Eagle Bancorp, Inc. (the “Company”) (NASDAQ:EGBN), the parent
company of EagleBank, today announced quarterly net income of $35.5
million for the three months ended December 31, 2019, a 12%
decrease as compared to $40.3 million net income for the three
months ended December 31, 2018.
For the year ended December 31, 2019, the
Company’s net income was $142.9 million, a 6% decrease as
compared to $152.3 million for the year ended December 31,
2018.
Net income for the three months ended December
31, 2019 was $1.06 per basic and diluted common share as compared
to $1.17 per basic and diluted common share for the same period in
2018, a 9% decrease in earnings per share for the fourth quarter of
2019 versus 2018.
For the full year 2019, net income was $4.18 per
basic and diluted common share as compared to $4.44 per basic
common share and $4.42 per diluted common share for 2018, a 6%
decrease in basic and 5% decrease in diluted earnings per share for
the full year of 2019 as compared to 2018.
“Notwithstanding the negative impact that
declining interest rates in the second half of 2019 and a flat
yield curve are having on our revenues and net interest margin, we
are pleased to report a continued trend of both average loan and
deposit growth, together with continuing solid asset quality and
favorable operating leverage. Additionally, our capital base
remains very strong, with ratios well in excess of the requirements
for well capitalized status,” noted Susan G. Riel, President and
Chief Executive Officer of Eagle Bancorp, Inc. Ms. Riel added that
“While period end loan balances in the fourth quarter 2019 were
flat as compared to September 30, 2019, average loans increased
0.5% over the third quarter of 2019 and were 9% higher in the
fourth quarter of 2019 as compared to the fourth quarter of 2018.
In the fourth quarter of 2019 the funding of construction loans
tapered off as expected and we experienced higher loan payoffs.
These payoffs (which accounted for about 40% of the full year of
2019 payoffs) were expected and reflected in part the successful
completion of projects. Funding of C&I loans improved during
the quarter and the loan pipeline remained strong. For the full
year of 2019, loan balances increased 8% while average loans
increased 10% over 2018, close to planned levels.”
Ms. Riel added, “Deposit activity in the fourth
quarter 2019 was very fluid as period end balances declined by
about 2% as compared to September 30, 2019, however, average
deposit balances increased a strong 5% in the fourth quarter 2019
over the third quarter in 2019. We have many large depositor
clients whose balances fluctuate regularly and can impact overall
deposit levels at a point in time. We focus more on growing average
balances, which more directly relate to revenue. For the fourth
quarter of 2019, average deposits were 11% higher as compared to
the fourth quarter in 2018. For the full year 2019, deposit
balances increased by 4%, while average deposit balances increased
a strong 12%.”
Total revenue (net interest income plus
noninterest income) for the fourth quarter of 2019 was $87.4
million, as compared to $87.8 million for the fourth quarter of
2018 and $87.3 for the third quarter in 2019. For the year 2019,
total revenue was $349.7 million, as compared to $339.6 million for
the year of 2018, a 3% increase.
Ms. Riel further commented, “For the fourth
quarter of 2019, as noted, we experienced very strong growth of
average deposits as compared to minimal loan growth, resulting in
significantly higher average liquidity. This higher average
liquidity ($739 million for the fourth quarter of 2019 vs. $306
million normalized average for the first three quarters of 2019)
contributed to a decline in the net interest margin to 3.49% for
the fourth quarter from 3.72% in the third quarter of 2019. The
higher liquidity position in the fourth quarter resulted in an
average loan to deposit ratio of 98% as compared to 102% for the
third quarter of 2019. Also contributing to the decreased net
interest margin for the fourth quarter was a 21 basis point decline
in the yield on the loan portfolio to 5.18% versus 5.39% for the
third quarter 2019, largely due to the sharp decline in the one
month average LIBOR interest rate in the fourth quarter (down 39
basis points to 1.79%). Approximately 40% of the Bank’s loan
balances are on notes indexed to this LIBOR rate.” Ms. Riel added,
“While we were able to realize declines in our cost of funds as
market rates declined in the fourth quarter of 2019 (13 basis
points from 1.28% to 1.15%), the variable rate nature of our loan
portfolio has resulted in a sharper decline in asset yields than in
the cost of funds. Importantly, our credit quality remained very
strong in the fourth quarter as the level of nonperforming assets
was 0.56% of total assets at December 31, 2019 and the annualized
level of net charge offs to average loans was 0.13%.” Ms. Riel
added, “The Company’s operating efficiency, another key driver of
our financial performance, remained favorable.” For the fourth
quarter in 2019, the efficiency ratio was 39.7%, as compared to
36.1% in the fourth quarter of 2018, and was 40.0% for the full
year 2019, which is inclusive of elevated legal costs as discussed
below.
Combining all operating factors for the fourth
quarter 2019, the Company achieved a return on average assets of
1.49%, a return on average common equity of 11.78%, and a return on
average tangible common equity ratio of 12.91%, while sustaining
strong capital levels.
For the full year 2019 over 2018, average
deposit growth was 12%, average loan growth was 10%, revenue growth
was 3% and noninterest expense growth was 10%. The net interest
margin for 2019 was 3.77% as compared to 4.10% for the year
2018. While lower, we believe our net interest margin for
2019 remains above peer banking companies. Period end to period
end, loan growth in 2019 was 8% and deposit growth was 4%.
Comparing asset yields and cost of funds for the
full year of 2019 to the full year 2018, loan yields were down 9
basis points (from 5.54% to 5.45%), yields on earning assets were
also down 9 basis points (from 5.09% to 5.00%) and the cost of
funds was up 24 basis points (from 0.99% to 1.23%). Importantly,
our funding costs, while up in 2019 over 2018, continue to benefit
from the substantial level of average noninterest deposits as a
percentage of average total deposits of 30.6% in 2019. Having a
significant portion of the loan portfolio with variable and
adjustable rates in a declining rate environment (specifically the
latter half of 2019) has been the major factor in compressing the
net interest margin and negatively impacting revenue growth in the
third and fourth quarters. Ms. Riel added, “We expect that
further lowering of deposit interest rates in 2020 together with
more stable short term market rates will take some pressure off of
further margin declines.”
The return on average assets (“ROAA”) was 1.61%
for the year 2019 as compared to 1.91% for the year ended December
31, 2018. The annualized return on average common equity (“ROACE”)
was 12.20% for the full year 2019 as compared to 14.89% for
the year ended December 31, 2018. The annualized return on average
tangible common equity (“ROATCE”) was 13.40% for the full year 2019
as compared to 16.63% for the year ended December 31, 2018.
Asset quality measures remained solid in the
fourth quarter of 2019. At December 31, 2019, the Company’s
nonperforming loans amounted to $48.7 million (0.65% of total
loans) as compared to $57.7 million (0.76% of total loans) at
September 30, 2019 and $16.3 million (0.23% of total loans) at
December 31, 2018. Nonperforming assets amounted to $50.2 million
(0.56% of total assets) at December 31, 2019 compared to $59.1
million (0.66% of total assets) at September 30, 2019 and $17.7
million (0.21% of total assets) at December 31, 2018. For 2019, the
Company recorded net charge-offs of $9.4 million (0.13% of average
loans), as compared to net charge-offs of $3.5 million (0.05% of
average loans) for 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 December 31, 2019 allowance for credit losses, at 0.98% of
total loans (excluding loans held for sale), is adequate to absorb
probable credit losses within the loan portfolio as of the end of
the year. The allowance for credit losses was 0.98% of total loans
at September 30, 2019 and 1.00% at December 31, 2018. The allowance
for credit losses represented 151% of nonperforming loans at
December 31, 2019.
Total assets at December 31, 2019 were $8.99
billion, relatively flat as compared to $9.00 billion at September
30, 2019, and increased 7% as compared to $8.39 billion at December
31, 2018. Total loans (excluding loans held for sale) were $7.54
billion at December 31, 2019, relatively flat as compared to $7.56
billion at September 30, 2019, and an 8% increase as compared to
$6.99 billion at December 31, 2018. Loans held for sale amounted to
$56.7 million at December 31, 2019 as compared to $52.2 million at
September 30, 2019, a 9% increase, and $19.3 million at December
31, 2018, a 195% increase. The investment portfolio totaled $843.4
million at December 31, 2019, a 19% increase from $708.5 million at
September 30, 2019. As compared to December 31, 2018, the
investment portfolio at December 31, 2019 increased by $59.2
million or 8%.
