GlobeNewswire Inc | Jan 27, 2021 04:15PM EST

January 27, 2021

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

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

Fourth Quarter Key Metrics

-- Income StatementNet income of $38.9 million (2nd best quarterly earnings over the last eight quarters)Revenue growth of 4% over fourth quarter 2019Net interest margin of 2.98%Return on average assets ("ROAA") of 1.39%Return on average common equity ("ROACE") of 12.53%Return on average tangible common equity ("ROATCE") of 13.69%1Efficiency ratio of 38.34%

-- Balance SheetAverage assets of $11.1 billionBook value per share of $39.05 (up 9% since the end of 2019)Tangible book value per share of $35.74 (up 9.4% since the end of 2019)1Total risk based capital ratio of 17.04%Annualized net charge-off ratio to average loans of 0.28%Nonperforming assets to total assets of 0.59%Allowance for credit losses to total loans of 1.41%

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

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

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

"We once again thank all of our employees for their commitment and diligence in serving client needs and following safe health practices. As we look toward the new year, we remain focused on strong and balanced operating performance. We will continue to proactively manage any credit concerns while delivering best-in-class service to our customers. We will continue to exercise prudent oversight of expenses, while retaining an infrastructure that is competitive, supports our growth initiatives, and proactively enhances our risk management systems as we position ourselves for future growth.

Balance Sheet Highlights

-- Total assets at December31, 2020 were $11.1 billion, a 24% increase as compared to $9.0 billion at December31, 2019, and a 10% increase as compared to $10.1 billion at September 30, 2020. -- Total loans (excluding loans held for sale) were $7.8 billion at December31, 2020, a 3% increase as compared to $7.5 billion at December31, 2019, and a 2% decrease as compared to $7.9 billion at September 30, 2020. Paycheck Protection Program ("PPP") loans represented $454.8 million of total loans at the end of the fourth quarter. Excluding PPP loans, the decrease in loan balance during the fourth quarter 2020 is mostly attributable to the successful completion of construction projects and the related construction loan payoffs. -- Loans held for sale amounted to $88.2 million at December31, 2020 as compared to $56.7 million at December31, 2019, a 56% increase, and $79.1 million at September 30, 2020, a 12% increase. -- Investment portfolio totaled $1.2 billion at December31, 2020, a 36% increase from the $843.4 million balance at December31, 2019, and 18% increase from $977.6 million at September 30, 2020. This was due primarily to the deployment of deposit inflows into higher yielding assets. -- Total deposits at December31, 2020 were $9.2 billion, compared to deposits of $7.2billion at December31, 2019, a 27% increase, and a 12% increase compared to deposits of $8.2billion at September 30, 2020. The increase in deposits was attributable to the continued inflow of deposits across noninterest bearing and money market categories. -- Total borrowed funds (excluding customer repurchase agreements) were $568.1 million at December31, 2020, compared to $467.7 million at December31, 2019, and $568.0 million at September 30, 2020. -- Total shareholders equity increased 4% to $1.24 billion at December31, 2020 compared to $1.19 billion at December31, 2019, and increased 1% from $1.22 billion at September 30, 2020. The increase in shareholders equity at December31, 2020 compared to the same period in 2019 was primarily the result of growth in retained earnings partially offset by $61.4 million in stock repurchases, dividends declared of $28.3 million, by the day one CECL entry of $10.9 million net of taxes, and by a $12.5 million increase in other comprehensive income, net of taxes.In the fourth quarter of 2020, the Company completed repurchases under the Stock Repurchase Plan approved in August 2019. In December 2020, the Board of Directors approved a new stock repurchase plan of up to 1,588,848 shares, or approximately 5% of shares outstanding, which commenced January 1, 2021.

___________________1 A reconciliation of GAAP financial measures is provided in the tables that accompany this document.2 A reconciliation of GAAP financial measures is provided in the tables that accompany this document.

December September December Change Change 31, 30, 31, since since 2020 2020 2019 September December 30, 2020 31, 2019Book value $ 39.05 $ 37.96 $ 35.82 2.9 % 9.0 %per shareTangiblebook value $ 35.74 $ 34.70 $ 32.67 3.0 % 9.4 %per shareActualsharesoutstanding 31.78 32.23 33.24 (1.4 )% (4.4 )%(inmillions)

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

December September December Change Change 31, 30, 31, since since 2020 2020 2019 September December 30, 2020 31, 2019Total Risk 17.04 % 16.72 % 16.20 % 1.90 % 5.20 %Based CapitalCommon Equity 13.48 % 13.19 % 12.87 % 2.27 % 4.82 %Tier 1Tier 1 Risk 13.48 % 13.19 % 12.87 % 2.27 % 4.82 %Based CapitalTier 1 10.31 % 10.82 % 11.62 % (4.70 )% (11.30 )%LeverageCommon Equity 11.16 % 12.11 % 13.25 % (7.80 )% (15.80 )%RatioTangibleCommon Equity 10.31 % 11.18 % 12.22 % (7.80 )% (15.60 )%Ratio

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

-- Net interest income was $81.4 million for the three months ended December31, 2020 and $80.7 million for the same period in 2019. Overall, the increase in average earning assets of 19% was substantially offset by the reduction in net interest margin. -- Net interest margin was 2.98% for the three months ended December31, 2020, as compared to 3.49% for the three months ended December31, 2019, which reflects the impact of lower market interest rates and higher cash balances given strong deposit flows, partially offset by improved funding mix and lower funding costs. Additionally, the net interest margin was negatively impacted by approximately two basis points for the quarter due to lower rates on PPP loans (versus excluding PPP loans). Average liquidity for the fourth quarter of 2020 was $1.78 billion versus $739 million for the fourth quarter of 2019. -- Provision for credit losses was $4.9 million for the three months ended December31, 2020 as compared to $2.9 million for the three months ended December31, 2019. The higher provisioning in the fourth quarter of 2020, as compared to the fourth quarter of 2019, was primarily due to the impact of COVID-19 on our actual and expected future credit losses, as modeled under the new CECL accounting standard. -- Net charge-offs of $5.5 million in the fourth quarter of 2020 represented an annualized 0.28% of average loans, excluding loans held for sale, as compared to $3.0 million, or an annualized 0.16% of average loans, excluding loans held for sale, in the fourth quarter of 2019. Net charge-offs in the fourth quarter of 2020 were attributable primarily to a single restaurant credit of $4.1 million. -- Noninterest income for the three months ended December31, 2020 increased to $9.9 million from $6.7 million for the three months ended December31, 2019, a 47% increase. The increase was primarily due to a substantially higher gain on the sale of residential mortgage loans of $5.9 million for the fourth quarter of 2020 as compared to $2.5 million for the fourth quarter of 2019. Residential mortgage loans made in the fourth quarter of 2020 were made exclusively on a best efforts basis, whereas residential mortgage loans made in the fourth quarter of 2019 were made predominantly on a mandatory basis. Underlying these gains were residential mortgage loan locked commitments of $427.5 million for the fourth quarter of 2020 as compared to $203.2 million for the fourth quarter of 2019. -- Noninterest expenses totaled $35.0 million for the three months ended December31, 2020, as compared to $34.7 million for the three months ended December31, 2019, a 1% increase. The major items of note were legal and FDIC fees.Legal, accounting and professional fees were $2.3 million in the fourth quarter of 2020, down from $4.1million in the fourth quarter of 2019. Included in the $2.3 million are expenses of $1.1 million primarily associated with the previously disclosed and ongoing governmental investigations and class action lawsuit. Additionally, this $1.1 million is net of recognized receivables for expected insurance recoveries of legal expenditures where we believe recovery is probable pursuant to our D&O insurance policies. The Company does not include any offset for potential claims we may have in the future as to which recovery is impossible to predict at this time.FDIC expenses were $2.4 million in fourth quarter of 2020, up from $879 thousand in the fourth quarter of 2019. The increase is primarily due to nonrecurring $633 thousand credit in 2019 and a higher assessment base in 2020 resulting from growth in total assets.

