BETHESDA, Md., Jan. 18, 2023 (GLOBE NEWSWIRE) -- Eagle Bancorp, Inc. (the "Company") (NASDAQ: EGBN), the parent company of EagleBank (the "Bank"), today announced net income of $42.2 million for the fourth quarter 2022, compared to net income of $37.3 million for the prior quarter and $41.6 million for the year-ago quarter. Net income (basic and diluted) was $1.32 per share for the fourth quarter 2022, compared to $1.16 per share for the prior quarter and $1.30 per share for the year-ago quarter.

The increase in earnings of $4.9 million from the third quarter of 2022 (the "prior quarter") was primarily attributable to the difference created by moving from a provision to the allowance for credit losses to a reversal from the allowance for credit losses, a lower tax provision and higher net interest income. Partially offsetting these increases in earnings from the prior quarter were higher noninterest expenses.

Full year 2022 net income was $140.9 million, or $4.40 per share (basic) and $4.39 per share (diluted). On a diluted basis, this was a decrease of $1.13 per share compared to $5.52 per share for the prior year. If adjusted to remove the one-time noninterest expense accruals for the previously disclosed settlement agreements and the reduction in noninterest expense accruals associated with compensation of the former CEO/Chairman, adjusted net income, a non-GAAP measure, was $158.8 million, or $4.95 per share (diluted).1 As adjusted, this is a decrease of $0.57 per share, compared to $5.52 per share (diluted) for the prior year.

Fourth Quarter 2022 Highlights

(Dollars in thousands, except per share)As Of or For the Three Months Ended Percent Change
 Dec. 31, Sept. 30, Dec. 31, Q4-22 Q4-22
 2022 2022 2021 vs. Q3-22 vs. Q4-21
Income Statement         
Net income$42,193  $37,297  $41,620  13.1% 1.4%
Net income per diluted share$1.32  $1.16  $1.30  13.8% 1.5%
Dividend per common share$0.45  $0.45  $0.40  —% 12.5%
          
Selected Ratios         
Return on Average Assets 1.49%  1.29%  1.32% —  — 
Return on Average Common Equity 13.57%  11.64%  12.30% —  — 
Return on Average Tangible Common Equity2 14.82%  12.67%  13.35% —  — 
Net interest margin 3.14%  3.02%  2.55% —  — 
Efficiency Ratio3 42.8%  40.6%  44.3% —  — 
          
Balance Sheet         
Assets$11,150,854  $10,713,044  $11,847,310  4.1% (5.9)%
Loans$7,635,632  $7,304,498  $7,065,598  4.5% 8.1%
Loans (excluding PPP loans)3$7,632,376  $7,297,257  $7,014,493  4.6% 8.8%
Deposits$8,713,182  $8,763,350  $9,981,540  (0.6)% (12.7)%
Total Capital (to risk weighted assets) 14.99%  15.60%  15.74% —  — 
          
Per Share         
Book value per share$39.18  $38.02  $42.28  3.1% (7.3)%
Tangible book value per share(2)$35.86  $34.77  $38.97  3.1% (8.0)%
          
Asset quality         
Allowance for credit losses to total loans 0.97%  1.04%  1.06% —  — 
Nonperforming assets ("NPAs") to total assets 0.08%  0.09%  0.26% —  — 
Net charge-off ratio to avg. loans (annualized) 0.05%  —%  0.07% —  — 
                  

CEO Commentary

Susan G. Riel, President and Chief Executive Officer of Eagle Bancorp, Inc. commented, "We ended 2022 on a high note, as we had our best quarter of the year for loan growth, asset quality metrics remained strong and we were active in stock repurchases. Loans at quarter-end were up 4.5% from the prior quarter and pipelines remain strong. Strong asset quality metrics coupled with improvements in the quantitative model led us to once again book a reversal to our reserve for credit losses. And, for our shareholders, during the quarter, we repurchased 738,300 shares of stock with an aggregate value of $33.1 million."