Total deposits at December 31, 2019 were $7.22
billion, as compared to deposits of $7.40 billion at September 30,
2019, a 2% decline, and deposits of $6.97 billion at December 31,
2018, a 4% increase. Total borrowed funds (excluding customer
repurchase agreements) were $467.7 million at December 31, 2019,
$317.6 million at September 30, 2019 and $217.3 million at December
31, 2018.
Total shareholders’ equity at December 31, 2019
increased 0.5%, to $1.19 billion, compared to $1.18 billion at
September 30, 2019, and increased 7%, from $1.11 billion at
December 31, 2018. 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 16.20% at December 31, 2019, as compared to
16.08% at both September 30, 2019, and December 31, 2018. In
addition, the tangible common equity ratio was 12.22% at December
31, 2019, compared to 12.13% at September 30, 2019 and 12.11% at
December 31, 2018.
On August 9, 2019, the Company announced a Share
Repurchase Plan which authorized share repurchases up to 5% of
outstanding shares (1,715,547) until expiration on December 31,
2019. Through December 31, 2019, the Company has repurchased
1,304,500 shares at a weighted average price of $42.06 per share.
On December 18, 2019, the Company announced a new Share Repurchase
Plan which authorized share repurchases up to approximately 5% of
outstanding shares (1,641,000) until expiration on December 31,
2020.
The Company announced a regular quarterly cash
dividend on December 16, 2019 of $0.22 per share to shareholders of
record on January 15, 2020 and payable January 31, 2020.
Analysis of the three months ended
December 31, 2019 compared to December 31, 2018
Net interest income decreased 1% for the three
months ended December 31, 2019 over the same period in 2018 ($80.7
million versus $81.7 million), resulting from a 48 basis point
reduction of the net interest margin offset by growth in average
earning assets of 12%. The net interest margin was 3.49% for the
three months ended December 31, 2019, as compared to 3.97% for the
three months ended December 31, 2018. The Company believes its net
interest margin remains favorable compared to peer banking
companies and that its disciplined approach to managing the loan
portfolio to a 5.18% yield for the fourth quarter of 2019 has been
a significant factor in its overall profitability.
The provision for credit losses was $2.9 million
for the three months ended December 31, 2019 as compared to $2.6
million for the three months ended December 31, 2018. The higher
provisioning in the fourth quarter of 2019, as compared to the
fourth quarter of 2018, is primarily due to higher net charge-offs.
Net charge-offs of $3.0 million in the fourth quarter of 2019
represented an annualized 0.16% of average loans, excluding loans
held for sale, as compared to net charge-offs of $844 thousand, or
an annualized 0.05% of average loans, excluding loans held for
sale, in the fourth quarter of 2018. Net charge-offs in the fourth
quarter of 2019 were attributable to Commercial & Industrial
loans ($3.0 million).
Noninterest income for the three months ended
December 31, 2019 increased to $6.7 million from $6.1 million for
the three months ended December 31, 2018, due substantially to $1.3
million higher gains on sale of residential mortgage loans offset
by $373 thousand lower service charges on deposits. The residential
mortgage unit had higher sales and resulting gains on the sale of
these loans in the fourth quarter of 2019 (gains of $2.5 million
for the fourth quarter of 2019 versus $1.2 million for the same
period in 2018). Residential mortgage loans closed were $228
million for the fourth quarter in 2019 versus $91 million for the
fourth quarter of 2018. The FHA business unit generated income of
$395 thousand on the origination, securitization, servicing and
sale of FHA Multifamily-Backed GNMA securities in the fourth
quarter of 2019 compared to $507 thousand for the same period in
2018. The SBA business unit generated $138 thousand in revenue
during the fourth quarter of 2019 from sales of the guaranteed
portion on SBA loans compared to $167 thousand for the same period
in 2018.
The efficiency ratio, which measures the ratio
of noninterest expense to total revenue, was 39.71% for the fourth
quarter of 2019, as compared to 36.09% for the fourth quarter of
2018. Noninterest expenses totaled $34.7 million for the three
months ended December 31, 2019, as compared to $31.7 million for
the three months ended December 31, 2018. Salaries and employee
benefits expenses increased $3.5 million in the fourth quarter of
2019 as compared to the fourth quarter of 2018. This was
attributable to a $3.2 million increase resulting from additional
staffing, merit increases, and incentives. Legal, accounting, and
professional fees increased by $1.7 million as discussed below.
Other expenses decreased $1.1 million due primarily to lower broker
fees.
The effective income tax rate was higher (28.8%)
for the fourth quarter 2019 as compared to 24.7% for the same
period in 2018 due primarily to a decrease in federal tax credits,
an increase in nondeductible expenses, and adjustments related to
the completion of the 2018 tax returns.
Analysis of the year ended December 31,
2019 compared to December 31, 2018
Net interest income increased 2% for the year
ended December 31, 2019 over the same period in 2018 ($324.0
million versus $317.0 million), resulting from growth in average
earning assets of 11%. The net interest margin was 3.77% for the
year ended December 31, 2019 as compared to 4.10% for the same
period in 2018. The Company believes its net interest margin
remains favorable compared to peer banking companies and that its
disciplined approach to managing the loan portfolio yield to 5.45%
for the full year of 2019 has been a significant factor in its
overall profitability. Additionally, the percentage of average
noninterest bearing deposits to total deposits was 30.6% for the
full year of 2019 versus 33.4% for the same period in 2018.
The provision for credit losses was $13.1
million for the year ended December 31, 2019 as compared to $8.7
million for the year ended December 31, 2018. The higher
provisioning during 2019, as compared to 2018, is due to higher net
charge-offs. Net charge-offs of $9.4 million during 2019
represented an annualized 0.13% of average loans, excluding loans
held for sale, as compared to $3.5 million or an annualized 0.05%
of average loans, excluding loans held for sale, in 2018. Net
charge-offs during 2019 were attributable primarily to commercial
real estate ($5.0 million) and commercial loans ($4.5 million).
Noninterest income for the year ended December
31, 2019 was $25.7 million as compared to $22.6 million for the
year ended December 31, 2018, a 14% increase due to $2.7 million
higher gains on sale of residential mortgage loans, $1.4 million
higher gain on sale of investment securities, offset by $767
thousand lower service charges on deposits. The residential
mortgage unit had $8.2 million of gains on the sale of loans for
the full year of 2019 versus $5.4 million for the same period in
2018 resulting from higher loan originations and subsequent loan
sales. Residential mortgage loans closed were $698 million for the
full year 2019 versus $424 million for the full year 2018. The FHA
business unit generated income of $501 thousand on the origination,
securitization, servicing and sale of FHA Multifamily-Backed GNMA
securities for the full year 2019 compared to $357 thousand for the
same period in 2018. The SBA business unit generated $309 thousand
in revenue from sales of the guaranteed portion on SBA loans for
the full year 2019 compared to $540 thousand for the same period in
2018.
Noninterest expenses totaled $139.9 million for
the year ended December 31, 2019, as compared to $126.7 million for
the year ended December 31, 2018, a 10% increase. Salaries and
employee benefits increased by $12.1 million due primarily to $8.2
million of nonrecurring charges related to acceleration of share
based compensation expenses associated with the retirement of our
former Chairman and Chief Executive Officer and the resignation of
certain directors. In addition, $4.0 million of the increase
resulted from additional staffing, merit increases, and incentives.
Legal, accounting and professional fees increased by $2.5 million
as discussed below. For 2019, the efficiency ratio was 39.99% as
compared to 37.31% for the same period in 2018.
