Eagle Bancorp, Inc. (the “Company”) (NASDAQ:EGBN), the parent
company of EagleBank, today announced record quarterly net income
of $22.3 million for the three months ended December 31, 2015, a
52% increase (32% on an operating basis) over the $14.7 million net
income ($16.9 million on an operating basis) for the three months
ended December 31, 2014. Net income available to common
shareholders for the three months ended December 31, 2015 increased
53% to $22.3 million as compared to $14.5 million ($16.7 million on
an operating basis) for the same period in 2014.
Net income per basic and diluted common share
for the three months ended December 31, 2015 was $0.67 and $0.65,
respectively as compared to $0.51 per basic common share and $0.49
per diluted common share ($0.59 per basic common share and $0.56
per diluted common share on an operating basis) for the same period
in 2014, a 31% increase per basic common share and 33% per diluted
common share (14% increase per basic common share and 16% per
diluted common share on an operating basis).
“We are very pleased to report the Company’s
twenty-eighth consecutive quarter of record earnings, continuing a
long-term history of consistent and balanced financial results,”
noted Ronald D. Paul, Chairman and Chief Executive Officer of Eagle
Bancorp, Inc. The Company’s quarterly earnings have increased for
each quarter since the fourth quarter of 2008. Financial
performance in the fourth quarter of 2015 was highlighted by 21%
growth in total revenue as compared to the same quarter in 2014 and
by 6% growth in total revenue as compared to the third quarter of
2015; by a favorable net interest margin, which was 4.38% for the
fourth quarter of 2015; by continuing growth in total loans and
total deposits; and by continued solid asset quality measures.
Additionally, operating leverage remained quite favorable with an
efficiency ratio in the fourth quarter of 2015 of 41.47%. The
strong fourth quarter earnings resulted in an annualized return on
average assets (“ROAA”) of 1.50%, an annualized return on average
common equity (“ROACE”) of 12.08% and a Common Equity Tier 1 ratio
of 10.68% at December 31, 2015.
For the year ended December 31, 2015, the
Company’s net income was $84.2 million, a 55% increase (46% on an
operating basis) over the $54.3 million ($57.7 million on an
operating basis) for the year ended December 31, 2014. Net income
available to common shareholders for the year ended December 31,
2015 was $83.6 million, as compared to $53.6 million ($57.1 million
on an operating basis) for the same period in 2014, a 56% increase
(46% on an operating basis). Net income available to common
shareholders in 2015 was $2.54 per basic common share and $2.50 per
diluted common share, as compared to $2.01 per basic common share
and $1.95 per diluted common share ($2.14 per basic common share
and $2.08 per diluted common share on an operating basis) for 2014,
a 26% increase per basic and 28% per diluted common share (19%
increase per basic and 21% per diluted common share on an operating
basis).
Operating earnings exclude expenses related to
the October 31, 2014 merger with Virginia Heritage Bank (the
“Merger”) amounting to $3.2 million, or $2.2 million net of tax
($0.08 per basic common share and $0.07 per diluted common share)
for the three months ended December 31, 2014, and $4.7 million, or
$3.5 million net of tax ($0.13 per basic and diluted share) for the
year ended December 31, 2014. Reconciliations of GAAP earnings to
operating earnings are contained in the footnotes to the financial
highlights table.
For the fourth quarter of 2015, total loans grew
5%, to $5.00 billion and total deposits increased 5% to $5.16
billion as compared to September 30, 2015. For the twelve months
ended December 31, 2015 growth in total loans was $686 million or
16% and growth in total deposits was $848 million or 20%.
The net interest margin was 4.38% for the fourth
quarter of 2015, as compared to 4.42% for the fourth quarter of
2014 and 4.23% for the third quarter of 2015. Mr. Paul added, “The
margin expanded slightly in the fourth quarter of 2015 due
substantially to a higher average loan percentage and a lower level
of average liquidity as compared to the third quarter in 2015.” The
yield on average loans for the fourth quarter of 2015 was 5.22%, as
compared to 5.19% for the third quarter of 2015 and 5.29% for the
fourth quarter of 2014. Mr. Paul noted that, “While competitive
pressures continue regarding new loan pricing, the Company remains
focused on its disciplined approach to pricing both loans and
funding sources.” The cost of funds was 0.33% in the fourth quarter
of 2015 versus 0.35% in the third quarter of 2015 and 0.36% in the
fourth quarter of 2014.
Total revenue (net interest income plus
noninterest income) for the fourth quarter of 2015 was $69.1
million, or 21% above the $57.1 million of total revenue earned for
the fourth quarter of 2014 and was 6% higher than the $65.2 million
of revenue earned in the third quarter of 2015. Total revenue for
the full year of 2015 was $260.6 million, or 32% above the $196.8
million of total revenue earned for the full year of 2014.
The primary driver of the Company’s revenue
growth for the fourth quarter of 2015 as compared to the fourth
quarter of 2014 continues to be net interest income, which
increased 21% ($62.6 million versus $51.8 million). Noninterest
income increased 22% in the fourth quarter of 2015 over the same
period in 2014 ($6.5 million versus $5.3
million).
Asset quality measures remained solid at
December 31, 2015. Net charge-offs (annualized) were 0.18% of
average loans for the fourth quarter of 2015, as compared to 0.26%
(annualized) of average loans for the fourth quarter of 2014. At
December 31, 2015, the Company’s nonperforming loans amounted to
$13.2 million (0.26% of total loans) as compared to $14.5 million
(0.30% of total loans) at September 30, 2015 and $22.4 million
(0.52% of total loans) at December 31, 2014. Nonperforming assets
amounted to $19.1 million (0.31% of total assets) at December 31,
2015 compared to $24.4 million (0.41% of total assets) at September
30, 2015 and $35.7 million (0.68% of total assets) at December 31,
2014.
Management continues to remain attentive to any
signs of deterioration in borrowers’ financial conditions and is
proactive in taking the appropriate steps 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 credit losses, at 1.05% of total loans
(excluding loans held for sale) at December 31, 2015, is adequate
to absorb potential credit losses within the loan portfolio at that
date. The allowance for credit losses was 1.05% of total loans at
September 30, 2015 and 1.07% at December 31, 2014. The allowance
for credit losses represented 398% of nonperforming loans, referred
to as the Coverage Ratio, at December 31, 2015, as compared to 348%
at September 30, 2015 and 205% at December 31, 2014 resulting
primarily from a decrease in nonperforming loans.
The efficiency ratio of 41.47% reflects
management’s ongoing efforts to maintain superior operating
leverage. “The Company’s operating cost management remained quite
favorable for the fourth quarter of 2015,” noted Mr. Paul. The
level of annualized noninterest expenses as a percentage of average
assets declined to 1.94% in the fourth quarter of 2015 as compared
to 2.42% (2.16% on an operating basis) in the fourth quarter of
2014. The Merger completed in the fourth quarter of 2014
accelerated a trend of improvement in the Company’s operating
leverage over the past several years. The in-market transaction
allowed the Company to achieve significant cost savings throughout
2015. Mr. Paul further noted, “The Company’s goal remains providing
for an appropriate infrastructure to remain competitive, service
our clients, manage risk, and achieve the Company’s growth
initiatives while also maintaining strict oversight of
expenses.”
Total assets at December 31, 2015 were $6.08
billion, a 3% increase as compared to $5.89 billion at September
30, 2015, and a 16% increase as compared to $5.25 billion at
December 31, 2014. Total loans (excluding loans held for sale) were
$5.00 billion at December 31, 2015, a 5% increase as compared to
$4.78 billion at September 30, 2015, and a 16% increase as compared
to $4.31 billion at December 31, 2014. Loans held for sale amounted
to $47.5 million at December 31, 2015 as compared to $35.7 million
at September 30, 2015, a 33% increase, and $44.3 million at
December 31, 2014, a 7% increase. The investment portfolio totaled
$487.9 million at December 31, 2015, a 7% decrease from the $524.3
million balance at September 30, 2015. As compared to December 31,
2014, the investment portfolio at December 31, 2015 increased by
$105.5 million or 28%.
