Eagle Bancorp, Inc. Announces $2.1 Million 3rd Quarter Net Income Available to Common Shareholders and a 20% Decline in Nonperforming Assets in the 3rd Quarter
- Press Release
- Source: Eagle Bancorp, Inc.
- On 5:00 am EDT, Thursday October 22, 2009
BETHESDA, Md., Oct. 22, 2009 (GLOBE NEWSWIRE) -- Eagle Bancorp, Inc. (the "Company") (Nasdaq:EGBN - News), the parent company of EagleBank, today announced net income of $2.7 million for the quarter ended September 30, 2009, a 21% increase over the $2.3 million for the quarter ended September 30, 2008. Net income available to common shareholders was $2.1 million ($0.16 per basic common share and $0.15 per diluted common share) for the three months ended September 30, 2009, compared to $2.3 million ($0.20 per basic common share and $0.19 per diluted common share) for the three months ended September 30, 2008, a 5% decrease.
Related Quotes
| Symbol | Price | Change |
|---|---|---|
| EGBN | 9.18 | -0.63 |
For the nine months ended September 30, 2009, the Company's net income was $7.5 million, a 30% increase over the $5.8 million for the nine months ended September 30, 2008. Net income available to common shareholders was $5.7 million ($0.44 per basic common share and $0.43 per diluted common share), as compared to $5.8 million ($0.53 per basic common share and $0.52 per diluted common share) for the same period in 2008, a 1% decrease.
"After completing a very successful offering of $55 million of common stock during the quarter, to support continued growth, we are very pleased to report our results for the third quarter of 2009. These results reflect earnings growth, continued deposit growth and continued declines in the level of nonperforming assets," noted Ronald D. Paul, Chairman, President and Chief Executive Officer of Eagle Bancorp, Inc. "At a time of continuing stress in our financial markets and in the general economy, Eagle Bancorp continues to perform well in many aspects," added Mr. Paul. "EagleBank has remained diligent in meeting the credit needs of its clients throughout its market area, as reflected by the $147 million, or 13%, loan growth over the past twelve months. Over the same time period, total deposits increased $195 million, or 17%, from core deposit growth. The continued growth in loans and deposits is a clear sign that the integration of Eagle Bancorp and Fidelity & Trust Financial Corporation ("Fidelity") and its subsidiary Fidelity & Trust Bank has been successful and that we have been able to maintain the high standard of banking that our new and existing customers deserve."
The continued growth in loans, average deposits, and other funding sources were the major drivers of the increase in net interest income for the three and nine months ended September 30, 2009, as compared to the three and nine month periods ended September 30, 2008. Both lending and deposit activities showed growth for the three and nine months ended September 30, 2009 as compared to the same periods in 2008. Average loans increased 43% and 61% for the three and nine months ended September 30, 2009, respectively. Average deposits increased 53% and 65% for the three and nine months ended September 30, 2009, respectively. Both periods gains were due in part to the acquisition of Fidelity, completed as of August 31, 2008.
At September 30, 2009, total assets were $1.7 billion compared to $1.5 billion at September 30, 2008, a 15% increase. Total deposits amounted to $1.3 billion, at September 30, 2009, a 17% increase over deposits of $1.1 billion at September 30, 2008, while total loans increased to $1.3 billion at September 30, 2009, from $1.2 billion at September 30, 2008, a 13% increase. Total borrowed funds, which include customer repurchase agreements, decreased to $138.6 million at September 30, 2009 from $195.4 million at September 30, 2008, a 29% decrease, as substantial growth in core deposits was used to pay-down alternative funding sources.
Mr. Paul added, "In spite of uncertainty in the financial markets and a difficult interest rate environment the Company maintained a strong net interest margin for the third quarter of 2009 of 3.77%, which was slightly lower than the net interest margin in the second quarter of 2009 of 3.91%. The slightly lower margin in the third quarter was due to higher average liquidity during the quarter ended September 30, 2009 as compared to the quarter ended June 30, 2009." The higher average liquidity is reflected in higher average federal funds sold as both the average and quarterly growth in deposits in the third quarter of 2009 exceeded loan growth. Loan growth amounted to $4 million in the third quarter, as compared to $84 million of deposit growth. The slower loan growth is attributable to both seasonality and to anticipated loan fundings in the third quarter which carried into the fourth quarter of 2009. Based on the current amount of loan commitments, fourth quarter loan growth appears to be strong. The significant increase in deposits in the third quarter is primarily attributable to a marketing campaign for money market accounts.
At September 30, 2009, the Company's level of nonperforming assets of $27.4 million, representing 1.63% of total assets, was lower than the $34.1 million of nonperforming assets or 2.14% of total assets, at June 30, 2009. At December 31, 2008, nonperforming assets were $26.4 million, 1.76% of total assets. Management remains attentive to early signs of deterioration in borrowers' financial conditions and to taking the appropriate action 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 loan losses at 1.51% of total loans at September 30, 2009 is adequate to absorb potential credit losses in the loan portfolio at that date. Included in nonperforming assets, at September 30, 2009, the Company held $4.6 million of Other Real Estate Owned ("OREO") as compared to $909 thousand at December 31, 2008 and $65 thousand at September 30, 2008.
