BETHESDA, Md., July 23, 2009 (GLOBE NEWSWIRE) -- Eagle Bancorp, Inc. (the "Company") (Nasdaq:EGBN), the parent company of EagleBank, today announced net income of $2.7 million for the quarter ended June 30, 2009. Net income available to common shareholders was $2.1 million ($0.16 per basic and diluted common share) for the three months ended June 30, 2009, compared to $1.9 million ($0.17 per basic and diluted common share) for the three months ended June 30, 2008, an increase of 11%.
For the six months ended June 30, 2009, the Company's net income was $4.7 million. Net income available to common shareholders was $3.6 million ($0.28 per basic and diluted common share), as compared to $3.5 million ($0.33 per basic common share and $0.32 per diluted common share) for 2008.
"At a time of substantial stress in our financial markets and instability in many banks, we are very pleased to report improved net income, continued deposit and loan growth and improvement in the level of nonperforming assets for Eagle Bancorp, Inc. for the second quarter of 2009. Additionally, Eagle Bancorp and EagleBank remain well capitalized," noted Ronald D. Paul, Chairman, President and Chief Executive Officer of Eagle Bancorp, Inc. Mr. Paul further noted "that EagleBank has remained diligent in meeting the credit needs of its clients throughout its market area which is reflected in the $172 million or 15.1% loan growth over the past 10 months since the acquisition of Fidelity & Trust Financial Corporation ("Fidelity") on August 31, 2008. Over the same time period, total deposits increased $120 million or 10.6%. The continued growth in loans and deposits is a clear sign that the integration of Eagle Bancorp and Fidelity has been successful and 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 months ended June 30, 2009, as compared to the three month period ended June 30, 2008. Both lending and deposit activities showed growth for the three and six months ended June 30, 2009 as compared to the same periods in 2008. Average loans increased 69% and 72% for the three and six months ended June 30, 2009, respectively. Average deposits increased 72% and 74% for the three and six months ended June 30, 2009, respectively. Both periods gains were due in part to the acquisition of Fidelity.
At June 30, 2009, total assets were $1.6 billion compared to $915.8 million at June 30, 2008, a 74% increase. Total deposits amounted to $1.2 billion, at June 30, 2009, a 79% increase over deposits of $698.4 million at June 30, 2008, while total loans increased to $1.3 billion at June 30, 2009, from $795.1 million at June 30, 2008, a 65% increase. Total borrowed funds, which include customer repurchase agreements, increased to $174.3 million at June 30, 2009 from $127.7 million at June 30, 2008, a 37% increase.
Mr. Paul added "In spite of uncertainty in the financial markets and a difficult interest rate environment, wherein the Federal Reserve continues to inject liquidity into financial markets to keep interest rates at very low levels, the Company maintained a strong net interest margin for the second quarter of 2009 of 3.91%, which was considerably higher than the net interest margin in the first quarter of 2009 of 3.76%."
At June 30, 2009, the Company's level of nonperforming assets of $34.1 million, representing 2.14% of total assets, was substantially lower than the $49.8 million of nonperforming assets or 3.33% of total assets, at March 31, 2009 and was higher as compared to the $26.4 million of nonperforming assets or 1.76% of total assets, at December 31, 2008. The March 31, 2009 level of nonperforming assets amount was elevated in large part due to one loan of approximately $10.9 million which was brought current in April by the borrower. During 2009 the Company has been highly pro-active in addressing existing and potential problem loans resulting from a weaker economy, which has resulted in a much improved level of nonperforming assets at June 30, 2009 as compared to March 31, 2009. 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 1.50% of total loans at June 30, 2009 is adequate to absorb potential credit losses in the loan portfolio at that date. At June 30, 2009, the Company held $3.1 million of Other Real Estate Owned ("OREO") as compared to $909 thousand at December 31, 2008 and no OREO at June 30, 2008.
For the three months ended June 30, 2009, the Company reported an annualized return on average assets of 0.70% as compared to 0.56% for the three months ended March 31, 2009 and 0.84% for the three months ended June 30, 2008. The annualized return on average common equity for the most recent quarter was 7.71%, as compared to 5.87% for the three months ended March 31, 2009 and 8.81% for the three months ended June 30, 2008. The higher ratios for the second quarter of 2009 are due in part to investment gains amounting to $1.4 million. These gains were the result of asset/liability management decisions 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. From a recurring or operating standpoint, investment gains realized were offset by a special deposit insurance premium assessment imposed on all banks by the FDIC in the second quarter of 2009, which has a pretax cost to the Company of $723 thousand, and to a one-time payment of $224 thousand upon termination of a former director's fee agreement. Taken together, these three non-recurring items positively impacted second quarter earnings by $274 thousand after tax or $0.02 per basic and diluted common shares.
