Eagle Bancorp, Inc. (the “Company”) (NASDAQ: EGBN), the parent
company of EagleBank (the “Bank”), today announced net income of
$43.6 million for the third quarter of 2021, compared to net income
of $41.3 million for the third quarter of 2020, a 5.5% increase.
Net income per basic and diluted common share was $1.36 for the
third quarter of 2021, compared to $1.28 for the third quarter of
2020.
The increase in earnings is largely due to the
release of reserves from the allowance for credit losses, partially
offset by a reduction in mortgage fee income. Earnings for the
third quarter of 2021 included a net reversal of $7.5 million from
the allowance for credit losses on loans and the reserve for
unfunded commitments, as compared to the third quarter of 2020,
which included a net provision of $4.5 million for those two
accounts.
Net income for the nine months ended
September 30, 2021, was $135.1 million, compared to $93.3
million for the nine months ended September 30, 2020, a 45%
increase. Net income per basic and diluted common share for the
nine months ended September 30, 2021 was $4.23 and $4.22,
respectively, compared to $2.88 for both basic and diluted for the
nine months ended September 30, 2020.
Third Quarter 2021
Highlights
- Income Statement
- Net income of $43.6 million
- Net reversal of $7.5 million (which includes an increase to the
reserve for unfunded commitments of $716 thousand)
- Net interest margin of 2.73%
- Return on average assets ("ROAA") of 1.46%
- Return on average common equity ("ROACE") of 13.00%
- Return on average tangible common equity ("ROATCE") of
14.11%1
- Efficiency ratio of 41.7%
- Balance Sheet
- Total assets of $11.6 billion
- Total loans (excluding loans held
for sale) were $6.85 billion, down 5.6% from the prior quarter
end
- Loans (excluding PPP of $67.3
million) were $6.78 billion, down 3.4% from the prior quarter
end2
- Book value per share of $41.68, up
9.8% from a year ago
- Tangible book value per share of $38.39, up 10.6% from a year
ago3
- Total risk based capital ratio of
16.59%
- Annualized net charge-off ratio to
average loans of 0.08%
- Nonperforming assets to total
assets of 0.31%
- Allowance for credit losses to total loans of 1.21%
- Other events
- Announced an increase of the cash dividend to $0.40 per share,
up 14% from $0.35 per share the prior quarter
- Repurchased 11,609 shares during the third quarter at an
average price of $52.94 per share
CEO Commentary
Susan G. Riel, President and Chief Executive
Officer of Eagle Bancorp, Inc. commented, "We ended the third
quarter of 2021 with earnings that were 1.46% of average assets,
continued improvement in asset quality and a high level of capital.
Earnings included a third consecutive reversal to the allowance for
credit losses and another substantial gain on sale of residential
mortgages."
"While we remain a leader among our peers with
an efficiency ratio of 41.7%, we continually seek out ways to
control or reduce expenses. Early in the quarter, given the Bank's
robust capital levels, we redeemed $150 million of subordinated
debt issued in 2016. Based on its rate of 5.00% in the second
quarter of 2021, this translates into an annualized pre-tax cost
savings of $7.5 million. Also this quarter, we closed our Dulles,
Virginia branch as it had an expiring lease and our other northern
Virginia branches allow us to continue serving these customers.
This reduced our branch count to 18 and raised our average deposits
per branch to $537 million. The combined annual pre-tax cost
savings in rental expense will be about $187 thousand.
"The lending environment in the third quarter
remained challenging. Our local market is strong and companies are
flush with cash, which led to a lot of paydowns on existing
credits, but it also helped push our nonperforming assets down to
0.31% of assets at quarter-end. Additionally, much of our lending
efforts this past quarter did not register on the balance sheet as
unfunded commitments increased by $280 million over the prior
quarter."
"At quarter end, our shareholders' equity
reached $1.3 billion and our total risk-based capital was 16.59%.
As economic conditions continue to improve and more opportunities
arise, our equity gives us the ability to originate loans for large
commercial projects, as well as a lot of runway to grow the loan
portfolio."
"For our shareholders, at the end of the quarter
our board increased the dividend to $0.40 per share, up from $0.35
per share in the previous quarter. With the increase, based on the
closing stock price of $57.50 per share on September 30, 2021,
the dividend yield was 2.78%. We were also active in making stock
repurchases during the quarter."
"We once again thank all of our employees for
their commitment in serving the needs of our clients and
communities. Additionally, we remain committed to a culture of
respect, diversity and inclusion in both the workplace and the
communities we serve."
Income Statement
- Net interest
income was $79.0 million for the third quarter of 2021,
unchanged from $79.0 million for the third quarter of 2020.
While net interest income remained flat, we saw a 13% increase in
average earning assets offset by a reduction in net interest margin
when comparing the third quarter of 2021 to the same period of
2020. The redemption of $150 million of subordinated debt issued in
2016 on August 2, 2021, resulted in the one-time acceleration of
deferred costs of $1.3 million, which were included in interest
expense in the third quarter of 2021.Net interest income was $246.3
million for the nine months ended September 30, 2021, up from
$240.1 million for the nine months ended September 30,
2020.
- Net interest
margin was 2.73% for the third quarter of 2021, as
compared to 3.08% for the third quarter of 2020. Absent the
accelerated interest expense on the redemption of $150 million of
subordinated debt on August 2, 2021, the net interest margin would
have been 2.78% for the third quarter of 2021.4 The decrease in
margin primarily reflects a lower rate environment as well as
significantly higher cash balances from strong deposit inflows.Net
interest margin was 2.91% for the nine months ended
September 30, 2021, as compared to 3.27% for the nine months
ended September 30, 2020.
| |
|
Three Months Ended |
|
Nine Months Ended |
| ($ in
thousands) |
|
September 30, 2021 |
|
September 30, 2020 |
|
September 30, 2021 |
|
September 30, 2020 |
| |
|
|
|
|
|
|
|
|
| Net interest margin,
adjusted: |
|
|
|
|
|
|
|
|
|
Net interest income (GAAP) |
|
$ |
79,045 |
|
|
$ |
79,037 |
|
|
$ |
246,328 |
|
|
$ |
240,145 |
|
| Less: PPP accelerated net
deferred fees and costs from sale (non-GAAP) |
|
— |
|
|
— |
|
|
(4,667 |
) |
|
— |
|
| Add: Accelerated interest
expense on redemption of sub-debt (non-GAAP) |
|
1,313 |
|
|
— |
|
|
1,313 |
|
|
— |
|
| Adjusted net interest income
(non-GAAP) |
|
$ |
80,358 |
|
|
$ |
79,037 |
|
|
$ |
242,974 |
|
|
$ |
240,145 |
|
| |
|
|
|
|
|
|
|
|
| Average interest earning
assets (GAAP) |
|
$ |
11,486,280 |
|
|
$ |
10,205,939 |
|
|
$ |
11,292,799 |
|
|
$ |
9,814,305 |
|
| |
|
|
|
|
|
|
|
|
| Net interest margin
(GAAP) |
|
2.73 |
% |
|
3.08 |
% |
|
2.91 |
% |
|
3.27 |
% |
| Adjusted Net interest margin
(non-GAAP) |
|
2.78 |
% |
|
3.08 |
% |
|
2.88 |
% |
|
3.27 |
% |
- Adjusted pre-provision net
revenue ("Adjusted PPNR"),5 a non-GAAP measure, was $52.3
million for the third quarter of 2021, compared to $60.0 million
the third quarter of 2020. As a percent of average assets, adjusted
PPNR for the third quarter of 2021 was 1.75%, down from 2.28% for
the third quarter of 2020. This decline in Adjusted PPNR to average
assets was a result of lower noninterest income while average
assets increased by 13%.Adjusted pre-provision net revenue was
$162.9 million for the nine months ended September 30, 2021,
compared to $166.8 million for the nine months ended September 30,
2020.
| ($ in
thousands) |
|
Three Months Ended |
|
Nine Months Ended |
| |
|
September 30, 2021 |
|
September 30, 2020 |
|
September 30, 2021 |
|
September 30, 2020 |
|
Adjusted net interest income (non-GAAP) |
|
$ |
80,358 |
|
|
|
$ |
79,037 |
|
|
|
$ |
242,974 |
|
|
|
$ |
240,145 |
|
|
| Noninterest income (GAAP) |
|
8,299 |
|
|
|
17,844 |
|
|
|
29,811 |
|
|
|
35,809 |
|
|
| Noninterest expense
(GAAP) |
|
(36,375 |
) |
|
|
(36,915 |
) |
|
|
(109,856 |
) |
|
|
(109,154 |
) |
|
| Adjusted PPNR (non-GAAP) |
|
$ |
52,282 |
|
|
|
$ |
59,966 |
|
|
|
$ |
162,929 |
|
|
|
$ |
166,800 |
|
|
| |
|
|
|
|
|
|
|
|
| Average Assets (GAAP) |
|
$ |
11,826,326 |
|
|
|
$ |
10,473,595 |
|
|
|
$ |
11,600,210 |
|
|
|
$ |
10,084,081 |
|
|
| Adjusted PPNR to Average
Assets (non-GAAP) |
|
1.75 |
|
% |
|
2.28 |
|
% |
|
1.88 |
|
% |
|
2.21 |
|
% |
- Provision for credit losses
on loans was a reversal of $8.2 million for the third
quarter of 2021, compared to a provision of $6.6 million for
the third quarter of 2020. The reversal was primarily driven by the
decline in loans, improvement in credit quality, and improvements
and adjustments in qualitative and environmental factors.Provision
for credit losses was a reversal of $14.4 million for the nine
months ended September 30, 2021, as compared to a provision of
$40.7 million for the nine months ended September 30,
2020.
