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Eagle Bancorp, Inc. Announces 20% Increase in Net Income for First Quarter of 2016 Over 2015

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BETHESDA, Md., April 20, 2016 (GLOBE NEWSWIRE) -- Eagle Bancorp, Inc. (the "Company") (NASDAQ: EGBN), the parent company of EagleBank, today announced record quarterly net income of $23.3 million for the three months ended March 31, 2016, a 20% increase over the $19.4 million net income for the three months ended March 31, 2015. Net income available to common shareholders for the three months ended March 31, 2016 increased 21% to $23.3 million as compared to $19.2 million for the same period in 2015.

Eagle Bancorp, Inc. Logo


Net income per basic common share for the three months ended March 31, 2016 was $0.70 compared to $0.62 for the same period in 2015, a 13% increase. Net income per diluted common share for the three months ended March 31, 2016 was $0.68 compared to $0.61 for the same period in 2015, an 11% increase.

"We are very pleased to report our twenty-ninth consecutive quarter of record earnings, which continued to exhibit positive trends of balance sheet growth, revenue growth, solid asset quality and improved operating leverage," noted Ronald D. Paul, Chairman and Chief Executive Officer of Eagle Bancorp, Inc.  Mr. Paul added, "in addition to quarterly earnings having increased for each quarter since the fourth quarter of 2008, the Company has demonstrated quarterly earnings growth in the five quarters since completing the merger with Virginia Heritage Bank in the fourth quarter of 2014."

The Company's performance in the first quarter of 2016 as compared to 2015 was highlighted by growth in total loans of 16% and in total deposits of 13%; by 11% growth in total assets; by 10% growth in total revenue; by an annualized net charge-off ratio to average loans of 0.09% and by further improvement in operating leverage from an already favorable position. For the first quarter in 2016, the efficiency ratio was 40.80%. Mr. Paul added, "at a time when the net interest margins of banks are being challenged given the continuing low interest rate environment, the Company remains committed to emphasizing favorable cost management measures and strong productivity." The strong first quarter earnings resulted in an annualized return on average assets ("ROAA") of 1.54% and an annualized return on average common equity ("ROACE") of 12.39%.

For the first quarter of 2016, total loans grew 3.2% over December 31, 2015, and averaged 16% higher in the first quarter of 2016 as compared to the first quarter of 2015. For the first quarter of 2016, total deposits increased about 1% over December 31, 2015, and averaged 19% higher for the first quarter of 2016 compared with the first quarter of 2015.

The net interest margin was 4.31% for the first quarter of 2016, ten basis points lower than the first quarter of 2015 and seven basis points lower than the fourth quarter of 2015. Mr. Paul noted, "the continuing low interest rate environment has provided a challenging time for spread earnings. In the current environment, the Company has continued its emphasis on disciplined pricing for both new loans and funding sources, which has resulted in the Company maintaining a superior net interest margin. Despite the contraction in our Net Interest Margin ("NIM"), our focus continues on all of the overall factors that contribute to allow our Earnings Per Share ("EPS") to continue to grow."

Total revenue (net interest income plus noninterest income) for the first quarter of 2016 was $68.9 million, or 10% above the $62.5 million of total revenue earned for the first quarter of 2015 and was consistent with the $69.1 million of revenue earned in the fourth quarter of 2015.

The primary driver of the Company's revenue growth for the first quarter of 2016 as compared to the first quarter in 2015 was its net interest income growth of 14% ($62.6 million versus $54.7 million).  Noninterest income declined by 19% in the first quarter 2016, due substantially to fewer residential loan originations and related gains on the sale of residential mortgage loans. Excluding gains on sales of investment securities and prepayment penalties on early payoffs of Federal Home Loan Banking ("FHLB") advances in the first quarter of 2015, core noninterest income was $5.7 million in the first quarter of 2016 as compared to $6.8 million for the first quarter of 2015, a decline of 16%.   

While the Company's primary focus continues to be on generating spread or net interest income, management also looks to residential mortgage banking as well as Small Business Administration ("SBA") loan activity as components of the Company's ongoing noninterest income growth opportunities. For the first quarter of 2016, gains on the sale of residential mortgage loans was $1.2 million as compared to $3.2 million for the first quarter of 2015, a three month period of substantial refinance activity. Sales of SBA guaranteed loans resulted in $243 thousand of gains on sales for the first quarter of 2016 versus $340 thousand for the same period in 2015.

