Eagle Bancorp, Inc. (the “Company”) (NASDAQ: EGBN), the parent
company of EagleBank (the “Bank”), today announced quarterly net
income of $28.9 million for the three months ended June 30, 2020, a
23% decrease, as compared to $37.2 million net income for the three
months ended June 30, 2019. Net income per basic and diluted common
share for the three months ended June 30, 2020 was $0.90 compared
to $1.08 for the same period in 2019. For the six months ended June
30, 2020, the Company’s net income was $52.0 million, a 27%
decrease from the $71.0 million of net income for the same period
in 2019. Net income per basic common share for the six months ended
June 30, 2020 was $1.60 compared to $2.06 for the same period in
2019. Net income per diluted common share for the six months ended
June 30, 2020 was $1.60 compared to $2.05 for the same period in
2019.
Summary Financial Analysis
“While the country at large experienced a very
challenging environment in the second quarter of 2020 due to the
COVID-19 pandemic’s extensive negative impacts to businesses and
the economy in general, the banking industry faced significant
related credit and interest rate challenges. In spite of these
second quarter headwinds, we believe our Company has managed well,
both in terms of our employee base staying healthy as well as
staying in close contact with our many business relationships. As a
result, we are pleased to report another quarter of overall
favorable earnings, highlighted by continued growth in average
loans and deposits, favorable operating leverage, and improved
noninterest income,” noted Susan G. Riel, President and Chief
Executive Officer of Eagle Bancorp, Inc. Ms. Riel continued, “The
Company’s assets ended the quarter at $9.8 billion, representing
13% growth over the second quarter of 2019. Second quarter 2020
earnings resulted in a return on average assets (“ROAA”) of 1.12%,
return on average common equity (“ROACE”) of 9.84%, and a return on
average tangible common equity (“ROATCE”) of 10.80%.” A
reconciliation of GAAP to non-GAAP financial measures is provided
in the tables that accompany this document.
The Company’s performance in the second quarter
of 2020 as compared to the second quarter of 2019 was highlighted
by growth in average total loans of 10%, growth in average total
deposits of 23%, 7% growth in total revenue to $93.9 million, and a
5% increase in noninterest expenses, further improving our
operating leverage and resulting in an improved efficiency ratio of
37.18% for the second quarter of 2020 versus 38.04% for the second
quarter of 2019. The improved efficiency was due to strong
noninterest income performance in the quarter. Additionally, the
ratio of non-performing loans to total loans, while elevated in the
second quarter 2020 over the first quarter, remained at reasonably
normal levels at 0.74% given the credit concerns arising from the
impact of COVID-19 related shutdowns. The evolution of the COVID-19
pandemic and related containment and relief measures will determine
how the impacts will be reflected in our loan portfolio, including
these measures, over time. Annualized net charge-offs to average
loans for the second quarter 2020 was also elevated at 0.36%
compared to 0.12% for the first quarter of 2020, primarily
resulting from one large commercial loan relationship in the
personal services industry. Ms. Riel noted, “The Company continues
to focus on changes in average loan and deposit balances quarter
over quarter and year over year since those measures more directly
impact income statement results.” Comparing those balances in the
second quarter of 2020 versus the first quarter of 2020, average
loan growth was 4.8% and average deposits increased by 10.2%. Ms.
Riel added, “Approximately 90% of the average loan growth in the
second quarter of 2020 over first quarter of 2020 was due to the
Paycheck Protection Program (“PPP”) loans, as authorized by the
Coronavirus Aid Relief and Economic Security Act (the “CARES Act”)
passed by Congress in March 2020. At June 30, 2020, the Bank had
loans outstanding of $456 million to just over 1,400 businesses
under the PPP program.”
In the second quarter 2020, as average U.S.
Treasury rates in the two to five year area declined significantly
by about 80-90 basis points and the average yield curve remained
fairly flat, we experienced 23 basis points of net interest margin
compression (from 3.49% to 3.26%) as compared to the first quarter
of 2020. In addition, our cost of funds declined 41 basis points
(from 1.06% to 0.65%), while the yield on earning assets declined
by 64 basis points (from 4.55% to 3.91%). Substantially higher
average liquidity in the second quarter compared to the first
quarter of 2020 contributed to the net interest margin compression
as average deposit growth outweighed average loan growth. Average
liquidity for the second quarter was $1.1 billion versus $605
million for the first quarter of 2020. The yield on our substantial
level of variable rate loans was negatively impacted by the much
lower interest rate environment in the second quarter of 2020,
including a 105 basis point decline in the average one-month LIBOR
rate. A substantial portion of the variable rate loans portfolio
has interest rate floors which cushioned the decline in loan
yields.
Ms. Riel added, “In the second quarter of 2020,
period end total loan growth was 2.3% from March 31, 2020, while
total deposits declined 2.5% from March 31, 2020. Excluding PPP
loan balances at June 30, 2020 total loans decreased $276 million,
or 3.5%, during the quarter. A portion of this decrease at June 30,
2020 relative to March 31, 2020 was the result of repayments on
line of credit advances taken in an abundance of caution given the
uncertainty surrounding the COVID-19 pandemic in the first quarter.
While average deposits showed good growth throughout the second
quarter, deposit balances declined sharply near quarter end, driven
in part by clients attempting to capture favorable stock market
performance in the latter half of June. New loans closed in the
second quarter of 2020 were below average levels due substantially
to the COVID-19 environment, while loan payoffs were close to
average levels. Average unfunded loan commitments have remained
stable over the last six quarters at approximately $2.2 billion.
The Company continues to emphasize achieving core deposit growth
and we continue to seek well-structured new loan opportunities. The
mix of noninterest deposits to total deposits remained favorable
and averaged 30% in the second quarter of 2020, consistent with the
average in the second quarter of 2019.
The net interest margin was 3.26% for the second
quarter of 2020, down 65 basis points from the second quarter of
2019. Ms. Riel noted, “In addition to the current sharply lower
interest rate environment as compared to 2019, 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 our loan portfolio was 4.63% for the second quarter of
2020 as compared to 5.61% for the second quarter of 2019 and 5.07%
for the first quarter of 2020. The addition of the PPP loans at an
average yield of 2.91% for the quarter negatively impacted the
overall yield of the total loan portfolio by approximately seven
basis points. The cost of funds was 0.65% for the second quarter of
2020 as compared to 1.30% for the second quarter of 2019 and 1.06%
for the first quarter of 2020. Importantly, even considering the
decline in the net interest margin, the Company’s net interest
income was stable in the second quarter of 2020 over 2019 as the
Company has continued its pattern of average balance sheet growth
while maintaining emphasis on disciplined pricing for both new
loans and funding sources in the face of competitive
pressures.”
For the first six months of 2020 as compared to
the first six months in 2019, average total loans increased 10% and
average total deposits increased by 17%.
Total revenue (net interest income plus
noninterest income) for the second quarter of 2020 was $93.9
million, or 7% above the $87.7 million of total revenue earned for
the second quarter of 2019 and was 10% higher than the $85.2
million of revenue earned in the first quarter of 2020. For the six
month periods ended June 30, 2020, total revenue was $179.1 million
for 2020 as compared to $175.0 million in 2019, a 2%
increase.
The primary driver of the Company’s revenue
growth for the second quarter of 2020 as compared to the second
quarter of 2019 was its noninterest income growth of 96% ($12.5
million versus $6.4 million), due substantially to revenue from our
Federal Housing Administration (“FHA”) Multifamily business unit
and increased originations and sales of residential mortgage loans
and the resulting gains on the sale of these loans. While we are
encouraged by the pipeline and current quarter contribution of the
FHA Multifamily business, revenue from this business can be uneven
quarter to quarter.
Asset quality measures remained solid at June
30, 2020. Net charge-offs (annualized) were 0.36% of average loans
for the second quarter of 2020 (attributable mostly to a single
credit), as compared to 0.08% of average loans for the second
quarter of 2019. At June 30, 2020, the Company’s nonperforming
loans amounted to $59.0 million (0.74% of total loans) as compared
to $37.4 million (0.51% of total loans) at June 30, 2019, and $48.7
million (0.65% of total loans) at December 31, 2019. Nonperforming
assets amounted to $67.2 million (0.69% of total assets) at June
30, 2020 compared to $38.8 million (0.45% of total assets) at June
30, 2019 and $50.2 million (0.56% of total assets) at December 31,
2019. The evolution of the COVID-19 pandemic and related
containment and relief measures will determine how the impacts will
be reflected in our loan portfolio, including these measures, over
time.
As discussed in the first quarter 2020 earnings
release, the new accounting current expected credit loss (“CECL”)
standard (ASC 326) was adopted by the Company in the first quarter
of 2020. CECL requires a significant change in how banks assess
credit risk and establish reserves for possible future loan losses.
Two significant changes under the new standard are the requirement
to establish loan loss reserves at loan origination considering the
entire life of the loan and to estimate lifetime loss reserves by
modeling a forecast that is impacted by economic assumptions.