- Provision for unfunded
commitments was $716 thousand for the third quarter
of 2021, compared to a reversal of $2.1 million for the third
quarter of 2020. The provision increased as unfunded commitments
were up $280 million from the prior quarter-end.Provision for
unfunded commitments was a reversal of $487 thousand for the nine
months ended September 30, 2021, as compared to a provision of
$974 thousand for the nine months ended September 30,
2020.
- Noninterest income
was $8.3 million for the third quarter of 2021, as compared to
$17.8 million for the third quarter 2020, a 53% decrease. The
decrease was primarily due to lower mortgage volume in the third
quarter of 2021 versus the historically high volume that occurred
in the third quarter of 2020. In comparison to the prior quarter,
residential mortgage volume was up slightly. Residential mortgage
loan locked commitments were $279.8 million for the third quarter
of 2021, $248.3 million for the second quarter of 2021, and $593.0
million for the third quarter of 2020.Noninterest income was $29.8
million for the nine months ended September 30, 2021, compared to
$35.8 million for the nine months ended September 30,
2020.
-
Noninterest expenses were $36.4 million for
the third quarter 2021 compared to $36.9 million for the third
quarter of 2020. The major changes between the third quarter of
2021 and the third quarter of 2020 were as follows:
- Salaries and
employee benefits were $22.1 million, up $2.8 million, as a result
of higher incentive bonus accruals based on the Company performance
and increases in share based compensation.
- Premises and
equipment expenses were $3.9 million, down $1.3 million. The third
quarter of 2020 included a $1.7 million adjustment which increased
rent expense in accordance with ASC 842 on leases.
- Legal,
accounting and professional fees were $2.0 million, down $1.1
million.
Noninterest expenses were $109.9
million for the nine months ended September 30, 2021, compared to
$109.2 million for the nine months ended September 30,
2020.
- Efficiency
ratio6 was 41.7% for the third quarter of
2021 compared to 38.1% for the third quarter of 2020. The
efficiency ratio increase was driven by lower mortgage fee income
in the third quarter of 2021 in comparison to the record mortgage
fee income reported in the third quarter of 2020.The efficiency
ratio was 39.8% for the nine months ended September 30, 2021,
compared to 39.6% for the nine months ended September 30,
2020.
- Effective income tax
rate for the third quarter ended 2021 and 2020 was
25.4%.Effective income tax rate for the nine months ended September
30, 2021 and 2020 was 25.4%.
Balance Sheet
- Total assets at
September 30, 2021 were $11.6 billion, up 4.2% from year-end
and up 14.6% from a year ago. The increase in assets from a year
ago was primarily driven by increases to cash and investments as a
result of large deposit inflows in the third quarter of 2021 and
the fourth quarter of 2020.
- Investment
portfolio had a balance of $1.8 billion at
September 30, 2021, up 55.2% from year-end and up 82.8% from a
year ago. We will continue to judiciously deploy accumulated excess
liquidity into the investment portfolio to achieve higher yields
over cash alternatives. Investments made during the third quarter
of 2021 were primarily 20-year, 2% agency mortgage backed
securities and treasury bonds.
- Total loans
(excluding loans held for sale) were $6.9 billion as of
September 30, 2021, a decrease of 11.7% from year-end and a
decrease of 13.1% from a year ago. A portion of the decrease was
driven by PPP loan forgiveness and PPP loan sales in the second
quarter of 2021. Excluding PPP loans, the loans were $6.8 billion
at September 30, 2021, a decrease of 7.1% from year-end and a
decrease of 8.6% from a year ago.7Over the past four quarters, with
the exception of the second quarter of 2021 (excluding PPP),
payoffs and paydowns have outpaced funded originations and
advances. This was driven by the successful completion of projects,
and, at the outset of the COVID-19 pandemic, our focus on serving
existing loan clients and maintaining credit quality. More
recently, in the third quarter of 2021, the decline in loans also
has been influenced by the competition to refinance at lower rates
with longer amortization periods, and excess liquidity at competing
banks as well as many companies and construction project
sponsors.
| ($ in
thousands) |
|
September 30, 2021 |
|
June 30, 2021 |
|
December 31, 2020 |
|
September 30, 2020 |
| |
|
|
|
|
|
|
|
|
|
Total loans, excluding loans held for sale (GAAP) |
|
$ |
6,850,863 |
|
|
|
$ |
7,259,558 |
|
|
|
$ |
7,760,212 |
|
|
|
$ |
7,880,255 |
|
|
| Less: PPP loans
(non-GAAP) |
|
(67,311 |
) |
|
|
(238,041 |
) |
|
|
(454,771 |
) |
|
|
(456,115 |
) |
|
| Total loans, excluding loans
held for sale and PPP loans (non-GAAP) |
|
$ |
6,783,552 |
|
|
|
$ |
7,021,517 |
|
|
|
$ |
7,305,441 |
|
|
|
$ |
7,424,140 |
|
|
On a linked quarter
basis, total loans (excluding loans held for sale and PPP loans) at
September 30, 2021, decreased by $238 million, or 3.4%, from the
prior quarter end as payoffs and paydowns increased and exceeded
originations and advances.
Also on a linked
quarter basis, unfunded commitments (including unfunded rate locks
on residential mortgages) were $2.37 billion as of
September 30, 2021, up $280 million from the prior
quarter-end. Excluding rate locks on unfunded residential
mortgages, unfunded commitments were $2.23 billion as of September
30, 2021, up $253 million from the prior quarter end, an increase
of 12.8%.
In regards to loan
yields, the yield on the loan portfolio has benefited from
prepayment penalties as loans have paid off and from accelerated
interest income from PPP loan forgiveness.
- The yield on the loan portfolio was 4.59% for the third quarter
of 2021 as compared to 4.46% for the third quarter of 2020.
Excluding PPP loans, the adjusted loan yield (a non-GAAP measure)
was 4.54% for the third quarter of 2021, down from 4.59% for the
third quarter of 2020.8
- The yield on the loan portfolio was 4.67% for the nine months
ended September 30, 2021 as compared to 4.71% for the nine months
ended September 30, 2020.
| |
Three Months Ended |
| ($ in
thousands) |
September 30, 2021 |
|
September 30, 2020 |
| |
Average Balance |
|
Interest |
|
AverageYield/Rate |
|
Average Balance |
|
Interest |
|
AverageYield/Rate |
| Loan Yields,
Adjusted |
|
|
|
|
|
|
|
|
|
|
|
|
Loan yield (GAAP) |
$ |
7,055,621 |
|
|
|
$ |
81,540 |
|
|
|
4.59 |
% |
|
$ |
7,910,260 |
|
|
|
$ |
88,730 |
|
|
|
4.46 |
% |
| Less: PPP interest income
(non-GAAP)9 |
(140,676 |
) |
|
|
(2,371 |
) |
|
|
6.69 |
% |
|
(457,107 |
) |
|
|
(2,765 |
) |
|
|
2.41 |
% |
| Adjusted loan yield
(non-GAAP) |
$ |
6,914,945 |
|
|
|
$ |
79,169 |
|
|
|
4.54 |
% |
|
$ |
7,453,153 |
|
|
|
$ |
85,965 |
|
|
|
4.59 |
% |
| |
Nine Months Ended |
| ($ in
thousands) |
September 30, 2021 |
|
September 30, 2020 |
| |
Average Balance |
|
Interest |
|
AverageYield/Rate |
|
Average Balance |
|
Interest |
|
AverageYield/Rate |
| Loan Yields,
Adjusted |
|
|
|
|
|
|
|
|
|
|
|
|
Loan yield (GAAP) |
$ |
7,385,733 |
|
|
|
$ |
258,188 |
|
|
|
4.67 |
% |
|
$ |
7,859,188 |
|
|
|
$ |
277,374 |
|
|
|
4.71 |
% |
| Less: PPP interest income
(non-GAAP)9 |
(356,140 |
) |
|
|
(16,574 |
) |
|
|
6.22 |
% |
|
(262,113 |
) |
|
|
(5,145 |
) |
|
|
2.62 |
% |
| Adjusted loan yield
(non-GAAP) |
$ |
7,029,593 |
|
|
|
$ |
241,614 |
|
|
|
4.60 |
% |
|
$ |
7,597,075 |
|
|
|
$ |
272,229 |
|
|
|
4.79 |
% |
- Allowance for credit
losses was 1.21% of total loans at September 30, 2021,
compared to 1.41% at year-end and 1.40% a year ago. Adjusted to
exclude PPP loans, which are fully government guaranteed, the
allowance for credit losses was 1.22%, compared to 1.50% at
year-end and 1.48% a year ago.10 The reduction in the allowance for
credit losses as a percent of total loans for the nine months ended
September 30, 2021 is due to a provision reversal of $14.4 million
and net charge-offs of $12.2 million, which had a greater impact on
the ratio than the decline in loans.Net charge-offs for the third
quarter of 2021 were $1.3 million as compared to $5.2 million for
third quarter of 2020. On an annualized basis, this was 0.08% of
average loans (excluding loans held for sale) for the third quarter
of 2021, as compared to 0.26% for the third quarter of 2020.
| ($ in
thousands) |
|
September 30, 2021 |
|
December 31, 2020 |
|
September 30, 2020 |
| Allowance for credit
losses, adjusted |
|
|
|
|
|
|
|
Allowance for credit losses (GAAP) |
|
$ |
82,906 |
|
|
|
$ |
109,579 |
|
|
|
$ |
110,215 |
|
|
| |
|
|
|
|
|
|
| Total loans, excluding loans
held for sale (GAAP) |
|
$ |
6,850,863 |
|
|
|
$ |
7,760,212 |
|
|
|
$ |
7,880,255 |
|
|
| Less: PPP loans
(non-GAAP) |
|
(67,311 |
) |
|
|
(454,771 |
) |
|
|
(456,115 |
) |
|
| Total loans excluding PPP
loans (non-GAAP) |
|
$ |
6,783,552 |
|
|
|
7,305,441 |
|
|
|
7,424,140 |
|
|
| |
|
|
|
|
|
|
| Allowance for credit losses to
total loans (GAAP) |
|
1.21 |
|
% |
|
1.41 |
|
% |
|
1.40 |
|
% |
| Allowance for credit losses to
total loans excluding PPP loans (non-GAAP) |
|
1.22 |
|
% |
|
1.50 |
|
% |
|
1.48 |
|
% |
- Total deposits were $9.7 billion at
September 30, 2021, up 5.2% from the year-end, and up 18.2%
from a year ago. With the exception of the second quarter of 2021,
deposits have continued to flow into the Bank driving up the size
of the balance sheet. At the end of the third quarter of 2021,
deposits were up $649 million, over the prior quarter end.While
deposits are up significantly, the deposit mix remains favorable.