Net interest income increased 56% for the three months ended June 30, 2009 over 2008, as the effect of favorable balance sheet growth was partially offset by a decline (43 basis points) in the net interest margin over the past twelve months. For the three months ended June 30, 2009, the net interest margin was 3.91% as compared to 4.34% for the three months ended June 30, 2008. The Company's net interest margin for the second quarter of 2009 improved by 15 basis points to 3.91% over the net interest margin for the first quarter of 2009 of 3.76%, as both pricing of new loans and the cost of funds was managed aggressively. Margin compression, reflecting declines in market interest rates on earning assets resulting from Federal Reserve activities which have not been matched by comparable declines in rates on interest bearing liabilities, has been challenging the banking industry. Additionally, the Company's issuance of $12.15 million of subordinated notes in the third quarter of 2008 caused an additional category of interest expense which did not exist in the second quarter of 2008. The Company's net interest margin remains favorable to peer banking companies.
The provision for credit losses was $1.7 million for the three months ended June 30, 2009 as compared to $814 thousand for the three months ended June 30, 2008. The higher provisioning in the second quarter of 2009 as compared to the second quarter of 2008 is primarily attributable to higher levels of loan growth in the second quarter of 2009 as compared to the same period in 2008 ($45.4 million as compared to $35.6 million), increases in specific reserves for problem and potential problem loans, and net charge-offs in the second quarter of 2009 of 0.35% of average loans as compared to the second quarter of 2008 of 0.20%. The provision for credit losses was $3.3 million for the first six months of 2009 as compared to $1.5 million in 2008. The higher provisioning in the first six 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.
At June 30, 2009 the allowance for credit losses represented 1.50% of loans outstanding, unchanged from the allowance percentage at March 31, 2009. The 1.50% allowance represents an increase as compared to 1.45% at December 31, 2008 and 1.15% at June 30, 2008. The higher allowance percentage at June 30, 2009 as compared to December 31, 2008 and June 30, 2008 resulted primarily from increases in reserves for problem loans and to the acquisition of the loan portfolio of Fidelity whose allowance for credit losses was approximately $7.5 million or 2.10% of loans outstanding at the date of the acquisition on August 31, 2008.
At June 30, 2009, the allowance for credit losses represented 63% of nonperforming loans as compared to 41% at March 31, 2009 and 79% at June 30, 2008. The lower coverage ratio (allowance for credit losses to total nonperforming loans) at June 30, 2009 as compared to June 30, 2008 is reflective of impaired loans acquired from Fidelity (approximately $12.6 million, or 41% of nonperforming loans) which in accordance with generally accepted accounting principles, are carried at fair value, without any allowance attributable to pre-acquisition deterioration. Excluding these impaired loans carried at fair value, the pro-forma coverage ratio of the allowance to nonperforming loans is 107%.
For the three months ended June 30, 2009, the Company recorded net charge-offs of $1.1 million as compared to $393 thousand of net charge-offs for the three months ended June 30, 2008. Net charge-offs in the second quarter of 2009 were attributable to charge-offs in commercial and industrial loans ($795 thousand), consumer loans ($124 thousand), and commercial real estate investment property loans ($187 thousand), and real estate owner occupied commercial loans ($32 thousand).
For the six months ended June 30, 2009 net charge-offs totaled $2.1 million versus $418 thousand for the six months ended June 30, 2008. Net charge-offs in the six months ended June 30, 2009 were attributable to charge-offs in the unguaranteed portion of SBA loans ($202 thousand), commercial and industrial loans ($1.5 million), consumer loans ($124 thousand), and commercial real estate investment property loans ($187 thousand) and real estate owner occupied commercial loans ($32 thousand).
The ratio of nonperforming loans to total loans improved significantly to 2.36% of total loans at June 30, 2009 as compared to 3.67% of total loans at March 31, 2009. Total nonperforming loans were $31.0 million at June 30, 2009 as compared to $46.5 million at March 31, 2009, a decline of $15.5 million. This decline largely reflects one loan of approximately $10.9 million which was returned to current status during the second quarter and to a reduction of $4.6 million during the second quarter of 2009 in other nonperforming loans. The ratio of nonperforming loans to total loans at June 30, 2009 was elevated as compared to nonperforming loans to total loans at June 30, 2008 of 1.45% or $11.6 million. The increase in nonperforming loans year over year was primarily due to the loans acquired from Fidelity totaling approximately $15.7 million.