Legal, accounting and professional fees and
expenses for the three months ended December 31, 2019 increased to
$4.1 million from $2.5 million for the same period in 2018, a 68%
increase. Legal, accounting and professional fees and expenses for
the year ended December 31, 2019 increased to $12.2 million from
$9.7 million in 2018, a 25% increase. The increased expenses for
both the quarter-to-date and year-to-date 2019 periods were
primarily associated with government agencies investigations
previously disclosed in the second quarter 2019 earnings press
release. The Company expects to continue to incur elevated levels
of legal and professional fees and expenses in 2020 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 year ended
2019 was higher at 27.4% as compared to 25.4% due primarily to a
decrease in federal tax credits, an increase in nondeductible
expenses, and adjustments related to the completion of the 2018 tax
returns.
The financial information which follows provides
more detail on the Company’s financial performance for the three
and twelve months ended December 31, 2019 as compared to the three
and twelve months ended December 31, 2018 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, 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 fourth quarter and year
end 2019 financial results on Thursday, January 16, 2020 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
2188459, 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 30, 2020.
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.
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Eagle Bancorp, Inc. |
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Consolidated Financial Highlights (Unaudited) |
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(dollars in
thousands, except per share data) |
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|
Three Months Ended December 31, |
|
Years Ended December 31, |
|
2019 |
|
2018 |
|
2019 |
|
2018 |
Income Statements: |
|
|
|
|
|
|
|
Total interest income |
$ |
107,183 |
|
|
$ |
105,581 |
|
|
$ |
429,630 |
|
|
$ |
393,286 |
|
Total
interest expense |
|
26,473 |
|
|
|
23,869 |
|
|
|
105,585 |
|
|
|
76,293 |
|
Net interest
income |
|
80,710 |
|
|
|
81,712 |
|
|
|
324,045 |
|
|
|
316,993 |
|
Provision
for credit losses |
|
2,945 |
|
|
|
2,600 |
|
|
|
13,091 |
|
|
|
8,660 |
|
Net interest
income after provision for credit losses |
|
77,765 |
|
|
|
79,112 |
|
|
|
310,954 |
|
|
|
308,333 |
|
Noninterest
income (before investment (loss) gain) |
|
6,845 |
|
|
|
6,060 |
|
|
|
24,182 |
|
|
|
22,489 |
|
(Loss) Gain
on sale of investment securities |
|
(111 |
) |
|
|
29 |
|
|
|
1,517 |
|
|
|
97 |
|
Total
noninterest income |
|
6,734 |
|
|
|
6,089 |
|
|
|
25,699 |
|
|
|
22,586 |
|
Total
noninterest expense |
|
34,726 |
|
|
|
31,687 |
|
|
|
139,862 |
|
|
|
126,711 |
|
Income
before income tax expense |
|
49,773 |
|
|
|
53,514 |
|
|
|
196,791 |
|
|
|
204,208 |
|
Income tax
expense |
|
14,317 |
|
|
|
13,197 |
|
|
|
53,848 |
|
|
|
51,932 |
|
Net
income |
$ |
35,456 |
|
|
$ |
40,317 |
|
|
$ |
142,943 |
|
|
$ |
152,276 |
|
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|
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Per
Share Data: |
|
|
|
|
|
|
|
Earnings per
weighted average common share, basic |
$ |
1.06 |
|
|
$ |
1.17 |
|
|
$ |
4.18 |
|
|
$ |
4.44 |
|
Earnings per
weighted average common share, diluted |
$ |
1.06 |
|
|
$ |
1.17 |
|
|
$ |
4.18 |
|
|
$ |
4.42 |
|
Weighted
average common shares outstanding, basic |
|
33,468,572 |
|
|
|
34,349,089 |
|
|
|
34,178,804 |
|
|
|
34,306,336 |
|
Weighted
average common shares outstanding, diluted |
|
33,498,681 |
|
|
|
34,460,985 |
|
|
|
34,210,646 |
|
|
|
34,443,040 |
|
Actual
shares outstanding at period end |
|
33,241,496 |
|
|
|
34,387,919 |
|
|
|
33,241,496 |
|
|
|
34,387,919 |
|
Book value
per common share at period end |
$ |
35.82 |
|
|
$ |
32.25 |
|
|
$ |
35.82 |
|
|
$ |
32.25 |
|
Tangible
book value per common share at period end (1) |
$ |
32.67 |
|
|
$ |
29.17 |
|
|
$ |
32.67 |
|
|
$ |
29.17 |
|
Dividend per
common share |
$ |
0.22 |
|
|
$ |
- |
|
|
$ |
0.66 |
|
|
$ |
- |
|
|
|
|
|
|
|
|
|
Performance Ratios (annualized): |
|
|
|
|
|
|
|
Return on
average assets |
|
1.49 |
% |
|
|
1.90 |
% |
|
|
1.61 |
% |
|
|
1.91 |
% |
Return on
average common equity |
|
11.78 |
% |
|
|
14.82 |
% |
|
|
12.20 |
% |
|
|
14.89 |
% |
Return on
average tangible common equity |
|
12.91 |
% |
|
|
16.43 |
% |
|
|
13.40 |
% |
|
|
16.63 |
% |
Net interest
margin |
|
3.49 |
% |
|
|
3.97 |
% |
|
|
3.77 |
% |
|
|
4.10 |
% |
Efficiency
ratio (2) |
|
39.71 |
% |
|
|
36.09 |
% |
|
|
39.99 |
% |
|
|
37.31 |
% |
|
|
|
|
|
|
|
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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 |
|
151.16 |
% |
|
|
429.72 |
% |
|
|
151.16 |
% |
|
|
429.72 |
% |
Nonperforming loans to total loans (3) |
|
0.65 |
% |
|
|
0.23 |
% |
|
|
0.65 |
% |
|
|
0.23 |
% |
Nonperforming assets to total assets |
|
0.56 |
% |
|
|
0.21 |
% |
|
|
0.56 |
% |
|
|
0.21 |
% |
Net
charge-offs (annualized) to average loans (3) |
|
0.16 |
% |
|
|
0.05 |
% |
|
|
0.13 |
% |
|
|
0.05 |
% |
Common
equity to total assets |
|
13.25 |
% |
|
|
13.22 |
% |
|
|
13.25 |
% |
|
|
13.22 |
% |
Tier 1
capital (to average assets) |
|
11.62 |
% |
|
|
12.10 |
% |
|
|
11.62 |
% |
|
|
12.10 |
% |
Total
capital (to risk weighted assets) |
|
16.20 |
% |
|
|
16.08 |
% |
|
|
16.20 |
% |
|
|
16.08 |
% |
Common
equity tier 1 capital (to risk weighted assets) |
|
12.87 |
% |
|
|
12.49 |
% |
|
|
12.87 |
% |
|
|
12.49 |
% |
Tangible
common equity ratio (1) |
|
12.22 |
% |
|
|
12.11 |
% |
|
|
12.22 |
% |
|
|
12.11 |
% |
|
|
|
|
|
|
|
|
Loan
Balances - Period End (in thousands): |
|
|
|
|
|
|
|
Commercial
and Industrial |
$ |
1,545,906 |
|
|
$ |
1,553,112 |
|
|
$ |
1,545,906 |
|
|
$ |
1,553,112 |
|
Commercial
real estate - owner occupied |
$ |
985,409 |
|
|
$ |
887,814 |
|
|
$ |
985,409 |
|
|
$ |
887,814 |
|
Commercial
real estate - income producing |
$ |
3,702,747 |
|
|
$ |
3,256,900 |
|
|
$ |
3,702,747 |
|
|
$ |
3,256,900 |
|
1-4 Family
mortgage |
$ |
104,221 |
|
|
$ |
106,418 |
|
|
$ |
104,221 |
|
|
$ |
106,418 |
|
Construction
- commercial and residential |
$ |
1,035,754 |
|
|
$ |
1,039,815 |
|
|
$ |
1,035,754 |
|
|
$ |
1,039,815 |
|
Construction
- C&I (owner occupied) |
$ |
89,490 |
|
|
$ |
57,797 |
|
|
$ |
89,490 |
|
|
$ |
57,797 |
|
Home
equity |
$ |
80,061 |
|
|
$ |
86,603 |
|
|
$ |
80,061 |
|
|
$ |
86,603 |
|
Other
consumer |
$ |
2,160 |
|
|
$ |
2,988 |
|
|
$ |
2,160 |
|
|
$ |
2,988 |
|
|
|
|
|
|
|
|
|
Average Balances (in thousands): |
|
|
|
|
|
|
|
Total
assets |
$ |
9,426,220 |
|
|
$ |
8,415,480 |
|
|
$ |
8,853,066 |
|
|
$ |
7,958,941 |
|
Total
earning assets |
$ |
9,160,034 |
|
|
$ |
8,171,010 |
|
|
$ |
8,585,184 |
|
|
$ |
7,726,401 |
|
Total
loans |
$ |
7,532,179 |
|
|
$ |
6,897,434 |
|
|
$ |
7,332,886 |
|
|
$ |
6,638,136 |
|
Total
deposits |
$ |
7,716,973 |
|
|
$ |
6,950,714 |
|
|
$ |
7,231,679 |
|
|
$ |
6,444,551 |
|
Total
borrowings |
$ |
449,432 |
|
|
$ |
342,637 |
|
|
$ |
383,230 |
|
|
$ |
453,581 |
|
Total
shareholders’ equity |
$ |
1,194,337 |
|
|
$ |
1,079,622 |
|
|
$ |
1,172,051 |
|
|
$ |
1,022,642 |
|
|
|
|
|
|
|
|
|
(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.
