Eagle Bancorp, Inc. (the "Company") (Nasdaq:EGBN), the parent
company of EagleBank, today announced net income of $3.4 million
for the quarter ended June 30, 2010, a 30% increase over the $2.7
million for the quarter ended June 30, 2009. Net income available
to common shareholders was $3.1 million ($0.16 per basic common
share and $0.15 per diluted common share) for the quarter ended
June 30, 2010, compared to $2.1 million ($0.16 per basic and
diluted common share) for the quarter ended June 30, 2009, a 52%
increase.
For the six months ended June 30, 2010, the Company's net income
was $6.8 million, a 45% increase over the $4.7 million for the six
months ended June 30, 2009. Net income available to common
shareholders was $6.2 million ($0.32 per basic common share and
$0.31 per diluted common share), as compared to $3.6 million ($0.28
per basic and diluted common share) for the same six month period
in 2009, a 74% increase.
"We are extremely pleased to report strong earnings and balance
sheet growth for the second quarter of 2010. These results reflect
substantial revenue growth, continued growth in both loans and core
deposits and solid asset quality," noted Ronald D. Paul, Chairman,
President and Chief Executive Officer of Eagle Bancorp, Inc. "At a
time of continuing stress in our financial markets and in the
general economy, Eagle Bancorp continues to perform well. Second
quarter earnings mark six successive quarters of growth in net
income," added Mr. Paul. "Further, EagleBank has remained diligent
in meeting the credit needs of clients throughout our market area,
as reflected by the $191 million or 15% growth rate in total loans
over the past twelve months. Over the same period, total deposits
increased $330 million, or 26%, which includes the addition of many
new relationships to our client base. The new relationship growth
is further evidence that the Company's position as the leading
community bank in the Washington metropolitan area is being
solidified," noted Mr. Paul.
A continuing trend of growth in average loans and deposits and
further expansion in the net interest margin were the key drivers
of increases in revenue and net income in both the second quarter
and six month results. Average loans increased 15% and 12% for the
three and six months ended June 30, 2010, respectively, over the
comparable prior year period. Average deposits increased 31% and
29% for the three and six months ended June 30, 2010, respectively,
due substantially to growth in money market accounts.
At June 30, 2010, total assets were $1.94 billion compared to
$1.59 billion at June 30, 2009, a 22% increase. Total deposits
amounted to $1.58 billion, at June 30, 2010, a 26% increase over
deposits of $1.25 billion at June 30, 2009, while total loans
increased to $1.50 billion at June 30, 2010, from $1.31 billion at
June 30, 2009, a 15% increase. The investment portfolio, as of June
30, 2010, totaled $237 million, a 41% increase over the $168
million balance at June 30, 2009. The investment portfolio
valuation continues to show substantial unrealized gains. Total
borrowed funds decreased to $155.4 million at June 30, 2010 from
$174.3 million at June 30, 2009, an 11% decline, as substantial
growth in lower cost core deposits was used to reduce alternative
funding sources. Total stockholders' equity increased to $196.7
million at June 30, 2010, from $145.2 million at June 30, 2009. The
Company's capital position remains substantially in excess of
regulatory well capitalized measures.
Net interest income increased 30% for the three months ended
June 30, 2010 over the same period in 2009, as the Company posted a
strong net interest margin of 4.10% for the most recent quarter in
2010. The net interest margin increased 12 basis points from the
three months ended March 31, 2010 and 19 basis points from the
3.91% achieved in the second quarter of 2009. The higher margin in
the second quarter of 2010 as compared to the same period of 2009
was due to lower funding costs for both deposits and borrowings
more than offsetting declines in earning asset yields, and to
higher average noninterest deposit balances in 2010 compared to
2009. The Company's net interest margin continues to compare
favorably to peer banking companies.
Average loans increased $82 million (6%) and average deposits
increased $57 million (4%) during the three months ended June 30,
2010, as compared to the three months ended March 31, 2010. The
increase in average loans in the second quarter of 2010 as compared
to the first quarter of 2010 is primarily attributable to growth in
income-producing commercial real estate loans and commercial and
industrial loans. Increases in average deposits in the second
quarter of 2010, as compared to the first quarter of 2010, is
attributable to growth in both noninterest bearing demand deposits
and money market accounts.
At June 30, 2010, the Company's level of nonperforming assets
was $28.9 million, representing 1.49% of total assets, compared to
$24.9 million of nonperforming assets, or 1.36% of total assets, at
March 31, 2010 and $34.1 million, or 2.14% of total assets, at June
30, 2009. Management remains attentive to early signs of
deterioration in borrowers' financial conditions and to taking the
appropriate action to mitigate risk. Furthermore, the Company is
diligent in placing loans on nonaccrual status and believes, based
on its loan portfolio risk analysis, that its allowance for loan
losses, at 1.45% of total loans at June 30, 2010, is adequate to
absorb potential credit losses within the loan portfolio at that
date. Included in nonperforming assets at June 30, 2010 were $3.6
million of Other Real Estate Owned ("OREO") as compared to $3.9
million at March 31, 2010 and $3.1 million at June 30,
2009. During the second quarter the Company sold two
OREO properties for a net loss of $160 thousand.
Analysis of the three months ended June 30, 2010
compared to 2009
For the three months ended June 30, 2010, the Company reported
an annualized return on average assets (ROAA) of 0.73% as compared
to 0.70% for the three months ended June 30, 2009. The annualized
return on average common equity (ROAE) for the most recent quarter
was 7.30%, as compared to 7.71% for the three months ended June 30,
2009. The increase in the ROAA ratio was due primarily to a higher
net interest margin in the current period whereas the decline in
the ROAE was due to higher levels of stockholders' equity in the
current period due principally to the successful capital raise in
September 2009.
