Eagle Bancorp, Inc. (the “Company”) (NASDAQ: EGBN), the parent
company of EagleBank (the “Bank”), today announced quarterly net
income of $41.3 million for the three months ended September 30,
2020, a 13.2% increase, as compared to $36.5 million net income for
the three months ended September 30, 2019. Net income per basic and
diluted common share for the three months ended September 30, 2020
was $1.28 compared to $1.07 for the same period in 2019.
Third Quarter Key Metrics
- Record net income of $41.3 million supported by gain on sale of
loans of $12.2 million
- Lower credit costs and OREO recovery
- Net interest margin of 3.08%
- Nonperforming assets were 0.62% of total assets and the
allowance for credit losses on loans was 1.40% of total loans (CECL
adopted January 1, 2020)
- Improved operating leverage resulting in efficiency ratio of
38.10%
At the end of the third quarter of 2020 the
Company's assets totaled $10.1 billion, representing 12.2% growth
over the third quarter of 2019. For the third quarter of 2020
return on average assets ("ROAA") was 1.57%, return on average
common equity ("ROACE") was 14.46%, and return on average tangible
common equity ("ROATCE") was 15.93%. A reconciliation of GAAP
to non-GAAP financial measures is provided in the tables that
accompany this document.
“I am very pleased with the overall results of
operations for the third quarter of 2020 at a time when the
COVID-19 pandemic is having a significant effect on the business
climate and operating environment. Highlights included the highest
level of quarterly net income and total revenue in the Company’s
history, continuing growth in the balance sheet, wherein assets
exceeded $10 billion at quarter-end, solid asset quality, and a
continuing trend of very favorable operating leverage as exhibited
by an efficiency ratio of 38.10%," noted Susan G. Riel, President
and Chief Executive Officer of Eagle Bancorp, Inc. "Loan growth in
the third quarter was significantly impacted by construction loan
payoffs, which reflected a successful completion of those projects
and the closing out of related credit facilities. Ongoing project
financing was slowed by diminished business activity associated
with the COVID-19 pandemic environment.”
"We once again thank all of our employees for
their commitment and diligence in serving client needs and
following safe health practices. As we look toward the final
quarter of 2020, our goal is to maintain strong operating
performance. We will continue to proactively manage any credit
concerns including resolving matters related to credit deferrals
while delivering best-in-class service to our customers. We will
continue to exercise prudent oversight of expenses, while retaining
an infrastructure that is competitive, supports our growth
initiatives, and proactively enhances our risk management systems
as we continue to grow.”
Balance Sheet Highlights
- Total assets at September 30, 2020 were $10.1
billion, a 12.2% increase as compared to $9.0 billion at September
30, 2019, and a 12.4% increase as compared to $9.0 billion at
December 31, 2019.
- Total loans (excluding loans held for sale)
were $7.9 billion at September 30, 2020, a 4.2% increase as
compared to $7.56 billion at September 30, 2019, and a 4.4%
increase as compared to $7.55 billion at December 31, 2019. PPP
loans represented $456.1 million of total loans at the end of the
third quarter. Excluding Paycheck Protection Program ("PPP") loans,
the decrease in loan balance is mostly attributable to the
successful completion of construction projects and the related
construction loan payoffs.
- Loans held for sale amounted to $79.1 million
at September 30, 2020 as compared to $52.2 million at September 30,
2019, a 51.5% increase, and $56.7 million at December 31, 2019, a
39.5% increase.
- Investment portfolio totaled $977.6 million at
September 30, 2020, a 38.0% increase from the $708.5 million
balance at September 30, 2019. As compared to December 31, 2019,
the investment portfolio at September 30, 2020 increased by $134.2
million, or 15.9% due primarily to the deployment of deposit
inflows in to higher yielding assets.
- Total deposits at September 30, 2020 were $8.2
billion, compared to deposits of $7.4 billion at September 30,
2019, a 10.5% increase, and a 13.2% increase compared to
deposits of $7.2 billion at December 31, 2019.
- Total borrowed funds (excluding customer
repurchase agreements) were $568.0 million at September 30, 2020,
$317.6 million at September 30, 2019, and $467.7 million at
December 31, 2019.
- Total shareholders’ equity increased 3.3% to
$1.22 billion at September 30, 2020 compared to $1.18 billion at
September 30, 2019, and increased 2.8% from $1.19 billion at
December 31, 2019. The increase in shareholders’ equity at
September 30, 2020 compared to the same period in 2019 was
primarily the result of growth in retained earnings partially
offset by $66 million in stock repurchases, dividends declared of
$21.3 million, and by the day one current expected credit losses
("CECL") entry of $10.9 million net of taxes.
- The Company’s capital ratios remain
substantially in excess of regulatory minimum requirements.
- Total risk based capital ratio increased to 16.72% at September
30, 2020, as compared to 16.08% at September 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 increased to 13.19% at September 30,
2020, as compared to 12.76% at September 30, 2019, and 12.87% at
December 31, 2019.
- Tier 1 leverage ratio was 10.82% at September 30, 2020, as
compared to 12.19% at September 30, 2019, and 11.62% at December
31, 2019.
- Common equity ratio was 12.11% at September 30, 2020, compared
to 13.16% at September 30, 2019, and 13.25% at December 31, 2019.
Tangible common equity ratio was 11.18% at September 30, 2020,
compared to 12.13% at September 30, 2019 and 12.22% at December 31,
2019. A reconciliation of GAAP to non-GAAP financial measures
is provided in the tables that accompany this document.
- Book value per share was $37.96 at September 30, 2020, an 8.1%
increase compared to $35.13 for the same period in 2019.
Tangible book value per share was $34.70 at September 30, 2020, an
8.4% increase over $32.02 for the same period in 2019. A
reconciliation of GAAP to non-GAAP financial measures is provided
in the tables that accompany this document.
Income Statement Highlights (3Q2020
versus 3Q2019)
- Net interest income was $79.0 million for the
three months ended September 30, 2020 and $81.0 million for the
same period in 2019. The decrease resulted from a decline in the
net interest margin substantially offset by growth in average
earning assets of 17.9%.
- Net interest margin was 3.08% for the three
months ended September 30, 2020, as compared to 3.72% for the three
months ended September 30, 2019, which reflects the impact of lower
interest rates and higher cash balances given strong deposit flows,
partially offset by improved funding mix and lower funding costs.
Additionally, the net interest margin was negatively impacted by
approximately three basis points due to lower rates on PPP
loans.
- Provision for credit losses was $6.6 million
for the three months ended September 30, 2020 as compared to $3.2
million for the three months ended September 30, 2019. The higher
provisioning in the third quarter of 2020, as compared to the third
quarter of 2019, was primarily due to the implementation of the
CECL accounting standard for credit loss allowances and the impact
of COVID-19 on our actual and expected future credit losses.
- Reserve for Unfunded Commitments decreased
$2.1 million during third quarter 2020 attributable primarily
to a decrease in unfunded commitments in accordance with
CECL.
- Net charge-offs of $5.2 million in the third
quarter of 2020 represented an annualized 0.26% 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 third quarter of 2019. Net charge-offs in the third quarter
of 2020 were attributable primarily to two large commercial real
estate relationships totaling $4.9 million.
- Noninterest income for the three months ended
September 30, 2020 increased to $17.8 million from $6.3 million for
the three months ended September 30, 2019, a 182.6% increase, due
substantially to $9.5 million higher gains on the sale of
residential mortgage loans, $1.2 million gain on the sale of an
OREO property, and $912 thousand higher gains associated with the
origination, securitization, sale and servicing of FHA loans.
- Owing to the historically low interest rate environment and
refinance activity, residential mortgage loan locked commitments
were $593.0 million for the third quarter of 2020 as compared to
$282.1 million for the third quarter of 2019.
- Prior to the third quarter, revenue associated with best
efforts loans was recognized at closing. As best efforts pipeline
volumes increased dramatically in the third quarter, the company
changed accounting methodology by which gains associated with the
best efforts pipeline are recognized to align with GAAP, such that
these gains are recognized as these loans are locked. As a result,
an additional $1.6 million in noninterest income associated with
the residential mortgage operations was recognized in the third
quarter of 2020. The impact of this change in methodology on
revenue associated with best efforts loans in prior reporting
periods is immaterial.
- Noninterest expenses totaled $36.9 million for
the three months ended September 30, 2020, as compared to $33.5
million for the three months ended September 30, 2019, a 10.3%
increase, due substantially to increased FDIC fees and rent expense
as discussed further below.
- FDIC insurance expenses increased $2.1 million from third
quarter 2019 to third quarter 2020 due to a nonrecurring $1.1
million credit in the third quarter of 2019 and a higher assessment
base in the third quarter of 2020 resulting from growth in total
assets.
