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EGBN Eagle Bancorp Inc

26.71
0.00 (0.00%)
Pre Market
Last Updated: 11:49:24
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Share Name Share Symbol Market Type
Eagle Bancorp Inc NASDAQ:EGBN NASDAQ Common Stock
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  0.00 0.00% 26.71 19.97 28.97 6 11:49:24

Update: Eagle Bancorp, Inc. Announces Third Quarter 2024 Results

23/10/2024 9:45pm

GlobeNewswire Inc.


Eagle Bancorp (NASDAQ:EGBN)
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Eagle Bancorp, Inc. ("Eagle", the "Company") (NASDAQ: EGBN), the Bethesda-based holding company for EagleBank, one of the largest community banks in the Washington D.C. area, reported its unaudited results for the third quarter ended September 30, 2024.

Eagle reported net income of $21.8 million or $0.72 per share for the third quarter 2024, compared to a net loss of $83.8 million during the second quarter in which the Company recorded a $104.2 million impairment in the value of goodwill. Operating net income1 in the second quarter, adjusted to exclude the impairment charge on goodwill, was $20.4 million or $0.67 per share per diluted share. Pre-provision net revenue ("PPNR")1 in the third quarter was $35.2 million compared to a pre-provision net loss of $69.8 million for the prior quarter, or $34.4 million of PPNR when adjusted to exclude the impairment charge on goodwill1.

The $1.4 million increase in operating net income1 over the prior quarter is attributed to a positive variance of $2.2 million related to the change in provision for unfunded commitments; $1.6 million increase in non-interest income; and a $490 thousand increase in net interest income, offset by a $1.3 million increase in operating non-interest expense, adjusted to exclude the impairment charge on goodwill, and a $1.1 million increase in provision for credit losses.

"We continue to strategically position the Company for future growth as evidenced by actions taken during the quarter with the refinancing of our maturing subordinated debt and the recalibration of our common dividend strategy," said Susan G. Riel, President and Chief Executive Officer of the Company. "We announced the addition of Evelyn Lee to our senior leadership as our Chief Lending Officer for our commercial lending team. As a 25 year banker in the Washington D.C. market, I am excited about accomplishing our strategic goal of continuing to build out our commercial banker group and pursuing diversification of the loan portfolio and growing our relationship deposits," added Ms. Riel.

Eric R. Newell, Chief Financial Officer of the Company said, "Raising senior debt in the third quarter demonstrates the confidence debt investors have in our vision and the future of the Company. Operating performance was stable from last quarter evidenced by operating net income1 increasing $1.4 million to $21.8 million in the third quarter. We continued to build our reserve for credit losses, with coverage as a percentage of total held for investment loans at 1.40% increasing 7 basis points from last quarter. Common equity tier one capital increased to 14.5% and our tangible common equity1 ratio exceeds 10%."

Ms. Riel added, "I thank all of our employees for their hard work and their commitment to a culture of respect, diversity and inclusion in both the workplace and the communities we serve."

Third Quarter 2024 Highlights

  • The Company repaid $70 million of maturing subordinated debt and issued $77.7 million of 10% unsecured senior debt maturing September 30, 2029.
  • During the quarter, the Company announced a recalibration of the common stock dividend to $0.165 per share from $0.45 per share in the second quarter an action estimated to retain an additional $32 million of capital annually to meet growth and investment objectives.
  • The ACL as a percentage of total loans held for investment was 1.40% at quarter-end; up from 1.33% at the prior quarter-end. Performing office coverage2 was 4.55% at quarter-end; as compared to 4.05% at the prior quarter-end.
  • Nonperforming assets increased $38.2 million to $137.1 million as of September 30, 2024 and were 1.22% of total assets compared to 0.88% as of June 30, 2024. Inflows to non-performing loans in the quarter totaled $45.5 million offset by $9 million of outflows, of which $5 million was the loan held for sale at June 30, 2024 and an increase of other real estate owned of $2.0 million. The inflows were predominantly associated with $27.3 million in mixed use land loans and $17.9 million in an assisted living facility loan.
  • Substandard loans declined $17.0 million to $391.3 million and special mention loans increased $57.1 million to $365.0 million at September 30, 2024.
  • Net charge-offs for the third quarter were 0.26% compared to 0.11% for the second quarter 2024. Of the total $5.3 million of net charge offs in the quarter, $3.8 million is associated with a senior living property that has not stabilized.
  • The net interest margin ("NIM") decreased slightly to 2.37% for the third quarter 2024, compared to 2.40% for the prior quarter, primarily due to continued decline in average non-interest bearing deposits. Net interest income increased $490 thousand from the second quarter to $71.8 million in the third quarter.
  • At quarter-end, the common equity ratio, tangible common equity ratio1, and common equity tier 1 capital (to risk-weighted assets) ratio were 10.86%, 10.86%, and 14.54%, respectively.
  • Total estimated insured deposits at quarter-end were $6.4 billion, or 74.5% of deposits, stable from the second quarter total of 72.5% of deposits.
  • Total on-balance sheet liquidity and available capacity was $4.6 billion at quarter-end compared to $4.0 billion at June 30, 2024.

