U.S. markets open in 10 minutes
  • S&P Futures

    3,849.75
    +40.50 (+1.06%)
     
  • Dow Futures

    31,251.00
    +339.00 (+1.10%)
     
  • Nasdaq Futures

    13,061.50
    +150.50 (+1.17%)
     
  • Russell 2000 Futures

    2,239.10
    +39.90 (+1.81%)
     
  • Crude Oil

    61.74
    +0.24 (+0.39%)
     
  • Gold

    1,735.50
    +6.70 (+0.39%)
     
  • Silver

    26.96
    +0.52 (+1.97%)
     
  • EUR/USD

    1.2058
    -0.0029 (-0.24%)
     
  • 10-Yr Bond

    1.4320
    -0.0280 (-1.92%)
     
  • Vix

    24.74
    -4.15 (-14.36%)
     
  • GBP/USD

    1.3946
    +0.0023 (+0.17%)
     
  • USD/JPY

    106.5780
    +0.0760 (+0.07%)
     
  • BTC-USD

    48,060.51
    +3,300.97 (+7.37%)
     
  • CMC Crypto 200

    964.22
    +31.08 (+3.33%)
     
  • FTSE 100

    6,558.63
    +75.20 (+1.16%)
     
  • Nikkei 225

    29,663.50
    +697.49 (+2.41%)
     

Eagle Bancorp, Inc. Announces Net Income for Fourth Quarter 2020 of $38.9 Million or $1.21 Per Share

  • Oops!
    Something went wrong.
    Please try again later.
Eagle Bancorp, Inc.
·36 min read
  • Oops!
    Something went wrong.
    Please try again later.

Total Assets Exceed $11 Billion

BETHESDA, Md., Jan. 27, 2021 (GLOBE NEWSWIRE) -- Eagle Bancorp, Inc. (the “Company”) (NASDAQ: EGBN), the parent company of EagleBank (the “Bank”), today announced quarterly net income of $38.9 million for the fourth quarter of 2020, a 10% increase, as compared to $35.5 million net income for the fourth quarter of 2019. Net income per basic and diluted common share for the fourth quarter of 2020 was $1.21 compared to $1.06 for the same period in 2019, a 14% increase.

For the full year 2020, the Company reported net income of $132.2 million ($4.08 per fully diluted share) as compared to $142.9 million in net income ($4.18 per fully diluted share) for the full year 2019. The 2020 results include the adoption of the current expected credit losses ("CECL") accounting standard effective January 1, 2020.

Fourth Quarter Key Metrics

  • Income Statement

    • Net income of $38.9 million (2nd best quarterly earnings over the last eight quarters)

    • Revenue growth of 4% over fourth quarter 2019

    • Net interest margin of 2.98%

    • Return on average assets ("ROAA") of 1.39%

    • Return on average common equity ("ROACE") of 12.53%

    • Return on average tangible common equity ("ROATCE") of 13.69%1

    • Efficiency ratio of 38.34%

  • Balance Sheet

    • Average assets of $11.1 billion

    • Book value per share of $39.05 (up 9% since the end of 2019)

    • Tangible book value per share of $35.74 (up 9.4% since the end of 2019)1

    • Total risk based capital ratio of 17.04%

    • Annualized net charge-off ratio to average loans of 0.28%

    • Nonperforming assets to total assets of 0.59%

    • Allowance for credit losses to total loans of 1.41%

Susan G. Riel, President and Chief Executive Officer of Eagle Bancorp, Inc., commented, "We ended a very challenging year with two strong quarters, which is a testament to the strength and resiliency of our franchise, our people and the market we serve. For the year, we generated net income of $132.2 million while provisioning $45.6 million to increase our allowance for credit losses as a response to the COVID-19 pandemic along with the adoption of CECL at the beginning of the year. Full year returns also remained strong with a ROAA of 1.28% and a ROATCE of 12.03%2. Recognition must also be given to our residential mortgage division which had a banner year in a low-rate environment generating gain on sale of loans of $21.8 million, more than two-and-a-half times the amount in 2019."

"2020 was also a year when our balance sheet grew by $2.1 billion, with deposits growing by almost $2 billion. The flow of deposits continued throughout the year, and given the COVID-19 pandemic could not be economically deployed into loans, creating excess liquidity. This liquidity was a significant factor that brought the net interest margin under 3% for the first time ever."

"In spite of all the headwinds, we continue to manage an efficient and well-capitalized bank. We remain a leader among our peers with an efficiency ratio of 38.34% and with total risk-based capital of 17.04% at year-end 2020, we are well situated for when loan growth resumes."

"We once again thank all of our employees for their commitment and diligence in serving client needs and following safe health practices. As we look toward the new year, we remain focused on strong and balanced operating performance. We will continue to proactively manage any credit 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.”

Balance Sheet Highlights

  • Total assets at December 31, 2020 were $11.1 billion, a 24% increase as compared to $9.0 billion at December 31, 2019, and a 10% increase as compared to $10.1 billion at September 30, 2020.

  • Total loans (excluding loans held for sale) were $7.8 billion at December 31, 2020, a 3% increase as compared to $7.5 billion at December 31, 2019, and a 2% decrease as compared to $7.9 billion at September 30, 2020. Paycheck Protection Program ("PPP") loans represented $454.8 million of total loans at the end of the fourth quarter. Excluding PPP loans, the decrease in loan balance during the fourth quarter 2020 is mostly attributable to the successful completion of construction projects and the related construction loan payoffs.

  • Loans held for sale amounted to $88.2 million at December 31, 2020 as compared to $56.7 million at December 31, 2019, a 56% increase, and $79.1 million at September 30, 2020, a 12% increase.

  • Investment portfolio totaled $1.2 billion at December 31, 2020, a 36% increase from the $843.4 million balance at December 31, 2019, and 18% increase from $977.6 million at September 30, 2020. This was due primarily to the deployment of deposit inflows into higher yielding assets.

  • Total deposits at December 31, 2020 were $9.2 billion, compared to deposits of $7.2 billion at December 31, 2019, a 27% increase, and a 12% increase compared to deposits of $8.2 billion at September 30, 2020. The increase in deposits was attributable to the continued inflow of deposits across noninterest bearing and money market categories.

  • Total borrowed funds (excluding customer repurchase agreements) were $568.1 million at December 31, 2020, compared to $467.7 million at December 31, 2019, and $568.0 million at September 30, 2020.

