BETHESDA, Md., Oct. 17, 2018 (GLOBE NEWSWIRE) -- Eagle Bancorp, Inc. (the “Company”) (NASDAQ:EGBN), the parent company of EagleBank, today announced record quarterly net income of $38.9 million for the three months ended September 30, 2018, a 30% increase over the $29.9 million net income for the three months ended September 30, 2017. Net income per basic common share for the three months ended September 30, 2018 was $1.14 compared to $0.87 for the same period in 2017, a 31% increase. Net income per diluted common share for the three months ended September 30, 2018 was $1.13 compared to $0.87 for the same period in 2017, a 30% increase.

For the nine months ended September 30, 2018, the Company’s net income was $112.0 million, a 32% increase over the $84.7 million net income for the same period in 2017. Net income per basic common share for the nine months ended September 30, 2018 was $3.26 compared to $2.48 for the same period in 2017, a 31% increase. Net income per diluted common share for the nine months ended September 30, 2018 was $3.25 compared to $2.47 for the same period in 2017, a 32% increase.

“We are very pleased to report a continued quarterly trend of both loan and deposit growth, together with increased total revenue, low levels of problem assets, favorable operating leverage and a very strong capital base” noted Ronald D. Paul, Chairman and Chief Executive Officer of Eagle Bancorp, Inc. Mr. Paul added that “period end loan growth in the quarter was 2.9%, and average loans were 12% higher in the third quarter 2018 as compared to the third quarter in 2017. Period end deposit growth was 1.7% in the third quarter and average deposits were 11% higher in the third quarter of 2018 as compared to the same period in 2017. Total revenue for the third quarter of 2018 increased 4% over the second quarter of 2018, was 10% higher for the third quarter of 2018 over 2017, and 10% higher for the first nine months of 2018 over the same period in 2017.”

The net interest margin in the third quarter 2018 was 4.14% as compared to 4.15% in the second quarter 2018 and 4.14% for the third quarter in 2017. Mr. Paul added, “At a time when the net interest margin of banks is being challenged by a relatively flat yield curve and increasing cost of funds, the Company remains committed to maintaining efficiency and growing the loan portfolio with continuing attention to loan quality and risk reward balance sheet management measures. Further, an increase in the mix of average liquidity and average investments in the third quarter contributed to the one basis point decline in the net interest margin (“NIM”) over the second quarter 2018.

Third quarter earnings resulted in an annualized return on average assets (“ROAA”) of 1.93%, an annualized return on average common equity (“ROACE”) of 14.85%, and an annualized return on average tangible common equity (“ROATCE”) of 16.54%.

For the first nine months of 2018, total loans grew 7% over December 31, 2017, and average loans were 12% higher in the first nine months of 2018 as compared to the first nine months of 2017. At September 30, 2018, total deposits were 9% higher than deposits at December 31, 2017, while average deposits were 10% higher for the first nine months of 2018 compared with the first nine months of 2017.

Comparing asset yields and cost of funds in the third quarter in 2018 to the third quarter in 2017, loan yields were up 50 basis points (from 5.19% to 5.69%), yields on earning assets were up 47 basis points (from 4.74% to 5.21%) and the cost of funds was up 47 basis points (from 0.60% to 1.07%). The NIM was 4.14% for both quarters ending September 30, 2018 and 2017.  Mr. Paul noted, “We believe that our net interest margin remains favorable to peer banks. Importantly, our funding costs, while up 11 basis points in the third quarter 2018 over the second quarter 2018, continue to benefit from the substantial average mix of noninterest deposits of 33.7% for the third quarter, versus 32.4% for the third quarter in 2017. Additionally, the significant portion of the loan portfolio being variable and adjustable rate in a rising rate environment tends to mitigate the effects of higher cost of funds. The Company’s attention continues to be on all the factors that contribute to earnings per share growth, as opposed to dependence on any one factor.”

