EXHIBIT 99.1
BETHESDA, Md., July 26, 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 quarter ended June 30, 2010, a 30% increase over the $2.7 million for the quarter ended June 30, 2009. 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 quarter ended June 30, 2010, compared to $2.1 million ($0.16 per basic and diluted common share) for the quarter ended June 30, 2009, a 52% increase.
For the six months ended June 30, 2010, the Company's net income was $6.8 million, a 45% increase over the $4.7 million for the six months ended June 30, 2009. Net income available to common shareholders was $6.2 million ($0.32 per basic common share and $0.31 per diluted common share), as compared to $3.6 million ($0.28 per basic and diluted common share) for the same six month period in 2009, a 74% increase.
"We are extremely pleased to report strong earnings and balance sheet growth for the second quarter of 2010. These results reflect substantial revenue growth, continued growth in both loans and core deposits and solid asset quality," noted Ronald D. Paul, Chairman, President and Chief Executive Officer of Eagle Bancorp, Inc. "At a time of continuing stress in our financial markets and in the general economy, Eagle Bancorp continues to perform well. Second quarter earnings mark six successive quarters of growth in net income," added Mr. Paul. "Further, EagleBank has remained diligent in meeting the credit needs of clients throughout our market area, as reflected by the $191 million or 15% growth rate in total loans over the past twelve months. Over the same period, total deposits increased $330 million, or 26%, which includes the addition of many new relationships to our client base. The new relationship growth is further evidence that the Company's position as the leading community bank in the Washington me tropolitan area is being solidified," noted Mr. Paul.
A continuing trend of growth in average loans and deposits and further expansion in the net interest margin were the key drivers of increases in revenue and net income in both the second quarter and six month results. Average loans increased 15% and 12% for the three and six months ended June 30, 2010, respectively, over the comparable prior year period. Average deposits increased 31% and 29% for the three and six months ended June 30, 2010, respectively, due substantially to growth in money market accounts.
At June 30, 2010, total assets were $1.94 billion compared to $1.59 billion at June 30, 2009, a 22% increase. Total deposits amounted to $1.58 billion, at June 30, 2010, a 26% increase over deposits of $1.25 billion at June 30, 2009, while total loans increased to $1.50 billion at June 30, 2010, from $1.31 billion at June 30, 2009, a 15% increase. The investment portfolio, as of June 30, 2010, totaled $237 million, a 41% increase over the $168 million balance at June 30, 2009. The investment portfolio valuation continues to show substantial unrealized gains. Total borrowed funds decreased to $155.4 million at June 30, 2010 from $174.3 million at June 30, 2009, an 11% decline, as substantial growth in lower cost core deposits was used to reduce alternative funding sources. Total stockholders' equity increased to $196.7 million at June 30, 2010, from $145.2 million at June 30, 2009. The Company's capital position remains substantially in excess of regulatory well capitalized measures.
Net interest income increased 30% for the three months ended June 30, 2010 over the same period in 2009, as the Company posted a strong net interest margin of 4.10% for the most recent quarter in 2010. The net interest margin increased 12 basis points from the three months ended March 31, 2010 and 19 basis points from the 3.91% achieved in the second quarter of 2009. The higher margin in the second quarter of 2010 as compared to the same period of 2009 was due to 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 compared to 2009. The Company's net interest margin continues to compare favorably to peer banking companies.
Average loans increased $82 million (6%) and average deposits increased $57 million (4%) during the three months ended June 30, 2010, as compared to the three months ended March 31, 2010. The increase in average loans in the second quarter of 2010 as compared to the first quarter of 2010 is primarily attributable to growth in income-producing commercial real estate loans and commercial and industrial loans. Increases in average deposits in the second quarter of 2010, as compared to the first quarter of 2010, is attributable to growth in both noninterest bearing demand deposits and money market accounts.
At June 30, 2010, the Company's level of nonperforming assets was $28.9 million, representing 1.49% of total assets, compared to $24.9 million of nonperforming assets, or 1.36% of total assets, at March 31, 2010 and $34.1 million, or 2.14% of total assets, at June 30, 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 1.45% of total loans at June 30, 2010, is adequate to absorb potential credit losses within the loan portfolio at that date. Included in nonperforming assets at June 30, 2010 were $3.6 million of Other Real Estate Owned ("OREO") as compared to $3.9 million at March 31, 2010 and $3.1 million at June 30, 2009. During the second quarter the Company sold two OREO properties for a net loss of $160 thousand.
Analysis of the three months ended June 30, 2010 compared to 2009
For the three months ended June 30, 2010, the Company reported an annualized return on average assets (ROAA) of 0.73% as compared to 0.70% for the three months ended June 30, 2009. The annualized return on average common equity (ROAE) for the most recent quarter was 7.30%, as compared to 7.71% for the three months ended June 30, 2009. The increase in the ROAA ratio was due primarily to a higher net interest margin in the current period whereas the decline in the ROAE was due to higher levels of stockholders' equity in the current period due principally to the successful capital raise in September 2009.