  • Total shareholders’ equity increased 4% to $1.24 billion at December 31, 2020 compared to $1.19 billion at December 31, 2019, and increased 1% from $1.22 billion at September 30, 2020. The increase in shareholders’ equity at December 31, 2020 compared to the same period in 2019 was primarily the result of growth in retained earnings partially offset by $61.4 million in stock repurchases, dividends declared of $28.3 million, by the day one CECL entry of $10.9 million net of taxes, and by a $12.5 million increase in other comprehensive income, net of taxes.

    In the fourth quarter of 2020, the Company completed repurchases under the Stock Repurchase Plan approved in August 2019. In December 2020, the Board of Directors approved a new stock repurchase plan of up to 1,588,848 shares, or approximately 5% of shares outstanding, which commenced January 1, 2021.

___________________
1
A reconciliation of GAAP financial measures is provided in the tables that accompany this document.
2 A reconciliation of GAAP financial measures is provided in the tables that accompany this document.

December 31,
2020

September 30,
2020

December 31,
2019

Change since
September 30, 2020

Change since
December 31, 2019

Book value per share

$

39.05

$

37.96

$

35.82

2.9

%

9.0

%

Tangible book value per share

$

35.74

$

34.70

$

32.67

3.0

%

9.4

%

Actual shares outstanding (in millions)

31.78

32.23

33.24

(1.4

)%

(4.4

)%

  • Capital ratios remain substantially in excess of regulatory minimum requirements. Risk based capital ratios and common equity tier 1 were positively impacted by continued strong earnings and relatively little change in outstanding loans. The other three ratios of leverage, common equity and tangible common equity were adversely impacted by the strong asset growth driven largely by deposit inflows.

December 31,
2020

September 30,
2020

December 31,
2019

Change since
September 30, 2020

Change since
December 31, 2019

Total Risk Based Capital

17.04

%

16.72

%

16.20

%

1.90

%

5.20

%

Common Equity Tier 1

13.48

%

13.19

%

12.87

%

2.27

%

4.82

%

Tier 1 Risk Based Capital

13.48

%

13.19

%

12.87

%

2.27

%

4.82

%

Tier 1 Leverage

10.31

%

10.82

%

11.62

%

(4.70

)%

(11.30

)%

Common Equity Ratio

11.16

%

12.11

%

13.25

%

(7.80

)%

(15.80

)%

Tangible Common Equity Ratio

10.31

%

11.18

%

12.22

%

(7.80

)%

(15.60

)%

Income Statement Highlights (4th Quarter 2020 vs. 4th Quarter 2019)

  • Net interest income was $81.4 million for the three months ended December 31, 2020 and $80.7 million for the same period in 2019. Overall, the increase in average earning assets of 19% was substantially offset by the reduction in net interest margin.

  • Net interest margin was 2.98% for the three months ended December 31, 2020, as compared to 3.49% for the three months ended December 31, 2019, which reflects the impact of lower market interest rates and higher cash balances given strong deposit flows, partially offset by improved funding mix and lower funding costs. Additionally, the net interest margin was negatively impacted by approximately two basis points for the quarter due to lower rates on PPP loans (versus excluding PPP loans). Average liquidity for the fourth quarter of 2020 was $1.78 billion versus $739 million for the fourth quarter of 2019.

  • Provision for credit losses was $4.9 million for the three months ended December 31, 2020 as compared to $2.9 million for the three months ended December 31, 2019. The higher provisioning in the fourth quarter of 2020, as compared to the fourth quarter of 2019, was primarily due to the impact of COVID-19 on our actual and expected future credit losses, as modeled under the new CECL accounting standard.

  • Net charge-offs of $5.5 million in the fourth quarter of 2020 represented an annualized 0.28% of average loans, excluding loans held for sale, as compared to $3.0 million, or an annualized 0.16% of average loans, excluding loans held for sale, in the fourth quarter of 2019. Net charge-offs in the fourth quarter of 2020 were attributable primarily to a single restaurant credit of $4.1 million.

  • Noninterest income for the three months ended December 31, 2020 increased to $9.9 million from $6.7 million for the three months ended December 31, 2019, a 47% increase. The increase was primarily due to a substantially higher gain on the sale of residential mortgage loans of $5.9 million for the fourth quarter of 2020 as compared to $2.5 million for the fourth quarter of 2019. Residential mortgage loans made in the fourth quarter of 2020 were made exclusively on a best efforts basis, whereas residential mortgage loans made in the fourth quarter of 2019 were made predominantly on a mandatory basis. Underlying these gains were residential mortgage loan locked commitments of $427.5 million for the fourth quarter of 2020 as compared to $203.2 million for the fourth quarter of 2019.

  • Noninterest expenses totaled $35.0 million for the three months ended December 31, 2020, as compared to $34.7 million for the three months ended December 31, 2019, a 1% increase. The major items of note were legal and FDIC fees.

    • Legal, accounting and professional fees were $2.3 million in the fourth quarter of 2020, down from $4.1 million in the fourth quarter of 2019. Included in the $2.3 million are expenses of $1.1 million primarily associated with the previously disclosed and ongoing governmental investigations and class action lawsuit. Additionally, this $1.1 million is net of recognized receivables for expected insurance recoveries of legal expenditures where we believe recovery is probable pursuant to our D&O insurance policies. The Company does not include any offset for potential claims we may have in the future as to which recovery is impossible to predict at this time.

    • FDIC expenses were $2.4 million in fourth quarter of 2020, up from $879 thousand in the fourth quarter of 2019. The increase is primarily due to nonrecurring $633 thousand credit in 2019 and a higher assessment base in 2020 resulting from growth in total assets.

  • Efficiency ratio was 38.34% for the fourth quarter of 2020,improved from 39.71% for the fourth quarter of 2019 as revenue exceeded the increase in noninterest expenses.

  • Effective income tax rate for the fourth quarter of 2020 was 23.7% as compared to 28.8% for the fourth quarter of 2019. The decrease was due primarily to a decrease in nondeductible expenses, state taxes and adjustments related to the completion of the 2019 tax returns.

Income Statement Highlights (Full Year 2020 vs. Full Year 2019)

  • Net interest income was $321.6 million for the year ended December 31, 2020, versus $324.0 million for the year ended December 31, 2019. Overall, the increase in average earnings assets of 17% was offset by the reduction in net interest margin.

  • Net interest margin was 3.19% for the year ended December 31, 2020, as compared to 3.77% for the year ended December 31, 2019. This decline was due to the sharply lower interest rate environment in 2020 as compared to 2019, and to substantially higher on balance sheet liquidity.

    • While the Company has been proactive in lowering its cost of funds (0.68% for the year ended December 31, 2020 compared to 1.23% in 2019), the yield on earning assets also declined by 113 basis points (from 5.00% to 3.87%).