Analysis of the three months ended September 30, 2009 versus 2008
For the three months ended September 30, 2009, the Company reported an annualized return on average assets of 0.67% as compared to 0.82% for the three months ended September 30, 2008. The annualized return on average common equity for the most recent quarter was 7.62%, as compared to 9.97% for the three months ended September 30, 2008. Declines in these ratios were due primarily to declines in the net interest margin, which factor is affecting all financial institutions, and to substantially higher provisions for loan losses.
Net interest income increased 38% for the three months ended September 30, 2009 over 2008, as the effect of balance sheet growth was partially offset by a 34 basis points decline in the net interest margin over the past twelve months. For the three months ended September 30, 2009, the net interest margin was 3.77% as compared to 4.11% for the three months ended September 30, 2008. The Company's net interest margin for the third quarter of 2009 declined by 14 basis points to 3.77% from 3.91% for the second quarter of 2009, due to slower loan growth and higher level of average balance sheet liquidity in the third quarter of 2009 as compared to the second quarter of 2009. Additionally, the $12.15 million of subordinated notes issued on August 28, 2008 represent an additional category of interest expense for the third quarter of 2009 which only existed in the last month of the third quarter of 2008. The Company's net interest margin remains favorable to peer banking companies.
The provision for credit losses was $1.9 million for the three months ended September 30, 2009 as compared to $995 thousand for the three months ended September 30, 2008. At September 30, 2009, the allowance for credit losses represented 1.51% of loans outstanding, as compared to 1.45% at December 31, 2008 and 1.46% at September 30, 2008. The higher provisioning and higher allowance percentages in the third quarter of 2009 as compared to the third quarter of 2008 are primarily attributable to higher levels of net credit losses and to risk migration within the loan portfolio due to assessments of general weakness in current economic conditions in the third quarter of 2009. Net credit losses represented 0.48% of average loans in the third quarter of 2009, as compared to 0.27% of average loans in the third quarter of 2008.
At September 30, 2009, the allowance for credit losses represented 88% of nonperforming loans as compared to 72% at December 31, 2008 and 82% at September 30, 2008. The higher coverage ratio at September 30, 2009 is due to the decline in nonperforming loans over the past two quarters. At September 30, 2009, approximately $13.1 million of nonperforming loans represent impaired loans acquired from Fidelity (58% of nonperforming loans) which in accordance with generally accepted accounting principles, are carried at fair value, without any allowance attributable to pre-acquisition deterioration. Adjusting for these impaired loans carried at fair value, the pro-forma coverage ratio of the allowance to nonperforming loans is 92%.
For the three months ended September 30, 2009, the Company recorded net charge-offs of $1.6 million as compared to $540 thousand of net charge-offs for the three months ended September 30, 2008. Net charge-offs in the third quarter of 2009 were attributable to charge-offs in the unguaranteed portion of SBA loans ($107 thousand), commercial and industrial loans ($631 thousand), consumer loans ($258 thousand), mortgage loans ($391 thousand), and commercial real estate investment property loans ($186 thousand), and owner occupied commercial real estate loans ($6 thousand).
The ratio of nonperforming loans to total loans declined significantly to 1.73% of total loans at September 30, 2009 as compared to 2.36% of total loans at June 30, 2009. Total nonperforming loans were $22.8 million at September 30, 2009 as compared to $31.0 million at June 30, 2009, a decline of $8.2 million. The ratio of nonperforming loans to total loans at September 30, 2009 of 1.73% as compared to 1.79% of total loans at September 30, 2008, due to a small increase in nonperforming loans of $1.8 million year over year offset by a larger loan portfolio at September 30, 2009.
Noninterest income for the three months ended September 30, 2009 increased to $1.5 million from $1.2 million for the three months ended September 30, 2008, a 24% increase. This increase was due primarily to higher service charges on deposit accounts of $195 thousand, and to higher gains realized on the sale of residential and SBA loans of $165 thousand.
Noninterest expenses were $10.3 million for the three months ended September 30, 2009, as compared to $7.6 million for the three months ended September 30, 2008, a 36% increase. The Fidelity acquisition increased the size of the organization resulting in higher staff levels and related personnel costs of $956 thousand, increased occupancy costs of $418 thousand, and higher data processing of $247 thousand. In addition, higher costs were incurred for marketing and advertising of $103 thousand, legal, accounting and professional fees of $416 thousand, and FDIC insurance of $398 thousand. Other expenses increased $172 thousand primarily due to $37 thousand in OREO expenses, $33 thousand in record management and storage costs, $45 thousand in amortization of core deposits, and $57 thousand in general and administrative costs. The efficiency ratio, which measures the ratio of noninterest expense to total revenue, was 62.29% for the third quarter of 2009, as compared to 62.51% for the third quarter of 2008.
Analysis of the nine months ended September 30, 2009 versus 2008
For the nine months ended September 30, 2009, the Company reported an annualized return on average assets of 0.64% as compared to 0.81% for the first nine months of 2008, while the annualized return on average common equity was 7.02% in 2009, as compared to 8.95% for the same nine month period in 2008. Declines in these ratios were due primarily to declines in the net interest margin, and to substantially higher provisions for loan losses.