Net interest income increased 30% for the three months ended June 30, 2010 over 2009, resulting from a 19 basis point increase in the net interest margin over the past twelve months and strong balance sheet growth. For the three months ended June 30, 2010, the net interest margin was 4.10% as compared to 3.91% for the three months ended June 30, 2009. The Company's net interest margin for the second quarter of 2010 increased by 12 basis points to 4.10% from 3.98% for the first quarter of 2010 due primarily to lower funding costs of 13 basis points.
The provision for credit losses was $2.1 million for the three months ended June 30, 2010 as compared to $1.7 million for the three months ended June 30, 2009. At June 30, 2010, the allowance for credit losses represented 1.45% of loans outstanding, as compared to 1.50% at June 30, 2009 and 1.47% at March 31, 2010. The higher provisioning in the second quarter of 2010, as compared to the second quarter of 2009, is primarily attributable to loan growth. The two basis point decline in the reserve is based upon the incorporation of consistently low levels of historical losses in the reserve methodology. Net charge-offs of $1.4 million represented 0.38% of average loans in the second quarter of 2010, as compared to $1.1 million or 0.35% of average loans in the second quarter of 2009. Net charge-offs in the second quarter of 2010 were attributable to charge-offs in the unguaranteed portion of SBA loans ($545 thousand), commercial and industrial loans ($303 thousand), commercial real estate loans ($552 thousand), and consumer loans ($5 thousand).
At June 30, 2010, the allowance for credit losses represented 86% of nonperforming loans as compared to 100% at March 31, 2010 and 63% at June 30, 2009. The two basis point decline in the reserve is due to the incorporation of consistently low levels of historical losses over the past eight quarters in the reserve methodology, due in part to improving market conditions in the Washington, D.C. metropolitan area.
Noninterest income for the three months ended June 30, 2010 decreased to $2.0 million from $3.1 million for the three months ended June 30, 2009, a 35% decrease. This decrease was due primarily to an $832 thousand decline in gains on the sale of investment securities. Investment gains realized in both the second quarter of 2010 and 2009 were the result of asset/liability management decisions to reduce call risk in the portfolio of U.S. Agency securities, and to mitigate potential extension risk in longer-term mortgage backed securities. Also contributing to lower noninterest income in 2010 compared to 2009 was a $329 thousand decline in gains on the sale of loans. Gains on the sale of SBA loans increased $57 thousand while gains on the sales of residential mortgages decreased $386 thousand. With the late second quarter expansion of the residential mortgage origination division, the Company anticipates higher amounts of noninterest income from the origination and sale of mortgage loans for the remainder of 2 010.
The efficiency ratio, which measures the ratio of noninterest expense to total revenue, was 63.69% for the second quarter of 2010, as compared to 66.42% for the second quarter of 2009, as the Company has enhanced its productivity. As compared to the first quarter of 2010, the second quarter efficiency ratio was slightly elevated (from 62.15% to 63.69%) due largely to additional staffing in the residential mortgage business unit (see above discussion), and to additional lending personnel. Noninterest expenses were $13.1 million for the three months ended June 30, 2010, as compared to $11.6 million for the three months ended June 30, 2009, a 14% increase. Higher costs were incurred for salaries and benefits of $925 thousand, premises and equipment expenses of $785 thousand, other expenses of $355 thousand, legal, accounting and professional fees of $165 thousand, data processing of $69 thousand, and marketing and advertising of $39 thousand. Premises and equipment expenses include approximately $595 thousand due to the acceleration of the remaining lease term for the closure of the Sligo branch in Silver Spring, Maryland in April, 2010. These higher costs were partially offset by a reduction in FDIC insurance premiums of $773 thousand resulting from a special assessment of approximately $723 thousand recorded in the second quarter of 2009. Finally, a portion of the increase in other expenses is due to the operating and disposition costs of OREO.
Analysis of the six months ended June 30, 2010 compared to 2009
For the six months ended June 30, 2010, the Company reported an annualized ROAA of 0.75% as compared to 0.63% for the six months of 2009, while the annualized ROAE was 7.35% in 2010, as compared to 6.81% for the same six month period in 2009. The increase in these ratios was due primarily to increase in the net interest margin over the past twelve months, resulting from lower funding costs.
For the first six months of 2010, net interest income increased 29% over the same period for 2009. Average loans increased 12% and average deposits increased by 29%. The net interest margin was 4.04% for the six months of 2010, as compared to 3.83% for the six months of 2009. The Company has been able to maintain its loan yields in 2010 close to 2009 levels due to loan pricing practices, and has been able to reduce its funding costs while maintaining a favorable deposit mix; much of which has occurred from sales efforts to increase and deepen client relationships.
