GlobeNewswire Inc | Apr 21, 2021 04:30PM EDT

April 21, 2021

BETHESDA, Md., April 21, 2021 (GLOBE NEWSWIRE) -- Eagle Bancorp, Inc. (the Company) (NASDAQ: EGBN), the parent company of EagleBank (the Bank), today announced record net income of $43.5 million for the first quarter of 2021, as compared to $23.1 million net income for the first quarter of 2020, an 88% increase. Net income per basic and diluted common share for the first quarter of 2021 was $1.36 compared to $0.70 for the first quarter of 2020, a 94% increase. The increase in earnings is largely due to the first quarter of 2021 including a reversal of the provision for credit losses and significant gain on sale of residential mortgages, whereas the first quarter of 2020 included provisions for credit losses at the beginning of the COVID-19 pandemic, as well as, mark-to-market losses related to a hedge position on mortgage operations.

First Quarter 2021 Highlights

-- Income StatementNet income of $43.5 millionTotal revenue of $93.2 million (up 9.4% from a year ago)Reversal of allowance for credit losses of $2.4 millionNet interest margin of 2.98%Return on average assets ("ROAA") of 1.53%Return on average common equity ("ROACE") of 14.05%Return on average tangible common equity ("ROATCE") of 15.33%1Efficiency ratio of 40.7% -- Balance SheetAssets of $11.1 billionBook value per share of $39.45 (up 9.2% from a year ago)Tangible book value per share of $36.16 (up 10.0% from a year ago)1Total risk based capital ratio of 17.86%Annualized net charge-off ratio to average loans of 0.27%Nonperforming assets to total assets of 0.51%Allowance for credit losses to total loans of 1.36%

____________________1 A reconciliation of non-GAAP financial measures to the nearest non-GAAP measure is provided in the tables that accompany this document.

Susan G. Riel, President and Chief Executive Officer of Eagle Bancorp, Inc. commented, "We ended the first quarter of 2021 with record net income, continued strengthening in asset quality and a high level of capital. Earnings included a reversal to the allowance for credit losses as our outlook on the economy has improved, and another large gain on sale of residential mortgages from our residential mortgage division, which continues to generate strong results. For the quarter, we generated net income of $43.5 million with an ROAA of 1.53%, ROACE of 14.05% and a ROATCE2 of 15.33%."

"These earnings continue to demonstrate balanced financial performance including our ability to manage an efficient bank and we remain a leader among our peers with an efficiency ratio for the quarter of 40.7%. As an example of our expense management, during the quarter we relocated two branches with expiring leases to better locations nearby and consolidated two back-office locations, also with expiring leases, into a single new location, saving about $460,000 annually in rental expenses."

"While loan demand remains challenged during the pandemic, our earnings continue to generate capital that we expect will enable us to hit the ground running when economic activity and business openings expand. We believe the Washington, D.C. area is one of the most resilient and strongest economies in the nation and we remain optimistic about the reopening of businesses, and the positive impact the government stimulus will have on the regional economy. At quarter end, our shareholders equity reached $1.26 billion and our total risk-based capital was 17.86%. This gives us the ability to originate loans for large commercial projects, as well as a lot of runway to grow the loan portfolio when economic conditions improve and more opportunities arise."

"For our shareholders, at the end of the quarter our board increased the dividend to $0.25 per share, our first increase since the dividend was re-instituted in the second quarter of 2019. We also authorized a new stock repurchase plan in December 2020."

"We once again thank all of our employees for their commitment and diligence in serving the needs of our clients and communities and following safe health practices. As we look toward summer with optimism, we remain focused on strong and balanced operating performance. We will continue to proactively manage any asset quality 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.

Income Statement

-- Net interest income was $82.7 million in the first quarter of 2021, up from $79.7 million in the first quarter of 2020. The increase of $3.0 million was primarily from a 22% increase in average earning assets partially offset by a reduction in net interest margin. -- Net interest margin was 2.98% for the first quarter of 2021, as compared to 3.49% for the first quarter of 2020. The decrease in margin primarily reflects a lower rate environment, significantly higher cash balances from strong deposit inflows and lower rates on Paycheck Protection Program ("PPP") loans.

-- Pre-provision net revenue ("PPNR")3 was $55.3 million in the first quarter of 2021, up from $47.9 million in the first quarter of 2020. As a percent of average assets, PPNR in the first quarter of 2021 was 1.95%, down from 2.04% in the first quarter of 2020. This decline was a result of a 15.4% increase in PPNR being outpaced by a 21.9% increase in average assets.

____________________2 A reconciliation of non-GAAP financial measures to the nearest non-GAAP measure is provided in the tables that accompany this document.