Total deposits at December 31, 2015 were $5.16
billion compared to deposits of $4.93 billion at September 30,
2015, a 5% increase and $4.31 billion at December 31, 2014, a 20%
increase. Total borrowed funds (excluding customer repurchase
agreements) were $70.0 million at December 31, 2015 and September
30, 2015. As compared to December 31, 2014, borrowed funds
(excluding customer repurchase agreements) at December 31, 2015
decreased by $149.3 million or 68%. The decline in borrowed funds
for the year ended December 31, 2015 as compared to December 31,
2014 was the result of the payoff of all FHLB advances and the $9.3
million in subordinated notes due 2021.
Total shareholders’ equity at December 31, 2015
decreased 6%, to $738.6 million, compared to $786.1 million at
September 30, 2015, and increased 19%, from $620.8 million, at
December 31, 2014. The decline of shareholders’ equity from
September 30, 2015 reflects the redemption during the fourth
quarter of 2015 of all $71.9 million of the preferred stock issued
under the Small Business Lending Fund ("SBLF"), offset by earnings
during the fourth quarter. The change in shareholders’ equity in
2015 was due to increased retained earnings, the public offering of
common stock completed during the first quarter of 2015 (which
netted approximately $94.5 million) and the redemption of the SBLF
preferred stock. The ratio of common equity to total assets was
12.15% at December 31, 2015 as compared to 12.13% at September 30,
2015 and 10.46% at December 31, 2014. The Company’s capital
position remains substantially in excess of regulatory requirements
for well capitalized status, with a total risk based capital ratio
of 12.75% at December 31, 2015, as compared to 13.80% at September
30, 2015, and 12.97% at December 31, 2014. In addition, the
tangible common equity ratio was 10.56% at December 31, 2015,
compared to 10.46% at September 30, 2015 and 8.54% at December 31,
2014.
Analysis of the three months ended
December 31, 2015 compared to December 31, 2014
For the three months ended December 31, 2015,
the Company reported an annualized ROAA of 1.50% as compared to
1.21% (1.38% on an operating basis) for the three months ended
December 31, 2014. The annualized ROACE for the three months ended
December 31, 2015 was 12.08%, as compared to 11.67% (13.43% on an
operating basis) for the three months ended December 31, 2014. The
lower ROACE on an operating basis during the three months ended
December 31, 2015 is due to a higher average capital position.
Net interest income increased 21% for the three
months ended December 31, 2015 over the same period in 2014 ($62.6
million versus $51.8 million), resulting from growth in average
earning assets of 22%. The net interest margin was 4.38% for the
three months ended December 31, 2015, as compared to 4.42% for the
three months ended December 31, 2014. The Company believes its net
interest margin remains favorable compared to peer banking
companies and that its disciplined approach to managing the loan
portfolio yield to 5.22% for the fourth quarter in 2015 has been a
significant factor in its overall
profitability.
The provision for credit losses was $4.6 million
for the three months ended December 31, 2015 as compared to $3.7
million for the three months ended December 31, 2014. The higher
provisioning in the fourth quarter of 2015, as compared to the
fourth quarter of 2014, is due to growth in the loan portfolio. Net
charge-offs of $2.2 million in the fourth quarter of 2015
represented an annualized 0.18% of average loans, excluding loans
held for sale, as compared to $2.6 million, or an annualized 0.26%
of average loans, excluding loans held for sale, in the fourth
quarter of 2014. Net charge-offs in the fourth quarter of 2015 were
attributable primarily to land development and construction loans
($1.9 million), and home equity and other consumer loans ($499
thousand).
Noninterest income for the three months ended
December 31, 2015 increased to $6.5 million from $5.3 million for
the three months ended December 31, 2014, a 22% increase. This
increase was primarily due to an increase of $650 thousand in gains
on the sale of SBA loans and a $580 thousand increase in other
income. Other income increased primarily from noninterest loan fees
and noninterest fee income.
The efficiency ratio, which measures the ratio
of noninterest expense to total revenue, was 41.47% for the fourth
quarter of 2015, as compared to 51.38% (45.71% on an operating
basis) for the fourth quarter of 2014. Noninterest expenses totaled
$28.6 million for the three months ended December 31, 2015, as
compared to $29.4 million ($26.1 million on an operating basis) for
the three months ended December 31, 2014, a 2% decrease (10%
increase on an operating basis). Cost increases for salaries and
benefits were $275 thousand, due primarily to maintaining stable
staffing levels and to increases in employee benefit expenses.
Premises and equipment expenses were $223 thousand higher, due
substantially to increases in leasing costs and accelerated
amortization. Data processing expense increased $364 thousand
primarily due to increased accounts and transaction volume. Legal,
accounting and professional fees decreased by $112 thousand. Higher
FDIC expenses were due to higher average asset growth. Other
expenses increased $1.6 million primarily due to costs and
valuation adjustments associated with OREO property.
Analysis of the year ended December 31,
2015 compared to December 31, 2014
For the year ended December 31, 2015, the
Company reported an annualized ROAA of 1.49% as compared to 1.31%
(1.40% on an operating basis) for the year ended December 31, 2014.
The annualized ROACE for the year ended December 31, 2015 was
12.32%, as compared to 13.50% (14.38% on an operating basis) for
the year ended December 31, 2014. The lower ROACE was due to the
higher average capital position.
Net interest income increased 31% for the year
ended December 31, 2015 over the same period in 2014 ($233.9
million versus $178.5 million), resulting from growth in average
earning assets of 35%. The net interest margin was 4.33% as
compared to 4.44% for the year ended December 31, 2014. The Company
believes its net interest margin remains favorable compared to peer
banking companies and that its disciplined approach to managing the
loan portfolio yield to 5.24% for the year ended December 31, 2015
has been a significant factor in its overall
profitability.
The provision for credit losses was $14.6
million for the year ended December 31, 2015 as compared to $10.9
million for the year ended December 31, 2014. The higher
provisioning in the year ended December 31, 2015, as compared to
the December 31, 2014, is due to both higher loan growth and higher
net charge-offs. Net charge-offs of $8.0 million for the year ended
December 31, 2015 represented 0.17% of average loans, excluding
loans held for sale, as compared to $5.7 million or 0.17% of
average loans, excluding loans held for sale, for the year ended
December 31, 2014. Net charge-offs for the year ended December 31,
2015 were attributable primarily to land development and
construction loans ($1.9 million), commercial and industrial loans
($4.5 million), home equity and other consumer ($1.2 million), and
income producing-commercial real estate loans ($625 thousand),
offset by a recovery in construction commercial real estate loans
($175 thousand).
Noninterest income for the year ended December
31, 2015 increased to $26.6 million from $18.3 million for the year
ended December 31, 2014, a 45% increase. This increase was
primarily due to $4.9 million higher gains on the sale of
residential mortgage loans and to gains realized on the sale of
investment securities of $2.3 million offset by a $1.1 million loss
on the early extinguishment of debt due to the early payoff of FHLB
advances. Residential mortgage loans closed were $904 million for
the year ended December 31, 2015 versus $579 million for the year
ended December 31, 2014. Approximately 38% of loans closed were
purchase money mortgages, with approximately 62% being for
refinance purposes. Other income increased $1.3 million, primarily
due to noninterest loan fees and ATM fees. Excluding investment
securities gains and the loss on early extinguishment of debt,
total noninterest income was $25.5 million for the year ended
December 31, 2015, as compared to $18.3 million for the same period
in 2014, a 39% increase.
Noninterest expenses totaled $110.7 million for
the year ended December 31, 2015, as compared to $99.7 million
($95.0 million on an operating basis) for the year ended December
31, 2014, an 11% increase (17% on an operating basis). Cost
increases for salaries and benefits were $4.5 million, due
primarily to increased staff from the Merger, merit increases,
employee benefit expense increases and higher incentive
compensation. Premises and equipment expenses were $2.7 million
higher, due to costs of additional branches and office space
acquired in the Merger, to increases in leasing costs, and to
accelerated amortization. Marketing and advertising expense
increased by $749 thousand primarily due to costs associated with
digital and print advertising and sponsorships. Data processing
expense increased $1.4 million primarily due to increased accounts
and transaction volume primarily arising out of the Merger and to
higher network expenses. Higher FDIC expenses were due to higher
average assets. Other expenses increased $5.1 million primarily due
to costs and valuation adjustments associated with other real
estate owned, franchise tax, and higher core deposit intangible
amortization. For the year ended December 31, 2015, the efficiency
ratio was 42.49% as compared to 50.67% (48.28% on an operating
basis) for the same period in 2014. Operating efficiency was
enhanced in the year of 2015 in large part from leverage achieved
in the Merger and to ongoing attention to noninterest expense
management.
