In a release issued earlier today by Eagle Bancorp, Inc.
(NASDAQ:EGBN), we are advised by the company that "$40.4 Million"
in the headline should have been "$40.3 Million." The
corrected release follows:
Eagle Bancorp, Inc. Announces Record Earnings With Net Income of
$40.3 Million for the Fourth Quarter and $152.3 Million for the
Full Year of 2018
Eagle Bancorp, Inc. (the “Company”)
(NASDAQ:EGBN), the parent company of EagleBank, today announced
quarterly net income of $40.3 million for the three months ended
December 31, 2018, a 159% increase on a net income basis (34%
increase on an operating basis) over the $15.6 million net income
($30.2 million on an operating basis) for the three months ended
December 31, 2017.
For the year ended December 31, 2018, the
Company’s net income was $152.3 million, a 52% increase (33%
increase on an operating basis) over the $100.2 million ($114.8
million on an operating basis) for the year ended December 31,
2017.
In 2017, for the fourth quarter and full year,
operating earnings exclude one time charges of $14.6 million ($0.42
per diluted common share), required as a result of the Tax Cuts and
Jobs Act of 2017 (“Tax Reform”) enacted in late December 2017.
Where appropriate, parenthetical references refer to operating
earnings, which the Company believes are more relevant comparisons
to current and historical period results of operations.
Reconciliations of 2017 GAAP earnings to operating earnings are
contained in the tables that follow.
Net income for the three months ended December
31, 2018 was $1.17 per basic and diluted common share as compared
to $0.46 per basic common share and $0.45 per diluted common share
($0.88 per basic and diluted common share on an operating basis),
for the same period in 2017, a 33% increase in diluted earnings per
share (on an operating basis) for the fourth quarter of 2018 over
2017.
For the full year 2018, net income was $4.44 per
basic common share and $4.42 per diluted common share as compared
to $2.94 per basic common share and $2.92 per diluted common share
($3.36 per basic common share and $3.35 per diluted common share on
an operating basis) for 2017, a 32% increase in diluted earnings
per share (on an operating basis) for the full year of 2018 over
2017.
“We are very pleased to report a continued trend
of balanced and consistently strong financial performance,” noted
Ronald D. Paul, Chairman and Chief Executive Officer of Eagle
Bancorp, Inc. “Our net income in the fourth quarter represents ten
years of quarterly increases in operating earnings dating back to
the first quarter of 2009, a record of consistency rarely seen in
public company financial performance. Our strong financial
performance has resulted from a combination of steady average
balance sheet growth, revenue growth, and very favorable operating
leverage. Additionally, we have maintained solid asset quality over
an extended period through disciplined risk management practices.
These factors have combined to achieve a return on average assets
of 1.90% for the fourth quarter of 2018, a return on average common
equity of 14.82%, and a return on average tangible common equity
ratio of 16.43%, while sustaining very strong capital levels.”
Mr. Paul added, “For the fourth quarter of 2018,
we experienced very strong average deposit growth which was
invested at lower market interest rates, resulting in above average
liquidity. This liquidity, which was invested at short term market
rates, contributed to a decline in the net interest margin to 3.97%
for the fourth quarter from 4.14% in the third quarter of 2018.
Average deposit balances increased 7.2% for the fourth quarter 2018
over the third quarter 2018. We attribute the significant average
increase to seasonality, market conditions and our well developed
customer relationships leading to success in gathering core
deposits. Steady growth in loan balances continued, increasing 3.8%
on average for the fourth quarter of 2018 over the third quarter of
2018. Period end to period end, loan balances increased 2.1%, for
the fourth quarter 2018 while deposit balances increased a very
strong 9.4%. The higher liquidity position in the fourth quarter
resulted in an average loan to deposit ratio of 99% as compared to
102% for both the third quarter of 2018 and the fourth quarter of
2017.” Mr. Paul added, “We consider average balances more
indicative of our growth performance, since maintaining favorable
averages translates to improved revenue. Growth in our average
balance sheet combined with a continuing favorable net interest
margin contributed to revenue growth increases of 3.5% in the
fourth quarter 2018 over the fourth quarter of 2017 and by 1.0%
over the third quarter of 2018. Also contributing to the decreased
net interest margin for the fourth quarter was a 9 basis point
decline in the yield on the loan portfolio to 5.60% versus 5.69%
for the third quarter, as the quarter saw substantial payoffs of
higher yielding loans. Fourth quarter loan payoffs were the highest
of any quarter in 2018, and were due substantially to above average
sales of condominium units financed by the bank. These are projects
that are performing well resulting in more rapid pay-downs of
construction loans. Notwithstanding the payoff of higher yielding
loans, the Company’s loan portfolio yield continues to benefit from
both higher general market interest rates and disciplined loan
pricing and we believe that the yield on our loan portfolio
continues to be superior to peer bank returns. Importantly, our
credit quality remained very strong in the fourth quarter as the
level of nonperforming assets was just 0.21% of total assets at
December 31, 2018 and the annualized level of net credit losses to
average loans was 0.05%.” Mr. Paul added, “The Company’s operating
efficiency, another key driver of our financial performance,
remained favorable.” For the fourth quarter in 2018, the efficiency
ratio was 36.1%, as compared to 36.4% in the third quarter of 2018,
and was 37.3% for the full year 2018.
For the full year 2018 over 2017, average
deposit growth was 11%, average loan growth was 12%, revenue growth
was 8.4% and noninterest expense growth was 6.9%. The net interest
margin for 2018 was 4.10% as compared to 4.15% for the year 2017,
well above peer banking companies. Period end to period end, loan
growth in 2018 was 9% and deposit growth was 19%.
Comparing asset yields and cost of funds for the
full year of 2018 to the full year 2017, loan yields were up 37
basis points (from 5.17% to 5.54%), yields on earning assets were
up 36 basis points (from 4.73% to 5.09%) and the composite cost of
funds was up 41 basis points (from 0.58% to 0.99%). Importantly,
our funding costs, while up in 2018 over 2017, continue to benefit
from the substantial level of average noninterest deposits as a
percentage of average total deposits of 33.4% in 2018.
Additionally, the significant portion of the loan portfolio being
variable and adjustable rate in a rising rate environment tends to
mitigate the effects of higher cost of funds. Mr. Paul added,
“Given the more competitive interest rate environment in 2018 for
both loan rates and funding costs, coupled with a flatter yield
curve and the Federal Open Market Committee’s (“FOMC”) four short
term rate increases, the Company believes management of the net
interest margin has been disciplined and
effective.”
Pre-tax, pre-provision income was $56.1 million
for the fourth quarter of 2018 a 2% increase over $55.1 million for
the fourth quarter of 2017 and a 1% increase over the $55.3 million
for the third quarter of 2018. Pre-tax, pre-provision income was
$212.9 million for the full year 2018 as compared to $194.7 million
for the full year 2017, a 9% increase.
The annualized return on average assets (“ROAA”)
was 1.90% for the fourth quarter of 2018 as compared to 0.82%
(1.60% on an operating basis) for the fourth quarter of 2017 and
was 1.91% for the year 2018 as compared to 1.41% (1.62% on an
operating basis) for the twelve months ended December 31, 2017. The
annualized return on average tangible common equity (“ROATCE”) was
16.43% for the fourth quarter of 2018 as compared to 7.31% (14.17%
on an operating basis) for the fourth quarter of 2017 and was
16.63% for the full year 2018 as compared to 12.54% (14.37% on an
operating basis) for the year ended December 31, 2017.
Asset quality measures remained solid in the
fourth quarter of 2018. At December 31, 2018, the Company’s
nonperforming loans amounted to $16.3 million (0.23% of total
loans) as compared to $15.1 million (0.22% of total loans) at
September 30, 2018 and $13.2 million (0.21% of total loans) at
December 31, 2017. Nonperforming assets amounted to $17.7 million
(0.21% of total assets) at December 31, 2018 compared to $16.5
million (0.20% of total assets) at September 30, 2018 and $14.6
million (0.20% of total assets) at December 31, 2017. For the year
of 2018, the Company recorded net charge-offs of $3.5 million
(0.05% of average loans), as compared to net charge-offs of $3.3
million (0.06% of average loans) for the year of 2017.
