Eagle Bancorp, Inc. (the "Company") (NASDAQ: EGBN), the parent
company of EagleBank (the "Bank"), today announced net income of
$45.7 million for the first quarter 2022 compared to net
income of $41.6 million for the prior quarter and
$43.5 million for the year-ago quarter. Net income was $1.43
per share (basic) and $1.42 per share (diluted) for the first
quarter 2022, compared to basic and diluted shares of $1.30 per
share for the prior quarter and $1.36 per share for the year-ago
quarter.
The increase in earnings of $4.1 million from
the prior quarter was primarily driven by a decrease in
non-interest expense from an accrual reduction of $5.0 million
related to share-based compensation awards and deferred
compensation to our former CEO and Chairman. The increase to
earnings from this accrual reduction was partially offset by (in
comparison to the prior quarter) a smaller reversal of the
provision for credit losses on loans and a decline in noninterest
income.
First Quarter 2022
Highlights
-
Loans increased by $48.2 million from the prior quarter-end. This
was the second consecutive quarterly increase.
-
There was a reversal of $2.8 million from the provision for
credit losses on loans. This was the fifth consecutive quarterly
reversal.
-
Salaries and employee benefits decreased $7.6 million from the
prior quarter, primarily due to an accrual reduction of
$5.0 million related to share-based compensation awards and
deferred compensation associated with our former CEO and
Chairman.
-
During the quarter, $1.1 billion of securities designated as
available-for-sale ("AFS") were transferred to held-to-maturity
("HTM"), net of $66 million of unrealized losses, and a portion of
securities purchased during the quarter were designated as
securities HTM. At quarter-end, $1.2 billion, or 39.3% of the
securities portfolio, was classified as securities HTM.
-
The increase in the overall interest rate environment created
unrealized losses in securities AFS that are recorded in
accumulated other comprehensive income. As a result, shareholders'
equity, book value per share and tangible book value per share
declined from the prior quarter-end.
(Dollars in thousands, except
per share) |
As of or for the Three Months Ended |
|
Percent Change |
|
March 31, |
|
December 31, |
|
March 31, |
|
Q1-22 |
|
Q1-22 |
|
2022 |
|
2021 |
|
2021 |
|
vs. Q4 21 |
|
vs. Q1 21 |
Income
Statement |
|
|
|
|
|
|
|
|
|
Net income |
$ |
45,744 |
|
|
$ |
41,620 |
|
|
$ |
43,469 |
|
|
9.9 |
% |
|
5.2 |
% |
Net income per diluted
share |
$ |
1.42 |
|
|
$ |
1.30 |
|
|
$ |
1.36 |
|
|
9.2 |
% |
|
4.4 |
% |
|
|
|
|
|
|
|
|
|
|
Return on Average Assets |
|
1.46 |
% |
|
|
1.32 |
% |
|
|
1.53 |
% |
|
|
|
|
Return on Average Common
Equity |
|
13.83 |
% |
|
|
12.30 |
% |
|
|
14.05 |
% |
|
|
|
|
Return on Average Tangible
Common Equity1 |
|
14.99 |
% |
|
|
13.35 |
% |
|
|
15.33 |
% |
|
|
|
|
Net interest margin |
|
2.65 |
% |
|
|
2.55 |
% |
|
|
2.98 |
% |
|
|
|
|
Efficiency Ratio1 |
|
35.28 |
% |
|
|
44.29 |
% |
|
|
40.74 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance
Sheet |
|
|
|
|
|
|
|
|
|
Assets |
$ |
11,212,943 |
|
|
$ |
11,847,310 |
|
|
$ |
11,127,864 |
|
|
(5.4 |
)% |
|
0.8 |
% |
Loans |
|
7,113,807 |
|
|
|
7,065,598 |
|
|
|
7,526,689 |
|
|
0.7 |
% |
|
(5.5 |
)% |
Loans (excluding PPP
loans)2 |
|
7,078,063 |
|
|
|
7,014,493 |
|
|
|
6,961,671 |
|
|
0.9 |
% |
|
1.7 |
% |
Deposits |
|
9,586,259 |
|
|
|
9,981,540 |
|
|
|
9,198,844 |
|
|
(4.0 |
)% |
|
4.2 |
% |
Total Capital (to risk
weighted assets) |
|
15.72 |
% |
|
|
16.15 |
% |
|
|
17.86 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Per
Share |
|
|
|
|
|
|
|
|
|
Book value per share |
$ |
39.44 |
|
|
$ |
42.28 |
|
|
$ |
39.45 |
|
|
(6.7 |
)% |
|
— |
% |
Tangible book value per
share |
$ |
36.19 |
|
|
$ |
38.97 |
|
|
$ |
36.16 |
|
|
(7.1 |
)% |
|
0.1 |
% |
|
|
|
|
|
|
|
|
|
|
Asset
quality |
|
|
|
|
|
|
|
|
|
Allowance for credit losses to
total loans |
|
1.01 |
% |
|
|
1.06 |
% |
|
|
1.36 |
% |
|
|
|
|
Nonperforming assets ("NPAs")
to total assets |
|
0.23 |
% |
|
|
0.26 |
% |
|
|
0.51 |
% |
|
|
|
|
Net charge-off ratio to avg.
loans (annualized) |
|
0.03 |
% |
|
|
0.07 |
% |
|
|
0.27 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CEO Commentary
Susan G. Riel, President and Chief Executive
Officer of Eagle Bancorp, Inc. commented, "The results for the
first quarter represent a continuation of our strong performance
from last year. Loan balances increased for a second consecutive
quarter and asset quality metrics continue to improve."
"This quarter's loan growth was driven by growth
from our CRE and C&I lending teams. We were also successful in
migrating many of our construction loans into income producing CRE
as projects were completed."
"Even with the completion of construction
projects, our pipeline remains strong as unfunded commitments were
up slightly to $2.1 billion at quarter-end. As more opportunities
arise, our total risk-based capital of 15.72%, gives us ample room
to continue to grow the loan portfolio."
"For our shareholders, we remain focused on
increasing value and returning cash through dividends. At the end
of the quarter, our board declared a dividend of $0.40 per share,
which is a payout ratio of 28% based on first quarter
earnings."
"We once again thank all of our employees for
their commitment in serving the needs of our clients and
communities. Additionally, we remain committed to a culture of
respect, diversity and inclusion in both the workplace and the
communities we serve."
Income Statement
- Net interest
income was $80.5 million for the first quarter 2022,
compared to $78.2 million for the prior quarter and
$82.7 million for the year-ago quarter. The increase in net
interest income from the prior quarter was driven by the deployment
of excess liquidity into investment securities, partially offset by
lower interest and fees on loans.
- Net
interest margin was 2.65% for the first quarter 2022,
compared to 2.55% for the prior quarter and 2.98% for the year-ago
quarter. The increase in margin from the prior quarter was
primarily attributable to an increase in the investment of excess
liquidity into higher earning assets, including securities. Average
securities (both securities AFS and securities HTM) were $730
million higher than in the prior quarter.
- The yield on the
loan portfolio was 4.35% for the first quarter 2022, compared to
4.45% for the prior quarter and 4.65% for the year-ago quarter.
Loan yields were down 10 basis points from the prior quarter as
higher yielding loans continued to be replaced by lower yielding
loans, and the impact of rising rates on existing adjustable rate
loans and new loans occurred later in the first quarter.
- The cost of funds was 0.26% for
first quarter 2022, compared to 0.26% for the prior quarter and
0.42% for the year-ago quarter. While it did not have much of an
impact on the first quarter of 2022, in the last half of March,
rates on most interest bearing demand deposit accounts were
increased by 5 basis points and a Federal Home Loan Bank ("FHLB")
advance of $150 million was repaid.
- Pre-provision net
revenue ("PPNR"),3 a non-GAAP measure, was $56.9 million
for the first quarter 2022, compared to $49.5 million for the prior
quarter and $55.3 million for the year-ago quarter. As a percent of
average assets, adjusted PPNR for the first quarter 2022 was 1.79%,
compared to 1.56% for the prior quarter and 1.95% for the year-ago
quarter. This increase in PPNR as a percent of average assets from
the prior quarter was primarily attributable to lower noninterest
expense driving the larger 15.0% increase in PPNR over the smaller
1.3% increase in average assets.