Under the CECL standard and based on the January
1, 2020 effective date, the Company made an initial adjustment to
the allowance for credit losses of $10.6 million along with $4.1
million to the reserve for unfunded commitments. This adjustment
increased the ratio of the allowance to total loans from 0.98% at
December 31, 2019 to 1.12% at January 1, 2020. Based on our ongoing
risk analysis and modeling through March 31, 2020, under the CECL
allowance methodology, the Company further increased the allowance
for loan losses to 1.23%, which included the assessment of COVID-19
risks as of March 31, 2020. Based on our ongoing risk analysis and
modeling through June 30, 2020, under the CECL allowance
methodology, the Company further increased the allowance for loan
losses to 1.36% of total loans, which reflects COVID-19 risks
assessments and an updated unemployment forecast. The June
unemployment forecast was generally higher than the March
2020 forecast. Management believes to the best of its knowledge
that its allowance for credit losses, at 1.36% of total loans
(excluding loans held for sale) at June 30, 2020, is adequate to
absorb probable credit losses within the loan portfolio at that
date. The dilution impact of the PPP loans was approximately eight
basis points on the allowance for credit losses as a percentage of
total loans as of June 30, 2020. As noted above and as discussed
further below, uncertainty remains about the duration of the
COVID-19 pandemic and its impacts, and although further significant
negative impact may occur, the Company continues to monitor its
loan portfolio and borrowers. Under the prior accounting standard
known as the incurred loss model, the allowance for credit losses
was 0.98% at both June 30, 2019 and December 31, 2019. The
allowance for credit losses of $108.8 million at June 30, 2020
represented 185% of nonperforming loans at that date, as compared
to a coverage ratio of 193% at June 30, 2019 and 151% at December
31, 2019.
The COVID-19 pandemic, which began in the U.S.
in the first quarter of 2020 raised significant
concerns in the outlook over bank credit quality,
particularly in certain industries, as COVID-19 resulted in the
closure or restriction of businesses across the region as
stay-at-home orders were given in the various municipalities in
which the Company operates. Among those industries most clearly
impacted is the Accommodation and Food Service industry. Exposure
to this industry (as shown in the chart below) represents 10.5% of
the Bank’s loan portfolio as of June 30, 2020. Management is
closely monitoring borrowers and remains attentive to signs of
deterioration in borrowers’ financial conditions and is proactively
taking steps to mitigate risk as appropriate, including placing
loans on nonaccrual status. There remains uncertainty regarding the
region’s overall economic outlook given the lack of clarity over
how long COVID-19 will continue to impact our region. Management
has been working with customers on payment deferrals (generally 90
days) to assist client companies in managing through this crisis.
These deferrals amounted to 708 notes and $1.63 billion at June 30,
2020 (20% of total loans) as compared to 32 notes representing $45
million in outstanding exposure as of March 31, 2020. Some of these
deferrals may not have met the criteria for treatment under U.S.
generally accepted accounting principles (“GAAP”) as troubled debt
restructurings (“TDR”). Additionally, none of the deferrals are
reflected in the Company’s asset quality measures (i.e.
non-performing loans) due to the provision of the CARES Act that
permits U.S. financial institutions to temporarily suspend the U.S.
GAAP requirements to treat such short-term loan modifications as
TDR. These provisions have also been confirmed by interagency
guidance issued by the federal banking agencies and confirmed with
staff members of the Financial Accounting Standards Board.
“The Company’s productivity continued to be
favorable in the second quarter,” noted Ms. Riel. The efficiency
ratio of 37.18% 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 1.36% in
the second quarter of 2020 as compared to 1.55% in the second
quarter of 2019. 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.”
COVID-19 Discussion Matters
Employee Matters:
Management continues to acknowledge the
flexibility and engagement of our hard working employees during
this crisis. As the COVID-19 pandemic has unfolded, the majority of
our workforce transitioned quickly to remote access operations. Our
information technology infrastructure continues to support our
organization in working predominantly remotely as we continue to
service the needs of our clients. While we continue to strive to
have the majority of our employees operating from home, there are
some functions that require a physical presence at our banking
offices. While there has been no decision at this time to return
more broadly to the workplace, we have established general
guidelines for returning that include having employees maintain
safe distances, staggered work schedules to limit the number of
employees in a single location, more frequent cleaning of our
facilities and other practices encouraging a safe working
environment during this challenging time. Management remains
connected to employees through periodic company-wide telephonic
meetings and regular notifications and updates through both email
and the Company’s intranet.
Branch Hours:
Branch hours and availability which were
modified in consideration of the safety of our employees and
clients, were reinstated in the second quarter of 2020. All
branches have been opened with advanced safety measures and are
available during regular business hours to meet the needs of our
clients.
The CARES Act:
Enacted March 27, 2020 the CARES Act included
several provisions designed to provide relief to individuals and
businesses as well as the banking system. Among the more
significant components of this legislation for our Company was the
creation of the $350 billion PPP, which was further expanded by
Congress in the second quarter of 2020 to a total of $659 billion.
Loans made under the PPP are fully guaranteed as to principal and
interest by the Small Business Administration (“SBA”), whose
guarantee is backed by the full faith and credit of the U.S.
Government. PPP-covered loans also afford borrowers forgiveness up
to the principal amount of the PPP-covered loan if the proceeds are
used to retain workers and maintain payroll or make mortgage
interest, lease and utility payments. The SBA will reimburse PPP
lenders for any amount of a PPP-covered loan that is forgiven.
As an SBA preferred lender, the Bank actively
participated in the PPP program, and at June 30, 2020 had an
outstanding balance of PPP loans of $456 million to just over 1,400
businesses. The average rate on these loans is 1.00% and the
average yield, which includes fee amortization, was 2.91% for the
second quarter of 2020. The lower loan yield on these PPP loans
negatively affected second quarter loan portfolio yields by seven
basis points.
Loan Portfolio Exposures:
Industry areas of potential concern within the
Loan Portfolio are presented below as of June 30, 2020:
Industry |
Principal Balance (in 000’s) |
% of Loan Portfolio |
Accommodation & Food
Services |
$840,9611 |
10.5% |
Retail Trade |
106,5442 |
1.3% |
1 Includes $82,154 of PPP
loans.2 Includes $13,498 of PPP
loans.
Concerns over exposures to the Accommodation and Food Service
industry and retail are the most immediate at this time.
Accommodation and Food Service exposure represents 10.5% of the
Bank’s loan portfolio as of June 30, 2020 among 485 customers.
Retail trade exposure represents 1.3% of the Bank’s loan portfolio.
The Bank has ongoing extensive outreach to these customers and is
assisting where necessary with PPP loans and payment deferrals or
interest only periods in the short term while customers work with
the Bank to develop longer term stabilization strategies as the
landscape of the COVID-19 pandemic evolves. The uncertain duration
and severity of the pandemic will likely impact future credit
challenges in these areas.
The table below is collateral driven and shows
exposures on loans secured by commercial real estate (“CRE”) by
property type as of June 30, 2020. This table excludes loans
disclosed in the industry table above.
Property Type |
Principal Balance (in 000’s) |
% of Loan Portfolio |
Restaurant |
$ 31,364 |
0.4% |
Hotel |
35,815 |
0.4% |
Retail |
405,918 |
5.1% |
Although not evidenced at June 30, 2020, it is
anticipated that some portion of the CRE loans secured by the above
property types could be impacted by the tenancies associated with
impacted industries. The Bank is working with CRE investor
borrowers and monitoring rent collections as part of our portfolio
management process.
Balance Sheet Analysis
Total assets at June 30, 2020 were $9.80
billion, a 13% increase as compared to $8.67 billion at June 30,
2019, and a 9% increase as compared to $8.99 billion at December
31, 2019. Total loans (excluding loans held for sale) were $8.02
billion at June 30, 2020, a 9% increase as compared to $7.39
billion at June 30, 2019, and a 6% increase as compared to $7.55
billion at December 31, 2019. Loans held for sale amounted to $68.4
million at June 30, 2020 as compared to $37.5 million at June 30,
2019, an 82% increase, and $56.7 million at December 31, 2019, a
21% increase. The investment portfolio totaled $772.4 million at
June 30, 2020, a 4% increase from the $745.3 million balance at
June 30, 2019. As compared to December 31, 2019, the investment
portfolio at June 30, 2020 decreased by $71.0 million, or 8%.
Total deposits at June 30, 2020 were $7.94
billion, compared to deposits of $6.95 billion at June 30, 2019, a
14% increase, and a 10% increase compared to deposits of $7.22
billion at December 31, 2019. Total borrowed funds (excluding
customer repurchase agreements) were $567.9 million at June 30,
2020, as compared to $442.5 million at June 30, 2019 and $467.7
million at December 31, 2019. We continue to work on expanding the
breadth and depth of our existing relationships while we pursue
building new relationships.
Total shareholders’ equity increased less than
1% to $1.19 billion at June 30, 2020 compared to $1.18 billion at
June 30, 2019, and was stable as compared to $1.19 billion at
December 31, 2019. The slight increase in shareholders’ equity at
June 30, 2020 compared to the same period in 2019 was primarily the
result of growth in retained earnings, $10.9 million in unrealized
gains on AFS securities, and $7.4 million in additional paid in
capital attributable to share based compensation, effectively
offset by $99 million in stock repurchases, dividends declared of
$28.9 million, and the day one CECL entry of $10.9 million net of
taxes.
The Company’s capital ratios remain
substantially in excess of regulatory minimum and buffer
requirements, with a total risk based capital ratio of 16.33% at
June 30, 2020, as compared to 16.36% at June 30, 2019, and 16.20%
at December 31, 2019, both common equity tier 1 (“CET1”) risk based
capital and tier 1 risk based capital ratios of 12.79% at June 30,
2020, as compared to 12.87% at June 30, 2019, and 12.87% at
December 31, 2019, a tier 1 leverage ratio of 10.63% at June 30,
2020, as compared to 12.66% at June 30, 2019, and 11.62% at
December 31, 2019. The common equity ratio was 12.12% at June 30,
2020, compared to 13.66% at June 30, 2019 and 13.25% at December
31, 2019. Book value per share was $36.86 at June 30, 2020, a 7%
increase over $34.30 at June 30, 2019. In addition, the tangible
common equity ratio was 11.17% at June 30, 2020, compared to 12.60%
at June 30, 2019 and 12.22% at December 31, 2019. Tangible book
value per share was $33.62 at June 30, 2020, an 8% increase over
$31.25 at June 30, 2019. A reconciliation of GAAP to non-GAAP
financial measures is provided in the tables that accompany this
document.