Management continues to remain attentive to any
signs of deterioration in borrowers’ financial conditions and is
proactive in taking the appropriate steps to mitigate risk.
Furthermore, the Company is diligent in placing loans on nonaccrual
status and believes, based on its loan portfolio risk analysis,
that its December 31, 2018 allowance for credit losses, at 1.00% of
total loans (excluding loans held for sale), is adequate to absorb
potential credit losses within the loan portfolio as of the end of
the year. The allowance for credit losses was 1.00% of total loans
at December 31, 2018 and 1.01% at December 31, 2017. The allowance
for credit losses represented 430% of nonperforming loans at
December 31, 2018.
Total assets at December 31, 2018 were $8.39
billion, a 4% increase as compared to $8.06 billion at September
30, 2018, and a 12% increase as compared to $7.48 billion at
December 31, 2017. Total loans (excluding loans held for sale) were
$6.99 billion at December 31, 2018, a 2% increase as compared to
$6.84 billion at September 30, 2018, and a 9% increase as compared
to $6.41 billion at December 31, 2017. Loans held for sale amounted
to $19.3 million at December 31, 2018 as compared to $18.7 million
at September 30, 2018, a 3% increase, and $25.1 million at December
31, 2017, a 23% decrease. The investment portfolio totaled $784.1
million at December 31, 2018, a 9% increase from $722.7 million at
September 30, 2018. As compared to December 31, 2017, the
investment portfolio at December 31, 2018 increased by $194.9
million or 33%.
Total deposits at December 31, 2018 were $6.97
billion, compared to deposits of $6.37 billion at September 30,
2018, a 9% increase, and deposits of $5.85 billion at December 31,
2017, a 19% increase. Total borrowed funds (excluding customer
repurchase agreements) were $217.3 million at December 31, 2018,
$542.2 million at September 30, 2018 and $541.9 million at December
31, 2017, a $324.9 million decrease in the fourth quarter and a
$324.6 million decrease during 2018.
Total shareholders’ equity at December 31, 2018
increased 4%, to $1.11 billion, compared to $1.06 billion at
September 30, 2018, and increased 17%, from $950.4 million at
December 31, 2017. Growth in retained earnings has enhanced the
Company’s capital position well in excess of regulatory
requirements for well capitalized status. The total risk based
capital ratio was 16.07% at December 31, 2018, as compared to
15.74% at September 30, 2018, and 15.02% at December 31, 2017. In
addition, the tangible common equity ratio was 12.11% at December
31, 2018, compared to 12.01% at September 30, 2018 and 11.44% at
December 31, 2017.
While the Company’s earnings beginning in 2018
benefitted from the lower corporate federal income tax statutory
rates resulting from Tax Reform, companies were required to revalue
their deferred tax positions as of December 31, 2017 at these lower
federal income tax rates. Since the new law was enacted on December
22, 2017, this revaluation was accounted for in the fourth quarter
of 2017 through adjustments to income tax expense on the
Consolidated Statements of Income. This adjustment increased income
tax expense for the fourth quarter of 2017 and full year 2017 by
$14.6 million ($0.43 per basic and $0.42 per diluted share). As a
result of reduced rates, the Company incurred substantially reduced
income tax expense in 2018.
Analysis of the three months ended
December 31, 2018 compared to December 31, 2017
Net interest income increased 8% for the three
months ended December 31, 2018 over the same period in 2017 ($81.7
million versus $75.4 million), resulting from growth in average
earning assets of 13% partially offset by a 16 basis point
reduction of the net interest margin. The net interest margin was
3.97% for the three months ended December 31, 2018, as compared to
4.13% for the three months ended December 31, 2017. The Company
believes its net interest margin remains favorable compared to peer
banking companies and that its disciplined approach to managing the
loan portfolio to a 5.60% yield for the fourth quarter of 2018 has
been a significant factor in its overall profitability.
The provision for credit losses was $2.6 million
for the three months ended December 31, 2018 as compared to $4.1
million for the three months ended December 31, 2017. The lower
provisioning in the fourth quarter of 2018, as compared to the
fourth quarter of 2017, is primarily due to lower loan growth
($146.8 million vs. $327.3 million) due to higher loan payoffs and
lower net charge-offs. Net charge-offs of $844 thousand in the
fourth quarter of 2018 represented an annualized 0.05% of average
loans, excluding loans held for sale, as compared to net
charge-offs of $2.3 million, or an annualized 0.15% of average
loans, excluding loans held for sale, in the fourth quarter of
2017. Net charge-offs in the fourth quarter of 2018 were
attributable primarily to commercial loans ($801 thousand).
Noninterest income for the three months ended
December 31, 2018 decreased to $6.1 million from $9.5 million for
the three months ended December 31, 2017, due substantially to a
$1.2 million nonrecurring adjustment to a tax credit investment
recorded in the fourth quarter of 2017 and a $354 thousand
prepayment penalty associated with a single credit that was
recorded during the fourth quarter of 2017. The FHA business unit
generated income of $507 thousand on the origination,
securitization, servicing and sale of FHA Multifamily-Backed GNMA
securities in the fourth quarter of 2018 compared to $948 thousand
for the same period in 2017. The residential mortgage unit had
lower sales and resulting gains on the sale of these loans in the
fourth quarter of 2018 (gains of $1.2 million for the fourth
quarter of 2018 versus $1.6 million for the same period in 2017).
Residential mortgage loans closed were $91 million for the fourth
quarter in 2018 versus $136 million for the fourth quarter of 2017.
The SBA business unit generated $167 thousand in revenue during the
fourth quarter of 2018 from sales of the guaranteed portion on SBA
loans compared to $893 thousand for the same period in 2017.
The efficiency ratio, which measures the ratio
of noninterest expense to total revenue, was 36.09% for the fourth
quarter of 2018, as compared to 35.12% for the fourth quarter of
2017. Noninterest expenses totaled $31.7 million for the three
months ended December 31, 2018, as compared to $29.8 million for
the three months ended December 31, 2017. Salaries and employee
benefits expenses decreased $771 thousand in the fourth quarter of
2018 as compared to the fourth quarter of 2017 due to lower
incentive and stock based compensation accruals, partially offset
by higher salaries. Legal, accounting, and professional fees
increased by $946 thousand due substantially to advisory services
associated with enhancing our risk management systems including
corporate governance as we approach $10 billion in assets. Other
expenses increased $965 thousand due primarily to higher broker
fees and franchise taxes.
The effective income tax rate was substantially
lower (24.7%) for the fourth quarter 2018 as compared to 69.5% for
the same period in 2017 due primarily to the lower corporate
federal tax rate of 21% in 2018 versus 35% in 2017 and a $14.6
million deferred tax asset adjustment to income tax expense during
the fourth quarter of 2017 both as a result of Tax Reform.
Analysis of the year ended December 31,
2018 compared to December 31, 2017
Net interest income increased 12% for the year
ended December 31, 2018 over the same period in 2017 ($317.0
million versus $283.9 million), resulting from growth in average
earning assets of 13%. The net interest margin was 4.10% for the
year ended December 31, 2018 as compared to 4.15% for the same
period in 2017. 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 full year of 2018 has been a significant factor in its
overall profitability. Additionally, the percentage of average
noninterest bearing deposits to total deposits was 33.4% for the
full year of 2018 versus 32.5% for the same period in 2017.
The provision for credit losses was $8.7 million
for the year ended December 31, 2018 as compared to $9.0 million
for the year ended December 31, 2017. The lower provisioning during
2018, as compared to 2017, is due to lower loan growth ($579.9
million versus $733.6 million) due to higher loan payoffs. Net
charge-offs of $3.5 million during 2018 represented an annualized
0.05% of average loans, excluding loans held for sale, as compared
to $3.3 million or an annualized 0.06% of average loans, excluding
loans held for sale, in 2017. Net charge-offs during 2018 were
attributable primarily to commercial loans ($3.2 million).
