Profile: Eagle Bancorp Inc (EGBN.OQ)
Eagle Bancorp, Inc., incorporated on October 28, 1997, is a bank holding company for EagleBank (the Bank). The Bank is the Company's principal operating subsidiary. The Bank is a chartered commercial bank. The Bank operates twenty two banking offices: seven in Montgomery County, Maryland; five located in the District of Columbia, and ten in Northern Virginia. The Bank offers a range of commercial banking services to its business and professional clients, as well as consumer banking services to individuals living or working in the service area. The Bank also provides commercial banking services to sole proprietorships, businesses, partnerships, corporations, non-profit organizations and associations, and investors living and working in and near the Bank's primary service area. The Bank offers a range of retail banking services to accommodate the individual needs of both corporate customers as well as the community the Bank serves. The Bank also offers online banking, mobile banking and a remote deposit service.
The Company has one direct non-banking subsidiary, Eagle Commercial Ventures, LLC (ECV), which provides subordinated financing for the acquisition, development and construction of real estate projects. The Bank has two direct subsidiaries: Bethesda Leasing, LLC and Eagle Insurance Services, LLC. Bethesda Leasing, LLC holds title to and operates real estate owned and acquired through foreclosure. Eagle Insurance Services, LLC facilitates the placement of commercial and retail insurance products through a referral arrangement with The Meltzer Group, an insurance brokerage within the Company's market area.
The Bank’s loan portfolio includes traditional business and real estate secured loans. The Bank's consumer loans portfolio is comprised of three loan types: home equity lines of credit that are structured with an interest only draw period followed either by a balloon maturity or a fully amortized repayment schedule; first lien residential mortgage loans, although the Bank's general practice is to sell conforming first trust loans on a servicing released basis to third party investors, and a portfolio of indirect automobile loans, which are fixed rate, have monthly principal and interest payments and general contractual terms up to 84 months, with expected lives of about 30 months. As of December 31, 2014, owner occupied commercial real estate and owner occupied commercial real estate construction represent 12% of the loan portfolio. At December 31, 2014, non-owner occupied commercial real estate and real estate construction represented approximately 58% of the loan portfolio. The, combined owner occupied and commercial real estate loans represent 70% of the loan portfolio.
The Bank is also a traditional commercial lender providing loans for a variety of purposes, including cash flow, equipment and account receivable financing. This loan category represents approximately 21% of the Bank's loan portfolio at December 31, 2014. SBA loans represent approximately 2% of commercial loans. Approximately 6% of the loan portfolio at December 31, 2014 consisted of home equity loans and lines of credit and other consumer loans, including indirect automobile loans. Approximately 3% of the total loan portfolio consists of residential home mortgage loans. These credits represent first liens on residential property loans originated by the Bank.
The Company's loan portfolio includes acquisition, development and construction (ADC) real estate loans including both investment and owner occupied projects. ADC loans amounted to $851.5 million at December 31, 2014. A portion of the ADC portfolio, both speculative and non-speculative, includes loan funded interest reserves at origination. ADC loans containing loan funded interest reserves represent approximately 31% of the outstanding ADC loan portfolio at December 31, 2014. As of December 31, 2011, the Company’s loans totaled $4, 312,399000.
The Bank and Company maintain portfolios of short term investments and investment securities consisting primarily of United States Government agency bonds and government sponsored enterprise mortgage backed securities, and municipal bonds. The Bank also owns equity investments related to membership in the Federal Reserve System and the Federal Home Loan Bank of Atlanta (FHLB). The Bank's securities portfolio also consists of equity investments in the form of common stocks of a few local banking companies. As of December 31, 2014, the investment portfolio amounted to $382.3 million.
Sources of Funds
The principal sources of funds for the Bank are core deposits, consisting of demand deposits, negotiable order of withdrawal (NOW) accounts, money market accounts and savings accounts. Additionally, the Bank obtains certificates of deposits from the local market areas surrounding the Bank's offices. The deposit base includes transaction accounts, time and savings accounts and accounts which customers use for cash management and which provide the Bank with a source of fee income and cross-marketing opportunities, as well as an attractive source of lower cost funds. At December 31, 2014, total deposits included $506.5 million of brokered deposits, which represented 12% of total deposits.
The Bank's deposit services include business and personal checking accounts, NOW accounts, tiered savings and money market account and time deposits with varying maturity structures and customer options. The Bank also participates in the Promontory Interfinancial Network, LLC Certificate of Deposit Account Registry Service and its Insured Cash Sweep program, both of which networks function to assure Federal Deposit Insurance Corporation (FDIC) insurance for participating Bank customers. In cooperation with Goldman Sachs Asset Management, the Bank offers a Goldman Sachs Investment Sweep Account, a check writing cash management account that sweeps funds to one of several non-FDIC insured off-balance sheet investment accounts managed by Goldman Sachs.
Eagle Bancorp Inc
7815 Woodmont Ave
BETHESDA MD 20814-3007