04/21/2021 | Press release | Distributed by Public on 04/21/2021 14:34
BETHESDA, Md., April 21, 2021 (GLOBE NEWSWIRE) -- Eagle Bancorp, Inc. (the 'Company') (NASDAQ: EGBN), the parent company of EagleBank (the 'Bank'), today announced record net income of $43.5 million for the first quarter of 2021, as compared to $23.1 million net income for the first quarter of 2020, an 88% increase. Net income per basic and diluted common share for the first quarter of 2021 was $1.36 compared to $0.70 for the first quarter of 2020, a 94% increase. The increase in earnings is largely due to the first quarter of 2021 including a reversal of the provision for credit losses and significant gain on sale of residential mortgages, whereas the first quarter of 2020 included provisions for credit losses at the beginning of the COVID-19 pandemic, as well as, mark-to-market losses related to a hedge position on mortgage operations.
First Quarter 2021 Highlights
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1 A reconciliation of non-GAAP financial measures to the nearest non-GAAP measure is provided in the tables that accompany this document.
Susan G. Riel, President and Chief Executive Officer of Eagle Bancorp, Inc. commented, 'We ended the first quarter of 2021 with record net income, continued strengthening in asset quality and a high level of capital. Earnings included a reversal to the allowance for credit losses as our outlook on the economy has improved, and another large gain on sale of residential mortgages from our residential mortgage division, which continues to generate strong results. For the quarter, we generated net income of $43.5 million with an ROAA of 1.53%, ROACE of 14.05% and a ROATCE2 of 15.33%.'
'These earnings continue to demonstrate balanced financial performance including our ability to manage an efficient bank and we remain a leader among our peers with an efficiency ratio for the quarter of 40.7%. As an example of our expense management, during the quarter we relocated two branches with expiring leases to better locations nearby and consolidated two back-office locations, also with expiring leases, into a single new location, saving about $460,000 annually in rental expenses.'
'While loan demand remains challenged during the pandemic, our earnings continue to generate capital that we expect will enable us to hit the ground running when economic activity and business openings expand. We believe the Washington, D.C. area is one of the most resilient and strongest economies in the nation and we remain optimistic about the reopening of businesses, and the positive impact the government stimulus will have on the regional economy. At quarter end, our shareholders equity reached $1.26 billion and our total risk-based capital was 17.86%. This gives us the ability to originate loans for large commercial projects, as well as a lot of runway to grow the loan portfolio when economic conditions improve and more opportunities arise.'
'For our shareholders, at the end of the quarter our board increased the dividend to $0.25 per share, our first increase since the dividend was re-instituted in the second quarter of 2019. We also authorized a new stock repurchase plan in December 2020.'
'We once again thank all of our employees for their commitment and diligence in serving the needs of our clients and communities and following safe health practices. As we look toward summer with optimism, we remain focused on strong and balanced operating performance. We will continue to proactively manage any asset quality concerns while delivering best-in-class service to our customers. We will continue to exercise prudent oversight of expenses, while retaining an infrastructure that is competitive, supports our growth initiatives, and proactively enhances our risk management systems as we position ourselves for future growth.'
Income Statement
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2 A reconciliation of non-GAAP financial measures to the nearest non-GAAP measure is provided in the tables that accompany this document.
($ in thousands) | Three Months Ended | ||||||||
March 31, 2021 | March 31, 2020 | ||||||||
Net interest income (GAAP) | $ | 82,651 | $ | 79,744 | |||||
Non-interest income (GAAP) | 10,587 | 5,470 | |||||||
Non-interest expense (GAAP) | (37,987 | ) | (37,347 | ) | |||||
Pre-provision net revenue (non-GAAP) | $ | 55,251 | $ | 47,867 | |||||
Average Assets (GAAP) | $ | 11,517,836 | $ | 9,447,663 | |||||
PPNR to Average Assets (non-GAAP) | 1.95 | % | 2.04 | % | |||||
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3 A reconciliation of non-GAAP financial measures to the nearest non-GAAP measure is provided in the table below.
Balance Sheet
($ in thousands) | March 31, 2021 | December 31, 2020 | March 31, 2020 | |||||||||||
Total loans, excluding loans held for sale (GAAP) | $ | 7,526,689 | 7,760,212 | 7,840,873 | ||||||||||
Less: PPP loans | (565,018 | ) | (454,771 | ) | $ | - | ||||||||
Total loans, excluding loans held for sale and PPP loans (Non-GAAP) | $ | 6,961,671 | $ | 7,305,441 | $ | 7,840,873 | ||||||||
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4 A reconciliation of GAAP to non-GAAP financial measures is provided below.
