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]

Financial Performance - Net income for 2021 was $176,691, compared to $132,217 in 2020, reflecting a year-over-year increase of 33.6%[294]. - Net income for 2021 was $176.7 million, a 33.5% increase from $132.2 million in 2020, with earnings per share rising to $5.53 from $4.09[299][300]. - Total revenue for 2021 was $364,899, slightly down from $367,258 in 2020, a decrease of 0.4%[294]. - The efficiency ratio for 2021 was 40.88%, compared to 39.25% in 2020, indicating a decline in operational efficiency[296]. - Noninterest expenses rose by 3% to $149.2 million in 2021 compared to $144.2 million in 2020, resulting in an efficiency ratio of 40.88%[306]. Asset and Loan Management - The Company reported total assets of approximately $11.8 billion, total loans of $7.1 billion, and total deposits of $10.0 billion as of December 31, 2021[271]. - Total assets increased to $11,847,310, up from $11,117,802 in 2020, representing a growth of 6.6%[294]. - Total loans amounted to $7,065,598 thousand, with $2,016,028 thousand due in one year or less, and $3,600,320 thousand due in over one to five years[388]. - Total loan balances decreased by 9% to $9.0 billion at December 31, 2021, with average loans down 8% compared to 2020[308]. - The loan portfolio composition shows that income-producing commercial real estate loans accounted for 48% of total loans, while owner-occupied commercial real estate loans represented 15%[377]. Credit Quality and Losses - The allowance for credit losses decreased to $74,965 from $109,579 in 2020, indicating a reduction of 31.5%[294]. - Nonperforming loans to total loans improved to 0.41% from 0.79% in 2020, showing a significant decrease of 48.1%[296]. - The provision for credit losses in 2021 was a reversal of $20.8 million, compared to a provision of $45.6 million in 2020, reflecting improved asset quality[304]. - The ACL represented 257% of nonperforming loans, an increase from 180% in 2020, indicating improved asset quality[390]. - The Company continues to monitor exposures in the Accommodation and Food Service industry, which represents 8.3% of the loan portfolio[386]. Deposits and Liquidity - Total deposits increased by 9% to $10.0 billion at December 31, 2021, up from $9.2 billion at the end of 2020[358]. - Noninterest bearing demand deposits increased to $3.3 billion, accounting for 33% of total deposits, up from $2.8 billion or 31% in 2020[434]. - The Bank had $7.4 billion in primary and secondary liquidity sources, deemed adequate for current and projected funding needs[453]. - The Bank's liquidity strategy includes maintaining a marketable investment portfolio to provide flexibility for significant liquidity needs[452]. - The Company had $1.7 billion in "IND" brokered deposits as of December 31, 2021, an increase from $1.3 billion in 2020[431]. Capital Position - The Company’s capital position remained strong in 2021, supported by good earnings and improved asset quality, allowing for multiple quarterly dividend increases[268]. - The ratio of common equity to total assets increased to 11.40% at December 31, 2021, up from 11.16% at the end of 2020[312]. - The total risk-based capital ratio was 16.15% at December 31, 2021, down from 17.04% at the end of 2020, reflecting changes in the investment portfolio and risk-weighted assets[360]. - The Company plans to invest an additional $2 million by the end of 2023 to enhance corporate governance and risk compliance[441]. - Management seeks to maintain a capital structure that supports anticipated asset growth and absorbs potential losses[454]. Economic Environment - The U.S. GDP growth for 2021 was 5.7%, a recovery from a 3.4% decrease in 2020 due to the COVID-19 pandemic[263]. - The unemployment rate in the U.S. ended 2021 at 3.9%, down from 6.7% at the end of 2020, indicating a recovery in employment[263]. - The ten-year U.S. Treasury rate averaged 1.45% in 2021, up from 0.88% in 2020, reflecting an increase in longer-term interest rates[264]. - The Washington, D.C. metropolitan area has shown resilience during the pandemic, supported by a stable public sector and increased government spending[266]. - The Company has a concentration in commercial real estate loans, with non-owner-occupied commercial real estate loans representing 320% of consolidated risk-based capital[380].

Eagle Bancorp, Inc. (NASDAQ:EGBN) Q4 2021 Earnings Conference Call January 20, 2022 10:00 AM ET Company Participants Susan Riel - President and CEO Charles Levingston - CFO Jan Williams - Chief Credit Officer Conference Call Participants Casey Whitman - Piper Sandler Catherine Mealor - KBW Brody Preston - Stephens, Inc. Erik Zwick - Boenning & Scattergood, Inc. Operator Hello. Thank you for standing by, and welcome to the Eagle Bancorp Fourth Quarter and Year-End 2021 Earnings Conference Call. At this time ...