Average noninterest bearing deposits to average total deposits was
33.9% for the third quarter of 2021, as compared to 31.7% for the
third quarter of 2020.In regards to deposit costs, in the third
quarter of 2021, the Bank continued to see higher priced CDs
runoff.
- CDs with a total
balance of $115 million and a weighted average rate of 0.44%
matured in the third quarter of 2021. These CDs had a weighted
average term of 12 months at issuance.
- The cost of
funds was 0.35% in the third quarter of 2021, as compared to 0.58%
in the third quarter of 2020. The cost of funds for the third
quarter of 2021 included the $1.3 million in accelerated interest
expenses from the redemption of subordinated debt.
- Total
shareholders’ equity was $1.3 billion at
September 30, 2021, up 7.3% from year-end, and up 8.9% from a
year ago. For the nine months ended September 30, 2021, increases
in shareholders' equity from earnings were partially offset by
common dividends declared of $31.9 million and stock repurchases of
$677 thousand.
- Book value per
share was $41.68, up 6.7% from year-end and up 9.8% from a year
ago.
- Tangible book value per share was
$38.3911, up 7.4% from year-end and up 10.6% from
a year ago.
- Capital ratios for
the Company remain strong and substantially in excess of regulatory
minimum requirements. Regulatory ratios based on risk based capital
ratios continue to remain high or trend up, driven by strong
earnings and relatively modest change in risk weighted assets.
| |
|
For the Company |
| |
|
September 30, 2021 |
|
December 31, 2020 |
|
September 30,2020 |
|
Well Capitalized Minimum |
| Regulatory
Ratios |
|
|
|
|
|
|
|
|
|
Total Capital (to risk weighted assets) |
|
16.59 |
% |
|
17.04 |
% |
|
16.72 |
% |
|
10.00 |
% |
| Tier 1 Capital (to risk
weighted assets) |
|
15.33 |
% |
|
13.49 |
% |
|
13.19 |
% |
|
8.00 |
% |
| Common Equity Tier 1 (to risk
weighted assets) |
|
15.33 |
% |
|
13.49 |
% |
|
13.19 |
% |
|
6.50 |
% |
| Tier 1 Capital (to average
assets) |
|
10.58 |
% |
|
10.31 |
% |
|
10.82 |
% |
|
5.00 |
% |
| |
|
|
|
|
|
|
|
|
| Common Capital
Ratios |
|
|
|
|
|
|
|
|
| Common Equity Ratio |
|
11.49 |
% |
|
11.16 |
% |
|
12.11 |
% |
|
— |
% |
| Tangible Common Equity
Ratio |
|
10.68 |
% |
|
10.31 |
% |
|
11.18 |
% |
|
— |
% |
Additional Commentary
- Subordinated debt:
On August 2, 2021, the Company redeemed $150 million of
subordinated debt issued in 2016. In the second quarter of 2021,
the rate on the debt was 5.00%, which translates into an annualized
pre-tax cost savings of $7.5 million when redeemed. This redemption
accelerated $1.3 million in deferred costs which were included in
interest expense the third quarter of 2021.
- Cost savings
initiatives: The Bank continues to pursue its "branch
light" strategy to improve efficiency while putting more emphasis
on relationships and technology. After a full analysis of our
branch structure, the Bank closed its Dulles Branch in September
2021 as its lease expired. The annual cost savings in rent, common
area maintenance and taxes is about $187 thousand, and there was no
write-off of leasehold improvements as all improvements had been
fully amortized upon the expiration of the lease.All of the
employees from the Dulles Branch have filled, or will be filling,
vacant positions within the Company, reducing the need to hire
additional personnel.
- Paycheck protection
program: At September 30, 2021, the Bank had an
outstanding balance of PPP loans of $67.3 million. These loans were
mostly originated in mid-2020, and we expect these loans to
complete the forgiveness process over the next two quarters.
- COVID-19 and watch-rated
loans: Beginning in the third quarter of 2020, all loans
that received a third COVID-19 deferral or payment modification
were downgraded to a watch-rating if not already rated as such.
This was done to raise the visibility of these loans within the
loan portfolio. After these COVID-19 deferred or modified loans
demonstrate nine months of payments and sustained performance, they
may be considered for removal as a watch-rated loan. Watch-rated
loans at September 30, 2021 were $509 million, of which $415
million were loans that received a COVID-19 deferral or payment
modification (includes loans that were upgraded to
watch-rated).
- Nonperforming loans and assets: Both
nonperforming loans and assets decreased on a linked quarter basis
and year over year.
- Nonperforming
loans were $31.2 million or 0.46% of total loans at
September 30, 2021, down from $49.5 million or 0.68% at the
prior quarter end, and down from $58.1 million or 0.74% of total
loans a year ago.
- Nonperforming
assets were $36.4 million or 0.31% of total assets at
September 30, 2021, down from $54.5 million or 0.50% at the
prior quarter end, and down from $63.0 million or 0.62% of total
assets a year ago. At September 30, 2021, other real estate owned
was $5.1 million.
- Dividend: On
September 29, 2021, the Board of Directors declared a quarterly
cash dividend of $0.40 per common share payable on November 1, 2021
to shareholders of record on October 21, 2021. This represents a
$0.05 per share increase over the prior quarterly dividend of $0.35
per share, and a $0.18 per share increase from the $0.22 per share
dividend declared in the third quarter of 2020.
- Stock repurchase
plan: In December 2020, the Board of Directors approved a
new stock repurchase plan of up to 1,588,848 shares, or
approximately 5% of shares outstanding, which commenced January 1,
2021. In the third quarter of 2021, the Company completed
repurchases of 11,609 shares for $614,609 at an average cost of
$52.94 per share under the stock repurchase plan.For the year, and
since the start of the 2021 stock repurchase plan, the Company has
repurchased a total of 13,075 shares for $676,901 at an average
cost of $51.77 per share.
- Legal update: As
previously disclosed in the Company’s Annual Report on Form 10-K
for the year ended December 31, 2020, on January 25, 2021, the
Company entered into a settlement agreement with respect to a
previously disclosed shareholder demand letter, covering
substantially the same subject matters as the disclosed civil
securities class action litigation pending in the SDNY. The letter
demanded that the Board undertake an investigation into the Board’s
and management’s alleged violations of law and alleged breaches of
fiduciary duties, and take appropriate actions following such
investigation. On October 4, 2021, the DC Superior Court approved
the settlement and dismissed the derivative action complaint. The
Company has already begun executing on the terms of the settlement,
including the payment of agreed-upon fees and expenses (which were
fully covered by the Company’s D&O insurance policy).In
connection with the previously disclosed investigation by the SEC,
the Company’s discussions with the Staff have progressed, and the
Company continues to engage with the Staff, including senior Staff
members, about a potential resolution or settlement of the Staff’s
investigation with respect to the Company. The Company is hopeful
that these discussions will lead to a timely resolution of the
investigation as it relates to the Company and any current
employees and directors on a mutually agreeable basis, but there
can be no assurance that will be the case. There also can be no
assurance that this would result in resolution of any charges
against former employees or directors, given the Staff’s ongoing
review of the factual record. Any agreements reached by the Company
with the Staff would be subject to approval by the Commission, and
there can be no assurance that it would be approved. We are unable
to predict the outcome of the investigation or these discussions or
whether any potential resolution would have a material impact on
the Company.The Company is also continuing discussions with the
Staff of the Federal Reserve Board about a potential resolution or
settlement of its investigation with respect to the Company. With
respect to the other investigations described above, we are unable
to predict their duration, scope or outcome.As previously
disclosed, the Company maintains director and officer insurance
policies (“D&O Insurance Policies”) that provide coverage for
the legal defense costs related to certain of the above-described
investigations and litigations. When claims are covered by D&O
Insurance Policies, the Company records a corresponding receivable
against the incurred legal defense cost expense subject to coverage
under the D&O Insurance Policies and then eliminates the
receivable and expense when the claim is paid. Subject to any new
developments to the above-described investigations and litigations
that may occur over the next few months, the Company currently
believes there is a possibility that the applicable D&O
Insurance Policies may be exhausted as early as the fourth quarter
of this year. Once the D&O Insurance Policies are exhausted,
the Company will be responsible for paying the defense costs
associated with the above-described investigations and litigations
for itself and on behalf of any current and former Officers and
Directors entitled to indemnification from the Company. Since the
commencement of the above-described matters in 2018 through
September 30, 2021, the Company’s D&O Insurance carriers have
advanced defense cost claims to the Company and its current and
former directors and officers in an aggregate of approximately $10
million, excluding the cost of settlements. Because this aggregate
amount does not reflect total expenses incurred and includes costs
related to certain proceedings that have since settled, this number
is not intended to be and should not be used as an estimate of
defense costs going forward. The Company cannot predict with any
certainty the amount of defense costs that the Company may incur in
the future in connection with currently ongoing and any potential
future investigations and legal proceedings, as they are dependent
on various factors, many of which are outside of the Company’s
control.