Income Statement

  • Net interest income was $71.8 million for the third quarter 2024, compared to $71.4 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 average loans partially offset by higher average interest-bearing deposits and higher rates paid on those deposits in the third quarter from the prior quarter.
  • Provision for credit losses was $10.1 million for the third quarter 2024, compared to $9.0 million for the prior quarter. The increase in the provision quarter over quarter reflects higher net charge-offs in the third quarter from the prior quarter. Reserve for unfunded commitments was a reversal of $1.6 million due to lower unfunded commitments in our construction portfolio. This compared to a reserve for unfunded commitments in the prior quarter of $0.6 million.
  • Noninterest income was $6.95 million for the third quarter 2024, compared to $5.33 million for the prior quarter. The primary driver for the increase was higher swap fee income.
  • Noninterest expense was $43.6 million for the third quarter 2024, compared to $146.5 million for the prior quarter. The decrease over the comparative quarters was primarily due to a goodwill impairment charge of $104.2 million in the second quarter 2024. When excluding the goodwill impairment charge, the increase quarter over quarter was associated with increased FDIC insurance expense.

Loans and Funding

  • Total loans were $8.0 billion at September 30, 2024, down 0.4% from the prior quarter-end. The decrease in total loans was driven by a reduction in commercial loans and income producing commercial real estate loans from the prior quarter-end, partially offset by increased fundings of ongoing construction projects for commercial and residential properties.At September 30, 2024, income-producing commercial real estate loans secured by office properties other than owner-occupied properties were 10.8% of the total loan portfolio, down from 11.3% at the prior quarter-end.
  • Total deposits at quarter-end were $8.5 billion, up $273.5 million, or 3.3%, from the prior quarter-end. The increase was primarily attributable to an increase in time deposits from the company's digital acquisition channel. Period end deposits have increased $165 million when compared to prior year comparable period end of September 30, 2023.
  • Other short-term borrowings were $1.2 billion at September 30, 2024, down 25.3% from the prior quarter-end as maturing FHLB borrowings were paid down with increased cash from deposits.

Asset Quality

  • Allowance for credit losses was 1.40% of total loans held for investment at September 30, 2024, compared to 1.33% at the prior quarter-end. Performing office coverage was 4.55% at quarter-end; as compared to 4.05% at the prior quarter-end.
  • Net charge-offs were $5.3 million for the quarter compared to $2.3 million in the second quarter of 2024.
  • Nonperforming assets were $137.1 million at September 30, 2024.
    • NPAs as a percentage of assets were 1.22% at September 30, 2024, compared to 0.88% at the prior quarter-end. At September 30, 2024, other real estate owned consisted of four properties with an aggregate carrying value of $2.7 million. The increase in NPAs was predominantly associated with $27.3 million in mixed use land loans and $17.9 million in an assisted living facility loan.
    • Loans 30-89 days past due were $56.3 million at September 30, 2024, compared to $8.4 million at the prior quarter-end. Of the total increase, $25 million was brought current subsequent to quarter-end.

Capital

  • Total shareholders' equity was $1.2 billion at September 30, 2024, up 4.8% from the prior quarter-end. The increase in shareholders' equity of $56.0 million was primarily due to increased valuations of available-for-sale securities and an increase in retained earnings.
  • Book value per share and Tangible book value per share3 was $40.61, up $1.86 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 September 30, 2024 as compared to the three months ended June 30, 2024 and September 30, 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 third quarter 2024 financial results on Thursday, October 24, 2024 at 10:00 a.m. Eastern Time.

