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Details include assets exceeding $5.2bn
Eagle Bancorp, Inc. (Nasdaq:EGBN), the parent company of EagleBank, today announced record quarterly net income of $14.7 million ($16.9 million on an operating basis) for the three months ended December 31, 2014, a 23% increase on a net income basis (41% on an operating basis) over the $12.0 million net income for the three months ended December 31, 2013.
Net income available to common shareholders for the three months ended December 31, 2014 increased 23% (41% increase on an operating basis) to $14.5 million ($16.7 million on an operating basis) as compared to $11.9 million for the same period in 2013.
Net income per basic and diluted common share for the three months ended December 31, 2014 was $0.51 and $0.49, respectively ($0.59 per basic common share and $0.56 per diluted common share on an operating basis), as compared to $0.46 per basic common share and $0.45 per diluted common share for the same period in 2013.
Operating earnings exclude expenses of $3.2 million or $2.2 million net of tax ($0.08 per basic share and $0.07 per diluted share) recorded in the fourth quarter 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, related to the October 31, 2014 merger with Virginia Heritage Bank. Where appropriate, parenthetical references refer to operating earnings, which the Company believes are better comparisons to prior period results of operations. Reconciliations of GAAP earnings to operating earnings are contained in the footnotes to the financial highlights table.
For the year ended December 31, 2014, the Company’s net income was $54.3 million ($57.7 million on an operating basis), a 15% increase (23% on an operating basis) over the $47.0 million for the year ended December 31, 2013. Net income available to common shareholders was $53.6 million ($57.1 million on an operating basis) as compared to $46.4 million for 2013, a 16% increase (23% on an operating basis).
Net income per basic and diluted common share for the year ended December 31, 2014 was $2.01 and $1.95, respectively ($2.14 per basic common share and $2.08 per diluted common share on an operating basis), as compared to $1.81 per basic common share and $1.76 per diluted common share for 2013, an 11% increase per basic and diluted share (18% on an operating basis per basic and diluted share)
“We are pleased to report our twenty-fourth consecutive quarter of record earnings, which includes the first reporting period since the Company’s completion of the merger with Virginia Heritage Bank on October 31, 2014,” noted Ronald D. Paul, Chairman and Chief Executive Officer of Eagle Bancorp, Inc. “The Company’s net income has increased each quarter since the fourth quarter of 2008. For the fourth quarter of 2014, the Company’s performance was again highlighted by significant growth in total loans and total deposits, both from organic growth and from the merger; by 33% growth in total revenue as compared to the same quarter in 2013; by a continuation of a favorable net interest margin, which was 4.42% for the fourth quarter of 2014; and by continued solid asset quality measures. As expected, the merger has resulted in improved operating leverage for the Company as evidenced by a fourth quarter efficiency ratio on an operating basis of 45.71%. The strong fourth quarter earnings resulted in an annualized return on average assets of 1.21% (1.38% on an operating basis) and an annualized return on average equity of 11.68% (13.15% on an operating basis).
The completion of the merger with Virginia Heritage Bank contributed to growth in the Company’s balance sheet in the fourth quarter of approximately $800 million in loans, $3 million in loans held for sale, $645 million in deposits, and $95 million in borrowings. Additionally, the Company issued 4,010,261 shares of its common stock to complete the merger, and succeeded to $15.3 million of preferred stock which has a dividend rate of 1.00%. Intangibles of approximately $107 million were recorded in the merger transaction.