(Dollars in thousands) |
Three Months Ended |
|
Percent Change |
|
March 31, |
|
December 31, |
|
March 31, |
|
Q1-22 |
|
Q1-22 |
|
2022 |
|
2021 |
|
2021 |
|
vs. Q4 21 |
|
vs. Q1 21 |
Net interest income |
$ |
80,452 |
|
|
$ |
78,186 |
|
|
$ |
82,651 |
|
|
2.9 |
% |
|
(2.7 |
)% |
Noninterest income |
|
7,453 |
|
|
|
10,574 |
|
|
|
10,587 |
|
|
(29.5 |
)% |
|
(29.6 |
)% |
Less: Noninterest expense |
|
(31,012 |
) |
|
|
(39,309 |
) |
|
|
(37,987 |
) |
|
(21.1 |
)% |
|
(18.4 |
)% |
PPNR |
$ |
56,893 |
|
|
$ |
49,451 |
|
|
$ |
55,251 |
|
|
15.0 |
% |
|
3.0 |
% |
|
|
|
|
|
|
|
|
|
|
Average Assets |
$ |
12,700,993 |
|
|
$ |
12,538,596 |
|
|
$ |
11,517,836 |
|
|
1.3 |
% |
|
10.3 |
% |
PPNR to Avg. Assets
(non-GAAP) |
|
1.79 |
% |
|
|
1.56 |
% |
|
|
1.95 |
% |
|
|
|
|
- Provision for credit losses
on loans was a reversal of $2.8 million for the first
quarter 2022, compared to a reversal of $6.4 million for the prior
quarter and a reversal of $2.4 million for the year-ago quarter.
The first quarter 2022 reversal was primarily driven by
improvements in the economic environment, and related adjustments
to the quantitative components of the CECL model, in particular the
lower modeled probability of default, as well as improvements in
asset quality.
- Noninterest income
was $7.5 million for the first quarter 2022, as compared to $10.6
million for the prior quarter and $10.6 million for the year-ago
quarter. The decline in noninterest income from the prior quarter
was primarily due to decreases in Federal Housing Administration
("FHA") multifamily income, lower gain on sale of investment
securities and lower gain on sale of residential mortgage
loans.Residential mortgage loan locked commitments were $136.7
million, down from $163.0 million the prior quarter and down from
$303.3 million for the year-ago quarter. As interest rates rose in
the first quarter, the refinance activity slowed resulting in fewer
locked loans.
- Noninterest
expense was $31.0 million for the first quarter 2022
compared to $39.3 million for the prior quarter and $38.0 million
for the year-ago quarter. The major changes from the prior quarter
were as follows:
- Salaries and
employee benefits were $17.0 million, down $7.6 million from the
prior quarter. The decrease was primarily due to the reduction of
the $5.0 million accrual related to share-based compensation
awards and deferred compensation for our former CEO and Chairman in
the first quarter of 2022, because we believe any compensation
related claims are now time barred under Maryland law. The accrual
was originally recorded in the first quarter of 2019. Absent the
accrual reduction, salaries and employee benefits were down
$2.6 million4 from the prior quarter, primarily on lower
incentive bonus accruals offset by increases in share based
compensation and payroll taxes.
- Legal,
accounting and professional fees were $1.6 million, down $1.4
million from the prior quarter.
- Efficiency
ratio5 was 35.3% for the first quarter
2022 compared to 44.3% for the prior quarter and 40.7% for the
year-ago quarter. The improvement in the efficiency ratio from the
prior quarter was primarily driven by the decrease in noninterest
expense (see noninterest expense section above).
- Effective income tax
rate for the first quarter 2022 was 23.4%, compared to
26.3% for the prior quarter and 25.1% for the year-ago quarter. The
reduction in the effective tax rate from the prior quarter was
attributable to the decrease in noninterest expense related to the
accrual reduction discussed above in noninterest expenses. This
accrual was not tax deductible when recorded, conversely there was
no negative tax impact when the accrual was reduced.
Balance Sheet
- Total assets at
March 31, 2022 were $11.2 billion, down 5.4% from a quarter
ago and up 0.8% from a year ago. The decrease from the prior
quarter-end was driven by the utilization of interest-bearing
deposits with banks and other short-term investments to satisfy
deposit outflows and the repayment of a $150 million FHLB
advance.
- Investment securities (AFS
and HTM) had a balance of $2.9 billion at March 31,
2022, up 11.6% from a quarter ago and up 113.9% from a year ago.
The increase from the prior quarter-end was primarily due to more
excess liquidity being invested in higher earning assets in
response to higher rates on investments available in the market
during the quarter. Investments at quarter-end were $306 million
higher than that of the prior quarter-end, and investments made
during the first quarter of 2022 were primarily agency mortgage
backed securities and agency bonds.At quarter-end, securities HTM
were $1.2 billion of investment securities (AFS and HTM). The
transfer of securities from AFS to HTM and purchases of securities
designated as HTM during the quarter will reduce the impact of
changes in interest rates on capital and tangible capital.
- Total loans
(excluding loans held for sale) were $7.1 billion as of
March 31, 2022, up 0.7% from a quarter ago and down 5.5% from
a year ago. Excluding PPP loans, loan balances were $7.1 billion as
of March 31, 2022, up 0.9% from a quarter ago and up 1.7% from
a year ago.6 The increase in loans, excluding PPP loans, from the
prior quarter-end was driven by growth from commercial real estate
("CRE") loans and commercial & industrial loans
("C&I").
|
|
|
|
|
|
|
Percent Change |
(Dollars in thousands) |
March 31, |
|
December 31, |
|
March 31, |
|
Q1-22 |
|
Q1-22 |
|
2022 |
|
2021 |
|
2021 |
|
vs. Q4 21 |
|
vs. Q1 21 |
Total loans, excluding loans held for sale (GAAP) |
$ |
7,113,807 |
|
|
$ |
7,065,598 |
|
|
$ |
7,526,689 |
|
|
0.7 |
% |
|
(5.5 |
)% |
Less: PPP loans
(non-GAAP) |
|
(35,744 |
) |
|
|
(51,105 |
) |
|
|
(565,018 |
) |
|
|
|
|
Total loans, excluding loans
held for sale and PPP loans (non-GAAP) |
$ |
7,078,063 |
|
|
$ |
7,014,493 |
|
|
$ |
6,961,671 |
|
|
0.9 |
% |
|
1.7 |
% |
-
Allowance for credit losses was 1.01% of total
loans at March 31, 2022, compared to 1.06% a quarter ago, and
1.36% a year ago. The reduction in the allowance for credit losses
as a percent of total loans from the prior quarter-end was
primarily driven by the reversal of the allowance for credit
losses.Net charge-offs as a percent of average loans (excluding
loans held for sale) (on an annualized basis), was 0.03% for the
first quarter 2022, as compared to 0.07% a quarter ago, and 0.27%
for the year-ago quarter. Net charge-offs for the quarter were $459
thousand.
-
Nonperforming loans and assets: Both nonperforming
loans and assets decreased compared to the prior quarter and the
year-ago quarter as there were no new nonaccrual loans or assets
added since the prior quarter-end and several nonaccrual loans from
the prior quarter-end became current, were charged-off or
paid-down.
- Nonperforming loans as a percent of
loans were 0.33% at March 31, 2022, compared to 0.41% a
quarter ago and 0.69% a year ago.
- Nonperforming assets as a percent of
assets were 0.23% at March 31, 2022, compared to 0.26% a
quarter ago and 0.51% a year ago.
- Total
deposits were $9.6 billion at March 31, 2022, down
4.0% from a quarter ago and up 4.2% from a year ago. While deposits
were down from prior quarter-end, average deposits for the quarter
were up, and the deposit mix and cost of funds remains favorable.
- Average
noninterest bearing deposits to average total deposits was 36.1%
for the first quarter 2022, compared to 36.3% a quarter ago and
32.0% for the year-ago quarter.
- Total
shareholders’ equity was $1.3 billion at March 31,
2022, down 6.3% from a quarter ago, and up 0.4% from a year ago.
The decrease in shareholders' equity from the prior quarter-end was
primarily as a result of the increase in the overall interest rate
environment, which created unrealized losses in investment
securities available for sale, that are recorded in accumulated
other comprehensive income. These reductions to equity were
partially offset by retained earnings. These same factors, along
with the issuance of shares from share-based compensation, reduced
book value and tangible book value from the prior quarter-end:
- Book value per share was $39.44, down from $42.28 a quarter
ago, and down from $39.45 a year ago.
