Eagle Bancorp, Inc. (the “Company”) (NASDAQ:EGBN), the parent
company of EagleBank, today announced record quarterly net income
of $27.0 million for the three months ended March 31, 2017, (basic
and diluted earnings per common share of $0.79) a 16% increase over
the $23.3 million net income (basic and diluted earnings per common
share of $0.70 and $0.68 respectively) for the three months ended
March 31, 2016. GAAP net income for the first quarter of 2017
includes a tax benefit associated with new accounting guidance
relating to share-based compensation.
Excluding the accounting change described below,
net income was $26.5 million for the three months ended March 31,
2017, a 14% increase over the $23.3 million net income for the
three months ended March 31, 2016.
Excluding the accounting change, net income per
basic common share for the three months ended March 31, 2017 was
$0.78 compared to $0.70 for the same period in 2016, an 11%
increase and net income per diluted common share for the three
months ended March 31, 2017 was $0.77 compared to $0.68 for the
same period in 2016, a 13% increase.
“We are very pleased to report our thirty-third
consecutive quarter of record earnings, which continued to exhibit
positive trends of balance sheet growth, revenue growth, solid
asset quality and favorable operating leverage,” noted Ronald D.
Paul, Chairman and Chief Executive Officer of Eagle Bancorp, Inc.
Mr. Paul added, “in addition to quarterly earnings having increased
for each quarter since the fourth quarter of 2008, the Company
surpassed $7.0 billion in total assets in the quarter.”
The Company’s performance in the first quarter
of 2017 as compared to the first quarter of 2016 was highlighted by
growth in total loans of 13% and in total deposits of 12%; by 6%
growth in total revenue; by an annualized net charge-off ratio to
average loans of 0.04%; by a low level of nonperforming assets to
total assets of 0.22% and by further improvement in operating
leverage from an already favorable position. For the first quarter
in 2017, the efficiency ratio was 40.06%. Mr. Paul added, “at a
time when the net interest margins of banks are being challenged
given the continuing low interest rate environment, the Company
remains committed to emphasizing favorable cost management measures
and strong productivity.” The record first quarter earnings
resulted in an annualized return on average assets (“ROAA”) of
1.62% (1.59% excluding the accounting change) and an annualized
return on average common equity (“ROACE”) of 12.74% (12.51%
excluding the accounting change).
In the first quarter of 2017, total loans grew
2.6% over December 31, 2016, and total deposits increased 1.3% over
December 31, 2016. Mr. Paul noted, “while both loan and deposit
growth experienced seasonally lower growth in the first quarter,
the pipeline of loan commitments and new relationship opportunities
remains strong. Additionally, the mix of noninterest deposits to
total deposits averaged over 32% in the first quarter of 2017.”
The net interest margin was 4.14% for the first
quarter of 2017, up 18 basis points from the fourth quarter of 2016
and was due substantially to a higher loan mix, coupled with higher
loan yields. As compared to the first quarter in 2016, the net
interest margin was 17 basis points lower. Mr. Paul noted, “while
we are seeing a higher cost of funds we are also experiencing
improved loan yields.” The Company’s net interest income increased
7% in the first quarter of 2017 over 2016 as the Company continues
to see good lending opportunities and has continued its emphasis on
disciplined pricing for both new loans and funding sources.
The Company believes that it has a superior net interest margin
compared to peers, but it is also focused on all factors that
contribute to Earnings Per Share (“EPS”) growth.
Total revenue (net interest income plus
noninterest income) for the first quarter of 2017 was $73.0
million, or 6% above the $68.9 million of total revenue earned for
the first quarter of 2016 and was just 1% below the $74.0 million
of revenue earned in the fourth quarter of 2016 due to a lower
average balance sheet.
The primary driver of revenue growth for the
first quarter of 2017 as compared to the first quarter in 2016 was
net interest income growth ($66.9 million versus $62.6 million).
Noninterest income declined by 4% in the first quarter 2017
compared to the same period in 2016, due substantially to an OREO
net gain of $573 thousand recorded in the first quarter of 2016.
Excluding this net gain and gains on sales of investment
securities, core noninterest income was $5.6 million in the first
quarter of 2017 as compared to $5.1 million for the first quarter
of 2016, an increase of 9%. The core increase was attributable to
increased gains on sale of residential real estate loans.
During the first quarter of 2017, the Company
adopted new accounting guidance for share-based transactions. That
guidance requires that all excess tax benefits and tax deficiencies
associated with share-based compensation be recognized as income
tax expense or benefits in the income statement. Previously, tax
effects resulting from changes in EGBN’s stock price subsequent to
the grant date were recorded directly to shareholders’ equity at
the time of vesting or exercise. The adoption of this new standard
(ASU 2016-09) resulted in a $589 thousand, or $0.02 per share,
reduction to income tax expense in the first quarter of 2017.
While the Company’s primary focus continues to
be on generating spread income, management also looks to
residential mortgage banking as well as Small Business
Administration (“SBA”) loan activity as components of the Company’s
ongoing noninterest income growth opportunities. For the first
quarter of 2017, gains on the sale of residential mortgage loans
were $2.0 million as compared to $1.2 million for the first quarter
of 2016. Sales of SBA guaranteed loans resulted in modest gains of
$57 thousand on sales for the first quarter of 2017 versus $243
thousand for the same period in 2016. Quarter to quarter volatility
in SBA activity continues. The Company remains committed to this
line of business.
