EXHIBIT 99.1
Eagle Bancorp, Inc. Announces Record Profitability and Continuing Declines in Problem Assets for the First Quarter of 2010
BETHESDA, Md., April 20, 2010 (GLOBE NEWSWIRE) -- Eagle Bancorp, Inc. (the "Company") (Nasdaq:EGBN), the parent company of EagleBank, today announced net income of $3.4 million for the three months ended March 31, 2010, a 63% increase over the $2.1 million for the three months ended March 31, 2009 and the highest level of quarterly net income in the Company's twelve year history. Net income available to common shareholders was $3.1 million ($0.16 per basic common share and $0.15 per diluted common share) for the three months ended March 31, 2010, compared to $1.5 million ($0.12 per basic and diluted common share) for the same period in 2009, a 106% increase, also a recor d level of earnings.
"In spite of continued general economic weakness nationally, we are extremely pleased to report record financial results for the first quarter of 2010," noted Ronald D. Paul, Chairman and Chief Executive Officer of Eagle Bancorp, Inc. "Our financial results reflect the Company's ability and desire to continue lending in its marketplace, as evidenced by a 13% increase in loans over the past twelve months; our ability to continue building new and existing client relationships, as evidenced by a 29% increase in deposits in the past twelve months; and favorable asset quality measures with the first quarter of 2010 being the fourth successive quarter of declining non-performing assets to 1.36% of total assets." Mr. Paul further noted, "The Company's profitability in the first quarter of 2010 resulted in improved returns on average assets and average common equity while also maintaining a very strong total risk based capital ratio of 13.50% at March 31, 2010, well above regulatory well capitalized measures."
A continuing trend of growth in average loans and deposits and improvement in the net interest margin were the key drivers of increases in revenue and net income in first quarter results. Average loans increased 10% for the three months ended March 31, 2010, as compared to the same period in 2009. Average deposits increased 27% for the three months ended March 31, 2010, as compared to the first three months in 2009.
At March 31, 2010, total assets were $1.83 billion compared to $1.50 billion at March 31, 2009, a 23% increase. Total deposits increased 29% during the first quarter of 2010, to $1.48 billion as compared to $1.15 billion at March 31, 2009, while total loans increased 13% to $1.43 billion at March 31, 2010, from $1.27 billion at March 31, 2009. Total borrowed funds, which include customer repurchase agreements, decreased to $157.1 million at March 31, 2010 from $193.1 million at March 31, 2009, a 19% decrease, as substantial growth in lower cost core deposits was used to reduce alternative funding sources.
Net interest income increased 28% for the three months ended March 31, 2010 over the same period in 2009, as the Company posted a strong net interest margin of 3.98% for the first quarter of 2010. The net interest margin increased 2 basis points from the three months ended December 31, 2009 and 22 basis points from the 3.76% achieved in the first quarter of 2009. The higher margin in the first quarter of 2010 as compared to the same period of 2009 was due to both lower funding costs for both deposits and borrowings more than offsetting declines in earning asset yields and to higher average noninterest deposit balances in 2010 versus 2009. Higher average levels of liquid assets during the quarter ended March 31, 2010, as compared to the quarter ended March 31, 2009, contributed to the lower earning asset yields. The slight increase in net interest margin for the first quarter of 2010 over the fourth quarter of 2009 is also attributable to lower funding costs more than offsetting declines in earning asset yie lds. The Company's net interest margin compares favorably to peer banking companies.
Average loans increased $55 million and average deposits increased $91 million during the three months ended March 31, 2010, as compared to the three months ended December 31, 2009. In addition, at March 31, 2010, the Company had a high level of loan commitments which carried over the end of the quarter. Of these commitments, $45 million were funded in the first week of April 2010. The increase in average loans in the first quarter of 2010 as compared to the fourth quarter of 2009 is primarily attributable to growth in commercial real estate income producing and commercial and industrial loans. Increases in average deposits in the first quarter of 2010 as compared to the fourth quarter of 2009 is primarily attributable to noninterest bearing and money market deposits.
