(Exact name of registrant as specified in its charter) UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Quarterly Period Ended March 31, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _________ to _________ Commission File Number 0-25923 (Mark One) Eagle Bancorp, Inc. (State or other jurisdiction of ...

Financial Data and Key Metrics Changes - The company reported a decline in net interest margin from 3.14% to 2.77%, a decrease of 37 basis points [15] - The annualized noninterest expense as a percentage of average assets was 1.44%, up from 1.37% in the prior quarter [16] - The tangible common equity was $1.1 billion, representing 10.36% of tangible assets, which is relatively high compared to peers [27] Business Line Data and Key Metrics Changes - Loans increased by $102 million during the quarter, marking the sixth consecutive quarterly increase [28] - The allowance for credit losses (ACL) to total loans at quarter end was 1.01%, up from 0.97% in the previous quarter [11] - Nonperforming assets (NPAs) as a percentage of assets remained unchanged at 8 basis points, the lowest ratio since 2005 [10][28] Market Data and Key Metrics Changes - The unemployment rate in the Washington metropolitan area was reported at 3%, lower than the nationwide figure of 3.5% [30] - Total NPAs were $8.7 million, a modest increase of $288,000 over the prior quarter [31] - The company experienced a reduction in deposits, with approximately 70% of the decrease occurring before the industry turmoil that began on March 9 [34] Company Strategy and Development Direction - The company remains focused on disciplined loan growth and maintaining strong underwriting and risk management practices [28] - There is a commitment to controlling expenses, with a focus on operational efficiency to provide value to shareholders [9] - The company aims to add high-quality commercial loans to its portfolio, particularly in local commercial income-producing properties [12] Management's Comments on Operating Environment and Future Outlook - Management expressed disappointment with first-quarter operating results but highlighted positive aspects such as capital strength and asset quality [7] - The company is cautious about credit quality and will continue to apply strong underwriting skills while seeking opportunities for growth [12] - Management noted that the current economic environment presents challenges but also opportunities for growth in the Washington, D.C. market [30] Other Important Information - The company returned $32.2 million in capital to shareholders during the first quarter [8] - The efficiency ratio climbed to 51.6%, primarily due to a lower net interest margin rather than an increase in noninterest expense [16] - The company closed its Alexandria, Virginia branch, reducing the number of banking locations to 15, which is expected to save nearly $200,000 in annual rental costs [37] Q&A Session Summary Question: What were the trends in deposit balances this quarter? - Management noted that while there were deposit outflows, they have seen a leveling off and have not lost deposit customers [21] Question: How are deposit costs trending? - The average rate on total interest-bearing deposits was 3.63%, with the highest money market yield at about 3.99% [66] Question: What is the status of classified loans this quarter? - There was a decline of about $700,000 in classified loans, and the watch list was reduced by $86 million [48] Question: How is the company addressing the challenges in the office market? - Management is proactively reaching out to commercial clients to understand the challenges facing their income-producing properties [32] Question: What is the company's approach to capital management and buybacks? - The company evaluates capital management and buyback strategies on a quarterly basis, balancing shareholder returns with capital conservation [56]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ☒ Annual report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the fiscal year ended December 31, 2022 ☐ Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the transition period from _________ to _________ Commission file number: 0-25923 Eagle Bancorp, Inc. (Exact name of registrant as specified in its charter) Maryland 52-2061461 (State or other jurisdictio ...