-- Efficiency ratio was 38.34% for the fourth quarter of 2020,improved from 39.71% for the fourth quarter of 2019 as revenue exceeded the increase in noninterest expenses. -- Effective income tax rate for the fourth quarter of 2020 was 23.7% as compared to 28.8% for the fourth quarter of 2019. The decrease was due primarily to a decrease in nondeductible expenses, state taxes and adjustments related to the completion of the 2019 tax returns.

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

-- Net interest income was $321.6 million for the year ended December 31, 2020, versus $324.0 million for the year ended December 31, 2019. Overall, the increase in average earnings assets of 17% was offset by the reduction in net interest margin. -- Net interest margin was 3.19% for the year ended December31, 2020, as compared to 3.77% for the year ended December31, 2019. This decline was due to the sharply lower interest rate environment in 2020 as compared to 2019, and to substantially higher on balance sheet liquidity. While the Company has been proactive in lowering its cost of funds (0.68% for the year ended December31, 2020 compared to 1.23% in 2019), the yield on earning assets also declined by 113 basis points (from 5.00% to 3.87%).Average on balance sheet liquidity was $1.2 billion for the year 2020 as compared to $415 million for the year 2019.Additionally, the net interest margin was negatively impacted by approximately nine basis points due to lower rates on PPP loans as compared to non-PPP loans. -- Provision for credit losses was $45.6 million for the year ended December31, 2020 as compared to $13.1 million for the year ended December31, 2019. The higher provisioning for the year ended December31, 2020, as compared to the same period in 2019, is primarily due to the implementation of CECL (effective January 1, 2020) and the impact of COVID-19 on our actual and expected future credit losses. -- Net charge-offs of $20.1 million for the year ended December31, 2020 represented 0.26% of average loans, excluding loans held for sale, as compared to $9.4 million, or 0.13% of average loans, excluding loans held for sale, in the year ended December31, 2019. Net charge-offs in 2020 consisted primarily of $12 million in commercial loans, $7.2 million in commercial real estate loans, and $815 thousand in mortgage loans. -- Noninterest income for the year ended December31, 2020 increased to $45.7 million from $25.7 million for the year ended December31, 2019, a 78% increase. The increase was due substantially to higher gains on the sale of residential mortgage loans of $21.8 million in 2020 as compared to $8.2 million in 2019. Underlying these gains were residential mortgage loan locked commitments of $1.9 billion in 2020 as compared to $877.3 million in 2019. -- Noninterest expenses totaled $144.2 million for the year ended December31, 2020, as compared to $139.9 million for the year ended December31, 2019, a 3% increase. Salaries and employee benefits were $74.4 million, a decrease of $5.4 million or 7% for the year ended December31, 2020 compared to $79.8 million for the same period in 2019. The decrease was primarily due to the $6.2 million of largely nonrecurring charges accrued in the first quarter of 2019 related to share-based compensation awards and the resignation of our former CEO and Chairman in March 2019, of which a portion was released in the second quarter of 2020. The decrease was partially offset by higher salaries attributable to merit increases and increased headcount in 2020. Legal, accounting and professional fees were $16.4 million for the year ended December31, 2020, an increase of $4.2 million or 35% year-over-year. Legal fees and expenditures of $9.1 million for the year ended December31, 2020 were primarily associated with previously disclosed ongoing governmental investigations and related subpoenas and document requests and our defense of the previously disclosed class action lawsuit. The amount of legal fees and expenditures for the year is net of the probable expected insurance coverage recovery pursuant to our D&O insurance policies but does not include any offset for potential claims we may have in the future as to which recovery is impossible to predict at this timeFDIC expenses were $7.9 million in 2020, up from $3.2 million in 2019. The year-over-year increase is primarily due to a nonrecurring credit in 2019 and a higher assessment base in 2020 resulting from growth in total assets. -- Efficiency Ratio for 2020 was 39.25% as compared to 39.99% for 2019. -- Effective income tax rates were 24.9% and 27.4% for 2020 and 2019, respectively. The decrease in the effective tax rate was due primarily to a decrease in nondeductible expenses, state taxes and adjustments related to the completion of the 2019 tax returns.

