Eagle Bancorp, Inc. Announces Fourth Quarter 2024 Results and Cash Dividend

BETHESDA, Md., Jan. 22, 2025 (GLOBE NEWSWIRE) -- 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 fourth quarter ended December 31, 2024. Eagle reported net income of $15.3 million or $0.50 per diluted share for the fourth quarter 2024, compared to net income of $21.8 million or $0.72 per diluted share during the third quarter. Pre-provision net revenue ("PPNR")1 in the fourth quarter was $30.3 million compared to $35.2 million for the prior quarter. The $6.5 million decrease in net income from the prior quarter is attributed to a decline in noninterest income of $2.9 million associated with higher swap fees collected in the third quarter that did not reoccur in the fourth quarter; $2.0 million increase in provision expense; $1.0 million decrease in net interest income, and a $0.9 million increase in noninterest expenses. Additionally, the Company is announcing today a cash dividend in the amount of $0.165 per share. The cash dividend will be payable on February 21, 2025 to shareholders of record on February 7, 2025. "Last year was a transformative one for our Company, marked by significant changes and progress. We welcomed new members to senior management and strengthened our C&I team. We took steps to reduce uncertainties by replacing maturing subordinated debt, recalibrated our common stock dividend, and enhanced transparency around our commercial real estate portfolio," said Susan G. Riel, President and Chief Executive Officer of the Company. "Despite these foundational efforts, challenges remain. Asset quality fell short of expectations and valuation risk in our office portfolio continues to be a key concern. While we are proud of the groundwork laid last year, we are eager to build on these efforts and drive meaningful improvements in our profitability," added Ms. Riel. Eric R. Newell, Chief Financial Officer of the Company said, "We successfully utilized excess liquidity and deposit growth to fully repay the $1 billion of Bank Term Funding Program debt that was outstanding at September 30. By prioritizing more effective use of wholesale funding and passing through short-term rate reductions to non-maturity deposits, we expect further benefits to funding costs in the first half of 2025. While non-accruals increased due to a $74.9 million commercial real estate office loan that was previously special mention and subsequently moved to non-accrual following a new appraisal, total classified and criticized loans declined last quarter for the first time since we began seeing migration tied to elevated office portfolio risk. The reserve for credit losses, with coverage as a percentage of total loans at 1.44%, increased 4 basis points from last quarter due in large part to the migration to nonaccrual of the previously special mention performing office loan. Our capital position remains strong, with common equity tier one capital increasing to 14.6% and our tangible common equity1 ratio exceeding 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." Fourth Quarter 2024 Highlights The Company announces today a common stock dividend of $0.165 per share.The ACL as a percentage of total loans was 1.44% at quarter-end; up from 1.40% at the prior quarter-end. Performing office coverage2 was 3.81% at quarter-end; as compared to 4.55% at the prior quarter-end.Nonperforming assets increased $74.3 million to $211.5 million as of December 31, 2024 and were 1.90% of total assets compared to 1.22% as of September 30, 2024. Inflows to non-performing loans in the quarter totaled $75.3 million offset by $1.0 million of outflows. The inflows were predominantly associated with the $74.9 million commercial real estate office loan mentioned earlier.Substandard loans increased $34.7 million to $426.0 million and special mention loans decreased $120.2 million to $244.8 million at December 31, 