Asset quality measures remained solid at March
31, 2017. Net charge-offs (annualized) were 0.04% of average loans
for the first quarter of 2017, as compared to 0.09% of average
loans for the first quarter of 2016. At March 31, 2017, the
Company’s nonperforming loans amounted to $14.4 million (0.25% of
total loans) as compared to $21.9 million (0.43% of total loans) at
March 31, 2016 and $17.9 million (0.31% of total loans) at December
31, 2016. Nonperforming assets amounted to $15.7 million (0.22% of
total assets) at March 31, 2017 compared to $25.8 million (0.42% of
total assets) at March 31, 2016 and $20.6 million (0.30% of total
assets) at December 31, 2016.
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,
including placing loans on nonaccrual status. Based on a thorough
risk analysis and consistent application of allowance methodology,
management believes, that its allowance for credit losses, at 1.03%
of total loans (excluding loans held for sale) at March 31, 2017,
is adequate to absorb potential credit losses within the loan
portfolio at that date. The allowance for credit losses was 1.06%
at March 31, 2016 and 1.04% of total loans at December 31, 2016.
The allowance for credit losses represented 417% of nonperforming
loans at March 31, 2017, as compared to 249% at March 31, 2016 and
330% at December 31, 2016.
“The Company’s focus on productivity remained
quite strong in the quarter,” noted Mr. Paul. The efficiency ratio
of 40.06% reflects management’s ongoing efforts to maintain
superior operating leverage. The annualized level of noninterest
expenses as a percentage of average assets has declined to 1.73% in
the first quarter of 2017 as compared to 1.85% in the first quarter
of 2016. A high level of revenue per salaried employee, a stable
and well positioned branch network and improved use of technology
to achieve heightened productivity have been the major reasons for
improved operating leverage. The Company’s goal is to maximize
operating performance without inhibiting growth or negatively
impacting our ability to service our customers. Mr. Paul further
noted, “We continue to maintain strict oversight of expenses, while
retaining an infrastructure to remain competitive, support our
growth initiatives and manage risk.”
Total assets at March 31, 2017 were $7.09
billion, a 16% increase as compared to $6.13 billion at March 31,
2016, and a 3% increase as compared to $6.89 billion at December
31, 2016. Total loans (excluding loans held for sale) were $5.82
billion at March 31, 2017, a 13% increase as compared to $5.16
billion at March 31, 2016, and a 3% increase as compared to $5.68
billion at December 31, 2016. Loans held for sale amounted to $29.6
million at March 31, 2017 as compared to $45.7 million at March 31,
2016, a 35% decrease, and $51.6 million at December 31, 2016, a 43%
decrease. The investment portfolio totaled $499.8 million at March
31, 2017, a 3% increase from the $487.6 million balance at March
31, 2016. As compared to December 31, 2016, the investment
portfolio at March 31, 2017 decreased by $38.3 million or 7%.
Total deposits at March 31, 2017 were $5.79
billion compared to deposits of $5.19 billion at March 31, 2016, a
12% increase and $5.72 billion at December 31, 2016, a 1% increase.
We continue to work on expanding the breadth and depth of our
existing relationships while we pursue building new relationships.
Total borrowed funds (excluding customer repurchase agreements)
were $291.6 million at March 31, 2017, $69.0 million at March 31,
2016 and $216.5 million at December 31, 2016.
Total shareholders’ equity at March 31, 2017
increased 15%, to $873.0 million, compared to $762.5 million at
March 31, 2016, and increased 4%, from $842.8 million, at December
31, 2016. The increase in shareholders’ equity at March 31, 2017
compared to the same period in 2016 was primarily the result of
retained earnings. The Company’s capital position remains
substantially in excess of regulatory requirements for well
capitalized status, with a total risk based capital ratio of 14.97%
at March 31, 2017, as compared to 12.87% at March 31, 2016, and
14.89% at December 31, 2016. In addition, the tangible common
equity ratio was 10.97% at March 31, 2017, compared to 10.86% at
March 31, 2016 and 10.84% at December 31, 2016.
For the three months ended March 31, 2017, the
Company reported an annualized ROAA of 1.62% (1.59% excluding the
accounting change) as compared to 1.54% for the three months ended
March 31, 2016. The annualized ROACE for the three months ended
March 31, 2017 was 12.74% (12.51% excluding the accounting change),
as compared to 12.39% for the three months ended March 31,
2016.
Net interest income increased 7% for the three
months ended March 31, 2017 over the same period in 2016 ($66.9
million versus $62.6 million), resulting from growth in average
earning assets of 12%. The net interest margin was 4.14% for the
three months ended March 31, 2017, as compared to 4.31% for the
three months ended March 31, 2016. 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 5.13% for the first quarter in 2017 has been a
significant factor in its overall profitability.
The provision for credit losses was $1.4 million
for the three months ended March 31, 2017 as compared to $3.0
million for the three months ended March 31, 2016. The lower
provisioning in the first quarter of 2017, as compared to the first
quarter of 2016, is due to lower net charge-offs and overall
improvement in asset quality, coupled with lower loan growth. Net
charge-offs of $623 thousand in the first quarter of 2017
represented an annualized 0.04% of average loans, excluding loans
held for sale, as compared to $1.1 million, or an annualized 0.09%
of average loans, excluding loans held for sale, in the first
quarter of 2016. Net charge-offs in the first quarter of 2017 were
attributable primarily to commercial real estate-income producing
($450 thousand) and commercial ($123 thousand) loans.
