Eagle Bancorp, Inc. Announces Net Income for Second Quarter 2022 of $25.2 Million or $0.78 Per Diluted Share
Eagle Bancorp, Inc. (NASDAQ: EGBN) reported a net income of $25.2 million for Q2 2022, a 44.9% decrease from the prior quarter's $45.7 million and a 47.5% drop from $48.0 million year-over-year. Earnings per diluted share fell to $0.78 from $1.42 in Q1 2022. The decline was attributed to a $13.4 million expense related to resolving an SEC investigation. Despite these challenges, loans increased by $40.9 million, marking the third consecutive quarterly rise, while a quarterly dividend of $0.45 per share was declared, a 12.5% increase from the previous quarter.
- Loans increased by $40.9 million, continuing a three-quarter growth trend.
- Declared quarterly dividend of $0.45 per share, up 12.5% from the previous quarter.
- Adjusted net income was $38.6 million without SEC-related expenses.
- Net income dropped 44.9% from the previous quarter, indicating significant earnings pressure.
- Expenses increased by $13.4 million due to SEC investigation settlement, impacting overall profitability.
- Noninterest income fell to $5.6 million, a decrease of 25.3% from the prior quarter.
BETHESDA, Md., July 20, 2022 (GLOBE NEWSWIRE) -- Eagle Bancorp, Inc. (the "Company") (NASDAQ: EGBN), the parent company of EagleBank (the "Bank"), today announced net income of
The decrease in earnings of
Second Quarter 2022 Highlights
- The Company reached an agreement in principle with the SEC to resolve the previously disclosed investigation with respect to the Company. Under the terms of the settlement, the Company would pay a civil money penalty and disgorgement, plus prejudgment interest, in an aggregate amount of
$13.4 million , which the Company accrued as non-tax deductible expenses during the quarter. Absent the agreement in principle with the SEC, adjusted net income (a non-GAAP measure) was$38.6 million 2 and adjusted earnings per share (a non-GAAP measure), was$1.20 .2 - The Company declared a quarterly dividend of
$0.45 per share, an increase of$0.05 over the prior quarter. - Loans increased by
$40.9 million from the prior quarter-end. This was the third consecutive quarterly increase. - There was a
$495 thousand provision for credit losses on loans. This was the first provision for credit losses after five consecutive quarterly reversals. - The increase in the overall interest rate environment continued to create unrealized losses in securities available-for-sale ("AFS"), which are recorded in accumulated other comprehensive income (loss). As a result, combined with the reduction in net income, shareholders' equity, book value per share and tangible book value per share declined from the prior quarter-end.
| (Dollars in thousands, except per share) | As Of or For the Three Months Ended | Percent Change | |||||||||||||||
| June 30, | March 31, | June 30, | Q2-22 | Q2-22 | |||||||||||||
| 2022 | 2022 | 2021 | vs. Q1-22 | vs. Q2 21 | |||||||||||||
| Income Statement | |||||||||||||||||
| Net income | $ | 25,220 | $ | 45,744 | $ | 47,993 | (44.9 | )% | (47.5 | )% | |||||||
| Net income per diluted share | $ | 0.78 | $ | 1.42 | $ | 1.50 | (45.1 | )% | (48.0 | )% | |||||||
| Dividend per common share | $ | 0.45 | $ | 0.40 | $ | 0.35 | 12.5 | % | 28.6 | % | |||||||
| Selected Ratios | |||||||||||||||||
| Return on Average Assets | 0.86 | % | 1.46 | % | 1.68 | % | |||||||||||
| Return on Average Common Equity | 7.89 | % | 13.83 | % | 14.92 | % | |||||||||||
| Return on Average Tangible Common Equity3 | 8.59 | % | 14.99 | % | 16.25 | % | |||||||||||
| Net interest margin | 2.94 | % | 2.65 | % | 3.04 | % | |||||||||||
| Efficiency Ratio1 | 55.87 | % | 35.28 | % | 37.14 | % | |||||||||||
| Balance Sheet | |||||||||||||||||
| Assets | $ | 10,936,448 | $ | 11,227,223 | $ | 10,960,718 | (2.6 | )% | (0.2 | )% | |||||||
| Loans | $ | 7,154,686 | $ | 7,113,807 | $ | 7,259,558 | 0.6 | % | (1.4 | )% | |||||||
| Loans (excluding PPP loans)4 | $ | 7,145,709 | $ | 7,078,063 | $ | 7,021,517 | 1.0 | % | 1.8 | % | |||||||
| Deposits | $ | 9,171,618 | $ | 9,586,259 | $ | 9,019,047 | (4.3 | )% | 1.7 | % | |||||||
| Total Capital (to risk weighted assets) | 15.81 | % | 15.86 | % | 17.98 | % | |||||||||||
| Per Share | |||||||||||||||||
| Book value per share | $ | 39.35 | $ | 39.89 | $ | 40.87 | (1.4 | )% | (3.7 | )% | |||||||
| Tangible book value per share | $ | 36.10 | $ | 36.64 | $ | 37.58 | (1.5 | )% | (3.9 | )% | |||||||
| Asset quality | |||||||||||||||||
| Allowance for credit losses to total loans | 1.02 | % | 1.01 | % | 1.28 | % | |||||||||||
| Nonperforming assets ("NPAs") to total assets | 0.19 | % | 0.23 | % | 0.50 | % | |||||||||||
| Net (recovery) charge-off ratio to avg. loans (annualized) | (0.04 | )% | 0.03 | % | 0.30 | % | |||||||||||
CEO Commentary
Susan G. Riel, President and Chief Executive Officer of Eagle Bancorp, Inc. commented, "The results for the second quarter are encouraging as loan balances increased for a third consecutive quarter and asset quality metrics continue to improve."
"Additionally, our CRE and C&I pipelines remain strong as our lending teams continue to be active in their calling efforts. And on construction lending, even with the successful completion of projects, our unfunded commitments were up slightly to
"For our shareholders, we remain focused on increasing value and returning cash through dividends. At the end of the quarter, our board declared a dividend of
"We once again thank all of our employees for their commitment in serving the needs of our clients and communities. Additionally, we remain committed to a culture of respect, diversity and inclusion in both the workplace and the communities we serve."
Income Statement
- Net interest income was
$82.9 million for the second quarter 2022, compared to$80.5 million for the prior quarter and$84.6 million for the year-ago quarter. The increase in net interest income from the prior quarter was driven by higher average loans for the quarter, higher yield on loans as the overall rate environment increased, and higher rates on excess liquidity due to increased rates on excess reserves as well as deployment into investment securities. The combination of these three factors outpaced the increase in interest expense. - Net interest margin was
2.94% for the second quarter 2022, compared to2.65% for the prior quarter and3.04% for the year-ago quarter. The increase in margin from the prior quarter was primarily attributable to a decrease in the average of low yielding interest earning assets associated with deposit outflows and an increase in average balances on loans and investments that have higher yields. The combined impact led to a greater increase in yield on earning assets over the increase in cost of funds.
- The yield on interest earning assets, which includes the yield on securities, was
3.39% for the second quarter 2022 compared to2.91% for the prior quarter and3.41% for the year-ago quarter. This is an increase of 48 basis points from the prior quarter. - The yield on the loan portfolio was
4.51% for the second quarter 2022, compared to4.35% for the prior quarter and4.79% for the year-ago quarter. The increase of 16 basis points from the prior quarter was primarily due to rates on variable rate loans adjusting upward and higher rates on new loans. Variable rate loans reprice periodically, creating a short lag versus deposit rates on savings and money market accounts which we repriced shortly following the Federal Open Market Committee ("FOMC") announcement in the second quarter. - The cost of funds was
0.45% for second quarter 2022, compared to0.26% for the prior quarter and0.37% for the year-ago quarter. The increase of 19 basis points from the prior quarter was primarily from higher deposit rates paid on savings and money market accounts, offset partially by deposit outflows from savings and money market accounts.
