Eagle Bancorp, Inc. (the "Company") (Nasdaq:EGBN), the parent
company of EagleBank, today announced net income of $4.8 million
for the quarter ended September 30, 2010, a 74% increase over the
$2.7 million for the quarter ended September 30, 2009. Net income
available to common shareholders increased 107% to $4.4 million
($0.22 per basic and diluted common share) for the quarter ended
September 30, 2010, compared to $2.1 million ($0.16 per basic
common share and $0.15 per diluted common share) for the quarter
ended September 30, 2009.
For the nine months ended September 30, 2010, the Company's net
income was $11.6 million, a 55% increase over the $7.5 million for
the nine months ended September 30, 2009. Net income available to
common shareholders increased 87% to $10.6 million ($0.54 per basic
common share and $0.53 per diluted common share), as compared to
$5.7 million ($0.44 per basic common share and $0.43 per diluted
common share) for the same nine month period in 2009.
"We are extremely pleased to report continuing trends of strong
earnings and balance sheet growth through the third quarter of
2010. These results reflect substantial revenue growth, continued
growth in loans and core deposits and continued solid asset
quality," noted Ronald D. Paul, Chairman, President and Chief
Executive Officer of Eagle Bancorp, Inc. "In contrast to many
businesses and financial institutions which are struggling with
weakness in the general economy, Eagle Bancorp continues to perform
very well. Third quarter earnings mark seven successive quarters of
record 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 $214 million, or
16%, growth rate in total loans, excluding loans held for sale,
over the past twelve months. Over the same period, total deposits
increased $314 million, or 24%, which includes the addition of many
new and expanded relationships to our client base. Recently
reported data from the FDIC shows that EagleBank has gained deposit
market share in both Montgomery County, Maryland and Washington
D.C. in the twelve months ended June 30, 2010," noted Mr. Paul.
"Additionally, we see great opportunities for EagleBank in the
Washington D.C. and Northern Virginia markets. Our recently
announced Gallery Place and Rosslyn branch offices will be
EagleBank's newest banking offices in the District of Columbia
and Northern Virginia. Both locations are mixed commercial, retail
and residential neighborhoods that we believe will be receptive to
the banking, insurance brokerage and other financial services that
we offer."
A continuing trend of quarterly growth in both average loans and
deposits together with a stable and favorable net interest margin
were the key drivers of increases in revenue and net income in both
the third quarter and nine month results. Average loans, including
loans held for sale, increased 18% and 14% for the three and nine
months ended September 30, 2010, respectively, over the comparable
prior year period. Average deposits increased 22% and 27% for the
three and nine months ended September 30, 2010, respectively, due
substantially to growth in money market and non-interest bearing
demand accounts.
At September 30, 2010, total assets reached a milestone and were
$2.01 billion compared to $1.68 billion at September 30, 2009, a
19% increase. Total deposits were $1.65 billion at September 30,
2010, a 24% increase over deposits of $1.33 billion at September
30, 2009, while total loans, excluding loans held for sale,
increased to $1.53 billion at September 30, 2010, from $1.32
billion at September 30, 2009, a 16% increase. The investment
portfolio, as of September 30, 2010, totaled $259 million, a 24%
increase over the $210 million balance at September 30, 2009.
The investment portfolio valuation continues to show substantial
unrealized gains, $4.8 million net of tax, at September 30, 2010,
as compared to $4.0 million net of tax, at June 30, 2010. Total
borrowed funds increased to $148.4 million at September 30, 2010
from $138.6 million at September 30, 2009, a 7% increase, resulting
from higher demand for retail customer repurchase
agreements. Excluding growth in customer repurchase agreements
which are considered stable and core funding, alternative funding
sources declined by $10 million. Total stockholders' equity
increased to $202.3 million at September 30, 2010. The Company's
capital position remains substantially in excess of regulatory well
capitalized measures. In addition, the tangible common equity
ratio (tangible common equity to tangible assets) is 8.77% at
September 30, 2010.
Net interest income increased 31% for the three months ended
September 30, 2010 over the same period in 2009, as the Company
posted a strong net interest margin of 4.10% for the third quarter
of 2010, unchanged from the three months ended June 30, 2010 and 33
basis points higher than the 3.77% achieved in the third
quarter of 2009. The higher margin in the third 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. The Company's net interest margin continues
to compare favorably to peer banking companies.
Average loans, including loans held for sale, increased $64
million (4%) and average deposits increased $81 million (5%) during
the three months ended September 30, 2010, as compared to the three
months ended June 30, 2010. The increase in average loans in the
third quarter of 2010 as compared to the second quarter of 2010 is
primarily attributable to growth in income-producing commercial
real estate loans, commercial and industrial loans, and to
substantially higher average loans held for sale, due to expansion
of the residential mortgage origination division. Increases in
average deposits in the third quarter of 2010, as compared to the
second quarter of 2010, is attributable to growth in both
noninterest bearing demand deposits and money market
accounts.
At September 30, 2010, the Company's level of nonperforming
assets was $29.2 million, representing 1.46% of total assets,
compared to $28.9 million of nonperforming assets, or 1.49% of
total assets, at June 30, 2010 and $27.4 million, or 1.63% of total
assets, at September 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 September 30,
2010, is adequate to absorb potential credit losses within the loan
portfolio at that date. Included in nonperforming assets at
September 30, 2010 were $4.6 million of other real estate owned
("OREO") as compared to $3.6 million at June 30, 2010 and $4.6
million at September 30, 2009.