5 A reconciliation of GAAP to non-GAAP financial measures is provided below.
($ in thousands) | March 31, 2021 | December 31, 2020 | March 31, 2020 | |||||||||||
Allowance for credit losses, adjusted | ||||||||||||||
Allowance for credit losses | $ | 102,070 | $ | 109,579 | $ | 96,336 | ||||||||
Total loans (GAAP) | $ | 7,526,689 | $ | 7,760,212 | $ | 7,840,873 | ||||||||
Less: PPP loans | (565,018 | ) | (454,771 | ) | - | |||||||||
Total loans excluding PPP loans (non-GAAP) | $ | 6,961,671 | $ | 7,305,441 | $ | 7,840,873 | ||||||||
Allowance for credit losses to total loans (GAAP) | 1.36 | % | 1.41 | % | 1.23 | % | ||||||||
Allowance for credit losses to total loans excluding PPP loans (non-GAAP) | 1.47 | % | 1.50 | % | 1.23 | % | ||||||||
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6 A reconciliation of non-GAAP financial measures to the nearest non-GAAP measure is provided in the tables that accompany this document.
For the Company | |||||||||||
March 31, 2021 | December 31, 2020 | March 31, 2020 | Well Capitalized Minimum | ||||||||
Regulatory Ratios | |||||||||||
Total Capital (to risk weighted assets) | 17.86 | % | 17.04 | % | 15.44 | % | 10.00 | % | |||
Tier 1 Capital (to risk weighted assets) | 14.42 | % | 13.49 | % | 12.14 | % | 8.00 | % | |||
Common Equity Tier 1 (to risk weighted assets) | 14.42 | % | 13.49 | % | 12.14 | % | 6.50 | % | |||
Tier 1 Capital (to average assets) | 10.28 | % | 10.31 | % | 11.33 | % | 5.00 | % | |||
Common Capital Ratios | |||||||||||
Common Equity Ratio | 11.33 | % | 11.16 | % | 11.64 | % | - | % | |||
Tangible Common Equity Ratio | 10.48 | % | 10.31 | % | 10.70 | % | - | % | |||
Additional Commentary
($ in thousands) | Three Months Ended | ||||||||||||||||||||
March 31, 2021 | March 31, 2020 | ||||||||||||||||||||
Average Balance | Interest |
Average Yield/Rate |
Average Balance | Interest |
Average Yield/Rate |
||||||||||||||||
Loan Yields, Adjusted | |||||||||||||||||||||
Loan yield (GAAP) | $ | 7,726,716 | $ | 88,499 | 4.65 | % | $ | 7,650,993 | $ | 96,401 | 5.07 | % | |||||||||
PPP Loan yield (non-GAAP) | 516,317 | 4,452 | 3.50 | % | - | - | - | % | |||||||||||||
Loans yield, excluding PPP loans (non-GAAP) | 7,210,399 | 84,047 | 4.73 | % | 7,650,993 | 96,401 | 5.07 | % | |||||||||||||
($ in thousands) | March 31, 2021 | |||||
Principal Balance | % of Total Loans | |||||
Industry | ||||||
Accommodation and Food Service | $ | 807,237 | 10.7 | % | ||
Retail Trade | 85,878 | 1.1 | % | |||
Commercial Real Estate exposure (not included above) | ||||||
Restaurant | 42,386 | 0.6 | % | |||
Hotel | 26,255 | 0.3 | % | |||
Retail | 374,863 | 5.0 | % | |||
Total | $ | 1,336,619 | 17.8 | % |
Additional financial information: The financial information that follows provides more detail on the Company's financial performance for the three months ended March 31, 2021 as compared to the three months ended March 31, 2020, as well as eight quarters of trend data. Persons wishing additional information should refer to the Company's annual report on Form 10-K for the year ended December 31, 2020, 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 first quarter 2021 financial results on Thursday, April 22, 2021 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 1139926, 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 6, 2021.
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, asset and loan growth and broader 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, 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, and nothing contained herein is meant to or should be considered and treated as earnings guidance of future quarters' performance projections. 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.
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7 A reconciliation of non-GAAP financial measures to the nearest non-GAAP measure is provided below.