At March 31, 2010, the Company has $24.9 million of nonperforming assets, representing 1.36% of total assets, compared to $27.1 million of nonperforming assets, or 1.50% of total assets, at December 31, 2009 and $49.8 million, or 3.33% of total assets, at March 31, 2009. The March 31, 2010 ratio of nonperforming assets to total assets represented the fourth consecutive quarter of decline from a high of 3.33% at March 31, 2009. Management remains attentive to early signs of deterioration in borrowers' financial conditions and to taking appropriate actions 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 1.47% of total loans at March 31, 2010, is adequate to absorb potential credit losses in the loan portfolio at that date. Included in nonperforming assets at March 31, 2010 were $3.9 million of Other Real Estate Owned ("OREO") as compared to $5.1 million at December 31, 2009 and $3.3 million at March 31, 2009.
The ratio of nonperforming loans to total loans declined to 1.47% of total loans ($21.0 million) at March 31, 2010 as compared to 1.57% of total loans ($22.0 million) at December 31, 2009 and 3.67% of total loans ($46.5 million) at March 31, 2009. The decline in the ratio is due to both a decrease in nonperforming loans of $25.5 million year over year and to a larger loan portfolio at March 31, 2010. Over the recessionary period of the past two years, management's and the Board's diligence in resolving potential problem loans without sustaining significant levels of net charge-offs has been a significant element of the Company's success.
For the three months ended March 31, 2010, the Company reported an annualized return on average assets of 0.76% as compared to 0.56% for the three months ended March 31, 2009. The annualized return on average common equity for the most recent quarter was 7.40% as compared to 5.87% for the three months ended March 31, 2009. The increases in these ratios were due primarily to a higher net interest margin resulting from loan pricing, lower funding costs, and improvement in operating cost management as exhibited by an improved efficiency ratio and a lower ratio of noninterest expenses to average assets.
The provision for credit losses was $1.7 million for the three months ended March 31, 2010 as compared to $1.6 million for the three months ended March 31, 2009. At March 31, 2010, the allowance for credit losses represented 1.47% of loans outstanding, as compared to 1.50% at March 31, 2009 and 1.47% at December 31, 2009. The slightly higher provisioning in the first quarter of 2010, as compared to the first quarter of 2009, is primarily attributable to higher amounts of loan growth in the first quarter of 2010 versus 2009 and to higher levels of net charge-offs. Net charge-offs of $1.3 million represented 0.36% of average loans in the first quarter of 2010, as compared to $918 thousand, or 0.29% of average loans in the first quarter of 2009. Net charge-offs in the first quarter of 2010 were attributable to charge-offs in the unguaranteed portion of SBA loans ($107 thousand), commercial and industrial loans ($651 thousand), commercial real estate loans ($500 thousand) and consumer loans ($4 thousand).
At March 31, 2010, the allowance for credit losses represented 100% of nonperforming loans as compared to 41% at March 31, 2009 and 94% at December 31, 2009. The higher coverage ratio at March 31, 2010 is due primarily to increases in the allowance for credit losses over the past year and a substantial decline in the level of nonperforming loans, from $46.5 million at March 31, 2009 to $21.0 million at March 31, 2010. At March 31, 2010, approximately $13.2 million or 63% of nonperforming loans represent impaired loans acquired in the acquisition with Fidelity & Trust Bank ("Fidelity") which, in accordance with generally accepted accounting principles, were initially recorded at fair value without any allowance attributable to pre-acquisition deterioration.
Noninterest income for the three months ended March 31, 2010 decreased to $1.2 million from $1.4 million for the three months ended March 31, 2009, a 15% decrease. This decrease was due primarily to lower gains realized on the sale of residential mortgage loans, resulting from accounting rule changes effective January 1, 2010. The new rule requires deferral of gain recognition until all recourse provisions are satisfied, which period is generally 90-120 days. Also contributing to the decline in noninterest income in the first quarter of 2010 was no investment securities gains as compared to gains of $132 thousand during the same period in 2009.