($ in thousands) Three Months Ended March 31, 2021 March 31, 2020Net interest income (GAAP) $ 82,651 $ 79,744 Non-interest income (GAAP) 10,587 5,470 Non-interest expense (GAAP) (37,987 ) (37,347 ) Pre-provision net revenue (non-GAAP) $ 55,251 $ 47,867 Average Assets (GAAP) $ 11,517,836 $ 9,447,663 PPNR to Average Assets (non-GAAP) 1.95 % 2.04 %

-- Provision for credit losses resulted in a reversal of $2.4 million in the first quarter of 2021, as compared to a provision of $14.3 million for the first quarter 2020. The reversal was driven by the improved macroeconomic outlook, improvement of credits in the loan portfolio and a reduction in total loans. -- Net charge-offs were $5.2 million in the first quarter of 2021 as compared to $2.2 million in the first quarter of 2020. On an annualized basis, this was 0.27% of average loans (excluding loans held for sale) in the first quarter of 2021, as compared 0.12% in the first quarter of 2020. Charge-offs in the first quarter of 2021 were mostly a variety of commercial C&I credits, which included two restaurants, one commercial real estate credit for a hotel and two Small Business Administration ("SBA") credits. -- Noninterest income was $10.6 million in the first quarter of 2021, as compared to $5.5 million for the first quarter 2020, a 94% increase. The increase was primarily due to a substantially higher gain on the sale of loans of $5.2 million and a $911 thousand gain from the cancellation of an FHLB borrowing for the first quarter of 2021 as compared to $0.9 million for the first quarter of 2020 (which included $2.6 million in hedge and mark-to-market losses). Residential mortgage loan locked commitments were $303.3 million for the first quarter of 2021 as compared to $422.2 million for the first quarter of 2020. -- Noninterest expenses were $38.0 million for the first quarter of 2021 as compared to $37.3 million for the first quarter 2020, a 2% increase. The major changes between the two quarters were as follows:Salaries and employee benefits were up $4.0 million as the number of employees increased, the incentive bonus accruals based on economic outlook were higher in the first quarter of 2021 (due to the gradual reopening of the economy) than in the first quarter of 2020 (due to the onset of the COVID-19 pandemic) and an increase in share based compensation awards and vesting in 2021.Legal, accounting and professional fees were down $4.0 million in the first quarter of 2021, as the first quarter of 2020 included elevated expenses from previously disclosed litigation.FDIC expenses were up $1.0 million off a higher deposit base.

-- Efficiency ratio was 40.7% for the first quarter of 2021, an improvement from 43.8% for the first quarter of 2020. The improvement in the first quarter of 2021 over the first quarter of 2020 was from increases in noninterest income and net interest income, while non-interest expenses remained relatively flat. -- Effective income tax rate for the first quarter of 2021 was 25.1% as compared to 26.5% for the first quarter of 2020. The decrease was due primarily to an increase in Low Income Housing Tax Credits in the first quarter of 2021.

____________________3 A reconciliation of non-GAAP financial measures to the nearest non-GAAP measure is provided in the table below.

Balance Sheet

-- Total assets at March31, 2021 were $11.1 billion, up less than 1% from the prior quarter-end and up 11.4% from a year ago. The increase in assets over assets from a year ago was primarily driven by deposit inflows in the second and third quarters of 2020. -- Total loans (excluding loans held for sale) were $7.5 billion as of March 31, 2021, a decrease of 3.0% from the prior quarter end and a decrease of 4.0% from a year ago. If PPP loans were excluded, the balance was $7.0 billion4 at March31, 2021, a decrease of 4.7% from the prior quarter end and a decrease of 11.2% from a year ago. We have continued to focus on serving our current loan clients and maintaining credit quality, over expanding the loan portfolio at lower rates and less favorable terms.

($ in thousands) March 31, 2021 December 31, March 31, 2020 2020 Total loans, excluding $ 7,526,689 7,760,212 7,840,873 loans held for sale (GAAP)Less: PPP loans (565,018 ) (454,771 ) $ ? Total loans, excludingloans held for sale and PPP $ 6,961,671 $ 7,305,441 $ 7,840,873 loans (Non-GAAP)

-- Allowance for credit losses was 1.36% of gross loans, compared to 1.41% the prior quarter-end and 1.23% a year ago. Adjusted to exclude PPP loans, which are fully government guaranteed, the allowance for credit losses was 1.47%5, compared to 1.50% the prior quarter end and 1.23% a year ago. The reduction in the allowance for credit losses in the first quarter of 2021, is due to a provision reversal of $2.4 million and net charge-offs of $5.2 million.

____________________4 A reconciliation of GAAP to non-GAAP financial measures is provided below.5 A reconciliation of GAAP to non-GAAP financial measures is provided below.