Noninterest income for the three months ended June 30, 2009 increased to $3.1 million from $970 thousand for the three months ended June 30, 2008, a 220% increase. This increase was due primarily to higher service charges on deposit accounts of $233 thousand, gains realized on the sale of residential and SBA loans of $375 thousand, and gains realized on the investment securities portfolio of $1.4 million. As noted earlier, investment gains realized in the second quarter of 2009 were the result of asset/liability management decisions 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. Increased gains from mortgage banking activities in the second quarter of 2009 reflect higher levels of mortgage refinancing given lower market interest rates.
Noninterest expenses were $11.6 million for the three months ended June 30, 2009, as compared to $6.5 million for the three months ended June 30, 2008, a 77% increase. The Fidelity acquisition increased the size of the organization resulting in higher staff levels and related personnel costs of $1.4 million, increased occupancy costs of $724 thousand, and higher data processing of $172 thousand. In addition, higher costs were incurred for marketing and advertising of $128 thousand, legal, accounting and professional fees of $549 thousand, and FDIC insurance and regulatory fees increased $1.4 million. Other expenses increased $715 thousand primarily due to $155 thousand in OREO expenses, and the $224 thousand director fee agreement termination payment. The efficiency ratio, which measures the ratio of noninterest expense to total revenue, was improved at 66.42% for the second quarter of 2009, as compared to 69.10% for the first quarter of 2009 and 72.54% for the fourth quarter of 2008. For the six months ended June 30, 2009; the efficiency ratio was 67.66% as compared to 64.50% for the six months ended June 30, 2008. The Company is placing additional emphasis on noninterest expense management.
For the six months ended June 30, 2009, the Company reported an annualized return on average assets of 0.63% as compared to 0.81% for the first six months of 2008, while the annualized return on average common equity was 6.81% in 2009, as compared to 8.40% for the same six month period in 2008. Declines in these ratios were due primarily to declines in the net interest margins, which factor is affecting all financial institutions, and to substantially higher provisions for loan losses.
For the first six months of 2009, net interest income increased 56% over the same period for 2008. As noted above, average loans increased 72% and average deposits increased by 74%. Both periods gains were due in part to the acquisition of Fidelity completed August 31, 2008. The net interest margin was 3.83% as compared to 4.26% for the first six months in 2008, as the effects of a steep decline in market interest rates impacted the Company. However, as mentioned above, the Company believes it has managed this very significant decline in market interest rates well and currently has a favorable net interest margin as compared to peer banking companies.
Noninterest income for the first six months of 2009 was $4.5 million compared to $1.9 million in the first six months of 2008, an increase of 137%. This increase was due primarily to higher service charges on deposit accounts of $542 thousand, gains realized on the sale of residential and SBA loans of $379 thousand, and gains realized on the investment securities portfolio of $1.5 million, earlier noted and discussed.
Noninterest expenses were $21.9 million for the first six months of 2009, as compared to $12.7 million for 2008, a 72% 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 $3.1 million, increased occupancy costs of $1.5 million, and data processing of $379 thousand. In addition, higher costs were incurred for marketing and advertising of $362 thousand, legal, accounting and professional fees of $969 thousand, and FDIC insurance and regulatory fees of $1.7 million which includes the special FDIC assessment of approximately $723 thousand recorded in the second quarter of 2009. Other expenses increased $1.1 million primarily due to $161 thousand in OREO expenses, the $224 thousand director fee agreement termination payment, and $744 thousand in general and administrative costs due to the growth of the organization subsequent to the Fidelity acquisition.
By all regulatory measures, the Company and EagleBank were well capitalized at June 30, 2009. On May 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). The Company is regularly reviewing its capital needs and the availability, costs and benefits of capital alternatives in the marketplace. At June 30, 2009, Eagle Bancorp had a total risk based capital ratio of 12.05%, a Tier 1 risk based capital ratio of 9.91%, and a tangible common equity capital ratio of 6.58%.
The financial information which follows on the following pages provides more detail on the Company's performance for the six and three months ended June 30, 2009 as compared to the six and three months ended June 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").