Analysis of the three months ended September 30, 2010
compared to 2009
For the three months ended September 30, 2010, the Company
reported an annualized return on average assets (ROAA) of 0.96% as
compared to 0.67% for the three months ended September 30, 2009.
The annualized return on average common equity (ROAE) for the most
recent quarter was 9.93%, as compared to 7.85% for the three months
ended September 30, 2009. The increase in these ratios is due
primarily to a higher net interest margin in the current period
versus 2009.
Net interest income increased 31% for the three months ended
September 30, 2010 over the same period in 2009, resulting from a
33 basis point increase in the net interest margin over the past
twelve months and strong balance sheet growth. For the three months
ended September 30, 2010, the net interest margin was 4.10% as
compared to 3.77% for the three months ended September 30,
2009.
The provision for credit losses was $2.0 million for the three
months ended September 30, 2010 as compared to $1.9 million for the
three months ended September 30, 2009. At September 30, 2010,
the allowance for credit losses represented 1.45% of loans
outstanding, as compared to 1.51% at September 30, 2009 and 1.45%
at June 30, 2010. The higher provisioning in the third quarter of
2010, as compared to the third quarter of 2009, is primarily
attributable to loan growth. The six basis point decline in
the reserve year over year is based upon the heavier weighting of
our consistently low levels of historical losses in the reserve
methodology, beginning in the second quarter of 2010. Net
charge-offs of $1.5 million represented 0.39% of average loans,
excluding loans held for sale, in the third quarter of 2010,
as compared to $1.6 million or 0.48% of average
loans, excluding loans held for sale, in the third quarter of 2009.
Net charge-offs in the third quarter of 2010 were attributable to
charge-offs in consumer loans ($11 thousand), commercial real
estate loans ($177 thousand), commercial and industrial loans ($254
thousand), commercial real estate loans – owner occupied ($322
thousand), construction loans ($693 thousand), and the unguaranteed
portion of SBA loans ($7 thousand).
At September 30, 2010, the allowance for credit losses
represented 90% of nonperforming loans as compared to 86% at June
30, 2010 and 88% at September 30, 2009.
Noninterest income for the three months ended September 30, 2010
increased to $2.3 million from $1.5 million for the three months
ended September 30, 2009, a 57% increase. This increase was due
primarily to $260 thousand in gains realized on the sale of
investment securities and an increase of $447 thousand in gains
realized on the sale of SBA and residential loans. Gains on the
sale of SBA loans decreased $62 thousand while gains on the sales
of residential mortgages increased $509 thousand. With the late
second quarter expansion of the residential mortgage origination
division, the Company realized higher amounts of noninterest income
from the sale of residential mortgage loans for the three months
ended September 30, 2010. Investment gains realized in the third
quarter of 2010 were the result of asset/liability management
decisions to sell a portion of mortgage-backed securities
that exhibited substantial prepayment risk. Also contributing to
the increase in noninterest income in 2010 compared to 2009 was an
increase of $87 thousand in service fees and a $63 thousand
increase in other income.
The efficiency ratio, which measures the ratio of noninterest
expense to total revenue, was 58.66% for the third quarter of 2010,
as compared to 62.29% for the third quarter of 2009, as the Company
enhanced its productivity. As compared to the second quarter of
2010, the third quarter efficiency ratio was lower (from 63.69% to
58.66%) due to increases in net interest income resulting from loan
growth and from lower expenses for premises and equipment due to
the absence of a one-time expense related to the acceleration of a
lease obligation for a branch closed in the second quarter of
2010. Noninterest expenses were $12.9 million for the three
months ended September 30, 2010, as compared to $10.3 million for
the three months ended September 30, 2009, a 26%
increase. Cost increases were incurred for salaries and
benefits of $1.4 million due to additional residential mortgage
staff. Premises and equipment expenses were $223 thousand
higher due primarily to the acceleration of the
amortization of the leasehold improvements for the closure of the
1725 Eye Street NW branch in Washington D.C. Other expenses
increased by $670 thousand with $174 thousand due to the
operating and disposition costs of OREO properties and marketing
and advertising cost increases of $163 thousand. FDIC insurance
premiums were $142 thousand higher due to deposit growth of $314
million compared to the third quarter of 2009.
Analysis of the nine months ended September 30, 2010
compared to 2009
For the nine months ended September 30, 2010, the Company
reported an annualized ROAA of 0.82% as compared to 0.64% for the
nine months of 2009, while the annualized ROAE was 8.24% in 2010,
as compared to 7.02% for the same nine month period in 2009. The
increase in these ratios was due primarily to an increase in the
net interest margin over the past twelve months, resulting
primarily from lower funding costs.
For the first nine months of 2010, net interest income increased
30% over the same period for 2009. Average loans, including loans
held for sale, increased 14% and average deposits increased by
27%. The net interest margin was 4.06% for the nine months of
2010, as compared to 3.81% for the nine months of 2009. The Company
has been able to maintain its loan yields in 2010 close to 2009
levels as a result of its loan pricing practices and has been able
to reduce its funding costs, while maintaining a favorable deposit
mix as a result of sales efforts focused on increasing
and deepening client relationships.