Noninterest income for the year ended December
31, 2018 was $22.6 million as compared to $29.4 million for the
year ended December 31, 2017, a 23% decrease. This decrease was
primarily due to $2.1 million lower revenue on the origination,
securitization, servicing, and sale of FHA Multifamily-Backed GNMA
securities, a $1.2 million nonrecurring adjustment to a tax credit
investment recorded in the fourth quarter of 2017, a $354 thousand
prepayment penalty associated with a single credit that was
recorded during the fourth quarter of 2017, $269 thousand of
premium and servicing income recorded during 2017 resulting from
the portfolio sale of $44.3 million in residential mortgages and
HELOC’s out of the loan portfolio, $3.3 million lower gains on sale
of loans, and $445 thousand lower gain on sale of investment
securities. The FHA business unit generated income of $357 thousand
on the origination, securitization, servicing and sale of FHA
Multifamily-Backed GNMA securities for the full year 2018 compared
to $2.5 million for the same period in 2017. The residential
mortgage unit had $5.4 million of gains on the sale of loans for
the full year of 2018 versus $7.8 million for the same period in
2017 resulting from fewer loan originations and subsequent loan
sales. Residential mortgage loans closed were $424 million for the
full year 2018 versus $608 million for the full year 2017. The SBA
business unit generated $540 thousand in revenue from sales of the
guaranteed portion on SBA loans for the full year 2018 compared to
$1.5 million for the same period in 2017.
Noninterest expenses totaled $126.7 million for
the year ended December 31, 2018, as compared to $118.6 million for
the year ended December 31, 2017, a 7% increase. Data processing
increased by $1.5 million due primarily to the costs of software
and infrastructure investments. Legal, accounting and professional
fees increased by $4.7 million due primarily to due diligence costs
from independent consultants associated with the internet event
late in 2017 as well as costs to enhance risk management systems,
including corporate governance as we approach $10 billion in
assets. For 2018, the efficiency ratio was 37.31% as compared to
37.84% for the same period in 2017.
The financial information which follows provides
more detail on the Company’s financial performance for the three
and twelve months ended December 31, 2018 as compared to the three
and twelve months ended December 31, 2017 as well as providing
eight quarters of trend data. Persons wishing additional
information should refer to the Company’s Form 10-K for the year
ended December 31, 2017 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 fourth quarter and year
end 2018 financial results on Thursday, January 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
1481537, 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 January 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, 2017 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. |
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Consolidated
Financial Highlights (Unaudited) |
|
|
|
|
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|
(dollars in thousands,
except per share data) |
|
|
|
|
Three Months Ended December 31, |
|
Year Ended December 31, |
|
|
2018 |
|
|
|
2017 |
|
|
|
2018 |
|
|
|
2017 |
|
Income
Statements: |
|
|
|
|
|
|
|
Total interest
income |
$ |
105,581 |
|
|
$ |
86,526 |
|
|
$ |
393,286 |
|
|
$ |
324,034 |
|
Total interest
expense |
|
23,869 |
|
|
|
11,167 |
|
|
|
76,293 |
|
|
|
40,147 |
|
Net interest
income |
|
81,712 |
|
|
|
75,359 |
|
|
|
316,993 |
|
|
|
283,887 |
|
Provision for credit
losses |
|
2,600 |
|
|
|
4,087 |
|
|
|
8,660 |
|
|
|
8,971 |
|
Net interest income
after provision for credit losses |
|
79,112 |
|
|
|
71,272 |
|
|
|
308,333 |
|
|
|
274,916 |
|
Noninterest income
(before investment gains) |
|
6,060 |
|
|
|
9,496 |
|
|
|
22,489 |
|
|
|
28,830 |
|
Gain on sale of
investment securities |
|
29 |
|
|
|
- |
|
|
|
97 |
|
|
|
542 |
|
Total noninterest
income |
|
6,089 |
|
|
|
9,496 |
|
|
|
22,586 |
|
|
|
29,372 |
|
Total noninterest
expense |
|
31,687 |
|
|
|
29,803 |
|
|
|
126,711 |
|
|
|
118,552 |
|
Income before income
tax expense |
|
53,514 |
|
|
|
50,965 |
|
|
|
204,208 |
|
|
|
185,736 |
|
Income tax expense |
|
13,197 |
|
|
|
35,396 |
|
|
|
51,932 |
|
|
|
85,504 |
|
Net income |
$ |
40,317 |
|
|
$ |
15,569 |
|
|
$ |
152,276 |
|
|
$ |
100,232 |
|
|
|
|
|
|
|
|
|
Per Share
Data: |
|
|
|
|
|
|
|
Earnings per weighted
average common share, basic |
$ |
1.17 |
|
|
$ |
0.46 |
|
|
$ |
4.44 |
|
|
$ |
2.94 |
|
Earnings per weighted
average common share, diluted |
$ |
1.17 |
|
|
$ |
0.45 |
|
|
$ |
4.42 |
|
|
$ |
2.92 |
|
Weighted average common
shares outstanding, basic |
|
34,349,089 |
|
|
|
34,179,793 |
|
|
|
34,306,336 |
|
|
|
34,138,536 |
|
Weighted average common
shares outstanding, diluted |
|
34,460,985 |
|
|
|
34,334,873 |
|
|
|
34,443,040 |
|
|
|
34,320,639 |
|
Actual shares
outstanding at period end |
|
34,387,919 |
|
|
|
34,185,163 |
|
|
|
34,387,919 |
|
|
|
34,185,163 |
|
Book value per common
share at period end |
$ |
32.25 |
|
|
$ |
27.80 |
|
|
$ |
32.25 |
|
|
$ |
27.80 |
|
Tangible book value per
common share at period end (1) |
$ |
29.17 |
|
|
$ |
24.67 |
|
|
$ |
29.17 |
|
|
$ |
24.67 |
|
|
|
|
|
|
|
|
|
Performance
Ratios (annualized): |
|
|
|
|
|
|
|
Return on average
assets |
|
1.90% |
|
|
|
0.82% |
|
|
|
1.91% |
|
|
|
1.41% |
|
Return on average
common equity |
|
14.82% |
|
|
|
6.49% |
|
|
|
14.89% |
|
|
|
11.06% |
|
Return on average
tangible common equity |
|
16.43% |
|
|
|
7.31% |
|
|
|
16.63% |
|
|
|
12.54% |
|
Net interest
margin |
|
3.97% |
|
|
|
4.13% |
|
|
|
4.10% |
|
|
|
4.15% |
|
Efficiency ratio
(2) |
|
36.09% |
|
|
|
35.12% |
|
|
