• Eagle Bancorp, Inc. Announces Results of Operations for First Quarter 2024

    Source: Nasdaq GlobeNewswire / 24 Apr 2024 15:05:01   America/Chicago

    BETHESDA, Md., April 24, 2024 (GLOBE NEWSWIRE) -- Eagle Bancorp, Inc. (the "Company") (NASDAQ: EGBN), the parent company of EagleBank (the "Bank"), today announced a net loss of $338 thousand for the first quarter 2024, compared to net income of $20.2 million for the fourth quarter 2023 (the "prior quarter"). Net loss was $(0.01) per share (diluted) for the first quarter 2024, compared to net income of $0.67 per share (diluted) for the prior quarter. Pre-provision net revenue ("PPNR")1, a non-GAAP financial measure, was $38.3 million for the first quarter 2024, compared to $38.8 million for the prior quarter.

    The $20.6 million decrease from earnings in the prior quarter was attributable to a $20.7 million increase in provision for credit losses, due primarily to an updated valuation for a commercial real estate ("CRE") office property collateralizing a lending relationship that was partially charged-off in the first quarter 2024. The provision for credit losses was $35.2 million for the first quarter 2024, comprising the impact of the updated valuation and an increase in the office allowance for credit losses ("ACL") coverage ratio.

    Susan G. Riel, President and Chief Executive Officer of the Company, commented, "Our results for the quarter showcased the strong fundamentals of our business, evidenced by the stability in our pre-provision net revenue, our growing reserve for credit losses, and our strong capital levels. The quarter showcased the progress we are making towards achieving our strategic objectives of enhancing the diversification of our deposits, growing the commercial lending team, and proactively managing our office portfolio."

    Ms. Riel continued, "I am pleased that we are being proactive in addressing our challenges while always maintaining a trusted brand and franchise in our community. I am excited about the prospects of EagleBank and its ability to serve our communities and customers for years to come."

    Eric R. Newell, Chief Financial Officer of the Company said, "Our operational performance remained stable over the last twelve months, and we are proud to have increased our deposits by over $1.0 billion and our loans by over $245.0 million over the last year. With these solid operating results, and our strong capital position evidenced by our common equity and tangible common equity1 ratios exceeding 10%, we are well positioned to continue executing on our strategic priorities."

    Ms. Riel added, "The EagleBank team continues to serve our customers and communities, showing tenacity and commitment through a challenging operating environment. I thank all of our employees for their hard work and dedication. Additionally, we remain committed to a Relationship First culture of respect, diversity and inclusion in both the workplace and the communities we serve."

    First Quarter 2024 Highlights

    • Net loss was $338 thousand for the first quarter 2024, compared to net income of $20.2 million in the prior quarter, with PPNR of $38.3 million for the first quarter 2024, compared to $38.8 million for the prior quarter.
    • The ACL as a percentage of total loans was 1.25% at quarter-end; up from 1.08% at the prior quarter-end. Performing office coverage2 was 3.67% at quarter-end; as compared to 1.91% at the prior quarter-end.
    • The net interest margin ("NIM") remained steady at 2.43% for the first quarter 2024, compared to 2.45% for the prior quarter.
    • The Company declared a quarterly dividend of $0.45 per share.
    • At quarter-end, the common equity ratio, tangible common equity ratio, and common equity tier 1 capital (to risk-weighted assets) ratio were 10.85%, 10.03%, and 13.80%, respectively.
    • Loans at quarter-end were $8.0 billion, up $14.0 million, or 0.2%, from the prior quarter-end.
    • Deposits at quarter-end were $8.5 billion, down $306.6 million, or 3.5%, from the prior quarter-end. The decrease was primarily attributable to anticipated seasonality in deposits from tax payments. Deposits have increased over $1.0 billion as compared to March 31, 2023.
    • Total estimated insured deposits at quarter-end were $6.2 billion, or 72.4% of deposits. Total on-balance sheet liquidity and available capacity was $2.9 billion at quarter-end.