The provision for credit losses was $3.8 million for the first six months of 2010 as compared to $3.3 million in 2009. The higher provisioning in 2010 as compared to 2009 is attributable to both higher amounts of loan growth in the first six months of 2010 compared to 2009, and to slightly higher net charge-offs in 2010 as compared to 2009. For the six months ended June 30, 2010, net charge-offs totaled $2.7 million (0.37% of average loans) compared to $2.1 million (0.32% of average loans) for the six months ended June 30, 2009. Net charge-offs in the six months ended June 30, 2010 were attributable to charge-offs in the unguaranteed portion of SBA loans ($652 thousand), commercial and industrial loans ($954 thousand), commercial real estate loans ($1.1 million), and consumer loans ($9 thousand).
Noninterest income for the six months of 2010 was $3.2 million compared to $4.5 million in 2009, a decrease of 29%. This decrease was due primarily to a $964 thousand decline in gains on the sale of investment securities. Investment gains realized in both the first six months of 2010 and 2009 were the result of asset/liability management decisions to reduce call risk in the portfolio of U.S. Agency securities, and to mitigate potential extension risk in longer-term mortgage backed securities. Also contributing to lower noninterest income in the first six months of 2010 compared to 2009 was a decline of $407 thousand in gains on the sale of loans; as gains on the sale of SBA loans increased $73 thousand while gains on the sale of residential mortgages decreased $480 thousand.
Noninterest expenses were $24.6 million for the first six months of 2010, as compared to $21.9 million for 2009, a 13% increase primarily comprised of salaries and benefits expense of $1.3 million, reflecting in part the expansion of the residential mortgage division, premises and equipment expenses of $1.0 million, other expenses of $761 thousand, legal, accounting and professional fees of $149 thousand, and data processing costs of $136 thousand. Premises and equipment expenses include approximately $595 thousand due to the acceleration of the remaining lease term for the closure of the Sligo branch in Silver Spring, Maryland in April, 2010. The higher costs were somewhat offset by a reduction in FDIC insurance of $580 thousand resulting from a special assessment of approximately $723 thousand recorded in the second quarter of 2009. For the first six months of 2010, the efficiency ratio was 62.96% as compared to 67.66% for the six months ended June 30, 2009. Cost control remains a key operating objective of the Company.
At June 30, 2010, Eagle Bancorp had a total risk based capital ratio of 13.03%, a Tier 1 risk based capital ratio of 11.32%, and a tangible common equity capital ratio of 8.79%, all measures being substantially above regulatory well capitalized measures.
The financial information which follows provides more detail on the Company's financial performance for the six and three months ended June 30, 2010 as compared to the six and three months ended June 30, 2009, 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, 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 thirteen offices, located in Montgomery County, Maryland, Washington, D.C. and Fairfax County, Virginia. The Company focuses on building relationships with businesses, professionals and individuals in its marketplace.
The Eagle Bancorp, Inc. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=6101
Conference Call: Eagle Bancorp will host a conference call to discuss the second quarter 2010 financial results on Tuesday, July 27, 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 84517500, 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 10, 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) | Six Months Ended | Three Months Ended | ||
| June 30, | June 30, | |||
| 2010 | 2009 | 2010 | 2009 | |
| Income Statements: | (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) |