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
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. 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)
Six Months Ended Three Months Ended
June 30, June 30,
---------------------- ----------------------
2009 2008 2009 2008
Income Statements: (Unaudited) (Unaudited) (Unaudited) (Unaudited)
------------------
Total interest income $ 40,499 $ 28,009 $ 20,432 $ 13,995
Total interest expense 12,716 10,167 6,112 4,753
---------- ---------- ---------- ----------
Net interest income 27,783 17,842 14,320 9,242
Provision for credit
losses 3,284 1,534 1,718 814
---------- ---------- ---------- ----------
Net interest income
after provision for
credit losses 24,499 16,308 12,602 8,428
---------- ---------- ---------- ----------
Noninterest income
(before investment
gains) 2,998 1,900 1,698 970
Investment gains 1,537 10 1,405 --
---------- ---------- ---------- ----------
Total noninterest
income 4,535 1,910 3,103 970
---------- ---------- ---------- ----------
Total noninterest
expense 21,866 12,740 11,573 6,532
---------- ---------- ---------- ----------
Income before income
tax expense 7,168 5,478 4,132 2,866
Income tax expense 2,442 1,972 1,481 1,011
---------- ---------- ---------- ----------
Net income 4,726 3,506 2,651 1,855
Preferred stock
dividends and discount
accretion 1,172 -- 589 --
---------- ---------- ---------- ----------
Net Income Available to
Common Shareholders $ 3,554 $ 3,506 $ 2,062 $ 1,855
---------- ---------- ---------- ----------
Per Share Data (1):
-------------------
Earnings per weighted
average common share,
basic $ 0.28 $ 0.33 $ 0.16 $ 0.17
Earnings per weighted
average common share,
diluted $ 0.28 $ 0.32 $ 0.16 $ 0.17
Weighted average common
shares outstanding,
basic 12,746,632 10,788,108 12,750,496 10,816,857
Weighted average
common shares
outstanding,
diluted 12,817,061 10,918,967 12,887,964 10,896,766
Actual shares
outstanding 12,763,940 10,826,828 12,763,940 10,826,828
Book value per common
share at period end $ 8.52 $ 7.78 $ 8.52 $ 7.78
Tangible book value
per common share at
period end $ 8.18 $ 7.76 $ 8.18 $ 7.76
Dividend per common
share $ -- $ 0.1091 $ -- $ 0.0545
Performance Ratios
(annualized):
------------------
Return on average
assets 0.63% 0.81% 0.70% 0.84%
Return on average
common equity 6.81% 8.40% 7.71% 8.81%
Net interest margin 3.83% 4.26% 3.91% 4.34%
Efficiency ratio(2) 67.66% 64.50% 66.42% 63.96%
Other Ratios:
-------------
Allowance for credit
losses to total loans 1.50% 1.15% 1.50% 1.15%
Allowance for credit
losses to total
nonperforming loans 63.40% 79.23% 63.40% 79.23%
Allowance for credit
losses to total
nonperforming assets 57.67% 79.23% 57.67% 79.23%
Nonperforming loans to
total loans 2.36% 1.45% 2.36% 1.45%
Nonperforming assets
to total assets 2.14% 1.26% 2.14% 1.26%
Net charge-offs
(annualized) to
average loans 0.32% 0.11% 0.35% 0.20%
Average common equity
to average assets 6.95% 9.59% 7.04% 9.50%
Tier 1 leverage ratio 8.96% 9.43% 8.96% 9.43%
Tier 1 risk based
capital ratio 9.91% 9.74% 9.91% 9.74%
Total risk based
capital ratio 12.05% 10.80% 12.05% 10.80%
Tangible common equity
to tangible assets 6.58% 9.17% 6.58% 9.17%
Loan Balances -Period
End (in thousands):
---------------------
Commercial and
Industrial $ 317,657 $ 161,047 $ 317,657 $ 161,047
Real estate owner
occupied - commercial $ 191,850 $ 129,978 $ 191,850 $ 129,978
Real estate -
commercial $ 427,622 $ 267,195 $ 427,622 $ 267,195
Real estate -
residential mortgage $ 8,678 $ 2,022 $ 8,678 $ 2,022
Construction -
commercial and
residential $ 274,299 $ 167,988 $ 274,299 $ 167,988
Home equity $ 85,336 $ 59,636 $ 85,336 $ 59,636
Other consumer $ 7,952 $ 7,236 $ 7,952 $ 7,236
Average Balances (in
thousands):
--------------------
Total assets $1,508,125 $ 875,521 $1,519,091 $ 891,267
Total earning assets $1,460,940 $ 841,348 $1,468,296 $ 857,232
Total loans(3) $1,289,823 $ 750,768 $1,297,634 $ 770,034
Total deposits $1,161,123 $ 669,128 $1,164,977 $ 683,151
Total borrowings $ 194,798 $ 117,659 $ 199,479 $ 118,634
Total stockholders'
equity $ 143,428 $ 83,954 $ 145,492 $ 84,708
(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)
June 30, Dec. 31, June 30,
2009 2008 2008
(Unaudited) (Audited) (Unaudited)
---------- ---------- ----------
Assets
Cash and due from banks $ 28,187 $ 27,157 $ 18,565
Federal funds sold 27,044 191 63
Interest bearing deposits with
banks and other short term
investments 2,426 2,489 1,391
Investment securities available
for sale, at fair value 177,710 169,079 79,585
Loans held for sale 10,502 2,718 1,484