"We once again thank all of our employees for their commitment in serving the needs of our clients and communities. Additionally, we remain committed to a culture of respect, diversity and inclusion in both the workplace and the communities we serve."

Income Statement

(Dollars in thousands)Three Months Ended Percent Change
 December 31, September 30, December 31, Q4-22 Q4-22
 2022 2022 2021 vs. Q3-22 vs. Q4-21
Net interest income$85,600  $83,897  $78,186  2.0% 9.5%
Noninterest income 5,329   5,308   10,574  0.4% (49.6)%
Less: Noninterest expense (38,918)  (36,206)  (39,309) 7.5% (1.0)%
PPNR$52,011  $52,999  $49,451  (1.9)% 5.2%
          
Average Assets$11,255,956  $11,431,110  $12,538,596  (1.5)% (10.2)%
PPNR to Avg. Assets (non-GAAP) 1.83%  1.85%  1.56% —  — 

Balance Sheet

       Percent Change
(Dollars in thousands)December 31, September 30, December 31, Q4-22 Q4-22
 2022
 2022
 2021
 vs. Q3-22 vs. Q4-21
Total loans, excluding loans held for sale (GAAP)$7,635,632  $7,304,498  $7,065,598  4.5% 8.1%
Less: PPP loans (non-GAAP) (3,256)  (7,241)  (51,105)    
Total loans, excluding loans held for sale and PPP loans (non-GAAP)$7,632,376  $7,297,257  $7,014,493  4.6% 8.8%
 For the Company
 December 31, September 30, December 31,
 202210 2022 2021
Regulatory Ratios     
Total Capital (to risk weighted assets)14.99% 15.60% 15.74%
Tier 1 Capital (to risk weighted assets)14.23% 14.64% 14.63%
Common Equity Tier 1 (to risk weighted assets)14.23% 14.64% 14.63%
Tier 1 Capital (to average assets)11.78% 11.55% 10.19%
      
Common Capital Ratios     
Common Equity Ratio11.02% 11.39% 11.40%
Tangible Common Equity Ratio1110.18% 10.52% 10.60%

Additional financial information: The financial information that follows provides more detail on the Company’s financial performance for the three months ended December 31, 2022 as compared to the three months ended September 30, 2022 and December 31, 2021 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, 2021, quarterly report on Form 10-Q for the quarters ended March 31, 2022, June 30, 2022 and September 30, 2022 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 sixteen banking offices and five 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 fourth quarter 2022 financial results on Thursday, January 19, 2023 at 10:00 a.m. eastern time. The public is invited to listen to this registering at the link https://register.vevent.com/register/BI395df276641b44e4aee3848563fb62eb or by accessing the call on the Company’s website, www.EagleBankCorp.com. A replay of the conference call will be available on the Company’s website through February 2, 2023.

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 ongoing challenges and uncertainties relating to the continued evolution of COVID-19, including on our credit quality, asset and loan growth and broader business operations), volatility in interest rates and interest rate policy, the current high inflationary environment competitive factors, and other conditions 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, 2021 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.

__________________________________
1 A reconciliation between this non-GAAP financial measure and the nearest GAAP measure is provided in the tables that accompany this document. Aggregate comprised of settlement agreements of $22.9 million and noninterest expense accrual reductions of $5.0 million.
2 A reconciliation between this non-GAAP financial measure and the nearest GAAP measure is provided in the tables that accompany this document.
3 A reconciliation between this non-GAAP financial measure and the nearest GAAP measure is provided in the table under the subsection, "Total Loans."
4 A reconciliation between this non-GAAP financial measure and the nearest GAAP measure is provided in the table below. An explanation of the reconciliations and the reasons why the Company believes this non-GAAP financial measure to be important for investors is included with the reconciliation tables accompanying this document.
5 Periods of less than one year are annualized.
6 A reconciliation between this non-GAAP financial measure and the nearest GAAP measure is provided in the tables that accompany this document.
7 A reconciliation between this non-GAAP financial measure and the nearest GAAP measure is provided in the following table. An explanation of the reconciliations and the reasons why the Company believes this non-GAAP financial measure to be important for investors is included with the reconciliation tables accompanying this document.
8 On an annualized basis.
9 A reconciliation of non-GAAP financial measures to the nearest GAAP measure is provided in the tables that accompany this document.
10Capital ratios for December 31, 2022 are subject to final filings with the Federal Reserve.
11A reconciliation of non-GAAP financial measures to the nearest GAAP measure is provided in the tables that accompany this document.