Additional financial
information: The financial information that follows
provides more detail on the Company’s financial performance for the
three months ended September 30, 2021 as compared to the three
months ended September 30, 2020, as well as eight quarters of
trend data. Persons wishing additional information should refer to
the Company’s annual report on Form 10-K for the year ended
December 31, 2020, quarterly reports on Form 10-Q for the quarters
ended March 31, 2021 and June 30, 2021 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 eighteen 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, and is committed
to a culture of respect, diversity, equity and inclusion in both
its workplace and the communities in which it operates.
Conference call: Eagle Bancorp
will host a conference call to discuss its third quarter 2021
financial results on Thursday, October 21, 2021 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: 5668029, 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 4, 2021.
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, asset and loan growth and broader
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, 2020, the Company's Quarterly Report on Form 10-Q for the
quarter ended March 31, 2021 and June 30, 2021, the Company's
upcoming Quarterly Report on Form 10-Q for the quarter ended
September 30, 2021, 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, and nothing
contained herein is meant to or should be considered and treated as
earnings guidance of future quarters’ performance projections. 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, |
| |
2021 |
|
2020 |
|
2021 |
|
2020 |
| Income
Statements: |
|
|
|
|
|
|
|
|
Total interest income |
$ |
89,152 |
|
|
|
$ |
93,833 |
|
|
|
$ |
278,266 |
|
|
|
$ |
295,306 |
|
| Total interest expense |
10,107 |
|
|
|
14,795 |
|
|
|
31,938 |
|
|
|
55,161 |
|
| Net interest income |
79,045 |
|
|
|
79,038 |
|
|
|
246,328 |
|
|
|
240,145 |
|
| Provision for credit
losses |
(8,203 |
) |
|
|
6,607 |
|
|
|
(14,409 |
) |
|
|
40,654 |
|
| Provision for Unfunded
Commitments |
716 |
|
|
|
(2,078 |
) |
|
|
(487 |
) |
|
|
974 |
|
| Net interest income after
provision for credit losses |
86,532 |
|
|
|
74,509 |
|
|
|
261,224 |
|
|
|
198,517 |
|
| Noninterest income (before
investment gain) |
6,780 |
|
|
|
17,729 |
|
|
|
27,753 |
|
|
|
34,159 |
|
| Gain (loss) on sale of
investment securities |
1,519 |
|
|
|
115 |
|
|
|
2,058 |
|
|
|
1,650 |
|
| Total noninterest income |
8,299 |
|
|
|
17,844 |
|
|
|
29,811 |
|
|
|
35,809 |
|
| Total noninterest expense |
36,375 |
|
|
|
36,915 |
|
|
|
109,856 |
|
|
|
109,154 |
|
| Income before income tax
expense |
58,456 |
|
|
|
55,438 |
|
|
|
181,179 |
|
|
|
125,172 |
|
| Income tax expense |
14,847 |
|
|
|
14,092 |
|
|
|
46,108 |
|
|
|
31,847 |
|
| Net income |
$ |
43,609 |
|
|
|
$ |
41,346 |
|
|
|
$ |
135,071 |
|
|
|
$ |
93,325 |
|
| Per Share
Data: |
|
|
|
|
|
|
|
| Earnings per weighted average
common share, basic |
$ |
1.36 |
|
|
|
$ |
1.28 |
|
|
|
$ |
4.23 |
|
|
|
$ |
2.88 |
|
| Earnings per weighted average
common share, diluted |
$ |
1.36 |
|
|
|
$ |
1.28 |
|
|
|
$ |
4.22 |
|
|
|
$ |
2.88 |
|
| Weighted average common shares
outstanding, basic |
31,959,357 |
|
|
|
32,229,322 |
|
|
|
31,930,939 |
|
|
|
32,433,963 |
|
| Weighted average common shares
outstanding, diluted |
32,030,527 |
|
|
|
32,250,885 |
|
|
|
31,993,337 |
|
|
|
32,458,100 |
|
| Actual shares outstanding at
period end |
31,947,458 |
|
|
|
32,228,636 |
|
|
|
31,947,458 |
|
|
|
32,228,636 |
|
| Book value per common share at
period end |
$ |
41.68 |
|
|
|
$ |
37.96 |
|
|
|
$ |
41.68 |
|
|
|
$ |
37.96 |
|
| Tangible book value per common
share at period end (1) |
$ |
38.39 |
|
|
|
$ |
34.70 |
|
|
|
$ |
38.39 |
|
|
|
$ |
34.70 |
|
| Dividend per common share |
$ |
0.40 |
|
|
|
$ |
0.22 |
|
|
|
$ |
1.00 |
|
|
|
$ |
0.66 |
|
| Performance Ratios
(annualized): |
|
|
|
|
|
|
|
| Return on average assets |
1.46 |
|
% |
|
1.57 |
|
% |
|
1.56 |
|
% |
|
1.24 |
% |
| Return on average common
equity |
13.00 |
|
% |
|
14.46 |
|
% |
|
13.98 |
|
% |
|
10.44 |
% |
| Return on average tangible
common equity |
14.11 |
|
% |
|
15.93 |
|
% |
|
15.21 |
|
% |
|
11.45 |
% |
| Net interest margin |
2.73 |
|
% |
|
3.08 |
|
% |
|
2.91 |
|
% |
|
3.27 |
% |
| Efficiency ratio
(2) |
41.65 |
|
% |
|
38.10 |
|
% |
|
39.78 |
|
% |
|
39.56 |
% |
| Other
Ratios: |
|
|
|
|
|
|
|
| Allowance for credit losses to
total loans (3) |
1.21 |
|
% |
|
1.40 |
|
% |
|
1.21 |
|
% |
|
1.40 |
% |
| Allowance for credit losses to
total nonperforming loans |
265.32 |
|
% |
|
189.83 |
|
% |
|
265.32 |
|
% |
|
189.83 |
% |
| Nonperforming loans to total
loans (3) |
0.46 |
|
% |
|
0.74 |
|
% |
|
0.46 |
|
% |
|
0.74 |
% |
| Nonperforming assets to total
assets |
0.31 |
|
% |
|
0.62 |
|
% |
|
0.31 |
|
% |
|
0.62 |
% |
| Net charge-offs (annualized)
to average loans (3) |
0.08 |
|
% |
|
0.26 |
|
% |
|
0.22 |
|
% |
|
0.25 |
% |
| Common equity to total
assets |
11.49 |
|
% |
|
12.11 |
|
% |
|
11.49 |
|
% |
|
12.11 |
% |
| Tier 1 capital (to average
assets) |
10.58 |
|
% |
|
10.82 |
|
% |
|
10.58 |
|
% |
|
10.82 |
% |
| Total capital (to risk
weighted assets) |
16.59 |
|
% |
|
16.72 |
|
% |
|
16.59 |
|
% |
|
16.72 |
% |
| Common equity tier 1 capital
(to risk weighted assets) |
15.33 |
|
% |
|
13.19 |
|
% |
|
15.33 |
|
% |
|
13.19 |
% |
| Tangible common equity ratio
(1) |
10.68 |
|
% |
|
11.18 |
|
% |
|
10.68 |
|
% |
|
11.18 |
% |
|
(continued) |
|
|
|
|
|
|
|
| |
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
| |
2021 |
|
2020 |
|
2021 |
|
2020 |
| Loan Balances - Period
End (in thousands): |
|
|
|
|
|
|
|
| Commercial and Industrial |
$ |
1,289,215 |
|
|
|
$ |
1,524,613 |
|
|
|
$ |
1,289,215 |
|
|
|
$ |
1,524,613 |
|
| PPP loans |
$ |
67,311 |
|
|
|
$ |
456,115 |
|
|
|
$ |
67,311 |
|
|
|
$ |
456,115 |
|
| Commercial real estate -
income producing |
$ |
3,337,303 |
|
|
|
$ |
3,724,839 |
|
|
|
$ |
3,337,303 |
|
|
|
$ |
3,724,839 |
|
| Commercial real estate - owner
occupied |
$ |
977,617 |
|
|
|
$ |
997,645 |
|
|
|
$ |
977,617 |
|
|
|
$ |
997,645 |
|
| 1-4 Family mortgage |
$ |
76,259 |
|
|
|
$ |
82,385 |
|
|
|
$ |
76,259 |
|
|
|
$ |
82,385 |
|
| Construction - commercial and
residential |
$ |
824,133 |
|
|
|
$ |
879,144 |
|
|
|
$ |
824,133 |
|
|
|
$ |
879,144 |
|
| Construction - C&I (owner
occupied) |
$ |
222,366 |