    • Average on balance sheet liquidity was $1.2 billion for the year 2020 as compared to $415 million for the year 2019.

    • Additionally, the net interest margin was negatively impacted by approximately nine basis points due to lower rates on PPP loans as compared to non-PPP loans.

  • Provision for credit losses was $45.6 million for the year ended December 31, 2020 as compared to $13.1 million for the year ended December 31, 2019. The higher provisioning for the year ended December 31, 2020, as compared to the same period in 2019, is primarily due to the implementation of CECL (effective January 1, 2020) and the impact of COVID-19 on our actual and expected future credit losses.

  • Net charge-offs of $20.1 million for the year ended December 31, 2020 represented 0.26% of average loans, excluding loans held for sale, as compared to $9.4 million, or 0.13% of average loans, excluding loans held for sale, in the year ended December 31, 2019. Net charge-offs in 2020 consisted primarily of $12 million in commercial loans, $7.2 million in commercial real estate loans, and $815 thousand in mortgage loans.

  • Noninterest income for the year ended December 31, 2020 increased to $45.7 million from $25.7 million for the year ended December 31, 2019, a 78% increase. The increase was due substantially to higher gains on the sale of residential mortgage loans of $21.8 million in 2020 as compared to $8.2 million in 2019. Underlying these gains were residential mortgage loan locked commitments of $1.9 billion in 2020 as compared to $877.3 million in 2019.

  • Noninterest expenses totaled $144.2 million for the year ended December 31, 2020, as compared to $139.9 million for the year ended December 31, 2019, a 3% increase.

    • Salaries and employee benefits were $74.4 million, a decrease of $5.4 million or 7% for the year ended December 31, 2020 compared to $79.8 million for the same period in 2019. The decrease was primarily due to the $6.2 million of largely nonrecurring charges accrued in the first quarter of 2019 related to share-based compensation awards and the resignation of our former CEO and Chairman in March 2019, of which a portion was released in the second quarter of 2020. The decrease was partially offset by higher salaries attributable to merit increases and increased headcount in 2020.

    • Legal, accounting and professional fees were $16.4 million for the year ended December 31, 2020, an increase of $4.2 million or 35% year-over-year. Legal fees and expenditures of $9.1 million for the year ended December 31, 2020 were primarily associated with previously disclosed ongoing governmental investigations and related subpoenas and document requests and our defense of the previously disclosed class action lawsuit. The amount of legal fees and expenditures for the year is net of the probable expected insurance coverage recovery pursuant to our D&O insurance policies but does not include any offset for potential claims we may have in the future as to which recovery is impossible to predict at this time

    • FDIC expenses were $7.9 million in 2020, up from $3.2 million in 2019. The year-over-year increase is primarily due to a nonrecurring credit in 2019 and a higher assessment base in 2020 resulting from growth in total assets.

  • Efficiency Ratio for 2020 was 39.25% as compared to 39.99% for 2019.

  • Effective income tax rates were 24.9% and 27.4% for 2020 and 2019, respectively. The decrease in the effective tax rate was due primarily to a decrease in nondeductible expenses, state taxes and adjustments related to the completion of the 2019 tax returns.

Additional Quarterly Financial Commentary

  • Loans Closed/Payoffs: New loans closed in the fourth quarter of 2020 were similar to the level closed in the fourth quarter of 2019, but were outpaced by loan payoffs in the fourth quarter of 2020. Unfunded commitments declined to $1.99 billion as of December 31, 2020 as compared to $2.28 billion as of December 31, 2019.

  • Loan Mix: In addition to the current sharply lower interest rate environment as compared to 2019, there has been less focus on higher risk and higher yielding construction lending and more attention towards strong commercial real estate credits secured by stabilized income producing properties. The yield on the loan portfolio was 4.50% for the fourth quarter of 2020 as compared to 5.18% for the fourth quarter of 2019 and 4.46% for the third quarter of 2020.

  • Paycheck Protection Program: As a Small Business Administration ("SBA") preferred lender, the Bank actively participated in the PPP, and at December 31, 2020 had an outstanding balance of PPP loans of $454.8 million to just over 1,400 businesses. The stated rate for these loans is 1.00%. For the fourth quarter of 2020, the average yield which includes fee amortization was 2.55%. The lower loan yield on these PPP loans negatively affected fourth quarter loan portfolio yields by 12 basis points. For 2020, the average yield which includes fee amortization was 2.48%. The lower loan yield on these PPP loans negatively affected our twelve month loan portfolio yields in 2020 by 21 basis points. Excluding PPP loans, loan yields were 4.62% for the fourth quarter of 2020, and were 4.87% for the full year 2020.

  • Deposit Mix: The Company continues to emphasize achieving core deposit growth and we continue to seek well-structured new loan opportunities. The mix of noninterest deposits to total deposits remained favorable and averaged 33% in the fourth quarter of 2020, as compared to 30% in the fourth quarter of 2019. Certain long-term core fiduciary clients increased their deposit balances in the fourth quarter of 2020 seeking some nominal interest income as market interest rates continued to remain quite low. While the Bank was able to invest these deposits into earning assets, the spreads were narrow and contributed to a decline in the net interest margin.

  • Nonperforming Loans and Assets: At December 31, 2020, the Company’s nonperforming loans were $60.9 million (0.79% of total loans) as compared to $48.7 million (0.65% of total loans) at December 31, 2019. Nonperforming assets amounted to $65.9 million (0.59% of total assets) at December 31, 2020 compared to $50.2 million (0.56% of total assets) at December 31, 2019.

  • CECL: The Company adopted the new CECL accounting standard (ASC 326) in the first quarter of 2020. The Company made an initial adjustment to the allowance for credit losses of $10.6 million along with $4.1 million to the reserve for unfunded commitments. This adjustment increased the ratio of the allowance to total loans from 0.98% at December 31, 2019 to 1.12% at January 1, 2020. Based on our ongoing risk analysis and modeling under the CECL allowance methodology, the Company further increased the allowance for credit losses to 1.40% at September 30, 2020 and 1.41% of total loans as of December 31, 2020, which reflects COVID-19 risks assessments and an updated unemployment forecast for the Washington, D.C. metropolitan area. Additionally, the qualitative risk factors have been increased associated with our higher mix of Accommodation & Food Services industry loans. The allowance for credit losses of $109.6 million at December 31, 2020 represented 180% of nonperforming loans at that date, as compared to a coverage ratio of 190% at September 30, 2020, and 151% at December 31, 2019.