The efficiency ratio, which measures the ratio of noninterest expense to total revenue, was 62.15% for the first quarter of 2010, as compared to 69.10% for the first quarter of 2009, as the Company has enhanced its productivity, margin and efficiency since the acquisition of Fidelity. Noninterest expenses were $11.5 million for the three months ended March 31, 2010, as compared to $10.3 million for the three months ended March 31, 2009, an 11% increase. Higher costs were incurred for salaries and benefits of $370 thousand, $217 thousand of premises and equipment expenses, data processing of $68 thousand and deposit insurance premiums of $193 thousand. Other expenses increased $406 thousand, primarily due to $181 thousand of OREO expenses and a net loss of $85 thousand on the sale of two OREO properties.
The Company's regulatory capital ratios remain well in excess of those required for well capitalized status. At March 31, 2010, Eagle Bancorp had a total risk based capital ratio of 13.50%, a Tier 1 risk based capital ratio of 11.77%, a leverage ratio of 10.00% and a tangible common equity capital ratio of 9.06%.
The financial information which follows provides more detail on the Company's financial performance for the three months ended March 31, 2010 as compared to the three months ended March 31, 2009, including eight quarters of trend data. Persons wishing additional information should refer to the Company's Form 10-K for the year ended December 31, 2009 as filed with the Securities and Exchange Commission (the "SEC").
About Eagle Bancorp: The Company is the holding company for EagleBank which commenced operations in 1998. The Bank is headquartered in Bethesda, Maryland, and conducts full service commercial banking through fourteen offices, located in Montgomery County, Maryland, Washington, D.C. and Fairfax County, Virginia. Management is currently negotiating the lease termination with the landlord of its Sligo Avenue office located in Silver Spring, Maryland. The required notice has been given to close this branch effective April 30, 2010. The Company focuses on building relationships with businesses, professionals and individuals in its marketplace.
The Eagle Bancorp, Inc. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=6101
Conference Call: Eagle Bancorp will host a conference call to discuss first quarter financial results on Wednesday, April 21, 2010 at 10:00 a.m. eastern time. The public is invited to listen to this conference call by dialing 877-303-6220, conference ID Code is 67581641, or by accessing the call on the Company's website, www.eaglebankcorp.com. A replay of the conference call will be available on the Company's website through May 5, 2010.
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, 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 fu ture 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, 2009 and in other periodic and current reports filed with the SEC. Readers are cautioned against placing undue reliance on any such forward-looking statements. The Company's past results are not necessarily indicative of future performance.
| Eagle Bancorp, Inc. | ||
| Financial Highlights | ||
| (in thousands, except per share data) | Three Months Ended | |
| March 31, | ||
| 2010 | 2009 | |
