GlobeNewswire Inc | Oct 21, 2020 04:15PM EDT

October 21, 2020

BETHESDA, Md., Oct. 21, 2020 (GLOBE NEWSWIRE) -- Eagle Bancorp, Inc. (the Company) (NASDAQ: EGBN), the parent company of EagleBank (the Bank), today announced quarterly net income of $41.3 million for the three months ended September 30, 2020, a 13.2% increase, as compared to $36.5 million net income for the three months ended September 30, 2019. Net income per basic and diluted common share for the three months ended September 30, 2020 was $1.28 compared to $1.07 for the same period in 2019.

Third Quarter Key Metrics

-- Record net income of $41.3 million supported by gain on sale of loans of $12.2 million -- Lower credit costs and OREO recovery -- Net interest margin of 3.08% -- Nonperforming assets were 0.62% of total assets and the allowance for credit losses on loans was 1.40% of total loans (CECL adopted January 1, 2020) -- Improved operating leverage resulting in efficiency ratio of 38.10%

At the end of the third quarter of 2020 the Company's assets totaled $10.1 billion, representing 12.2% growth over the third quarter of 2019. For the third quarter of 2020 return on average assets ("ROAA") was 1.57%, return on average common equity ("ROACE") was 14.46%, and return on average tangible common equity ("ROATCE") was 15.93%. A reconciliation of GAAP to non-GAAP financial measures is provided in the tables that accompany this document.

I am very pleased with the overall results of operations for the third quarter of 2020 at a time when the COVID-19 pandemic is having a significant effect on the business climate and operating environment. Highlights included the highest level of quarterly net income and total revenue in the Companys history, continuing growth in the balance sheet, wherein assets exceeded $10 billion at quarter-end, solid asset quality, and a continuing trend of very favorable operating leverage as exhibited by an efficiency ratio of 38.10%," noted Susan G. Riel, President and Chief Executive Officer of Eagle Bancorp, Inc. "Loan growth in the third quarter was significantly impacted by construction loan payoffs, which reflected a successful completion of those projects and the closing out of related credit facilities. Ongoing project financing was slowed by diminished business activity associated with the COVID-19 pandemic environment.

"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 final quarter of 2020, our goal is to maintain strong operating performance. We will continue to proactively manage any credit concerns including resolving matters related to credit deferrals 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 continue to grow.

Balance Sheet Highlights

-- Total assets at September 30, 2020 were $10.1 billion, a 12.2% increase as compared to $9.0 billion at September 30, 2019, and a 12.4% increase as compared to $9.0 billion at December 31, 2019. -- Total loans (excluding loans held for sale) were $7.9 billion at September 30, 2020, a 4.2% increase as compared to $7.56 billion at September 30, 2019, and a 4.4% increase as compared to $7.55 billion at December 31, 2019. PPP loans represented $456.1 million of total loans at the end of the third quarter. Excluding Paycheck Protection Program ("PPP") loans, the decrease in loan balance is mostly attributable to the successful completion of construction projects and the related construction loan payoffs. -- Loans held for sale amounted to $79.1 million at September 30, 2020 as compared to $52.2 million at September 30, 2019, a 51.5% increase, and $56.7 million at December 31, 2019, a 39.5% increase. -- Investment portfolio totaled $977.6 million at September 30, 2020, a 38.0% increase from the $708.5 million balance at September 30, 2019. As compared to December 31, 2019, the investment portfolio at September 30, 2020 increased by $134.2 million, or 15.9% due primarily to the deployment of deposit inflows in to higher yielding assets. -- Total deposits at September 30, 2020 were $8.2 billion, compared to deposits of $7.4 billion at September 30, 2019, a 10.5% increase, and a 13.2% increase compared to deposits of $7.2 billion at December 31, 2019. -- Total borrowed funds (excluding customer repurchase agreements) were $568.0 million at September 30, 2020, $317.6 million at September 30, 2019, and $467.7 million at December 31, 2019. -- Total shareholders equity increased 3.3% to $1.22 billion at September 30, 2020 compared to $1.18 billion at September 30, 2019, and increased 2.8% from $1.19 billion at December 31, 2019. The increase in shareholders equity at September 30, 2020 compared to the same period in 2019 was primarily the result of growth in retained earnings partially offset by $66 million in stock repurchases, dividends declared of $21.3 million, and by the day one current expected credit losses ("CECL") entry of $10.9 million net of taxes. -- The Companys capital ratios remain substantially in excess of regulatory minimum requirements. Total risk based capital ratio increased to 16.72% at September 30, 2020, as compared to 16.08% at September 30, 2019, and 16.20% at December 31, 2019.Both common equity tier 1 (CET1) risk based capital and tier 1 risk based capital ratios increased to 13.19% at September 30, 2020, as compared to 12.76% at September 30, 2019, and 12.87% at December 31, 2019.Tier 1 leverage ratio was 10.82% at September 30, 2020, as compared to 12.19% at September 30, 2019, and 11.62% at December 31, 2019.Common equity ratio was 12.11% at September 30, 2020, compared to 13.16% at September 30, 2019, and 13.25% at December 31, 2019. Tangible common equity ratio was 11.18% at September 30, 2020, compared to 12.13% at September 30, 2019 and 12.22% at December 31, 2019. A reconciliation of GAAP to non-GAAP financial measures is provided in the tables that accompany this document.Book value per share was $37.96 at September 30, 2020, an 8.1% increase compared to $35.13 for the same period in 2019. Tangible book value per share was $34.70 at September 30, 2020, an 8.4% increase over $32.02 for the same period in 2019. A reconciliation of GAAP to non-GAAP financial measures is provided in the tables that accompany this document.