Total revenue (net interest income plus noninterest income) for the third quarter of 2018 was $86.9 million, 10% above the $78.7 million of total revenue earned for the third quarter of 2017 and 4% higher than the $83.8 million of revenue in the second quarter of 2018. For the nine month periods ended September 30, total revenue was $251.8 million for 2018, as compared to $228.4 million in 2017, a 10% increase.  

The primary driver of the Company’s revenue growth for the third quarter of 2018 as compared to the third quarter in 2017 was its net interest income growth of 13% ($81.3 million versus $71.9 million). Noninterest income (excluding investment gains) decreased by 17% in the third quarter of 2018 over 2017 ($5.6 million versus $6.8 million) due substantially to lower sales of residential mortgage loans and the resulting gains and lower revenue from the FHA Multifamily business unit.

The Company continues to benefit from strong asset quality as measures remained solid at September 30, 2018. For the third quarter of 2018, net credit losses (annualized) were 0.05% of average loans, as compared to 0.00% for the third quarter of 2017. At September 30, 2018, the Company’s nonperforming loans amounted to $15.1 million (0.22% of total loans) as compared to $16.6 million (0.27% of total loans) at September 30, 2017 and $13.2 million (0.21% of total loans) at December 31, 2017. Nonperforming assets amounted to $16.5 million (0.20% of total assets) at September 30, 2018 compared to $18.0 million (0.24% of total assets) at September 30, 2017 and $14.6 million (0.20% of total assets) at December 31, 2017.

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 when appropriate and believes, based on its loan portfolio risk analysis, that its allowance for credit losses, at 1.00% of total loans (excluding loans held for sale) at September 30, 2018, is adequate to absorb potential credit losses within the loan portfolio at that date. The allowance for credit losses was 1.03% at September 30, 2017 and 1.01% at December 31, 2017. The allowance for credit losses at September 30, 2018 represented 452% of nonperforming loans, as compared to 379% at September 30, 2017 and 489% at December 31, 2017.

“Productivity continued to be favorable in the third quarter,” noted Mr. Paul. The efficiency ratio of 36.37% was achieved by managing the increase in noninterest expenses to 7% for the third quarter of 2018 versus the same quarter in 2017 as compared to a 10% increase in total revenue for same periods. In addition, the maintenance of a well located and limited branch network has significantly contributed to the Company’s efficiency. As of June 30, 2018, average deposits per branch totaled $319 million compared to $135 million deposits per branch among our peers. The annualized ratio of noninterest expenses as a percentage of average assets was 1.58% in the third quarter of 2018 as compared to 1.66% in the third quarter of 2017. A well trained and knowledgeable staff, strict attention to personnel increases, a focus on process improvement including strong third party vendor relationships, and a continuing low level of problem assets, have been other major factors for improved operating leverage. Additionally, the Company continues to invest in IT systems and resources, including its online client services. Mr. Paul further noted, “Our goal is to improve operating performance without inhibiting growth or negatively impacting our ability to service our customers. We will continue to maintain strict oversight of expenses, while focusing our spending on advancing infrastructure that keeps us competitive and supports our growth initiatives while prudently managing risk.”

Total assets at September 30, 2018 were $8.06 billion, a 9% increase as compared to $7.39 billion at September 30, 2017, and an 8% increase as compared to $7.48 billion at December 31, 2017. Total loans (excluding loans held for sale) were $6.84 billion at September 30, 2018, a 12% increase as compared to $6.08 billion at September 30, 2017, and a 7% increase as compared to $6.41 billion at December 31, 2017. Loans held for sale amounted to $18.7 million at September 30, 2018 as compared to $26.0 million at September 30, 2017, a 28% decrease, and $25.1 million at December 31, 2017, a 25% decrease. The investment portfolio totaled $722.7 million at September 30, 2018, a 30% increase from the $556.0 million balance at September 30, 2017. As compared to December 31, 2017, the investment portfolio at September 30, 2018 increased by $133.4 million or 23%.