Detail Income Statement Analysis (2Q2020
versus 2Q2019)
Net interest income was $81.4 million for the
three months ended June 30, 2020 and $81.3 million for the same
period in 2019. The lack of growth was primarily the result of
lesser average yields on loans (4.63% versus 5.61%) offset by
growth in average earning assets of 21%. The net interest margin
was 3.26% for the three months ended June 30, 2020, as compared to
3.91% for the three months ended June 30, 2019. The Company
believes that its disciplined approach to managing the loan
portfolio yield to 4.63% for the first three months of 2020 (as
compared to 5.61% for the same period in 2019) has been a
significant factor in its overall profitability.
The provision for credit losses was $19.7
million for the three months ended June 30, 2020 as compared to
$3.6 million for the three months ended June 30, 2019. The higher
provisioning in the second quarter of 2020, as compared to the
second quarter of 2019, is primarily due to the implementation of
the CECL accounting standard for loan loss allowances, including
COVID-19 impacts and higher net charge-offs primarily related to
COVID-19 effects. Net charge-offs of $7.1 million in the second
quarter of 2020 represented an annualized 0.36% of average loans,
excluding loans held for sale, as compared to $1.5 million, or an
annualized 0.08% of average loans, excluding loans held for sale,
in the second quarter of 2019. Net charge-offs in the second
quarter of 2020 were attributable primarily to one commercial
relationship to a personal services company that ceased business
operations as a result of COVID-19.
Noninterest income for the three months ended
June 30, 2020 increased to $12.5 million from $6.4 million for the
three months ended June 30, 2019, a 96% increase. Service charges
on deposits for the three months ended June 30, 2020 decreased to
$942 thousand from $1.6 million for the three months ended June 30,
2019, a 41% decrease, due to lesser insufficient funds fees. Gain
on sale of loans for the three months ended June 30, 2020 increased
to $3.1 million from $1.9 million for the three months ended June
30, 2019, a 60% increase, due to higher gains on the sale of
residential mortgage loans ($1.2 million). Other income for the
three months ended June 30, 2020 increased to $6.9 million from
$1.8 million for the three months ended June 30, 2019, a 277%
increase, due substantially to higher gains associated with the
origination, securitization, sale and servicing of FHA loans ($2.5
million), $1.4 million higher small business investment company
(“SBIC”) income related to a Community Reinvestment Act (“CRA”)
qualified investment fund, $921 thousand higher swap fee income,
and $591 thousand higher prepayment fees. Net investment gains on
sale were $713 thousand for the three months ended June 30, 2020
compared to $563 thousand for the same period in 2019. Residential
mortgage loans closed were $308 million for the second quarter of
2020 versus $152 million for the second quarter of 2019.
Noninterest expenses increased 4.6% to $34.9
million for the three months ended June 30, 2020, as compared to
$33.4 million for the three months ended June 30, 2019, due
substantially to increased legal expenses partially offset by
salaries and benefit accruals discussed below.
Salaries and employee benefits were $17.1
million for the three months ended June 30, 2020, as compared to
$17.7 million for the same period in 2019, a decrease of $639
thousand or 4%. The decrease was primarily due to a lower
accrual for incentive bonuses and the release of a portion of an
accrual related to the charges for share based compensation awards
for our former CEO and Chairman in the second quarter of 2020. The
decrease was partially offset by higher salaries and increased
headcount in the second quarter of 2020.
Legal, accounting and professional fees
increased $1.2 million for the three months ended June 30, 2020
compared to the three months ended June 30, 2019. Legal fees and
expenditures of $2.5 million for the second quarter of 2020 were
primarily associated with previously disclosed ongoing governmental
investigations and related subpoenas and document requests and our
defense of the previously disclosed class action lawsuit. The
amount of legal fees and expenditures for the quarter is net of
expected insurance coverage where we believe we have a high
likelihood of recovery pursuant to our D&O insurance policies,
but does not include any offset for potential claims we may have in
the future as to which recovery is impossible to predict at this
time. The efficiency ratio was 37.18% for the second quarter of
2020, as compared to 38.04% for the second quarter of 2019.
FDIC expenses increased $854 thousand due to a
higher assessment base resulting from growth in total assets.
The effective income tax rate for the second
quarter of 2020 was 24.6% as compared to 26.6% for the second
quarter of 2019. The decrease in the effective income tax rate
largely relates to a significant decline in pre-tax income for the
three months ended June 30, 2020 compared to the three months ended
June 30, 2019 due to increased credit reserves significantly
attributable to COVID-19, and a decrease in disallowed compensation
deductions for key executives, mainly related to share based
compensation awards and other compensation of our former CEO and
Chairman who resigned in March 2019.
Detail Income Statement Analysis (Six
Months 2020 versus Six Months 2019)
For the six months ended June 30, 2020, the
Company reported an annualized ROAA of 1.06% as compared to 1.68%
for the six months ended June 30, 2019. The annualized ROACE for
the six months ended June 30, 2020 was 8.82% as compared to 12.47%
for the six months ended June 30, 2019. The annualized ROATCE for
the six months ended June 30, 2020 was 9.67% as compared to 13.73%
for the six months ended June 30, 2019. A reconciliation of GAAP to
non-GAAP financial measures is provided in the tables that
accompany this document.
Net interest income decreased 1% for the six
months ended June 30, 2020 over the same period in 2019 ($161.1
million versus $162.3 million), resulting primarily from net
interest margin compression offset by growth in average earning
assets of 16%. The net interest margin was 3.36% for the six months
ended June 30, 2020, as compared to 3.97% for the six months ended
June 30, 2019. The Company believes that its disciplined approach
to managing the loan portfolio yield to 4.84% for the first six
months of 2020 (as compared to 5.62% for the same period in 2019)
has been a significant factor in its overall profitability.
The provision for credit losses was $34.0
million for the six months ended June 30, 2020 as compared to $7.0
million for the six months ended June 30, 2019. The higher
provisioning for the six months ended June 30, 2020, as compared to
the same period in 2019, is primarily due to the implementation of
CECL and the impact of COVID-19 on our actual and expected future
credit losses. Net charge-offs of $9.4 million for the six months
ended June 30, 2020 represented an annualized 0.24% of average
loans, excluding loans held for sale, as compared to $4.8 million,
or an annualized 0.13% of average loans, excluding loans held for
sale, in the first six months of 2019. Net charge-offs in the first
six months of 2020 were attributable to commercial loans ($7.1
million) and commercial real estate loans ($2.3 million).
Noninterest income for the six months ended June
30, 2020 increased to $18.0 million from $12.7 million for the six
months ended June 30, 2019, a 42% increase. Service charges on
deposits for the six months ended June 30, 2020 decreased to $2.4
million from $3.3 million for the six months ended June 30, 2019, a
28% decrease, due to lesser insufficient funds fees. Gain on sale
of loans for the six months ended June 30, 2020 increased to $4.0
million from $3.3 million for the six months ended June 30, 2019, a
22% increase, due to higher gains on the sale of residential
mortgage loans ($718 thousand). Residential lending gains for the
first six months of 2020 include $2.6 million in hedge and mark to
market losses incurred during the first quarter of 2020
attributable to the Federal Reserve’s market actions negatively
impacting mortgage backed securities pricing combined with sharp
declines in servicing right valuations associated with investor
uncertainty surrounding COVID-19. Other income for the six months
ended June 30, 2020 increased to $8.8 million from $3.7 million for
the six months ended June 30, 2019, a 137% increase due
substantially to higher gains associated with the origination,
securitization, sale and servicing of FHA loans ($2.5 million),
$1.4 million higher SBIC income related to a CRA qualified
investment fund, $1.1 million higher swap fee income, and $380
thousand higher prepayment fees. Net investment gains were $1.5
million for both the six months ended June 30, 2020 and 2019.
Residential mortgage loans closed were $501 million for the first
six months of 2020 versus $246 million for the first six months of
2019.
Noninterest expenses totaled $72.2 million for
the six months ended June 30, 2020, as compared to $71.7 million
for the six months ended June 30, 2019, a 1% increase due
substantially to nonrecurring costs to salaries and benefits in the
first quarter of 2019 related to the retirement of our former
Chairman and CEO.
Salaries and employee benefits were $34.9
million for the six months ended June 30, 2020, as compared to
$41.4 million for the same period in 2019, a decrease of $6.5
million or 16%. The decrease was primarily due to the $6.2
million of largely nonrecurring charges accrued in the first
quarter of 2019 related to share based compensation awards and the
resignation of our former CEO and Chairman in March 2019, as well
as a lower accrual for incentive bonuses and the release of a
portion of an accrual related to the charges for share based
compensation awards for our former CEO and Chairman in the first
half of 2020. The decrease was partially offset by higher
salaries and increased headcount in the first half of 2020.