Income Statement Highlights (3Q2020 versus 3Q2019)

-- Net interest income was $79.0 million for the three months ended September 30, 2020 and $81.0 million for the same period in 2019. The decrease resulted from a decline in the net interest margin substantially offset by growth in average earning assets of 17.9%. -- Net interest margin was 3.08% for the three months ended September 30, 2020, as compared to 3.72% for the three months ended September 30, 2019, which reflects the impact of lower 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 three basis points due to lower rates on PPP loans. -- Provision for credit losses was $6.6 million for the three months ended September 30, 2020 as compared to $3.2 million for the three months ended September 30, 2019. The higher provisioning in the third quarter of 2020, as compared to the third quarter of 2019, was primarily due to the implementation of the CECL accounting standard for credit loss allowances and the impact of COVID-19 on our actual and expected future credit losses. -- Reserve for Unfunded Commitments decreased $2.1 million during third quarter 2020 attributable primarily to a decrease in unfunded commitments in accordance with CECL. -- Net charge-offs of $5.2 million in the third quarter of 2020 represented an annualized 0.26% of average loans, excluding loans held for sale, as compared to $1.5 million, or an annualized 0.08% of average loans, excluding loans held for sale, in the third quarter of 2019. Net charge-offs in the third quarter of 2020 were attributable primarily to two large commercial real estate relationships totaling $4.9 million. -- Noninterest income for the three months ended September 30, 2020 increased to $17.8 million from $6.3 million for the three months ended September 30, 2019, a 182.6% increase, due substantially to $9.5 million higher gains on the sale of residential mortgage loans, $1.2 million gain on the sale of an OREO property, and $912 thousand higher gains associated with the origination, securitization, sale and servicing of FHA loans. Owing to the historically low interest rate environment and refinance activity, residential mortgage loan locked commitments were $593.0 million for the third quarter of 2020 as compared to $282.1 million for the third quarter of 2019.Prior to the third quarter, revenue associated with best efforts loans was recognized at closing. As best efforts pipeline volumes increased dramatically in the third quarter, the company changed accounting methodology by which gains associated with the best efforts pipeline are recognized to align with GAAP, such that these gains are recognized as these loans are locked. As a result, an additional $1.6 million in noninterest income associated with the residential mortgage operations was recognized in the third quarter of 2020. The impact of this change in methodology on revenue associated with best efforts loans in prior reporting periods is immaterial. -- Noninterest expenses totaled $36.9 million for the three months ended September 30, 2020, as compared to $33.5 million for the three months ended September 30, 2019, a 10.3% increase, due substantially to increased FDIC fees and rent expense as discussed further below. FDIC insurance expenses increased $2.1 million from third quarter 2019 to third quarter 2020 due to a nonrecurring $1.1 million credit in the third quarter of 2019 and a higher assessment base in the third quarter of 2020 resulting from growth in total assets.Premise and equipment expenses increased by $1.6 million, or 46%, for the third quarter of 2020 over the same period of 2019. In accordance with ASC 842 on Leases, a $1.7 million one-time adjustment to rent expense was recorded during the third quarter as our internal review process identified a lease extension that was not originally recorded in the lease balances reflected in the Statement of Condition upon implementation of the new lease accounting standard.Legal, accounting and professional fees decreased by $528 thousand from third quarter 2019 to third quarter 2020, as the Bank recognized receivables on legal expenditures associated with insurance coverage where we believe we have a high likelihood of recovery pursuant to our D&O insurance policies. The Bank 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. Legal fees and expenditures of $957 thousand for the third quarter of 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.Data Processing fees increased by $517 thousand related to an increase in licensing fees. -- Efficiency ratio was 38.10% for the third quarter of 2020, as compared to 38.34% for the third quarter of 2019, due in part to strong noninterest income performance and lower legal expenses during the third quarter of 2020 compared to 2019. -- Effective income tax rate for the third quarter of 2020 was 25.4% as compared to 27.9% for the third quarter of 2019. The decrease was due to additional tax credits in 2020 compared to 2019 as well as reduced unfavorable tax differences for disallowed compensation deductions in respect of compensation for key executives in 2020. On an interim basis, tax expense is recorded using an annual forecasted effective tax rate. The forecast for 2020 is lower than 2019 due to increased credit reserves significantly attributable to COVID-19. As a result, the annual effective tax rate recorded on an interim basis declined.

Income Statement Highlights (First Nine Months 2020 versus First Nine Months 2019)

-- Net interest income decreased 1.3% for the nine months ended September 30, 2020 over the same period in 2019 ($240.1 million versus $243.3 million), resulting from net interest margin declines despite growth in average earning assets of 17.0%. -- Net interest margin was 3.27% for the nine months ended September 30, 2020, as compared to 3.88% for the nine months ended September 30, 2019. This decline was owing in part to the COVID-19 pandemic, 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 (0.75% for the first nine months of 2020 compared to 1.26% in 2019), the yield on earning assets declined by 112 basis points (from 5.14% to 4.02%).Additionally, the net interest on margin was negatively impacted by approximately two basis points due to lower rates on PPP loans. -- Provision for credit losses was $40.7 million for the nine months ended September 30, 2020 as compared to $10.1 million for the nine months ended September 30, 2019. The higher provisioning for the nine months ended September 30, 2020, as compared to the same period in 2019, is primarily due to the implementation of CECL and the impact of COVID-19 on our actual and expected future credit losses. -- Net charge-offs of $14.6 million for the nine months ended September 30, 2020 represented an annualized 0.25% of average loans, excluding loans held for sale, as compared to $6.4 million, or an annualized 0.12% of average loans, excluding loans held for sale, in the first nine months of 2019. Net charge-offs in the first nine months of 2020 were attributable primarily to commercial loans ($7.2 million) and commercial real estate loans ($7.2 million). -- Noninterest income for the nine months ended September 30, 2020 increased to $35.8 million from $19.0 million for the nine months ended September 30, 2019, an 89% increase, due substantially to $10.3 million higher gains on the sale of residential mortgage loans, $3.4 million higher gains associated with the origination, securitization, sale, and servicing of FHA loans, $1.4 million higher small business investment company ("SBIC") income, $1.2 million gain on the sale of an OREO property, $1.2 million higher swap fee income, and $703 thousand higher commitment fees, partially offset by less service charges on deposits of $1.4 million. Owing to the historically low interest rate environment and refinance activity, residential mortgage loan locked commitments were $1.4 billion for the first nine months ended September 30, 2020 as compared to $674.2 million for the first nine months of 2019.Residential lending gains for the first nine months of 2020 include $2.6 million in hedge and mark to market losses incurred during the first quarter of 2020 attributable to the Federal Reserves market actions negatively impacting mortgage backed securities pricing combined with sharp declines in servicing right valuations associated with investor uncertainty surrounding COVID-19.Prior to the third quarter, revenue associated with best efforts loans was recognized at closing. As best efforts pipeline volumes increased dramatically in the third quarter, the company changed accounting methodology by which gains associated with the best efforts pipeline are recognized to align with GAAP, such that these gains are recognized as these loans are locked. As a result, an additional $1.6 million in noninterest income associated with the residential mortgage operations was recognized in the first nine months of September 30, 2020. The impact of this change in methodology on revenue associated with best efforts loans in prior reporting periods is immaterial.Gain on sale of investment securities was $1.7 million and $1.6 million for the nine months ended September 30, 2020 and 2019, respectively. -- Noninterest expenses totaled $109.2 million for the nine months ended September 30, 2020, as compared to $105.1 million for the nine months ended September 30, 2019, a 3.8% increase. Salaries and employee benefits were $54.3 million, a decrease of $6.2 million or 10.2% for the first nine months ended September 30, 2020 compared to $60.5 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 the first nine months of 2020.Legal, accounting and professional fees were $14.1 million, an increase of $6.0 million or 74%. Legal fees and expenditures of $8.0 million for the first nine months of 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, where we filed a motion to dismiss on April 2, 2020. Briefing on our motion is now complete and is under consideration by the court. The amount of legal fees and expenditures for the year is net of expected insurance coverage where we believe we have a high likelihood of 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 time.FDIC expenses increased $3.2 million (from $2.3 million to $5.6 million) due to a nonrecurring $1.1 million credit in the third quarter of 2019 and a higher assessment base resulting from growth in total assets.Premises and equipment expenses were $1.4 million higher for the first nine months of 2020 as compared to same period in 2019. In accordance with ASC 842 on Leases, we recorded $1.7 million to rent expense during the third quarter 2020 as our internal review process identified a lease extension that was not originally recorded in the lease balances reflected in the Statement of Condition upon implementation of the new lease accounting standard.Data processing increased by $794 thousand due to an increase in licensing agreements and network expenses.Other expenses decreased by $700 thousand primarily related to $2.3 million lower broker fees, offset by $931 thousand higher OREO property tax expense on a single relationship, and $378 thousand higher franchise taxes. -- Efficiency Ratio for the first nine months of 2020 was 39.56% as compared to 40.08% for the same period in 2019. -- Effective income tax rates were 25.4% and 26.9% for the first nine months of September 2020 and 2019, respectively. The decrease in the effective tax rate was mainly attributable to a reduction for unfavorable tax differences for disallowed compensation deductions in respect of compensation for key executives, mainly related to the compensation of our former CEO and Chairman who resigned in March 2019 as well as additional tax credits in 2020 compared to 2019. On an interim basis tax expense is recorded using an annual forecasted effective tax rate. The forecast for 2020 is lower than 2019 due to increased credit reserves significantly attributable to COVID-19. As a result, the annual effective tax rate on an interim basis declined.