| Total interest income | $ 46,197 | $ 40,499 | $ 23,689 | $ 20,432 |
| Total interest expense | 10,357 | 12,716 | 5,072 | 6,112 |
| Net interest income | 35,840 | 27,783 | 18,617 | 14,320 |
| Provision for credit losses | 3,790 | 3,284 | 2,101 | 1,718 |
| Net interest income after provision for credit losses | 32,050 | 24,499 | 16,516 | 12,602 |
| Noninterest income (before investment gains) | 2,659 | 2,998 | 1,437 | 1,698 |
| Investment gains | 573 | 1,537 | 573 | 1,405 |
| Total noninterest income | 3,232 | 4,535 | 2,010 | 3,103 |
| Total noninterest expense | 24,600 | 21,866 | 13,137 | 11,573 |
| Income before income tax expense | 10,682 | 7,168 | 5,389 | 4,132 |
| Income tax expense | 3,844 | 2,442 | 1,942 | 1,481 |
| Net income | 6,838 | 4,726 | 3,447 | 2,651 |
| Preferred stock dividends and discount accretion | 644 | 1,172 | 324 | 589 |
| Net Income Available to Common Shareholders | $ 6,194 | $ 3,554 | $ 3,123 | $ 2,062 |
| Per Share Data: | ||||
| Earnings per weighted average common share, basic | $ 0.32 | $ 0.28 | $ 0.16 | $ 0.16 |
| Earnings per weighted average common share, diluted | $ 0.31 | $ 0.28 | $ 0.15 | $ 0.16 |
| Weighted average common shares outstanding, basic | 19,625,310 | 12,746,632 | 19,858,294 | 12,750,496 |
| Weighted average common shares outstanding, diluted | 20,005,961 | 12,817,061 | 20,288,992 | 12,887,964 |
| Actual shares outstanding | 19,652,918 | 12,763,940 | 19,652,918 | 12,763,940 |
| Book value per common share at period end | $ 8.87 | $ 8.52 | $ 8.87 | $ 8.52 |
| Tangible book value per common share at period end (1) | $ 8.65 | $ 8.18 | $ 8.65 | $ 8.18 |
| Performance Ratios (annualized): | ||||
| Return on average assets | 0.75% | 0.63% | 0.73% | 0.70% |
| Return on average common equity | 7.35% | 6.81% | 7.30% | 7.71% |
| Net interest margin | 4.04% | 3.83% | 4.10% | 3.91% |
| Efficiency ratio (2) | 62.96% | 67.66% | 63.69% | 66.42% |
| Other Ratios: | ||||
| Allowance for credit losses to total loans | 1.45% | 1.50% | 1.45% | 1.50% |
| Allowance for credit losses to total nonperforming loans | 85.86% | 63.40% | 85.86% | 63.40% |
| Nonperforming loans to total loans | 1.68% | 2.36% | 1.68% | 2.36% |
| Nonperforming assets to total assets | 1.49% | 2.14% | 1.49% | 2.14% |
| Net charge-offs (annualized) to average loans | 0.37% | 0.32% | 0.38% | 0.35% |
| Common equity to total assets | 8.96% | 6.73% | 8.96% | 6.73% |
| Tier 1 leverage ratio | 9.83% | 8.96% | 9.83% | 8.96% |
| Tier 1 risk based capital ratio | 11.32% | 9.91% | 11.32% | 9.91% |
| Total risk based capital ratio | 13.03% | 12.05% | 13.03% | 12.05% |
| Tangible common equity to tangible assets (1) | 8.79% | 6.58% | 8.79% | 6.58% |
| Loan Balances -Period End (in thousands): | ||||
| Commercial and Industrial | $ 370,893 | $ 317,657 | $ 370,893 | $ 317,657 |
| Commercial real estate -- owner occupied | $ 209,438 | $ 191,036 | $ 209,438 | $ 191,036 |
| Commercial real estate - income producing | $ 566,669 | $ 427,623 | $ 566,669 | $ 427,622 |
| 1-4 Family mortgage | $ 11,227 | $ 8,678 | $ 11,227 | $ 8,678 |
| Construction - commercial and residential | $ 252,934 | $ 275,113 | $ 252,934 | $ 275,113 |
| Home equity | $ 86,957 | $ 85,336 | $ 86,957 | $ 85,336 |
| Other consumer | $ 6,295 | $ 7,951 | $ 6,295 | $ 7,951 |
| Average Balances (in thousands): | ||||
| Total assets | $ 1,848,846 | $ 1,508,125 | $ 1,881,761 | $ 1,518,979 |
| Total earning assets | $ 1,788,153 | $ 1,460,940 | $ 1,821,943 | $ 1,468,296 |
| Total loans (3) | $ 1,448,342 | $ 1,289,823 | $ 1,489,325 | $ 1,297,634 |
| Total deposits | $ 1,500,928 | $ 1,161,123 | $ 1,529,498 | $ 1,164,978 |
| Total borrowings | $ 148,952 | $ 194,798 | $ 151,240 | $ 199,479 |
| Total stockholders' equity | $ 193,139 | $ 143,428 | $ 194,866 | $ 145,492 |
| (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 information is 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. |
| (2) Computed by dividing noninterest expense by the sum of net interest income and noninterest income. |