Legal, accounting and professional fees
increased $6.5 million for the six months ended June 30, 2020
compared to the six months ended June 30, 2019. Legal fees and
expenditures of $7.1 million for the first six months of 2020 were
primarily associated with previously disclosed ongoing governmental
investigations and related subpoenas and document requests and our
defense of the previously disclosed class action lawsuit. The
amount of legal fees and expenditures for the quarter is net of
expected insurance coverage where we believe we have a high
likelihood of recovery pursuant to our D&O insurance policies
but does not include any offset for potential claims we may have in
the future as to which recovery is impossible to predict at this
time. For the first six months of 2020, the efficiency ratio was
40.34% as compared to 40.95% for the same period in 2019.
FDIC expenses increased $1.2 million (from $2.2
million to $3.4 million) due to a higher assessment base resulting
from growth in total assets. Other expenses decreased $453
thousand, or 5%, due primarily to lower broker fees ($1.6 million)
partially offset by $940 thousand higher other real estate owned
(“OREO”) expense.
The effective income tax rate for the six months
ended June 30, 2020 was 25.5% as compared to 26.3% for the six
months ended June 30, 2019. The decrease in the effective income
tax rate largely relates to a significant decline in pre-tax income
for the six months ended June 30, 2020 compared to the six months
ended June 30, 2019, and a decrease in disallowed compensation
deductions for key executives, mainly related to share based
compensation awards and other compensation of our former CEO and
Chairman who resigned in March 2019. The decrease in the effective
income tax rate was recorded in the second quarter of 2020 based on
a reduced pre-tax income budget for the year due to increased
credit reserves significantly attributable to COVID-19.
The financial information which follows provides
more detail on the Company’s financial performance for the three
and six months ended June 30, 2020 as compared to the three and six
months ended June 30, 2019, 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, 2019 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 2020
financial results on Thursday, July 23, 2020 at 10:00 a.m. eastern
daylight time. The public is invited to listen to this conference
call by dialing 1.877.303.6220, conference ID Code 3994462, 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 6, 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,” “can,” “anticipates,” “believes,” “expects,”
“plans,” “estimates,” “potential,” “continue,” “should,” “could,”
“strive,” “feel” and similar words or phrases. These statements are
based upon current and anticipated economic conditions, nationally
and in the Company’s market (including the macroeconomic and other
challenges and uncertainties resulting from the COVID-19 pandemic,
including on our credit quality and business operations), interest
rates and interest rate policy, competitive factors, and other
conditions which by their nature, are not susceptible to accurate
forecast and are subject to significant uncertainty. Because of
these uncertainties and the assumptions on which this discussion
and the forward-looking statements are based, actual future
operations and results in the future may differ materially from
those indicated herein. For details on factors that could affect
these expectations, see the risk factors and other cautionary
language included in the Company’s Annual Report on Form 10-K for
the year ended December 31, 2019, the Company’s Quarterly Report on
Form 10-Q for the quarter ended March 31, 2020, the Company’s
upcoming Quarterly Report on Form 10-Q for the quarter ended June
30, 2020, 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. All information is as
of the date of this press release. Any forward-looking statements
made by or on behalf of the Company speak only as to the date they
are made. Except to the extent required by applicable law or
regulation, the Company undertakes no obligation to revise or
update publicly any forward-looking statement for any reason.
Eagle Bancorp,
Inc. |
|
|
|
|
|
|
|
Consolidated Financial
Highlights (Unaudited) |
|
|
|
|
|
|
|
(dollars in thousands, except
per share data) |
|
|
|
|
Three Months Ended June 30, |
|
Six Months June 30, |
|
|
2020 |
|
|
|
2019 |
|
|
|
2020 |
|
|
|
2019 |
|
Income
Statements: |
|
|
|
|
|
|
|
Total interest income |
$ |
97,672 |
|
|
$ |
108,279 |
|
|
$ |
201,473 |
|
|
$ |
213,413 |
|
Total interest expense |
|
16,309 |
|
|
|
26,950 |
|
|
|
40,366 |
|
|
|
51,067 |
|
Net interest income |
|
81,363 |
|
|
|
81,329 |
|
|
|
161,107 |
|
|
|
162,346 |
|
Provision for credit
losses |
|
19,737 |
|
|
|
3,600 |
|
|
|
34,047 |
|
|
|
6,960 |
|
Provision for Unfunded
Commitments |
|
940 |
|
|
|
- |
|
|
|
3,052 |
|
|
|
- |
|
Net interest income after
provision for credit losses |
|
60,686 |
|
|
|
77,729 |
|
|
|
124,008 |
|
|
|
155,386 |
|
Noninterest income (before
investment gain) |
|
11,782 |
|
|
|
5,797 |
|
|
|
16,430 |
|
|
|
11,176 |
|
Gain on sale of investment
securities |
|
713 |
|
|
|
563 |
|
|
|
1,535 |
|
|
|
1,475 |
|
Total noninterest income |
|
12,495 |
|
|
|
6,360 |
|
|
|
17,965 |
|
|
|
12,651 |
|
Total noninterest expense |
|
34,892 |
|
|
|
33,359 |
|
|
|
72,239 |
|
|
|
71,663 |
|
Income before income tax
expense |
|
38,289 |
|
|
|
50,730 |
|
|
|
69,734 |
|
|
|
96,374 |
|
Income tax expense |
|
9,433 |
|
|
|
13,487 |
|
|
|
17,755 |
|
|
|
25,382 |
|
Net income |
$ |
28,856 |
|
|
$ |
37,243 |
|
|
$ |
51,979 |
|
|
$ |
70,992 |
|
|
|
|
|
|
|
|
|
Per Share
Data: |
|
|
|
|
|
|
|
Earnings per weighted average
common share, basic |
$ |
0.90 |
|
|
$ |
1.08 |
|
|
$ |
1.60 |
|
|
$ |
2.06 |
|
Earnings per weighted average
common share, diluted |
$ |
0.90 |
|
|
$ |
1.08 |
|
|
$ |
1.60 |
|
|
$ |
2.05 |
|
Weighted average common shares
outstanding, basic |
|
32,224,695 |
|
|
|
34,540,152 |
|
|
|
32,537,402 |
|
|
|
34,510,625 |
|
Weighted average common shares
outstanding, diluted |
|
32,240,825 |
|
|
|
34,565,253 |
|
|
|
32,560,742 |
|
|
|
34,549,412 |
|
Actual shares outstanding at
period end |
|
32,224,756 |
|
|
|
34,539,853 |
|
|
|
32,224,756 |
|
|
|
34,539,853 |
|
Book value per common share at
period end |
$ |
36.86 |
|
|
$ |
34.30 |
|
|
$ |
36.86 |
|
|
$ |
34.30 |
|
Tangible book value per common
share at period end (1) |
$ |
33.62 |
|
|
$ |
31.25 |
|
|
$ |
33.62 |
|
|
$ |
31.25 |
|
Dividend per common share |
$ |
0.22 |
|
|
$ |
- |
|
|
$ |
0.44 |
|
|
$ |
- |
|
|
|
|
|
|
|
|
|
Performance Ratios
(annualized): |
|
|
|
|
|
|
|