For the first nine months of 2009, net interest income increased 49% over the same period for 2008. Average loans increased 61% and average deposits increased by 65%. Both periods gains were due in part to the acquisition of Fidelity completed August 31, 2008. The net interest margin was 3.81% for the first nine months in 2009 as compared to 4.20% for the first nine months in 2008, as the effects of a steep decline in market interest rates impacted the Company.
The provision for credit losses was $5.1 million for the first nine months of 2009 as compared to $2.5 million in 2008. The higher provisioning in the first nine months of 2009 as compared to 2008 is attributable to higher net charge-offs in 2009, risk migration within the portfolio and increased reserves for problem loans.
For the nine months ended September 30, 2009 net charge-offs totaled $3.6 million (0.37% of average loans) versus $958 thousand (0.16% of average loans) for the nine months ended September 30, 2008. Net charge-offs in the nine months ended September 30, 2009 were attributable to charge-offs in the unguaranteed portion of SBA loans ($302 thousand), commercial and industrial loans ($2.1 million), consumer loans ($380 thousand), mortgage loans ($391 thousand), and commercial real estate investment property loans ($373 thousand) and owner occupied commercial real estate loans ($38 thousand).
Noninterest income for the first nine months of 2009 was $6.0 million compared to $3.1 million in the first nine months of 2008, an increase of 94%. This increase was due primarily to higher service charges of $889 thousand resulting primarily from increased numbers of deposit accounts, higher gains realized on the sale of residential and SBA loans of $544 thousand, and gains realized on the investment securities portfolio of $1.5 million. Investment gains were the result of asset/liability management decisions in the second quarter of 2009 to reduce call risk in the portfolio of U.S. Agency securities, to reduce potential extension risk in longer term U.S. Agency mortgage backed securities and to better position the investment portfolio for potentially higher interest rates over future years.
Noninterest expenses were $32.1 million for the first nine months of 2009, as compared to $20.3 million for 2008, a 58% increase. The primary reason for this increase was the Fidelity acquisition which increased the size of the organization resulting in higher staff levels and related personnel costs of $4.0 million, increased occupancy costs of $1.9 million, and data processing of $627 thousand. In addition, higher costs were incurred for marketing and advertising of $465 thousand, legal, accounting and professional fees of $1.4 million, and FDIC insurance fees of $2.1 million which includes the special FDIC assessment of approximately $723 thousand recorded in the second quarter of 2009 and increased deposit insurance rates beginning in the first quarter of 2009. Other expenses increased $1.3 million primarily due to $199 thousand in OREO expenses, $224 thousand for a director fee agreement termination payment, $123 thousand in amortization of core deposit intangibles, $102 thousand in record management and storage costs, $79 thousand in insurance expense and $573 thousand in general and administrative costs due to the growth of the organization subsequent to the Fidelity acquisition. For the nine months ended September 30, 2009, the efficiency ratio was 65.84% as compared to 63.74% for the nine months ended September 30, 2008.
The Company and EagleBank were well capitalized at September 30, 2009. On August 15, 2009, the Company paid the quarterly dividend payment of $478 thousand on the $38.2 million of preferred stock Series A, issued in December 2008 to the U.S. Treasury under the Capital Purchase Plan (commonly referred to as TARP). On September 21, 2009, the Company sold 6,731,640 shares of its common stock at $8.20 per share, including 878,040 shares subject to the underwriter's over-allotment option. As a result of the capital raise, we expect to receive approval from the U.S. Treasury to reduce by 50% the number of shares of common stock subject to the warrant issued to the Treasury. The additional capital substantially improves already healthy capital ratios. At September 30, 2009, Eagle Bancorp had a total risk based capital ratio of 15.57%, a Tier 1 risk based capital ratio of 13.65%, and a tangible common equity capital ratio of 9.56%.
The financial information which follows on the following pages provides more detail on the Company's performance for the nine and three months ended September 30, 2009 as compared to the nine and three months ended September 30, 2008, 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, 2008 as 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 conducts full service commercial banking through thirteen offices, located in Montgomery County, Maryland, Washington, D.C. and Fairfax County, Virginia. A new office in Potomac, Maryland is planned to open in the fourth quarter of 2009. The Company focuses on building relationships with businesses, professionals and individuals in its marketplace.
The Eagle Bancorp, Inc. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=6101
Conference Call: Eagle Bancorp will host a conference call to discuss the third quarter financial results on Thursday October 22, 2009 at 10:00 a.m. eastern time. The public is invited to listen to and participate in this conference call by dialing 888-215-6982, or by accessing the call on the Company's website, www.eaglebankcorp.com. A replay of the conference call will be available through the Company's website through November 5, 2009.
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, the Company's ability to successfully integrate the operations of Fidelity 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, 2008 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.