(2) Computed by dividing noninterest
expense by the sum of net interest income and noninterest
income.
(3) Excludes loans held for sale.
|
|
|
|
|
|
|
|
GAAP
Reconciliation (Unaudited) |
|
|
|
|
|
|
|
(dollars in
thousands except per share data) |
|
|
|
|
|
|
|
|
Three Months
Ended |
|
Three Months
Ended |
|
Year
Ended |
|
Year
Ended |
|
December 31, 2019 |
|
December 31, 2018 |
|
December 31, 2019 |
|
December 31, 2018 |
Common shareholders' equity |
$ |
1,190,681 |
|
|
$ |
1,108,941 |
|
|
$ |
1,190,681 |
|
|
$ |
1,108,941 |
|
Less:
Intangible assets |
|
(104,739 |
) |
|
|
(105,766 |
) |
|
|
(104,739 |
) |
|
|
(105,766 |
) |
Tangible common equity |
$ |
1,085,942 |
|
|
$ |
1,003,175 |
|
|
$ |
1,085,942 |
|
|
$ |
1,003,175 |
|
|
|
|
|
|
|
|
|
Book value
per common share |
$ |
35.82 |
|
|
$ |
32.25 |
|
|
$ |
35.82 |
|
|
$ |
32.25 |
|
Less:
Intangible book value per common share |
|
(3.15 |
) |
|
|
(3.08 |
) |
|
|
(3.15 |
) |
|
|
(3.08 |
) |
Tangible book value per common share |
$ |
32.67 |
|
|
$ |
29.17 |
|
|
$ |
32.67 |
|
|
$ |
29.17 |
|
|
|
|
|
|
|
|
|
Total
assets |
$ |
8,988,719 |
|
|
$ |
8,389,137 |
|
|
$ |
8,988,719 |
|
|
$ |
8,389,137 |
|
Less:
Intangible assets |
|
(104,739 |
) |
|
|
(105,766 |
) |
|
|
(104,739 |
) |
|
|
(105,766 |
) |
Tangible assets |
$ |
8,883,980 |
|
|
$ |
8,283,371 |
|
|
$ |
8,883,980 |
|
|
$ |
8,283,371 |
|
Tangible common equity ratio |
|
12.22 |
% |
|
|
12.11 |
% |
|
|
12.22 |
% |
|
|
12.11 |
% |
|
|
|
|
|
|
|
|
Average
common shareholders' equity |
$ |
1,194,337 |
|
|
$ |
1,079,622 |
|
|
$ |
1,172,051 |
|
|
$ |
1,022,642 |
|
Less:
Average intangible assets |
|
(104,784 |
) |
|
|
(106,379 |
) |
|
|
(105,167 |
) |
|
|
(106,806 |
) |
Average tangible common equity |
$ |
1,089,553 |
|
|
$ |
973,243 |
|
|
$ |
1,066,884 |
|
|
$ |
915,836 |
|
|
|
|
|
|
|
|
|
Net Income
Available to Common Shareholders |
$ |
35,456 |
|
|
$ |
40,317 |
|
|
$ |
142,943 |
|
|
$ |
152,276 |
|
Average
tangible common equity |
$ |
1,089,553 |
|
|
$ |
973,243 |
|
|
$ |
1,066,884 |
|
|
$ |
915,836 |
|
Return on Average Tangible Common Equity |
|
12.91 |
% |
|
|
16.43 |
% |
|
|
13.40 |
% |
|
|
16.63 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Eagle Bancorp, Inc. |
|
|
|
|
|
Consolidated Balance Sheets (Unaudited) |
|
|
|
|
|
(dollars in
thousands, except per share data) |
|
|
|
|
|
|
|
|
|
|
|
Assets |
December 31,
2019 |
|
September
30, 2019 |
|
December 31,
2018 |
Cash and due from banks |
$ |
7,539 |
|
|
$ |
6,657 |
|
|
$ |
6,773 |
|
Federal
funds sold |
|
38,987 |
|
|
|
27,711 |
|
|
|
11,934 |
|
Interest
bearing deposits with banks and other short-term investments |
|
195,447 |
|
|
|
361,154 |
|
|
|
303,157 |
|
Investment
securities available for sale, at fair value |
|
843,363 |
|
|
|
708,545 |
|
|
|
784,139 |
|
Federal
Reserve and Federal Home Loan Bank stock |
|
35,194 |
|
|
|
28,725 |
|
|
|
23,506 |
|
Loans held
for sale |
|
56,707 |
|
|
|
52,199 |
|
|
|
19,254 |
|
Loans |
|
7,545,748 |
|
|
|
7,559,161 |
|
|
|
6,991,447 |
|
Less
allowance for credit losses |
|
(73,658 |
) |
|
|
(73,720 |
) |
|
|
(69,944 |
) |
Loans, net |
|
7,472,090 |
|
|
|
7,485,441 |
|
|
|
6,921,503 |
|
Premises and
equipment, net |
|
14,622 |
|
|
|
14,515 |
|
|
|
16,851 |
|
Operating
lease right-of-use assets |
|
27,372 |
|
|
|
26,552 |
|
|
|
- |
|
Deferred
income taxes |
|
29,804 |
|
|
|
29,722 |
|
|
|
33,027 |
|
Bank owned
life insurance |
|
75,724 |
|
|
|
74,726 |
|
|
|
73,441 |
|
Intangible
assets, net |
|
104,739 |
|
|
|
104,915 |
|
|
|
105,766 |
|
Other real
estate owned |
|
1,487 |
|
|
|
1,487 |
|
|
|
1,394 |
|
Other
assets |
|
85,644 |
|
|
|
81,118 |
|
|
|
88,392 |
|
Total Assets |
$ |
8,988,719 |
|
|
$ |
9,003,467 |
|
|
$ |
8,389,137 |
|
|
|
|
|
|
|
Liabilities and Shareholders' Equity |
|
|
|
|
|
Deposits: |
|
|
|
|
|
Noninterest bearing demand |
$ |
2,064,367 |
|
|
$ |
2,051,106 |
|
|
$ |
2,104,220 |
|
Interest bearing transaction |
|
863,856 |
|
|
|
918,011 |
|
|
|
593,107 |
|
Savings and money market |
|
3,013,129 |
|
|
|
3,034,530 |
|
|
|
2,949,559 |
|
Time, $100,000 or more |
|
663,987 |
|
|
|
772,340 |
|
|
|
801,957 |
|
Other time |
|
619,052 |
|
|
|
626,526 |
|
|
|
525,442 |
|
Total deposits |
|
7,224,391 |
|
|
|
7,402,513 |
|
|
|
6,974,285 |
|
Customer
repurchase agreements |
|
30,980 |
|
|
|
30,297 |
|
|
|
30,413 |
|
Other
short-term borrowings |
|
250,000 |
|
|
|
100,000 |
|
|
|
- |
|
Long-term
borrowings |
|
217,687 |
|
|
|
217,589 |
|
|
|
217,296 |
|
Operating
lease liabilities |
|
29,959 |
|
|
|
29,586 |
|
|
|
- |
|
Other
liabilities |
|
45,021 |
|
|
|
38,888 |
|
|
|
58,202 |
|
Total liabilities |
|
7,798,038 |
|
|
|
7,818,873 |
|
|
|
7,280,196 |
|
|
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
Common
stock, par value $.01 per share; shares authorized 100,000,000,
shares |
|
|
|
|
|
issued and outstanding 33,241,496, 33,720,522, and 34,387,919,
respectively |
|
331 |
|
|
|
336 |
|
|
|
342 |
|
Additional
paid in capital |
|
482,286 |
|
|
|
502,566 |
|
|
|
528,380 |
|
Retained