| Income Statements: | (Unaudited) | (Unaudited) |
| Total interest income | $ 22,508 | $ 20,067 |
| Total interest expense | 5,285 | 6,604 |
| Net interest income | 17,223 | 13,463 |
| Provision for credit losses | 1,689 | 1,566 |
| Net interest income after provision for credit losses | 15,534 | 11,897 |
| Noninterest income (before investment gains) | 1,222 | 1,300 |
| Investment gains | -- | 132 |
| Total noninterest income | 1,222 | 1,432 |
| Total noninterest expense | 11,463 | 10,293 |
| Income before income tax expense | 5,293 | 3,036 |
| Income tax expense | 1,902 | 961 |
| Net income | 3,391 | 2,075 |
| Preferred stock dividends and discount accretion | 320 | 583 |
| Net Income Available to Common Shareholders | $ 3,071 | $ 1,492 |
| Per Share Data: | ||
| Earnings per weighted average common share, basic | $ 0.16 | $ 0.12 |
| Earnings per weighted average common share, diluted | $ 0.15 | $ 0.12 |
| Weighted average common shares outstanding, basic | 19,609,197 | 12,742,725 |
| Weighted average common shares outstanding, diluted | 19,951,246 | 12,793,974 |
| Actual shares outstanding | 19,633,763 | 12,745,118 |
| Book value per common share at period end | $ 8.66 | $ 8.49 |
| Tangible book value per common share at period end (1) | $ 8.44 | $ 8.30 |
| Performance Ratios (annualized): | ||
| Return on average assets | 0.76% | 0.56% |
| Return on average common equity | 7.40% | 5.87% |
| Net interest margin | 3.98% | 3.76% |
| Efficiency ratio (2) | 62.15% | 69.10% |
| Other Ratios: | ||
| Allowance for credit losses to total loans | 1.47% | 1.50% |
| Allowance for credit losses to total nonperforming loans | 100.33% | 40.98% |
| Allowance for credit losses to total nonperforming assets | 84.58% | 38.27% |
| Nonperforming loans to total loans | 1.47% | 3.67% |
| Nonperforming assets to total assets | 1.36% | 3.33% |
| Net charge-offs (annualized) to average loans | 0.36% | 0.29% |
| Common equity to total assets | 9.24% | 7.11% |
| Tier 1 leverage ratio | 10.00% | 9.06% |
| Tier 1 risk based capital ratio | 11.77% | 10.26% |
| Total risk based capital ratio | 13.50% | 12.43% |
| Tangible common equity to tangible assets (1) | 9.06% | 7.08% |
| Loan Balances -Period End (in thousands): | ||
| Commercial and Industrial | $ 360,865 | $ 321,049 |
| Commercial real estate -- owner occupied | $ 192,809 | $ 187,281 |
| Commercial real estate - income producing | $ 538,201 | $ 394,364 |
| 1-4 Family mortgage | $ 10,189 | $ 9,451 |
| Construction - commercial and residential | $ 232,825 | $ 266,725 |
| Home equity | $ 86,905 | $ 81,276 |
| Other consumer | $ 5,429 | $ 7,812 |
| Average Balances (in thousands): | ||
| Total assets | $ 1,815,383 | $ 1,497,036 |
| Total earning assets | $ 1,753,989 | $ 1,453,503 |
| Total loans (3) | $ 1,406,904 | $ 1,281,925 |
| Total deposits | $ 1,472,061 | $ 1,157,227 |
| Total borrowings | $ 146,638 | $ 190,065 |
| Total stockholders' equity | $ 191,393 | $ 141,341 |