 
Eagle Bancorp, Inc.
Consolidated Financial Highlights (Unaudited)
(Dollars in thousands, except per share data)
      
 Three Months Ended
 December 31, September 30, December 31,
 2022 2022 2021
Income Statements:     
Total interest income$129,130  $111,527  $86,230 
Total interest expense 43,530   27,630   8,044 
Net interest income 85,600   83,897   78,186 
Provision for (reversal of) credit losses (464)  3,022   (6,412)
Provision for (reversal of) unfunded commitments 161   774   (632)
Net interest income after provision for credit losses 85,903   80,101   85,230 
Noninterest income (before investment gain) 5,326   5,304   9,668 
Net gain on sale of investment securities 3   4   906 
Total noninterest income 5,329   5,308   10,574 
Total noninterest expense 38,918   36,206   39,309 
Income before income tax expense 52,314   49,203   56,495 
Income tax expense 10,121   11,906   14,875 
Net income$42,193  $37,297  $41,620 
      
Per Share Data:     
Earnings per weighted average common share, basic$1.32  $1.16  $1.30 
Earnings per weighted average common share, diluted$1.32  $1.16  $1.30 
Weighted average common shares outstanding, basic 31,819,631   32,084,464   31,950,320 
Weighted average common shares outstanding, diluted 31,898,619   32,155,678   32,030,998 
Actual shares outstanding at period end 31,346,903   32,082,321   31,950,092 
Book value per common share at period end$39.18  $38.02  $42.28 
Tangible book value per common share at period end(1)$35.86  $34.77  $38.97 
Dividend per common share$0.45  $0.45  $0.40 
      
Performance Ratios (annualized):     
Return on average assets 1.49%  1.29%  1.32%
Return on average common equity 13.57%  11.64%  12.30%
Return on average tangible common equity(1) 14.82%  12.67%  13.35%
Net interest margin 3.14%  3.02%  2.55%
Efficiency ratio(2) 42.8%  40.6%  44.3%
      
Other Ratios:     
Allowance for credit losses to total loans(3) 0.97%  1.04%  1.06%
Allowance for credit losses to total nonperforming loans 1,151%  997%  257%
Nonperforming loans to total loans(3) 0.08%  0.10%  0.41%
Nonperforming assets to total assets 0.08%  0.09%  0.26%
Net charge-off (annualized) to average total loans(3) 0.05%  —%  0.07%
Average noninterest bearing deposits to average deposits 40.9%  38.4%  36.3%
Yield on loans(3) 5.87%  5.10%  4.45%
Cost of funds 1.59%  0.99%  0.26%
            


 
Eagle Bancorp, Inc.
Consolidated Financial Highlights (Continued) (Unaudited)
(Dollars in thousands)
      
 Three Months Ended
 December 31, September 30, December 31,
 2022 2022 2021
Capital Ratios     
Tier 1 capital (to average assets) 11.78%  11.55%  10.19%
Total capital (to risk weighted assets) 14.99%  15.60%  15.74%
Common equity tier 1 capital (to risk weighted assets) 14.23%  14.64%  14.63%
Common equity to total assets 11.02%  11.39%  11.40%
Tangible common equity ratio(1) 10.18%  10.52%  10.60%
      
