1.07 |
|
|
$ |
1.08 |
|
|
$ |
0.98 |
|
|
$ |
1.17 |
|
|
$ |
1.14 |
|
|
$ |
1.09 |
|
|
$ |
1.04 |
|
|
$ |
0.46 |
|
Earnings per weighted average
common share, diluted |
$ |
1.07 |
|
|
$ |
1.08 |
|
|
$ |
0.98 |
|
|
$ |
1.17 |
|
|
$ |
1.13 |
|
|
$ |
1.08 |
|
|
$ |
1.04 |
|
|
$ |
0.45 |
|
Weighted average common shares
outstanding, basic |
|
34,232,890 |
|
|
|
34,540,152 |
|
|
|
34,480,772 |
|
|
|
34,349,089 |
|
|
|
34,308,684 |
|
|
|
34,305,693 |
|
|
|
34,260,882 |
|
|
|
34,179,793 |
|
Weighted average common shares
outstanding, diluted |
|
34,255,889 |
|
|
|
34,565,253 |
|
|
|
34,536,236 |
|
|
|
34,460,985 |
|
|
|
34,460,794 |
|
|
|
34,448,354 |
|
|
|
34,406,310 |
|
|
|
34,334,873 |
|
Actual shares outstanding at
period end |
|
33,720,522 |
|
|
|
34,539,853 |
|
|
|
34,537,193 |
|
|
|
34,387,919 |
|
|
|
34,308,473 |
|
|
|
34,305,071 |
|
|
|
34,303,056 |
|
|
|
34,185,163 |
|
Book value per common share at
period end |
$ |
35.13 |
|
|
$ |
34.30 |
|
|
$ |
33.25 |
|
|
$ |
32.25 |
|
|
$ |
30.94 |
|
|
$ |
29.82 |
|
|
$ |
28.72 |
|
|
$ |
27.80 |
|
Tangible book value per common
share at period end (1) |
$ |
32.02 |
|
|
$ |
31.25 |
|
|
$ |
30.20 |
|
|
$ |
29.17 |
|
|
$ |
27.84 |
|
|
$ |
26.71 |
|
|
$ |
25.60 |
|
|
$ |
24.67 |
|
Dividend per common share |
$ |
0.22 |
|
|
$ |
0.22 |
|
|
$ |
- |
|
|
$ |
- |
|
|
$ |
- |
|
|
$ |
- |
|
|
$ |
- |
|
|
$ |
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Performance Ratios
(annualized): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average assets |
|
1.62% |
|
|
|
1.74% |
|
|
|
1.62% |
|
|
|
1.90% |
|
|
|
1.93% |
|
|
|
1.92% |
|
|
|
1.91% |
|
|
|
0.82% |
|
Return on average common
equity |
|
12.09% |
|
|
|
12.81% |
|
|
|
12.12% |
|
|
|
14.82% |
|
|
|
14.85% |
|
|
|
14.93% |
|
|
|
14.99% |
|
|
|
6.49% |
|
Return on average tangible
common equity |
|
13.25% |
|
|
|
14.08% |
|
|
|
13.38% |
|
|
|
16.43% |
|
|
|
16.54% |
|
|
|
16.71% |
|
|
|
16.86% |
|
|
|
7.31% |
|
Net interest margin |
|
3.72% |
|
|
|
3.91% |
|
|
|
4.02% |
|
|
|
3.97% |
|
|
|
4.14% |
|
|
|
4.15% |
|
|
|
4.17% |
|
|
|
4.13% |
|
Efficiency ratio
(2) |
|
38.34% |
|
|
|
38.04% |
|
|
|
43.87% |
|
|
|
36.09% |
|
|
|
36.37% |
|
|
|
38.55% |
|
|
|
38.38% |
|
|
|
35.12% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
Ratios: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for credit losses to
total loans (3) |
|
0.98% |
|
|
|
0.98% |
|
|
|
0.98% |
|
|
|
1.00% |
|
|
|
1.00% |
|
|
|
1.00% |
|
|
|
1.00% |
|
|
|
1.01% |
|
Allowance for credit losses to
total nonperforming loans (4) |
|
127.87% |
|
|
|
192.70% |
|
|
|
173.72% |
|
|
|
429.72% |
|
|
|
452.28% |
|
|
|
612.42% |
|
|
|
491.56% |