Noninterest income for the three months ended
March 31, 2017 decreased to $6.1 million from $6.3 million for the
three months ended March 31, 2016, a 4% decrease, primarily due to
a net gain on the sale of OREO in the amount of $573 thousand in
March 2016. Gain on sale of loans was $2.0 million for the three
months ended March 31, 2017 versus $1.5 million for the same period
in 2016. Residential mortgage loans closed were $150 million for
the first quarter in 2017 versus $132 million for the first quarter
of 2016. Net investment gains were $505 thousand for the three
months ended March 31, 2017 compared to $624 thousand for the same
period in 2016.
The efficiency ratio, which measures the ratio
of noninterest expense to total revenue, was 40.06% for the first
quarter of 2017, as compared to 40.80% for the first quarter of
2016. Noninterest expenses totaled $29.2 million for the three
months ended March 31, 2017, as compared to $28.1 million for the
three months ended March 31, 2016, a 4% increase. Cost increases
for salaries and benefits were $558 thousand, due primarily to
increased staff and merit increases. Marketing and advertising
expense increased by $120 thousand primarily due to costs
associated with digital and print advertising and sponsorships.
FDIC expenses were $265 thousand lower due to a change to the FDIC
insurance premium formula for small institutions effective July 1,
2016.
The effective income tax rate for the first
quarter of 2017 was 36.2% (37.6% excluding the accounting change)
as compared to 38.2% for the first quarter of 2016 and 39.0% for
the fourth quarter of 2016. Excluding the accounting change,
the lower effective rate was due primarily to a lower state income
tax apportionment factor.
The financial information which follows provides
more detail on the Company’s financial performance for the three
months ended March 31, 2017 as compared to the three months ended
March 31, 2016 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, 2016 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 first quarter 2017
financial results on Wednesday, April 19, 2017 at 10:00 a.m.
eastern daylight time. The public is invited to listen to this
conference call by dialing 1.877.303.6220, conference ID Code is
93184038, 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 May 3, 2017.
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, 2016 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. |
|
|
|
Consolidated
Financial Highlights (Unaudited) |
|
|
|
(dollars in thousands,
except per share data) |
|
|
Three Months Ended March 31, |
|
|
2017 |
|
|
|
2016 |
|
Income
Statements: |
|
|
|
Total interest
income |
$ |
75,794 |
|
|
$ |
67,807 |
|
Total interest
expense |
|
8,900 |
|
|
|
5,217 |
|
Net interest
income |
|
66,894 |
|
|
|
62,590 |
|
Provision for credit
losses |
|
1,397 |
|
|
|
3,043 |
|
Net interest income
after provision for credit losses |
|
65,497 |
|
|
|
59,547 |
|
Noninterest income
(before investment gains) |
|
5,565 |
|
|
|
5,666 |
|
Gain on sale of
investment securities |
|
505 |
|
|
|
624 |
|
Total noninterest
income |
|
6,070 |
|
|
|
6,290 |
|
Total noninterest
expense |
|
29,232 |
|
|
|
28,102 |
|
Income before income
tax expense |
|
42,335 |
|
|
|
37,735 |
|
Income tax expense |
|
15,318 |
|
|
|
14,413 |
|
Net income available to
common shareholders |
$ |
27,017 |
|
|
$ |
23,322 |
|
|
|
|
|
Per Share
Data: |
|
|
|
Earnings per weighted
average common share, basic |
$ |
0.79 |
|
|
$ |
0.70 |
|
Earnings per weighted
average common share, diluted |
$ |
0.79 |
|
|
$ |
0.68 |
|
Weighted average common
shares outstanding, basic |
|
34,069,528 |
|
|
|
33,518,998 |
|
Weighted average common
shares outstanding, diluted |
|
34,284,316 |
|
|
|
34,104,237 |
|
Actual shares
outstanding at period end |