- Tangible book value per share7 was $36.19, down from $38.97 a
quarter ago, and up from $36.16 a year ago.
- Dividends: On
March 21, 2022, the Board of Directors declared a quarterly
cash dividend of $0.40 per common share payable on April 29,
2022 to shareholders of record on April 11, 2022.
- Capital ratios for
the Company remain strong and substantially in excess of regulatory
minimum requirements. Regulatory ratios based on risk-weighted
assets declined from the prior quarter as non-risk weighted cash
was moved into risk-weighted securities and loans. Common capital
ratios declined as rising rates created unrealized losses on
securities AFS which negatively impacted common equity and tangible
common equity.
|
For the Company |
|
|
|
|
|
|
|
Well |
|
March 31, |
|
December 31, |
|
March 31, |
|
Capitalized |
|
2022 |
|
2021 |
|
2021 |
|
Minimum |
Regulatory
Ratios |
|
|
|
|
|
|
|
Total Capital (to risk weighted assets) |
15.72 |
% |
|
16.15 |
% |
|
17.86 |
% |
|
10.00 |
% |
Tier 1 Capital (to risk
weighted assets) |
14.60 |
% |
|
15.02 |
% |
|
14.42 |
% |
|
8.00 |
% |
Common Equity Tier 1 (to risk
weighted assets) |
14.60 |
% |
|
15.02 |
% |
|
14.42 |
% |
|
6.50 |
% |
Tier 1 Capital (to average
assets) |
9.82 |
% |
|
10.19 |
% |
|
10.28 |
% |
|
5.00 |
% |
|
|
|
|
|
|
|
|
Common Capital
Ratios |
|
|
|
|
|
|
|
Common Equity Ratio |
11.28 |
% |
|
11.40 |
% |
|
11.33 |
% |
|
— |
% |
Tangible Common Equity
Ratio |
10.45 |
% |
|
10.60 |
% |
|
10.48 |
% |
|
— |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Additional financial
information: The financial information that follows
provides more detail on the Company’s financial performance for the
three months ended March 31, 2022 as compared to the three
months ended December 31, 2021 and March 31, 2021 as well
as eight quarters of trend data. Persons wishing additional
information should refer to the Company’s annual report on Form
10-K for the year ended December 31, 2021, 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 seventeen banking offices and five
lending 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,
and is committed to a culture of respect, diversity, equity and
inclusion in both its workplace and the communities in which it
operates.
Conference call: Eagle Bancorp
will host a conference call to discuss its first quarter 2022
financial results on Thursday, April 21, 2022 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: 3149886, 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 May 5, 2022.
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," "can," "anticipates," "believes," "expects,"
"plans," "estimates," "potential," "continue," "should," "could,"
"strive," "feel" and similar words or phrases. These statements are
based upon current and anticipated economic conditions, nationally
and in the Company’s market (including the macroeconomic and other
challenges and uncertainties resulting from the COVID-19 pandemic,
including on our credit quality, asset and loan growth and broader
business operations), 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, 2021 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, and nothing contained
herein is meant to or should be considered and treated as earnings
guidance of future quarters’ performance projections. All
information is as of the date of this press release. Any
forward-looking statements made by or on behalf of the Company
speak only as to the date they are made. Except to the extent
required by applicable law or regulation, the Company undertakes no
obligation to revise or update publicly any forward-looking
statement for any reason.
__________________________________1 A reconciliation between
this non-GAAP financial measure and the nearest GAAP measure is
provided in the tables that accompany this document.2 A
reconciliation between this non-GAAP financial measure and the
nearest GAAP measure is provided in the table under the subsection,
"Total Loans."3 A reconciliation between this non-GAAP financial
measure and the nearest GAAP measure is provided in the table
below. An explanation of the reconciliations and the reasons why
the Company believes this non-GAAP financial measure to be
important for investors is included with the reconciliation tables
accompanying this document.4 A reconciliation between this non-GAAP
financial measure and the nearest GAAP measure is provided in the
tables that accompany this document.5 A reconciliation between this
non-GAAP financial measure and the nearest GAAP measure is provided
in the tables that accompany this document.6 A reconciliation
between this non-GAAP financial measure and the nearest GAAP
measure is provided in the table below. An explanation of the
reconciliations and the reasons why the Company believes this
non-GAAP financial measure to be important for investors is
included with the reconciliation tables accompanying this
document.7 A reconciliation of non-GAAP financial measures to the
nearest GAAP measure is provided in the tables that accompany this
document.
|
Eagle Bancorp, Inc. |
Consolidated Financial Highlights (Unaudited) |
(Dollars in thousands, except per share data) |
|
|
|
|
|
|
|
Three Months Ended |
|
March 31, |
|
December 31, |
|
March 31, |
|
2022 |
|
2021 |
|
2021 |
Income
Statements: |
|
|
|
|
|
Total interest income |
$ |
88,321 |
|
|
$ |
86,230 |
|
|
$ |
94,194 |
|
Total interest expense |
|
7,869 |
|
|
|
8,044 |
|
|
|
11,543 |
|
Net interest income |
|
80,452 |
|
|
|
78,186 |
|
|
|
82,651 |
|
Provision (reversal) for
credit losses |
|
(2,787 |
) |
|
|
(6,412 |
) |
|
|
(2,350 |
) |
Provision (reversal) for
unfunded commitments |
|
(11 |
) |
|
|
(632 |
) |
|
|
(442 |
) |
Net interest income after
provision for credit losses |
|
83,250 |
|
|
|
85,230 |
|
|
|
85,443 |
|
Noninterest income (before
investment gain) |
|
7,478 |
|
|
|
9,668 |
|
|
|
10,366 |
|
Gain (loss) on sale of
investment securities |
|
(25 |
) |
|
|
906 |
|
|
|
221 |
|
Total noninterest income |
|
7,453 |
|
|
|
10,574 |
|
|
|
10,587 |
|
Total noninterest expense |
|
31,012 |
|
|
|
39,309 |
|
|
|
37,987 |
|
Income before income tax
expense |
|
59,691 |
|
|
|
56,495 |
|
|
|
58,043 |
|
Income tax expense |
|
13,947 |
|
|
|
14,875 |
|
|
|
14,574 |
|
Net income |
$ |
45,744 |
|
|
$ |
41,620 |
|
|
$ |
43,469 |
|
|
|
|
|
|
|
Per Share
Data: |
|
|
|
|
|
Earnings per weighted average
common share, basic |
$ |
1.43 |
|
|
$ |
1.30 |
|
|
$ |
1.36 |
|
Earnings per weighted average
common share, diluted |
$ |
1.42 |
|
|
$ |
1.30 |
|
|
$ |
1.36 |
|
Weighted average common shares
outstanding, basic |
|
32,033,280 |
|
|
|
31,950,320 |
|
|
|
31,869,655 |
|
Weighted average common shares
outstanding, diluted |
|
32,110,099 |
|
|
|
32,030,998 |
|
|
|
31,922,940 |
|
Actual shares outstanding at
period end |
|
32,079,474 |
|
|
|
31,950,092 |
|
|
|
31,960,379 |
|
Book value per common share at
period end |
$ |
39.44 |
|
|
$ |