- The yield on interest earning assets, which includes the yield on securities, was
- Pre-provision net revenue ("PPNR"),5 a non-GAAP measure, was
$39.0 million for the second quarter 2022, compared to$56.9 million for the prior quarter and$60.1 million for the year-ago quarter. As a percent of average assets, adjusted PPNR for the second quarter 2022 was1.33% , compared to1.79% for the prior quarter and2.10% for the year-ago quarter. This decrease in both PPNR and PPNR as a percent of average assets from the prior quarter was primarily attributable to the accrual of$13.4 million in noninterest expense in connection with entering into the agreement in principle with the SEC described above and the prior quarter included the accrual reduction of$5.0 million related to share-based compensation awards and deferred compensation for our former CEO and Chairman.
| (Dollars in thousands) | Three Months Ended | Percent Change | |||||||||||||||
| June 30, | March 31, | June 30, | Q2-22 | Q2-22 | |||||||||||||
| 2022 | 2022 | 2021 | vs. Q1-22 | vs. Q2 21 | |||||||||||||
| Net interest income | $ | 82,918 | $ | 80,452 | $ | 84,632 | 3.1 | % | (2.0 | )% | |||||||
| Noninterest income | 5,564 | 7,453 | 10,925 | (25.3 | )% | (49.1 | )% | ||||||||||
| Less: Noninterest expense | (49,438 | ) | (31,012 | ) | (35,494 | ) | 59.4 | % | 39.3 | % | |||||||
| PPNR | $ | 39,044 | $ | 56,893 | $ | 60,063 | (31.4 | )% | (35.0 | )% | |||||||
| Average Assets | $ | 11,701,622 | $ | 12,701,152 | $ | 11,453,080 | (7.9 | )% | 2.2 | % | |||||||
| PPNR to Avg. Assets (non-GAAP) | 1.33 | % | 1.79 | % | 2.10 | % | |||||||||||
- Provision for credit losses on loans was
$495 thousand for the second quarter 2022, compared to a reversal of$2.8 million for the prior quarter and a reversal of$3.9 million for the year-ago quarter. The second quarter 2022 provision was primarily driven by adjustments to the qualitative components of the CECL model owing to the high inflationary environment and the related uncertainty and impacts on the broader economy. This was offset by improvements in asset quality, particularly the release of specific impairment reserves related to the sale of three loans from a single relationship. - Noninterest income was
$5.6 million for the second quarter 2022, as compared to$7.5 million for the prior quarter and$10.9 million for the year-ago quarter. The decline in noninterest income from the prior quarter was primarily due to a decrease in loan fees, Federal Housing Administration trade premiums and gains on sale of residential mortgage loans and Small Business Administration loans.
Residential mortgage loan locked commitments were$92.0 million , down from$136.7 million the prior quarter and down from$248.3 million for the year-ago quarter. As interest rates continued to rise in the second quarter, refinance activity continued to slow resulting in fewer locked loans.
- Noninterest expense was
$49.4 million for the second quarter 2022 compared to$31.0 million for the prior quarter and$35.5 million for the year-ago quarter. The major changes from the prior quarter were as follows:- Other expense includes the accrual of
$13.4 million of non-tax deductible expenses during the quarter to cover the Company's civil money penalty and disgorgement, plus prejudgment interest, in connection with the Company's agreement in principle with the SEC to resolve the previously disclosed investigation with respect to the Company. - Salaries and employee benefits were
$21.8 million , up$4.8 million from the prior quarter. The increase was primarily due to the prior quarter-end including an accrual reduction of$5.0 million related to share-based compensation awards and deferred compensation for our former CEO and Chairman. - Legal, accounting and professional fees were
$2.1 million , up$576 thousand from the prior quarter.
- Other expense includes the accrual of
- Efficiency ratio6 was
55.9% for the second quarter 2022 compared to35.3% for the prior quarter and37.1% for the year-ago quarter. The increase in the efficiency ratio this quarter was primarily driven by the increase in noninterest expense (see noninterest expense section above), as compared to the prior quarter, which had an accrual reduction related to share-based compensation awards and deferred compensation to our former CEO and Chairman. Neither of these items were tax deductible. - Effective income tax rate for the second quarter 2022 was
33.6% , compared to23.4% for the prior quarter and25.8% for the year-ago quarter. The increase in the effective tax rate this quarter was primarily driven by the increase in noninterest expense (see noninterest expense section above), as compared to the prior quarter, which had an accrual reduction related to share-based compensation awards and deferred compensation to our former CEO and Chairman. Neither of these items were tax deductible.
Balance Sheet
- Total assets at June 30, 2022 were
$10.9 billion , down2.6% from a quarter ago and down0.2% from a year ago. The decrease from the prior quarter-end was driven by the utilization of interest-bearing deposits with banks and other short-term investments to satisfy deposit outflows. - Investment securities AFS and Held-to-Maturity ("HTM") had an aggregate balance of
$2.9 billion at June 30, 2022, down1.0% from a quarter ago and up72.4% from a year ago. The decrease from the prior quarter-end was primarily from lower carrying values on AFS securities. Investments purchased during the second quarter of 2022 were primarily agency mortgage backed securities and agency bonds. - Total loans (excluding loans held for sale) were
$7.15 5 billion as of June 30, 2022, up0.6% from a quarter ago and down1.4% from a year ago. Excluding PPP loans, loan balances were$7.14 6 billion as of June 30, 2022, up1.0% from a quarter ago and up1.8% from a year ago.7 The increase in loans, excluding PPP loans, from the prior quarter-end was driven by growth in commercial real estate ("CRE") loans and commercial & industrial loans ("C&I").
| Percent Change | |||||||||||||||||
| (Dollars in thousands) | June 30, | March 31, | June 30, | Q1-22 | Q1-22 | ||||||||||||
| 2022 | 2022 | 2021 | vs. Q4 21 | vs. Q1 21 | |||||||||||||
| Total loans, excluding loans held for sale (GAAP) | $ | 7,154,686 | $ | 7,113,807 | $ | 7,259,558 | 0.6 | % | (1.4 | )% | |||||||
| Less: PPP loans (non-GAAP) | (8,977 | ) | (35,744 | ) | (238,041 | ) | |||||||||||
| Total loans, excluding loans held for sale and PPP loans (non-GAAP) | $ | 7,145,709 | $ | 7,078,063 | $ | 7,021,517 | 1.0 | % | 1.8 | % | |||||||
- Allowance for credit losses was
1.02% of total loans at June 30, 2022, compared to1.01% a quarter ago, and1.28% a year ago. See commentary above in section "Provision for Credit Losses on Loans".
Net charge-off as a percent of average loans (excluding loans held for sale) (on an annualized basis), was a net recovery of0.04% for the second quarter 2022, as compared to a charge-off of0.03% a quarter ago, and0.30% for the year-ago quarter. Net recovery for the quarter was$674 thousand .
- Nonperforming loans and assets: Both nonperforming loans and assets decreased compared to the prior quarter and the year-ago quarter. The decrease was driven primarily by the sale of several nonaccrual notes from one relationship, which exceeded the aggregate balance of three new nonperforming loans. Additionally, one nonperforming property was sold with a small gain.
- Nonperforming loans as a percent of loans were
0.26% at June 30, 2022, compared to0.33% a quarter ago and0.68% a year ago. - Nonperforming assets as a percent of assets were
0.19% at June 30, 2022, compared to0.23% a quarter ago and0.50% a year ago.