Total deposits at September 30, 2018 were $6.37 billion, compared to deposits of $5.91 billion at September 30, 2017, an 8% increase, and deposits of $5.85 billion at December 31, 2017, a 9% increase. Total borrowed funds (excluding customer repurchase agreements) were $542.2 million at September 30, 2018, $416.8 million at September 30, 2017, and $541.9 million at December 31, 2017. We continue to work on expanding the breadth and depth of our existing relationships while we pursue building new relationships.

Total shareholders’ equity at September 30, 2018 increased 14%, to $1.06 billion, compared to $934.0 million at September 30, 2017, and increased 12% from $950.4 million at December 31, 2017. The Company’s capital position remains substantially in excess of regulatory requirements for well capitalized status, with a total risk based capital ratio of 15.74% at September 30, 2018, as compared to 15.30% at September 30, 2017, and 15.02% at December 31, 2017. In addition, the tangible common equity ratio was 12.01% at September 30, 2018, compared to 11.35% at September 30, 2017 and 11.44% at December 31, 2017. Furthermore, Kroll Bond Rating Agency reaffirmed our BBB+ senior unsecured debt rating (A- at the Bank level) based on our strong capital position, continued robust earnings, best-in-class efficiency, and a history of solid credit quality.

Analysis of the three months ended September 30, 2018 compared to September 30, 2017

For the three months ended September 30, 2018, the Company reported an annualized ROAA of 1.93% as compared to 1.66% for the three months ended September 30, 2017. The annualized ROACE for the three months ended September 30, 2018 was 14.85% as compared to 12.86% for the three months ended September 30, 2017. The annualized ROATCE for the three months ended September 30, 2018 was 16.54% as compared to 14.55% for the three months ended September 30, 2017.

Net interest income increased 13% for the three months ended September 30, 2018 over the same period in 2017 ($81.3 million versus $71.9 million), resulting from growth in average earning assets of 13%. The net interest margin was 4.14% for both the three months ended September 30, 2018 and 2017. The Company believes its current net interest margin remains favorable compared to peer banking companies and that its disciplined approach to managing the loan portfolio yield to 5.69% for the third quarter of 2018 as compared to 5.19% for the same period in 2017 has been a significant factor in its overall profitability.

The provision for credit losses was $2.4 million for the three months ended September 30, 2018 as compared to $1.9 million for the three months ended September 30, 2017. Net charge-offs of $862 thousand in the third quarter of 2018 represented an annualized 0.05% of average loans, excluding loans held for sale, as compared to $2 thousand, or an annualized 0.00% of average loans, excluding loans held for sale, in the third quarter of 2017. Net charge-offs in the third quarter of 2018 were attributable primarily to commercial loans ($1.1 million) offset by a net recovery in commercial real estate loans ($254 thousand).

Noninterest income for the three months ended September 30, 2018 decreased to $5.6 million from $6.8 million for the three months ended September 30, 2017, a 17% decrease, due substantially to lower gains on the sale of residential mortgage loans ($1.4 million versus $1.8 million) resulting from lower volume as compared to 2017, and minimal revenue associated with the origination, securitization, servicing, and sale of FHA Multifamily-Backed GNMA securities as compared to $780 thousand during the third quarter of 2017. Residential mortgage loans closed were $107 million for the third quarter of 2018 versus $135 million for the same period in 2017.

The efficiency ratio, which measures the ratio of noninterest expense to total revenue, was 36.37% for the third quarter of 2018, as compared to 37.49% for the third quarter of 2017. Noninterest expenses totaled $31.6 million for the three months ended September 30, 2018, as compared to $29.5 million for the three months ended September 30, 2017, a 7% increase. Salaries and employee benefits increased $252 thousand due to a larger staff and merit increases partially offset by lower incentive compensation accruals. Marketing and advertising costs increased $459 thousand due primarily to print and digital advertising. Data processing expense increased by $404 thousand due primarily to the costs of software and infrastructure investments. Legal, accounting and professional fees increased $890 thousand due substantially to advisory services associated with enhancing our risk management systems including corporate governance as we approach $10 billion in assets.