Loan Portfolio and Credit Losses - As of September 30, 2021, the Bank had an outstanding balance of Paycheck Protection Program (PPP) loans remaining of $67.3 million[233]. - The Company had ongoing temporary modifications on approximately 6 loans representing approximately $70 million, which is about 1.0% of total loans[235]. - The Company’s allowance for credit losses (ACL) is influenced by the composition and quality of the loan portfolio, as well as prevailing economic conditions[249]. - The Company utilizes a loan-level probability of default (PD) and loss given default (LGD) cash flow method to estimate expected credit losses across various loan segments[244]. - The Company’s credit loss provisions are subject to significant judgment and estimates based on economic forecasts and historical loss rates[242]. - The allowance for credit losses on loans decreased by $14.5 million during the nine months ended September 30, 2021, compared to a provision of $40.7 million for the same period in 2020[4]. - The provision for credit losses showed a reversal of $14.4 million for the nine months ended September 30, 2021, compared to a provision of $40.7 million for the same period in 2020[275]. - The provision for credit losses on loans for the three months ended September 30, 2021, was a reversal of $8.3 million, compared to a provision of $6.6 million for the same period in 2020[4]. - The coverage ratio for the allowance for credit losses to total nonperforming loans was 265.32% at September 30, 2021, compared to 179.80% at December 31, 2020[321]. - Total nonperforming loans were $31.2 million at September 30, 2021, which is 0.46% of total loans, down from $60.9 million or 0.79% at December 31, 2020[319]. Financial Performance - Net income for the three months ended September 30, 2021 was $43.6 million, a 5% increase from $41.3 million in the same period in 2020[253]. - Total revenue for the three months ended September 30, 2021 was $87.3 million, down from $96.9 million in the same period in 2020[255]. - Net interest income remained flat at $79.0 million for the three months ended September 30, 2021, despite a 13% increase in average earning assets[255]. - The net interest margin decreased to 2.73% for the three months ended September 30, 2021, compared to 3.08% for the same period in 2020[256]. - Total noninterest income decreased by 53% to $8.3 million for the three months ended September 30, 2021, down from $17.8 million in the same period in 2020[258]. - Gain on sale of loans for the three months ended September 30, 2021 was $3.3 million, a 73% decrease from $12.2 million in the same period in 2020[259]. - Noninterest expenses totaled $109.9 million for the nine months ended September 30, 2021, a 1% increase from $109.2 million for the same period in 2020[279]. - Salaries and employee benefits increased by $9.5 million or 18% to $63.8 million for the nine months ended September 30, 2021 compared to $54.3 million for the same period in 2020[280]. - Income tax expenses increased by 45% to $46 million for the nine months ended September 30, 2021 compared to the same period in 2020[284]. - The efficiency ratio was 41.7% for the three months ended September 30, 2021, compared to 38.1% for the same period in 2020[262]. Assets and Deposits - Total assets increased to $11.83 billion at September 30, 2021 from $10.47 billion at the end of 2020[295]. - Total assets increased to $11,600,210, up from $10,084,081 in the previous year, representing a growth of approximately 15.06%[1]. - Total deposits increased by 18.2% year-over-year, with average deposits up 15.8% for the three months ended September 30, 2021[264]. - Total deposits rose to $9.7 billion at September 30, 2021, compared to $9.2 billion at December 31, 2020[353]. - Noninterest bearing deposits increased by $27.1 million, while interest bearing deposits rose by $452.2 million for the nine months ended September 30, 2021[368]. - Total deposits included $2.7 billion of brokered deposits, representing 28.3% of total deposits, an increase from 26.2% at December 31, 2020[369]. - The Company had $2.84 billion in noninterest bearing demand deposits, representing 29% of total deposits as of September 30, 2021, compared to 31% at December 31, 2020[372]. Interest Rates and Risk Management - The simulation analysis indicated a 33.8% increase in net interest income with a 400 basis point increase in interest rates[402]. - The Company expects that if interest rates increase by 100 basis points, net interest income and net interest margin will increase modestly due to significant volumes of variable rate assets[413]. - Conversely, if interest rates decline by 100 basis points, net interest income and margin are expected to decline modestly as the impact of lower market rates on liquid assets outweighs the ability to lower interest rates on interest-bearing liabilities[415]. - The Company’s overall interest rate risk position is primarily assessed through simulation analysis rather than solely relying on gap position changes[411]. - Current strategies for maximizing interest income have been deemed appropriate in light of economic and interest rate trends[412]. Operational Changes and COVID-19 Impact - The Company continues to monitor the impact of COVID-19 on its operations and financial results, with uncertainties remaining for 2021 and 2022[238]. - The Company has implemented a hybrid workplace model, allowing employees to work remotely part of the week while ensuring at least 50% of staff are in the office daily[231]. - The Bank is actively monitoring rent collections and working with commercial real estate borrowers to manage potential impacts from the pandemic[366]. - Accommodation and Food Services industry exposure represents 9.1% of the Bank's loan portfolio, indicating heightened risk from the COVID-19 pandemic[364]. Capital and Equity - The ratio of common equity to total assets increased to 11.49% at September 30, 2021 from 11.16% at December 31, 2020[285]. - Total shareholders' equity increased by $90.8 million to $1.33 billion as of September 30, 2021, from $1.24 billion at December 31, 2020[354]. - The total risk-based capital ratio was 16.59% at September 30, 2021, compared to 17.04% at December 31, 2020[355]. - The common equity tier 1 (CET1) risk-based capital ratio improved to 15.33% at September 30, 2021, from 13.49% at December 31, 2020[355]. - Management continuously monitors capital adequacy to support anticipated asset growth and absorb potential losses[418]. - The Company maintains a capital structure to ensure an adequate level of capital, with internal minimum targets for regulatory capital ratios exceeding well-capitalized ratios[421].