earnings |
|
705,105 |
|
|
|
677,055 |
|
|
|
584,494 |
|
Accumulated
other comprehensive income (loss) |
|
2,959 |
|
|
|
4,637 |
|
|
|
(4,275 |
) |
Total Shareholders' Equity |
|
1,190,681 |
|
|
|
1,184,594 |
|
|
|
1,108,941 |
|
Total Liabilities and Shareholders' Equity |
$ |
8,988,719 |
|
|
$ |
9,003,467 |
|
|
$ |
8,389,137 |
|
|
|
|
|
|
` |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 |
2019 |
|
2018 |
|
2019 |
|
2018 |
Interest and fees on loans |
$ |
98,916 |
|
|
$ |
97,682 |
|
|
$ |
400,923 |
|
|
$ |
368,606 |
|
Interest and dividends on investment securities |
|
5,297 |
|
|
|
5,382 |
|
|
|
21,037 |
|
|
|
17,907 |
|
Interest on balances with other banks and short-term
investments |
|
2,905 |
|
|
|
2,464 |
|
|
|
7,438 |
|
|
|
6,616 |
|
Interest on federal funds sold |
|
65 |
|
|
|
53 |
|
|
|
232 |
|
|
|
157 |
|
Total interest income |
|
107,183 |
|
|
|
105,581 |
|
|
|
429,630 |
|
|
|
393,286 |
|
Interest Expense |
|
|
|
|
|
|
|
Interest on deposits |
|
23,089 |
|
|
|
20,314 |
|
|
|
91,026 |
|
|
|
60,210 |
|
Interest on customer repurchase agreements |
|
90 |
|
|
|
59 |
|
|
|
345 |
|
|
|
225 |
|
Interest on other short-term borrowings |
|
315 |
|
|
|
517 |
|
|
|
2,298 |
|
|
|
3,942 |
|
Interest on long-term borrowings |
|
2,979 |
|
|
|
2,979 |
|
|
|
11,916 |
|
|
|
11,916 |
|
Total interest expense |
|
26,473 |
|
|
|
23,869 |
|
|
|
105,585 |
|
|
|
76,293 |
|
Net
Interest Income |
|
80,710 |
|
|
|
81,712 |
|
|
|
324,045 |
|
|
|
316,993 |
|
Provision for Credit Losses |
|
2,945 |
|
|
|
2,600 |
|
|
|
13,091 |
|
|
|
8,660 |
|
Net
Interest Income After Provision For Credit Losses |
|
77,765 |
|
|
|
79,112 |
|
|
|
310,954 |
|
|
|
308,333 |
|
|
|
|
|
|
|
|
|
Noninterest Income |
|
|
|
|
|
|
|
Service charges on deposits |
|
1,453 |
|
|
|
1,826 |
|
|
|
6,247 |
|
|
|
7,014 |
|
(Loss) Gain on sale of loans |
|
2,600 |
|
|
|
1,331 |
|
|
|
8,474 |
|
|
|
5,963 |
|
Gain on sale of investment securities |
|
(111 |
) |
|
|
29 |
|
|
|
1,517 |
|
|
|
97 |
|
Increase in the cash surrender value of bank owned life
insurance |
|
418 |
|
|
|
434 |
|
|
|
1,703 |
|
|
|
1,507 |
|
Other income |
|
2,374 |
|
|
|
2,469 |
|
|
|
7,758 |
|
|
|
8,005 |
|
Total noninterest income |
|
6,734 |
|
|
|
6,089 |
|
|
|
25,699 |
|
|
|
22,586 |
|
Noninterest Expense |
|
|
|
|
|
|
|
Salaries and employee benefits |
|
19,360 |
|
|
|
15,907 |
|
|
|
79,842 |
|
|
|
67,734 |
|
Premises and equipment expenses |
|
3,380 |
|
|
|
3,969 |
|
|
|
14,387 |
|
|
|
15,660 |
|
Marketing and advertising |
|
1,200 |
|
|
|
1,147 |
|
|
|
4,826 |
|
|
|
4,566 |
|
Data processing |
|
2,251 |
|
|
|
2,570 |
|
|
|
9,412 |
|
|
|
9,714 |
|
Legal, accounting and professional fees |
|
4,121 |
|
|
|
2,460 |
|
|
|
12,195 |
|
|
|
9,742 |
|
FDIC insurance |
|
879 |
|
|
|
953 |
|
|
|
3,206 |
|
|
|
3,512 |
|
Other expenses |
|
3,535 |
|
|
|
4,681 |
|
|
|
15,994 |
|
|
|
15,783 |
|
Total noninterest expense |
|
34,726 |
|
|
|
31,687 |
|
|
|
139,862 |
|
|
|
126,711 |
|
Income Before Income Tax Expense |
|
49,773 |
|
|
|
53,514 |
|
|
|
196,791 |
|
|
|
204,208 |
|
Income Tax Expense |
|
14,317 |
|
|
|
13,197 |
|
|
|
53,848 |
|
|
|
51,932 |
|
Net
Income |
$ |
35,456 |
|
|
$ |
40,317 |
|
|
$ |
142,943 |
|
|
$ |
152,276 |
|
|
|
|
|
|
|
|
|
Earnings Per Common Share |
|
|
|
|
|
|
|
Basic |
$ |
1.06 |
|
|
$ |
1.17 |
|
|
$ |
4.18 |
|
|
$ |
4.44 |
|
Diluted |
$ |
1.06 |
|
|
$ |
1.17 |
|
|
$ |
4.18 |
|
|
$ |
4.42 |
|
|
|
|
|
|
|
|
|
|
Eagle
Bancorp, Inc. |
Consolidated
Average Balances, Interest Yields And Rates
(Unaudited) |
(dollars in
thousands) |
|
|
|
|
|
|
|
|
|
Three Months Ended December 31, |
|
2019 |
|
2018 |
|
Average Balance |
Interest |
AverageYield/Rate |
|
Average Balance |
Interest |
AverageYield/Rate |
ASSETS |
|
|
|
|
|
|
|
Interest
earning assets: |
|
|
|
|
|
|
|
Interest bearing deposits with other banks and other short-term
investments |
$ |
710,038 |
|
$ |
2,905 |
|
1.62 |
% |
|
$ |
459,139 |
|
$ |
2,464 |
|
2.13 |
% |
Loans held
for sale (1) |
|
57,779 |
|
|
524 |
|
3.63 |
% |
|
|
21,457 |
|
|
256 |
|
4.77 |
% |
Loans
(1) (2) |
|
7,532,179 |
|
|
98,392 |
|
5.18 |
% |
|
|
6,897,434 |
|
|
97,426 |
|
5.60 |
% |
Investment
securities available for sale (2) |
|
831,143 |
|
|
5,297 |
|
2.53 |
% |
|
|
775,706 |
|
|
5,382 |
|
2.75 |
% |
Federal
funds sold |
|
28,895 |
|
|
65 |
|
0.89 |
% |
|
|
17,274 |
|
|
53 |
|
1.22 |
% |
Total interest earning assets |
|
9,160,034 |
|
|
107,183 |
|
4.64 |
% |
|
|
8,171,010 |
|
|
105,581 |
|
5.13 |
% |
|
|
|
|
|
|
|
|
Total
noninterest earning assets |
|
340,186 |
|
|
|
|
|
313,614 |
|
|
|
Less:
allowance for credit losses |
|
74,000 |
|
|
|
|
|
69,144 |
|
|
|
Total noninterest earning assets |
|
266,186 |
|
|
|
|
|
244,470 |
|
|
|
TOTAL ASSETS |
$ |
9,426,220 |
|
|
|
|
$ |
8,415,480 |
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS' EQUITY |
|
|
|
|
|
|
|
Interest
bearing liabilities: |
|
|
|
|
|
|
|
Interest
bearing transaction |
$ |
881,453 |
|
$ |
2,284 |
|
1.03 |
% |
|
$ |
539,764 |
|
$ |
1,096 |
|
0.81 |
% |
Savings and