($ in thousands) March 31, 2021 December 31, March 31, 2020 2020 Allowance for credit losses, adjustedAllowance for credit losses $ 102,070 $ 109,579 $ 96,336 Total loans (GAAP) $ 7,526,689 $ 7,760,212 $ 7,840,873 Less: PPP loans (565,018 ) (454,771 ) ? Total loans excluding PPP $ 6,961,671 $ 7,305,441 $ 7,840,873 loans (non-GAAP) Allowance for credit losses 1.36 % 1.41 % 1.23 %to total loans (GAAP)Allowance for credit lossesto total loans excluding 1.47 % 1.50 % 1.23 %PPP loans (non-GAAP)

-- Investment portfolio had a balance of $1.4 billion at March31, 2021, up $218 million or 18.9% from the prior quarter end and up $510 million or 59.4% from a year ago. Investments made during the quarter were primarily 20 year, 2% agency mortgage backed securities and callable agency bonds. We continue to judiciously deploy excess liquidity in to the investment portfolio to achieve higher yields over cash alternatives.

-- Total deposits were $9.2 billion at March31, 2021, up $9.6 million or 0.1% from the prior quarter end, and up $1.1 billion or 13.0% from a year ago. Deposit growth slowed in the first quarter of 2021 which allowed the Bank to reduce its excess liquidity as it deployed funds into the investment portfolio. -- Total shareholders equity was $1.26 billion at March31, 2021, up $19.9 million or 1.6% from the prior quarter end, and up $98.1 million or 8.4% from a year ago. In the first quarter of 2021, the increases in stockholders equity were partially offset by common dividends declared of $7.9 million and stock repurchases of $62 thousand.Book value per share was $39.45, up 1.0% from the prior quarter end and up 9.2% from a year ago.Tangible book value per share was $36.166, up 1.2% from the prior quarter end and up 10.0% from a year ago. -- Capital ratios for the Company remain strong and substantially in excess of regulatory minimum requirements. Regulatory ratios based on risk based capital ratios continue to trend up, driven by strong earnings and declines in risk weighted assets, including relatively little change in outstanding loans. Tier 1 Capital which was adversely impacted by the increase in average assets, trended down.

____________________6 A reconciliation of non-GAAP financial measures to the nearest non-GAAP measure is provided in the tables that accompany this document.

For the Company March December March Well 31, 2021 31, 2020 31, 2020 Capitalized MinimumRegulatory Ratios Total Capital (to risk 17.86 % 17.04 % 15.44 % 10.00 %weighted assets)Tier 1 Capital (to risk 14.42 % 13.49 % 12.14 % 8.00 %weighted assets)Common Equity Tier 1 (to 14.42 % 13.49 % 12.14 % 6.50 %risk weighted assets)Tier 1 Capital (to average 10.28 % 10.31 % 11.33 % 5.00 %assets) Common Capital Ratios Common Equity Ratio 11.33 % 11.16 % 11.64 % ? %Tangible Common Equity Ratio 10.48 % 10.31 % 10.70 % ? %

Additional Commentary

-- Stock repurchase plan: 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. In the first quarter of 2021, the Company completed repurchases of 1,466 shares for $62,000 at an average cost of $42.46 per share under the Stock Repurchase Plan. -- Increase in the dividend: On March 31, 2021, the Board of Directors declared a quarterly cash dividend of $0.25 per common share payable on May 3, 2021 to shareholders of record on April 21, 2021. This was an increase over the prior quarterly dividend of $0.22 per share that had been in place since the second quarter of 2019. -- Deposit mix: The Company continues to emphasize achieving core deposit growth. The mix of average noninterest deposits to average total deposits remained favorable at 32% in the first quarter of 2021, as compared to 29% in the first quarter of 2020. In the first quarter of 2021, CDs with a total balance of $230.9 million with a weighted average rate of 1.69% matured. These CDs had weighted average term of 18 months at issuance. -- Loans closed/payoffs: We continue to seek well structured new loan opportunities. Loan payoffs in the first quarter of 2021 continued at a level similar to the fourth quarter of 2020. With new loan closings down, total loan balances (excluding loans held for sale and PPP loans) fell $344 million from the prior quarter end. Unfunded commitments declined to $1.9 billion as of March 31, 2021 as compared to $2.1 billion a year ago. -- Loan yields: In addition to the current sharply lower interest rate environment which continued from 2020, we have focused less on higher risk and higher yielding construction lending and more on strong commercial real estate credits secured by stabilized income producing properties. The yield on the loan portfolio was 4.65% for the first quarter of 2021 as compared to 5.07% for the first quarter of 2020.Loan yields, excluding lower yielding PPP loans, was 4.73%7 in the first quarter of 2021, as compared to 5.07% in the first quarter of 2020.