|
37.31% |
|
|
|
37.84% |
|
|
|
|
|
|
|
|
|
Other
Ratios: |
|
|
|
|
|
|
|
Allowance for credit
losses to total loans (3) |
|
1.00% |
|
|
|
1.01% |
|
|
|
1.00% |
|
|
|
1.01% |
|
Allowance for credit
losses to total nonperforming loans |
|
429.72% |
|
|
|
489.20% |
|
|
|
429.72% |
|
|
|
489.20% |
|
Nonperforming loans to
total loans (3) |
|
0.23% |
|
|
|
0.21% |
|
|
|
0.23% |
|
|
|
0.21% |
|
Nonperforming assets to
total assets |
|
0.21% |
|
|
|
0.20% |
|
|
|
0.21% |
|
|
|
0.20% |
|
Net charge-offs
(annualized) to average loans (3) |
|
0.05% |
|
|
|
0.15% |
|
|
|
0.05% |
|
|
|
0.06% |
|
Common equity to total
assets |
|
13.22% |
|
|
|
12.71% |
|
|
|
13.22% |
|
|
|
12.71% |
|
Tier 1 capital (to
average assets) |
|
12.08% |
|
|
|
11.45% |
|
|
|
12.08% |
|
|
|
11.45% |
|
Total capital (to risk
weighted assets) |
|
16.07% |
|
|
|
15.02% |
|
|
|
16.07% |
|
|
|
15.02% |
|
Common equity tier 1
capital (to risk weighted assets) |
|
12.47% |
|
|
|
11.23% |
|
|
|
12.47% |
|
|
|
11.23% |
|
Tangible common equity
ratio (1) |
|
12.11% |
|
|
|
11.44% |
|
|
|
12.11% |
|
|
|
11.44% |
|
|
|
|
|
|
|
|
|
Loan Balances -
Period End (in thousands): |
|
|
|
|
|
|
|
Commercial and
Industrial |
$ |
1,553,111 |
|
|
$ |
1,375,939 |
|
|
$ |
1,553,111 |
|
|
$ |
1,375,939 |
|
Commercial real estate
- owner occupied |
$ |
887,814 |
|
|
$ |
755,444 |
|
|
$ |
887,814 |
|
|
$ |
755,444 |
|
Commercial real estate
- income producing |
$ |
3,256,899 |
|
|
$ |
3,047,094 |
|
|
$ |
3,256,899 |
|
|
$ |
3,047,094 |
|
1-4 Family
mortgage |
$ |
106,418 |
|
|
$ |
104,357 |
|
|
$ |
106,418 |
|
|
$ |
104,357 |
|
Construction -
commercial and residential |
$ |
1,039,815 |
|
|
$ |
973,141 |
|
|
$ |
1,039,815 |
|
|
$ |
973,141 |
|
Construction - C&I
(owner occupied) |
$ |
57,797 |
|
|
$ |
58,691 |
|
|
$ |
57,797 |
|
|
$ |
58,691 |
|
Home equity |
$ |
86,603 |
|
|
$ |
93,264 |
|
|
$ |
86,603 |
|
|
$ |
93,264 |
|
Other consumer |
$ |
2,988 |
|
|
$ |
3,598 |
|
|
$ |
2,988 |
|
|
$ |
3,598 |
|
|
|
|
|
|
|
|
|
Average
Balances (in thousands): |
|
|
|
|
|
|
|
Total assets |
$ |
8,415,480 |
|
|
$ |
7,487,624 |
|
|
$ |
7,958,941 |
|
|
$ |
7,089,211 |
|
Total earning
assets |
$ |
8,171,010 |
|
|
$ |
7,242,994 |
|
|
$ |
7,726,401 |
|
|
$ |
6,853,815 |
|
Total loans |
$ |
6,897,434 |
|
|
$ |
6,207,505 |
|
|
$ |
6,638,136 |
|
|
$ |
5,939,985 |
|
Total deposits |
$ |
6,950,714 |
|
|
$ |
6,101,727 |
|
|
$ |
6,444,551 |
|
|
$ |
5,787,665 |
|
Total borrowings |
$ |
342,637 |
|
|
$ |
382,687 |
|
|
$ |
453,581 |
|
|
$ |
355,377 |
|
Total shareholders’
equity |
$ |
1,079,622 |
|
|
$ |
951,727 |
|
|
$ |
1,022,642 |
|
|
$ |
906,169 |
|
(1) Tangible common equity to tangible assets
(the "tangible common equity ratio") and tangible book value per
common share are non-GAAP financial measures derived from GAAP
based amounts. The Company calculates the tangible common equity
ratio by excluding the balance of intangible assets from common
shareholders' equity and dividing by tangible assets. The Company
calculates tangible book value per common share by dividing
tangible common equity by common shares outstanding, as compared to
book value per common share, which the Company calculates by
dividing common shareholders' equity by common shares outstanding.
The Company considers this information important to shareholders as
tangible equity is a measure that is consistent with the
calculation of capital for bank regulatory purposes, which excludes
intangible assets from the calculation of risk based ratios and as
such is useful for investors, regulators, management and others to
evaluate capital adequacy and to compare against other financial
institutions. The table below provides a reconciliation of these
non-GAAP financial measures with financial measures defined by
GAAP.
|
|
|
|
GAAP
Reconciliation (Unaudited) |
|
|
|
(dollars in thousands
except per share data) |
|
|
|
|
Year Ended |
|
Year Ended |
|
December 31, 2018 |
|
December 31, 2017 |
Common shareholders'
equity |
$ |
1,108,941 |
|
|
$ |
950,438 |
|
Less: Intangible
assets |
|
(105,766 |
) |
|
|
(107,212 |
) |
Tangible common
equity |
$ |
1,003,175 |
|
|
$ |
843,226 |
|
|
|
|
|
Book value per common
share |
$ |
32.25 |
|
|
$ |
27.80 |
|
Less: Intangible book
value per common share |
|
(3.08 |
) |
|
|
(3.13 |
) |
Tangible book
value per common share |
$ |
29.17 |
|
|
$ |
24.67 |
|
|
|
|
|
Total assets |
$ |
8,389,137 |
|
|
$ |
7,479,029 |
|
Less: Intangible
assets |
|
(105,766 |
) |
|
|
(107,212 |
) |
Tangible
assets |
$ |
8,283,371 |
|
|
$ |
7,371,817 |
|
Tangible common
equity ratio |
|
12.11% |
|
|
|
11.44% |
|
|
|
|
|
Average common
shareholders' equity |
$ |
1,022,642 |
|
|
$ |
906,169 |
|
Less: Average
intangible assets |
|
(106,806 |
) |
|
|
(107,117 |
) |
Average
tangible common equity |
$ |
915,836 |
|
|
$ |
799,052 |
|
|
|
|
|
Net Income Available to
Common Shareholders |
$ |
152,276 |
|
|
$ |
100,232 |
|
Average tangible common
equity |
$ |
915,836 |
|
|
$ |
799,052 |
|
Annualized
Return on Average Tangible Common Equity (1) |
|
16.63% |
|
|
|
12.54% |
|
|
|
|
|
(2) Computed by dividing noninterest expense by the sum of net
interest income and noninterest income.
(3) Excludes loans held for sale.
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended December 31, |
|
Three Months Ended September 30, |
|
Years Ended December 31, |
|
|
2018 |
|
|
2017 |
|
|
2018 |
|
|
2018 |
|
|
2017 |
Net income |
$ |
40,317 |
|
$ |
15,569 |
|
$ |
38,948 |
|
$ |
152,276 |
|
$ |
100,232 |
Income Tax Expense |
|
13,197 |
|
|
35,396 |
|
|
13,928 |
|
|
51,932 |
|
|
85,504 |
Provision for Credit
Losses |
|
2,600 |
|
|
4,087 |
|
|
2,441 |
|
|
8,660 |
|
|
8,971 |
Pre-Tax,
Pre-Provision Income |
$ |
56,114 |
|
$ |
55,052 |
|
$ |
55,317 |
|
$ |
212,868 |
|
$ |
194,707 |
|
|
|
|
|
|
|
|
|
|
Eagle Bancorp,