The listen-only webcast can be accessed at:

  • https://edge.media-server.com/mmc/p/79xpxyi2
  • For analysts who wish to participate in the conference call, please register at the following URL:https://register.vevent.com/register/BI6cdce3c45a9f49219ea94a6f7c9fa083
  • A replay of the conference call will be available on the Company's website through November 7, 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 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
 September 30, June 30, September 30,
  2024   2024   2023 
Interest Income     
Interest and fees on loans$139,836  $137,616  $132,273 
Interest and dividends on investment securities 12,578   12,405   13,732 
Interest on balances with other banks and short-term investments 21,296   19,568   15,067 
Interest on federal funds sold 103   142   77 
Total interest income 173,813   169,731   161,149 
Interest Expense     
Interest on deposits 81,190   76,846   70,929 
Interest on customer repurchase agreements 332   330   311 
Interest on other short-term borrowings 20,448   21,202   18,152 
Interest on long-term borrowings$      1,038 
Total interest expense 101,970   98,378   90,430 
Net Interest Income 71,843   71,353   70,719 
Provision for Credit Losses 10,094   8,959   5,644 
Provision (Reversal) for Credit Losses for Unfunded Commitments (1,593)  608   (839)
Net Interest Income After Provision for Credit Losses 63,342   61,786   65,914 
      
Noninterest Income     
Service charges on deposits 1,747   1,653   1,631 
Gain on sale of loans 20   37   (5)
Net gain on sale of investment securities 3   3   5 
Increase in cash surrender value of bank-owned life insurance 731   709   669 
Other income 4,450   2,930   4,047 
Total noninterest income 6,951   5,332   6,347 
Noninterest Expense     
Salaries and employee benefits 21,675   21,770   21,549 
Premises and equipment expenses 2,794   2,894   3,095 
Marketing and advertising 1,588   1,662   768 
Data processing 3,435   3,495   3,194 
Legal, accounting and professional fees 3,433   2,705   2,162 
FDIC insurance 7,399   5,917   3,342 
Goodwill impairment    104,168    
Other expenses 3,290   3,880   3,523 
Total noninterest expense 43,614   146,491   37,633 
(Loss) Income Before Income Tax Expense 26,679   (79,373)  34,628 
Income Tax Expense 4,864   4,429   7,245 
Net (Loss) Income$21,815  $(83,802) $27,383 
      
(Loss) Earnings Per Common Share     
Basic$0.72  $(2.78) $0.91 
Diluted$0.72  $(2.78) $0.91 
            

        