Additional Quarterly Financial Commentary

Loans, Deposits, Yields & Rates:

The Company continues to focus on changes in average balances quarter over quarter and year over year since that measure more directly impacts income statement results. Comparing average balances in the third quarter of 2020 versus the second quarter of 2020, average loans declined 1.3% while average deposits increased by 1.3%. At September 30, 2020, the Bank had advances outstanding of $466.0 million to just over 1,400 businesses under the PPP program.

In the third quarter of 2020, as average U.S. Treasury rates in the two to five year range declined by approximately seven basis points and the average yield curve remained fairly flat, the Company experienced 18 basis points of net interest margin compression (from 3.26% to 3.08%) as compared to the second quarter of 2020. In addition, our cost of funds declined 7 basis points (from 0.65% to 0.58%), while the yield on earning assets declined by 25 basis points (from 3.91% to 3.66%). Average liquidity for the third quarter was $1.3 billion versus $1.1 billion for the second quarter of 2020. The yield on our loan assets was negatively impacted by the low interest rate environment in the third quarter of 2020, including a 19 basis point decline in the average one-month LIBOR rate. A substantial portion of the variable rate loan portfolio has interest rate floors which cushioned the decline in loan yields.

In the third quarter of 2020, period end total loans declined 1.3% over June 30, 2020, while total deposits increased 1.3% over June 30, 2020. New loans settled in the third quarter of 2020 were below average levels due substantially to the COVID-19 environment, while loan payoffs were close to average levels. Average unfunded loan commitments declined immaterially in third quarter 2020 from the previous seven quarters, from an average of $2.3 billion to just below $2.0 billion. 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 31.7% in the third quarter of 2020, as compared to 29.5% in the third quarter of 2019.

The net interest margin was 3.08% for the third quarter of 2020, down 64 basis points from the third quarter of 2019. In addition to the current sharply lower interest rate environment as compared to 2019, there was 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 4.46% for the third quarter of 2020 as compared to 5.39% for the third quarter of 2019 and 4.63% for the second quarter of 2020. The addition of the PPP loans at an average yield of 2.41% for the quarter negatively impacted the overall yield of the total loan portfolio by approximately 13 basis points. The cost of funds was 0.58% for the third quarter of 2020 as compared to 1.28% for the third quarter of 2019 and 0.65% for the second quarter of 2020.

Asset Quality:

Asset quality measures remained solid at September 30, 2020. Net charge-offs (annualized) were 0.26% of average loans for the third quarter of 2020 (attributable mostly to two credits), as compared to 0.08% of average loans for the third quarter of 2019. At September 30, 2020, the Companys nonperforming loans amounted to $58.1 million (0.74% of total loans) as compared to $57.7 million (0.76% of total loans) at September 30, 2019, and $48.7 million (0.65% of total loans) at December 31, 2019. Nonperforming assets amounted to $63.0 million (0.62% of total assets) at September 30, 2020 compared to $59.1 million (0.66% of total assets) at September 30, 2019 and $50.2 million (0.56% of total assets) at December 31, 2019.

As discussed in the first quarter 2020 earnings release, the new accounting CECL standard (ASC 326) was adopted by the Company in the first quarter of 2020. CECL required a significant change in how banks assess credit risk and establish reserves for possible future loan losses. Two significant changes under the new standard are the requirements to establish loan loss reserves at loan origination considering the entire life of the loan and to estimate lifetime loss reserves by modeling a forecast that is impacted by economic assumptions.