    Income Statement

    • Net interest income was $74.7 million for the first quarter 2024, compared to $73.0 million for the prior quarter. The increase in net interest income was primarily driven by an increase in the average balances of deposits held with other banks and yields on the loan portfolio.
    • Provision for credit losses was $35.2 million for the first quarter 2024, compared to $14.5 million for the prior quarter. The increase in the provision was primarily driven by an updated valuation for a CRE office property collateralizing a lending relationship that was partially charged off in the first quarter 2024 due to an updated appraisal. In addition, there was an increase in the provision primarily attributable to the increase in the office ACL coverage ratio.
    • Noninterest income was $3.6 million for the first quarter 2024, compared to $2.9 million for the prior quarter. The primary driver for the increase was market value adjustments on our derivative book.
    • Noninterest expense was $40.0 million for the first quarter 2024, compared to $37.1 million for the prior quarter. The increase over the comparative quarters was primarily due to increased salaries and employee benefits expenses in connection with first quarter seasonality and related payroll tax increases in the first quarter 2024, along with higher Federal Deposit Insurance Corporation ("FDIC") fees.

    Loans and Funding

    • Total loans were $8.0 billion at March 31, 2024, up 0.2% from the prior quarter-end. The increase in total loans was driven by increased fundings of ongoing construction projects for commercial and residential properties, partially offset by a reduction in CRE loans from quarter-end to the prior quarter-end.

      At March 31, 2024, income-producing commercial real estate loans secured by office properties other than owner-occupied properties were 11.2% of the total loan portfolio at principal, down from 11.9% at the prior quarter-end.
    • Total deposits were $8.5 billion at March 31, 2024, down 3.5% from the prior quarter-end. The decrease was primarily attributable to seasonality in deposits from tax payments.
    • Borrowings were $1.7 billion at March 31, 2024, up 21.9% from the prior quarter-end due primarily to net fundings on the Company's secured borrowing lines.

    Asset Quality

    • Allowance for credit losses was 1.25% of total loans at March 31, 2024, compared to 1.08% at the prior quarter-end. Performing office coverage was 3.67% at quarter-end; as compared to 1.91% at the prior quarter-end.

      Net charge-offs were $21.4 million for the quarter.
    • Nonperforming assets were $92.3 million at March 31, 2024.
      • NPAs as a percentage of assets were 0.79% at March 31, 2024, compared to 0.57% at the prior quarter-end. At March 31, 2024, other real estate owned consisted of four properties with an aggregate carrying value of $773 thousand.
      • Loans 30-89 days past due were $31.1 million at March 31, 2024, up from $13.6 million at the prior quarter-end attributed to two relationships; one has since been brought current and the other as posing a limited risk of loss.

    Capital

    • Total shareholders' equity was $1.3 billion at March 31, 2024, down 1.2% from the prior quarter-end. The decrease in shareholders' equity of $14.9 million was primarily from reduced valuations of available-for-sale securities and a decline in retained earnings.
    • Book value per share was $41.72, down $0.86 from the prior quarter-end.
    • Tangible book value per share1 was $38.26, down $0.82 from the prior quarter-end.

    Additional financial information: The financial information that follows provides more detail on the Company's financial performance for the three months ended March 31, 2024 as compared to the three months ended December 31, 2023 and March 31, 2023, as well as eight quarters of trend data. Persons wishing additional information should refer to the Company's Annual Report on Form 10-K for the year ended December 31, 2023, and other reports filed with 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 twelve banking offices and four lending 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, and is committed to a culture of respect, diversity, equity and inclusion in both its workplace and the communities in which it operates.

    Conference call: Eagle Bancorp will host a conference call to discuss its first quarter 2024 financial results on Thursday, April 25, 2024 at 10:00 a.m. Eastern Time.