|
34,110,056 |
|
|
|
33,581,599 |
|
Book value per common
share at period end |
$ |
25.59 |
|
|
$ |
22.71 |
|
Tangible book value per
common share at period end (1) |
$ |
22.46 |
|
|
$ |
19.48 |
|
|
|
|
|
Performance
Ratios (annualized): |
|
|
|
Return on average
assets |
|
1.62 |
% |
|
|
1.54 |
% |
Return on average
common equity |
|
12.74 |
% |
|
|
12.39 |
% |
Net interest
margin |
|
4.14 |
% |
|
|
4.31 |
% |
Efficiency ratio
(2) |
|
40.06 |
% |
|
|
40.80 |
% |
|
|
|
|
Other
Ratios: |
|
|
|
Allowance for credit
losses to total loans (3) |
|
1.03 |
% |
|
|
1.06 |
% |
Allowance for credit
losses to total nonperforming loans |
|
416.91 |
% |
|
|
249.03 |
% |
Nonperforming loans to
total loans (3) |
|
0.25 |
% |
|
|
0.43 |
% |
Nonperforming assets to
total assets |
|
0.22 |
% |
|
|
0.42 |
% |
Net charge-offs
(annualized) to average loans (3) |
|
0.04 |
% |
|
|
0.09 |
% |
Common equity to total
assets |
|
12.31 |
% |
|
|
12.44 |
% |
Tier 1 capital (to
average assets) |
|
11.51 |
% |
|
|
11.01 |
% |
Total capital (to risk
weighted assets) |
|
14.97 |
% |
|
|
12.87 |
% |
Common equity tier 1
capital (to risk weighted assets) |
|
10.97 |
% |
|
|
10.83 |
% |
Tangible common equity
ratio (1) |
|
10.97 |
% |
|
|
10.86 |
% |
|
|
|
|
Loan Balances -
Period End (in thousands): |
|
|
|
Commercial and
Industrial |
$ |
1,235,832 |
|
|
$ |
1,060,047 |
|
Commercial real estate
- owner occupied |
$ |
638,132 |
|
|
$ |
569,915 |
|
Commercial real estate
- income producing |
$ |
2,538,734 |
|
|
$ |
2,138,091 |
|
1-4 Family
mortgage |
$ |
155,021 |
|
|
$ |
149,159 |
|
Construction -
commercial and residential |
$ |
1,021,620 |
|
|
$ |
1,034,689 |
|
Construction - C&I
(owner occupied) |
$ |
130,513 |
|
|
$ |
87,324 |
|
Home equity |
$ |
100,265 |
|
|
$ |
110,985 |
|
Other consumer |
$ |
4,829 |
|
|
$ |
5,661 |
|
|
|
|
|
Average
Balances (in thousands): |
|
|
|
Total assets |
$ |
6,772,164 |
|
|
$ |
6,072,533 |
|
Total earning
assets |
$ |
6,535,926 |
|
|
$ |
5,844,915 |
|
Total loans |
$ |
5,705,261 |
|
|
$ |
5,070,386 |
|
Total deposits |
$ |
5,554,402 |
|
|
$ |
5,143,670 |
|
Total borrowings |
$ |
318,143 |
|
|
$ |
139,324 |
|
Total shareholders’
equity |
$ |
859,779 |
|
|
$ |
756,916 |
|
|
|
|
|
(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. 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) |
|
|
|
|
Three Months Ended |
|
Three Months Ended |
|
March 31, 2017 |
|
March 31, 2016 |
Common shareholders'
equity |
$ |
873,042 |
|
|
$ |
762,496 |
|
Less: Intangible
assets |
|
(107,061 |
) |
|
|
(108,268 |
) |
Tangible common
equity |
$ |
765,981 |
|
|
$ |
654,228 |
|
|
|
|
|
Book value per common
share |
$ |
25.59 |
|
|
$ |
22.71 |
|
Less: Intangible book
value per common share |
|
(3.13 |
) |
|
|
(3.23 |
) |
Tangible book
value per common share |
$ |
22.46 |
|
|
$ |
19.48 |
|
|
|
|
|
Total assets |
$ |
7,090,163 |
|
|
$ |
6,131,222 |
|
Less: Intangible
assets |
|
(107,061 |
) |
|
|
(108,268 |
) |
Tangible
assets |
$ |
6,983,102 |
|
|
$ |
6,022,954 |
|
Tangible common
equity ratio |
|
10.97 |
% |
|
|
10.86 |
% |
|
|
|
|
(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. |
|
|
|
|
|
Consolidated
Balance Sheets (Unaudited) |
|
|
|
|
|
(dollars in thousands,
except per share data) |
|
|
|
|
|
|
|
|
|
|
|
Assets |
March 31, 2017 |
|
December 31, 2016 |
|
March 31, 2016 |
Cash and due from
banks |
$ |
11,899 |
|
|
$ |
10,285 |
|
|
$ |
11,856 |
|
Federal funds sold |
|
3,222 |
|
|
|
2,397 |
|
|
|
14,905 |
|
Interest bearing
deposits with banks and other short-term investments |
|
464,061 |
|
|
|
355,481 |
|
|
|
175,136 |
|
Investment securities
available for sale, at fair value |
|
499,807 |
|
|
|
538,108 |
|
|
|
487,609 |
|
Federal Reserve and
Federal Home Loan Bank stock |
|
25,573 |
|
|
|
21,600 |
|
|
|
17,696 |