Under the CECL standard and based on the January 1, 2020 effective date, 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 through March 31, 2020, under the CECL allowance methodology, the Company further increased the allowance for loan losses to 1.23% as of March 31, 2020 and again to 1.36% as of June 30, 2020, which included the assessment of COVID-19 risks as of March 31, 2020 and as of June 30, 2020, respectively. Based on our ongoing risk analysis and modeling through September 30, 2020, under the CECL allowance methodology, the Company further increased the allowance for loan losses to 1.40% of total loans, 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. We have also made additional qualitative overlays for loans that are on their second deferrals. The September 2020 unemployment forecast was less severe than the June forecast. Management believes its allowance for credit losses, at 1.40% of total loans (excluding loans held for sale) at September 30, 2020, is adequate to absorb expected credit losses within the loan portfolio at that date. Although the Company continues to monitor its loan portfolio and its borrowers' uncertainty remains about the duration of the COVID-19 pandemic and its impacts and further significant negative impact may occur. Under the prior accounting standard known as the incurred loss model, the allowance for credit losses was 0.98% at both September 30, 2019 and December 31, 2019. The allowance for credit losses of $110.2 million at September 30, 2020 represented 190% of nonperforming loans at that date, as compared to a coverage ratio of 128% at September 30, 2019 and 151% at December 31, 2019.

The COVID-19 pandemic, which began in the U.S. in the first quarter of 2020, raised significant concerns in the outlook over bank credit quality, particularly in certain industries, as COVID-19 resulted in the closure or restriction of businesses across the region as stay-at-home orders were given in the various municipalities in which the Company operates. Among those industries most clearly impacted is the Accommodation and Food Service industry. Exposure to this industry (as shown in the chart below) represents 10.2% of the Banks loan portfolio as of September 30, 2020. 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, including placing loans on nonaccrual status. There remains uncertainty regarding the regions overall economic outlook given lack of clarity over how long COVID-19 will continue to impact our region. Management has been working with customers on payment deferrals (generally 90 days) to assist client companies in managing through this crisis. These deferrals amounted to 321 notes and $851 million at September 30, 2020 (10.8% of total loans) as compared to 708 notes representing $1.6 billion in outstanding exposure as of June 30, 2020.

Total Total WeightedIndustry/ Number of Outstanding Deferred Deferred % Avg LTV of Avg LoanCollateral Notes (in Note Outstanding Outstanding RE Size (inType millions) Count (in Deferred Collateral millions) millions)Hotels 43 $ 532 17 $ 387 72.7 % 60 % $ 22.8 Transportation 66 $ 173 34 $ 134 77.5 % 65 % $ 3.9 & WarehousingRestaurants 427 $ 274 127 $ 115 42.0 % 61 % $ 0.9 Retail 319 $ 475 17 $ 73 15.4 % 69 % $ 4.3 Other Real 919 $ 3,752 21 $ 34 0.9 % 47 % $ 1.6 EstateHealthcare 196 $ 249 8 $ 28 11.2 % 67 % $ 3.5 Art/Entertainment/ 65 $ 138 8 $ 23 16.7 % 15 % $ 2.9 RecreationOther 2,992 $ 2,287 89 $ 57 2.5 % 60 % $ 0.6 Total 5,027 $ 7,880 321 $ 851 10.8 % $ 2.7

Management believes that none of these deferrals have met the criteria for treatment under GAAP as troubled debt restructurings (TDRs). Additionally, none of the deferrals are reflected 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 TDR. 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 September 30, 2020 and additional COVID-19 loan related matters are discussed below.

COVID-19 Discussion Matters

Employee Matters:

Management continues to acknowledge the flexibility and engagement of our hard working employees during this crisis. As the COVID-19 pandemic has unfolded, the majority of our workforce transitioned quickly to remote access operations. Our information technology infrastructure continues to support our organization in working predominantly remotely as we continue to service the needs of our clients. While we continue to temporarily allow the majority of our employees to work remotely, there are some functions that require a physical presence at our banking offices. While there has been no decision at this time to return to the workplace, we have established general guidelines for returning that include having employees maintain safe distances, staggered work schedules to limit the number of employees in a single location, more frequent cleaning of our facilities and other practices encouraging a safe working environment during this challenging time, including required COVID-19 training programs. Management remains connected to employees through periodic company-wide telephonic meetings and regular notifications and updates through both email and the Companys intranet.

Branch Hours:

Branch hours and availability which were modified in consideration of the safety of our employees and clients were reinstated in the second quarter of 2020. All branches have been opened with advanced safety measures and are available during regular business hours to meet the needs of our clients for the third quarter of 2020.

The CARES Act:

Enacted March 27, 2020 the CARES Act included several provisions designed to provide relief to individuals and businesses as well as the banking system. Among the more significant components of this legislation for our Company was the creation of the $350 billion PPP, which program was further expanded by Congress in the second quarter of 2020, to a total of $660 billion. Loans made under the PPP are fully guaranteed as to principal and interest by the Small Business Administration (SBA), whose guarantee is backed by the full faith and credit of the U.S. Government. PPP-covered loans also afford borrowers forgiveness up to the principal amount of the PPP-covered loan if the proceeds are used to retain workers and maintain payroll or make mortgage interest, lease and utility payments. The SBA will reimburse PPP lenders for any amount of a PPP-covered loan that is forgiven.

As an SBA preferred lender, the Bank actively participated in the PPP program, and at September 30, 2020 had an outstanding balance of PPP loans of $466.0 million to just over 1,400 businesses. The average rate on these loans is 1.00% and the average yield which includes fee amortization was 2.41% for the third quarter of 2020. The lower loan yield on these PPP loans negatively affected third quarter loan portfolio yields by 13 basis points. For the first nine months of 2020, the average rate on these loans is 1.00% and the average yield which includes fee amortization was 2.62%. The lower loan yield on these PPP loans negatively affected nine month loan portfolio yields in 2020 by seven basis points.

Loan Portfolio Exposures:

Industry areas of potential concern within the Loan Portfolio are presented below as of September 30, 2020:

Industry Principal Balance (in % of Loan thousands) PortfolioAccommodation & Food $ 804,712 1 10.2 %ServicesRetail Trade $ 99,202 2 1.3 %

1 Includes $81,983 of PPP loans.2 Includes $13,561 of PPP loans.

Concerns over exposures to the Accommodation and Food Service industry and retail remain the most immediate at this time. Accommodation and Food Service exposure represents 10.2% of the Banks loan portfolio as of September 30, 2020 among 331 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 September 30, 2020:

Property Type Principal Balance (in thousands) % of Loan PortfolioRestaurant $ 46,710 0.6 %Hotel $ 35,782 0.5 %Retail $ 389,485 4.9 %

Although not evidenced at September 30, 2020, it is anticipated that some portion of the CRE 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.

The financial information which follows provides more detail on the Companys financial performance for the three and nine months ended September 30, 2020 as compared to the three and nine months ended September 30, 2019 as well as providing eight quarters of trend data. Persons wishing additional information should refer to the Companys Form 10-K for the year ended December 31, 2019 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 third quarter 2020 financial results on Thursday, October 22, 2020 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 4653118, 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 November 5, 2020.