Inc. |
|
|
|
|
|
|
|
|
|
|
|
GAAP
Reconciliation (Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
(dollars in thousands
except per share data) |
|
|
|
|
Three Months Ended December 31,
2017 |
|
Year Ended December 31, 2017 |
|
GAAP |
|
Change |
|
Non-GAAP |
|
GAAP |
|
Change |
|
Non-GAAP |
Income
Statements: |
|
|
|
|
|
|
|
|
|
|
|
Income tax expense |
|
35,395 |
|
|
|
(14,588 |
) |
|
|
20,807 |
|
|
|
85,504 |
|
|
|
(14,588 |
) |
|
|
70,916 |
|
Net income |
$ |
15,569 |
|
|
|
14,588 |
|
|
$ |
30,157 |
|
|
$ |
100,232 |
|
|
|
14,588 |
|
|
$ |
114,820 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings Per
Common Share |
|
|
|
|
|
|
|
|
|
|
|
Earnings per weighted
average common share, basic |
$ |
0.46 |
|
|
$ |
0.43 |
|
|
$ |
0.88 |
|
|
$ |
2.94 |
|
|
$ |
0.43 |
|
|
$ |
3.36 |
|
Earnings per weighted
average common share, diluted |
$ |
0.45 |
|
|
$ |
0.42 |
|
|
$ |
0.88 |
|
|
$ |
2.92 |
|
|
$ |
0.42 |
|
|
$ |
3.35 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Performance
Ratios (annualized): |
|
|
|
|
|
|
|
|
|
|
|
Return on average
assets |
|
0.82% |
|
|
|
|
|
1.60% |
|
|
|
1.41% |
|
|
|
|
|
1.62% |
|
Return on average
common equity |
|
6.49% |
|
|
|
|
|
12.57% |
|
|
|
11.06% |
|
|
|
|
|
12.67% |
|
Return on average
tangible common equity |
|
7.31% |
|
|
|
|
|
14.17% |
|
|
|
12.54% |
|
|
|
|
|
14.37% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of December 31, 2017 |
|
|
|
|
|
|
Assets |
GAAP |
|
Change |
|
Non-GAAP |
|
|
|
|
|
|
Deferred income
taxes |
|
28,770 |
|
|
|
14,588 |
|
|
|
43,358 |
|
|
|
|
|
|
|
Total Assets |
$ |
7,479,029 |
|
|
$ |
14,588 |
|
|
$ |
7,493,617 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders'
Equity |
|
|
|
|
|
|
|
|
|
|
|
Retained
earnings |
|
431,544 |
|
|
|
14,588 |
|
|
|
446,132 |
|
|
|
|
|
|
|
Total Shareholders' Equity |
|
950,438 |
|
|
|
14,588 |
|
|
|
965,026 |
|
|
|
|
|
|
|
Total Liabilities and Shareholders' Equity |
$ |
7,479,029 |
|
|
|
14,588 |
|
|
$ |
7,493,617 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Eagle Bancorp,
Inc. |
|
|
|
|
|
Consolidated
Balance Sheets (Unaudited) |
|
|
|
|
|
(dollars in thousands,
except per share data) |
|
|
|
|
|
|
|
|
|
|
|
Assets |
December 31, 2018 |
|
September 30, 2018 |
|
December 31, 2017 |
Cash and due from
banks |
$ |
6,773 |
|
|
$ |
4,459 |
|
|
$ |
7,445 |
|
Federal funds sold |
|
11,934 |
|
|
|
17,284 |
|
|
|
15,767 |
|
Interest bearing
deposits with banks and other short-term investments |
|
303,157 |
|
|
|
162,734 |
|
|
|
167,261 |
|
Investment securities
available for sale, at fair value |
|
784,139 |
|
|
|
722,674 |
|
|
|
589,268 |
|
Federal Reserve and
Federal Home Loan Bank stock |
|
23,506 |
|
|
|
37,257 |
|
|
|
36,324 |
|
Loans held for
sale |
|
19,254 |
|
|
|
18,728 |
|
|
|
25,096 |
|
Loans |
|
6,991,447 |
|
|
|
6,844,672 |
|
|
|
6,411,528 |
|
Less allowance for
credit losses |
|
(69,944 |
) |
|
|
(68,189 |
) |
|
|
(64,758 |
) |
Loans,
net |
|
6,921,503 |
|
|
|
6,776,483 |
|
|
|
6,346,770 |
|
Premises and equipment,
net |
|
16,851 |
|
|
|
17,457 |
|
|
|
20,991 |
|
Deferred income
taxes |
|
33,027 |
|
|
|
35,196 |
|
|
|
28,770 |
|
Bank owned life
insurance |
|
73,441 |
|
|
|
73,007 |
|
|
|
60,947 |
|
Intangible assets,
net |
|
105,766 |
|
|
|
106,481 |
|
|
|
107,212 |
|
Other real estate
owned |
|
1,394 |
|
|
|
1,394 |
|
|
|
1,394 |
|
Other assets |
|
88,392 |
|
|
|
84,701 |
|
|
|
71,784 |
|
Total Assets |
$ |
8,389,137 |
|
|
$ |
8,057,855 |
|
|
$ |
7,479,029 |
|
|
|
|
|
|
|
Liabilities and
Shareholders' Equity |
|
|
|
|
|
Deposits: |
|
|
|
|
|
Noninterest bearing demand |
$ |
2,104,220 |
|
|
$ |
2,057,886 |
|
|
$ |
1,982,912 |
|
Interest
bearing transaction |
|
593,107 |
|
|
|
459,455 |
|
|
|
420,417 |
|
Savings
and money market |
|
2,949,559 |
|
|
|
2,573,258 |
|
|
|
2,621,146 |
|
Time,
$100,000 or more |
|
801,957 |
|
|
|
758,152 |
|
|
|
515,682 |
|
Other
time |
|
525,442 |
|
|
|
523,554 |
|
|
|
313,827 |
|
Total
deposits |
|
6,974,285 |
|
|
|
6,372,305 |
|
|
|
5,853,984 |
|
Customer repurchase
agreements |
|
30,413 |
|
|
|
36,446 |
|
|
|
76,561 |
|
Other short-term
borrowings |
|
- |
|
|
|
325,000 |
|
|
|
325,000 |
|
Long-term
borrowings |
|
217,296 |
|
|
|
217,198 |
|
|
|
216,905 |
|
Other liabilities |
|
58,202 |
|
|
|
45,255 |
|
|
|
56,141 |
|
Total liabilities |
|
7,280,196 |
|
|
|
6,996,204 |
|
|
|
6,528,591 |
|
|
|
|
|
|
|
Shareholders'
Equity |
|
|
|
|
|
Common stock, par value
$.01 per share; shares authorized 100,000,000, shares |
|
|
|
|
|
issued
and outstanding 34,387,919, 34,308,473, and 34,185,163,
respectively |
|
342 |
|
|
|
341 |
|
|
|
340 |
|
Additional paid in
capital |
|
528,380 |
|
|
|
526,423 |
|
|
|
520,304 |
|
Retained earnings |
|
584,494 |
|
|
|
544,177 |
|
|
|
431,544 |
|
Accumulated other
comprehensive loss |
|
(4,275 |
) |
|
|
(9,290 |
) |
|
|
(1,750 |
) |
Total Shareholders' Equity |
|
1,108,941 |
|
|
|
1,061,651 |
|
|
|
950,438 |
|
Total Liabilities and Shareholders' Equity |
$ |
8,389,137 |
|
|
$ |
8,057,855 |
|
|
$ |
7,479,029 |
|
|
|
|
|
|
` |
Eagle Bancorp,
Inc. |
|
|
|
|
|
|
|
Consolidated
Statements of Income (Unaudited) |
|
|
|
|
|
|
|
(dollars in thousands,
except per share data) |
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended December 31, |
|
Years Ended December 31, |
Interest
Income |
|
2018 |
|
|
2017 |
|
|
2018 |
|
|
2017 |
Interest
and fees on loans |
$ |
97,682 |
|
$ |
81,967 |
|
$ |
368,606 |
|
$ |
308,510 |
Interest
and dividends on investment securities |
|
5,382 |
|
|
3,360 |
|
|
17,907 |
|
|
12,214 |
Interest
on balances with other banks and short-term investments |
|
2,464 |
|
|
1,174 |
|
|
6,616 |
|
|
3,258 |
Interest
on federal funds sold |
|
53 |
|
|
25 |
|
|
157 |
|
|
52 |
Total
interest income |
|
105,581 |
|
|
86,526 |
|
|
393,286 |
|
|
324,034 |
Interest
Expense |
|