Net interest income increased 30% for the three months ended
June 30, 2010 over 2009, resulting from a 19 basis point increase
in the net interest margin over the past twelve months and strong
balance sheet growth. For the three months ended June 30, 2010, the
net interest margin was 4.10% as compared to 3.91% for the three
months ended June 30, 2009. The Company's net interest margin for
the second quarter of 2010 increased by 12 basis points to 4.10%
from 3.98% for the first quarter of 2010 due primarily to lower
funding costs of 13 basis points.
The provision for credit losses was $2.1 million for the three
months ended June 30, 2010 as compared to $1.7 million for the
three months ended June 30, 2009. At June 30, 2010, the
allowance for credit losses represented 1.45% of loans outstanding,
as compared to 1.50% at June 30, 2009 and 1.47% at March 31, 2010.
The higher provisioning in the second quarter of 2010, as compared
to the second quarter of 2009, is primarily attributable to loan
growth. The two basis point decline in the reserve is based
upon the incorporation of consistently low levels of historical
losses in the reserve methodology. Net charge-offs of $1.4
million represented 0.38% of average loans in the second
quarter of 2010, as compared to $1.1 million or 0.35%
of average loans in the second quarter of 2009. Net
charge-offs in the second quarter of 2010 were attributable to
charge-offs in the unguaranteed portion of SBA loans ($545
thousand), commercial and industrial loans ($303 thousand),
commercial real estate loans ($552 thousand), and consumer loans
($5 thousand).
At June 30, 2010, the allowance for credit losses represented
86% of nonperforming loans as compared to 100% at March 31, 2010
and 63% at June 30, 2009. The two basis point decline in the
reserve is due to the incorporation of consistently low levels of
historical losses over the past eight quarters in the reserve
methodology, due in part to improving market conditions in the
Washington, D.C. metropolitan area.
Noninterest income for the three months ended June 30, 2010
decreased to $2.0 million from $3.1 million for the three months
ended June 30, 2009, a 35% decrease. This decrease was due
primarily to an $832 thousand decline in gains on the sale of
investment securities. Investment gains realized in both the second
quarter of 2010 and 2009 were the result of asset/liability
management decisions to reduce call risk in the portfolio of U.S.
Agency securities, and to mitigate potential extension risk in
longer-term mortgage backed securities. Also contributing to lower
noninterest income in 2010 compared to 2009 was a $329 thousand
decline in gains on the sale of loans. Gains on the sale of SBA
loans increased $57 thousand while gains on the sales of
residential mortgages decreased $386 thousand. With the late second
quarter expansion of the residential mortgage origination division,
the Company anticipates higher amounts of noninterest income from
the origination and sale of mortgage loans for the remainder of
2010.
The efficiency ratio, which measures the ratio of noninterest
expense to total revenue, was 63.69% for the second quarter of
2010, as compared to 66.42% for the second quarter of 2009, as the
Company has enhanced its productivity. As compared to the first
quarter of 2010, the second quarter efficiency ratio was slightly
elevated (from 62.15% to 63.69%) due largely to additional staffing
in the residential mortgage business unit (see above discussion),
and to additional lending personnel. Noninterest expenses were
$13.1 million for the three months ended June 30, 2010, as compared
to $11.6 million for the three months ended June 30, 2009, a 14%
increase. Higher costs were incurred for salaries and benefits
of $925 thousand, premises and equipment expenses of $785 thousand,
other expenses of $355 thousand, legal, accounting and professional
fees of $165 thousand, data processing of $69 thousand, and
marketing and advertising of $39 thousand. Premises and equipment
expenses include approximately $595 thousand due to the
acceleration of the remaining lease term for the closure of the
Sligo branch in Silver Spring, Maryland in April, 2010. These
higher costs were partially offset by a reduction in FDIC insurance
premiums of $773 thousand resulting from a special assessment of
approximately $723 thousand recorded in the second quarter of 2009.
Finally, a portion of the increase in other expenses is due to the
operating and disposition costs of OREO.
Analysis of the six months ended June 30, 2010 compared
to 2009
For the six months ended June 30, 2010, the Company reported an
annualized ROAA of 0.75% as compared to 0.63% for the six months of
2009, while the annualized ROAE was 7.35% in 2010, as compared to
6.81% for the same six month period in 2009. The increase in these
ratios was due primarily to increase in the net interest margin
over the past twelve months, resulting from lower funding
costs.
For the first six months of 2010, net interest income increased
29% over the same period for 2009. Average loans increased 12% and
average deposits increased by 29%. The net interest margin was
4.04% for the six months of 2010, as compared to 3.83% for the six
months of 2009. The Company has been able to maintain its loan
yields in 2010 close to 2009 levels due to loan pricing practices,
and has been able to reduce its funding costs while maintaining a
favorable deposit mix; much of which has occurred from sales
efforts to increase and deepen client relationships.
The provision for credit losses was $3.8 million for the first
six months of 2010 as compared to $3.3 million in 2009. The higher
provisioning in 2010 as compared to 2009 is attributable to both
higher amounts of loan growth in the first six months of 2010
compared to 2009, and to slightly higher net charge-offs in 2010 as
compared to 2009. For the six months ended June 30, 2010, net
charge-offs totaled $2.7 million (0.37% of average loans) compared
to $2.1 million (0.32% of average loans) for the six months ended
June 30, 2009. Net charge-offs in the six months ended June
30, 2010 were attributable to charge-offs in the unguaranteed
portion of SBA loans ($652 thousand), commercial and industrial
loans ($954 thousand), commercial real estate loans ($1.1 million),
and consumer loans ($9 thousand).