Loan Balances - Period End:     
Commercial and Industrial$1,487,349  $1,415,998  $1,354,317 
PPP loans 3,256   7,241   51,105 
Commercial real estate - income producing 3,919,941   3,668,720   3,385,298 
Commercial real estate - owner occupied 1,110,325   1,091,283   1,087,776 
1-4 Family mortgage 73,001   71,731   73,966 
Construction - commercial and residential 877,755   858,100   896,319 
Construction - C&I (owner occupied) 110,479   139,238   159,579 
Home equity 51,782   51,396   55,811 
Other consumer 1,744   791   1,427 
Total loans$7,635,632  $7,304,498  $7,065,598 
      
Average Balances:     
Total assets$11,255,956  $11,431,110  $12,538,596 
Total earning assets$10,829,703  $11,030,670  $12,180,872 
Total loans(3)$7,379,198  $7,282,589  $6,890,414 
Total deposits$9,524,139  $9,907,497  $10,670,205 
Total borrowings$411,060  $158,001  $402,393 
Total shareholders’ equity$1,233,705  $1,271,753  $1,342,525 
      
Asset Quality:     
Net charge-off (recovery)$896  $(57) $1,165 
Nonperforming loans$6,469  $7,602  $29,208 
Other real estate owned$1,962  $1,962  $1,635 
Nonperforming assets$8,431  $9,564  $30,843 

(1) A reconciliation of non-GAAP financial measures to the nearest non-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. The efficiency ratio measures a bank’s overhead as a percentage of its revenue. 
(3) Excludes loans held for sale.

 
GAAP Reconciliation (unaudited)
(dollars in thousands, except per share data)
      
 December 31, September 30, December 31,
 2022 2022 2021
Common shareholders' equity$1,228,321  $1,219,771  $1,350,775 
Less: Intangible assets (104,233)  (104,240)  (105,793)
Tangible common equity$1,124,088  $1,115,531  $1,244,982 
      
Book value per common share$39.18  $38.02  $42.28 
Less: Intangible book value per common share (3.32)  (3.25)  (3.31)
Tangible book value per common share$35.86  $34.77  $38.97 
      
Total assets$11,150,854  $10,713,044  $11,847,310 
Less: Intangible assets (104,233)  (104,240)  (105,793)
Tangible assets$11,046,621  $10,608,804  $11,741,517 
      
Tangible common equity ratio 10.18%  10.52%  10.60%
      
Allowance for credit losses$(74,444) $(75,767) $(74,965)
      
Total loans, excluding loans held for sale$7,635,632  $7,304,498  $7,065,598 
Less: PPP loans (non-GAAP) (3,256)  (7,241)  (51,105)
Total loans excluding PPP loans (non-GAAP)$7,632,376  $7,297,257  $7,014,493 
      
Allowance for credit losses:     
As a % of total loans (GAAP) 0.97%  1.04%  1.06%
As a % of total loans excl. PPP loans (non-GAAP) 0.98%  1.04%  1.07%
      
 Three Months Ended
 December 31, September 30, December 31,
 2022 2022 2021
Average common shareholders' equity$1,233,705  $1,271,753  $1,342,525 
Less: Average intangible assets (104,238)  (104,253)  (105,565)
Average tangible common equity$1,129,467  $1,167,500  $1,236,960 
      
Net Income$42,193  $37,297  $41,620 
Return on average tangible common equity(1) 14.82%  12.67%  13.35%
      
Net interest income$85,600  $83,897  $78,186 
Noninterest income 5,329   5,308   10,574 
Operating revenue$90,929  $89,205  $88,760 
Noninterest expense$38,918  $36,206  $39,309 
Efficiency ratio 42.8%  40.6%  44.3%

(1) Periods of less than a year are annualized.