|
|
|
|
|
|
Interest
on deposits |
|
20,314 |
|
|
7,820 |
|
|
60,210 |
|
|
27,286 |
Interest
on customer repurchase agreements |
|
59 |
|
|
61 |
|
|
225 |
|
|
197 |
Interest
on other short-term borrowings |
|
517 |
|
|
307 |
|
|
3,942 |
|
|
748 |
Interest
on long-term borrowings |
|
2,979 |
|
|
2,979 |
|
|
11,916 |
|
|
11,916 |
Total
interest expense |
|
23,869 |
|
|
11,167 |
|
|
76,293 |
|
|
40,147 |
Net Interest
Income |
|
81,712 |
|
|
75,359 |
|
|
316,993 |
|
|
283,887 |
Provision for
Credit Losses |
|
2,600 |
|
|
4,087 |
|
|
8,660 |
|
|
8,971 |
Net Interest
Income After Provision For Credit Losses |
|
79,112 |
|
|
71,272 |
|
|
308,333 |
|
|
274,916 |
|
|
|
|
|
|
|
|
Noninterest
Income |
|
|
|
|
|
|
|
Service
charges on deposits |
|
1,826 |
|
|
1,723 |
|
|
7,014 |
|
|
6,364 |
Gain on
sale of loans |
|
1,331 |
|
|
2,536 |
|
|
5,963 |
|
|
9,275 |
Gain on
sale of investment securities |
|
29 |
|
|
- |
|
|
97 |
|
|
542 |
Increase
in the cash surrender value of bank owned life insurance |
|
434 |
|
|
603 |
|
|
1,507 |
|
|
1,711 |
Other
income |
|
2,469 |
|
|
4,634 |
|
|
8,005 |
|
|
11,480 |
Total
noninterest income |
|
6,089 |
|
|
9,496 |
|
|
22,586 |
|
|
29,372 |
Noninterest
Expense |
|
|
|
|
|
|
|
Salaries
and employee benefits |
|
15,907 |
|
|
16,678 |
|
|
67,734 |
|
|
67,129 |
Premises
and equipment expenses |
|
3,969 |
|
|
4,019 |
|
|
15,660 |
|
|
15,632 |
Marketing
and advertising |
|
1,147 |
|
|
1,222 |
|
|
4,566 |
|
|
4,095 |
Data
processing |
|
2,570 |
|
|
2,163 |
|
|
9,714 |
|
|
8,220 |
Legal,
accounting and professional fees |
|
2,460 |
|
|
1,514 |
|
|
9,742 |
|
|
5,053 |
FDIC
insurance |
|
953 |
|
|
491 |
|
|
3,512 |
|
|
2,554 |
Other
expenses |
|
4,681 |
|
|
3,716 |
|
|
15,783 |
|
|
15,869 |
Total
noninterest expense |
|
31,687 |
|
|
29,803 |
|
|
126,711 |
|
|
118,552 |
Income Before
Income Tax Expense |
|
53,514 |
|
|
50,965 |
|
|
204,208 |
|
|
185,736 |
Income Tax
Expense |
|
13,197 |
|
|
35,396 |
|
|
51,932 |
|
|
85,504 |
Net
Income |
$ |
40,317 |
|
$ |
15,569 |
|
$ |
152,276 |
|
$ |
100,232 |
|
|
|
|
|
|
|
|
Earnings Per
Common Share |
|
|
|
|
|
|
|
Basic |
$ |
1.17 |
|
$ |
0.46 |
|
$ |
4.44 |
|
$ |
2.94 |
Diluted |
$ |
1.17 |
|
$ |
0.45 |
|
$ |
4.42 |
|
$ |
2.92 |
|
|
|
|
|
|
|
|
Eagle Bancorp, Inc. |
Consolidated Average Balances, Interest Yields
And Rates (Unaudited) |
(dollars in thousands) |
|
|
|
|
|
|
|
|
|
Three Months Ended December 31, |
|
|
2018 |
|
|
|
2017 |
|
|
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 |
$ |
459,139 |
$ |
2,464 |
2.13% |
|
|
$ |
381,339 |
$ |
1,175 |
1.22% |
|
Loans held for sale
(1) |
|
21,457 |
|
256 |
4.77% |
|
|
|
38,449 |
|
379 |
3.94% |
|
Loans (1)
(2) |
|
6,897,434 |
|
97,426 |
5.60% |
|
|
|
6,207,505 |
|
81,588 |
5.21% |
|
Investment securities
available for sale (2) |
|
775,706 |
|
5,382 |
2.75% |
|
|
|
603,550 |
|
3,360 |
2.21% |
|
Federal funds sold |
|
17,274 |
|
53 |
1.22% |
|
|
|
12,151 |
|
25 |
0.82% |
|
Total
interest earning assets |
|
8,171,010 |
|
105,581 |
5.13% |
|
|
|
7,242,994 |
|
86,527 |
4.74% |
|
|
|
|
|
|
|
|
|
Total noninterest
earning assets |
|
313,614 |
|
|
|
|
308,022 |
|
|
Less: allowance for
credit losses |
|
69,144 |
|
|
|
|
63,392 |
|
|
Total
noninterest earning assets |
|
244,470 |
|
|
|
|
244,630 |
|
|
TOTAL ASSETS |
$ |
8,415,480 |
|
|
|
$ |
7,487,624 |
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY |
|
|
|
|
|
|
|
Interest bearing
liabilities: |
|
|
|
|
|
|
|
Interest bearing
transaction |
$ |
539,764 |
$ |
1,096 |
0.81% |
|
|
$ |
380,137 |
$ |
456 |
0.48% |
|
Savings and money
market |
|
2,754,480 |
|
11,688 |
1.68% |
|
|
|
2,923,750 |
|
5,113 |
0.69% |
|
Time deposits |
|
1,329,294 |
|
7,530 |
2.25% |
|
|
|
811,484 |
|
2,251 |
1.10% |
|
Total
interest bearing deposits |
|
4,623,538 |
|
20,314 |
1.74% |
|
|
|
4,115,371 |
|
7,820 |
0.75% |
|
Customer repurchase
agreements |
|
40,859 |
|
59 |
0.57% |
|
|
|
80,758 |
|
61 |
0.30% |
|
Other short-term
borrowings |
|
84,515 |
|
517 |
2.39% |
|
|
|
85,057 |
|
307 |
1.41% |
|
Long-term
borrowings |
|
217,263 |
|
2,979 |
5.37% |
|
|
|
216,872 |
|
2,979 |
5.38% |
|
Total
interest bearing liabilities |
|
4,966,175 |
|
23,869 |
1.91% |
|
|
|
4,498,058 |
|
11,167 |
0.98% |
|
|
|
|
|
|
|
|
|
Noninterest bearing
liabilities: |
|
|
|
|
|
|
|
Noninterest bearing
demand |
|
2,327,176 |
|
|
|
|
1,986,356 |
|
|
Other liabilities |
|
42,507 |
|
|
|
|
51,483 |
|
|
Total
noninterest bearing liabilities |
|
2,369,683 |
|
|
|
|
2,037,839 |
|
|
|
|
|
|
|
|
|
|
Shareholders’
Equity |
|
1,079,622 |
|
|
|
|
951,727 |
|
|
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY |
$ |
8,415,480 |
|
|
|
$ |
7,487,624 |
|
|
|
|
|
|
|
|
|
|
Net interest
income |
|
$ |
81,712 |
|
|
|
$ |
75,360 |
|
Net interest
spread |
|
|
3.22% |
|
|
|
|
3.76% |
|
Net interest
margin |
|
|
3.97% |
|
|
|
|
4.13% |
|
Cost of funds |
|
|
1.16% |
|
|
|
|
0.61% |
|
|
|
|
|
|
|
|
|
(1) Loans
placed on nonaccrual status are included in average balances. Net
loan fees and late charges included in interest income on loans
totaled $4.7 million and $5.2 million for the three months
ended December 31, 2018 and 2017, 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) |
|
|
|
|
|
|
|
|
|
Year Ended December 31, |
|
|
2018 |
|
|
|
2017 |
|
|
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 |
$ |
356,017 |
$ |
6,616 |
1.86% |
|
|
$ |
313,296 |
$ |
3,258 |
1.04% |
|
Loans held for sale
(1) |
|
23,877 |
|
1,095 |
4.59% |
|
|
|
35,813 |
|
1,400 |
3.91% |
|
Loans (1)
(2) |
|
6,638,136 |
|
367,511 |
5.54% |
|
|
|
5,939,985 |
|
307,110 |
5.17% |
|
Investment securities
available for sale (1) |
|
692,753 |
|
17,907 |
2.58% |
|
|
|
557,049 |
|
12,214 |
2.19% |
|
Federal funds sold |
|
15,618 |
|
157 |
1.01% |
|
|
|
7,672 |
|
52 |
0.68% |
|
Total
interest earning assets |
|
7,726,401 |