Noninterest income for the six months of 2010 was $3.2 million
compared to $4.5 million in 2009, a decrease of 29%. This decrease
was due primarily to a $964 thousand decline in gains on the sale
of investment securities. Investment gains realized in both the
first six months of 2010 and 2009 were the result of
asset/liability management decisions to reduce call risk in the
portfolio of U.S. Agency securities, and to mitigate potential
extension risk in longer-term mortgage backed securities. Also
contributing to lower noninterest income in the first six months of
2010 compared to 2009 was a decline of $407 thousand in gains on
the sale of loans; as gains on the sale of SBA loans increased $73
thousand while gains on the sale of residential mortgages decreased
$480 thousand.
Noninterest expenses were $24.6 million for the first six months
of 2010, as compared to $21.9 million for 2009, a 13% increase
primarily comprised of salaries and benefits expense of $1.3
million, reflecting in part the expansion of the residential
mortgage division, premises and equipment expenses of $1.0 million,
other expenses of $761 thousand, legal, accounting and professional
fees of $149 thousand, and data processing costs of $136 thousand.
Premises and equipment expenses include approximately $595 thousand
due to the acceleration of the remaining lease term for the closure
of the Sligo branch in Silver Spring, Maryland in April, 2010. The
higher costs were somewhat offset by a reduction in FDIC insurance
of $580 thousand resulting from a special assessment of
approximately $723 thousand recorded in the second quarter of 2009.
For the first six months of 2010, the efficiency ratio was 62.96%
as compared to 67.66% for the six months ended June 30, 2009. Cost
control remains a key operating objective of the Company.
At June 30, 2010, Eagle Bancorp had a total risk based capital
ratio of 13.03%, a Tier 1 risk based capital ratio of 11.32%, and a
tangible common equity capital ratio of 8.79%, all measures being
substantially above regulatory well capitalized measures.
The financial information which follows provides more detail on
the Company's financial performance for the six and three months
ended June 30, 2010 as compared to the six and three months ended
June 30, 2009, 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, 2009 as 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 conducts full service
commercial banking through thirteen offices, located in Montgomery
County, Maryland, Washington, D.C. and Fairfax County, Virginia.
The Company focuses on building relationships with businesses,
professionals and individuals in its marketplace.
The Eagle Bancorp, Inc. logo is available at
http://www.globenewswire.com/newsroom/prs/?pkgid=6101
Conference Call: Eagle Bancorp will host a
conference call to discuss the second quarter 2010 financial
results on Tuesday, July 27, 2010 at 10:00 a.m. eastern time. The
public is invited to listen to this conference call by dialing
877-303-6220, conference ID Code is 84517500, or by accessing the
call on the Company's website, www.eaglebankcorp.com. A replay
of the conference call will be available on the Company's website
through August 10, 2010.
Forward-looking Statements: This press release
contains forward-looking statements within the meaning of the
Securities and Exchange Act of 1934, as amended, including
statements of goals, intentions, and expectations as to future
trends, plans, events or results of Company operations and policies
and regarding general economic conditions. In some cases,
forward-looking statements can be identified by use of words such
as "may," "will," "anticipates," "believes," "expects," "plans,"
"estimates," "potential," "continue," "should," and similar words
or phrases. These statements are based upon current and anticipated
economic conditions, nationally and in the Company's market,
interest rates and interest rate policy, competitive factors, and
other conditions which by their nature, are not susceptible to
accurate forecast and are subject to significant uncertainty.
Because of these uncertainties and the assumptions on which this
discussion and the forward-looking statements are based, actual
future operations and results in the future may differ materially
from those indicated herein. For details on factors that could
affect these expectations, see the risk factors and other
cautionary language included in the Company's Annual Report on Form
10-K for the year ended December 31, 2009 and in other periodic and
current reports filed with the SEC. Readers are cautioned
against placing undue reliance on any such forward-looking
statements. The Company's past results are not necessarily
indicative of future performance.