Loans 1,313,394 1,265,640 795,102
Less: Allowance for credit losses (19,650) (18,403) (9,154)
---------- ---------- ----------
Loans, net 1,293,744 1,247,237 785,948
Premises and equipment, net 9,245 9,666 6,561
Deferred income taxes 12,404 11,106 4,362
Bank owned life insurance 12,680 12,450 12,217
Other real estate owned 3,081 909 --
Other assets 13,183 13,825 5,624
---------- ---------- ----------
Total Assets $1,590,206 $1,496,827 $ 915,800
========== ========== ==========
Liabilities and Stockholders'
Equity
Noninterest bearing deposits $ 231,171 $ 223,580 $ 143,335
Interest bearing transaction 55,624 54,801 55,017
Savings and money market 375,007 271,791 187,275
Time, $100,000 or more 284,595 249,516 171,127
Other time 301,833 329,692 141,687
---------- ---------- ----------
Total deposits 1,248,230 1,129,380 698,441
Customer repurchase agreements and
federal funds purchased 112,163 98,802 62,710
Other short-term borrowings 30,000 55,000 15,000
Long-term borrowings 32,150 62,150 50,000
Other liabilities 22,415 9,124 5,436
---------- ---------- ----------
Total liabilities 1,444,958 1,354,456 831,587
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 $1,725,
$1,892, and $0, respectively, net 36,458 36,312 --
Common stock, $0.01 par value;
shares authorized 50,000,000,
50,000,000 and 50,000,000; issued
and outstanding 12,763,940,
12,714,355, and 10,826,828 127 127 98
Warrants 1,892 1,892 --
Additional paid in capital 77,099 76,822 53,401
Retained earnings 28,575 24,866 30,523
Accumulated other comprehensive
income 1,097 2,352 191
---------- ---------- ----------
Total stockholders' equity 145,248 142,371 84,213
---------- ---------- ----------
Total Liabilities and
Stockholders' Equity $1,590,206 $1,496,827 $ 915,800
========== ========== ==========
EAGLE BANCORP, INC.
Consolidated Statements of Operations
For the Six and Three Month Periods Ended June 30, 2009 and 2008
(Unaudited)
(dollars in thousands, except per share data)
Six Months Ended Three Months Ended
June 30, June 30,
------------------ ------------------
Interest Income 2009 2008 2009 2008
------------------ ------------------
Interest and fees on loans $ 36,683 $ 25,824 $ 18,570 $ 12,944
Taxable interest and dividends
on investment securities 3,768 2,070 1,839 1,018
Interest on balances with
other banks and short-term
investments 37 57 18 14
Interest on federal funds sold 11 58 5 19
-------- -------- -------- --------
Total interest income 40,499 28,009 20,432 13,995
-------- -------- -------- --------
Interest Expense
Interest on deposits 10,609 8,336 5,052 3,908
Interest on customer
repurchase agreements and
federal funds purchased 574 695 293 301
Interest on short-term
borrowings 158 298 118 108
Interest on long-term
borrowings 1,375 838 649 436
-------- -------- -------- --------
Total interest expense 12,716 10,167 6,112 4,753
-------- -------- -------- --------
Net Interest Income 27,783 17,842 14,320 9,242
Provision for Credit Losses 3,284 1,534 1,718 814
-------- -------- -------- --------
Net Interest Income After
Provision For Credit Losses 24,499 16,308 12,602 8,428
-------- -------- -------- --------
Noninterest Income
Service charges on deposits 1,455 913 717 484
Gain on sale of loans 658 279 527 152
Gain on sale of investment
securities 1,537 10 1,405 --
Increase in the cash surrender
value of bank owned life
insurance 230 233 116 117
Other income 655 475 338 217
-------- -------- -------- --------
Total noninterest income 4,535 1,910 3,103 970
-------- -------- -------- --------
Noninterest Expense
Salaries and employee benefits 10,349 7,286 5,044 3,646
Premises and equipment 3,702 2,183 1,827 1,103
Marketing and advertising 557 195 242 114
Data processing 1,122 743 575 403
Legal, accounting and
professional fees 1,377 408 787 238
FDIC insurance and regulatory
assessments 1,985 280 1,509 154
Other expenses 2,774 1,645 1,589 874
-------- -------- -------- --------
Total noninterest expense 21,866 12,740 11,573 6,532
-------- -------- -------- --------
Income Before Income Tax
Expense 7,168 5,478 4,132 2,866
Income Tax Expense 2,442 1,972 1,481 1,011
-------- -------- -------- --------
Net Income 4,726 3,506 2,651 1,855
Preferred Stock Dividends and
Discount Accretion 1,172 -- 589 --
-------- -------- -------- --------
Net Income Available to Common
Shareholders $ 3,554 $ 3,506 $ 2,062 $ 1,855
======== ======== ======== ========
Earnings Per Common Share
Basic $ 0.28 $ 0.33 $ 0.16 $ 0.17
Diluted $ 0.28 $ 0.32 $ 0.16 $ 0.17
Dividends Declared Per Common
Share $ -- $ 0.1091 $ -- $ 0.0545
EAGLE BANCORP, INC.