($ in Three Months Endedthousands) March 31, 2021 March 31, 2020 Average Average Average Average Balance Interest Yield/ Balance Interest Yield/ Rate RateLoanYields, AdjustedLoan yield $ 7,726,716 $ 88,499 4.65 % $ 7,650,993 $ 96,401 5.07 %(GAAP)PPP Loanyield 516,317 4,452 3.50 % ? ? ? %(non-GAAP)Loansyield,excluding 7,210,399 84,047 4.73 % 7,650,993 96,401 5.07 %PPP loans(non-GAAP)

-- Paycheck protection program: As a SBA preferred lender, the Bank actively participated in the PPP, and at March31, 2021 had an outstanding balance of PPP loans of $565.0 million. During the first quarter of 2021, PPP originations were $192.7 million and the PPP loans balances forgiven were $82.9 million. -- COVID-19 loan deferrals: At March 31, 2021, 58 notes were deferred with outstanding balances of $143.4 million, which was 1.9% of total loans. -- Industry segments impacted by COVID-19: Industry segments which we believe may have heightened risk from the COVID-19 pandemic are as follows:

($ in thousands) March 31, 2021 Principal Balance % of Total LoansIndustry Accommodation and Food Service $ 807,237 10.7 %Retail Trade 85,878 1.1 % Commercial Real Estate exposure (not included above) Restaurant 42,386 0.6 %Hotel 26,255 0.3 %Retail 374,863 5.0 %Total $ 1,336,619 17.8 %

-- Nonperforming loans and assets: On a linked quarter basis, both non-performing loans and assets decreased.Nonperforming loans were $52.3 million or 0.69% of total loans at March31, 2021, down from $60.9 million or 0.79% at the prior quarter end, and up from $47.7 million or 0.61% of total loans a year ago.Nonperforming assets were $57.3 million or 0.51% of total assets at March31, 2021, down from $65.9 million or 0.59% at the prior quarter end, and up from $56.0 million or 0.56% of total assets a year ago. At March 31, 2021, other real estate owned was $5.0 million, unchanged from the prior quarter end.

-- Legal update: As previously disclosed by the Company, on December 24, 2020, by stipulation of the parties, the United States District Court for the Southern District of New York stayed the putative class action lawsuit filed against the Company and certain of its officers, its current and former President and Chief Executive Officer, its current and former Chief Financial Officer and its former General Counsel on behalf of persons who purchased or otherwise acquired Company securities between March 2, 2015 and July 17, 2019 (the class), pending a non-binding mediation that had been scheduled for April 13, 2021.Immediately following the non-binding mediation, the lead plaintiff, on behalf of the class, the Company and each of the other defendants continued a settlement dialogue and reached an agreement to settle the putative class action lawsuit, involving a total payment by the Company of $7.5 million in exchange for the release of all of the defendants from all alleged claims in the class action suit, without any admission or concession of wrongdoing by the Company or the other defendants. The agreement remains subject to final documentation, court approval and other customary conditions. The Company expects that the full amount of a final settlement will be paid by the Companys insurance carriers under applicable insurance policies. There can be no assurance, however, that the agreement will be fully documented, receive court approval and/or meet all other conditions.On January 25, 2021, the Company entered into a settlement agreement 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). As required by DC Superior Court administrative procedures, shareholder's counsel first filed a derivative action complaint against the individual directors and officers named in the demand letter, and the Company as nominal Defendant before filing the executed stipulation of settlement accompanied by the shareholder's brief in support of their unopposed motion to approve the settlement. Court approval of the stipulation of settlement remains pending a hearing currently scheduled for May 12, 2021.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.

Additional financial information: The financial information that follows provides more detail on the Companys financial performance for the three months ended March31, 2021 as compared to the three months ended March31, 2020, as well as 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, 2020, 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 first quarter 2021 financial results on Thursday, April 22, 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 1139926, 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 May 6, 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, asset and loan growth and broader 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, 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, and nothing contained herein is meant to or should be considered and treated as earnings guidance of future quarters performance projections. All information is as of the date of this press release. Any forward-looking statements made by or on behalf of the Company speak only as to the date they are made. Except to the extent required by applicable law or regulation, the Company undertakes no obligation to revise or update publicly any forward-looking statement for any reason.