|
Loans held for
sale |
|
29,567 |
|
|
|
51,629 |
|
|
|
45,679 |
|
Loans |
|
5,824,946 |
|
|
|
5,677,893 |
|
|
|
5,155,871 |
|
Less allowance for
credit losses |
|
(59,848 |
) |
|
|
(59,074 |
) |
|
|
(54,608 |
) |
Loans,
net |
|
5,765,098 |
|
|
|
5,618,819 |
|
|
|
5,101,263 |
|
Premises and equipment,
net |
|
20,535 |
|
|
|
20,661 |
|
|
|
17,939 |
|
Deferred income
taxes |
|
48,203 |
|
|
|
48,220 |
|
|
|
41,136 |
|
Bank owned life
insurance |
|
60,496 |
|
|
|
60,130 |
|
|
|
58,974 |
|
Intangible assets,
net |
|
107,061 |
|
|
|
107,419 |
|
|
|
108,268 |
|
Other real estate
owned |
|
1,394 |
|
|
|
2,694 |
|
|
|
3,846 |
|
Other assets |
|
53,247 |
|
|
|
52,653 |
|
|
|
46,915 |
|
Total Assets |
$ |
7,090,163 |
|
|
$ |
6,890,096 |
|
|
$ |
6,131,222 |
|
|
|
|
|
|
|
Liabilities and
Shareholders' Equity |
|
|
|
|
|
Deposits: |
|
|
|
|
|
Noninterest bearing demand |
$ |
1,831,837 |
|
|
$ |
1,775,684 |
|
|
$ |
1,474,102 |
|
Interest
bearing transaction |
|
372,947 |
|
|
|
289,122 |
|
|
|
219,646 |
|
Savings
and money market |
|
2,794,030 |
|
|
|
2,902,560 |
|
|
|
2,704,249 |
|
Time,
$100,000 or more |
|
455,830 |
|
|
|
464,842 |
|
|
|
409,698 |
|
Other
time |
|
334,845 |
|
|
|
283,906 |
|
|
|
381,951 |
|
Total
deposits |
|
5,789,489 |
|
|
|
5,716,114 |
|
|
|
5,189,646 |
|
Customer repurchase
agreements |
|
82,160 |
|
|
|
68,876 |
|
|
|
66,963 |
|
Other short-term
borrowings |
|
75,000 |
|
|
|
- |
|
|
|
- |
|
Long-term
borrowings |
|
216,612 |
|
|
|
216,514 |
|
|
|
68,958 |
|
Other liabilities |
|
53,860 |
|
|
|
45,793 |
|
|
|
43,159 |
|
Total liabilities |
|
6,217,121 |
|
|
|
6,047,297 |
|
|
|
5,368,726 |
|
|
|
|
|
|
|
Shareholders'
Equity |
|
|
|
|
|
Common stock, par value
$.01 per share; shares authorized 100,000,000, shares |
|
|
|
|
|
issued
and outstanding 34,110,056, 34,023,850, and 33,581,599,
respectively |
|
339 |
|
|
|
338 |
|
|
|
333 |
|
Warrant |
|
- |
|
|
|
- |
|
|
|
946 |
|
Additional paid in
capital |
|
515,656 |
|
|
|
513,531 |
|
|
|
505,338 |
|
Retained earnings |
|
358,328 |
|
|
|
331,311 |
|
|
|
256,926 |
|
Accumulated other
comprehensive loss |
|
(1,281 |
) |
|
|
(2,381 |
) |
|
|
(1,047 |
) |
Total Shareholders' Equity |
|
873,042 |
|
|
|
842,799 |
|
|
|
762,496 |
|
Total Liabilities and Shareholders' Equity |
$ |
7,090,163 |
|
|
$ |
6,890,096 |
|
|
$ |
6,131,222 |
|
|
|
|
|
|
|
Eagle Bancorp,
Inc. |
|
|
|
Consolidated
Statements of Income (Unaudited) |
|
|
|
(dollars in thousands,
except per share data) |
|
|
|
|
|
|
Three Months Ended March 31, |
Interest
Income |
|
2017 |
|
|
2016 |
Interest
and fees on loans |
$ |
72,471 |
|
$ |
64,922 |
Interest
and dividends on investment securities |
|
2,833 |
|
|
2,588 |
Interest
on balances with other banks and short-term investments |
|
483 |
|
|
284 |
Interest
on federal funds sold |
|
7 |
|
|
13 |
Total
interest income |
|
75,794 |
|
|
67,807 |
Interest
Expense |
|
|
|
Interest
on deposits |
|
5,830 |
|
|
4,143 |
Interest
on customer repurchase agreements |
|
38 |
|
|
37 |
Interest
on short-term borrowings |
|
53 |
|
|
- |
Interest
on long-term borrowings |
|
2,979 |
|
|
1,037 |
Total
interest expense |
|
8,900 |
|
|
5,217 |
Net Interest
Income |
|
66,894 |
|
|
62,590 |
Provision for
Credit Losses |
|
1,397 |
|
|
3,043 |
Net Interest
Income After Provision For Credit Losses |
|
65,497 |
|
|
59,547 |
|
|
|
|
Noninterest
Income |
|
|
|
Service
charges on deposits |
|
1,472 |
|
|
1,448 |
Gain on
sale of loans |
|
2,048 |
|
|
1,463 |
Gain on
sale of investment securities |
|
505 |
|
|
624 |
Increase
in the cash surrender value of bank owned life insurance |
|
367 |
|
|
390 |
Other
income |
|
1,678 |
|
|
2,365 |
Total
noninterest income |
|
6,070 |
|
|
6,290 |
Noninterest
Expense |
|
|
|
Salaries
and employee benefits |
|
16,677 |
|
|
16,119 |
Premises