Average Balances, Interest Yields And Rates, And Net Interest Margin
(Unaudited)
(dollars in thousands)
Three Months Ended June 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 $ 2,450 $ 18 2.95% $ 1,854 $ 14 3.04%
Loans(1)(2)(3) 1,297,634 18,570 5.74% 770,034 12,944 6.76%
Investment
securities
available for
sale(3) 159,064 1,839 4.64% 81,721 1,018 5.01%
Federal funds sold 9,148 5 0.22% 3,623 19 2.11%
------------------- -----------------
Total interest
earning assets 1,468,296 20,432 5.58% 857,232 13,995 6.57%
------------------- -----------------
Total noninterest
earning assets 31,722 42,834
Less: allowance
for credit losses 19,073 8,799
---------- --------
Total noninterest
earning assets 50,795 34,035
---------- --------
TOTAL ASSETS $1,519,091 $891,267
========== ========
LIABILITIES AND
STOCKHOLDERS'
EQUITY
Interest bearing
liabilities:
Interest bearing
transaction $ 50,709 $ 41 0.32% $ 47,794 $ 95 0.80%
Savings and money
market 326,344 1,325 1.63% 195,372 860 1.77%
Time deposits 564,193 3,686 2.62% 301,638 2,953 3.94%
Customer
repurchase
agreements and
federal funds
purchased 107,933 293 1.09% 54,887 301 2.21%
Other short-term
borrowings 39,286 118 1.20% 18,692 108 2.32%
Long-term
borrowings 52,260 649 4.99% 45,055 436 3.89%
------------------- -----------------
Total interest
bearing
liabilities 1,140,725 6,112 2.15% 663,438 4,753 2.88%
------------------- -----------------
Noninterest
bearing
liabilities:
Noninterest
bearing demand 223,732 138,347
Other liabilities 9,142 4,774
---------- --------
Total noninterest
bearing
liabilities 232,874 143,121
----------
Stockholders'
equity 145,492 84,708
---------- --------
TOTAL LIABILITIES
AND
STOCKHOLDERS'
EQUITY $1,519,091 $891,267
========== ========
Net interest
income $14,320 $ 9,242
======= =======
Net interest
spread 3.43% 3.69%
Net interest
margin 3.91% 4.34%
(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 $439 thousand and $371 thousand for the
three months ended June 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)
Six Months Ended June 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 $ 2,605 $ 37 2.79% $ 2,974 $ 57 3.85%
Loans(1)(2)(3) 1,289,823 36,683 5.74% 750,768 25,824 6.92%
Investment
securities
available for
sale(3) 159,355 3,768 4.77% 82,874 2,070 5.02%
Federal funds sold 9,157 11 0.24% 4,732 58 2.46%
------------------- -----------------
Total interest
earning assets 1,460,940 40,499 5.59% 841,348 28,009 6.70%
------------------- ------------------
Total noninterest
earning assets 28,318 42,643
Less: allowance
for credit losses 18,867 8,470
---------- --------
Total noninterest
earning assets 47,185 34,173
---------- --------
TOTAL ASSETS $1,508,125 $875,521
========== ========
LIABILITIES AND
STOCKHOLDERS'
EQUITY
Interest bearing
liabilities:
Interest bearing
transaction $ 49,208 $ 72 0.30% $ 45,968 $ 160 0.70%
Savings and money
market 310,038 2,414 1.57% 190,480 1,927 2.03%
Time deposits 582,713 8,123 2.81% 295,302 6,249 4.26%
Customer
repurchase
agreements and
federal funds
purchased 103,283 574 1.12% 54,950 695 2.54%
Other short-term
borrowings 34,337 158 0.93% 20,346 298 2.95%
Long-term
borrowings 57,178 1,375 4.85% 42,363 838 3.98%
------------------- -----------------
Total interest
bearing
liabilities 1,136,757 12,716 2.26% 649,409 10,167 3.15%
------------------- -----------------
Noninterest
bearing
liabilities:
Noninterest
bearing demand 219,164 137,378
Other liabilities 8,776 4,780
---------- --------
Total noninterest
bearing
liabilities 227,940 142,158