2024.Annualized quarterly net charge-offs for the fourth quarter were 0.48% compared to 0.26% for the third quarter 2024.The net interest margin ("NIM") decreased to 2.29% for the fourth quarter 2024, compared to 2.37% for the prior quarter, primarily due to an increase in the average mix of interest-bearing deposits at the Federal Reserve Bank in the fourth quarter versus 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 11.02%, 11.02%, and 14.63%, respectively.Total estimated insured deposits at quarter-end were $7.0 billion, or 76.4% of deposits, an increase from the third quarter total of 74.5% of deposits.Total on-balance sheet liquidity and available capacity was $4.6 billion at quarter-end consistent with September 30, 2024. Income Statement Net interest income was $70.8 million for the fourth quarter 2024, compared to $71.8 million for the prior quarter. The decrease in net interest income was primarily driven by $965 thousand interest income not recognized on a loan that migrated to nonaccrual during the quarter. While interest income declined due to lower rates on loans, there was a similar decline in interest expense from a reduction in rates on non-maturity deposits and a reduction in borrowings.Provision for credit losses was $12.1 million for the fourth quarter 2024, compared to $10.1 million for the prior quarter. The increase in the provision for the quarter is attributed predominately to a specific reserve established for the $74.9 million commercial real estate office loan mentioned earlier. Reserve for unfunded commitments was a reversal of $1.6 million due primarily to lower unfunded commitments in our construction portfolio. This compared to a reversal for unfunded commitments in the prior quarter of $1.6 million.Noninterest income was $4.1 million for the fourth quarter 2024, compared to $7.0 million for the prior quarter. The primary driver for the decrease was lower swap fee income.Noninterest expense was $44.5 million for the fourth quarter 2024, compared to $43.6 million for the prior quarter. The increase over the comparative quarters was primarily due to increased FDIC insurance expense. Loans and Funding Total loans were $7.9 billion at December 31, 2024, down 0.4% from the prior quarter-end. The decrease in total loans was driven by a reduction in income producing commercial real estate loans from the prior quarter-end, partially offset by an increase in commercial and industrial loans and increased fundings of ongoing construction projects for commercial and residential properties. At December 31, 2024, income-producing commercial real estate loans secured by office properties other than owner-occupied properties were 10.9% of the total loan portfolio, up from 10.8% at the prior quarter-end. Total deposits at quarter-end were $9.1 billion, up $590.2 million, or 6.9%, from the prior quarter-end. The increase was primarily attributable to an increase in interest-bearing transaction and savings and money market accounts. Period end deposits have increased $323.0 million when compared to prior year comparable period end of December 31, 2023.Other short-term borrowings were $0.5 billion at December 31, 2024, down 60.5% from the prior quarter-end as BTFP borrowings were paid off with increased cash from deposits. Asset Quality Allowance for credit losses was 1.44% of total loans held for investment at December 31, 2024, compared to 1.40% at the prior quarter-end. Performing office coverage was 3.81% at quarter-end; as compared to 4.55% at the prior quarter-end.Net charge-offs were $9.5 million for the quarter compared to $5.3 million in the third quarter of 2024.Nonperforming assets were $211.5 million at December 31, 2024. NPAs as a percentage of assets were 1.90% at December 31, 2024, compared to 1.22% at the prior quarter-end. At December 31, 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 the previously mentioned $74.9 million commercial real estate office loan moving to non-accrual.Loans 30-89 days past due were $26.8 million at December 31, 2024, compared to $56.3 million at the prior quarter-end. Capital Total shareholders' equity was $1.2 billion at December 31, 2024, up 0.1% from the prior quarter-end. The increase in shareholders' equity of $0.6 million was due to an increase in retained earnings offset by decreased valuations of available-for-sale securities.Book value per share and Tangible book value per share3 was $40.60 and $40.59, down 0.02% 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 December 31, 2024 as compared to the three months ended September 30, 2024 and December 31, 2023, as well as eight quarters of trend data. Persons wishing additional information should refer to the Company's Annual Report on Form 10-K for the year ended December 31, 2023, and other reports filed with the SEC. About Eagle Bancorp: The Company is the holding company for EagleBank, which commenced operations in 1998. The Bank is headquartered in Bethesda, Maryland, and operates through twelve banking offices and four lending offices located in Suburban Maryland, Washington, D.C. and Northern Virginia. The Company focuses on building relationships with businesses, professionals and individuals in its marketplace, and is committed to a culture of respect, diversity, equity and inclusion in both its workplace and the communities in which it operates. Conference call: Eagle Bancorp will host a conference call to discuss its fourth quarter 2024 financial results on Thursday, January 23, 2025 at 10:00 a.m. Eastern Time. The listen-only webcast can be accessed at: https://edge.media-server.com/mmc/p/28kkw3ht/For analysts who wish to participate in the conference call, please register at the following URL: https://register.vevent.com/register/BIa3ebdd33983543bebaf25330a2ac7c31 A replay of the conference call will be available on the Company's website through Thursday, February 6, 2025: 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; inflation levels; 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 December 31, September 30, December 31, 2024 2024 2023 Interest Income Interest and fees on loans$132,943 $139,836 $135,964 Interest and dividends on investment securities$12,307 $12,578 13,142 Interest on balances with other banks and short-term investments$23,045 $21,296 18,230 Interest on federal funds sold 122 103 85 Total interest income$168,417 173,813 167,421 Interest Expense Interest on deposits$83,002 $81,190 78,239 Interest on customer repurchase agreements$294 $332 272 Interest on other short-term borrowings$9,530 $20,448 15,918 Interest on long-term borrowings$4,797 $— — Total interest expense$97,623 $101,970 94,429 Net Interest Income 70,794 71,843 72,992 Provision for Credit Losses$12,132 $10,094 14,490 Provision (Reversal) for Credit Losses for Unfunded Commitments (1,598) (1,593) (594)Net Interest Income After Provision for Credit Losses 60,260 63,342 59,096 Noninterest Income Service charges on deposits$1,744 $1,747 1,688 Gain on sale of loans$— $20 23 Net gain on sale of investment securities$4 $3 3 Increase in cash surrender value of bank-owned life insurance$742 $731 687 Other income$1,577 4,450 493 Total noninterest income 4,067 6,951 2,894 Noninterest Expense Salaries and employee benefits$22,597 $21,675 18,416 Premises and equipment expenses$2,635 $2,794 2,967 Marketing and advertising$1,340 $1,588 1,071 Data processing$3,870 $3,435 3,436 Legal, accounting and professional fees$641 $3,433 2,722 FDIC insurance$9,281 $7,399 4,444 Other expenses$4,168 3,290 4,042 Total noninterest expense 44,532 43,614 37,098 (Loss) Income Before Income Tax Expense 19,795 26,679 24,892 Income Tax Expense$4,505 $4,864 4,667 Net (Loss) Income$15,290 $21,815 $20,225 (Loss) Earnings Per Common Share Basic$0.51 $0.72 $0.68 Diluted$0.50 $0.72 $0.67 Eagle Bancorp, Inc.Consolidated