Analysis of the nine months ended September 30, 2018 compared to September 30, 2017

For the nine months ended September 30, 2018, the Company reported an annualized ROAA of 1.92% as compared to 1.63% for the nine months ended September 30, 2017. The annualized ROACE for the nine months ended September 30, 2018 was 14.92% as compared to 12.71% for the nine months ended September 30, 2017. The annualized ROATCE for the nine months ended September 30, 2018 was 16.70% as compared to 14.44% for the nine months ended September 30, 2017.

Net interest income increased 13% for the nine months ended September 30, 2018 over the same period in 2017 ($235.3 million versus $208.5 million), resulting from growth in average earning assets of 13%. The net interest margin was 4.15% for the nine months ended September 30, 2018 and 4.14% for the same period in 2017. The Company believes its current net interest margin remains favorable compared to peer banking companies and that its disciplined approach to managing the loan portfolio yield to 5.51% for the first nine months of 2018 (as compared to 5.15% for the same period in 2017) has been a significant factor in its overall profitability.

The provision for credit losses was $6.1 million for the nine months ended September 30, 2018 as compared to $4.9 million for the nine months ended September 30, 2017. The higher provisioning for the nine months ended September 30, 2018, as compared to the same period in 2017, is due primarily to higher net charge-offs. Net charge-offs of $2.6 million for the nine months ended September 30, 2018 represented an annualized 0.05% of average loans, excluding loans held for sale, as compared to $991 thousand, or an annualized 0.02% of average loans, excluding loans held for sale, in the first nine months of 2017. Net charge-offs in the first nine months of 2018 were attributable primarily to commercial loans ($2.4 million).

Noninterest income for the nine months ended September 30, 2018 decreased to $16.5 million from $19.9 million for the nine months ended September 30, 2017, a 17% decrease, due substantially to lower gains on the sale of residential mortgage loans ($4.3 million versus $6.1 million) resulting from lower volume as compared to 2017, and minimal revenue associated with the origination, securitization, servicing, and sale of FHA Multifamily-Backed GNMA securities for the nine months ended September 30, 2018 versus $1.5 million for the same period in 2017. Residential mortgage loans closed were $334 million for the nine months ended September 30, 2018 versus $473 million for the same period in 2017.

Noninterest expenses totaled $95.0 million for the nine months ended September 30, 2018, as compared to $88.7 million for the nine months ended September 30, 2017, a 7% increase. Cost increases for salaries and benefits for the nine months ended September 30, 2018 were $1.4 million, due primarily to increased staff and merit increases. Marketing and advertising costs increased $546 thousand due primarily to print and digital advertising. Data processing expense increased by $1.1 million due primarily to the costs of software and infrastructure investments. Legal, accounting and professional fees increased $3.7 million due substantially to both first and second quarter due diligence costs from independent consultants associated with the internet event late in 2017 as well as costs to enhance risk management systems, including corporate governance as we approach $10 billion in assets. Other expenses decreased $1.1 million for the nine months ended September 30, 2018 compared to the same period in 2017, due primarily to a $361 thousand net loss on the sale of OREO in the first quarter of 2017 and a $377 thousand decrease in costs associated with problem loans. For the first nine months of 2018, the efficiency ratio was 37.74% as compared to 38.86% for the same period in 2017.

The financial information which follows provides more detail on the Company’s financial performance for the three and nine months ended September 30, 2018 as compared to the three and nine months ended September 30, 2017 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, 2017 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 branch offices, located in Suburban Maryland, Washington, D.C. and Northern Virginia. The Company focuses on building relationships with businesses, professionals and individuals in its marketplace.

Conference Call: Eagle Bancorp will host a conference call to discuss its third quarter 2018 financial results on Thursday, October 18, 2018 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 6596785, or by accessing the call on the Company’s website, www.EagleBankCorp.com. A replay of the conference call will be available on the Company’s website through November 1, 2018.