Eagle Bancorp, Inc. | ||||||||
Consolidated Financial Highlights (Unaudited) | ||||||||
(dollars in thousands, except per share data) | ||||||||
Three Months Ended | ||||||||
March 31, 2021 | March 31, 2020 | |||||||
Income Statements: | ||||||||
Total interest income | $ | 94,194 | $ | 103,801 | ||||
Total interest expense | 11,543 | 24,057 | ||||||
Net interest income | 82,651 | 79,744 | ||||||
Provision for credit losses | (2,350 | ) | 14,310 | |||||
Provision for Unfunded Commitments | (442 | ) | 2,112 | |||||
Net interest income after provision for credit losses | 85,443 | 63,322 | ||||||
Noninterest income (before investment gain) | 10,366 | 4,648 | ||||||
Gain (loss) on sale of investment securities | 221 | 822 | ||||||
Total noninterest income | 10,587 | 5,470 | ||||||
Total noninterest expense | 37,987 | 37,347 | ||||||
Income before income tax expense | 58,043 | 31,445 | ||||||
Income tax expense | 14,574 | 8,322 | ||||||
Net income | $ | 43,469 | $ | 23,123 | ||||
Per Share Data: | ||||||||
Earnings per weighted average common share, basic | $ | 1.36 | $ | 0.70 | ||||
Earnings per weighted average common share, diluted | $ | 1.36 | $ | 0.70 | ||||
Weighted average common shares outstanding, basic | 31,869,655 | 32,850,112 | ||||||
Weighted average common shares outstanding, diluted | 31,922,940 | 32,875,508 | ||||||
Actual shares outstanding at period end | 31,960,379 | 32,197,258 | ||||||
Book value per common share at period end | $ | 39.45 | $ | 36.11 | ||||
Tangible book value per common share at period end (1) | $ | 36.16 | $ | 32.86 | ||||
Dividend per common share | $ | 0.25 | $ | 0.22 | ||||
Performance Ratios (annualized): | ||||||||
Return on average assets | 1.53 | % | 0.98 | % | ||||
Return on average common equity | 14.05 | % | 7.81 | % | ||||
Return on average tangible common equity | 15.33 | % | 8.56 | % | ||||
Net interest margin | 2.98 | % | 3.49 | % | ||||
Efficiency ratio (2) | 40.74 | % | 43.83 | % | ||||
Other Ratios: | ||||||||
Allowance for credit losses to total loans (3) | 1.36 | % | 1.23 | % | ||||
Allowance for credit losses to total nonperforming loans | 195.25 | % | 201.80 | % | ||||
Nonperforming loans to total loans (3) | 0.69 | % | 0.61 | % | ||||
Nonperforming assets to total assets | 0.51 | % | 0.56 | % | ||||
Net charge-offs (annualized) to average loans (3) | 0.27 | % | 0.12 | % | ||||
Common equity to total assets | 11.33 | % | 11.64 | % | ||||
Tier 1 capital (to average assets) | 10.28 | % | 11.33 | % | ||||
Total capital (to risk weighted assets) | 17.86 | % | 15.44 | % | ||||
Common equity tier 1 capital (to risk weighted assets) | 14.42 | % | 12.14 | % | ||||
Tangible common equity ratio (1) | 10.48 | % | 10.70 | % | ||||
Loan Balances - Period End (in thousands): | ||||||||
Commercial and Industrial | $ | 1,398,155 | $ | 1,773,478 | ||||
PPP loans | $ | 565,018 | $ | - | ||||
Commercial real estate - income producing | $ | 3,430,077 | $ | 3,827,024 | ||||
Commercial real estate - owner occupied | $ | 1,012,457 | $ | 971,634 | ||||
1-4 Family mortgage | $ | 71,209 | $ | 104,558 | ||||
Construction - commercial and residential | $ | 829,481 | $ | 969,166 | ||||
Construction - C&I (owner occupied) | $ | 152,240 | $ | 114,138 | ||||
Home equity | $ | 67,167 | $ | 78,228 | ||||
Other consumer | $ | 885 | $ | 2,647 | ||||
Average Balances (in thousands): | ||||||||
Total assets | $ | 11,517,837 | $ | 9,447,663 | ||||
Total earning assets | $ | 11,236,440 | $ | 9,176,174 | ||||
Total loans | $ | 7,726,716 | $ | 7,650,993 | ||||
Total deposits | $ | 9,601,249 | $ | 7,696,764 | ||||
Total borrowings | $ | 573,750 | $ | 485,948 | ||||
Total shareholders' equity | $ | 1,254,780 | $ | 1,191,180 |
(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 reconciliation of financial measures defined by GAAP with non-GAAP financial measures.