The financial information which follows provides
more detail on the Company’s financial performance for the twelve
and three months ended December 31, 2015 as compared to the twelve
and three months ended December 31, 2014 as well as providing eight
quarters of trend data. Persons wishing for additional information
should refer to the Company’s Form 10-K for the year ended December
31, 2014 and other reports filed with the Securities and Exchange
Commission (the “SEC”).
About Eagle Bancorp: The
Company is the holding company for EagleBank, which commenced
operations in 1998. The Bank is headquartered in Bethesda,
Maryland, and operates through twenty-one branch offices, located
in Montgomery County, Maryland, Washington, D.C. and Northern
Virginia. The Company focuses on building relationships with
businesses, professionals and individuals in its marketplace.
Conference Call: Eagle Bancorp
will host a conference call to discuss its fourth quarter 2015
financial results on Thursday, January 21, 2016 at 10:00 a.m.
eastern standard time. The public is invited to listen to this
conference call by dialing 1.877.303.6220, conference ID Code is
19041311, 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 February 4, 2016.
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, 2014 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.
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Eagle Bancorp, Inc. |
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Consolidated
Financial Highlights (Unaudited) |
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(dollars in thousands,
except per share data) |
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Twelve Months Ended December 31, |
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Three Months Ended December 31, |
|
|
2015 |
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2014 |
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2015 |
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|
2014 |
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Income
Statements: |
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|
|
|
|
|
|
Total interest
income |
$ |
253,180 |
|
|
$ |
191,573 |
|
|
$ |
67,311 |
|
|
$ |
56,091 |
|
Total interest
expense |
|
19,238 |
|
|
|
13,095 |
|
|
|
4,735 |
|
|
|
4,275 |
|
Net interest
income |
|
233,942 |
|
|
|
178,478 |
|
|
|
62,576 |
|
|
|
51,816 |
|
Provision for credit
losses |
|
14,638 |
|
|
|
10,879 |
|
|
|
4,595 |
|
|
|
3,700 |
|
Net interest income
after provision for credit losses |
|
219,304 |
|
|
|
167,599 |
|
|
|
57,981 |
|
|
|
48,116 |
|
Noninterest income
(before investment gains) |
|
25,504 |
|
|
|
18,323 |
|
|
|
6,462 |
|
|
|
5,298 |
|
Gain on sale of
investment securities |
|
2,254 |
|
|
|
22 |
|
|
|
30 |
|
|
|
12 |
|
Loss on early
extinguishment of debt |
|
(1,130 |
) |
|
|
- |
|
|
|
- |
|
|
|
- |
|
Total noninterest
income |
|
26,628 |
|
|
|
18,345 |
|
|
|
6,492 |
|
|
|
5,310 |
|
Total noninterest
expense (1) |
|
110,716 |
|
|
|
99,728 |
|
|
|
28,640 |
|
|
|
29,352 |
|
Income before income
tax expense |
|
135,216 |
|
|
|
86,216 |
|
|
|
35,833 |
|
|
|
24,074 |
|
Income tax expense |
|
51,049 |
|
|
|
31,958 |
|
|
|
13,485 |
|
|
|
9,347 |
|
Net income
(1) |
|
84,167 |
|
|
|
54,258 |
|
|
|
22,348 |
|
|
|
14,727 |
|
Preferred stock
dividends |
|
601 |
|
|
|
614 |
|
|
|
62 |
|
|
|
180 |
|
Net income available to
common shareholders (1) |
$ |
83,566 |
|
|
$ |
53,644 |
|
|
$ |
22,286 |
|
|
$ |
14,547 |
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Per Share
Data: |
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Earnings per weighted
average common share, basic (1) |
$ |
2.54 |
|
|
$ |
2.01 |
|
|
$ |
0.67 |
|
|
$ |
0.51 |
|
Earnings per weighted
average common share, diluted (1) |
$ |
2.50 |
|
|
$ |
1.95 |
|
|
$ |
0.65 |
|
|
$ |
0.49 |
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Weighted average common
shares outstanding, basic |
|
32,836,449 |
|
|
|
26,683,759 |
|
|
|
33,462,937 |
|
|
|
28,777,778 |
|
Weighted average common
shares outstanding, diluted |
|
33,479,592 |
|
|
|
27,550,978 |
|
|
|
34,069,786 |
|
|
|
29,632,685 |
|
Actual shares
outstanding at period end |
|
33,467,893 |
|
|
|
30,139,396 |
|
|
|
33,467,893 |
|
|
|
30,139,396 |
|
Book value per common
share at period end |
$ |
22.07 |
|
|
$ |
18.21 |
|
|
$ |
22.07 |
|
|
$ |
18.21 |
|
Tangible book value per
common share at period end (2) |
$ |
18.83 |
|
|
$ |
14.56 |
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|
$ |
18.83 |
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$ |
14.56 |
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Performance
Ratios (annualized): |
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Return on average
assets (1) |
|
1.49 |
% |
|
|
1.31 |
% |
|
|
1.50 |
% |
|
|
1.21 |
% |
Return on average
common equity (1) |
|
12.32 |
% |
|
|
13.50 |
% |
|
|
12.08 |
% |
|
|
11.67 |
% |
Net interest
margin |
|
4.33 |
% |
|
|
4.44 |
% |
|
|
4.38 |
% |
|
|
4.42 |
% |
Efficiency ratio
(1)(3) |
|
42.49 |
% |
|
|
50.67 |
% |
|
|
41.47 |
% |
|
|
51.38 |
% |
|
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|
|
|
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Other
Ratios: |
|
|
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Allowance for credit
losses to total loans (4) |
|
1.05 |
% |
|
|
1.07 |
% |
|
|
1.05 |
% |
|
|
1.07 |
% |
Allowance for credit
losses to total nonperforming loans |
|
397.95 |
% |
|
|
205.30 |
% |
|
|
397.95 |
% |
|
|
205.30 |
% |
Nonperforming loans to
total loans (4) |
|
0.26 |
% |
|
|
0.52 |
% |
|
|
0.26 |
% |
|
|
0.52 |
% |
Nonperforming assets to
total assets |
|
0.31 |
% |
|
|
0.68 |
% |
|
|
0.31 |
% |
|
|
0.68 |
% |
Net charge-offs
(annualized) to average loans (4) |
|
0.17 |
% |
|
|
0.17 |
% |
|
|
0.18 |
% |
|
|
0.26 |
% |
Common equity to total
assets |
|
12.15 |
% |
|
|
10.46 |
% |
|
|
12.15 |
% |
|
|
10.46 |
% |
Tier 1 leverage
ratio |
|
10.90 |
% |
|
|
10.69 |
% |
|
|
10.90 |
% |
|
|
10.69 |
% |
Total risk based
capital ratio |
|
12.75 |
% |
|
|
12.97 |
% |
|
|
12.75 |
% |
|
|
12.97 |
% |
Common Equity Tier
1 |
|
10.68 |
% |
|
n/a |
|
|
10.68 |
% |
|
n/a |
Tangible common equity
to tangible assets (2) |
|
10.56 |
% |
|
|
8.54 |
% |
|
|
10.56 |
% |
|
|
8.54 |
% |
|
|
|
|
|
|
|
|
Loan Balances -
Period End (in thousands): |
|
|
|
|
|
|
|
Commercial and
Industrial |
$ |
1,052,257 |
|
|
$ |
916,226 |
|
|
$ |
1,052,257 |
|
|
$ |
916,226 |
|
Commercial real estate
- owner occupied |
$ |
498,103 |
|
|
$ |
461,581 |
|
|
$ |
498,103 |
|
|
$ |
461,581 |
|
Commercial real estate
- income producing |
$ |
2,115,477 |
|
|
$ |
1,703,172 |
|
|
$ |
2,115,477 |
|
|
$ |
1,703,172 |
|
1-4 Family
mortgage |
$ |
147,365 |
|
|
$ |
148,018 |
|
|
$ |
147,365 |
|
|
$ |
148,018 |
|
Construction -
commercial and residential |
$ |
985,607 |
|
|
$ |
793,432 |
|
|
$ |
985,607 |
|
|
$ |
793,432 |
|
Construction - C&I
(owner occupied) |
$ |
79,769 |
|
|
$ |
58,032 |
|
|
$ |
79,769 |
|
|
$ |
58,032 |
|
Home equity |
$ |
112,885 |
|
|
$ |
122,536 |
|
|
$ |
112,885 |
|
|
$ |
122,536 |
|
Other
consumer |
$ |
6,904 |
|
|
$ |
109,402 |
|
|
$ |
6,904 |
|
|
$ |
109,402 |
|
|
|
|
|
|
|
|
|
Average
Balances (in thousands): |
|
|
|
|
|
|
|
Total assets |
$ |
5,631,703 |
|
|
$ |
4,130,495 |
|
|
$ |
5,908,115 |
|
|
$ |
4,844,409 |
|
Total earning
assets |
$ |
5,400,071 |
|
|
$ |
4,013,125 |
|
|
$ |
5,675,048 |
|
|
$ |
4,654,423 |
|
Total loans |
$ |
4,594,395 |
|
|
$ |
3,361,696 |
|
|
$ |
4,859,391 |
|
|
$ |
3,993,020 |
|
Total deposits |
$ |
4,697,263 |
|
|
$ |
3,513,088 |
|
|
$ |
4,952,282 |
|
|
$ |
4,025,900 |
|
Total borrowings |
$ |
169,246 |
|
|
$ |
147,859 |
|
|
$ |
169,745 |
|
|
$ |
237,401 |
|
Total shareholders’
equity |
$ |
738,468 |
|
|
$ |
456,623 |
|
|
$ |
757,199 |
|
|
$ |
561,467 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) The reported figure includes the effect of $4.7 million and
$3.2 million of merger related expenses ($3.5 million and $2.2
million net of tax) for the twelve and three months ended December
31, 2014. As the magnitude of the merger expenses distorts the
operational results of the Company, we present in the GAAP
reconciliation below and in the accompanying text certain
performance ratios excluding the effect of the merger expenses
during the twelve and three months periods ended December 31, 2014.