Eagle Bancorp, Inc.
Consolidated Balance Sheets (Unaudited)
(Dollars in thousands, except per share data)
 September 30, June 30, September 30,
  2024   2024   2023 
Assets     
Cash and due from banks$16,383  $10,803  $8,625 
Federal funds sold 9,610   5,802   13,611 
Interest-bearing deposits with banks and other short-term investments 584,491   526,228   235,819 
Investment securities available-for-sale at fair value (amortized cost of $1,550,038, $1,613,659, and $1,732,722, respectively, and allowance for credit losses of $17, $17 and $17, respectively) 1,433,006   1,584,435   1,474,945 
Investment securities held-to-maturity at amortized cost, net of allowance for credit losses of $1,237, $2,012 and $2,010, respectively (fair value of $868,425, $856,275 and $923,313, respectively) 961,925   982,955   1,032,485 
Federal Reserve and Federal Home Loan Bank stock 37,728   54,274   25,689 
Loans held for sale    5,000    
Loans 7,970,269   8,001,739   7,916,391 
Less: allowance for credit losses (111,867)  (106,301)  (83,332)
Loans, net 7,858,402   7,895,438   7,833,059 
Premises and equipment, net 8,291   8,788   11,216 
Operating lease right-of-use assets 15,167   16,250   20,151 
Deferred income taxes 74,381   86,236   98,987 
Bank-owned life insurance 115,064   114,333   112,234 
Goodwill and intangible assets, net 21   129   105,239 
Other real estate owned 2,743   773   1,487 
Other assets 167,840   174,396   190,667 
Total Assets$11,285,052  $11,465,840  $11,164,214 
Liabilities and Shareholders' Equity     
Liabilities     
Deposits:     
Noninterest-bearing demand$1,609,823  $1,693,955  $2,072,665 
Interest-bearing transaction 903,300   1,123,980   932,779 
Savings and money market 3,316,819   3,165,314   3,129,773 
Time deposits 2,710,908   2,284,099   2,241,089 
Total deposits 8,540,850   8,267,348   8,376,306 
Customer repurchase agreements 32,040   39,220   25,689 
Other short-term borrowings 1,240,000   1,659,979   1,300,001 
Long-term borrowings 75,812      69,887 
Operating lease liabilities 18,755   20,016   24,422 
Reserve for unfunded commitments 5,060   6,653   6,183 
Other liabilities 147,111   139,348   145,842 
Total Liabilities 10,059,628   10,132,564   9,948,330 
Shareholders' Equity     
Common stock, par value $0.01 per share; shares authorized 100,000,000, shares issued and outstanding 30,173,200 30,180,482, and 30,185,732, respectively 298   297   296 
Additional paid-in capital 382,284   380,142   372,394 
Retained earnings 967,019   949,863   1,054,699 
Accumulated other comprehensive loss (124,177)  (160,843)  (211,505)
Total Shareholders' Equity 1,225,424   1,169,459   1,215,884 
Total Liabilities and Shareholders' Equity$11,285,052  $11,302,023  $11,164,214 
            

 

Loan Mix and Asset Quality(Dollars in thousands)
 
 September 30, June 30, September 30,
  2024   2024   2023 
 Amount% Amount% Amount%
Loan Balances - Period End:        
Commercial$1,154,349  14% $1,238,261  15% $1,418,760  18%
PPP loans 348  %  407  %  588  %
Income producing - commercial real estate 4,155,120  52%  4,217,525  53%  4,147,301  52%
Owner occupied - commercial real estate 1,276,240  16%  1,263,714  16%  1,182,959  15%
Real estate mortgage - residential 57,223  1%  61,338  1%  76,511  1%
Construction - commercial and residential 1,174,591  15%  1,063,764  13%  904,282  11%
Construction - C&I (owner occupied) 100,662  1%  99,526  1%  129,616  2%
Home equity 51,567  1%  52,773  1%  53,917  1%
Other consumer 169  %  4,431  %  2,457  %
Total loans$7,970,269  100% $8,001,739  100% $7,916,391  100%
                     

 

 Three Months Ended or As Of
 September 30, June 30, September 30,
  2024   2024   2023 
Asset Quality:     
Net charge-offs$5,303  $2,285  $340 
Nonperforming loans$134,371  $98,169  $70,148 
Other real estate owned$2,743  $773  $1,757 
Nonperforming assets$137,114  $98,942  $71,905 
Special mention$364,983  $307,906  $158,182 
Substandard$391,301  $408,311  $219,001 
            

 

Eagle Bancorp, Inc.
Consolidated Average Balances, Interest Yields And Rates vs. Prior Quarter (Unaudited)
(Dollars in thousands)
            
 Three Months Ended
 September 30, 2024 June 30, 2024
 Average Balance Interest AverageYield/Rate Average Balance Interest AverageYield/Rate
ASSETS           
Interest earning assets:           
Interest-bearing deposits with other banks and other short-term investments$1,577,464  $21,296   5.37% $1,455,007  $19,568   5.41%
Loans held for sale (1) 4,936   1   0.08%  8,045   100   5.00%
Loans (1) (2)$8,026,524   139,835   6.93%  8,003,206   137,516   6.91%
Investment securities available-for-sale (2) 1,479,598   7,336   1.97%  1,478,856   7,048   1.92%
Investment securities held-to-maturity (2) 974,366   5,242   2.14%  995,274   5,357   2.16%
Federal funds sold 10,003   103   4.10%  13,058   142   4.37%
Total interest earning assets 12,072,891  $173,813   5.73%  11,953,446  $169,731   5.71%
Total noninterest earning assets 397,006       510,725     
Less: allowance for credit losses (108,998)      (102,671)    
Total noninterest earning assets 288,008       408,054     
TOTAL ASSETS$12,360,899      $12,361,500     
            