Financial Highlights
(in thousands,
except per
share data) Nine Months Ended Three Months Ended
September 30, September 30,
------------------------ ------------------------
Income 2009 2008 2009 2008
Statements: (Unaudited) (Unaudited) (Unaudited) (Unaudited)
----------
Total interest
income $ 61,925 $ 44,753 $ 21,426 $ 16,744
Total interest
expense 19,124 15,996 6,408 5,829
----------- ----------- ----------- -----------
Net interest
income 42,801 28,757 15,018 10,915
Provision for
credit losses 5,141 2,529 1,857 995
----------- ----------- ----------- -----------
Net interest
income after
provision for
credit losses 37,660 26,228 13,161 9,920
----------- ----------- ----------- -----------
Noninterest
income (before
investment
gains) 4,484 3,050 1,486 1,150
Investment
gains 1,537 55 -- 45
----------- ----------- ----------- -----------
Total noninterest
income 6,021 3,105 1,486 1,195
----------- ----------- ----------- -----------
Total noninterest
expense 32,146 20,310 10,280 7,570
----------- ----------- ----------- -----------
Income before
income tax
expense 11,535 9,023 4,367 3,545
Income tax expense 4,067 3,256 1,625 1,284
----------- ----------- ----------- -----------
Net income 7,468 5,767 2,742 2,261
Preferred stock
dividends and
discount
accretion 1,767 -- 595 --
----------- ----------- ----------- -----------
Net Income
Available to
Common
Shareholders $ 5,701 $ 5,767 $ 2,147 $ 2,261
=========== =========== =========== ===========
Per Share Data (1):
------------------
Earnings per
weighted average
common share,
basic $ 0.44 $ 0.53 $ 0.16 $ 0.20
Earnings per
weighted average
common share,
diluted $ 0.43 $ 0.52 $ 0.15 $ 0.19
Weighted average
common shares
outstanding,
basic 12,999,331 11,021,229 13,504,539 11,482,401
Weighted average
common shares
outstanding,
diluted 13,112,736 11,160,206 13,794,355 11,576,095
Actual shares
outstanding 19,505,339 12,686,128 19,505,339 12,686,128
Book value per
common share
at period end $ 8.46 $ 7.93 $ 8.46 $ 7.93
Tangible book
value per common
share at
period end $ 8.23 $ 7.70 $ 8.23 $ 7.70
Dividend per
common share $ -- $ 0.1091 $ -- $ --
Performance Ratios
(annualized):
------------------
Return on average
assets 0.64% 0.81% 0.67% 0.82%
Return on average
common equity 7.02% 8.95% 7.62% 9.97%
Net interest
margin 3.81% 4.20% 3.77% 4.11%
Efficiency
ratio (2) 65.84% 63.74% 62.29% 62.51%
Other Ratios:
-------------
Allowance for
credit losses
to total loans 1.51% 1.46% 1.51% 1.46%
Allowance for
credit losses
to total
nonperforming
loans 87.50% 81.53% 87.50% 81.53%
Allowance for
credit losses
to total
nonperforming
assets 72.85% 81.28% 72.85% 81.28%
Nonperforming
loans to
total loans 1.73% 1.80% 1.73% 1.80%
Nonperforming
assets to
total assets 1.63% 1.45% 1.63% 1.45%
Net charge-offs
(annualized)
to average loans 0.37% 0.16% 0.48% 0.27%
Common equity to
total assets 9.71% 6.90% 9.71% 6.90%
Tier 1 leverage
ratio 11.68% 8.79% 11.68% 8.79%
Tier 1 risk based
capital ratio 13.65% 7.55% 13.65% 7.55%
Total risk based
capital ratio 15.57% 9.75% 15.57% 9.75%
Tangible common
equity to
tangible assets 9.56% 10.71% 9.56% 10.71%
Loan Balances -
Period End (in
thousands):
---------------
Commercial and
Industrial $ 327,245 $ 302,534 $ 327,245 $ 302,534
Commercial real
estate - owner
occupied $ 191,455 $ 169,733 $ 191,455 $ 169,733
Commercial real
estate - income
producing $ 451,195 $ 329,179 $ 451,195 $ 329,179
1-4 Family
mortgage $ 9,044 $ 10,000 $ 9,044 $ 10,000
Construction -
commercial and
residential $ 244,317 $ 273,809 $ 244,317 $ 273,809
Home equity $ 87,213 $ 76,374 $ 87,213 $ 76,374
Other consumer $ 6,620 $ 8,954 $ 6,620 $ 8,954
Average
Balances
(in
thousands):
------------
Total assets $ 1,549,600 $ 950,317 $ 1,631,200 $ 1,098,362
Total earning
assets $ 1,500,928 $ 913,939 $ 1,579,603 $ 1,057,543
Total loans (3) $ 1,299,212 $ 808,337 $ 1,317,685 $ 922,224
Total deposits $ 1,215,138 $ 734,536 $ 1,321,405 $ 863,930
Total borrowings $ 178,628 $ 124,614 $ 146,819 $ 138,374
Total
stockholders'
equity $ 146,711 $ 86,059 $ 153,171 $ 90,223
(1) Per share amounts and the number of outstanding shares have been
adjusted to give effect to the 10% common stock dividend paid on
October 1, 2008
(2) Computed by dividing noninterest expense by the sum of net
interest income and noninterest income
(3) Includes loans held for sale
Eagle Bancorp, Inc.