| (3) Includes loans held for sale. |
| GAAP Reconciliation | ||
| (dollars in thousands except per share data) | ||
| Six Months Ended | ||
| June 30, | ||
| 2010 | 2009 | |
| (Unaudited) | (Unaudited) | |
| Common stockholders' equity | $ 174,250 | $ 108,790 |
| Less: Intangible assets | (4,277) | (4,392) |
| Tangible common equity | $ 169,973 | $ 104,398 |
| Book value per common share | $ 8.87 | $ 8.52 |
| Less: Intangible book value per common share | (0.22) | (0.34) |
| Tangible book value per common share | $ 8.65 | $ 8.18 |
Eagle Bancorp, Inc. | |||
| Statements of Financial Condition | |||
| (dollars in thousands) | |||
| June 30, 2010 | December 31, 2009 | June 30, 2009 | |
| (Unaudited) | (Audited) | (Unaudited) | |
| Assets | |||
| Cash and due from banks | $ 23,901 | $ 21,955 | $ 28,187 |
| Federal funds sold | 89,755 | 88,248 | 27,044 |
| Interest bearing deposits with banks and other short-term investments | 8,062 | 7,484 | 2,426 |
| Investment securities available for sale, at fair value | 237,117 | 235,227 | 167,666 |
| Federal Reserve and Federal Home Loan Bank stock | 10,285 | 10,417 | 10,044 |
| Loans held for sale | 24,491 | 1,550 | 10,502 |
| Loans | 1,504,413 | 1,399,311 | 1,313,394 |
| Less allowance for credit losses | (21,741) | (20,619) | (19,650) |
| Loans, net | 1,482,672 | 1,378,692 | 1,293,744 |
| Premises and equipment, net | 8,687 | 9,253 | 9,245 |
| Deferred income taxes | 12,279 | 12,455 | 12,404 |
| Bank owned life insurance | 13,130 | 12,912 | 12,680 |
| Intangible assets, net | 4,277 | 4,379 | 4,392 |
| Other real estate owned | 3,556 | 5,106 | 3,081 |
| Other assets | 19,053 | 17,826 | 8,791 |
| Total Assets | $ 1,937,265 | $ 1,805,504 | $ 1,590,206 |
| Liabilities | |||
| Deposits: | |||
| Noninterest bearing demand | $ 313,812 | $ 307,959 | $ 231,171 |
| Interest bearing transaction | 54,489 | 59,720 | 55,596 |
| Savings and money market | 709,987 | 582,854 | 375,007 |
| Time, $100,000 or more | 314,081 | 296,199 | 284,595 |
| Other time | 185,622 | 213,542 | 301,833 |
| Total deposits | 1,577,991 | 1,460,274 | 1,248,202 |
| Customer repurchase agreements | |||
| and federal funds purchased | 106,104 | 90,790 | 112,163 |
| Other short-term borrowings | -- | 10,000 | 30,000 |
| Long-term borrowings | 49,300 | 49,300 | 32,150 |
| Other liabilities | 7,127 | 6,819 | 22,443 |
| Total liabilities | 1,740,522 | 1,617,183 | 1,444,958 |
| 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 $690, $570 and $1,725 respectively, net | 22,493 | 22,612 | 36,458 |
| Common stock, par value $.01 per share; shares authorized 50,000,000, shares issued and outstanding 19,652,918, 19,534,226 and 12,763,940, respectively | 197 | 195 | 127 |
| Warrants | 946 | 946 | 1,892 |
| Additional paid in capital | 129,701 | 129,211 | 77,099 |
| Retained earnings | 39,400 | 33,024 | 28,575 |
| Accumulated other comprehensive income | 4,006 | 2,333 | 1,097 |
| Total stockholders' equity | 196,743 | 188,321 | 145,248 |
| Total Liabilities and Stockholders' Equity | $ 1,937,265 | $ 1,805,504 | $ 1,590,206 |
EAGLE BANCORP, INC. | ||||
| Consolidated Statements of Operations | ||||
| For the Six and Three Month Periods Ended June 30, 2010 and 2009 (Unaudited) | ||||
| (dollars in thousands, except per share data) | ||||
| Six Months Ended | Three Months Ended | |||
| June 30, | June 30, | |||
| Interest Income | 2010 | 2009 | 2010 | 2009 |
| Interest and fees on loans | $ 42,340 | $ 36,683 | $ 21,878 | $ 18,570 |
| Interest and dividends on investment securities | 3,715 | 3,768 | 1,738 | 1,839 |
| Interest on balances with other banks and short-term investments | 59 | 37 | 26 | 18 |
| Interest on federal funds sold | 83 | 11 | 47 | 5 |
| Total interest income | 46,197 | 40,499 | 23,689 | 20,432 |
| Interest Expense | ||||
| Interest on deposits | 8,855 | 10,609 | 4,317 | 5,052 |
| Interest on customer repurchase agreements | ||||
| and federal funds purchased | 378 | 574 | 195 | 293 |