- Nonperforming loans as a percent of loans were
- Total deposits were
$9.2 billion at June 30, 2022, down4.3% from a quarter ago and up1.7% from a year ago. The outflow of deposits increased the ratio of loans to deposits up to78% from74% the prior quarter. Most of the outflows were in interest bearing accounts (savings and money market accounts) as average noninterest bearing deposits to average total deposits was37.9% for the second quarter 2022, up from36.1% a quarter ago and33.3% for the year-ago quarter. - Total shareholders’ equity was
$1.3 billion at June 30, 2022, down1.4% from a quarter ago, and down3.4% from a year ago. The decrease in shareholders' equity from the prior quarter-end was primarily due to the continued increase in the overall interest rate environment, which created increased unrealized losses in investment securities available for sale, that are recorded in accumulated other comprehensive income (loss). These reductions to equity were partially offset by earnings (which were negatively impacted by the agreement in principle with the SEC), less dividends declared.
These factors reduced book value and tangible book value from the prior quarter-end:- Book value per share was
$39.35 , down from$39.89 a quarter ago, and down from$40.87 a year ago. - Tangible book value per share8 was
$36.10 , down from$36.64 a quarter ago, and down from$37.58 a year ago.
- Book value per share was
- Dividends: On June 16, 2022, the Board of Directors declared a quarterly cash dividend of
$0.45 per common share payable on July 29, 2022 to shareholders of record on July 11, 2022. - Capital ratios are based on our preliminary analysis for the periods in the table below. We believe that capital ratios for the Company remain strong and substantially in excess of regulatory minimum requirements.
| For the Company | |||||||||||
| Well | |||||||||||
| June 30, | March 31, | June 30, | Capitalized | ||||||||
| 20229 | 2022 | 2021 | Minimum | ||||||||
| Regulatory Ratios | |||||||||||
| Total Capital (to risk weighted assets) | 15.81 | % | 15.86 | % | 17.98 | % | 10.00 | % | |||
| Tier 1 Capital (to risk weighted assets) | 14.68 | % | 14.74 | % | 14.67 | % | 8.00 | % | |||
| Common Equity Tier 1 (to risk weighted assets) | 14.68 | % | 14.74 | % | 14.67 | % | 6.50 | % | |||
| Tier 1 Capital (to average assets) | 10.76 | % | 9.93 | % | 10.65 | % | 5.00 | % | |||
| Common Capital Ratios | |||||||||||
| Common Equity Ratio | 11.54 | % | 11.40 | % | 11.92 | % | — | % | |||
| Tangible Common Equity Ratio | 10.69 | % | 10.57 | % | 11.07 | % | — | % | |||
Legal Update
- The Bank is in advanced discussions with the staff of the Board of Governors of the Federal Reserve System (the “Federal Reserve Board”) to resolve the previously disclosed investigation with respect to the Bank. We are hopeful that these discussions with the Federal Reserve Board staff will lead to a resolution of the investigation in the next few weeks on a mutually agreeable basis, but there can be no assurance that will be the case. Any agreements reached by the Bank with the staff would be subject to approval by the Federal Reserve Board, and there can be no assurance that it would be approved. We are unable to predict the outcome of the investigation or these discussions. Depending on the progress of the discussions in the coming weeks, the Company may be required to recognize a loss with respect to this investigation in the financial statements as of, and for the three-month and six-months periods ending, June 30, 2022 in its upcoming Quarterly Report on Form 10-Q for the three months ended June 30, 2022. However, as of the date of this earnings release, the Company has not accrued any reserve with respect to this investigation because the amount of probable loss is not reasonably estimable at this time.
Additional financial information: The financial information that follows provides more detail on the Company’s financial performance for the three months ended June 30, 2022 as compared to the three months ended March 31, 2022 and June 30, 2021 as well as eight quarters of trend data. Persons wishing additional information should refer to the Company’s annual report on Form 10-K for the year ended December 31, 2021, quarterly report on Form 10-Q for the quarter ended March 31, 2022 and other reports filed with 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 seventeen banking offices and five lending 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, and is committed to a culture of respect, diversity, equity and inclusion in both its workplace and the communities in which it operates.
Conference call: Eagle Bancorp will host a conference call to discuss its second quarter 2022 financial results on Thursday, July 21, 2022 at 10:00 a.m. eastern time. The public is invited to listen to this registering at the link https://register.vevent.com/register/BIbfb78eb2f18a476f86d056e181426905, 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 August 5, 2022.
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 ongoing challenges and uncertainties relating to the evolution and continuation of the COVID-19 pandemic, including on our credit quality, asset and loan growth and broader business operations), volatility in interest rates and interest rate policy, the current high inflationary environment 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, 2021 and in other periodic and current reports filed with the SEC. Readers are cautioned against placing undue reliance on any such forward-looking statements. The Company’s past results are not necessarily indicative of future performance, and nothing contained herein is meant to or should be considered and treated as earnings guidance of future quarters’ performance projections. All information is as of the date of this press release. Any forward-looking statements made by or on behalf of the Company speak only as to the date they are made. Except to the extent required by applicable law or regulation, the Company undertakes no obligation to revise or update publicly any forward-looking statement for any reason.
____________________________________
1 Aggregate is comprised of
2 A reconciliation between this non-GAAP financial measure and the nearest GAAP measure is provided in the tables that accompany this document
3 A reconciliation between this non-GAAP financial measure and the nearest GAAP measure is provided in the tables that accompany this document.
4 A reconciliation between this non-GAAP financial measure and the nearest GAAP measure is provided in the table under the subsection, "Total Loans."
5 A reconciliation between this non-GAAP financial measure and the nearest GAAP measure is provided in the table below. An explanation of the reconciliations and the reasons why the Company believes this non-GAAP financial measure to be important for investors is included with the reconciliation tables accompanying this document.
6 A reconciliation between this non-GAAP financial measure and the nearest GAAP measure is provided in the tables that accompany this document.
7 A reconciliation between this non-GAAP financial measure and the nearest GAAP measure is provided in the table below. An explanation of the reconciliations and the reasons why the Company believes this non-GAAP financial measure to be important for investors is included with the reconciliation tables accompanying this document.
8 A reconciliation of non-GAAP financial measures to the nearest GAAP measure is provided in the tables that accompany this document.