The provision for credit losses was $5.8 million for the first
nine months of 2010 as compared to $5.1 million in 2009. The higher
provisioning in 2010 as compared to 2009 is attributable to both
higher amounts of loan growth in the first nine months of 2010
compared to 2009, and to slightly higher net charge-offs in 2010 as
compared to 2009, offset by a change in the reserve calculation to
include the heavier weighting of our consistently low levels of
historical losses in the reserve methodology, beginning in the
second quarter of 2010. For the nine months ended September 30,
2010, net charge-offs totaled $4.1 million (0.38% of average loans)
compared to $3.6 million (0.37% of average loans) for the nine
months ended September 30, 2009. Net charge-offs in the nine months
ended September 30, 2010 were attributable to charge-offs in
consumer loans ($20 thousand), commercial real estate loans –
income producing ($49 thousand), commercial real estate loans ($177
thousand), commercial real estate loans – owner occupied ($322
thousand), commercial and industrial loans ($1.2 million),
construction loans ($1.7 million), and the unguaranteed portion of
SBA loans ($659 thousand).
Noninterest income for the nine months of 2010 was $5.6 million
compared to $6.0 million in 2009, a decrease of 8%. This decrease
was due primarily to a $704 thousand decline in gains on the sale
of investment securities. Investment gains realized in both the
first nine 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, to mitigate potential
extension risk in longer-term mortgage-backed securities, and to
mitigate prepayment risk in mortgage-backed securities. Excluding
investment securities gains, total noninterest income was $4.7
million for the first nine months of 2010 as compared to $4.5
million for the same period in 2009, the increase being attributed
to increases in service charges and to increased loan fees.
Noninterest expenses were $37.5 million for the first nine
months of 2010, as compared to $32.1 million for 2009, a 17%
increase. The increase is primarily due to salaries, incentive
compensation and benefits increases of $2.7 million from the
expansion of the residential mortgage division, premises and
equipment expense increases of $1.2 million and other
expense increases of $1.4 million. Other expense increases
include $720 thousand due to the operating and disposition
costs of OREO properties; legal, accounting and professional fees
of $140 thousand and data processing costs of $175 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, and
$232 thousand due to the acceleration of the amortization of the
leasehold improvements for the closure of the 1725 Eye Street NW
branch in September 2010. The higher costs were somewhat offset by
a reduction in FDIC insurance of $438 thousand, as a result of the
absence of a special assessment of approximately $723 thousand
recorded in the second quarter of 2009. For the first nine months
of 2010, the efficiency ratio was 61.42% as compared to 65.84% for
the nine months ended September 30, 2009. Cost control remains a
key operating objective of the Company.
At September 30, 2010, the Company had a total risk based
capital ratio of 12.66%, a Tier 1 risk based capital ratio of
10.88%, and a Tier 1 leverage ratio of 9.66%, all
measures substantially above regulatory well capitalized
measures.
The financial information which follows provides more detail on
the Company's financial performance for the nine and three months
ended September 30, 2010 as compared to the nine and three months
ended September 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 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 conducts full service
commercial banking through twelve 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 third quarter 2010 financial results
on Thursday, October 21, 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 15848421, 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, 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. |