 
GAAP Reconciliation (unaudited)
(dollars in thousands, except per share data)
    
 For the Year Ended
 December 31, December 31,
 2022 2021
Net income$140,930  $176,691 
Reversal: Accrual reduction(1) (5,018)  — 
Reversal: Penalty, disgorgement & prejudgment interest(2) 22,874   — 
Adjusted net income (non-GAAP)$158,786  $176,691 
    
Earnings per share (diluted)$4.39  $5.52 
Reversal: Accrual reduction(1) (0.15)  — 
Reversal: Penalty, disgorgement & prejudgment interest(2) 0.71   — 
Adjusted earnings per share (diluted) (non-GAAP)$4.95  $5.52 
    
Weighted average common shares outstanding, diluted 32,078,070   32,003,090 

(1) Reversal of accrual reduction for non-tax deductible expenses of $5.0 million related to share-based compensation awards and deferred compensation for the Company's former CEO and Chairman, recorded in the first quarter of 2022.
(2) Reversal of accrual for non-tax deductible expenses of $22.9 million in connection with the Company's agreements in principal with the SEC and FRB to resolve the previously disclosed investigations with respect to the Company, recorded in the second quarter of 2022.

GAAP Reconciliation (unaudited) - Continued

Tangible common equity to tangible assets (the "tangible common equity ratio"), tangible book value per common share, and the 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 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 above table provides reconciliation of these financial measures defined by GAAP with non-GAAP financial measures.

Pre-provision net revenue is a non-GAAP financial measure derived from GAAP based amounts. The Company calculates PPNR by subtracting noninterest expenses from the sum of net interest income and noninterest income. PPNR to Average Assets is calculated by dividing the PPNR amount by average assets to obtain a percentage. 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. The table in the "Income Statement" section of this earnings release provides a reconciliation of PPNR and PPNR to Average Assets to the nearest GAAP measure.

Total loans excluding PPP loans is a non-GAAP financial measure derived from GAAP based amounts. The Company calculates Total loans excluding PPP loans by subtracting the total amount of outstanding PPP loans from the amount of total loans, excluding loans held for sale. The Company considers this information important to shareholders because it allows investors to see changes in the Company's loan growth without the impact of the PPP loans, which were loan products specific to relief efforts in response to the COVID-19 pandemic. Excluding the impact of PPP loans also allows investors to better compare the Company's loan growth to historical periods prior to the pandemic. The table in the "Balance Sheet" section of this earnings release and the table above provides a reconciliation of total loans excluding PPP loans to the nearest GAAP measure.

Efficiency ratio is a non-GAAP measure calculated by dividing GAAP non-interest expense by the sum of GAAP net interest income and GAAP non-interest (loss) income. The Company believes that reporting the non-GAAP efficiency ratio more closely measures its effectiveness of controlling operational activities. The table above shows the calculation of the efficiency ratio from these GAAP measures.

Adjusted net income and adjusted earnings per share (diluted) are non-GAAP financial measures derived from GAAP based amounts.