We believe this information is important to enable shareholders and
other interested parties to assess the core operational performance
of the Company.
|
|
|
|
GAAP
Reconciliation (Unaudited) |
|
|
|
(dollars in thousands
except per share data) |
|
|
|
|
Twelve Months Ended |
|
Three Months Ended |
|
December 31, 2014 |
|
December 31, 2014 |
Net
income |
$ |
54,258 |
|
|
$ |
14,727 |
|
Adjustments to net
income |
|
|
|
Merger-related expenses |
|
3,472 |
|
|
|
2,173 |
|
Operating net
income |
$ |
57,730 |
|
|
$ |
16,900 |
|
|
|
|
|
Net income
available to common shareholders |
$ |
53,644 |
|
|
$ |
14,547 |
|
Adjustments to net
income available to common shareholders |
|
|
|
Merger-related expenses |
|
3,472 |
|
|
|
2,173 |
|
Operating earnings |
$ |
57,116 |
|
|
$ |
16,720 |
|
|
|
|
|
Earnings per
weighted average common share, basic |
$ |
2.01 |
|
|
$ |
0.51 |
|
Adjustments to earnings
per weighted average common share, basic |
|
|
|
Merger-related expenses |
|
0.13 |
|
|
|
0.08 |
|
Operating earnings per
weighted average common share, basic |
$ |
2.14 |
|
|
$ |
0.59 |
|
|
|
|
|
Earnings per
weighted average common share, diluted |
$ |
1.95 |
|
|
$ |
0.49 |
|
Adjustments to earnings
per weighted average common share, diluted |
|
|
|
Merger-related expenses |
|
0.13 |
|
|
|
0.07 |
|
Operating earnings per
weighted average common share, diluted |
$ |
2.08 |
|
|
$ |
0.56 |
|
|
|
|
|
Summary
Operating Results: |
|
|
|
Noninterest
expense |
$ |
99,728 |
|
|
$ |
29,352 |
|
Merger-related expenses |
|
4,699 |
|
|
|
3,239 |
|
Adjusted noninterest
expense |
$ |
95,029 |
|
|
$ |
26,113 |
|
|
|
|
|
Adjusted efficiency
ratio |
|
48.28 |
% |
|
|
45.71 |
% |
|
|
|
|
Adjusted noninterest
expense as a % of average assets |
|
2.30 |
% |
|
|
2.14 |
% |
|
|
|
|
Return on
average assets |
|
|
|
Net income |
$ |
54,258 |
|
|
$ |
14,727 |
|
Adjustments to net
income |
|
|
|
Merger-related expenses |
|
3,472 |
|
|
|
2,173 |
|
Operating net
income |
$ |
57,730 |
|
|
$ |
16,900 |
|
|
|
|
|
Adjusted return on
average assets |
|
1.40 |
% |
|
|
1.38 |
% |
|
|
|
|
Return on
average common equity |
|
|
|
Net income available to
common shareholders |
$ |
53,644 |
|
|
$ |
14,547 |
|
Adjustments to net
income available to common shareholders |
|
|
|
Merger-related expenses |
|
3,472 |
|
|
|
2,173 |
|
Operating earnings |
$ |
57,116 |
|
|
$ |
16,720 |
|
|
|
|
|
Adjusted return on
average common equity |
|
14.38 |
% |
|
|
13.43 |
% |
|
|
|
|
(2) 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. The table below provides a reconciliation of these
non-GAAP financial measures with financial measures defined by
GAAP.
|
|
|
|
GAAP
Reconciliation (Unaudited) |
|
|
|
(dollars in thousands
except per share data) |
|
|
|
|
Twelve Months Ended |
|
Twelve Months Ended |
|
December 31, 2015 |
|
December 31, 2014 |
Common shareholders'
equity |
$ |
738,601 |
|
|
$ |
548,859 |
|
Less: Intangible
assets |
|
(108,542 |
) |
|
|
(109,908 |
) |
Tangible common
equity |
$ |
630,059 |
|
|
$ |
438,951 |
|
|
|
|
|
Book value per common
share |
$ |
22.07 |
|
|
$ |
18.21 |
|
Less: Intangible book
value per common share |
|
(3.24 |
) |
|
|
(3.65 |
) |
Tangible book
value per common share |
$ |
18.83 |
|
|
$ |
14.56 |
|
|
|
|
|
Total assets |
$ |
6,076,649 |
|
|
$ |
5,247,880 |
|
Less: Intangible
assets |
|
(108,542 |
) |
|
|
(109,908 |
) |
Tangible
assets |
$ |
5,968,107 |
|
|
$ |
5,137,972 |
|
Tangible common
equity ratio |
|
10.56 |
% |
|
|
8.54 |
% |
|
|
|
|
(3) Computed by dividing noninterest expense by the sum of net
interest income and noninterest
income. (4)
Excludes loans held for sale.