|
393,286 |
5.09% |
|
|
|
6,853,815 |
|
324,034 |
4.73% |
|
|
|
|
|
|
|
|
|
Total noninterest
earning assets |
|
299,653 |
|
|
|
|
296,562 |
|
|
Less: allowance for
credit losses |
|
67,113 |
|
|
|
|
61,166 |
|
|
Total
noninterest earning assets |
|
232,540 |
|
|
|
|
235,396 |
|
|
TOTAL ASSETS |
$ |
7,958,941 |
|
|
|
$ |
7,089,211 |
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY |
|
|
|
|
|
|
|
Interest bearing
liabilities: |
|
|
|
|
|
|
|
Interest bearing
transaction |
$ |
460,599 |
$ |
3,348 |
0.73% |
|
|
$ |
369,953 |
$ |
1,537 |
0.42% |
|
Savings and money
market |
|
2,691,726 |
|
35,534 |
1.32% |
|
|
|
2,739,776 |
|
17,284 |
0.63% |
|
Time deposits |
|
1,141,795 |
|
21,328 |
1.87% |
|
|
|
799,816 |
|
8,465 |
1.06% |
|
Total
interest bearing deposits |
|
4,294,120 |
|
60,210 |
1.40% |
|
|
|
3,909,545 |
|
27,286 |
0.70% |
|
Customer repurchase
agreements |
|
44,333 |
|
225 |
0.51% |
|
|
|
73,237 |
|
197 |
0.27% |
|
Other short-term
borrowings |
|
192,131 |
|
3,942 |
2.02% |
|
|
|
65,416 |
|
748 |
1.13% |
|
Long-term
borrowings |
|
217,117 |
|
11,916 |
5.41% |
|
|
|
216,724 |
|
11,916 |
5.42% |
|
Total
interest bearing liabilities |
|
4,747,701 |
|
76,293 |
1.61% |
|
|
|
4,264,922 |
|
40,147 |
0.94% |
|
|
|
|
|
|
|
|
|
Noninterest bearing
liabilities: |
|
|
|
|
|
|
|
Noninterest bearing
demand |
|
2,150,431 |
|
|
|
|
1,878,120 |
|
|
Other liabilities |
|
38,167 |
|
|
|
|
40,000 |
|
|
Total
noninterest bearing liabilities |
|
2,188,598 |
|
|
|
|
1,918,120 |
|
|
|
|
|
|
|
|
|
|
Shareholders’
equity |
|
1,022,642 |
|
|
|
|
906,169 |
|
|
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY |
$ |
7,958,941 |
|
|
|
$ |
7,089,211 |
|
|
|
|
|
|
|
|
|
|
Net interest
income |
|
$ |
316,993 |
|
|
|
$ |
283,887 |
|
Net interest
spread |
|
|
3.48% |
|
|
|
|
3.79% |
|
Net interest
margin |
|
|
4.10% |
|
|
|
|
4.15% |
|
Cost of funds |
|
|
0.99% |
|
|
|
|
0.58% |
|
|
|
|
|
|
|
|
|
(1) Loans
placed on nonaccrual status are included in average balances. Net
loan fees and late charges included in interest income on loans
totaled $19.6 million and $18.1 million for the years ended
December 31, 2018 and 2017, respectively. |
(2)
Interest and fees on loans and investments exclude tax equivalent
adjustments. |
|
|
|
|
|
|
Eagle Bancorp,
Inc. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Statements of
Income and Highlights Quarterly Trends (Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(dollars in thousands,
except per share data) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
December 31, |
|
September 30, |
|
June 30, |
|
March 31, |
|
December 31, |
|
September 30, |
|
June 30, |
|
March 31, |
Income
Statements: |
|
2018 |
|
|
|
2018 |
|
|
|
2018 |
|
|
|
2018 |
|
|
|
2017 |
|
|
|
2017 |
|
|
|
2017 |
|
|
|
2017 |
|
Total interest
income |
$ |
105,581 |
|
|
$ |
102,360 |
|
|
$ |
96,296 |
|
|
$ |
89,049 |
|
|
$ |
86,526 |
|
|
$ |
82,370 |
|
|
$ |
79,344 |
|
|
$ |
75,794 |
|
Total interest
expense |
|
23,869 |
|
|
|
21,069 |
|
|
|
18,086 |
|
|
|
13,269 |
|
|
|
11,167 |
|
|
|
10,434 |
|
|
|
9,646 |
|
|
|
8,900 |
|
Net interest
income |
|
81,712 |
|
|
|
81,291 |
|
|
|
78,210 |
|
|
|
75,780 |
|
|
|
75,359 |
|
|
|
71,936 |
|
|
|
69,698 |
|
|
|
66,894 |
|
Provision for credit
losses |
|
2,600 |
|
|
|
2,441 |
|
|
|
1,650 |
|
|
|
1,969 |
|
|
|
4,087 |
|
|
|
1,921 |
|
|
|
1,566 |
|
|
|
1,397 |
|
Net interest income
after provision for credit losses |
|
79,112 |
|
|
|
78,850 |
|
|
|
76,560 |
|
|
|
73,811 |
|
|
|
71,272 |
|
|
|
70,015 |
|
|
|
68,132 |
|
|
|
65,497 |
|
Noninterest income (before investment gains) |
|
6,060 |
|
|
|
5,640 |
|
|
|
5,527 |
|
|
|
5,262 |
|
|
|
9,496 |
|
|
|
6,773 |
|
|
|
6,997 |
|
|
|
5,565 |
|
Gain on
sale of investment securities |
|
29 |
|
|
|
- |
|
|
|
26 |
|
|
|
42 |
|
|
|
- |
|
|
|
11 |
|
|
|
26 |
|
|
|
505 |
|
Total noninterest
income |
|
6,089 |
|
|
|
5,640 |
|
|
|
5,553 |
|
|
|
5,304 |
|
|
|
9,496 |
|
|
|
6,784 |
|
|
|
7,023 |
|
|
|
6,070 |
|
Salaries
and employee benefits |
|
15,907 |
|
|
|
17,157 |
|
|
|
17,812 |
|
|
|
16,858 |
|
|
|
16,678 |
|
|
|
16,905 |
|
|
|
16,869 |
|
|
|
16,677 |
|
Premises
and equipment |
|
3,969 |
|
|
|
3,889 |
|
|
|
3,873 |
|
|
|
3,929 |
|
|
|
4,019 |
|
|
|
3,846 |
|
|
|
3,920 |
|
|
|
3,847 |
|
Marketing
and advertising |
|
1,147 |
|
|
|
1,191 |
|
|
|
1,291 |
|
|
|
937 |
|
|
|
1,222 |
|
|
|
732 |
|
|
|
1,247 |
|
|
|
894 |
|
Other
expenses |
|
10,664 |
|
|
|
9,377 |
|
|
|
9,313 |
|
|
|
9,397 |
|
|
|
7,884 |
|
|
|
8,033 |
|
|
|
7,965 |
|
|
|
7,814 |
|
Total noninterest
expense |
|
31,687 |
|
|
|
31,614 |
|
|
|
32,289 |
|
|
|
31,121 |
|
|
|
29,803 |
|
|
|
29,516 |
|
|
|
30,001 |
|
|
|
29,232 |
|
Income before income
tax expense |
|
53,514 |
|
|
|
52,876 |
|
|
|
49,824 |
|
|
|
47,994 |
|
|
|
50,965 |
|
|
|
47,283 |
|
|
|
45,154 |
|
|
|
42,335 |
|
Income tax expense |
|
13,197 |
|
|
|
13,928 |
|
|
|
12,528 |
|
|
|
12,279 |
|
|
|
35,396 |
|
|
|
17,409 |
|
|
|
17,382 |
|
|
|
15,318 |
|
Net income |
|
40,317 |
|
|
|
38,948 |
|
|
|
37,296 |
|
|
|
35,715 |
|
|
|
15,569 |
|
|
|
29,874 |
|
|
|
27,772 |
|
|
|
27,017 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Per Share
Data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per weighted
average common share, basic |
$ |
1.17 |
|
|
$ |
1.14 |
|
|
$ |
1.09 |
|
|
$ |
1.04 |
|
|
$ |
0.46 |
|
|
$ |
0.87 |
|
|
$ |
0.81 |
|
|
$ |
0.79 |
|
Earnings per weighted
average common share, diluted |
$ |
1.17 |
|
|
$ |
1.13 |
|
|
$ |
1.08 |
|
|
$ |
1.04 |
|
|
$ |
0.45 |
|
|
$ |
0.87 |
|
|
$ |
0.81 |
|
|
$ |
0.79 |
|
Weighted average common
shares outstanding, basic |
|
34,349,089 |
|
|
|
34,308,684 |
|
|
|
34,305,693 |
|
|
|
34,260,882 |
|
|
|
34,179,793 |
|
|
|
34,173,893 |
|
|
|
34,128,598 |
|
|
|
34,069,528 |
|
Weighted average common
shares outstanding, diluted |
|
34,460,985 |