|
|
|
|
Financial Highlights |
|
|
|
|
(in thousands, except per share data) |
|
|
|
Nine Months
Ended September 30, |
Three Months
Ended September 30, |
|
2010 |
2009 |
2010 |
2009 |
Income
Statements: |
(Unaudited) |
(Unaudited) |
(Unaudited) |
(Unaudited) |
Total interest income |
$ 70,618 |
$ 61,925 |
$ 24,421 |
$ 21,426 |
Total interest expense |
15,079 |
19,124 |
4,722 |
6,408 |
Net interest income |
55,539 |
42,801 |
19,699 |
15,018 |
Provision for credit losses |
5,752 |
5,141 |
1,962 |
1,857 |
Net interest income after provision for
credit losses |
49,787 |
37,660 |
17,737 |
13,161 |
Noninterest income (before investment
gains) |
4,732 |
4,484 |
2,073 |
1,486 |
Investment gains |
833 |
1,537 |
260 |
-- |
Total noninterest income |
5,565 |
6,021 |
2,333 |
1,486 |
Total noninterest expense |
37,529 |
32,146 |
12,929 |
10,280 |
Income before income tax expense |
17,823 |
11,535 |
7,141 |
4,367 |
Income tax expense |
6,219 |
4,067 |
2,375 |
1,625 |
Net income |
11,604 |
7,468 |
4,766 |
2,742 |
Preferred stock dividends and discount
accretion |
971 |
1,767 |
327 |
595 |
Net Income Available to Common
Shareholders |
$ 10,633 |
$ 5,701 |
$ 4,439 |
$ 2,147 |
|
|
|
|
|
Per Share Data: |
|
|
|
|
Earnings per weighted average common share,
basic |
$ 0.54 |
$ 0.44 |
$ 0.22 |
$ 0.16 |
Earnings per weighted average common share,
diluted |
$ 0.53 |
$ 0.43 |
$ 0.22 |
$ 0.15 |
Weighted average common shares outstanding,
basic |
19,636,978 |
12,999,331 |
19,874,596 |
13,504,539 |
Weighted average common shares outstanding,
diluted |
20,009,713 |
13,112,736 |
20,230,063 |
13,794,355 |
Actual shares outstanding |
19,671,797 |
19,505,339 |
19,671,797 |
19,505,339 |
Book value per common share at period
end |
$ 9.14 |
$ 8.46 |
$ 9.14 |
$ 8.46 |
Tangible book value per common share at
period end (1) |
$ 8.92 |
$ 8.23 |
$ 8.92 |
$ 8.23 |
|
|
|
|
|
Performance Ratios
(annualized): |
|
|
|
|
Return on average assets |
0.82% |
0.64% |
0.96% |
0.67% |
Return on average common equity |
8.24% |
7.02% |
9.93% |
7.85% |
Net interest margin |
4.06% |
3.81% |
4.10% |
3.77% |
Efficiency ratio (2) |
61.42% |
65.84% |
58.68% |
62.29% |
|
|
|
|
|
Other Ratios: |
|
|
|
|
Allowance for credit losses to total
loans |
1.45% |
1.51% |
1.45% |
1.51% |
Allowance for credit losses to total
nonperforming loans |
90.18% |
87.50% |
90.18% |
87.50% |
Nonperforming loans to total loans |
1.61% |
1.73% |
1.61% |
1.73% |
Nonperforming assets to total assets |
1.46% |
1.63% |
1.46% |
1.63% |
Net charge-offs (annualized) to average
loans |
0.38% |
0.37% |
0.39% |
0.48% |
Common equity to total assets |
8.93% |
9.71% |
8.93% |
9.71% |
Tier 1 leverage ratio |
9.66% |
11.68% |
9.66% |
11.68% |
Tier 1 risk based capital ratio |
10.88% |
13.65% |
10.88% |
13.65% |
Total risk based capital ratio |
12.66% |
15.57% |
12.66% |
15.57% |
Tangible common equity to tangible assets
(1) |
8.77% |
9.56% |
8.77% |
9.56% |
|
|
|
|
|
Loan Balances -Period End (in
thousands): |
|
|
|
|
Commercial and Industrial |
$ 388,401 |
$ 327,245 |
$ 388,401 |
$ 327,245 |
Commercial real estate -- owner
occupied |
$ 210,053 |
$ 189,333 |
$ 210,053 |
$ 189,333 |
Commercial real estate - income
producing |
$ 573,798 |
$ 451,195 |
$ 573,798 |
$ 451,195 |
1-4 Family mortgage |
$ 11,529 |
$ 9,044 |
$ 11,529 |
$ 9,044 |
Construction - commercial and
residential |
$ 251,869 |
$ 246,439 |
$ 251,869 |
$ 246,439 |
Home equity |
$ 88,200 |
$ 87,213 |
$ 88,200 |
$ 87,213 |
Other consumer |
$ 7,096 |
$ 6,619 |
$ 7,096 |
$ 6,619 |
|
|
|
|
|
Average Balances (in
thousands): |
|
|
|
|
Total assets |
$ 1,887,932 |
$ 1,549,600 |
$ 1,964,827 |
$ 1,631,200 |
Total earning assets |
$ 1,828,508 |
$ 1,500,928 |
$ 1,907,900 |
$ 1,579,603 |
Total loans (3) |
$ 1,483,697 |
$ 1,299,212 |
$ 1,553,254 |
$ 1,317,685 |
Total deposits |
$ 1,537,960 |
$ 1,215,138 |
$ 1,610,813 |
$ 1,321,405 |
Total borrowings |
$ 148,197 |
$ 178,628 |
$ 146,711 |