|
|
|
|
|
|
Eagle Bancorp,
Inc. |
|
|
|
|
|
Consolidated
Balance Sheets (Unaudited) |
|
|
|
|
|
(dollars in thousands,
except per share data) |
|
|
|
|
|
|
|
|
|
|
|
Assets |
December 31, 2015 |
|
September 30, 2015 |
|
December 31, 2014 |
Cash and due from
banks |
$ |
11,009 |
|
|
$ |
10,703 |
|
|
$ |
9,097 |
|
Federal funds sold |
|
3,791 |
|
|
|
4,076 |
|
|
|
3,516 |
|
Interest bearing
deposits with banks and other short-term investments |
|
283,563 |
|
|
|
291,276 |
|
|
|
243,412 |
|
Investment securities
available for sale, at fair value |
|
487,869 |
|
|
|
524,326 |
|
|
|
382,343 |
|
Federal Reserve and
Federal Home Loan Bank stock |
|
16,903 |
|
|
|
16,865 |
|
|
|
22,560 |
|
Loans held for
sale |
|
47,492 |
|
|
|
35,713 |
|
|
|
44,317 |
|
Loans |
|
4,998,368 |
|
|
|
4,776,965 |
|
|
|
4,312,399 |
|
Less allowance for
credit losses |
|
(52,687 |
) |
|
|
(50,320 |
) |
|
|
(46,075 |
) |
Loans, net |
|
4,945,681 |
|
|
|
4,726,645 |
|
|
|
4,266,324 |
|
Premises and equipment,
net |
|
18,254 |
|
|
|
17,070 |
|
|
|
19,099 |
|
Deferred income
taxes |
|
40,311 |
|
|
|
35,426 |
|
|
|
32,511 |
|
Bank owned life
insurance |
|
58,682 |
|
|
|
58,284 |
|
|
|
56,594 |
|
Intangible assets,
net |
|
108,542 |
|
|
|
109,498 |
|
|
|
109,908 |
|
Other real estate
owned |
|
5,852 |
|
|
|
9,952 |
|
|
|
13,224 |
|
Other assets |
|
48,700 |
|
|
|
49,124 |
|
|
|
44,975 |
|
Total Assets |
$ |
6,076,649 |
|
|
$ |
5,888,958 |
|
|
$ |
5,247,880 |
|
|
|
|
|
|
|
Liabilities and
Shareholders' Equity |
|
|
|
|
|
Deposits: |
|
|
|
|
|
Noninterest bearing demand |
$ |
1,405,067 |
|
|
$ |
1,402,447 |
|
|
$ |
1,175,799 |
|
Interest bearing transaction |
|
178,797 |
|
|
|
207,716 |
|
|
|
143,628 |
|
Savings and money market |
|
2,835,325 |
|
|
|
2,514,310 |
|
|
|
2,302,600 |
|
Time, $100,000 or more |
|
406,570 |
|
|
|
439,248 |
|
|
|
393,132 |
|
Other time |
|
332,685 |
|
|
|
362,867 |
|
|
|
295,609 |
|
Total deposits |
|
5,158,444 |
|
|
|
4,926,588 |
|
|
|
4,310,768 |
|
Customer repurchase
agreements |
|
72,356 |
|
|
|
64,893 |
|
|
|
61,120 |
|
Other short-term
borrowings |
|
- |
|
|
|
- |
|
|
|
100,000 |
|
Long-term borrowings |
|
70,000 |
|
|
|
70,000 |
|
|
|
119,300 |
|
Other liabilities |
|
37,248 |
|
|
|
41,408 |
|
|
|
35,933 |
|
Total
liabilities |
|
5,338,048 |
|
|
|
5,102,889 |
|
|
|
4,627,121 |
|
|
|
|
|
|
|
Shareholders'
Equity |
|
|
|
|
|
|
|
|
|
|
|
Preferred stock, par value $.01 per share, shares authorized
1,000,000, |
|
|
|
|
|
Series B, $1,000 per share
liquidation preference, shares issued and |
|
|
|
|
|
outstanding -0- at December 31,
2015, 56,600 at September 30, 2015 and |
|
|
|
|
|
December 31, 2014; Series C, $1,000
per share liquidation preference, |
|
|
|
|
|
shares issued and outstanding -0-
at December 31, 2015, 15,300 at |
|
|
|
|
|
September 30, 2015 and December 31,
2014 |
|
- |
|
|
|
71,900 |
|
|
|
71,900 |
|
Common stock, par value
$.01 per share; shares authorized 100,000,000, shares |
|
|
|
|
|
issued and outstanding 33,467,893,
33,405,510 and 30,139,396, respectively |
|
331 |
|
|
|
330 |
|
|
|
296 |
|
Warrant |
|
946 |
|
|
|
946 |
|
|
|
946 |
|
Additional paid in
capital |
|
503,529 |
|
|
|
500,334 |
|
|
|
394,933 |
|
Retained
earnings |
|
233,604 |
|
|
|
211,318 |
|
|
|
150,037 |
|
Accumulated other
comprehensive income |
|
191 |
|
|
|
1,241 |
|
|
|
2,647 |
|
Total Shareholders'
Equity |
|
738,601 |
|
|
|
786,069 |
|
|
|
620,759 |
|
Total Liabilities and
Shareholders' Equity |
$ |
6,076,649 |
|
|
$ |
5,888,958 |
|
|
$ |
5,247,880 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Eagle Bancorp,
Inc. |
|
|
|
|
|
|
|
Consolidated
Statements of Operations (Unaudited) |
|
|
|
|
|
|
|
(dollars in thousands,
except per share data) |
|
|
|
|
|
|
|
|
|
|
|
|
Twelve Months Ended December 31, |
|
Three Months Ended December 31, |
Interest
Income |
|
2015 |
|
|
|
2014 |
|
|
|
2015 |
|
|
|
2014 |
|
Interest and fees on loans |
$ |
242,340 |
|
|
$ |
181,775 |
|
|
$ |
64,277 |
|
|
$ |
53,594 |
|
Interest and dividends on
investment securities |
|
10,092 |
|
|
|
9,286 |
|
|
|
2,903 |
|
|
|
2,375 |
|
Interest on balances with other
banks and short-term investments |
|
732 |
|
|
|
496 |
|
|
|
128 |
|
|
|
117 |
|
Interest on federal funds
sold |
|
16 |
|
|
|
16 |
|
|
|
3 |
|
|
|
5 |
|
Total interest income |
|
253,180 |
|
|
|
191,573 |
|
|
|
67,311 |
|
|
|
56,091 |
|
Interest
Expense |
|
|
|
|
|
|
|
Interest on deposits |
|
14,343 |
|
|
|
9,638 |
|
|
|
3,675 |
|
|
|
2,713 |
|
Interest on customer repurchase
agreements |
|
132 |
|
|
|
143 |
|
|
|
38 |
|
|
|
36 |
|
Interest on short-term
borrowings |
|
86 |
|
|
|
31 |
|
|
|
32 |
|
|
|
31 |
|
Interest on long-term
borrowings |
|
4,677 |
|
|
|
3,283 |
|
|
|
990 |
|
|
|
1,495 |
|
Total interest expense |
|
19,238 |
|
|
|
13,095 |
|
|
|
4,735 |
|
|
|
4,275 |
|
Net Interest
Income |
|
233,942 |
|
|
|
178,478 |
|
|
|
62,576 |
|
|
|
51,816 |
|
Provision for
Credit Losses |
|
14,638 |
|
|
|
10,879 |
|
|
|
4,595 |
|
|
|
3,700 |
|
Net Interest
Income After Provision For Credit Losses |
|
219,304 |
|
|
|
167,599 |
|
|
|
57,981 |
|
|
|
48,116 |
|
|
|
|
|
|
|
|
|
Noninterest
Income |
|
|
|
|
|
|
|
Service charges on deposits |
|
5,397 |
|
|
|
4,906 |
|
|
|
1,407 |
|
|
|
1,268 |
|
Gain on sale of loans |
|
11,973 |
|
|
|
6,886 |
|
|
|
2,609 |
|
|
|
2,200 |
|
Gain on sale of investment
securities |
|
2,254 |
|
|
|
22 |
|
|
|
30 |
|
|
|
12 |
|
Loss on early extinguishment of
debt |
|
(1,130 |
) |
|
|
- |
|
|
|
- |
|
|
|
- |
|
Increase in the cash surrender