Return on average assets |
|
1.12% |
|
|
|
1.74% |
|
|
|
1.06% |
|
|
|
1.68% |
|
Return on average common
equity |
|
9.84% |
|
|
|
12.81% |
|
|
|
8.82% |
|
|
|
12.47% |
|
Return on average tangible
common equity |
|
10.80% |
|
|
|
14.08% |
|
|
|
9.67% |
|
|
|
13.73% |
|
Net interest margin |
|
3.26% |
|
|
|
3.91% |
|
|
|
3.36% |
|
|
|
3.97% |
|
Efficiency ratio
(2) |
|
37.18% |
|
|
|
38.04% |
|
|
|
40.34% |
|
|
|
40.95% |
|
|
|
|
|
|
|
|
|
Other
Ratios: |
|
|
|
|
|
|
|
Allowance for credit losses to
total loans (3) |
|
1.36% |
|
|
|
0.98% |
|
|
|
1.36% |
|
|
|
0.98% |
|
Allowance for credit losses to
total nonperforming loans |
|
184.52% |
|
|
|
192.70% |
|
|
|
184.52% |
|
|
|
192.70% |
|
Nonperforming loans to total
loans (3) |
|
0.74% |
|
|
|
0.51% |
|
|
|
0.74% |
|
|
|
0.51% |
|
Nonperforming assets to total
assets |
|
0.69% |
|
|
|
0.45% |
|
|
|
0.69% |
|
|
|
0.45% |
|
Net charge-offs (annualized)
to average loans (3) |
|
0.36% |
|
|
|
0.08% |
|
|
|
0.24% |
|
|
|
0.13% |
|
Common equity to total
assets |
|
12.12% |
|
|
|
13.66% |
|
|
|
12.12% |
|
|
|
13.66% |
|
Tier 1 capital (to average
assets) |
|
10.63% |
|
|
|
12.66% |
|
|
|
10.63% |
|
|
|
12.66% |
|
Total capital (to risk
weighted assets) |
|
16.33% |
|
|
|
16.36% |
|
|
|
16.33% |
|
|
|
16.36% |
|
Common equity tier 1 capital
(to risk weighted assets) |
|
12.79% |
|
|
|
12.87% |
|
|
|
12.79% |
|
|
|
12.87% |
|
Tangible common equity ratio
(1) |
|
11.17% |
|
|
|
12.60% |
|
|
|
11.17% |
|
|
|
12.60% |
|
|
|
|
|
|
|
|
|
Loan Balances - Period
End (in thousands): |
|
|
|
|
|
|
|
Commercial and Industrial |
$ |
1,607,056 |
|
|
$ |
1,475,201 |
|
|
$ |
1,607,056 |
|
|
$ |
1,475,201 |
|
PPP loans |
$ |
456,476 |
|
|
$ |
- |
|
|
$ |
456,476 |
|
|
$ |
- |
|
Commercial real estate - owner
occupied |
$ |
964,077 |
|
|
$ |
970,850 |
|
|
$ |
964,077 |
|
|
$ |
970,850 |
|
Commercial real estate -
income producing |
$ |
3,678,946 |
|
|
$ |
3,666,815 |
|
|
$ |
3,678,946 |
|
|
$ |
3,666,815 |
|
1-4 Family mortgage |
$ |
93,601 |
|
|
$ |
105,191 |
|
|
$ |
93,601 |
|
|
$ |
105,191 |
|
Construction - commercial and
residential |
$ |
995,550 |
|
|
$ |
1,012,789 |
|
|
$ |
995,550 |
|
|
$ |
1,012,789 |
|
Construction - C&I (owner
occupied) |
$ |
149,845 |
|
|
$ |
76,324 |
|
|
$ |
149,845 |
|
|
$ |
76,324 |
|
Home equity |
$ |
74,921 |
|
|
$ |
83,447 |
|
|
$ |
74,921 |
|
|
$ |
83,447 |
|
Other consumer |
$ |
1,289 |
|
|
$ |
1,998 |
|
|
$ |
1,289 |
|
|
$ |
1,998 |
|
|
|
|
|
|
|
|
|
Average Balances (in
thousands): |
|
|
|
|
|
|
|
Total assets |
$ |
10,326,709 |
|
|
$ |
8,595,523 |
|
|
$ |
9,887,186 |
|
|
$ |
8,525,988 |
|
Total earning assets |
$ |
10,056,500 |
|
|
$ |
8,328,323 |
|
|
$ |
9,616,337 |
|
|
$ |
8,257,411 |
|
Total loans |
$ |
8,015,751 |
|
|
$ |
7,260,899 |
|
|
$ |
7,833,372 |
|
|
$ |
7,150,300 |
|
Total deposits |
$ |
8,482,718 |
|
|
$ |
6,893,981 |
|
|
$ |
8,089,741 |
|
|
$ |
6,940,467 |
|
Total borrowings |
$ |
598,463 |
|
|
$ |
470,214 |
|
|
$ |
542,206 |
|
|
$ |
368,776 |
|
Total shareholders’
equity |
$ |
1,179,452 |
|
|
$ |
1,166,487 |
|
|
$ |
1,185,316 |
|
|
$ |
1,147,782 |
|
|
|
|
|
|
|
|
|
(1) Tangible common equity to tangible assets
(the "tangible common equity ratio"), tangible book value per
common share, and the annualized return on average tangible common
equity are non-GAAP financial measures derived from GAAP based
amounts. The Company calculates the tangible common equity ratio by
excluding the balance of intangible assets from common
shareholders' equity and dividing by tangible assets. The Company
calculates tangible book value per common share by dividing
tangible common equity by common shares outstanding, as compared to
book value per common share, which the Company calculates by
dividing common shareholders' equity by common shares outstanding.
The Company calculates the annualized return on average tangible
common equity ratio by dividing net income available to common
shareholders by average tangible common equity which is calculated
by excluding the average balance of intangible assets from the
average common shareholders’ equity. The Company considers this
information important to shareholders as tangible equity is a
measure that is consistent with the calculation of capital for bank
regulatory purposes, which excludes intangible assets from the
calculation of risk based ratios and as such is useful for
investors, regulators, management and others to evaluate capital
adequacy and to compare against other financial institutions. The
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 |
|
Year Ended |
|
Three Months Ended |
|
Six Months Ended |
|
June 30, 2020 |
|
June 30, 2020 |
|
December 31, 2019 |
|
June 30, 2019 |
|
June 30, 2019 |
Common shareholders'
equity |
|
|
$ |
1,187,895 |
|
|
$ |
1,190,681 |
|
|
|
|
$ |
1,184,582 |
|
Less: Intangible assets |
|
|
|
(104,651 |
) |
|
|
(104,739 |
) |
|
|
|
|
(105,219 |
) |
Tangible common
equity |
|
|
$ |
1,083,244 |
|
|
$ |
1,085,942 |
|
|
|
|
$ |
1,079,363 |
|
|
|
|
|
|
|
|
|
|
|
Book value per common
share |
|
|
$ |
36.86 |
|
|
$ |
35.82 |
|
|
|
|
$ |
34.30 |
|
Less: Intangible book value
per common share |
|
|
|
(3.24 |
) |
|
|
(3.15 |
) |
|
|
|
|
(3.05 |
) |
Tangible book value
per common share |
|
|
$ |
33.62 |
|
|
$ |
32.67 |
|
|
|
|
$ |
31.25 |
|
|
|
|
|
|
|
|
|
|
|
Total assets |
|
|
$ |
9,799,670 |
|
|
$ |
8,988,719 |
|
|
|
|
$ |
8,670,003 |
|
Less: Intangible assets |
|
|
|
(104,651 |
) |
|
|
(104,739 |
) |
|
|
|
|
(105,219 |
) |
Tangible
assets |
|
|
$ |
9,695,019 |
|
|
$ |
8,883,980 |
|
|
|
|
$ |
8,564,784 |
|
Tangible common equity
ratio |
|
|
|
11.17% |
|
|
|
12.22% |
|
|
|
|
|
12.60% |
|
|
|
|
|
|
|
|
|
|
|
Average common shareholders' equity |
$ |
1,179,452 |
|
|
$ |
1,185,316 |
|
|
$ |
1,172,051 |
|
|
$ |
1,166,487 |
|
|
$ |
1,147,782 |
|
Less: Average intangible
assets |
|
(104,672 |
) |
|
|
(104,684 |
) |
|
|
(105,167 |
) |
|
|
(105,280 |
) |
|
|
(105,430 |
) |
Average tangible
common equity |
$ |
1,074,780 |
|
|
$ |
1,080,632 |
|
|
$ |
1,066,884 |
|
|
$ |
1,061,206 |
|
|
$ |
1,042,352 |
|
|
|
|
|
|
|
|
|
|
|
Net Income Available to Common
Shareholders |
$ |
28,856 |
|
|
$ |
51,979 |
|
|
$ |
142,943 |
|
|
$ |
37,243 |
|
|
$ |
70,992 |
|
Average tangible common
equity |
$ |
1,074,780 |
|
|
$ |
1,080,632 |
|
|
$ |
1,066,884 |
|
|
$ |
1,061,206 |
|
|
$ |
1,042,352 |
|
Annualized Return on
Average Tangible Common Equity |
|
10.80% |
|
|
|
9.67% |
|
|
|
13.40% |
|
|
|
14.08% |
|
|
|
13.73% |
|
(2) Computed by dividing noninterest expense by
the sum of net interest income and noninterest income. The
efficiency ratio measures a bank’s overhead as a percentage of its
revenue. (3)
Excludes loans held for
sale.