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 and June 30, 2020, the Companys upcoming Quarterly Report on Form 10-Q for the quarter ended September 30, 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 September 30, Nine Months Ended September 30, 2020 2019 2020 2019Income Statements:Totalinterest $ 93,833 $ 109,034 $ 295,306 $ 322,447 incomeTotalinterest 14,795 28,045 55,161 79,112 expenseNet interest 79,038 80,989 240,145 243,335 incomeProvision for 6,607 3,186 40,654 10,146 credit lossesProvision forUnfunded (2,078 ) ? 974 ? CommitmentsNet interestincome after 74,509 77,803 198,517 233,189 provision forcredit lossesNoninterestincome(before 17,729 6,161 34,159 17,337 investmentgain)Gain on saleof investment 115 153 1,650 1,628 securitiesTotalnoninterest 17,844 6,314 35,809 18,965 incomeTotalnoninterest 36,915 33,473 109,154 105,136 expenseIncome beforeincome tax 55,438 50,644 125,172 147,018 expenseIncome tax 14,092 14,149 31,847 39,531 expenseNet income $ 41,346 $ 36,495 $ 93,325 $ 107,487 Per Share Data:Earnings perweightedaverage $ 1.28 $ 1.07 $ 2.88 $ 3.12 common share,basicEarnings perweightedaverage $ 1.28 $ 1.07 $ 2.88 $ 3.12 common share,dilutedWeightedaveragecommon shares 32,229,322 34,232,890 32,433,963 34,418,154 outstanding,basicWeightedaveragecommon shares 32,250,885 34,255,889 32,458,100 34,450,876 outstanding,dilutedActual sharesoutstanding 32,228,636 33,720,522 32,228,636 33,720,522 at period endBook valueper common $ 37.96 $ 35.13 $ 37.96 $ 35.13 share atperiod endTangible bookvalue percommon share $ 34.70 $ 32.02 $ 34.70 $ 32.02 at period end^(1)Dividend per $ 0.22 $ 0.22 $ 0.66 $ 0.44 common sharePerformanceRatios (annualized):Return onaverage 1.57 % 1.62 % 1.24 % 1.66 %assetsReturn onaverage 14.46 % 12.09 % 10.44 % 12.34 %common equityReturn onaverage 15.93 % 13.25 % 11.45 % 13.57 %tangiblecommon equityNet interest 3.08 % 3.72 % 3.27 % 3.88 %marginEfficiency 38.10 % 38.34 % 39.56 % 40.08 %ratio ^(2)Other Ratios: Allowance forcredit losses 1.40 % 0.98 % 1.40 % 0.98 %to totalloans ^(3)Allowance forcredit lossesto total 189.83 % 127.87 % 189.83 % 127.87 %nonperformingloansNonperformingloans to 0.74 % 0.76 % 0.74 % 0.76 %total loans ^(3)Nonperformingassets to 0.62 % 0.66 % 0.62 % 0.66 %total assetsNetcharge-offs(annualized) 0.26 % 0.08 % 0.25 % 0.12 %to averageloans^ (3)Common equityto total 12.11 % 13.16 % 12.11 % 13.16 %assetsTier 1capital (to 10.82 % 12.19 % 10.82 % 12.19 %averageassets)Total capital(to risk 16.72 % 16.08 % 16.72 % 16.08 %weightedassets)Common equitytier 1capital (to 13.19 % 12.76 % 13.19 % 12.76 %risk weightedassets)Tangiblecommon equity 11.18 % 12.13 % 11.18 % 12.13 %ratio ^(1)Loan Balances- Period End (inthousands):Commercialand $ 1,524,613 $ 1,466,862 $ 1,524,613 $ 1,466,862 IndustrialPPP loans $ 456,115 $ ? $ 456,115 $ ? (continued) Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Commercialreal estate - $ 997,645 $ 956,345 $ 997,645 $ 956,345 owneroccupiedCommercialreal estate - $ 3,724,839 $ 3,812,284 $ 3,724,839 $ 3,812,284 incomeproducing1-4 Family $ 82,385 $ 104,563 $ 82,385 $ 104,563 mortgageConstruction- commercial $ 879,144 $ 1,053,789 $ 879,144 $ 1,053,789 andresidentialConstruction- C&I (owner $ 140,357 $ 81,916 $ 140,357 $ 81,916 occupied)Home equity $ 72,648 $ 8,117 $ 72,648 $ 81,117 Other $ 2,509 $ 2,285 $ 2,509 $ 2,285 consumerAverageBalances (in thousands):Total assets $ 10,473,595 $ 8,923,406 $ 10,084,081 $ 8,659,916 Total earning $ 10,205,939 $ 8,655,196 $ 9,814,305 $ 8,391,463 assetsTotal loans $ 7,910,260 $ 7,492,816 $ 7,859,188 $ 7,265,726 Total $ 8,591,912 $ 7,319,314 $ 8,258,352 $ 7,068,137 depositsTotal $ 596,472 $ 345,464 $ 560,427 $ 360,920 borrowingsTotalshareholders? $ 1,211,145 $ 1,197,513 $ 1,193,988 $ 1,164,541 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 a reconciliation of these non-GAAP financial measures with financial measures defined by GAAP.

(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.

GAAPReconciliation (Unaudited)(dollars inthousands except pershare data) Three Months Ended Nine Months Ended Year Ended Three Months Ended Nine Months Ended September 30, 2020 September 30, 2020 December 31, 2019 September 30, 2019 September 30, 2019Commonshareholders' $ 1,223,402 $ 1,190,681 $ 1,184,594 equityLess:Intangible (105,165 ) (104,739 ) (104,915 ) assetsTangible $ 1,118,237 $ 1,085,942 $ 1,079,679 common equityBook value per $ 37.96 $ 35.82 $ 35.13 common shareLess:Intangible (3.26 ) (3.15 ) (3.11 ) book value percommon shareTangible bookvalue per $ 34.70 $ 32.67 $ 32.02 common shareTotal assets $ 10,106,294 $ 8,988,719 $ 9,003,467 Less:Intangible (105,165 ) (104,739 ) (104,915 ) assetsTangible $ 10,001,129 $ 8,883,980 $ 8,898,552 assetsTangiblecommon equity 11.18 % 12.22 % 12.13 %ratioAverage commonshareholders' $ 1,137,826 $ 1,193,988 $ 1,172,051 $ 1,197,513 $ 1,164,542 equityLess: Averageintangible (105,106 ) (104,826 ) (105,167 ) (105,034 ) (105,297 ) assetsAveragetangible $ 1,032,720 $ 1,089,162 $ 1,066,884 $ 1,092,479 $ 1,059,245 common equityNet IncomeAvailable to $ 41,346 $ 93,325 $ 142,943 $ 36,495 $ 107,487 CommonShareholdersAveragetangible $ 1,032,720 $ 1,089,162 $ 1,066,884 $ 1,092,479 $ 1,059,245 common equityAnnualizedReturn onAverage 15.93 % 11.45 % 13.40 % 13.25 % 13.57 %TangibleCommon Equity