money market |
|
3,144,249 |
|
|
12,195 |
|
1.54 |
% |
|
|
2,754,480 |
|
|
11,688 |
|
1.68 |
% |
Time
deposits |
|
1,400,330 |
|
|
8,610 |
|
2.44 |
% |
|
|
1,329,294 |
|
|
7,530 |
|
2.25 |
% |
Total interest bearing deposits |
|
5,426,032 |
|
|
23,089 |
|
1.69 |
% |
|
|
4,623,538 |
|
|
20,314 |
|
1.74 |
% |
Customer
repurchase agreements |
|
31,231 |
|
|
90 |
|
1.14 |
% |
|
|
40,859 |
|
|
59 |
|
0.57 |
% |
Other
short-term borrowings |
|
200,547 |
|
|
315 |
|
0.61 |
% |
|
|
84,515 |
|
|
517 |
|
2.39 |
% |
Long-term
borrowings |
|
217,654 |
|
|
2,979 |
|
5.36 |
% |
|
|
217,263 |
|
|
2,979 |
|
5.37 |
% |
Total interest bearing liabilities |
|
5,875,464 |
|
|
26,473 |
|
1.79 |
% |
|
|
4,966,175 |
|
|
23,869 |
|
1.91 |
% |
|
|
|
|
|
|
|
|
Noninterest
bearing liabilities: |
|
|
|
|
|
|
|
Noninterest
bearing demand |
|
2,290,941 |
|
|
|
|
|
2,327,176 |
|
|
|
Other
liabilities |
|
65,478 |
|
|
|
|
|
42,507 |
|
|
|
Total noninterest bearing liabilities |
|
2,356,419 |
|
|
|
|
|
2,369,683 |
|
|
|
|
|
|
|
|
|
|
|
Shareholders’ Equity |
|
1,194,337 |
|
|
|
|
|
1,079,622 |
|
|
|
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY |
$ |
9,426,220 |
|
|
|
|
$ |
8,415,480 |
|
|
|
|
|
|
|
|
|
|
|
Net interest
income |
|
$ |
80,710 |
|
|
|
|
$ |
81,712 |
|
|
Net interest
spread |
|
|
2.85 |
% |
|
|
|
3.22 |
% |
Net interest
margin |
|
|
3.49 |
% |
|
|
|
3.97 |
% |
Cost of
funds |
|
|
1.15 |
% |
|
|
|
1.16 |
% |
|
|
|
|
|
|
|
|
(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 for each of the three months ended December 31, 2019
and 2018. |
(2) Interest and fees
on loans and investments exclude tax equivalent adjustments. |
|
|
|
|
|
|
|
|
|
Eagle
Bancorp, Inc. |
Consolidated
Average Balances, Interest Yields and Rates
(Unaudited) |
(dollars in
thousands) |
|
|
|
|
|
|
|
|
|
Years Ended December 31, |
|
2019 |
|
2018 |
|
Average Balance |
Interest |
AverageYield/Rate |
|
Average Balance |
Interest |
AverageYield/Rate |
ASSETS |
|
|
|
|
|
|
|
Interest
earning assets: |
|
|
|
|
|
|
|
Interest bearing deposits with other banks and other short-term
investments |
$ |
392,245 |
|
$ |
7,438 |
|
1.90 |
% |
|
$ |
356,017 |
|
$ |
6,616 |
|
1.86 |
% |
Loans held
for sale (1) |
|
40,192 |
|
|
1,565 |
|
3.89 |
% |
|
|
23,877 |
|
|
1,095 |
|
4.59 |
% |
Loans
(1) (2) |
|
7,332,886 |
|
|
399,358 |
|
5.45 |
% |
|
|
6,638,136 |
|
|
367,511 |
|
5.54 |
% |
Investment
securities available for sale (1) |
|
796,608 |
|
|
21,037 |
|
2.64 |
% |
|
|
692,753 |
|
|
17,907 |
|
2.58 |
% |
Federal
funds sold |
|
23,253 |
|
|
232 |
|
1.00 |
% |
|
|
15,618 |
|
|
157 |
|
1.01 |
% |
Total interest earning assets |
|
8,585,184 |
|
|
429,630 |
|
5.00 |
% |
|
|
7,726,401 |
|
|
393,286 |
|
5.09 |
% |
|
|
|
|
|
|
|
|
Total
noninterest earning assets |
|
339,565 |
|
|
|
|
|
299,653 |
|
|
|
Less:
allowance for credit losses |
|
71,683 |
|
|
|
|
|
67,113 |
|
|
|
Total noninterest earning assets |
|
267,882 |
|
|
|
|
|
232,540 |
|
|
|
TOTAL ASSETS |
$ |
8,853,066 |
|
|
|
|
$ |
7,958,941 |
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS' EQUITY |
|
|
|
|
|
|
|
Interest
bearing liabilities: |
|
|
|
|
|
|
|
Interest
bearing transaction |
$ |
743,361 |
|
$ |
6,491 |
|
0.87 |
% |
|
$ |
460,599 |
|
$ |
3,348 |
|
0.73 |
% |
Savings and
money market |
|
2,873,054 |
|
|
50,042 |
|
1.74 |
% |
|
|
2,691,726 |
|
|
35,534 |
|
1.32 |
% |
Time
deposits |
|
1,404,748 |
|
|
34,493 |
|
2.46 |
% |
|
|
1,141,795 |
|
|
21,328 |
|
1.87 |
% |
Total interest bearing deposits |
|
5,021,163 |
|
|
91,026 |
|
1.81 |
% |
|
|
4,294,120 |
|
|
60,210 |
|
1.40 |
% |
Customer
repurchase agreements |
|
30,024 |
|
|
345 |
|
1.15 |
% |
|
|
44,333 |
|
|
225 |
|
0.51 |
% |
Other
short-term borrowings |
|
135,699 |
|
|
2,298 |
|
1.67 |
% |
|
|
192,131 |
|
|
3,942 |
|
2.02 |
% |
Long-term
borrowings |
|
217,507 |
|
|
11,916 |
|
5.40 |
% |
|
|
217,117 |
|
|
11,916 |
|
5.41 |
% |
Total interest bearing liabilities |
|
5,404,393 |
|
|
105,585 |
|
1.95 |
% |
|
|
4,747,701 |
|
|
76,293 |
|
1.61 |
% |
|
|
|
|
|
|
|
|
Noninterest
bearing liabilities: |
|
|
|
|
|
|
|
Noninterest
bearing demand |
|
2,210,516 |
|
|
|
|
|
2,150,431 |
|
|
|
Other
liabilities |
|
66,106 |
|
|
|
|
|
38,167 |
|
|
|
Total noninterest bearing liabilities |
|
2,276,622 |
|
|
|
|
|
2,188,598 |
|
|
|
|
|
|
|
|
|
|
|
Shareholders’ equity |
|
1,172,051 |
|
|
|
|
|
1,022,642 |
|
|
|
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY |
$ |
8,853,066 |
|
|
|
|
$ |
7,958,941 |
|
|
|
|
|
|
|
|
|
|
|
Net interest
income |
|
$ |
324,045 |
|
|
|
|
$ |
316,993 |
|
|
Net interest
spread |
|
|
3.05 |
% |
|
|
|
3.48 |
% |
Net interest
margin |
|
|
3.77 |
% |
|
|
|
4.10 |
% |
Cost of
funds |
|
|
1.23 |
% |
|
|
|
0.99 |
% |
|
|
|
|
|
|
|
|
(1) Loans placed on
nonaccrual status are included in average balances. Net loan fees
and late charges included in interest income on loans totaled $17.8
million and $19.6 million for the years ended December 31,
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 |
|
December
31, |
|
September