value of bank owned life insurance |
|
1,589 |
|
|
|
1,283 |
|
|
|
398 |
|
|
|
364 |
|
Other income |
|
6,545 |
|
|
|
5,248 |
|
|
|
2,048 |
|
|
|
1,466 |
|
Total noninterest income |
|
26,628 |
|
|
|
18,345 |
|
|
|
6,492 |
|
|
|
5,310 |
|
Noninterest
Expense |
|
|
|
|
|
|
|
Salaries and employee benefits |
|
61,749 |
|
|
|
57,268 |
|
|
|
15,977 |
|
|
|
15,703 |
|
Premises and equipment
expenses |
|
16,026 |
|
|
|
13,317 |
|
|
|
3,970 |
|
|
|
3,747 |
|
Marketing and advertising |
|
2,748 |
|
|
|
1,999 |
|
|
|
566 |
|
|
|
578 |
|
Data processing |
|
7,533 |
|
|
|
6,163 |
|
|
|
1,935 |
|
|
|
1,571 |
|
Legal, accounting and professional
fees |
|
3,729 |
|
|
|
3,439 |
|
|
|
814 |
|
|
|
926 |
|
FDIC insurance |
|
3,154 |
|
|
|
2,333 |
|
|
|
806 |
|
|
|
653 |
|
Merger expenses |
|
141 |
|
|
|
4,699 |
|
|
|
2 |
|
|
|
3,239 |
|
Other expenses |
|
15,636 |
|
|
|
10,510 |
|
|
|
4,570 |
|
|
|
2,935 |
|
Total noninterest expense |
|
110,716 |
|
|
|
99,728 |
|
|
|
28,640 |
|
|
|
29,352 |
|
Income Before
Income Tax Expense |
|
135,216 |
|
|
|
86,216 |
|
|
|
35,833 |
|
|
|
24,074 |
|
Income Tax
Expense |
|
51,049 |
|
|
|
31,958 |
|
|
|
13,485 |
|
|
|
9,347 |
|
Net
Income |
|
84,167 |
|
|
|
54,258 |
|
|
|
22,348 |
|
|
|
14,727 |
|
Preferred Stock
Dividends |
|
601 |
|
|
|
614 |
|
|
|
62 |
|
|
|
180 |
|
Net Income
Available to Common Shareholders |
$ |
83,566 |
|
|
$ |
53,644 |
|
|
$ |
22,286 |
|
|
$ |
14,547 |
|
|
|
|
|
|
|
|
|
Earnings Per
Common Share |
|
|
|
|
|
|
|
Basic |
$ |
2.54 |
|
|
$ |
2.01 |
|
|
$ |
0.67 |
|
|
$ |
0.51 |
|
Diluted |
$ |
2.50 |
|
|
$ |
1.95 |
|
|
$ |
0.65 |
|
|
$ |
0.49 |
|
|
|
|
|
|
|
|
|
|
Eagle Bancorp, Inc. |
Consolidated Average Balances, Interest Yields
And Rates (Unaudited) |
(dollars in thousands) |
|
|
|
|
|
|
|
|
|
Three Months Ended December 31, |
|
|
2015 |
|
|
|
2014 |
|
|
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 |
$ |
224,664 |
|
$ |
128 |
|
|
0.23 |
% |
|
$ |
202,182 |
|
$ |
117 |
|
|
0.23 |
% |
Loans
held for sale (1) |
|
40,587 |
|
|
383 |
|
|
3.77 |
% |
|
|
39,387 |
|
|
381 |
|
|
3.87 |
% |
Loans
(1) (2) |
|
4,859,391 |
|
|
63,894 |
|
|
5.22 |
% |
|
|
3,993,020 |
|
|
53,213 |
|
|
5.29 |
% |
Investment securities available for sale (2) |
|
544,129 |
|
|
2,903 |
|
|
2.12 |
% |
|
|
409,627 |
|
|
2,375 |
|
|
2.30 |
% |
Federal
funds sold |
|
6,277 |
|
|
3 |
|
|
0.19 |
% |
|
|
10,207 |
|
|
5 |
|
|
0.19 |
% |
Total interest earning assets |
|
5,675,048 |
|
|
67,311 |
|
|
4.71 |
% |
|
|
4,654,423 |
|
|
56,091 |
|
|
4.78 |
% |
|
|
|
|
|
|
|
|
Total
noninterest earning assets |
|
283,575 |
|
|
|
|
|
234,775 |
|
|
|
Less:
allowance for credit losses |
|
50,508 |
|
|
|
|
|
44,789 |
|
|
|
Total noninterest earning
assets |
|
233,067 |
|
|
|
|
|
189,986 |
|
|
|
TOTAL ASSETS |
$ |
5,908,115 |
|
|
|
|
$ |
4,844,409 |
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY |
|
|
|
|
|
|
|
Interest bearing
liabilities: |
|
|
|
|
|
|
|
Interest
bearing transaction |
$ |
195,167 |
|
$ |
83 |
|
|
0.17 |
% |
|
$ |
132,516 |
|
$ |
43 |
|
|
0.13 |
% |
Savings
and money market |
|
2,560,727 |
|
|
2,119 |
|
|
0.33 |
% |
|
|
2,111,968 |
|
|
1,682 |
|
|
0.32 |
% |
Time
deposits |
|
764,761 |
|
|
1,473 |
|
|
0.76 |
% |
|
|
594,850 |
|
|
988 |
|
|
0.66 |
% |
Total interest bearing
deposits |
|
3,520,655 |
|
|
3,675 |
|
|
0.41 |
% |
|
|
2,839,334 |
|
|
2,713 |
|
|
0.38 |
% |
Customer
repurchase agreements |
|
71,591 |
|
|
38 |
|
|
0.21 |
% |
|
|
62,663 |
|
|
36 |
|
|
0.22 |
% |
Other
short-term borrowings |
|
28,154 |
|
|
32 |
|
|
0.44 |
% |
|
|
28,916 |
|
|
31 |
|
|
0.42 |
% |
Long-term borrowings |
|
70,000 |
|
|
990 |
|
|
5.53 |
% |
|
|
145,822 |
|
|
1,495 |
|
|
4.01 |
% |
Total interest bearing
liabilities |
|
3,690,400 |
|
|
4,735 |
|
|
0.51 |
% |
|
|
3,076,735 |
|
|
4,275 |
|
|
0.55 |
% |
|
|
|
|
|
|
|
|
Noninterest bearing liabilities: |
|
|
|
|
|
|
|
Noninterest bearing demand |
|
1,431,627 |
|
|
|
|
|
1,186,566 |
|
|
|
Other
liabilities |
|
28,889 |
|
|
|
|
|
19,641 |
|
|
|
Total noninterest bearing
liabilities |
|
1,460,516 |
|
|
|
|
|
1,206,207 |
|
|
|
|
|
|
|
|
|
|
|
Shareholders’
equity |
|
757,199 |
|
|
|
|
|
561,467 |
|
|
|
TOTAL LIABILITIES AND SHAREHOLDERS'
EQUITY |
$ |
5,908,115 |
|
|
|
|
$ |
4,844,409 |
|
|
|
|
|
|
|
|
|
|
|
Net interest
income |
|
$ |
62,576 |
|
|
|
|
$ |
51,816 |
|
|
Net interest
spread |
|
|
|
4.20 |
% |
|
|
|
|
4.23 |
% |
Net interest
margin |
|
|
|
4.38 |
% |
|
|
|
|
4.42 |
% |
Cost of funds |
|
|
|
0.33 |
% |
|
|
|
|
0.36 |
% |
|
|
|
|
|
|
|
|
(1) Loans
placed on nonaccrual status are included in average balances. Net
loan fees and late charges included in interest income on loans
totaled $3.8 million and $3.1 million for the three months
ended December 31, 2015 and 2014, 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) |
|
|
|
|
|
|
|
|
|
Twelve Months Ended December 31, |
|
|
2015 |
|
|
|
2014 |
|
|
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 |
$ |
308,345 |
|
$ |
732 |
|
|
0.24 |
% |
|
$ |
207,530 |
|
$ |
496 |
|
|
0.24 |
% |
Loans
held for sale (1) |
|
44,533 |
|
|
1,671 |
|
|
3.75 |
% |
|
|
33,541 |
|
|
1,337 |
|
|
3.99 |
% |
Loans
(1) (2) |
|
4,594,395 |
|
|
240,669 |
|
|
5.24 |
% |
|
|
3,361,696 |
|
|
180,438 |
|
|
5.37 |
% |
Investment securities available for sale (2) |
|
445,986 |
|
|
10,092 |
|
|
2.26 |
% |
|
|
401,153 |
|
|
9,286 |
|
|
2.31 |
% |
Federal
funds sold |
|
6,812 |
|
|
16 |
|
|
0.23 |
% |
|
|
9,205 |
|
|
16 |
|
|
0.17 |
% |
Total interest earning assets |
|
5,400,071 |
|
|
253,180 |
|
|
4.69 |
% |
|
|