(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 | |||||||||
March 31, 2021 | March 31, 2020 | ||||||||
Common shareholders' equity | $ | 1,260,833 | $ | 1,162,777 | |||||
Less: Intangible assets | (105,179 | ) | (104,695 | ) | |||||
Tangible common equity | $ | 1,155,654 | $ | 1,058,082 | |||||
Book value per common share | $ | 39.45 | $ | 36.11 | |||||
Less: Intangible book value per common share | (3.29 | ) | (3.25 | ) | |||||
Tangible book value per common share | $ | 36.16 | $ | 32.86 | |||||
Total assets | $ | 11,127,864 | $ | 9,992,219 | |||||
Less: Intangible assets | (105,179 | ) | (104,695 | ) | |||||
Tangible assets | $ | 11,022,685 | $ | 9,887,524 | |||||
Tangible common equity ratio | 10.48 | % | 10.70 | % | |||||
Average common shareholders' equity | $ | 1,254,780 | $ | 1,191,180 | |||||
Less: Average intangible assets | (105,164 | ) | (104,697 | ) | |||||
Average tangible common equity | $ | 1,149,616 | $ | 1,086,483 | |||||
Net Income Available to Common Shareholders | $ | 43,469 | $ | 23,123 | |||||
Annualized Return on Average Tangible Common Equity | 15.33 | % | 8.56 | % |
Eagle Bancorp, Inc. | ||||||||||||||
Consolidated Balance Sheets (Unaudited) | ||||||||||||||
(dollars in thousands, except per share data) | ||||||||||||||
Assets | March 31, 2021 | December 31, 2020 | March 31, 2020 | |||||||||||
Cash and due from banks | $ | 9,112 | $ | 8,435 | $ | 7,177 | ||||||||
Federal funds sold | 25,785 | 28,200 | 28,277 | |||||||||||
Interest bearing deposits with banks and other short-term investments | 1,708,374 | 1,752,420 | 904,160 | |||||||||||
Investment securities available for sale (amortized cost of $1,365,139, $1,129,057, and $838,831, and allowance for credit losses of $78, $167, and $0, as of March 31, 2021, December 31, 2020 and March 31, 2020, respectively). | 1,369,107 | 1,151,083 | 858,916 | |||||||||||
Federal Reserve and Federal Home Loan Bank stock | 33,978 | 40,104 | 39,988 | |||||||||||
Loans held for sale | 142,196 | 88,205 | 60,036 | |||||||||||
Loans | 7,526,689 | 7,760,212 | 7,840,873 | |||||||||||
Less allowance for credit losses | (102,070 | ) | (109,579 | ) | (96,336 | ) | ||||||||
Loans, net | 7,424,619 | 7,650,633 | 7,744,537 | |||||||||||
Premises and equipment, net | 15,045 | 13,553 | 13,687 | |||||||||||
Operating lease right-of-use assets | 30,707 | 25,237 | 25,655 | |||||||||||
Deferred income taxes | 44,623 | 38,571 | 30,366 | |||||||||||
Bank owned life insurance | 77,119 | 76,729 | 76,139 | |||||||||||
Intangible assets, net | 105,179 | 105,114 | 104,695 | |||||||||||
Other real estate owned | 4,987 | 4,987 | 8,237 | |||||||||||
Other assets | 137,033 | 134,531 | 90,349 | |||||||||||
Total Assets | $ | 11,127,864 | $ | 11,117,802 | $ | 9,992,219 | ||||||||
Liabilities and Shareholders' Equity | ||||||||||||||
Deposits: | ||||||||||||||
Noninterest bearing demand | $ | 2,594,334 | $ | 2,809,334 | $ | 1,994,209 | ||||||||
Interest bearing transaction | 862,709 | 756,923 | 931,597 | |||||||||||
Savings and money market | 4,875,840 | 4,645,186 | 3,950,495 | |||||||||||
Time, $100,000 or more | 513,998 | 546,173 | 608,355 | |||||||||||
Other time | 351,963 | 431,587 | 656,912 | |||||||||||
Total deposits | 9,198,844 | 9,189,203 | 8,141,568 | |||||||||||
Customer repurchase agreements | 20,061 | 26,726 | 31,377 | |||||||||||