Statements of Financial Condition
(dollars in thousands)
Sept. 30, Dec. 31, Sept. 30,
2009 2008 2008
(Unaudited) (Audited) (Unaudited)
---------- ---------- ----------
Assets
Cash and due from banks $ 21,253 $ 27,157 $ 27,452
Federal funds sold 83,002 191 11,668
Interest bearing deposits with
banks and other short term
investments 7,433 2,489 6,958
Investment securities available
for sale, at fair value 219,652 169,079 213,915
Loans held for sale 1,068 2,718 2,844
Loans 1,317,089 1,265,640 1,170,583
Less: Allowance for credit losses (19,929) (18,403) (17,119)
---------- ---------- ----------
Loans, net 1,297,160 1,247,237 1,153,464
Premises and equipment, net 9,246 9,666 9,724
Deferred income taxes 11,011 11,106 5,392
Bank owned life insurance 12,797 12,450 12,334
Intangible assets, net 4,447 2,533 2,863
Other real estate owned 4,581 909 65
Other assets 11,123 11,292 10,866
---------- ---------- ----------
Total Assets $1,682,773 $1,496,827 $1,457,545
========== ========== ==========
Liabilities and
Stockholders' Equity
Noninterest bearing deposits $ 233,994 $ 223,580 $ 214,160
Interest bearing transaction 55,513 54,801 62,177
Savings and money market 475,138 271,791 281,215
Time, $100,000 or more 264,089 249,516 275,296
Other time 303,268 329,692 304,519
---------- ---------- ----------
Total deposits 1,332,002 1,129,380 1,137,367
Customer repurchase agreements
and federal funds purchased 79,301 98,802 104,243
Other short-term borrowings 30,000 55,000 15,000
Long-term borrowings 29,300 62,150 76,150
Other liabilities 10,654 9,124 24,192
---------- ---------- ----------
Total liabilities 1,481,257 1,354,456 1,356,952
Stockholders' Equity
Preferred stock, par value $.01 per
share, shares authorized
1,000,000, Series A, $1,000 per
share liquidation preference,
shares issued and outstanding
38,235, 38,235, and 0
respectively, discount of $1,642,
$1,892, and $0, respectively, net 36,541 36,312 --
Common stock, $0.01 par value;
shares authorized 50,000,000,
shares issued and outstanding
19,505,339, 12,714,355, and
11,532,844, respectively 195 127 115
Warrants 1,892 1,892 --
Additional paid in capital 128,977 76,822 76,643
Retained earnings 30,756 24,866 23,223
Accumulated other
comprehensive income 3,155 2,352 612
---------- ---------- ----------
Total stockholders' equity 201,516 142,371 100,593
---------- ---------- ----------
Total Liabilities and
Stockholders' Equity $1,682,773 $1,496,827 $1,457,545
========== ========== ==========
EAGLE BANCORP, INC.
Consolidated Statements of Operations
For the Nine and Three Month Periods Ended September 30, 2009 and
2008 (Unaudited)
(dollars in thousands, except per share data)
Nine Months Ended Three Months Ended
September 30, September 30,
---------------- ----------------
2009 2008 2009 2008
------- ------- ------- -------
Interest Income
Interest and fees on loans $56,427 $41,098 $19,744 $15,274
Interest and dividends on
investment securities 5,391 3,418 1,623 1,365
Interest on balances with
other banks and short-term
investments 56 74 19 --
Interest on federal funds sold 51 163 40 105
------- ------- ------- -------
Total interest income 61,925 44,753 21,426 16,744
------- ------- ------- -------
Interest Expense
Interest on deposits 16,090 13,130 5,481 4,794
Interest on customer repurchase
agreements and federal funds
purchased 774 1,019 200 324
Interest on short-term borrowings 428 381 270 83
Interest on long-term borrowings 1,832 1,466 457 628
------- ------- ------- -------
Total interest expense 19,124 15,996 6,408 5,829
------- ------- ------- -------
Net Interest Income 42,801 28,757 15,018 10,915
Provision for Credit Losses 5,141 2,529 1,857 995
------- ------- ------- -------
Net Interest Income After
Provision For Credit Losses 37,660 26,228 13,161 9,920
------- ------- ------- -------
Noninterest Income
Service charges on deposits 2,182 1,293 727 532
Gain on sale of loans 950 406 292 127
Gain on sale of investment
securities 1,537 55 -- 44
Increase in the cash surrender
value of bank owned life
insurance 348 350 118 117
Other income 1,004 1,001 349 375
------- ------- ------- -------
Total noninterest income 6,021 3,105 1,486 1,195
------- ------- ------- -------
Noninterest Expense
Salaries and employee benefits 15,477 11,458 5,128 4,172
Premises and equipment 5,500 3,563 1,798 1,380
Marketing and advertising 785 320 228 125
Data processing 1,780 1,153 658 411
Legal, accounting and
professional fees 2,041 656 664 248
FDIC insurance premiums 2,465 399 550 152
Other expenses 4,098 2,761 1,254 1,082
------- ------- ------- -------
Total noninterest expense 32,146 20,310 10,280 7,570
------- ------- ------- -------
Income Before Income
Tax Expense 11,535 9,023 4,367 3,545
Income Tax Expense 4,067 3,256 1,625 1,284
------- ------- ------- -------
Net Income 7,468 5,767 2,742 2,261
Preferred Stock Dividends
and Discount Accretion 1,767 -- 595 --
------- ------- ------- -------
Net Income Available to
Common Shareholders $ 5,701 $ 5,767 $ 2,147 $ 2,261
======= ======= ======= =======
Earnings Per Common Share
Basic $ 0.44 $ 0.53 $ 0.16 $ 0.20
Diluted $ 0.43 $ 0.52 $ 0.15 $ 0.19
Dividends Declared Per
Common Share $ -- $0.1091 $ -- $ --
EAGLE BANCORP, INC.