    The listen-only webcast can be accessed at:

    • https://edge.media-server.com/mmc/p/ubgqftw2/
    • For analysts who wish to participate in the conference call, please register at the following URL:

      https://register.vevent.com/register/BI92527acbd31b4c4fbe973b59797f475f
    • A replay of the conference call will be available on the Company's website through May 9, 2024: https://www.eaglebankcorp.com/

    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 Company's market (including volatility in interest rates and interest rate policy; the current high inflationary environment; competitive factors) and other conditions (such as the impact of bank failures or adverse developments at other banks and related negative press about the banking industry in general on investor and depositor sentiment regarding the stability and liquidity of banks), 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 Company's Annual Report on Form 10-K for the year ended December 31, 2023 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 Company's 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.

    Eagle Bancorp, Inc.
    Consolidated Statements of Operations (Unaudited)
    (Dollars in thousands, except per share data)
          
     Three Months Ended
     March 31, December 31, March 31,
      2024   2023   2023 
    Interest Income     
    Interest and fees on loans$137,994  $135,964  $120,850 
    Interest and dividends on investment securities 12,680   13,142   13,545 
    Interest on balances with other banks and short-term investments 24,862   18,230   5,774 
    Interest on federal funds sold 66   85   78 
    Total interest income 175,602   167,421   140,247 
    Interest Expense     
    Interest on deposits 79,383   78,239   48,954 
    Interest on customer repurchase agreements 315   272   302 
    Interest on borrowings 21,206   15,918   15,967 
    Total interest expense 100,904   94,429   65,223 
    Net Interest Income 74,698   72,992   75,024 
    Provision for Credit Losses 35,175   14,490   6,164 
    Provision for (Reversal of) Credit Losses for Unfunded Commitments 456   (594)  848 
    Net Interest Income After Provision For (Reversal of) Credit Losses 39,067   59,096   68,012 
          
    Noninterest Income     
    Service charges on deposits 1,699   1,688   1,510 
    Gain on sale of loans    23   305 
    Net gain (loss) on sale of investment securities 4   3   (21)
    Increase in cash surrender value of bank-owned life insurance 703   687   655 
    Other income 1,183   493   1,251 
    Total noninterest income 3,589   2,894   3,700 
    Noninterest Expense     
    Salaries and employee benefits 21,726   18,416   24,174 
    Premises and equipment expenses 3,059   2,967   3,317 
    Marketing and advertising 859   1,071   636 
    Data processing 3,293   3,436   3,099 
    Legal, accounting and professional fees 2,507   2,722   3,254 
    FDIC insurance 6,412   4,444   1,486 
    Other expenses 2,141   4,042   4,618 
    Total noninterest expense 39,997   37,098   40,584 
    Income Before Income Tax Expense 2,659   24,892   31,128 
    Income Tax Expense 2,997   4,667   6,894 
    Net (Loss) Income$(338) $20,225  $24,234 
          
    (Loss) Earnings Per Common Share     
    Basic$(0.01) $0.68  $0.78 
    Diluted$(0.01) $0.67  $0.78 
     