Financial Data and Key Metrics Changes - In the fourth quarter, the company experienced strong loan growth of 4.5% from the prior quarter, marking the fifth consecutive quarterly increase [10] - Earnings for the quarter were $42.2 million, up 13.1% from the prior quarter, with fully diluted EPS increasing by 13.8% to $1.32 [51] - Net interest income improved marginally by $1.7 million, with interest income rising by $17.6 million due to higher loan rates and balances [22][49] - The cost of interest-bearing liabilities increased to 2.86%, up 111 basis points, while average interest-bearing liabilities decreased by $218.2 million [49] Business Line Data and Key Metrics Changes - The company maintained strong credit quality metrics, with nonperforming assets (NPAs) at 8 basis points, the lowest ratio since 2005 [43] - The average yield on loans was 5.7%, up 77 basis points, with average loans increasing by $96.6 million [22] - The provision reversal for the fourth quarter was largely driven by improved quantitative metrics, with a negative provision of $464,000 [17][44] Market Data and Key Metrics Changes - The unemployment rate in the Washington Metropolitan Statistical Area fell to 3.1% in November, compared to the nationwide figure of 3.5% in December [14] - The company reported unfunded commitments of $2.6 billion at quarter-end, up $120 million from the prior quarter-end [39] Company Strategy and Development Direction - The company remains focused on maintaining conservative underwriting standards while seeking opportunities in high-quality commercial loans [45] - The management emphasized a commitment to relationship banking and community service, particularly in the Washington D.C. market [5][54] - The company plans to continue stock repurchases, having bought back almost 740,000 shares at an average price of $44.82 per share [40][48] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating economic headwinds such as higher interest rates and inflation, highlighting the bank's strong market position [38][46] - The company anticipates continued loan growth and is well-positioned with a total risk-based capital of 14.99% [39] - Management noted that while there are concerns in the office market, particularly in the central business district, proactive outreach to clients is ongoing [41][75] Other Important Information - The company declared a dividend of $0.45 per share, equating to an annualized yield of 4.11% based on the closing stock price [40] - The equity at quarter-end rose to $1.2 billion, driven by earnings and higher carrying values on available-for-sale securities [25] Q&A Session Summary Question: Concerns about leasing and vacancy rates in D.C. - Management acknowledged a vacancy rate of about 20% in D.C. but noted proactive outreach to understand client challenges [59] Question: Average loan size in the office book - The average loan-to-value ratio is 53%, indicating room for movement, but the average loan size was not provided [61] Question: Expected tax rate for 2023 - The expected tax rate is projected to be in the range of 22% to 23% [62] Question: Strategy around FHLB advances and loan deposit ratio - FHLB advances are viewed as a liquidity management tool, and the loan-to-deposit ratio may return to the upper 90% range [63][80] Question: Outlook on net interest margin (NIM) - Management indicated that NIM expansion is possible depending on Fed actions, with a beta of 70% modeled [66][90] Question: Core deposit metrics and expectations - The company is focused on maintaining a strong value proposition to retain core deposits amid rising rates [96]

Financial Performance - Net income for Q3 2022 was $37.3 million, a decrease of $6.3 million or 14.5% compared to Q3 2021's $43.6 million[199]. - Total revenue for Q3 2022 was $89.2 million, up from $87.3 million in Q3 2021, driven by an increase in net interest income to $83.9 million from $79.0 million[201]. - Noninterest income decreased by 36.0% to $5.3 million in Q3 2022 from $8.3 million in Q3 2021, primarily due to lower gains on the sale of residential loans[203]. - Net income for the nine months ended September 30, 2022 was $98.7 million, a decrease of $36.3 million or 26.9% compared to $135.1 million in the same period of 2021[210]. - Total revenue for the nine months ended September 30, 2022, was $265.6 million, down from $276.1 million in the same period in 2021, with net interest income slightly increasing to $247.3 million[212]. - Adjusted net income for the nine months ended September 30, 2022, was $121,611 thousand, compared to $135,071 thousand for the same period in 2021[376]. Interest Income and Margin - The net interest margin increased to 3.02% in Q3 2022 from 2.73% in Q3 2021, reflecting higher average investment and loan balances[202]. - Net interest income for the three months ended September 30, 2022, was $83.9 million, an increase from $79.0 million for the same period in 2021, driven by higher average loan balances and yields[223]. - The net interest margin for the nine months ended September 30, 2022, was 2.86%, a decrease from 2.91% for the same period in 2021[213]. - The Company achieved a net interest margin of 2.86% for the nine months ended September 30, 2022, compared to 2.91% for the same period in 2021[327]. - Net interest income represented 93% of the Company's revenue for the first three