Eagle Bancorp, Inc. Consolidated Balance Sheets (Unaudited)(dollars in thousands, except per share data)Assets September 30, December 31, September 30, 2020 2019 2019Cash and due from banks $ 7,559 $ 7,539 $ 6,657 Federal funds sold 30,830 38,987 27,711 Interest bearingdeposits with banks and 818,719 195,447 361,154 other short-terminvestmentsInvestment securitiesavailable for sale, atfair value (amortizedcost of $956,803,$839,192, and $701,956,and allowance for 977,570 843,363 708,545 credit losses of $156,$0, and $0, as ofSeptember 30, 2020,December 31, 2019 andSeptember 30, 2019,respectively).Federal Reserve andFederal Home Loan Bank 40,061 35,194 28,725 stockLoans held for sale 79,084 56,707 52,199 Loans 7,880,255 7,545,748 7,559,161 Less allowance for (110,215 ) (73,658 ) (73,720 ) credit lossesLoans, net 7,770,040 7,472,090 7,485,441 Premises and equipment, 12,204 14,622 14,515 netOperating lease 27,180 27,372 26,552 right-of-use assetsDeferred income taxes 36,363 29,804 29,722 Bank owned life 76,326 75,724 74,726 insuranceIntangible assets, net 105,165 104,739 104,915 Other real estate owned 4,987 1,487 1,487 Other assets 120,206 85,644 81,118 Total Assets $ 10,106,294 $ 8,988,719 $ 9,003,467 Liabilities and Shareholders' EquityDeposits: Noninterest bearing $ 2,384,108 $ 2,064,367 $ 2,051,106 demandInterest bearing 823,607 863,856 918,011 transactionSavings and money 3,956,553 3,013,129 3,034,530 marketTime, $100,000 or more 553,949 663,987 772,340 Other time 460,568 619,052 626,526 Total deposits 8,178,785 7,224,391 7,402,513 Customer repurchase 24,293 30,980 30,297 agreementsOther short-term 300,000 250,000 100,000 borrowingsLong-term borrowings 267,980 217,687 217,589 Operating lease 30,457 29,959 29,586 liabilitiesReserve for unfunded 5,092 ? ? commitmentsOther liabilities 76,285 45,021 38,888 Total liabilities 8,882,892 7,798,038 7,818,873 Shareholders' Equity Common stock, par value$.01 per share; shares authorized 100,000,000,sharesissued and outstanding32,228,636, 33,241,496, 320 331 336 and 34,539,853,respectivelyAdditional paid in 442,592 482,286 502,566 capitalRetained earnings 766,219 705,105 677,055 Accumulated other 14,271 2,959 4,637 comprehensive incomeTotal Shareholders' 1,223,402 1,190,681 1,184,594 EquityTotal Liabilities and $ 10,106,294 $ 8,988,719 $ 9,003,467 Shareholders' Equity

Eagle Bancorp, Inc. ConsolidatedStatements of Income (Unaudited)(dollars inthousands, except per share data) Three Months Ended September Nine Months Ended September 30, 30,Interest Income 2020 2019 2020 2019Interest and fees on $ 89,296 $ 102,297 $ 278,979 $ 302,007 loansInterest anddividends on 4,141 4,904 14,139 15,740 investmentsecuritiesInterest on balanceswith other banks and 384 1,762 2,104 4,533 short-terminvestmentsInterest on federal 12 71 84 167 funds soldTotal interest 93,833 109,034 295,306 322,447 incomeInterest Expense Interest on deposits 10,995 24,576 44,055 67,937 Interest on customerrepurchase 84 82 257 255 agreementsInterest on othershort-term 505 408 1,363 1,983 borrowingsInterest on 3,211 2,979 9,486 8,937 long-term borrowingsTotal interest 14,795 28,045 55,161 79,112 expenseNet Interest Income 79,038 80,989 240,145 243,335 Provision for Credit 6,607 3,186 40,654 10,146 LossesProvision for (2,078 ) ? 974 ? Unfunded CommitmentsNet Interest IncomeAfter Provision For 74,509 77,803 198,517 233,189 Credit LossesNoninterest Income Service charges on 1,061 1,494 3,428 4,794 depositsGain on sale of 12,226 2,563 16,249 5,874 loansGain on sale ofinvestment 115 153 1,650 1,628 securitiesIncrease in the cashsurrender value of 413 431 1,655 1,285 bank owned lifeinsuranceOther income 4,029 1,673 12,827 5,384 Total noninterest 17,844 6,314 35,809 18,965 incomeNoninterest Expense Salaries and 19,388 19,095 54,289 60,482 employee benefitsPremises and 5,125 3,503 12,414 11,007 equipment expensesMarketing and 928 1,210 3,117 3,626 advertisingData processing 2,700 2,183 7,955 7,161 Legal, accountingand professional 3,097 3,625 14,064 8,074 feesFDIC insurance 2,152 85 5,556 2,327 Other expenses 3,525 3,772 11,759 12,459 Total noninterest 36,915 33,473 109,154 105,136 expenseIncome Before Income 55,438 50,644 125,172 147,018 Tax ExpenseIncome Tax Expense 14,092 14,149 31,847 39,531 Net Income $ 41,346 $ 36,495 $ 93,325 $ 107,487 Earnings Per Common ShareBasic $ 1.28 $ 1.07 $ 2.88 $ 3.12 Diluted $ 1.28 $ 1.07 $ 2.88 $ 3.12