|
|
|
$ |
140,357 |
|
|
|
$ |
222,366 |
|
|
|
$ |
140,357 |
|
| Home equity |
$ |
55,527 |
|
|
|
$ |
72,648 |
|
|
|
$ |
55,527 |
|
|
|
$ |
72,648 |
|
| Other consumer |
$ |
1,132 |
|
|
|
$ |
2,509 |
|
|
|
$ |
1,132 |
|
|
|
$ |
2,509 |
|
| Average Balances (in
thousands): |
|
|
|
|
|
|
|
| Total assets |
$ |
11,826,326 |
|
|
|
$ |
10,473,595 |
|
|
|
$ |
11,600,210 |
|
|
|
$ |
10,084,081 |
|
| Total earning assets |
$ |
11,486,280 |
|
|
|
$ |
10,205,939 |
|
|
|
$ |
11,292,799 |
|
|
|
$ |
9,814,305 |
|
| Total loans |
$ |
7,055,621 |
|
|
|
$ |
7,910,260 |
|
|
|
$ |
7,385,733 |
|
|
|
$ |
7,859,188 |
|
| Total deposits |
$ |
9,948,114 |
|
|
|
$ |
8,591,912 |
|
|
|
$ |
9,694,694 |
|
|
|
$ |
8,258,352 |
|
| Total borrowings |
$ |
448,697 |
|
|
|
$ |
596,472 |
|
|
|
$ |
519,333 |
|
|
|
$ |
560,427 |
|
| Total shareholders’
equity |
$ |
1,331,022 |
|
|
|
$ |
1,211,145 |
|
|
|
$ |
1,292,223 |
|
|
|
$ |
1,193,988 |
|
(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 reconciliation of financial measures defined
by GAAP with non-GAAP financial measures. (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, 2021 |
|
September 30, 2021 |
|
December 31, 2020 |
|
September 30, 2020 |
|
September 30, 2020 |
| Common shareholders'
equity |
|
|
$ |
1,331,697 |
|
|
|
$ |
1,240,892 |
|
|
|
|
|
$ |
1,223,402 |
|
|
| Less: Intangible assets |
|
|
(105,103 |
) |
|
|
(105,114 |
) |
|
|
|
|
(105,165 |
) |
|
| Tangible common
equity |
|
|
$ |
1,226,594 |
|
|
|
$ |
1,135,778 |
|
|
|
|
|
$ |
1,118,237 |
|
|
| Book value per common
share |
|
|
$ |
41.68 |
|
|
|
$ |
39.05 |
|
|
|
|
|
$ |
37.96 |
|
|
| Less: Intangible book value
per common share |
|
|
(3.29 |
) |
|
|
(3.31 |
) |
|
|
|
|
(3.26 |
) |
|
| Tangible book value
per common share |
|
|
$ |
38.39 |
|
|
|
$ |
35.74 |
|
|
|
|
|
$ |
34.70 |
|
|
| Total assets |
|
|
$ |
11,585,317 |
|
|
|
$ |
11,117,802 |
|
|
|
|
|
$ |
10,106,294 |
|
|
| Less: Intangible assets |
|
|
(105,103 |
) |
|
|
(105,114 |
) |
|
|
|
|
(105,165 |
) |
|
| Tangible
assets |
|
|
$ |
11,480,214 |
|
|
|
$ |
11,012,688 |
|
|
|
|
|
$ |
10,001,129 |
|
|
| Tangible common equity
ratio |
|
|
10.68 |
|
% |
|
10.31 |
|
% |
|
|
|
11.18 |
|
% |
|
Average common shareholders' equity |
$ |
1,331,022 |
|
|
|
$ |
1,292,223 |
|
|
|
$ |
1,204,341 |
|
|
|
$ |
1,137,826 |
|
|
|
$ |
1,193,988 |
|
|
| Less: Average intangible
assets |
(105,126 |
) |
|
|
(105,151 |
) |
|
|
(104,903 |
) |
|
|
(105,106 |
) |
|
|
(104,826 |
) |
|
| Average tangible
common equity |
$ |
1,225,896 |
|
|
|
$ |
1,187,072 |
|
|
|
$ |
1,099,438 |
|
|
|
$ |
1,032,720 |
|
|
|
$ |
1,089,162 |
|
|
| Net Income Available to Common
Shareholders |
$ |
43,609 |
|
|
|
$ |
135,071 |
|
|
|
$ |
132,217 |
|
|
|
$ |
41,346 |
|
|
|
$ |
93,325 |
|
|
| Annualized Return on
Average Tangible Common Equity |
14.11 |
|
% |
|
15.21 |
|
% |
|
12.03 |
|
% |
|
15.93 |
|
% |
|
11.45 |
|
% |
|
Eagle Bancorp, Inc. |
|
Consolidated Balance Sheets (Unaudited) |
|
(dollars in thousands, except per share data) |
| Assets |
September 30, 2021 |
|
December 31, 2020 |
|
September 30, 2020 |
|
Cash and due from banks |
$ |
8,806 |
|
|
|
$ |
8,435 |
|
|
|
$ |
7,559 |
|
|
| Federal funds sold |
38,934 |
|
|
|
28,200 |
|
|
|
30,830 |
|
|
| Interest bearing deposits with
banks and other short-term investments |
2,452,744 |
|
|
|
1,752,420 |
|
|
|
818,719 |
|
|
| Investment securities
available for sale (amortized cost of $1,789,416, $1,129,057, and
$956,803, and allowance for credit losses of $256, $167 and $156 as
of September 30, 2021, December 31, 2020 and September 30, 2020,
respectively). |
1,786,659 |
|
|
|
1,151,083 |
|
|
|
977,570 |
|
|
| Federal Reserve and Federal
Home Loan Bank stock |
34,093 |
|
|
|
40,104 |
|
|
|
40,061 |
|
|
| Loans held for sale |
53,413 |
|
|
|
88,205 |
|
|
|
79,084 |
|
|
| Loans |
6,850,863 |
|
|
|
7,760,212 |
|
|
|
7,880,255 |
|
|
| Less allowance for credit
losses |
(82,906 |
) |
|
|
(109,579 |
) |
|
|
(110,215 |
) |
|
| Loans, net |
6,767,957 |
|
|
|
7,650,633 |
|
|
|
7,770,040 |
|
|
| Premises and equipment,
net |
15,293 |
|
|
|
13,553 |
|
|
|
12,204 |
|
|
| Operating lease right-of-use
assets |
30,080 |
|
|
|
25,237 |
|
|
|
27,180 |
|
|
| Deferred income taxes |
44,733 |
|
|
|
38,571 |
|
|
|
36,363 |
|
|
| Bank owned life insurance |
108,158 |
|
|
|
76,729 |
|
|
|
76,326 |
|
|
| Intangible assets, net |
105,103 |
|
|
|
105,114 |
|
|
|
105,165 |
|
|
| Other real estate owned |
5,135 |
|
|
|
4,987 |
|
|
|
4,987 |
|
|
| Other assets |
134,209 |
|
|
|
134,531 |
|
|
|
120,206 |
|
|
| Total
Assets |
$ |
11,585,317 |
|
|
|
$ |
11,117,802 |
|
|
|
$ |
10,106,294 |
|
|
| |
|
|
|
|
|
| Liabilities and
Shareholders' Equity |
|
|
|
|
|
| Deposits: |
|
|
|
|
|
| Noninterest bearing
demand |
$ |
2,836,418 |
|
|
|
$ |
2,809,334 |
|
|
|
$ |
2,384,108 |
|
|
| Interest bearing
transaction |
812,410 |
|
|
|
756,923 |
|
|
|
823,607 |
|
|
| Savings and money market |
5,268,157 |
|
|
|
4,645,186 |
|
|
|
3,956,553 |
|
|
| Time, $100,000 or more |
347,937 |
|
|
|
546,173 |
|
|
|
553,949 |
|
|
| Other time |
403,566 |
|
|
|
431,587 |
|
|
|
460,568 |
|
|
| Total deposits |
9,668,488 |
|
|
|
9,189,203 |
|
|
|
8,178,785 |
|
|
| Customer repurchase
agreements |
29,401 |
|
|
|
26,726 |
|
|
|
24,293 |
|
|
| Other short-term
borrowings |
300,000 |
|
|
|
300,000 |
|
|
|
300,000 |
|
|
| Long-term borrowings |
69,639 |
|
|
|
268,077 |
|
|
|
267,980 |
|
|
| Operating lease
liabilities |
34,345 |
|
|
|
28,022 |
|
|
|
30,457 |
|
|
| Reserve for unfunded
commitments |
5,011 |
|
|
|
5,498 |
|
|
|
5,092 |
|
|
| Other liabilities |
146,736 |
|
|
|
59,384 |
|
|
|
76,285 |
|
|
| Total
liabilities |
10,253,620 |
|
|
|
9,876,910 |
|
|
|
8,882,892 |
|
|
| Shareholders'
Equity |
|
|
|
|
|
| Common stock, par value $.01
per share; shares authorized 100,000,000, shares issued and
outstanding 31,947,458, 31,779,663, and 32,228,636
respectively |
316 |
|
|
|
315 |
|
|
|
320 |
|
|
| Additional paid in
capital |
432,479 |
|
|
|
427,016 |
|
|
|
442,592 |
|
|
| Retained earnings |
901,218 |
|
|
|
798,061 |
|
|
|
766,219 |
|
|
| Accumulated other
comprehensive income |
(2,316 |
) |
|
|
15,500 |
|
|
|
14,271 |
|
|
| Total Shareholders'
Equity |
1,331,697 |
|
|
|
1,240,892 |
|
|
|
1,223,402 |
|
|
| Total Liabilities and
Shareholders' Equity |
$ |
11,585,317 |
|
|
|
$ |
11,117,802 |
|
|
|
$ |
10,106,294 |
|
|
|
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 |