Other short-term borrowings | 300,000 | 300,000 | 300,000 | |||||||||||
Long-term borrowings | 218,175 | 268,077 | 267,784 | |||||||||||
Operating lease liabilities | 33,338 | 28,022 | 28,242 | |||||||||||
Reserve for unfunded commitments | 5,056 | 5,498 | 6,230 | |||||||||||
Other liabilities | 91,557 | 59,384 | 54,240 | |||||||||||
Total liabilities | 9,867,031 | 9,876,910 | 8,829,441 | |||||||||||
Shareholders' Equity | ||||||||||||||
Common stock, par value $.01 per share; shares authorized 100,000,000, shares issued and outstanding 31,960,379, 31,779,663, and 32,197,258, respectively | 316 | 315 | 320 | |||||||||||
Additional paid in capital | 428,917 | 427,016 | 439,321 | |||||||||||
Retained earnings | 833,598 | 798,061 | 710,072 | |||||||||||
Accumulated other comprehensive income (loss) | (1,998 | ) | 15,500 | 13,065 | ||||||||||
Total Shareholders' Equity | 1,260,833 | 1,240,892 | 1,162,778 | |||||||||||
Total Liabilities and Shareholders' Equity | $ | 11,127,864 | $ | 11,117,802 | $ | 9,992,219 |
Eagle Bancorp, Inc. | ||||||||
Consolidated Statements of Income (Unaudited) | ||||||||
(dollars in thousands, except per share data) | ||||||||
Three Months Ended | ||||||||
Interest Income | March 31, 2021 | March 31, 2020 | ||||||
Interest and fees on loans | $ | 89,238 | $ | 96,755 | ||||
Interest and dividends on investment securities | 4,395 | 5,427 | ||||||
Interest on balances with other banks and short-term investments | 553 | 1,559 | ||||||
Interest on federal funds sold | 8 | 60 | ||||||
Total interest income | 94,194 | 103,801 | ||||||
Interest Expense | ||||||||
Interest on deposits | 7,899 | 20,546 | ||||||
Interest on customer repurchase agreements | 11 | 87 | ||||||
Interest on other short-term borrowings | 495 | 357 | ||||||
Interest on long-term borrowings | 3,138 | 3,067 | ||||||
Total interest expense | 11,543 | 24,057 | ||||||
Net Interest Income | 82,651 | 79,744 | ||||||
Provision for Credit Losses | (2,350 | ) | 14,310 | |||||
Provision for Unfunded Commitments | (442 | ) | 2,112 | |||||
Net Interest Income After Provision For Credit Losses | 85,443 | 63,322 | ||||||
Noninterest Income | ||||||||
Service charges on deposits | 977 | 1,425 | ||||||
Gain on sale of loans | 5,178 | 944 | ||||||
Gain (loss) on sale of investment securities | 221 | 822 | ||||||
Increase in the cash surrender value of bank owned life insurance | 389 | 414 | ||||||
Other income | 3,822 | 1,865 | ||||||
Total noninterest income | 10,587 | 5,470 | ||||||
Noninterest Expense | ||||||||
Salaries and employee benefits | 21,769 | 17,797 | ||||||
Premises and equipment expenses | 3,618 | 3,821 | ||||||
Marketing and advertising | 886 | 1,078 | ||||||
Data processing | 2,814 | 2,496 | ||||||
Legal, accounting and professional fees | 2,999 | 6,988 | ||||||
FDIC insurance | 2,428 | 1,424 | ||||||
Other expenses | 3,473 | 3,743 | ||||||
Total noninterest expense | 37,987 | 37,347 | ||||||
Income Before Income Tax Expense | 58,043 | 31,445 | ||||||
Income Tax Expense | 14,574 | 8,322 | ||||||
Net Income | $ | 43,469 | $ | 23,123 | ||||
Earnings Per Common Share | ||||||||
Basic | $ | 1.36 | $ | 0.70 | ||||
Diluted | $ | 1.36 | $ | 0.70 |
Eagle Bancorp, Inc. | |||||||||||||||||||||
Consolidated Average Balances, Interest Yields And Rates (Unaudited) | |||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||
Three Months Ended | |||||||||||||||||||||