Average Balances, Interest Yields And Rates, And Net Interest Margin
(Unaudited)
(dollars in thousands)
Three Months Ended September 30,
------------------------------------------------------
2009 2008
-------------------------- --------------------------
Average Average
Average Yield/ Average Yield/
Balance Interest Rate Balance Interest Rate
-------------------------- --------------------------
ASSETS
Interest
earning
assets:
Interest
bearing
deposits
with other
banks and
other short-
term
investments $ 2,989 $ 19 2.39% $ 2,386 $ 17 2.83%
Loans(1)(2)(3) 1,317,685 19,744 5.94% 922,224 15,274 6.59%
Investment
securities
available
for sale (3) 186,612 1,623 3.45% 112,422 1,348 4.77%
Federal funds
sold 72,317 40 0.22% 20,511 105 2.04%
------------------- -------------------
Total
interest
earning
assets 1,579,603 21,426 5.38% 1,057,543 16,744 6.30%
------------------- -------------------
Total
noninterest
earning
assets 71,251 52,575
Less:
allowance
for credit
losses 19,654 11,756
---------- ----------
Total
non-
interest
earning
assets 51,597 40,819
---------- ----------
TOTAL
ASSETS $1,631,200 $1,098,362
========== ==========
LIABILITIES
AND
STOCKHOLDERS'
EQUITY
Interest
bearing
liabilities:
Interest
bearing
transaction $ 54,390 $ 44 0.32% $ 48,855 $93 0.76%
Savings and
money market 457,277 1,885 1.64% 236,256 1,052 1.77%
Time deposits 576,978 3,552 2.44% 410,982 3,649 3.53%
Customer
repurchase
agreements
and federal
funds
purchased 85,103 200 0.93% 65,512 324 1.97%
Other
short-term
borrowings 30,000 270 3.44% 15,198 83 2.17%
Long-term
borrowings 31,716 457 5.84% 57,664 628 4.33%
------------------- -------------------
Total
interest
bearing
liabilities 1,235,464 6,408 2.06% 834,467 5,829 2.78%
------------------- -------------------
Noninterest
bearing
liabilities:
Noninterest
bearing
demand 232,760 167,837
Other
liabilities 9,805 5,835
---------- ----------
Total
noninterest
bearing
liabilities 242,565 173,672
---------- ----------
Stockholders'
equity 153,171 90,223
---------- ----------
TOTAL
LIABILITIES
AND
STOCK-
HOLDERS'
EQUITY $1,631,200 $1,098,362
========== ==========
Net interest
income $15,018 $10,915
======= =======
Net interest
spread 3.32% 3.52%
Net interest
margin 3.77% 4.11%
(1) Includes loans held for sale.
(2) Loans placed on nonaccrual status are included in average
balances. Net loan fees and late charges included in interest
income on loans totaled $451 thousand and $462 thousand for the
three months ended September 30, 2009 and 2008, respectively.
(3) Interest and fees on loans and investments exclude tax equivalent
adjustments.
EAGLE BANCORP, INC.
Average Balances, Interest Yields And Rates, And Net Interest Margin
(Unaudited)
(dollars in thousands)
Nine Months Ended September 30,
------------------------------------------------------
2009 2008
-------------------------- --------------------------
Average Average
Average Yield/ Average Yield/
Balance Interest Rate Balance Interest Rate
-------------------------- --------------------------
ASSETS
Interest
earning
assets:
Interest
bearing
deposits with
other banks
and other
short-term
investments $ 2,734 $ 56 2.64% $ 2,776 $ 74 3.56%
Loans (1)(2)(3) 1,299,212 56,427 5.81% 808,337 41,098 6.79%
Investment
securities
available
for sale (3) 168,540 5,391 4.28% 92,795 3,418 4.92%
Federal
funds sold 30,442 51 0.22% 10,030 163 2.17%
------------------- -------------------
Total
interest
earning
assets 1,500,928 61,925 5.52% 913,938 44,753 6.54%
------------------- -------------------
Total
noninterest
earning
assets 67,804 46,001
Less:
allowance for
credit losses 19,132 9,574
---------- ----------
Total
noninterest
earning
assets 48,672 36,427
---------- ----------
TOTAL ASSETS $1,549,600 $ 950,365
========== ==========
LIABILITIES
AND
STOCKHOLDERS'
EQUITY
Interest
bearing
liabilities:
Interest
bearing
transaction $ 50,954 $ 117 0.31% $ 46,938 $ 253 0.72%
Savings and
money market 359,657 4,298 1.60% 205,850 2,979 1.93%
Time deposits 580,781 11,675 2.69% 334,143 9,898 3.96%
Customer
repurchase
agreements
and federal
funds
purchased 97,156 774 1.07% 58,497 1,019 2.33%
Other
short-term
borrowings 32,875 428 1.70% 18,618 381 2.73%
Long-term
borrowings 48,597 1,832 5.07% 47,500 1,466 4.12%
------------------- -------------------
Total
interest
bearing
liabilities 1,170,020 19,124 2.19% 711,546 15,996 3.00%
------------------- -------------------
Noninterest
bearing
liabilities:
Noninterest
bearing
demand 223,746 147,605
Other
liabilities 9,123 5,155
---------- ----------
Total
noninterest
bearing
liabilities 232,869 152,760
---------- ----------
Stockholders'
equity 146,711 86,059
---------- ----------
TOTAL
LIABILITIES
AND
STOCKHOLDERS'
EQUITY $1,549,600 $ 950,365
========== ==========
Net interest
income $42,801 $28,757
======= =======
Net interest
spread 3.33% 3.54%
Net interest
margin 3.81% 4.20%
(1) Includes loans held for sale.