Balance Sheets (Unaudited)(Dollars in thousands, except per share data) December 31, September 30, December 31, 2024 2024 2023 Assets Cash and due from banks$11,882 $16,383 $9,047 Federal funds sold 2,581 9,610 3,740 Interest-bearing deposits with banks and other short-term investments 619,017 584,491 709,897 Investment securities available-for-sale at fair value (amortized cost of $1,408,935, $1,550,038, and $1,668,316 respectively, and allowance for credit losses of $22, $17, and $17, respectively) 1,267,404 1,433,006 1,506,388 Investment securities held-to-maturity at amortized cost, net of allowance for credit losses of $1,306, $1,237, and $1,956 respectively (fair value of $820,381, $868,425, and $901,582 respectively) 938,647 961,925 1,015,737 Federal Reserve and Federal Home Loan Bank stock 51,763 37,728 25,748 Loans 7,934,888 7,970,269 7,968,695 Less: allowance for credit losses (114,390) (111,867) (85,940)Loans, net 7,820,498 7,858,402 7,882,755 Premises and equipment, net 7,694 8,291 10,189 Operating lease right-of-use assets 18,494 15,167 19,129 Deferred income taxes 91,472 74,381 86,620 Bank-owned life insurance 115,806 115,064 112,921 Goodwill and intangible assets, net 16 21 104,925 Other real estate owned 2,743 2,743 1,108 Other assets 181,491 167,840 176,334 Total Assets$11,129,508 $11,285,052 $11,664,538 Liabilities and Shareholders' Equity Liabilities Deposits: Noninterest-bearing demand$1,544,403 $1,609,823 $2,279,081 Interest-bearing transaction 1,211,791 903,300 997,448 Savings and money market 3,599,221 3,316,819 3,314,043 Time deposits 2,775,663 2,710,908 2,217,467 Total deposits 9,131,078 8,540,850 8,808,039 Customer repurchase agreements 33,157 32,040 30,587 Other short-term borrowings 490,000 1,240,000 1,369,918 Long-term borrowings 76,108 75,812 — Operating lease liabilities 23,815 18,755 23,238 Reserve for unfunded commitments 3,463 5,060 5,590 Other liabilities 145,826 147,111 152,883 Total Liabilities 9,903,447 10,059,628 10,390,255 Shareholders' Equity Common stock, par value $0.01 per share; shares authorized 100,000,000, shares issued and outstanding 30,202,003, 30,173,200, and 29,925,612 respectively 298 298 296 Additional paid-in capital 384,932 382,284 374,888 Retained earnings 982,304 967,019 1,061,456 Accumulated other comprehensive loss (141,473) (124,177) (162,357)Total Shareholders' Equity 1,226,061 1,225,424 1,274,283 Total Liabilities and Shareholders' Equity$11,129,508 $11,285,052 $11,664,538 Loan Mix and Asset Quality(Dollars in thousands) December 31, September 30, December 31, 2024 2024 2023 Amount% Amount% Amount%Loan Balances - Period End: Commercial$1,183,34115% $1,154,34914% $1,473,76618%PPP loans 287—% 348—% 528—%Income producing - commercial real estate 4,064,84651% 4,155,12052% 4,094,61451%Owner occupied - commercial real estate 1,269,66916% 1,276,24016% 1,172,23915%Real estate mortgage - residential 50,5351% 57,2231% 73,3961%Construction - commercial and residential 1,210,76315% 1,174,59115% 969,76612%Construction - C&I (owner occupied) 103,2591% 100,6621% 132,0212%Home equity 51,1301% 51,5671% 51,9641%Other consumer 1,058—% 169—% 401—%Total loans$7,934,888100% $7,970,269100% $7,968,695100% Three Months Ended or As Of December 31,September 30,December 31, 2024 2024 2023Asset Quality: Nonperforming loans$208,707 $134,387 $65,524Other real estate owned 2,743 2,743 1,108Nonperforming assets$211,450 $137,130 $66,632Net charge-offs$9,535 $5,303 $11,936Special mention$244,807 $364,983 $204,971Substandard$426,032 $391,301 $335,325 Eagle Bancorp, Inc.Consolidated Average Balances, Interest Yields And Rates vs. Prior Quarter (Unaudited)(Dollars in thousands) Three Months Ended December 31, 2024 September 30, 2024 AverageBalance Interest AverageYield/Rate AverageBalance Interest AverageYield/RateASSETS Interest earning assets: Interest-bearing deposits with other banks and other short-term