March 31, 2021 | March 31, 2020 | ||||||||||||||||||||
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 | $ | 2,103,679 | $ | 553 | 0.11 | % | $ | 588,148 | $ | 1,559 | 1.07 | % | |||||||||
Loans held for sale (1) | 104,784 | 739 | 2.82 | % | 38,749 | 354 | 3.65 | % | |||||||||||||
Loans (1) (2) | 7,726,716 | 88,499 | 4.65 | % | 7,650,993 | 96,401 | 5.07 | % | |||||||||||||
Investment securities available for sale (2) | 1,268,952 | 4,395 | 1.40 | % | 867,666 | 5,427 | 2.52 | % | |||||||||||||
Federal funds sold | 32,309 | 8 | 0.10 | % | 30,618 | 60 | 0.79 | % | |||||||||||||
Total interest earning assets | 11,236,440 | 94,194 | 3.40 | % | 9,176,174 | 103,801 | 4.55 | % | |||||||||||||
Total noninterest earning assets | 390,775 | 356,317 | |||||||||||||||||||
Less: allowance for credit losses | 109,379 | 84,828 | |||||||||||||||||||
Total noninterest earning assets | 281,396 | 271,489 | |||||||||||||||||||
TOTAL ASSETS | $ | 11,517,836 | $ | 9,447,663 | |||||||||||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||||||||||||||||
Interest bearing liabilities: | |||||||||||||||||||||
Interest bearing transaction | $ | 771,321 | $ | 427 | 0.22 | % | $ | 805,134 | $ | 1,666 | 0.83 | % | |||||||||
Savings and money market | 4,839,348 | 3,970 | 0.33 | % | 3,337,958 | 11,082 | 1.34 | % | |||||||||||||
Time deposits | 921,208 | 3,503 | 1.54 | % | 1,287,310 | 7,798 | 2.44 | % | |||||||||||||
Total interest bearing deposits | 6,531,877 | 7,900 | 0.49 | % | 5,430,402 | 20,546 | 1.52 | % | |||||||||||||
Customer repurchase agreements | 20,615 | 11 | 0.22 | % | 30,008 | 87 | 1.17 | % | |||||||||||||
Other short-term borrowings | 300,003 | 495 | 0.66 | % | 220,058 | 357 | 0.64 | % | |||||||||||||
Long-term borrowings | 253,132 | 3,137 | 4.96 | % | 235,882 | 3,067 | 5.14 | % | |||||||||||||
Total interest bearing liabilities | 7,105,627 | 11,543 | 0.66 | % | 5,916,350 | 24,057 | 1.64 | % | |||||||||||||
Noninterest bearing liabilities: | |||||||||||||||||||||
Noninterest bearing demand | 3,069,372 | 2,266,362 | |||||||||||||||||||
Other liabilities | 88,057 | 73,771 | |||||||||||||||||||
Total noninterest bearing liabilities | 3,157,429 | 2,340,133 | |||||||||||||||||||
Shareholders' Equity | 1,254,780 | 1,191,180 | |||||||||||||||||||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ | 11,517,836 | $ | 9,447,663 | |||||||||||||||||
Net interest income | $ | 82,651 | $ | 79,744 | |||||||||||||||||
Net interest spread | 2.74 | % | 2.91 | % | |||||||||||||||||
Net interest margin | 2.98 | % | 3.49 | % | |||||||||||||||||
Cost of funds | 0.42 | % | 1.06 | % |
(1) Loans placed on nonaccrual status are included in average balances. Net loan fees and late charges included in interest income on loans totaled $7.8 million and $4.3 million for the three months ended March 31, 2021 and March 31, 2020, 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 | ||||||||||||||||||||||||||||||||||
March 31, | December 31, | September 30, | June 30, | March 31, | December 31, | September 30, | June 30, | |||||||||||||||||||||||||||
Income Statements: | 2021 | 2020 | 2020 | 2020 | 2020 | 2019 | 2019 | 2019 | ||||||||||||||||||||||||||
Total interest income | $ | 94,194 | $ | 94,680 | $ | 93,833 | $ | 97,672 | $ | 103,801 | $ | 107,183 | $ | 109,034 | $ | 108,279 | ||||||||||||||||||
