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Share Name | Share Symbol | Market | Type |
---|---|---|---|
Eagle Bancorp Inc | NASDAQ:EGBN | NASDAQ | Common Stock |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
-0.47 | -2.48% | 18.49 | 18.39 | 19.30 | 18.99 | 18.40 | 18.67 | 574,539 | 22:30:00 |
Third Quarter Key Metrics
At the end of the third quarter of 2020 the Company's assets totaled $10.1 billion, representing 12.2% growth over the third quarter of 2019. For the third quarter of 2020 return on average assets ("ROAA") was 1.57%, return on average common equity ("ROACE") was 14.46%, and return on average tangible common equity ("ROATCE") was 15.93%. A reconciliation of GAAP to non-GAAP financial measures is provided in the tables that accompany this document.
“I am very pleased with the overall results of operations for the third quarter of 2020 at a time when the COVID-19 pandemic is having a significant effect on the business climate and operating environment. Highlights included the highest level of quarterly net income and total revenue in the Company’s history, continuing growth in the balance sheet, wherein assets exceeded $10 billion at quarter-end, solid asset quality, and a continuing trend of very favorable operating leverage as exhibited by an efficiency ratio of 38.10%," noted Susan G. Riel, President and Chief Executive Officer of Eagle Bancorp, Inc. "Loan growth in the third quarter was significantly impacted by construction loan payoffs, which reflected a successful completion of those projects and the closing out of related credit facilities. Ongoing project financing was slowed by diminished business activity associated with the COVID-19 pandemic environment.”
"We once again thank all of our employees for their commitment and diligence in serving client needs and following safe health practices. As we look toward the final quarter of 2020, our goal is to maintain strong operating performance. We will continue to proactively manage any credit concerns including resolving matters related to credit deferrals while delivering best-in-class service to our customers. We will continue to exercise prudent oversight of expenses, while retaining an infrastructure that is competitive, supports our growth initiatives, and proactively enhances our risk management systems as we continue to grow.”
Balance Sheet Highlights
Income Statement Highlights (3Q2020 versus 3Q2019)
Income Statement Highlights (First Nine Months 2020 versus First Nine Months 2019)
Additional Quarterly Financial Commentary
Loans, Deposits, Yields & Rates:
The Company continues to focus on changes in average balances quarter over quarter and year over year since that measure more directly impacts income statement results. Comparing average balances in the third quarter of 2020 versus the second quarter of 2020, average loans declined 1.3% while average deposits increased by 1.3%. At September 30, 2020, the Bank had advances outstanding of $466.0 million to just over 1,400 businesses under the PPP program.
In the third quarter of 2020, as average U.S. Treasury rates in the two to five year range declined by approximately seven basis points and the average yield curve remained fairly flat, the Company experienced 18 basis points of net interest margin compression (from 3.26% to 3.08%) as compared to the second quarter of 2020. In addition, our cost of funds declined 7 basis points (from 0.65% to 0.58%), while the yield on earning assets declined by 25 basis points (from 3.91% to 3.66%). Average liquidity for the third quarter was $1.3 billion versus $1.1 billion for the second quarter of 2020. The yield on our loan assets was negatively impacted by the low interest rate environment in the third quarter of 2020, including a 19 basis point decline in the average one-month LIBOR rate. A substantial portion of the variable rate loan portfolio has interest rate floors which cushioned the decline in loan yields.
In the third quarter of 2020, period end total loans declined 1.3% over June 30, 2020, while total deposits increased 1.3% over June 30, 2020. New loans settled in the third quarter of 2020 were below average levels due substantially to the COVID-19 environment, while loan payoffs were close to average levels. Average unfunded loan commitments declined immaterially in third quarter 2020 from the previous seven quarters, from an average of $2.3 billion to just below $2.0 billion. The Company continues to emphasize achieving core deposit growth and we continue to seek well-structured new loan opportunities. The mix of noninterest deposits to total deposits remained favorable and averaged 31.7% in the third quarter of 2020, as compared to 29.5% in the third quarter of 2019.
The net interest margin was 3.08% for the third quarter of 2020, down 64 basis points from the third quarter of 2019. In addition to the current sharply lower interest rate environment as compared to 2019, there was less focus on higher risk and higher yielding construction lending and more attention towards strong commercial real estate credits secured by stabilized income producing properties. The yield on the loan portfolio was 4.46% for the third quarter of 2020 as compared to 5.39% for the third quarter of 2019 and 4.63% for the second quarter of 2020. The addition of the PPP loans at an average yield of 2.41% for the quarter negatively impacted the overall yield of the total loan portfolio by approximately 13 basis points. The cost of funds was 0.58% for the third quarter of 2020 as compared to 1.28% for the third quarter of 2019 and 0.65% for the second quarter of 2020.
Asset Quality:
Asset quality measures remained solid at September 30, 2020. Net charge-offs (annualized) were 0.26% of average loans for the third quarter of 2020 (attributable mostly to two credits), as compared to 0.08% of average loans for the third quarter of 2019. At September 30, 2020, the Company’s nonperforming loans amounted to $58.1 million (0.74% of total loans) as compared to $57.7 million (0.76% of total loans) at September 30, 2019, and $48.7 million (0.65% of total loans) at December 31, 2019. Nonperforming assets amounted to $63.0 million (0.62% of total assets) at September 30, 2020 compared to $59.1 million (0.66% of total assets) at September 30, 2019 and $50.2 million (0.56% of total assets) at December 31, 2019.
As discussed in the first quarter 2020 earnings release, the new accounting CECL standard (ASC 326) was adopted by the Company in the first quarter of 2020. CECL required a significant change in how banks assess credit risk and establish reserves for possible future loan losses. Two significant changes under the new standard are the requirements to establish loan loss reserves at loan origination considering the entire life of the loan and to estimate lifetime loss reserves by modeling a forecast that is impacted by economic assumptions.