Eagle Bancorp, Inc. |
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|
Financial Highlights |
|
|
|
|
(in thousands, except per share data) |
Six Months
Ended |
Three Months
Ended |
|
June
30, |
June
30, |
|
2010 |
2009 |
2010 |
2009 |
Income Statements: |
(Unaudited) |
(Unaudited) |
(Unaudited) |
(Unaudited) |
Total interest income |
$ 46,197 |
$ 40,499 |
$ 23,689 |
$ 20,432 |
Total interest expense |
10,357 |
12,716 |
5,072 |
6,112 |
Net interest income |
35,840 |
27,783 |
18,617 |
14,320 |
Provision for credit losses |
3,790 |
3,284 |
2,101 |
1,718 |
Net interest income after provision for
credit losses |
32,050 |
24,499 |
16,516 |
12,602 |
Noninterest income (before investment
gains) |
2,659 |
2,998 |
1,437 |
1,698 |
Investment gains |
573 |
1,537 |
573 |
1,405 |
Total noninterest income |
3,232 |
4,535 |
2,010 |
3,103 |
Total noninterest expense |
24,600 |
21,866 |
13,137 |
11,573 |
Income before income tax expense |
10,682 |
7,168 |
5,389 |
4,132 |
Income tax expense |
3,844 |
2,442 |
1,942 |
1,481 |
Net income |
6,838 |
4,726 |
3,447 |
2,651 |
Preferred stock dividends and discount
accretion |
644 |
1,172 |
324 |
589 |
Net Income Available to Common
Shareholders |
$ 6,194 |
$ 3,554 |
$ 3,123 |
$ 2,062 |
|
|
|
|
|
Per Share Data: |
|
|
|
|
Earnings per weighted average common share,
basic |
$ 0.32 |
$ 0.28 |
$ 0.16 |
$ 0.16 |
Earnings per weighted average common share,
diluted |
$ 0.31 |
$ 0.28 |
$ 0.15 |
$ 0.16 |
Weighted average common shares outstanding,
basic |
19,625,310 |
12,746,632 |
19,858,294 |
12,750,496 |
Weighted average common shares outstanding,
diluted |
20,005,961 |
12,817,061 |
20,288,992 |
12,887,964 |
Actual shares outstanding |
19,652,918 |
12,763,940 |
19,652,918 |
12,763,940 |
Book value per common share at period
end |
$ 8.87 |
$ 8.52 |
$ 8.87 |
$ 8.52 |
Tangible book value per common share at
period end (1) |
$ 8.65 |
$ 8.18 |
$ 8.65 |
$ 8.18 |
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|
|
Performance Ratios
(annualized): |
|
|
|
|
Return on average assets |
0.75% |
0.63% |
0.73% |
0.70% |
Return on average common equity |
7.35% |
6.81% |
7.30% |
7.71% |
Net interest margin |
4.04% |
3.83% |
4.10% |
3.91% |
Efficiency ratio (2) |
62.96% |
67.66% |
63.69% |
66.42% |
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|
|
|
|
Other Ratios: |
|
|
|
|
Allowance for credit losses to total
loans |
1.45% |
1.50% |
1.45% |
1.50% |
Allowance for credit losses to total
nonperforming loans |
85.86% |
63.40% |
85.86% |
63.40% |
Nonperforming loans to total loans |
1.68% |
2.36% |
1.68% |
2.36% |
Nonperforming assets to total assets |
1.49% |
2.14% |
1.49% |
2.14% |
Net charge-offs (annualized) to average
loans |
0.37% |
0.32% |
0.38% |
0.35% |
Common equity to total assets |
8.96% |
6.73% |
8.96% |
6.73% |
Tier 1 leverage ratio |
9.83% |
8.96% |
9.83% |
8.96% |
Tier 1 risk based capital ratio |
11.32% |
9.91% |
11.32% |
9.91% |
Total risk based capital ratio |
13.03% |
12.05% |
13.03% |
12.05% |
Tangible common equity to tangible assets
(1) |
8.79% |
6.58% |
8.79% |
6.58% |
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|
|
|
|
Loan Balances -Period End (in
thousands): |
|
|
|
|
Commercial and Industrial |
$ 370,893 |
$ 317,657 |
$ 370,893 |
$ 317,657 |
Commercial real estate -- owner
occupied |
$ 209,438 |
$ 191,036 |
$ 209,438 |
$ 191,036 |
Commercial real estate - income
producing |
$ 566,669 |
$ 427,623 |
$ 566,669 |
$ 427,622 |
1-4 Family mortgage |
$ 11,227 |
$ 8,678 |
$ 11,227 |
$ 8,678 |
Construction - commercial and
residential |
$ 252,934 |
$ 275,113 |
$ 252,934 |
$ 275,113 |
Home equity |
$ 86,957 |
$ 85,336 |
$ 86,957 |
$ 85,336 |
Other consumer |
$ 6,295 |
$ 7,951 |
$ 6,295 |
$ 7,951 |
|
|
|
|
|
Average Balances (in
thousands): |
|
|
|
|
Total assets |
$ 1,848,846 |
$ 1,508,125 |
$ 1,881,761 |
$ 1,518,979 |
Total earning assets |
$ 1,788,153 |
$ 1,460,940 |
$ 1,821,943 |
$ 1,468,296 |
Total loans (3) |
$ 1,448,342 |
$ 1,289,823 |
$ 1,489,325 |
$ 1,297,634 |
Total deposits |
$ 1,500,928 |
$ 1,161,123 |
$ 1,529,498 |
$ 1,164,978 |
Total borrowings |
$ 148,952 |
$ 194,798 |
$ 151,240 |
$ 199,479 |
Total stockholders' equity |
$ 193,139 |
$ 143,428 |
$ 194,866 |
$ 145,492 |
(1) Tangible common equity to tangible assets
and tangible book value per common share are non-GAAP financial