9 Capital ratios for June 30, 2022 are subject to final filings with the Federal Reserve.
| Eagle Bancorp, Inc. | |||||||||||
| Consolidated Financial Highlights (Unaudited) | |||||||||||
| (Dollars in thousands, except per share data) | |||||||||||
| Three Months Ended | |||||||||||
| June 30, | March 31, | June 30, | |||||||||
| 2022 | 2022 | 2021 | |||||||||
| Income Statements: | |||||||||||
| Total interest income | $ | 95,635 | $ | 88,321 | $ | 94,920 | |||||
| Total interest expense | 12,717 | 7,869 | 10,288 | ||||||||
| Net interest income | 82,918 | 80,452 | 84,632 | ||||||||
| Provision (reversal) for credit losses | 495 | (2,787 | ) | (3,856 | ) | ||||||
| Provision (reversal) for unfunded commitments | 553 | (11 | ) | (761 | ) | ||||||
| Net interest income after provision for credit losses | 81,870 | 83,250 | 89,249 | ||||||||
| Noninterest income (before investment gain) | 5,715 | 7,478 | 10,607 | ||||||||
| Gain (loss) on sale of investment securities | (151 | ) | (25 | ) | 318 | ||||||
| Total noninterest income | 5,564 | 7,453 | 10,925 | ||||||||
| Total noninterest expense | 49,438 | 31,012 | 35,494 | ||||||||
| Income before income tax expense | 37,996 | 59,691 | 64,680 | ||||||||
| Income tax expense | 12,776 | 13,947 | 16,687 | ||||||||
| Net income | $ | 25,220 | $ | 45,744 | $ | 47,993 | |||||
| Per Share Data: | |||||||||||
| Earnings per weighted average common share, basic | $ | 0.79 | $ | 1.43 | $ | 1.50 | |||||
| Earnings per weighted average common share, diluted | $ | 0.78 | $ | 1.42 | $ | 1.50 | |||||
| Weighted average common shares outstanding, basic | 32,080,657 | 32,033,280 | 31,962,819 | ||||||||
| Weighted average common shares outstanding, diluted | 32,142,427 | 32,110,099 | 32,025,110 | ||||||||
| Actual shares outstanding at period end | 32,081,241 | 32,079,474 | 31,961,573 | ||||||||
| Book value per common share at period end | $ | 39.35 | $ | 39.89 | $ | 40.87 | |||||
| Tangible book value per common share at period end(1) | $ | 36.10 | $ | 36.64 | $ | 37.58 | |||||
| Dividend per common share | $ | 0.45 | $ | 0.40 | $ | 0.35 | |||||
| Performance Ratios (annualized): | |||||||||||
| Return on average assets | 0.86 | % | 1.46 | % | 1.68 | % | |||||
| Return on average common equity | 7.89 | % | 13.83 | % | 14.92 | % | |||||
| Return on average tangible common equity(1) | 8.59 | % | 14.99 | % | 16.25 | % | |||||
| Net interest margin | 2.94 | % | 2.65 | % | 3.04 | % | |||||
| Efficiency ratio(2) | 55.9 | % | 35.3 | % | 37.1 | % | |||||
| Other Ratios: | |||||||||||
| Allowance for credit losses to total loans(3) | 1.02 | % | 1.01 | % | 1.28 | % | |||||
| Allowance for credit losses to total nonperforming loans | 386 | % | 301 | % | 187 | % | |||||
| Nonperforming loans to total loans(3) | 0.26 | % | 0.33 | % | 0.68 | % | |||||
| Nonperforming assets to total assets | 0.19 | % | 0.23 | % | 0.50 | % | |||||
| Net (recovery) charge-off (annualized) to average total loans(3) | (0.04 | )% | 0.03 | % | 0.30 | % | |||||
| Average noninterest bearing deposits to average deposits | 37.9 | % | 36.1 | % | 33.3 | % | |||||
| Yield on loans(3) | 4.51 | % | 4.35 | % | 4.79 | % | |||||
| Cost of funds | 0.45 | % | 0.26 | % | 0.37 | % | |||||
| Eagle Bancorp, Inc. | |||||||||||
| Consolidated Financial Highlights (Continued) (Unaudited) | |||||||||||
| (Dollars in thousands) | |||||||||||
| Three Months Ended | |||||||||||
| June 30, | March 31, | June 30, | |||||||||
| 2022 | 2022 | 2021 | |||||||||
| Capital Ratios | |||||||||||
| Common equity to total assets | 11.54 | % | 11.40 | % | 11.92 | % | |||||
| Tier 1 capital (to average assets) | 10.76 | % | 9.93 | % | 10.65 | % | |||||
| Total capital (to risk weighted assets) | 15.81 | % | 15.86 | % | 17.98 | % | |||||
| Common equity tier 1 capital (to risk weighted assets) | 14.68 | % | 14.74 | % | 14.67 | % | |||||
| Tangible common equity ratio(1) | 10.69 | % | 10.57 | % | 11.07 | % | |||||
| Loan Balances - Period End: | |||||||||||
| Commercial and Industrial | $ | 1,394,835 | $ | 1,377,615 | $ | 1,359,157 | |||||
| PPP loans | $ | 8,977 | $ | 35,744 | $ | 238,041 | |||||
| Commercial real estate - income producing | $ | 3,606,506 | $ | 3,543,795 | $ | 3,534,057 | |||||
| Commercial real estate - owner occupied | $ | 1,080,249 | $ | 1,104,982 | $ | 991,936 | |||||
| 1-4 Family mortgage | $ | 72,793 | $ | 72,238 | $ | 77,131 | |||||
| Construction - commercial and residential | $ | 804,170 | $ | 783,101 | $ | 835,733 | |||||
| Construction - C&I (owner occupied) | $ | 129,717 | $ | 140,282 | $ | 161,187 | |||||
| Home equity | $ | 53,193 | $ | 54,804 | $ | 60,559 | |||||
| Other consumer | $ | 4,246 | $ | 1,246 | $ | 1,757 | |||||
| Average Balances: | |||||||||||
| Total assets | $ | 11,701,622 | $ | 12,701,152 | $ | 11,453,080 | |||||
| Total earning assets | $ | 11,300,267 | $ | 12,326,473 | $ | 11,153,012 | |||||
| Total loans(3) | $ | 7,104,727 | $ | 7,053,701 | $ | 7,382,238 | |||||
| Total deposits | $ | 10,184,886 | $ | 10,874,976 | $ | 9,530,909 | |||||
| Total borrowings | $ | 152,583 | $ | 371,987 | $ | 536,926 | |||||
| Total shareholders’ equity | $ | 1,281,847 | $ | 1,341,785 | $ | 1,290,029 | |||||
| Asset Quality: | |||||||||||
| Net (recovery) charge-off | $ | (674 | ) | $ | 459 | $ | 5,586 | ||||
| Nonperforming loans | $ | 18,844 | $ | 23,750 | $ | 49,479 | |||||
| Other real estate owned | $ | 1,487 | $ | 1,635 | $ | 4,987 | |||||
| Nonperforming assets | $ | 20,331 | $ | 25,386 | $ | 54,466 | |||||
(1) A reconciliation of non-GAAP financial measures to the nearest non-GAAP measure is provided in the tables that accompany this document.
(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) | |||||||||||
| June 30, | March 31, | June 30, | |||||||||
| 2022 | 2022 | 2021 | |||||||||
| Common shareholders' equity | $ | 1,262,243 | $ | 1,279,554 | $ | 1,306,336 | |||||
| Less: Intangible assets | (104,257 | ) | (104,241 | ) | (105,148 | ) | |||||
| Tangible common equity | $ | 1,157,986 | $ | 1,175,313 | $ | 1,201,188 | |||||
| Book value per common share | $ | 39.35 | $ | 39.89 | $ | 40.87 | |||||
| Less: Intangible book value per common share | (3.25 | ) | (3.25 | ) | (3.29 | ) | |||||
| Tangible book value per common share | $ | 36.10 | $ | 36.64 | $ | 37.58 | |||||
| Total assets | $ | 10,936,448 | $ | 11,227,223 | $ | 10,960,718 | |||||
| Less: Intangible assets | (104,257 | ) | (104,241 | ) | (105,148 | ) | |||||
| Tangible assets | $ | 10,832,191 | $ | 11,122,982 | $ | 10,855,570 | |||||
| Tangible common equity ratio | 10.69 | % | 10.57 | % | 11.07 | % | |||||
| Allowance for credit losses | $ | (72,665 | ) | $ | (71,505 | ) | $ | (92,560 | ) | ||
| Total loans, excluding loans held for sale | $ | 7,154,686 | $ | 7,113,807 | $ | 7,259,558 | |||||
| Less: PPP loans (non-GAAP) | (8,977 | ) | (35,744 | ) | (238,041 | ) | |||||
| Total loans excluding PPP loans (non-GAAP) | $ | 7,145,709 | $ | 7,078,063 | $ | 7,021,517 | |||||
| Allowance for credit losses: | |||||||||||
| As a % of total loans (GAAP) | 1.02 | % | 1.01 | % | 1.28 | % | |||||
| As a % of total loans excl. PPP loans (non-GAAP) | 1.02 | % | 1.01 | % | 1.32 | % | |||||
| Three Months Ended | |||||||||||
| June 30, | March 31, | June 30, | |||||||||
| 2022 | 2022 | 2021 | |||||||||
| Average common shareholders' equity | $ | 1,281,847 | $ | 1,341,785 | $ | 1,290,029 | |||||
| Less: Average intangible assets | (104,257 | ) | (104,246 | ) | (105,165 | ) | |||||
| Average tangible common equity | $ | 1,177,590 | $ | 1,237,539 | $ | 1,184,864 | |||||
| Net Income | $ | 25,220 | $ | 45,744 | $ | 47,993 | |||||
| Return on average tangible common equity(1) | 8.59 | % | 14.99 | % | 16.25 | % | |||||
| Net interest income | $ | 82,918 | $ | 80,452 | $ | 84,632 | |||||
| Noninterest income | 5,564 | 7,453 | 10,925 | ||||||||
| Operating revenue | $ | 88,482 | $ | 87,905 | $ | 95,557 | |||||
| Noninterest expense | $ | 49,438 | $ | 31,012 | $ | 35,494 | |||||
| Efficiency ratio | 55.9 | % | 35.3 | % | 37.1 | % | |||||
| Salaries and employee benefits | $ | — | $ | 17,019 | $ | — | |||||
| Accrual reduction for former CEO and Chairman | — | 5,018 | — | ||||||||
| Adj. Salaries and employee benefits (non-GAAP) | $ | — | $ | 22,037 | $ | — | |||||
| (1) Periods of less than a year are annualized. | |||||||||||
| GAAP Reconciliation (unaudited) | ||
| (dollars in thousands, except per share data) | ||
| Three Months | ||
| Ended | ||
| June 30, | ||
| 2022 | ||
| Net income | $ | 25,220 |
| Reversal: Penalty & disgorgement | 13,350 | |
| Adjusted net income | $ | 38,570 |
| Earnings per share (diluted) | $ | 0.78 |
| Reversal: Penalty, disgorgement & prejudgment interest | 0.42 | |
| Adjusted earnings per share (diluted) | $ | 1.20 |
| Weighted average common shares outstanding, diluted | 32,142,427 | |
GAAP Reconciliation (unaudited) - Continued
Tangible common equity to tangible assets (the "tangible common equity ratio"), tangible book value per common share, and the 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 above table provides reconciliation of these financial measures defined by GAAP with non-GAAP financial measures.