Asset quality measures remained solid at March 31, 2016. Net charge-offs (annualized) were 0.09% of average loans for the first quarter of 2016, as compared to 0.15% of average loans for the first quarter of 2015. At March 31, 2016, the Company's nonperforming loans amounted to $21.9 million (0.43% of total loans) as compared to $19.6 million (0.44% of total loans) at March 31, 2015 and $13.2 million (0.26% of total loans) at December 31, 2015. Nonperforming assets amounted to $25.8 million (0.42% of total assets) at March 31, 2016 compared to $31.9 million (0.58% of total assets) at March 31, 2015 and $19.1 million (0.31% of total assets) at December 31, 2015.

Management continues to remain attentive to any signs of deterioration in borrowers' financial conditions and is proactive in taking the appropriate steps to mitigate risk. Furthermore, the Company is diligent in placing loans on nonaccrual status and believes, based on its loan portfolio risk analysis, that its allowance for credit losses, at 1.06% of total loans (excluding loans held for sale) at March 31, 2016, is adequate to absorb potential credit losses within the loan portfolio at that date. The allowance for credit losses was 1.07% at March 31, 2015 and 1.05% of total loans at December 31, 2015.  The allowance for credit losses represented 249% of nonperforming loans at March 31, 2016, as compared to 244% at March 31, 2015 and 398% at December 31, 2015.

"The Company's focus on productivity remained quite strong in the quarter," noted Mr. Paul. The efficiency ratio of 40.80% reflects management's ongoing efforts to maintain superior operating leverage. The annualized level of noninterest expenses as a percentage of average assets has declined to 1.85% in the first quarter of 2016 as compared to 2.13% in the first quarter of 2015. The merger completed in the fourth quarter of 2014 accelerated a trend of improvement in the Company's operating leverage which continues to occur and which has carried into subsequent quarters. A relatively stable staff, branch rationalization and leveraging of other fixed costs have been the major reasons for improved operating leverage. The Company's goal is to maximize operating performance without inhibiting growth or negatively impacting our ability to service our customers. Mr. Paul further noted, "We will maintain strict oversight of expenses, while retaining an infrastructure to remain competitive, support our growth initiatives and manage risk." We continue seeing the efficiencies we expected as a result of a variety of investments in technology, as well as the efficiencies created by the Merger with Virginia Heritage Bank.

Total assets at March 31, 2016 were $6.13 billion, a 12% increase as compared to $5.50 billion at March 31, 2015, and a 1% increase as compared to $6.08 billion at December 31, 2015. Total loans (excluding loans held for sale) were $5.16 billion at March 31, 2016, a 16% increase as compared to $4.44 billion at March 31, 2015, and a 3.2% increase as compared to $5.00 billion at December 31, 2015. Loans held for sale amounted to $45.7 million at March 31, 2016 as compared to $62.8 million at March 31, 2015, a 27% decrease, and $47.5 million at December 31, 2015, a 4% decrease. The investment portfolio totaled $487.6 million at March 31, 2016, a 46% increase from the $333.5 million balance at March 31, 2015. As compared to December 31, 2015, the investment portfolio at March 31, 2016 decreased by $260 thousand or 0.1%.

Total deposits at March 31, 2016 were $5.19 billion compared to deposits of $4.58 billion at March 31, 2015, a 13% increase and $5.16 billion at December 31, 2015, a 0.6% increase. Total borrowed funds (excluding customer repurchase agreements) were $69.0 million at March 31, 2016, $78.1 million at March 31, 2015 and $68.9 million at December 31, 2015. We continue to work on expanding the breadth and depth of our existing relationships while we pursue building new relationships.

Total shareholders' equity at March 31, 2016 increased 3%, to $762.5 million, compared to $741.5 million at March 31, 2015, and increased 3%, from $738.6 million, at December 31, 2015. The increase in shareholders' equity at March 31, 2016 compared to the same period in 2015 reflects increased earnings offset by the redemption of all $71.9 million of the preferred stock issued under the Small Business Lending Fund ("SBLF") during the fourth quarter of 2015. The Company's capital position remains substantially in excess of regulatory requirements for well capitalized status, with a total risk based capital ratio of 12.87% at March 31, 2016, as compared to 13.90% at March 31, 2015, and 12.75% at December 31, 2015. In addition, the tangible common equity ratio was 10.86% at March 31, 2016, compared to 10.39% at March 31, 2015 and 10.56% at December 31, 2015.

