Eagle Bancorp, Inc. (NASDAQ: EGBN), ("Eagle", "the Company", "we",
"us", "our"), the Bethesda-based parent company of EagleBank (the
"Bank"), reported its unaudited results for the second quarter
ended June 30, 2024.
Eagle recorded a $104.2 million impairment in the
value of goodwill and a resulting net loss of $83.8 million or
$2.78 per share for the second quarter 2024. The goodwill
impairment does not impact our cash, liquidity ratios, core
operating performance, or regulatory capital ratios.
Operating net income1, adjusted to exclude the impairment charge on
goodwill, was $20.4 million or $0.67 per diluted share. We
increased the Tier 1 capital leverage ratio to 10.6% and continue
to grow the number of core deposit relationships.
"The Company's operating results materially
improved from the first quarter due to a normalization of
charge-offs from our loan portfolio. We continue to execute on our
strategic plan as evidenced by initiatives such as the addition of
the Expatriate Banking Services Division and the continued success
of our digital banking channel driving our objective of further
diversification of deposits and reducing the use of wholesale
funding sources" said Susan G. Riel, President and Chief Executive
Officer of the Company.
Ms. Riel continued, "I'm encouraged by our
team's continued resilience, consistently upholding our brand and
community role while serving as trusted partners to our customers.
I am excited about EagleBank’s future prospects and its capacity to
support our communities and customers for years ahead."
Eric R. Newell, Chief Financial Officer of the
Company said, "While the Company experienced a net loss on a GAAP
basis due to the impairment charge on goodwill, operating
performance significantly improved from last quarter evidenced by
operating net income1 increasing $20.7 million to $20.4 million in
the second quarter. We continued to build our reserve for credit
losses, with coverage to total held for investment loans at 1.33%
increasing 8 basis points from last quarter. Common equity tier one
capital increased to 13.9% and our tangible common equity1 ratio
exceeds 10%. Our efforts remain laser focused on the continued
implementation of our strategic objectives2."
Ms. Riel added, "I thank all of our employees
for their hard work and dedication. Additionally, we remain
committed to a culture of respect, diversity and inclusion in both
the workplace and the communities we serve."
Second Quarter 2024
Highlights
-
The ACL as a percentage of total held for investment loans was
1.33% at quarter-end; up from 1.25% at the prior quarter-end.
Performing office coverage3 was 4.05% at quarter-end; as compared
to 3.67% at the prior quarter-end.
-
Non-performing assets increased $6.7 million as of June 30, 2024
and were 0.88% of total assets compared to 0.79% as of March 31,
2024 largely due to increases from construction and income
producing commercial real estate loans.
-
Net charge-offs for the second quarter were 0.11% compared to 1.07%
for the first quarter 2024. The decline in charge-offs reflects a
charge-off in the first quarter that did not repeat in the second
quarter.
-
The net interest margin ("NIM") declined slightly to 2.40% for the
second quarter 2024, compared to 2.43% for the prior quarter. While
interest rates on earning assets remained stable, we saw costs on
interest bearing liabilities increase 8 basis points driven by
refinancing of maturing Bank Term Funding Program (“BTFP”)
borrowings with Federal Home Loan Bank of Atlanta (“FHLB”)
borrowings toward the end of the first 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 10.35%, 10.35%, and 13.92%, respectively.
-
Loans at quarter-end were $8.0 billion, up $19.0 million, or 0.2%,
from the prior quarter-end.
-
Deposits at quarter-end were $8.3 billion, down $234.1 million, or
2.8%, from the prior quarter-end. The decrease was primarily
attributable to a decline in deposits from a third party payment
processor related to the fluctuations in deposit levels resulting
from its business, as well as a decline in public and brokered
funding. Period end deposits have increased $549 million when
compared to June 30, 2023.
-
Total estimated insured deposits at quarter-end were $6.0 billion,
or 72.5% of deposits.
-
Total on-balance sheet liquidity and available capacity was $4.0
billion at quarter-end. Capacity was increased from the prior
quarter as a result of pledging additional collateral to the FRB
Discount window.
Income Statement
- Net
interest income was $71.4 million for the second quarter
2024, compared to $74.7 million for the prior quarter. The decrease
in net interest income was primarily driven by a decrease in the
average balances of deposits held with other banks offset by lower
average interest bearing liabilities with a higher rate during the
second quarter as compared to the first quarter.
-
Provision for credit losses was $9.0 million for
the second quarter 2024, compared to $35.2 million for the prior
quarter. The provision for the second quarter was driven by updates
to the qualitative components of the CECL model. The decrease in
the provision quarter over quarter reflects a higher provision in
the first quarter due to a significant charge-off that did not
repeat in the second quarter.
-
Noninterest income was $5.3 million for the second
quarter 2024, compared to $3.6 million for the prior quarter. The
primary driver for the increase related to other income associated
with the sale of a small mortgage servicing rights portfolio
related to the FHA Multifamily business.
- Noninterest expense
was $146.5 million for the second quarter 2024, compared to $40.0
million for the prior quarter. The increase over the comparative
quarters was primarily due to a goodwill impairment charge of
$104.2 million in the second quarter 2024. Excluding the goodwill
impairment charge, our operating noninterest expense4 was
$42.3 million for the second quarter 2024. Aside from the
goodwill impairment charge, the increase was associated with other
expenses lead by real estate taxes.
Loans and Funding
- Total
loans were $8.0 billion at June 30, 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 commercial loans from the prior quarter-end.At
June 30, 2024, income-producing commercial real estate loans
secured by office properties other than owner-occupied properties
were 11.3% of the total loan portfolio at principal, up from 11.2%
at the prior quarter-end.
- Total
deposits were $8.3 billion at June 30, 2024, down
2.8% from the prior quarter-end. The decrease was primarily
attributable to a decline in deposits from a third party payment
processor related to the fluctuations in deposit levels resulting
from its business, as well as declines in some public and brokered
funding.
-
Borrowings were $1.7 billion at June 30,
2024, down 0.6% from the prior quarter-end.
Asset Quality
-
Allowance for credit losses was 1.33% of total
loans at June 30, 2024, compared to 1.25% at the prior
quarter-end. Performing office coverage was 4.05% at quarter-end;
as compared to 3.67% at the prior quarter-end.