____________________7 A reconciliation of non-GAAP financial measures to the nearest non-GAAP measure is provided below.

Eagle Bancorp, Inc. Consolidated Financial Highlights (Unaudited) (dollars in thousands, except per share data) Three Months Ended March 31, 2021 March 31, 2020Income Statements: Total interest income $ 94,194 $ 103,801 Total interest expense 11,543 24,057 Net interest income 82,651 79,744 Provision for credit losses (2,350 ) 14,310 Provision for Unfunded Commitments (442 ) 2,112 Net interest income after provision for credit 85,443 63,322 lossesNoninterest income (before investment gain) 10,366 4,648 Gain (loss) on sale of investment securities 221 822 Total noninterest income 10,587 5,470 Total noninterest expense 37,987 37,347 Income before income tax expense 58,043 31,445 Income tax expense 14,574 8,322 Net income $ 43,469 $ 23,123 Per Share Data: Earnings per weighted average common share, $ 1.36 $ 0.70 basicEarnings per weighted average common share, $ 1.36 $ 0.70 dilutedWeighted average common shares outstanding, 31,869,655 32,850,112 basicWeighted average common shares outstanding, 31,922,940 32,875,508 dilutedActual shares outstanding at period end 31,960,379 32,197,258 Book value per common share at period end $ 39.45 $ 36.11 Tangible book value per common share at period $ 36.16 $ 32.86 end ^(1)Dividend per common share $ 0.25 $ 0.22 Performance Ratios (annualized): Return on average assets 1.53 % 0.98 %Return on average common equity 14.05 % 7.81 %Return on average tangible common equity 15.33 % 8.56 %Net interest margin 2.98 % 3.49 %Efficiency ratio ^(2) 40.74 % 43.83 %Other Ratios: Allowance for credit losses to total loans ^(3) 1.36 % 1.23 %Allowance for credit losses to total 195.25 % 201.80 %nonperforming loansNonperforming loans to total loans ^(3) 0.69 % 0.61 %Nonperforming assets to total assets 0.51 % 0.56 %Net charge-offs (annualized) to average loans ^ 0.27 % 0.12 %(3)Common equity to total assets 11.33 % 11.64 %Tier 1 capital (to average assets) 10.28 % 11.33 %Total capital (to risk weighted assets) 17.86 % 15.44 %Common equity tier 1 capital (to risk weighted 14.42 % 12.14 %assets)Tangible common equity ratio ^(1) 10.48 % 10.70 %Loan Balances - Period End (in thousands): Commercial and Industrial $ 1,398,155 $ 1,773,478 PPP loans $ 565,018 $ ? Commercial real estate - income producing $ 3,430,077 $ 3,827,024 Commercial real estate - owner occupied $ 1,012,457 $ 971,634 1-4 Family mortgage $ 71,209 $ 104,558 Construction - commercial and residential $ 829,481 $ 969,166 Construction - C&I (owner occupied) $ 152,240 $ 114,138 Home equity $ 67,167 $ 78,228 Other consumer $ 885 $ 2,647 Average Balances (in thousands): Total assets $ 11,517,837 $ 9,447,663 Total earning assets $ 11,236,440 $ 9,176,174 Total loans $ 7,726,716 $ 7,650,993 Total deposits $ 9,601,249 $ 7,696,764 Total borrowings $ 573,750 $ 485,948 Total shareholders? equity $ 1,254,780 $ 1,191,180

(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 Ended March 31, 2021 March 31, 2020Common shareholders' equity $ 1,260,833 $ 1,162,777 Less: Intangible assets (105,179 ) (104,695 ) Tangible common equity $ 1,155,654 $ 1,058,082 Book value per common share $ 39.45 $ 36.11 Less: Intangible book value per common (3.29 ) (3.25 ) shareTangible book value per common share $ 36.16 $ 32.86 Total assets $ 11,127,864 $ 9,992,219 Less: Intangible assets (105,179 ) (104,695 ) Tangible assets $ 11,022,685 $ 9,887,524 Tangible common equity ratio 10.48 % 10.70 %Average common shareholders' equity $ 1,254,780 $ 1,191,180 Less: Average intangible assets (105,164 ) (104,697 ) Average tangible common equity $ 1,149,616 $ 1,086,483 Net Income Available to Common $ 43,469 $ 23,123 ShareholdersAnnualized Return on Average Tangible 15.33 % 8.56 %Common Equity