- Premise and equipment expenses increased by $1.6 million, or
46%, for the third quarter of 2020 over the same period of
2019. In accordance with ASC 842 on Leases, a $1.7 million
one-time adjustment to rent expense was recorded during the third
quarter as our internal review process identified a lease extension
that was not originally recorded in the lease balances reflected in
the Statement of Condition upon implementation of the new lease
accounting standard.
- Legal, accounting and professional fees decreased by $528
thousand from third quarter 2019 to third quarter 2020, as the Bank
recognized receivables on legal expenditures associated with
insurance coverage where we believe we have a high likelihood of
recovery pursuant to our D&O insurance policies. The Bank 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.
Legal fees and expenditures of $957 thousand for the third 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.
- Data Processing fees increased by $517 thousand related to an
increase in licensing fees.
- Efficiency ratio was 38.10% for the third
quarter of 2020, as compared to 38.34% for the third quarter of
2019, due in part to strong noninterest income performance and
lower legal expenses during the third quarter of 2020 compared to
2019.
- Effective income tax rate for the third
quarter of 2020 was 25.4% as compared to 27.9% for the third
quarter of 2019. The decrease was due to additional tax credits in
2020 compared to 2019 as well as reduced unfavorable tax
differences for disallowed compensation deductions in respect of
compensation for key executives in 2020. On an interim basis, tax
expense is recorded using an annual forecasted effective tax rate.
The forecast for 2020 is lower than 2019 due to increased credit
reserves significantly attributable to COVID-19. As a result, the
annual effective tax rate recorded on an interim basis
declined.
Income Statement Highlights (First Nine
Months 2020 versus First Nine Months 2019)
- Net interest income decreased 1.3% for the
nine months ended September 30, 2020 over the same period in 2019
($240.1 million versus $243.3 million), resulting from net interest
margin declines despite growth in average earning assets of 17.0%.
- Net interest margin was 3.27% for the
nine months ended September 30, 2020, as compared to 3.88% for the
nine months ended September 30, 2019. This decline was owing in
part to the COVID-19 pandemic, to the sharply lower interest rate
environment in 2020 as compared to 2019, and to substantially
higher on balance sheet liquidity.
- While the Company has been proactive in lowering its cost of
funds (0.75% for the first nine months of 2020 compared to 1.26% in
2019), the yield on earning assets declined by 112 basis points
(from 5.14% to 4.02%).
- Additionally, the net interest on margin was negatively
impacted by approximately two basis points due to lower rates on
PPP loans.
- Provision for credit losses was $40.7 million
for the nine months ended September 30, 2020 as compared to $10.1
million for the nine months ended September 30, 2019. The higher
provisioning for the nine months ended September 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 $14.6 million for the nine
months ended September 30, 2020 represented an annualized 0.25% of
average loans, excluding loans held for sale, as compared to $6.4
million, or an annualized 0.12% of average loans, excluding loans
held for sale, in the first nine months of 2019. Net charge-offs in
the first nine months of 2020 were attributable primarily to
commercial loans ($7.2 million) and commercial real estate loans
($7.2 million).
- Noninterest income for the nine months ended
September 30, 2020 increased to $35.8 million from $19.0 million
for the nine months ended September 30, 2019, an 89% increase, due
substantially to $10.3 million higher gains on the sale of
residential mortgage loans, $3.4 million higher gains associated
with the origination, securitization, sale, and servicing of FHA
loans, $1.4 million higher small business investment company
("SBIC") income, $1.2 million gain on the sale of an OREO property,
$1.2 million higher swap fee income, and $703 thousand higher
commitment fees, partially offset by less service charges on
deposits of $1.4 million.
- Owing to the historically low interest rate environment and
refinance activity, residential mortgage loan locked commitments
were $1.4 billion for the first nine months ended September 30,
2020 as compared to $674.2 million for the first nine months of
2019.
- Residential lending gains for the first nine 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.
- Prior to the third quarter, revenue associated with best
efforts loans was recognized at closing. As best efforts pipeline
volumes increased dramatically in the third quarter, the company
changed accounting methodology by which gains associated with the
best efforts pipeline are recognized to align with GAAP, such that
these gains are recognized as these loans are locked. As a result,
an additional $1.6 million in noninterest income associated with
the residential mortgage operations was recognized in the first
nine months of September 30, 2020. The impact of this change in
methodology on revenue associated with best efforts loans in prior
reporting periods is immaterial.
- Gain on sale of investment securities was $1.7 million and $1.6
million for the nine months ended September 30, 2020 and 2019,
respectively.
- Noninterest expenses totaled $109.2 million
for the nine months ended September 30, 2020, as compared to $105.1
million for the nine months ended September 30, 2019, a 3.8%
increase.
- Salaries and employee benefits were $54.3 million, a decrease
of $6.2 million or 10.2% for the first nine months ended September
30, 2020 compared to $60.5 million for the same period in 2019. 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, of which a portion was
released in the second quarter of 2020. The decrease was partially
offset by higher salaries attributable to merit increases and
increased headcount in the first nine months of 2020.
- Legal, accounting and professional fees were $14.1 million, an
increase of $6.0 million or 74%. Legal fees and expenditures of
$8.0 million for the first nine 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, where we
filed a motion to dismiss on April 2, 2020. Briefing on our motion
is now complete and is under consideration by the court. The amount
of legal fees and expenditures for the year 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.
- FDIC expenses increased $3.2 million (from $2.3 million to $5.6
million) due to a nonrecurring $1.1 million credit in the third
quarter of 2019 and a higher assessment base resulting from growth
in total assets.
- Premises and equipment expenses were $1.4 million higher for
the first nine months of 2020 as compared to same period in 2019.
In accordance with ASC 842 on Leases, we recorded $1.7 million to
rent expense during the third quarter 2020 as our internal review
process identified a lease extension that was not originally
recorded in the lease balances reflected in the Statement of
Condition upon implementation of the new lease accounting
standard.
- Data processing increased by $794 thousand due to an increase
in licensing agreements and network expenses.
- Other expenses decreased by $700 thousand primarily related to
$2.3 million lower broker fees, offset by $931 thousand
higher OREO property tax expense on a single relationship, and $378
thousand higher franchise taxes.
- Efficiency Ratio for the first nine months of
2020 was 39.56% as compared to 40.08% for the same period in
2019.
- Effective income tax rates were 25.4% and
26.9% for the first nine months of September 2020 and 2019,
respectively. The decrease in the effective tax rate was mainly
attributable to a reduction for unfavorable tax differences for
disallowed compensation deductions in respect of compensation for
key executives, mainly related to the compensation of our former
CEO and Chairman who resigned in March 2019 as well as additional
tax credits in 2020 compared to 2019. On an interim basis tax
expense is recorded using an annual forecasted effective tax rate.
The forecast for 2020 is lower than 2019 due to increased credit
reserves significantly attributable to COVID-19. As a result, the
annual effective tax rate on an interim basis declined.
Additional Quarterly Financial
Commentary
Loans, Deposits, Yields & Rates:
The Company continues to focus on changes in
average balances quarter over quarter and year over year since that
measure more directly impacts income statement results. Comparing
average balances in the third quarter of 2020 versus the second
quarter of 2020, average loans declined 1.3% while average deposits
increased by 1.3%. At September 30, 2020, the Bank had advances
outstanding of $466.0 million to just over 1,400 businesses under
the PPP program.
In the third quarter of 2020, as average U.S.
Treasury rates in the two to five year range declined by
approximately seven basis points and the average yield curve
remained fairly flat, the Company experienced 18 basis points of
net interest margin compression (from 3.26% to 3.08%) as compared
to the second quarter of 2020. In addition, our cost of funds
declined 7 basis points (from 0.65% to 0.58%), while the yield on
earning assets declined by 25 basis points (from 3.91% to 3.66%).
Average liquidity for the third quarter was $1.3 billion versus
$1.1 billion for the second quarter of 2020. The yield on our loan
assets was negatively impacted by the low interest rate environment
in the third quarter of 2020, including a 19 basis point decline in
the average one-month LIBOR rate. A substantial portion of the
variable rate loan portfolio has interest rate floors which
cushioned the decline in loan yields.
In the third quarter of 2020, period end total
loans declined 1.3% over June 30, 2020, while total deposits
increased 1.3% over June 30, 2020. New loans settled in the third
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 declined immaterially in
third quarter 2020 from the previous seven quarters, from an
average of $2.3 billion to just below $2.0 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 31.7% in the third quarter of 2020, as compared to 29.5%
in the third quarter of 2019.