42.28 |
|
|
$ |
39.45 |
|
Tangible book value per common
share at period end(1) |
$ |
36.19 |
|
|
$ |
38.97 |
|
|
$ |
36.16 |
|
Dividend per common share |
$ |
0.40 |
|
|
$ |
0.40 |
|
|
$ |
0.25 |
|
|
|
|
|
|
|
Performance Ratios
(annualized): |
|
|
|
|
|
Return on average assets |
|
1.46 |
% |
|
|
1.32 |
% |
|
|
1.53 |
% |
Return on average common
equity |
|
13.83 |
% |
|
|
12.30 |
% |
|
|
14.05 |
% |
Return on average tangible
common equity(1) |
|
14.99 |
% |
|
|
13.35 |
% |
|
|
15.33 |
% |
Net interest margin |
|
2.65 |
% |
|
|
2.55 |
% |
|
|
2.98 |
% |
Efficiency
ratio(2) |
|
35.28 |
% |
|
|
44.29 |
% |
|
|
40.74 |
% |
|
|
|
|
|
|
Other
Ratios: |
|
|
|
|
|
Allowance for credit losses to
total loans(3) |
|
1.01 |
% |
|
|
1.06 |
% |
|
|
1.36 |
% |
Allowance for credit losses to
total nonperforming loans |
|
301 |
% |
|
|
257 |
% |
|
|
195 |
% |
Nonperforming loans to total
loans(3) |
|
0.33 |
% |
|
|
0.41 |
% |
|
|
0.69 |
% |
Nonperforming assets to total
assets |
|
0.23 |
% |
|
|
0.26 |
% |
|
|
0.51 |
% |
Net charge-offs (annualized)
to average total loans(3) |
|
0.03 |
% |
|
|
0.07 |
% |
|
|
0.27 |
% |
Average noninterest bearing
deposits to average deposits |
|
36.1 |
% |
|
|
36.3 |
% |
|
|
32.0 |
% |
Yield on
loans(3) |
|
4.35 |
% |
|
|
4.45 |
% |
|
|
4.65 |
% |
Cost of funds |
|
0.26 |
% |
|
|
0.26 |
% |
|
|
0.42 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Eagle Bancorp, Inc. |
Consolidated Financial Highlights (Continued)
(Unaudited) |
(Dollars in thousands) |
|
|
|
|
|
|
|
Three Months Ended |
|
March 31, |
|
December 31, |
|
March 31, |
|
2022 |
|
2021 |
|
2021 |
Capital
Ratios |
|
|
|
|
|
Common equity to total assets |
|
11.28 |
% |
|
|
11.40 |
% |
|
|
11.33 |
% |
Tier 1 capital (to average
assets) |
|
9.82 |
% |
|
|
10.19 |
% |
|
|
10.28 |
% |
Total capital (to risk
weighted assets) |
|
15.72 |
% |
|
|
16.15 |
% |
|
|
17.86 |
% |
Common equity tier 1 capital
(to risk weighted assets) |
|
14.60 |
% |
|
|
15.02 |
% |
|
|
14.42 |
% |
Tangible common equity
ratio(1) |
|
10.45 |
% |
|
|
10.60 |
% |
|
|
10.48 |
% |
|
|
|
|
|
|
Loan Balances - Period
End: |
|
|
|
|
|
Commercial and Industrial |
$ |
1,377,615 |
|
|
$ |
1,354,317 |
|
|
$ |
1,398,155 |
|
PPP loans |
$ |
35,744 |
|
|
$ |
51,105 |
|
|
$ |
565,018 |
|
Commercial real estate -
income producing |
$ |
3,543,795 |
|
|
$ |
3,385,298 |
|
|
$ |
3,430,077 |
|
Commercial real estate - owner
occupied |
$ |
1,104,982 |
|
|
$ |
1,087,776 |
|
|
$ |
1,012,457 |
|
1-4 Family mortgage |
$ |
72,238 |
|
|
$ |
73,966 |
|
|
$ |
71,209 |
|
Construction - commercial and
residential |
$ |
783,101 |
|
|
$ |
896,319 |
|
|
$ |
829,481 |
|
Construction - C&I (owner
occupied) |
$ |
140,282 |
|
|
$ |
159,579 |
|
|
$ |
152,240 |
|
Home equity |
$ |
54,804 |
|
|
$ |
55,811 |
|
|
$ |
67,167 |
|
Other consumer |
$ |
1,246 |
|
|
$ |
1,427 |
|
|
$ |
885 |
|
|
|
|
|
|
|
Average
Balances: |
|
|
|
|
|
Total assets |
$ |
12,700,993 |
|
|
$ |
12,538,596 |
|
|
$ |
11,517,836 |
|
Total earning assets |
$ |
12,326,472 |
|
|
$ |
12,180,872 |
|
|
$ |
11,236,440 |
|
Total loans(3) |
$ |
7,053,701 |
|
|
$ |
6,890,414 |
|
|
$ |
7,726,716 |
|
Total deposits |
$ |
10,874,976 |
|
|
$ |
10,670,205 |
|
|
$ |
9,601,249 |
|
Total borrowings |
$ |
371,987 |
|
|
$ |
402,393 |
|
|
$ |
573,750 |
|
Total shareholders’
equity |
$ |
1,341,626 |
|
|
$ |
1,342,525 |
|
|
$ |
1,254,780 |
|
|
|
|
|
|
|
Asset
Quality: |
|
|
|
|
|
Net charge-offs |
$ |
459 |
|
|
$ |
1,165 |
|
|
$ |
5,284 |
|
Non-performing loans |
$ |
23,750 |
|
|
$ |
29,208 |
|
|
$ |
52,276 |
|
Other real estate owned |
$ |
1,635 |
|
|
$ |
1,635 |
|
|
$ |
4,987 |
|
Non-performing assets |
$ |
25,386 |
|
|
$ |
30,843 |
|
|
$ |
57,262 |
|
(1) A reconciliation of non-GAAP financial
measures to the nearest non-GAAP measure is provided in the tables
that accompany this document.(2) Computed by dividing noninterest
expense by the sum of net interest income and noninterest income.
The efficiency ratio measures a bank’s overhead as a percentage of
its revenue. (3) Excludes loans held for sale.
|
GAAP Reconciliation (unaudited) |
(dollars in thousands, except per share data) |
|
|
|
|
|
|
|
March 31, |
|
December 31, |
|
March 31, |
|
2022 |
|
2021 |
|
2021 |
Common shareholders' equity |
$ |
1,265,274 |
|
|
$ |
1,350,775 |
|
|
$ |
1,260,833 |
|
Less: Intangible assets |
|
(104,241 |
) |
|
|
(105,793 |
) |
|
|
(105,179 |
) |
Tangible common
equity |
$ |
1,161,033 |
|
|
$ |
1,244,982 |
|
|
$ |
1,155,654 |
|
|
|
|
|
|
|
Book value per common
share |
$ |
39.44 |
|
|
$ |
42.28 |
|
|
$ |
39.45 |
|
Less: Intangible book value
per common share |
|
(3.25 |
) |
|
|
(3.31 |
) |
|
|
(3.29 |
) |
Tangible book value
per common share |
$ |
36.19 |
|
|
$ |
38.97 |
|
|
$ |
36.16 |
|
|
|
|
|
|
|
Total assets |
$ |
11,212,943 |
|
|
$ |
11,847,310 |
|
|
$ |
11,127,864 |
|
Less: Intangible assets |
|
(104,241 |
) |
|
|
(105,793 |
) |
|
|
(105,179 |
) |
Tangible
assets |
$ |
11,108,702 |
|
|
$ |
11,741,517 |
|
|
$ |
11,022,685 |
|
|
|
|
|
|
|
Tangible common equity
ratio |
|
10.45 |
% |
|
|
10.60 |
% |
|
|
10.48 |
% |
|
|
|
|
|
|
Allowance for credit
losses |
$ |
71,505 |
|
|
$ |
74,965 |
|
|
$ |
102,070 |
|
|
|
|
|
|
|
Total loans, excluding loans
held for sale |
$ |
7,113,807 |
|
|
$ |
7,065,598 |
|
|
$ |
7,526,689 |
|
Less: PPP loans
(non-GAAP) |
|
(35,744 |
) |
|
|
(51,105 |
) |
|
|
(565,018 |
) |
Total loans excluding
PPP loans (non-GAAP) |
$ |
7,078,063 |
|
|
$ |
7,014,493 |
|
|
$ |
6,961,671 |
|
|
|
|
|
|
|
Allowance for credit
losses: |
|
|
|
|
|
As a % of total loans (GAAP) |
|
1.01 |
% |
|
|
1.06 |
% |
|
|
1.36 |
% |
As a % of total loans excl. PPP loans
(non-GAAP) |
|
1.01 |
% |
|
|
1.07 |
% |
|
|
1.47 |
% |
|
|
|
|
|
|
|
Three Months Ended |
|
March 31, |
|
December 31, |
|
March 31, |
|
2022 |
|
2021 |
|
2021 |
Average common shareholders'
equity |
|
1,341,626 |
|
|
$ |
1,342,525 |
|
|
$ |
1,254,780 |
|
Less: Average intangible
assets |
|
(104,246 |
) |
|
|
(105,565 |
) |
|
|
(105,164 |
) |
Average tangible
common equity |
$ |
1,237,380 |
|
|
$ |
1,236,960 |
|
|
$ |
1,149,616 |
|
|
|
|
|
|
|
Net Income Available to Common
Shareholders |
$ |
45,744 |
|
|
$ |
41,620 |
|
|
$ |
43,469 |
|
Return on Average
Tangible Common Equity(1) |
|
14.99 |
% |
|
|
13.35 |
% |
|
|
15.33 |
% |
|
|
|
|
|
|
Net interest income |
$ |
80,452 |
|
|
$ |
78,186 |
|
|
$ |
82,651 |
|
Noninterest income |
|
7,453 |
|
|
|
10,574 |
|
|
|
10,587 |
|
Operating revenue |
$ |
87,905 |
|
|
$ |
88,760 |
|
|
$ |
93,238 |
|
Noninterest expense |
$ |
31,012 |
|
|
$ |
39,309 |
|
|
$ |
37,987 |
|
Efficiency
ratio |
|
35.3 |
% |
|
|
44.3 |
% |
|
|
40.7 |
% |
|
|
|
|
|
|
Salaries and employee
benefits |
$ |
17,019 |
|
|
$ |
24,608 |
|
|
|
Accrual reduction for former
CEO and Chairman |
|
5,018 |
|
|
|
— |
|
|
|
Adj. Salaries and
employee benefits (non-GAAP) |
$ |
22,037 |
|
|
$ |
24,608 |
|
|
|
Change |
$ |
(2,571 |
) |
|
|
|
|
(1) Periods of less than a year are annualized.