| Interest on short-term borrowings | 27 | 158 | 9 | 118 |
| Interest on long-term borrowings | 1,097 | 1,375 | 551 | 649 |
| Total interest expense | 10,357 | 12,716 | 5,072 | 6,112 |
| Net Interest Income | 35,840 | 27,783 | 18,617 | 14,320 |
| Provision for Credit Losses | 3,790 | 3,284 | 2,101 | 1,718 |
| Net Interest Income After Provision For Credit Losses | 32,050 | 24,499 | 16,516 | 12,602 |
| Noninterest Income | ||||
| Service charges on deposits | 1,486 | 1,455 | 756 | 717 |
| Gain on sale of loans | 251 | 658 | 197 | 527 |
| Gain on sale of investment securities | 573 | 1,537 | 573 | 1,405 |
| Increase in the cash surrender value of bank owned life insurance | 217 | 230 | 107 | 116 |
| Other income | 705 | 655 | 377 | 338 |
| Total noninterest income | 3,232 | 4,535 | 2,010 | 3,103 |
| Noninterest Expense | ||||
| Salaries and employee benefits | 11,644 | 10,349 | 5,969 | 5,044 |
| Premises and equipment expenses | 4,704 | 3,702 | 2,612 | 1,827 |
| Marketing and advertising | 528 | 557 | 281 | 242 |
| Data processing | 1,258 | 1,122 | 643 | 575 |
| Legal, accounting and professional fees | 1,526 | 1,377 | 952 | 787 |
| FDIC insurance | 1,335 | 1,915 | 701 | 1,474 |
| Other expenses | 3,605 | 2,844 | 1,979 | 1,624 |
| Total noninterest expense | 24,600 | 21,866 | 13,137 | 11,573 |
| Income Before Income Tax Expense | 10,682 | 7,168 | 5,389 | 4,132 |
| Income Tax Expense | 3,844 | 2,442 | 1,942 | 1,481 |
| Net Income | 6,838 | 4,726 | 3,447 | 2,651 |
| Preferred Stock Dividends and Discount Accretion | 644 | 1,172 | 324 | 589 |
| Net Income Available to Common Shareholders | $ 6,194 | $ 3,554 | $ 3,123 | $ 2,062 |
| Earnings Per Common Share | ||||
| Basic | $ 0.32 | $ 0.28 | $ 0.16 | $ 0.16 |
| Diluted | $ 0.31 | $ 0.28 | $ 0.15 | $ 0.16 |
| EAGLE BANCORP, INC. | |||||||
| Average Balances, Interest Yields And Rates, And Net Interest Margin | |||||||
| (dollars in thousands) |
| Three Months Ended June 30, | ||||||
| 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 | $ 7,683 | $ 26 | 1.36% | $ 2,450 | $ 18 | 2.95% |
| Loans (1) (2) (3) | 1,489,325 | 21,878 | 5.89% | 1,297,634 | 18,570 | 5.74% |
| Investment securities available for sale (3) | 250,276 | 1,738 | 2.79% | 159,064 | 1,839 | 4.64% |
| Federal funds sold | 74,659 | 47 | 0.25% | 9,148 | 5 | 0.22% |
| Total interest earning assets | 1,821,943 | 23,689 | 5.22% | 1,468,296 | 20,432 | 5.58% |
| Total noninterest earning assets | 81,188 | 69,756 | ||||
| Less: allowance for credit losses | 21,370 | 19,073 | ||||
| Total noninterest earning assets | 59,818 | 50,683 | ||||
| TOTAL ASSETS | $1,881,761 | $1,518,979 | ||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||
| Interest bearing liabilities: | ||||||
| Interest bearing transaction | $ 53,448 | $ 53 | 0.40% | $ 50,709 | $ 41 | 0.32% |
| Savings and money market | 673,794 | 2,046 | 1.22% | 326,344 | 1,325 | 1.63% |
| Time deposits | 495,727 | 2,218 | 1.79% | 564,193 | 3,686 | 2.62% |
| Total interest bearing deposits | 1,222,969 | 4,317 | 1.42% | 941,246 | 5,052 | 2.15% |
| Customer repurchase agreements and federal funds purchased | 96,841 | 195 | 0.81% | 107,933 | 293 | 1.09% |
| Other short-term borrowings | 5,099 | 9 | 0.71% | 39,286 | 118 | 1.20% |
| Long-term borrowings | 49,300 | 551 | 4.48% | 52,260 | 649 | 4.99% |
| Total interest bearing liabilities | 1,374,209 | 5,072 | 1.48% | 1,140,725 | 6,112 | 2.15% |
| Noninterest bearing liabilities: | ||||||
| Noninterest bearing demand | 306,529 | 223,732 | ||||
| Other liabilities | 6,157 | 9,030 | ||||
| Total noninterest bearing liabilities | 312,686 | 232,762 | ||||
| Stockholders' equity | 194,866 | 145,492 | ||||
| TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $1,881,761 | $1,518,979 | ||||
| Net interest income | $ 18,617 | $ 14,320 | ||||
| Net interest spread | 3.74% | 3.43% | ||||
| Net interest margin | 4.10% | 3.91% | ||||
| (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 $705 thousand and $439 thousand for the three months ended June 30, 2010 and 2009, 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 | |||||||