  • Loan Deferrals: Management is closely monitoring borrowers and remains attentive to signs of deterioration in borrowers’ financial conditions and is proactively taking steps to mitigate risk as appropriate. Significant effort has been placed on moving loans off of deferral status. As of September 30, 2020, a total of 321 notes were on deferral status representing $851 million in outstanding exposure or 10.8% of total loans. As of December 31, 2020, deferrals had been reduced to 36 notes with $72.4 million in outstanding exposure or 0.9% of gross loans. The table that follows provides additional detail on deferrals by Industry/Collateral Type.

(dollars in millions)

Industry/Collateral Type

Number of
Notes1

Total
Outstanding
(in millions)1

Deferred
Note
Count

Total
Deferred
Outstanding
(in millions)

%
Outstanding
Deferred

Weighted Avg
LTV of RE
Collateral

Avg Loan Size
(in millions)

Hotels

43

$

529

$

$

%

N/A

N/A

Transportation & Warehousing

60

$

171

$

29

$

38

22

%

70

%

$

1

Restaurants

393

$

238

$

2

$

5

2

%

75

%

$

3

Retail

139

$

276

$

1

$

4

1

%

75

%

$

4

Other Real Estate

911

$

3,688

$

2

$

6

>0.5

44

%

$

3

Healthcare

197

$

274

$

1

$

19

7

%

87

%

$

19

Art/Entertainment/Recreation

66

$

139

$

$

%

N/A

N/A

Other

4,473

$

2,445

$

1

$

0.4

>0.5

68

%

$

1

Total

6,282

$

7,760

$

36

$

72.4

1

%

N/A

N/A

1 Includes 1,433 notes and $455 million in PPP loans.

  • COVID-19 Loan Deferral Migration: The table below shows the migration of the $851 million deferred loans from September 30, 2020 through December 31, 2020. The $791 million represents the updated balance of the deferred loan population from September 30, 2020. The subsequent columns represent the collateral support and disposition of those loans. All loans that received a second deferral were automatically downgraded and added to our watch list to raise visibility within the loan portfolio.

(dollars in millions)

Industry/Collateral Type

September
30, 2020
Balance

Payoffs

Other
Payments/
Adv

December
31, 2020
Balance

Weighted
Avg LTV
of RE
Collateral

Current-
Pass
Rated

Current-
Watch
List

30-
89
Past
Due

Non
Performing
Loans

Hotels

$

387

$

(36

)

<0.5

$

351

60

%

7

298

46

0

Transportation & Warehousing

$

134

$

$

4

$

138

64

%

0

138

0

0

Restaurants

$

115

$

(26

)

$

(2

)

$

87

64

%

18

44

11

14

Retail

$

73

$

4

<0.5

$

77

69

%

3

72

1

0

Other Real Estate

$

34

$

(1

)

<0.5

$

33

45

%

5

24

5

0

Healthcare

$

28

$

<0.5

$

28

84

%

2

20

0

6

Art/Entertainment/Recreation

$

23

$

<0.5

$

22

15

%

4

10

8

0

Other

$

57

$

(2

)

$

(1

)

$

55

74

%

27

26

2

<0.5

Total

$

851

$

(61

)

$

1

$

791

62

%

66

632

73

20

  • TDRs: None of the deferrals are reflected as troubled debt restructurings ("TDRs") in the Company’s balance sheet and asset quality measures due to the provision of the Coronavirus Aid Relief and Economic Security Act (the "CARES Act") that permits U.S. financial institutions to temporarily suspend the GAAP requirements to treat such short-term loan modifications as TDRs. These provisions have also been confirmed by interagency guidance issued by the federal banking agencies and confirmed with staff members of the Financial Accounting Standards Board. Other loan portfolio areas of concern at December 31, 2020 and additional COVID-19 loan related matters are discussed below.

  • Other Exposures: Industry segments we believe may be more at risk within the Loan Portfolio are presented below as of year end December 31, 2020:

Industry

Principal Balance
(in thousands)

% of Loan Portfolio

Accommodation & Food Services

$

768,568

1

9.9

%

Retail Trade

$

98,882

2

1.3

%

1 Includes $81,832 of PPP loans.

2 Includes $13,512 of PPP loans.

Accommodation and Food Services exposure represents 9.9% of the Bank’s loan portfolio as of December 31, 2020 among 311 customers. Retail Trade exposure represents 1.3% of the Bank’s loan portfolio. The Bank has ongoing extensive outreach to these customers, and is assisting where necessary with PPP loans and payment deferrals or interest only periods in the short term as customers work with the Bank to develop longer term stabilization strategies as the landscape of the COVID-19 pandemic evolves. The duration and severity of the pandemic will likely impact future credit challenges in these areas.

In addition to the specific industry data listed above, the Bank has exposure on loans secured by commercial real estate of the following property types as of December 31, 2020:

Property Type

Principal Balance
(in thousands)

% of Loan Portfolio

Restaurant

$

44,541

0.6

%

Hotel

$

35,741

0.5

%

Retail

$

377,269

4.9

%

Although not evidenced at December 31, 2020, it is anticipated that some portion of the CRE (commercial real estate) loans secured by the above property types could be impacted by the tenancies associated with impacted industries. The Bank is working with CRE investor borrowers and monitoring rent collections as part of our portfolio management process.

  • Legal Update: On January 25, 2021, the Company entered into a settlement agreement (to be filed in DC Superior Court) with respect to a previously disclosed shareholder demand letter, covering substantially the same subject matters as the disclosed civil securities class action litigation pending in the United States District Court for the Southern District of New York (SDNY). The demand letter alleges, derivatively on behalf of the Company, that certain named individual directors and officers breached their fiduciary duties with respect to the matters referenced in the demand letter. As required by DC Superior Court administrative procedures, shareholder's counsel will first file a derivative action complaint against the individual directors and officers named in the demand letter, and the Company as nominal Defendant. Then once the complaint is processed and the DC Superior Court dockets the case, shareholder's counsel will file the executed stipulation of settlement accompanied by the shareholder's brief in support of their unopposed motion to approve the settlement. The settlement is subject to certain conditions and limitations, including court approval.

    Pursuant to the executed stipulation of settlement of the demand litigation, the Company has agreed to implement certain corporate governance enhancements (many of which are already underway) and to invest an additional $2 million incremental spend above 2020 levels (over the course of three years) to enhance its corporate governance, and risk and compliance controls and infrastructure. The Company has made significant improvements to its corporate governance and internal controls, including those it described in its 2019 10-K, filed on March 2, 2020. As part of the resolution of the matters that were the subject of the demand letter, once court approval is granted, the Company will make a one-time payment to the shareholder’s counsel in the amount of $500,000 for attorneys’ fees and expenses (which one-time amount is expected to be recovered pursuant to the Company’s D&O insurance policy).