Forward-looking Statements: This press release contains forward-looking statements within the meaning of the Securities Exchange Act of 1934, as amended, including statements of goals, intentions, and expectations as to future trends, plans, events or results of Company operations and policies and regarding general economic conditions. In some cases, forward-looking statements can be identified by use of words such as “may,” “will,” “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, 2017 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 September 30, Nine Months Ended September 30,
 2018 2017 2018 2017
Income Statements:               
Total interest income$102,360  $82,370  $287,705  $237,508 
Total interest expense 21,069   10,434   52,424   28,980 
Net interest income 81,291   71,936   235,281   208,528 
Provision for credit losses 2,441   1,921   6,060   4,884 
Net interest income after provision for credit losses 78,850   70,015   229,221   203,644 
Noninterest income (before investment gains) 5,640   6,773   16,429   19,335 
Gain on sale of investment securities -   11   68   542 
Total noninterest income 5,640   6,784   16,497   19,877 
Total noninterest expense 31,614   29,516   95,024   88,749 
Income before income tax expense 52,876   47,283   150,694   134,772 
Income tax expense 13,928   17,409   38,735   50,109 
Net income$38,948  $29,874  $111,959  $84,663 
                
Per Share Data:               
Earnings per weighted average common share, basic$1.14  $0.87  $3.26  $2.48 
Earnings per weighted average common share, diluted$1.13  $0.87  $3.25  $2.47 
Weighted average common shares outstanding, basic 34,308,684   34,173,893   34,291,929   34,124,387 
Weighted average common shares outstanding, diluted 34,460,794   34,338,442   34,444,389   34,315,640 
Actual shares outstanding at period end 34,308,473   34,174,009   34,308,473   34,174,009 
Book value per common share at period end$30.94  $27.33  $30.94  $27.33 
Tangible book value per common share at period end (1)$27.84  $24.19  $27.84  $24.19 
                
Performance Ratios (annualized):               
Return on average assets 1.93%  1.66%  1.92%  1.63%
Return on average common equity 14.85%  12.86%  14.92%  12.71%
Return on average tangible common equity 16.54%  14.55%  16.70%  14.44%
Net interest margin 4.14%  4.14%  4.15%  4.14%
Efficiency ratio (2) 36.37%  37.49%  37.74%  38.86%
                
Other Ratios:               
Allowance for credit losses to total loans (3) 1.00%  1.03%  1.00%  1.03%
Allowance for credit losses to total nonperforming loans 452.28%  379.11%  452.28%  379.11%
Nonperforming loans to total loans (3) 0.22%  0.27%  0.22%  0.27%
Nonperforming assets to total assets 0.20%  0.24%  0.20%  0.24%
Net charge-offs (annualized) to average loans (3) 0.05%  0.00%  0.05%  0.02%
Common equity to total assets 13.18%  12.63%  13.18%  12.63%
Tier 1 capital (to average assets) 12.13%  11.78%  12.13%  11.78%
Total capital (to risk weighted assets) 15.74%  15.30%  15.74%  15.30%
Common equity tier 1 capital (to risk weighted assets) 12.11%  11.40%  12.11%  11.40%
Tangible common equity ratio (1) 12.01%  11.35%  12.01%  11.35%
                
Loan Balances - Period End (in thousands):               
Commercial and Industrial$1,493,577  $1,244,184  $1,493,577  $1,244,184 
Commercial real estate - owner occupied$863,162  $749,580  $863,162  $749,580 
Commercial real estate - income producing$3,189,910  $2,898,948  $3,189,910  $2,898,948 
1-4 Family mortgage$104,864  $109,460  $104,864  $109,460 
Construction - commercial and residential$1,047,591  $915,493  $1,047,591  $915,493 
Construction - C&I (owner occupied)$56,572  $55,828  $56,572  $55,828 
Home equity$86,525  $101,898  $86,525  $101,898 
Other consumer$2,471  $8,813  $2,471  $8,813 
                