Under the CECL standard and based on the January 1, 2020 effective date, the Company made an initial adjustment to the allowance for credit losses of $10.6 million along with $4.1 million to the reserve for unfunded commitments. This adjustment increased the ratio of the allowance to total loans from 0.98% at December 31, 2019 to 1.12% at January 1, 2020. Based on our ongoing risk analysis and modeling through March 31, 2020, under the CECL allowance methodology, the Company further increased the allowance for loan losses to 1.23% as of March 31, 2020 and again to 1.36% as of June 30, 2020, which included the assessment of COVID-19 risks as of March 31, 2020 and as of June 30, 2020, respectively. Based on our ongoing risk analysis and modeling through September 30, 2020, under the CECL allowance methodology, the Company further increased the allowance for loan losses to 1.40% of total loans, which reflects COVID-19 risks assessments and an updated unemployment forecast for the Washington, D.C. metropolitan area. Additionally, the qualitative risk factors have been increased associated with our higher mix of Accommodation & Food Services industry loans. We have also made additional qualitative overlays for loans that are on their second deferrals. The September 2020 unemployment forecast was less severe than the June forecast. Management believes its allowance for credit losses, at 1.40% of total loans (excluding loans held for sale) at September 30, 2020, is adequate to absorb expected credit losses within the loan portfolio at that date. Although the Company continues to monitor its loan portfolio and its borrowers' uncertainty remains about the duration of the COVID-19 pandemic and its impacts and further significant negative impact may occur. Under the prior accounting standard known as the incurred loss model, the allowance for credit losses was 0.98% at both September 30, 2019 and December 31, 2019. The allowance for credit losses of $110.2 million at September 30, 2020 represented 190% of nonperforming loans at that date, as compared to a coverage ratio of 128% at September 30, 2019 and 151% at December 31, 2019.
The COVID-19 pandemic, which began in the U.S. in the first quarter of 2020, raised significant concerns in the outlook over bank credit quality, particularly in certain industries, as COVID-19 resulted in the closure or restriction of businesses across the region as stay-at-home orders were given in the various municipalities in which the Company operates. Among those industries most clearly impacted is the Accommodation and Food Service industry. Exposure to this industry (as shown in the chart below) represents 10.2% of the Bank’s loan portfolio as of September 30, 2020. Management is closely monitoring borrowers and remains attentive to signs of deterioration in borrowers’ financial conditions and is proactively taking steps to mitigate risk as appropriate, including placing loans on nonaccrual status. There remains uncertainty regarding the region’s overall economic outlook given lack of clarity over how long COVID-19 will continue to impact our region. Management has been working with customers on payment deferrals (generally 90 days) to assist client companies in managing through this crisis. These deferrals amounted to 321 notes and $851 million at September 30, 2020 (10.8% of total loans) as compared to 708 notes representing $1.6 billion in outstanding exposure as of June 30, 2020.
Industry/Collateral Type | Number of Notes | Total Outstanding (in millions) | Deferred Note Count | Total Deferred Outstanding (in millions) | % Outstanding Deferred | Weighted Avg LTV of RE Collateral | Avg Loan Size (in millions) | ||||||||||||||||
Hotels | 43 | $ | 532 | 17 | $ | 387 | 72.7 | % | 60 | % | $ | 22.8 | |||||||||||
Transportation & Warehousing | 66 | $ | 173 | 34 | $ | 134 | 77.5 | % | 65 | % | $ | 3.9 | |||||||||||
Restaurants | 427 | $ | 274 | 127 | $ | 115 | 42.0 | % | 61 | % | $ | 0.9 | |||||||||||
Retail | 319 | $ | 475 | 17 | $ | 73 | 15.4 | % | 69 | % | $ | 4.3 | |||||||||||
Other Real Estate | 919 | $ | 3,752 | 21 | $ | 34 | 0.9 | % | 47 | % | $ | 1.6 | |||||||||||
Healthcare | 196 | $ | 249 | 8 | $ | 28 | 11.2 | % | 67 | % | $ | 3.5 | |||||||||||
Art/Entertainment/Recreation | 65 | $ | 138 | 8 | $ | 23 | 16.7 | % | 15 | % | $ | 2.9 | |||||||||||
Other | 2,992 | $ | 2,287 | 89 | $ | 57 | 2.5 | % | 60 | % | $ | 0.6 | |||||||||||
Total | 5,027 | $ | 7,880 | 321 | $ | 851 | 10.8 | % | $ | 2.7 |
Management believes that none of these deferrals have met the criteria for treatment under GAAP as troubled debt restructurings (TDRs). Additionally, none of the deferrals are reflected in the Company’s balance sheet and asset quality measures due to the provision of the Coronavirus Aid Relief and Economic Security Act (the "CARES Act") that permits U.S. financial institutions to temporarily suspend the GAAP requirements to treat such short-term loan modifications as TDR. These provisions have also been confirmed by interagency guidance issued by the federal banking agencies and confirmed with staff members of the Financial Accounting Standards Board. Other loan portfolio areas of concern at September 30, 2020 and additional COVID-19 loan related matters are discussed below.
COVID-19 Discussion Matters
Employee Matters:
Management continues to acknowledge the flexibility and engagement of our hard working employees during this crisis. As the COVID-19 pandemic has unfolded, the majority of our workforce transitioned quickly to remote access operations. Our information technology infrastructure continues to support our organization in working predominantly remotely as we continue to service the needs of our clients. While we continue to temporarily allow the majority of our employees to work remotely, there are some functions that require a physical presence at our banking offices. While there has been no decision at this time to return to the workplace, we have established general guidelines for returning that include having employees maintain safe distances, staggered work schedules to limit the number of employees in a single location, more frequent cleaning of our facilities and other practices encouraging a safe working environment during this challenging time, including required COVID-19 training programs. Management remains connected to employees through periodic company-wide telephonic meetings and regular notifications and updates through both email and the Company’s intranet.
Branch Hours:
Branch hours and availability which were modified in consideration of the safety of our employees and clients were reinstated in the second quarter of 2020. All branches have been opened with advanced safety measures and are available during regular business hours to meet the needs of our clients for the third quarter of 2020.
The CARES Act:
Enacted March 27, 2020 the CARES Act included several provisions designed to provide relief to individuals and businesses as well as the banking system. Among the more significant components of this legislation for our Company was the creation of the $350 billion PPP, which program was further expanded by Congress in the second quarter of 2020, to a total of $660 billion. Loans made under the PPP are fully guaranteed as to principal and interest by the Small Business Administration (“SBA”), whose guarantee is backed by the full faith and credit of the U.S. Government. PPP-covered loans also afford borrowers forgiveness up to the principal amount of the PPP-covered loan if the proceeds are used to retain workers and maintain payroll or make mortgage interest, lease and utility payments. The SBA will reimburse PPP lenders for any amount of a PPP-covered loan that is forgiven.
As an SBA preferred lender, the Bank actively participated in the PPP program, and at September 30, 2020 had an outstanding balance of PPP loans of $466.0 million to just over 1,400 businesses. The average rate on these loans is 1.00% and the average yield which includes fee amortization was 2.41% for the third quarter of 2020. The lower loan yield on these PPP loans negatively affected third quarter loan portfolio yields by 13 basis points. For the first nine months of 2020, the average rate on these loans is 1.00% and the average yield which includes fee amortization was 2.62%. The lower loan yield on these PPP loans negatively affected nine month loan portfolio yields in 2020 by seven basis points.