The net interest margin was 3.08% for the third
quarter of 2020, down 64 basis points from the third quarter of
2019. In addition to the current sharply lower interest rate
environment as compared to 2019, there was less focus on higher
risk and higher yielding construction lending and more attention
towards strong commercial real estate credits secured by stabilized
income producing properties. The yield on the loan portfolio was
4.46% for the third quarter of 2020 as compared to 5.39% for the
third quarter of 2019 and 4.63% for the second quarter of 2020. The
addition of the PPP loans at an average yield of 2.41% for the
quarter negatively impacted the overall yield of the total loan
portfolio by approximately 13 basis points. The cost of funds was
0.58% for the third quarter of 2020 as compared to 1.28% for the
third quarter of 2019 and 0.65% for the second quarter of 2020.
Asset Quality:
Asset quality measures remained solid at
September 30, 2020. Net charge-offs (annualized) were 0.26% of
average loans for the third quarter of 2020 (attributable mostly to
two credits), as compared to 0.08% of average loans for the third
quarter of 2019. At September 30, 2020, the Company’s nonperforming
loans amounted to $58.1 million (0.74% of total loans) as compared
to $57.7 million (0.76% of total loans) at September 30, 2019, and
$48.7 million (0.65% of total loans) at December 31, 2019.
Nonperforming assets amounted to $63.0 million (0.62% of total
assets) at September 30, 2020 compared to $59.1 million (0.66% of
total assets) at September 30, 2019 and $50.2 million (0.56% of
total assets) at December 31, 2019.
As discussed in the first quarter 2020 earnings
release, the new accounting CECL standard (ASC 326) was adopted by
the Company in the first quarter of 2020. CECL required 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 requirements 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% as of March 31, 2020 and again to 1.36% as
of June 30, 2020, which included the assessment of COVID-19 risks
as of March 31, 2020 and as of June 30, 2020, respectively. Based
on our ongoing risk analysis and modeling through September 30,
2020, under the CECL allowance methodology, the Company further
increased the allowance for loan losses to 1.40% of total loans,
which reflects COVID-19 risks assessments and an updated
unemployment forecast for the Washington, D.C. metropolitan area.
Additionally, the qualitative risk factors have been increased
associated with our higher mix of Accommodation & Food Services
industry loans. We have also made additional qualitative overlays
for loans that are on their second deferrals. The September 2020
unemployment forecast was less severe than the June forecast.
Management believes its allowance for credit losses, at 1.40% of
total loans (excluding loans held for sale) at September 30, 2020,
is adequate to absorb expected credit losses within the loan
portfolio at that date. Although the Company continues to monitor
its loan portfolio and its borrowers' uncertainty remains about the
duration of the COVID-19 pandemic and its impacts and further
significant negative impact may occur. Under the prior accounting
standard known as the incurred loss model, the allowance for credit
losses was 0.98% at both September 30, 2019 and December 31, 2019.
The allowance for credit losses of $110.2 million at September 30,
2020 represented 190% of nonperforming loans at that date, as
compared to a coverage ratio of 128% at September 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 10.2% of the Bank’s loan portfolio as of
September 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 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 321 notes
and $851 million at September 30, 2020 (10.8% of total loans) as
compared to 708 notes representing $1.6 billion in outstanding
exposure as of June 30, 2020.
Industry/Collateral Type |
|
Number
of Notes |
|
Total
Outstanding (in millions) |
|
Deferred Note Count |
|
Total
Deferred Outstanding (in millions) |
|
%
Outstanding Deferred |
|
Weighted Avg LTV of RE Collateral |
|
Avg
Loan Size (in millions) |
Hotels |
|
43 |
|
$ |
532 |
|
|
17 |
|
$ |
387 |
|
|
72.7 |
% |
|
60 |
% |
|
$ |
22.8 |
|
Transportation &
Warehousing |
|
66 |
|
$ |
173 |
|
|
34 |
|
$ |
134 |
|
|
77.5 |
% |
|
65 |
% |
|
$ |
3.9 |
|
Restaurants |
|
427 |
|
$ |
274 |
|
|
127 |
|
$ |
115 |
|
|
42.0 |
% |
|
61 |
% |
|
$ |
0.9 |
|
Retail |
|
319 |
|
$ |
475 |
|
|
17 |
|
$ |
73 |
|
|
15.4 |
% |
|
69 |
% |
|
$ |
4.3 |
|
Other Real Estate |
|
919 |
|
$ |
3,752 |
|
|
21 |
|
$ |
34 |
|
|
0.9 |
% |
|
47 |
% |
|
$ |
1.6 |
|
Healthcare |
|
196 |
|
$ |
249 |
|
|
8 |
|
$ |
28 |
|
|
11.2 |
% |
|
67 |
% |
|
$ |
3.5 |
|
Art/Entertainment/Recreation |
|
65 |
|
$ |
138 |
|
|
8 |
|
$ |
23 |
|
|
16.7 |
% |
|
15 |
% |
|
$ |
2.9 |
|
Other |
|
2,992 |
|
|
$ |
2,287 |
|
|
89 |
|
$ |
57 |
|
|
2.5 |
% |
|
60 |
% |
|
$ |
0.6 |
|
Total |
|
5,027 |
|
|
$ |
7,880 |
|
|
321 |
|
$ |
851 |
|
|
10.8 |
% |
|
|
|
$ |
2.7 |
|
Management believes that none of these deferrals
have met the criteria for treatment under GAAP as troubled debt
restructurings (TDRs). Additionally, none of the deferrals are
reflected in the Company’s balance sheet and asset quality measures
due to the provision of the Coronavirus Aid Relief and Economic
Security Act (the "CARES Act") that permits U.S. financial
institutions to temporarily suspend the 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. Other loan portfolio areas of concern
at September 30, 2020 and additional COVID-19 loan related matters
are discussed below.
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 temporarily
allow the majority of our employees to work remotely, there are
some functions that require a physical presence at our banking
offices. While there has been no decision at this time to return 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, including required COVID-19 training programs.
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 for
the third quarter of 2020.
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 program was further
expanded by Congress in the second quarter of 2020, to a total of
$660 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 September 30, 2020 had an
outstanding balance of PPP loans of $466.0 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 2.41% for the
third quarter of 2020. The lower loan yield on these PPP loans
negatively affected third quarter loan portfolio yields by 13 basis
points. For the first nine months of 2020, the average rate on
these loans is 1.00% and the average yield which includes fee
amortization was 2.62%. The lower loan yield on these PPP loans
negatively affected nine month loan portfolio yields in 2020 by
seven basis points.
Loan Portfolio Exposures:
Industry areas of potential concern within the
Loan Portfolio are presented below as of September 30, 2020:
Industry |
|
Principal Balance (in thousands) |
|
% of Loan Portfolio |
Accommodation & Food
Services |
|
$ |
804,712 |
|
1 |
10.2 |
% |
Retail Trade |
|
$ |
99,202 |
|
2 |
1.3 |
% |
1 Includes $81,983 of PPP loans.2 Includes
$13,561 of PPP loans.
Concerns over exposures to the Accommodation and
Food Service industry and retail remain the most immediate at this
time. Accommodation and Food Service exposure represents 10.2% of
the Bank’s loan portfolio as of September 30, 2020 among 331
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 as
customers work with the Bank to develop longer term stabilization
strategies as the landscape of the COVID-19 pandemic evolves. The
duration and severity of the pandemic will likely impact future
credit challenges in these areas.
In addition to the specific industry data listed
above, the Bank has exposure on loans secured by commercial real
estate of the following property types as of September 30,
2020:
Property Type |
|
Principal Balance (in thousands) |
|
% of Loan Portfolio |
Restaurant |
|
$ |
46,710 |
|
|
0.6 |
% |
Hotel |
|
$ |
35,782 |
|
|
0.5 |
% |
Retail |
|
$ |
389,485 |
|
|
4.9 |
% |
Although not evidenced at September 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.