| (dollars in thousands) |
| Six Months Ended June 30, | ||||||
| 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 | $ 7,621 | $ 59 | 1.56% | $ 2,605 | $ 37 | 2.79% |
| Loans (1) (2) (3) | 1,448,342 | 42,340 | 5.90% | 1,289,823 | 36,683 | 5.74% |
| Investment securities available for sale (3) | 257,610 | 3,715 | 2.91% | 159,355 | 3,768 | 4.77% |
| Federal funds sold | 74,580 | 83 | 0.22% | 9,157 | 11 | 0.24% |
| Total interest earning assets | 1,788,153 | 46,197 | 5.21% | 1,460,940 | 40,499 | 5.59% |
| Total noninterest earning assets | 81,790 | 66,052 | ||||
| Less: allowance for credit losses | 21,097 | 18,867 | ||||
| Total noninterest earning assets | 60,693 | 47,185 | ||||
| TOTAL ASSETS | $1,848,846 | $1,508,125 | ||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||
| Interest bearing liabilities: | ||||||
| Interest bearing transaction | $ 52,002 | $ 86 | 0.33% | $ 49,208 | $ 72 | 0.30% |
| Savings and money market | 649,849 | 4,131 | 1.28% | 310,038 | 2,414 | 1.57% |
| Time deposits | 501,376 | 4,638 | 1.87% | 582,713 | 8,123 | 2.81% |
| Total interest bearing deposits | 1,203,227 | 8,855 | 1.48% | 941,959 | 10,609 | 2.27% |
| Customer repurchase agreements and federal funds purchased | 92,116 | 378 | 0.83% | 103,283 | 574 | 1.12% |
| Other short-term borrowings | 7,536 | 27 | 0.72% | 34,337 | 158 | 0.93% |
| Long-term borrowings | 49,300 | 1,097 | 4.49% | 57,178 | 1,375 | 4.85% |
| Total interest bearing liabilities | 1,352,179 | 10,357 | 1.54% | 1,136,757 | 12,716 | 2.26% |
| Noninterest bearing liabilities: | ||||||
| Noninterest bearing demand | 297,701 | 219,164 | ||||
| Other liabilities | 5,827 | 8,776 | ||||
| Total noninterest bearing liabilities | 303,528 | 227,940 | ||||
| Stockholders' equity | 193,139 | 143,428 | ||||
| TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $1,848,846 | $1,508,125 | ||||
| Net interest income | $ 35,840 | $ 27,783 | ||||
| Net interest spread | 3.67% | 3.33% | ||||
| Net interest margin | 4.04% | 3.83% | ||||
| (1) Includes loans held for sale. | |||||||
| (2) Loans placed on nonaccrual status are included in average balances. Net loan fees and late charges included in interest income on loans totaled $1.2 million and $872 thousand for the six months ended June 30, 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 | ||||||||||||||||
| Income Statements: | June 30, 2010 | March 31, 2010 | Dec. 31, 2009 | Sept. 30, 2009 | June 30, 2009 | March 31, 2009 | Dec. 31, 2008 | Sept. 30, 2008 | ||||||||
| Total interest income | $ 23,689 | $ 22,508 | $ 22,413 | $ 21,426 | $ 20,432 | $ 20,067 | $ 20,904 | $ 16,744 | ||||||||
| Total interest expense | 5,072 | 5,285 | 5,685 | 6,408 | 6,112 | 6,604 | 7,680 | 5,829 | ||||||||
| Net interest income | 18,617 | 17,223 | 16,728 | 15,018 | 14,320 | 13,463 | 13,224 | 10,915 | ||||||||
| Provision for credit losses | 2,101 | 1,689 | 2,528 | 1,857 | 1,718 | 1,566 | 1,450 | 995 | ||||||||
| Net interest income after provision for credit losses | 16,516 | 15,534 | 14,200 | 13,161 | 12,602 | 11,897 | 11,774 | 9,920 | ||||||||
| Noninterest income (before investment gains or losses) | 1,437 | 1,222 | 1,275 | 1,486 | 1,698 | 1,300 | 1,313 | 1,150 | ||||||||
| Investment gains (losses) | 573 | -- | 1 | -- | 1,405 | 132 | (52) | 45 | ||||||||
| Total noninterest income | 2,010 | 1,222 | 1,276 | 1,486 | 3,103 | 1,432 | 1,261 | 1,195 | ||||||||
| Salaries and employee benefits | 5,969 | 5,675 | 5,412 | 5,128 | 5,044 | 5,305 | 5,270 | 4,172 | ||||||||
| Premises and equipment | 2,612 | 2,092 | 1,843 | 1,798 | 1,827 | 1,875 | 1,861 | 1,380 | ||||||||
| Marketing and advertising | 281 | 247 | 313 | 228 | 242 | 315 | 656 | 125 | ||||||||
| Other expenses | 4,275 | 3,449 | 3,058 | 3,126 | 4,460 | 2,798 | 2,720 | 1,893 | ||||||||
| Total noninterest expense | 13,137 | 11,463 | 10,627 | 10,280 | 11,573 | 10,293 | 10,507 | 7,570 | ||||||||