| (1) Tangible common equity to tangible assets and tangible book value per common share are non-GAAP financial measures derived from GAAP-based amounts. We calculate tangible common equity to tangible assets by excluding the balance of intangible assets from common stockholders' equity and dividing by tangible assets. We calculate tangible book value per common share by dividing tangible common equity by common shares outstanding, as compared to book value per common share, which we calculate by dividing common stockholders' equity by common shares outstanding. We believe that this is consistent with the treatment by bank regulatory agencies, which exclude intangible assets from the calculation of risk-based capital ratios. | ||
| (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) | |||
| March 31, 2010 | December 31, 2009 | March 31, 2009 | |
| (Unaudited) | (Audited) | (Unaudited) | |
| Assets | |||
| Cash and due from banks | $ 25,987 | $ 21,955 | $ 27,322 |
| Federal funds sold | 66,839 | 88,248 | 6,147 |
| Interest bearing deposits with banks and other short-term investments | 7,541 | 7,484 | 3,538 |
| Investment securities available for sale, at fair value | 253,740 | 235,227 | 150,507 |
| Federal Reserve and Federal Home Loan Bank stock | 10,417 | 10,417 | 8,469 |
| Loans held for sale | 1,089 | 1,550 | 2,832 |
| Loans | 1,427,223 | 1,399,311 | 1,267,958 |
| Less allowance for credit losses | (21,045) | (20,619) | (19,051) |
| Loans, net | 1,406,178 | 1,378,692 | 1,248,907 |
| Premises and equipment, net | 8,711 | 9,253 | 9,488 |
| Deferred income taxes | 11,909 | 12,455 | 10,878 |
| Bank owned life insurance | 13,022 | 12,912 | 12,564 |
| Intangible assets, net | 4,347 | 4,379 | 2,465 |
| Other real estate owned | 3,906 | 5,106 | 3,289 |
| Other assets | 19,305 | 17,826 | 9,368 |
| Total Assets | $ 1,832,991 | $ 1,805,504 | $ 1,495,774 |
| Liabilities and Stockholders' Equity | |||
| Liabilities | |||
| Deposits: | |||
| Noninterest bearing demand | $ 291,714 | $ 307,959 | $ 232,725 |
| Interest bearing transaction | 48,865 | 59,720 | 47,840 |
| Savings and money market | 624,197 | 582,854 | 303,022 |
| Time, $100,000 or more | 276,355 | 296,199 | 256,506 |
| Other time | 235,808 | 213,542 | 308,625 |
| Total deposits | 1,476,939 | 1,460,274 | 1,148,718 |
| Customer repurchase agreements and federal funds purchased | 97,837 | 90,790 | 120,918 |
| Other short-term borrowings | 10,000 | 10,000 | 10,000 |
| Long-term borrowings | 49,300 | 49,300 | 62,150 |
| Other liabilities | 6,450 | 6,819 | 9,459 |
| Total liabilities | 1,640,526 | 1,617,183 | 1,351,245 |
| 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 23,235, 23,235 and 38,235, respectively, discount of $734, $570 and $1,809 respectively, net | 22,449 | 22,612 | 36,374 |
| Common stock, par value $.01per share; shares authorized 50,000,000, shares issued and outstanding 19,633,763, 19,534,226 and 12,745,118, respectively | 196 | 195 | 127 |
| Warrants | 946 | 946 | 1,892 |
| Additional paid in capital | 129,434 | 129,211 | 76,958 |
| Retained earnings | 36,288 | 33,024 | 26,486 |
| Accumulated other comprehensive income | 3,152 | 2,333 | 2,692 |
| Total stockholders' equity | 192,465 | 188,321 | 144,529 |
| Total Liabilities and Stockholders' Equity | $ 1,832,991 | $ 1,805,504 | $ 1,495,774 |
| EAGLE BANCORP, INC. | ||
| Consolidated Statements of Operations | ||
| For the Three Month Periods Ended March 31, 2010 and 2009 (Unaudited) | ||
| (dollars in thousands, except per share data) | ||
| Three Months Ended | ||
| March 31, | ||
| Interest Income | 2010 | 2009 |