2021 |
|
2020 |
|
2021 |
|
2020 |
|
Interest and fees on loans |
$ |
82,182 |
|
|
|
$ |
89,296 |
|
|
|
$ |
260,124 |
|
|
|
$ |
278,979 |
|
| Interest and dividends on
investment securities |
5,877 |
|
|
|
4,141 |
|
|
|
15,878 |
|
|
|
14,139 |
|
| Interest on balances with
other banks and short-term investments |
1,083 |
|
|
|
384 |
|
|
|
2,239 |
|
|
|
2,104 |
|
| Interest on federal funds
sold |
10 |
|
|
|
12 |
|
|
|
25 |
|
|
|
84 |
|
| Total interest income |
89,152 |
|
|
|
93,833 |
|
|
|
278,266 |
|
|
|
295,306 |
|
| Interest
Expense |
|
|
|
|
|
|
|
| Interest on deposits |
6,590 |
|
|
|
10,995 |
|
|
|
21,288 |
|
|
|
44,055 |
|
| Interest on customer
repurchase agreements |
14 |
|
|
|
84 |
|
|
|
34 |
|
|
|
257 |
|
| Interest on other short-term
borrowings |
506 |
|
|
|
505 |
|
|
|
1,502 |
|
|
|
1,363 |
|
| Interest on long-term
borrowings |
2,997 |
|
|
|
3,211 |
|
|
|
9,114 |
|
|
|
9,486 |
|
| Total interest expense |
10,107 |
|
|
|
14,795 |
|
|
|
31,938 |
|
|
|
55,161 |
|
| Net Interest
Income |
79,045 |
|
|
|
79,038 |
|
|
|
246,328 |
|
|
|
240,145 |
|
| Provision for Credit
Losses |
(8,203 |
) |
|
|
6,607 |
|
|
|
(14,409 |
) |
|
|
40,654 |
|
| Provision for Unfunded
Commitments |
716 |
|
|
|
(2,078 |
) |
|
|
(487 |
) |
|
|
974 |
|
| Net Interest Income
After Provision For Credit Losses |
86,532 |
|
|
|
74,509 |
|
|
|
261,224 |
|
|
|
198,517 |
|
| Noninterest
Income |
|
|
|
|
|
|
|
| Service charges on
deposits |
1,204 |
|
|
|
1,061 |
|
|
|
3,303 |
|
|
|
3,428 |
|
| Gain on sale of loans |
3,332 |
|
|
|
12,226 |
|
|
|
11,988 |
|
|
|
16,249 |
|
| Gain on sale of investment
securities |
1,519 |
|
|
|
115 |
|
|
|
2,058 |
|
|
|
1,650 |
|
| Increase in the cash surrender
value of bank owned life insurance |
642 |
|
|
|
413 |
|
|
|
1,429 |
|
|
|
1,655 |
|
| Other income |
1,602 |
|
|
|
4,029 |
|
|
|
11,033 |
|
|
|
12,827 |
|
| Total noninterest income |
8,299 |
|
|
|
17,844 |
|
|
|
29,811 |
|
|
|
35,809 |
|
| Noninterest
Expense |
|
|
|
|
|
|
|
| Salaries and employee
benefits |
22,145 |
|
|
|
19,388 |
|
|
|
63,790 |
|
|
|
54,289 |
|
| Premises and equipment
expenses |
3,859 |
|
|
|
5,125 |
|
|
|
11,121 |
|
|
|
12,414 |
|
| Marketing and advertising |
1,013 |
|
|
|
928 |
|
|
|
2,879 |
|
|
|
3,117 |
|
| Data processing |
2,886 |
|
|
|
2,700 |
|
|
|
8,451 |
|
|
|
7,955 |
|
| Legal, accounting and
professional fees |
2,021 |
|
|
|
3,097 |
|
|
|
8,523 |
|
|
|
14,064 |
|
| FDIC insurance |
1,549 |
|
|
|
2,152 |
|
|
|
5,586 |
|
|
|
5,556 |
|
| Other expenses |
2,902 |
|
|
|
3,525 |
|
|
|
9,506 |
|
|
|
11,759 |
|
| Total noninterest expense |
36,375 |
|
|
|
36,915 |
|
|
|
109,856 |
|
|
|
109,154 |
|
| Income Before Income
Tax Expense |
58,456 |
|
|
|
55,438 |
|
|
|
181,179 |
|
|
|
125,172 |
|
| Income Tax
Expense |
14,847 |
|
|
|
14,092 |
|
|
|
46,108 |
|
|
|
31,847 |
|
| Net
Income |
$ |
43,609 |
|
|
|
$ |
41,346 |
|
|
|
$ |
135,071 |
|
|
|
$ |
93,325 |
|
| Earnings Per Common
Share |
|
|
|
|
|
|
|
| Basic |
$ |
1.36 |
|
|
|
$ |
1.28 |
|
|
|
$ |
4.23 |
|
|
|
$ |
2.88 |
|
| Diluted |
$ |
1.36 |
|
|
|
$ |
1.28 |
|
|
|
$ |
4.22 |
|
|
|
$ |
2.88 |
|
|
Eagle Bancorp, Inc. |
|
Consolidated Average Balances, Interest Yields And Rates
(Unaudited) |
|
(dollars in thousands) |
| |
Three Months Ended |
| |
September 30, 2021 |
|
September 30, 2020 |
| |
Average Balance |
|
Interest |
|
AverageYield/Rate |
|
Average Balance |
|
Interest |
|
AverageYield/Rate |
| ASSETS |
|
|
|
|
|
|
|
|
|
|
|
| Interest earning assets: |
|
|
|
|
|
|
|
|
|
|
|
|
Interest bearing deposits with other banks and other short-term
investments |
$ |
2,668,265 |
|
|
$ |
1,083 |
|
|
0.16 |
% |
|
$ |
1,275,932 |
|
|
$ |
384 |
|
|
0.12 |
% |
| Loans held for sale
(1) |
56,866 |
|
|
642 |
|
|
4.52 |
% |
|
79,354 |
|
|
567 |
|
|
2.86 |
% |
| Loans (1)
(2) |
7,055,621 |
|
|
81,540 |
|
|
4.59 |
% |
|
7,910,260 |
|
|
88,730 |
|
|
4.46 |
% |
| Investment securities
available for sale (2) |
1,670,723 |
|
|
5,877 |
|
|
1.40 |
% |
|
906,990 |
|
|
4,141 |
|
|
1.82 |
% |
| Federal funds sold |
34,805 |
|
|
10 |
|
|
0.11 |
% |
|
33,403 |
|
|
11 |
|
|
0.13 |
% |
| Total interest earning
assets |
11,486,280 |
|
|
89,152 |
|
|
3.08 |
% |
|
10,205,939 |
|
|
93,833 |
|
|
3.66 |
% |
| Total noninterest earning
assets |
432,215 |
|
|
|
|
|
|
376,681 |
|
|
|
|
|
| Less: allowance for credit
losses |
92,169 |
|
|
|
|
|
|
109,025 |
|
|
|
|
|
| Total noninterest earning
assets |
340,046 |
|
|
|
|
|
|
267,656 |
|
|
|
|
|
| TOTAL
ASSETS |
$ |
11,826,326 |
|
|
|
|
|
|
$ |
10,473,595 |
|
|
|
|
|
| LIABILITIES AND
SHAREHOLDERS' EQUITY |
|
|
|
|
|
|
|
|
|
|
|
| Interest bearing
liabilities: |
|
|
|
|
|
|
|
|
|
|
|
| Interest bearing
transaction |
$ |
842,086 |
|
|
$ |
402 |
|
|
0.19 |
% |
|
$ |
756,005 |
|
|
$ |
483 |
|
|
0.25 |
% |
| Savings and money market |
4,971,866 |
|
|
3,645 |
|
|
0.29 |
% |
|
3,998,603 |
|
|
4,929 |
|
|
0.49 |
% |
| Time deposits |
763,513 |
|
|
2,543 |
|
|
1.32 |
% |
|
1,112,664 |
|
|
5,583 |
|
|
2.00 |
% |
| Total interest bearing
deposits |
6,577,465 |
|
|
6,590 |
|
|
0.40 |
% |
|
5,867,272 |
|
|
10,995 |
|
|
0.75 |
% |
| Customer repurchase
agreements |
27,348 |
|
|
14 |
|
|
0.20 |
% |
|
28,523 |
|
|
84 |
|
|
1.17 |
% |
| Other short-term
borrowings |
300,003 |
|
|
506 |
|
|
0.67 |
% |
|
300,003 |
|
|
505 |
|
|
0.66 |
% |
| Long-term borrowings |
121,346 |
|
|
2,997 |
|
|
9.88 |
% |
|
267,946 |
|
|
3,211 |
|
|
4.69 |
% |
| Total interest bearing
liabilities |
7,026,162 |
|
|
10,107 |
|
|
0.57 |
% |
|
6,463,744 |
|
|
14,795 |
|
|
0.91 |
% |
| Noninterest bearing
liabilities: |
|
|
|
|
|
|
|
|
|
|
|
| Noninterest bearing
demand |
3,370,649 |
|
|
|
|
|
|
2,724,640 |
|
|
|
|
|
| Other liabilities |
98,493 |
|
|
|
|
|
|
74,066 |
|
|
|
|
|
| Total noninterest bearing
liabilities |
3,469,142 |
|
|
|
|
|
|
2,798,706 |
|
|
|
|
|
| Shareholders’ Equity |
1,331,022 |
|
|
|
|
|
|
1,211,145 |
|
|
|
|
|
| TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY |
$ |
11,826,326 |
|
|
|
|
|
|
$ |
10,473,595 |
|
|
|
|
|
| Net interest income |
|
|
$ |
79,045 |
|
|
|
|
|
|
$ |
79,038 |
|
|
|
| Net interest spread |
|
|
|
|
2.51 |
% |
|
|
|
|
|
2.75 |
% |
| Net interest margin |
|
|
|
|
2.73 |
% |
|
|
|
|
|
3.08 |
% |
| Cost of funds |
|
|
|
|
0.35 |
% |
|
|
|
|
|
0.58 |
% |
(1) Loans placed on nonaccrual status are included in average
balances. Net loan fees and late charges included in interest
