Sweet Sixteen. This summer marks the 16th anniversary of EagleBank opening its doors. From that humble beginning we have become the largest community bank headquartered in metro Washington. And our announced merger with Virginia Heritage Bank (more below) will only further strengthen our position and expand our footprint. But one thing will never change. EagleBank will still be the flexible, customer-oriented bank you have come to know and experience. Always listening. Always putting relationships first.
Earnings. EagleBank released its earnings for the second quarter of 2014. We reported net income of $12.9 million, which works out to operating earnings of $0.50 per share of common stock. Significantly, the results represent the 22nd quarter in a row of record earnings. Mark Bisnow, in a daily Morning Brief, asked “Can you imagine a football team scoring more points than the quarter before for 22 quarters in a row?” By the way, if you are not a subscriber yet, sign up for EagleBank Presents the Bisnow Morning Brief and www.bisnow.com/eagle-bank.
EGBN Debt Offering. EagleBank went into the debt market to raise $55 million to add to its capital. We got subscriptions for three times what we were seeking, and cut off the effort a day and a half early. End result: $70 million of paper issued at a favorable 5.75% fixed for ten years. And considering a bank can lend multiples of its capital, this offering means we have that much more money available for developers and businesses.
Virginia Heritage Bank Merger. It’s been two months since we announced our intended merger with Virginia Heritage Bank. I must say I am more excited than ever. The more we meet, the more apparent it is that our cultures and philosophies toward customers are very similar. We continue to pursue regulatory approvals and look for a closing in the fourth quarter.
Caught! It seems like I’m always moving around town. Some say I’m a hard man to keep in one place. But that’s exactly what happened in my office when EagleBank depositor Sebastian Fainberg, grandson of EagleBank director (and Rockville real estate attorney) Benson Klein stopped by. Here’s “Officer” Sebastian locking me up … on the same day EagleBank was locking up the $70 million of bonds in the corporate debt market.
Summer is breezing by. Billy Joel and the tennis tour have come through town. The Nats and O’s are in first place. T he beaches are full. Hope you’re enjoying the season, and time with family.