quarters of 2022, up from 89% in the last three quarters of 2021[344]. Noninterest Income and Expenses - Gain on sale of loans dropped 75.4% to $821 thousand in Q3 2022 compared to $3.3 million in Q3 2021, attributed to a 79.44% decline in residential mortgage originations[204]. - Total noninterest income decreased by 38.5% to $18.3 million for the nine months ended September 30, 2022, primarily due to a decline in gains on the sale of loans[214]. - Noninterest expenses slightly decreased by 0.5% to $36.2 million in Q3 2022 from $36.4 million in Q3 2021[207]. - Noninterest expenses increased by 14.9% to $126.2 million for the nine months ended September 30, 2022, largely due to a $22.9 million accrual of settlement expenses[218]. - Total noninterest expense for the three months ended September 30, 2022, totaled $36.2 million, a slight decrease of 0.5% from $36.4 million for the same period in 2021[279]. Asset Quality and Credit Losses - The allowance for credit losses was $75,141, down from $92,169 in the previous year[231]. - Nonperforming assets totaled $9.6 million at September 30, 2022, representing 0.09% of total assets, a decrease from $30.8 million or 0.26% of total assets at December 31, 2021[252]. - The provision for credit losses on loans for the three months ended September 30, 2022, was $3.0 million, compared to a reversal of $8.3 million for the same period in 2021[246]. - The company reported total charge-offs of $2,034 thousand for the nine months ended September 30, 2022, compared to $13,114 thousand for the same period in 2021[250]. - The company's allowance for credit losses was 1.04% of total loans at September 30, 2022, deemed adequate to absorb expected credit losses[254]. Capital and Liquidity - CET1 capital to risk-weighted assets ratio stands at 15.11% as of September 30, 2022, exceeding the minimum required of 7.00%[362]. - Total capital to risk-weighted assets ratio is 16.10%, well above the required 10.50%[362]. - The Company had $4.3 billion in primary and secondary liquidity sources as of September 30, 2022, deemed adequate to meet current and projected funding needs[321]. - The Company maintains a capital conservation buffer of 2.5% of CET1 capital for capital adequacy purposes[360]. - The Company had $500 million in FHLB short-term advances as part of its asset liability strategy to support loan growth[313]. Deposits and Loans - Total deposits declined by 12.2% to $8.8 billion at September 30, 2022, down from $10.0 billion at December 31, 2021, due to deposit outflows related to rising interest rates[294]. - Total loans increased by 3.4% to $7.3 billion at September 30, 2022, from $7.1 billion at December 31, 2021, driven by growth in commercial real estate and commercial and industrial loans[292][302]. - Brokered deposits amounted to $2.5 billion, representing 28.0% of total deposits as of September 30, 2022, compared to 26.5% at December 31, 2021[308]. - The Company had $2.9 billion in noninterest-bearing demand deposits, accounting for 33% of total deposits, down from $3.3 billion at December 31, 2021[309]. - Total loans, excluding loans held for sale and PPP loans, amounted to $7,297,257 thousand as of September 30, 2022, an increase from $7,014,493 thousand at December 31, 2021[372]. Investment Portfolio - The investment portfolio increased by $345.9 million, or 13.1%, from December 31, 2021, to September 30, 2022[328]. - The net unrealized loss before income tax on the investment securities available-for-sale portfolio was $224.1 million at September 30, 2022, representing 8% of the investment portfolio's book value[332]. - The duration of the investment portfolio increased to 4.8 years at September 30, 2022, from 4.3 years at December 31, 2021[330]. - The weighted average rate of the Company's variable rate loans increased by approximately 179 basis points from December 31, 2021, to September 30, 2022[334]. - The Company's cost of interest-bearing deposits increased by 157 basis points at September 30, 2022, comprising 67% of total deposits[334].

Eagle Bancorp, Inc. (NASDAQ:EGBN) Q3 2022 Earnings Conference Call October 20, 2022 10:00 AM ET Company Participants Charles Levingston - Chief Financial Officer Susan Riel - President and Chief Executive Officer Jan Williams - Chief Credit Officer Conference Call Participants Catherine Mealor - KBW Operator Good day and thank you for standing by. Welcome to the Eagle Bancorp Third Quarter 2022 Earnings Conference Call. At this time all participants are in a listen-only mode. After the speakers’ presentatio ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Quarterly Period Ended June 30, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _________ to _________ Commission File Number 0-25923 Eagle Bancorp, Inc. (Exact name of registrant as specified in its charter) Maryland 52-2061461 (State or ot ...

Eagle Bancorp, Inc. (NASDAQ:EGBN) Q2 2022 Earnings Conference Call July 21, 2022 10:00 AM ET Company Participants Charles Levingston - Chief Financial Officer Susan Riel - President and Chief Executive Officer Jan Williams - Chief Credit Officer Conference Call Participants Catherine Mealor - KBW Christopher Marinac - Janney Montgomery Scott Operator Good day and thank you for standing by. Welcome to the Eagle Bancorp Second Quarter 2022 Earnings Conference Call. At this time all participants are in a liste ...