| Interest and fees on loans | $ 20,462 | $ 18,113 |
| Interest and dividends on investment securities | 1,977 | 1,929 |
| Interest on balances with other banks and short-term investments | 33 | 19 |
| Interest on federal funds sold | 36 | 6 |
| Total interest income | 22,508 | 20,067 |
| Interest Expense | ||
| Interest on deposits | 4,538 | 5,557 |
| Interest on customer repurchase agreements and federal funds purchased | 183 | 281 |
| Interest on short-term borrowings | 18 | 45 |
| Interest on long-term borrowings | 546 | 721 |
| Total interest expense | 5,285 | 6,604 |
| Net Interest Income | 17,223 | 13,463 |
| Provision for Credit Losses | 1,689 | 1,566 |
| Net Interest Income After Provision For Credit Losses | 15,534 | 11,897 |
| Noninterest Income | ||
| Service charges on deposits | 730 | 738 |
| Gain on sale of loans | 54 | 131 |
| Gain on sale of investment securities | -- | 132 |
| Increase in the cash surrender value of bank owned life insurance | 110 | 114 |
| Other income | 328 | 317 |
| Total noninterest income | 1,222 | 1,432 |
| Noninterest Expense | ||
| Salaries and employee benefits | 5,675 | 5,305 |
| Premises and equipment expenses | 2,092 | 1,875 |
| Marketing and advertising | 247 | 315 |
| Data processing | 615 | 547 |
| Legal, accounting and professional fees | 574 | 590 |
| FDIC insurance | 634 | 441 |
| Other expenses | 1,626 | 1,220 |
| Total noninterest expense | 11,463 | 10,293 |
| Income Before Income Tax Expense | 5,293 | 3,036 |
| Income Tax Expense | 1,902 | 961 |
| Net Income | 3,391 | 2,075 |
| Preferred Stock Dividends and Discount Accretion | 320 | 583 |
| Net Income Available to Common Shareholders | $ 3,071 | $ 1,492 |
| Earnings Per Common Share | ||
| Basic | $ 0.16 | $ 0.12 |
| Diluted | $ 0.15 | $ 0.12 |
| EAGLE BANCORP, INC. | ||||||||||||||
| Average Balances, Interest Yields And Rates, And Net Interest Margin (Unaudited) | ||||||||||||||
| (dollars in thousands) | ||||||||||||||
| Three Months Ended March 31, | ||||||||||||||
| 2010 | 2009 | |||||||||||||
| 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 | $ 7,558 | $ 33 | 1.77% | $ 2,763 | $ 19 | 2.72% | ||||||||
| Loans (1) (2) (3) | 1,406,904 | 20,462 | 5.90% | 1,281,925 | 18,113 | 5.73% | ||||||||
| Investment securities available for sale (3) | 269,437 | 1,977 | 2.98% | 159,649 | 1,929 | 4.90% | ||||||||
| Federal funds sold | 70,090 | 36 | 0.21% | 9,166 | 6 | 0.25% | ||||||||
| Total interest earning assets | 1,753,989 | 22,508 | 5.20% | 1,453,503 | 20,067 | 5.60% | ||||||||
| Total noninterest earning assets | 82,214 | 62,191 | ||||||||||||
| Less: allowance for credit losses | 20,820 | 18,658 | ||||||||||||
| Total noninterest earning assets | 61,394 | 43,533 | ||||||||||||
| TOTAL ASSETS | $1,815,383 | $1,497,036 | ||||||||||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||||||||
| Interest bearing liabilities: | ||||||||||||||
| Interest bearing transaction | $ 50,557 | $ 33 | 0.26% | $ 47,690 | $ 32 | 0.27% | ||||||||
| Savings and money market | 625,639 | 2,085 | 1.35% | 293,551 | 1,088 | 1.50% | ||||||||
| Time deposits | 507,089 | 2,420 | 1.94% | 601,440 | 4,437 | 2.99% | ||||||||
| Total interest bearing deposits | 1,183,285 | 4,538 | 1.56% | 942,681 | 5,557 | 2.99% | ||||||||