Non-GAAP Reconciliation (unaudited) -
Continued
Tangible common equity to tangible assets (the
"tangible common equity ratio"), tangible book value per common
share, and the return on average tangible common equity 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 the annualized return on average tangible common equity
ratio by dividing net income available to common shareholders by
average tangible common equity which is calculated by excluding the
average balance of intangible assets from the average common
shareholders’ 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 above table provides
reconciliation of these financial measures defined by GAAP with
non-GAAP financial measures.
Pre-provision net revenue is a non-GAAP
financial measure derived from GAAP based amounts. The Company
calculates PPNR by subtracting noninterest expenses from the sum of
net interest income and noninterest income. PPNR to Average Assets
is calculated by dividing the PPNR amount by average assets to
obtain a percentage. The Company considers this information
important to shareholders because it illustrates revenue excluding
the impact of provisions and reversals to the allowance for credit
losses on loans. The table in the "Income Statement" section of
this earnings release provides a reconciliation of PPNR and PPNR to
Average Assets to the nearest GAAP measure.
Total loans excluding PPP loans is a non-GAAP
financial measure derived from GAAP based amounts. The Company
calculates Total loans excluding PPP loans by subtracting the total
amount of outstanding PPP loans from the amount of total loans,
excluding loans held for sale. The Company considers this
information important to shareholders because it allows investors
to see changes in the Company's loan growth without the impact of
the PPP loans, which were loan products specific to relief efforts
in response to the COVID-19 pandemic. Excluding the impact of PPP
loans also allows investors to better compare the Company's loan
growth to historical periods prior to the pandemic. The table in
the "Balance Sheet" section of this earnings release and the table
above provides a reconciliation of total loans excluding PPP loans
to the nearest GAAP measure.
Efficiency ratio is a non-GAAP measure
calculated by dividing GAAP non-interest expense by the sum of GAAP
net interest income and GAAP non-interest (loss) income. Management
believes that reporting the non-GAAP efficiency ratio more closely
measures its effectiveness of controlling operational activities.
The table above shows the calculation of the efficiency ratio from
these GAAP measures.
Adjusted Salaries and Employee Benefits is a
non-GAAP financial measure derived from GAAP based amounts. The
Company calculates Adjusted Salaries and Employee Benefits by
subtracting from total salaries and employee benefits the one-time
accrual reduction of $5.0 million related to share-based
compensation awards and deferred compensation for the Company's
former CEO and Chairman in the first quarter of 2022. The Company
considers this information important to shareholders because the
accrual reduction was a one-time event that occurred during the
first quarter of 2022. The Adjusted Salaries and Employee Benefits
non-GAAP measure provides investors insight into how salaries and
employee benefits changed during the first quarter of 2022
exclusive of the one-time accrual reduction, and allows investors
to better compare the Company's performance against historical
periods. The table above provides a reconciliation of Adjusted
Salaries and Employee Benefits to the nearest GAAP measure.
|
Eagle Bancorp, Inc. |
Consolidated Balance Sheets (Unaudited) |
(Dollars in thousands, except per share data) |
|
March 31, |
|
December 31, |
|
March 31, |
Assets |
2022 |
|
2021 |
|
2021 |
Cash and due from banks |
$ |
12,140 |
|
|
$ |
12,886 |
|
|
$ |
9,112 |
|
Federal funds sold |
|
27,359 |
|
|
|
20,391 |
|
|
|
25,785 |
|
Interest bearing deposits with
banks and other short-term investments |
|
682,883 |
|
|
|
1,680,945 |
|
|
|
1,708,374 |
|
Investment securities
available for sale at fair value (amortized cost of $1,877,129 ,
$2,652,667, and $1,370,927, net of allowance for credit losses of
$18, $620 and $78 as of March 31, 2022, December 31, 2021
and March 31, 2021, respectively) |
|
1,774,816 |
|
|
|
2,623,408 |
|
|
|
1,369,107 |
|
Investment securities held to
maturity (fair value of $1,144,505, $0 and $0, net of allowance for
credit losses of $817, $0 and $0, as of March 31, 2022,
December 31, 2021 and March 31, 2021, respectively) |
|
1,154,216 |
|
|
|
— |
|
|
|
— |
|
Federal Reserve and Federal
Home Loan Bank stock |
|
29,026 |
|
|
|
34,153 |
|
|
|
33,978 |
|
Loans held for sale |
|
25,504 |
|
|
|
47,218 |
|
|
|
142,196 |
|
Loans |
|
7,113,807 |
|
|
|
7,065,598 |
|
|
|
7,526,689 |
|
Less allowance for credit
losses |
|
(71,505 |
) |
|
|
(74,965 |
) |
|
|
(102,070 |
) |
Loans, net |
|
7,042,302 |
|
|
|
6,990,633 |
|
|
|
7,424,619 |
|
Premises and equipment,
net |
|
14,014 |
|
|
|
14,557 |
|
|
|
15,045 |
|
Operating lease right-of-use
assets |
|
28,969 |
|
|
|
30,555 |
|
|
|
30,707 |
|
Deferred income taxes |
|
66,807 |
|
|
|
43,174 |
|
|
|
44,623 |
|
Bank owned life insurance |
|
109,415 |
|
|
|
108,789 |
|
|
|
77,119 |
|
Intangible assets, net |
|
104,241 |
|
|
|
105,793 |
|
|
|
105,179 |
|
Other real estate owned |
|
1,635 |
|
|
|
1,635 |
|
|
|
4,987 |
|
Other assets |