30, |
|
June
30, |
|
March
31, |
|
December
31, |
|
September
30, |
|
June
30, |
|
March
31, |
|
December
31, |
Income Statements: |
2019 |
|
2019 |
|
2019 |
|
2019 |
|
2018 |
|
2018 |
|
2018 |
|
2018 |
|
2017 |
Total interest income |
$ |
107,183 |
|
|
$ |
109,034 |
|
|
$ |
108,279 |
|
|
$ |
105,134 |
|
|
$ |
105,581 |
|
|
$ |
102,360 |
|
|
$ |
96,296 |
|
|
$ |
89,049 |
|
|
$ |
86,526 |
|
Total
interest expense |
|
26,473 |
|
|
|
28,045 |
|
|
|
26,950 |
|
|
|
24,117 |
|
|
|
23,869 |
|
|
|
21,069 |
|
|
|
18,086 |
|
|
|
13,269 |
|
|
|
11,167 |
|
Net interest
income |
|
80,710 |
|
|
|
80,989 |
|
|
|
81,329 |
|
|
|
81,017 |
|
|
|
81,712 |
|
|
|
81,291 |
|
|
|
78,210 |
|
|
|
75,780 |
|
|
|
75,359 |
|
Provision
for credit losses |
|
2,945 |
|
|
|
3,186 |
|
|
|
3,600 |
|
|
|
3,360 |
|
|
|
2,600 |
|
|
|
2,441 |
|
|
|
1,650 |
|
|
|
1,969 |
|
|
|
4,087 |
|
Net interest
income after provision for credit losses |
|
77,765 |
|
|
|
77,803 |
|
|
|
77,729 |
|
|
|
77,657 |
|
|
|
79,112 |
|
|
|
78,850 |
|
|
|
76,560 |
|
|
|
73,811 |
|
|
|
71,272 |
|
Noninterest income (before investment (loss) gain) |
|
6,845 |
|
|
|
6,161 |
|
|
|
5,797 |
|
|
|
5,379 |
|
|
|
6,060 |
|
|
|
5,640 |
|
|
|
5,527 |
|
|
|
5,262 |
|
|
|
9,496 |
|
(Loss) Gain
on sale of investment securities |
|
(111 |
) |
|
|
153 |
|
|
|
563 |
|
|
|
912 |
|
|
|
29 |
|
|
|
- |
|
|
|
26 |
|
|
|
42 |
|
|
|
- |
|
Total
noninterest income |
|
6,734 |
|
|
|
6,314 |
|
|
|
6,360 |
|
|
|
6,291 |
|
|
|
6,089 |
|
|
|
5,640 |
|
|
|
5,553 |
|
|
|
5,304 |
|
|
|
9,496 |
|
Salaries and employee benefits |
|
19,360 |
|
|
|
19,095 |
|
|
|
17,743 |
|
|
|
23,644 |
|
|
|
15,907 |
|
|
|
17,157 |
|
|
|
17,812 |
|
|
|
16,858 |
|
|
|
16,678 |
|
Premises and equipment |
|
3,380 |
|
|
|
3,503 |
|
|
|
3,652 |
|
|
|
3,852 |
|
|
|
3,969 |
|
|
|
3,889 |
|
|
|
3,873 |
|
|
|
3,929 |
|
|
|
4,019 |
|
Marketing and advertising |
|
1,200 |
|
|
|
1,210 |
|
|
|
1,268 |
|
|
|
1,148 |
|
|
|
1,147 |
|
|
|
1,191 |
|
|
|
1,291 |
|
|
|
937 |
|
|
|
1,222 |
|
Other expenses |
|
10,786 |
|
|
|
9,665 |
|
|
|
10,696 |
|
|
|
9,660 |
|
|
|
10,664 |
|
|
|
9,377 |
|
|
|
9,313 |
|
|
|
9,397 |
|
|
|
7,884 |
|
Total
noninterest expense |
|
34,726 |
|
|
|
33,473 |
|
|
|
33,359 |
|
|
|
38,304 |
|
|
|
31,687 |
|
|
|
31,614 |
|
|
|
32,289 |
|
|
|
31,121 |
|
|
|
29,803 |
|
Income
before income tax expense |
|
49,773 |
|
|
|
50,644 |
|
|
|
50,730 |
|
|
|
45,644 |
|
|
|
53,514 |
|
|
|
52,876 |
|
|
|
49,824 |
|
|
|
47,994 |
|
|
|
50,965 |
|
Income tax
expense |
|
14,317 |
|
|
|
14,149 |
|
|
|
13,487 |
|
|
|
11,895 |
|
|
|
13,197 |
|
|
|
13,928 |
|
|
|
12,528 |
|
|
|
12,279 |
|
|
|
35,396 |
|
Net
income |
|
35,456 |
|
|
|
36,495 |
|
|
|
37,243 |
|
|
|
33,749 |
|
|
|
40,317 |
|
|
|
38,948 |
|
|
|
37,296 |
|
|
|
35,715 |
|
|
|
15,569 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Per
Share Data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per
weighted average common share, basic |
$ |
1.06 |
|
|
$ |
1.07 |
|
|
$ |
1.08 |
|
|
$ |
0.98 |
|
|
$ |
1.17 |
|
|
$ |
1.14 |
|
|
$ |
1.09 |
|
|
$ |
1.04 |
|
|
$ |
0.46 |
|
Earnings per
weighted average common share, diluted |
$ |
1.06 |
|
|
$ |
1.07 |
|
|
$ |
1.08 |
|
|
$ |
0.98 |
|
|
$ |
1.17 |
|
|
$ |
1.13 |
|
|
$ |
1.08 |
|
|
$ |
1.04 |
|
|
$ |
0.45 |
|
Weighted
average common shares outstanding, basic |
|
33,468,572 |
|
|
|
34,232,890 |
|
|
|
34,540,152 |
|
|
|
34,480,772 |
|
|
|
34,349,089 |
|
|
|
34,308,684 |
|
|
|
34,305,693 |
|
|
|
34,260,882 |
|
|
|
34,179,793 |
|
Weighted
average common shares outstanding, diluted |
|
33,498,681 |
|
|
|
34,255,889 |
|
|
|
34,565,253 |
|
|
|
34,536,236 |
|
|
|
34,460,985 |
|
|
|
34,460,794 |
|
|
|
34,448,354 |
|
|
|
34,406,310 |
|
|
|
34,334,873 |
|
Actual
shares outstanding at period end |
|
33,241,496 |
|
|
|
33,720,522 |
|
|
|
34,539,853 |
|
|
|
34,537,193 |
|
|
|
34,387,919 |
|
|
|
34,308,473 |
|
|
|
34,305,071 |
|
|
|
34,303,056 |
|
|
|
34,185,163 |
|
Book value
per common share at period end |
$ |
35.82 |
|
|
$ |
35.13 |
|
|
$ |
34.30 |
|
|
$ |
33.25 |
|
|
$ |
32.25 |
|
|
$ |
30.94 |
|
|
$ |
29.82 |
|
|
$ |
28.72 |
|
|
$ |
27.80 |
|
Tangible
book value per common share at period end (1) |
$ |
32.67 |
|
|
$ |
32.02 |
|
|
$ |
31.25 |
|
|
$ |
30.20 |
|
|
$ |
29.17 |
|
|
$ |
27.84 |
|
|
$ |
26.71 |
|
|
$ |
25.60 |
|
|
$ |
24.67 |
|
Dividend per
common share |
$ |
0.22 |
|
|
$ |
0.22 |
|
|
$ |
0.22 |
|
|
$ |
- |
|
|
$ |
- |
|
|
$ |
- |
|
|
$ |
- |
|
|
$ |
- |
|
|
$ |
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Performance Ratios (annualized): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on
average assets |
|
1.49 |
% |
|
|
1.62 |
% |
|
|
1.74 |
% |
|
|
1.62 |
% |
|
|
1.90 |
% |
|
|
1.93 |
% |
|
|
1.92 |
% |
|
|
1.91 |
% |
|
|
0.82 |
% |
Return on
average common equity |
|
11.78 |
% |
|
|
12.09 |
% |
|
|
12.81 |
% |
|
|
12.12 |
% |
|
|
14.82 |
% |
|
|
14.85 |
% |
|
|
14.93 |
% |
|
|
14.99 |
% |
|
|
6.49 |
% |
Return on
average tangible common equity |
|
12.91 |
% |
|
|
13.25 |
% |
|
|
14.08 |
% |
|
|
13.38 |
% |
|