| Customer repurchase agreements and federal funds purchased | 87,338 | 183 | 0.85% | 98,582 | 281 | 1.16% | ||||||||
| Other short-term borrowings | 10,000 | 18 | 0.73% | 29,333 | 45 | 0.62% | ||||||||
| Long-term borrowings | 49,300 | 546 | 4.49% | 62,150 | 721 | 4.70% | ||||||||
| Total interest bearing liabilities | 1,329,923 | 5,285 | 1.61% | 1,132,746 | 6,604 | 2.36% | ||||||||
| Noninterest bearing liabilities: | ||||||||||||||
| Noninterest bearing demand | 288,776 | 214,546 | ||||||||||||
| Other liabilities | 5,291 | 8,404 | ||||||||||||
| Total noninterest bearing liabilities | 294,067 | 222,950 | ||||||||||||
| Stockholders' equity | 191,393 | 141,341 | ||||||||||||
| TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $1,815,383 | $1,497,036 | ||||||||||||
| Net interest income | $ 17,223 | $ 13,463 | ||||||||||||
| Net interest spread | 3.59% | 3.24% | ||||||||||||
| Net interest margin | 3.98% | 3.76% | ||||||||||||
| (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 $536 thousand and $433 thousand for the three months ended March 31, 2010 and 2009, 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 | ||||||||||||||||
| March 31, | December 31, | September 30, | June 30, | March 31, | December 31, | September 30, | June 30, | |||||||||
| Income Statements: | 2010 | 2009 | 2009 | 2009 | 2009 | 2008 | 2008 | 2008 | ||||||||
| Total interest income | $ 22,508 | $ 22,413 | $ 21,426 | $ 20,432 | $ 20,067 | $ 20,904 | $ 16,744 | $ 13,995 | ||||||||
| Total interest expense | 5,285 | 5,685 | 6,408 | 6,112 | 6,604 | 7,680 | 5,829 | 4,753 | ||||||||
| Net interest income | 17,223 | 16,728 | 15,018 | 14,320 | 13,463 | 13,224 | 10,915 | 9,242 | ||||||||
| Provision for credit losses | 1,689 | 2,528 | 1,857 | 1,718 | 1,566 | 1,450 | 995 | 814 | ||||||||
| Net interest income after provision for credit losses | 15,534 | 14,200 | 13,161 | 12,602 | 11,897 | 11,774 | 9,920 | 8,428 | ||||||||
| Noninterest income (before investment gains or losses) | 1,222 | 1,275 | 1,486 | 1,698 | 1,300 | 1,313 | 1,150 | 970 | ||||||||
| Investment gains (losses) | -- | 1 | -- | 1,405 | 132 | (52) | 45 | -- | ||||||||
| Total noninterest income | 1,222 | 1,276 | 1,486 | 3,103 | 1,432 | 1,261 | 1,195 | 970 | ||||||||
| Salaries and employee benefits | 5,675 | 5,412 | 5,128 | 5,044 | 5,305 | 5,270 | 4,172 | 3,646 | ||||||||
| Premises and equipment | 2,092 | 1,843 | 1,798 | 1,827 | 1,875 | 1,861 | 1,380 | 1,103 | ||||||||
| Marketing and advertising | 247 | 313 | 228 | 242 | 315 | 656 | 125 | 114 | ||||||||
| Other expenses | 3,449 | 3,058 | 3,126 | 4,460 | 2,798 | 2,720 | 1,893 | 1,669 | ||||||||
| Total noninterest expense | 11,463 | 10,627 | 10,280 | 11,573 | 10,293 | 10,507 | 7,570 | 6,532 | ||||||||
| Income before income tax expense | 5,293 | 4,849 | 4,367 | 4,132 | 3,036 | 2,528 | 3,545 | 2,866 | ||||||||
| Income tax expense | 1,902 | 1,898 | 1,625 | 1,481 | 961 | 867 | 1,284 | 1,011 | ||||||||
| Net income | 3,391 | 2,951 | 2,742 | 2,651 | 2,075 | 1,661 | 2,261 | 1,855 | ||||||||
| Preferred stock dividends and discount accretion | 320 | 540 | 595 | 589 | 583 | 177 | -- | -- | ||||||||
| Net Income Available to Common Shareholders | $ 3,071 | $ 2,411 | $ 2,147 | $ 2,062 | $ 1,492 | $ 1,484 | $ 2,261 | $ 1,855 | ||||||||