LIABILITIES AND SHAREHOLDERS' EQUITY          
Interest bearing liabilities:           
Interest-bearing transaction$1,656,676  $14,596   3.51% $1,636,795  $16,100   3.96%
Savings and money market 3,254,128   34,896   4.27%  3,321,001   33,451   4.05%
Time deposits 2,517,944   31,698   5.01%  2,215,693   27,295   4.95%
Total interest bearing deposits 7,428,748   81,190   4.35%  7,173,489   76,846   4.31%
Customer repurchase agreements 38,045   332   3.47%  38,599   330   3.44%
Other short-term borrowings 1,615,867   20,448   5.03%  1,682,684   21,202   5.07%
Long-term borrowings 824      %        %
Total interest bearing liabilities 9,083,484  $101,970   4.47%  8,894,772  $98,378   4.45%
Noninterest bearing liabilities:           
Noninterest bearing demand 1,915,666       2,051,777     
Other liabilities 160,272       151,324     
Total noninterest bearing liabilities 2,075,938       2,203,101     
Shareholders' equity 1,201,477       1,263,627     
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY$12,360,899      $12,361,500     
Net interest income  $71,843      $71,353   
Net interest spread     1.26%      1.26%
Net interest margin     2.37%      2.40%
Cost of funds     3.69%      3.61%

(1) Loans placed on nonaccrual status are included in average balances. Net loan fees and late charges included in interest income on loans totaled $3.9 million and $4.8 million for the three months ended September 30, 2024 and June 30, 2024, 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 September 30,
  2024   2023 
 Average Balance Interest AverageYield/Rate Average Balance Interest AverageYield/Rate
ASSETS           
Interest earning assets:           
Interest bearing deposits with other banks and other short-term investments$1,577,464  $21,296   5.37% $1,127,451  $15,067   5.30%
Loans held for sale (1) 4,936   1   0.08%        %
Loans (1) (2) 8,026,524   139,835   6.93%  7,795,144   132,273   6.73%
Investment securities available-for-sale (2) 1,479,598   7,336   1.97%  1,554,348   8,126   2.07%
Investment securities held-to-maturity (2) 974,366   5,242   2.14%  1,047,515   5,606   2.12%
Federal funds sold 10,003   103   4.10%  7,728   77   3.95%
Total interest earning assets 12,072,891  $173,813   5.73%  11,532,186  $161,149   5.54%
Total noninterest earning assets 397,006       489,683     
Less: allowance for credit losses (108,998)      (78,964)    
Total noninterest earning assets 288,008       410,719     
TOTAL ASSETS$12,360,899      $11,942,905     
            
LIABILITIES AND SHAREHOLDERS' EQUITY          
Interest bearing liabilities:           
Interest bearing transaction$1,656,676  $14,596   3.51% $1,421,522  $12,785   3.57%
Savings and money market 3,254,128   34,896   4.27%  3,113,755   32,855   4.19%
Time deposits 2,517,944   31,698   5.01%  2,162,582   25,289   4.64%
Total interest bearing deposits 7,428,748   81,190   4.35%  6,697,859   70,929   4.20%
Customer repurchase agreements 38,045   332   3.47%  36,082   311   3.42%
Other short-term borrowings 1,615,867   20,448   5.03%  1,610,097   19,190   4.73%
Long-term borrowings 824      %        %
Total interest bearing liabilities 9,083,484  $101,970   4.47%  8,344,038  $90,430   4.30%
Noninterest bearing liabilities:           
Noninterest bearing demand 1,915,666       2,248,782     
Other liabilities 160,272       114,923     
Total noninterest bearing liabilities 2,075,938       2,363,705     
Shareholders' equity 1,201,477       1,235,162     
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY$12,360,899      $11,942,905     
Net interest income  $71,843      $70,719   
Net interest spread     1.26%      1.24%
Net interest margin     2.37%      2.43%
Cost of funds     3.69%      3.39%

(1) Loans placed on nonaccrual status are included in average balances. Net loan fees and late charges included in interest income on loans totaled $3.9 million and $4.1 million for the three months ended September 30, 2024 and 2023, respectively.(2) Interest and fees on loans and investments exclude tax equivalent adjustments.