The financial information which follows provides
more detail on the Company’s financial performance for the three
and nine months ended September 30, 2020 as compared to the three
and nine months ended September 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 third quarter 2020
financial results on Thursday, October 22, 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 4653118, 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 November 5, 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 quarters ended March 31, 2020 and June 30, 2020,
the Company’s upcoming Quarterly Report on Form 10-Q for the
quarter ended September 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 September 30, |
|
Nine Months Ended September 30, |
|
2020 |
|
2019 |
|
2020 |
|
2019 |
Income
Statements: |
|
|
|
|
|
|
|
Total interest income |
$ |
93,833 |
|
|
|
$ |
109,034 |
|
|
$ |
295,306 |
|
|
$ |
322,447 |
|
Total interest expense |
14,795 |
|
|
|
28,045 |
|
|
55,161 |
|
|
79,112 |
|
Net interest income |
79,038 |
|
|
|
80,989 |
|
|
240,145 |
|
|
243,335 |
|
Provision for credit
losses |
6,607 |
|
|
|
3,186 |
|
|
40,654 |
|
|
10,146 |
|
Provision for Unfunded
Commitments |
(2,078 |
) |
|
|
— |
|
|
974 |
|
|
— |
|
Net interest income after
provision for credit losses |
74,509 |
|
|
|
77,803 |
|
|
198,517 |
|
|
233,189 |
|
Noninterest income (before
investment gain) |
17,729 |
|
|
|
6,161 |
|
|
34,159 |
|
|
17,337 |
|
Gain on sale of investment
securities |
115 |
|
|
|
153 |
|
|
1,650 |
|
|
1,628 |
|
Total noninterest income |
17,844 |
|
|
|
6,314 |
|
|
35,809 |
|
|
18,965 |
|
Total noninterest expense |
36,915 |
|
|
|
33,473 |
|
|
109,154 |
|
|
105,136 |
|
Income before income tax
expense |
55,438 |
|
|
|
50,644 |
|
|
125,172 |
|
|
147,018 |
|
Income tax expense |
14,092 |
|
|
|
14,149 |
|
|
31,847 |
|
|
39,531 |
|
Net income |
$ |
41,346 |
|
|
|
$ |
36,495 |
|
|
$ |
93,325 |
|
|
$ |
107,487 |
|
Per Share
Data: |
|
|
|
|
|
|
|
Earnings per weighted average
common share, basic |
$ |
1.28 |
|
|
|
$ |
1.07 |
|
|
$ |
2.88 |
|
|
$ |
3.12 |
|
Earnings per weighted average
common share, diluted |
$ |
1.28 |
|
|
|
$ |
1.07 |
|
|
$ |
2.88 |
|
|
$ |
3.12 |
|
Weighted average common shares
outstanding, basic |
32,229,322 |
|
|
|
34,232,890 |
|
|
32,433,963 |
|
|
34,418,154 |
|
Weighted average common shares
outstanding, diluted |
32,250,885 |
|
|
|
34,255,889 |
|
|
32,458,100 |
|
|
34,450,876 |
|
Actual shares outstanding at
period end |
32,228,636 |
|
|
|
33,720,522 |
|
|
32,228,636 |
|
|
33,720,522 |
|
Book value per common share at
period end |
$ |
37.96 |
|
|
|
$ |
35.13 |
|
|
$ |
37.96 |
|
|
$ |
35.13 |
|
Tangible book value per common
share at period end (1) |
$ |
34.70 |
|
|
|
$ |
32.02 |
|
|
$ |
34.70 |
|
|
$ |
32.02 |
|
Dividend per common share |
$ |
0.22 |
|
|
|
$ |
0.22 |
|
|
$ |
0.66 |
|
|
$ |
0.44 |
|
Performance Ratios
(annualized): |
|
|
|
|
|
|
|
Return on average assets |
1.57 |
|
% |
|
1.62 |
% |
|
1.24 |
% |
|
1.66 |
% |
Return on average common
equity |
14.46 |
|
% |
|
12.09 |
% |
|
10.44 |
% |
|
12.34 |
% |
Return on average tangible
common equity |
15.93 |
|
% |
|
13.25 |
% |
|
11.45 |
% |
|
13.57 |
% |
Net interest margin |
3.08 |
|
% |
|
3.72 |
% |
|
3.27 |
% |
|
3.88 |
% |
Efficiency ratio
(2) |
38.10 |
|
% |
|
38.34 |
% |
|
39.56 |
% |
|
40.08 |
% |
Other
Ratios: |
|
|
|
|
|
|
|
Allowance for credit losses to
total loans (3) |
1.40 |
|
% |
|
0.98 |
% |
|
1.40 |
% |
|
0.98 |
% |
Allowance for credit losses to
total nonperforming loans |
189.83 |
|
% |
|
127.87 |
% |
|
189.83 |
% |
|
127.87 |
% |
Nonperforming loans to total
loans (3) |
0.74 |
|
% |
|
0.76 |
% |
|
0.74 |
% |
|
0.76 |
% |
Nonperforming assets to total
assets |
0.62 |
|
% |
|
0.66 |
% |
|
0.62 |
% |
|
0.66 |
% |
Net charge-offs (annualized)
to average loans (3) |
0.26 |
|
% |
|
0.08 |
% |
|
0.25 |
% |
|
0.12 |
% |
Common equity to total
assets |
12.11 |
|
% |
|
13.16 |
% |
|
12.11 |
% |
|
13.16 |
% |
Tier 1 capital (to average
assets) |
10.82 |
|
% |
|
12.19 |
% |
|
10.82 |
% |
|
12.19 |
% |
Total capital (to risk
weighted assets) |
16.72 |
|
% |
|
16.08 |
% |
|
16.72 |
% |
|
16.08 |
% |
Common equity tier 1 capital
(to risk weighted assets) |
13.19 |
|
% |
|
12.76 |
% |
|
13.19 |
% |
|
12.76 |
% |
Tangible common equity ratio
(1) |
11.18 |
|
% |
|
12.13 |
% |
|
11.18 |
% |
|
12.13 |
% |
Loan Balances - Period
End (in thousands): |
|
|
|
|
|
|
|
Commercial and Industrial |
$ |
1,524,613 |
|
|
|
$ |
1,466,862 |
|
|
$ |
1,524,613 |
|
|
$ |
1,466,862 |
|
PPP loans |
$ |
456,115 |
|
|
|
$ |
— |
|
|
$ |
456,115 |
|
|
$ |
— |
|
(continued) |
|
|
|
|
|
|
|
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
|
2020 |
|
2019 |
|
2020 |
|
2019 |
|
|
|
|
|
|
|
|
Commercial real estate - owner
occupied |
$ |
997,645 |
|
|
|
$ |
956,345 |
|
|
$ |
997,645 |
|
|
$ |
956,345 |
|
Commercial real estate -
income producing |
$ |
3,724,839 |
|
|
|
$ |
3,812,284 |
|
|
$ |
3,724,839 |
|
|
$ |
3,812,284 |
|
1-4 Family mortgage |
$ |
82,385 |
|
|
|
$ |
104,563 |
|
|
$ |
82,385 |
|
|
$ |
104,563 |
|
Construction - commercial and
residential |
$ |
879,144 |
|
|
|
$ |
1,053,789 |
|
|
$ |
879,144 |
|
|
$ |
1,053,789 |
|
Construction - C&I (owner
occupied) |
$ |
140,357 |
|
|
|
$ |
81,916 |
|
|
$ |
140,357 |
|
|
$ |
81,916 |
|
Home equity |
$ |
72,648 |
|
|
|
$ |
8,117 |
|
|
$ |
72,648 |
|
|
$ |
81,117 |
|
Other consumer |
$ |
2,509 |
|
|
|
$ |
2,285 |
|
|
$ |
2,509 |
|
|
$ |
2,285 |
|
Average Balances (in
thousands): |
|
|
|
|
|
|
|
Total assets |
$ |
10,473,595 |
|
|
|
$ |
8,923,406 |
|
|
$ |
10,084,081 |
|
|
$ |
8,659,916 |
|
Total earning assets |
$ |
10,205,939 |
|
|
|
$ |
8,655,196 |
|
|
$ |
9,814,305 |
|
|
$ |
8,391,463 |
|
Total loans |
$ |
7,910,260 |
|
|
|
$ |
7,492,816 |
|
|
$ |
7,859,188 |
|
|
$ |
7,265,726 |
|
Total deposits |
$ |
8,591,912 |
|
|
|
$ |
7,319,314 |
|
|
$ |
8,258,352 |
|
|
$ |
7,068,137 |
|
Total borrowings |
$ |
596,472 |
|
|
|
$ |
345,464 |
|
|
$ |
560,427 |
|
|
$ |
360,920 |
|
Total shareholders’
equity |
$ |
1,211,145 |
|
|
|
$ |
1,197,513 |
|
|
$ |
1,193,988 |
|
|
$ |
1,164,541 |
|
(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.
(2) Computed by dividing noninterest expense by
the sum of net interest income and noninterest income. The
efficiency ratio measures a bank’s overhead as a percentage of its
revenue.
(3) Excludes loans held for sale.