and equipment expenses |
|
3,847 |
|
|
3,826 |
Marketing
and advertising |
|
894 |
|
|
774 |
Data
processing |
|
2,041 |
|
|
2,014 |
Legal,
accounting and professional fees |
|
1,002 |
|
|
1,063 |
FDIC
insurance |
|
544 |
|
|
809 |
Other
expenses |
|
4,227 |
|
|
3,497 |
Total
noninterest expense |
|
29,232 |
|
|
28,102 |
Income Before
Income Tax Expense |
|
42,335 |
|
|
37,735 |
Income Tax
Expense |
|
15,318 |
|
|
14,413 |
Net Income
Available to Common Shareholders |
$ |
27,017 |
|
$ |
23,322 |
|
|
|
|
Earnings Per
Common Share |
|
|
|
Basic |
$ |
0.79 |
|
$ |
0.70 |
Diluted |
$ |
0.79 |
|
$ |
0.68 |
|
|
|
|
Eagle Bancorp, Inc. |
Consolidated Average Balances, Interest Yields
And Rates (Unaudited) |
(dollars in thousands) |
|
|
|
|
|
|
|
|
|
Three Months Ended March 31, |
|
|
2017 |
|
|
|
2016 |
|
|
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 |
$ |
269,680 |
$ |
483 |
0.73 |
% |
|
$ |
236,131 |
$ |
284 |
0.48 |
% |
Loans
held for sale (1) |
|
29,378 |
|
283 |
3.85 |
% |
|
|
29,247 |
|
273 |
3.73 |
% |
Loans
(1) (2) |
|
5,705,261 |
|
72,188 |
5.13 |
% |
|
|
5,070,386 |
|
64,649 |
5.13 |
% |
Investment securities available for sale (2) |
|
526,210 |
|
2,833 |
2.18 |
% |
|
|
498,187 |
|
2,588 |
2.09 |
% |
Federal
funds sold |
|
5,397 |
|
7 |
0.53 |
% |
|
|
10,964 |
|
13 |
0.48 |
% |
Total
interest earning assets |
|
6,535,926 |
|
75,794 |
4.70 |
% |
|
|
5,844,915 |
|
67,807 |
4.67 |
% |
|
|
|
|
|
|
|
|
Total
noninterest earning assets |
|
295,545 |
|
|
|
|
281,535 |
|
|
Less:
allowance for credit losses |
|
59,307 |
|
|
|
|
53,917 |
|
|
Total
noninterest earning assets |
|
236,238 |
|
|
|
|
227,618 |
|
|
TOTAL ASSETS |
$ |
6,772,164 |
|
|
|
$ |
6,072,533 |
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY |
|
|
|
|
|
|
|
Interest bearing
liabilities: |
|
|
|
|
|
|
|
Interest
bearing transaction |
$ |
331,235 |
$ |
237 |
0.29 |
% |
|
$ |
189,997 |
$ |
101 |
0.21 |
% |
Savings
and money market |
|
2,690,526 |
|
3,865 |
0.58 |
% |
|
|
2,755,028 |
|
2,519 |
0.37 |
% |
Time
deposits |
|
737,777 |
|
1,728 |
0.95 |
% |
|
|
746,449 |
|
1,523 |
0.82 |
% |
Total
interest bearing deposits |
|
3,759,538 |
|
5,830 |
0.63 |
% |
|
|
3,691,474 |
|
4,143 |
0.45 |
% |
Customer
repurchase agreements |
|
69,628 |
|
38 |
0.22 |
% |
|
|
70,385 |
|
37 |
0.21 |
% |
Other
short-term borrowings |
|
31,944 |
|
53 |
0.66 |
% |
|
|
- |
|
- |
- |
|
Long-term borrowings |
|
216,571 |
|
2,979 |
5.50 |
% |
|
|
68,939 |
|
1,037 |
5.95 |
% |
Total
interest bearing liabilities |
|
4,077,681 |
|
8,900 |
0.89 |
% |
|
|
3,830,798 |
|
5,217 |
0.55 |
% |
|
|
|
|
|
|
|
|
Noninterest bearing liabilities: |
|
|
|
|
|
|
|
Noninterest bearing demand |
|
1,794,864 |
|
|
|
|
1,452,196 |
|
|
Other
liabilities |
|
39,840 |
|
|
|
|
32,623 |
|
|
Total
noninterest bearing liabilities |
|
1,834,704 |
|
|
|
|
1,484,819 |
|
|
|
|
|
|
|
|
|
|
Shareholders’
Equity |
|
859,779 |
|
|
|
|
756,916 |
|
|
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY |
$ |
6,772,164 |
|
|
|
$ |
6,072,533 |
|
|
|
|
|
|
|
|
|
|
Net interest
income |
|
$ |
66,894 |
|
|
|
$ |
62,590 |
|
Net interest
spread |
|
|
3.81 |
% |
|
|
|
4.12 |
% |
Net interest
margin |
|
|
4.14 |
% |
|
|
|
4.31 |
% |
Cost of funds |
|
|
0.56 |
% |
|
|
|
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 $4.0 million and $3.8
million for the three months ended March 31, 2017 and 2016,
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 |
|
March 31, |
|
December 31, |
|
September 30, |
|
June 30, |
|
March 31, |
|
December 31, |
|
September 30, |
|
June 30, |
Income
Statements: |
|
2017 |
|
|
|
2016 |
|
|
|
2016 |
|
|
|
2016 |
|
|
|
2016 |
|
|
|
2015 |
|
|
|
2015 |
|
|
|
2015 |
|
Total interest
income |
$ |
75,794 |
|
|
$ |
75,795 |
|
|
$ |
72,431 |
|
|
$ |
69,772 |
|
|
$ |
67,807 |
|
|
$ |
67,311 |
|
|
$ |