Eagle Bancorp, Inc.Consolidated Balance Sheets (Unaudited)(dollars in thousands, except per share data)Assets March 31, 2021 December 31, 2020 March 31, 2020Cash and due from $ 9,112 $ 8,435 $ 7,177 banksFederal funds 25,785 28,200 28,277 soldInterest bearingdeposits withbanks and other 1,708,374 1,752,420 904,160 short-terminvestmentsInvestmentsecuritiesavailable forsale (amortizedcost of$1,365,139,$1,129,057, and$838,831, andallowance for 1,369,107 1,151,083 858,916 credit losses of$78, $167, and$0, as of March31, 2021,December 31, 2020and March 31,2020,respectively).Federal Reserveand Federal Home 33,978 40,104 39,988 Loan Bank stockLoans held for 142,196 88,205 60,036 saleLoans 7,526,689 7,760,212 7,840,873 Less allowance (102,070 ) (109,579 ) (96,336 ) for credit lossesLoans, net 7,424,619 7,650,633 7,744,537 Premises and 15,045 13,553 13,687 equipment, netOperating leaseright-of-use 30,707 25,237 25,655 assetsDeferred income 44,623 38,571 30,366 taxesBank owned life 77,119 76,729 76,139 insuranceIntangible 105,179 105,114 104,695 assets, netOther real estate 4,987 4,987 8,237 ownedOther assets 137,033 134,531 90,349 Total Assets $ 11,127,864 $ 11,117,802 $ 9,992,219 Liabilities andShareholders' EquityDeposits: Noninterest $ 2,594,334 $ 2,809,334 $ 1,994,209 bearing demandInterest bearing 862,709 756,923 931,597 transactionSavings and money 4,875,840 4,645,186 3,950,495 marketTime, $100,000 or 513,998 546,173 608,355 moreOther time 351,963 431,587 656,912 Total deposits 9,198,844 9,189,203 8,141,568 Customerrepurchase 20,061 26,726 31,377 agreementsOther short-term 300,000 300,000 300,000 borrowingsLong-term 218,175 268,077 267,784 borrowingsOperating lease 33,338 28,022 28,242 liabilitiesReserve forunfunded 5,056 5,498 6,230 commitmentsOther liabilities 91,557 59,384 54,240 Total liabilities 9,867,031 9,876,910 8,829,441 Shareholders' EquityCommon stock, parvalue $.01 pershare; sharesauthorized100,000,000,shares issued and 316 315 320 outstanding31,960,379,31,779,663, and32,197,258,respectivelyAdditional paid 428,917 427,016 439,321 in capitalRetained earnings 833,598 798,061 710,072 Accumulated othercomprehensive (1,998 ) 15,500 13,065 income (loss)TotalShareholders' 1,260,833 1,240,892 1,162,778 EquityTotal Liabilitiesand Shareholders' $ 11,127,864 $ 11,117,802 $ 9,992,219 Equity

Eagle Bancorp, Inc.Consolidated Statements of Income (Unaudited)(dollars in thousands, except per share data) Three Months EndedInterest Income March 31, 2021 March 31, 2020Interest and fees on loans $ 89,238 $ 96,755 Interest and dividends on investment securities 4,395 5,427 Interest on balances with other banks and 553 1,559 short-term investmentsInterest on federal funds sold 8 60 Total interest income 94,194 103,801 Interest Expense Interest on deposits 7,899 20,546 Interest on customer repurchase agreements 11 87 Interest on other short-term borrowings 495 357 Interest on long-term borrowings 3,138 3,067 Total interest expense 11,543 24,057 Net Interest Income 82,651 79,744 Provision for Credit Losses (2,350 ) 14,310 Provision for Unfunded Commitments (442 ) 2,112 Net Interest Income After Provision For Credit 85,443 63,322 LossesNoninterest Income Service charges on deposits 977 1,425 Gain on sale of loans 5,178 944 Gain (loss) on sale of investment securities 221 822 Increase in the cash surrender value of bank 389 414 owned life insuranceOther income 3,822 1,865 Total noninterest income 10,587 5,470 Noninterest Expense Salaries and employee benefits 21,769 17,797 Premises and equipment expenses 3,618 3,821 Marketing and advertising 886 1,078 Data processing 2,814 2,496 Legal, accounting and professional fees 2,999 6,988 FDIC insurance 2,428 1,424 Other expenses 3,473 3,743 Total noninterest expense 37,987 37,347 Income Before Income Tax Expense 58,043 31,445 Income Tax Expense 14,574 8,322 Net Income $ 43,469 $ 23,123 Earnings Per Common Share Basic $ 1.36 $ 0.70 Diluted $ 1.36 $ 0.70