For the three months ended March 31, 2016, the Company reported an annualized ROAA of 1.54% as compared to 1.49% for the three months ended March 31, 2015. The annualized ROACE for the three months ended March 31, 2016 was 12.39%, as compared to 13.24% for the three months ended March 31, 2015. The lower ROACE during the three months ended March 31, 2016 is due to a higher average capital position.

Net interest income increased 14% for the three months ended March 31, 2016 over the same period in 2015 ($62.6 million versus $54.7 million), resulting from growth in average earning assets of 16%. The net interest margin was 4.31% for the three months ended March 31, 2016, as compared to 4.41% for the three months ended March 31, 2015. The Company believes its net interest margin remains favorable compared to peer banking companies and that its disciplined approach to managing the loan portfolio yield to 5.13% for the first quarter in 2016 has been a significant factor in its overall profitability.

The provision for credit losses was $3.0 million for the three months ended March 31, 2016 as compared to $3.3 million for the three months ended March 31, 2015. The lower provisioning in the first quarter of 2016, as compared to the first quarter of 2015, is due to lower net charge-offs. Net charge-offs of $1.1 million in the first quarter of 2016 represented an annualized 0.09% of average loans, excluding loans held for sale, as compared to $1.6 million, or an annualized 0.15% of average loans, excluding loans held for sale, in the first quarter of 2015. Net charge-offs in the first quarter of 2016 were attributable primarily to commercial ($733 thousand) and investment-commercial real estate ($390 thousand) loans.

Noninterest income for the three months ended March 31, 2016 decreased to $6.3 million from $7.8 million for the three months ended March 31, 2015, a 19% decrease. This decrease was primarily due to a decrease of $2.1 million in gains on the sale of residential mortgage loans due to lower origination and sales volumes and a decrease in gains realized on the sale of investment securities of $1.5 million. Residential mortgage loans closed were $132 million for the first quarter in 2016 versus $285 million for the first quarter of 2015. Net investment gains were $624 thousand for the three months ended March 31, 2016 compared to $2.2 million for the same period in 2015. These decreases were offset by a $1.1 million loss on the early extinguishment of debt recorded in March of 2015 due to the early payoff of FHLB advances and an increase of $905 thousand in other income due primarily to a $573 thousand gain on the sale of one OREO property. Excluding investment securities gains and the loss on early extinguishment of debt, total noninterest income was $5.7 million for the three months ended March 31, 2016, as compared to $6.8 million for the same period in 2015, a 16% decrease.

The efficiency ratio, which measures the ratio of noninterest expense to total revenue, was 40.80% for the first quarter of 2016, as compared to 44.89% for the first quarter of 2015. Noninterest expenses totaled $28.1 million for the three months ended March 31, 2016, as compared to $28.1 million for the three months ended March 31, 2015. Cost increases for salaries and benefits were $413 thousand, due primarily to increased staff, merit increases and employee benefit expense increases. Premises and equipment expenses were $184 thousand lower, due primarily to the closing of one branch office acquired in the merger and the in-process downsizing of two other banking offices. Marketing and advertising expense increased by $89 thousand primarily due to costs associated with digital and print advertising and sponsorships. Data processing expense increased $230 thousand primarily due to increased accounts and transaction volume and to licensing agreements. Higher FDIC expenses were due to higher deposit levels. Other expenses declined primarily due to lower OREO expenses.

The financial information which follows provides more detail on the Company's financial performance for the three months ended March 31, 2016 as compared to the three months ended March 31, 2015 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, 2015 and other reports filed with the Securities and Exchange Commission (the "SEC").

About Eagle Bancorp: The Company is the holding company for EagleBank, which commenced operations in 1998. The Bank is headquartered in Bethesda, Maryland, and operates through twenty-one branch offices, located in Montgomery County, Maryland, Washington, D.C. and Northern Virginia. The Company focuses on building relationships with businesses, professionals and individuals in its marketplace.