$ 146,819 |
Total stockholders' equity |
$ 195,638 |
$ 146,711 |
$ 200,556 |
$ 153,171 |
|
|
|
|
|
|
|
|
|
|
(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. 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) |
|
|
|
|
|
|
Nine Months
Ended September 30, |
|
2010 |
2009 |
|
(Unaudited) |
(Unaudited) |
Common stockholders' equity |
$ 179,764 |
$ 164,975 |
Less: Intangible assets |
(4,242) |
(4,447) |
Tangible common equity |
$ 175,522 |
$ 160,528 |
|
|
|
Book value per common share |
$ 9.14 |
$ 8.46 |
Less: Intangible book value per common
share |
(0.22) |
(0.23) |
Tangible book value per common
share |
$ 8.92 |
$ 8.23 |
|
|
|
Total assets |
$2,006,146 |
$1,682,773 |
Less: intangible assets |
(4,242) |
(4,447) |
Tangible assets |
$2,001,904 |
$1,678,326 |
|
|
|
Tangible common equity
ratio |
8.77% |
9.56% |
|
|
|
|
|
|
|
|
Eagle Bancorp, Inc. |
|
|
|
Statements of Financial Condition |
|
|
|
(dollars in thousands) |
|
|
|
|
September 30, 2010
(Unaudited) |
December 31, 2009
(Audited) |
September 30, 2009
(Unaudited) |
Assets |
|
|
|
Cash and due from banks |
$ 19,734 |
$ 21,955 |
$ 21,253 |
Federal funds sold |
72,101 |
88,248 |
83,002 |
Interest bearing deposits with banks and
other short-term investments |
7,577 |
7,484 |
7,433 |
Investment securities available for sale, at
fair value |
258,902 |
235,227 |
209,599 |
Federal Reserve and Federal Home Loan Bank
stock |
9,774 |
10,417 |
10,053 |
Loans held for sale |
70,889 |
1,550 |
1,068 |
Loans |
1,530,946 |
1,399,311 |
1,317,089 |
Less allowance for credit losses |
(22,240) |
(20,619) |
(19,929) |
Loans, net |
1,508,706 |
1,378,692 |
1,297,160 |
Premises and equipment, net |
8,658 |
9,253 |
9,246 |
Deferred income taxes |
12,350 |
12,455 |
11,011 |
Bank owned life insurance |
13,237 |
12,912 |
12,797 |
Intangible assets, net |
4,242 |
4,379 |
4,447 |
Other real estate owned |
4,581 |
5,106 |
4,581 |
Other assets |
15,395 |
17,826 |
11,123 |
Total Assets |
$ 2,006,146 |
$ 1,805,504 |
$ 1,682,773 |
|
|
|
|
Liabilities |
|
|
|
Deposits: |
|
|
|
Noninterest bearing demand |
$ 380,167 |
$ 307,959 |
$ 233,994 |
Interest bearing transaction |
62,722 |
59,720 |
55,490 |
Savings and money market |
693,381 |
582,854 |
475,138 |
Time, $100,000 or more |
324,399 |
296,199 |
299,171 |
Other time |
185,422 |
213,542 |
268,186 |
Total deposits |
1,646,091 |
1,460,274 |
1,331,979 |
Customer repurchase agreements and federal
funds purchased |
99,147 |
90,790 |
79,301 |
Other short-term borrowings |
-- |
10,000 |
30,000 |
Long-term borrowings |
49,300 |
49,300 |
29,300 |
Other liabilities |
9,307 |
6,819 |
10,677 |
Total liabilities |
1,803,845 |
1,617,183 |
1,481,257 |
|
|
|
|
Stockholders' Equity |
|
|
|
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 $645, $570 and $696 respectively,
net |
22,537 |
22,612 |
37,487 |
Common stock, par value $.01 per share;
shares authorized 50,000,000, shares issued and outstanding
19,671,797, 19,534,226 and 19,505,339, respectively |
197 |
195 |
195 |
Warrants |
946 |
946 |
946 |
Additional paid in capital |
129,958 |
129,211 |
128,977 |
Retained earnings |
43,833 |
33,024 |
30,756 |
Accumulated other comprehensive
income |
4,830 |
2,333 |
3,155 |
Total stockholders' equity |
202,301 |
188,321 |
201,516 |
Total Liabilities and Stockholders'
Equity |
$ 2,006,146 |
$ 1,805,504 |
$ 1,682,773 |
|
|
|
|
|
|
|
|
See notes to consolidated financial
statements. |
|
|
|
|
|
EAGLE BANCORP,
INC. |
Consolidated Statements of
Operations |
For the Nine and Three Month
Periods Ended September 30, 2010 and 2009 (Unaudited) |
(dollars in thousands, except per
share data) |
|
|
|
|
|
|
|
|
|
Nine Months
Ended September 30, |
Three Months
Ended September 30, |
Interest Income |
2010 |
2009 |
2010 |
2009 |
Interest and fees on loans |
$ 64,995 |
$ 56,427 |
$ 22,655 |
$ 19,744 |
Interest and dividends on investment
securities |
5,412 |
5,391 |
1,697 |
1,623 |
Interest on balances with other banks and
short-term investments |
83 |
56 |