|
139,616 |
|
|
|
133,173 |
|
|
|
137,033 |
|
Total
Assets |
$ |
11,212,943 |
|
|
$ |
11,847,310 |
|
|
$ |
11,127,864 |
|
Liabilities and
Shareholders' Equity |
|
|
|
|
|
Deposits: |
|
|
|
|
|
Noninterest bearing
demand |
$ |
2,951,594 |
|
|
$ |
3,277,956 |
|
|
$ |
2,594,334 |
|
Interest bearing
transaction |
|
888,598 |
|
|
|
777,255 |
|
|
|
862,709 |
|
Savings and money market |
|
5,047,548 |
|
|
|
5,197,247 |
|
|
|
4,875,840 |
|
Time deposits |
|
698,519 |
|
|
|
729,082 |
|
|
|
865,961 |
|
Total deposits |
|
9,586,259 |
|
|
|
9,981,540 |
|
|
|
9,198,844 |
|
Customer repurchase
agreements |
|
28,293 |
|
|
|
23,918 |
|
|
|
20,061 |
|
Other short-term
borrowings |
|
150,000 |
|
|
|
300,000 |
|
|
|
300,000 |
|
Long-term borrowings |
|
69,701 |
|
|
|
69,670 |
|
|
|
218,175 |
|
Operating lease
liabilities |
|
33,935 |
|
|
|
35,501 |
|
|
|
33,338 |
|
Reserve for unfunded
commitments |
|
4,369 |
|
|
|
4,379 |
|
|
|
5,056 |
|
Other liabilities |
|
75,112 |
|
|
|
81,527 |
|
|
|
91,557 |
|
Total
liabilities |
|
9,947,669 |
|
|
|
10,496,535 |
|
|
|
9,867,031 |
|
Shareholders'
Equity |
|
|
|
|
|
Common stock, par value $.01
per share; shares authorized 100,000,000, shares issued and
outstanding 32,079,474, 31,950,092, and 31,960,379
respectively |
|
318 |
|
|
|
316 |
|
|
|
316 |
|
Additional paid in
capital |
|
437,820 |
|
|
|
434,640 |
|
|
|
428,917 |
|
Retained earnings |
|
963,140 |
|
|
|
930,061 |
|
|
|
833,598 |
|
Accumulated other
comprehensive loss |
|
(136,004 |
) |
|
|
(14,242 |
) |
|
|
(1,998 |
) |
Total Shareholders'
Equity |
|
1,265,274 |
|
|
|
1,350,775 |
|
|
|
1,260,833 |
|
Total Liabilities and
Shareholders' Equity |
$ |
11,212,943 |
|
|
$ |
11,847,310 |
|
|
$ |
11,127,864 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Eagle Bancorp, Inc. |
Consolidated Statements of Income (Unaudited) |
(Dollars in thousands, except per share data) |
|
Three Months Ended |
|
March 31, |
|
December 31, |
|
March 31, |
|
2022 |
|
2021 |
|
2021 |
Interest
Income |
|
|
|
|
|
Interest and fees on loans |
$ |
75,830 |
|
|
$ |
77,625 |
|
|
$ |
89,238 |
|
Interest and dividends on
investment securities |
|
11,430 |
|
|
|
7,327 |
|
|
|
4,395 |
|
Interest on balances with
other banks and short-term investments |
|
1,057 |
|
|
|
1,272 |
|
|
|
553 |
|
Interest on federal funds
sold |
|
4 |
|
|
|
6 |
|
|
|
8 |
|
Total interest income |
|
88,321 |
|
|
|
86,230 |
|
|
|
94,194 |
|
|
|
|
|
|
|
Interest
Expense |
|
|
|
|
|
Interest on deposits |
|
6,359 |
|
|
|
6,484 |
|
|
|
7,899 |
|
Interest on customer
repurchase agreements |
|
13 |
|
|
|
17 |
|
|
|
11 |
|
Interest on other short-term
borrowings |
|
460 |
|
|
|
506 |
|
|
|
495 |
|
Interest on long-term
borrowings |
|
1,037 |
|
|
|
1,037 |
|
|
|
3,138 |
|
Total interest expense |
|
7,869 |
|
|
|
8,044 |
|
|
|
11,543 |
|
Net Interest
Income |
|
80,452 |
|
|
|
78,186 |
|
|
|
82,651 |
|
Provision / (Reversal)
for Credit Losses |
|
(2,787 |
) |
|
|
(6,412 |
) |
|
|
(2,350 |
) |
Provision / (Reversal)
for Unfunded Commitments |
|
(11 |
) |
|
|
(632 |
) |
|
|
(442 |
) |
Net Interest Income
After Provision For Credit Losses |
|
83,250 |
|
|
|
85,230 |
|
|
|
85,443 |
|
|
|
|
|
|
|
Noninterest
Income |
|
|
|
|
|
Service charges on
deposits |
|
1,286 |
|
|
|
1,259 |
|
|
|
977 |
|
Gain on sale of loans |
|
1,492 |
|
|
|
2,057 |
|
|
|
5,178 |
|
Gain (loss) on sale of
investment securities |
|
(25 |
) |
|
|
906 |
|
|
|
221 |
|
Increase in the cash surrender
value of bank owned life insurance |
|
627 |
|
|
|
630 |
|
|
|
389 |
|
Other income |
|
4,073 |
|
|
|
5,722 |
|
|
|
3,822 |
|
Total noninterest income |
|
7,453 |
|
|
|
10,574 |
|
|
|
10,587 |
|
|
|
|
|
|
|
Noninterest
Expense |
|
|
|
|
|
Salaries and employee
benefits |
|
17,019 |
|
|
|
24,608 |
|
|
|
21,769 |
|
Premises and equipment
expenses |
|
3,128 |
|
|
|
3,755 |
|
|
|
3,618 |
|
Marketing and advertising |
|
1,064 |
|
|
|
1,286 |
|
|
|
886 |
|
Data processing |
|
2,880 |
|
|
|
3,258 |
|
|
|
2,814 |
|
Legal, accounting and
professional fees |
|
1,561 |
|
|
|
2,987 |
|
|
|
2,999 |
|
FDIC insurance |
|
1,058 |
|
|
|
311 |
|
|
|
2,428 |
|
Other expenses |
|
4,302 |
|
|
|
3,104 |
|
|
|
3,473 |
|
Total noninterest expense |
|
31,012 |
|
|
|
39,309 |
|
|
|
37,987 |
|
Income Before Income
Tax Expense |
|
59,691 |
|
|
|
56,495 |
|
|
|
58,043 |
|
Income Tax
Expense |
|
13,947 |
|
|
|
14,875 |
|
|
|
14,574 |
|
Net
Income |
$ |
45,744 |
|
|
$ |
41,620 |
|
|
$ |
43,469 |
|
|
|
|
|
|
|
Earnings Per Common
Share |
|
|
|
|
|
Basic |
$ |
1.43 |
|
|
$ |
1.30 |
|
|
$ |
1.36 |
|
Diluted |
$ |
1.42 |
|
|
$ |
1.30 |
|
|
$ |
1.36 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Eagle Bancorp, Inc. |
Consolidated Average Balances, Interest Yields And Rates
(Unaudited) |
(Dollars in thousands) |
|
Three Months Ended March 31, |
|
2022 |
|
2021 |
|
AverageBalance |
|
Interest |
|
AverageYield/Rate |
|
AverageBalance |
|
Interest |
|
AverageYield/Rate |
ASSETS |
|
|
|
|
|
|
|
|
|
|
|
Interest earning assets: |
|
|
|
|
|
|
|
|
|
|
|
Interest bearing deposits with other banks and other short-term
investments |
$ |
2,403,017 |
|
|
$ |
1,057 |
|
|
0.18 |
% |
|
$ |
2,103,679 |
|
|
$ |
553 |
|
|
0.11 |
% |
Loans held for
sale(1) |
|
26,887 |
|
|
|
219 |
|
|
3.26 |
% |
|
|
104,784 |
|
|
|
739 |
|
|
2.82 |
% |
Loans(1)
(2) |
|
7,053,701 |
|
|
|
75,611 |
|
|
4.35 |
% |
|
|
7,726,716 |
|
|
|
88,499 |
|
|
4.65 |
% |
Investment securities
available for sale(2) |
|
2,794,681 |
|
|