- Net
charge-offs were $2.3 million for the quarter compared to
$21.4 million in the first quarter of 2024.
-
Nonperforming assets were $98.9 million at
June 30, 2024.
- NPAs as a
percentage of assets were 0.88% at June 30, 2024, compared to
0.79% at the prior quarter-end. At June 30, 2024, other real
estate owned consisted of four properties with an aggregate
carrying value of $773 thousand.
- Loans 30-89 days
past due were $8.4 million at June 30, 2024, down from $31.1
million at the prior.
Capital
- Total
shareholders' equity was $1.2 billion at June 30,
2024, down 7.1% from the prior quarter-end. The decrease in
shareholders' equity of $90.0 million was primarily due to a
goodwill impairment charge of $104.2 million.
- Book
value per share was $38.75, down $2.97 from the prior
quarter-end.
- Tangible
book value per share5 was $38.74, up
$0.48 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 June 30, 2024 as compared to the three
months ended March 31, 2024 and June 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 second quarter 2024
financial results on Thursday, July 25, 2024 at 10:00 a.m.
Eastern Time.
The listen-only webcast can be accessed at:
-
https://edge.media-server.com/mmc/p/psn698x6/
- For analysts who
wish to participate in the conference call, please register at the
following
URL:https://register.vevent.com/register/BId373c2f4d3af4a28a271e79bee6e0bca
- A replay of the
conference call will be available on the Company's website through
8/8/2024: 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 |
|
June 30, |
|
March 31, |
|
June 30, |
|
|
2024 |
|
|
|
2024 |
|
|
|
2023 |
Interest Income |
|
|
|
|
|
Interest and fees on loans |
$ |
137,616 |
|
|
$ |
137,994 |
|
|
$ |
128,993 |
Interest and dividends on investment securities |
|
12,405 |
|
|
|
12,680 |
|
|
|
14,241 |
Interest on balances with other banks and short-term
investments |
|
19,568 |
|
|
|
24,862 |
|
|
|
13,229 |
Interest on federal funds sold |
|
142 |
|
|
|
66 |
|
|
|
47 |
Total interest income |
|
169,731 |
|
|
|
175,602 |
|
|
|
156,510 |
Interest Expense |
|
|
|
|
|
Interest on deposits |
|
76,846 |
|
|
|
79,383 |
|
|
|
59,422 |
Interest on customer repurchase agreements |
|
330 |
|
|
|
315 |
|
|
|
333 |
Interest on borrowings |
|
21,202 |
|
|
|
21,206 |
|
|
|
24,944 |
Total interest expense |
|
98,378 |
|
|
|
100,904 |
|
|
|
84,699 |
Net Interest Income |
|
71,353 |
|
|
|
74,698 |
|
|
|
71,811 |
Provision for Credit Losses |
|
8,959 |
|
|
|
35,175 |
|
|
|
5,238 |
Provision for Credit Losses for Unfunded
Commitments |
|
608 |
|
|
|
456 |
|
|
|
318 |
Net Interest Income After Provision for Credit
Losses |
|
61,786 |
|
|
|
39,067 |
|
|
|
66,255 |
|
|
|
|
|
|
Noninterest Income |
|
|
|
|
|
Service charges on deposits |
|
1,653 |
|
|
|
1,699 |
|
|
|
1,626 |
Gain on sale of loans |
|
37 |
|
|
|
— |
|
|
|
95 |
Net gain on sale of investment securities |
|
3 |
|
|
|
4 |
|
|
|
2 |
Increase in cash surrender value of bank-owned life
insurance |
|
709 |
|
|
|
703 |
|
|
|
648 |
Other income |
|
2,930 |
|
|
|
1,183 |
|
|
|
6,224 |
Total noninterest income |
|
5,332 |
|
|
|
3,589 |
|
|
|
8,595 |
Noninterest Expense |
|
|
|
|
|
Salaries and employee benefits |
|
21,770 |
|
|
|
21,726 |
|
|
|
21,957 |
Premises and equipment expenses |
|
2,894 |
|
|
|
3,059 |
|
|
|
3,227 |
Marketing and advertising |
|
1,662 |
|
|
|
859 |
|
|
|
884 |
Data processing |
|
3,495 |
|
|
|
3,293 |
|
|
|
3,354 |
Legal, accounting and professional fees |
|
2,705 |
|
|
|
2,507 |
|
|
|
2,649 |
FDIC insurance |
|
5,917 |
|
|
|
6,412 |
|
|
|
2,581 |
Goodwill impairment |
|
104,168 |
|
|
|
— |
|
|
|
— |
Other expenses |
|
3,880 |
|
|
|
2,141 |
|
|
|
3,326 |
Total noninterest expense |
|
146,491 |
|
|
|
39,997 |
|
|
|
37,978 |
(Loss) Income Before Income Tax Expense |
|
(79,373 |
) |
|
|
2,659 |
|
|
|
36,872 |
Income Tax Expense |
|
4,429 |
|
|
|
2,997 |
|
|
|
8,180 |
Net (Loss) Income |
$ |
(83,802 |
) |
|
$ |
(338 |
) |
|
$ |
28,692 |
|
|
|
|
|
|
(Loss) Earnings Per Common Share |
|
|
|
|
|
Basic |