Eagle Bancorp, Inc.Consolidated Average Balances, Interest Yields And Rates (Unaudited)(dollars in thousands) Three Months Ended September 30, 2020 2019 Average Average Average Average Balance Interest Yield/ Balance Interest Yield/ Rate RateASSETS Interestearning assets:Interestbearingdeposits withother banks $ 1,275,932 $ 384 0.12 % $ 344,853 $ 1,762 2.03 %and othershort-terminvestmentsLoans held 79,354 567 2.86 % 49,765 492 3.95 %for sale ^(1)Loans ^(1) 7,910,260 88,730 4.46 % 7,492,816 101,805 5.39 %(2)Investmentsecurities 906,990 4,141 1.82 % 741,907 4,904 2.62 %available forsale ^(2)Federal funds 33,403 11 0.13 % 25,855 71 1.09 %soldTotalinterest 10,205,939 93,833 3.66 % 8,655,196 109,034 5.00 %earningassetsTotalnoninterest 376,681 341,452 earningassetsLess:allowance for 109,025 73,242 credit lossesTotalnoninterest 267,656 268,210 earningassetsTOTAL ASSETS $ 10,473,595 $ 8,923,406 LIABILITIESAND SHAREHOLDERS'EQUITYInterestbearing liabilities:Interestbearing $ 756,005 $ 483 0.25 % $ 791,785 $ 1,828 0.92 %transactionSavings and 3,998,603 4,929 0.49 % 2,922,751 13,606 1.85 %money marketTime deposits 1,112,664 5,583 2.00 % 1,444,328 9,142 2.51 %Totalinterest 5,867,272 10,995 0.75 % 5,158,864 24,576 1.89 %bearingdepositsCustomerrepurchase 28,523 84 1.17 % 27,809 82 1.17 %agreementsOthershort-term 300,003 506 0.66 % 100,100 408 1.59 %borrowingsLong-term 267,946 3,211 4.69 % 217,555 2,979 5.36 %borrowingsTotalinterest 6,463,744 14,796 0.91 % 5,504,328 28,045 2.02 %bearingliabilitiesNoninterestbearing liabilities:Noninterestbearing 2,724,640 2,160,450 demandOther 74,066 61,115 liabilitiesTotalnoninterest 2,798,706 2,221,565 bearingliabilitiesShareholders? 1,211,145 1,197,513 EquityTOTALLIABILITIESAND $ 10,473,595 $ 8,923,406 SHAREHOLDERS'EQUITYNet interest $ 79,037 $ 80,989 incomeNet interest 2.75 % 2.98 %spreadNet interest 3.08 % 3.72 %marginCost of funds 0.58 % 1.28 %

(1) Loans placed on nonaccrual status are included in average balances. Net loan fees and late charges included in interest income on loans totaled $5.4 million and $4.3 million for the three months ended September 30, 2020 and 2019, respectively.(2) Interest and fees on loans and investments exclude tax equivalent adjustments.

Eagle Bancorp, Inc.Consolidated Average Balances, Interest Yields and Rates (Unaudited)(dollars in thousands) Nine Months Ended September 30, 2020 2019 Average Average Average Average Balance Interest Yield/ Balance Interest Yield/ Rate RateASSETS Interestearning assets:Interestbearingdeposits withother banks $ 990,051 $ 2,104 0.28 % $ 285,150 $ 4,533 2.13 %and othershort-terminvestmentsLoans held 66,158 1,605 3.23 % 34,265 1,041 4.05 %for sale ^(1)Loans ^(1) 7,859,188 277,373 4.71 % 7,265,726 300,966 5.54 %(2)Investmentsecurities 865,484 14,139 2.18 % 784,970 15,740 2.68 %available forsale ^(1)Federal funds 33,424 84 0.34 % 21,352 167 1.05 %soldTotalinterest 9,814,305 295,305 4.02 % 8,391,463 322,447 5.14 %earningassetsTotalnoninterest 368,974 339,355 earningassetsLess:allowance for 99,198 70,902 credit lossesTotalnoninterest 269,776 268,453 earningassetsTOTAL ASSETS $ 10,084,081 8,659,916 LIABILITIESAND SHAREHOLDERS'EQUITYInterestbearing liabilities:Interestbearing $ 787,434 $ 2,679 0.45 % $ 696,825 $ 4,206 0.81 %transactionSavings and 3,751,397 21,619 0.77 % 2,781,663 37,848 1.82 %money marketTime deposits 1,199,654 19,757 2.20 % 1,406,237 25,883 2.46 %Totalinterest 5,738,485 44,055 1.03 % 4,884,725 67,937 1.86 %bearingdepositsCustomerrepurchase 29,710 257 1.16 % 29,617 255 1.15 %agreementsOthershort-term 273,452 1,364 0.66 % 113,845 1,983 2.30 %borrowingsLong-term 257,265 9,486 4.84 % 217,458 8,937 5.42 %borrowingsTotalinterest 6,298,912 55,162 1.17 % 5,245,645 79,112 2.02 %bearingliabilitiesNoninterestbearing liabilities:Noninterestbearing 2,519,867 2,183,412 demandOther 71,314 66,318 liabilitiesTotalnoninterest 2,591,181 2,249,730 bearingliabilitiesShareholders? 1,193,988 1,164,541 equityTOTALLIABILITIESAND $ 10,084,081 $ 8,659,916 SHAREHOLDERS'EQUITYNet interest $ 240,143 $ 243,335 incomeNet interest 2.85 % 3.12 %spreadNet interest 3.27 % 3.88 %marginCost of funds 0.75 % 1.26 %

(1) Loans placed on nonaccrual status are included in average balances. Net loan fees and late charges included in interest income on loans totaled $16.1 million and $13.1 million for the nine months ended September 30, 2020 and 2019, respectively.

(2) Interest and fees on loans and investments exclude tax equivalent adjustments.