4,013,125 |
|
|
191,573 |
|
|
4.77 |
% |
|
|
|
|
|
|
|
|
Total
noninterest earning assets |
|
280,443 |
|
|
|
|
|
160,543 |
|
|
|
Less:
allowance for credit losses |
|
48,811 |
|
|
|
|
|
43,173 |
|
|
|
Total noninterest earning
assets |
|
231,632 |
|
|
|
|
|
117,370 |
|
|
|
TOTAL ASSETS |
$ |
5,631,703 |
|
|
|
|
$ |
4,130,495 |
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY |
|
|
|
|
|
|
|
Interest bearing
liabilities: |
|
|
|
|
|
|
|
Interest
bearing transaction |
$ |
182,518 |
|
$ |
291 |
|
|
0.16 |
% |
|
$ |
119,835 |
|
$ |
178 |
|
|
0.15 |
% |
Savings
and money market |
|
2,425,286 |
|
|
8,185 |
|
|
0.34 |
% |
|
|
1,950,138 |
|
|
6,265 |
|
|
0.32 |
% |
Time
deposits |
|
774,943 |
|
|
5,867 |
|
|
0.76 |
% |
|
|
449,108 |
|
|
3,195 |
|
|
0.71 |
% |
Total interest bearing
deposits |
|
3,382,747 |
|
|
14,343 |
|
|
0.42 |
% |
|
|
2,519,081 |
|
|
9,638 |
|
|
0.38 |
% |
Customer
repurchase agreements |
|
59,141 |
|
|
132 |
|
|
0.22 |
% |
|
|
63,490 |
|
|
143 |
|
|
0.23 |
% |
Other
short-term borrowings |
|
27,659 |
|
|
86 |
|
|
0.31 |
% |
|
|
7,288 |
|
|
31 |
|
|
0.42 |
% |
Long-term borrowings |
|
82,446 |
|
|
4,677 |
|
|
5.60 |
% |
|
|
77,081 |
|
|
3,283 |
|
|
4.20 |
% |
Total interest bearing
liabilities |
|
3,551,993 |
|
|
19,238 |
|
|
0.54 |
% |
|
|
2,666,940 |
|
|
13,095 |
|
|
0.49 |
% |
|
|
|
|
|
|
|
|
Noninterest bearing liabilities: |
|
|
|
|
|
|
|
Noninterest bearing demand |
|
1,314,516 |
|
|
|
|
|
994,007 |
|
|
|
Other
liabilities |
|
26,726 |
|
|
|
|
|
12,925 |
|
|
|
Total noninterest bearing
liabilities |
|
1,341,242 |
|
|
|
|
|
1,006,932 |
|
|
|
|
|
|
|
|
|
|
|
Shareholders’
equity |
|
738,468 |
|
|
|
|
|
456,623 |
|
|
|
TOTAL LIABILITIES AND SHAREHOLDERS'
EQUITY |
$ |
5,631,703 |
|
|
|
|
$ |
4,130,495 |
|
|
|
|
|
|
|
|
|
|
|
Net interest
income |
|
$ |
233,942 |
|
|
|
|
$ |
178,478 |
|
|
Net interest
spread |
|
|
|
4.15 |
% |
|
|
|
|
4.28 |
% |
Net interest
margin |
|
|
|
4.33 |
% |
|
|
|
|
4.44 |
% |
Cost of funds |
|
|
|
0.36 |
% |
|
|
|
|
0.33 |
% |
|
|
|
|
|
|
|
|
(1) Loans
placed on nonaccrual status are included in average balances. Net
loan fees and late charges included in interest income on loans
totaled $12.6 million and $11.5 million for the year ended
December 31, 2015 and 2014, respectively. |
(2)
Interest and fees on loans and investments exclude tax equivalent
adjustments. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Eagle Bancorp,
Inc. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Statements of
Income and Highlights Quarterly Trends (Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(dollars in thousands,
except per share data) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended |
|
December 31, |
|
September 30, |
|
June 30, |
|
March 31, |
|
December 31, |
|
September 30, |
|
June 30, |
|
March 31, |
Income
Statements: |
|
2015 |
|
|
|
2015 |
|
|
|
2015 |
|
|
|
2015 |
|
|
|
2014 |
|
|
|
2014 |
|
|
|
2014 |
|
|
|
2014 |
|
Total interest
income |
$ |
67,311 |
|
|
$ |
63,981 |
|
|
$ |
62,423 |
|
|
$ |
59,465 |
|
|
$ |
56,091 |
|
|
$ |
47,886 |
|
|
$ |
44,759 |
|
|
$ |
42,837 |
|
Total interest
expense |
|
4,735 |
|
|
|
4,896 |
|
|
|
4,873 |
|
|
|
4,734 |
|
|
|
4,275 |
|
|
|
3,251 |
|
|
|
2,739 |
|
|
|
2,830 |
|
Net interest
income |
|
62,576 |
|
|
|
59,085 |
|
|
|
57,550 |
|
|
|
54,731 |
|
|
|
51,816 |
|
|
|
44,635 |
|
|
|
42,020 |
|
|
|
40,007 |
|
Provision for credit
losses |
|
4,595 |
|
|
|
3,262 |
|
|
|
3,471 |
|
|
|
3,310 |
|
|
|
3,700 |
|
|
|
2,111 |
|
|
|
3,134 |
|
|
|
1,934 |
|
Net interest income
after provision for credit losses |
|
57,981 |
|
|
|
55,823 |
|
|
|
54,079 |
|
|
|
51,421 |
|
|
|
48,116 |
|
|
|
42,524 |
|
|
|
38,886 |
|
|
|
38,073 |
|
Noninterest income (before
investment gains/losses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
& extinguishment of debt) |
|
6,462 |
|
|
|
6,039 |
|
|
|
6,233 |
|
|
|
6,770 |
|
|
|
5,298 |
|
|
|
4,761 |
|
|
|
3,809 |
|
|
|
4,455 |
|
Gain/(loss) on sale of investment
securities |
|
30 |
|
|
|
60 |
|
|
|
- |
|
|
|
2,164 |
|
|
|
12 |
|
|
|
- |
|
|
|
2 |
|
|
|
8 |
|
Loss on early extinguishment of
debt |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(1,130 |
) |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
Total noninterest
income |
|
6,492 |
|
|
|
6,099 |
|
|
|
6,233 |
|
|
|
7,804 |
|
|
|
5,310 |
|
|
|
4,761 |
|
|
|
3,811 |
|
|
|
4,463 |
|
Salaries and employee
benefits |
|
15,977 |
|
|
|
15,383 |
|
|
|
14,683 |
|
|
|
15,706 |
|
|
|
15,703 |
|
|
|
14,942 |
|
|
|
13,015 |
|
|
|
13,608 |
|
Premises and equipment |
|
3,970 |
|
|
|
3,974 |
|
|
|
4,072 |
|
|
|
4,010 |
|
|
|
3,747 |
|
|
|
3,374 |
|
|
|
3,107 |
|
|
|
3,089 |
|
Marketing and advertising |
|
566 |
|
|
|
762 |
|
|
|
735 |
|
|
|
685 |
|
|
|
578 |
|
|
|
544 |
|
|
|
415 |
|
|
|
462 |
|
Merger expenses |
|
2 |
|
|
|
2 |
|
|
|
26 |
|
|
|
111 |
|
|
|
3,239 |
|
|
|
885 |
|
|
|
576 |
|
|
|
- |
|
Other expenses |
|
8,125 |
|
|
|
7,284 |
|
|
|
7,082 |
|
|
|
7,561 |
|
|
|
6,085 |
|
|
|
5,398 |
|
|
|
5,022 |
|
|
|
5,939 |
|
Total noninterest
expense |
|
28,640 |
|
|
|
27,405 |
|
|
|
26,598 |
|
|
|
28,073 |
|
|
|
29,352 |
|
|
|
25,143 |
|
|
|
22,135 |
|
|
|
23,098 |
|
Income before income
tax expense |
|
35,833 |
|
|
|
34,517 |
|
|
|
33,714 |
|
|
|
31,152 |
|
|
|
24,074 |
|
|
|
22,142 |
|
|
|
20,562 |
|
|
|
19,438 |
|
Income tax expense |
|
13,485 |
|
|
|
13,054 |
|
|
|
12,776 |
|
|
|
11,734 |
|
|
|
9,347 |
|
|
|
8,054 |
|
|
|
7,618 |
|
|
|
6,939 |
|
Net income |
|
22,348 |
|
|
|
21,463 |
|
|
|
20,938 |
|
|
|