Additional Quarterly Financial Commentary

-- Loans Closed/Payoffs: New loans closed in the fourth quarter of 2020 were similar to the level closed in the fourth quarter of 2019, but were outpaced by loan payoffs in the fourth quarter of 2020. Unfunded commitments declined to $1.99 billion as of December 31, 2020 as compared to $2.28 billion as of December 31, 2019. -- Loan Mix: In addition to the current sharply lower interest rate environment as compared to 2019, there has been less focus on higher risk and higher yielding construction lending and more attention towards strong commercial real estate credits secured by stabilized income producing properties. The yield on the loan portfolio was 4.50% for the fourth quarter of 2020 as compared to 5.18% for the fourth quarter of 2019 and 4.46% for the third quarter of 2020. -- Paycheck Protection Program: As a Small Business Administration ("SBA") preferred lender, the Bank actively participated in the PPP, and at December31, 2020 had an outstanding balance of PPP loans of $454.8 million to just over 1,400 businesses. The stated rate for these loans is 1.00%. For the fourth quarter of 2020, the average yield which includes fee amortization was 2.55%. The lower loan yield on these PPP loans negatively affected fourth quarter loan portfolio yields by 12 basis points. For 2020, the average yield which includes fee amortization was 2.48%. The lower loan yield on these PPP loans negatively affected our twelve month loan portfolio yields in 2020 by 21 basis points. Excluding PPP loans, loan yields were 4.62% for the fourth quarter of 2020, and were 4.87% for the full year 2020. -- Deposit Mix: The Company continues to emphasize achieving core deposit growth and we continue to seek well-structured new loan opportunities. The mix of noninterest deposits to total deposits remained favorable and averaged 33% in the fourth quarter of 2020, as compared to 30% in the fourth quarter of 2019. Certain long-term core fiduciary clients increased their deposit balances in the fourth quarter of 2020 seeking some nominal interest income as market interest rates continued to remain quite low. While the Bank was able to invest these deposits into earning assets, the spreads were narrow and contributed to a decline in the net interest margin.

-- Nonperforming Loans and Assets: At December31, 2020, the Companys nonperforming loans were $60.9 million (0.79% of total loans) as compared to $48.7 million (0.65% of total loans) at December31, 2019. Nonperforming assets amounted to $65.9 million (0.59% of total assets) at December31, 2020 compared to $50.2 million (0.56% of total assets) at December31, 2019. -- CECL: The Company adopted the new CECL accounting standard (ASC 326) in the first quarter of 2020. The Company made an initial adjustment to the allowance for credit losses of $10.6 million along with $4.1 million to the reserve for unfunded commitments. This adjustment increased the ratio of the allowance to total loans from 0.98% at December 31, 2019 to 1.12% at January 1, 2020. Based on our ongoing risk analysis and modeling under the CECL allowance methodology, the Company further increased the allowance for credit losses to 1.40% at September 30, 2020 and 1.41% of total loans as of December 31, 2020, which reflects COVID-19 risks assessments and an updated unemployment forecast for the Washington, D.C. metropolitan area. Additionally, the qualitative risk factors have been increased associated with our higher mix of Accommodation & Food Services industry loans. The allowance for credit losses of $109.6 million at December31, 2020 represented 180% of nonperforming loans at that date, as compared to a coverage ratio of 190% at September 30, 2020, and 151% at December31, 2019. -- Loan Deferrals: Management is closely monitoring borrowers and remains attentive to signs of deterioration in borrowers financial conditions and is proactively taking steps to mitigate risk as appropriate. Significant effort has been placed on moving loans off of deferral status. As of September 30, 2020, a total of 321 notes were on deferral status representing $851 million in outstanding exposure or 10.8% of total loans. As of December 31, 2020, deferrals had been reduced to 36 notes with $72.4 million in outstanding exposure or 0.9% of gross loans. The table that follows provides additional detail on deferrals by Industry/Collateral Type.

(dollars in millions) Total Total Weighted Avg LoanIndustry/ Number Outstanding Deferred Deferred % Avg SizeCollateral Type of (in Note Outstanding Outstanding LTV of RE (in Notes^1 millions)^1 Count (in Deferred Collateral millions) millions)Hotels 43 $ 529 $ ? $ ? ? % N/A N/A Transportation & 60 $ 171 $ 29 $ 38 22 % 70 % $ 1 WarehousingRestaurants 393 $ 238 $ 2 $ 5 2 % 75 % $ 3 Retail 139 $ 276 $ 1 $ 4 1 % 75 % $ 4 Other Real 911 $ 3,688 $ 2 $ 6 >0.5 44 % $ 3 EstateHealthcare 197 $ 274 $ 1 $ 19 7 % 87 % $ 19 Art/Entertainment/ 66 $ 139 $ ? $ ? ? % N/A N/A RecreationOther 4,473 $ 2,445 $ 1 $ 0.4 >0.5 68 % $ 1 Total 6,282 $ 7,760 $ 36 $ 72.4 1 % N/A N/A 1 Includes 1,433 notes and $455 million in PPP loans.

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

(dollars in millions) Industry/ September Other December Weighted Current- Current- 30- NonCollateral 30,2020 Payoffs Payments 31,2020 AvgLTV Pass Watch 89 PerformingType Balance / Balance of RE Rated List Past Loans Adv Collateral DueHotels $ 387 $ (36 ) <0.5 $ 351 60 % 7 298 46 0Transportation $ 134 $ ? $ 4 $ 138 64 % 0 138 0 0& WarehousingRestaurants $ 115 $ (26 ) $ (2 ) $ 87 64 % 18 44 11 14Retail $ 73 $ 4 <0.5 $ 77 69 % 3 72 1 0Other Real $ 34 $ (1 ) <0.5 $ 33 45 % 5 24 5 0EstateHealthcare $ 28 $ ? <0.5 $ 28 84 % 2 20 0 6Art/Entertainment/ $ 23 $ ? <0.5 $ 22 15 % 4 10 8 0RecreationOther $ 57 $ (2 ) $ (1 ) $ 55 74 % 27 26 2 <0.5Total $ 851 $ (61 ) $ 1 $ 791 62 % 66 632 73 20

-- TDRs: None of the deferrals are reflected as troubled debt restructurings ("TDRs") in the Companys balance sheet and asset quality measures due to the provision of the Coronavirus Aid Relief and Economic Security Act (the "CARES Act") that permits U.S. financial institutions to temporarily suspend the GAAP requirements to treat such short-term loan modifications as TDRs. These provisions have also been confirmed by interagency guidance issued by the federal banking agencies and confirmed with staff members of the Financial Accounting Standards Board. Other loan portfolio areas of concern at December31, 2020 and additional COVID-19 loan related matters are discussed below.

-- Other Exposures: Industry segments we believe may be more at risk within the Loan Portfolio are presented below as of year end December31, 2020:

PrincipalIndustry Balance % of Loan Portfolio (in thousands)Accommodation & Food Services $ 768,568 ^1 9.9 %Retail Trade $ 98,882 ^2 1.3 % 1 Includes $81,832 of PPP loans. 2 Includes $13,512 of PPP loans.

Accommodation and Food Services exposure represents 9.9% of the Banks loan portfolio as of December31, 2020 among 311 customers. Retail Trade exposure represents 1.3% of the Banks loan portfolio. The Bank has ongoing extensive outreach to these customers, and is assisting where necessary with PPP loans and payment deferrals or interest only periods in the short term as customers work with the Bank to develop longer term stabilization strategies as the landscape of the COVID-19 pandemic evolves. The duration and severity of the pandemic will likely impact future credit challenges in these areas.