| Income before income tax expense | 5,389 | 5,293 | 4,849 | 4,367 | 4,132 | 3,036 | 2,528 | 3,545 | ||||||||
| Income tax expense | 1,942 | 1,902 | 1,898 | 1,625 | 1,481 | 961 | 867 | 1,284 | ||||||||
| Net income | 3,447 | 3,391 | 2,951 | 2,742 | 2,651 | 2,075 | 1,661 | 2,261 | ||||||||
| Preferred stock dividends and discount accretion | 324 | 320 | 540 | 595 | 589 | 583 | 177 | -- | ||||||||
| Net Income Available to Common Shareholders | $ 3,123 | $ 3,071 | $ 2,411 | $ 2,147 | $ 2,062 | $ 1,492 | $ 1,484 | $ 2,261 | ||||||||
| Per Share Data (1): | ||||||||||||||||
| Earnings per weighted average common share, basic | $ 0.16 | $ 0.16 | $ 0.12 | $ 0.16 | $ 0.16 | $ 0.12 | $ 0.12 | $ 0.20 | ||||||||
| Earnings per weighted average common share, diluted | $ 0.15 | $ 0.15 | $ 0.12 | $ 0.15 | $ 0.16 | $ 0.12 | $ 0.12 | $ 0.19 | ||||||||
| Weighted average common shares outstanding, basic | 19,858,294 | 19,609,197 | 19,521,574 | 13,504,539 | 12,750,496 | 12,742,725 | 12,703,425 | 11,482,401 | ||||||||
| Weighted average common shares outstanding, diluted | 20,288,992 | 19,951,246 | 19,779,726 | 13,794,355 | 12,887,964 | 12,793,974 | 12,777,262 | 11,576,095 | ||||||||
| Actual shares outstanding | 19,652,918 | 19,633,763 | 19,534,226 | 19,505,339 | 12,763,940 | 12,745,118 | 12,714,355 | 12,686,128 | ||||||||
| Book value per common share at period end | $ 8.87 | $ 8.66 | $ 8.48 | $ 8.46 | $ 8.52 | $ 8.49 | $ 8.34 | $ 7.93 | ||||||||
| Performance Ratios (annualized): | ||||||||||||||||
| Return on average assets | 0.73% | 0.76% | 0.68% | 0.67% | 0.70% | 0.56% | 0.46% | 0.82% | ||||||||
| Return on average common equity | 7.30% | 7.40% | 5.79% | 7.62% | 7.71% | 5.87% | 5.21% | 9.97% | ||||||||
| Net interest margin | 4.10% | 3.98% | 3.96% | 3.77% | 3.91% | 3.76% | 3.74% | 4.11% | ||||||||
| Efficiency ratio (2) | 63.69% | 62.15% | 59.02% | 62.29% | 66.42% | 69.10% | 72.54% | 62.51% | ||||||||
| Other Ratios: | ||||||||||||||||
| Allowance for credit losses to total loans | 1.45% | 1.47% | 1.47% | 1.51% | 1.50% | 1.50% | 1.45% | 1.46% | ||||||||
| Nonperforming loans to total loans | 1.68% | 1.47% | 1.57% | 1.73% | 2.36% | 3.67% | 2.01% | 1.79% | ||||||||
| Nonperforming assets to total assets | 1.49% | 1.36% | 1.50% | 1.63% | 2.14% | 3.33% | 1.76% | 1.45% | ||||||||
| Net charge-offs (annualized) to average loans | 0.38% | 0.36% | 0.54% | 0.48% | 0.35% | 0.29% | 0.05% | 0.27% | ||||||||
| Tier 1 leverage ratio | 9.83% | 10.00% | 10.29% | 11.68% | 8.96% | 9.06% | 9.22% | 8.79% | ||||||||
| Tier 1 risk based capital ratio | 11.32% | 11.77% | 11.82% | 13.65% | 9.91% | 10.26% | 9.78% | 7.55% | ||||||||
| Total risk based capital ratio | 13.03% | 13.50% | 13.57% | 15.57% | 12.05% | 12.43% | 11.93% | 9.75% | ||||||||
| Average Balances (in thousands): | ||||||||||||||||
| Total assets | $ 1,881,761 | $ 1,815,383 | $ 1,732,168 | $ 1,631,200 | $ 1,518,979 | $ 1,497,036 | $ 1,451,295 | $ 1,098,362 | ||||||||
| Total earning assets | $ 1,821,943 | $ 1,753,989 | $ 1,677,573 | $ 1,579,603 | $ 1,468,296 | $ 1,453,503 | $ 1,406,421 | $ 1,057,543 | ||||||||
| Total loans (3) | $ 1,489,325 | $ 1,406,904 | $ 1,352,076 | $ 1,317,685 | $ 1,297,634 | $ 1,281,925 | $ 1,218,067 | $ 922,224 | ||||||||
| Total deposits | $ 1,529,498 | $ 1,472,061 | $ 1,381,305 | $ 1,321,405 | $ 1,164,978 | $ 1,157,227 | $ 1,152,376 | $ 863,930 | ||||||||
| Total borrowings | $ 151,240 | $ 146,638 | $ 141,406 | $ 146,819 | $ 199,479 | $ 190,065 | $ 177,955 | $ 138,374 | ||||||||
| Total stockholders' equity | $ 194,866 | $ 191,393 | $ 202,004 | $ 153,171 | $ 145,492 | $ 141,341 | $ 113,245 | $ 90,223 | ||||||||
| (1) Per share amounts and the number of outstanding shares have been adjusted to give effect to the 10% common stock dividend paid on October 1, 2008. | |||||||||||||||
| (2) Computed by dividing noninterest expense by the sum of net interest income and noninterest income. | |||||||||||||||
| (3) Includes loans held for sale. |
CONTACT: Eagle Bancorp, Inc.
Michael T. Flynn
301.986.1800