    The stipulation of settlement further provides for releases by the demanding shareholder on behalf of all Eagle Bancorp shareholders of liability with respect to the subject matters described in the demand letter and any other potential future shareholder derivative claims against all current and former Company and EagleBank officers and directors, and a release by the Company of certain claims against all current and former officers and directors, subject to court approval. The stipulation of settlement does not include or constitute an admission, concession, or finding of any fault, liability, or wrongdoing by the Company, EagleBank or any defendant. Although the Company believes the stipulation of settlement is in the best interests of the Company’s shareholders, there can be no assurance that the stipulation of settlement will be approved by the court.

    The previously disclosed putative securities class action against the Company and certain of its current and former officers and directors remains outstanding. However, on December 23, 2020, the securities class action plaintiffs and defendants filed a stipulation to stay the class action litigation pending a non-binding mediation in the spring of 2021, on a date to be determined. The SDNY so-ordered the stipulation on December 24, 2020. There can be no assurance, however, that the Class Action litigation will be settled.

Additional financial information: The financial information which follows provides more detail on the Company’s financial performance for the three months and full year ended December 31, 2020 as compared to the three months and full year ended December 31, 2019 as well as providing 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, 2019, the Company's quarterly reports on Form 10-Q for the quarters ended March 31, 2020, June 30, 2020, and September 30, 2020, respectively, 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 fourth quarter and year-end 2020 financial results on Thursday, January 28, 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 2276066, 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 February 11, 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 and business operations), interest rates and interest rate policy, competitive factors, and other conditions which by their nature, are not susceptible to accurate forecast and are subject to significant uncertainty. Because of these uncertainties and the assumptions on which this discussion and the forward-looking statements are based, actual future operations and results in the future may differ materially from those indicated herein. For details on factors that could affect these expectations, see the risk factors and other cautionary language included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019, the Company’s Quarterly Report on Form 10-Q for the quarters ended March 31, 2020, June 30, 2020 and September 30, 2020, the Company’s upcoming 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. All information is as of the date of this press release. Any forward-looking statements made by or on behalf of the Company speak only as to the date they are made. Except to the extent required by applicable law or regulation, the Company undertakes no obligation to revise or update publicly any forward-looking statement for any reason.

Eagle Bancorp, Inc.

Consolidated Financial Highlights (Unaudited)

(dollars in thousands, except per share data)

Three Months Ended December 31,

Years Ended December 31,

2020

2019

2020

2019

Income Statements:

Total interest income

$

94,680

$

107,183

$

389,986

$

429,630

Total interest expense

13,263

26,473

68,424

105,585

Net interest income

81,417

80,710

321,562

324,045

Provision for credit losses

4,917

2,945

45,571

13,091

Provision for Unfunded Commitments

406

1,380

Net interest income after provision for credit losses

76,094

77,765

274,611

310,954

Noninterest income (before investment gain)

9,722

6,845

43,881

24,182

Gain (loss) on sale of investment securities

165

(111

)

1,815

1,517

Total noninterest income

9,887

6,734

45,696

25,699

Total noninterest expense

35,008

34,726

144,162

139,862

Income before income tax expense

50,973

49,773

176,145

196,791

Income tax expense

12,081

14,317

43,928

53,848

Net income

$

38,892

$

35,456

$

132,217

$

142,943

Per Share Data:

Earnings per weighted average common share, basic

$

1.21

$

1.06

$

4.09

$

4.18

Earnings per weighted average common share, diluted

$

1.21

$

1.06

$

4.08

$

4.18

Weighted average common shares outstanding, basic

32,037,099

33,468,572

32,334,201

34,178,804

Weighted average common shares outstanding, diluted

32,075,175

33,498,681

32,383,021

34,210,646

Actual shares outstanding at period end

31,779,663

33,241,496

31,779,663

33,241,496

Book value per common share at period end

$

39.05

$

35.82

$

39.05

$

35.82

Tangible book value per common share at period end (1)

$

35.74

$

32.67

$

35.74

$

32.67

Dividend per common share

$

0.22

$

0.22

$

0.88

$

0.66

Performance Ratios (annualized):

Return on average assets

1.39

%

1.49

%

1.28

%

1.61

%

Return on average common equity

12.53

%

11.78

%

10.98

%

12.20

%

Return on average tangible common equity

13.69

%

12.91

%

12.03

%

13.40

%

Net interest margin

2.98

%

3.49

%

3.19

%

3.77

%

Efficiency ratio (2)

38.34

%

39.71

%

39.25

%

39.99

%

Other Ratios:

Allowance for credit losses to total loans (3)

1.41

%

0.98

%

1.41

%

0.98

%

Allowance for credit losses to total nonperforming loans

179.80

%

151.16

%

179.80

%

151.16

%

Nonperforming loans to total loans (3)

0.79

%

0.65

%

0.79

%

0.65

%

Nonperforming assets to total assets

0.59

%

0.56

%

0.59

%

0.56

%

Net charge-offs (annualized) to average loans (3)

0.28

%

0.16

%

0.26

%

0.13

%

Common equity to total assets

11.16

%

13.25

%

11.16

%

13.25

%

Tier 1 capital (to average assets)

10.31

%

11.62

%

10.31

%

11.62

%

Total capital (to risk weighted assets)

17.04

%

16.20

%

17.04

%

16.20

%

Common equity tier 1 capital (to risk weighted assets)

13.48

%

12.87

%

13.48

%

12.87

%

Tangible common equity ratio (1)

10.31

%

12.22

%

10.31

%

12.22

%

Loan Balances - Period End (in thousands):

Commercial and Industrial

$

1,437,433

$

1,545,906

$

1,437,433

$

1,545,906

PPP loans

$

454,771

$

$

454,771

$

Commercial real estate - income producing

$

3,687,000

$

3,702,747

$

3,687,000

$

3,702,747

Commercial real estate - owner occupied

$

997,694

$

985,409

$

997,694

$

985,409

1-4 Family mortgage

$

76,592

$

104,221

$

76,592

$

104,221

Construction - commercial and residential

$

873,261

$

1,035,754

$

873,261

$

1,035,754

Construction - C&I (owner occupied)