 
Eagle Bancorp, Inc.
Consolidated Balance Sheets (Unaudited)
(Dollars in thousands, except per share data)
 December 31, September 30, December 31,
Assets2022 2022 2021
Cash and due from banks$12,655  $27,235  $12,886 
Federal funds sold 33,927   69,809   20,391 
Interest-bearing deposits with banks and other short-term investments 265,272   47,131   1,680,945 
Investment securities available-for-sale at fair value (amortized cost of $1,803,898 , $1,873,872, and $2,642,667, net of allowance for credit losses of $17, $18 and $620 as of December 31, 2022, September 30, 2022 and December 31, 2021, respectively) 1,598,666   1,649,753   2,623,408 
Investment securities held-to-maturity (fair value of $1,094,140, $989,001 and $0, net of allowance for credit losses of $766, $802 and $0, as of December 31, 2022, September 30, 2022 and December 31, 2021, respectively) 1,093,374   1,114,084   — 
Federal Reserve and Federal Home Loan Bank stock 65,067   42,311   34,153 
Loans held for sale 6,734   9,387   47,218 
Loans 7,635,632   7,304,498   7,065,598 
Less allowance for credit losses (74,444)  (75,767)  (74,965)
Loans, net 7,561,188   7,228,731   6,990,633 
Premises and equipment, net 13,475   13,684   14,557 
Operating lease right-of-use assets 24,544   26,022   30,555 
Deferred income taxes 96,567   112,904   43,174 
Bank-owned life insurance 110,998   110,678   108,789 
Goodwill and other intangible assets, net 104,233   104,240   105,793 
Other real estate owned 1,962   1,962   1,635 
Other assets 162,192   155,113   133,173 
Total assets$11,150,854  $10,713,044  $11,847,310 
Liabilities and Shareholders' Equity     
Deposits:     
Noninterest-bearing demand$3,150,751  $2,928,774  $3,277,956 
Interest-bearing transaction 1,138,235   964,567   777,255 
Savings and money market 3,640,697   4,220,768   5,197,247 
Time 783,499   649,241   729,082 
Total deposits 8,713,182   8,763,350   9,981,540 
Customer repurchase agreements 35,100   21,465   23,918 
Other short-term borrowings 975,001   515,000   300,000 
Long-term borrowings 69,794   69,763   69,670 
Operating lease liabilities 29,267   30,837   35,501 
Reserve for unfunded commitments 5,857   5,696   4,379 
Other liabilities 94,332   87,162   81,527 
Total liabilities 9,922,533   9,493,273   10,496,535 
Shareholders' Equity     
Common stock, par value $.01 per share; shares authorized 100,000,000, shares issued and outstanding 31,346,903, 32,082,321, and 31,950,092 respectively 310   318   316 
Additional paid-in capital 412,303   442,880   434,640 
Retained earnings 1,015,215   987,212   930,061 
Accumulated other comprehensive loss (199,507)  (210,639)  (14,242)
Total Shareholders' Equity 1,228,321   1,219,771   1,350,775 
Total Liabilities and Shareholders' Equity$11,150,854  $10,713,044  $11,847,310 
            


 
Eagle Bancorp, Inc.
Consolidated Statements of Income (Unaudited)
(Dollars in thousands, except per share data)
 Three Months Ended Year Ended
 Dec. 31, Sept. 30, Dec. 31, Dec. 31, Dec. 31,
 2022 2022
 2021 2022 2021
Interest Income         
Interest and fees on loans$109,251  $93,744  $77,625  $358,967  $337,749 
Interest and dividends on investment securities 13,591   13,463   7,327   51,481   23,205 
Interest on balances with other banks and short-term invest. 5,696   4,100   1,272   13,304   3,511 
Interest on federal funds sold 592   220   6   861   31 
Total interest income 129,130   111,527   86,230   424,613   364,496 
          
Interest Expense         
Interest on deposits 39,239   26,125   6,484   83,261   27,772 
Interest on customer repurchase agreements 266   55   17   356   51 
Interest on other short-term borrowings 2,988   412   506   3,980   2,008 
Interest on long-term borrowings 1,037   1,038   1,037   4,149   10,151 
Total interest expense 43,530   27,630   8,044   91,746   39,982 
Net Interest Income 85,600   83,897   78,186   332,867   324,514 
Provision for (Reversal of) Credit Losses (464)  3,022   (6,412)  266   (20,821)
Provision for (Reversal of) Unfunded Commitments 161   774   (632)  1,477   (1,119)
Net Interest Income After Provision For Credit Losses 85,903   80,101   85,230   331,124   346,454 
          
Noninterest Income         
Service charges on deposits 1,429   1,339   1,259   5,399   4,562 
Gain on sale of loans 534   821   2,057   3,702   14,045 
Net gain (loss) on sale of investment securities 3   4   906   (169)  2,964 
Incr. in the cash surrender value of bank-owned life insurance 658   631   630   2,547   2,059 
Other income 2,705   2,513   5,722   12,175   16,755 
Total noninterest income 5,329   5,308   10,574   23,654   40,385 
          
Noninterest Expense         
Salaries and employee benefits 23,691   21,538   24,608   84,053   88,398 
Premises and equipment expenses 3,292   3,275   3,755   13,218   14,876 
Marketing and advertising 1,290   1,181   1,286   4,721   4,165 
Data processing 3,117   3,445   3,258   12,171   11,709 
Legal, accounting and professional fees 2,553   2,332   2,987   8,583   11,510 
FDIC insurance 1,718   1,287   311   4,969   5,897 
Other expenses 3,257   3,148   3,104   37,383   12,610 
Total noninterest expense 38,918   36,206   39,309   165,098   149,165 
Income Before Income Tax Expense 52,314   49,203   56,495   189,680   237,674 
Income Tax Expense 10,121   11,906   14,875   48,750   60,983 
Net Income$42,193  $37,297  $41,620  $140,930  $176,691 
          