In addition to the specific industry data listed above, the Bank has exposure on loans secured by commercial real estate of the following property types as of December31, 2020:

Property Type Principal Balance % of Loan Portfolio (in thousands)Restaurant $ 44,541 0.6 %Hotel $ 35,741 0.5 %Retail $ 377,269 4.9 %

Although not evidenced at December31, 2020, it is anticipated that some portion of the CRE (commercial real estate) loans secured by the above property types could be impacted by the tenancies associated with impacted industries. The Bank is working with CRE investor borrowers and monitoring rent collections as part of our portfolio management process.

-- Legal Update: On January 25, 2021, the Company entered into a settlement agreement (to be filed in DC Superior Court) with respect to a previously disclosed shareholder demand letter, covering substantially the same subject matters as the disclosed civil securities class action litigation pending in the United States District Court for the Southern District of New York (SDNY). The demand letter alleges, derivatively on behalf of the Company, that certain named individual directors and officers breached their fiduciary duties with respect to the matters referenced in the demand letter. As required by DC Superior Court administrative procedures, shareholder's counsel will first file a derivative action complaint against the individual directors and officers named in the demand letter, and the Company as nominal Defendant. Then once the complaint is processed and the DC Superior Court dockets the case, shareholder's counsel will file the executed stipulation of settlement accompanied by the shareholder's brief in support of their unopposed motion to approve the settlement. The settlement is subject to certain conditions and limitations, including court approval.Pursuant to the executed stipulation of settlement of the demand litigation, the Company has agreed to implement certain corporate governance enhancements (many of which are already underway) and to invest an additional $2 million incremental spend above 2020 levels (over the course of three years) to enhance its corporate governance, and risk and compliance controls and infrastructure. The Company has made significant improvements to its corporate governance and internal controls, including those it described in its 2019 10-K, filed on March 2, 2020. As part of the resolution of the matters that were the subject of the demand letter, once court approval is granted, the Company will make a one-time payment to the shareholders counsel in the amount of $500,000 for attorneys fees and expenses (which one-time amount is expected to be recovered pursuant to the Companys D&O insurance policy).The stipulation of settlement further provides for releases by the demanding shareholder on behalf of all Eagle Bancorp shareholders of liability with respect to the subject matters described in the demand letter and any other potential future shareholder derivative claims against all current and former Company and EagleBank officers and directors, and a release by the Company of certain claims against all current and former officers and directors, subject to court approval. The stipulation of settlement does not include or constitute an admission, concession, or finding of any fault, liability, or wrongdoing by the Company, EagleBank or any defendant. Although the Company believes the stipulation of settlement is in the best interests of the Companys shareholders, there can be no assurance that the stipulation of settlement will be approved by the court.The previously disclosed putative securities class action against the Company and certain of its current and former officers and directors remains outstanding. However, on December 23, 2020, the securities class action plaintiffs and defendants filed a stipulation to stay the class action litigation pending a non-binding mediation in the spring of 2021, on a date to be determined. The SDNY so-ordered the stipulation on December 24, 2020. There can be no assurance, however, that the Class Action litigation will be settled.

Additional financial information: The financial information which follows provides more detail on the Companys financial performance for the three months and full year ended December31, 2020 as compared to the three months and full year ended December31, 2019 as well as providing eight quarters of trend data. Persons wishing additional information should refer to the Companys annual report on Form 10-K for the year ended December 31, 2019, the Company's quarterly reports on Form 10-Q for the quarters ended March 31, 2020, June 30, 2020, and September 30, 2020, respectively, and other reports filed with the Securities and Exchange Commission (the SEC).

About Eagle Bancorp: The Company is the holding company for EagleBank, which commenced operations in 1998. The Bank is headquartered in Bethesda, Maryland, and operates through twenty branch offices, located in Suburban Maryland, Washington, D.C. and Northern Virginia. The Company focuses on building relationships with businesses, professionals and individuals in its marketplace.

Conference Call: Eagle Bancorp will host a conference call to discuss its fourth quarter and year-end 2020 financial results on Thursday, January 28, 2021 at 10:00 a.m. eastern time. The public is invited to listen to this conference call by dialing 1.877.303.6220, conference ID Code 2276066, or by accessing the call on the Companys website, www.EagleBankCorp.com. A replay of the conference call will be available on the Companys website through February 11, 2021.

Forward-looking Statements: This press release contains forward-looking statements within the meaning of the Securities Exchange Act of 1934, as amended, including statements of goals, intentions, and expectations as to future trends, plans, events or results of Company operations and policies and regarding general economic conditions. In some cases, forward-looking statements can be identified by use of words such as may, will, can, anticipates, believes, expects, plans, estimates, potential, continue, should, could, strive, feel and similar words or phrases. These statements are based upon current and anticipated economic conditions, nationally and in the Companys market (including the macroeconomic and other challenges and uncertainties resulting from the COVID-19 pandemic, including on our credit quality and business operations), interest rates and interest rate policy, competitive factors, and other conditions which by their nature, are not susceptible to accurate forecast and are subject to significant uncertainty. Because of these uncertainties and the assumptions on which this discussion and the forward-looking statements are based, actual future operations and results in the future may differ materially from those indicated herein. For details on factors that could affect these expectations, see the risk factors and other cautionary language included in the Companys Annual Report on Form 10-K for the year ended December 31, 2019, the Companys Quarterly Report on Form 10-Q for the quarters ended March 31, 2020, June 30, 2020 and September 30, 2020, the Companys upcoming Annual Report on Form 10-K for the year ended December 31, 2020, and in other periodic and current reports filed with the SEC. Readers are cautioned against placing undue reliance on any such forward-looking statements. The Companys past results are not necessarily indicative of future performance. All information is as of the date of this press release. Any forward-looking statements made by or on behalf of the Company speak only as to the date they are made. Except to the extent required by applicable law or regulation, the Company undertakes no obligation to revise or update publicly any forward-looking statement for any reason.