measures derived from GAAP-based amounts. We calculate
tangible common equity to tangible assets by excluding the balance
of intangible assets from common stockholders' equity and dividing
by tangible assets. We calculate tangible book value per
common share by dividing tangible common equity by common shares
outstanding, as compared to book value per common share, which
we calculate by dividing common stockholders' equity by common
shares outstanding. We believe that this information is 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. |
(2) Computed by dividing noninterest expense
by the sum of net interest income and noninterest income. |
(3) Includes loans held for sale. |
GAAP Reconciliation |
|
|
(dollars in thousands except per
share data) |
|
|
|
|
|
|
Six Months
Ended |
|
June
30, |
|
2010 |
2009 |
|
(Unaudited) |
(Unaudited) |
Common stockholders' equity |
$ 174,250 |
$ 108,790 |
Less: Intangible assets |
(4,277) |
(4,392) |
Tangible common equity |
$ 169,973 |
$ 104,398 |
|
|
|
Book value per common share |
$ 8.87 |
$ 8.52 |
Less: Intangible book value per common
share |
(0.22) |
(0.34) |
Tangible book value per common
share |
$ 8.65 |
$ 8.18 |
Eagle Bancorp, Inc. |
|
|
|
Statements of Financial Condition |
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|
|
(dollars in thousands) |
|
|
|
|
|
|
|
|
June 30, 2010 |
December 31, 2009 |
June 30, 2009 |
|
(Unaudited) |
(Audited) |
(Unaudited) |
Assets |
|
|
|
Cash and due from banks |
$ 23,901 |
$ 21,955 |
$ 28,187 |
Federal funds sold |
89,755 |
88,248 |
27,044 |
Interest bearing deposits with banks and
other short-term investments |
8,062 |
7,484 |
2,426 |
Investment securities available for sale, at
fair value |
237,117 |
235,227 |
167,666 |
Federal Reserve and Federal Home Loan Bank
stock |
10,285 |
10,417 |
10,044 |
Loans held for sale |
24,491 |
1,550 |
10,502 |
Loans |
1,504,413 |
1,399,311 |
1,313,394 |
Less allowance for credit losses |
(21,741) |
(20,619) |
(19,650) |
Loans, net |
1,482,672 |
1,378,692 |
1,293,744 |
Premises and equipment, net |
8,687 |
9,253 |
9,245 |
Deferred income taxes |
12,279 |
12,455 |
12,404 |
Bank owned life insurance |
13,130 |
12,912 |
12,680 |
Intangible assets, net |
4,277 |
4,379 |
4,392 |
Other real estate owned |
3,556 |
5,106 |
3,081 |
Other assets |
19,053 |
17,826 |
8,791 |
Total Assets |
$ 1,937,265 |
$ 1,805,504 |
$ 1,590,206 |
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|
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|
Liabilities |
|
|
|
Deposits: |
|
|
|
Noninterest bearing demand |
$ 313,812 |
$ 307,959 |
$ 231,171 |
Interest bearing transaction |
54,489 |
59,720 |
55,596 |
Savings and money market |
709,987 |
582,854 |
375,007 |
Time, $100,000 or more |
314,081 |
296,199 |
284,595 |
Other time |
185,622 |
213,542 |
301,833 |
Total deposits |
1,577,991 |
1,460,274 |
1,248,202 |
Customer repurchase agreements |
|
|
|
and federal funds purchased |
106,104 |
90,790 |
112,163 |
Other short-term borrowings |
-- |
10,000 |
30,000 |
Long-term borrowings |
49,300 |
49,300 |
32,150 |
Other liabilities |
7,127 |
6,819 |
22,443 |
Total liabilities |
1,740,522 |
1,617,183 |
1,444,958 |
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Stockholders' Equity |
|
|
|
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|
|
|
Preferred stock, par value $.01 per share,
shares authorized 1,000,000, Series A, $1,000 per share liquidation
preference, shares issued and outstanding 23,235, 23,235 and
38,235, respectively, discount of $690, $570 and $1,725
respectively, net |
22,493 |
22,612 |
36,458 |
Common stock, par value $.01 per share;
shares authorized 50,000,000, shares issued and outstanding
19,652,918, 19,534,226 and 12,763,940, respectively |
197 |
195 |
127 |
Warrants |
946 |
946 |
1,892 |
Additional paid in capital |
129,701 |
129,211 |
77,099 |
Retained earnings |
39,400 |
33,024 |
28,575 |
Accumulated other comprehensive
income |
4,006 |
2,333 |
1,097 |
Total stockholders' equity |
196,743 |
188,321 |
145,248 |
Total Liabilities and Stockholders'
Equity |
$ 1,937,265 |
$ 1,805,504 |
$ 1,590,206 |
EAGLE BANCORP, INC. |
|
|
|
|
Consolidated Statements of
Operations |
|
|
|
|
For the Six and Three Month
Periods Ended June 30, 2010 and 2009 (Unaudited) |
|
|
|
(dollars in thousands, except per share
data) |
|
|
|
|
|
Six Months