Conference Call: Eagle Bancorp will host a conference call to discuss its first quarter 2016 financial results on Thursday, April 21, 2016 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 82190545, or by accessing the call on the Company's website, www.EagleBankCorp.com. A replay of the conference call will be available on the Company's website through May 5, 2016.

Forward-looking Statements: This press release contains forward-looking statements within the meaning of the Securities and Exchange Act of 1934, as amended, including statements of goals, intentions, and expectations as to future trends, plans, events or results of Company operations and policies and regarding general economic conditions. In some cases, forward-looking statements can be identified by use of words such as "may," "will," "anticipates," "believes," "expects," "plans," "estimates," "potential," "continue," "should," and similar words or phrases. These statements are based upon current and anticipated economic conditions, nationally and in the Company's market, interest rates and interest rate policy, competitive factors, and other conditions which by their nature, are not susceptible to accurate forecast and are subject to significant uncertainty. Because of these uncertainties and the assumptions on which this discussion and the forward-looking statements are based, actual future operations and results in the future may differ materially from those indicated herein. For details on factors that could affect these expectations, see the risk factors and other cautionary language included in the Company's Annual Report on Form 10-K for the year ended December 31, 2015 and in other periodic and current reports filed with the SEC. Readers are cautioned against placing undue reliance on any such forward-looking statements. The Company's past results are not necessarily indicative of future performance.

Eagle Bancorp, Inc.   
Consolidated Financial Highlights (Unaudited)   
(dollars in thousands, except per share data) 
 Three Months Ended March 31,
  2016   2015 
Income Statements:   
Total interest income$  67,807  $  59,465 
Total interest expense   5,217     4,734 
Net interest income   62,590     54,731 
Provision for credit losses   3,043     3,310 
Net interest income after provision for credit losses   59,547     51,421 
Noninterest income (before investment gains and extinguishment of debt)   5,666     6,770 
Gain on sale of investment securities   624     2,164 
Loss on early extinguishment of debt   -      (1,130)
Total noninterest income   6,290     7,804 
Total noninterest expense    28,102     28,073 
Income before income tax expense   37,735     31,152 
Income tax expense   14,413     11,734 
Net income   23,322     19,418 
Preferred stock dividends    -      180 
Net income available to common shareholders$  23,322  $  19,238 
    
Per Share Data:   
Earnings per weighted average common share, basic$  0.70  $  0.62 
Earnings per weighted average common share, diluted$  0.68  $  0.61 
Weighted average common shares outstanding, basic    33,518,998     31,082,715 
Weighted average common shares outstanding, diluted    34,104,237     31,776,323 
Actual shares outstanding at period end   33,581,599     33,303,467 
Book value per common share at period end $  22.71  $  20.11 
Tangible book value per common share at period end (1)  $  19.48  $  16.82 
    
Performance Ratios (annualized):   
Return on average assets 1.54%  1.49%
Return on average common equity 12.39%  13.24%
Net interest margin 4.31%  4.41%
Efficiency ratio (2) 40.80%  44.89%
    
Other Ratios:   
Allowance for credit losses to total loans (3) 1.06%  1.07%
Allowance for credit losses to total nonperforming loans 249.03%  244.12%
Nonperforming loans to total loans (3) 0.43%  0.44%
Nonperforming assets to total assets 0.42%  0.58%
Net charge-offs (annualized) to average loans (3) 0.09%  0.15%
Common equity to total assets 12.44%  12.18%
Tier 1 capital (to average assets) 11.01%  12.19%
Total capital (to risk weighted assets) 12.87%  13.90%
Common equity tier 1 capital (to risk weighted assets) 10.83%  10.37%
Tangible common equity ratio (1) 10.86%  10.39%
    
Loan Balances - Period End (in thousands):   
Commercial and Industrial$  1,060,047  $  933,715 
Commercial real estate - owner occupied $  569,915  $  493,003 
Commercial real estate - income producing $  2,138,091  $  1,739,483 
1-4 Family mortgage$  149,159  $  147,871 
Construction - commercial and residential$  1,034,689  $  862,013 
Construction - C&I (owner occupied)$  87,324  $  49,558 
Home equity$  110,985  $  120,543 
Other consumer $  5,661  $  98,707 
    