PART I. FINANCIAL INFORMATION [Item 1. Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) This section presents Eagle Bancorp, Inc.'s unaudited consolidated financial statements for Q1 2022, including balance sheets, income statements, and cash flow data with detailed notes [Consolidated Balance Sheets](index=3&type=section&id=Consolidated%20Balance%20Sheets) Total assets decreased to **$11.23 billion** as of March 31, 2022, driven by reductions in interest-bearing deposits, total liabilities, and shareholders' equity Consolidated Balance Sheet Highlights (in thousands) | Account | March 31, 2022 | December 31, 2021 | | :--- | :--- | :--- | | **Total Assets** | **$11,227,223** | **$11,847,310** | | Loans, net | $7,042,302 | $6,990,633 | | Investment securities (AFS & HTM) | $2,929,032 | $2,623,408 | | Total deposits | $9,586,259 | $9,981,540 | | **Total Liabilities** | **$9,947,669** | **$10,496,535** | | **Total Shareholders' Equity** | **$1,279,554** | **$1,350,775** | [Consolidated Statements of Income](index=4&type=section&id=Consolidated%20Statements%20of%20Income) Net income increased to **$45.7 million** for Q1 2022, primarily due to a significant decrease in noninterest expense, despite declines in net interest and noninterest income Statement of Income Summary (in thousands, except per share data) | Metric | Three Months Ended March 31, 2022 | Three Months Ended March 31, 2021 | | :--- | :--- | :--- | | Net Interest Income | $80,452 | $82,651 | | Reversal of Credit Losses | ($2,787) | ($2,350) | | Total noninterest income | $7,453 | $10,587 | | Total noninterest expense | $31,012 | $37,987 | | **Net Income** | **$45,744** | **$43,469** | | **Diluted EPS** | **$1.42** | **$1.36** | [Consolidated Statements of Comprehensive (Loss) Income](index=5&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20(Loss)%20Income) The company reported a comprehensive loss of **$61.7 million** for Q1 2022, primarily due to a **$107.5 million** other comprehensive loss from unrealized losses on securities Comprehensive (Loss) Income (in thousands) | Component | Three Months Ended March 31, 2022 | Three Months Ended March 31, 2021 | | :--- | :--- | :--- | | Net Income | $45,744 | $43,469 | | Other comprehensive loss | ($107,482) | ($17,498) | | **Comprehensive (Loss) Income** | **($61,738)** | **$25,971** | [Consolidated Statements of Changes in Shareholders' Equity](index=6&type=section&id=Consolidated%20Statements%20of%20Changes%20in%20Shareholders'%20Equity) Shareholders' equity decreased by **$71.2 million** in Q1 2022 to **$1.28 billion**, primarily due to a **$107.5 million** other comprehensive loss offsetting net income and dividends Q1 2022 Changes in Shareholders' Equity (in thousands) | Component | Amount | | :--- | :--- | | Balance January 1, 2022 | $1,350,775 | | Net Income | $45,744 | | Other comprehensive loss, net of tax | ($107,482) | | Cash dividends declared ($0.40 per share) | ($12,665) | | Other (Stock comp, etc.) | $3,182 | | **Balance March 31, 2022** | **$1,279,554** | [Consolidated Statements of Cash Flows](index=7&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Cash and cash equivalents decreased by **$991.8 million** in Q1 2022, driven by significant outflows from investing and financing activities, despite positive cash flow from operations Cash Flow Summary (in thousands) | Activity | Three Months Ended March 31, 2022 | Three Months Ended March 31, 2021 | | :--- | :--- | :--- | | Net Cash Provided by Operating Activities | $60,852 | $11,257 | | Net Cash Used in Investing Activities | ($497,728) | ($2,162) | | Net Cash Used in Financing Activities | ($554,964) | ($54,879) | | **Net Decrease in Cash and Cash Equivalents** | **($991,840)** | **($45,784)** | [Notes to Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) This section details accounting policies and financial data, including the transfer of **$1.1 billion** in securities, loan portfolio specifics, and updates on legal contingencies and D&O insurance - In Q1 2022, the company transferred **$1.1 billion** of securities from available-for-sale (AFS) to held-to-maturity (HTM), including residential mortgage-backed securities, municipal bonds, and corporate bonds. The related unrealized loss of **$66.2 million** remained in other comprehensive loss to be amortized over the securities' remaining lives[72](index=72&type=chunk) - The Allowance for Credit Losses (ACL) on loans decreased from **$75.0 million** at year-end 2021 to **$71.5 million** at March 31, 2022, reflecting a **$3.0 million** reversal of provision for credit losses during the quarter[81](index=81&type=chunk)[94](index=94&type=chunk) - The company is in discussions with the SEC and Federal Reserve Board staff regarding potential resolutions of ongoing investigations. It warns that its