Loan Portfolio Exposures:
Industry areas of potential concern within the Loan Portfolio are presented below as of September 30, 2020:
Industry | Principal Balance (in thousands) | % of Loan Portfolio | |||||
Accommodation & Food Services | $ | 804,712 | 1 | 10.2 | % | ||
Retail Trade | $ | 99,202 | 2 | 1.3 | % |
1 Includes $81,983 of PPP loans.2 Includes $13,561 of PPP loans.
Concerns over exposures to the Accommodation and Food Service industry and retail remain the most immediate at this time. Accommodation and Food Service exposure represents 10.2% of the Bank’s loan portfolio as of September 30, 2020 among 331 customers. Retail trade exposure represents 1.3% of the Bank’s loan portfolio. The Bank has ongoing extensive outreach to these customers, and is assisting where necessary with PPP loans and payment deferrals or interest only periods in the short term as customers work with the Bank to develop longer term stabilization strategies as the landscape of the COVID-19 pandemic evolves. The duration and severity of the pandemic will likely impact future credit challenges in these areas.
In addition to the specific industry data listed above, the Bank has exposure on loans secured by commercial real estate of the following property types as of September 30, 2020:
Property Type | Principal Balance (in thousands) | % of Loan Portfolio | |||||
Restaurant | $ | 46,710 | 0.6 | % | |||
Hotel | $ | 35,782 | 0.5 | % | |||
Retail | $ | 389,485 | 4.9 | % |
Although not evidenced at September 30, 2020, it is anticipated that some portion of the CRE loans secured by the above property types could be impacted by the tenancies associated with impacted industries. The Bank is working with CRE investor borrowers and monitoring rent collections as part of our portfolio management process.
The financial information which follows provides more detail on the Company’s financial performance for the three and nine months ended September 30, 2020 as compared to the three and nine months ended September 30, 2019 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, 2019 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 2020 financial results on Thursday, October 22, 2020 at 10:00 a.m. eastern time. The public is invited to listen to this conference call by dialing 1.877.303.6220, conference ID Code 4653118, 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 5, 2020.
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,” “can,” “anticipates,” “believes,” “expects,” “plans,” “estimates,” “potential,” “continue,” “should,” “could,” “strive,” “feel” and similar words or phrases. These statements are based upon current and anticipated economic conditions, nationally and in the Company’s market (including the macroeconomic and other challenges and uncertainties resulting from the COVID-19 pandemic, including on our credit quality and business operations), 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, 2019, the Company’s Quarterly Report on Form 10-Q for the quarters ended March 31, 2020 and June 30, 2020, the Company’s upcoming Quarterly Report on Form 10-Q for the quarter ended September 30, 2020, 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. All information is as of the date of this press release. Any forward-looking statements made by or on behalf of the Company speak only as to the date they are made. Except to the extent required by applicable law or regulation, the Company undertakes no obligation to revise or update publicly any forward-looking statement for any reason.
Eagle Bancorp, Inc. | ||||||||||||||||
Consolidated Financial Highlights (Unaudited) | ||||||||||||||||
(dollars in thousands, except per share data) | ||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||
Income Statements: | ||||||||||||||||
Total interest income | $ | 93,833 | $ | 109,034 | $ | 295,306 | $ | 322,447 | ||||||||
Total interest expense | 14,795 | 28,045 | 55,161 | 79,112 | ||||||||||||
Net interest income | 79,038 | 80,989 | 240,145 | 243,335 | ||||||||||||
Provision for credit losses | 6,607 | 3,186 | 40,654 | 10,146 | ||||||||||||
Provision for Unfunded Commitments | (2,078 | ) | — | 974 | — | |||||||||||
Net interest income after provision for credit losses | 74,509 | 77,803 | 198,517 | 233,189 | ||||||||||||
Noninterest income (before investment gain) | 17,729 | 6,161 | 34,159 | 17,337 | ||||||||||||
Gain on sale of investment securities | 115 | 153 | 1,650 | 1,628 | ||||||||||||
Total noninterest income | 17,844 | 6,314 | 35,809 | 18,965 | ||||||||||||
Total noninterest expense | 36,915 | 33,473 | 109,154 | 105,136 | ||||||||||||
Income before income tax expense | 55,438 | 50,644 | 125,172 | 147,018 | ||||||||||||
Income tax expense | 14,092 | 14,149 | 31,847 | 39,531 | ||||||||||||
Net income | $ | 41,346 | $ | 36,495 | $ | 93,325 | $ | 107,487 | ||||||||
Per Share Data: | ||||||||||||||||
Earnings per weighted average common share, basic | $ | 1.28 | $ | 1.07 | $ | 2.88 | $ | 3.12 | ||||||||
Earnings per weighted average common share, diluted | $ | 1.28 | $ | 1.07 | $ | 2.88 | $ | 3.12 | ||||||||
Weighted average common shares outstanding, basic | 32,229,322 | 34,232,890 | 32,433,963 | 34,418,154 | ||||||||||||
Weighted average common shares outstanding, diluted | 32,250,885 | 34,255,889 | 32,458,100 | 34,450,876 | ||||||||||||
Actual shares outstanding at period end | 32,228,636 | 33,720,522 | 32,228,636 | 33,720,522 | ||||||||||||
Book value per common share at period end | $ | 37.96 | $ | 35.13 | $ | 37.96 | $ | 35.13 | ||||||||
Tangible book value per common share at period end (1) | $ | 34.70 | $ | 32.02 | $ | 34.70 | $ | 32.02 | ||||||||
Dividend per common share | $ | 0.22 | $ | 0.22 | $ | 0.66 | $ | 0.44 | ||||||||
Performance Ratios (annualized): | ||||||||||||||||
Return on average assets | 1.57 | % | 1.62 | % | 1.24 | % | 1.66 | % | ||||||||