24 |
19 |
Interest on federal funds sold |
128 |
51 |
45 |
40 |
Total interest income |
70,618 |
61,925 |
24,421 |
21,426 |
Interest Expense |
|
|
|
|
Interest on deposits |
12,860 |
16,090 |
4,005 |
5,481 |
Interest on customer repurchase
agreements and federal funds purchased |
545 |
774 |
167 |
200 |
Interest on short-term borrowings |
27 |
428 |
-- |
270 |
Interest on long-term borrowings |
1,647 |
1,832 |
550 |
457 |
Total interest expense |
15,079 |
19,124 |
4,722 |
6,408 |
Net Interest
Income |
55,539 |
42,801 |
19,699 |
15,018 |
Provision for Credit
Losses |
5,752 |
5,141 |
1,962 |
1,857 |
Net Interest Income After Provision
For Credit Losses |
49,787 |
37,660 |
17,737 |
13,161 |
|
|
|
|
|
Noninterest Income |
|
|
|
|
Service charges on deposits |
2,300 |
2,182 |
814 |
727 |
Gain on sale of loans |
990 |
950 |
739 |
292 |
Gain on sale of investment
securities |
833 |
1,537 |
260 |
-- |
Increase in the cash surrender value
of bank owned life insurance |
325 |
348 |
108 |
118 |
Other income |
1,117 |
1,004 |
412 |
349 |
Total noninterest income |
5,565 |
6,021 |
2,333 |
1,486 |
Noninterest Expense |
|
|
|
|
Salaries and employee benefits |
18,193 |
15,477 |
6,549 |
5,128 |
Premises and equipment expenses |
6,725 |
5,500 |
2,021 |
1,798 |
Marketing and advertising |
919 |
785 |
391 |
228 |
Data processing |
1,955 |
1,780 |
697 |
658 |
Legal, accounting and professional
fees |
2,181 |
2,041 |
655 |
664 |
FDIC insurance |
2,027 |
2,465 |
692 |
550 |
Other expenses |
5,529 |
4,098 |
1,924 |
1,254 |
Total noninterest expense |
37,529 |
32,146 |
12,929 |
10,280 |
Income Before Income Tax
Expense |
17,823 |
11,535 |
7,141 |
4,367 |
Income Tax Expense |
6,219 |
4,067 |
2,375 |
1,625 |
Net Income |
11,604 |
7,468 |
4,766 |
2,742 |
Preferred Stock Dividends and
Discount Accretion |
971 |
1,767 |
327 |
595 |
Net Income Available to Common
Shareholders |
$ 10,633 |
$ 5,701 |
$ 4,439 |
$ 2,147 |
|
|
|
|
|
Earnings Per Common
Share |
|
|
|
|
Basic |
$ 0.54 |
$ 0.44 |
$ 0.22 |
$ 0.16 |
Diluted |
$ 0.53 |
$ 0.43 |
$ 0.22 |
$ 0.15 |
|
|
EAGLE BANCORP,
INC. |
Average Balances, Interest
Yields And Rates, And Net Interest Margin |
(dollars in thousands) |
|
|
|
|
|
|
|
|
Three Months Ended
September 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 |
$ 7,926 |
$ 24 |
1.20% |
$ 2,989 |
$ 19 |
2.52% |
Loans (1) (2) (3) |
1,553,254 |
22,655 |
5.79% |
1,317,685 |
19,744 |
5.94% |
Investment securities available for sale
(3) |
266,498 |
1,697 |
2.53% |
186,612 |
1,623 |
3.45% |
Federal funds sold |
80,222 |
45 |
0.22% |
72,317 |
40 |
0.22% |
Total interest earning assets |
1,907,900 |
24,421 |
5.08% |
1,579,603 |
21,426 |
5.38% |
|
|
|
|
|
|
|
Total noninterest earning assets |
78,627 |
|
|
71,251 |
|
|
Less: allowance for credit losses |
21,700 |
|
|
19,654 |
|
|
Total noninterest earning assets |
56,927 |
|
|
51,597 |
|
|
TOTAL ASSETS |
$1,964,827 |
|
|
$1,631,200 |
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS'
EQUITY |
|
|
|
|
|
|
Interest bearing liabilities: |
|
|
|
|
|
|
Interest bearing transaction |
$ 55,839 |
$ 54 |
0.38% |
$ 54,390 |
$ 44 |
0.32% |
Savings and money market |
705,751 |
1,828 |
1.03% |
457,277 |
1,885 |
1.64% |
Time deposits |
501,679 |
2,123 |
1.68% |
576,978 |
3,552 |
2.44% |
Total interest bearing deposits |
1,263,269 |
4,005 |
1.26% |
1,088,645 |
5,481 |
2.00% |
Customer repurchase agreements and federal
funds purchased |
97,411 |
167 |
0.68% |
85,103 |
200 |
0.93% |
Other short-term borrowings |
-- |
-- |
0.00% |
30,000 |
270 |
3.57% |
Long-term borrowings |
49,300 |
550 |
4.43% |
31,716 |
457 |
5.72% |
Total interest bearing liabilities |
1,409,980 |
4,722 |
1.33% |
1,235,464 |
6,408 |
2.06% |
|
|
|
|
|
|
|
Noninterest bearing liabilities: |
|
|
|
|
|
|
Noninterest bearing demand |
347,544 |
|
|
232,760 |
|
|
Other liabilities |
6,747 |
|
|
9,805 |
|
|
Total noninterest bearing
liabilities |
354,291 |
|
|
242,565 |
|
|
|
|
|
|
|
|
|
Stockholders' equity |
200,556 |
|
|
153,171 |