Ended |
Three Months
Ended |
|
June
30, |
June
30, |
Interest Income |
2010 |
2009 |
2010 |
2009 |
Interest and fees on loans |
$ 42,340 |
$ 36,683 |
$ 21,878 |
$ 18,570 |
Interest and dividends on investment
securities |
3,715 |
3,768 |
1,738 |
1,839 |
Interest on balances with other banks and
short-term investments |
59 |
37 |
26 |
18 |
Interest on federal funds sold |
83 |
11 |
47 |
5 |
Total interest income |
46,197 |
40,499 |
23,689 |
20,432 |
Interest Expense |
|
|
|
|
Interest on deposits |
8,855 |
10,609 |
4,317 |
5,052 |
Interest on customer repurchase
agreements |
|
|
|
|
and federal funds purchased |
378 |
574 |
195 |
293 |
Interest on short-term borrowings |
27 |
158 |
9 |
118 |
Interest on long-term borrowings |
1,097 |
1,375 |
551 |
649 |
Total interest expense |
10,357 |
12,716 |
5,072 |
6,112 |
Net Interest
Income |
35,840 |
27,783 |
18,617 |
14,320 |
Provision for Credit
Losses |
3,790 |
3,284 |
2,101 |
1,718 |
Net Interest Income After Provision
For Credit Losses |
32,050 |
24,499 |
16,516 |
12,602 |
|
|
|
|
|
Noninterest Income |
|
|
|
|
Service charges on deposits |
1,486 |
1,455 |
756 |
717 |
Gain on sale of loans |
251 |
658 |
197 |
527 |
Gain on sale of investment securities |
573 |
1,537 |
573 |
1,405 |
Increase in the cash surrender value
of bank owned life insurance |
217 |
230 |
107 |
116 |
Other income |
705 |
655 |
377 |
338 |
Total noninterest income |
3,232 |
4,535 |
2,010 |
3,103 |
Noninterest Expense |
|
|
|
|
Salaries and employee benefits |
11,644 |
10,349 |
5,969 |
5,044 |
Premises and equipment expenses |
4,704 |
3,702 |
2,612 |
1,827 |
Marketing and advertising |
528 |
557 |
281 |
242 |
Data processing |
1,258 |
1,122 |
643 |
575 |
Legal, accounting and professional fees |
1,526 |
1,377 |
952 |
787 |
FDIC insurance |
1,335 |
1,915 |
701 |
1,474 |
Other expenses |
3,605 |
2,844 |
1,979 |
1,624 |
Total noninterest expense |
24,600 |
21,866 |
13,137 |
11,573 |
Income Before Income Tax
Expense |
10,682 |
7,168 |
5,389 |
4,132 |
Income Tax Expense |
3,844 |
2,442 |
1,942 |
1,481 |
Net Income |
6,838 |
4,726 |
3,447 |
2,651 |
Preferred Stock Dividends and
Discount Accretion |
644 |
1,172 |
324 |
589 |
Net Income Available to Common
Shareholders |
$ 6,194 |
$ 3,554 |
$ 3,123 |
$ 2,062 |
|
|
|
|
|
Earnings Per Common
Share |
|
|
|
|
Basic |
$ 0.32 |
$ 0.28 |
$ 0.16 |
$ 0.16 |
Diluted |
$ 0.31 |
$ 0.28 |
$ 0.15 |
$ 0.16 |
EAGLE BANCORP,
INC. |
Average Balances, Interest
Yields And Rates, And Net Interest Margin |
(dollars in thousands) |
|
Three Months Ended June
30, |
|
2010 |
2009 |
|
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 |
$ 7,683 |
$ 26 |
1.36% |
$ 2,450 |
$ 18 |
2.95% |
Loans (1) (2) (3) |
1,489,325 |
21,878 |
5.89% |
1,297,634 |
18,570 |
5.74% |
Investment securities available for sale
(3) |
250,276 |
1,738 |
2.79% |
159,064 |
1,839 |
4.64% |
Federal funds sold |
74,659 |
47 |
0.25% |
9,148 |
5 |
0.22% |
Total interest earning assets |
1,821,943 |
23,689 |
5.22% |
1,468,296 |
20,432 |
5.58% |
|
|
|
|
|
|
|
Total noninterest earning assets |
81,188 |
|
|
69,756 |
|
|
Less: allowance for credit losses |
21,370 |
|
|
19,073 |
|
|
Total noninterest earning assets |
59,818 |
|
|
50,683 |
|
|
TOTAL ASSETS |
$1,881,761 |
|
|
$1,518,979 |
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS'
EQUITY |
|
|
|
|
|
|
Interest bearing liabilities: |
|
|
|
|
|
|
Interest bearing transaction |
$ 53,448 |
$ 53 |
0.40% |
$ 50,709 |
$ 41 |
0.32% |
Savings and money market |
673,794 |
2,046 |
1.22% |
326,344 |
1,325 |
1.63% |
Time deposits |
495,727 |
2,218 |
1.79% |
564,193 |
3,686 |
2.62% |
Total interest bearing
deposits |
1,222,969 |
4,317 |
1.42% |
941,246 |
5,052 |
2.15% |
Customer repurchase agreements and federal
funds purchased |
96,841 |
195 |
0.81% |
107,933 |
293 |
1.09% |
Other short-term borrowings |
5,099 |
9 |
0.71% |
39,286 |
118 |
1.20% |
Long-term borrowings |
49,300 |
551 |
4.48% |
52,260 |
649 |
4.99% |
Total interest bearing
liabilities |
1,374,209 |
5,072 |
1.48% |
1,140,725 |
6,112 |
2.15% |
|
|
|
|
|
|
|
Noninterest bearing liabilities: |
|
|
|
|
|
|
Noninterest bearing demand |
306,529 |
|
|
223,732 |
|
|
Other liabilities |
6,157 |
|
|
9,030 |
|
|
Total noninterest bearing
liabilities |
312,686 |
|
|
232,762 |
|
|
|
|
|
|
|
|
|
Stockholders' equity |
194,866 |
|
|
145,492 |
|
|