Average Balances (in thousands):               
Total assets$8,023,535  $7,128,769  $7,805,089  $6,954,948 
Total earning assets$7,793,422  $6,897,613  $7,576,570  $6,722,664 
Total loans$6,646,264  $5,946,411  $6,550,754  $5,849,832 
Total deposits$6,485,144  $5,827,953  $6,273,975  $5,681,827 
Total borrowings$464,460  $344,959  $490,970  $346,174 
Total shareholders’ equity$1,040,826  $921,493  $1,003,439  $890,817 

(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 calculates return on average tangible common equity by dividing annualized year to date net income by tangible common equity. The Company considers this information important to shareholders as tangible equity is a measure that is consistent with the calculation of capital for bank regulatory purposes, which excludes intangible assets from the calculation of risk based ratios and as such is useful for investors, regulators, management and others to evaluate capital adequacy and to compare against other financial institutions. The table below provides a reconciliation of these non-GAAP financial measures with financial measures defined by GAAP.

(2) Computed by dividing noninterest expense by the sum of net interest income and noninterest income.

(3) Excludes loans held for sale.

           
           
GAAP Reconciliation (Unaudited)          
(dollars in thousands except per share data)          
 Three Months Ended Nine Months Ended Twelve Months Ended Three Months Ended Nine Months Ended 
 September 30, 2018 September 30, 2018 December 31, 2017 September 30, 2017 September 30, 2017 
Common shareholders' equity  $1,061,651  $950,438    $933,982  
Less: Intangible assets   (106,481)  (107,212)    (107,150) 
Tangible common equity  $955,170  $843,226    $826,832  
           
Book value per common share  $30.94  $27.80    $27.33  
Less: Intangible book value per common share   (3.10)  (3.13)    (3.14) 
Tangible book value per common share  $27.84  $24.67    $24.19  
           
Total assets  $8,057,855  $7,479,029    $7,393,656  
Less: Intangible assets   (106,481)  (107,212)    (107,150) 
Tangible assets  $7,951,374  $7,371,817    $7,286,506  
Tangible common equity ratio   12.01%  11.44%    11.35% 
           
Average common shareholders' equity$1,040,826  $1,003,439  $906,174  $921,493  $890,817  
Less: Average intangible assets (106,629)  (106,949)  (107,117)  (107,010)  (107,105) 
Average tangible common equity$934,197  $896,490  $799,057  $814,483  $783,712  
           
Net Income Available to Common Shareholders$38,949  $111,959  $100,232  $29,874  $84,663  
Average tangible common equity$934,197  $896,490  $799,057  $814,483  $783,712  
Annualized Return on Average Tangible Common Equity (1) 16.54%  16.70%  12.54%  14.55%  14.44% 
           
           

 

Eagle Bancorp, Inc.     
Consolidated Balance Sheets (Unaudited)     
(dollars in thousands, except per share data)     
      
AssetsSeptember 30, 2018 December 31, 2017 September 30, 2017
Cash and due from banks$4,459  $7,445  $8,246 
Federal funds sold 17,284   15,767   8,548 
Interest bearing deposits with banks and other short-term investments 162,734   167,261   432,156 
Investment securities available for sale, at fair value 722,674   589,268   556,026 
Federal Reserve and Federal Home Loan Bank stock 37,257   36,324   30,980 
Loans held for sale 18,728   25,096   25,980 
Loans 6,844,672   6,411,528   6,084,204 
Less allowance for credit losses (68,189)  (64,758)  (62,967)
Loans, net 6,776,483   6,346,770   6,021,237 
Premises and equipment, net 17,457   20,991   19,546 
Deferred income taxes 35,196   28,770   45,432 
Bank owned life insurance 73,007   60,947   61,238 
Intangible assets, net 106,481   107,212   107,150 
Other real estate owned 1,394   1,394   1,394 
Other assets 84,701   71,784   75,723 
Total Assets$8,057,855  $7,479,029  $7,393,656 
      