    Eagle Bancorp, Inc.
    Consolidated Balance Sheets (Unaudited)
    (Dollars in thousands, except per share data)
     March 31, December 31, March 31,
      2024   2023   2023 
    Assets     
    Cash and due from banks$10,076  $9,047  $9,940 
    Federal funds sold 11,343   3,740   3,746 
    Interest-bearing deposits with banks and other short-term investments 696,453   709,897   159,078 
    Investment securities available-for-sale at fair value (amortized cost of $1,613,659, $1,668,316, and $1,763,371, respectively, and allowance for credit losses of $17, $17 and $31, respectively) 1,445,034   1,506,388   1,582,185 
    Investment securities held-to-maturity at amortized cost, net of allowance for credit losses of $1,957, $1,956 and $2,008, respectively (fair value of $878,159, $901,582 and $965,786, respectively) 1,000,732   1,015,737   1,075,303 
    Federal Reserve and Federal Home Loan Bank stock 54,678   25,748   79,134 
    Loans held for sale       6,488 
    Loans 7,982,702   7,968,695   7,737,676 
    Less: allowance for credit losses (99,684)  (85,940)  (78,377)
    Loans, net 7,883,018   7,882,755   7,659,299 
    Premises and equipment, net 9,504   10,189   12,929 
    Operating lease right-of-use assets 17,679   19,129   23,060 
    Deferred income taxes 87,813   86,620   89,117 
    Bank-owned life insurance 113,624   112,921   111,217 
    Goodwill and intangible assets, net 104,611   104,925   104,226 
    Other real estate owned 773   1,108   1,962 
    Other assets 177,310   176,334   171,183 
    Total Assets$11,612,648  $11,664,538  $11,088,867 
    Liabilities and Shareholders' Equity     
    Liabilities     
    Deposits:     
    Noninterest-bearing demand$1,835,524  $2,279,081  $2,247,706 
    Interest-bearing transaction 1,207,566   997,448   907,637 
    Savings and money market 3,235,391   3,314,043   2,970,093 
    Time deposits 2,222,958   2,217,467   1,337,805 
    Total deposits 8,501,439   8,808,039   7,463,241 
    Customer repurchase agreements 37,059   30,587   37,854 
    Borrowings 1,669,948   1,369,918   2,183,626 
    Operating lease liabilities 21,611   23,238   27,634 
    Reserve for unfunded commitments 6,045   5,590   6,704 
    Other liabilities 117,133   152,883   127,850 
    Total Liabilities 10,353,235   10,390,255   9,846,909 
    Shareholders' Equity     
    Common stock, par value $0.01 per share; shares authorized 100,000,000, shares issued and outstanding 30,185,732, 29,925,612, and 31,111,647, respectively 297   296   308 
    Additional paid-in capital 377,334   374,888   397,012 
    Retained earnings 1,047,550   1,061,456   1,025,552 
    Accumulated other comprehensive loss (165,768)  (162,357)  (180,914)
    Total Shareholders' Equity 1,259,413   1,274,283   1,241,958 
    Total Liabilities and Shareholders' Equity$11,612,648  $11,664,538  $11,088,867 
     


    Loan Mix and Asset Quality
    (Dollars in thousands)
     
     March 31, December 31, March 31,
      2024   2023   2023 
     Amount% Amount% Amount%
    Loan Balances - Period End:        
    Commercial$1,408,76718% $1,473,76618% $1,482,98319%
    PPP loans 467%  528%  709%
    Income producing - commercial real estate 4,040,65550%  4,094,61451%  3,970,90351%
    Owner occupied - commercial real estate 1,185,58215%  1,172,23915%  1,095,69914%
    Real estate mortgage - residential 72,0871%  73,3961%  73,6771%
    Construction - commercial and residential 1,082,55613%  969,76612%  948,87713%
    Construction - C&I (owner occupied) 138,3792%  132,0212%  109,0131%
    Home equity 53,2511%  51,9641%  53,8291%
    Other consumer 958%  401%  1,986%
    Total loans$7,982,702100% $7,968,695100% $7,737,676100%
     


     Three Months Ended or As Of
     March 31, December 31, March 31,
      2024  2023  2023
    Asset Quality:     
    Net charge-offs$21,430 $11,936 $975
    Nonperforming loans$91,491 $65,524 $6,757
    Other real estate owned$773 $1,108 $1,962
    Nonperforming assets$92,264 $66,632 $8,719
    Special mention$265,348 $207,059 $76,032
    Substandard$361,776 $335,815 $87,950
     


    Eagle Bancorp, Inc.
    Consolidated Average Balances, Interest Yields And Rates vs. Prior Quarter (Unaudited)
    (Dollars in thousands)
                