GAAP Reconciliation
(Unaudited) |
|
|
|
|
|
|
|
|
|
(dollars in thousands except
per share data) |
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Nine Months Ended |
|
Year Ended |
|
Three Months Ended |
|
Nine Months Ended |
|
September 30, 2020 |
|
September 30, 2020 |
|
December 31, 2019 |
|
September 30, 2019 |
|
September 30, 2019 |
Common shareholders'
equity |
|
|
$ |
1,223,402 |
|
|
|
$ |
1,190,681 |
|
|
|
|
|
$ |
1,184,594 |
|
|
Less: Intangible assets |
|
|
(105,165 |
) |
|
|
(104,739 |
) |
|
|
|
|
(104,915 |
) |
|
Tangible common
equity |
|
|
$ |
1,118,237 |
|
|
|
$ |
1,085,942 |
|
|
|
|
|
$ |
1,079,679 |
|
|
Book value per common
share |
|
|
$ |
37.96 |
|
|
|
$ |
35.82 |
|
|
|
|
|
$ |
35.13 |
|
|
Less: Intangible book value
per common share |
|
|
(3.26 |
) |
|
|
(3.15 |
) |
|
|
|
|
(3.11 |
) |
|
Tangible book value
per common share |
|
|
$ |
34.70 |
|
|
|
$ |
32.67 |
|
|
|
|
|
$ |
32.02 |
|
|
Total assets |
|
|
$ |
10,106,294 |
|
|
|
$ |
8,988,719 |
|
|
|
|
|
$ |
9,003,467 |
|
|
Less: Intangible assets |
|
|
(105,165 |
) |
|
|
(104,739 |
) |
|
|
|
|
(104,915 |
) |
|
Tangible
assets |
|
|
$ |
10,001,129 |
|
|
|
$ |
8,883,980 |
|
|
|
|
|
$ |
8,898,552 |
|
|
Tangible common equity
ratio |
|
|
11.18 |
|
% |
|
12.22 |
|
% |
|
|
|
12.13 |
|
% |
Average common shareholders'
equity |
$ |
1,137,826 |
|
|
|
$ |
1,193,988 |
|
|
|
$ |
1,172,051 |
|
|
|
$ |
1,197,513 |
|
|
|
$ |
1,164,542 |
|
|
Less: Average intangible
assets |
(105,106 |
) |
|
|
(104,826 |
) |
|
|
(105,167 |
) |
|
|
(105,034 |
) |
|
|
(105,297 |
) |
|
Average tangible
common equity |
$ |
1,032,720 |
|
|
|
$ |
1,089,162 |
|
|
|
$ |
1,066,884 |
|
|
|
$ |
1,092,479 |
|
|
|
$ |
1,059,245 |
|
|
Net Income Available to Common
Shareholders |
$ |
41,346 |
|
|
|
$ |
93,325 |
|
|
|
$ |
142,943 |
|
|
|
$ |
36,495 |
|
|
|
$ |
107,487 |
|
|
Average tangible common
equity |
$ |
1,032,720 |
|
|
|
$ |
1,089,162 |
|
|
|
$ |
1,066,884 |
|
|
|
$ |
1,092,479 |
|
|
|
$ |
1,059,245 |
|
|
Annualized Return on
Average Tangible Common Equity |
15.93 |
|
% |
|
11.45 |
|
% |
|
13.40 |
|
% |
|
13.25 |
|
% |
|
13.57 |
|
% |
Eagle Bancorp,
Inc. |
|
|
|
|
|
Consolidated Balance
Sheets (Unaudited) |
|
|
|
|
|
(dollars in thousands, except
per share data) |
|
|
|
|
|
Assets |
September 30, 2020 |
|
December 31, 2019 |
|
September 30, 2019 |
Cash and due from banks |
$ |
7,559 |
|
|
|
$ |
7,539 |
|
|
|
$ |
6,657 |
|
|
Federal funds sold |
30,830 |
|
|
|
38,987 |
|
|
|
27,711 |
|
|
Interest bearing deposits with
banks and other short-term investments |
818,719 |
|
|
|
195,447 |
|
|
|
361,154 |
|
|
Investment securities
available for sale, at fair value (amortized cost of $956,803,
$839,192, and $701,956, and allowance for credit losses of $156,
$0, and $0, as of September 30, 2020, December 31, 2019 and
September 30, 2019, respectively). |
977,570 |
|
|
|
843,363 |
|
|
|
708,545 |
|
|
Federal Reserve and Federal
Home Loan Bank stock |
40,061 |
|
|
|
35,194 |
|
|
|
28,725 |
|
|
Loans held for sale |
79,084 |
|
|
|
56,707 |
|
|
|
52,199 |
|
|
Loans |
7,880,255 |
|
|
|
7,545,748 |
|
|
|
7,559,161 |
|
|
Less allowance for credit
losses |
(110,215 |
) |
|
|
(73,658 |
) |
|
|
(73,720 |
) |
|
Loans, net |
7,770,040 |
|
|
|
7,472,090 |
|
|
|
7,485,441 |
|
|
Premises and equipment,
net |
12,204 |
|
|
|
14,622 |
|
|
|
14,515 |
|
|
Operating lease right-of-use
assets |
27,180 |
|
|
|
27,372 |
|
|
|
26,552 |
|
|
Deferred income taxes |
36,363 |
|
|
|
29,804 |
|
|
|
29,722 |
|
|
Bank owned life insurance |
76,326 |
|
|
|
75,724 |
|
|
|
74,726 |
|
|
Intangible assets, net |
105,165 |
|
|
|
104,739 |
|
|
|
104,915 |
|
|
Other real estate owned |
4,987 |
|
|
|
1,487 |
|
|
|
1,487 |
|
|
Other assets |
120,206 |
|
|
|
85,644 |
|
|
|
81,118 |
|
|
Total
Assets |
$ |
10,106,294 |
|
|
|
$ |
8,988,719 |
|
|
|
$ |
9,003,467 |
|
|
Liabilities and
Shareholders' Equity |
|
|
|
|
|
Deposits: |
|
|
|
|
|
Noninterest bearing
demand |
$ |
2,384,108 |
|
|
|
$ |
2,064,367 |
|
|
|
$ |
2,051,106 |
|
|
Interest bearing
transaction |
823,607 |
|
|
|
863,856 |
|
|
|
918,011 |
|
|
Savings and money market |
3,956,553 |
|
|
|
3,013,129 |
|
|
|
3,034,530 |
|
|
Time, $100,000 or more |
553,949 |
|
|
|
663,987 |
|
|
|
772,340 |
|
|
Other time |
460,568 |
|
|
|
619,052 |
|
|
|
626,526 |
|
|
Total deposits |
8,178,785 |
|
|
|
7,224,391 |
|
|
|
7,402,513 |
|
|
Customer repurchase
agreements |
24,293 |
|
|
|
30,980 |
|
|
|
30,297 |
|
|
Other short-term
borrowings |
300,000 |
|
|
|
250,000 |
|
|
|
100,000 |
|
|
Long-term borrowings |
267,980 |
|
|
|
217,687 |
|
|
|
217,589 |
|
|
Operating lease
liabilities |
30,457 |
|
|
|
29,959 |
|
|
|
29,586 |
|
|
Reserve for unfunded
commitments |
5,092 |
|
|
|
— |
|
|
|
— |
|
|
Other liabilities |
76,285 |
|
|
|
45,021 |
|
|
|
38,888 |
|
|
Total
liabilities |
8,882,892 |
|
|
|
7,798,038 |
|
|
|
7,818,873 |
|
|
Shareholders'
Equity |
|
|
|
|
|
Common stock, par value $.01
per share; shares authorized 100,000,000, shares |
|
|
|
|
|
issued and outstanding 32,228,636, 33,241,496, and 34,539,853,
respectively |
320 |
|
|
|
331 |
|
|
|
336 |
|
|
Additional paid in
capital |
442,592 |
|
|
|
482,286 |
|
|
|
502,566 |
|
|
Retained earnings |
766,219 |
|
|
|
705,105 |
|
|
|
677,055 |
|
|
Accumulated other
comprehensive income |
14,271 |
|
|
|
2,959 |
|
|
|
4,637 |
|
|
Total Shareholders'
Equity |
1,223,402 |
|
|
|
1,190,681 |
|
|
|
1,184,594 |
|
|
Total Liabilities and
Shareholders' Equity |
$ |
10,106,294 |
|
|
|
$ |
8,988,719 |
|
|
|
$ |
9,003,467 |
|
|
Eagle Bancorp,
Inc. |
|
|
|
|
|
|
|
Consolidated
Statements of Income (Unaudited) |
|
|
|
|
|
|
|
(dollars in thousands, except
per share data) |
|
|
|
|
|
|
|
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
Interest
Income |
2020 |
|
2019 |
|
2020 |
|
2019 |
Interest and fees on
loans |
$ |
89,296 |