Return on average common equity | 14.46 | % | 12.09 | % | 10.44 | % | 12.34 | % | ||||||||
Return on average tangible common equity | 15.93 | % | 13.25 | % | 11.45 | % | 13.57 | % | ||||||||
Net interest margin | 3.08 | % | 3.72 | % | 3.27 | % | 3.88 | % | ||||||||
Efficiency ratio (2) | 38.10 | % | 38.34 | % | 39.56 | % | 40.08 | % | ||||||||
Other Ratios: | ||||||||||||||||
Allowance for credit losses to total loans (3) | 1.40 | % | 0.98 | % | 1.40 | % | 0.98 | % | ||||||||
Allowance for credit losses to total nonperforming loans | 189.83 | % | 127.87 | % | 189.83 | % | 127.87 | % | ||||||||
Nonperforming loans to total loans (3) | 0.74 | % | 0.76 | % | 0.74 | % | 0.76 | % | ||||||||
Nonperforming assets to total assets | 0.62 | % | 0.66 | % | 0.62 | % | 0.66 | % | ||||||||
Net charge-offs (annualized) to average loans (3) | 0.26 | % | 0.08 | % | 0.25 | % | 0.12 | % | ||||||||
Common equity to total assets | 12.11 | % | 13.16 | % | 12.11 | % | 13.16 | % | ||||||||
Tier 1 capital (to average assets) | 10.82 | % | 12.19 | % | 10.82 | % | 12.19 | % | ||||||||
Total capital (to risk weighted assets) | 16.72 | % | 16.08 | % | 16.72 | % | 16.08 | % | ||||||||
Common equity tier 1 capital (to risk weighted assets) | 13.19 | % | 12.76 | % | 13.19 | % | 12.76 | % | ||||||||
Tangible common equity ratio (1) | 11.18 | % | 12.13 | % | 11.18 | % | 12.13 | % | ||||||||
Loan Balances - Period End (in thousands): | ||||||||||||||||
Commercial and Industrial | $ | 1,524,613 | $ | 1,466,862 | $ | 1,524,613 | $ | 1,466,862 | ||||||||
PPP loans | $ | 456,115 | $ | — | $ | 456,115 | $ | — | ||||||||
(continued) | ||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||
Commercial real estate - owner occupied | $ | 997,645 | $ | 956,345 | $ | 997,645 | $ | 956,345 | ||||||||
Commercial real estate - income producing | $ | 3,724,839 | $ | 3,812,284 | $ | 3,724,839 | $ | 3,812,284 | ||||||||
1-4 Family mortgage | $ | 82,385 | $ | 104,563 | $ | 82,385 | $ | 104,563 | ||||||||
Construction - commercial and residential | $ | 879,144 | $ | 1,053,789 | $ | 879,144 | $ | 1,053,789 | ||||||||
Construction - C&I (owner occupied) | $ | 140,357 | $ | 81,916 | $ | 140,357 | $ | 81,916 | ||||||||
Home equity | $ | 72,648 | $ | 8,117 | $ | 72,648 | $ | 81,117 | ||||||||
Other consumer | $ | 2,509 | $ | 2,285 | $ | 2,509 | $ | 2,285 | ||||||||
Average Balances (in thousands): | ||||||||||||||||
Total assets | $ | 10,473,595 | $ | 8,923,406 | $ | 10,084,081 | $ | 8,659,916 | ||||||||
Total earning assets | $ | 10,205,939 | $ | 8,655,196 | $ | 9,814,305 | $ | 8,391,463 | ||||||||
Total loans | $ | 7,910,260 | $ | 7,492,816 | $ | 7,859,188 | $ | 7,265,726 | ||||||||
Total deposits | $ | 8,591,912 | $ | 7,319,314 | $ | 8,258,352 | $ | 7,068,137 | ||||||||
Total borrowings | $ | 596,472 | $ | 345,464 | $ | 560,427 | $ | 360,920 | ||||||||
Total shareholders’ equity | $ | 1,211,145 | $ | 1,197,513 | $ | 1,193,988 | $ | 1,164,541 |
(1) Tangible common equity to tangible assets (the "tangible common equity ratio"), tangible book value per common share, and the annualized return on average tangible common equity 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 the annualized return on average tangible common equity ratio by dividing net income available to common shareholders by average tangible common equity which is calculated by excluding the average balance of intangible assets from the average common shareholders’ 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. The efficiency ratio measures a bank’s overhead as a percentage of its revenue.
(3) Excludes loans held for sale.
GAAP Reconciliation (Unaudited) | ||||||||||||||||||||||||
(dollars in thousands except per share data) | ||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | Year Ended | Three Months Ended | Nine Months Ended | ||||||||||||||||||||
September 30, 2020 | September 30, 2020 | December 31, 2019 | September 30, 2019 | September 30, 2019 | ||||||||||||||||||||
Common shareholders' equity | $ | 1,223,402 | $ | 1,190,681 | $ | 1,184,594 | ||||||||||||||||||
Less: Intangible assets | (105,165 | ) | (104,739 | ) | (104,915 | ) | ||||||||||||||||||
Tangible common equity | $ | 1,118,237 | $ | 1,085,942 | $ | 1,079,679 | ||||||||||||||||||
Book value per common share | $ | 37.96 | $ | 35.82 | $ | 35.13 | ||||||||||||||||||
Less: Intangible book value per common share | (3.26 | ) | (3.15 | ) | (3.11 | ) | ||||||||||||||||||
Tangible book value per common share | $ | 34.70 | $ | 32.67 | $ | 32.02 | ||||||||||||||||||
Total assets | $ | 10,106,294 | $ | 8,988,719 | $ | 9,003,467 | ||||||||||||||||||
Less: Intangible assets | (105,165 | ) | (104,739 | ) | (104,915 | ) | ||||||||||||||||||
Tangible assets | $ | 10,001,129 | $ | 8,883,980 | $ | 8,898,552 | ||||||||||||||||||
Tangible common equity ratio | 11.18 | % | 12.22 | % | 12.13 | % | ||||||||||||||||||
Average common shareholders' equity | $ | 1,137,826 | $ | 1,193,988 | $ | 1,172,051 | $ | 1,197,513 | $ | 1,164,542 | ||||||||||||||
Less: Average intangible assets | (105,106 | ) | (104,826 | ) | (105,167 | ) | (105,034 | ) | (105,297 | ) | ||||||||||||||
Average tangible common equity | $ | 1,032,720 | $ | 1,089,162 | $ | 1,066,884 | $ | 1,092,479 | $ | 1,059,245 | ||||||||||||||
Net Income Available to Common Shareholders | $ | 41,346 | $ | 93,325 | $ | 142,943 | $ | 36,495 | $ | 107,487 | ||||||||||||||
Average tangible common equity | $ | 1,032,720 | $ | 1,089,162 | $ | 1,066,884 | $ | 1,092,479 | $ | 1,059,245 | ||||||||||||||
Annualized Return on Average Tangible Common Equity | 15.93 | % | 11.45 | % | 13.40 | % | 13.25 | % | 13.57 | % |
Eagle Bancorp, Inc. | ||||||||||||||
Consolidated Balance Sheets (Unaudited) | ||||||||||||||
(dollars in thousands, except per share data) | ||||||||||||||
Assets | September 30, 2020 | December 31, 2019 | September 30, 2019 | |||||||||||
Cash and due from banks | $ | 7,559 | $ | 7,539 | $ | 6,657 | ||||||||