(2) Loans placed on nonaccrual status are included in average
balances. Net loan fees and late charges included in interest
income on loans totaled $1.3 million and $1.1 million for the
nine months ended September 30, 2009 and 2008, respectively.
(3) Interest and fees on loans and investments exclude tax equivalent
adjustments.
Eagle Bancorp, Inc.
Statements of Income and Highlights (Quarterly Trends)
(in thousands, except per share data) (Unaudited)
Three Months Ended
----------------------------------------------
Sept. 30, June 30, March 31, Dec. 31,
Income Statements: 2009 2009 2009 2008
------------------
Total interest
income $ 21,426 $ 20,432 $ 20,067 $ 20,904
Total interest
expense 6,408 6,112 6,604 7,680
---------- ---------- ---------- ----------
Net interest income 15,018 14,320 13,463 13,224
Provision for credit
losses 1,857 1,718 1,566 1,450
---------- ---------- ---------- ----------
Net interest income
after provision for
credit losses 13,161 12,602 11,897 11,774
---------- ---------- ---------- ----------
Noninterest income
(before investment
gains or losses) 1,486 1,698 1,300 1,314
Investment gains
(losses) -- 1,405 132 (53)
---------- ---------- ---------- ----------
Total noninterest
income 1,486 3,103 1,432 1,261
---------- ---------- ---------- ----------
Salaries and
employee benefits 5,128 5,044 5,305 5,270
Premises and
equipment 1,798 1,827 1,875 1,861
Marketing and
advertising 228 242 315 734
Other expenses 3,126 4,460 2,798 2,642
---------- ---------- ---------- ----------
Total noninterest
expense 10,280 11,573 10,293 10,507
---------- ---------- ---------- ----------
Income before
income tax expense 4,367 4,132 3,036 2,528
Income tax expense 1,625 1,481 961 867
---------- ---------- ---------- ----------
Net income 2,742 2,651 2,075 1,661
Preferred stock
dividends and
discount accretion 595 589 583 177
---------- ---------- ---------- ----------
Net Income Available
to Common
Shareholders $ 2,147 $ 2,062 $ 1,492 $ 1,484
========== ========== ========== ==========
Per Share Data (1):
-------------------
Earnings per
weighted average
common share, basic $ 0.16 $ 0.16 $ 0.12 $ 0.12
Earnings per
weighted average
common share,
diluted $ 0.15 $ 0.16 $ 0.12 $ 0.12
Weighted average
common shares
outstanding, basic 13,504,539 12,750,496 12,742,725 12,703,425
Weighted average
common shares
outstanding, diluted 13,794,355 12,887,964 12,793,974 12,777,262
Actual shares
outstanding 19,505,339 12,763,940 12,745,118 12,714,355
Book value per
common share at
period end $ 8.46 $ 8.52 $ 8.49 $ 8.34
Dividend per common
share $ -- $ -- $ -- $ --
Performance Ratios (annualized):
--------------------------------
Return on average
assets 0.67% 0.70% 0.56% 0.46%
Return on average
common equity 7.62% 7.71% 5.87% 5.21%
Net interest margin 3.77% 3.91% 3.76% 3.74%
Efficiency ratio (2) 62.29% 66.42% 69.10% 72.54%
Other Ratios:
-------------
Allowance for credit
losses to total
loans 1.51% 1.50% 1.50% 1.45%
Nonperforming loans
to total loans 1.73% 2.36% 3.67% 2.01%
Nonperforming assets
to total assets 1.63% 2.14% 3.33% 1.76%
Net charge-offs
(annualized) to
average loans 0.48% 0.35% 0.29% 0.05%
Average common
equity to average
assets 9.71% 7.04% 6.89% 7.00%
Tier 1 leverage
ratio 11.68% 8.96% 9.06% 9.39%
Tier 1 risk based
capital ratio 13.65% 9.91% 10.26% 9.97%
Total risk based
capital ratio 15.57% 12.05% 12.43% 12.11%
Average Balances (in thousands):
--------------------------------
Total assets $1,631,200 $1,519,091 $1,497,036 $1,450,553
Total earning
assets $1,579,603 $1,468,296 $1,453,527 $1,406,422
Total loans (3) $1,317,685 $1,297,634 $1,281,950 $1,218,067
Total deposits $1,321,405 $1,164,977 $1,157,226 $1,152,378
Total borrowings $ 146,819 $ 199,479 $ 190,065 $ 177,954
Total stockholders'
equity $ 153,171 $ 145,492 $ 141,341 $ 113,245
Three Months Ended
----------------------------------------------
Sept. 30, June 30, March 31, Dec. 31,
Income Statements: 2008 2008 2008 2007
------------------