---------- --------
Stockholders'
equity 143,428 83,954
---------- --------
TOTAL LIABILITIES
AND
STOCKHOLDERS'
EQUITY $1,508,125 $875,521
========== ========
Net interest
income $27,783 $17,842
======= =======
Net interest
spread 3.33% 3.55%
Net interest
margin 3.83% 4.26%
(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 $872 thousand and $668 thousand for the
six months ended June 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
----------------------------------------------
June 30, March 31, Dec. 31, Sept. 30,
Income Statements: 2009 2009 2008 2008
------------------
Total interest income $ 20,432 $ 20,067 $ 20,904 $ 16,744
Total interest expense 6,112 6,604 7,680 5,829
---------- ---------- ---------- ----------
Net interest income 14,320 13,463 13,224 10,915
Provision for credit
losses 1,718 1,566 1,450 995
---------- ---------- ---------- ----------
Net interest income
after provision for
credit losses 12,602 11,897 11,774 9,920
---------- ---------- ---------- ----------
Noninterest income
(before investment
gains or losses) 1,698 1,300 1,314 1,150
Investment gains
(losses) 1,405 132 (53) 45
---------- ---------- ---------- ----------
Total noninterest
income 3,103 1,432 1,261 1,195
---------- ---------- ---------- ----------
Salaries and employee
benefits 5,044 5,305 5,270 4,172
Premises and equipment 1,827 1,875 1,861 1,380
Marketing and
advertising 242 315 734 125
Other expenses 4,460 2,798 2,642 1,893
---------- ---------- ---------- ----------
Total noninterest
expense 11,573 10,293 10,507 7,570
---------- ---------- ---------- ----------
Income before income
tax expense 4,132 3,036 2,528 3,545
Income tax expense 1,481 961 867 1,284
---------- ---------- ---------- ----------
Net income 2,651 2,075 1,661 2,261
Preferred stock
dividends and discount
accretion 589 583 177 --
---------- ---------- ---------- ----------
Net Income Available to
Common Shareholders $ 2,062 $ 1,492 $ 1,484 $ 2,261
========== ========== ========== ==========
Per Share Data(1):
------------------
Earnings per weighted
average common share,
basic $ 0.16 $ 0.12 $ 0.12 $ 0.20
Earnings per weighted
average common share,
diluted $ 0.16 $ 0.12 $ 0.12 $ 0.19
Weighted average common
shares outstanding,
basic 12,750,496 12,742,725 12,703,425 11,482,401
Weighted average common
shares outstanding,
diluted 12,887,964 12,793,974 12,777,262 11,576,095
Actual shares
outstanding 12,763,940 12,745,118 12,714,355 12,686,128
Book value per common
share at period end $ 8.52 $ 8.49 $ 8.34 $ 7.93
Dividend per common
share $ -- $ -- $ -- $ --
Performance Ratios
(annualized):
------------------
Return on average
assets 0.70% 0.56% 0.46% 0.82%
Return on average
common equity 7.71% 5.87% 5.21% 9.97%
Net interest margin 3.91% 3.76% 3.74% 4.11%
Efficiency ratio(2) 66.42% 69.10% 72.54% 62.51%
Other Ratios:
-------------
Allowance for credit
losses to total loans 1.50% 1.50% 1.45% 1.46%
Nonperforming loans to
total loans 2.36% 3.67% 2.01% 1.79%
Nonperforming assets to
total assets 2.14% 3.33% 1.76% 1.45%
Net charge-offs
(annualized) to
average loans 0.35% 0.29% 0.05% 0.27%
Average common equity
to average assets 7.04% 6.89% 7.00% 8.21%
Tier 1 leverage ratio 8.96% 9.06% 9.39% 8.79%
Tier 1 risk based
capital ratio 9.91% 10.26% 9.97% 7.55%
Total risk based
capital ratio 12.05% 12.43% 12.11% 9.75%
Average Balances (in
thousands):
--------------------
Total assets $1,519,091 $1,497,036 $1,450,553 $1,098,285
Total earning assets $1,468,296 $1,453,527 $1,406,422 $1,057,542
Total loans(3) $1,297,634 $1,281,950 $1,218,067 $ 922,224