Federal funds sold | 30,830 | 38,987 | 27,711 | |||||||||||
Interest bearing deposits with banks and other short-term investments | 818,719 | 195,447 | 361,154 | |||||||||||
Investment securities available for sale, at fair value (amortized cost of $956,803, $839,192, and $701,956, and allowance for credit losses of $156, $0, and $0, as of September 30, 2020, December 31, 2019 and September 30, 2019, respectively). | 977,570 | 843,363 | 708,545 | |||||||||||
Federal Reserve and Federal Home Loan Bank stock | 40,061 | 35,194 | 28,725 | |||||||||||
Loans held for sale | 79,084 | 56,707 | 52,199 | |||||||||||
Loans | 7,880,255 | 7,545,748 | 7,559,161 | |||||||||||
Less allowance for credit losses | (110,215 | ) | (73,658 | ) | (73,720 | ) | ||||||||
Loans, net | 7,770,040 | 7,472,090 | 7,485,441 | |||||||||||
Premises and equipment, net | 12,204 | 14,622 | 14,515 | |||||||||||
Operating lease right-of-use assets | 27,180 | 27,372 | 26,552 | |||||||||||
Deferred income taxes | 36,363 | 29,804 | 29,722 | |||||||||||
Bank owned life insurance | 76,326 | 75,724 | 74,726 | |||||||||||
Intangible assets, net | 105,165 | 104,739 | 104,915 | |||||||||||
Other real estate owned | 4,987 | 1,487 | 1,487 | |||||||||||
Other assets | 120,206 | 85,644 | 81,118 | |||||||||||
Total Assets | $ | 10,106,294 | $ | 8,988,719 | $ | 9,003,467 | ||||||||
Liabilities and Shareholders' Equity | ||||||||||||||
Deposits: | ||||||||||||||
Noninterest bearing demand | $ | 2,384,108 | $ | 2,064,367 | $ | 2,051,106 | ||||||||
Interest bearing transaction | 823,607 | 863,856 | 918,011 | |||||||||||
Savings and money market | 3,956,553 | 3,013,129 | 3,034,530 | |||||||||||
Time, $100,000 or more | 553,949 | 663,987 | 772,340 | |||||||||||
Other time | 460,568 | 619,052 | 626,526 | |||||||||||
Total deposits | 8,178,785 | 7,224,391 | 7,402,513 | |||||||||||
Customer repurchase agreements | 24,293 | 30,980 | 30,297 | |||||||||||
Other short-term borrowings | 300,000 | 250,000 | 100,000 | |||||||||||
Long-term borrowings | 267,980 | 217,687 | 217,589 | |||||||||||
Operating lease liabilities | 30,457 | 29,959 | 29,586 | |||||||||||
Reserve for unfunded commitments | 5,092 | — | — | |||||||||||
Other liabilities | 76,285 | 45,021 | 38,888 | |||||||||||
Total liabilities | 8,882,892 | 7,798,038 | 7,818,873 | |||||||||||
Shareholders' Equity | ||||||||||||||
Common stock, par value $.01 per share; shares authorized 100,000,000, shares | ||||||||||||||
issued and outstanding 32,228,636, 33,241,496, and 34,539,853, respectively | 320 | 331 | 336 | |||||||||||
Additional paid in capital | 442,592 | 482,286 | 502,566 | |||||||||||
Retained earnings | 766,219 | 705,105 | 677,055 | |||||||||||
Accumulated other comprehensive income | 14,271 | 2,959 | 4,637 | |||||||||||
Total Shareholders' Equity | 1,223,402 | 1,190,681 | 1,184,594 | |||||||||||
Total Liabilities and Shareholders' Equity | $ | 10,106,294 | $ | 8,988,719 | $ | 9,003,467 |
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 | 2020 | 2019 | 2020 | 2019 | ||||||||||||
Interest and fees on loans | $ | 89,296 | $ | 102,297 | $ | 278,979 | $ | 302,007 | ||||||||
Interest and dividends on investment securities | 4,141 | 4,904 | 14,139 | 15,740 | ||||||||||||
Interest on balances with other banks and short-term investments | 384 | 1,762 | 2,104 | 4,533 | ||||||||||||
Interest on federal funds sold | 12 | 71 | 84 | 167 | ||||||||||||
Total interest income | 93,833 | 109,034 | 295,306 | 322,447 | ||||||||||||
Interest Expense | ||||||||||||||||
Interest on deposits | 10,995 | 24,576 | 44,055 | 67,937 | ||||||||||||
Interest on customer repurchase agreements | 84 | 82 | 257 | 255 | ||||||||||||
Interest on other short-term borrowings | 505 | 408 | 1,363 | 1,983 | ||||||||||||
Interest on long-term borrowings | 3,211 | 2,979 | 9,486 | 8,937 | ||||||||||||
Total interest expense | 14,795 | 28,045 | 55,161 | 79,112 | ||||||||||||
Net Interest Income | 79,038 | 80,989 | 240,145 | 243,335 | ||||||||||||
Provision for Credit Losses | 6,607 | 3,186 | 40,654 | 10,146 | ||||||||||||
Provision for Unfunded Commitments | (2,078 | ) | — | 974 | — | |||||||||||
Net Interest Income After Provision For Credit Losses | 74,509 | 77,803 | 198,517 | 233,189 | ||||||||||||
Noninterest Income | ||||||||||||||||
Service charges on deposits | 1,061 | 1,494 | 3,428 | 4,794 | ||||||||||||
Gain on sale of loans | 12,226 | 2,563 | 16,249 | 5,874 | ||||||||||||
Gain on sale of investment securities | 115 | 153 | 1,650 | 1,628 | ||||||||||||
Increase in the cash surrender value of bank owned life insurance | 413 | 431 | 1,655 | 1,285 | ||||||||||||
Other income | 4,029 | 1,673 | 12,827 | 5,384 | ||||||||||||
Total noninterest income | 17,844 | 6,314 | 35,809 | 18,965 | ||||||||||||
Noninterest Expense | ||||||||||||||||
Salaries and employee benefits | 19,388 | 19,095 | 54,289 | 60,482 | ||||||||||||
Premises and equipment expenses | 5,125 | 3,503 | 12,414 | 11,007 | ||||||||||||
Marketing and advertising | 928 | 1,210 | 3,117 | 3,626 | ||||||||||||
Data processing | 2,700 | 2,183 | 7,955 | 7,161 | ||||||||||||
Legal, accounting and professional fees | 3,097 | 3,625 | 14,064 | 8,074 | ||||||||||||
FDIC insurance | 2,152 | 85 | 5,556 | 2,327 | ||||||||||||
Other expenses | 3,525 | 3,772 | 11,759 | 12,459 | ||||||||||||
Total noninterest expense | 36,915 | 33,473 | 109,154 | 105,136 | ||||||||||||
Income Before Income Tax Expense | 55,438 | 50,644 | 125,172 | 147,018 | ||||||||||||
Income Tax Expense | 14,092 | 14,149 | 31,847 | 39,531 | ||||||||||||
Net Income | $ | 41,346 | $ | 36,495 | $ | 93,325 | $ | 107,487 | ||||||||
Earnings Per Common Share | ||||||||||||||||
Basic | $ | 1.28 | $ | 1.07 | $ | 2.88 | $ | 3.12 | ||||||||
Diluted | $ | 1.28 | $ | 1.07 | $ | 2.88 | $ | 3.12 |
Eagle Bancorp, Inc. | |||||||||||||||||||||