Earnings Per Common Share         
Basic$1.32  $1.16  $1.30  $4.40  $5.53 
Diluted$1.32  $1.16  $1.30  $4.39  $5.52 
                    


 
Eagle Bancorp, Inc.
Consolidated Average Balances, Interest Yields And Rates vs. Prior Quarter (Unaudited)
(Dollars in thousands)
            
 Three Months Ended
 December 31, 2022 September 30, 2022
 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$600,653  $5,696  3.76% $771,063  $4,100  2.11%
Loans held for sale(1) 6,868   102  5.94%  11,586   150  5.18%
Loans(1) (2) 7,379,198   109,149  5.87%  7,282,589   93,594  5.10%
Investment securities available-for-sale(2) 1,658,228   7,753  1.85%  1,782,859   7,587  1.69%
Investment securities held-to-maturity(2) 1,105,209   5,838  2.10%  1,128,943   5,876  2.06%
Federal funds sold 79,547   592  2.95%  53,630   220  1.63%
Total interest earning assets 10,829,703  $129,130  4.73%  11,030,670  $111,527  4.01%
Total noninterest earning assets 501,977       475,581     
Less: allowance for credit losses 75,724       75,141     
Total noninterest earning assets 426,253       400,440     
TOTAL ASSETS$11,255,956      $11,431,110     
            
LIABILITIES AND SHAREHOLDERS' EQUITY           
Interest bearing liabilities:           
Interest bearing transaction$996,951  $3,877  1.54% $960,970  $1,891  0.78%
Savings and money market 3,963,022   31,571  3.16%  4,504,216   21,711  1.91%
Time deposits 667,202   3,791  2.25%  633,241   2,523  1.58%
Total interest bearing deposits 5,627,175   39,239  2.77%  6,098,427   26,125  1.70%
Customer repurchase agreements 45,521   266  2.32%  26,546   55  0.82%
Other short-term borrowings 295,756   2,988  4.04%  61,703   412  2.67%
Long-term borrowings 69,783   1,037  5.94%  69,752   1,038  5.95%
Total interest bearing liabilities 6,038,235  $43,530  2.86%  6,256,428  $27,630  1.75%
Noninterest bearing liabilities:           
Noninterest bearing demand 3,896,964       3,809,070     
Other liabilities 87,052       93,859     
Total noninterest bearing liabilities 3,984,016       3,902,929     
Shareholders’ equity 1,233,705       1,271,753     
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY$11,255,956      $11,431,110     
Net interest income  $85,600      $83,897   
            
Net interest spread    1.87%     2.26%
Net interest margin    3.14%     3.02%
Cost of funds    1.59%     0.99%

(1) Loans placed on nonaccrual status are included in average balances. Net loan fees and late charges included in interest income on loans totaled $3.8 million and $3.4 million for the three months ended December 31, 2022 and September 30, 2022, 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 December 31,
 2022
 2021
 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$600,653  $5,696  3.76% $3,124,657  $1,272  0.16%
Loans held for sale(1) 6,868   102  5.94%  46,647   342  2.93%
Loans(1) (2) 7,379,198   109,149  5.87%  6,890,414   77,283  4.45%
Investment securities available-for-sale(2) 1,658,228   7,753  1.85%  2,088,907   7,327  1.39%
Investment securities held-to-maturity(2) 1,105,209   5,838  2.10%  —   —  —%
Federal funds sold 79,547   592  2.95%  30,247   6  0.08%
Total interest earning assets 10,829,703  $129,130  4.73%  12,180,872  $86,230  2.81%
Total noninterest earning assets 501,977       440,613     
Less: allowance for credit losses 75,724       82,889     
Total noninterest earning assets 426,253       357,724     
TOTAL ASSETS$11,255,956      $12,538,596     
            