Pre-provision net revenue is a non-GAAP financial measure derived from GAAP based amounts. The Company calculates PPNR by subtracting noninterest expenses from the sum of net interest income and noninterest income. PPNR to Average Assets is calculated by dividing the PPNR amount by average assets to obtain a percentage. The Company considers this information important to shareholders because it illustrates revenue excluding the impact of provisions and reversals to the allowance for credit losses on loans. The table in the "Income Statement" section of this earnings release provides a reconciliation of PPNR and PPNR to Average Assets to the nearest GAAP measure.
Total loans excluding PPP loans is a non-GAAP financial measure derived from GAAP based amounts. The Company calculates Total loans excluding PPP loans by subtracting the total amount of outstanding PPP loans from the amount of total loans, excluding loans held for sale. The Company considers this information important to shareholders because it allows investors to see changes in the Company's loan growth without the impact of the PPP loans, which were loan products specific to relief efforts in response to the COVID-19 pandemic. Excluding the impact of PPP loans also allows investors to better compare the Company's loan growth to historical periods prior to the pandemic. The table in the "Balance Sheet" section of this earnings release and the table above provides a reconciliation of total loans excluding PPP loans to the nearest GAAP measure.
Efficiency ratio is a non-GAAP measure calculated by dividing GAAP non-interest expense by the sum of GAAP net interest income and GAAP non-interest (loss) income. Management believes that reporting the non-GAAP efficiency ratio more closely measures its effectiveness of controlling operational activities. The table above shows the calculation of the efficiency ratio from these GAAP measures.
Adjusted salaries and employee benefits is a non-GAAP financial measure derived from GAAP based amounts. The Company calculates adjusted salaries and employee benefits by subtracting from total salaries and employee benefits the one-time accrual reduction of
Adjusted net income and adjusted earnings per share (diluted) are non-GAAP financial measures derived from GAAP based amounts. The Company calculates adjusted net income by excluding from net income the
| Eagle Bancorp, Inc. | |||||||||||
| Consolidated Balance Sheets (Unaudited) | |||||||||||
| (Dollars in thousands, except per share data) | |||||||||||
| June 30, | March 31, | June 30, | |||||||||
| Assets | 2022 | 2022 | 2021 | ||||||||
| Cash and due from banks | $ | 13,132 | $ | 12,140 | $ | 9,290 | |||||
| Federal funds sold | 42,697 | 27,359 | 20,346 | ||||||||
| Interest bearing deposits with banks and other short-term investments | 369,337 | 682,883 | 1,566,586 | ||||||||
| Investment securities available for sale at fair value (amortized cost of of 2021, respectively) | 1,755,254 | 1,775,633 | 1,681,031 | ||||||||
| Investment securities held to maturity (fair value of as of June 30, 2022, March 31, 2022 and June 30, 2021, respectively) | 1,143,632 | 1,153,399 | — | ||||||||
| Federal Reserve and Federal Home Loan Bank stock | 33,990 | 29,026 | 34,033 | ||||||||
| Loans held for sale | 13,814 | 25,504 | 55,949 | ||||||||
| Loans | 7,154,686 | 7,113,807 | 7,259,558 | ||||||||
| Less allowance for credit losses | (72,665 | ) | (71,505 | ) | (92,560 | ) | |||||
| Loans, net | 7,082,021 | 7,042,302 | 7,166,998 | ||||||||
| Premises and equipment, net | 13,643 | 14,014 | 15,941 | ||||||||
| Operating lease right-of-use assets | 27,548 | 28,969 | 29,066 | ||||||||
| Deferred income taxes | 92,167 | 81,087 | 42,369 | ||||||||
| Bank owned life insurance | 110,047 | 109,415 | 107,516 | ||||||||
| Intangible assets, net | 104,257 | 104,241 | 105,148 | ||||||||
| Other real estate owned | 1,487 | 1,635 | 4,987 | ||||||||
| Other assets | 133,422 | 139,616 | 121,458 | ||||||||
| Total assets | $ | 10,936,448 | $ | 11,227,223 | $ | 10,960,718 | |||||
| Liabilities and Shareholders' Equity | |||||||||||
| Deposits: | |||||||||||
| Noninterest bearing demand | $ | 2,831,934 | $ | 2,951,594 | $ | 2,641,636 | |||||
| Interest bearing transaction | 985,431 | 888,598 | 946,228 | ||||||||
| Savings and money market | 4,741,180 | 5,047,548 | 4,653,161 | ||||||||
| Time deposits | 613,073 | 698,519 | 778,022 | ||||||||
| Total deposits | 9,171,618 | 9,586,259 | 9,019,047 | ||||||||
| Customer repurchase agreements | 26,539 | 28,293 | 19,651 | ||||||||
| Other short-term borrowings | 280,000 | 150,000 | 300,000 | ||||||||
| Long-term borrowings | 69,732 | 69,701 | 218,273 | ||||||||
| Operating lease liabilities | 32,414 | 33,935 | 31,662 | ||||||||
| Reserve for unfunded commitments | 4,921 | 4,369 | 4,295 | ||||||||
| Other liabilities | 88,981 | 75,112 | 61,454 | ||||||||
| Total liabilities | 9,674,205 | 9,947,669 | 9,654,382 | ||||||||
| Shareholders' Equity | |||||||||||
| Common stock, par value $.01 per share; shares authorized 100,000,000, shares issued and outstanding 32,081,241, 32,079,474, and 31,961,573 respectively | 318 | 318 | 316 | ||||||||
| Additional paid in capital | 440,418 | 437,820 | 431,103 | ||||||||
| Retained earnings | 973,876 | 963,140 | 870,397 | ||||||||
| Accumulated other comprehensive income (loss) | (152,369 | ) | (121,724 | ) | 4,520 | ||||||
| Total Shareholders' Equity | 1,262,243 | 1,279,554 | 1,306,336 | ||||||||
| Total Liabilities and Shareholders' Equity | $ | 10,936,448 | $ | 11,227,223 | $ | 10,960,718 | |||||
| Eagle Bancorp, Inc. | |||||||||||||||||||
| Consolidated Statements of Income (Unaudited) | |||||||||||||||||||
| (Dollars in thousands, except per share data) | |||||||||||||||||||
| Three Months Ended | Six Months Ended | ||||||||||||||||||
| June 30, | March 31, | June 30, | June 30, | June 30, | |||||||||||||||
| 2022 | 2022 | 2021 | 2022 | 2021 | |||||||||||||||
| Interest Income | |||||||||||||||||||
| Interest and fees on loans | $ | 80,142 | $ | 75,830 | $ | 88,704 | $ | 155,972 | $ | 177,942 | |||||||||
| Interest and dividends on investment securities | 12,997 | 11,430 | 5,606 | 24,427 | 10,001 | ||||||||||||||