Consolidated Average Balances, Interest Yields And Rates (Unaudited) | |||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||
Three Months Ended September 30, | |||||||||||||||||||||
2020 | 2019 | ||||||||||||||||||||
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 | $ | 1,275,932 | $ | 384 | 0.12 | % | $ | 344,853 | $ | 1,762 | 2.03 | % | |||||||||
Loans held for sale (1) | 79,354 | 567 | 2.86 | % | 49,765 | 492 | 3.95 | % | |||||||||||||
Loans (1) (2) | 7,910,260 | 88,730 | 4.46 | % | 7,492,816 | 101,805 | 5.39 | % | |||||||||||||
Investment securities available for sale (2) | 906,990 | 4,141 | 1.82 | % | 741,907 | 4,904 | 2.62 | % | |||||||||||||
Federal funds sold | 33,403 | 11 | 0.13 | % | 25,855 | 71 | 1.09 | % | |||||||||||||
Total interest earning assets | 10,205,939 | 93,833 | 3.66 | % | 8,655,196 | 109,034 | 5.00 | % | |||||||||||||
Total noninterest earning assets | 376,681 | 341,452 | |||||||||||||||||||
Less: allowance for credit losses | 109,025 | 73,242 | |||||||||||||||||||
Total noninterest earning assets | 267,656 | 268,210 | |||||||||||||||||||
TOTAL ASSETS | $ | 10,473,595 | $ | 8,923,406 | |||||||||||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||||||||||||||||
Interest bearing liabilities: | |||||||||||||||||||||
Interest bearing transaction | $ | 756,005 | $ | 483 | 0.25 | % | $ | 791,785 | $ | 1,828 | 0.92 | % | |||||||||
Savings and money market | 3,998,603 | 4,929 | 0.49 | % | 2,922,751 | 13,606 | 1.85 | % | |||||||||||||
Time deposits | 1,112,664 | 5,583 | 2.00 | % | 1,444,328 | 9,142 | 2.51 | % | |||||||||||||
Total interest bearing deposits | 5,867,272 | 10,995 | 0.75 | % | 5,158,864 | 24,576 | 1.89 | % | |||||||||||||
Customer repurchase agreements | 28,523 | 84 | 1.17 | % | 27,809 | 82 | 1.17 | % | |||||||||||||
Other short-term borrowings | 300,003 | 506 | 0.66 | % | 100,100 | 408 | 1.59 | % | |||||||||||||
Long-term borrowings | 267,946 | 3,211 | 4.69 | % | 217,555 | 2,979 | 5.36 | % | |||||||||||||
Total interest bearing liabilities | 6,463,744 | 14,796 | 0.91 | % | 5,504,328 | 28,045 | 2.02 | % | |||||||||||||
Noninterest bearing liabilities: | |||||||||||||||||||||
Noninterest bearing demand | 2,724,640 | 2,160,450 | |||||||||||||||||||
Other liabilities | 74,066 | 61,115 | |||||||||||||||||||
Total noninterest bearing liabilities | 2,798,706 | 2,221,565 | |||||||||||||||||||
Shareholders’ Equity | 1,211,145 | 1,197,513 | |||||||||||||||||||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ | 10,473,595 | $ | 8,923,406 | |||||||||||||||||
Net interest income | $ | 79,037 | $ | 80,989 | |||||||||||||||||
Net interest spread | 2.75 | % | 2.98 | % | |||||||||||||||||
Net interest margin | 3.08 | % | 3.72 | % | |||||||||||||||||
Cost of funds | 0.58 | % | 1.28 | % |
(1) Loans placed on nonaccrual status are included in average balances. Net loan fees and late charges included in interest income on loans totaled $5.4 million and $4.3 million for the three months ended September 30, 2020 and 2019, 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, | |||||||||||||||||||||
2020 | 2019 | ||||||||||||||||||||
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 | $ | 990,051 | $ | 2,104 | 0.28 | % | $ | 285,150 | $ | 4,533 | 2.13 | % | |||||||||
Loans held for sale (1) | 66,158 | 1,605 | 3.23 | % | 34,265 | 1,041 | 4.05 | % | |||||||||||||
Loans (1) (2) | 7,859,188 | 277,373 | 4.71 | % | 7,265,726 | 300,966 | 5.54 | % | |||||||||||||
Investment securities available for sale (1) | 865,484 | 14,139 | 2.18 | % | 784,970 | 15,740 | 2.68 | % | |||||||||||||
Federal funds sold | 33,424 | 84 | 0.34 | % | 21,352 | 167 | 1.05 | % | |||||||||||||
Total interest earning assets | 9,814,305 | 295,305 | 4.02 | % | 8,391,463 | 322,447 | 5.14 | % | |||||||||||||
Total noninterest earning assets | 368,974 | 339,355 | |||||||||||||||||||
Less: allowance for credit losses | 99,198 | 70,902 | |||||||||||||||||||
Total noninterest earning assets | 269,776 | 268,453 | |||||||||||||||||||
TOTAL ASSETS | $ | 10,084,081 | 8,659,916 | ||||||||||||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||||||||||||||||
Interest bearing liabilities: | |||||||||||||||||||||
Interest bearing transaction | $ | 787,434 | $ | 2,679 | 0.45 | % | $ | 696,825 | $ | 4,206 | 0.81 | % | |||||||||
Savings and money market | 3,751,397 | 21,619 | 0.77 | % | 2,781,663 | 37,848 | 1.82 | % | |||||||||||||
Time deposits | 1,199,654 | 19,757 | 2.20 | % | 1,406,237 | 25,883 | 2.46 | % | |||||||||||||
Total interest bearing deposits | 5,738,485 | 44,055 | 1.03 | % | 4,884,725 | 67,937 | 1.86 | % | |||||||||||||
Customer repurchase agreements | 29,710 | 257 | 1.16 | % | 29,617 | 255 | 1.15 | % | |||||||||||||
Other short-term borrowings | 273,452 | 1,364 | 0.66 | % | 113,845 | 1,983 | 2.30 | % | |||||||||||||
Long-term borrowings | 257,265 | 9,486 | 4.84 | % | 217,458 | 8,937 | 5.42 | % | |||||||||||||
Total interest bearing liabilities | 6,298,912 | 55,162 | 1.17 | % | 5,245,645 | 79,112 | 2.02 | % | |||||||||||||
Noninterest bearing liabilities: | |||||||||||||||||||||
Noninterest bearing demand | 2,519,867 | 2,183,412 | |||||||||||||||||||
Other liabilities | 71,314 | 66,318 | |||||||||||||||||||
Total noninterest bearing liabilities | 2,591,181 | 2,249,730 | |||||||||||||||||||
Shareholders’ equity | 1,193,988 | 1,164,541 | |||||||||||||||||||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ | 10,084,081 | $ | 8,659,916 | |||||||||||||||||
Net interest income | $ | 240,143 | $ | 243,335 | |||||||||||||||||
Net interest spread | 2.85 | % | 3.12 | % | |||||||||||||||||
Net interest margin | 3.27 | % | 3.88 | % | |||||||||||||||||
Cost of funds | 0.75 | % | 1.26 | % |
(1) Loans placed on nonaccrual status are included in average balances. Net loan fees and late charges included in interest income on loans totaled $16.1 million and $13.1 million for the nine months ended September 30, 2020 and 2019, respectively.