TOTAL LIABILITIES AND STOCKHOLDERS'
EQUITY |
$1,881,761 |
|
|
$1,518,979 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income |
|
$ 18,617 |
|
|
$ 14,320 |
|
Net interest spread |
|
|
3.74% |
|
|
3.43% |
Net interest margin |
|
|
4.10% |
|
|
3.91% |
(1) Includes loans held for
sale. |
(2) Loans placed on nonaccrual
status are included in average balances. Net loan fees and late
charges included in interest income on loans totaled $705 thousand
and $439 thousand for the three months ended June 30, 2010 and
2009, respectively. |
(3) Interest and fees on loans
and investments exclude tax equivalent adjustments. |
EAGLE BANCORP,
INC. |
Average Balances, Interest
Yields And Rates, And Net Interest Margin |
(dollars in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended June
30, |
|
2010 |
2009 |
|
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 |
$ 7,621 |
$ 59 |
1.56% |
$ 2,605 |
$ 37 |
2.79% |
Loans (1) (2) (3) |
1,448,342 |
42,340 |
5.90% |
1,289,823 |
36,683 |
5.74% |
Investment securities available for sale
(3) |
257,610 |
3,715 |
2.91% |
159,355 |
3,768 |
4.77% |
Federal funds sold |
74,580 |
83 |
0.22% |
9,157 |
11 |
0.24% |
Total interest earning assets |
1,788,153 |
46,197 |
5.21% |
1,460,940 |
40,499 |
5.59% |
|
|
|
|
|
|
|
Total noninterest earning assets |
81,790 |
|
|
66,052 |
|
|
Less: allowance for credit losses |
21,097 |
|
|
18,867 |
|
|
Total noninterest earning assets |
60,693 |
|
|
47,185 |
|
|
TOTAL ASSETS |
$1,848,846 |
|
|
$1,508,125 |
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS'
EQUITY |
|
|
|
|
|
|
Interest bearing liabilities: |
|
|
|
|
|
|
Interest bearing transaction |
$ 52,002 |
$ 86 |
0.33% |
$ 49,208 |
$ 72 |
0.30% |
Savings and money market |
649,849 |
4,131 |
1.28% |
310,038 |
2,414 |
1.57% |
Time deposits |
501,376 |
4,638 |
1.87% |
582,713 |
8,123 |
2.81% |
Total interest bearing
deposits |
1,203,227 |
8,855 |
1.48% |
941,959 |
10,609 |
2.27% |
Customer repurchase agreements and federal
funds purchased |
92,116 |
378 |
0.83% |
103,283 |
574 |
1.12% |
Other short-term borrowings |
7,536 |
27 |
0.72% |
34,337 |
158 |
0.93% |
Long-term borrowings |
49,300 |
1,097 |
4.49% |
57,178 |
1,375 |
4.85% |
Total interest bearing
liabilities |
1,352,179 |
10,357 |
1.54% |
1,136,757 |
12,716 |
2.26% |
|
|
|
|
|
|
|
Noninterest bearing liabilities: |
|
|
|
|
|
|
Noninterest bearing demand |
297,701 |
|
|
219,164 |
|
|
Other liabilities |
5,827 |
|
|
8,776 |
|
|
Total noninterest bearing
liabilities |
303,528 |
|
|
227,940 |
|
|
|
|
|
|
|
|
|
Stockholders' equity |
193,139 |
|
|
143,428 |
|
|
TOTAL LIABILITIES AND STOCKHOLDERS'
EQUITY |
$1,848,846 |
|
|
$1,508,125 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income |
|
$ 35,840 |
|
|
$ 27,783 |
|
Net interest spread |
|
|
3.67% |
|
|
3.33% |
Net interest margin |
|
|
4.04% |
|
|
3.83% |
(1) Includes loans held for
sale. |
(2) Loans placed on nonaccrual
status are included in average balances. Net loan fees and late
charges included in interest income on loans totaled $1.2
million and $872 thousand for the six months ended June 30,
2010 and 2009, respectively. |
(3) Interest and fees on loans
and investments exclude tax equivalent adjustments. |
Eagle Bancorp,
Inc. |
|
|
|
|
|
|
|
|
Statements of Income and
Highlights (Quarterly Trends) |
|
|
|
|
|
|
|
|
(in thousands, except per share
data) (Unaudited) |
|
|
|
|
|
|
|
|
|
Three Months
Ended |
|
|
|
|
|
|
|
|
|
Income Statements: |
June 30, 2010 |
March 31, 2010 |
Dec. 31,
2009 |
Sept. 30,
2009 |
June 30, 2009 |
March 31, 2009 |
Dec. 31, 2008 |
Sept. 30, 2008 |
Total interest income |
$ 23,689 |
$ 22,508 |
$ 22,413 |
$ 21,426 |
$ 20,432 |
$ 20,067 |
$ 20,904 |
$ 16,744 |
Total interest expense |
5,072 |
5,285 |
5,685 |
6,408 |
6,112 |
6,604 |
7,680 |
5,829 |
Net interest income |
18,617 |
17,223 |
16,728 |
15,018 |
14,320 |
13,463 |
13,224 |
10,915 |
Provision for credit losses |
2,101 |
1,689 |
2,528 |
1,857 |
1,718 |
1,566 |
1,450 |
995 |
Net interest income after provision for
credit losses |
16,516 |
15,534 |
14,200 |
13,161 |
12,602 |
11,897 |
11,774 |
9,920 |
Noninterest income (before investment
gains or losses) |
1,437 |
1,222 |
1,275 |
1,486 |
1,698 |
1,300 |
1,313 |
1,150 |
Investment gains (losses) |
573 |
-- |
1 |
-- |
1,405 |
132 |
(52) |
45 |
Total noninterest income |
2,010 |