|
|
|
34,460,794 |
|
|
|
34,448,354 |
|
|
|
34,406,310 |
|
|
|
34,334,873 |
|
|
|
34,338,442 |
|
|
|
34,324,120 |
|
|
|
34,284,316 |
|
Actual shares
outstanding at period end |
|
34,387,919 |
|
|
|
34,308,473 |
|
|
|
34,305,071 |
|
|
|
34,303,056 |
|
|
|
34,185,163 |
|
|
|
34,174,009 |
|
|
|
34,169,924 |
|
|
|
34,110,056 |
|
Book value per common
share at period end |
$ |
32.25 |
|
|
$ |
30.94 |
|
|
$ |
29.82 |
|
|
$ |
28.72 |
|
|
$ |
27.80 |
|
|
$ |
27.33 |
|
|
$ |
26.42 |
|
|
$ |
25.59 |
|
Tangible book value per
common share at period end (1) |
$ |
29.17 |
|
|
$ |
27.84 |
|
|
$ |
26.71 |
|
|
$ |
25.60 |
|
|
$ |
24.67 |
|
|
$ |
24.19 |
|
|
$ |
23.28 |
|
|
$ |
22.45 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Performance
Ratios (annualized): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average
assets |
|
1.90% |
|
|
|
1.93% |
|
|
|
1.92% |
|
|
|
1.91% |
|
|
|
0.82% |
|
|
|
1.66% |
|
|
|
1.60% |
|
|
|
1.62% |
|
Return on average
common equity |
|
14.82% |
|
|
|
14.85% |
|
|
|
14.93% |
|
|
|
14.99% |
|
|
|
6.49% |
|
|
|
12.86% |
|
|
|
12.51% |
|
|
|
12.74% |
|
Return on average
tangible common equity |
|
16.43% |
|
|
|
16.54% |
|
|
|
16.71% |
|
|
|
16.86% |
|
|
|
7.31% |
|
|
|
14.55% |
|
|
|
14.22% |
|
|
|
14.56% |
|
Net interest
margin |
|
3.97% |
|
|
|
4.14% |
|
|
|
4.15% |
|
|
|
4.17% |
|
|
|
4.13% |
|
|
|
4.14% |
|
|
|
4.16% |
|
|
|
4.14% |
|
Efficiency ratio
(2) |
|
36.09% |
|
|
|
36.37% |
|
|
|
38.55% |
|
|
|
38.38% |
|
|
|
35.12% |
|
|
|
37.49% |
|
|
|
39.10% |
|
|
|
40.06% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
Ratios: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for credit
losses to total loans (3) |
|
1.00% |
|
|
|
1.00% |
|
|
|
1.00% |
|
|
|
1.00% |
|
|
|
1.01% |
|
|
|
1.03% |
|
|
|
1.02% |
|
|
|
1.03% |
|
Allowance for credit
losses to total nonperforming loans |
|
429.72% |
|
|
|
452.28% |
|
|
|
612.42% |
|
|
|
491.56% |
|
|
|
489.20% |
|
|
|
379.11% |
|
|
|
356.00% |
|
|
|
416.91% |
|
Nonperforming loans to
total loans (3) |
|
0.23% |
|
|
|
0.22% |
|
|
|
0.16% |
|
|
|
0.20% |
|
|
|
0.21% |
|
|
|
0.27% |
|
|
|
0.29% |
|
|
|
0.25% |
|
Nonperforming assets to
total assets |
|
0.21% |
|
|
|
0.20% |
|
|
|
0.16% |
|
|
|
0.19% |
|
|
|
0.20% |
|
|
|
0.24% |
|
|
|
0.26% |
|
|
|
0.22% |
|
Net charge-offs
(annualized) to average loans (3) |
|
0.05% |
|
|
|
0.05% |
|
|
|
0.05% |
|
|
|
0.06% |
|
|
|
0.15% |
|
|
|
0.00% |
|
|
|
0.02% |
|
|
|
0.04% |
|
Tier 1 capital (to
average assets) |
|
12.08% |
|
|
|
12.13% |
|
|
|
11.97% |
|
|
|
11.76% |
|
|
|
11.45% |
|
|
|
11.78% |
|
|
|
11.61% |
|
|
|
11.51% |
|
Total capital (to risk
weighted assets) |
|
16.07% |
|
|
|
15.74% |
|
|
|
15.59% |
|
|
|
15.32% |
|
|
|
15.02% |
|
|
|
15.30% |
|
|
|
15.13% |
|
|
|
14.97% |
|
Common equity tier 1
capital (to risk weighted assets) |
|
12.47% |
|
|
|
12.11% |
|
|
|
11.89% |
|
|
|
11.57% |
|
|
|
11.23% |
|
|
|
11.40% |
|
|
|
11.18% |
|
|
|
10.97% |
|
Tangible common equity
ratio (1) |
|
12.11% |
|
|
|
12.01% |
|
|
|
11.79% |
|
|
|
11.57% |
|
|
|
11.44% |
|
|
|
11.35% |
|
|
|
11.15% |
|
|
|
10.97% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average
Balances (in thousands): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets |
$ |
8,415,480 |
|
|
$ |
8,023,535 |
|
|
$ |
7,789,564 |
|
|
$ |
7,597,485 |
|
|
$ |
7,487,624 |
|
|
$ |
7,128,769 |
|
|
$ |
6,959,994 |
|
|
$ |
6,772,164 |
|
Total earning
assets |
$ |
8,171,010 |
|
|
$ |
7,793,422 |
|
|
$ |
7,558,138 |
|
|
$ |
7,373,535 |
|
|
$ |
7,242,994 |
|
|
$ |
6,897,613 |
|
|
$ |
6,728,055 |
|
|
$ |
6,538,377 |
|
Total loans |
$ |
6,897,434 |
|
|
$ |
6,646,264 |
|
|
$ |
6,569,931 |
|
|
$ |
6,433,730 |
|
|
$ |
6,207,505 |
|
|
$ |
5,946,411 |
|
|
$ |
5,895,174 |
|
|
$ |
5,705,261 |
|
Total deposits |
$ |
6,950,714 |
|
|
$ |
6,485,144 |
|
|
$ |
6,269,126 |
|
|
$ |
6,063,017 |
|
|
$ |
6,101,727 |
|
|
$ |
5,827,953 |
|
|
$ |
5,660,119 |
|
|
$ |
5,554,402 |
|
Total borrowings |
$ |
342,637 |
|
|
$ |
464,460 |
|
|
$ |
485,729 |
|
|
$ |
523,369 |
|
|
$ |
382,687 |
|
|
$ |
344,959 |
|
|
$ |
375,124 |
|
|
$ |
318,143 |
|
Total shareholders’
equity |
$ |
1,079,622 |
|
|
$ |
1,040,826 |
|
|
$ |
1,002,091 |
|
|
$ |
966,585 |
|
|
$ |
951,727 |
|
|
$ |
921,493 |
|
|
$ |
890,498 |
|
|
$ |
859,779 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
Tangible common equity to tangible assets (the "tangible common
equity ratio") and tangible book value per common share are
non-GAAP financial measures derived from GAAP based amounts. The
Company calculates the tangible common equity ratio by excluding
the balance of intangible assets from common shareholders' equity
and dividing by tangible assets. The Company calculates tangible
book value per common share by dividing tangible common equity by
common shares outstanding, as compared to book value per
common share, which the Company calculates by dividing common
shareholders' equity by common shares outstanding. The Company
considers this information important to shareholders as tangible
equity is a measure that is consistent with the calculation of
capital for bank regulatory purposes, which excludes intangible
assets from the calculation of risk based ratios and as such is
useful for investors, regulators, management and others to evaluate
capital adequacy and to compare against other financial
institutions. |
(2)
Computed by dividing noninterest expense by the sum of net interest
income and noninterest income. |
(3) Excludes loans held
for sale. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EAGLE BANCORP, INC.
CONTACT:
Michael T. Flynn
301.986.1800
Eagle Bancorp (NASDAQ:EGBN)
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From Jun 2024 to Jul 2024
Eagle Bancorp (NASDAQ:EGBN)
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From Jul 2023 to Jul 2024