$ |
(2.78 |
) |
|
$ |
(0.01 |
) |
|
$ |
0.94 |
Diluted |
$ |
(2.78 |
) |
|
$ |
(0.01 |
) |
|
$ |
0.94 |
|
Eagle Bancorp, Inc. |
Consolidated Balance Sheets (Unaudited) |
(Dollars in thousands, except per share data) |
|
June 30, |
|
March 31, |
|
June 30, |
|
|
2024 |
|
|
|
2024 |
|
|
|
2023 |
|
Assets |
|
|
|
|
|
Cash and due from banks |
$ |
10,803 |
|
|
$ |
10,076 |
|
|
$ |
9,865 |
|
Federal funds sold |
|
5,802 |
|
|
|
11,343 |
|
|
|
3,981 |
|
Interest-bearing deposits with banks and other short-term
investments |
|
526,228 |
|
|
|
696,453 |
|
|
|
174,072 |
|
Investment securities available-for-sale at fair value (amortized
cost of $1,584,435, $1,613,659, and $1,732,722, respectively, and
allowance for credit losses of $17, $17 and $17, respectively) |
|
1,420,618 |
|
|
|
1,445,034 |
|
|
|
1,535,589 |
|
Investment securities held-to-maturity at amortized cost, net of
allowance for credit losses of $2,012, $1,957 and $2,010,
respectively (fair value of $856,275, $878,159 and $923,313,
respectively) |
|
982,955 |
|
|
|
1,000,732 |
|
|
|
1,055,181 |
|
Federal Reserve and Federal Home Loan Bank stock |
|
54,274 |
|
|
|
54,678 |
|
|
|
46,199 |
|
Loans held for sale |
|
5,000 |
|
|
|
— |
|
|
|
— |
|
Loans |
|
8,001,739 |
|
|
|
7,982,702 |
|
|
|
7,766,719 |
|
Less: allowance for credit losses |
|
(106,301 |
) |
|
|
(99,684 |
) |
|
|
(78,029 |
) |
Loans, net |
|
7,895,438 |
|
|
|
7,883,018 |
|
|
|
7,688,690 |
|
Premises and equipment, net |
|
8,788 |
|
|
|
9,504 |
|
|
|
11,979 |
|
Operating lease right-of-use assets |
|
16,250 |
|
|
|
17,679 |
|
|
|
21,580 |
|
Deferred income taxes |
|
86,236 |
|
|
|
87,813 |
|
|
|
92,574 |
|
Bank-owned life insurance |
|
114,333 |
|
|
|
113,624 |
|
|
|
111,565 |
|
Goodwill and intangible assets, net |
|
129 |
|
|
|
104,611 |
|
|
|
104,220 |
|
Other real estate owned |
|
773 |
|
|
|
773 |
|
|
|
1,487 |
|
Other assets |
|
174,396 |
|
|
|
177,310 |
|
|
|
177,759 |
|
Total Assets |
$ |
11,302,023 |
|
|
$ |
11,612,648 |
|
|
$ |
11,034,741 |
|
Liabilities and Shareholders' Equity |
|
|
|
|
|
Liabilities |
|
|
|
|
|
Deposits: |
|
|
|
|
|
Noninterest-bearing demand |
$ |
1,693,955 |
|
|
$ |
1,835,524 |
|
|
$ |
2,010,353 |
|
Interest-bearing transaction |
|
1,123,980 |
|
|
|
1,207,566 |
|
|
|
930,308 |
|
Savings and money market |
|
3,165,314 |
|
|
|
3,235,391 |
|
|
|
2,791,040 |
|
Time deposits |
|
2,284,099 |
|
|
|
2,222,958 |
|
|
|
1,986,426 |
|
Total deposits |
|
8,267,348 |
|
|
|
8,501,439 |
|
|
|
7,718,127 |
|
Customer repurchase agreements |
|
39,220 |
|
|
|
37,059 |
|
|
|
37,017 |
|
Borrowings |
|
1,659,979 |
|
|
|
1,669,948 |
|
|
|
1,906,615 |
|
Operating lease liabilities |
|
20,016 |
|
|
|
21,611 |
|
|
|
26,007 |
|
Reserve for unfunded commitments |
|
6,653 |
|
|
|
6,045 |
|
|
|
7,023 |
|
Other liabilities |
|
139,348 |
|
|
|
117,133 |
|
|
|
120,186 |
|
Total Liabilities |
|
10,132,564 |
|
|
|
10,353,235 |
|
|
|
9,814,975 |
|
Shareholders' Equity |
|
|
|
|
|
Common stock, par value $0.01 per share; shares authorized
100,000,000, shares issued and outstanding 30,180,482, 30,185,732,
and 29,912,082, respectively |
|
297 |
|
|
|
297 |
|
|
|
296 |
|
Additional paid-in capital |
|
380,142 |
|
|
|
377,334 |
|
|
|
370,278 |
|
Retained earnings |
|
949,863 |
|
|
|
1,047,550 |
|
|
|
1,040,779 |
|
Accumulated other comprehensive loss |
|
(160,843 |
) |
|
|
(165,768 |
) |
|
|
(191,587 |
) |
Total Shareholders' Equity |
|
1,169,459 |
|
|
|
1,259,413 |
|
|
|
1,219,766 |
|
Total Liabilities and Shareholders' Equity |
$ |
11,302,023 |
|
|
$ |
11,612,648 |
|
|
$ |
11,034,741 |
|
|
Loan Mix and Asset Quality(Dollars in
thousands) |
|
|
June 30, |
|
March 31, |
|
June 30, |
|
|
2024 |
|
|
|
2024 |
|
|
|
2023 |
|
|
Amount |
% |
|
Amount |
% |
|
Amount |
% |
Loan Balances - Period End: |
|
|
|
|
|
|
|
|
Commercial |
$ |
1,238,261 |
15 |
% |
|
$ |
1,473,766 |
18 |
% |
|
$ |
1,431,284 |
18 |
% |
PPP loans |
|
407 |
— |
% |
|
|
528 |
— |
% |
|
|
649 |
— |
% |
Income producing - commercial real estate |
|
4,217,525 |
53 |
% |
|
|
4,094,614 |