1,222 |
1,276 |
1,486 |
3,103 |
1,432 |
1,261 |
1,195 |
Salaries and employee benefits |
5,969 |
5,675 |
5,412 |
5,128 |
5,044 |
5,305 |
5,270 |
4,172 |
Premises and equipment |
2,612 |
2,092 |
1,843 |
1,798 |
1,827 |
1,875 |
1,861 |
1,380 |
Marketing and advertising |
281 |
247 |
313 |
228 |
242 |
315 |
656 |
125 |
Other expenses |
4,275 |
3,449 |
3,058 |
3,126 |
4,460 |
2,798 |
2,720 |
1,893 |
Total noninterest expense |
13,137 |
11,463 |
10,627 |
10,280 |
11,573 |
10,293 |
10,507 |
7,570 |
Income before income tax expense |
5,389 |
5,293 |
4,849 |
4,367 |
4,132 |
3,036 |
2,528 |
3,545 |
Income tax expense |
1,942 |
1,902 |
1,898 |
1,625 |
1,481 |
961 |
867 |
1,284 |
Net income |
3,447 |
3,391 |
2,951 |
2,742 |
2,651 |
2,075 |
1,661 |
2,261 |
Preferred stock dividends and discount
accretion |
324 |
320 |
540 |
595 |
589 |
583 |
177 |
-- |
Net Income Available to Common
Shareholders |
$ 3,123 |
$ 3,071 |
$ 2,411 |
$ 2,147 |
$ 2,062 |
$ 1,492 |
$ 1,484 |
$ 2,261 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Per Share Data (1): |
|
|
|
|
|
|
|
|
Earnings per weighted average common share,
basic |
$ 0.16 |
$ 0.16 |
$ 0.12 |
$ 0.16 |
$ 0.16 |
$ 0.12 |
$ 0.12 |
$ 0.20 |
Earnings per weighted average common share,
diluted |
$ 0.15 |
$ 0.15 |
$ 0.12 |
$ 0.15 |
$ 0.16 |
$ 0.12 |
$ 0.12 |
$ 0.19 |
Weighted average common shares outstanding,
basic |
19,858,294 |
19,609,197 |
19,521,574 |
13,504,539 |
12,750,496 |
12,742,725 |
12,703,425 |
11,482,401 |
Weighted average common shares outstanding,
diluted |
20,288,992 |
19,951,246 |
19,779,726 |
13,794,355 |
12,887,964 |
12,793,974 |
12,777,262 |
11,576,095 |
Actual shares outstanding |
19,652,918 |
19,633,763 |
19,534,226 |
19,505,339 |
12,763,940 |
12,745,118 |
12,714,355 |
12,686,128 |
Book value per common share at period
end |
$ 8.87 |
$ 8.66 |
$ 8.48 |
$ 8.46 |
$ 8.52 |
$ 8.49 |
$ 8.34 |
$ 7.93 |
|
|
|
|
|
|
|
|
|
Performance Ratios
(annualized): |
|
|
|
|
|
|
|
|
Return on average assets |
0.73% |
0.76% |
0.68% |
0.67% |
0.70% |
0.56% |
0.46% |
0.82% |
Return on average common equity |
7.30% |
7.40% |
5.79% |
7.62% |
7.71% |
5.87% |
5.21% |
9.97% |
Net interest margin |
4.10% |
3.98% |
3.96% |
3.77% |
3.91% |
3.76% |
3.74% |
4.11% |
Efficiency ratio (2) |
63.69% |
62.15% |
59.02% |
62.29% |
66.42% |
69.10% |
72.54% |
62.51% |
|
|
|
|
|
|
|
|
|
Other Ratios: |
|
|
|
|
|
|
|
|
Allowance for credit losses to total
loans |
1.45% |
1.47% |
1.47% |
1.51% |
1.50% |
1.50% |
1.45% |
1.46% |
Nonperforming loans to total loans |
1.68% |
1.47% |
1.57% |
1.73% |
2.36% |
3.67% |
2.01% |
1.79% |
Nonperforming assets to total assets |
1.49% |
1.36% |
1.50% |
1.63% |
2.14% |
3.33% |
1.76% |
1.45% |
Net charge-offs (annualized) to average
loans |
0.38% |
0.36% |
0.54% |
0.48% |
0.35% |
0.29% |
0.05% |
0.27% |
Tier 1 leverage ratio |
9.83% |
10.00% |
10.29% |
11.68% |
8.96% |
9.06% |
9.22% |
8.79% |
Tier 1 risk based capital ratio |
11.32% |
11.77% |
11.82% |
13.65% |
9.91% |
10.26% |
9.78% |
7.55% |
Total risk based capital ratio |
13.03% |
13.50% |
13.57% |
15.57% |
12.05% |
12.43% |
11.93% |
9.75% |
|
|
|
|
|
|
|
|
|
Average Balances (in
thousands): |
|
|
|
|
|
|
|
|
Total assets |
$ 1,881,761 |
$ 1,815,383 |
$ 1,732,168 |
$ 1,631,200 |
$ 1,518,979 |
$ 1,497,036 |
$ 1,451,295 |
$ 1,098,362 |
Total earning assets |
$ 1,821,943 |
$ 1,753,989 |
$ 1,677,573 |
$ 1,579,603 |
$ 1,468,296 |
$ 1,453,503 |
$ 1,406,421 |
$ 1,057,543 |
Total loans (3) |
$ 1,489,325 |
$ 1,406,904 |
$ 1,352,076 |
$ 1,317,685 |
$ 1,297,634 |
$ 1,281,925 |
$ 1,218,067 |
$ 922,224 |
Total deposits |
$ 1,529,498 |
$ 1,472,061 |
$ 1,381,305 |
$ 1,321,405 |
$ 1,164,978 |
$ 1,157,227 |
$ 1,152,376 |
$ 863,930 |
Total borrowings |
$ 151,240 |
$ 146,638 |
$ 141,406 |
$ 146,819 |
$ 199,479 |
$ 190,065 |
$ 177,955 |
$ 138,374 |
Total stockholders' equity |
$ 194,866 |
$ 191,393 |
$ 202,004 |
$ 153,171 |
$ 145,492 |
$ 141,341 |
$ 113,245 |
$ 90,223 |
(1) Per share amounts and the
number of outstanding shares have been adjusted to give effect to
the 10% common stock dividend paid on October 1, 2008. |
(2) Computed by dividing
noninterest expense by the sum of net interest income and
noninterest income. |
(3) Includes loans held for
sale. |
CONTACT: Eagle Bancorp, Inc.
Michael T. Flynn
301.986.1800
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