Total interest expense | 11,543 | 13,262 | 14,795 | 16,309 | 24,057 | 26,473 | 28,045 | 26,950 | ||||||||||||||||||||||||||
Net interest income | 82,651 | 81,418 | 79,038 | 81,363 | 79,744 | 80,710 | 80,989 | 81,329 | ||||||||||||||||||||||||||
Provision for credit losses | (2,350 | ) | 4,917 | 6,607 | 19,737 | 14,310 | 2,945 | 3,186 | 3,600 | |||||||||||||||||||||||||
Provision for unfunded commitments | (442 | ) | 406 | (2,078 | ) | 940 | 2,112 | - | - | - | ||||||||||||||||||||||||
Net interest income after provision for credit losses | 85,443 | 76,095 | 74,509 | 60,686 | 63,322 | 77,765 | 77,803 | 77,729 | ||||||||||||||||||||||||||
Noninterest income (before investment gain (loss)) | 10,366 | 9,722 | 17,729 | 11,782 | 4,648 | 6,845 | 6,161 | 5,797 | ||||||||||||||||||||||||||
Gain (loss) on sale of investment securities | 221 | 165 | 115 | 713 | 822 | (111 | ) | 153 | 563 | |||||||||||||||||||||||||
Total noninterest income | 10,587 | 9,887 | 17,844 | 12,495 | 5,470 | 6,734 | 6,314 | 6,360 | ||||||||||||||||||||||||||
Salaries and employee benefits | 21,769 | 20,151 | 19,388 | 17,104 | 17,797 | 19,360 | 19,095 | 17,743 | ||||||||||||||||||||||||||
Premises and equipment | 3,618 | 3,301 | 5,125 | 3,468 | 3,821 | 3,380 | 3,503 | 3,652 | ||||||||||||||||||||||||||
Marketing and advertising | 886 | 1,161 | 928 | 1,111 | 1,078 | 1,200 | 1,210 | 1,268 | ||||||||||||||||||||||||||
Other expenses | 11,714 | 10,396 | 11,474 | 13,209 | 14,651 | 10,786 | 9,665 | 10,696 | ||||||||||||||||||||||||||
Total noninterest expense | 37,987 | 35,009 | 36,915 | 34,892 | 37,347 | 34,726 | 33,473 | 33,359 | ||||||||||||||||||||||||||
Income before income tax expense | 58,043 | 50,973 | 55,438 | 38,289 | 31,445 | 49,773 | 50,644 | 50,730 | ||||||||||||||||||||||||||
Income tax expense | 14,574 | 12,081 | 14,092 | 9,433 | 8,322 | 14,317 | 14,149 | 13,487 | ||||||||||||||||||||||||||
Net income | 43,469 | 38,892 | 41,346 | 28,856 | 23,123 | 35,456 | 36,495 | 37,243 | ||||||||||||||||||||||||||
Per Share Data: | ||||||||||||||||||||||||||||||||||
Earnings per weighted average common share, basic | $ | 1.36 | $ | 1.21 | $ | 1.28 | $ | 0.90 | $ | 0.70 | $ | 1.06 | $ | 1.07 | $ | 1.08 | ||||||||||||||||||
Earnings per weighted average common share, diluted | $ | 1.36 | $ | 1.21 | $ | 1.28 | $ | 0.90 | $ | 0.70 | $ | 1.06 | $ | 1.07 | $ | 1.08 | ||||||||||||||||||
Weighted average common shares outstanding, basic | 31,869,655 | 32,037,099 | 32,229,322 | 32,224,695 | 32,850,112 | 33,468,572 | 34,232,890 | 34,540,152 | ||||||||||||||||||||||||||
Weighted average common shares outstanding, diluted | 31,922,940 | 32,075,175 | 32,250,885 | 32,240,825 | 32,875,508 | 33,498,681 | 34,255,889 | 34,565,253 | ||||||||||||||||||||||||||
Actual shares outstanding at period end | 31,960,379 | 31,779,663 | 32,228,636 | 32,224,756 | 32,197,258 | 33,241,496 | 33,720,522 | 34,539,853 | ||||||||||||||||||||||||||
Book value per common share at period end | $ | 39.45 | $ | 39.05 | $ | 37.96 | $ | 36.86 | $ | 36.11 | $ | 35.82 | $ | 35.13 | $ | 34.30 | ||||||||||||||||||
Tangible book value per common share at period end (1) | $ | 36.16 | $ | 35.74 | $ | 34.70 | $ | 33.62 | $ | 32.86 | $ | 32.67 | $ | 32.02 | $ | 31.25 | ||||||||||||||||||
Dividend per common share | $ | 0.25 | $ | 0.22 | $ | 0.22 | $ | 0.22 | $ | 0.22 | $ | 0.22 | $ | 0.22 | $ | 0.22 | ||||||||||||||||||