Eagle Bancorp, Inc.
Statements of Operations and Highlights Quarterly Trends (Unaudited)
(Dollars in thousands, except per share data)
                
 Three Months Ended
 September 30, June 30, March 31, December 31, September 30, June 30, March 31, December 31,
Income Statements: 2024   2024   2024   2023   2023   2023   2023   2022 
Total interest income$173,813  $169,731  $175,602  $167,421  $161,149  $156,510  $140,247  $129,130 
Total interest expense 101,970   98,378   100,904   94,429   90,430   84,699   65,223   43,530 
Net interest income 71,843   71,353   74,698   72,992   70,719   71,811   75,024   85,600 
Provision (reversal) for credit losses 10,094   8,959   35,175   14,490   5,644   5,238   6,164   (464)
Provision (reversal) for credit losses for unfunded commitments (1,593)  608   456   (594)  (839)  318   848   161 
Net interest income after provision for (reversal of) credit losses 63,342   61,786   39,067   59,096   65,914   66,255   68,012   85,903 
Noninterest income before investment gain (loss) 6,948   5,329   3,585   2,891   6,342   8,593   3,721   5,326 
Net gain (loss) on sale of investment securities 3   3   4   3   5   2   (21)  3 
Total noninterest income 6,951   5,332   3,589   2,894   6,347   8,595   3,700   5,329 
Salaries and employee benefits 21,675   21,770   21,726   18,416   21,549   21,957   24,174   23,691 
Premises and equipment expenses 2,794   2,894   3,059   2,967   3,095   3,227   3,317   3,292 
Marketing and advertising 1,588   1,662   859   1,071   768   884   636   1,290 
Goodwill impairment    104,168                   
Other expenses 17,557   15,997   14,353   14,644   12,221   11,910   12,457   10,645 
Total noninterest expense 43,614   146,491   39,997   37,098   37,633   37,978   40,584   38,918 
(Loss) income before income tax expense 26,679   (79,373)  2,659   24,892   34,628   36,872   31,128   52,314 
Income tax expense 4,864   4,429   2,997   4,667   7,245   8,180   6,894   10,121 
Net (loss) income$21,815  $(83,802) $(338) $20,225  $27,383  $28,692  $24,234  $42,193 
Per Share Data:               
(Loss) earnings per weighted average common share, basic$0.72  $(2.78) $(0.01) $0.68  $0.91  $0.94  $0.78  $1.32 
(Loss) earnings per weighted average common share, diluted$0.72  $(2.78) $(0.01) $0.67  $0.91  $0.94  $0.78  $1.32 
Weighted average common shares outstanding, basic 30,173,852   30,185,609   30,068,173   29,925,557   29,910,218   30,454,766   31,109,267   31,819,631 
Weighted average common shares outstanding, diluted 30,241,699   30,185,609   30,068,173   29,966,962   29,944,692   30,505,468   31,180,346   31,898,619 
Actual shares outstanding at period end 30,173,200   30,180,482   30,185,732   29,925,612   29,917,982   29,912,082   31,111,647   31,346,903 
Book value per common share at period end$40.61  $38.75  $41.72  $42.58  $40.64  $40.78  $39.92  $39.18 
Tangible book value per common share at period end (1)$40.61  $38.74  $38.26  $39.08  $37.12  $37.29  $36.57  $35.86 
Dividend per common share$0.165  $0.45  $0.45  $0.45  $0.45  $0.45  $0.45  $0.45 
Performance Ratios (annualized):               
Return on average assets 0.70%  (2.73)%  (0.01)%  0.65%  0.91%  0.96%  0.86%  1.49%
Return on average common equity 7.22%  (26.67)%  (0.11)%  6.48%  8.80%  9.24%  7.92%  13.57%
Return on average tangible common equity (1) 7.22%  (28.96)%  (0.11)%  7.08%  9.61%  10.08%  8.65%  14.82%
Net interest margin 2.37%  2.40%  2.43%  2.45%  2.43%  2.49%  2.77%  3.14%
Efficiency ratio (2) 55.4%  191.0%  51.1%  48.9%  48.8%  47.2%  51.6%  42.8%
Other Ratios:               
Allowance for credit losses to total loans (3) 1.40%  1.33%  1.25%  1.08%  1.05%  1.00%  1.01%  0.97%
Allowance for credit losses to total nonperforming loans 83%  110%  109%  131%  119%  268%  1,160%  1,151%
Nonperforming assets to total assets 1.22%  0.88%  0.79%  0.57%  0.64%  0.28%  0.08%  0.08%
Net charge-offs (recoveries) (annualized) to average total loans (3) 0.26%  0.11%  1.07%  0.60%  0.02%  0.29%  0.05%  0.05%
Tier 1 capital (to average assets) 10.94%  10.58%  10.26%  10.73%  10.96%  10.84%  11.42%  11.63%
Total capital (to risk weighted assets) 15.74%  15.07%  14.87%  14.79%  14.54%  14.51%  14.74%  14.94%
Common equity tier 1 capital (to risk weighted assets) 14.54%  13.92%  13.80%  13.90%  13.68%  13.55%  13.75%  14.03%
Tangible common equity ratio (1) 10.86%  10.35%  10.03%  10.12%  10.04%  10.21%  10.36%  10.18%
Average Balances (in thousands):               
Total assets$12,360,899  $12,361,500  $12,784,470  $12,283,303  $11,942,905  $11,960,111  $11,426,056  $11,255,956 
Total earning assets$12,072,891  $11,953,446  $12,365,497  $11,837,722  $11,532,186  $11,546,050  $11,004,817  $10,829,703 
Total loans (3)$8,026,524  $8,003,206  $7,988,941  $7,963,074  $7,795,144  $7,790,555  $7,712,023  $7,379,198 
Total deposits$9,344,414  $9,225,266  $9,501,661  $9,471,369  $8,946,641  $8,514,938  $8,734,125  $9,524,139 
Total borrowings$1,654,736  $1,721,283  $1,832,947  $1,401,917  $1,646,179  $2,102,507  $1,359,463  $411,060 
Total shareholders' equity$1,201,477  $1,263,627  $1,289,656  $1,238,763  $1,235,162  $1,245,647  $1,240,978  $1,233,705 