| Interest on balances with other banks and short-term invest. | 2,451 | 1,057 | 603 | 3,508 | 1,156 | ||||||||||||||
| Interest on federal funds sold | 45 | 4 | 7 | 49 | 15 | ||||||||||||||
| Total interest income | 95,635 | 88,321 | 94,920 | 183,956 | 189,114 | ||||||||||||||
| Interest Expense | |||||||||||||||||||
| Interest on deposits | 11,538 | 6,359 | 6,799 | 17,897 | 14,698 | ||||||||||||||
| Interest on customer repurchase agreements | 22 | 13 | 9 | 35 | 20 | ||||||||||||||
| Interest on other short-term borrowings | 120 | 460 | 501 | 580 | 996 | ||||||||||||||
| Interest on long-term borrowings | 1,037 | 1,037 | 2,979 | 2,074 | 6,117 | ||||||||||||||
| Total interest expense | 12,717 | 7,869 | 10,288 | 20,586 | 21,831 | ||||||||||||||
| Net Interest Income | 82,918 | 80,452 | 84,632 | 163,370 | 167,283 | ||||||||||||||
| Provision / (Reversal) for Credit Losses | 495 | (2,787 | ) | (3,856 | ) | (2,292 | ) | (6,206 | ) | ||||||||||
| Provision / (Reversal) for Unfunded Commitments | 553 | (11 | ) | (761 | ) | 542 | (1,203 | ) | |||||||||||
| Net Interest Income After Provision For Credit Losses | 81,870 | 83,250 | 89,249 | 165,120 | 174,692 | ||||||||||||||
| Noninterest Income | |||||||||||||||||||
| Service charges on deposits | 1,345 | 1,286 | 1,122 | 2,631 | 2,099 | ||||||||||||||
| Gain on sale of loans | 855 | 1,492 | 3,478 | 2,347 | 8,656 | ||||||||||||||
| Gain (loss) on sale of investment securities | (151 | ) | (25 | ) | 318 | (176 | ) | 539 | |||||||||||
| Incr. in the cash surrender value of bank owned life insurance | 632 | 626 | 398 | 1,258 | 787 | ||||||||||||||
| Other income | 2,883 | 4,074 | 5,609 | 6,957 | 9,431 | ||||||||||||||
| Total noninterest income | 5,564 | 7,453 | 10,925 | 13,017 | 21,512 | ||||||||||||||
| Noninterest Expense | |||||||||||||||||||
| Salaries and employee benefits | 21,805 | 17,019 | 19,876 | 38,824 | 41,645 | ||||||||||||||
| Premises and equipment expenses | 3,523 | 3,128 | 3,644 | 6,651 | 7,262 | ||||||||||||||
| Marketing and advertising | 1,186 | 1,064 | 980 | 2,250 | 1,866 | ||||||||||||||
| Data processing | 2,729 | 2,880 | 2,751 | 5,609 | 5,565 | ||||||||||||||
| Legal, accounting and professional fees | 2,137 | 1,561 | 3,503 | 3,698 | 6,502 | ||||||||||||||
| FDIC insurance | 906 | 1,058 | 1,609 | 1,964 | 4,037 | ||||||||||||||
| Other expense | 17,152 | 4,302 | 3,131 | 21,454 | 6,604 | ||||||||||||||
| Total noninterest expense | 49,438 | 31,012 | 35,494 | 80,450 | 73,481 | ||||||||||||||
| Income Before Income Tax Expense | 37,996 | 59,691 | 64,680 | 97,687 | 122,723 | ||||||||||||||
| Income Tax Expense | 12,776 | 13,947 | 16,687 | 26,723 | 31,261 | ||||||||||||||
| Net Income | $ | 25,220 | $ | 45,744 | $ | 47,993 | $ | 70,964 | $ | 91,462 | |||||||||
| Earnings Per Common Share | |||||||||||||||||||
| Basic | $ | 0.79 | $ | 1.43 | $ | 1.50 | $ | 2.21 | $ | 2.87 | |||||||||
| Diluted | $ | 0.78 | $ | 1.42 | $ | 1.50 | $ | 2.21 | $ | 2.86 | |||||||||
| Eagle Bancorp, Inc. | |||||||||||||||||
| Consolidated Average Balances, Interest Yields And Rates vs. Prior Quarter (Unaudited) | |||||||||||||||||
| (Dollars in thousands) | |||||||||||||||||
| Three Months Ended | |||||||||||||||||
| June 30, 2022 | March 31, 2022 | ||||||||||||||||
| 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 | $ | 1,193,253 | $ | 2,451 | 0.82 | % | $ | 2,403,017 | $ | 1,057 | 0.18 | % | |||||
| Loans held for sale(1) | 16,342 | 179 | 4.38 | % | 26,887 | 219 | 3.26 | % | |||||||||
| Loans(1) (2) | 7,104,727 | 79,963 | 4.51 | % | 7,053,701 | 75,611 | 4.35 | % | |||||||||
| Investment securities available for sale(2) | 1,793,047 | 7,022 | 1.57 | % | 2,794,681 | 11,280 | 1.64 | % | |||||||||
| Investment securities held to maturity(2) | 1,157,308 | 5,975 | 2.07 | % | 24,011 | 150 | 2.53 | % | |||||||||
| Federal funds sold | 35,590 | 45 | 0.51 | % | 24,176 | 4 | 0.07 | % | |||||||||
| Total interest earning assets | 11,300,267 | $ | 95,635 | 3.39 | % | 12,326,473 | $ | 88,321 | 2.91 | % | |||||||
| Total noninterest earning assets | 474,279 | 449,784 | |||||||||||||||
| Less: allowance for credit losses | 72,924 | 75,105 | |||||||||||||||
| Total noninterest earning assets | 401,355 | 374,679 | |||||||||||||||
| TOTAL ASSETS | $ | 11,701,622 | $ | 12,701,152 | |||||||||||||
| LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||||||||||||
| Interest bearing liabilities: | |||||||||||||||||
| Interest bearing transaction | $ | 856,388 | $ | 630 | 0.30 | % | $ | 754,833 | $ | 322 | 0.17 | % | |||||
| Savings and money market | 4,810,047 | 8,772 | 0.73 | % | 5,476,721 | 3,723 | 0.28 | % | |||||||||
| Time deposits | 657,220 | 2,136 | 1.30 | % | 722,646 | 2,314 | 1.30 | % | |||||||||
| Total interest bearing deposits | 6,323,655 | 11,538 | 0.73 | % | 6,954,200 | 6,359 | 0.37 | % | |||||||||
| Customer repurchase agreements | 25,112 | 22 | 0.35 | % | 25,628 | 13 | 0.21 | % | |||||||||
| Other short-term borrowings | 57,750 | 120 | 0.83 | % | 276,669 | 460 | 0.67 | % | |||||||||
| Long-term borrowings | 69,721 | 1,037 | 5.95 | % | 69,690 | 1,037 | 5.95 | % | |||||||||
| Total interest bearing liabilities | 6,476,238 | $ | 12,717 | 0.79 | % | 7,326,187 | $ | 7,869 | 0.44 | % | |||||||
| Noninterest bearing liabilities: | |||||||||||||||||
| Noninterest bearing demand | 3,861,231 | 3,920,776 | |||||||||||||||
| Other liabilities | 82,306 | 112,404 | |||||||||||||||
| Total noninterest bearing liabilities | 3,943,537 | 4,033,180 | |||||||||||||||
| Shareholders’ equity | 1,281,847 | 1,341,785 | |||||||||||||||
| TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ | 11,701,622 | $ | 12,701,152 | |||||||||||||
| Net interest income | $ | 82,918 | $ | 80,452 | |||||||||||||
| Net interest spread | 2.60 | % | 2.47 | % | |||||||||||||
| Net interest margin | 2.94 | % | 2.65 | % | |||||||||||||
| Cost of funds | 0.45 | % | 0.26 | % | |||||||||||||
(1) Loans placed on nonaccrual status are included in average balances. Net loan fees and late charges included in interest income on loans totaled
(2) Interest and fees on loans and investments exclude tax equivalent adjustments.