|
|
TOTAL LIABILITIES AND STOCKHOLDERS'
EQUITY |
$1,964,827 |
|
|
$1,631,200 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income |
|
$ 19,699 |
|
|
$ 15,018 |
|
Net interest spread |
|
|
3.75% |
|
|
3.32% |
Net interest margin |
|
|
4.10% |
|
|
3.77% |
|
|
|
|
|
|
|
(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 $601 thousand
and $451 thousand for the three months ended September 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) |
|
|
|
|
|
|
|
|
Nine Months Ended
September 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 |
$ 7,724 |
$ 83 |
1.44% |
$ 2,734 |
$ 56 |
2.74% |
Loans (1) (2) (3) |
1,483,697 |
64,995 |
5.86% |
1,299,212 |
56,427 |
5.81% |
Investment securities available for sale
(3) |
260,605 |
5,412 |
2.78% |
168,540 |
5,391 |
4.28% |
Federal funds sold |
76,482 |
128 |
0.22% |
30,442 |
51 |
0.22% |
Total interest earning assets |
1,828,508 |
70,618 |
5.16% |
1,500,928 |
61,925 |
5.52% |
|
|
|
|
|
|
|
Total noninterest earning assets |
80,724 |
|
|
67,804 |
|
|
Less: allowance for credit losses |
21,300 |
|
|
19,132 |
|
|
Total noninterest earning assets |
59,424 |
|
|
48,672 |
|
|
TOTAL ASSETS |
$1,887,932 |
|
|
$1,549,600 |
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS'
EQUITY |
|
|
|
|
|
|
Interest bearing liabilities: |
|
|
|
|
|
|
Interest bearing transaction |
$ 53,296 |
$ 140 |
0.35% |
$ 50,954 |
$ 117 |
0.31% |
Savings and money market |
668,688 |
5,959 |
1.19% |
359,657 |
4,298 |
1.60% |
Time deposits |
501,478 |
6,761 |
1.80% |
580,781 |
11,675 |
2.69% |
Total interest bearing deposits |
1,223,462 |
12,860 |
1.41% |
991,392 |
16,090 |
2.17% |
Customer repurchase agreements and federal
funds purchased |
93,901 |
545 |
0.78% |
97,156 |
774 |
1.07% |
Other short-term borrowings |
4,996 |
27 |
0.72% |
32,875 |
428 |
1.74% |
Long-term borrowings |
49,300 |
1,647 |
4.47% |
48,597 |
1,832 |
5.04% |
Total interest bearing liabilities |
1,371,659 |
15,079 |
1.47% |
1,170,020 |
19,124 |
2.19% |
|
|
|
|
|
|
|
Noninterest bearing liabilities: |
|
|
|
|
|
|
Noninterest bearing demand |
314,498 |
|
|
223,746 |
|
|
Other liabilities |
6,137 |
|
|
9,123 |
|
|
Total noninterest bearing
liabilities |
320,635 |
|
|
232,869 |
|
|
|
|
|
|
|
|
|
Stockholders' equity |
195,638 |
|
|
146,711 |
|
|
TOTAL LIABILITIES AND STOCKHOLDERS'
EQUITY |
$1,887,932 |
|
|
$1,549,600 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income |
|
$ 55,539 |
|
|
$ 42,801 |
|
Net interest spread |
|
|
3.69% |
|
|
3.33% |
Net interest margin |
|
|
4.06% |
|
|
3.81% |
|
|
|
|
|
|
|
(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 $1.8 million
and $1.3 million for the nine months ended September 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: |
September 30, 2010 |
June 30, 2010 |
March 31, 2010 |
December 31, 2009 |
September 30, 2009 |
June 30, 2009 |
March 31, 2009 |
December 31, 2008 |
Total interest income |
$ 24,421 |
$ 23,689 |
$ 22,508 |
$ 22,413 |
$ 21,426 |
$ 20,432 |
$ 20,067 |
$ 20,904 |
Total interest expense |
4,722 |
5,072 |
5,285 |
5,685 |
6,408 |
6,112 |
6,604 |
7,680 |
Net interest income |
19,699 |
18,617 |
17,223 |
16,728 |
15,018 |
14,320 |
13,463 |
13,224 |
Provision for credit losses |
1,962 |
2,101 |
1,689 |
2,528 |
1,857 |
1,718 |
1,566 |
1,450 |
Net interest income after provision for
credit losses |
17,737 |
16,516 |
15,534 |
14,200 |
13,161 |
12,602 |
11,897 |
11,774 |
Noninterest income (before investment
gains or losses) |
2,073 |
1,437 |
1,222 |
1,275 |
1,486 |
1,698 |
1,300 |
1,313 |
Investment gains (losses) |
260 |
573 |
-- |
1 |
-- |
1,405 |
132 |
(52) |
Total noninterest income |
2,333 |
2,010 |
1,222 |
1,276 |
1,486 |
3,103 |
1,432 |
1,261 |
Salaries and employee benefits |
6,549 |
5,969 |
5,675 |
5,412 |
5,128 |
5,044 |
5,305 |
5,270 |
Premises and equipment |
2,021 |
2,612 |
2,092 |
1,843 |
1,798 |
1,827 |
1,875 |
1,861 |
Marketing and advertising |
391 |
281 |
247 |
314 |
228 |
242 |
315 |
656 |
Other expenses |
3,968 |
4,275 |
3,449 |