51 |
% |
|
|
4,086,049 |
53 |
% |
Owner occupied - commercial real estate |
|
1,263,714 |
16 |
% |
|
|
1,172,239 |
15 |
% |
|
|
1,122,334 |
14 |
% |
Real estate mortgage - residential |
|
61,338 |
1 |
% |
|
|
73,396 |
1 |
% |
|
|
76,596 |
1 |
% |
Construction - commercial and residential |
|
1,063,764 |
13 |
% |
|
|
969,766 |
12 |
% |
|
|
862,869 |
11 |
% |
Construction - C&I (owner occupied) |
|
99,526 |
1 |
% |
|
|
132,021 |
2 |
% |
|
|
132,843 |
2 |
% |
Home equity |
|
52,773 |
1 |
% |
|
|
51,964 |
1 |
% |
|
|
53,934 |
1 |
% |
Other consumer |
|
4,431 |
— |
% |
|
|
401 |
— |
% |
|
|
161 |
— |
% |
Total loans |
$ |
8,001,739 |
100 |
% |
|
$ |
7,968,695 |
100 |
% |
|
$ |
7,766,719 |
100 |
% |
|
Three Months Ended or As Of |
|
June 30, |
|
March 31, |
|
June 30, |
|
|
2024 |
|
|
2024 |
|
|
2023 |
Asset Quality: |
|
|
|
|
|
Net charge-offs |
$ |
2,285 |
|
$ |
21,430 |
|
$ |
5,598 |
Nonperforming loans |
$ |
98,169 |
|
$ |
91,491 |
|
$ |
29,098 |
Other real estate owned |
$ |
773 |
|
$ |
773 |
|
$ |
1,487 |
Nonperforming assets |
$ |
98,942 |
|
$ |
92,264 |
|
$ |
30,585 |
Special mention |
$ |
307,906 |
|
$ |
265,348 |
|
$ |
155,810 |
Substandard |
$ |
408,311 |
|
$ |
361,776 |
|
$ |
219,045 |
|
Eagle Bancorp, Inc. |
Consolidated Average Balances, Interest Yields And Rates
vs. Prior Quarter (Unaudited) |
(Dollars in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
June 30, 2024 |
|
March 31, 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 |
$ |
1,455,007 |
|
|
$ |
19,568 |
|
5.41 |
% |
|
$ |
1,841,771 |
|
|
$ |
24,862 |
|
5.43 |
% |
Loans held for sale (1) |
|
8,045 |
|
|
|
100 |
|
5.00 |
% |
|
|
— |
|
|
|
— |
|
— |
% |
Loans (1) (2) |
$ |
8,003,206 |
|
|
|
137,516 |
|
6.91 |
% |
|
|
7,988,941 |
|
|
|
137,994 |
|
6.95 |
% |
Investment securities available-for-sale (2) |
|
1,478,856 |
|
|
|
7,048 |
|
1.92 |
% |
|
|
1,516,503 |
|
|
|
7,247 |
|
1.92 |
% |
Investment securities held-to-maturity (2) |
|
995,274 |
|
|
|
5,357 |
|
2.16 |
% |
|
|
1,011,231 |
|
|
|
5,433 |
|
2.16 |
% |
Federal funds sold |
|
13,058 |
|
|
|
142 |
|
4.37 |
% |
|
|
7,051 |
|
|
|
66 |
|
3.76 |
% |
Total interest earning assets |
|
11,953,446 |
|
|
$ |
169,731 |
|
5.71 |
% |
|
|
12,365,497 |
|
|
$ |
175,602 |
|
5.71 |
% |
Total noninterest earning assets |
|
510,725 |
|
|
|
|
|
|
|
508,987 |
|
|
|
|
|
Less: allowance for credit losses |
|
(102,671 |
) |
|
|
|
|
|
|
(90,014 |
) |
|
|
|
|
Total noninterest earning assets |
|
408,054 |
|
|
|
|
|
|
|
418,973 |
|
|
|
|
|
TOTAL ASSETS |
$ |
12,361,500 |
|
|
|
|
|
|
$ |
12,784,470 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS' EQUITY |
|
|
|
|
|
|
|
|
|
|
Interest bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing transaction |
$ |
1,636,795 |
|
|
$ |
16,100 |
|
3.96 |
% |
|
$ |
1,833,493 |
|
|
$ |
16,830 |
|
3.69 |
% |
Savings and money market |
|
3,321,001 |
|
|
|
33,451 |
|
4.05 |
% |
|
|
3,423,388 |
|
|
|
35,930 |
|
4.22 |
% |
Time deposits |
|
2,215,693 |
|
|
|
27,295 |
|
4.95 |
% |
|
|
2,187,320 |
|
|
|
26,623 |
|
4.90 |
% |
Total interest bearing deposits |
|
7,173,489 |
|
|
|
76,846 |
|
4.31 |
% |
|
|
7,444,201 |
|
|
|
79,383 |
|
4.29 |
% |
Customer repurchase agreements |
|
38,599 |
|
|
|
330 |
|
3.44 |
% |
|
|
36,084 |
|
|
|
315 |
|
3.51 |
% |
Borrowings |
|
1,682,684 |
|
|
|
21,202 |
|
5.07 |
% |
|
|
1,796,863 |
|
|
|
21,206 |
|
4.75 |
% |
Total interest bearing liabilities |
|
8,894,772 |
|
|
$ |
98,378 |
|
4.45 |
% |
|
|
9,277,148 |
|
|
$ |
100,904 |
|
4.37 |
% |
Noninterest bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
|
Noninterest bearing demand |
|
2,051,777 |
|
|
|
|
|
|
|
2,057,460 |
|
|
|
|
|
Other liabilities |
|
151,324 |
|
|
|
|
|
|
|
160,206 |
|
|
|
|
|
Total noninterest bearing liabilities |
|
2,203,101 |
|
|
|
|
|
|
|
2,217,666 |
|
|
|
|
|
Shareholders' equity |
|
1,263,627 |
|
|
|
|
|
|
|
1,289,656 |
|
|
|
|
|
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY |
$ |
12,361,500 |
|
|
|
|
|
|
$ |
12,784,470 |
|
|
|
|
|
Net interest income |
|
|
$ |
71,353 |
|
|
|
|
|
$ |