Directors and Officers (D&O) insurance policies, which cover legal defense costs, may be exhausted as early as the second quarter of 2022[178](index=178&type=chunk)[179](index=179&type=chunk)[180](index=180&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A)](index=43&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q1 2022 financial performance, highlighting a **5.2%** net income increase to **$45.7 million** driven by reduced noninterest expenses, alongside details on financial condition, capital ratios, and market risk [Results of Operations](index=46&type=section&id=MD%26A_Results_of_Operations) Net income increased to **$45.7 million** in Q1 2022, primarily due to an **18%** decrease in noninterest expense, despite declines in net interest income and noninterest income Q1 2022 vs Q1 2021 Performance | Metric | Q1 2022 | Q1 2021 | | :--- | :--- | :--- | | Net Income | $45.7 million | $43.5 million | | Net Interest Income | $80.5 million | $82.7 million | | Net Interest Margin | 2.65% | 2.98% | | Noninterest Income | $7.5 million | $10.6 million | | Noninterest Expense | $31.0 million | $38.0 million | | Efficiency Ratio | 35.28% | 40.74% | - Noninterest expense decreased significantly due to a **$5.0 million** accrual reduction related to stock-based compensation and deferred compensation for the former CEO, as the company believes related claims are now time-barred[254](index=254&type=chunk) - The company recorded a reversal of credit losses on loans of **$3.0 million** in Q1 2022, compared to a **$2.3 million** reversal in Q1 2021, primarily due to improvements in the economic environment and asset quality[223](index=223&type=chunk) [Financial Condition](index=55&type=section&id=MD%26A_Financial_Condition) Total assets decreased to **$11.2 billion** as of March 31, 2022, while loans remained stable and deposits declined, leading to a **$71.2 million** decrease in shareholders' equity despite strong capital ratios Financial Condition Highlights | Metric | March 31, 2022 | December 31, 2021 | | :--- | :--- | :--- | | Total Assets | $11.2 billion | $11.8 billion | | Total Loans | $7.1 billion | $7.1 billion | | Total Deposits | $9.6 billion | $10.0 billion | | Shareholders' Equity | $1.3 billion | $1.4 billion | | Tangible Book Value Per Share | $36.64 | $38.97 | - The company's capital ratios remain strong, with a Common Equity Tier 1 (CET1) ratio of **14.74%** and a Total Risk-Based Capital ratio of **15.86%**, both well above regulatory requirements[268](index=268&type=chunk)[335](index=335&type=chunk) - The company's concentration in construction, land development, and other land acquisition loans was **110%** of total risk-based capital, exceeding the **100%** regulatory threshold for potential concentration risk, requiring heightened risk management[328](index=328&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=67&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This section refers to Item 2 for market risk disclosures, indicating the company is asset-sensitive with projected net interest income increases in rising rate scenarios, managed through simulation models and gap analysis - The company's market risk disclosures are detailed in the 'Asset/Liability Management and Quantitative and Qualitative Disclosure about Market Risk' section of the MD&A (Item 2)[345](index=345&type=chunk) Interest Rate Sensitivity Analysis (Next 12 Months) | Change in Interest Rates (bps) | % Change in Net Interest Income | % Change in Net Income | | :--- | :--- | :--- | | +400 | 14.5% | 21.8% | | +200 | 6.2% | 9.3% | | +100 | 1.9% | 3.0% | | -100 | (0.3)% | (0.4)% | [Item 4. Controls and Procedures](index=67&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that the company's disclosure controls and procedures were effective as of March 31, 2022, with no material changes to internal control over financial reporting during the quarter - The Chief Executive Officer, Executive Chairman, and Chief Financial Officer concluded that the company's disclosure controls and procedures were effective as of the end of the period[345](index=345&type=chunk) - No changes in internal control over financial reporting occurred during the quarter that have materially affected, or are reasonably likely to materially affect, the company's internal controls[346](index=346&type=chunk) PART II. OTHER INFORMATION [Item 1. Legal Proceedings](index=68&type=section&id=Item%201.%20Legal%20Proceedings) This section refers to Note 11 for details on material pending legal proceedings, including ongoing investigations and the potential exhaustion of D&O insurance coverage - For details on material legal proceedings, the report refers to Note 11 of the Notes to Consolidated Financial Statements[350](index=350&type=chunk) [Item 1A. Risk Factors](index=68&type=section&id=Item%201A.