Eagle Bancorp, Inc.ConsolidatedFinancial Highlights(Unaudited)(dollars inthousands, except pershare data) Three Months Ended December Years Ended December 31, 31, 2020 2019 2020 2019Income Statements:Total interest $ 94,680 $ 107,183 $ 389,986 $ 429,630 incomeTotal interest 13,263 26,473 68,424 105,585 expenseNet interest 81,417 80,710 321,562 324,045 incomeProvision for 4,917 2,945 45,571 13,091 credit lossesProvision forUnfunded 406 ? 1,380 ? CommitmentsNet interestincome after 76,094 77,765 274,611 310,954 provision forcredit lossesNoninterestincome (before 9,722 6,845 43,881 24,182 investmentgain)Gain (loss) onsale of 165 (111 ) 1,815 1,517 investmentsecuritiesTotalnoninterest 9,887 6,734 45,696 25,699 incomeTotalnoninterest 35,008 34,726 144,162 139,862 expenseIncome beforeincome tax 50,973 49,773 176,145 196,791 expenseIncome tax 12,081 14,317 43,928 53,848 expenseNet income $ 38,892 $ 35,456 $ 132,217 $ 142,943 Per Share Data: Earnings perweighted $ 1.21 $ 1.06 $ 4.09 $ 4.18 average commonshare, basicEarnings perweighted $ 1.21 $ 1.06 $ 4.08 $ 4.18 average commonshare, dilutedWeightedaverage commonshares 32,037,099 33,468,572 32,334,201 34,178,804 outstanding,basicWeightedaverage commonshares 32,075,175 33,498,681 32,383,021 34,210,646 outstanding,dilutedActual sharesoutstanding at 31,779,663 33,241,496 31,779,663 33,241,496 period endBook value percommon share at $ 39.05 $ 35.82 $ 39.05 $ 35.82 period endTangible bookvalue per $ 35.74 $ 32.67 $ 35.74 $ 32.67 common share atperiod end ^(1)Dividend per $ 0.22 $ 0.22 $ 0.88 $ 0.66 common sharePerformanceRatios (annualized):Return on 1.39 % 1.49 % 1.28 % 1.61 %average assetsReturn onaverage common 12.53 % 11.78 % 10.98 % 12.20 %equityReturn onaverage 13.69 % 12.91 % 12.03 % 13.40 %tangible commonequityNet interest 2.98 % 3.49 % 3.19 % 3.77 %marginEfficiency 38.34 % 39.71 % 39.25 % 39.99 %ratio ^(2)Other Ratios: Allowance forcredit losses 1.41 % 0.98 % 1.41 % 0.98 %to total loans^(3)Allowance forcredit lossesto total 179.80 % 151.16 % 179.80 % 151.16 %nonperformingloansNonperformingloans to total 0.79 % 0.65 % 0.79 % 0.65 %loans ^(3)Nonperformingassets to total 0.59 % 0.56 % 0.59 % 0.56 %assetsNet charge-offs(annualized) to 0.28 % 0.16 % 0.26 % 0.13 %average loans ^(3)Common equity 11.16 % 13.25 % 11.16 % 13.25 %to total assetsTier 1 capital(to average 10.31 % 11.62 % 10.31 % 11.62 %assets)Total capital(to risk 17.04 % 16.20 % 17.04 % 16.20 %weightedassets)Common equitytier 1 capital(to risk 13.48 % 12.87 % 13.48 % 12.87 %weightedassets)Tangible commonequity ratio ^ 10.31 % 12.22 % 10.31 % 12.22 %(1)Loan Balances -Period End (in thousands):Commercial and $ 1,437,433 $ 1,545,906 $ 1,437,433 $ 1,545,906 IndustrialPPP loans $ 454,771 $ ? $ 454,771 $ ? Commercial realestate - income $ 3,687,000 $ 3,702,747 $ 3,687,000 $ 3,702,747 producingCommercial realestate - owner $ 997,694 $ 985,409 $ 997,694 $ 985,409 occupied1-4 Family $ 76,592 $ 104,221 $ 76,592 $ 104,221 mortgageConstruction -commercial and $ 873,261 $ 1,035,754 $ 873,261 $ 1,035,754 residentialConstruction -C&I (owner $ 158,905 $ 89,490 $ 158,905 $ 89,490 occupied)Home equity $ 73,167 $ 80,061 $ 73,167 $ 80,061 Other consumer $ 1,389 $ 2,160 $ 1,389 $ 2,160 AverageBalances (in thousands):Total assets $ 11,141,826 $ 9,426,220 $ 10,349,963 $ 8,853,066 Total earning $ 10,872,259 $ 9,160,034 $ 10,080,239 $ 8,585,184 assetsTotal loans $ 7,896,324 $ 7,532,179 $ 7,868,523 $ 7,332,886 Total deposits $ 9,227,733 $ 7,716,973 $ 8,502,022 $ 7,231,679 Total $ 596,307 $ 449,432 $ 569,446 $ 383,230 borrowingsTotalshareholders? $ 1,235,174 $ 1,194,337 $ 1,204,341 $ 1,172,051 equity

(1) Tangible common equity to tangible assets (the "tangible common equity ratio"), tangible book value per common share, and the annualized return on average tangible common equity are non-GAAP financial measures derived from GAAP based amounts. The Company calculates the tangible common equity ratio by excluding the balance of intangible assets from common shareholders' equity and dividing by tangible assets. The Company calculates tangible book value per common share by dividing tangible common equity by common shares outstanding, as compared to book value per common share, which the Company calculates by dividing common shareholders' equity by common shares outstanding. The Company calculates the annualized return on average tangible common equity ratio by dividing net income available to common shareholders by average tangible common equity which is calculated by excluding the average balance of intangible assets from the average common shareholders equity. The Company considers this information important to shareholders as tangible equity is a measure that is consistent with the calculation of capital for bank regulatory purposes, which excludes intangible assets from the calculation of risk based ratios and as such is useful for investors, regulators, management and others to evaluate capital adequacy and to compare against other financial institutions. The table below provides reconciliation of financial measures defined by GAAP with non-GAAP financial measures. (2) Computed by dividing noninterest expense by the sum of net interest income and noninterest income. The efficiency ratio measures a banks overhead as a percentage of its revenue.(3) Excludes loans held for sale.