(2) Interest and fees on loans and investments exclude tax equivalent adjustments.
Statements of Income and Highlights Quarterly Trends (Unaudited) | |||||||||||||||||||||||||||||||||||
(dollars in thousands, except per share data) | |||||||||||||||||||||||||||||||||||
Three Months Ended | |||||||||||||||||||||||||||||||||||
September 30, | June 30, | March 31, | December 31, | September 30, | June 30, | March 31, | December 31, | ||||||||||||||||||||||||||||
Income Statements: | 2020 | 2020 | 2020 | 2019 | 2019 | 2019 | 2019 | 2018 | |||||||||||||||||||||||||||
Total interest income | $ | 93,833 | $ | 97,672 | $ | 103,801 | $ | 107,183 | $ | 109,034 | $ | 108,279 | $ | 105,134 | $ | 105,581 | |||||||||||||||||||
Total interest expense | 14,795 | 16,309 | 24,057 | 26,473 | 28,045 | 26,950 | 24,117 | 23,869 | |||||||||||||||||||||||||||
Net interest income | 79,038 | 81,363 | 79,744 | 80,710 | 80,989 | 81,329 | 81,017 | 81,712 | |||||||||||||||||||||||||||
Provision for credit losses | 6,607 | 19,737 | 14,310 | 2,945 | 3,186 | 3,600 | 3,360 | 2,600 | |||||||||||||||||||||||||||
Provision for unfunded commitments | (2,078 | ) | 940 | 2,112 | — | — | — | — | — | ||||||||||||||||||||||||||
Net interest income after provision for credit losses | 74,509 | 60,686 | 63,322 | 77,765 | 77,803 | 77,729 | 77,657 | 79,112 | |||||||||||||||||||||||||||
Noninterest income (before investment gain (loss)) | 17,729 | 11,782 | 4,648 | 6,845 | 6,161 | 5,797 | 5,379 | 6,060 | |||||||||||||||||||||||||||
Gain (loss) on sale of investment securities | 115 | 713 | 822 | (111 | ) | 153 | 563 | 912 | 29 | ||||||||||||||||||||||||||
Total noninterest income | 17,844 | 12,495 | 5,470 | 6,734 | 6,314 | 6,360 | 6,291 | 6,089 | |||||||||||||||||||||||||||
Salaries and employee benefits | 19,388 | 17,104 | 17,797 | 19,360 | 19,095 | 17,743 | 23,644 | 15,907 | |||||||||||||||||||||||||||
Premises and equipment | 5,125 | 3,468 | 3,821 | 3,380 | 3,503 | 3,652 | 3,852 | 3,969 | |||||||||||||||||||||||||||
Marketing and advertising | 928 | 1,111 | 1,078 | 1,200 | 1,210 | 1,268 | 1,148 | 1,147 | |||||||||||||||||||||||||||
Other expenses | 11,474 | 13,209 | 14,651 | 10,786 | 9,665 | 10,696 | 9,660 | 10,664 | |||||||||||||||||||||||||||
Total noninterest expense | 36,915 | 34,892 | 37,347 | 34,726 | 33,473 | 33,359 | 38,304 | 31,687 | |||||||||||||||||||||||||||
Income before income tax expense | 55,438 | 38,289 | 31,445 | 49,773 | 50,644 | 50,730 | 45,644 | 53,514 | |||||||||||||||||||||||||||
Income tax expense | 14,092 | 9,433 | 8,322 | 14,317 | 14,149 | 13,487 | 11,895 | 13,197 | |||||||||||||||||||||||||||
Net income | 41,346 | 28,856 | 23,123 | 35,456 | 36,495 | 37,243 | 33,749 | 40,317 | |||||||||||||||||||||||||||
Per Share Data: | |||||||||||||||||||||||||||||||||||
Earnings per weighted average common share, basic | $ | 1.28 | $ | 0.90 | $ | 0.70 | $ | 1.06 | $ | 1.07 | $ | 1.08 | $ | 0.98 | $ | 1.17 | |||||||||||||||||||
Earnings per weighted average common share, diluted | $ | 1.28 | $ | 0.90 | $ | 0.70 | $ | 1.06 | $ | 1.07 | $ | 1.08 | $ | 0.98 | $ | 1.17 | |||||||||||||||||||
Weighted average common shares outstanding, basic | 32,229,322 | 32,224,695 | 32,850,112 | 33,468,572 | 34,232,890 | 34,540,152 | 34,480,772 | 34,349,089 | |||||||||||||||||||||||||||
Weighted average common shares outstanding, diluted | 32,250,885 | 32,240,825 | 32,875,508 | 33,498,681 | 34,255,889 | 34,565,253 | 34,536,236 | 34,460,985 | |||||||||||||||||||||||||||
Actual shares outstanding at period end | 32,228,636 | 32,224,756 | 32,197,258 | 33,241,496 | 33,720,522 | 34,539,853 | 34,537,193 | 34,387,919 | |||||||||||||||||||||||||||
Book value per common share at period end | $ | 37.96 | $ | 36.86 | $ | 36.11 | $ | 35.82 | $ | 35.13 | $ | 34.30 | $ | 33.25 | $ | 32.25 | |||||||||||||||||||
Tangible book value per common share at period end (1) | $ | 34.70 | $ | 33.62 | $ | 32.86 | $ | 32.67 | $ | 32.02 | $ | 31.25 | $ | 30.20 | $ | 29.17 | |||||||||||||||||||
Dividend per common share | $ | 0.22 | $ | 0.22 | $ | 0.22 | $ | 0.22 | $ | 0.22 | $ | 0.22 | $ | — | $ | — | |||||||||||||||||||
Performance Ratios (annualized): | |||||||||||||||||||||||||||||||||||