investments$1,948,436 $23,045 4.71% $1,577,464 $21,296 5.37%Loans held for sale(1) — — —% 4,936 1 0.08%Loans(1) (2) 7,971,907 132,943 6.63% 8,026,524 139,835 6.93%Investment securities available-for-sale(2) 1,417,958 7,142 2.00% 1,479,598 7,336 1.97%Investment securities held-to-maturity(2) 952,800 5,165 2.16% 974,366 5,242 2.14%Federal funds sold 12,839 122 3.78% 10,003 103 4.10%Total interest earning assets 12,303,940 168,417 5.45% 12,072,891 173,813 5.73%Total noninterest earning assets 386,014 397,006 Less: allowance for credit losses (114,232) (108,998) Total noninterest earning assets 271,782 288,008 TOTAL ASSETS$12,575,722 $12,360,899 LIABILITIES AND SHAREHOLDERS' EQUITY Interest bearing liabilities: Interest-bearing transaction$1,674,997 $13,048 3.10% $1,656,676 $14,596 3.51%Savings and money market 3,648,502 35,262 3.84% 3,254,128 34,896 4.27%Time deposits 2,804,870 34,692 4.92% 2,517,944 31,698 5.01%Total interest bearing deposits 8,128,369 83,002 4.06% 7,428,748 81,190 4.35%Customer repurchase agreements 38,750 294 3.02% 38,045 332 3.47%Other short-term borrowings 1,003,587 12,296 4.87% 1,615,867 20,448 5.03%Long-term borrowings 75,939 2,031 10.64% 824 — —%Total interest bearing liabilities 9,246,645 97,623 4.20% 9,083,484 101,970 4.47%Noninterest bearing liabilities: Noninterest bearing demand 1,928,094 1,915,666 Other liabilities 170,411 160,272 Total noninterest bearing liabilities 2,098,505 2,075,938 Shareholders' equity 1,230,573 1,201,477 TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY$12,575,723 $12,360,899 Net interest income $70,794 $71,843 Net interest spread 1.25% 1.26%Net interest margin 2.29% 2.37%Cost of funds 3.48% 3.69% (1) Loans placed on nonaccrual status are included in average balances. Net loan fees and late charges included in interest income on loans totaled $4.3 million and $3.9 million for the three months ended December 31, 2024 and September 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 December 31, 2024 2023 Average Balance Interest AverageYield/Rate Average Balance Interest AverageYield/RateASSETS Interest earning assets: Interest-bearing deposits with other banks and other short-term investments$1,948,436 $23,045 4.71% $1,340,972 $18,230 5.39%Loans(1) (2) 7,971,907 132,943 6.63% 7,963,074 135,964 6.77%Investment securities available-for-sale(2) 1,417,958 7,142 2.00% 1,498,132 7,611 2.02%Investment securities held-to-maturity(2) 952,800 5,165 2.16% 1,027,230 5,531 2.14%Federal funds sold 12,839 122 3.78% 8,314 85 4.06%Total interest earning assets 12,303,940 168,417 5.45% 11,837,722 167,421 5.61%Total noninterest earning assets 386,014 530,364 Less: allowance for credit losses (114,232) (84,783) Total noninterest earning assets 271,782 445,581 TOTAL ASSETS$12,575,722 $12,283,303 LIABILITIES AND SHAREHOLDERS' EQUITY Interest bearing liabilities: Interest-bearing transaction$1,674,997 $13,048 3.10% $1,843,617 $16,607 3.57%Savings and money market 3,648,502 35,262 3.84% 3,297,581 35,384 4.26%Time deposits 2,804,870 34,692 4.92% 2,164,038 26,248 4.81%Total interest bearing deposits 8,128,369 83,002 4.06% 7,305,236 78,239 4.25%Customer repurchase agreements 38,750 294 3.02% 31,290 272 3.45%Other short-term borrowings 1,003,587 12,296 4.87% 1,370,627 15,918 4.61%Long-term borrowings 75,939 2,031 10.64% — — —%Total interest bearing liabilities 9,246,645 97,623 4.20% 8,707,153 94,429 4.30%Noninterest bearing liabilities: Noninterest bearing demand 1,928,094 2,166,133 Other liabilities 170,411 171,254 Total noninterest bearing liabilities 2,098,505 2,337,387 Shareholders' equity 1,230,573 1,238,763 TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY$12,575,723 $12,283,303 Net interest income $70,794 $72,992 Net interest spread 1.25% 1.31%Net interest margin 2.29% 2.45%Cost of funds 3.48% 3.45% (1) Loans placed on nonaccrual status are included in average balances. Net loan fees and late charges included in