| Per Share Data (1): | ||||||||||||||||
| Earnings per weighted average common share, basic | $ 0.16 | $ 0.12 | $ 0.16 | $ 0.16 | $ 0.12 | $ 0.12 | $ 0.20 | $ 0.17 | ||||||||
| Earnings per weighted average common share, diluted | $ 0.15 | $ 0.12 | $ 0.15 | $ 0.16 | $ 0.12 | $ 0.12 | $ 0.19 | $ 0.17 | ||||||||
| Weighted average common shares outstanding, basic | 19,609,197 | 19,521,574 | 13,504,539 | 12,750,496 | 12,742,725 | 12,703,425 | 11,482,401 | 10,816,857 | ||||||||
| Weighted average common shares outstanding, diluted | 19,951,246 | 19,779,726 | 13,794,355 | 12,887,964 | 12,793,974 | 12,777,262 | 11,576,095 | 10,896,766 | ||||||||
| Actual shares outstanding | 19,633,763 | 19,534,226 | 19,505,339 | 12,763,940 | 12,745,118 | 12,714,355 | 12,686,128 | 10,826,828 | ||||||||
| Book value per common share at period end | $ 8.66 | $ 8.48 | $ 8.46 | $ 8.52 | $ 8.49 | $ 8.34 | $ 7.93 | $ 7.78 | ||||||||
| Dividend per common share | $ -- | $ -- | $ -- | $ -- | $ -- | $ -- | $ -- | $ 0.0545 | ||||||||
| Performance Ratios (annualized): | ||||||||||||||||
| Return on average assets | 0.76% | 0.68% | 0.67% | 0.70% | 0.56% | 0.46% | 0.82% | 0.84% | ||||||||
| Return on average common equity | 7.40% | 5.79% | 7.62% | 7.71% | 5.87% | 5.21% | 9.97% | 8.81% | ||||||||
| Net interest margin | 3.98% | 3.96% | 3.77% | 3.91% | 3.76% | 3.74% | 4.11% | 4.34% | ||||||||
| Efficiency ratio (2) | 62.15% | 59.02% | 62.29% | 66.42% | 69.10% | 72.54% | 62.51% | 63.96% | ||||||||
| Other Ratios: | ||||||||||||||||
| Allowance for credit losses to total loans | 1.47% | 1.47% | 1.51% | 1.50% | 1.50% | 1.45% | 1.46% | 1.15% | ||||||||
| Nonperforming loans to total loans | 1.47% | 1.57% | 1.73% | 2.36% | 3.67% | 2.01% | 1.79% | 1.45% | ||||||||
| Nonperforming assets to total assets | 1.36% | 1.50% | 1.63% | 2.14% | 3.33% | 1.76% | 1.45% | 1.26% | ||||||||
| Net charge-offs (annualized) to average loans | 0.36% | 0.54% | 0.48% | 0.35% | 0.29% | 0.05% | 0.27% | 0.20% | ||||||||
| Tier 1 leverage ratio | 10.00% | 10.29% | 11.68% | 8.96% | 9.06% | 9.22% | 8.79% | 9.43% | ||||||||
| Tier 1 risk based capital ratio | 11.77% | 11.82% | 13.65% | 9.91% | 10.26% | 9.78% | 7.55% | 9.74% | ||||||||
| Total risk based capital ratio | 13.50% | 13.57% | 15.57% | 12.05% | 12.43% | 11.93% | 9.75% | 10.80% | ||||||||
| Average Balances (in thousands): | ||||||||||||||||
| Total assets | $ 1,815,383 | $ 1,732,168 | $ 1,631,200 | $ 1,518,979 | $ 1,497,036 | $ 1,451,295 | $ 1,098,362 | $ 891,267 | ||||||||
| Total earning assets | $ 1,753,989 | $ 1,677,573 | $ 1,579,603 | $ 1,468,296 | $ 1,453,503 | $ 1,406,421 | $ 1,057,543 | $ 857,232 | ||||||||
| Total loans (3) | $ 1,406,904 | $ 1,352,076 | $ 1,317,685 | $ 1,297,634 | $ 1,281,925 | $ 1,218,067 | $ 922,224 | $ 770,034 | ||||||||
| Total deposits | $ 1,472,061 | $ 1,381,305 | $ 1,321,405 | $ 1,164,978 | $ 1,157,227 | $ 1,152,376 | $ 863,930 | $ 683,151 | ||||||||
| Total borrowings | $ 146,638 | $ 141,406 | $ 146,819 | $ 199,479 | $ 190,065 | $ 177,955 | $ 138,374 | $ 118,634 | ||||||||
| Total stockholders' equity | $ 191,393 | $ 202,004 | $ 153,171 | $ 145,492 | $ 141,341 | $ 113,245 | $ 90,223 | $ 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 | ||||||||||||||||
CONTACT: Eagle Bancorp, Inc.
Michael T. Flynn
301.986.1800