Liabilities and Shareholders' Equity     
Deposits:     
Noninterest bearing demand$2,057,886  $1,982,912  $1,843,157 
Interest bearing transaction 459,455   420,417   429,247 
Savings and money market 2,573,258   2,621,146   2,818,871 
Time, $100,000 or more 758,152   515,682   482,325 
Other time 523,554   313,827   340,352 
Total deposits 6,372,305   5,853,984   5,913,952 
Customer repurchase agreements 36,446   76,561   73,569 
Other short-term borrowings 325,000   325,000   200,000 
Long-term borrowings 217,198   216,905   216,807 
Other liabilities 45,255   56,141   55,346 
Total liabilities 6,996,204   6,528,591   6,459,674 
      
Shareholders' Equity     
Common stock, par value $.01 per share; shares authorized 100,000,000, shares     
issued and outstanding 34,308,473, 34,185,163, and 34,174,009, respectively 341   340   340 
Additional paid in capital 526,423   520,304   518,616 
Retained earnings 544,177   431,544   415,975 
Accumulated other comprehensive loss (9,290)  (1,750)  (949)
Total Shareholders' Equity 1,061,651   950,438   933,982 
Total Liabilities and Shareholders' Equity$8,057,855  $7,479,029  $7,393,656 
     `
      

 

Eagle Bancorp, Inc.        
Consolidated Statements of Income (Unaudited)        
(dollars in thousands, except per share data)        
     
 Three Months Ended September 30, Nine Months Ended September 30, 
Interest Income 2018  2017  2018  2017 
Interest and fees on loans$  95,570 $  78,176 $  270,924 $  226,543 
Interest and dividends on investment securities   4,875    3,194    12,525    8,854 
Interest on balances with other banks and short-term investments   1,897    991    4,152    2,084 
Interest on federal funds sold    18    9    104    27 
Total interest income   102,360    82,370    287,705    237,508 
Interest Expense        
Interest on deposits   16,719    7,233    39,896    19,466 
Interest on customer repurchase agreements    54    58    166    136 
Interest on other short-term borrowings   1,317    164    3,425    441 
Interest on long-term borrowings   2,979    2,979    8,937    8,937 
Total interest expense   21,069    10,434    52,424    28,980 
Net Interest Income    81,291    71,936    235,281    208,528 
Provision for Credit Losses   2,441    1,921    6,060    4,884 
Net Interest Income After Provision For Credit Losses   78,850    70,015    229,221    203,644 
         
Noninterest Income        
Service charges on deposits   1,814    1,626    5,188    4,641 
Gain on sale of loans   1,434    2,173    4,632    6,740 
Gain on sale of investment securities   -     11    68    542 
Increase in the cash surrender value of  bank owned life insurance    373    369    1,073    1,108 
Other income   2,019    2,605    5,536    6,846 
Total noninterest income   5,640    6,784    16,497    19,877 
Noninterest Expense        
Salaries and employee benefits   17,157    16,905    51,827    50,451 
Premises and equipment expenses   3,889    3,846    11,691    11,613 
Marketing and advertising   1,191    732    3,419    2,873 
Data processing   2,423    2,019    7,144    6,057 
Legal, accounting and professional fees   2,130    1,240    7,282    3,539 
FDIC insurance   933    929    2,559    2,063 
Other expenses   3,891    3,845    11,102    12,153 
Total noninterest expense 31,614  29,516  95,024  88,749 
Income Before Income Tax Expense   52,876    47,283    150,694    134,772 
Income Tax Expense   13,928    17,409    38,735    50,109 
Net Income $  38,948 $  29,874 $  111,959 $  84,663 
         
Earnings Per Common Share        
Basic$  1.14 $  0.87 $  3.26 $  2.48 
Diluted$  1.13 $  0.87 $  3.25 $  2.47 
         
         

 