63,981 |
|
|
$ |
62,423 |
|
Total interest
expense |
|
8,900 |
|
|
|
8,771 |
|
|
|
7,703 |
|
|
|
5,950 |
|
|
|
5,217 |
|
|
|
4,735 |
|
|
|
4,896 |
|
|
|
4,873 |
|
Net interest
income |
|
66,894 |
|
|
|
67,024 |
|
|
|
64,728 |
|
|
|
63,822 |
|
|
|
62,590 |
|
|
|
62,576 |
|
|
|
59,085 |
|
|
|
57,550 |
|
Provision for credit
losses |
|
1,397 |
|
|
|
2,112 |
|
|
|
2,288 |
|
|
|
3,888 |
|
|
|
3,043 |
|
|
|
4,595 |
|
|
|
3,262 |
|
|
|
3,471 |
|
Net interest income
after provision for credit losses |
|
65,497 |
|
|
|
64,912 |
|
|
|
62,440 |
|
|
|
59,934 |
|
|
|
59,547 |
|
|
|
57,981 |
|
|
|
55,823 |
|
|
|
54,079 |
|
Noninterest income (before investment gains) |
|
5,565 |
|
|
|
6,943 |
|
|
|
6,404 |
|
|
|
7,077 |
|
|
|
5,666 |
|
|
|
6,462 |
|
|
|
6,039 |
|
|
|
6,233 |
|
Gain on
sale of investment securities |
|
505 |
|
|
|
71 |
|
|
|
1 |
|
|
|
498 |
|
|
|
624 |
|
|
|
30 |
|
|
|
60 |
|
|
|
- |
|
Total noninterest
income |
|
6,070 |
|
|
|
7,014 |
|
|
|
6,405 |
|
|
|
7,575 |
|
|
|
6,290 |
|
|
|
6,492 |
|
|
|
6,099 |
|
|
|
6,233 |
|
Salaries
and employee benefits |
|
16,677 |
|
|
|
17,853 |
|
|
|
17,130 |
|
|
|
15,908 |
|
|
|
16,119 |
|
|
|
15,977 |
|
|
|
15,383 |
|
|
|
14,683 |
|
Premises
and equipment |
|
3,847 |
|
|
|
3,699 |
|
|
|
3,786 |
|
|
|
3,807 |
|
|
|
3,826 |
|
|
|
3,970 |
|
|
|
3,974 |
|
|
|
4,072 |
|
Marketing
and advertising |
|
894 |
|
|
|
944 |
|
|
|
857 |
|
|
|
920 |
|
|
|
774 |
|
|
|
566 |
|
|
|
762 |
|
|
|
735 |
|
Merger
expenses |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
2 |
|
|
|
2 |
|
|
|
26 |
|
Other
expenses |
|
7,814 |
|
|
|
7,284 |
|
|
|
7,065 |
|
|
|
7,660 |
|
|
|
7,383 |
|
|
|
8,125 |
|
|
|
7,284 |
|
|
|
7,082 |
|
Total noninterest
expense |
|
29,232 |
|
|
|
29,780 |
|
|
|
28,838 |
|
|
|
28,295 |
|
|
|
28,102 |
|
|
|
28,640 |
|
|
|
27,405 |
|
|
|
26,598 |
|
Income before income
tax expense |
|
42,335 |
|
|
|
42,146 |
|
|
|
40,007 |
|
|
|
39,214 |
|
|
|
37,735 |
|
|
|
35,833 |
|
|
|
34,517 |
|
|
|
33,714 |
|
Income tax expense |
|
15,318 |
|
|
|
16,429 |
|
|
|
15,484 |
|
|
|
15,069 |
|
|
|
14,413 |
|
|
|
13,485 |
|
|
|
13,054 |
|
|
|
12,776 |
|
Net income |
|
27,017 |
|
|
|
25,717 |
|
|
|
24,523 |
|
|
|
24,145 |
|
|
|
23,322 |
|
|
|
22,348 |
|
|
|
21,463 |
|
|
|
20,938 |
|
Preferred stock
dividends |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
62 |
|
|
|
180 |
|
|
|
179 |
|
Net income available to
common shareholders |
$ |
27,017 |
|
|
$ |
25,717 |
|
|
$ |
24,523 |
|
|
$ |
24,145 |
|
|
$ |
23,322 |
|
|
$ |
22,286 |
|
|
$ |
21,283 |
|
|
$ |
20,759 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Per Share
Data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per weighted
average common share, basic |
$ |
0.79 |
|
|
$ |
0.76 |
|
|
$ |
0.73 |
|
|
$ |
0.72 |
|
|
$ |
0.70 |
|
|
$ |
0.67 |
|
|
$ |
0.64 |
|
|
$ |
0.62 |
|
Earnings per weighted
average common share, diluted |
$ |
0.79 |
|
|
$ |
0.75 |
|
|
$ |
0.72 |
|
|
$ |
0.71 |
|
|
$ |
0.68 |
|
|
$ |
0.65 |
|
|
$ |
0.63 |
|
|
$ |
0.61 |
|
Weighted average common
shares outstanding, basic |
|
34,069,528 |
|
|
|
33,650,963 |
|
|
|
33,590,183 |
|
|
|
33,588,141 |
|
|
|
33,518,998 |
|
|
|
33,462,937 |
|
|
|
33,400,973 |
|
|
|
33,367,476 |
|
Weighted average common
shares outstanding, diluted |
|
34,284,316 |
|
|
|
34,233,940 |
|
|
|
34,187,171 |
|
|
|
34,183,209 |
|
|
|
34,104,237 |
|
|
|
34,069,786 |
|
|
|
34,026,412 |
|
|
|
33,997,989 |
|
Actual shares
outstanding |
|
34,110,056 |
|
|
|
34,023,850 |
|
|
|
33,590,880 |
|
|
|
33,584,898 |
|
|
|
33,581,599 |
|
|
|
33,467,893 |
|
|
|
33,405,510 |
|
|
|
33,394,563 |
|
Book value per common
share at period end |
$ |
25.59 |
|
|
$ |
24.77 |
|
|
$ |
24.28 |
|
|
$ |
23.48 |
|
|
$ |
22.71 |
|
|
$ |
22.07 |
|
|
$ |
21.38 |
|
|
$ |
20.76 |
|
Tangible book value per
common share at period end (1) |