GAAP Reconciliation (Unaudited)(dollars in thousands except per share data) Three Months Year Ended Year Ended Three Months Ended Ended December 31, December 31, December 31, December 31, 2020 2020 2019 2019Commonshareholders' $ 1,240,891 $ 1,190,681 equityLess:Intangible (105,114 ) (104,739 ) assetsTangible $ 1,135,777 $ 1,085,942 common equityBook valueper common $ 39.05 $ 35.82 shareLess:Intangiblebook value (3.31 ) (3.15 ) per commonshareTangible bookvalue per $ 35.74 $ 32.67 common shareTotal assets $ 11,117,802 $ 8,988,719 Less:Intangible (105,114 ) (104,739 ) assetsTangible $ 11,012,688 $ 8,883,980 assetsTangiblecommon equity 10.31 % 12.22 % ratioAveragecommon $ 1,235,173 $ 1,204,341 $ 1,172,051 $ 1,194,337 shareholders'equityLess: Averageintangible (105,131 ) (104,903 ) (105,167 ) (104,784 )assetsAveragetangible $ 1,130,042 $ 1,099,438 $ 1,066,884 $ 1,089,553 common equityNet IncomeAvailable to $ 38,892 $ 132,217 $ 142,943 $ 35,456 CommonShareholdersAveragetangible $ 1,130,042 $ 1,099,438 $ 1,066,884 $ 1,089,553 common equityAnnualizedReturn onAverage 13.69 % 12.03 % 13.40 % 12.91 %TangibleCommon Equity

Eagle Bancorp, Inc.Consolidated Balance Sheets (Unaudited)(dollars in thousands, except per share data)Assets December 31, September 30, December 31, 2020 2020 2019Cash and due from banks $ 8,435 $ 7,559 $ 7,539 Federal funds sold 28,200 30,830 38,987 Interest bearing deposits withbanks and other short-term 1,752,420 818,719 195,447 investmentsInvestment securities availablefor sale, at fair value(amortized cost of $1,129,255,$956,803, and $839,192, andallowance for credit losses of 1,151,083 977,570 843,363 $167, $156, and $0, as ofDecember 31, 2020, September30, 2020 and December 31, 2019,respectively).Federal Reserve and Federal 40,104 40,061 35,194 Home Loan Bank stockLoans held for sale 88,205 79,084 56,707 Loans 7,760,212 7,880,255 7,545,748 Less allowance for credit (109,579 ) (110,215 ) (73,658 )lossesLoans, net 7,650,633 7,770,040 7,472,090 Premises and equipment, net 13,553 12,204 14,622 Operating lease right-of-use 25,237 27,180 27,372 assetsDeferred income taxes 38,571 36,363 29,804 Bank owned life insurance 76,729 76,326 75,724 Intangible assets, net 105,114 105,165 104,739 Other real estate owned 4,987 4,987 1,487 Other assets 134,531 120,206 85,644 Total Assets $ 11,117,802 $ 10,106,294 $ 8,988,719 Liabilities and Shareholders' EquityDeposits: Noninterest bearing demand $ 2,809,334 $ 2,384,108 $ 2,064,367 Interest bearing transaction 756,923 823,607 863,856 Savings and money market 4,645,186 3,956,553 3,013,129 Time, $100,000 or more 546,173 553,949 663,987 Other time 431,587 460,568 619,052 Total deposits 9,189,203 8,178,785 7,224,391 Customer repurchase agreements 26,726 24,293 30,980 Other short-term borrowings 300,000 300,000 250,000 Long-term borrowings 268,077 267,980 217,687 Operating lease liabilities 28,022 30,457 29,959 Reserve for unfunded 5,498 5,092 ? commitmentsOther liabilities 59,384 76,285 45,021 Total liabilities 9,876,910 8,882,892 7,798,038 Shareholders' Equity Common stock, par value $.01per share; shares authorized 100,000,000, sharesissued and outstanding31,779,663, 32,228,636, and 315 320 331 33,241,496, respectivelyAdditional paid in capital 427,016 442,592 482,286 Retained earnings 798,061 766,219 705,105 Accumulated other comprehensive 15,500 14,271 2,959 income (loss)Total Shareholders' Equity 1,240,892 1,223,402 1,190,681 Total Liabilities and $ 11,117,802 $ 10,106,294 $ 8,988,719 Shareholders' Equity

Eagle Bancorp, Inc.Consolidated Statements of Income (Unaudited)(dollars in thousands, except per share data) Three Months Ended Years Ended December 31, December 31,Interest Income 2020 2019 2020 2019Interest and fees on $ 89,875 $ 98,916 $ 368,854 $ 400,923 loansInterest and dividends on 4,301 5,297 18,440 21,037 investment securitiesInterest on balances withother banks and 497 2,905 2,601 7,438 short-term investmentsInterest on federal funds 7 65 91 232 soldTotal interest income 94,680 107,183 389,986 429,630 Interest Expense Interest on deposits 9,511 23,089 53,566 91,026 Interest on customer 36 90 293 345 repurchase agreementsInterest on other 506 315 1,869 2,298 short-term borrowingsInterest on long-term 3,210 2,979 12,696 11,916 borrowingsTotal interest expense 13,263 26,473 68,424 105,585 Net Interest Income 81,417 80,710 321,562 324,045 Provision for Credit 4,917 2,945 45,571 13,091 LossesProvision for Unfunded 406 ? 1,380 ? CommitmentsNet Interest Income AfterProvision For Credit 76,094 77,765 274,611 310,954 LossesNoninterest Income Service charges on 988 1,453 4,416 6,247 depositsGain on sale of loans 5,840 2,600 22,089 8,474 Gain (loss) on sale of 165 (111 ) 1,815 1,517 investment securitiesIncrease in the cashsurrender value of bank 416 418 2,071 1,703 owned life insuranceOther income 2,478 2,374 15,305 7,758 Total noninterest income 9,887 6,734 45,696 25,699 Noninterest Expense Salaries and employee 20,151 19,360 74,440 79,842 benefitsPremises and equipment 3,301 3,380 15,715 14,387 expensesMarketing and advertising 1,161 1,200 4,278 4,826 Data processing 2,747 2,251 10,702 9,412 Legal, accounting and 2,342 4,121 16,406 12,195 professional feesFDIC insurance 2,385 879 7,941 3,206 Other expenses 2,921 3,535 14,680 15,994 Total noninterest expense 35,008 34,726 144,162 139,862 Income Before Income Tax 50,973 49,773 176,145 196,791 ExpenseIncome Tax Expense 12,081 14,317 43,928 53,848 Net Income $ 38,892 $ 35,456 $ 132,217 $ 142,943 Earnings Per Common Share Basic $ 1.21 $ 1.06 $ 4.09 $ 4.18 Diluted $ 1.21 $ 1.06 $ 4.08 $ 4.18