|
11,280 |
|
|
1.64 |
% |
|
|
1,268,952 |
|
|
|
4,395 |
|
|
1.40 |
% |
Investment securities held to
maturity(2) |
|
24,011 |
|
|
|
150 |
|
|
2.53 |
% |
|
|
— |
|
|
|
— |
|
|
— |
% |
Federal funds sold |
|
24,176 |
|
|
|
4 |
|
|
0.07 |
% |
|
|
32,309 |
|
|
|
8 |
|
|
0.10 |
% |
Total interest earning
assets |
|
12,326,473 |
|
|
|
88,321 |
|
|
2.91 |
% |
|
|
11,236,440 |
|
|
|
94,194 |
|
|
3.40 |
% |
Total noninterest earning
assets |
|
449,625 |
|
|
|
|
|
|
|
390,775 |
|
|
|
|
|
Less: allowance for credit
losses |
|
75,105 |
|
|
|
|
|
|
|
109,379 |
|
|
|
|
|
Total noninterest earning
assets |
|
374,520 |
|
|
|
|
|
|
|
281,396 |
|
|
|
|
|
TOTAL
ASSETS |
$ |
12,700,993 |
|
|
|
|
|
|
$ |
11,517,836 |
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY |
|
|
|
|
|
|
|
|
|
|
|
Interest bearing
liabilities: |
|
|
|
|
|
|
|
|
|
|
|
Interest bearing
transaction |
$ |
754,833 |
|
|
$ |
322 |
|
|
0.17 |
% |
|
$ |
771,321 |
|
|
$ |
427 |
|
|
0.22 |
% |
Savings and money market |
|
5,476,721 |
|
|
|
3,723 |
|
|
0.28 |
% |
|
|
4,839,348 |
|
|
|
3,970 |
|
|
0.33 |
% |
Time deposits |
|
722,646 |
|
|
|
2,314 |
|
|
1.30 |
% |
|
|
921,208 |
|
|
|
3,503 |
|
|
1.54 |
% |
Total interest bearing
deposits |
|
6,954,200 |
|
|
|
6,359 |
|
|
0.37 |
% |
|
|
6,531,877 |
|
|
|
7,900 |
|
|
0.49 |
% |
Customer repurchase
agreements |
|
25,628 |
|
|
|
13 |
|
|
0.21 |
% |
|
|
20,615 |
|
|
|
11 |
|
|
0.22 |
% |
Other short-term
borrowings |
|
276,669 |
|
|
|
460 |
|
|
0.67 |
% |
|
|
300,003 |
|
|
|
495 |
|
|
0.66 |
% |
Long-term borrowings |
|
69,690 |
|
|
|
1,037 |
|
|
5.95 |
% |
|
|
253,132 |
|
|
|
3,137 |
|
|
4.96 |
% |
Total interest bearing
liabilities |
|
7,326,187 |
|
|
|
7,869 |
|
|
0.44 |
% |
|
|
7,105,627 |
|
|
|
11,543 |
|
|
0.66 |
% |
Noninterest bearing
liabilities: |
|
|
|
|
|
|
|
|
|
|
|
Noninterest bearing
demand |
|
3,920,776 |
|
|
|
|
|
|
|
3,069,372 |
|
|
|
|
|
Other liabilities |
|
112,404 |
|
|
|
|
|
|
|
88,057 |
|
|
|
|
|
Total noninterest bearing
liabilities |
|
4,033,180 |
|
|
|
|
|
|
|
3,157,429 |
|
|
|
|
|
Shareholders’ equity |
|
1,341,626 |
|
|
|
|
|
|
|
1,254,780 |
|
|
|
|
|
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY |
$ |
12,700,993 |
|
|
|
|
|
|
$ |
11,517,836 |
|
|
|
|
|
Net interest income |
|
|
$ |
80,452 |
|
|
|
|
|
|
$ |
82,651 |
|
|
|
Net interest spread |
|
|
|
|
2.47 |
% |
|
|
|
|
|
2.74 |
% |
Net interest margin |
|
|
|
|
2.65 |
% |
|
|
|
|
|
2.98 |
% |
Cost of funds |
|
|
|
|
0.26 |
% |
|
|
|
|
|
0.42 |
% |
(1) Loans placed on nonaccrual status are included in average
balances. Net loan fees and late charges included in interest
income on loans totaled $3.7 million and $7.8 million for
the three months ended March 31, 2022 and March 31, 2021,
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 |
|
March 31, |
|
December 31, |
|
September 30, |
|
June 30, |
|
March 31, |
|
December 31, |
|
September 30, |
|
June 30, |
Income
Statements: |
2022 |
|
2021 |
|
2021 |
|
2021 |
|
2021 |
|
2020 |
|
2020 |
|
2020 |
Total interest income |
$ |
88,321 |
|
|
$ |
86,230 |
|
|
$ |
89,152 |
|
|
$ |
94,920 |
|
|
$ |
94,194 |
|
|
$ |
94,680 |
|
|
$ |
93,833 |
|
|
$ |
97,672 |
|
Total interest expense |
|
7,869 |
|
|
|
8,044 |
|
|
|
10,107 |
|
|
|
10,288 |
|
|
|
11,543 |
|
|
|
13,262 |
|
|
|
14,795 |
|
|
|
16,309 |
|
Net interest income |
|
80,452 |
|
|
|
78,186 |
|
|
|
79,045 |
|
|
|
84,632 |
|
|
|
82,651 |
|
|
|
81,418 |
|
|
|
79,038 |
|
|
|
81,363 |
|
Provision (reversal) for
credit losses |
|
(2,787 |
) |
|
|
(6,412 |
) |
|
|
(8,203 |
) |
|
|
(3,856 |
) |
|
|
(2,350 |
) |
|
|
4,917 |
|
|
|
6,607 |
|
|
|
19,737 |
|
Provision (reversal) for
unfunded commitments |
|
(11 |
) |
|
|
(632 |
) |
|
|
716 |
|
|
|
(761 |
) |
|
|
(442 |
) |
|
|
406 |
|
|
|
(2,078 |
) |
|
|
940 |
|
Net interest income after
provision for credit losses |
|
83,250 |
|
|
|
85,230 |
|
|
|
86,532 |
|
|
|
89,249 |
|
|
|
85,443 |
|
|
|
76,095 |
|
|
|
74,509 |
|
|
|
60,686 |
|
Noninterest income (before
investment gain (loss)) |
|
7,478 |
|
|
|
9,668 |
|
|
|
6,780 |
|
|
|
10,607 |
|
|
|
10,366 |
|
|
|
9,722 |
|
|
|
17,729 |
|
|
|
11,782 |
|
Gain on sale of investment
securities |
|
(25 |
) |
|
|
906 |
|
|
|
1,519 |
|
|
|
318 |
|
|
|
221 |
|
|
|
165 |
|
|
|
115 |
|
|
|
713 |
|
Total noninterest income |
|
7,453 |
|
|
|
10,574 |
|
|
|
8,299 |
|
|
|
10,925 |
|
|
|
10,587 |
|
|
|
9,887 |
|
|
|
17,844 |
|
|
|
12,495 |
|
Salaries and employee
benefits |
|
17,019 |
|
|
|
24,608 |
|
|
|
22,145 |
|
|
|
19,876 |
|
|
|
21,769 |
|
|
|
20,151 |
|
|
|
19,388 |
|
|
|
17,104 |
|
Premises and equipment |
|
3,128 |
|
|
|
3,755 |
|
|
|
3,859 |
|
|
|
3,644 |
|
|
|
3,618 |
|
|
|
3,301 |
|
|
|
5,125 |
|
|
|
3,468 |
|
Marketing and advertising |
|
1,064 |
|
|
|
1,286 |
|
|
|
1,013 |
|
|
|
980 |
|
|
|
886 |
|
|
|
1,161 |
|
|
|
928 |
|
|
|
1,111 |
|
Other expenses |
|
9,801 |
|
|
|
9,660 |
|
|
|
9,358 |
|
|
|
10,994 |
|
|
|
11,714 |
|
|
|
10,396 |
|
|
|
11,474 |
|
|
|
13,209 |
|
Total noninterest expense |
|
31,012 |
|
|
|
39,309 |
|
|
|
36,375 |
|
|
|
35,494 |
|
|
|
37,987 |
|
|
|
35,009 |
|
|
|
36,915 |
|
|
|
34,892 |
|
Income before income tax
expense |
|
59,691 |
|
|
|
56,495 |
|
|
|
58,456 |
|
|
|
64,680 |
|
|
|
58,043 |
|
|
|
50,973 |
|
|
|
55,438 |
|
|
|
38,289 |
|
Income tax expense |
|
13,947 |
|
|
|
14,875 |
|
|
|
14,847 |
|
|
|
16,687 |
|
|
|
14,574 |
|
|
|
12,081 |
|
|
|
14,092 |
|
|
|
9,433 |
|
Net income |
$ |
45,744 |
|
|
$ |
41,620 |
|
|
$ |
43,609 |
|
|
$ |
47,993 |