|
16.43 |
% |
|
|
16.54 |
% |
|
|
16.71 |
% |
|
|
16.86 |
% |
|
|
7.31 |
% |
Net interest
margin |
|
3.49 |
% |
|
|
3.72 |
% |
|
|
3.91 |
% |
|
|
4.02 |
% |
|
|
3.97 |
% |
|
|
4.14 |
% |
|
|
4.15 |
% |
|
|
4.17 |
% |
|
|
4.13 |
% |
Efficiency
ratio (2) |
|
39.71 |
% |
|
|
38.34 |
% |
|
|
38.04 |
% |
|
|
43.87 |
% |
|
|
36.09 |
% |
|
|
36.37 |
% |
|
|
38.55 |
% |
|
|
38.38 |
% |
|
|
35.12 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Ratios: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance
for credit losses to total loans (3) |
|
0.98 |
% |
|
|
0.98 |
% |
|
|
0.98 |
% |
|
|
0.98 |
% |
|
|
1.00 |
% |
|
|
1.00 |
% |
|
|
1.00 |
% |
|
|
1.00 |
% |
|
|
1.01 |
% |
Allowance
for credit losses to total nonperforming loans
(4) |
|
151.16 |
% |
|
|
127.87 |
% |
|
|
192.70 |
% |
|
|
173.72 |
% |
|
|
429.72 |
% |
|
|
452.28 |
% |
|
|
612.42 |
% |
|
|
491.56 |
% |
|
|
489.20 |
% |
Nonperforming loans to total loans (3) (4) |
|
0.65 |
% |
|
|
0.76 |
% |
|
|
0.51 |
% |
|
|
0.56 |
% |
|
|
0.23 |
% |
|
|
0.22 |
% |
|
|
0.16 |
% |
|
|
0.20 |
% |
|
|
0.21 |
% |
Nonperforming assets to total assets (4) |
|
0.56 |
% |
|
|
0.66 |
% |
|
|
0.45 |
% |
|
|
0.50 |
% |
|
|
0.21 |
% |
|
|
0.20 |
% |
|
|
0.16 |
% |
|
|
0.19 |
% |
|
|
0.20 |
% |
Net
charge-offs (annualized) to average loans (3) |
|
0.16 |
% |
|
|
0.08 |
% |
|
|
0.08 |
% |
|
|
0.19 |
% |
|
|
0.05 |
% |
|
|
0.05 |
% |
|
|
0.05 |
% |
|
|
0.06 |
% |
|
|
0.15 |
% |
Tier 1
capital (to average assets) |
|
11.62 |
% |
|
|
12.19 |
% |
|
|
12.66 |
% |
|
|
12.49 |
% |
|
|
12.08 |
% |
|
|
12.13 |
% |
|
|
11.97 |
% |
|
|
11.76 |
% |
|
|
11.45 |
% |
Total
capital (to risk weighted assets) |
|
16.20 |
% |
|
|
16.08 |
% |
|
|
16.36 |
% |
|
|
16.22 |
% |
|
|
16.08 |
% |
|
|
15.74 |
% |
|
|
15.59 |
% |
|
|
15.32 |
% |
|
|
15.02 |
% |
Common
equity tier 1 capital (to risk weighted assets) |
|
12.87 |
% |
|
|
12.76 |
% |
|
|
12.87 |
% |
|
|
12.69 |
% |
|
|
12.47 |
% |
|
|
12.11 |
% |
|
|
11.89 |
% |
|
|
11.57 |
% |
|
|
11.23 |
% |
Tangible
common equity ratio (1) |
|
12.22 |
% |
|
|
12.13 |
% |
|
|
12.60 |
% |
|
|
12.59 |
% |
|
|
12.11 |
% |
|
|
12.01 |
% |
|
|
11.79 |
% |
|
|
11.57 |
% |
|
|
11.44 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Balances (in thousands): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
assets |
$ |
9,426,220 |
|
|
$ |
8,923,406 |
|
|
$ |
8,595,523 |
|
|
$ |
8,455,680 |
|
|
$ |
8,415,480 |
|
|
$ |
8,023,535 |
|
|
$ |
7,789,564 |
|
|
$ |
7,597,485 |
|
|
$ |
7,487,624 |
|
Total
earning assets |
$ |
9,160,034 |
|
|
$ |
8,655,196 |
|
|
$ |
8,328,323 |
|
|
$ |
8,185,711 |
|
|
$ |
8,171,010 |
|
|
$ |
7,793,422 |
|
|
$ |
7,558,138 |
|
|
$ |
7,373,535 |
|
|
$ |
7,242,994 |
|
Total
loans |
$ |
7,532,179 |
|
|
$ |
7,492,816 |
|
|
$ |
7,260,899 |
|
|
$ |
7,038,472 |
|
|
$ |
6,897,434 |
|
|
$ |
6,646,264 |
|
|
$ |
6,569,931 |
|
|
$ |
6,433,730 |
|
|
$ |
6,207,505 |
|
Total
deposits |
$ |
7,716,973 |
|
|
$ |
7,319,314 |
|
|
$ |
6,893,981 |
|
|
$ |
6,987,468 |
|
|
$ |
6,950,714 |
|
|
$ |
6,485,144 |
|
|
$ |
6,269,126 |
|
|
$ |
6,063,017 |
|
|
$ |
6,101,727 |
|
Total
borrowings |
$ |
449,432 |
|
|
$ |
345,464 |
|
|
$ |
470,214 |
|
|
$ |
266,209 |
|
|
$ |
342,637 |
|
|
$ |
464,460 |
|
|
$ |
485,729 |
|
|
$ |
523,369 |
|
|
$ |
382,687 |
|
Total
shareholders’ equity |
$ |
1,194,337 |
|
|
$ |
1,197,513 |
|
|
$ |
1,166,487 |
|
|
$ |
1,128,869 |
|
|
$ |
1,079,622 |
|
|
$ |
1,040,826 |
|
|
$ |
1,002,091 |
|
|
$ |
966,585 |
|
|
$ |
951,727 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Tangible common
equity to tangible assets (the "tangible common equity ratio") and
tangible book value per common share are non-GAAP financial
measures derived from GAAP based amounts. The Company calculates
the tangible common equity ratio by excluding the balance of
intangible assets from common shareholders' equity and dividing by
tangible assets. The Company calculates tangible book value per
common share by dividing tangible common equity by common shares
outstanding, as compared to book value per common share, which
the Company calculates by dividing common shareholders' equity by
common shares outstanding. The Company considers this information
important to shareholders as tangible equity is a measure that
is consistent with the calculation of capital for bank regulatory
purposes, which excludes intangible assets from the calculation of
risk based ratios and as such is useful for investors, regulators,
management and others to evaluate capital adequacy and to
compare against other financial institutions. |
(2) Computed by
dividing noninterest expense by the sum of net interest income and
noninterest income. |
(3) Excludes loans
held for sale. |
(4) Nonperforming
loans at September 30, 2019, includes a $16.5 million loan that was
brought current shortly after quarter end. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EAGLE BANCORP,
INC.CONTACT:Michael T.
Flynn301.986.1800
Eagle Bancorp (NASDAQ:EGBN)
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