     Three Months Ended
     March 31, 2024 December 31, 2023
     Average Balance Interest Average
    Yield/Rate
     Average Balance Interest Average
    Yield/Rate
    ASSETS           
    Interest earning assets:           
    Interest-bearing deposits with other banks and other short-term investments$1,841,771  $24,862 5.43% $1,340,972  $18,230 5.39%
    Loans (1) (2) 7,988,941   137,994 6.95%  7,963,074   135,964 6.77%
    Investment securities available-for-sale (2) 1,516,503   7,247 1.92%  1,498,132   7,611 2.02%
    Investment securities held-to-maturity (2) 1,011,231   5,433 2.16%  1,027,230   5,531 2.14%
    Federal funds sold 7,051   66 3.76%  8,314   85 4.06%
    Total interest earning assets 12,365,497  $175,602 5.71%  11,837,722  $167,421 5.61%
    Total noninterest earning assets 508,987       530,364     
    Less: allowance for credit losses (90,014)      (84,783)    
    Total noninterest earning assets 418,973       445,581     
    TOTAL ASSETS$12,784,470      $12,283,303     
                
    LIABILITIES AND SHAREHOLDERS' EQUITY          
    Interest bearing liabilities:           
    Interest-bearing transaction$1,833,493  $16,830 3.69% $1,843,617  $16,607 3.57%
    Savings and money market 3,423,388   35,930 4.22%  3,297,581   35,384 4.26%
    Time deposits 2,187,320   26,623 4.90%  2,164,038   26,248 4.81%
    Total interest bearing deposits 7,444,201   79,383 4.29%  7,305,236   78,239 4.25%
    Customer repurchase agreements 36,084   315 3.51%  31,290   272 3.45%
    Borrowings 1,796,863   21,206 4.75%  1,370,627   15,918 4.61%
    Total interest bearing liabilities 9,277,148  $100,904 4.37%  8,707,153  $94,429 4.30%
    Noninterest bearing liabilities:           
    Noninterest bearing demand 2,057,460       2,166,133     
    Other liabilities 160,206       171,254     
    Total noninterest bearing liabilities 2,217,666       2,337,387     
    Shareholders' equity 1,289,656       1,238,763     
    TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY$12,784,470      $12,283,303     
    Net interest income  $74,698     $72,992  
    Net interest spread    1.34%     1.31%
    Net interest margin    2.43%     2.45%
    Cost of funds    3.58%     3.45%

    (1) Loans placed on nonaccrual status are included in average balances. Net loan fees and late charges included in interest income on loans totaled $5.1 million and $4.7 million for the three months ended March 31, 2024 and December 31, 2023, respectively.
    (2) Interest and fees on loans and investments exclude tax equivalent adjustments.

    Eagle Bancorp, Inc.
    Consolidated Average Balances, Interest Yields And Rates vs. Year Ago Quarter (Unaudited)
    (Dollars in thousands)
                
     Three Months Ended March 31,
      2024   2023 
     Average Balance Interest Average
    Yield/Rate
     Average Balance Interest Average
    Yield/Rate
    ASSETS           
    Interest earning assets:           
    Interest bearing deposits with other banks and other short-term investments$1,841,771  $24,862 5.43% $526,506  $5,774 4.45%
    Loans held for sale (1)     %  4,093   60 5.95%
    Loans (1) (2) 7,988,941   137,994 6.95%  7,712,023   120,790 6.35%
    Investment securities available-for-sale (2) 1,516,503   7,247 1.92%  1,660,258   7,811 1.91%
    Investment securities held-to-maturity (2) 1,011,231   5,433 2.16%  1,087,047   5,734 2.14%
    Federal funds sold 7,051   66 3.76%  14,890   78 2.12%
    Total interest earning assets 12,365,497  $175,602 5.71%  11,004,817  $140,247 5.17%
    Total noninterest earning assets 508,987       495,889     
    Less: allowance for credit losses (90,014)      (74,650)    
    Total noninterest earning assets 418,973       421,239     
    TOTAL ASSETS$12,784,470      $11,426,056     
                