|
|
$ |
43,469 |
|
|
$ |
38,892 |
|
|
$ |
41,346 |
|
|
$ |
28,856 |
|
Per Share
Data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per weighted average
common share, basic |
$ |
1.43 |
|
|
$ |
1.30 |
|
|
$ |
1.36 |
|
|
$ |
1.50 |
|
|
$ |
1.36 |
|
|
$ |
1.21 |
|
|
$ |
1.28 |
|
|
$ |
0.90 |
|
Earnings per weighted average
common share, diluted |
$ |
1.42 |
|
|
$ |
1.30 |
|
|
$ |
1.36 |
|
|
$ |
1.50 |
|
|
$ |
1.36 |
|
|
$ |
1.21 |
|
|
$ |
1.28 |
|
|
$ |
0.90 |
|
Weighted average common shares
outstanding, basic |
|
32,033,280 |
|
|
|
31,950,320 |
|
|
|
31,959,357 |
|
|
|
31,962,819 |
|
|
|
31,869,655 |
|
|
|
32,037,099 |
|
|
|
32,229,322 |
|
|
|
32,224,695 |
|
Weighted average common shares
outstanding, diluted |
|
32,110,099 |
|
|
|
32,030,998 |
|
|
|
32,030,527 |
|
|
|
32,025,110 |
|
|
|
31,922,940 |
|
|
|
32,075,175 |
|
|
|
32,250,885 |
|
|
|
32,240,825 |
|
Actual shares outstanding at
period end |
|
32,079,474 |
|
|
|
31,950,092 |
|
|
|
31,947,458 |
|
|
|
31,961,573 |
|
|
|
31,960,379 |
|
|
|
31,779,663 |
|
|
|
32,228,636 |
|
|
|
32,224,756 |
|
Book value per common share at
period end |
$ |
39.44 |
|
|
$ |
42.28 |
|
|
$ |
41.68 |
|
|
$ |
40.87 |
|
|
$ |
39.45 |
|
|
$ |
39.05 |
|
|
$ |
37.96 |
|
|
$ |
36.86 |
|
Tangible book value per common
share at period end(1) |
$ |
36.19 |
|
|
$ |
38.97 |
|
|
$ |
38.39 |
|
|
$ |
37.58 |
|
|
$ |
36.16 |
|
|
$ |
35.74 |
|
|
$ |
34.70 |
|
|
$ |
33.62 |
|
Dividend per common share |
$ |
0.40 |
|
|
$ |
0.40 |
|
|
$ |
0.40 |
|
|
$ |
0.35 |
|
|
$ |
0.25 |
|
|
$ |
0.22 |
|
|
$ |
0.22 |
|
|
$ |
0.22 |
|
Performance Ratios
(annualized): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average assets |
|
1.46 |
% |
|
|
1.32 |
% |
|
|
1.46 |
% |
|
|
1.68 |
% |
|
|
1.53 |
% |
|
|
1.39 |
% |
|
|
1.57 |
% |
|
|
1.12 |
% |
Return on average common
equity |
|
13.83 |
% |
|
|
12.30 |
% |
|
|
13.00 |
% |
|
|
14.92 |
% |
|
|
14.05 |
% |
|
|
12.53 |
% |
|
|
14.46 |
% |
|
|
9.84 |
% |
Return on average tangible
common equity(1) |
|
14.99 |
% |
|
|
13.35 |
% |
|
|
14.11 |
% |
|
|
16.25 |
% |
|
|
15.33 |
% |
|
|
13.69 |
% |
|
|
15.93 |
% |
|
|
10.80 |
% |
Net interest margin |
|
2.65 |
% |
|
|
2.55 |
% |
|
|
2.73 |
% |
|
|
3.04 |
% |
|
|
2.98 |
% |
|
|
2.98 |
% |
|
|
3.08 |
% |
|
|
3.26 |
% |
Efficiency
ratio(2) |
|
35.3 |
% |
|
|
44.3 |
% |
|
|
41.7 |
% |
|
|
37.1 |
% |
|
|
40.7 |
% |
|
|
38.3 |
% |
|
|
38.1 |
% |
|
|
37.2 |
% |
Other
Ratios: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for credit losses to
total loans(3) |
|
1.01 |
% |
|
|
1.06 |
% |
|
|
1.21 |
% |
|
|
1.28 |
% |
|
|
1.36 |
% |
|
|
1.41 |
% |
|
|
1.40 |
% |
|
|
1.36 |
% |
Allowance for credit losses to
total nonperforming loans |
|
301 |
% |
|
|
257 |
% |
|
|
265 |
% |
|
|
187 |
% |
|
|
195 |
% |
|
|
180 |
% |
|
|
190 |
% |
|
|
185 |
% |
Nonperforming loans to total
loans(3) |
|
0.33 |
% |
|
|
0.41 |
% |
|
|
0.46 |
% |
|
|
0.68 |
% |
|
|
0.69 |
% |
|
|
0.79 |
% |
|
|
0.74 |
% |
|
|
0.74 |
% |
Nonperforming assets to total
assets |
|
0.23 |
% |
|
|
0.26 |
% |
|
|
0.31 |
% |
|
|
0.50 |
% |
|
|
0.51 |
% |
|
|
0.59 |
% |
|
|
0.62 |
% |
|
|
0.69 |
% |
Net charge-offs (annualized)
to average total loans(3) |
|
0.03 |
% |
|
|
0.07 |
% |
|
|
0.08 |
% |
|
|
0.30 |
% |
|
|
0.27 |
% |
|
|
0.28 |
% |
|
|
0.26 |
% |
|
|
0.36 |
% |
Tier 1 capital (to average
assets) |
|
9.82 |
% |
|
|
10.19 |
% |
|
|
10.58 |
% |
|
|
10.65 |
% |
|
|
10.28 |
% |
|
|
10.31 |
% |
|
|
10.82 |
% |
|
|
10.63 |
% |
Total capital (to risk
weighted assets) |
|
15.72 |
% |
|
|
16.15 |
% |
|
|
16.59 |
% |
|
|
17.98 |
% |
|
|
17.86 |
% |
|
|
17.04 |
% |
|
|
16.72 |
% |
|
|
16.26 |
% |
Common equity tier 1 capital
(to risk weighted assets) |
|
14.60 |
% |
|
|
15.02 |
% |
|
|
15.33 |
% |
|
|
14.67 |
% |
|
|
14.42 |
% |
|
|
13.49 |
% |
|
|
13.19 |
% |
|
|
12.80 |
% |
Tangible common equity
ratio(1) |
|
10.45 |
% |
|
|
10.60 |
% |
|
|
10.68 |
% |
|
|
11.07 |
% |
|
|
10.48 |
% |
|
|
10.31 |
% |
|
|
11.18 |
% |
|
|
11.17 |
% |
Average Balances (in
thousands): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets |
$ |
12,700,993 |
|
|
$ |
12,538,596 |
|
|
$ |
11,826,326 |
|
|
$ |
11,453,080 |
|
|
$ |
11,517,836 |
|
|
$ |
11,141,826 |
|
|
$ |
10,473,595 |
|
|
$ |
10,326,709 |
|
Total earning assets |
$ |
12,326,472 |
|
|
$ |
12,180,872 |
|
|
$ |
11,486,280 |
|
|
$ |
11,152,933 |
|
|
$ |
11,236,440 |
|
|
$ |
10,872,259 |
|
|
$ |
10,205,939 |
|
|
$ |
10,056,500 |
|
Total
loans(3) |
$ |
7,053,701 |
|
|
$ |
6,890,414 |
|
|
$ |
7,055,621 |
|
|
$ |
7,382,238 |
|
|
$ |
7,726,716 |
|
|
$ |
7,896,324 |
|
|
$ |
7,910,260 |
|
|
$ |
8,015,751 |
|
Total deposits |
$ |
10,874,976 |
|
|
$ |
10,670,206 |
|
|
$ |
9,948,114 |
|
|
$ |
9,530,909 |
|
|
$ |
9,601,249 |
|
|
$ |
9,227,733 |
|
|
$ |
8,591,912 |
|
|
$ |
8,482,718 |
|
Total borrowings |
$ |
371,987 |
|
|
$ |
402,393 |
|
|
$ |
448,697 |
|
|
$ |
536,926 |
|
|
$ |
573,750 |
|
|
$ |
596,307 |
|
|
$ |
596,472 |
|
|
$ |
598,463 |
|
Total shareholders’
equity |
$ |
1,341,626 |
|
|
$ |
1,342,525 |
|
|
$ |
1,331,022 |
|
|
$ |
1,290,029 |
|
|
$ |
1,254,780 |
|
|
$ |
1,235,174 |
|
|
$ |
1,211,145 |
|
|
$ |
1,179,452 |
|
(1) See footnote (1) for Consolidated Financial
Highlights.(2) Computed by dividing noninterest expense by the sum
of net interest income and noninterest income.(3) Excludes loans
held for sale.
EAGLE BANCORP,
INCCONTACT:David G.
Danielson240.552.9534
Eagle Bancorp (NASDAQ:EGBN)
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