income on loans totaled $6.3 million and $5.4 million for the three
months ended September 30, 2021 and September 30, 2020,
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, 2021 |
|
September 30, 2020 |
| |
Average Balance |
|
Interest |
|
AverageYield/Rate |
|
Average Balance |
|
Interest |
|
AverageYield/Rate |
| ASSETS |
|
|
|
|
|
|
|
|
|
|
|
| Interest earning assets: |
|
|
|
|
|
|
|
|
|
|
|
|
Interest bearing deposits with other banks and other short-term
investments |
$ |
2,288,660 |
|
|
$ |
2,239 |
|
|
0.13 |
% |
|
$ |
990,051 |
|
|
$ |
2,104 |
|
|
0.28 |
% |
| Loans held for sale
(1) |
79,264 |
|
|
1,936 |
|
|
3.26 |
% |
|
66,158 |
|
|
1,605 |
|
|
3.23 |
% |
| Loans (1)
(2) |
7,385,733 |
|
|
258,188 |
|
|
4.67 |
% |
|
7,859,188 |
|
|
277,374 |
|
|
4.71 |
% |
| Investment securities
available for sale (2) |
1,506,996 |
|
|
15,878 |
|
|
1.41 |
% |
|
865,484 |
|
|
14,139 |
|
|
2.18 |
% |
| Federal funds sold |
32,146 |
|
|
25 |
|
|
0.10 |
% |
|
33,424 |
|
|
84 |
|
|
0.34 |
% |
| Total interest earning
assets |
11,292,799 |
|
|
278,266 |
|
|
3.29 |
% |
|
9,814,305 |
|
|
295,306 |
|
|
4.02 |
% |
| Total noninterest earning
assets |
408,167 |
|
|
|
|
|
|
368,974 |
|
|
|
|
|
| Less: allowance for credit
losses |
100,756 |
|
|
|
|
|
|
99,198 |
|
|
|
|
|
| Total noninterest earning
assets |
307,411 |
|
|
|
|
|
|
269,776 |
|
|
|
|
|
| TOTAL
ASSETS |
$ |
11,600,210 |
|
|
|
|
|
|
$ |
10,084,081 |
|
|
|
|
|
| LIABILITIES AND
SHAREHOLDERS' EQUITY |
|
|
|
|
|
|
|
|
|
|
|
| Interest bearing
liabilities: |
|
|
|
|
|
|
|
|
|
|
|
| Interest bearing
transaction |
$ |
819,033 |
|
|
$ |
1,217 |
|
|
0.20 |
% |
|
$ |
787,434 |
|
|
$ |
2,679 |
|
|
0.45 |
% |
| Savings and money market |
4,842,621 |
|
|
11,312 |
|
|
0.31 |
% |
|
3,751,397 |
|
|
21,619 |
|
|
0.77 |
% |
| Time deposits |
826,790 |
|
|
8,759 |
|
|
1.42 |
% |
|
1,199,654 |
|
|
19,757 |
|
|
2.20 |
% |
| Total interest bearing
deposits |
6,488,444 |
|
|
21,288 |
|
|
0.44 |
% |
|
5,738,485 |
|
|
44,055 |
|
|
1.03 |
% |
| Customer repurchase
agreements |
22,240 |
|
|
34 |
|
|
0.20 |
% |
|
29,710 |
|
|
257 |
|
|
1.16 |
% |
| Other short-term
borrowings |
300,003 |
|
|
1,502 |
|
|
0.67 |
% |
|
273,452 |
|
|
1,363 |
|
|
0.66 |
% |
| Long-term borrowings |
197,090 |
|
|
9,114 |
|
|
6.17 |
% |
|
257,265 |
|
|
9,486 |
|
|
4.84 |
% |
| Total interest bearing
liabilities |
7,007,777 |
|
|
31,938 |
|
|
0.61 |
% |
|
6,298,912 |
|
|
55,161 |
|
|
1.17 |
% |
| Noninterest bearing
liabilities: |
|
|
|
|
|
|
|
|
|
|
|
| Noninterest bearing
demand |
3,206,250 |
|
|
|
|
|
|
2,519,867 |
|
|
|
|
|
| Other liabilities |
93,960 |
|
|
|
|
|
|
71,314 |
|
|
|
|
|
| Total noninterest bearing
liabilities |
3,300,210 |
|
|
|
|
|
|
2,591,181 |
|
|
|
|
|
| Shareholders’ Equity |
1,292,223 |
|
|
|
|
|
|
1,193,988 |
|
|
|
|
|
| TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY |
$ |
11,600,210 |
|
|
|
|
|
|
$ |
10,084,081 |
|
|
|
|
|
| Net interest income |
|
|
$ |
246,328 |
|
|
|
|
|
|
$ |
240,145 |
|
|
|
| Net interest spread |
|
|
|
|
2.68 |
% |
|
|
|
|
|
2.85 |
% |
| Net interest margin |
|
|
|
|
2.91 |
% |
|
|
|
|
|
3.27 |
% |
| Cost of funds |
|
|
|
|
0.38 |
% |
|
|
|
|
|
0.75 |
% |
(1) Loans placed on nonaccrual status are included in average
balances. Net loan fees and late charges included in interest
income on loans totaled $26.3 million and $16.1 million for the
nine months ended September 30, 2021 and September 30, 2020,
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: |
2021 |
|
2021 |
|
2021 |
|
2020 |
|
2020 |
|
2020 |
|
2020 |
|
2019 |
|
Total interest income |
$ |
89,152 |
|
|
|
$ |
94,920 |
|
|
|
$ |
94,194 |
|
|
|
$ |
94,680 |
|
|
$ |
93,833 |
|
|
|
$ |
97,672 |
|
|
$ |
103,801 |
|
|
$ |
107,183 |
|
|
| Total interest expense |
10,107 |
|
|
|
10,288 |
|
|
|
11,543 |
|
|
|
13,262 |
|
|
14,795 |
|
|
|
16,309 |
|
|
24,057 |
|
|
26,473 |
|
|
| Net interest income |
79,045 |
|
|
|
84,632 |
|
|
|
82,651 |
|
|
|
81,418 |
|
|
79,038 |
|
|
|
81,363 |
|
|
79,744 |
|
|
80,710 |
|
|
| Provision for credit
losses |
(8,203 |
) |
|
|
(3,856 |
) |
|
|
(2,350 |
) |
|
|
4,917 |
|
|
6,607 |
|
|
|
19,737 |
|
|
14,310 |
|
|
2,945 |
|
|
| Provision for unfunded
commitments |
716 |
|
|
|
(761 |
) |
|
|
(442 |
) |
|
|
406 |
|
|
(2,078 |
) |
|
|
940 |
|
|
2,112 |
|
|
— |
|
|
| Net interest income after
provision for credit losses |
86,532 |
|
|
|
89,249 |
|
|
|
85,443 |
|
|
|
76,095 |
|
|
74,509 |
|
|
|
60,686 |
|
|
63,322 |
|
|
77,765 |
|
|
| Noninterest income (before
investment gain (loss)) |
6,780 |
|
|
|
10,607 |
|
|
|
10,366 |
|
|
|
9,722 |
|
|
17,729 |
|
|
|
11,782 |
|
|
4,648 |
|
|
6,845 |
|
|
| Gain (loss) on sale of
investment securities |
1,519 |
|
|
|
318 |
|
|
|
221 |
|
|
|
165 |
|
|
115 |
|
|
|
713 |
|
|
822 |
|
|
(111 |
) |
|
| Total noninterest income |
8,299 |
|
|
|
10,925 |
|
|
|
10,587 |
|
|
|
9,887 |
|
|
17,844 |
|
|
|
12,495 |
|
|
5,470 |
|
|
6,734 |
|
|
| Salaries and employee
benefits |
22,145 |
|
|
|
19,876 |
|
|
|
21,769 |
|
|
|
20,151 |
|
|
19,388 |
|
|
|
17,104 |
|
|
17,797 |
|
|
19,360 |
|
|
| Premises and equipment |
3,859 |
|
|
|
3,644 |
|
|
|
3,618 |
|
|
|
3,301 |
|
|
5,125 |
|
|
|
3,468 |
|
|
3,821 |
|
|
3,380 |
|
|
| Marketing and advertising |
1,013 |
|
|
|
980 |
|
|
|
886 |
|
|
|
1,161 |
|
|
928 |
|
|
|
1,111 |
|
|
1,078 |
|
|
1,200 |
|
|
| Other expenses |
9,358 |
|
|
|
10,994 |
|
|
|
11,714 |
|
|
|
10,396 |
|
|
11,474 |
|
|
|
13,209 |
|
|
14,651 |
|
|
10,786 |
|
|
| Total noninterest expense |
36,375 |
|
|
|
35,494 |
|
|
|
37,987 |
|
|
|
35,009 |
|
|
36,915 |
|
|
|
34,892 |
|
|
37,347 |
|
|
34,726 |
|
|
| Income before income tax
expense |
58,456 |
|
|
|
64,680 |
|
|
|
58,043 |
|
|
|
50,973 |
|
|
55,438 |
|
|
|
38,289 |
|
|
31,445 |
|
|
49,773 |
|
|
| Income tax expense |
14,847 |
|
|
|
16,687 |
|
|
|
14,574 |
|
|
|
12,081 |
|
|
14,092 |
|
|
|
9,433 |
|
|
8,322 |
|
|
14,317 |
|
|
| Net income |
43,609 |
|
|
|
47,993 |
|
|
|
43,469 |
|
|
|
38,892 |
|
|
41,346 |
|
|
|
28,856 |
|
|
23,123 |
|
|
35,456 |
|
|
| Per Share
Data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Earnings per weighted average
common share, basic |
$ |
1.36 |
|
|
|
$ |
1.50 |
|
|
|
$ |
1.36 |
|
|
|
$ |
1.21 |
|
|
$ |
1.28 |
|
|
|
$ |
0.90 |
|
|
$ |
0.70 |
|
|
$ |
1.06 |
|
|
| Earnings per weighted average
common share, diluted |
$ |
1.36 |
|
|
|
$ |
1.50 |
|
|
|
$ |
1.36 |
|
|
|
$ |
1.21 |
|
|
$ |
1.28 |
|
|
|
$ |
0.90 |