    LIABILITIES AND SHAREHOLDERS' EQUITY          
    Interest bearing liabilities:           
    Interest bearing transaction$1,833,493  $16,830 3.69% $1,065,421  $6,107 2.32%
    Savings and money market 3,423,388   35,930 4.22%  3,326,807   33,274 4.06%
    Time deposits 2,187,320   26,623 4.90%  1,078,227   9,573 3.60%
    Total interest bearing deposits 7,444,201   79,383 4.29%  5,470,455   48,954 3.63%
    Customer repurchase agreements 36,084   315 3.51%  38,257   302 3.20%
    Borrowings 1,796,863   21,206 4.75%  1,321,206   15,967 4.90%
    Total interest bearing liabilities 9,277,148  $100,904 4.37%  6,829,918  $65,223 3.87%
    Noninterest bearing liabilities:           
    Noninterest bearing demand 2,057,460       3,263,670     
    Other liabilities 160,206       91,490     
    Total noninterest bearing liabilities 2,217,666       3,355,160     
    Shareholders' equity 1,289,656       1,240,978     
    TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY$12,784,470      $11,426,056     
    Net interest income  $74,698     $75,024  
    Net interest spread    1.34%     1.30%
    Net interest margin    2.43%     2.77%
    Cost of funds(3)    3.58%     2.62%

    (1) Loans placed on nonaccrual status are included in average balances. Net loan fees and late charges included in interest income on loans totaled $5.1 million and $3.7 million for the three months ended March 31, 2024 and 2023, respectively.
    (2) Interest and fees on loans and investments exclude tax equivalent adjustments.
    (3) Beginning in the second quarter of 2023, the Company revised its cost of funds methodology to use a daily average calculation where interest expense on interest bearing liabilities is divided by average interest bearing liabilities and average noninterest bearing deposits. Previously, the Company calculated the cost of funds as the difference between yield on earning assets and net interest margin. Prior period has been conformed to the current presentation.

     