Total deposits $1,164,977 $1,157,226 $1,152,378 $ 863,931
Total borrowings $ 199,479 $ 190,065 $ 177,954 $ 138,374
Total stockholders'
equity $ 145,492 $ 141,341 $ 113,245 $ 90,223
Three Months Ended
----------------------------------------------
June 30, March 31, Dec. 31, Sept. 30,
Income Statements: 2008 2008 2007 2007
------------------
Total interest income $ 13,995 $ 14,014 $ 14,879 $ 14,355
Total interest expense 4,753 5,414 6,036 6,017
---------- ---------- ---------- ----------
Net interest income 9,242 8,600 8,843 8,338
Provision for credit
losses 814 720 883 421
---------- ---------- ---------- ----------
Net interest income
after provision for
credit losses 8,428 7,880 7,960 7,917
---------- ---------- ---------- ----------
Noninterest income
(before investment
gains or losses) 970 930 1,961 1,032
Investment gains
(losses) -- 10 (1) --
---------- ---------- ---------- ----------
Total noninterest
income 970 940 1,960 1,032
---------- ---------- ---------- ----------
Salaries and employee
benefits 3,646 3,640 3,784 3,577
Premises and equipment 1,103 1,080 1,180 1,186
Marketing and
advertising 114 81 109 134
Other expenses 1,669 1,407 1,395 1,276
---------- ---------- ---------- ----------
Total noninterest
expense 6,532 6,208 6,468 6,173
---------- ---------- ---------- ----------
Income before income
tax expense 2,866 2,612 3,452 2,776
Income tax expense 1,011 961 1,166 1,021
---------- ---------- ---------- ----------
Net income 1,855 1,651 2,286 1,755
Preferred stock
dividends and discount
accretion -- -- -- --
---------- ---------- ---------- ----------
Net Income Available to
Common Shareholders $ 1,855 $ 1,651 $ 2,286 $ 1,755
========== ========== ========== ==========
Per Share Data (1):
-------------------
Earnings per weighted
average common share,
basic $ 0.17 $ 0.15 $ 0.22 $ 0.16
Earnings per weighted
average common share,
diluted $ 0.17 $ 0.15 $ 0.21 $ 0.16
Weighted average common
shares outstanding,
basic 10,816,857 10,759,361 10,658,364 10,538,869
Weighted average common
shares outstanding,
diluted 10,896,766 10,927,392 10,873,180 10,822,376
Actual shares
outstanding 10,826,828 10,769,277 10,693,447 10,542,432
Book value per common
share at period end $ 7.78 $ 7.76 $ 7.59 $ 7.40
Dividend per common
share $ 0.05 $ 0.05 $ 0.05 $ 0.05
Performance Ratios
(annualized):
------------------
Return on average
assets 0.84% 0.77% 1.06% 0.88%
Return on average
common equity 8.81% 7.98% 11.33% 9.09%
Net interest margin 4.34% 4.19% 4.30% 4.34%
Efficiency ratio(2) 63.96% 65.07% 59.87% 65.88%
Other Ratios:
-------------
Allowance for credit
losses to total loans 1.15% 1.15% 1.12% 1.09%
Nonperforming loans to
total loans 1.45% 1.54% 0.74% 0.82%
Nonperforming assets to
total assets 1.26% 1.30% 0.63% 0.69%
Net charge-offs
(annualized) to
average loans 0.20% 0.01% 0.15% 0.18%
Average common equity
to average assets 9.51% 9.67% 9.39% 9.69%
Tier 1 leverage ratio 9.43% 9.55% 9.46% 9.78%
Tier 1 risk based
capital ratio 9.74% 9.90% 10.20% 10.87%
Total risk based
capital ratio 10.80% 10.95% 11.21% 11.90%
Average Balances (in
thousands):
--------------------
Total assets $ 891,012 $ 860,030 $ 852,243 $ 799,242
Total earning assets $ 857,232 $ 825,463 $ 816,187 $ 761,378
Total loans(3) $ 770,034 $ 731,501 $ 687,030 $ 665,222
Total deposits $ 683,151 $ 655,105 $ 659,355 $ 636,573
Total borrowings $ 118,634 $ 116,684 $ 107,697 $ 80,951
Total stockholders'
equity $ 84,708 $ 83,200 $ 80,058 $ 77,469
(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