3,058 |
3,126 |
4,460 |
2,798 |
2,720 |
Total noninterest expense |
12,929 |
13,137 |
11,463 |
10,627 |
10,280 |
11,573 |
10,293 |
10,507 |
Income before income tax expense |
7,141 |
5,389 |
5,293 |
4,849 |
4,367 |
4,132 |
3,036 |
2,528 |
Income tax expense |
2,375 |
1,942 |
1,902 |
1,898 |
1,625 |
1,481 |
961 |
867 |
Net income |
4,766 |
3,447 |
3,391 |
2,951 |
2,742 |
2,651 |
2,075 |
1,661 |
Preferred stock dividends and discount
accretion |
327 |
324 |
320 |
540 |
595 |
589 |
583 |
177 |
Net Income Available to Common
Shareholders |
$ 4,439 |
$ 3,123 |
$ 3,071 |
$ 2,411 |
$ 2,147 |
$ 2,062 |
$ 1,492 |
$ 1,484 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Per Share Data: |
|
|
|
|
|
|
|
|
Earnings per weighted average common share,
basic |
$ 0.22 |
$ 0.16 |
$ 0.16 |
$ 0.12 |
$ 0.16 |
$ 0.16 |
$ 0.12 |
$ 0.12 |
Earnings per weighted average common share,
diluted |
$ 0.22 |
$ 0.16 |
$ 0.15 |
$ 0.12 |
$ 0.15 |
$ 0.16 |
$ 0.12 |
$ 0.12 |
Weighted average common shares outstanding,
basic |
19,874,596 |
19,641,247 |
19,609,197 |
19,521,574 |
13,504,539 |
12,750,496 |
12,742,725 |
12,703,425 |
Weighted average common shares outstanding,
diluted |
20,230,063 |
20,071,945 |
19,951,246 |
19,779,726 |
13,794,355 |
12,887,964 |
12,793,974 |
12,777,262 |
Actual shares outstanding |
19,671,797 |
19,652,918 |
19,633,763 |
19,534,226 |
19,505,339 |
12,763,940 |
12,745,118 |
12,714,355 |
Book value per common share at period
end |
$ 9.14 |
$ 8.87 |
$ 8.66 |
$ 8.48 |
$ 8.46 |
$ 8.52 |
$ 8.49 |
$ 8.34 |
|
|
|
|
|
|
|
|
|
Performance Ratios
(annualized): |
|
|
|
|
|
|
|
|
Return on average assets |
0.96% |
0.73% |
0.76% |
0.68% |
0.67% |
0.70% |
0.56% |
0.46% |
Return on average common equity |
9.93% |
7.30% |
7.40% |
5.79% |
7.85% |
7.71% |
5.87% |
5.21% |
Net interest margin |
4.10% |
4.10% |
3.98% |
3.96% |
3.77% |
3.91% |
3.76% |
3.74% |
Efficiency ratio (1) |
58.68% |
63.69% |
62.15% |
59.02% |
62.29% |
66.42% |
69.10% |
72.54% |
|
|
|
|
|
|
|
|
|
Other Ratios: |
|
|
|
|
|
|
|
|
Allowance for credit losses to total loans
(3) |
1.45% |
1.45% |
1.47% |
1.47% |
1.51% |
1.50% |
1.50% |
1.45% |
Nonperforming loans to total loans |
1.61% |
1.68% |
1.47% |
1.57% |
1.73% |
2.36% |
3.67% |
2.01% |
Nonperforming assets to total assets |
1.46% |
1.49% |
1.36% |
1.50% |
1.63% |
2.14% |
3.33% |
1.76% |
Net charge-offs (annualized) to average
loans |
0.39% |
0.38% |
0.36% |
0.54% |
0.48% |
0.35% |
0.29% |
0.05% |
Tier 1 leverage ratio |
9.66% |
9.84% |
10.00% |
10.29% |
11.68% |
8.96% |
9.06% |
9.22% |
Tier 1 risk based capital ratio |
10.88% |
11.15% |
11.77% |
11.82% |
13.65% |
9.91% |
10.26% |
9.78% |
Total risk based capital ratio |
12.66% |
12.85% |
13.50% |
13.57% |
15.57% |
12.05% |
12.43% |
11.93% |
|
|
|
|
|
|
|
|
|
Average Balances (in
thousands): |
|
|
|
|
|
|
|
|
Total assets |
$ 1,964,827 |
$ 1,881,761 |
$ 1,815,383 |
$ 1,732,168 |
$ 1,631,200 |
$ 1,518,979 |
$ 1,497,036 |
$ 1,451,295 |
Total earning assets |
$ 1,907,900 |
$ 1,821,943 |
$ 1,753,989 |
$ 1,677,573 |
$ 1,579,603 |
$ 1,468,296 |
$ 1,453,503 |
$ 1,406,421 |
Total loans (2) |
$ 1,553,254 |
$ 1,489,325 |
$ 1,406,904 |
$ 1,352,076 |
$ 1,317,685 |
$ 1,297,634 |
$ 1,281,925 |
$ 1,218,067 |
Total deposits |
$ 1,610,813 |
$ 1,529,498 |
$ 1,472,061 |
$ 1,381,305 |
$ 1,321,405 |
$ 1,164,978 |
$ 1,157,227 |
$ 1,152,376 |
Total borrowings |
$ 146,711 |
$ 151,240 |
$ 146,638 |
$ 141,406 |
$ 146,819 |
$ 199,479 |
$ 190,065 |
$ 177,955 |
Total stockholders' equity |
$ 200,556 |
$ 194,866 |
$ 191,393 |
$ 202,004 |
$ 153,171 |
$ 145,492 |
$ 141,341 |
$ 113,245 |
|
|
|
|
|
|
|
|
|
(1) Computed by dividing
noninterest expense by the sum of net interest income and
noninterest income. |
(2) Includes loans held for
sale. |
(3) Excludes loans held for
sale. |
CONTACT: Eagle Bancorp, Inc.
Michael T. Flynn
301.986.1800
Eagle Bancorp (NASDAQ:EGBN)
Historical Stock Chart
From Jun 2024 to Jul 2024
Eagle Bancorp (NASDAQ:EGBN)
Historical Stock Chart
From Jul 2023 to Jul 2024