|
|
|
$ |
102,297 |
|
|
$ |
278,979 |
|
|
$ |
302,007 |
|
Interest and dividends on
investment securities |
4,141 |
|
|
|
4,904 |
|
|
14,139 |
|
|
15,740 |
|
Interest on balances with
other banks and short-term investments |
384 |
|
|
|
1,762 |
|
|
2,104 |
|
|
4,533 |
|
Interest on federal funds
sold |
12 |
|
|
|
71 |
|
|
84 |
|
|
167 |
|
Total interest income |
93,833 |
|
|
|
109,034 |
|
|
295,306 |
|
|
322,447 |
|
Interest
Expense |
|
|
|
|
|
|
|
Interest on deposits |
10,995 |
|
|
|
24,576 |
|
|
44,055 |
|
|
67,937 |
|
Interest on customer
repurchase agreements |
84 |
|
|
|
82 |
|
|
257 |
|
|
255 |
|
Interest on other short-term
borrowings |
505 |
|
|
|
408 |
|
|
1,363 |
|
|
1,983 |
|
Interest on long-term
borrowings |
3,211 |
|
|
|
2,979 |
|
|
9,486 |
|
|
8,937 |
|
Total interest expense |
14,795 |
|
|
|
28,045 |
|
|
55,161 |
|
|
79,112 |
|
Net Interest
Income |
79,038 |
|
|
|
80,989 |
|
|
240,145 |
|
|
243,335 |
|
Provision for Credit
Losses |
6,607 |
|
|
|
3,186 |
|
|
40,654 |
|
|
10,146 |
|
Provision for Unfunded
Commitments |
(2,078 |
) |
|
|
— |
|
|
974 |
|
|
— |
|
Net Interest Income
After Provision For Credit Losses |
74,509 |
|
|
|
77,803 |
|
|
198,517 |
|
|
233,189 |
|
Noninterest
Income |
|
|
|
|
|
|
|
Service charges on
deposits |
1,061 |
|
|
|
1,494 |
|
|
3,428 |
|
|
4,794 |
|
Gain on sale of loans |
12,226 |
|
|
|
2,563 |
|
|
16,249 |
|
|
5,874 |
|
Gain on sale of investment
securities |
115 |
|
|
|
153 |
|
|
1,650 |
|
|
1,628 |
|
Increase in the cash surrender
value of bank owned life insurance |
413 |
|
|
|
431 |
|
|
1,655 |
|
|
1,285 |
|
Other income |
4,029 |
|
|
|
1,673 |
|
|
12,827 |
|
|
5,384 |
|
Total noninterest income |
17,844 |
|
|
|
6,314 |
|
|
35,809 |
|
|
18,965 |
|
Noninterest
Expense |
|
|
|
|
|
|
|
Salaries and employee
benefits |
19,388 |
|
|
|
19,095 |
|
|
54,289 |
|
|
60,482 |
|
Premises and equipment
expenses |
5,125 |
|
|
|
3,503 |
|
|
12,414 |
|
|
11,007 |
|
Marketing and advertising |
928 |
|
|
|
1,210 |
|
|
3,117 |
|
|
3,626 |
|
Data processing |
2,700 |
|
|
|
2,183 |
|
|
7,955 |
|
|
7,161 |
|
Legal, accounting and
professional fees |
3,097 |
|
|
|
3,625 |
|
|
14,064 |
|
|
8,074 |
|
FDIC insurance |
2,152 |
|
|
|
85 |
|
|
5,556 |
|
|
2,327 |
|
Other expenses |
3,525 |
|
|
|
3,772 |
|
|
11,759 |
|
|
12,459 |
|
Total noninterest expense |
36,915 |
|
|
|
33,473 |
|
|
109,154 |
|
|
105,136 |
|
Income Before Income
Tax Expense |
55,438 |
|
|
|
50,644 |
|
|
125,172 |
|
|
147,018 |
|
Income Tax
Expense |
14,092 |
|
|
|
14,149 |
|
|
31,847 |
|
|
39,531 |
|
Net
Income |
$ |
41,346 |
|
|
|
$ |
36,495 |
|
|
$ |
93,325 |
|
|
$ |
107,487 |
|
Earnings Per Common
Share |
|
|
|
|
|
|
|
Basic |
$ |
1.28 |
|
|
|
$ |
1.07 |
|
|
$ |
2.88 |
|
|
$ |
3.12 |
|
Diluted |
$ |
1.28 |
|
|
|
$ |
1.07 |
|
|
$ |
2.88 |
|
|
$ |
3.12 |
|
Eagle Bancorp, Inc. |
Consolidated Average Balances, Interest Yields And Rates
(Unaudited) |
(dollars in thousands) |
|
Three Months Ended September 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 |
$ |
1,275,932 |
|
|
$ |
384 |
|
|
0.12 |
% |
|
$ |
344,853 |
|
|
$ |
1,762 |
|
|
2.03 |
% |
Loans held for sale
(1) |
79,354 |
|
|
567 |
|
|
2.86 |
% |
|
49,765 |
|
|
492 |
|
|
3.95 |
% |
Loans (1)
(2) |
7,910,260 |
|
|
88,730 |
|
|
4.46 |
% |
|
7,492,816 |
|
|
101,805 |
|
|
5.39 |
% |
Investment securities
available for sale (2) |
906,990 |
|
|
4,141 |
|
|
1.82 |
% |
|
741,907 |
|
|
4,904 |
|
|
2.62 |
% |
Federal funds sold |
33,403 |
|
|
11 |
|
|
0.13 |
% |
|
25,855 |
|
|
71 |
|
|
1.09 |
% |
Total interest earning
assets |
10,205,939 |
|
|
93,833 |
|
|
3.66 |
% |
|
8,655,196 |
|
|
109,034 |
|
|
5.00 |
% |
Total noninterest earning
assets |
376,681 |
|
|
|
|
|
|
341,452 |
|
|
|
|
|
Less: allowance for credit
losses |
109,025 |
|
|
|
|
|
|
73,242 |
|
|
|
|
|
Total noninterest earning
assets |
267,656 |
|
|
|
|
|
|
268,210 |
|
|
|
|
|
TOTAL
ASSETS |
$ |
10,473,595 |
|
|
|
|
|
|
$ |
8,923,406 |
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY |
|
|
|
|
|
|
|
|
|
|
|
Interest bearing
liabilities: |
|
|
|
|
|
|
|
|
|
|
|
Interest bearing
transaction |
$ |
756,005 |
|
|
$ |
483 |
|
|
0.25 |
% |
|
$ |
791,785 |
|
|
$ |
1,828 |
|
|
0.92 |
% |
Savings and money market |
3,998,603 |
|
|
4,929 |
|
|
0.49 |
% |
|
2,922,751 |
|
|
13,606 |
|
|
1.85 |
% |
Time deposits |
1,112,664 |
|
|
5,583 |
|
|
2.00 |
% |
|
1,444,328 |
|
|
9,142 |
|
|
2.51 |
% |
Total interest bearing
deposits |
5,867,272 |
|
|
10,995 |
|
|
0.75 |
% |
|
5,158,864 |
|
|
24,576 |
|
|
1.89 |
% |
Customer repurchase
agreements |
28,523 |
|
|
84 |
|
|
1.17 |
% |
|
27,809 |
|
|
82 |
|
|
1.17 |
% |
Other short-term
borrowings |
300,003 |
|
|
506 |
|
|
0.66 |
% |
|
100,100 |
|
|
408 |
|
|
1.59 |
% |
Long-term borrowings |
267,946 |
|
|
3,211 |
|
|
4.69 |
% |
|
217,555 |
|
|
2,979 |
|
|
5.36 |
% |
Total interest bearing
liabilities |
6,463,744 |
|
|
14,796 |
|
|
0.91 |
% |
|
5,504,328 |
|
|
28,045 |
|
|
2.02 |
% |
Noninterest bearing
liabilities: |
|
|
|
|
|
|
|
|
|
|
|
Noninterest bearing
demand |
2,724,640 |
|
|
|
|
|
|
2,160,450 |
|
|
|
|
|
Other liabilities |
74,066 |
|
|
|
|
|
|
61,115 |
|
|
|
|
|
Total noninterest bearing
liabilities |
2,798,706 |
|
|
|
|
|
|
2,221,565 |
|
|
|
|
|
Shareholders’ Equity |
1,211,145 |
|
|
|
|
|
|
1,197,513 |
|
|
|
|
|
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY |
$ |
10,473,595 |
|
|
|
|
|
|
$ |
8,923,406 |
|
|
|
|
|
Net interest income |
|
|
$ |
79,037 |
|
|
|
|
|
|
$ |
80,989 |
|
|
|
Net interest spread |
|
|
|
|
2.75 |
% |
|
|
|
|
|
2.98 |
% |
Net interest margin |
|
|
|
|
3.08 |
% |
|
|
|
|
|
3.72 |
% |
Cost of funds |
|
|
|
|
0.58 |
% |
|
|
|
|
|
1.28 |
% |
(1) Loans placed on nonaccrual status are included in average
balances. Net loan fees and late charges included in interest
income on loans totaled $5.4 million and $4.3 million for the three