Statements of Income and Highlights Quarterly Trends (Unaudited)(dollars inthousands, except pershare data) Three Months Ended September 30, June 30, March 31, December 31, September 30, June 30, March 31, December 31, Income 2020 2020 2020 2019 2019 2019 2019 2018 Statements:Totalinterest $ 93,833 $ 97,672 $ 103,801 $ 107,183 $ 109,034 $ 108,279 $ 105,134 $ 105,581 incomeTotalinterest 14,795 16,309 24,057 26,473 28,045 26,950 24,117 23,869 expenseNet interest 79,038 81,363 79,744 80,710 80,989 81,329 81,017 81,712 incomeProvision for 6,607 19,737 14,310 2,945 3,186 3,600 3,360 2,600 credit lossesProvision forunfunded (2,078 ) 940 2,112 ? ? ? ? ? commitmentsNet interestincome after 74,509 60,686 63,322 77,765 77,803 77,729 77,657 79,112 provision forcredit lossesNoninterestincome(before 17,729 11,782 4,648 6,845 6,161 5,797 5,379 6,060 investmentgain (loss))Gain (loss)on sale of 115 713 822 (111 ) 153 563 912 29 investmentsecuritiesTotalnoninterest 17,844 12,495 5,470 6,734 6,314 6,360 6,291 6,089 incomeSalaries andemployee 19,388 17,104 17,797 19,360 19,095 17,743 23,644 15,907 benefitsPremises and 5,125 3,468 3,821 3,380 3,503 3,652 3,852 3,969 equipmentMarketing and 928 1,111 1,078 1,200 1,210 1,268 1,148 1,147 advertisingOther 11,474 13,209 14,651 10,786 9,665 10,696 9,660 10,664 expensesTotalnoninterest 36,915 34,892 37,347 34,726 33,473 33,359 38,304 31,687 expenseIncome beforeincome tax 55,438 38,289 31,445 49,773 50,644 50,730 45,644 53,514 expenseIncome tax 14,092 9,433 8,322 14,317 14,149 13,487 11,895 13,197 expenseNet income 41,346 28,856 23,123 35,456 36,495 37,243 33,749 40,317 Per Share Data:Earnings perweightedaverage $ 1.28 $ 0.90 $ 0.70 $ 1.06 $ 1.07 $ 1.08 $ 0.98 $ 1.17 common share,basicEarnings perweightedaverage $ 1.28 $ 0.90 $ 0.70 $ 1.06 $ 1.07 $ 1.08 $ 0.98 $ 1.17 common share,dilutedWeightedaveragecommon shares 32,229,322 32,224,695 32,850,112 33,468,572 34,232,890 34,540,152 34,480,772 34,349,089 outstanding,basicWeightedaveragecommon shares 32,250,885 32,240,825 32,875,508 33,498,681 34,255,889 34,565,253 34,536,236 34,460,985 outstanding,dilutedActual sharesoutstanding 32,228,636 32,224,756 32,197,258 33,241,496 33,720,522 34,539,853 34,537,193 34,387,919 at period endBook valueper common $ 37.96 $ 36.86 $ 36.11 $ 35.82 $ 35.13 $ 34.30 $ 33.25 $ 32.25 share atperiod endTangible bookvalue percommon share $ 34.70 $ 33.62 $ 32.86 $ 32.67 $ 32.02 $ 31.25 $ 30.20 $ 29.17 at period end^(1)Dividend per $ 0.22 $ 0.22 $ 0.22 $ 0.22 $ 0.22 $ 0.22 $ ? $ ? common sharePerformanceRatios (annualized):Return onaverage 1.57 % 1.12 % 0.98 % 1.49 % 1.62 % 1.74 % 1.62 % 1.90 % assetsReturn onaverage 14.46 % 9.84 % 7.81 % 11.78 % 12.09 % 12.81 % 12.12 % 14.82 % common equity(continued) Statements of Income and Highlights Quarterly Trends (Unaudited)(dollars inthousands, except pershare data) Three Months Ended September 30, June 30, March 31, December 31, September 30, June 30, March 31, December 31, 2020 2020 2020 2019 2019 2019 2019 2018 Return onaverage 15.93 % 10.80 % 8.56 % 12.91 % 13.25 % 14.08 % 13.38 % 16.43 % tangiblecommon equityNet interest 3.08 % 3.26 % 3.49 % 3.49 % 3.72 % 3.91 % 4.02 % 3.97 % marginEfficiency 38.10 % 37.18 % 43.83 % 39.71 % 38.34 % 38.04 % 43.87 % 36.09 % ratio^ (2)Other Ratios: Allowance forcredit losses 1.40 % 1.36 % 1.23 % 0.98 % 0.98 % 0.98 % 0.98 % 1.00 % to totalloans ^(3)Allowance forcredit lossesto total 189.83 % 184.52 % 201.80 % 151.16 % 127.87 % 192.70 % 173.72 % 429.72 % nonperformingloans ^(4)Nonperformingloans to 0.74 % 0.74 % 0.61 % 0.65 % 0.76 % 0.51 % 0.56 % 0.23 % total loans ^(3) (4)Nonperformingassets to 0.62 % 0.69 % 0.56 % 0.56 % 0.66 % 0.45 % 0.50 % 0.21 % total assets^(4)Netcharge-offs(annualized) 0.26 % 0.36 % 0.12 % 0.16 % 0.08 % 0.08 % 0.19 % 0.05 % to averageloans ^(3)Tier 1capital (to 10.82 % 10.63 % 11.33 % 11.62 % 12.19 % 12.66 % 12.49 % 12.08 % averageassets)Total capital(to risk 16.72 % 16.33 % 15.44 % 16.20 % 16.08 % 16.36 % 16.22 % 16.08 % weightedassets)Common equitytier 1capital (to 13.19 % 12.79 % 12.14 % 12.87 % 12.76 % 12.87 % 12.69 % 12.47 % risk weightedassets)Tangiblecommon equity 11.18 % 11.17 % 10.70 % 12.22 % 12.13 % 12.60 % 12.59 % 12.11 % ratio^ (1)AverageBalances (in thousands):Total assets $ 10,473,595 $ 10,326,709 $ 9,447,663 $ 9,426,220 $ 8,923,406 $ 8,595,523 $ 8,455,680 $ 8,415,480 Total earning $ 10,205,939 $ 10,056,500 $ 9,176,174 $ 9,160,034 $ 8,655,196 $ 8,328,323 $ 8,185,711 $ 8,171,010 assetsTotal loans $ 7,910,260 $ 8,015,751 $ 7,650,993 $ 7,532,179 $ 7,492,816 $ 7,260,899 $ 7,038,472 $ 6,897,434 Total $ 8,591,912 $ 8,482,718 $ 7,696,764 $ 7,716,973 $ 7,319,314 $ 6,893,981 $ 6,987,468 $ 6,950,714 depositsTotal $ 596,472 $ 598,463 $ 485,948 $ 449,432 $ 345,464 $ 470,214 $ 266,209 $ 342,637 borrowingsTotalshareholders? $ 1,211,145 $ 1,179,452 $ 1,191,180 $ 1,194,337 $ 1,197,513 $ 1,166,487 $ 1,128,869 $ 1,079,622 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.(4) Nonperforming loans at September 30, 2019, includes a $16.5 million loan that was brought current shortly after quarter end.

EAGLE BANCORP, INC.CONTACT:Michael T. Flynn301.986.1800