74,698 |
|
|
Net interest spread |
|
|
|
|
1.26 |
% |
|
|
|
|
|
1.34 |
% |
Net interest margin |
|
|
|
|
2.40 |
% |
|
|
|
|
|
2.43 |
% |
Cost of funds |
|
|
|
|
3.61 |
% |
|
|
|
|
|
3.58 |
% |
(1) Loans placed on nonaccrual
status are included in average balances. Net loan fees and late
charges included in interest income on loans totaled $4.8 million
and $5.1 million for the three months ended June 30, 2024 and
March 31, 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 June 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 |
$ |
1,455,007 |
|
|
$ |
19,568 |
|
5.41 |
% |
|
$ |
1,053,961 |
|
|
$ |
13,229 |
|
5.03 |
% |
Loans held for sale (1) |
|
8,045 |
|
|
|
100 |
|
5.00 |
% |
|
|
813 |
|
|
|
13 |
|
6.40 |
% |
Loans (1) (2) |
|
8,003,206 |
|
|
|
137,516 |
|
6.91 |
% |
|
|
7,790,555 |
|
|
|
128,980 |
|
6.64 |
% |
Investment securities available-for-sale (2) |
|
1,478,856 |
|
|
|
7,048 |
|
1.92 |
% |
|
|
1,626,330 |
|
|
|
8,526 |
|
2.10 |
% |
Investment securities held-to-maturity (2) |
|
995,274 |
|
|
|
5,357 |
|
2.16 |
% |
|
|
1,068,755 |
|
|
|
5,715 |
|
2.14 |
% |
Federal funds sold |
|
13,058 |
|
|
|
142 |
|
4.37 |
% |
|
|
5,636 |
|
|
|
47 |
|
3.34 |
% |
Total interest earning assets |
|
11,953,446 |
|
|
$ |
169,731 |
|
5.71 |
% |
|
|
11,546,050 |
|
|
$ |
156,510 |
|
5.44 |
% |
Total noninterest earning assets |
|
510,725 |
|
|
|
|
|
|
|
492,426 |
|
|
|
|
|
Less: allowance for credit losses |
|
(102,671 |
) |
|
|
|
|
|
|
(78,365 |
) |
|
|
|
|
Total noninterest earning assets |
|
408,054 |
|
|
|
|
|
|
|
414,061 |
|
|
|
|
|
TOTAL ASSETS |
$ |
12,361,500 |
|
|
|
|
|
|
$ |
11,960,111 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS' EQUITY |
|
|
|
|
|
|
|
|
|
|
Interest bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
|
Interest bearing transaction |
$ |
1,636,795 |
|
|
$ |
16,100 |
|
3.96 |
% |
|
$ |
1,312,710 |
|
|
$ |
10,640 |
|
3.25 |
% |
Savings and money market |
|
3,321,001 |
|
|
|
33,451 |
|
4.05 |
% |
|
|
2,967,678 |
|
|
|
30,861 |
|
4.17 |
% |
Time deposits |
|
2,215,693 |
|
|
|
27,295 |
|
4.95 |
% |
|
|
1,675,690 |
|
|
|
17,921 |
|
4.29 |
% |
Total interest bearing deposits |
|
7,173,489 |
|
|
|
76,846 |
|
4.31 |
% |
|
|
5,956,078 |
|
|
|
59,422 |
|
4.00 |
% |
Customer repurchase agreements |
|
38,599 |
|
|
|
330 |
|
3.44 |
% |
|
|
41,105 |
|
|
|
333 |
|
3.25 |
% |
Borrowings |
|
1,682,684 |
|
|
|
21,202 |
|
5.07 |
% |
|
|
2,061,402 |
|
|
|
24,944 |
|
4.85 |
% |
Total interest bearing liabilities |
|
8,894,772 |
|
|
$ |
98,378 |
|
4.45 |
% |
|
|
8,058,585 |
|
|
$ |
84,699 |
|
4.22 |
% |
Noninterest bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
|
Noninterest bearing demand |
|
2,051,777 |
|
|
|
|
|
|
|
2,558,860 |
|
|
|
|
|
Other liabilities |
|
151,324 |
|
|
|
|
|
|
|
97,019 |
|
|
|
|
|
Total noninterest bearing liabilities |
|
2,203,101 |
|
|
|
|
|
|
|
2,655,879 |
|
|
|
|
|
Shareholders' equity |
|
1,263,627 |
|
|
|
|
|
|
|
1,245,647 |
|
|
|
|
|
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY |
$ |
12,361,500 |
|
|
|
|
|
|
$ |
11,960,111 |
|
|
|
|
|
Net interest income |
|
|
$ |
71,353 |
|
|
|
|
|
$ |
71,811 |
|
|
Net interest spread |
|
|
|
|
1.26 |
% |
|
|
|
|
|
1.22 |
% |
Net interest margin |
|
|
|
|
2.40 |
% |
|
|
|
|
|
2.49 |
% |
Cost of funds |
|
|
|
|
3.61 |
% |
|
|
|
|
|
3.20 |
% |
(1) Loans placed on nonaccrual
status are included in average balances. Net loan fees and late
charges included in interest income on loans totaled $4.8 million
and $7.9 million for the three months ended June 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 |
Income Statements: |
June 30, |
|
March 31, |
|
December 31, |
|
September 30, |
|
June 30, |
|
March 31, |
|
December 31, |
|
September 30, |
|
2024 |
|
|
|
2024 |
|
|
|
2023 |
|
|
|
2023 |
|
|
|
2023 |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
2022 |
|
Total interest income |
$ |
169,731 |
|
|
$ |
175,602 |
|
|
$ |
167,421 |
|
|
$ |
161,149 |
|
|
$ |
156,510 |
|
|
$ |
140,247 |
|
|
$ |
129,130 |
|
|
$ |
111,527 |
|
Total interest expense |
|