$ |
22.46 |
|
|
$ |
21.61 |
|
|
$ |
21.08 |
|
|
$ |
20.27 |
|
|
$ |
19.48 |
|
|
$ |
18.83 |
|
|
$ |
18.10 |
|
|
$ |
17.46 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Performance
Ratios (annualized): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average
assets |
|
1.62 |
% |
|
|
1.46 |
% |
|
|
1.50 |
% |
|
|
1.57 |
% |
|
|
1.54 |
% |
|
|
1.50 |
% |
|
|
1.47 |
% |
|
|
1.51 |
% |
Return on average
common equity |
|
12.74 |
% |
|
|
12.26 |
% |
|
|
12.04 |
% |
|
|
12.40 |
% |
|
|
12.39 |
% |
|
|
12.08 |
% |
|
|
11.95 |
% |
|
|
12.18 |
% |
Net interest
margin |
|
4.14 |
% |
|
|
3.96 |
% |
|
|
4.11 |
% |
|
|
4.30 |
% |
|
|
4.31 |
% |
|
|
4.38 |
% |
|
|
4.23 |
% |
|
|
4.33 |
% |
Efficiency ratio
(2) |
|
40.06 |
% |
|
|
40.22 |
% |
|
|
40.54 |
% |
|
|
39.63 |
% |
|
|
40.80 |
% |
|
|
41.47 |
% |
|
|
42.04 |
% |
|
|
41.70 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
Ratios: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for credit
losses to total loans (3) |
|
1.03 |
% |
|
|
1.04 |
% |
|
|
1.04 |
% |
|
|
1.05 |
% |
|
|
1.06 |
% |
|
|
1.05 |
% |
|
|
1.05 |
% |
|
|
1.07 |
% |
Nonperforming loans to
total loans (3) |
|
0.25 |
% |
|
|
0.31 |
% |
|
|
0.41 |
% |
|
|
0.40 |
% |
|
|
0.43 |
% |
|
|
0.26 |
% |
|
|
0.30 |
% |
|
|
0.33 |
% |
Allowance for credit
losses to total nonperforming loans |
|
416.91 |
% |
|
|
330.49 |
% |
|
|
255.29 |
% |
|
|
264.44 |
% |
|
|
249.03 |
% |
|
|
397.95 |
% |
|
|
347.82 |
% |
|
|
328.98 |
% |
Nonperforming assets to
total assets |
|
0.22 |
% |
|
|
0.30 |
% |
|
|
0.41 |
% |
|
|
0.39 |
% |
|
|
0.42 |
% |
|
|
0.31 |
% |
|
|
0.41 |
% |
|
|
0.44 |
% |
Net charge-offs
(annualized) to average loans (3) |
|
0.04 |
% |
|
|
-0.01 |
% |
|
|
0.14 |
% |
|
|
0.15 |
% |
|
|
0.09 |
% |
|
|
0.18 |
% |
|
|
0.16 |
% |
|
|
0.21 |
% |
Tier 1 capital (to
average assets) |
|
11.51 |
% |
|
|
10.72 |
% |
|
|
11.12 |
% |
|
|
11.24 |
% |
|
|
11.01 |
% |
|
|
10.90 |
% |
|
|
11.96 |
% |
|
|
12.03 |
% |
Total capital (to risk
weighted assets) |
|
14.97 |
% |
|
|
14.89 |
% |
|
|
15.05 |
% |
|
|
12.71 |
% |
|
|
12.87 |
% |
|
|
12.75 |
% |
|
|
13.80 |
% |
|
|
13.75 |
% |
Common equity tier 1
capital (to risk weighted assets) |
|
10.97 |
% |
|
|
10.80 |
% |
|
|
10.83 |
% |
|
|
10.74 |
% |
|
|
10.83 |
% |
|
|
10.68 |
% |
|
|
10.48 |
% |
|
|
10.37 |
% |
Tangible common equity
ratio (1) |
|
10.97 |
% |
|
|
10.84 |
% |
|
|
10.64 |
% |
|
|
10.88 |
% |
|
|
10.86 |
% |
|
|
10.56 |
% |
|
|
10.46 |
% |
|
|
10.34 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average
Balances (in thousands): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets |
$ |
6,772,164 |
|
|
$ |
6,984,492 |
|
|
$ |
6,492,274 |
|
|
$ |
6,191,164 |
|
|
$ |
6,072,533 |
|
|
$ |
5,907,022 |
|
|
$ |
5,775,283 |
|
|
$ |
5,561,069 |
|
Total earning
assets |
$ |
6,535,926 |
|
|
$ |
6,752,859 |
|
|
$ |
6,264,531 |
|
|
$ |
5,967,008 |
|
|
$ |
5,844,915 |
|
|
$ |
5,675,730 |
|
|
$ |
5,545,398 |
|
|
$ |
5,332,397 |
|
Total loans |
$ |
5,705,261 |
|
|
$ |
5,591,790 |
|
|
$ |
5,422,677 |
|
|
$ |
5,266,305 |
|
|
$ |
5,070,386 |
|
|
$ |
4,859,391 |
|
|
$ |
4,636,298 |
|
|
$ |
4,499,871 |
|
Total deposits |
$ |
5,554,402 |
|
|
$ |
5,796,516 |
|
|
$ |
5,353,834 |
|
|
$ |
5,178,501 |
|
|
$ |
5,143,670 |
|
|
$ |
4,952,282 |
|
|
$ |
4,842,706 |
|
|
$ |
4,655,234 |
|
Total borrowings |
$ |
318,143 |
|
|
$ |
312,842 |
|
|
$ |
300,083 |
|
|
$ |
207,221 |
|
|
$ |
139,324 |
|
|
$ |
168,652 |
|
|
$ |
128,015 |
|
|
$ |
127,582 |
|
Total shareholders’
equity |
$ |
859,779 |
|
|
$ |
834,823 |
|
|
$ |
809,973 |
|
|
$ |
783,318 |
|
|
$ |
756,916 |
|
|
$ |
757,199 |
|
|
$ |
778,279 |
|
|
$ |
755,541 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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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