months ended September 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) |
|
Nine Months Ended September 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 |
$ |
990,051 |
|
|
$ |
2,104 |
|
|
0.28 |
% |
|
$ |
285,150 |
|
|
$ |
4,533 |
|
|
2.13 |
% |
Loans held for sale
(1) |
66,158 |
|
|
1,605 |
|
|
3.23 |
% |
|
34,265 |
|
|
1,041 |
|
|
4.05 |
% |
Loans (1)
(2) |
7,859,188 |
|
|
277,373 |
|
|
4.71 |
% |
|
7,265,726 |
|
|
300,966 |
|
|
5.54 |
% |
Investment securities
available for sale (1) |
865,484 |
|
|
14,139 |
|
|
2.18 |
% |
|
784,970 |
|
|
15,740 |
|
|
2.68 |
% |
Federal funds sold |
33,424 |
|
|
84 |
|
|
0.34 |
% |
|
21,352 |
|
|
167 |
|
|
1.05 |
% |
Total interest earning
assets |
9,814,305 |
|
|
295,305 |
|
|
4.02 |
% |
|
8,391,463 |
|
|
322,447 |
|
|
5.14 |
% |
Total noninterest earning
assets |
368,974 |
|
|
|
|
|
|
339,355 |
|
|
|
|
|
Less: allowance for credit
losses |
99,198 |
|
|
|
|
|
|
70,902 |
|
|
|
|
|
Total noninterest earning
assets |
269,776 |
|
|
|
|
|
|
268,453 |
|
|
|
|
|
TOTAL
ASSETS |
$ |
10,084,081 |
|
|
|
|
|
|
8,659,916 |
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY |
|
|
|
|
|
|
|
|
|
|
|
Interest bearing
liabilities: |
|
|
|
|
|
|
|
|
|
|
|
Interest bearing
transaction |
$ |
787,434 |
|
|
$ |
2,679 |
|
|
0.45 |
% |
|
$ |
696,825 |
|
|
$ |
4,206 |
|
|
0.81 |
% |
Savings and money market |
3,751,397 |
|
|
21,619 |
|
|
0.77 |
% |
|
2,781,663 |
|
|
37,848 |
|
|
1.82 |
% |
Time deposits |
1,199,654 |
|
|
19,757 |
|
|
2.20 |
% |
|
1,406,237 |
|
|
25,883 |
|
|
2.46 |
% |
Total interest bearing
deposits |
5,738,485 |
|
|
44,055 |
|
|
1.03 |
% |
|
4,884,725 |
|
|
67,937 |
|
|
1.86 |
% |
Customer repurchase
agreements |
29,710 |
|
|
257 |
|
|
1.16 |
% |
|
29,617 |
|
|
255 |
|
|
1.15 |
% |
Other short-term
borrowings |
273,452 |
|
|
1,364 |
|
|
0.66 |
% |
|
113,845 |
|
|
1,983 |
|
|
2.30 |
% |
Long-term borrowings |
257,265 |
|
|
9,486 |
|
|
4.84 |
% |
|
217,458 |
|
|
8,937 |
|
|
5.42 |
% |
Total interest bearing
liabilities |
6,298,912 |
|
|
55,162 |
|
|
1.17 |
% |
|
5,245,645 |
|
|
79,112 |
|
|
2.02 |
% |
Noninterest bearing
liabilities: |
|
|
|
|
|
|
|
|
|
|
|
Noninterest bearing
demand |
2,519,867 |
|
|
|
|
|
|
2,183,412 |
|
|
|
|
|
Other liabilities |
71,314 |
|
|
|
|
|
|
66,318 |
|
|
|
|
|
Total noninterest bearing
liabilities |
2,591,181 |
|
|
|
|
|
|
2,249,730 |
|
|
|
|
|
Shareholders’ equity |
1,193,988 |
|
|
|
|
|
|
1,164,541 |
|
|
|
|
|
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY |
$ |
10,084,081 |
|
|
|
|
|
|
$ |
8,659,916 |
|
|
|
|
|
Net interest income |
|
|
$ |
240,143 |
|
|
|
|
|
|
$ |
243,335 |
|
|
|
Net interest spread |
|
|
|
|
2.85 |
% |
|
|
|
|
|
3.12 |
% |
Net interest margin |
|
|
|
|
3.27 |
% |
|
|
|
|
|
3.88 |
% |
Cost of funds |
|
|
|
|
0.75 |
% |
|
|
|
|
|
1.26 |
% |
(1) Loans placed on nonaccrual status are included in average
balances. Net loan fees and late charges included in interest
income on loans totaled $16.1 million and $13.1 million for the
nine months ended September 30, 2020 and 2019, respectively.
(2) Interest and fees on loans and investments exclude tax
equivalent adjustments.
Statements
of Income and Highlights Quarterly Trends (Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(dollars in thousands, except
per share data) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
September 30, |
|
June 30, |
|
March 31, |
|
December 31, |
|
September 30, |
|
June 30, |
|
March 31, |
|
December 31, |
|
|
Income
Statements: |
2020 |
|
2020 |
|
2020 |
|
2019 |
|
2019 |
|
2019 |
|
2019 |
|
2018 |
|
|
Total interest income |
$ |
93,833 |
|
|
|
$ |
97,672 |
|
|
$ |
103,801 |
|
|
$ |
107,183 |
|
|
|
$ |
109,034 |
|
|
$ |
108,279 |
|
|
$ |
105,134 |
|
|
$ |
105,581 |
|
|
|
Total interest expense |
14,795 |
|
|
|
16,309 |
|
|
24,057 |
|
|
26,473 |
|
|
|
28,045 |
|
|
26,950 |
|
|
24,117 |
|
|
23,869 |
|
|
|
Net interest income |
79,038 |
|
|
|
81,363 |
|
|
79,744 |
|
|
80,710 |
|
|
|
80,989 |
|
|
81,329 |
|
|
81,017 |
|
|
81,712 |
|
|
|
Provision for credit
losses |
6,607 |
|
|
|
19,737 |
|
|
14,310 |
|
|
2,945 |
|
|
|
3,186 |
|
|
3,600 |
|
|
3,360 |
|
|
2,600 |
|
|
|
Provision for unfunded
commitments |
(2,078 |
) |
|
|
940 |
|
|
2,112 |
|
|
— |
|
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
|
Net interest income after
provision for credit losses |
74,509 |
|
|
|
60,686 |
|
|
63,322 |
|
|
77,765 |
|
|
|
77,803 |
|
|
77,729 |
|
|
77,657 |
|
|
79,112 |
|
|
|
Noninterest income (before
investment gain (loss)) |
17,729 |
|
|
|
11,782 |
|
|
4,648 |
|
|
6,845 |
|
|
|
6,161 |
|
|
5,797 |
|
|
5,379 |
|
|
6,060 |
|
|
|
Gain (loss) on sale of
investment securities |
115 |
|
|
|
713 |
|
|
822 |
|
|
(111 |
) |
|
|
153 |
|
|
563 |
|
|
912 |
|
|
29 |
|
|
|
Total noninterest income |
17,844 |
|
|
|
12,495 |
|
|
5,470 |
|
|
6,734 |
|
|
|
6,314 |
|
|
6,360 |
|
|
6,291 |
|
|
6,089 |
|
|
|
Salaries and employee
benefits |
19,388 |
|
|
|
17,104 |
|
|
17,797 |
|
|
19,360 |
|
|
|
19,095 |
|
|
17,743 |
|
|
23,644 |
|
|
15,907 |
|
|
|
Premises and equipment |
5,125 |
|
|
|
3,468 |
|
|
3,821 |
|
|
3,380 |
|
|
|
3,503 |
|
|
3,652 |
|
|
3,852 |
|
|
3,969 |
|
|
|
Marketing and advertising |
928 |
|
|
|
1,111 |
|
|
1,078 |
|
|
1,200 |
|
|
|
1,210 |
|
|
1,268 |
|
|
1,148 |
|
|
1,147 |
|
|
|
Other expenses |
11,474 |
|
|
|
13,209 |
|
|
14,651 |
|
|
10,786 |
|
|
|
9,665 |
|
|
10,696 |
|
|
9,660 |
|
|
10,664 |
|
|
|
Total noninterest expense |
36,915 |
|
|
|
34,892 |
|
|
37,347 |
|
|
34,726 |
|
|
|
33,473 |
|
|
33,359 |
|
|
38,304 |
|
|
31,687 |
|
|
|
Income before income tax
expense |
55,438 |
|
|
|
38,289 |
|
|
31,445 |
|
|
49,773 |
|
|
|
50,644 |
|
|
50,730 |
|
|
45,644 |
|
|
53,514 |
|
|
|
Income tax expense |
14,092 |
|
|
|
9,433 |
|
|
8,322 |
|
|
14,317 |
|
|
|
14,149 |
|
|
13,487 |
|
|
11,895 |