Average Balances (in thousands):   
Total assets$  6,072,533  $  5,270,301 
Total earning assets$  5,844,915  $  5,039,428 
Total loans$  5,070,386  $  4,376,248 
Total deposits$  5,143,670  $  4,330,403 
Total borrowings$  139,324  $  249,516 
Total shareholders' equity$  756,916  $  661,364 
        

(1) Tangible common equity to tangible assets (the "tangible common equity ratio") and tangible book value per common share are non-GAAP financial measures derived from GAAP based amounts. The Company calculates the tangible common equity ratio by excluding the balance of intangible assets from common shareholders' equity and dividing by tangible assets. The Company calculates tangible book value per common share by dividing tangible common equity by common shares outstanding, as compared to book value per common share, which the Company calculates by dividing common shareholders' equity by common shares outstanding. The Company considers this information important to shareholders as tangible equity is a measure that is consistent with the calculation of capital for bank regulatory purposes, which excludes intangible assets from the calculation of risk based ratios and as such is useful for investors, regulators, management and others to evaluate capital adequacy and to compare against other financial institutions. The table below provides a reconciliation of these non-GAAP financial measures with financial measures defined by GAAP.

    
GAAP Reconciliation (Unaudited)   
(dollars in thousands except per share data)   
 Three Months Ended Three Months Ended
 March 31, 2016 March 31, 2015
Common shareholders' equity$  762,496  $  669,630 
Less: Intangible assets   (108,268)    (109,617)
Tangible common equity$  654,228  $  560,013 
    
Book value per common share$  22.71  $  20.11 
Less: Intangible book value per common share   (3.23)    (3.29)
Tangible book value per common share$  19.48  $  16.82 
    
Total assets$  6,131,222  $  5,499,175 
Less: Intangible assets   (108,268)    (109,617)
Tangible assets$  6,022,954  $  5,389,558 
Tangible common equity ratio 10.86%  10.39%
    

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

(3) Excludes loans held for sale.

      
Eagle Bancorp, Inc.     
Consolidated Balance Sheets (Unaudited)     
(dollars in thousands, except per share data)     
      
AssetsMarch 31, 2016 December 31, 2015 March 31, 2015
Cash and due from banks$  11,856  $  10,270  $  9,615 
Federal funds sold 14,905   3,791   2,700 
Interest bearing deposits with banks and other short-term investments 175,136   284,302   403,346 
Investment securities available for sale, at fair value   487,609     487,869     333,531 
Federal Reserve and Federal Home Loan Bank stock   17,696     16,903     16,793 
Loans held for sale   45,679     47,492     62,758 
Loans  5,155,871   4,998,368   4,444,893 
Less allowance for credit losses   (54,608)    (52,687)    (47,779)
Loans, net 5,101,263   4,945,681   4,397,114 
Premises and equipment, net   17,939     18,254     18,185 
Deferred income taxes   41,136     40,311     32,089 
Bank owned life insurance   58,974     58,682     56,983 
Intangible assets, net   108,268     108,542     109,617 
Other real estate owned   3,846     5,852     12,338 
Other assets   46,915     47,628     44,106 
Total Assets$6,131,222  $6,075,577  $5,499,175 
      
Liabilities and Shareholders' Equity     
Deposits:     
Noninterest bearing demand$1,474,102  $1,405,067  $1,196,165 
Interest bearing transaction   219,646     178,797     178,291 
Savings and money market 2,704,249   2,835,325   2,405,435 
Time, $100,000 or more   409,698     406,570     412,691 
Other time   381,951     332,685     391,783 
Total deposits 5,189,646   5,158,444   4,584,365 
Customer repurchase agreements   66,963     72,356     58,589 
Long-term borrowings   68,958     68,928     78,135 
Other liabilities   43,159     37,248     36,556 
Total liabilities 5,368,726   5,336,976   4,757,645 
      