$

158,905

$

89,490

$

158,905

$

89,490

Home equity

$

73,167

$

80,061

$

73,167

$

80,061

Other consumer

$

1,389

$

2,160

$

1,389

$

2,160

Average Balances (in thousands):

Total assets

$

11,141,826

$

9,426,220

$

10,349,963

$

8,853,066

Total earning assets

$

10,872,259

$

9,160,034

$

10,080,239

$

8,585,184

Total loans

$

7,896,324

$

7,532,179

$

7,868,523

$

7,332,886

Total deposits

$

9,227,733

$

7,716,973

$

8,502,022

$

7,231,679

Total borrowings

$

596,307

$

449,432

$

569,446

$

383,230

Total shareholders’ equity

$

1,235,174

$

1,194,337

$

1,204,341

$

1,172,051

(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

Year Ended

Year Ended

Three Months Ended

December 31, 2020

December 31, 2020

December 31, 2019

December 31, 2019

Common shareholders' equity

$

1,240,891

$

1,190,681

Less: Intangible assets

(105,114

)

(104,739

)

Tangible common equity

$

1,135,777

$

1,085,942

Book value per common share

$

39.05

$

35.82

Less: Intangible book value per common share

(3.31

)

(3.15

)

Tangible book value per common share

$

35.74

$

32.67

Total assets

$

11,117,802

$

8,988,719

Less: Intangible assets

(105,114

)

(104,739

)

Tangible assets

$

11,012,688

$

8,883,980

Tangible common equity ratio

10.31

%

12.22

%

Average common shareholders' equity

$

1,235,173

$

1,204,341

$

1,172,051

$

1,194,337

Less: Average intangible assets

(105,131

)

(104,903

)

(105,167

)

(104,784

)

Average tangible common equity

$

1,130,042

$

1,099,438

$

1,066,884

$

1,089,553

Net Income Available to Common Shareholders

$

38,892

$

132,217

$

142,943

$

35,456

Average tangible common equity

$

1,130,042

$

1,099,438

$

1,066,884

$

1,089,553

Annualized Return on Average Tangible Common Equity

13.69

%

12.03

%

13.40

%

12.91

%


Eagle Bancorp, Inc.

Consolidated Balance Sheets (Unaudited)

(dollars in thousands, except per share data)

Assets

December 31,
2020

September 30,
2020

December 31,
2019

Cash and due from banks

$

8,435

$

7,559

$

7,539

Federal funds sold

28,200

30,830

38,987

Interest bearing deposits with banks and other short-term investments

1,752,420

818,719

195,447

Investment securities available for sale, at fair value (amortized cost of $1,129,255, $956,803, and $839,192, and allowance for credit losses of $167, $156, and $0, as of December 31, 2020, September 30, 2020 and December 31, 2019, respectively).

1,151,083

977,570

843,363

Federal Reserve and Federal Home Loan Bank stock

40,104

40,061

35,194

Loans held for sale

88,205

79,084

56,707

Loans

7,760,212

7,880,255

7,545,748

Less allowance for credit losses

(109,579

)

(110,215

)

(73,658

)

Loans, net

7,650,633

7,770,040

7,472,090

Premises and equipment, net

13,553

12,204

14,622

Operating lease right-of-use assets

25,237

27,180

27,372

Deferred income taxes

38,571

36,363

29,804

Bank owned life insurance

76,729

76,326

75,724

Intangible assets, net

105,114

105,165

104,739

Other real estate owned

4,987

4,987

1,487

Other assets

134,531

120,206

85,644

Total Assets

$

11,117,802

$

10,106,294

$

8,988,719

Liabilities and Shareholders' Equity

Deposits:

Noninterest bearing demand

$

2,809,334

$

2,384,108

$

2,064,367

Interest bearing transaction

756,923

823,607

863,856

Savings and money market

4,645,186

3,956,553

3,013,129

Time, $100,000 or more

546,173

553,949

663,987

Other time

431,587

460,568

619,052

Total deposits

9,189,203

8,178,785

7,224,391

Customer repurchase agreements

26,726

24,293

30,980

Other short-term borrowings

300,000

300,000

250,000

Long-term borrowings

268,077

267,980

217,687

Operating lease liabilities

28,022

30,457

29,959

Reserve for unfunded commitments

5,498

5,092

Other liabilities

59,384

76,285

45,021

Total liabilities

9,876,910

8,882,892

7,798,038

Shareholders' Equity

Common stock, par value $.01 per share; shares authorized 100,000,000, shares

issued and outstanding 31,779,663, 32,228,636, and 33,241,496, respectively

315

320

331

Additional paid in capital

427,016

442,592

482,286

Retained earnings

798,061

766,219

705,105

Accumulated other comprehensive income (loss)

15,500

14,271

2,959

Total Shareholders' Equity

1,240,892

1,223,402

1,190,681

Total Liabilities and Shareholders' Equity

$

11,117,802

$

10,106,294

$

8,988,719


Eagle Bancorp, Inc.

Consolidated Statements of Income (Unaudited)

(dollars in thousands, except per share data)

Three Months Ended December 31,

Years Ended December 31,

Interest Income

2020

2019

2020

2019

Interest and fees on loans

$

89,875

$

98,916

$

368,854

$

400,923

Interest and dividends on investment securities

4,301

5,297

18,440

21,037

Interest on balances with other banks and short-term investments

497

2,905

2,601

7,438

Interest on federal funds sold

7

65

91

232

Total interest income

94,680

107,183

389,986

429,630

Interest Expense

Interest on deposits

9,511

23,089

53,566

91,026

Interest on customer repurchase agreements

36

90

293

345

Interest on other short-term borrowings

506

315

1,869

2,298

Interest on long-term borrowings

3,210

2,979

12,696

11,916

Total interest expense

13,263

26,473

68,424

105,585

Net Interest Income

81,417

80,710

321,562

324,045

Provision for Credit Losses

4,917

2,945

45,571

13,091

Provision for Unfunded Commitments

406

1,380

Net Interest Income After Provision For Credit Losses

76,094

77,765

274,611

310,954

Noninterest Income

Service charges on deposits

988

1,453

4,416

6,247

Gain on sale of loans

5,840

2,600

22,089

8,474

Gain (loss) on sale of investment securities

165

(111

)

1,815

1,517

Increase in the cash surrender value of bank owned life insurance

416

418

2,071

1,703

Other income

2,478

2,374

15,305

7,758

Total noninterest income

9,887

6,734

45,696

25,699

Noninterest Expense

Salaries and employee benefits

20,151

19,360

74,440

79,842

Premises and equipment expenses

3,301

3,380

15,715

14,387

Marketing and advertising

1,161

1,200

4,278

4,826

Data processing

2,747

2,251

10,702

9,412

Legal, accounting and professional fees

2,342

4,121

16,406

12,195

FDIC insurance

2,385

879

7,941

3,206

Other expenses

2,921

3,535

14,680

15,994

Total noninterest expense

35,008

34,726

144,162

139,862

Income Before Income Tax Expense

50,973

49,773

176,145

196,791

Income Tax Expense

12,081

14,317

43,928

53,848

Net Income

$

38,892

$

35,456

$

132,217

$

142,943

Earnings Per Common Share

Basic

$

1.21

$

1.06

$

4.09

$

4.18

Diluted

$

1.21

$

1.06

$

4.08

$

4.18


Eagle Bancorp, Inc.