(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)
      
 September 30, June 30, September 30,
  2024   2024   2023 
Tangible common equity     
Common shareholders' equity$1,225,424  $1,169,459  $1,215,884 
Less: Intangible assets (21)  (129)  (105,239)
Tangible common equity$1,225,403  $1,169,330  $1,110,645 
      
Tangible common equity ratio     
Total assets$11,285,052  $11,302,023  $11,164,214 
Less: Intangible assets (21)  (129)  (105,239)
Tangible assets$11,285,031  $11,301,894  $11,058,975 
      
Tangible common equity ratio 10.86%  10.35%  10.04%
      
Per share calculations     
Book value per common share$40.61  $38.75  $40.64 
Less: Intangible book value per common share    (0.01)  (3.52)
Tangible book value per common share$40.61  $38.74  $37.12 
      
Shares outstanding at period end 30,173,200   30,180,482   29,917,982 
            

 

  Three Months Ended
  September 30, June 30, September 30,
   2024   2024   2023 
Average tangible common equity      
Average common shareholders' equity $1,201,477  $1,263,627  $1,235,162 
Less: Average intangible assets  (24)  (99,827)  (104,639)
Average tangible common equity $1,201,453  $1,163,800  $1,130,523 
       
Return on average tangible common equity      
Net (loss) income $21,815  $(83,802) $27,383 
Return on average tangible common equity  7.22% (28.96)%  9.61%
       
Net (loss) income $21,815  $(83,802) $27,383 
Add back of goodwill impairment $   104,168    
Operating net (loss) income (Non-GAAP)  21,815   20,366   27,383 
Operating Return on average tangible common equity (Non-GAAP)  7.22%  7.04%  9.61%
       
Efficiency ratio      
Net interest income $71,843  $71,353  $70,719 
Noninterest income  6,951   5,332   6,347 
Operating revenue $78,794  $76,685  $77,066 
Noninterest expense $43,614  $146,491  $37,633 
Add back of goodwill impairment     (104,168)   
Operating Noninterest expense (Non-GAAP)  43,614   42,323   37,633 
       