interest income on loans totaled $4.3 million and $4.7 million for the three months ended December 31, 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 December 31, September 30, June 30, March 31, December 31, September 30, June 30, March 31,Income Statements: 2024 2024 2024 2024 2023 2023 2023 2023 Total interest income$168,417 $173,813 $169,731 $175,602 $167,421 $161,149 $156,510 $140,247 Total interest expense 97,623 101,970 98,378 100,904 94,429 90,430 84,699 65,223 Net interest income 70,794 71,843 71,353 74,698 72,992 70,719 71,811 75,024 Provision (reversal) for credit losses 12,132 10,094 8,959 35,175 14,490 5,644 5,238 6,164 Provision (reversal) for credit losses for unfunded commitments (1,598) (1,593) 608 456 (594) (839) 318 848 Net interest income after provision for (reversal of) credit losses 60,260 63,342 61,786 39,067 59,096 65,914 66,255 68,012 Noninterest income before investment gain 4,063 6,948 5,329 3,585 2,891 6,342 8,593 3,721 Net gain (loss) on sale of investment securities 4 3 3 4 3 5 2 (21)Total noninterest income 4,067 6,951 5,332 3,589 2,894 6,347 8,595 3,700 Salaries and employee benefits 22,597 21,675 21,770 21,726 18,416 21,549 21,957 24,174 Premises and equipment expenses 2,635 2,794 2,894 3,059 2,967 3,095 3,227 3,317 Marketing and advertising 1,340 1,588 1,662 859 1,071 768 884 636 Goodwill impairment — — 104,168 — — — — — Other expenses 17,960 17,557 15,997 14,353 14,644 12,221 11,910 12,457 Total noninterest expense 44,532 43,614 146,491 39,997 37,098 37,633 37,978 40,584 (Loss) income before income tax expense 19,795 26,679 (79,373) 2,659 24,892 34,628 36,872 31,128 Income tax expense 4,505 4,864 4,429 2,997 4,667 7,245 8,180 6,894 Net (loss) income$15,290 $21,815 $(83,802) $(338) $20,225 $27,383 $28,692 $24,234 Per Share Data: (Loss) earnings per weighted average common share, basic$0.51 $0.72 $(2.78) $(0.01) $0.68 $0.91 $0.94 $0.78 (Loss) earnings per weighted average common share, diluted$0.50 $0.72 $(2.78) $(0.01) $0.67 $0.91 $0.94 $0.78 Weighted average common shares outstanding, basic 30,199,433 30,173,852 30,185,609 30,068,173 29,925,557 29,910,218 30,454,766 31,109,267 Weighted average common shares outstanding, diluted 30,321,644 30,241,699 30,185,609 30,068,173 29,966,962 29,944,692 30,505,468 31,180,346 Actual shares outstanding at period end 30,202,003 30,173,200 30,180,482 30,185,732 29,925,612 29,917,982 29,912,082 31,111,647 Book value per common share at period end$40.60 $40.61 $38.75 $41.72 $42.58 $40.64 $40.78 $39.92 Tangible book value per common share at period end(1)$40.59 $40.61 $38.74 $38.26 $39.08 $37.12 $37.29 $36.57 Dividend per common share(2)$— $0.17 $0.45 $0.45 $0.45 $0.45 $0.45 $0.45 Performance Ratios (annualized): Return on average assets 0.48% 0.70% (2.73)% (0.01)% 0.65% 0.91% 0.96% 0.86%Return on average common equity 4.94% 7.22% (26.67)% (0.11)% 6.48% 8.80% 9.24% 7.92%Return on average tangible common equity(1) 4.94% 7.22% (28.96)% (0.11)% 7.08% 9.61% 10.08% 8.65%Net interest margin 2.29% 2.37% 2.40% 2.43% 2.45% 2.43% 2.49% 2.77%Efficiency ratio(1)(3) 59.50% 55.40% 191.00% 51.10% 48.90% 48.83% 47.20% 51.60%Other Ratios: Allowance for credit losses to total loans(4) 1.44% 1.40% 1.33% 1.25% 1.08% 1.05% 1.00% 1.01%Allowance for credit losses to total nonperforming loans 54.81% 83.25% 110.06% 108.76% 131.16% 118.78% 267.50% 1,160.00%Nonperforming assets to total assets 1.90% 1.22% 0.88% 0.79% 0.57% 0.64% 0.28% 0.08%Net charge-offs (recoveries) (annualized) to average total loans(4) 0.48% 0.26% 0.11% 1.07% 0.60% 0.02% 0.29% 0.05%Tier 1 capital (to average assets) 10.74% 10.77% 10.58% 10.26% 10.73% 10.96% 10.84% 11.42%Total capital (to risk weighted assets) 15.86% 15.51% 15.07% 14.87% 14.79% 14.54% 14.51% 14.74%Common equity tier 1 capital (to risk weighted assets) 14.63% 14.30% 13.92% 13.80% 13.90% 13.68% 13.55% 13.75%Tangible common equity ratio(1) 11.02% 10.86% 10.35% 10.03% 10.12% 