Eagle Bancorp,
Inc. |
|
|
|
|
|
Consolidated Balance
Sheets (Unaudited) |
|
|
|
|
|
(dollars in thousands, except
per share data) |
|
|
|
|
|
|
|
|
|
|
|
Assets |
June 30, 2020 |
|
December 31, 2019 |
|
June 30, 2019 |
Cash and due from banks |
$ |
12,199 |
|
|
$ |
7,539 |
|
|
$ |
6,735 |
|
Federal funds sold |
|
25,466 |
|
|
|
38,987 |
|
|
|
17,914 |
|
Interest bearing deposits with
banks and other short-term investments |
|
598,377 |
|
|
|
195,447 |
|
|
|
171,985 |
|
Investment securities
available for sale, at fair value (amortized cost of $750,653,
$839,192, and $740,187, and allowance for credit losses of $138,
$0, and $0, as of June 30, 2020, December 31, 2019 and June 30,
2019, respectively). |
|
772,394 |
|
|
|
843,363 |
|
|
|
745,343 |
|
Federal Reserve and Federal
Home Loan Bank stock |
|
40,018 |
|
|
|
35,194 |
|
|
|
33,993 |
|
Loans held for sale |
|
68,433 |
|
|
|
56,707 |
|
|
|
37,506 |
|
Loans |
|
8,021,761 |
|
|
|
7,545,748 |
|
|
|
7,392,615 |
|
Less allowance for credit
losses |
|
(108,796 |
) |
|
|
(73,658 |
) |
|
|
(72,086 |
) |
Loans, net |
|
7,912,965 |
|
|
|
7,472,090 |
|
|
|
7,320,529 |
|
Premises and equipment,
net |
|
12,970 |
|
|
|
14,622 |
|
|
|
15,176 |
|
Operating lease right-of-use
assets |
|
25,368 |
|
|
|
27,372 |
|
|
|
28,214 |
|
Deferred income taxes |
|
37,364 |
|
|
|
29,804 |
|
|
|
30,220 |
|
Bank owned life insurance |
|
75,913 |
|
|
|
75,724 |
|
|
|
74,295 |
|
Intangible assets, net |
|
104,651 |
|
|
|
104,739 |
|
|
|
105,219 |
|
Other real estate owned |
|
8,237 |
|
|
|
1,487 |
|
|
|
1,394 |
|
Other assets |
|
105,315 |
|
|
|
85,644 |
|
|
|
81,480 |
|
Total Assets |
$ |
9,799,670 |
|
|
$ |
8,988,719 |
|
|
$ |
8,670,003 |
|
|
|
|
|
|
|
Liabilities and
Shareholders' Equity |
|
|
|
|
|
Deposits: |
|
|
|
|
|
Noninterest bearing demand |
$ |
2,416,058 |
|
|
$ |
2,064,367 |
|
|
$ |
1,873,902 |
|
Interest bearing transaction |
|
861,703 |
|
|
|
863,856 |
|
|
|
862,553 |
|
Savings and money market |
|
3,504,718 |
|
|
|
3,013,129 |
|
|
|
2,712,143 |
|
Time, $100,000 or more |
|
527,870 |
|
|
|
663,987 |
|
|
|
801,469 |
|
Other time |
|
625,623 |
|
|
|
619,052 |
|
|
|
699,825 |
|
Total deposits |
|
7,935,972 |
|
|
|
7,224,391 |
|
|
|
6,949,892 |
|
Customer repurchase
agreements |
|
31,198 |
|
|
|
30,980 |
|
|
|
31,669 |
|
Other short-term
borrowings |
|
300,000 |
|
|
|
250,000 |
|
|
|
225,000 |
|
Long-term borrowings |
|
267,882 |
|
|
|
217,687 |
|
|
|
217,491 |
|
Operating lease
liabilities |
|
27,137 |
|
|
|
29,959 |
|
|
|
31,659 |
|
Reserve for unfunded
commitments |
|
7,170 |
|
|
|
- |
|
|
|
- |
|
Other liabilities |
|
42,416 |
|
|
|
45,021 |
|
|
|
29,710 |
|
Total liabilities |
|
8,611,775 |
|
|
|
7,798,038 |
|
|
|
7,485,421 |
|
|
|
|
|
|
|
Shareholders'
Equity |
|
|
|
|
|
Common stock, par value $.01
per share; shares authorized 100,000,000, shares |
|
|
|
|
|
issued and outstanding 32,224,756, 33,241,496, and 34,539,853,
respectively |
|
320 |
|
|
|
331 |
|
|
|
343 |
|
Additional paid in
capital |
|
440,934 |
|
|
|
482,286 |
|
|
|
532,585 |
|
Retained earnings |
|
731,973 |
|
|
|
705,105 |
|
|
|
647,887 |
|
Accumulated other
comprehensive income (loss) |
|
14,668 |
|
|
|
2,959 |
|
|
|
3,767 |
|
Total Shareholders' Equity |
|
1,187,895 |
|
|
|
1,190,681 |
|
|
|
1,184,582 |
|
Total Liabilities and Shareholders' Equity |
$ |
9,799,670 |
|
|
$ |
8,988,719 |
|
|
$ |
8,670,003 |
|
|
|
|
|
|
` |
|
|
|
|
|
|
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 |
|
2020 |
|
|
2019 |
|
|
2020 |
|
|
2019 |
Interest and fees on loans |
$ |
92,928 |
|
$ |
101,889 |
|
$ |
189,683 |
|
$ |
199,710 |
Interest and dividends on investment securities |
|
4,571 |
|
|
5,238 |
|
|
9,998 |
|
|
10,836 |
Interest on balances with other banks and short-term
investments |
|
161 |
|
|
1,105 |
|
|
1,720 |
|
|
2,771 |
Interest on federal funds sold |
|
12 |
|
|
47 |
|
|
72 |
|
|
96 |
Total interest income |
|
97,672 |
|
|
108,279 |
|
|
201,473 |
|
|
213,413 |
Interest
Expense |
|
|
|
|
|
|
|
Interest on deposits |
|
12,514 |
|
|
22,461 |
|
|
33,060 |
|
|
43,361 |
Interest on customer repurchase agreements |
|
86 |
|
|
75 |
|
|
173 |
|
|
173 |
Interest on other short-term borrowings |
|
501 |
|
|
1,435 |
|
|
858 |
|
|
1,575 |
Interest on long-term borrowings |
|
3,208 |
|
|
2,979 |
|
|
6,275 |
|
|
5,958 |
Total interest expense |
|
16,309 |
|
|
26,950 |
|
|
40,366 |
|
|
51,067 |
Net Interest
Income |
|
81,363 |
|
|
81,329 |
|
|
161,107 |
|
|
162,346 |
Provision for Credit
Losses |
|
19,737 |
|
|
3,600 |
|
|
34,047 |
|
|
6,960 |
Provision for Unfunded
Commitments |
|
940 |
|
|
- |
|
|
3,052 |
|
|
- |
Net Interest Income
After Provision For Credit Losses |
|
60,686 |
|
|
77,729 |
|
|
124,008 |
|
|
155,386 |
|
|
|
|
|
|
|
|
Noninterest
Income |
|
|
|
|
|
|
|
Service charges on deposits |
|
942 |
|
|
1,606 |
|
|
2,367 |
|
|
3,300 |
Gain on sale of loans |
|
3,079 |
|
|
1,923 |
|
|
4,023 |
|
|
3,311 |
Gain on sale of investment securities |
|
713 |
|
|
563 |
|
|
1,535 |
|
|
1,475 |
Increase in the cash surrender value of bank owned life
insurance |
|
828 |
|
|
429 |
|
|
1,242 |
|
|
854 |
Other income |
|
6,933 |
|
|
1,839 |
|
|
8,798 |
|
|
3,711 |
Total noninterest income |
|
12,495 |
|
|
6,360 |
|
|
17,965 |
|
|
12,651 |
Noninterest
Expense |
|
|
|
|
|
|
|
Salaries and employee benefits |
|
17,104 |
|
|
17,743 |
|
|
34,901 |
|
|
41,387 |
Premises and equipment expenses |
|
3,468 |
|
|
3,652 |
|
|
7,289 |
|
|
7,504 |
Marketing and advertising |
|
1,111 |
|
|
1,268 |
|
|
2,189 |
|
|
2,416 |
Data processing |
|
2,759 |
|
|
2,603 |
|
|
5,255 |
|
|
4,978 |
Legal, accounting and professional fees |
|
3,979 |
|
|
2,740 |
|
|
10,967 |
|
|
4,449 |
FDIC insurance |
|
1,980 |
|
|
1,126 |
|
|
3,404 |
|
|
2,242 |
Other expenses |
|
4,491 |
|
|
4,227 |
|
|
8,234 |
|
|
8,687 |
Total noninterest expense |
|
34,892 |
|
|
33,359 |
|
|
72,239 |
|
|
71,663 |
Income Before Income
Tax Expense |
|
38,289 |
|
|
50,730 |
|
|
69,734 |
|
|
96,374 |
Income Tax
Expense |
|
9,433 |
|
|
13,487 |
|
|
17,755 |
|
|
25,382 |
Net
Income |
$ |
28,856 |
|
$ |
37,243 |
|
$ |
51,979 |
|
$ |
70,992 |
|
|
|
|
|
|
|
|
Earnings Per Common
Share |
|
|
|
|
|
|
|
Basic |
$ |
0.90 |
|
$ |
1.08 |
|
$ |
1.60 |
|
$ |
2.06 |
Diluted |
$ |
0.90 |
|
$ |
1.08 |
|
$ |
1.60 |
|
$ |
2.05 |
Eagle Bancorp, Inc. |
Consolidated Average Balances, Interest Yields And Rates
(Unaudited) |
(dollars in thousands) |
|
|
|
|
|
|
|
|
|
Three Months Ended June 30, |
|
|
2020 |
|
|
|
2019 |
|
|
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 |
$ |
1,102,931 |
$ |
161 |
0.06 |
% |
|
$ |
209,096 |
$ |
1,105 |
2.12 |
% |
Loans held for sale
(1) |
|
80,227 |