Performance Ratios (annualized): | ||||||||||||||||||||||||||||||||||
Return on average assets | 1.53 | % | 1.39 | % | 1.57 | % | 1.12 | % | 0.98 | % | 1.49 | % | 1.62 | % | 1.74 | % | ||||||||||||||||||
Return on average common equity | 14.05 | % | 12.53 | % | 14.46 | % | 9.84 | % | 7.81 | % | 11.78 | % | 12.09 | % | 12.81 | % | ||||||||||||||||||
Return on average tangible common equity | 15.33 | % | 13.69 | % | 15.93 | % | 10.80 | % | 8.56 | % | 12.91 | % | 13.25 | % | 14.08 | % | ||||||||||||||||||
Net interest margin | 2.98 | % | 2.98 | % | 3.08 | % | 3.26 | % | 3.49 | % | 3.49 | % | 3.72 | % | 3.91 | % | ||||||||||||||||||
Efficiency ratio (2) | 40.74 | % | 38.34 | % | 38.10 | % | 37.18 | % | 43.83 | % | 39.71 | % | 38.34 | % | 38.04 | % | ||||||||||||||||||
Other Ratios: | ||||||||||||||||||||||||||||||||||
Allowance for credit losses to total loans (3) | 1.36 | % | 1.41 | % | 1.40 | % | 1.36 | % | 1.23 | % | 0.98 | % | 0.98 | % | 0.98 | % | ||||||||||||||||||
Allowance for credit losses to total nonperforming loans | 195.25 | % | 179.80 | % | 189.83 | % | 184.52 | % | 201.80 | % | 151.16 | % | 127.87 | % | 192.70 | % | ||||||||||||||||||
Nonperforming loans to total loans (3) | 0.69 | % | 0.79 | % | 0.74 | % | 0.74 | % | 0.61 | % | 0.65 | % | 0.76 | % | 0.51 | % | ||||||||||||||||||
Nonperforming assets to total assets | 0.51 | % | 0.59 | % | 0.62 | % | 0.69 | % | 0.56 | % | 0.56 | % | 0.66 | % | 0.45 | % | ||||||||||||||||||
Net charge-offs (annualized) to average loans (3) | 0.27 | % | 0.28 | % | 0.26 | % | 0.36 | % | 0.12 | % | 0.16 | % | 0.08 | % | 0.08 | % | ||||||||||||||||||
Tier 1 capital (to average assets) | 10.28 | % | 10.31 | % | 10.82 | % | 10.63 | % | 11.33 | % | 11.62 | % | 12.19 | % | 12.66 | % | ||||||||||||||||||
Total capital (to risk weighted assets) | 17.86 | % | 17.04 | % | 16.72 | % | 16.33 | % | 15.44 | % | 16.20 | % | 16.08 | % | 16.36 | % | ||||||||||||||||||
Common equity tier 1 capital (to risk weighted assets) | 14.42 | % | 13.49 | % | 13.19 | % | 12.79 | % | 12.14 | % | 12.87 | % | 12.76 | % | 12.87 | % | ||||||||||||||||||
Tangible common equity ratio (1) | 10.48 | % | 10.31 | % | 11.18 | % | 11.17 | % | 10.70 | % | 12.22 | % | 12.13 | % | 12.60 | % | ||||||||||||||||||
Average Balances (in thousands): | ||||||||||||||||||||||||||||||||||
Total assets | $ | 11,517,836 | $ | 11,141,826 | $ | 10,473,595 | $ | 10,326,709 | $ | 9,447,663 | $ | 9,426,220 | $ | 8,923,406 | $ | 8,595,523 | ||||||||||||||||||
Total earning assets | $ | 11,236,440 | $ | 10,872,259 | $ | 10,205,939 | $ | 10,056,500 | $ | 9,176,174 | $ | 9,160,034 | $ | 8,655,196 | $ | 8,328,323 | ||||||||||||||||||
Total loans | $ | 7,726,716 | $ | 7,896,324 | $ | 7,910,260 | $ | 8,015,751 | $ | 7,650,993 | $ | 7,532,179 | $ | 7,492,816 | $ | 7,260,899 | ||||||||||||||||||
Total deposits | $ | 9,601,249 | $ | 9,227,733 | $ | 8,591,912 | $ | 8,482,718 | $ | 7,696,764 | $ | 7,716,973 | $ | 7,319,314 | $ | 6,893,981 | ||||||||||||||||||
Total borrowings | $ | 573,750 | $ | 596,307 | $ | 596,472 | $ | 598,463 | $ | 485,948 | $ | 449,432 | $ | 345,464 | $ | 470,214 | ||||||||||||||||||
Total shareholders' equity | $ | 1,254,780 | $ | 1,235,174 | $ | 1,211,145 | $ | 1,179,452 | $ | 1,191,180 | $ | 1,194,337 | $ | 1,197,513 | $ | 1,166,487 |
(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:
David G. Danielson
240.552.9534