%20Risk%20Factors) The company reports no material changes to the risk factors previously disclosed in its 2021 Annual Report on Form 10-K - There have been no material changes to the company's risk factors from those disclosed in the 2021 Annual Report on Form 10-K[351](index=351&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=68&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) A new share repurchase program for up to **1.6 million** common shares was authorized for 2022, though no shares were repurchased during Q1 2022 - A new share repurchase program for **1.6 million** shares was authorized for 2022[352](index=352&type=chunk) - No shares were repurchased during the three months ended March 31, 2022[352](index=352&type=chunk) [Item 6. Exhibits](index=69&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with the quarterly report, including CEO and CFO certifications and interactive data files (XBRL) for financial statements - The exhibits filed include certifications from Susan G. Riel (CEO), Norman R. Pozez (Executive Chairman), and Charles D. Levingston (CFO), as well as Inline XBRL data files[354](index=354&type=chunk) Signatures - The report was duly signed on May 10, 2022, by Susan G. Riel, President and Chief Executive Officer, and Charles D. Levingston, Executive Vice President and Chief Financial Officer[357](index=357&type=chunk)

Financial Data and Key Metrics Changes - Earnings for the quarter were $1.42 per diluted share, an increase of $0.13 from the prior quarter, marking the 89th consecutive profitable quarter [6] - Net income was $45.7 million, up $4.1 million or 9.9% from the prior quarter [19] - Return on average assets was 1.46% and return on average tangible common equity was 14.99% [6] - Total assets decreased by $634 million to $11.2 billion, a decline of 5.4% [19] Business Line Data and Key Metrics Changes - Loans increased by $48.2 million from the prior quarter, driven by commercial real estate (CRE) and commercial and industrial (CNI) lending [6][9] - Non-performing loans were 33 basis points of total loans, with total non-performing loans at $23.8 million [14] - Residential lending volume decreased due to higher rates reducing refinancing incentives, leading to lower gains on sale of mortgage loans [11] Market Data and Key Metrics Changes - The Washington, DC market showed improvement with low unemployment at 3.5% and strong demand in construction and housing [13][14] - The pipeline for loans remained strong with unfunded commitments slightly up to $2.1 billion at quarter-end [11] Company Strategy and Development Direction - The company is focused on maintaining strong credit quality and managing risks, particularly in the hospitality and office sectors [7][16] - There is a commitment to increasing shareholder value through dividends, with a declared dividend of $0.40 per share [12] - The strategy includes deploying excess liquidity into higher-yielding investment securities and loans as rates rise [20][41] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding credit quality and charge-offs, noting low levels of past-due loans [15][50] - The company is monitoring the return-to-office trends and potential impacts on the office portfolio, particularly Class B properties [59] - There is a focus on adapting to the changing economic environment and potential risks associated with the post-pandemic landscape [16][59] Other Important Information - The efficiency ratio improved to 35.3% from 44.3% in the prior quarter, largely due to a one-time reduction in salaries and employee benefits [23] - The company transferred $1.1 billion of securities from available-for-sale to held-to-maturity, which will mitigate future interest rate impacts on equity [24][25] Q&A Session Summary Question: Are you a first mover in increasing deposit rates? - Management indicated they are taking a prudent approach to rate increases, responding to market conditions and competitor actions [32] Question: What is the duration of the held-to-maturity book? - The overall portfolio duration is approximately 5.6 years [34] Question: Is the first-quarter level of core expenses a good starting point? - Management confirmed that the current level of core expenses is reasonable, but future volatility in legal expenses may occur [35][36] Question: How quickly can excess liquidity be deployed? - Management expects to continue deploying excess liquidity into the investment portfolio at a similar pace as the first quarter [41] Question: What percentage of the loan book is floating? - Approximately 57% of the loan book is floating [46] Question: What are the trends in the office portfolio? - Management noted a mixed return-to-office trend, with a cautious outlook on Class B properties in the Central Business District [58]