98,378 |
|
|
|
100,904 |
|
|
|
94,429 |
|
|
|
90,430 |
|
|
|
84,699 |
|
|
|
65,223 |
|
|
|
43,530 |
|
|
|
27,630 |
|
Net interest income |
|
71,353 |
|
|
|
74,698 |
|
|
|
72,992 |
|
|
|
70,719 |
|
|
|
71,811 |
|
|
|
75,024 |
|
|
|
85,600 |
|
|
|
83,897 |
|
Provision for (reversal of) credit losses |
|
8,959 |
|
|
|
35,175 |
|
|
|
14,490 |
|
|
|
5,644 |
|
|
|
5,238 |
|
|
|
6,164 |
|
|
|
(464 |
) |
|
|
3,022 |
|
Provision for (reversal of) credit losses for unfunded
commitments |
|
608 |
|
|
|
456 |
|
|
|
(594 |
) |
|
|
(839 |
) |
|
|
318 |
|
|
|
848 |
|
|
|
161 |
|
|
|
774 |
|
Net interest income after provision for (reversal of) credit
losses |
|
61,786 |
|
|
|
39,067 |
|
|
|
59,096 |
|
|
|
65,914 |
|
|
|
66,255 |
|
|
|
68,012 |
|
|
|
85,903 |
|
|
|
80,101 |
|
Noninterest income before investment gain (loss) |
|
5,329 |
|
|
|
3,585 |
|
|
|
2,891 |
|
|
|
6,342 |
|
|
|
8,593 |
|
|
|
3,721 |
|
|
|
5,326 |
|
|
|
5,304 |
|
Net gain (loss) on sale of investment securities |
|
3 |
|
|
|
4 |
|
|
|
3 |
|
|
|
5 |
|
|
|
2 |
|
|
|
(21 |
) |
|
|
3 |
|
|
|
4 |
|
Total noninterest income |
|
5,332 |
|
|
|
3,589 |
|
|
|
2,894 |
|
|
|
6,347 |
|
|
|
8,595 |
|
|
|
3,700 |
|
|
|
5,329 |
|
|
|
5,308 |
|
Salaries and employee benefits |
|
21,770 |
|
|
|
21,726 |
|
|
|
18,416 |
|
|
|
21,549 |
|
|
|
21,957 |
|
|
|
24,174 |
|
|
|
23,691 |
|
|
|
21,538 |
|
Premises and equipment expenses |
|
2,894 |
|
|
|
3,059 |
|
|
|
2,967 |
|
|
|
3,095 |
|
|
|
3,227 |
|
|
|
3,317 |
|
|
|
3,292 |
|
|
|
3,275 |
|
Marketing and advertising |
|
1,662 |
|
|
|
859 |
|
|
|
1,071 |
|
|
|
768 |
|
|
|
884 |
|
|
|
636 |
|
|
|
1,290 |
|
|
|
1,181 |
|
Goodwill impairment |
|
104,168 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Other expenses |
|
15,997 |
|
|
|
14,353 |
|
|
|
14,644 |
|
|
|
12,221 |
|
|
|
11,910 |
|
|
|
12,457 |
|
|
|
10,645 |
|
|
|
10,212 |
|
Total noninterest expense |
|
146,491 |
|
|
|
39,997 |
|
|
|
37,098 |
|
|
|
37,633 |
|
|
|
37,978 |
|
|
|
40,584 |
|
|
|
38,918 |
|
|
|
36,206 |
|
(Loss) income before income tax expense |
|
(79,373 |
) |
|
|
2,659 |
|
|
|
24,892 |
|
|
|
34,628 |
|
|
|
36,872 |
|
|
|
31,128 |
|
|
|
52,314 |
|
|
|
49,203 |
|
Income tax expense |
|
4,429 |
|
|
|
2,997 |
|
|
|
4,667 |
|
|
|
7,245 |
|
|
|
8,180 |
|
|
|
6,894 |
|
|
|
10,121 |
|
|
|
11,906 |
|
Net (loss) income |
$ |
(83,802 |
) |
|
$ |
(338 |
) |
|
$ |
20,225 |
|
|
$ |
27,383 |
|
|
$ |
28,692 |
|
|
$ |
24,234 |
|
|
$ |
42,193 |
|
|
$ |
37,297 |
|
Per Share Data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Loss) earnings per weighted average common share, basic |
$ |
(2.78 |
) |
|
$ |
(0.01 |
) |
|
$ |
0.68 |
|
|
$ |
0.91 |
|
|
$ |
0.94 |
|
|
$ |
0.78 |
|
|
$ |
1.32 |
|
|
$ |
1.16 |
|
(Loss) earnings per weighted average common share, diluted |
$ |
(2.78 |
) |
|
$ |
(0.01 |
) |
|
$ |
0.67 |
|
|
$ |
0.91 |
|
|
$ |
0.94 |
|
|
$ |
0.78 |
|
|
$ |
1.32 |
|
|
$ |
1.16 |
|
Weighted average common shares outstanding, basic |
|
30,185,609 |
|
|
|
30,068,173 |
|
|
|
29,925,557 |
|
|
|
29,910,218 |
|
|
|
30,454,766 |
|
|
|
31,109,267 |
|
|
|
31,819,631 |
|
|
|
32,084,464 |
|
Weighted average common shares outstanding, diluted |
|
30,185,609 |
|
|
|
30,068,173 |
|
|
|
29,966,962 |
|
|
|
29,944,692 |
|
|
|
30,505,468 |
|
|
|
31,180,346 |
|
|
|
31,898,619 |
|
|
|
32,155,678 |
|
Actual shares outstanding at period end |
|
30,180,482 |
|
|
|
30,185,732 |
|
|
|
29,925,612 |
|
|
|
29,917,982 |
|
|
|
29,912,082 |
|
|
|
31,111,647 |
|
|
|
31,346,903 |
|
|
|
32,082,321 |
|
Book value per common share at period end |
$ |
38.75 |
|
|
$ |
41.72 |
|
|
$ |
42.58 |
|
|
$ |
40.64 |
|
|
$ |
40.78 |
|
|
$ |
39.92 |
|
|
$ |
39.18 |
|
|
$ |
38.02 |
|
Tangible book value per common share at period end
(1) |
$ |
38.74 |
|
|
$ |
38.26 |
|
|
$ |
39.08 |
|
|
$ |
37.12 |
|
|
$ |
37.29 |
|
|
$ |
36.57 |
|
|
$ |
35.86 |
|
|
$ |
34.77 |
|
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 |
(2.73)% |
|
(0.01)% |
|
|
0.65 |
% |
|
|
0.91 |
% |
|
|
0.96 |
% |
|
|
0.86 |
% |
|
|
1.49 |
% |
|
|
1.29 |
% |
Return on average common equity |