Consolidated Average Balances, Interest Yields And Rates (Unaudited)

(dollars in thousands)

Three Months Ended December 31,

2020

2019

Average
Balance

Interest

Average
Yield/Rate

Average
Balance

Interest

Average
Yield/Rate

ASSETS

Interest earning assets:

Interest bearing deposits with other banks and other short-term investments

$

1,752,046

$

496

0.11

%

$

710,038

$

2,905

1.62

%

Loans held for sale (1)

70,945

520

2.93

%

57,779

524

3.63

%

Loans (1) (2)

7,896,324

89,356

4.50

%

7,532,179

98,392

5.18

%

Investment securities available for sale (2)

1,122,078

4,300

1.52

%

831,143

5,297

2.53

%

Federal funds sold

30,866

8

0.10

%

28,895

65

0.89

%

Total interest earning assets

10,872,259

94,680

3.46

%

9,160,034

107,183

4.64

%

Total noninterest earning assets

378,406

340,186

Less: allowance for credit losses

108,839

74,000

Total noninterest earning assets

269,567

266,186

TOTAL ASSETS

$

11,141,826

$

9,426,220

LIABILITIES AND SHAREHOLDERS' EQUITY

Interest bearing liabilities:

Interest bearing transaction

$

772,056

$

511

0.26

%

$

881,453

$

2,284

1.03

%

Savings and money market

4,443,676

4,652

0.42

%

3,144,249

12,195

1.54

%

Time deposits

998,872

4,347

1.73

%

1,400,330

8,610

2.44

%

Total interest bearing deposits

6,214,604

9,510

0.61

%

5,426,032

23,089

1.69

%

Customer repurchase agreements

28,259

36

0.51

%

31,231

90

1.14

%

Other short-term borrowings

300,003

506

0.66

%

200,547

315

0.61

%

Long-term borrowings

268,045

3,211

4.69

%

217,654

2,979

5.36

%

Total interest bearing liabilities

6,810,911

13,263

0.77

%

5,875,464

26,473

1.79

%

Noninterest bearing liabilities:

Noninterest bearing demand

3,013,129

2,290,941

Other liabilities

82,612

65,478

Total noninterest bearing liabilities

3,095,741

2,356,419

Shareholders’ Equity

1,235,174

1,194,137

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY

$

11,141,826

$

9,426,020

Net interest income

$

81,417

$

80,710

Net interest spread

2.69

%

2.85

%

Net interest margin

2.98

%

3.49

%

Cost of funds

0.48

%

1.15

%

(1) Loans placed on nonaccrual status are included in average balances. Net loan fees and late charges included in interest income on loans totaled $6.2 million and $4.7 million for the three months ended December 31, 2020 and 2019, respectively.

(2) Interest and fees on loans and investments exclude tax equivalent adjustments.


Eagle Bancorp, Inc.

Consolidated Average Balances, Interest Yields and Rates (Unaudited)

(dollars in thousands)

Years Ended December 31,

2020

2019

Average Balance

Interest

Average
Yield/Rate

Average Balance

Interest

Average
Yield/Rate

ASSETS

Interest earning assets:

Interest bearing deposits with other banks and other short-term investments

$

1,181,591

$

2,601

0.22

%

$

392,245

$

7,438

1.90

%

Loans held for sale (1)

67,361

2,125

3.15

%

40,192

1,565

3.89

%

Loans (1) (2)

7,868,523

366,729

4.66

%

7,332,886

399,358

5.45

%

Investment securities available for sale (1)

929,983

18,440

1.98

%

796,608

21,037

2.64

%

Federal funds sold

32,781

91

0.28

%

23,253

232

1.00

%

Total interest earning assets

10,080,239

389,986

3.87

%

8,585,184

429,630

5.00

%

Total noninterest earning assets

371,345

339,565

Less: allowance for credit losses

101,621

71,683

Total noninterest earning assets

269,724

267,882

TOTAL ASSETS

$

10,349,963

8,853,066

LIABILITIES AND SHAREHOLDERS' EQUITY

Interest bearing liabilities:

Interest bearing transaction

$

783,568

$

3,190

0.41

%

$

743,361

$

6,491

0.87

%

Savings and money market

3,925,413

26,271

0.67

%

2,873,054

50,042

1.74

%

Time deposits

1,149,185

24,105

2.10

%

1,404,748

34,493

2.46

%

Total interest bearing deposits

5,858,166

53,566

0.91

%

5,021,163

91,026

1.81

%

Customer repurchase agreements

29,345

293

1.00

%

30,024

345

1.15

%

Other short-term borrowings

280,126

1,870

0.66

%

135,699

2,298

1.67

%

Long-term borrowings

259,975

12,696

4.80

%

217,507

11,916

5.40

%

Total interest bearing liabilities

6,427,612

68,425

1.06

%

5,404,393

105,585

1.95

%

Noninterest bearing liabilities:

Noninterest bearing demand

2,643,856

2,210,516

Other liabilities

74,154

66,106

Total noninterest bearing liabilities

2,718,010

2,276,622

Shareholders’ equity

1,204,341

1,172,051

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY

$

10,349,963

$

8,853,066

Net interest income

$

321,561

$

324,045

Net interest spread

2.81

%

3.05

%

Net interest margin

3.19

%

3.77

%

Cost of funds

0.68

%

1.23

%

(1) Loans placed on nonaccrual status are included in average balances. Net loan fees and late charges included in interest income on loans totaled $22.3 million and $17.8 million for the years ended December 31, 2020 and 2019, respectively.

(2) Interest and fees on loans and investments exclude tax equivalent adjustments.