|
686 |
3.42 |
% |
|
|
34,760 |
|
349 |
4.02 |
% |
Loans (1)
(2) |
|
8,015,751 |
|
92,242 |
4.63 |
% |
|
|
7,260,899 |
|
101,540 |
5.61 |
% |
Investment securities
available for sale (2) |
|
821,340 |
|
4,571 |
2.24 |
% |
|
|
803,207 |
|
5,238 |
2.62 |
% |
Federal funds sold |
|
36,251 |
|
12 |
0.13 |
% |
|
|
20,361 |
|
47 |
0.93 |
% |
Total interest earning assets |
|
10,056,500 |
|
97,672 |
3.91 |
% |
|
|
8,328,323 |
|
108,279 |
5.21 |
% |
|
|
|
|
|
|
|
|
Total noninterest earning
assets |
|
373,842 |
|
|
|
|
337,172 |
|
|
Less: allowance for credit
losses |
|
103,633 |
|
|
|
|
69,972 |
|
|
Total noninterest earning assets |
|
270,209 |
|
|
|
|
267,200 |
|
|
TOTAL ASSETS |
$ |
10,326,709 |
|
|
|
$ |
8,595,523 |
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY |
|
|
|
|
|
|
|
Interest bearing
liabilities: |
|
|
|
|
|
|
|
Interest bearing
transaction |
$ |
801,508 |
$ |
530 |
0.27 |
% |
|
$ |
705,628 |
$ |
1,197 |
0.68 |
% |
Savings and money market |
|
3,914,916 |
|
5,608 |
0.58 |
% |
|
|
2,628,255 |
|
12,279 |
1.87 |
% |
Time deposits |
|
1,199,946 |
|
6,376 |
2.14 |
% |
|
|
1,442,197 |
|
8,985 |
2.50 |
% |
Total interest bearing deposits |
|
5,916,370 |
|
12,514 |
0.85 |
% |
|
|
4,776,080 |
|
22,461 |
1.89 |
% |
Customer repurchase
agreements |
|
30,611 |
|
86 |
1.13 |
% |
|
|
33,248 |
|
75 |
0.90 |
% |
Other short-term
borrowings |
|
300,003 |
|
501 |
0.66 |
% |
|
|
219,508 |
|
1,435 |
2.59 |
% |
Long-term borrowings |
|
267,849 |
|
3,208 |
4.74 |
% |
|
|
217,458 |
|
2,979 |
5.42 |
% |
Total interest bearing liabilities |
|
6,514,833 |
|
16,309 |
1.01 |
% |
|
|
5,246,294 |
|
26,950 |
2.06 |
% |
|
|
|
|
|
|
|
|
Noninterest bearing
liabilities: |
|
|
|
|
|
|
|
Noninterest bearing
demand |
|
2,566,348 |
|
|
|
|
2,117,901 |
|
|
Other liabilities |
|
66,076 |
|
|
|
|
64,841 |
|
|
Total noninterest bearing liabilities |
|
2,632,424 |
|
|
|
|
2,182,742 |
|
|
|
|
|
|
|
|
|
|
Shareholders’ Equity |
|
1,179,452 |
|
|
|
|
1,166,487 |
|
|
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY |
$ |
10,326,709 |
|
|
|
$ |
8,595,523 |
|
|
|
|
|
|
|
|
|
|
Net interest income |
|
$ |
81,363 |
|
|
|
$ |
81,329 |
|
Net interest spread |
|
|
2.90 |
% |
|
|
|
3.15 |
% |
Net interest margin |
|
|
3.26 |
% |
|
|
|
3.91 |
% |
Cost of funds |
|
|
0.65 |
% |
|
|
|
1.30 |
% |
|
|
|
|
|
|
|
|
(1) Loans placed
on nonaccrual status are included in average balances. Net loan
fees and late charges included in interest income on loans totaled
$6.3 million and $4.7 million |
|
for the three months ended
June 30, 2020 and 2019, 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, |
|
|
2020 |
|
|
|
2019 |
|
|
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 |
$ |
845,540 |
$ |
1,720 |
0.41 |
% |
|
$ |
254,804 |
$ |
2,771 |
2.19 |
% |
Loans held for sale
(1) |
|
59,488 |
|
1,040 |
3.50 |
% |
|
|
26,386 |
|
550 |
4.17 |
% |
Loans (1)
(2) |
|
7,833,372 |
|
188,643 |
4.84 |
% |
|
|
7,150,300 |
|
199,160 |
5.62 |
% |
Investment securities
available for sale (1) |
|
844,503 |
|
9,998 |
2.38 |
% |
|
|
806,858 |
|
10,836 |
2.71 |
% |
Federal funds sold |
|
33,434 |
|
72 |
0.43 |
% |
|
|
19,063 |
|
96 |
1.02 |
% |
Total interest earning assets |
|
9,616,337 |
|
201,473 |
4.21 |
% |
|
|
8,257,411 |
|
213,413 |
5.21 |
% |
|
|
|
|
|
|
|
|
Total noninterest earning
assets |
|
365,080 |
|
|
|
|
338,290 |
|
|
Less: allowance for credit
losses |
|
94,231 |
|
|
|
|
69,713 |
|
|
Total noninterest earning assets |
|
270,849 |
|
|
|
|
268,577 |
|
|
TOTAL ASSETS |
$ |
9,887,186 |
|
|
|
$ |
8,525,988 |
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY |
|
|
|
|
|
|
|
Interest bearing
liabilities: |
|
|
|
|
|
|
|
Interest bearing
transaction |
$ |
803,321 |
$ |
2,196 |
0.55 |
% |
|
$ |
648,557 |
$ |
2,378 |
0.74 |
% |
Savings and money market |
|
3,626,437 |
|
16,690 |
0.93 |
% |
|
|
2,709,950 |
|
24,242 |
1.80 |
% |
Time deposits |
|
1,243,628 |
|
14,174 |
2.29 |
% |
|
|
1,386,876 |
|
16,741 |
2.43 |
% |
Total interest bearing deposits |
|
5,673,386 |
|
33,060 |
1.17 |
% |
|
|
4,745,383 |
|
43,361 |
1.84 |
% |
Customer repurchase
agreements |
|
30,310 |
|
173 |
1.15 |
% |
|
|
30,536 |
|
173 |
1.14 |
% |
Other short-term
borrowings |
|
260,030 |
|
858 |
0.65 |
% |
|
|
120,832 |
|
1,575 |
2.59 |
% |
Long-term borrowings |
|
251,866 |
|
6,275 |
4.93 |
% |
|
|
217,408 |
|
5,958 |
5.45 |
% |
Total interest bearing liabilities |
|
6,215,592 |
|
40,366 |
1.31 |
% |
|
|
5,114,159 |
|
51,067 |
2.01 |
% |
|
|
|
|
|
|
|
|
Noninterest bearing
liabilities: |
|
|
|
|
|
|
|
Noninterest bearing
demand |
|
2,416,355 |
|
|
|
|
2,195,084 |
|
|
Other liabilities |
|
69,923 |
|
|
|
|
68,963 |
|
|
Total noninterest bearing liabilities |
|
2,486,278 |
|
|
|
|
2,264,047 |
|
|
|
|
|
|
|
|
|
|
Shareholders’ equity |
|
1,185,316 |
|
|
|
|
1,147,782 |
|
|
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY |
$ |
9,887,186 |
|
|
|
$ |
8,525,988 |
|
|
|
|
|
|
|
|
|
|
Net interest income |
|
$ |
161,107 |
|
|
|
$ |
162,346 |
|
Net interest spread |
|
|
2.90 |
% |
|
|
|
3.20 |
% |
Net interest margin |
|
|
3.36 |
% |
|
|
|
3.97 |
% |
Cost of funds |
|
|
0.85 |
% |
|
|
|
1.24 |
% |
|
|
|
|
|
|
|
|
(1) Loans placed
on nonaccrual status are included in average balances. Net loan
fees and late charges included in interest income on loans totaled
$10.7 million and $8.8 million |
|
for the six months ended June
30, 2020 and 2019, 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: |
|
2020 |
|
|
|
2020 |
|
|
|
2019 |
|
|
|
2019 |
|
|
|
2019 |
|
|
|
2019 |
|
|
|
2018 |
|
|
|
2018 |
|
Total interest income |
$ |
97,672 |
|
|
$ |
103,801 |
|
|
$ |
107,183 |
|
|
$ |
109,034 |
|
|
$ |
108,279 |
|
|
$ |
105,134 |
|
|
$ |
105,581 |
|
|
$ |
102,360 |
|
Total interest expense |
|
16,309 |
|
|
|
24,057 |
|
|
|
26,473 |
|
|
|
28,045 |
|
|
|
26,950 |
|
|
|
24,117 |
|
|
|
23,869 |
|
|
|
21,069 |
|
Net interest income |
|
81,363 |
|
|
|
79,744 |
|
|
|
80,710 |
|
|
|
80,989 |
|
|
|
81,329 |
|
|
|
81,017 |
|
|
|
81,712 |
|
|
|
81,291 |
|
Provision for credit
losses |
|
19,737 |
|
|
|
14,310 |
|
|
|
2,945 |
|
|
|
3,186 |
|
|
|
3,600 |
|
|
|
3,360 |
|
|
|
2,600 |
|
|
|
2,441 |
|
Provision for Unfunded
Commitments |
|
940 |
|
|
|
2,112 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
Net interest income after
provision for credit losses |
|
60,686 |
|
|
|
63,322 |
|
|
|
77,765 |
|
|
|
77,803 |
|
|
|
77,729 |
|
|
|
77,657 |
|
|
|
79,112 |
|
|
|
78,850 |
|
Noninterest income (before investment gain (loss)) |
|
11,782 |
|
|
|
4,648 |
|
|
|
6,845 |
|
|
|
6,161 |
|
|
|
5,797 |
|
|
|
5,379 |
|
|
|
6,060 |
|
|
|
5,640 |
|
Gain (Loss) on sale of
investment securities |
|