Eagle Bancorp, Inc.Consolidated Average Balances, Interest Yields And Rates (Unaudited)(dollars in thousands) Three Months Ended March 31, 2021 March 31, 2020 Average Average Average Average Balance Interest Yield/ Balance Interest Yield/ Rate RateASSETS Interestearning assets:Interestbearingdeposits withother banks $ 2,103,679 $ 553 0.11 % $ 588,148 $ 1,559 1.07 %and othershort-terminvestmentsLoans held 104,784 739 2.82 % 38,749 354 3.65 %for sale ^(1)Loans ^(1) 7,726,716 88,499 4.65 % 7,650,993 96,401 5.07 %(2)Investmentsecurities 1,268,952 4,395 1.40 % 867,666 5,427 2.52 %available forsale ^(2)Federal funds 32,309 8 0.10 % 30,618 60 0.79 %soldTotalinterest 11,236,440 94,194 3.40 % 9,176,174 103,801 4.55 %earningassetsTotalnoninterest 390,775 356,317 earningassetsLess:allowance for 109,379 84,828 credit lossesTotalnoninterest 281,396 271,489 earningassetsTOTAL ASSETS $ 11,517,836 $ 9,447,663 LIABILITIESAND SHAREHOLDERS'EQUITYInterestbearing liabilities:Interestbearing $ 771,321 $ 427 0.22 % $ 805,134 $ 1,666 0.83 %transactionSavings and 4,839,348 3,970 0.33 % 3,337,958 11,082 1.34 %money marketTime deposits 921,208 3,503 1.54 % 1,287,310 7,798 2.44 %Totalinterest 6,531,877 7,900 0.49 % 5,430,402 20,546 1.52 %bearingdepositsCustomerrepurchase 20,615 11 0.22 % 30,008 87 1.17 %agreementsOthershort-term 300,003 495 0.66 % 220,058 357 0.64 %borrowingsLong-term 253,132 3,137 4.96 % 235,882 3,067 5.14 %borrowingsTotalinterest 7,105,627 11,543 0.66 % 5,916,350 24,057 1.64 %bearingliabilitiesNoninterestbearing liabilities:Noninterestbearing 3,069,372 2,266,362 demandOther 88,057 73,771 liabilitiesTotalnoninterest 3,157,429 2,340,133 bearingliabilitiesShareholders? 1,254,780 1,191,180 EquityTOTALLIABILITIESAND $ 11,517,836 $ 9,447,663 SHAREHOLDERS'EQUITYNet interest $ 82,651 $ 79,744 incomeNet interest 2.74 % 2.91 %spreadNet interest 2.98 % 3.49 %marginCost of funds 0.42 % 1.06 %

(1) Loans placed on nonaccrual status are included in average balances. Net loan fees and late charges included in interest income on loans totaled $7.8 million and $4.3 million for the three months ended March 31, 2021 and March 31, 2020, respectively.(2) Interest and fees on loans and investments exclude tax equivalent adjustments.