10.04% 10.21% 10.36%Average Balances (in thousands): Total assets$12,575,722 $12,360,899 $12,361,500 $12,784,470 $12,283,303 $11,942,905 $11,960,111 $11,426,056 Total earning assets$12,303,940 $12,072,891 $11,953,446 $12,365,497 $11,837,722 $11,532,186 $11,546,050 $11,004,817 Total loans(3)$7,971,907 $8,026,524 $8,003,206 $7,988,941 $7,963,074 $7,795,144 $7,790,555 $7,712,023 Total deposits$10,056,463 $9,344,414 $9,225,266 $9,501,661 $9,471,369 $8,946,641 $8,514,938 $8,734,125 Total borrowings$1,118,276 $1,654,736 $1,721,283 $1,832,947 $1,401,917 $1,646,179 $2,102,507 $1,359,463 Total shareholders' equity$1,230,573 $1,201,477 $1,263,627 $1,289,656 $1,238,763 $1,235,162 $1,245,647 $1,240,978 (1) A reconciliation of non-GAAP financial measures to the nearest GAAP measure is provided in the tables that accompany this document. (2) As previously announced, the Company altered the timing of quarterly dividend announcement to better align with its earnings releases. Therefore, no dividends were accrued for Q4 2024 as the announcement date is January 22, 2025. (3) Computed by dividing noninterest expense by the sum of net interest income and noninterest income.(4) Excludes loans held for sale. GAAP Reconciliation to Non-GAAP Financial Measures (unaudited)(dollars in thousands, except per share data) December 31,September 30,December 31, 2024 2024 2023 Tangible common equity Common shareholders' equity$1,226,061 $1,225,424 $1,274,283 Less: Intangible assets (16) (21) (104,925)Tangible common equity$1,226,045 $1,225,403 $1,169,358 Tangible common equity ratio Total assets$11,129,508 $11,285,052 $11,664,538 Less: Intangible assets (16) (21) (104,925)Tangible assets$11,129,492 $11,285,031 $11,559,613 Tangible common equity ratio 11.02% 10.86% 10.12% Per share calculations Book value per common share 40.60 40.61 42.58 Less: Intangible book value per common share$(0.01) $— $(3.50)Tangible book value per common share$40.59 $40.61 $39.08 Shares outstanding at period end 30,202,003 30,173,200 29,925,612 Three Months Ended December 31,September 30,December 31, 2024 2024 2023 Average tangible common equity Average common shareholders' equity $1,230,573 $1,201,477 $1,238,763 Less: Average intangible assets (19) (24) (105,032)Average tangible common equity $1,230,554 $1,201,453 $1,133,731 Return on average tangible common equity Net (loss) income $15,290 $21,815 $20,225 Return on average tangible common equity 4.94% 7.22% 7.08% Efficiency ratio Net interest income $70,794 $71,843 $72,992 Noninterest income 4,067 6,951 2,894 Operating revenue $74,861 $78,794 $75,886 Noninterest expense $44,532 $43,614 $37,098 Efficiency ratio 59.49% 55.35% 48.89% Pre-provision net revenue Net interest income $70,794 $71,843 $72,992 Noninterest income 4,067 6,951 2,894 Less: Noninterest expense (44,532) (43,614) (37,098)Pre-provision net revenue $30,329 $35,180 $38,788 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 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. 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. Pre-provision net revenue is a non-GAAP financial measure calculated by subtracting noninterest expenses from the sum of net interest income and noninterest income. The Company considers this information important to shareholders because it illustrates revenue excluding the impact of provisions and reversals to the allowance for credit losses on loans. 1 A reconciliation of non-GAAP financial measures and the nearest GAAP measures is provided in the GAAP Reconciliation to Non-GAAP Financial 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. EAGLE BANCORP, INC. CONTACT:Eric R. Newell240.497.1796 For the December 31, 2024 Earnings Presentation, click http://ml.globenewswire.com/Resource/Download/bb87b33f-967f-44cf-9d83-3d9985c21a1c

Eagle Bancorp, Inc. Announces Fourth Quarter 2024 Results and Cash Dividend

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