Statements of Income and Highlights Quarterly Trends (Unaudited)

(dollars in thousands, except per share data)

Three Months Ended

December 31,

September 30,

June 30,

March 31,

December 31,

September 30,

June 30,

March 31,

Income Statements:

2020

2020

2020

2020

2019

2019

2019

2019

Total interest income

$

94,680

$

93,833

$

97,672

$

103,801

$

107,183

$

109,034

$

108,279

$

105,134

Total interest expense

13,262

14,795

16,309

24,057

26,473

28,045

26,950

24,117

Net interest income

81,418

79,038

81,363

79,744

80,710

80,989

81,329

81,017

Provision for credit losses

4,917

6,607

19,737

14,310

2,945

3,186

3,600

3,360

Provision for unfunded commitments

406

(2,078

)

940

2,112

Net interest income after provision for credit losses

76,095

74,509

60,686

63,322

77,765

77,803

77,729

77,657

Noninterest income (before investment gain (loss))

9,722

17,729

11,782

4,648

6,845

6,161

5,797

5,379

Gain (loss) on sale of investment securities

165

115

713

822

(111

)

153

563

912

Total noninterest income

9,887

17,844

12,495

5,470

6,734

6,314

6,360

6,291

Salaries and employee benefits

20,151

19,388

17,104

17,797

19,360

19,095

17,743

23,644

Premises and equipment

3,301

5,125

3,468

3,821

3,380

3,503

3,652

3,852

Marketing and advertising

1,161

928

1,111

1,078

1,200

1,210

1,268

1,148

Other expenses

10,396

11,474

13,209

14,651

10,786

9,665

10,696

9,660

Total noninterest expense

35,009

36,915

34,892

37,347

34,726

33,473

33,359

38,304

Income before income tax expense

50,973

55,438

38,289

31,445

49,773

50,644

50,730

45,644

Income tax expense

12,081

14,092

9,433

8,322

14,317

14,149

13,487

11,895

Net income

38,892

41,346

28,856

23,123

35,456

36,495

37,243

33,749

Per Share Data:

Earnings per weighted average common share, basic

$

1.21

$

1.28

$

0.90

$

0.70

$

1.06

$

1.07

$

1.08

$

0.98

Earnings per weighted average common share, diluted

$

1.21

$

1.28

$

0.90

$

0.70

$

1.06

$

1.07

$

1.08

$

0.98

Weighted average common shares outstanding, basic

32,037,099

32,229,322

32,224,695

32,850,112

33,468,572

34,232,890

34,540,152

34,480,772

Weighted average common shares outstanding, diluted

32,075,175

32,250,885

32,240,825

32,875,508

33,498,681

34,255,889

34,565,253

34,536,236

Actual shares outstanding at period end

31,779,663

32,228,636

32,224,756

32,197,258

33,241,496

33,720,522

34,539,853

34,537,193

Book value per common share at period end

$

39.05

$

37.96

$

36.86

$

36.11

$

35.82

$

35.13

$

34.30

$

33.25

Tangible book value per common share at period end (1)

$

35.74

$

34.70

$

33.62

$

32.86

$

32.67

$

32.02

$

31.25

$

30.20

Dividend per common share

$

0.22

$

0.22

$

0.22

$

0.22

$

0.22

$

0.22

$

0.22

$

Performance Ratios (annualized):

Return on average assets

1.39

%

1.57

%

1.12

%

0.98

%

1.49

%

1.62

%

1.74

%

1.62

%

Return on average common equity

12.53

%

14.46

%

9.84

%

7.81

%

11.78

%

12.09

%

12.81

%

12.12

%

Return on average tangible common equity

13.69

%

15.93

%

10.80

%

8.56

%

12.91

%

13.25

%

14.08

%

13.38

%

Net interest margin

2.98

%

3.08

%

3.26

%

3.49

%

3.49

%

3.72

%

3.91

%

4.02

%

Efficiency ratio (2)

38.34

%

38.10

%

37.18

%

43.83

%

39.71

%

38.34

%

38.04

%

43.87

%

Other Ratios:

Allowance for credit losses to total loans (3)

1.41

%

1.40

%

1.36

%

1.23

%

0.98

%

0.98

%

0.98

%

0.98

%

Allowance for credit losses to total nonperforming loans (4)

179.80

%

189.83

%

184.52

%

201.80

%

151.16

%

127.87

%

192.70

%

173.72

%

Nonperforming loans to total loans (3) (4)

0.79

%

0.74

%

0.74

%

0.61

%

0.65

%

0.76

%

0.51

%

0.56

%

Nonperforming assets to total assets (4)

0.59

%

0.62

%

0.69

%

0.56

%

0.56

%

0.66

%

0.45

%

0.50

%

Net charge-offs (annualized) to average loans (3)

0.28

%

0.26

%

0.36

%

0.12

%

0.16

%

0.08

%

0.08

%

0.19

%

Tier 1 capital (to average assets)

10.31

%

10.82

%

10.63

%

11.33

%

11.62

%

12.19

%

12.66

%

12.49

%

Total capital (to risk weighted assets)

17.04

%

16.72

%

16.33

%

15.44

%

16.20

%

16.08

%

16.36

%

16.22

%

Common equity tier 1 capital (to risk weighted assets)

13.48

%

13.19

%

12.79

%

12.14

%

12.87

%

12.76

%

12.87

%

12.69

%

Tangible common equity ratio (1)

10.31

%

11.18

%

11.17

%

10.70

%

12.22

%

12.13

%

12.60

%

12.59

%

Average Balances (in thousands):

Total assets

$

11,141,826

$

10,473,595

$

10,326,709

$

9,447,663

$

9,426,220

$

8,923,406

$

8,595,523

$

8,455,680

Total earning assets

$

10,872,259

$

10,205,939

$

10,056,500

$

9,176,174

$

9,160,034

$

8,655,196

$

8,328,323

$

8,185,711

Total loans

$

7,896,324

$

7,910,260

$

8,015,751

$

7,650,993

$

7,532,179

$

7,492,816

$

7,260,899

$

7,038,472

Total deposits

$

9,227,733

$

8,591,912

$

8,482,718

$

7,696,764

$

7,716,973

$

7,319,314

$

6,893,981

$

6,987,468

Total borrowings

$

596,307

$

596,472

$

598,463

$

485,948

$

449,432

$

345,464

$

470,214

$

266,209

Total shareholders’ equity

$

1,235,174

$

1,211,145

$

1,179,452

$

1,191,180

$

1,194,337

$

1,197,513

$

1,166,487

$

1,128,869

(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.

(4) Nonperforming loans at September 30 , 2019, includes a $16.5 million loan that was brought current shortly after quarter end.

EAGLE BANCORP, INC CONTACT:
David G. Danielson
240.552.9534