Shareholders' Equity     
      
Preferred stock, par value $.01 per share, shares authorized 1,000,000, Series B, $1,000 per share liquidation preference, shares issued and outstanding -0- at March 31, 2016 and December 31, 2015, and 56,600 at March 31, 2015;  Series C, $1,000 per share liquidation preference, shares issued and outstanding -0- at March 31, 2016 and December 31, 2015, and 15,300 at March 31, 2015   -      -      71,900 
Common stock, par value $.01 per share; shares authorized 100,000,000, shares issued and outstanding 33,581,599, 33,467,893 and 33,303,467 respectively    333     331     329 
Warrant   946     946     946 
Additional paid in capital   505,339     503,529     495,784 
Retained earnings    256,925     233,604     169,291 
Accumulated other comprehensive (loss) income    (1,047)    191     3,280 
Total Shareholders' Equity   762,496     738,601     741,530 
Total Liabilities and Shareholders' Equity$ 6,131,222  $ 6,075,577  $ 5,499,175 
      

 

Eagle Bancorp, Inc.   
Consolidated Statements of Operations (Unaudited)   
(dollars in thousands, except per share data)   
  
 Three Months Ended March 31,
Interest Income 2016   2015 
Interest and fees on loans$  64,922  $  57,179 
Interest and dividends on investment securities   2,588     2,139 
Interest on balances with other banks and short-term investments   284     138 
Interest on federal funds sold    13     9 
Total interest income   67,807     59,465 
Interest Expense   
Interest on deposits   4,143     3,242 
Interest on customer repurchase agreements    37     27 
Interest on short-term borrowings   -      54 
Interest on long-term borrowings   1,037     1,411 
  Total interest expense   5,217     4,734 
Net Interest Income    62,590     54,731 
Provision for Credit Losses   3,043     3,310 
Net Interest Income After Provision For Credit Losses   59,547     51,421 
    
Noninterest Income   
Service charges on deposits   1,448     1,333 
Gain on sale of loans   1,463     3,587 
Gain on sale of investment securities   624     2,164 
Loss on early extinguishment of debt   -      (1,130)
Increase in the cash surrender value of  bank owned life insurance    390     390 
Other income   2,365     1,460 
  Total noninterest income   6,290     7,804 
Noninterest Expense   
Salaries and employee benefits   16,119     15,706 
Premises and equipment expenses   3,826     4,010 
Marketing and advertising   774     685 
Data processing   2,014     1,784 
Legal, accounting and professional fees   1,063     982 
FDIC insurance   809     771 
Merger expenses   -      111 
Other expenses   3,497     4,024 
  Total noninterest expense 28,102   28,073 
Income Before Income Tax Expense   37,735     31,152 
Income Tax Expense   14,413     11,734 
Net Income    23,322     19,418 
Preferred Stock Dividends    -      180 
Net Income Available to Common Shareholders$  23,322  $  19,238 
    
Earnings Per Common Share   
Basic$  0.70  $  0.62 
Diluted$  0.68  $  0.61 
    

 

Eagle Bancorp, Inc.
Consolidated Average Balances, Interest Yields And Rates (Unaudited)
(dollars in thousands)
        
 Three Months Ended March 31,
  2016   2015 
 Average BalanceInterestAverage
Yield/Rate
 Average BalanceInterestAverage
Yield/Rate
ASSETS       
Interest earning assets:       
Interest bearing deposits with other banks and other short-term investments$  236,131 $  284  0.48% $  239,313 $  138  0.23%
Loans held for sale (1)   29,247    273  3.73%    46,728    431  3.69%
Loans (1) (2)    5,070,386    64,649  5.13%    4,376,248    56,749  5.26%
Investment securities available for sale (2)   498,187    2,588  2.09%    362,345    2,139  2.39%
Federal funds sold    10,964    13  0.48%    14,794    9  0.25%
Total interest earning assets   5,844,915    67,807  4.67%    5,039,428    59,466  4.79%
        
Total noninterest earning assets   281,535       277,965   
Less: allowance for credit losses   53,917       47,092   
Total noninterest earning assets   227,618       230,873   
TOTAL ASSETS$  6,072,533    $  5,270,301   
        
LIABILITIES AND SHAREHOLDERS' EQUITY       
Interest bearing liabilities:       
Interest bearing transaction$  189,997 $  101  0.21% $  151,933 $  50  0.13%
Savings and money market    2,755,028    2,519  0.37%    2,275,985    1,874  0.33%
Time deposits    746,449    1,523  0.82%    739,762    1,318  0.72%
Total interest bearing deposits   3,691,474    4,143  0.45%    3,167,680    3,242  0.42%
Customer repurchase agreements   70,385    37  0.21%    54,231    27  0.20%
Other short-term borrowings   -     -   -     83,389    54  0.26%
Long-term borrowings   68,939    1,037  5.95%    111,896    1,411  5.04%
Total interest bearing liabilities   3,830,798    5,217  0.55%    3,417,196    4,734  0.56%
        