| Eagle Bancorp, Inc. | |||||||||||||||||
| Consolidated Average Balances, Interest Yields And Rates vs. Year Ago Quarter (Unaudited) | |||||||||||||||||
| (Dollars in thousands) | |||||||||||||||||
| Three Months Ended June 30, | |||||||||||||||||
| 2022 | 2021 | ||||||||||||||||
| 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 | $ | 1,193,253 | $ | 2,451 | 0.82 | % | $ | 2,087,831 | $ | 603 | 0.12 | % | |||||
| Loans held for sale(1) | 16,342 | 179 | 4.38 | % | 76,668 | 557 | 2.87 | % | |||||||||
| Loans(1) (2) | 7,104,727 | 79,963 | 4.51 | % | 7,382,238 | 88,149 | 4.79 | % | |||||||||
| Investment securities available for sale(2) | 1,793,047 | 7,022 | 1.57 | % | 1,576,977 | 5,604 | 1.43 | % | |||||||||
| Investment securities held to maturity(2) | 1,157,308 | 5,975 | 2.07 | % | — | — | — | % | |||||||||
| Federal funds sold | 35,590 | 45 | 0.51 | % | 29,298 | 7 | 0.10 | % | |||||||||
| Total interest earning assets | 11,300,267 | $ | 95,635 | 3.39 | % | 11,153,012 | $ | 94,920 | 3.41 | % | |||||||
| Total noninterest earning assets | 474,279 | 400,978 | |||||||||||||||
| Less: allowance for credit losses | 72,924 | 100,910 | |||||||||||||||
| Total noninterest earning assets | 401,355 | 300,068 | |||||||||||||||
| TOTAL ASSETS | $ | 11,701,622 | $ | 11,453,080 | |||||||||||||
| LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||||||||||||
| Interest bearing liabilities: | |||||||||||||||||
| Interest bearing transaction | $ | 856,388 | $ | 630 | 0.30 | % | $ | 842,914 | $ | 388 | 0.18 | % | |||||
| Savings and money market | 4,810,047 | 8,772 | 0.73 | % | 4,715,193 | 3,699 | 0.31 | % | |||||||||
| Time deposits | 657,220 | 2,136 | 1.30 | % | 797,383 | 2,712 | 1.36 | % | |||||||||
| Total interest bearing deposits | 6,323,655 | 11,538 | 0.73 | % | 6,355,490 | 6,799 | 0.43 | % | |||||||||
| Customer repurchase agreements | 25,112 | 22 | 0.35 | % | 18,683 | 9 | 0.19 | % | |||||||||
| Other short-term borrowings | 57,750 | 120 | 0.83 | % | 300,003 | 501 | 0.66 | % | |||||||||
| Long-term borrowings | 69,721 | 1,037 | 5.95 | % | 218,240 | 2,979 | 5.40 | % | |||||||||
| Total interest bearing liabilities | 6,476,238 | $ | 12,717 | 0.79 | % | 6,892,416 | $ | 10,288 | 0.60 | % | |||||||
| Noninterest bearing liabilities: | |||||||||||||||||
| Noninterest bearing demand | 3,861,231 | 3,175,419 | |||||||||||||||
| Other liabilities | 82,306 | 95,216 | |||||||||||||||
| Total noninterest bearing liabilities | 3,943,537 | 3,270,635 | |||||||||||||||
| Shareholders’ equity | 1,281,847 | 1,290,029 | |||||||||||||||
| TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ | 11,701,622 | $ | 11,453,080 | |||||||||||||
| Net interest income | $ | 82,918 | $ | 84,632 | |||||||||||||
| Net interest spread | 2.60 | % | 2.81 | % | |||||||||||||
| Net interest margin | 2.94 | % | 3.04 | % | |||||||||||||
| Cost of funds | 0.45 | % | 0.37 | % | |||||||||||||
(1) Loans placed on nonaccrual status are included in average balances. Net loan fees and late charges included in interest income on loans totaled
(2) Interest and fees on loans and investments exclude tax equivalent adjustments.
| Eagle Bancorp, Inc. | |||||||||||||||||||||||||||||||
| Statements of Income and Highlights Quarterly Trends (Unaudited) | |||||||||||||||||||||||||||||||
| (Dollars in thousands, except per share data) | |||||||||||||||||||||||||||||||
| Three Months Ended | |||||||||||||||||||||||||||||||
| June 30, | March 31, | December 31, | September 30, | June 30, | March 31, | December 31, | September 30, | ||||||||||||||||||||||||
| Income Statements: | 2022 | 2022 | 2021 | 2021 | 2021 | 2021 | 2020 | 2020 | |||||||||||||||||||||||
| Total interest income | $ | 95,635 | $ | 88,321 | $ | 86,230 | $ | 89,152 | $ | 94,920 | $ | 94,194 | $ | 94,680 | $ | 93,833 | |||||||||||||||
| Total interest expense | 12,717 | 7,869 | 8,044 | 10,107 | 10,288 | 11,543 | 13,262 | 14,795 | |||||||||||||||||||||||
| Net interest income | 82,918 | 80,452 | 78,186 | 79,045 | 84,632 | 82,651 | 81,418 | 79,038 | |||||||||||||||||||||||
| Provision (reversal) for credit losses | 495 | (2,787 | ) | (6,412 | ) | (8,203 | ) | (3,856 | ) | (2,350 | ) | 4,917 | 6,607 | ||||||||||||||||||
| Provision (reversal) for unfunded commitments | 553 | (11 | ) | (632 | ) | 716 | (761 | ) | (442 | ) | 406 | (2,078 | ) | ||||||||||||||||||
| Net interest income after provision for credit losses | 81,870 | 83,250 | 85,230 | 86,532 | 89,249 | 85,443 | 76,095 | 74,509 | |||||||||||||||||||||||
| Noninterest income before investment gain (loss) | 5,715 | 7,478 | 9,668 | 6,780 | 10,607 | 10,366 | 9,722 | 17,729 | |||||||||||||||||||||||
| Gain (loss) on sale of investment securities | (151 | ) | (25 | ) | 906 | 1,519 | 318 | 221 | 165 | 115 | |||||||||||||||||||||
| Total noninterest income | 5,564 | 7,453 | 10,574 | 8,299 | 10,925 | 10,587 | 9,887 | 17,844 | |||||||||||||||||||||||
| Salaries and employee benefits | 21,805 | 17,019 | 24,608 | 22,145 | 19,876 | 21,769 | 20,151 | 19,388 | |||||||||||||||||||||||
| Premises and equipment | 3,523 | 3,128 | 3,755 | 3,859 | 3,644 | 3,618 | 3,301 | 5,125 | |||||||||||||||||||||||
| Marketing and advertising | 1,186 | 1,064 | 1,286 | 1,013 | 980 | 886 | 1,161 | 928 | |||||||||||||||||||||||
| Other expenses | 22,924 | 9,801 | 9,660 | 9,358 | 10,994 | 11,714 | 10,396 | 11,474 | |||||||||||||||||||||||
| Total noninterest expense | 49,438 | 31,012 | 39,309 | 36,375 | 35,494 | 37,987 | 35,009 | 36,915 | |||||||||||||||||||||||