(26.67)% |
|
(0.11)% |
|
|
6.48 |
% |
|
|
8.80 |
% |
|
|
9.24 |
% |
|
|
7.92 |
% |
|
|
13.57 |
% |
|
|
11.64 |
% |
Return on average tangible common equity (1) |
(28.96)% |
|
(0.11)% |
|
|
7.08 |
% |
|
|
9.61 |
% |
|
|
10.08 |
% |
|
|
8.65 |
% |
|
|
14.82 |
% |
|
|
12.67 |
% |
Net interest margin |
|
2.40 |
% |
|
|
2.43 |
% |
|
|
2.45 |
% |
|
|
2.43 |
% |
|
|
2.49 |
% |
|
|
2.77 |
% |
|
|
3.14 |
% |
|
|
3.02 |
% |
Efficiency ratio (2) |
|
191.0 |
% |
|
|
51.1 |
% |
|
|
48.9 |
% |
|
|
48.8 |
% |
|
|
47.2 |
% |
|
|
51.6 |
% |
|
|
42.8 |
% |
|
|
40.6 |
% |
Other Ratios: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for credit losses to total loans
(3) |
|
1.33 |
% |
|
|
1.25 |
% |
|
|
1.08 |
% |
|
|
1.05 |
% |
|
|
1.00 |
% |
|
|
1.01 |
% |
|
|
0.97 |
% |
|
|
1.04 |
% |
Allowance for credit losses to total nonperforming loans |
|
110 |
% |
|
|
109 |
% |
|
|
131 |
% |
|
|
119 |
% |
|
|
268 |
% |
|
|
1,160 |
% |
|
|
1,151 |
% |
|
|
997 |
% |
Nonperforming assets to total assets |
|
0.88 |
% |
|
|
0.79 |
% |
|
|
0.57 |
% |
|
|
0.64 |
% |
|
|
0.28 |
% |
|
|
0.08 |
% |
|
|
0.08 |
% |
|
|
0.09 |
% |
Net charge-offs (recoveries) (annualized) to average total loans
(3) |
|
0.11 |
% |
|
|
1.07 |
% |
|
|
0.60 |
% |
|
|
0.02 |
% |
|
|
0.29 |
% |
|
|
0.05 |
% |
|
|
0.05 |
% |
|
|
— |
% |
Tier 1 capital (to average assets) |
|
10.58 |
% |
|
|
10.26 |
% |
|
|
10.73 |
% |
|
|
10.96 |
% |
|
|
10.84 |
% |
|
|
11.42 |
% |
|
|
11.63 |
% |
|
|
11.55 |
% |
Total capital (to risk weighted assets) |
|
15.07 |
% |
|
|
14.87 |
% |
|
|
14.79 |
% |
|
|
14.54 |
% |
|
|
14.51 |
% |
|
|
14.74 |
% |
|
|
14.94 |
% |
|
|
15.60 |
% |
Common equity tier 1 capital (to risk weighted assets) |
|
13.92 |
% |
|
|
13.80 |
% |
|
|
13.90 |
% |
|
|
13.68 |
% |
|
|
13.55 |
% |
|
|
13.75 |
% |
|
|
14.03 |
% |
|
|
14.64 |
% |
Tangible common equity ratio (1) |
|
10.35 |
% |
|
|
10.03 |
% |
|
|
10.12 |
% |
|
|
10.04 |
% |
|
|
10.21 |
% |
|
|
10.36 |
% |
|
|
10.18 |
% |
|
|
10.52 |
% |
Average Balances (in thousands): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets |
$ |
12,361,500 |
|
|
$ |
12,784,470 |
|
|
$ |
12,283,303 |
|
|
$ |
11,942,905 |
|
|
$ |
11,960,111 |
|
|
$ |
11,426,056 |
|
|
$ |
11,255,956 |
|
|
$ |
11,431,110 |
|
Total earning assets |
$ |
11,953,446 |
|
|
$ |
12,365,497 |
|
|
$ |
11,837,722 |
|
|
$ |
11,532,186 |
|
|
$ |
11,546,050 |
|
|
$ |
11,004,817 |
|
|
$ |
10,829,703 |
|
|
$ |
11,030,670 |
|
Total loans (3) |
$ |
8,003,206 |
|
|
$ |
7,988,941 |
|
|
$ |
7,963,074 |
|
|
$ |
7,795,144 |
|
|
$ |
7,790,555 |
|
|
$ |
7,712,023 |
|
|
$ |
7,379,198 |
|
|
$ |
7,282,589 |
|
Total deposits |
$ |
9,225,266 |
|
|
$ |
9,501,661 |
|
|
$ |
9,471,369 |
|
|
$ |
8,946,641 |
|
|
$ |
8,514,938 |
|
|
$ |
8,734,125 |
|
|
$ |
9,524,139 |
|
|
$ |
9,907,497 |
|
Total borrowings |
$ |
1,721,283 |
|
|
$ |
1,832,947 |
|
|
$ |
1,401,917 |
|
|
$ |
1,646,179 |
|
|
$ |
2,102,507 |
|
|
$ |
1,359,463 |
|
|
$ |
411,060 |
|
|
$ |
158,001 |
|
Total shareholders' equity |
$ |
1,263,627 |
|
|
$ |
1,289,656 |
|
|
$ |
1,238,763 |
|
|
$ |
1,235,162 |
|
|
$ |
1,245,647 |
|
|
$ |
1,240,978 |
|
|
$ |
1,233,705 |
|
|
$ |
1,271,753 |
|
(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) |
|
|
|
|
|
|
|
June 30, |
|
March 31, |
|
June 30, |
|
|
2024 |
|
|
|
2024 |
|
|
|
2023 |
|
Tangible common equity |
|
|
|
|
|
Common shareholders' equity |
$ |
1,169,459 |
|
|
$ |
1,259,413 |
|
|
$ |
1,219,766 |
|
Less: Intangible assets |
|
(129 |
) |
|
|
(104,611 |
) |
|
|
(104,220 |
) |
Tangible common equity |
$ |
1,169,330 |
|
|
$ |
1,154,802 |
|
|
$ |
1,115,546 |
|
|
|
|
|
|
|
Tangible common equity ratio |
|
|
|
|
|
Total assets |
$ |
11,302,023 |
|
|
$ |
11,612,648 |
|
|
$ |
11,034,741 |
|
Less: Intangible assets |
|
(129 |
) |
|
|
(104,611 |
) |
|
|
(104,220 |
) |
Tangible assets |
$ |
11,301,894 |
|
|
$ |
11,508,037 |
|
|
$ |
10,930,521 |
|
|
|
|
|
|
|
Tangible common equity ratio |
|
10.35 |
% |
|
|
10.03 |
% |
|
|
10.21 |
% |
|
|
|
|
|
|
Per share calculations |
|
|
|
|
|
Book value per common share |