LIABILITIES AND SHAREHOLDERS' EQUITY           
Interest bearing liabilities:           
Interest bearing transaction$996,951  $3,877  1.54% $803,027  $392  0.19%
Savings and money market 3,963,022   31,571  3.16%  5,257,520   3,688  0.28%
Time deposits 667,202   3,791  2.25%  735,254   2,404  1.30%
Total interest bearing deposits 5,627,175   39,239  2.77%  6,795,801   6,484  0.38%
Customer repurchase agreements 45,521   266  2.32%  32,730   17  0.21%
Other short-term borrowings 295,756   2,988  4.04%  300,003   506  0.67%
Long-term borrowings 69,783   1,037  5.94%  69,660   1,037  5.96%
Total interest bearing liabilities 6,038,235  $43,530  2.86%  7,198,194  $8,044  0.44%
Noninterest bearing liabilities:           
Noninterest bearing demand 3,896,964       3,874,405     
Other liabilities 87,052       123,472     
Total noninterest bearing liabilities 3,984,016       3,997,877     
Shareholders’ equity 1,233,705       1,342,525     
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY$11,255,956      $12,538,596     
Net interest income  $85,600      $78,186   
            
Net interest spread    1.87%     2.37%
Net interest margin    3.14%     2.55%
Cost of funds    1.59%     0.26%

(1) Loans placed on nonaccrual status are included in average balances. Net loan fees and late charges included in interest income on loans totaled $3.8 million and $4.3 million for the three months ended December 31, 2022 and December 31, 2021, respectively.
(2) Interest and fees on loans and investments exclude tax equivalent adjustments.

 
Eagle Bancorp, Inc.
Statements of Income and Highlights Quarterly Trends (Unaudited)
(Dollars in thousands, except per share data)
                
 Three Months Ended
 December 31, September 30, June 30, March 31, December 31, September 30, June 30, March 31,
Income Statements:2022 2022 2022 2022 2021 2021 2021 2021
Total interest income$129,130  $111,527  $95,635  $88,321  $86,230  $89,152  $94,920  $94,194 
Total interest expense 43,530   27,630   12,717   7,869   8,044   10,107   10,288   11,543 
Net interest income 85,600   83,897   82,918   80,452   78,186   79,045   84,632   82,651 
Provision for (reversal of) credit losses (464)  3,022   495   (2,787)  (6,412)  (8,203)  (3,856)  (2,350)
Provision for (reversal of) unfunded commitments 161   774   553   (11)  (632)  716   (761)  (442)
Net interest income after provision for credit losses 85,903   80,101   81,870   83,250   85,230   86,532   89,249   85,443 
Noninterest income before investment gain (loss) 5,326   5,304   5,715   7,478   9,668   6,780   10,607   10,366 
Net gain (loss) on sale of investment securities 3   4   (151)  (25)  906   1,519   318   221 
Total noninterest income 5,329   5,308   5,564   7,453   10,574   8,299   10,925   10,587 
Salaries and employee benefits 23,691   21,538   21,805   17,019   24,608   22,145   19,876   21,769 
Premises and equipment 3,292   3,275   3,523   3,128   3,755   3,859   3,644   3,618 
Marketing and advertising 1,290   1,181   1,186   1,064   1,286   1,013   980   886 
Other expenses 10,645   10,212   32,448   9,801   9,660   9,358   10,994   11,714 
Total noninterest expense 38,918   36,206   58,962   31,012   39,309   36,375   35,494   37,987 
Income before income tax expense 52,314   49,203   28,472   59,691   56,495   58,456   64,680   58,043 
Income tax expense 10,121   11,906   12,776   13,947   14,875   14,847   16,687   14,574 
Net income$42,193  $37,297  $15,696  $45,744  $41,620  $43,609  $47,993  $43,469 
Per Share Data: