Eagle Bancorp, Inc. (the “Company”) (NASDAQ: EGBN), the parent
company of EagleBank, today announced quarterly net income of $37.2
million for the three months ended June 30, 2019, as compared to
$37.3 million net income for the three months ended June 30, 2018.
Net income per basic common share for the three months ended June
30, 2019 was $1.08 compared to $1.09 for the same period in 2018.
Net income per diluted common share was $1.08 for both the three
months ended June 30, 2019 and June 30, 2018. For the six months
ended June 30, 2019, the Company’s net income was $71.0 million, a
3% decrease from the $73.0 million of net income for the same
period in 2018. Net income per basic common share for the six
months ended June 30, 2019 was $2.06 compared to $2.13 for the same
period in 2018, a 3% decrease. Net income per diluted common share
for the six months ended June 30, 2019 was $2.05 compared to $2.12
for the same period in 2018, a 3% decrease.
“While we experienced a challenging interest
rate environment in the second quarter of 2019, we are pleased to
report another quarter of overall favorable earnings, supported by
continued loan and balance sheet growth, solid asset quality and
favorable operating leverage,” noted Susan G. Riel, President and
Chief Executive Officer of Eagle Bancorp, Inc. Ms. Riel continued,
“The Company’s assets ended the quarter at $8.7 billion,
representing 10% growth over the second quarter of 2018.
Second quarter 2019 earnings resulted in a return on average assets
(“ROAA”) of 1.74%, return on average common equity (“ROACE”) of
12.81%, and a return on average tangible common equity (“ROATCE”)
of 14.08%.”
The Company’s performance in the second quarter
of 2019 as compared to the second quarter of 2018 was highlighted
by growth in average total loans of 11%, growth in average total
deposits of 10%, a net interest margin of 3.91%, 5% growth in total
revenue to $87.7 million, and a 3% increase in noninterest
expenses, further improving our operating leverage and resulting in
an improved efficiency ratio of 38.04% versus 38.55% for the second
quarter of 2018. Additionally, annualized net charge-offs to
average loans was 0.08%. Ms. Riel noted, “The Company continues to
focus more on growth of average balances year over year and quarter
over quarter since that measure more directly impacts income
statement results.” Comparing average balances in the second
quarter of 2019 versus the first quarter of 2019, average loan
growth was 3% while average deposits declined by 1%. As average
U.S. Treasury rates in the two to five year area declined by about
35 basis points in the second quarter 2019 and the average yield
curve remained fairly flat, we experienced 11 basis points of net
interest margin compression as compared to the first quarter of
2019, as our cost of funds increased 11 basis points while the
yield on earning assets was unchanged. The yield on our substantial
level of variable rate assets was negatively impacted by the lower
interest rate environment in the second quarter of 2019, including
a decline in the average one month LIBOR rate, while our cost of
funds was impacted by our goal of funding solid new loan
opportunities. In spite of the margin compression, we continue to
believe that our net interest margin remains superior to other
banking companies.
Ms. Riel added, “In the second quarter of 2019,
period end total loan growth was 3.1% over March 31, 2019, while
total deposits increased 4.0% over March 31, 2019. New loans
settled in the second quarter of 2019 were substantially greater
than those closed in the first quarter of 2019, which had a 2.6%
growth rate. The total of unfunded loan commitments has remained
stable over the last six quarters at approximately $2.4 billion.
The Company continues to emphasize achieving core deposit growth.
The mix of noninterest deposits to total deposits averaged 31% in
the second quarter of 2019 as compared to 33% in both the second
quarter of 2018 and the first quarter of 2019.
The net interest margin was 3.91% for the second
quarter of 2019, down 24 basis points from the second quarter of
2018. Ms. Riel noted, “There has been a lesser focus on higher risk
and higher yielding construction lending and more attention towards
strong commercial real estate credits secured by stabilized income
producing properties. The yield on the loan portfolio was 5.61% for
the second quarter of 2019 as compared to 5.53% for the second
quarter of 2018 and 5.62% for the first quarter of 2019. The cost
of funds was 1.30% for the second quarter of 2019 as compared to
0.96% for the second quarter of 2018 and 1.19% for the first
quarter of 2019. We continue to see well structured new loan
opportunities and are having to pay higher rates to fund that
growth. Even considering the decline in the net interest margin,
the Company’s net interest income increased 4% in the second
quarter of 2019 over 2018 as the Company has continued its emphasis
on disciplined pricing for both new loans and funding sources in
the face of competitive pressures.”
For the first six months of 2019, average total
loans increased 10% over the same period in 2018, and total
deposits averaged 13% higher for the first six months of 2019 as
compared to the first six months of 2018.
Total revenue (net interest income plus
noninterest income) for the second quarter of 2019 was $87.7
million, or 5% above the $83.8 million of total revenue earned for
the second quarter of 2018 and was slightly higher than the $87.3
million of revenue earned in the first quarter of 2019. For the six
month periods ended June 30, total revenue was $175.0 million for
2019 as compared to $164.8 million in 2018, a 6%
increase.
The primary driver of the Company’s revenue
growth for the second quarter of 2019 as compared to the second
quarter of 2018 was its net interest income growth of 4% ($81.3
million versus $78.2 million). Noninterest income (excluding
investment gains) increased by 5% in the second quarter 2019 over
2018 ($5.8 million versus $5.5 million), due substantially to
increased sales of residential mortgage loans and the resulting
gains on the sale of these loans, partially offset by lower deposit
service charges.
Asset quality measures remained solid at June
30, 2019. Net charge-offs (annualized) were 0.08% of average loans
for the second quarter of 2019, as compared to 0.05% of average
loans for the second quarter of 2018. At June 30, 2019, the
Company’s nonperforming loans amounted to $37.4 million (0.51% of
total loans) as compared to $10.9 million (0.16% of total loans) at
June 30, 2018, and $16.3 million (0.23% of total loans) at December
31, 2018. Nonperforming assets amounted to $38.8 million (0.45% of
total assets) at June 30, 2019 compared to $12.3 million (0.16% of
total assets) at June 30, 2018 and $17.7 million (0.21% of total
assets) at December 31, 2018.
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 allowance for credit losses, at 0.98% of total loans
(excluding loans held for sale) at June 30, 2019, is adequate to
absorb potential credit losses within the loan portfolio at that
date. The allowance for credit losses was 1.00% at both June 30,
2018 and December 31, 2018. The allowance at June 30, 2019 for
credit losses represented 193% of nonperforming loans, as compared
to 612% at June 30, 2018 and 430% at December 31, 2018.
“The Company’s productivity continued to be very
favorable in the second quarter,” noted Ms. Riel. The efficiency
ratio of 38.04% reflects management’s ongoing efforts to maintain
superior operating leverage. The annualized level of noninterest
expenses as a percentage of average assets has declined to 1.55% in
the second quarter of 2019 as compared to 1.66% in the second
quarter of 2018. A relatively stable staff, capacity utilization,
branch rationalization, a low level of problem assets, and
leveraging of other fixed costs have been the major reasons for
improved operating leverage. The Company continues to make
investments in its infrastructure including IT systems and
resources and online client services. Our goal is to maintain
strong operating performance without inhibiting growth or
negatively impacting our ability to service our customers. Ms. Riel
further noted, “We will continue to maintain strict oversight of
expenses, while retaining an infrastructure to remain competitive,
support our growth initiatives, and proactively enhance our risk
management systems as we continue to grow.”
Total assets at June 30, 2019 were $8.67
billion, a 10% increase as compared to $7.88 billion at June 30,
2018, and a 3% increase as compared to $8.39 billion at December
31, 2018. Total loans (excluding loans held for sale) were $7.39
billion at June 30, 2019, an 11% increase as compared to $6.65
billion at June 30, 2018, and a 6% increase as compared to $6.99
billion at December 31, 2018. Loans held for sale amounted to $37.5
million at June 30, 2019 as compared to $30.5 million at June 30,
2018, a 23% increase, and $19.3 million at December 31, 2018, a 95%
increase. The investment portfolio totaled $745.3 million at June
30, 2019, a 13% increase from the $656.9 million balance at June
30, 2018. As compared to December 31, 2018, the investment
portfolio at June 30, 2019 decreased by $38.8 million, or 5%.
Total deposits at June 30, 2019 were $6.95
billion, compared to deposits of $6.27 billion at June 30, 2018, an
11% increase, and a slight decrease compared to deposits of $6.97
billion at December 31, 2018. Total borrowed funds (excluding
customer repurchase agreements) were $442.5 million at June 30,
2019, $517.1 million at June 30, 2018, and $217.3 million at
December 31, 2018. We continue to work on expanding the breadth and
depth of our existing relationships while we pursue building new
relationships.
Total shareholders’ equity at June 30, 2019
increased 16%, to $1.18 billion, compared to $1.02 billion at June
30, 2018, and increased 7%, from $1.11 billion at December 31,
2018. The Company’s capital position remains substantially in
excess of regulatory requirements for well capitalized status, with
a total risk based capital ratio of 16.36% at June 30, 2019, as
compared to 15.59% at June 30, 2018, and 16.08% at December 31,
2018. In addition, the tangible common equity ratio was 12.60% at
June 30, 2019, compared to 11.79% at June 30, 2018 and 12.11% at
December 31, 2018. As a result of our strong capital position, the
Company reinstituted a quarterly cash dividend in the second
quarter of 2019. A $0.22 per share dividend was declared May 15th
to shareholders of record on May 31st and was paid June 14,
2019.
Analysis of the three months ended June
30, 2019 compared to June 30, 2018
For the three months ended June 30, 2019, the
Company reported an annualized ROAA of 1.74% as compared to 1.92%
for the three months ended June 30, 2018. The annualized ROACE for
the three months ended June 30, 2019 was 12.81% as compared to
14.93% for the three months ended June 30, 2018. The annualized
ROATCE for the three months ended June 30, 2019 was 14.08% as
compared to 16.71% for the three months ended June 30, 2018.
Net interest income increased 4% for the three
months ended June 30, 2019 over the same period in 2018 ($81.3
million versus $78.2 million), resulting from growth in average
earning assets of 10%. The net interest margin was 3.91% for the
three months ended June 30, 2019, as compared to 4.15% for the
three months ended June 30, 2018. The Company believes its current
net interest margin remains favorable compared to peer banking
companies and that its disciplined approach to managing the loan
portfolio yield to 5.61% for the second quarter of 2019 (as
compared to 5.53% for the same period in 2018) has been a
significant factor in its overall profitability.
The provision for credit losses was $3.6 million
for the three months ended June 30, 2019 as compared to $1.7
million for the three months ended June 30, 2018. Net charge-offs
of $1.5 million in the second quarter of 2019 represented an
annualized 0.08% of average loans, excluding loans held for sale,
as compared to $848 thousand, or an annualized 0.05% of average
loans, excluding loans held for sale, in the second quarter of
2018. Net charge-offs in the second quarter of 2019 were
attributable primarily to commercial real estate loans ($1.5
million).
Noninterest income for the three months ended
June 30, 2019 increased to $6.4 million from $5.6 million for the
three months ended June 30, 2018, a 15% increase, due substantially
to $537 thousand higher gains on the sale of investment securities
and $362 thousand higher gains on the sale of residential mortgage
loans ($1.9 million versus $1.5 million) resulting from higher
volume as compared to 2018. Residential mortgage loans closed were
$152 million for the second quarter of 2019 versus $126 million for
the second quarter of 2018.
The efficiency ratio, which measures the ratio
of noninterest expense to total revenue, was 38.04% for the second
quarter of 2019, as compared to 38.55% for the second quarter of
2018. Noninterest expenses totaled $33.4 million for the three
months ended June 30, 2019, as compared to $32.3 million for the
three months ended June 30, 2018, a 3% increase. Data processing
expense increased by $199 thousand due primarily to the costs of
software and infrastructure investments. Legal, accounting and
professional fees increased $561 thousand from $2.2 million to $2.7
million, the reasons of which are further discussed below. Other
expenses increased $448 thousand, due primarily to $354 thousand
higher real estate and utility costs on special assets.
Analysis of the six months ended June
30, 2019 compared to June 30, 2018
For the six months ended June 30, 2019, the
Company reported an annualized ROAA of 1.68% as compared to 1.91%
for the six months ended June 30, 2018. The annualized ROACE for
the six months ended June 30, 2019 was 12.47% as compared to 14.96%
for the six months ended June 30, 2018. The annualized ROATCE for
the six months ended June 30, 2019 was 13.73% as compared to 16.78%
for the six months ended June 30, 2018.
Net interest income increased 5% for the six
months ended June 30, 2019 over the same period in 2018 ($162.3
million versus $154.0 million), resulting from growth in average
earning assets of 11%. The net interest margin was 3.97% for the
six months ended June 30, 2019 and 4.16% for the same period in
2018. The Company believes its current net interest margin remains
favorable compared to peer banking companies and that its
disciplined approach to managing the loan portfolio yield to 5.62%
for the first six months of 2019 (as compared to 5.42% for the same
period in 2018) has been a significant factor in its overall
profitability.
The provision for credit losses was $7.0 million
for the six months ended June 30, 2019 as compared to $3.6 million
for the six months ended June 30, 2018. The higher provisioning for
the six months ended June 30, 2019, as compared to the same period
in 2018, is due primarily to higher net charge-offs. Net
charge-offs of $4.8 million for the six months ended June 30, 2019
represented an annualized 0.13% of average loans, excluding loans
held for sale, as compared to $1.8 million, or an annualized 0.05%
of average loans, excluding loans held for sale, in the first six
months of 2018. Net charge-offs in the first six months of 2019
were attributable primarily to commercial real estate loans ($5.0
million) offset by a recovery in commercial loans ($162
thousand).
Noninterest income for the six months ended June
30, 2019 increased to $12.7 million from $10.9 million for the six
months ended June 30, 2018, a 17% increase, due substantially to
$1.4 million higher gains on the sale of investment securities
primarily due to $829 thousand of noninterest income recognized
during March 2019 on interest rate swap terminations, and $288
thousand higher gains on the sale of residential mortgage loans
($3.2 million versus $2.9 million) resulting from higher volume as
compared to 2018. Residential mortgage loans closed were $246
million for the six months ended June 30, 2019 versus $226 million
for the same period in 2018.
Noninterest expenses totaled $71.7 million for
the six months ended June 30, 2019, as compared to $63.4 million
for the six months ended June 30, 2018, a 13% increase. Cost
increases for salaries and benefits for the six months ended June
30, 2019 were $6.7 million, due primarily to $6.2 million of
nonrecurring charges related to share based compensation and the
retirement of our former Chairman and Chief Executive Officer, Mr.
Ronald D. Paul, and secondly to increased overall headcount.
Marketing and advertising increased by $188 thousand due primarily
to increased digital, radio and television advertising spend. Data
processing expense increased by $257 thousand due primarily to the
costs of software and infrastructure investments. Legal,
accounting, and professional fees have decreased $703 thousand from
$5.2 million to $4.4 million, the reasons of which are further
discussed below. Other expenses increased $1.5 million, due
primarily to broker fees ($554 thousand) and real estate and
utility costs on special assets ($369 thousand). For the first six
months of 2019, the efficiency ratio was 40.95% as compared to
38.47% for the same period in 2018.
During the three month periods ended June 30,
2019 and June 30, 2018, the Company incurred legal, accounting and
professional fees and expenses of $2.7 million and $2.2 million,
respectively, which represented an increase of 26%. For the six
month periods ended June 30, 2019 and June 30, 2018, the Company
incurred legal, accounting and professional fees and expenses of
$4.4 million and $5.2 million, respectively, which represented a
decrease of 14%. During the three months ended June 30, 2018, these
expenses related substantially to the Company’s engagement of
independent accounting, legal and compliance consultants who
conducted various investigations for the Company, in addition to
consulting costs to enhance our governance and risk management
systems. During the three months ended June 30, 2019, such expenses
related primarily to legal fees and expenditures in connection with
our responses to investigations and related document requests and
subpoenas from government agencies examining matters, including the
Company’s identification, classification and disclosure of related
party transactions; the retirement of certain former officers and
directors; and the relationship of the Company and certain of its
former officers and directors with a local public official. The
Company has D&O insurance that may provide reimbursement for
all or part of advancement and indemnification costs requested by
current and former officers and directors, and those costs can not
be estimated at this time. While we are unable to estimate the
amount of these legal expenditures at this time, the Company
expects that it will continue to incur elevated levels of legal and
professional fees and expenses for at least the remainder of 2019
as it continues to cooperate with these investigations. Other than
these increased costs, we do not believe at this time that the
resolution of these investigations will be materially adverse to
the Company. As a result of these ongoing investigations, there
have been no regulatory restrictions placed on the Company’s
ability to fully engage in its banking business as presently
conducted. We are, however, unable to predict the duration, scope
or outcome of these investigations.
The effective income tax rate for the second
quarter of 2019 was 26.6% as compared to 25.1% for the second
quarter of 2018 due primarily to a decrease in federal tax credits
and an increase in nondeductible expenses.
The financial information that follows provides
more detail on the Company’s financial performance for the three
and six months ended June 30, 2019 as compared to the three and six
months ended June 30, 2018 as well as providing eight quarters of
trend data. Persons wishing to obtain additional information should
refer to the Company’s Form 10-K for the year ended December 31,
2018 and other reports filed with the Securities and Exchange
Commission (the “SEC”).
About Eagle Bancorp: The
Company is the holding company for EagleBank, which commenced
operations in 1998. The Bank is headquartered in Bethesda,
Maryland, and operates through twenty branch offices, located in
Suburban Maryland, Washington, D.C. and Northern Virginia. The
Company focuses on building relationships with businesses,
professionals and individuals in its marketplace.
Conference Call: Eagle Bancorp
will host a conference call to discuss its second quarter 2019
financial results on Thursday, July 18, 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 2686336, 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 August 1, 2019.
Forward-looking Statements:
This press release contains forward-looking statements within the
meaning of the Securities Exchange Act of 1934, as amended,
including statements of goals, intentions, and expectations as to
future trends, plans, events or results of Company operations and
policies and regarding general economic conditions. In some cases,
forward-looking statements can be identified by use of words such
as “may,” “will,” “anticipates,” “believes,” “expects,” “plans,”
“estimates,” “potential,” “continue,” “should,” and similar words
or phrases. These statements are based upon current and anticipated
economic conditions, nationally and in the Company’s market,
interest rates and interest rate policy, competitive factors, and
other conditions which by their nature, are not susceptible to
accurate forecast and are subject to significant uncertainty.
Because of these uncertainties and the assumptions on which this
discussion and the forward-looking statements are based, actual
future operations and results in the future may differ materially
from those indicated herein. For details on factors that could
affect these expectations, see the risk factors and other
cautionary language included in the Company’s Annual Report on Form
10-K for the year ended December 31, 2018 and in other periodic and
current reports filed with the SEC. Readers are cautioned against
placing undue reliance on any such forward-looking statements. The
Company’s past results are not necessarily indicative of future
performance.
Eagle Bancorp,
Inc. |
|
|
|
|
|
|
|
Consolidated Financial
Highlights (Unaudited) |
|
|
|
|
|
|
|
(dollars in thousands, except
per share data) |
|
|
|
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|
|
2019 |
|
|
|
2018 |
|
|
|
2019 |
|
|
|
2018 |
|
Income
Statements: |
|
|
|
|
|
|
|
Total interest income |
$ |
108,279 |
|
|
$ |
96,296 |
|
|
$ |
213,413 |
|
|
$ |
185,345 |
|
Total interest expense |
|
26,950 |
|
|
|
18,086 |
|
|
|
51,067 |
|
|
|
31,355 |
|
Net interest income |
|
81,329 |
|
|
|
78,210 |
|
|
|
162,346 |
|
|
|
153,990 |
|
Provision for credit
losses |
|
3,600 |
|
|
|
1,650 |
|
|
|
6,960 |
|
|
|
3,619 |
|
Net interest income after
provision for credit losses |
|
77,729 |
|
|
|
76,560 |
|
|
|
155,386 |
|
|
|
150,371 |
|
Noninterest income (before
investment gains) |
|
5,797 |
|
|
|
5,527 |
|
|
|
11,176 |
|
|
|
10,789 |
|
Gain on sale of investment
securities |
|
563 |
|
|
|
26 |
|
|
|
1,475 |
|
|
|
68 |
|
Total noninterest income |
|
6,360 |
|
|
|
5,553 |
|
|
|
12,651 |
|
|
|
10,857 |
|
Total noninterest expense |
|
33,359 |
|
|
|
32,289 |
|
|
|
71,663 |
|
|
|
63,410 |
|
Income before income tax
expense |
|
50,730 |
|
|
|
49,824 |
|
|
|
96,374 |
|
|
|
97,818 |
|
Income tax expense |
|
13,487 |
|
|
|
12,528 |
|
|
|
25,382 |
|
|
|
24,807 |
|
Net income |
$ |
37,243 |
|
|
$ |
37,296 |
|
|
$ |
70,992 |
|
|
$ |
73,011 |
|
|
|
|
|
|
|
|
|
Per Share
Data: |
|
|
|
|
|
|
|
Earnings per weighted average
common share, basic |
$ |
1.08 |
|
|
$ |
1.09 |
|
|
$ |
2.06 |
|
|
$ |
2.13 |
|
Earnings per weighted average
common share, diluted |
$ |
1.08 |
|
|
$ |
1.08 |
|
|
$ |
2.05 |
|
|
$ |
2.12 |
|
Weighted average common shares
outstanding, basic |
|
34,540,152 |
|
|
|
34,305,693 |
|
|
|
34,510,625 |
|
|
|
34,283,412 |
|
Weighted average common shares
outstanding, diluted |
|
34,565,253 |
|
|
|
34,448,354 |
|
|
|
34,549,412 |
|
|
|
34,427,613 |
|
Actual shares outstanding at
period end |
|
34,539,853 |
|
|
|
34,305,071 |
|
|
|
34,539,853 |
|
|
|
34,305,071 |
|
Book value per common share at
period end |
$ |
34.30 |
|
|
$ |
29.82 |
|
|
$ |
34.30 |
|
|
$ |
29.82 |
|
Tangible book value per common
share at period end (1) |
$ |
31.25 |
|
|
$ |
26.71 |
|
|
$ |
31.25 |
|
|
$ |
26.71 |
|
|
|
|
|
|
|
|
|
Performance Ratios
(annualized): |
|
|
|
|
|
|
|
Return on average assets |
|
1.74% |
|
|
|
1.92% |
|
|
|
1.68% |
|
|
|
1.91% |
|
Return on average common
equity |
|
12.81% |
|
|
|
14.93% |
|
|
|
12.47% |
|
|
|
14.96% |
|
Return on average tangible
common equity |
|
14.08% |
|
|
|
16.71% |
|
|
|
13.73% |
|
|
|
16.78% |
|
Net interest margin |
|
3.91% |
|
|
|
4.15% |
|
|
|
3.97% |
|
|
|
4.16% |
|
Efficiency ratio
(2) |
|
38.04% |
|
|
|
38.55% |
|
|
|
40.95% |
|
|
|
38.47% |
|
|
|
|
|
|
|
|
|
Other
Ratios: |
|
|
|
|
|
|
|
Allowance for credit losses to
total loans (3) |
|
0.98% |
|
|
|
1.00% |
|
|
|
0.98% |
|
|
|
1.00% |
|
Allowance for credit losses to
total nonperforming loans |
|
192.70% |
|
|
|
612.42% |
|
|
|
192.70% |
|
|
|
612.42% |
|
Nonperforming loans to total
loans (3) |
|
0.51% |
|
|
|
0.16% |
|
|
|
0.51% |
|
|
|
0.16% |
|
Nonperforming assets to total
assets |
|
0.45% |
|
|
|
0.16% |
|
|
|
0.45% |
|
|
|
0.16% |
|
Net charge-offs (annualized)
to average loans (3) |
|
0.08% |
|
|
|
0.05% |
|
|
|
0.13% |
|
|
|
0.05% |
|
Common equity to total
assets |
|
13.66% |
|
|
|
12.98% |
|
|
|
13.66% |
|
|
|
12.98% |
|
Tier 1 capital (to average
assets) |
|
12.66% |
|
|
|
11.97% |
|
|
|
12.66% |
|
|
|
11.97% |
|
Total capital (to risk
weighted assets) |
|
16.36% |
|
|
|
15.59% |
|
|
|
16.36% |
|
|
|
15.59% |
|
Common equity tier 1 capital
(to risk weighted assets) |
|
12.87% |
|
|
|
11.89% |
|
|
|
12.87% |
|
|
|
11.89% |
|
Tangible common equity ratio
(1) |
|
12.60% |
|
|
|
11.79% |
|
|
|
12.60% |
|
|
|
11.79% |
|
|
|
|
|
|
|
|
|
Loan Balances - Period
End (in thousands): |
|
|
|
|
|
|
|
Commercial and Industrial |
$ |
1,475,201 |
|
|
$ |
1,467,089 |
|
|
$ |
1,475,201 |
|
|
$ |
1,467,089 |
|
Commercial real estate - owner
occupied |
$ |
970,850 |
|
|
$ |
852,697 |
|
|
$ |
970,850 |
|
|
$ |
852,697 |
|
Commercial real estate -
income producing |
$ |
3,666,815 |
|
|
$ |
3,000,386 |
|
|
$ |
3,666,815 |
|
|
$ |
3,000,386 |
|
1-4 Family mortgage |
$ |
105,191 |
|
|
$ |
103,415 |
|
|
$ |
105,191 |
|
|
$ |
103,415 |
|
Construction - commercial and
residential |
$ |
1,012,789 |
|
|
$ |
1,087,287 |
|
|
$ |
1,012,789 |
|
|
$ |
1,087,287 |
|
Construction - C&I (owner
occupied) |
$ |
76,324 |
|
|
$ |
48,480 |
|
|
$ |
76,324 |
|
|
$ |
48,480 |
|
Home equity |
$ |
83,447 |
|
|
$ |
89,539 |
|
|
$ |
83,447 |
|
|
$ |
89,539 |
|
Other consumer |
$ |
1,998 |
|
|
$ |
2,811 |
|
|
$ |
1,998 |
|
|
$ |
2,811 |
|
|
|
|
|
|
|
|
|
Average Balances (in
thousands): |
|
|
|
|
|
|
|
Total assets |
$ |
8,595,523 |
|
|
$ |
7,789,564 |
|
|
$ |
8,525,988 |
|
|
$ |
7,694,055 |
|
Total earning assets |
$ |
8,328,323 |
|
|
$ |
7,558,138 |
|
|
$ |
8,257,411 |
|
|
$ |
7,466,348 |
|
Total loans |
$ |
7,260,899 |
|
|
$ |
6,569,931 |
|
|
$ |
7,150,300 |
|
|
$ |
6,502,207 |
|
Total deposits |
$ |
6,893,981 |
|
|
$ |
6,269,126 |
|
|
$ |
6,940,467 |
|
|
$ |
6,166,640 |
|
Total borrowings |
$ |
470,214 |
|
|
$ |
485,729 |
|
|
$ |
368,776 |
|
|
$ |
504,444 |
|
Total shareholders’
equity |
$ |
1,166,487 |
|
|
$ |
1,002,091 |
|
|
$ |
1,147,782 |
|
|
$ |
984,436 |
|
(1) Tangible common equity to tangible assets
(the "tangible common equity ratio") and tangible book value per
common share are non-GAAP financial measures derived from GAAP
based amounts. The Company calculates the tangible common equity
ratio by excluding the balance of intangible assets from common
shareholders' equity and dividing by tangible assets. The Company
calculates tangible book value per common share by dividing
tangible common equity by common shares outstanding, as compared to
book value per common share, which the Company calculates by
dividing common shareholders' equity by common shares outstanding.
The Company calculates return on average tangible common equity by
dividing annualized year to date net income by tangible common
equity. The Company considers this information important to
shareholders as tangible equity is a measure that is consistent
with the calculation of capital for bank regulatory purposes, which
excludes intangible assets from the calculation of risk based
ratios and as such is useful for investors, regulators, management
and others to evaluate capital adequacy and to compare against
other financial institutions. The table below provides a
reconciliation of these non-GAAP financial measures with financial
measures defined by GAAP.
GAAP Reconciliation
(Unaudited) |
|
|
|
|
|
|
|
|
|
(dollars in thousands except
per share data) |
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Six Months Ended |
|
Twelve Months Ended |
|
Three Months Ended |
|
Six Months Ended |
|
June 30, 2019 |
|
June 30, 2019 |
|
December 31, 2018 |
|
June 30, 2018 |
|
June 30, 2018 |
Common shareholders'
equity |
|
|
$ |
1,184,582 |
|
|
$ |
1,108,941 |
|
|
|
|
$ |
1,023,137 |
|
Less: Intangible assets |
|
|
|
(105,219 |
) |
|
|
(105,766 |
) |
|
|
|
|
(106,820 |
) |
Tangible common
equity |
|
|
$ |
1,079,363 |
|
|
$ |
1,003,175 |
|
|
|
|
$ |
916,317 |
|
|
|
|
|
|
|
|
|
|
|
Book value per common
share |
|
|
$ |
34.30 |
|
|
$ |
32.25 |
|
|
|
|
$ |
29.82 |
|
Less: Intangible book value
per common share |
|
|
|
(3.05 |
) |
|
|
(3.08 |
) |
|
|
|
|
(3.11 |
) |
Tangible book value
per common share |
|
|
$ |
31.25 |
|
|
$ |
29.17 |
|
|
|
|
$ |
26.71 |
|
|
|
|
|
|
|
|
|
|
|
Total assets |
|
|
$ |
8,670,003 |
|
|
$ |
8,389,137 |
|
|
|
|
$ |
7,880,017 |
|
Less: Intangible assets |
|
|
|
(105,219 |
) |
|
|
(105,766 |
) |
|
|
|
|
(106,820 |
) |
Tangible
assets |
|
|
$ |
8,564,784 |
|
|
$ |
8,283,371 |
|
|
|
|
$ |
7,773,197 |
|
Tangible common equity
ratio |
|
|
|
12.60% |
|
|
|
12.11% |
|
|
|
|
|
11.79% |
|
|
|
|
|
|
|
|
|
|
|
Average common shareholders' equity |
$ |
1,166,487 |
|
|
$ |
1,147,782 |
|
|
$ |
1,022,642 |
|
|
$ |
1,002,091 |
|
|
$ |
984,436 |
|
Less: Average intangible
assets |
|
(105,280 |
) |
|
|
(105,430 |
) |
|
|
(106,806 |
) |
|
|
(106,955 |
) |
|
|
(107,112 |
) |
Average tangible
common equity |
$ |
1,061,206 |
|
|
$ |
1,042,352 |
|
|
$ |
915,836 |
|
|
$ |
895,136 |
|
|
$ |
877,324 |
|
|
|
|
|
|
|
|
|
|
|
Net Income Available to Common
Shareholders |
$ |
37,243 |
|
|
$ |
70,992 |
|
|
$ |
152,276 |
|
|
$ |
37,295 |
|
|
$ |
73,011 |
|
Average tangible common
equity |
$ |
1,061,206 |
|
|
$ |
1,042,352 |
|
|
$ |
915,836 |
|
|
$ |
895,136 |
|
|
$ |
877,324 |
|
Annualized Return on
Average Tangible Common Equity (1) |
|
14.08% |
|
|
|
13.73% |
|
|
|
16.63% |
|
|
|
16.71% |
|
|
|
16.78% |
|
|
|
|
|
|
|
|
|
|
|
(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. |
|
|
|
|
|
Consolidated Balance
Sheets (Unaudited) |
|
|
|
|
|
(dollars in thousands, except
per share data) |
|
|
|
|
|
|
|
|
|
|
|
Assets |
June 30, 2019 |
|
December 31, 2018 |
|
June 30, 2018 |
Cash and due from banks |
$ |
6,735 |
|
|
$ |
6,773 |
|
|
$ |
6,873 |
|
Federal funds sold |
|
17,914 |
|
|
|
11,934 |
|
|
|
9,251 |
|
Interest bearing deposits with
banks and other short-term investments |
|
171,985 |
|
|
|
303,157 |
|
|
|
249,667 |
|
Investment securities
available for sale, at fair value |
|
745,343 |
|
|
|
784,139 |
|
|
|
656,942 |
|
Federal Reserve and Federal
Home Loan Bank stock |
|
33,993 |
|
|
|
23,506 |
|
|
|
35,875 |
|
Loans held for sale |
|
37,506 |
|
|
|
19,254 |
|
|
|
30,493 |
|
Loans |
|
7,392,615 |
|
|
|
6,991,447 |
|
|
|
6,651,704 |
|
Less allowance for credit
losses |
|
(72,086 |
) |
|
|
(69,944 |
) |
|
|
(66,609 |
) |
Loans, net |
|
7,320,529 |
|
|
|
6,921,503 |
|
|
|
6,585,095 |
|
Premises and equipment,
net |
|
15,176 |
|
|
|
16,851 |
|
|
|
19,055 |
|
Operating lease right-of-use
assets |
|
28,214 |
|
|
|
- |
|
|
|
- |
|
Deferred income taxes |
|
30,220 |
|
|
|
33,027 |
|
|
|
30,562 |
|
Bank owned life insurance |
|
74,295 |
|
|
|
73,441 |
|
|
|
62,647 |
|
Intangible assets, net |
|
105,219 |
|
|
|
105,766 |
|
|
|
106,820 |
|
Other real estate owned |
|
1,394 |
|
|
|
1,394 |
|
|
|
1,394 |
|
Other assets |
|
81,480 |
|
|
|
88,392 |
|
|
|
85,343 |
|
Total
Assets |
$ |
8,670,003 |
|
|
$ |
8,389,137 |
|
|
$ |
7,880,017 |
|
|
|
|
|
|
|
Liabilities and
Shareholders' Equity |
|
|
|
|
|
Deposits: |
|
|
|
|
|
Noninterest bearing demand |
$ |
1,873,902 |
|
|
$ |
2,104,220 |
|
|
$ |
2,022,916 |
|
Interest bearing transaction |
|
862,553 |
|
|
|
593,107 |
|
|
|
435,484 |
|
Savings and money market |
|
2,712,143 |
|
|
|
2,949,559 |
|
|
|
2,658,768 |
|
Time, $100,000 or more |
|
801,469 |
|
|
|
801,957 |
|
|
|
675,528 |
|
Other time |
|
699,825 |
|
|
|
525,442 |
|
|
|
476,062 |
|
Total deposits |
|
6,949,892 |
|
|
|
6,974,285 |
|
|
|
6,268,758 |
|
Customer repurchase
agreements |
|
31,669 |
|
|
|
30,413 |
|
|
|
29,135 |
|
Other short-term
borrowings |
|
225,000 |
|
|
|
- |
|
|
|
300,000 |
|
Long-term borrowings |
|
217,491 |
|
|
|
217,296 |
|
|
|
217,100 |
|
Operating lease
liabilities |
|
31,659 |
|
|
|
- |
|
|
|
- |
|
Other liabilities |
|
29,710 |
|
|
|
58,202 |
|
|
|
41,887 |
|
Total liabilities |
|
7,485,421 |
|
|
|
7,280,196 |
|
|
|
6,856,880 |
|
|
|
|
|
|
|
Shareholders'
Equity |
|
|
|
|
|
Common stock, par value $.01
per share; shares authorized 100,000,000, shares |
|
|
|
|
|
issued and outstanding 34,539,853, 34,387,919, and 34,305,071,
respectively |
|
343 |
|
|
|
342 |
|
|
|
341 |
|
Additional paid in
capital |
|
532,585 |
|
|
|
528,380 |
|
|
|
524,176 |
|
Retained earnings |
|
647,887 |
|
|
|
584,494 |
|
|
|
505,229 |
|
Accumulated other
comprehensive income (loss) |
|
3,767 |
|
|
|
(4,275 |
) |
|
|
(6,609 |
) |
Total Shareholders' Equity |
|
1,184,582 |
|
|
|
1,108,941 |
|
|
|
1,023,137 |
|
Total Liabilities and Shareholders' Equity |
$ |
8,670,003 |
|
|
$ |
8,389,137 |
|
|
$ |
7,880,017 |
|
|
|
|
|
|
` |
Eagle Bancorp,
Inc. |
|
|
|
|
|
|
|
Consolidated
Statements of Income (Unaudited) |
|
|
|
|
|
|
|
(dollars in thousands, except
per share data) |
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
Interest Income |
|
2019 |
|
|
2018 |
|
|
2019 |
|
|
2018 |
Interest and fees on loans |
$ |
101,889 |
|
$ |
90,924 |
|
$ |
199,710 |
|
$ |
175,354 |
Interest and dividends on investment securities |
|
5,238 |
|
|
4,058 |
|
|
10,836 |
|
|
7,650 |
Interest on balances with other banks and short-term
investments |
|
1,105 |
|
|
1,274 |
|
|
2,771 |
|
|
2,255 |
Interest on federal funds sold |
|
47 |
|
|
40 |
|
|
96 |
|
|
86 |
Total interest income |
|
108,279 |
|
|
96,296 |
|
|
213,413 |
|
|
185,345 |
Interest
Expense |
|
|
|
|
|
|
|
Interest on deposits |
|
22,461 |
|
|
14,048 |
|
|
43,361 |
|
|
23,177 |
Interest on customer repurchase agreements |
|
75 |
|
|
62 |
|
|
173 |
|
|
112 |
Interest on other short-term borrowings |
|
1,435 |
|
|
997 |
|
|
1,575 |
|
|
2,108 |
Interest on long-term borrowings |
|
2,979 |
|
|
2,979 |
|
|
5,958 |
|
|
5,958 |
Total interest expense |
|
26,950 |
|
|
18,086 |
|
|
51,067 |
|
|
31,355 |
Net Interest
Income |
|
81,329 |
|
|
78,210 |
|
|
162,346 |
|
|
153,990 |
Provision for Credit
Losses |
|
3,600 |
|
|
1,650 |
|
|
6,960 |
|
|
3,619 |
Net Interest Income
After Provision For Credit Losses |
|
77,729 |
|
|
76,560 |
|
|
155,386 |
|
|
150,371 |
|
|
|
|
|
|
|
|
Noninterest
Income |
|
|
|
|
|
|
|
Service charges on deposits |
|
1,606 |
|
|
1,760 |
|
|
3,300 |
|
|
3,374 |
Gain on sale of loans |
|
1,923 |
|
|
1,675 |
|
|
3,311 |
|
|
3,198 |
Gain on sale of investment securities |
|
563 |
|
|
26 |
|
|
1,475 |
|
|
68 |
Increase in the cash surrender value of bank owned life
insurance |
|
429 |
|
|
356 |
|
|
854 |
|
|
700 |
Other income |
|
1,839 |
|
|
1,736 |
|
|
3,711 |
|
|
3,517 |
Total noninterest income |
|
6,360 |
|
|
5,553 |
|
|
12,651 |
|
|
10,857 |
Noninterest
Expense |
|
|
|
|
|
|
|
Salaries and employee benefits |
|
17,743 |
|
|
17,812 |
|
|
41,387 |
|
|
34,670 |
Premises and equipment expenses |
|
3,652 |
|
|
3,873 |
|
|
7,504 |
|
|
7,802 |
Marketing and advertising |
|
1,268 |
|
|
1,291 |
|
|
2,416 |
|
|
2,228 |
Data processing |
|
2,603 |
|
|
2,404 |
|
|
4,978 |
|
|
4,721 |
Legal, accounting and professional fees |
|
2,740 |
|
|
2,179 |
|
|
4,449 |
|
|
5,152 |
FDIC insurance |
|
1,126 |
|
|
951 |
|
|
2,242 |
|
|
1,626 |
Other expenses |
|
4,227 |
|
|
3,779 |
|
|
8,687 |
|
|
7,211 |
Total noninterest expense |
|
33,359 |
|
|
32,289 |
|
|
71,663 |
|
|
63,410 |
Income Before Income
Tax Expense |
|
50,730 |
|
|
49,824 |
|
|
96,374 |
|
|
97,818 |
Income Tax
Expense |
|
13,487 |
|
|
12,528 |
|
|
25,382 |
|
|
24,807 |
Net
Income |
$ |
37,243 |
|
$ |
37,296 |
|
$ |
70,992 |
|
$ |
73,011 |
|
|
|
|
|
|
|
|
Earnings Per Common
Share |
|
|
|
|
|
|
|
Basic |
$ |
1.08 |
|
$ |
1.09 |
|
$ |
2.06 |
|
$ |
2.13 |
Diluted |
$ |
1.08 |
|
$ |
1.08 |
|
$ |
2.05 |
|
$ |
2.12 |
|
|
|
|
|
|
|
|
Eagle Bancorp, Inc. |
Consolidated Average Balances, Interest Yields And Rates
(Unaudited) |
(dollars in thousands) |
|
|
|
|
|
|
|
|
|
Three Months Ended June 30, |
|
|
2019 |
|
|
|
2018 |
|
|
Average Balance |
Interest |
Average Yield/Rate |
|
Average Balance |
Interest |
Average Yield/Rate |
ASSETS |
|
|
|
|
|
|
|
Interest earning assets: |
|
|
|
|
|
|
|
Interest bearing deposits with other banks and other short-term
investments |
$ |
209,096 |
$ |
1,105 |
2.12 |
% |
|
$ |
302,991 |
$ |
1,274 |
1.69 |
% |
Loans held for sale
(1) |
|
34,760 |
|
349 |
4.02 |
% |
|
|
25,621 |
|
291 |
4.54 |
% |
Loans (1)
(2) |
|
7,260,899 |
|
101,540 |
5.61 |
% |
|
|
6,569,931 |
|
90,633 |
5.53 |
% |
Investment securities
available for sale (2) |
|
803,207 |
|
5,238 |
2.62 |
% |
|
|
643,409 |
|
4,058 |
2.53 |
% |
Federal funds sold |
|
20,361 |
|
47 |
0.93 |
% |
|
|
16,186 |
|
40 |
0.99 |
% |
Total interest earning assets |
|
8,328,323 |
|
108,279 |
5.21 |
% |
|
|
7,558,138 |
|
96,296 |
5.11 |
% |
|
|
|
|
|
|
|
|
Total noninterest earning
assets |
|
337,172 |
|
|
|
|
297,601 |
|
|
Less: allowance for credit
losses |
|
69,972 |
|
|
|
|
66,175 |
|
|
Total noninterest earning assets |
|
267,200 |
|
|
|
|
231,426 |
|
|
TOTAL ASSETS |
$ |
8,595,523 |
|
|
|
$ |
7,789,564 |
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY |
|
|
|
|
|
|
|
Interest bearing
liabilities: |
|
|
|
|
|
|
|
Interest bearing
transaction |
$ |
705,628 |
$ |
1,197 |
0.68 |
% |
|
$ |
444,842 |
$ |
815 |
0.73 |
% |
Savings and money market |
|
2,628,255 |
|
12,279 |
1.87 |
% |
|
|
2,647,910 |
|
8,546 |
1.29 |
% |
Time deposits |
|
1,442,197 |
|
8,985 |
2.50 |
% |
|
|
1,123,330 |
|
4,687 |
1.67 |
% |
Total interest bearing deposits |
|
4,776,080 |
|
22,461 |
1.89 |
% |
|
|
4,216,082 |
|
14,048 |
1.34 |
% |
Customer repurchase
agreements |
|
33,248 |
|
75 |
0.90 |
% |
|
|
38,438 |
|
62 |
0.65 |
% |
Other short-term
borrowings |
|
219,508 |
|
1,435 |
2.59 |
% |
|
|
230,223 |
|
997 |
1.71 |
% |
Long-term borrowings |
|
217,458 |
|
2,979 |
5.42 |
% |
|
|
217,068 |
|
2,979 |
5.43 |
% |
Total interest bearing liabilities |
|
5,246,294 |
|
26,950 |
2.06 |
% |
|
|
4,701,811 |
|
18,086 |
1.54 |
% |
|
|
|
|
|
|
|
|
Noninterest bearing
liabilities: |
|
|
|
|
|
|
|
Noninterest bearing
demand |
|
2,117,901 |
|
|
|
|
2,053,044 |
|
|
Other liabilities |
|
64,841 |
|
|
|
|
32,618 |
|
|
Total noninterest bearing liabilities |
|
2,182,742 |
|
|
|
|
2,085,662 |
|
|
|
|
|
|
|
|
|
|
Shareholders’ Equity |
|
1,166,487 |
|
|
|
|
1,002,091 |
|
|
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY |
$ |
8,595,523 |
|
|
|
$ |
7,789,564 |
|
|
|
|
|
|
|
|
|
|
Net interest income |
|
$ |
81,329 |
|
|
|
$ |
78,210 |
|
Net interest spread |
|
|
3.15 |
% |
|
|
|
3.57 |
% |
Net interest margin |
|
|
3.91 |
% |
|
|
|
4.15 |
% |
Cost of funds |
|
|
1.30 |
% |
|
|
|
0.96 |
% |
|
|
|
|
|
|
|
|
(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
June 30, 2019 and 2018, respectively. |
|
|
|
|
|
|
|
(2) Interest and
fees on loans and investments exclude tax equivalent
adjustments. |
|
|
|
|
|
|
Eagle Bancorp, Inc. |
Consolidated Average Balances, Interest Yields and Rates
(Unaudited) |
(dollars in thousands) |
|
|
|
|
|
|
|
|
|
Six Months Ended June 30, |
|
|
2019 |
|
|
|
2018 |
|
|
Average Balance |
Interest |
Average Yield/Rate |
|
Average Balance |
Interest |
Average Yield/Rate |
ASSETS |
|
|
|
|
|
|
|
Interest earning assets: |
|
|
|
|
|
|
|
Interest bearing deposits with other banks and other short-term
investments |
$ |
254,804 |
$ |
2,771 |
2.19 |
% |
|
$ |
292,772 |
$ |
2,255 |
1.55 |
% |
Loans held for sale
(1) |
|
26,386 |
|
550 |
4.17 |
% |
|
|
25,293 |
|
565 |
4.47 |
% |
Loans (1)
(2) |
|
7,150,300 |
|
199,160 |
5.62 |
% |
|
|
6,502,207 |
|
174,789 |
5.42 |
% |
Investment securities
available for sale (1) |
|
806,858 |
|
10,836 |
2.71 |
% |
|
|
628,818 |
|
7,650 |
2.45 |
% |
Federal funds sold |
|
19,063 |
|
96 |
1.02 |
% |
|
|
17,258 |
|
86 |
1.00 |
% |
Total interest earning assets |
|
8,257,411 |
|
213,413 |
5.21 |
% |
|
|
7,466,348 |
|
185,345 |
5.01 |
% |
|
|
|
|
|
|
|
|
Total noninterest earning
assets |
|
338,290 |
|
|
|
|
293,488 |
|
|
Less: allowance for credit
losses |
|
69,713 |
|
|
|
|
65,781 |
|
|
Total noninterest earning assets |
|
268,577 |
|
|
|
|
227,707 |
|
|
TOTAL ASSETS |
$ |
8,525,988 |
|
|
|
$ |
7,694,055 |
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY |
|
|
|
|
|
|
|
Interest bearing
liabilities: |
|
|
|
|
|
|
|
Interest bearing
transaction |
$ |
648,557 |
$ |
2,378 |
0.74 |
% |
|
$ |
409,066 |
$ |
1,279 |
0.63 |
% |
Savings and money market |
|
2,709,950 |
|
24,242 |
1.80 |
% |
|
|
2,708,480 |
|
14,210 |
1.06 |
% |
Time deposits |
|
1,386,876 |
|
16,741 |
2.43 |
% |
|
|
1,006,356 |
|
7,688 |
1.54 |
% |
Total interest bearing deposits |
|
4,745,383 |
|
43,361 |
1.84 |
% |
|
|
4,123,902 |
|
23,177 |
1.13 |
% |
Customer repurchase
agreements |
|
30,536 |
|
173 |
1.14 |
% |
|
|
53,158 |
|
112 |
0.42 |
% |
Other short-term
borrowings |
|
120,832 |
|
1,575 |
2.59 |
% |
|
|
234,267 |
|
2,108 |
1.79 |
% |
Long-term borrowings |
|
217,408 |
|
5,958 |
5.45 |
% |
|
|
217,019 |
|
5,958 |
5.46 |
% |
Total interest bearing liabilities |
|
5,114,159 |
|
51,067 |
2.01 |
% |
|
|
4,628,346 |
|
31,355 |
1.37 |
% |
|
|
|
|
|
|
|
|
Noninterest bearing
liabilities: |
|
|
|
|
|
|
|
Noninterest bearing
demand |
|
2,195,084 |
|
|
|
|
2,042,738 |
|
|
Other liabilities |
|
68,963 |
|
|
|
|
38,535 |
|
|
Total noninterest bearing liabilities |
|
2,264,047 |
|
|
|
|
2,081,273 |
|
|
|
|
|
|
|
|
|
|
Shareholders’ equity |
|
1,147,782 |
|
|
|
|
984,436 |
|
|
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY |
$ |
8,525,988 |
|
|
|
$ |
7,694,055 |
|
|
|
|
|
|
|
|
|
|
Net interest income |
|
$ |
162,346 |
|
|
|
$ |
153,990 |
|
Net interest spread |
|
|
3.20 |
% |
|
|
|
3.64 |
% |
Net interest margin |
|
|
3.97 |
% |
|
|
|
4.16 |
% |
Cost of funds |
|
|
1.24 |
% |
|
|
|
0.85 |
% |
|
|
|
|
|
|
|
|
(1) Loans placed
on nonaccrual status are included in average balances. Net loan
fees and late charges included in interest income on loans totaled
$8.8 million and $9.9 million |
for the six months ended June
30, 2019 and 2018, respectively. |
|
|
|
|
|
|
|
(2) Interest and
fees on loans and investments exclude tax equivalent
adjustments. |
|
|
|
|
|
|
Eagle Bancorp,
Inc. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Statements of Income
and Highlights Quarterly Trends (Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(dollars in thousands, except
per share data) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
June 30, |
|
March 31, |
|
December 31, |
|
September 30, |
|
June 30, |
|
March 31, |
|
December 31, |
|
September 30, |
Income Statements: |
|
2019 |
|
|
|
2019 |
|
|
|
2018 |
|
|
|
2018 |
|
|
|
2018 |
|
|
|
2018 |
|
|
|
2017 |
|
|
|
2017 |
|
Total interest income |
$ |
108,279 |
|
|
$ |
105,134 |
|
|
$ |
105,581 |
|
|
$ |
102,360 |
|
|
$ |
96,296 |
|
|
$ |
89,049 |
|
|
$ |
86,526 |
|
|
$ |
82,370 |
|
Total interest expense |
|
26,950 |
|
|
|
24,117 |
|
|
|
23,869 |
|
|
|
21,069 |
|
|
|
18,086 |
|
|
|
13,269 |
|
|
|
11,167 |
|
|
|
10,434 |
|
Net interest income |
|
81,329 |
|
|
|
81,017 |
|
|
|
81,712 |
|
|
|
81,291 |
|
|
|
78,210 |
|
|
|
75,780 |
|
|
|
75,359 |
|
|
|
71,936 |
|
Provision for credit
losses |
|
3,600 |
|
|
|
3,360 |
|
|
|
2,600 |
|
|
|
2,441 |
|
|
|
1,650 |
|
|
|
1,969 |
|
|
|
4,087 |
|
|
|
1,921 |
|
Net interest income after
provision for credit losses |
|
77,729 |
|
|
|
77,657 |
|
|
|
79,112 |
|
|
|
78,850 |
|
|
|
76,560 |
|
|
|
73,811 |
|
|
|
71,272 |
|
|
|
70,015 |
|
Noninterest income (before investment gains) |
|
5,797 |
|
|
|
5,379 |
|
|
|
6,060 |
|
|
|
5,640 |
|
|
|
5,527 |
|
|
|
5,262 |
|
|
|
9,496 |
|
|
|
6,773 |
|
Gain on sale of investment securities |
|
563 |
|
|
|
912 |
|
|
|
29 |
|
|
|
- |
|
|
|
26 |
|
|
|
42 |
|
|
|
- |
|
|
|
11 |
|
Total noninterest income |
|
6,360 |
|
|
|
6,291 |
|
|
|
6,089 |
|
|
|
5,640 |
|
|
|
5,553 |
|
|
|
5,304 |
|
|
|
9,496 |
|
|
|
6,784 |
|
Salaries and employee benefits |
|
17,743 |
|
|
|
23,644 |
|
|
|
15,907 |
|
|
|
17,157 |
|
|
|
17,812 |
|
|
|
16,858 |
|
|
|
16,678 |
|
|
|
16,905 |
|
Premises and equipment |
|
3,652 |
|
|
|
3,852 |
|
|
|
3,969 |
|
|
|
3,889 |
|
|
|
3,873 |
|
|
|
3,929 |
|
|
|
4,019 |
|
|
|
3,846 |
|
Marketing and advertising |
|
1,268 |
|
|
|
1,148 |
|
|
|
1,147 |
|
|
|
1,191 |
|
|
|
1,291 |
|
|
|
937 |
|
|
|
1,222 |
|
|
|
732 |
|
Other expenses |
|
10,696 |
|
|
|
9,660 |
|
|
|
10,664 |
|
|
|
9,377 |
|
|
|
9,313 |
|
|
|
9,397 |
|
|
|
7,884 |
|
|
|
8,033 |
|
Total noninterest expense |
|
33,359 |
|
|
|
38,304 |
|
|
|
31,687 |
|
|
|
31,614 |
|
|
|
32,289 |
|
|
|
31,121 |
|
|
|
29,803 |
|
|
|
29,516 |
|
Income before income tax
expense |
|
50,730 |
|
|
|
45,644 |
|
|
|
53,514 |
|
|
|
52,876 |
|
|
|
49,824 |
|
|
|
47,994 |
|
|
|
50,965 |
|
|
|
47,283 |
|
Income tax expense |
|
13,487 |
|
|
|
11,895 |
|
|
|
13,197 |
|
|
|
13,928 |
|
|
|
12,528 |
|
|
|
12,279 |
|
|
|
35,396 |
|
|
|
17,409 |
|
Net income |
|
37,243 |
|
|
|
33,749 |
|
|
|
40,317 |
|
|
|
38,948 |
|
|
|
37,296 |
|
|
|
35,715 |
|
|
|
15,569 |
|
|
|
29,874 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Per Share
Data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per weighted average
common share, basic |
$ |
1.08 |
|
|
$ |
0.98 |
|
|
$ |
1.17 |
|
|
$ |
1.14 |
|
|
$ |
1.09 |
|
|
$ |
1.04 |
|
|
$ |
0.46 |
|
|
$ |
0.87 |
|
Earnings per weighted average
common share, diluted |
$ |
1.08 |
|
|
$ |
0.98 |
|
|
$ |
1.17 |
|
|
$ |
1.13 |
|
|
$ |
1.08 |
|
|
$ |
1.04 |
|
|
$ |
0.45 |
|
|
$ |
0.87 |
|
Weighted average common shares
outstanding, basic |
|
34,540,152 |
|
|
|
34,480,772 |
|
|
|
34,349,089 |
|
|
|
34,308,684 |
|
|
|
34,305,693 |
|
|
|
34,260,882 |
|
|
|
34,179,793 |
|
|
|
34,173,893 |
|
Weighted average common shares
outstanding, diluted |
|
34,565,253 |
|
|
|
34,536,236 |
|
|
|
34,460,985 |
|
|
|
34,460,794 |
|
|
|
34,448,354 |
|
|
|
34,406,310 |
|
|
|
34,334,873 |
|
|
|
34,338,442 |
|
Actual shares outstanding at
period end |
|
34,539,853 |
|
|
|
34,537,193 |
|
|
|
34,387,919 |
|
|
|
34,308,473 |
|
|
|
34,305,071 |
|
|
|
34,303,056 |
|
|
|
34,185,163 |
|
|
|
34,174,009 |
|
Book value per common share at
period end |
$ |
34.30 |
|
|
$ |
33.25 |
|
|
$ |
32.25 |
|
|
$ |
30.94 |
|
|
$ |
29.82 |
|
|
$ |
28.72 |
|
|
$ |
27.80 |
|
|
$ |
27.33 |
|
Tangible book value per common
share at period end (1) |
$ |
31.25 |
|
|
$ |
30.20 |
|
|
$ |
29.17 |
|
|
$ |
27.84 |
|
|
$ |
26.71 |
|
|
$ |
25.60 |
|
|
$ |
24.67 |
|
|
$ |
24.19 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Performance Ratios
(annualized): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average assets |
|
1.74% |
|
|
|
1.62% |
|
|
|
1.90% |
|
|
|
1.93% |
|
|
|
1.92% |
|
|
|
1.91% |
|
|
|
0.82% |
|
|
|
1.66% |
|
Return on average common
equity |
|
12.81% |
|
|
|
12.12% |
|
|
|
14.82% |
|
|
|
14.85% |
|
|
|
14.93% |
|
|
|
14.99% |
|
|
|
6.49% |
|
|
|
12.86% |
|
Return on average tangible
common equity |
|
14.08% |
|
|
|
13.38% |
|
|
|
16.43% |
|
|
|
16.54% |
|
|
|
16.71% |
|
|
|
16.86% |
|
|
|
7.31% |
|
|
|
14.55% |
|
Net interest margin |
|
3.91% |
|
|
|
4.02% |
|
|
|
3.97% |
|
|
|
4.14% |
|
|
|
4.15% |
|
|
|
4.17% |
|
|
|
4.13% |
|
|
|
4.14% |
|
Efficiency ratio
(2) |
|
38.04% |
|
|
|
43.87% |
|
|
|
36.09% |
|
|
|
36.37% |
|
|
|
38.55% |
|
|
|
38.38% |
|
|
|
35.12% |
|
|
|
37.49% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
Ratios: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for credit losses to
total loans (3) |
|
0.98% |
|
|
|
0.98% |
|
|
|
1.00% |
|
|
|
1.00% |
|
|
|
1.00% |
|
|
|
1.00% |
|
|
|
1.01% |
|
|
|
1.03% |
|
Allowance for credit losses to
total nonperforming loans |
|
192.70% |
|
|
|
173.72% |
|
|
|
429.72% |
|
|
|
452.28% |
|
|
|
612.42% |
|
|
|
491.56% |
|
|
|
489.20% |
|
|
|
379.11% |
|
Nonperforming loans to total
loans (3) |
|
0.51% |
|
|
|
0.56% |
|
|
|
0.23% |
|
|
|
0.22% |
|
|
|
0.16% |
|
|
|
0.20% |
|
|
|
0.21% |
|
|
|
0.27% |
|
Nonperforming assets to total
assets |
|
0.45% |
|
|
|
0.50% |
|
|
|
0.21% |
|
|
|
0.20% |
|
|
|
0.16% |
|
|
|
0.19% |
|
|
|
0.20% |
|
|
|
0.24% |
|
Net charge-offs (annualized)
to average loans (3) |
|
0.08% |
|
|
|
0.19% |
|
|
|
0.05% |
|
|
|
0.05% |
|
|
|
0.05% |
|
|
|
0.06% |
|
|
|
0.15% |
|
|
|
0.00% |
|
Tier 1 capital (to average
assets) |
|
12.66% |
|
|
|
12.49% |
|
|
|
12.08% |
|
|
|
12.13% |
|
|
|
11.97% |
|
|
|
11.76% |
|
|
|
11.45% |
|
|
|
11.78% |
|
Total capital (to risk
weighted assets) |
|
16.36% |
|
|
|
16.22% |
|
|
|
16.08% |
|
|
|
15.74% |
|
|
|
15.59% |
|
|
|
15.32% |
|
|
|
15.02% |
|
|
|
15.30% |
|
Common equity tier 1 capital
(to risk weighted assets) |
|
12.87% |
|
|
|
12.69% |
|
|
|
12.47% |
|
|
|
12.11% |
|
|
|
11.89% |
|
|
|
11.57% |
|
|
|
11.23% |
|
|
|
11.40% |
|
Tangible common equity ratio
(1) |
|
12.60% |
|
|
|
12.59% |
|
|
|
12.11% |
|
|
|
12.01% |
|
|
|
11.79% |
|
|
|
11.57% |
|
|
|
11.44% |
|
|
|
11.35% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Balances (in
thousands): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets |
$ |
8,595,523 |
|
|
$ |
8,455,680 |
|
|
$ |
8,415,480 |
|
|
$ |
8,023,535 |
|
|
$ |
7,789,564 |
|
|
$ |
7,597,485 |
|
|
$ |
7,487,624 |
|
|
$ |
7,128,769 |
|
Total earning assets |
$ |
8,328,323 |
|
|
$ |
8,185,711 |
|
|
$ |
8,171,010 |
|
|
$ |
7,793,422 |
|
|
$ |
7,558,138 |
|
|
$ |
7,373,535 |
|
|
$ |
7,242,994 |
|
|
$ |
6,897,613 |
|
Total loans |
$ |
7,260,899 |
|
|
$ |
7,038,472 |
|
|
$ |
6,897,434 |
|
|
$ |
6,646,264 |
|
|
$ |
6,569,931 |
|
|
$ |
6,433,730 |
|
|
$ |
6,207,505 |
|
|
$ |
5,946,411 |
|
Total deposits |
$ |
6,893,981 |
|
|
$ |
6,987,468 |
|
|
$ |
6,950,714 |
|
|
$ |
6,485,144 |
|
|
$ |
6,269,126 |
|
|
$ |
6,063,017 |
|
|
$ |
6,101,727 |
|
|
$ |
5,827,953 |
|
Total borrowings |
$ |
470,214 |
|
|
$ |
266,209 |
|
|
$ |
342,637 |
|
|
$ |
464,460 |
|
|
$ |
485,729 |
|
|
$ |
523,369 |
|
|
$ |
382,687 |
|
|
$ |
344,959 |
|
Total shareholders’
equity |
$ |
1,166,487 |
|
|
$ |
1,128,869 |
|
|
$ |
1,079,622 |
|
|
$ |
1,040,826 |
|
|
$ |
1,002,091 |
|
|
$ |
966,585 |
|
|
$ |
951,727 |
|
|
$ |
921,493 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Tangible
common equity to tangible assets (the "tangible common equity
ratio") and tangible book value per common share are non-GAAP
financial measures derived from GAAP based amounts. The Company
calculates the tangible common equity ratio by excluding the
balance of intangible assets from common shareholders' equity and
dividing by tangible assets. The Company calculates tangible book
value per common share by dividing tangible common equity by common
shares outstanding, as compared to book value per common share,
which the Company calculates by dividing common shareholders'
equity by common shares outstanding. The Company considers this
information important to shareholders as tangible equity is a
measure that is consistent with the calculation of capital for bank
regulatory purposes, which excludes intangible assets from the
calculation of risk based ratios and as such is useful for
investors, regulators, management and others to evaluate capital
adequacy and to compare against other financial
institutions. |
(2) Computed by
dividing noninterest expense by the sum of net interest income and
noninterest income. |
(3) Excludes
loans held for sale. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EAGLE BANCORP,
INC.CONTACT:Michael T.
Flynn301.986.1800
Eagle Bancorp (NASDAQ:EGBN)
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Eagle Bancorp (NASDAQ:EGBN)
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From Jul 2023 to Jul 2024