$ |
38.75 |
|
|
$ |
41.72 |
|
|
$ |
40.78 |
|
Less: Intangible book value per common share |
|
(0.01 |
) |
|
|
(3.46 |
) |
|
|
(3.49 |
) |
Tangible book value per common share |
$ |
38.74 |
|
|
$ |
38.26 |
|
|
$ |
37.29 |
|
|
|
|
|
|
|
Shares outstanding at period end |
|
30,180,482 |
|
|
|
30,185,732 |
|
|
|
29,912,082 |
|
|
|
Three Months Ended |
|
|
June 30, |
|
March 31, |
|
June 30, |
|
|
|
2024 |
|
|
|
2024 |
|
|
|
2023 |
|
Average tangible common equity |
|
|
|
|
|
|
Average common shareholders' equity |
|
$ |
1,263,627 |
|
|
$ |
1,289,656 |
|
|
$ |
1,245,647 |
|
Less: Average intangible assets |
|
|
(99,827 |
) |
|
|
(104,718 |
) |
|
|
(104,224 |
) |
Average tangible common equity |
|
$ |
1,163,800 |
|
|
$ |
1,184,938 |
|
|
$ |
1,141,423 |
|
|
|
|
|
|
|
|
Return on average tangible common equity |
|
|
|
|
|
|
Net (loss) income |
|
$ |
(83,802 |
) |
|
$ |
(338 |
) |
|
$ |
28,692 |
|
Return on average tangible common equity |
|
(28.96)% |
|
(0.11)% |
|
|
10.08 |
% |
|
|
|
|
|
|
|
Net (loss) income |
|
$ |
(83,802 |
) |
|
$ |
(338 |
) |
|
$ |
28,692 |
|
Add back of goodwill impairment |
|
|
104,168 |
|
|
|
— |
|
|
|
— |
|
Operating net (loss) income (Non-GAAP) |
|
$ |
20,366 |
|
|
$ |
(338 |
) |
|
$ |
28,692 |
|
Operating Return on average tangible common equity (Non-GAAP) |
|
|
7.04 |
% |
|
(0.11)% |
|
|
10.08 |
% |
|
|
|
|
|
|
|
Efficiency ratio |
|
|
|
|
|
|
Net interest income |
|
$ |
71,353 |
|
|
$ |
74,698 |
|
|
$ |
71,811 |
|
Noninterest income |
|
|
5,332 |
|
|
|
3,589 |
|
|
|
8,595 |
|
Operating revenue |
|
$ |
76,685 |
|
|
$ |
78,287 |
|
|
$ |
80,406 |
|
Noninterest expense |
|
$ |
146,491 |
|
|
$ |
39,997 |
|
|
$ |
37,978 |
|
Add back of goodwill impairment |
|
|
(104,168 |
) |
|
|
— |
|
|
|
— |
|
Operating Noninterest expense (Non-GAAP) |
|
|
42,323 |
|
|
|
39,997 |
|
|
|
37,978 |
|
|
|
|
|
|
|
|
Efficiency ratio |
|
|
191.03 |
% |
|
|
51.09 |
% |
|
|
47.23 |
% |
Operating Efficiency ratio (Non-GAAP) |
|
|
55.19 |
% |
|
|
51.09 |
% |
|
|
47.23 |
% |
|
|
|
|
|
|
|
Pre-provision net revenue |
|
|
|
|
|
|
Net interest income |
|
$ |
71,353 |
|
|
$ |
74,698 |
|
|
$ |
71,811 |
|
Noninterest income |
|
|
5,332 |
|
|
|
3,589 |
|
|
|
8,595 |
|
Less: Noninterest expense |
|
|
(146,491 |
) |
|
|
(39,997 |
) |
|
|
(37,978 |
) |
Pre-provision net revenue |
|
$ |
(69,806 |
) |
|
$ |
38,290 |
|
|
$ |
42,428 |
|
|
|
|
|
|
|
|
Pre-provision net revenue |
|
$ |
(69,806 |
) |
|
$ |
38,290 |
|
|
$ |
42,428 |
|
Add back of goodwill impairment |
|
$ |
104,168 |
|
|
$ |
— |
|
|
$ |
— |
|
Operating Pre-provision net revenue (Non-GAAP) |
|
$ |
34,362 |
|
|
$ |
38,290 |
|
|
$ |
42,428 |
|
|
|
|
|
|
|
|
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.
|
|
June 30, |
|
March 31, |
|
June 30, |
|
|
|
2024 |
|
|
|
2024 |
|
|
|
2023 |
Net (loss) income |
|
$ |
(83,802 |
) |
|
$ |
(338 |
) |
|
$ |
28,692 |
Add back of goodwill impairment |
|
|
104,168 |
|
|
|
— |
|
|
|
— |
Operating Net (loss) income (Non-GAAP) |
|
$ |
20,366 |
|
|
$ |
(338 |
) |
|
$ |
28,692 |
|
|
|
|
|
|
|
(Loss) earnings per share
(diluted)6 |
|
$ |
(2.78 |
) |
|
$ |
(0.01 |
) |
|
$ |
0.94 |
Add back of goodwill impairment per share (diluted) |
|
|
3.45 |
|
|
|
— |
|
|
|
— |
Operating earnings (loss) per share (diluted) (Non-GAAP) |
|
$ |
0.67 |
|
|
$ |
(0.01 |
) |
|
$ |
0.94 |
|
|
|
|
|
|
|
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 Refer to the 2nd Quarter 2024 Earnings Presentation that
accompanies this release for further detail on the strategic
objectives of the Company.3 Calculated as the ACL attributable to
loans collateralized by performing office properties as a
percentage of total loans.4 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.5 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.6 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. Newell |
240.497.1796 |
For the June 30, 2024 Earnings Presentation,
click http://ml.globenewswire.com/Resource/Download/a6293d92-1ba7-47b2-b4e3-71943e91aa8d.
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