Statements of Income and Highlights Quarterly Trends (Unaudited)(dollars in thousands, except per share data) Three Months Ended March 31, December 31, September 30, June 30, March 31, December 31, September 30, June 30,Income 2021 2020 2020 2020 2020 2019 2019 2019Statements:Totalinterest $ 94,194 $ 94,680 $ 93,833 $ 97,672 $ 103,801 $ 107,183 $ 109,034 $ 108,279 incomeTotalinterest 11,543 13,262 14,795 16,309 24,057 26,473 28,045 26,950 expenseNet interest 82,651 81,418 79,038 81,363 79,744 80,710 80,989 81,329 incomeProvision for (2,350 ) 4,917 6,607 19,737 14,310 2,945 3,186 3,600 credit lossesProvision forunfunded (442 ) 406 (2,078 ) 940 2,112 ? ? ? commitmentsNet interestincome after 85,443 76,095 74,509 60,686 63,322 77,765 77,803 77,729 provision forcredit lossesNoninterestincome(before 10,366 9,722 17,729 11,782 4,648 6,845 6,161 5,797 investmentgain (loss))Gain (loss)on sale of 221 165 115 713 822 (111 ) 153 563 investmentsecuritiesTotalnoninterest 10,587 9,887 17,844 12,495 5,470 6,734 6,314 6,360 incomeSalaries andemployee 21,769 20,151 19,388 17,104 17,797 19,360 19,095 17,743 benefitsPremises and 3,618 3,301 5,125 3,468 3,821 3,380 3,503 3,652 equipmentMarketing and 886 1,161 928 1,111 1,078 1,200 1,210 1,268 advertisingOther 11,714 10,396 11,474 13,209 14,651 10,786 9,665 10,696 expensesTotalnoninterest 37,987 35,009 36,915 34,892 37,347 34,726 33,473 33,359 expenseIncome beforeincome tax 58,043 50,973 55,438 38,289 31,445 49,773 50,644 50,730 expenseIncome tax 14,574 12,081 14,092 9,433 8,322 14,317 14,149 13,487 expenseNet income 43,469 38,892 41,346 28,856 23,123 35,456 36,495 37,243 Per Share Data:Earnings perweightedaverage $ 1.36 $ 1.21 $ 1.28 $ 0.90 $ 0.70 $ 1.06 $ 1.07 $ 1.08 common share,basicEarnings perweightedaverage $ 1.36 $ 1.21 $ 1.28 $ 0.90 $ 0.70 $ 1.06 $ 1.07 $ 1.08 common share,dilutedWeightedaveragecommon shares 31,869,655 32,037,099 32,229,322 32,224,695 32,850,112 33,468,572 34,232,890 34,540,152 outstanding,basicWeightedaveragecommon shares 31,922,940 32,075,175 32,250,885 32,240,825 32,875,508 33,498,681 34,255,889 34,565,253 outstanding,dilutedActual sharesoutstanding 31,960,379 31,779,663 32,228,636 32,224,756 32,197,258 33,241,496 33,720,522 34,539,853 at period endBook valueper common $ 39.45 $ 39.05 $ 37.96 $ 36.86 $ 36.11 $ 35.82 $ 35.13 $ 34.30 share atperiod endTangible bookvalue percommon share $ 36.16 $ 35.74 $ 34.70 $ 33.62 $ 32.86 $ 32.67 $ 32.02 $ 31.25 at period end^(1)Dividend per $ 0.25 $ 0.22 $ 0.22 $ 0.22 $ 0.22 $ 0.22 $ 0.22 $ 0.22 common sharePerformanceRatios (annualized):Return onaverage 1.53 % 1.39 % 1.57 % 1.12 % 0.98 % 1.49 % 1.62 % 1.74 %assetsReturn onaverage 14.05 % 12.53 % 14.46 % 9.84 % 7.81 % 11.78 % 12.09 % 12.81 %common equityReturn onaverage 15.33 % 13.69 % 15.93 % 10.80 % 8.56 % 12.91 % 13.25 % 14.08 %tangiblecommon equityNet interest 2.98 % 2.98 % 3.08 % 3.26 % 3.49 % 3.49 % 3.72 % 3.91 %marginEfficiency 40.74 % 38.34 % 38.10 % 37.18 % 43.83 % 39.71 % 38.34 % 38.04 %ratio ^(2)Other Ratios: Allowance forcredit losses 1.36 % 1.41 % 1.40 % 1.36 % 1.23 % 0.98 % 0.98 % 0.98 %to totalloans ^(3)Allowance forcredit lossesto total 195.25 % 179.80 % 189.83 % 184.52 % 201.80 % 151.16 % 127.87 % 192.70 %nonperformingloansNonperformingloans to 0.69 % 0.79 % 0.74 % 0.74 % 0.61 % 0.65 % 0.76 % 0.51 %total loans ^(3)Nonperformingassets to 0.51 % 0.59 % 0.62 % 0.69 % 0.56 % 0.56 % 0.66 % 0.45 %total assetsNetcharge-offs(annualized) 0.27 % 0.28 % 0.26 % 0.36 % 0.12 % 0.16 % 0.08 % 0.08 %to averageloans ^(3)Tier 1capital (to 10.28 % 10.31 % 10.82 % 10.63 % 11.33 % 11.62 % 12.19 % 12.66 %averageassets)Total capital(to risk 17.86 % 17.04 % 16.72 % 16.33 % 15.44 % 16.20 % 16.08 % 16.36 %weightedassets)Common equitytier 1capital (to 14.42 % 13.49 % 13.19 % 12.79 % 12.14 % 12.87 % 12.76 % 12.87 %risk weightedassets)Tangiblecommon equity 10.48 % 10.31 % 11.18 % 11.17 % 10.70 % 12.22 % 12.13 % 12.60 %ratio ^(1)AverageBalances (in thousands):Total assets $ 11,517,836 $ 11,141,826 $ 10,473,595 $ 10,326,709 $ 9,447,663 $ 9,426,220 $ 8,923,406 $ 8,595,523 Total earning $ 11,236,440 $ 10,872,259 $ 10,205,939 $ 10,056,500 $ 9,176,174 $ 9,160,034 $ 8,655,196 $ 8,328,323 assetsTotal loans $ 7,726,716 $ 7,896,324 $ 7,910,260 $ 8,015,751 $ 7,650,993 $ 7,532,179 $ 7,492,816 $ 7,260,899 Total $ 9,601,249 $ 9,227,733 $ 8,591,912 $ 8,482,718 $ 7,696,764 $ 7,716,973 $ 7,319,314 $ 6,893,981 depositsTotal $ 573,750 $ 596,307 $ 596,472 $ 598,463 $ 485,948 $ 449,432 $ 345,464 $ 470,214 borrowingsTotalshareholders? $ 1,254,780 $ 1,235,174 $ 1,211,145 $ 1,179,452 $ 1,191,180 $ 1,194,337 $ 1,197,513 $ 1,166,487 equity

(1) Tangible common equity to tangible assets (the "tangible common equity ratio") and tangible book value per common share are non-GAAP financial measures derived from GAAP based amounts. The Company calculates the tangible common equityratio 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 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.(2) Computed by dividing noninterest expense by the sum of net interest income and noninterest income.(3) Excludes loans held for sale.

EAGLE BANCORP, INCCONTACT:David G. Danielson240.552.9534