    Eagle Bancorp, Inc.
    Statements of Operations 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 Statements: 2024   2023   2023   2023   2023   2022   2022   2022 
    Total interest income$175,602  $167,421  $161,149  $156,510  $140,247  $129,130  $111,527  $95,635 
    Total interest expense 100,904   94,429   90,430   84,699   65,223   43,530   27,630   12,717 
    Net interest income 74,698   72,992   70,719   71,811   75,024   85,600   83,897   82,918 
    Provision for (reversal of) credit losses 35,175   14,490   5,644   5,238   6,164   (464)  3,022   495 
    Provision for (reversal of) credit losses for unfunded commitments 456   (594)  (839)  318   848   161   774   553 
    Net interest income after provision for (reversal of) credit losses 39,067   59,096   65,914   66,255   68,012   85,903   80,101   81,870 
    Noninterest income before investment gain (loss) 3,585   2,891   6,342   8,593   3,721   5,326   5,304   5,715 
    Net gain (loss) on sale of investment securities 4   3   5   2   (21)  3   4   (151)
    Total noninterest income 3,589   2,894   6,347   8,595   3,700   5,329   5,308   5,564 
    Salaries and employee benefits 21,726   18,416   21,549   21,957   24,174   23,691   21,538   21,805 
    Premises and equipment expenses 3,059   2,967   3,095   3,227   3,317   3,292   3,275   3,523 
    Marketing and advertising 859   1,071   768   884   636   1,290   1,181   1,186 
    Other expenses 14,353   14,644   12,221   11,910   12,457   10,645   10,212   32,448 
    Total noninterest expense 39,997   37,098   37,633   37,978   40,584   38,918   36,206   58,962 
    Income before income tax expense 2,659   24,892   34,628   36,872   31,128   52,314   49,203   28,472 
    Income tax expense 2,997   4,667   7,245   8,180   6,894   10,121   11,906   12,776 
    Net (loss) income$(338) $20,225  $27,383  $28,692  $24,234  $42,193  $37,297  $15,696 
    Per Share Data:               
    (Loss) earnings per weighted average common share, basic$(0.01) $0.68  $0.91  $0.94  $0.78  $1.32  $1.16  $0.49 
    (Loss) earnings per weighted average common share, diluted$(0.01) $0.67  $0.91  $0.94  $0.78  $1.32  $1.16  $0.49 
    Weighted average common shares outstanding, basic 30,068,173   29,925,557   29,910,218   30,454,766   31,109,267   31,819,631   32,084,464   32,080,657 
    Weighted average common shares outstanding, diluted 30,068,173   29,966,962   29,944,692   30,505,468   31,180,346   31,898,619   32,155,678   32,142,427 
    Actual shares outstanding at period end 30,185,732   29,925,612   29,917,982   29,912,082   31,111,647   31,346,903   32,082,321   32,081,241 
    Book value per common share at period end$41.72  $42.58  $40.64  $40.78  $39.92  $39.18  $38.02  $39.05 
    Tangible book value per common share at period end (1)$38.26  $39.08  $37.12  $37.29  $36.57  $35.86  $34.77  $35.80 
    Dividend per common share$0.45  $0.45  $0.45  $0.45  $0.45  $0.45  $0.45  $0.45 
    Performance Ratios (annualized):               
    Return on average assets(0.01)%  0.65%  0.91%  0.96%  0.86%  1.49%  1.29%  0.54%
    Return on average common equity(0.11)%  6.48%  8.80%  9.24%  7.92%  13.57%  11.64%  4.91%
    Return on average tangible common equity (1)(0.11)%  7.08%  9.61%  10.08%  8.65%  14.82%  12.67%  5.35%
    Net interest margin 2.43%  2.45%  2.43%  2.49%  2.77%  3.14%  3.02%  2.94%
    Efficiency ratio (2) 51.1%  48.9%  48.8%  47.2%  51.6%  42.8%  40.6%  66.6%
    Other Ratios:               
    Allowance for credit losses to total loans (3) 1.25%  1.08%  1.05%  1.00%  1.01%  0.97%  1.04%  1.02%
    Allowance for credit losses to total nonperforming loans 109%  131%  119%  268%  1,160%  1,151%  997%  386%
    Nonperforming assets to total assets 0.79%  0.57%  0.64%  0.28%  0.08%  0.08%  0.09%  0.19%
    Net charge-offs (recoveries) (annualized) to average total loans (3) 1.07%  0.60%  0.02%  0.29%  0.05%  0.05%  % (0.04)%
    Tier 1 capital (to average assets) 10.26%  10.73%  10.96%  10.84%  11.42%  11.63%  11.55%  10.68%
    Total capital (to risk weighted assets) 14.87%  14.79%  14.54%  14.51%  14.74%  14.94%  15.60%  15.14%
    Common equity tier 1 capital (to risk weighted assets) 13.80%  13.90%  13.68%  13.55%  13.75%  14.03%  14.64%  14.06%
    Tangible common equity ratio (1) 10.03%  10.12%  10.04%  10.21%  10.36%  10.18%  10.52%  10.60%
    Average Balances (in thousands):               
    Total assets$12,784,470  $12,283,303  $11,942,905  $11,960,111  $11,426,056  $11,255,956  $11,431,110  $11,701,679 
    Total earning assets$12,365,497  $11,837,722  $11,532,186  $11,546,050  $11,004,817  $10,829,703  $11,030,670  $11,300,267 
    Total loans (3)$7,988,941  $7,963,074  $7,795,144  $7,790,555  $7,712,023  $7,379,198  $7,282,589  $7,104,727 
    Total deposits$9,501,661  $9,471,369  $8,946,641  $8,514,938  $8,734,125  $9,524,139  $9,907,497  $10,184,886 
    Total borrowings$1,832,947  $1,401,917  $1,646,179  $2,102,507  $1,359,463  $411,060  $158,001  $152,583 
    Total shareholders' equity$1,289,656  $1,238,763  $1,235,162  $1,245,647  $1,240,978  $1,233,705  $1,271,753  $1,281,742 

    (1) A reconciliation of non-GAAP financial measures to the nearest GAAP measure is provided in the tables that accompany this document.
    (2) Computed by dividing noninterest expense by the sum of net interest income and noninterest income.
    (3) Excludes loans held for sale.