19,418 |
|
|
|
14,727 |
|
|
|
14,088 |
|
|
|
12,944 |
|
|
|
12,499 |
|
Preferred stock
dividends |
|
62 |
|
|
|
180 |
|
|
|
179 |
|
|
|
180 |
|
|
|
180 |
|
|
|
151 |
|
|
|
142 |
|
|
|
141 |
|
Net income available to
common shareholders |
$ |
22,286 |
|
|
$ |
21,283 |
|
|
$ |
20,759 |
|
|
$ |
19,238 |
|
|
$ |
14,547 |
|
|
$ |
13,937 |
|
|
$ |
12,802 |
|
|
$ |
12,358 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Per Share
Data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per weighted
average common share, basic |
$ |
0.67 |
|
|
$ |
0.64 |
|
|
$ |
0.62 |
|
|
$ |
0.62 |
|
|
$ |
0.51 |
|
|
$ |
0.54 |
|
|
$ |
0.49 |
|
|
$ |
0.48 |
|
Earnings per weighted
average common share, diluted |
$ |
0.65 |
|
|
$ |
0.63 |
|
|
$ |
0.61 |
|
|
$ |
0.61 |
|
|
$ |
0.49 |
|
|
$ |
0.52 |
|
|
$ |
0.48 |
|
|
$ |
0.47 |
|
Weighted average common
shares outstanding, basic |
|
33,462,937 |
|
|
|
33,400,973 |
|
|
|
33,367,476 |
|
|
|
31,082,715 |
|
|
|
28,777,778 |
|
|
|
26,023,670 |
|
|
|
25,981,638 |
|
|
|
25,927,888 |
|
Weighted average common
shares outstanding, diluted |
|
34,069,786 |
|
|
|
34,026,412 |
|
|
|
33,997,989 |
|
|
|
31,776,323 |
|
|
|
29,632,685 |
|
|
|
26,654,186 |
|
|
|
26,623,784 |
|
|
|
26,575,155 |
|
Actual shares
outstanding |
|
33,467,893 |
|
|
|
33,405,510 |
|
|
|
33,394,563 |
|
|
|
33,303,467 |
|
|
|
30,139,396 |
|
|
|
26,022,307 |
|
|
|
25,985,659 |
|
|
|
25,975,186 |
|
Book value per common
share at period end |
$ |
22.07 |
|
|
$ |
21.38 |
|
|
$ |
20.76 |
|
|
$ |
20.11 |
|
|
$ |
18.21 |
|
|
$ |
14.83 |
|
|
$ |
14.25 |
|
|
$ |
13.62 |
|
Tangible book value per
common share at period end (1) |
$ |
18.83 |
|
|
$ |
18.10 |
|
|
$ |
17.46 |
|
|
$ |
16.82 |
|
|
$ |
14.56 |
|
|
$ |
14.71 |
|
|
$ |
14.12 |
|
|
$ |
13.49 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Performance
Ratios (annualized): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average
assets |
|
1.50 |
% |
|
|
1.47 |
% |
|
|
1.51 |
% |
|
|
1.49 |
% |
|
|
1.21 |
% |
|
|
1.37 |
% |
|
|
1.35 |
% |
|
|
1.36 |
% |
Return on average
common equity |
|
12.08 |
% |
|
|
11.95 |
% |
|
|
12.18 |
% |
|
|
13.24 |
% |
|
|
11.67 |
% |
|
|
14.52 |
% |
|
|
14.09 |
% |
|
|
14.38 |
% |
Net interest
margin |
|
4.38 |
% |
|
|
4.23 |
% |
|
|
4.33 |
% |
|
|
4.41 |
% |
|
|
4.42 |
% |
|
|
4.45 |
% |
|
|
4.48 |
% |
|
|
4.45 |
% |
Efficiency ratio
(2) |
|
41.47 |
% |
|
|
42.04 |
% |
|
|
41.70 |
% |
|
|
44.89 |
% |
|
|
51.38 |
% |
|
|
50.90 |
% |
|
|
48.30 |
% |
|
|
51.94 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
Ratios: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for credit
losses to total loans (3) |
|
1.05 |
% |
|
|
1.05 |
% |
|
|
1.07 |
% |
|
|
1.07 |
% |
|
|
1.07 |
% |
|
|
1.31 |
% |
|
|
1.33 |
% |
|
|
1.37 |
% |
Nonperforming loans to
total loans (3) |
|
0.26 |
% |
|
|
0.30 |
% |
|
|
0.33 |
% |
|
|
0.44 |
% |
|
|
0.52 |
% |
|
|
0.86 |
% |
|
|
0.69 |
% |
|
|
1.19 |
% |
Allowance for credit
losses to total nonperforming loans |
|
397.95 |
% |
|
|
347.82 |
% |
|
|
328.98 |
% |
|
|
244.12 |
% |
|
|
205.30 |
% |
|
|
152.25 |
% |
|
|
193.50 |
% |
|
|
115.67 |
% |
Nonperforming assets to
total assets |
|
0.31 |
% |
|
|
0.41 |
% |
|
|
0.44 |
% |
|
|
0.58 |
% |
|
|
0.68 |
% |
|
|
0.92 |
% |
|
|
0.80 |
% |
|
|
1.19 |
% |
Net charge-offs
(annualized) to average loans (3) |
|
0.18 |
% |
|
|
0.16 |
% |
|
|
0.21 |
% |
|
|
0.15 |
% |
|
|
0.26 |
% |
|
|
0.09 |
% |
|
|
0.20 |
% |
|
|
0.11 |
% |
Tier 1 leverage
ratio |
|
10.90 |
% |
|
|
11.93 |
% |
|
|
12.03 |
% |
|
|
12.19 |
% |
|
|
10.69 |
% |
|
|
10.70 |
% |
|
|
10.89 |
% |
|
|
10.83 |
% |
Total risk based
capital ratio |
|
12.75 |
% |
|
|
13.80 |
% |
|
|
13.75 |
% |
|
|
13.90 |
% |
|
|
12.97 |
% |
|
|
14.48 |
% |
|
|
12.71 |
% |
|
|
13.04 |
% |
Common Equity Tier
1 |
|
10.68 |
% |
|
|
10.44 |
% |
|
|
10.37 |
% |
|
|
10.43 |
% |
|
n/a |
|
n/a |
|
n/a |
|
n/a |
Tangible common equity
to tangible assets (1) |
|
10.56 |
% |
|
|
10.46 |
% |
|
|
10.33 |
% |
|
|
10.39 |
% |
|
|
8.54 |
% |
|
|
9.19 |
% |
|
|
9.38 |
% |
|
|
9.22 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average
Balances (in thousands): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets |
$ |
5,908,115 |
|
|
$ |
5,776,404 |
|
|
$ |
5,562,220 |
|
|
$ |
5,271,483 |
|
|
$ |
4,844,409 |
|
|
$ |
4,070,914 |
|
|
$ |
3,853,441 |
|
|
$ |
3,740,225 |
|
Total earning
assets |
$ |
5,675,048 |
|
|
$ |
5,544,835 |
|
|
$ |
5,332,397 |
|
|
$ |
5,039,428 |
|
|
$ |
4,654,423 |
|
|
$ |
3,977,859 |
|
|
$ |
3,760,720 |
|
|
$ |
3,647,305 |
|
Total loans |
$ |
4,859,391 |
|
|
$ |
4,636,298 |
|
|
$ |
4,499,871 |
|
|
$ |
4,376,248 |
|
|
$ |
3,993,020 |
|
|
$ |
3,317,731 |
|
|
$ |
3,141,976 |
|
|
$ |
2,981,917 |
|
Total deposits |
$ |
4,952,282 |
|
|
$ |
4,842,706 |
|
|
$ |
4,655,234 |
|
|
$ |
4,330,403 |
|
|
$ |
4,025,900 |
|
|
$ |
3,470,231 |
|
|
$ |
3,328,380 |
|
|
$ |
3,217,916 |
|
Total borrowings |
$ |
169,745 |
|
|
$ |
129,136 |
|
|
$ |
128,733 |
|
|
$ |
250,698 |
|
|
$ |
237,401 |
|
|
$ |
152,249 |
|
|
$ |
98,105 |
|
|
$ |
102,146 |
|
Total stockholders’
equity |
$ |
757,199 |
|
|
$ |
778,279 |
|
|
$ |
755,541 |
|
|
$ |
661,364 |
|
|
$ |
561,467 |
|
|
$ |
437,370 |
|
|
$ |
421,029 |
|
|
$ |
405,121 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EAGLE BANCORP, INC.
CONTACT:
Michael T. Flynn
301.986.1800
Eagle Bancorp (NASDAQ:EGBN)
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From Jun 2024 to Jul 2024
Eagle Bancorp (NASDAQ:EGBN)
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From Jul 2023 to Jul 2024