Noninterest bearing liabilities:       
Noninterest bearing demand    1,452,196       1,162,723   
Other liabilities   32,623       29,018   
Total noninterest bearing liabilities   1,484,819       1,191,741   
        
Shareholders' equity   756,916       661,364   
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY$  6,072,533    $  5,270,301   
        
Net interest income $  62,590    $  54,731  
Net interest spread   4.12%    4.23%
Net interest margin   4.31%    4.41%
Cost of funds   0.36%    0.38%
        
(1) Loans placed on nonaccrual status are included in average balances. Net loan fees and late charges included in interest income on loans totaled $3.8 million and $2.8 million for the three months ended March 31, 2016 and 2015, respectively.
(2) Interest and fees on loans and investments exclude tax equivalent adjustments.       

 

Eagle Bancorp, Inc.                
Statements of Income and Highlights Quarterly Trends (Unaudited)  
(dollars in thousands, except per share data)                
 Three Months Ended  
 March 31, December 31, September 30, June 30, March 31, December 31, September 30, June 30, 
Income Statements: 2016   2015   2015   2015   2015   2014   2014   2014  
Total interest income$  67,807  $  67,311  $  63,981  $  62,423  $  59,465  $  56,091  $  47,886  $  44,759  
Total interest expense   5,217     4,735     4,896     4,873     4,734     4,275     3,251     2,739  
Net interest income   62,590     62,576     59,085     57,550     54,731     51,816     44,635     42,020  
Provision for credit losses   3,043     4,595     3,262     3,471     3,310     3,700     2,111     3,134  
Net interest income after provision for credit losses   59,547     57,981     55,823     54,079     51,421     48,116     42,524     38,886  
Noninterest income (before investment gains & extinguishment of debt)   5,666     6,462     6,039     6,233     6,770     5,298     4,761     3,809  
Gain on sale of investment securities   624     30     60     -      2,164     12     -      2  
Loss on early extinguishment of debt   -      -      -      -      (1,130)    -      -      -   
Total noninterest income   6,290     6,492     6,099     6,233     7,804     5,310     4,761     3,811  
Salaries and employee benefits   16,119     15,977     15,383     14,683     15,706     15,703     14,942     13,015  
Premises and equipment    3,826     3,970     3,974     4,072     4,010     3,747     3,374     3,107  
Marketing and advertising   774     566     762     735     685     578     544     415  
Merger expenses   -      2     2     26     111     3,239     885     576  
Other expenses   7,383     8,125     7,284     7,082     7,561     6,085     5,398     5,022  
Total noninterest expense   28,102     28,640     27,405     26,598     28,073     29,352     25,143     22,135  
Income before income tax expense   37,735     35,833     34,517     33,714     31,152     24,074     22,142     20,562  
Income tax expense   14,413     13,485     13,054     12,776     11,734     9,347     8,054     7,618  
Net income   23,322     22,348     21,463     20,938     19,418     14,727     14,088     12,944  
Preferred stock dividends    -      62     180     179     180     180     151     142  
Net income available to common shareholders$  23,322  $  22,286  $  21,283  $  20,759  $  19,238  $  14,547  $  13,937  $  12,802  
                 
                 
Per Share Data:                
Earnings per weighted average common share, basic$  0.70  $  0.67  $  0.64  $  0.62  $  0.62  $  0.51  $  0.54  $  0.49  
Earnings per weighted average common share, diluted $  0.68  $  0.65  $  0.63  $  0.61  $  0.61  $  0.49  $  0.52  $  0.48  
Weighted average common shares outstanding, basic  33,518,998    33,462,937   33,400,973   33,367,476   31,082,715   28,777,778   26,023,670   25,981,638  
Weighted average common shares outstanding, diluted  34,104,237   34,069,786   34,026,412   33,997,989   31,776,323   29,632,685   26,654,186    26,623,784  
Actual shares outstanding 33,581,599   33,467,893   33,405,510   33,394,563   33,303,467   30,139,396   26,022,307    25,985,659  
Book value per common share at period end $  22.71  $  22.07  $  21.38  $  20.76  $  20.11  $  18.21  $  14.83  $  14.25  
Tangible book value per common share at period end (1)$  19.48  $  18.83  $  18.10  $  17.46  $  16.82  $  14.56  $  14.71  $  14.12  
                 