| Income before income tax expense | 37,996 | 59,691 | 56,495 | 58,456 | 64,680 | 58,043 | 50,973 | 55,438 | |||||||||||||||||||||||
| Income tax expense | 12,776 | 13,947 | 14,875 | 14,847 | 16,687 | 14,574 | 12,081 | 14,092 | |||||||||||||||||||||||
| Net income | $ | 25,220 | $ | 45,744 | $ | 41,620 | $ | 43,609 | $ | 47,993 | $ | 43,469 | $ | 38,892 | $ | 41,346 | |||||||||||||||
| Per Share Data: | |||||||||||||||||||||||||||||||
| Earnings per weighted average common share, basic | $ | 0.79 | $ | 1.43 | $ | 1.30 | $ | 1.36 | $ | 1.50 | $ | 1.36 | $ | 1.21 | $ | 1.28 | |||||||||||||||
| Earnings per weighted average common share, diluted | $ | 0.78 | $ | 1.42 | $ | 1.30 | $ | 1.36 | $ | 1.50 | $ | 1.36 | $ | 1.21 | $ | 1.28 | |||||||||||||||
| Weighted average common shares outstanding, basic | 32,080,657 | 32,033,280 | 31,950,320 | 31,959,357 | 31,962,819 | 31,869,655 | 32,037,099 | 32,229,322 | |||||||||||||||||||||||
| Weighted average common shares outstanding, diluted | 32,142,427 | 32,110,099 | 32,030,998 | 32,030,527 | 32,025,110 | 31,922,940 | 32,075,175 | 32,250,885 | |||||||||||||||||||||||
| Actual shares outstanding at period end | 32,081,241 | 32,079,474 | 31,950,092 | 31,947,458 | 31,961,573 | 31,960,379 | 31,779,663 | 32,228,636 | |||||||||||||||||||||||
| Book value per common share at period end | $ | 39.35 | $ | 39.89 | $ | 42.28 | $ | 41.68 | $ | 40.87 | $ | 39.45 | $ | 39.05 | $ | 37.96 | |||||||||||||||
| Tangible book value per common share at period end(1) | $ | 36.10 | $ | 36.64 | $ | 38.97 | $ | 38.39 | $ | 37.58 | $ | 36.16 | $ | 35.74 | $ | 34.70 | |||||||||||||||
| Dividend per common share | $ | 0.45 | $ | 0.40 | $ | 0.40 | $ | 0.40 | $ | 0.35 | $ | 0.25 | $ | 0.22 | $ | 0.22 | |||||||||||||||
| Performance Ratios (annualized): | |||||||||||||||||||||||||||||||
| Return on average assets | 0.86 | % | 1.46 | % | 1.32 | % | 1.46 | % | 1.68 | % | 1.53 | % | 1.39 | % | 1.57 | % | |||||||||||||||
| Return on average common equity | 7.89 | % | 13.83 | % | 12.30 | % | 13.00 | % | 14.92 | % | 14.05 | % | 12.53 | % | 14.46 | % | |||||||||||||||
| Return on average tangible common equity(1) | 8.59 | % | 14.99 | % | 13.35 | % | 14.11 | % | 16.25 | % | 15.33 | % | 13.69 | % | 15.93 | % | |||||||||||||||
| Net interest margin | 2.94 | % | 2.65 | % | 2.55 | % | 2.73 | % | 3.04 | % | 2.98 | % | 2.98 | % | 3.08 | % | |||||||||||||||
| Efficiency ratio(2) | 55.87 | % | 35.3 | % | 44.3 | % | 41.7 | % | 37.1 | % | 40.7 | % | 38.3 | % | 38.1 | % | |||||||||||||||
| Other Ratios: | |||||||||||||||||||||||||||||||
| Allowance for credit losses to total loans(3) | 1.02 | % | 1.01 | % | 1.06 | % | 1.21 | % | 1.28 | % | 1.36 | % | 1.41 | % | 1.40 | % | |||||||||||||||
| Allowance for credit losses to total nonperforming loans | 386 | % | 301 | % | 257 | % | 265 | % | 187 | % | 195 | % | 180 | % | 190 | % | |||||||||||||||
| Nonperforming loans to total loans(3) | 0.26 | % | 0.33 | % | 0.41 | % | 0.46 | % | 0.68 | % | 0.69 | % | 0.79 | % | 0.74 | % | |||||||||||||||
| Nonperforming assets to total assets | 0.19 | % | 0.23 | % | 0.26 | % | 0.31 | % | 0.50 | % | 0.51 | % | 0.59 | % | 0.62 | % | |||||||||||||||
| Net (recovery) charge-off (annualized) to average total loans(3) | (0.04 | )% | 0.03 | % | 0.07 | % | 0.08 | % | 0.30 | % | 0.27 | % | 0.28 | % | 0.26 | % | |||||||||||||||
| Tier 1 capital (to average assets) | 10.76 | % | 9.93 | % | 10.19 | % | 10.58 | % | 10.65 | % | 10.28 | % | 10.31 | % | 10.82 | % | |||||||||||||||
| Total capital (to risk weighted assets) | 15.81 | % | 15.86 | % | 16.15 | % | 16.59 | % | 17.98 | % | 17.86 | % | 17.04 | % | 16.72 | % | |||||||||||||||
| Common equity tier 1 capital (to risk weighted assets) | 14.68 | % | 14.74 | % | 15.02 | % | 15.33 | % | 14.67 | % | 14.42 | % | 13.49 | % | 13.19 | % | |||||||||||||||
| Tangible common equity ratio(1) | 10.69 | % | 10.57 | % | 10.60 | % | 10.68 | % | 11.07 | % | 10.48 | % | 10.31 | % | 11.18 | % | |||||||||||||||
| Average Balances (in thousands): | |||||||||||||||||||||||||||||||
| Total assets | $ | 11,701,622 | $ | 12,701,152 | $ | 12,538,596 | $ | 11,826,326 | $ | 11,453,080 | $ | 11,517,836 | $ | 11,141,826 | $ | 10,473,595 | |||||||||||||||
| Total earning assets | $ | 11,300,267 | $ | 12,326,473 | $ | 12,180,872 | $ | 11,486,280 | $ | 11,152,933 | $ | 11,236,440 | $ | 10,872,259 | $ | 10,205,939 | |||||||||||||||
| Total loans(3) | $ | 7,104,727 | $ | 7,053,701 | $ | 6,890,414 | $ | 7,055,621 | $ | 7,382,238 | $ | 7,726,716 | $ | 7,896,324 | $ | 7,910,260 | |||||||||||||||
| Total deposits | $ | 10,184,886 | $ | 10,874,976 | $ | 10,670,206 | $ | 9,948,114 | $ | 9,530,909 | $ | 9,601,249 | $ | 9,227,733 | $ | 8,591,912 | |||||||||||||||
| Total borrowings | $ | 152,583 | $ | 371,987 | $ | 402,393 | $ | 448,697 | $ | 536,926 | $ | 573,750 | $ | 596,307 | $ | 596,472 | |||||||||||||||
| Total shareholders’ equity | $ | 1,281,847 | $ | 1,341,785 | $ | 1,342,525 | $ | 1,331,022 | $ | 1,290,029 | $ | 1,254,780 | $ | 1,235,174 | $ | 1,211,145 | |||||||||||||||
(1) See footnote (1) for Consolidated Financial Highlights.
(2) Computed by dividing noninterest expense by the sum of net interest income and noninterest income.
(3) Excludes loans held for sale.
EAGLE BANCORP, INC.
CONTACT:
David G. Danielson
240.552.9534
FAQ
What was Eagle Bancorp's net income for Q2 2022?
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