Efficiency ratio  55.35%  191.03%  48.83%
Operating Efficiency ratio (Non-GAAP)  55.35%  55.19%  48.83%
       
Pre-provision net revenue      
Net interest income $71,843  $71,353  $70,719 
Noninterest income  6,951   5,332   6,347 
Less: Noninterest expense  (43,614)  (146,491)  (37,633)
Pre-provision net revenue $35,180  $(69,806) $39,433 
       
Pre-provision net revenue $35,180  $(69,806) $39,433 
Add back of goodwill impairment $  $104,168  $ 
Operating Pre-provision net revenue (Non-GAAP) $35,180  $34,362  $39,433 
       

Tangible common equity, tangible common equity to tangible assets (the "tangible common equity ratio"), tangible book value per common share, average tangible common equity, annualized return on average tangible common equity, and the operating 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 calculates the operating annualized return on average tangible common equity ratio by dividing operating net income available to common shareholders, which adds back the goodwill impairment, 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 the significant impact of the goodwill impairment is a one-time event that obscures the operating performance of the company. Further related to other measures, 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. Further, the operating efficiency ratio is measured by dividing non-GAAP noninterest expense, which excludes the goodwill impairment, by the sum of GAAP net interest income and GAAP noninterest income. The Company considers this information important to shareholders as the significant impact of the goodwill impairment is a one-time event that obscures the operating performance of the company.

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. Operating pre-provision net revenue is a non-GAAP financial measure calculated by subtracting noninterest expenses with the impact of the goodwill impairment added back from the sum of net interest income and noninterest income. The Company considers this information important to shareholders as the significant impact of the goodwill impairment is a one-time event that obscures the operating performance of the company.

  Three Months Ended
  September 30, June 30, September 30,
   2024   2024   2023 
Net (loss) income $21,815  $(83,802) $27,383 
Add back of goodwill impairment     104,168    
Operating Net (loss) income (Non-GAAP) $21,815  $20,366  $27,383 
       
(Loss) earnings per share (diluted)4 $0.72  $(2.78) $0.91 
Add back of goodwill impairment per share (diluted)     3.45    
Operating earnings (loss) per share (diluted) (Non-GAAP) $0.72  $0.67  $0.91 
       

Operating net (loss) income and operating (loss) earnings per share (diluted) are non-GAAP financial measures derived from GAAP based amounts. The Company calculates operating net (loss) income by excluding from net (loss) income the one-time goodwill impairment of $104.2 million. During the second quarter of 2024, the Company performed an annual impairment test as a result of management's evaluation of current economic conditions, and concluded that goodwill had become impaired, which resulted in an impairment charge of $104.2 million to reduce the carrying value of the Company's goodwill to zero. The Company calculates operating earnings (loss) per share (diluted) by dividing the one-time goodwill impairment of $104.2 million by the weighted average shares outstanding (diluted) for the three and six months ended June 30, 2024. The Company considers this information important to shareholders because operating net (loss) income and operating (loss) earnings per share (diluted) provides investors insight into how Company earnings changed exclusive of the impairment charge to allow investors to better compare the Company's performance against historical periods. The table above provides a reconciliation of operating net income (loss) and operating earnings (loss) per share (diluted) to the nearest GAAP measure.

_______________1 A reconciliation of non-GAAP financial measures and the nearest GAAP measures is provided in the GAAP Reconciliation to Non-GAAP Financial Measure that accompany this document.2 Calculated as the ACL attributable to loans collateralized by performing office properties as a percentage of total loans.3 A reconciliation of non-GAAP financial measures and the nearest GAAP measures is provided in the GAAP Reconciliation to Non-GAAP Financial Measure that accompany this document.4 For periods ended with a net loss, anti-dilutive financial instruments have been excluded from the calculation of GAAP diluted EPS. Operating diluted EPS calculations include the impact of outstanding equity-based awards for all periods.

EAGLE BANCORP, INC. CONTACT:Eric R. Newell240.497.1796

For the September 30, 2024 Earnings Presentation, click http://ml.globenewswire.com/Resource/Download/d55e221f-6ef9-45bd-8784-011bf19dce58

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