|
|
|
489.20% |
|
Nonperforming loans to total
loans (3) (4) |
|
0.76% |
|
|
|
0.51% |
|
|
|
0.56% |
|
|
|
0.23% |
|
|
|
0.22% |
|
|
|
0.16% |
|
|
|
0.20% |
|
|
|
0.21% |
|
Nonperforming assets to total
assets (4) |
|
0.66% |
|
|
|
0.45% |
|
|
|
0.50% |
|
|
|
0.21% |
|
|
|
0.20% |
|
|
|
0.16% |
|
|
|
0.19% |
|
|
|
0.20% |
|
Net charge-offs (annualized)
to average loans (3) |
|
0.08% |
|
|
|
0.08% |
|
|
|
0.19% |
|
|
|
0.05% |
|
|
|
0.05% |
|
|
|
0.05% |
|
|
|
0.06% |
|
|
|
0.15% |
|
Tier 1 capital (to average
assets) |
|
12.19% |
|
|
|
12.66% |
|
|
|
12.49% |
|
|
|
12.08% |
|
|
|
12.13% |
|
|
|
11.97% |
|
|
|
11.76% |
|
|
|
11.45% |
|
Total capital (to risk
weighted assets) |
|
16.08% |
|
|
|
16.36% |
|
|
|
16.22% |
|
|
|
16.08% |
|
|
|
15.74% |
|
|
|
15.59% |
|
|
|
15.32% |
|
|
|
15.02% |
|
Common equity tier 1 capital
(to risk weighted assets) |
|
12.76% |
|
|
|
12.87% |
|
|
|
12.69% |
|
|
|
12.47% |
|
|
|
12.11% |
|
|
|
11.89% |
|
|
|
11.57% |
|
|
|
11.23% |
|
Tangible common equity ratio
(1) |
|
12.13% |
|
|
|
12.60% |
|
|
|
12.59% |
|
|
|
12.11% |
|
|
|
12.01% |
|
|
|
11.79% |
|
|
|
11.57% |
|
|
|
11.44% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Balances (in
thousands): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets |
$ |
8,923,406 |
|
|
$ |
8,595,523 |
|
|
$ |
8,455,680 |
|
|
$ |
8,415,480 |
|
|
$ |
8,023,535 |
|
|
$ |
7,789,564 |
|
|
$ |
7,597,485 |
|
|
$ |
7,487,624 |
|
Total earning assets |
$ |
8,655,196 |
|
|
$ |
8,328,323 |
|
|
$ |
8,185,711 |
|
|
$ |
8,171,010 |
|
|
$ |
7,793,422 |
|
|
$ |
7,558,138 |
|
|
$ |
7,373,535 |
|
|
$ |
7,242,994 |
|
Total loans |
$ |
7,492,816 |
|
|
$ |
7,260,899 |
|
|
$ |
7,038,472 |
|
|
$ |
6,897,434 |
|
|
$ |
6,646,264 |
|
|
$ |
6,569,931 |
|
|
$ |
6,433,730 |
|
|
$ |
6,207,505 |
|
Total deposits |
$ |
7,319,314 |
|
|
$ |
6,893,981 |
|
|
$ |
6,987,468 |
|
|
$ |
6,950,714 |
|
|
$ |
6,485,144 |
|
|
$ |
6,269,126 |
|
|
$ |
6,063,017 |
|
|
$ |
6,101,727 |
|
Total borrowings |
$ |
345,464 |
|
|
$ |
470,214 |
|
|
$ |
266,209 |
|
|
$ |
342,637 |
|
|
$ |
464,460 |
|
|
$ |
485,729 |
|
|
$ |
523,369 |
|
|
$ |
382,687 |
|
Total shareholders’
equity |
$ |
1,197,513 |
|
|
$ |
1,166,487 |
|
|
$ |
1,128,869 |
|
|
$ |
1,079,622 |
|
|
$ |
1,040,826 |
|
|
$ |
1,002,091 |
|
|
$ |
966,585 |
|
|
$ |
951,727 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(4) Nonperforming
loans at September 30, 2019, includes a $16.5 million loan that was
brought current shortly after quarter end. |
|
|
|
|
|
|
|
|
|
|
EAGLE BANCORP,
INC. CONTACT: Michael T. Flynn
301.986.1800
Eagle Bancorp (NASDAQ:EGBN)
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