Return on average assets | 1.57 | % | 1.12 | % | 0.98 | % | 1.49 | % | 1.62 | % | 1.74 | % | 1.62 | % | 1.90 | % | |||||||||||||||||||
Return on average common equity | 14.46 | % | 9.84 | % | 7.81 | % | 11.78 | % | 12.09 | % | 12.81 | % | 12.12 | % | 14.82 | % | |||||||||||||||||||
(continued) | |||||||||||||||||||||||||||||||||||
Statements of Income and Highlights Quarterly Trends (Unaudited) | |||||||||||||||||||||||||||||||||||
(dollars in thousands, except per share data) | |||||||||||||||||||||||||||||||||||
Three Months Ended | |||||||||||||||||||||||||||||||||||
September 30, | June 30, | March 31, | December 31, | September 30, | June 30, | March 31, | December 31, | ||||||||||||||||||||||||||||
2020 | 2020 | 2020 | 2019 | 2019 | 2019 | 2019 | 2018 | ||||||||||||||||||||||||||||
Return on average tangible common equity | 15.93 | % | 10.80 | % | 8.56 | % | 12.91 | % | 13.25 | % | 14.08 | % | 13.38 | % | 16.43 | % | |||||||||||||||||||
Net interest margin | 3.08 | % | 3.26 | % | 3.49 | % | 3.49 | % | 3.72 | % | 3.91 | % | 4.02 | % | 3.97 | % | |||||||||||||||||||
Efficiency ratio (2) | 38.10 | % | 37.18 | % | 43.83 | % | 39.71 | % | 38.34 | % | 38.04 | % | 43.87 | % | 36.09 | % | |||||||||||||||||||
Other Ratios: | |||||||||||||||||||||||||||||||||||
Allowance for credit losses to total loans (3) | 1.40 | % | 1.36 | % | 1.23 | % | 0.98 | % | 0.98 | % | 0.98 | % | 0.98 | % | 1.00 | % | |||||||||||||||||||
Allowance for credit losses to total nonperforming loans (4) | 189.83 | % | 184.52 | % | 201.80 | % | 151.16 | % | 127.87 | % | 192.70 | % | 173.72 | % | 429.72 | % | |||||||||||||||||||
Nonperforming loans to total loans (3) (4) | 0.74 | % | 0.74 | % | 0.61 | % | 0.65 | % | 0.76 | % | 0.51 | % | 0.56 | % | 0.23 | % | |||||||||||||||||||
Nonperforming assets to total assets (4) | 0.62 | % | 0.69 | % | 0.56 | % | 0.56 | % | 0.66 | % | 0.45 | % | 0.50 | % | 0.21 | % | |||||||||||||||||||
Net charge-offs (annualized) to average loans (3) | 0.26 | % | 0.36 | % | 0.12 | % | 0.16 | % | 0.08 | % | 0.08 | % | 0.19 | % | 0.05 | % | |||||||||||||||||||
Tier 1 capital (to average assets) | 10.82 | % | 10.63 | % | 11.33 | % | 11.62 | % | 12.19 | % | 12.66 | % | 12.49 | % | 12.08 | % | |||||||||||||||||||
Total capital (to risk weighted assets) | 16.72 | % | 16.33 | % | 15.44 | % | 16.20 | % | 16.08 | % | 16.36 | % | 16.22 | % | 16.08 | % | |||||||||||||||||||
Common equity tier 1 capital (to risk weighted assets) | 13.19 | % | 12.79 | % | 12.14 | % | 12.87 | % | 12.76 | % | 12.87 | % | 12.69 | % | 12.47 | % | |||||||||||||||||||
Tangible common equity ratio (1) | 11.18 | % | 11.17 | % | 10.70 | % | 12.22 | % | 12.13 | % | 12.60 | % | 12.59 | % | 12.11 | % | |||||||||||||||||||
Average Balances (in thousands): | |||||||||||||||||||||||||||||||||||
Total assets | $ | 10,473,595 | $ | 10,326,709 | $ | 9,447,663 | $ | 9,426,220 | $ | 8,923,406 | $ | 8,595,523 | $ | 8,455,680 | $ | 8,415,480 | |||||||||||||||||||
Total earning assets | $ | 10,205,939 | $ | 10,056,500 | $ | 9,176,174 | $ | 9,160,034 | $ | 8,655,196 | $ | 8,328,323 | $ | 8,185,711 | $ | 8,171,010 | |||||||||||||||||||
Total loans | $ | 7,910,260 | $ | 8,015,751 | $ | 7,650,993 | $ | 7,532,179 | $ | 7,492,816 | $ | 7,260,899 | $ | 7,038,472 | $ | 6,897,434 | |||||||||||||||||||
Total deposits | $ | 8,591,912 | $ | 8,482,718 | $ | 7,696,764 | $ | 7,716,973 | $ | 7,319,314 | $ | 6,893,981 | $ | 6,987,468 | $ | 6,950,714 | |||||||||||||||||||
Total borrowings | $ | 596,472 | $ | 598,463 | $ | 485,948 | $ | 449,432 | $ | 345,464 | $ | 470,214 | $ | 266,209 | $ | 342,637 | |||||||||||||||||||
Total shareholders’ equity | $ | 1,211,145 | $ | 1,179,452 | $ | 1,191,180 | $ | 1,194,337 | $ | 1,197,513 | $ | 1,166,487 | $ | 1,128,869 | $ | 1,079,622 |
(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 equityratio 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.(4) Nonperforming loans at September 30, 2019, includes a $16.5 million loan that was brought current shortly after quarter end.
EAGLE BANCORP, INC.CONTACT:Michael T. Flynn301.986.1800
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