713 |
|
|
|
822 |
|
|
|
(111 |
) |
|
|
153 |
|
|
|
563 |
|
|
|
912 |
|
|
|
29 |
|
|
|
- |
|
Total noninterest income |
|
12,495 |
|
|
|
5,470 |
|
|
|
6,734 |
|
|
|
6,314 |
|
|
|
6,360 |
|
|
|
6,291 |
|
|
|
6,089 |
|
|
|
5,640 |
|
Salaries and employee benefits |
|
17,104 |
|
|
|
17,797 |
|
|
|
19,360 |
|
|
|
19,095 |
|
|
|
17,743 |
|
|
|
23,644 |
|
|
|
15,907 |
|
|
|
17,157 |
|
Premises and equipment |
|
3,468 |
|
|
|
3,821 |
|
|
|
3,380 |
|
|
|
3,503 |
|
|
|
3,652 |
|
|
|
3,852 |
|
|
|
3,969 |
|
|
|
3,889 |
|
Marketing and advertising |
|
1,111 |
|
|
|
1,078 |
|
|
|
1,200 |
|
|
|
1,210 |
|
|
|
1,268 |
|
|
|
1,148 |
|
|
|
1,147 |
|
|
|
1,191 |
|
Other expenses |
|
13,209 |
|
|
|
14,651 |
|
|
|
10,786 |
|
|
|
9,665 |
|
|
|
10,696 |
|
|
|
9,660 |
|
|
|
10,664 |
|
|
|
9,377 |
|
Total noninterest expense |
|
34,892 |
|
|
|
37,347 |
|
|
|
34,726 |
|
|
|
33,473 |
|
|
|
33,359 |
|
|
|
38,304 |
|
|
|
31,687 |
|
|
|
31,614 |
|
Income before income tax
expense |
|
38,289 |
|
|
|
31,445 |
|
|
|
49,773 |
|
|
|
50,644 |
|
|
|
50,730 |
|
|
|
45,644 |
|
|
|
53,514 |
|
|
|
52,876 |
|
Income tax expense |
|
9,433 |
|
|
|
8,322 |
|
|
|
14,317 |
|
|
|
14,149 |
|
|
|
13,487 |
|
|
|
11,895 |
|
|
|
13,197 |
|
|
|
13,928 |
|
Net income |
|
28,856 |
|
|
|
23,123 |
|
|
|
35,456 |
|
|
|
36,495 |
|
|
|
37,243 |
|
|
|
33,749 |
|
|
|
40,317 |
|
|
|
38,948 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Per Share
Data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per weighted average
common share, basic |
$ |
0.90 |
|
|
$ |
0.70 |
|
|
$ |
1.06 |
|
|
$ |
1.07 |
|
|
$ |
1.08 |
|
|
$ |
0.98 |
|
|
$ |
1.17 |
|
|
$ |
1.14 |
|
Earnings per weighted average
common share, diluted |
$ |
0.90 |
|
|
$ |
0.70 |
|
|
$ |
1.06 |
|
|
$ |
1.07 |
|
|
$ |
1.08 |
|
|
$ |
0.98 |
|
|
$ |
1.17 |
|
|
$ |
1.13 |
|
Weighted average common shares
outstanding, basic |
|
32,224,695 |
|
|
|
32,850,112 |
|
|
|
33,468,572 |
|
|
|
34,232,890 |
|
|
|
34,540,152 |
|
|
|
34,480,772 |
|
|
|
34,349,089 |
|
|
|
34,308,684 |
|
Weighted average common shares
outstanding, diluted |
|
32,240,825 |
|
|
|
32,875,508 |
|
|
|
33,498,681 |
|
|
|
34,255,889 |
|
|
|
34,565,253 |
|
|
|
34,536,236 |
|
|
|
34,460,985 |
|
|
|
34,460,794 |
|
Actual shares outstanding at
period end |
|
32,224,756 |
|
|
|
32,197,258 |
|
|
|
33,241,496 |
|
|
|
33,720,522 |
|
|
|
34,539,853 |
|
|
|
34,537,193 |
|
|
|
34,387,919 |
|
|
|
34,308,473 |
|
Book value per common share at
period end |
$ |
36.86 |
|
|
$ |
36.11 |
|
|
$ |
35.82 |
|
|
$ |
35.13 |
|
|
$ |
34.30 |
|
|
$ |
33.25 |
|
|
$ |
32.25 |
|
|
$ |
30.94 |
|
Tangible book value per common
share at period end (1) |
$ |
33.62 |
|
|
$ |
32.86 |
|
|
$ |
32.67 |
|
|
$ |
32.02 |
|
|
$ |
31.25 |
|
|
$ |
30.20 |
|
|
$ |
29.17 |
|
|
$ |
27.84 |
|
Dividend per common share |
$ |
0.22 |
|
|
$ |
0.22 |
|
|
$ |
0.22 |
|
|
$ |
0.22 |
|
|
$ |
0.22 |
|
|
$ |
- |
|
|
$ |
- |
|
|
$ |
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Performance Ratios
(annualized): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average assets |
|
1.12% |
|
|
|
0.98% |
|
|
|
1.49% |
|
|
|
1.62% |
|
|
|
1.74% |
|
|
|
1.62% |
|
|
|
1.90% |
|
|
|
1.93% |
|
Return on average common
equity |
|
9.84% |
|
|
|
7.81% |
|
|
|
11.78% |
|
|
|
12.09% |
|
|
|
12.81% |
|
|
|
12.12% |
|
|
|
14.82% |
|
|
|
14.85% |
|
Return on average tangible
common equity |
|
10.80% |
|
|
|
8.56% |
|
|
|
12.91% |
|
|
|
13.25% |
|
|
|
14.08% |
|
|
|
13.38% |
|
|
|
16.43% |
|
|
|
16.54% |
|
Net interest margin |
|
3.26% |
|
|
|
3.49% |
|
|
|
3.49% |
|
|
|
3.72% |
|
|
|
3.91% |
|
|
|
4.02% |
|
|
|
3.97% |
|
|
|
4.14% |
|
Efficiency ratio
(2) |
|
37.18% |
|
|
|
43.83% |
|
|
|
39.71% |
|
|
|
38.34% |
|
|
|
38.04% |
|
|
|
43.87% |
|
|
|
36.09% |
|
|
|
36.37% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
Ratios: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for credit losses to
total loans (3) |
|
1.36% |
|
|
|
1.23% |
|
|
|
0.98% |
|
|
|
0.98% |
|
|
|
0.98% |
|
|
|
0.98% |
|
|
|
1.00% |
|
|
|
1.00% |
|
Allowance for credit losses to
total nonperforming loans (4) |
|
184.52% |
|
|
|
201.80% |
|
|
|
151.16% |
|
|
|
127.87% |
|
|
|
192.70% |
|
|
|
173.72% |
|
|
|
429.72% |
|
|
|
452.28% |
|
Nonperforming loans to total
loans (3) (4) |
|
0.74% |
|
|
|
0.61% |
|
|
|
0.65% |
|
|
|
0.76% |
|
|
|
0.51% |
|
|
|
0.56% |
|
|
|
0.23% |
|
|
|
0.22% |
|
Nonperforming assets to total
assets (4) |
|
0.69% |
|
|
|
0.56% |
|
|
|
0.56% |
|
|
|
0.66% |
|
|
|
0.45% |
|
|
|
0.50% |
|
|
|
0.21% |
|
|
|
0.20% |
|
Net charge-offs (annualized)
to average loans (3) |
|
0.36% |
|
|
|
0.12% |
|
|
|
0.16% |
|
|
|
0.08% |
|
|
|
0.08% |
|
|
|
0.19% |
|
|
|
0.05% |
|
|
|
0.05% |
|
Tier 1 capital (to average
assets) |
|
10.63% |
|
|
|
11.33% |
|
|
|
11.62% |
|
|
|
12.19% |
|
|
|
12.66% |
|
|
|
12.49% |
|
|
|
12.08% |
|
|
|
12.13% |
|
Total capital (to risk
weighted assets) |
|
16.33% |
|
|
|
15.44% |
|
|
|
16.20% |
|
|
|
16.08% |
|
|
|
16.36% |
|
|
|
16.22% |
|
|
|
16.08% |
|
|
|
15.74% |
|
Common equity tier 1 capital
(to risk weighted assets) |
|
12.79% |
|
|
|
12.14% |
|
|
|
12.87% |
|
|
|
12.76% |
|
|
|
12.87% |
|
|
|
12.69% |
|
|
|
12.47% |
|
|
|
12.11% |
|
Tangible common equity ratio
(1) |
|
11.17% |
|
|
|
10.70% |
|
|
|
12.22% |
|
|
|
12.13% |
|
|
|
12.60% |
|
|
|
12.59% |
|
|
|
12.11% |
|
|
|
12.01% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Balances (in
thousands): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets |
$ |
10,326,709 |
|
|
$ |
9,447,663 |
|
|
$ |
9,426,220 |
|
|
$ |
8,923,406 |
|
|
$ |
8,595,523 |
|
|
$ |
8,455,680 |
|
|
$ |
8,415,480 |
|
|
$ |
8,023,535 |
|
Total earning assets |
$ |
10,056,500 |
|
|
$ |
9,176,174 |
|
|
$ |
9,160,034 |
|
|
$ |
8,655,196 |
|
|
$ |
8,328,323 |
|
|
$ |
8,185,711 |
|
|
$ |
8,171,010 |
|
|
$ |
7,793,422 |
|
Total loans |
$ |
8,015,751 |
|
|
$ |
7,650,993 |
|
|
$ |
7,532,179 |
|
|
$ |
7,492,816 |
|
|
$ |
7,260,899 |
|
|
$ |
7,038,472 |
|
|
$ |
6,897,434 |
|
|
$ |
6,646,264 |
|
Total deposits |
$ |
8,482,718 |
|
|
$ |
7,696,764 |
|
|
$ |
7,716,973 |
|
|
$ |
7,319,314 |
|
|
$ |
6,893,981 |
|
|
$ |
6,987,468 |
|
|
$ |
6,950,714 |
|
|
$ |
6,485,144 |
|
Total borrowings |
$ |
598,463 |
|
|
$ |
485,948 |
|
|
$ |
449,432 |
|
|
$ |
345,464 |
|
|
$ |
470,214 |
|
|
$ |
266,209 |
|
|
$ |
342,637 |
|
|
$ |
464,460 |
|
Total shareholders’
equity |
$ |
1,179,452 |
|
|
$ |
1,191,180 |
|
|
$ |
1,194,337 |
|
|
$ |
1,197,513 |
|
|
$ |
1,166,487 |
|
|
$ |
1,128,869 |
|
|
$ |
1,079,622 |
|
|
$ |
1,040,826 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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
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