Eagle Bancorp, Inc.Consolidated Average Balances, Interest Yields And Rates (Unaudited)(dollars in thousands) Three Months Ended December 31, 2020 2019 Average Average Average Average Balance Interest Yield/ Balance Interest Yield/ Rate RateASSETS Interestearning assets:Interestbearingdeposits withother banks $ 1,752,046 $ 496 0.11 % $ 710,038 $ 2,905 1.62 %and othershort-terminvestmentsLoans held 70,945 520 2.93 % 57,779 524 3.63 %for sale ^(1)Loans ^(1) 7,896,324 89,356 4.50 % 7,532,179 98,392 5.18 %(2)Investmentsecurities 1,122,078 4,300 1.52 % 831,143 5,297 2.53 %available forsale ^(2)Federal funds 30,866 8 0.10 % 28,895 65 0.89 %soldTotalinterest 10,872,259 94,680 3.46 % 9,160,034 107,183 4.64 %earningassetsTotalnoninterest 378,406 340,186 earningassetsLess:allowance for 108,839 74,000 credit lossesTotalnoninterest 269,567 266,186 earningassetsTOTAL ASSETS $ 11,141,826 $ 9,426,220 LIABILITIESAND SHAREHOLDERS'EQUITYInterestbearing liabilities:Interestbearing $ 772,056 $ 511 0.26 % $ 881,453 $ 2,284 1.03 %transactionSavings and 4,443,676 4,652 0.42 % 3,144,249 12,195 1.54 %money marketTime deposits 998,872 4,347 1.73 % 1,400,330 8,610 2.44 %Totalinterest 6,214,604 9,510 0.61 % 5,426,032 23,089 1.69 %bearingdepositsCustomerrepurchase 28,259 36 0.51 % 31,231 90 1.14 %agreementsOthershort-term 300,003 506 0.66 % 200,547 315 0.61 %borrowingsLong-term 268,045 3,211 4.69 % 217,654 2,979 5.36 %borrowingsTotalinterest 6,810,911 13,263 0.77 % 5,875,464 26,473 1.79 %bearingliabilitiesNoninterestbearing liabilities:Noninterestbearing 3,013,129 2,290,941 demandOther 82,612 65,478 liabilitiesTotalnoninterest 3,095,741 2,356,419 bearingliabilitiesShareholders? 1,235,174 1,194,137 EquityTOTALLIABILITIESAND $ 11,141,826 $ 9,426,020 SHAREHOLDERS'EQUITYNet interest $ 81,417 $ 80,710 incomeNet interest 2.69 % 2.85 %spreadNet interest 2.98 % 3.49 %marginCost of funds 0.48 % 1.15 %

(1) Loans placed on nonaccrual status are included in average balances. Netloan fees and late charges included in interest income on loans totaled $6.2million and $4.7 million for the three months ended December 31, 2020 and 2019,respectively.(2) Interest and fees on loans and investments exclude tax equivalentadjustments.

Eagle Bancorp, Inc.Consolidated Average Balances, Interest Yields and Rates (Unaudited)(dollars in thousands)

Years Ended December 31, 2020 2019 Average Average Average Average Balance Interest Yield/ Balance Interest Yield/ Rate RateASSETS Interestearning assets:Interestbearingdeposits withother banks $ 1,181,591 $ 2,601 0.22 % $ 392,245 $ 7,438 1.90 %and othershort-terminvestmentsLoans held 67,361 2,125 3.15 % 40,192 1,565 3.89 %for sale ^(1)Loans ^(1) 7,868,523 366,729 4.66 % 7,332,886 399,358 5.45 %(2)Investmentsecurities 929,983 18,440 1.98 % 796,608 21,037 2.64 %available forsale ^(1)Federal funds 32,781 91 0.28 % 23,253 232 1.00 %soldTotalinterest 10,080,239 389,986 3.87 % 8,585,184 429,630 5.00 %earningassetsTotalnoninterest 371,345 339,565 earningassetsLess:allowance for 101,621 71,683 credit lossesTotalnoninterest 269,724 267,882 earningassetsTOTAL ASSETS $ 10,349,963 8,853,066 LIABILITIESAND SHAREHOLDERS'EQUITYInterestbearing liabilities:Interestbearing $ 783,568 $ 3,190 0.41 % $ 743,361 $ 6,491 0.87 %transactionSavings and 3,925,413 26,271 0.67 % 2,873,054 50,042 1.74 %money marketTime deposits 1,149,185 24,105 2.10 % 1,404,748 34,493 2.46 %Totalinterest 5,858,166 53,566 0.91 % 5,021,163 91,026 1.81 %bearingdepositsCustomerrepurchase 29,345 293 1.00 % 30,024 345 1.15 %agreementsOthershort-term 280,126 1,870 0.66 % 135,699 2,298 1.67 %borrowingsLong-term 259,975 12,696 4.80 % 217,507 11,916 5.40 %borrowingsTotalinterest 6,427,612 68,425 1.06 % 5,404,393 105,585 1.95 %bearingliabilitiesNoninterestbearing liabilities:Noninterestbearing 2,643,856 2,210,516 demandOther 74,154 66,106 liabilitiesTotalnoninterest 2,718,010 2,276,622 bearingliabilitiesShareholders? 1,204,341 1,172,051 equityTOTALLIABILITIESAND $ 10,349,963 $ 8,853,066 SHAREHOLDERS'EQUITYNet interest $ 321,561 $ 324,045 incomeNet interest 2.81 % 3.05 %spreadNet interest 3.19 % 3.77 %marginCost of funds 0.68 % 1.23 %

(1) Loans placed on nonaccrual status are included in average balances. Netloan fees and late charges included in interest income on loans totaled $22.3million and $17.8 million for the years ended December 31, 2020 and 2019,respectively.(2) Interest and fees on loans and investments exclude tax equivalentadjustments.