Eagle Bancorp, Inc.
Consolidated Average Balances, Interest Yields And Rates (Unaudited)
(dollars in thousands)
        
 Three Months Ended September 30,
  2018   2017 
 Average BalanceInterestAverage Yield/Rate Average BalanceInterestAverage Yield/Rate
ASSETS       
Interest earning assets:       
Interest bearing deposits with other banks and other short-term investments$377,324$1,8971.99% $331,194$9911.19%
Loans held for sale (1) 23,511 2744.66%  37,146 3503.77%
Loans (1) (2)  6,646,264 95,2965.69%  5,946,411 77,8265.19%
Investment securities available for sale (2) 735,586 4,8752.63%  576,423 3,1942.20%
Federal funds sold 10,737 180.67%  6,439 90.55%
Total interest earning assets 7,793,422 102,3605.21%  6,897,613 82,3704.74%
        
Total noninterest earning assets 297,815    292,891  
Less: allowance for credit losses 67,702    61,735  
Total noninterest earning assets 230,113    231,156  
TOTAL ASSETS$8,023,535   $7,128,769  
        
LIABILITIES AND SHAREHOLDERS' EQUITY       
Interest bearing liabilities:       
Interest bearing transaction$482,820$9730.80% $406,923$5060.49%
Savings and money market 2,596,010 9,6361.47%  2,663,762 4,2110.63%
Time deposits 1,220,755 6,1101.99%  866,595 2,5161.15%
Total interest bearing deposits 4,299,585 16,7191.54%  3,937,280 7,2330.73%
Customer repurchase agreements 30,445 540.70%  73,345 580.31%
Other short-term borrowings 216,851 1,3172.38%  54,840 1641.17%
Long-term borrowings 217,164 2,9795.37%  216,774 2,9795.38%
Total interest bearing liabilities 4,764,045 21,0691.75%  4,282,239 10,4340.97%
        
Noninterest bearing liabilities:       
Noninterest bearing demand 2,185,559    1,890,673  
Other liabilities 33,105    34,364  
Total noninterest bearing liabilities 2,218,664    1,925,037  
        
Shareholders’ Equity 1,040,826    921,493  
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY$8,023,535   $7,128,769  
        
Net interest income $81,291   $71,936 
Net interest spread  3.46%   3.77%
Net interest margin  4.14%   4.14%
Cost of funds  1.07%   0.60%
        
(1) Loans placed on nonaccrual status are included in average balances. Net loan fees and late charges included in interest income on loans totaled $5.0 million and $4.7 million for the three months ended September 30, 2018 and 2017, respectively.
(2) Interest and fees on loans and investments exclude tax equivalent adjustments.      
        

 

Eagle Bancorp, Inc.
Consolidated Average Balances, Interest Yields and Rates (Unaudited)
(dollars in thousands)
        
 Nine Months Ended September 30,
  2018   2017 
 Average BalanceInterestAverage Yield/Rate Average BalanceInterestAverage Yield/Rate
ASSETS       
Interest earning assets:       
Interest bearing deposits with other banks and other short-term investments$  321,266$  4,1521.73% $  290,366$  2,0840.96%
Loans held for sale (1)   24,692   8394.53%    34,925   1,0203.89%
Loans (1) (2)    6,550,754   270,0855.51%    5,849,832   225,5235.15%
Investment securities available for sale (1)   664,798   12,5252.52%    541,378   8,8542.19%
Federal funds sold    15,060   1040.92%    6,163   270.59%
Total interest earning assets   7,576,570   287,7055.08%    6,722,664   237,5084.72%
        
Total noninterest earning assets   294,948      292,700  
Less: allowance for credit losses   66,429      60,416  
Total noninterest earning assets   228,519      232,284  
TOTAL ASSETS$  7,805,089   $  6,954,948  
        
LIABILITIES AND SHAREHOLDERS' EQUITY       
Interest bearing liabilities:       
Interest bearing transaction$  433,921$  2,2520.69% $  366,521$  1,0810.39