|
|
13,197 |
|
|
|
Net income |
41,346 |
|
|
|
28,856 |
|
|
23,123 |
|
|
35,456 |
|
|
|
36,495 |
|
|
37,243 |
|
|
33,749 |
|
|
40,317 |
|
|
|
Per Share
Data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per weighted average
common share, basic |
$ |
1.28 |
|
|
|
$ |
0.90 |
|
|
$ |
0.70 |
|
|
$ |
1.06 |
|
|
|
$ |
1.07 |
|
|
$ |
1.08 |
|
|
$ |
0.98 |
|
|
$ |
1.17 |
|
|
|
Earnings per weighted average
common share, diluted |
$ |
1.28 |
|
|
|
$ |
0.90 |
|
|
$ |
0.70 |
|
|
$ |
1.06 |
|
|
|
$ |
1.07 |
|
|
$ |
1.08 |
|
|
$ |
0.98 |
|
|
$ |
1.17 |
|
|
|
Weighted average common shares
outstanding, basic |
32,229,322 |
|
|
|
32,224,695 |
|
|
32,850,112 |
|
|
33,468,572 |
|
|
|
34,232,890 |
|
|
34,540,152 |
|
|
34,480,772 |
|
|
34,349,089 |
|
|
|
Weighted average common shares
outstanding, diluted |
32,250,885 |
|
|
|
32,240,825 |
|
|
32,875,508 |
|
|
33,498,681 |
|
|
|
34,255,889 |
|
|
34,565,253 |
|
|
34,536,236 |
|
|
34,460,985 |
|
|
|
Actual shares outstanding at
period end |
32,228,636 |
|
|
|
32,224,756 |
|
|
32,197,258 |
|
|
33,241,496 |
|
|
|
33,720,522 |
|
|
34,539,853 |
|
|
34,537,193 |
|
|
34,387,919 |
|
|
|
Book value per common share at
period end |
$ |
37.96 |
|
|
|
$ |
36.86 |
|
|
$ |
36.11 |
|
|
$ |
35.82 |
|
|
|
$ |
35.13 |
|
|
$ |
34.30 |
|
|
$ |
33.25 |
|
|
$ |
32.25 |
|
|
|
Tangible book value per common
share at period end (1) |
$ |
34.70 |
|
|
|
$ |
33.62 |
|
|
$ |
32.86 |
|
|
$ |
32.67 |
|
|
|
$ |
32.02 |
|
|
$ |
31.25 |
|
|
$ |
30.20 |
|
|
$ |
29.17 |
|
|
|
Dividend per common share |
$ |
0.22 |
|
|
|
$ |
0.22 |
|
|
$ |
0.22 |
|
|
$ |
0.22 |
|
|
|
$ |
0.22 |
|
|
$ |
0.22 |
|
|
$ |
— |
|
|
$ |
— |
|
|
|
Performance Ratios
(annualized): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average assets |
1.57 |
|
% |
|
1.12 |
% |
|
0.98 |
% |
|
1.49 |
|
% |
|
1.62 |
% |
|
1.74 |
% |
|
1.62 |
% |
|
1.90 |
% |
|
|
Return on average common
equity |
14.46 |
|
% |
|
9.84 |
% |
|
7.81 |
% |
|
11.78 |
|
% |
|
12.09 |
% |
|
12.81 |
% |
|
12.12 |
% |
|
14.82 |
% |
|
|
(continued) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Statements
of Income and Highlights Quarterly Trends (Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(dollars in thousands, except
per share data) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
September 30, |
|
June 30, |
|
March 31, |
|
December 31, |
|
September 30, |
|
June 30, |
|
March 31, |
|
December 31, |
|
|
|
2020 |
|
2020 |
|
2020 |
|
2019 |
|
2019 |
|
2019 |
|
2019 |
|
2018 |
|
|
Return on average tangible
common equity |
15.93 |
|
% |
|
10.80 |
% |
|
8.56 |
% |
|
12.91 |
|
% |
|
13.25 |
% |
|
14.08 |
% |
|
13.38 |
% |
|
16.43 |
% |
|
|
Net interest margin |
3.08 |
|
% |
|
3.26 |
% |
|
3.49 |
% |
|
3.49 |
|
% |
|
3.72 |
% |
|
3.91 |
% |
|
4.02 |
% |
|
3.97 |
% |
|
|
Efficiency ratio
(2) |
38.10 |
|
% |
|
37.18 |
% |
|
43.83 |
% |
|
39.71 |
|
% |
|
38.34 |
% |
|
38.04 |
% |
|
43.87 |
% |
|
36.09 |
% |
|
|
Other
Ratios: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for credit losses to
total loans (3) |
1.40 |
|
% |
|
1.36 |
% |
|
1.23 |
% |
|
0.98 |
|
% |
|
0.98 |
% |
|
0.98 |
% |
|
0.98 |
% |
|
1.00 |
% |
|
|
Allowance for credit losses to
total nonperforming loans (4) |
189.83 |
|
% |
|
184.52 |
% |
|
201.80 |
% |
|
151.16 |
|
% |
|
127.87 |
% |
|
192.70 |
% |
|
173.72 |
% |
|
429.72 |
% |
|
|
Nonperforming loans to total
loans (3) (4) |
0.74 |
|
% |
|
0.74 |
% |
|
0.61 |
% |
|
0.65 |
|
% |
|
0.76 |
% |
|
0.51 |
% |
|
0.56 |
% |
|
0.23 |
% |
|
|
Nonperforming assets to total
assets (4) |
0.62 |
|
% |
|
0.69 |
% |
|
0.56 |
% |
|
0.56 |
|
% |
|
0.66 |
% |
|
0.45 |
% |
|
0.50 |
% |
|
0.21 |
% |
|
|
Net charge-offs (annualized)
to average loans (3) |
0.26 |
|
% |
|
0.36 |
% |
|
0.12 |
% |
|
0.16 |
|
% |
|
0.08 |
% |
|
0.08 |
% |
|
0.19 |
% |
|
0.05 |
% |
|
|
Tier 1 capital (to average
assets) |
10.82 |
|
% |
|
10.63 |
% |
|
11.33 |
% |
|
11.62 |
|
% |
|
12.19 |
% |
|
12.66 |
% |
|
12.49 |
% |
|
12.08 |
% |
|
|
Total capital (to risk
weighted assets) |
16.72 |
|
% |
|
16.33 |
% |
|
15.44 |
% |
|
16.20 |
|
% |
|
16.08 |
% |
|
16.36 |
% |
|
16.22 |
% |
|
16.08 |
% |
|
|
Common equity tier 1 capital
(to risk weighted assets) |
13.19 |
|
% |
|
12.79 |
% |
|
12.14 |
% |
|
12.87 |
|
% |
|
12.76 |
% |
|
12.87 |
% |
|
12.69 |
% |
|
12.47 |
% |
|
|
Tangible common equity ratio
(1) |
11.18 |
|
% |
|
11.17 |
% |
|
10.70 |
% |
|
12.22 |
|
% |
|
12.13 |
% |
|
12.60 |
% |
|
12.59 |
% |
|
12.11 |
% |
|
|
Average Balances (in
thousands): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets |
$ |
10,473,595 |
|
|
|
$ |
10,326,709 |
|
|
$ |
9,447,663 |
|
|
$ |
9,426,220 |
|
|
|
$ |
8,923,406 |
|
|
$ |
8,595,523 |
|
|
$ |
8,455,680 |
|
|
$ |
8,415,480 |
|
|
|
Total earning assets |
$ |
10,205,939 |
|
|
|
$ |
10,056,500 |
|
|
$ |
9,176,174 |
|
|
$ |
9,160,034 |
|
|
|
$ |
8,655,196 |
|
|
$ |
8,328,323 |
|
|
$ |
8,185,711 |
|
|
$ |
8,171,010 |
|
|
|
Total loans |
$ |
7,910,260 |
|
|
|
$ |
8,015,751 |
|
|
$ |
7,650,993 |
|
|
$ |
7,532,179 |
|
|
|
$ |
7,492,816 |
|
|
$ |
7,260,899 |
|
|
$ |
7,038,472 |
|
|
$ |
6,897,434 |
|
|
|
Total deposits |
$ |
8,591,912 |
|
|
|
$ |
8,482,718 |
|
|
$ |
7,696,764 |
|
|
$ |
7,716,973 |
|
|
|
$ |
7,319,314 |
|
|
$ |
6,893,981 |
|
|
$ |
6,987,468 |
|
|
$ |
6,950,714 |
|
|
|
Total borrowings |
$ |
596,472 |
|
|
|
$ |
598,463 |
|
|
$ |
485,948 |
|
|
$ |
449,432 |
|
|
|
$ |
345,464 |
|
|
$ |
470,214 |
|
|
$ |
266,209 |
|
|
$ |
342,637 |
|
|
|
Total shareholders’
equity |
$ |
1,211,145 |
|
|
|
$ |
1,179,452 |
|
|
$ |
1,191,180 |
|
|
$ |
1,194,337 |
|
|
|
$ |
1,197,513 |
|
|
$ |
1,166,487 |
|
|
$ |
1,128,869 |
|
|
$ |
1,079,622 |
|
|
|
(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 equityratio 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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