Performance Ratios (annualized):                
Return on average assets 1.54%  1.50%  1.47%  1.51%  1.49%  1.21%  1.37%  1.35% 
Return on average common equity 12.39%  12.08%  11.95%  12.18%  13.24%  11.67%  14.52%  14.09% 
Net interest margin 4.31%  4.38%  4.23%  4.33%  4.41%  4.42%  4.45%  4.48% 
Efficiency ratio (2) 40.80%  41.47%  42.04%  41.70%  44.89%  51.38%  50.90%  48.30% 
                 
Other Ratios:                
Allowance for credit losses to total loans (3) 1.06%  1.05%  1.05%  1.07%  1.07%  1.07%  1.31%  1.33% 
Nonperforming loans to total loans (3) 0.43%  0.26%  0.30%  0.33%  0.44%  0.52%  0.86%  0.69% 
Allowance for credit losses to total nonperforming loans 249.03%  397.95%  347.82%  328.98%  244.12%  205.30%  152.25%  193.50% 
Nonperforming assets to total assets 0.42%  0.31%  0.41%  0.44%  0.58%  0.68%  0.92%  0.80% 
Net charge-offs (annualized) to average loans (3) 0.09%  0.18%  0.16%  0.21%  0.15%  0.26%  0.09%  0.20% 
Tier 1 capital (to average assets) 11.01%  10.90%  11.93%  12.03%  12.19%  10.69%  10.70%  10.89% 
Total capital (to risk weighted assets) 12.87%  12.75%  13.80%  13.75%  13.90%  12.97%  14.48%  12.71% 
Common equity tier 1 capital (to risk weighted assets) 10.83%  10.68%  10.44%  10.37%  10.37% n/a  n/a  n/a  
Tangible common equity ratio (1) 10.86%  10.56%  10.46%  10.33%  10.39%  8.54%  9.19%  9.38% 
                 
Average Balances (in thousands):                
Total assets$6,072,533  $5,907,023  $5,776,404  $5,562,220  $5,270,301  $4,844,409  $4,070,914  $3,853,441  
Total earning assets$ 5,844,915  $5,675,048  $5,544,835  $5,332,397  $5,039,428  $4,654,423  $3,977,859  $3,760,720  
Total loans$5,070,386  $4,859,391  $4,636,298  $4,499,871  $4,376,248  $3,993,020  $3,317,731  $3,141,976  
Total deposits$5,143,670  $4,952,282  $4,842,706  $4,655,234  $4,330,403  $4,025,900  $3,470,231  $ 3,328,380  
Total borrowings$  139,324  $  168,652  $  129,136  $  128,733  $  249,516  $  237,401  $  152,249  $  98,105  
Total shareholders' equity$  756,916  $  757,199  $  778,279  $  755,541  $  661,364  $  561,467  $  437,370  $  421,029  
                 
(1) Tangible common equity to tangible assets (the "tangible common equity ratio") and tangible book value per common share are non-GAAP financial measures derived from GAAP based amounts. The Company calculates the tangible common equity ratio by excluding the balance of intangible assets from common shareholders' equity and dividing by tangible assets. The Company calculates tangible book value per common share by dividing tangible common equity by common shares outstanding, as compared to book value per common share, which the Company calculates by dividing common shareholders' equity by common shares outstanding. The Company considers this information important to shareholders as tangible equity is a measure that is consistent with the calculation of capital for bank regulatory purposes, which excludes intangible assets from the calculation of risk based ratios and as such is useful for investors, regulators, management and others to evaluate capital adequacy and to compare against other financial institutions. 
(2) Computed by dividing noninterest expense by the sum of net interest income and noninterest income.  
(3) Excludes loans held for sale.                
                 


EAGLE BANCORP, INC. CONTACT: Michael T. Flynn 301.986.1800
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