|
|
$ |
0.70 |
|
|
$ |
1.06 |
|
|
| Weighted average common shares
outstanding, basic |
31,959,357 |
|
|
|
31,962,819 |
|
|
|
31,869,655 |
|
|
|
32,037,099 |
|
|
32,229,322 |
|
|
|
32,224,695 |
|
|
32,850,112 |
|
|
33,468,572 |
|
|
| Weighted average common shares
outstanding, diluted |
32,030,527 |
|
|
|
32,025,110 |
|
|
|
31,922,940 |
|
|
|
32,075,175 |
|
|
32,250,885 |
|
|
|
32,240,825 |
|
|
32,875,508 |
|
|
33,498,681 |
|
|
| Actual shares outstanding at
period end |
31,947,458 |
|
|
|
31,961,573 |
|
|
|
31,960,379 |
|
|
|
31,779,663 |
|
|
32,228,636 |
|
|
|
32,224,756 |
|
|
32,197,258 |
|
|
33,241,496 |
|
|
| Book value per common share at
period end |
$ |
41.68 |
|
|
|
$ |
40.87 |
|
|
|
$ |
39.45 |
|
|
|
$ |
39.05 |
|
|
$ |
37.96 |
|
|
|
$ |
36.86 |
|
|
$ |
36.11 |
|
|
$ |
35.82 |
|
|
| Tangible book value per common
share at period end (1) |
$ |
38.39 |
|
|
|
$ |
37.58 |
|
|
|
$ |
36.16 |
|
|
|
$ |
35.74 |
|
|
$ |
34.70 |
|
|
|
$ |
33.62 |
|
|
$ |
32.86 |
|
|
$ |
32.67 |
|
|
| Dividend per common share |
$ |
0.40 |
|
|
|
$ |
0.35 |
|
|
|
$ |
0.25 |
|
|
|
$ |
0.22 |
|
|
$ |
0.22 |
|
|
|
$ |
0.22 |
|
|
$ |
0.22 |
|
|
$ |
0.22 |
|
|
| Performance Ratios
(annualized): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Return on average assets |
1.46 |
|
% |
|
1.68 |
|
% |
|
1.53 |
|
% |
|
1.39 |
% |
|
1.57 |
|
% |
|
1.12 |
% |
|
0.98 |
% |
|
1.49 |
|
% |
| Return on average common
equity |
13.00 |
|
% |
|
14.92 |
|
% |
|
14.05 |
|
% |
|
12.53 |
% |
|
14.46 |
|
% |
|
9.84 |
% |
|
7.81 |
% |
|
11.78 |
|
% |
| Return on average tangible
common equity |
14.11 |
|
% |
|
16.25 |
|
% |
|
15.33 |
|
% |
|
13.69 |
% |
|
15.93 |
|
% |
|
10.80 |
% |
|
8.56 |
% |
|
12.91 |
|
% |
| Net interest margin |
2.73 |
|
% |
|
3.04 |
|
% |
|
2.98 |
|
% |
|
2.98 |
% |
|
3.08 |
|
% |
|
3.26 |
% |
|
3.49 |
% |
|
3.49 |
|
% |
| Efficiency ratio
(2) |
41.65 |
|
% |
|
37.14 |
|
% |
|
40.74 |
|
% |
|
38.34 |
% |
|
38.10 |
|
% |
|
37.18 |
% |
|
43.83 |
% |
|
39.71 |
|
% |
| Other
Ratios: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Allowance for credit losses to
total loans (3) |
1.21 |
|
% |
|
1.28 |
|
% |
|
1.36 |
|
% |
|
1.41 |
% |
|
1.40 |
|
% |
|
1.36 |
% |
|
1.23 |
% |
|
0.98 |
|
% |
| Allowance for credit losses to
total nonperforming loans |
265.32 |
|
% |
|
187.07 |
|
% |
|
195.25 |
|
% |
|
179.80 |
% |
|
189.83 |
|
% |
|
184.52 |
% |
|
201.80 |
% |
|
151.16 |
|
% |
| Nonperforming loans to total
loans (3) |
0.46 |
|
% |
|
0.68 |
|
% |
|
0.69 |
|
% |
|
0.79 |
% |
|
0.74 |
|
% |
|
0.74 |
% |
|
0.61 |
% |
|
0.65 |
|
% |
| Nonperforming assets to total
assets |
0.31 |
|
% |
|
0.50 |
|
% |
|
0.51 |
|
% |
|
0.59 |
% |
|
0.62 |
|
% |
|
0.69 |
% |
|
0.56 |
% |
|
0.56 |
|
% |
| Net charge-offs (annualized)
to average loans (3) |
0.08 |
|
% |
|
0.30 |
|
% |
|
0.27 |
|
% |
|
0.28 |
% |
|
0.26 |
|
% |
|
0.36 |
% |
|
0.12 |
% |
|
0.16 |
|
% |
| Tier 1 capital (to average
assets) |
10.58 |
|
% |
|
10.65 |
|
% |
|
10.28 |
|
% |
|
10.31 |
% |
|
10.82 |
|
% |
|
10.63 |
% |
|
11.33 |
% |
|
11.62 |
|
% |
| Total capital (to risk
weighted assets) |
16.59 |
|
% |
|
17.98 |
|
% |
|
17.86 |
|
% |
|
17.04 |
% |
|
16.72 |
|
% |
|
16.26 |
% |
|
15.44 |
% |
|
16.20 |
|
% |
| Common equity tier 1 capital
(to risk weighted assets) |
15.33 |
|
% |
|
14.67 |
|
% |
|
14.42 |
|
% |
|
13.49 |
% |
|
13.19 |
|
% |
|
12.80 |
% |
|
12.14 |
% |
|
12.87 |
|
% |
| Tangible common equity ratio
(1) |
10.68 |
|
% |
|
11.07 |
|
% |
|
10.48 |
|
% |
|
10.31 |
% |
|
11.18 |
|
% |
|
11.17 |
% |
|
10.70 |
% |
|
12.22 |
|
% |
| Average Balances (in
thousands): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total assets |
$ |
11,826,326 |
|
|
|
$ |
11,453,080 |
|
|
|
$ |
11,517,836 |
|
|
|
$ |
11,141,826 |
|
|
$ |
10,473,595 |
|
|
|
$ |
10,326,709 |
|
|
$ |
9,447,663 |
|
|
$ |
9,426,220 |
|
|
| Total earning assets |
$ |
11,486,280 |
|
|
|
$ |
11,152,933 |
|
|
|
$ |
11,236,440 |
|
|
|
$ |
10,872,259 |
|
|
$ |
10,205,939 |
|
|
|
$ |
10,056,500 |
|
|
$ |
9,176,174 |
|
|
$ |
9,160,034 |
|
|
| Total loans |
$ |
7,055,621 |
|
|
|
$ |
7,382,238 |
|
|
|
$ |
7,726,716 |
|
|
|
$ |
7,896,324 |
|
|
$ |
7,910,260 |
|
|
|
$ |
8,015,751 |
|
|
$ |
7,650,993 |
|
|
$ |
7,532,179 |
|
|
| Total deposits |
$ |
9,948,114 |
|
|
|
$ |
9,530,909 |
|
|
|
$ |
9,601,249 |
|
|
|
$ |
9,227,733 |
|
|
$ |
8,591,912 |
|
|
|
$ |
8,482,718 |
|
|
$ |
7,696,764 |
|
|
$ |
7,716,973 |
|
|
| Total borrowings |
$ |
448,697 |
|
|
|
$ |
536,926 |
|
|
|
$ |
573,750 |
|
|
|
$ |
596,307 |
|
|
$ |
596,472 |
|
|
|
$ |
598,463 |
|
|
$ |
485,948 |
|
|
$ |
449,432 |
|
|
| Total shareholders’
equity |
$ |
1,331,022 |
|
|
|
$ |
1,290,029 |
|
|
|
$ |
1,254,780 |
|
|
|
$ |
1,235,174 |
|
|
$ |
1,211,145 |
|
|
|
$ |
1,179,452 |
|
|
$ |
1,191,180 |
|
|
$ |
1,194,337 |
|
|
(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.
1 A reconciliation between this non-GAAP financial measure and
the nearest GAAP measure is provided in the tables that accompany
this document.2 A reconciliation between this non-GAAP financial
measure and the nearest GAAP measure is provided in the table under
the subsection, “Total Loans.”3 A reconciliation between this
non-GAAP financial measure and the nearest GAAP measure is provided
in the tables that accompany this document.4 A reconciliation
between this non-GAAP financial measure and the nearest GAAP
measure is provided in the table below.5 A reconciliation between
this non-GAAP financial measure and the nearest GAAP measure is
provided in the table below.6 Noninterest expense divided by the
sum of net interest income and noninterest income.7 A
reconciliation between these non-GAAP financial measures and the
nearest GAAP measures is provided in the table below.8 A
reconciliation between these non-GAAP financial measures and the
nearest GAAP measures is provided in the table below.9 Includes
interest on PPP loans, accelerated net deferred fees and costs from
PPP loan sale and accelerated interest income from forgiveness of
PPP loans.10 A reconciliation between these non-GAAP financial
measures and the nearest GAAP measures is provided in the table
below.11 A reconciliation of non-GAAP financial measures to the
nearest non-GAAP measure is provided in the tables that accompany
this document.
EAGLE BANCORP,
INCCONTACT:David G.
Danielson240.552.9534
Eagle Bancorp (NASDAQ:EGBN)
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