Total interest
income $ 16,744 $ 13,995 $ 14,014 $ 14,879
Total interest
expense 5,829 4,753 5,414 6,036
---------- ---------- ---------- ----------
Net interest income 10,915 9,242 8,600 8,843
Provision for credit
losses 995 814 720 883
---------- ---------- ---------- ----------
Net interest income
after provision for
credit losses 9,920 8,428 7,880 7,960
---------- ---------- ---------- ----------
Noninterest income
(before investment
gains or losses) 1,150 970 930 1,961
Investment gains
(losses) 45 -- 10 (1)
---------- ---------- ---------- ----------
Total noninterest
income 1,195 970 940 1,960
---------- ---------- ---------- ----------
Salaries and
employee benefits 4,172 3,646 3,640 3,784
Premises and
equipment 1,380 1,103 1,080 1,180
Marketing and
advertising 125 114 81 109
Other expenses 1,893 1,669 1,407 1,395
---------- ---------- ---------- ----------
Total noninterest
expense 7,570 6,532 6,208 6,468
---------- ---------- ---------- ----------
Income before
income tax expense 3,545 2,866 2,612 3,452
Income tax expense 1,284 1,011 961 1,166
---------- ---------- ---------- ----------
Net income 2,261 1,855 1,651 2,286
Preferred stock
dividends and
discount accretion -- -- -- --
---------- ---------- ---------- ----------
Net Income Available
to Common
Shareholders $ 2,261 $ 1,855 $ 1,651 $ 2,286
========== ========== ========== ==========
Per Share Data (1):
-------------------
Earnings per
weighted average
common share, basic $ 0.20 $ 0.17 $ 0.15 $ 0.22
Earnings per
weighted average
common share,
diluted $ 0.19 $ 0.17 $ 0.15 $ 0.21
Weighted average
common shares
outstanding, basic 11,482,401 10,816,857 10,759,361 10,658,364
Weighted average
common shares
outstanding,
diluted 11,576,095 10,896,766 10,927,392 10,873,180
Actual shares
outstanding 12,686,128 10,826,828 10,769,277 10,693,447
Book value per
common share at
period end $ 7.93 $ 7.78 $ 7.76 $ 7.59
Dividend per common
share $ -- $ 0.05 $ 0.05 $ 0.05
Performance Ratios (annualized):
--------------------------------
Return on average
assets 0.82% 0.84% 0.77% 1.06%
Return on average
common equity 9.97% 8.81% 7.98% 11.33%
Net interest margin 4.11% 4.34% 4.19% 4.30%
Efficiency ratio (2) 62.51% 63.96% 65.07% 59.87%
Other Ratios:
-------------
Allowance for
credit losses to
total loans 1.46% 1.15% 1.15% 1.12%
Nonperforming loans
to total loans 1.79% 1.45% 1.54% 0.74%
Nonperforming
assets to total
assets 1.45% 1.26% 1.30% 0.63%
Net charge-offs
(annualized) to
average loans 0.27% 0.20% 0.01% 0.15%
Average common
equity to average
assets 8.21% 9.51% 9.67% 9.39%
Tier 1 leverage
ratio 8.79% 9.43% 9.55% 9.46%
Tier 1 risk based
capital ratio 7.55% 9.74% 9.90% 10.20%
Total risk based
capital ratio 9.75% 10.80% 10.95% 11.21%
Average Balances (in thousands):
--------------------------------
Total assets $1,098,362 $ 891,012 $ 860,030 $ 852,243
Total earning assets $1,057,543 $ 857,232 $ 825,463 $ 816,187
Total loans (3) $ 922,224 $ 770,034 $ 731,501 $ 687,030
Total deposits $ 863,930 $ 683,151 $ 655,105 $ 659,355
Total borrowings $ 138,374 $ 118,634 $ 116,684 $ 107,697
Total stockholders'
equity $ 90,223 $ 84,708 $ 83,200 $ 80,058
(1) Per share amounts and the number of outstanding shares have
been adjusted to give effect to the 10% common stock dividend
paid on October 1, 2008
(2) Computed by dividing noninterest expense by the sum of net
interest income and noninterest income
(3) Includes loans held for sale
Contact:
Eagle Bancorp, Inc.
Michael T. Flynn
301.986.1800
Related Headlines
- Coverage initiated on Eagle Bancorp by FBR Capital - Briefing.com
- EAGLE BANCORP INC Financials - EDGAR Online Financials
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- EagleBank Announces the Opening of a New Branch in Montgomery County - GlobeNewswire
- Eagle Bancorp Chairman Ronald D. Paul to Participate in Sandler O'Neill East Coast Financial Services Conference - GlobeNewswire
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