    GAAP Reconciliation to Non-GAAP Financial Measures (unaudited)
    (dollars in thousands, except per share data)
          
     March 31, December 31, March 31,
      2024   2023   2023 
    Tangible common equity     
    Common shareholders' equity$1,259,413  $1,274,283  $1,241,958 
    Less: Intangible assets (104,611)  (104,925)  (104,226)
    Tangible common equity$1,154,802  $1,169,358  $1,137,732 
          
    Tangible common equity ratio     
    Total assets$11,612,648  $11,664,538  $11,088,867 
    Less: Intangible assets (104,611)  (104,925)  (104,226)
    Tangible assets$11,508,037  $11,559,613  $10,984,641 
          
    Tangible common equity ratio 10.03%  10.12%  10.36%
          
    Per share calculations     
    Book value per common share$41.72  $42.58  $39.92 
    Less: Intangible book value per common share (3.46)  (3.50)  (3.35)
    Tangible book value per common share$38.26  $39.08  $36.57 
          
    Shares outstanding at period end 30,185,732   29,925,612   31,111,647 
     


     Three Months Ended
     March 31, December 31, March 31,
      2024   2023   2023 
    Average tangible common equity     
    Average common shareholders' equity$1,289,656  $1,238,763  $1,240,978 
    Less: Average intangible assets (104,718)  (105,032)  (104,231)
    Average tangible common equity$1,184,938  $1,133,731  $1,136,747 
          
    Return on average tangible common equity     
    Net (loss) income$(338) $20,225  $24,234 
    Return on average tangible common equity(0.11)%  7.08%  8.65%
          
    Efficiency ratio     
    Net interest income$74,698  $72,992  $75,024 
    Noninterest income 3,589   2,894   3,700 
    Operating revenue$78,287  $75,886  $78,724 
    Noninterest expense$39,997  $37,098  $40,584 
    Efficiency ratio 51.09%  48.89%  51.55%
          
    Pre-provision net revenue     
    Net interest income$74,698  $72,992  $75,024 
    Noninterest income 3,589   2,894   3,700 
    Less: Noninterest expense (39,997)  (37,098)  (40,584)
    Pre-provision net revenue$38,290  $38,788  $38,140 
     

    Tangible common equity, tangible common equity to tangible assets (the "tangible common equity ratio"), tangible book value per common share, average tangible common equity, 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, or tangible common 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 efficiency ratio is a non-GAAP measure calculated by dividing GAAP noninterest expense by the sum of GAAP net interest income and GAAP noninterest income. The efficiency ratio measures a bank's overhead as a percentage of its revenue. The Company believes that reporting the non-GAAP efficiency ratio more closely measures its effectiveness of controlling operational activities.

    Pre-provision net revenue is a non-GAAP financial measure calculated by subtracting noninterest expenses from the sum of net interest income and noninterest income. The Company considers this information important to shareholders because it illustrates revenue excluding the impact of provisions and reversals to the allowance for credit losses on loans.


    1 A reconciliation of non-GAAP financial measures and the nearest GAAP measures is provided in the GAAP Reconciliation to Non-GAAP Financial Measures that accompany this document.
    2 Calculated as the ACL attributable to loans collateralized by performing office properties as a percentage of total loans.

    EAGLE BANCORP, INC.
    CONTACT:
    Eric R. Newell
    240.497.1796

    For the March 31, 2024 Earnings Presentation, please click here.


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