Statements of Income and Highlights Quarterly Trends (Unaudited)(dollars in thousands, except per share data) Three Months Ended December31, September30, June30, March31, December31, September30, June30, March31,Income 2020 2020 2020 2020 2019 2019 2019 2019Statements:Totalinterest $ 94,680 $ 93,833 $ 97,672 $ 103,801 $ 107,183 $ 109,034 $ 108,279 $ 105,134 incomeTotalinterest 13,262 14,795 16,309 24,057 26,473 28,045 26,950 24,117 expenseNet interest 81,418 79,038 81,363 79,744 80,710 80,989 81,329 81,017 incomeProvision for 4,917 6,607 19,737 14,310 2,945 3,186 3,600 3,360 credit lossesProvision forunfunded 406 (2,078 ) 940 2,112 ? ? ? ? commitmentsNet interestincome after 76,095 74,509 60,686 63,322 77,765 77,803 77,729 77,657 provision forcredit lossesNoninterestincome(before 9,722 17,729 11,782 4,648 6,845 6,161 5,797 5,379 investmentgain (loss))Gain (loss)on sale of 165 115 713 822 (111 ) 153 563 912 investmentsecuritiesTotalnoninterest 9,887 17,844 12,495 5,470 6,734 6,314 6,360 6,291 incomeSalaries andemployee 20,151 19,388 17,104 17,797 19,360 19,095 17,743 23,644 benefitsPremises and 3,301 5,125 3,468 3,821 3,380 3,503 3,652 3,852 equipmentMarketing and 1,161 928 1,111 1,078 1,200 1,210 1,268 1,148 advertisingOther 10,396 11,474 13,209 14,651 10,786 9,665 10,696 9,660 expensesTotalnoninterest 35,009 36,915 34,892 37,347 34,726 33,473 33,359 38,304 expenseIncome beforeincome tax 50,973 55,438 38,289 31,445 49,773 50,644 50,730 45,644 expenseIncome tax 12,081 14,092 9,433 8,322 14,317 14,149 13,487 11,895 expenseNet income 38,892 41,346 28,856 23,123 35,456 36,495 37,243 33,749 Per Share Data:Earnings perweightedaverage $ 1.21 $ 1.28 $ 0.90 $ 0.70 $ 1.06 $ 1.07 $ 1.08 $ 0.98 common share,basicEarnings perweightedaverage $ 1.21 $ 1.28 $ 0.90 $ 0.70 $ 1.06 $ 1.07 $ 1.08 $ 0.98 common share,dilutedWeightedaveragecommon shares 32,037,099 32,229,322 32,224,695 32,850,112 33,468,572 34,232,890 34,540,152 34,480,772 outstanding,basicWeightedaveragecommon shares 32,075,175 32,250,885 32,240,825 32,875,508 33,498,681 34,255,889 34,565,253 34,536,236 outstanding,dilutedActual sharesoutstanding 31,779,663 32,228,636 32,224,756 32,197,258 33,241,496 33,720,522 34,539,853 34,537,193 at period endBook valueper common $ 39.05 $ 37.96 $ 36.86 $ 36.11 $ 35.82 $ 35.13 $ 34.30 $ 33.25 share atperiod endTangible bookvalue percommon share $ 35.74 $ 34.70 $ 33.62 $ 32.86 $ 32.67 $ 32.02 $ 31.25 $ 30.20 at period end^(1)Dividend per $ 0.22 $ 0.22 $ 0.22 $ 0.22 $ 0.22 $ 0.22 $ 0.22 $ ? common sharePerformanceRatios (annualized):Return onaverage 1.39 % 1.57 % 1.12 % 0.98 % 1.49 % 1.62 % 1.74 % 1.62 %assetsReturn onaverage 12.53 % 14.46 % 9.84 % 7.81 % 11.78 % 12.09 % 12.81 % 12.12 %common equityReturn onaverage 13.69 % 15.93 % 10.80 % 8.56 % 12.91 % 13.25 % 14.08 % 13.38 %tangiblecommon equityNet interest 2.98 % 3.08 % 3.26 % 3.49 % 3.49 % 3.72 % 3.91 % 4.02 %marginEfficiency 38.34 % 38.10 % 37.18 % 43.83 % 39.71 % 38.34 % 38.04 % 43.87 %ratio ^(2)Other Ratios: Allowance forcredit losses 1.41 % 1.40 % 1.36 % 1.23 % 0.98 % 0.98 % 0.98 % 0.98 %to totalloans ^(3)Allowance forcredit lossesto total 179.80 % 189.83 % 184.52 % 201.80 % 151.16 % 127.87 % 192.70 % 173.72 %nonperformingloans ^(4)Nonperformingloans to 0.79 % 0.74 % 0.74 % 0.61 % 0.65 % 0.76 % 0.51 % 0.56 %total loans ^(3) (4)Nonperformingassets to 0.59 % 0.62 % 0.69 % 0.56 % 0.56 % 0.66 % 0.45 % 0.50 %total assets^(4)Netcharge-offs(annualized) 0.28 % 0.26 % 0.36 % 0.12 % 0.16 % 0.08 % 0.08 % 0.19 %to averageloans ^(3)Tier 1capital (to 10.31 % 10.82 % 10.63 % 11.33 % 11.62 % 12.19 % 12.66 % 12.49 %averageassets)Total capital(to risk 17.04 % 16.72 % 16.33 % 15.44 % 16.20 % 16.08 % 16.36 % 16.22 %weightedassets)Common equitytier 1capital (to 13.48 % 13.19 % 12.79 % 12.14 % 12.87 % 12.76 % 12.87 % 12.69 %risk weightedassets)Tangiblecommon equity 10.31 % 11.18 % 11.17 % 10.70 % 12.22 % 12.13 % 12.60 % 12.59 %ratio ^(1)AverageBalances (in thousands):Total assets $ 11,141,826 $ 10,473,595 $ 10,326,709 $ 9,447,663 $ 9,426,220 $ 8,923,406 $ 8,595,523 $ 8,455,680 Total earning $ 10,872,259 $ 10,205,939 $ 10,056,500 $ 9,176,174 $ 9,160,034 $ 8,655,196 $ 8,328,323 $ 8,185,711 assetsTotal loans $ 7,896,324 $ 7,910,260 $ 8,015,751 $ 7,650,993 $ 7,532,179 $ 7,492,816 $ 7,260,899 $ 7,038,472 Total $ 9,227,733 $ 8,591,912 $ 8,482,718 $ 7,696,764 $ 7,716,973 $ 7,319,314 $ 6,893,981 $ 6,987,468 depositsTotal $ 596,307 $ 596,472 $ 598,463 $ 485,948 $ 449,432 $ 345,464 $ 470,214 $ 266,209 borrowingsTotalshareholders? $ 1,235,174 $ 1,211,145 $ 1,179,452 $ 1,191,180 $ 1,194,337 $ 1,197,513 $ 1,166,487 $ 1,128,869 equity

(1) Tangible common equity to tangible assets (the "tangible common equityratio") and tangible book value per common share are non-GAAP financialmeasures derived from GAAP based amounts. The Company calculates the tangiblecommon equityratio by excluding the balance of intangible assets from commonshareholders' equity and dividing by tangible assets. The Company calculatestangible book value per common share by dividing tangible common equity bycommon shares outstanding, as compared to book value per common share, whichthe Company calculates by dividing common shareholders' equity by common sharesoutstanding. The Company considers this information important to shareholdersas tangible equity is a measure that is consistent with the calculation ofcapital for bank regulatory purposes, which excludes intangible assets from thecalculation of risk based ratios and as such is useful for investors,regulators, management and others to evaluate capital adequacy and to compareagainst other financial institutions.(2) Computed by dividing noninterest expense by the sum of net interest incomeand noninterest income.(3) Excludes loans held for sale.(4) Nonperforming loans at September 30 , 2019, includes a $16.5 million loanthat was brought current shortly after quarter end.

EAGLE BANCORP, INC CONTACT:David G. Danielson240.552.9534