Eagle Bancorp, Inc. (NASDAQ:EGBN) Q3 2021 Earnings Conference Call October 21, 2021 10:00 AM ET Company Participants Charles Levingston - Chief Financial Officer Susan Riel - President and CEO Jan Williams - Chief Credit Officer Conference Call Participants Casey Whitman - Piper Sandler Catherine Mealor - KBW Brody Preston - Stephens, Inc. Operator Good day, everyone. And welcome to the Eagle Bancorp’s Third Quarter 2021 Earnings Conference Call. At this time, all participants are in a listen-only mode. Fol ...

Financial Performance - Net income for Q2 2021 was $48.0 million, a 66% increase from $28.9 million in Q2 2020, with earnings per share rising to $1.50 from $0.90, a 67% increase [256]. - Total revenue for Q2 2021 was $95.6 million, up from $93.9 million in Q2 2020, driven by net interest income of $84.6 million, which increased from $81.4 million [258]. - The annualized return on average assets (ROAA) for Q2 2021 was 1.68%, compared to 1.12% in Q2 2020, while return on average common equity (ROACE) increased to 14.92% from 9.84% [271]. - The efficiency ratio for Q2 2021 was 37.14%, slightly improved from 37.18% in Q2 2020, indicating effective cost management [264]. - The provision for credit losses decreased to a reversal of $6.2 million for the six months ended June 30, 2021, compared to a provision of $34.0 million for the same period in 2020, primarily due to an improved macroeconomic outlook [280]. - Total noninterest income increased to $21.5 million for the six months ended June 30, 2021, a 20% increase from $18.0 million in the same period in 2020 [281]. Loan and Credit Quality - As of June 30, 2021, the outstanding balance of Paycheck Protection Program (PPP) loans was $238.0 million through 537 business loans, with an average yield of 6.13% for the first six months of 2021 [237]. - The Company sold a total of $169.8 million of PPP loans during the second quarter of 2021, recognizing $4.7 million in accelerated interest income from these sales [237]. - Total loans decreased by 6.5% from $7.8 billion at December 31, 2020, to $7.3 billion at June 30, 2021, with average loans down 3.6% year-over-year [278]. - The Company recorded a negative provision for credit losses for the three months ended June 30, 2021, due to improving economic forecasts and credit quality [242]. - Nonperforming assets totaled $54.5 million at June 30, 2021, representing 0.50% of total assets, down from $65.9 million or 0.59% of total assets at December 31, 2020 [316]. - Total nonperforming loans amounted to $49.5 million at June 30, 2021, which is 0.68% of total loans, compared to $60.9 million or 0.79% of total loans at December 31, 2020 [324]. Deposits and Funding - Average deposits increased by 18.2% for the first six months of 2021 compared to the same period in 2020, despite total deposits being 1.9% lower than at December 31, 2020 [278]. - Total deposits decreased to $9.0 billion as of June 30, 2021, from $9.2 billion at December 31, 2020 [357]. - Noninterest bearing demand deposits grew to $3,175,419 million, compared to $2,566,348 million in the previous year [299]. - The cost of funds decreased to 0.37% from 0.65% year-over-year [299]. Investment Portfolio - The investment portfolio increased by 46.0% to $1.7 billion as of June 30, 2021, due to cash deployment from deposit inflows [355]. - The duration of the investment portfolio increased to 4.3 years at June 30, 2021, from 3.2 years at December 31, 2020 [394]. - The net unrealized gain before income tax on the investment portfolio was $6.7 million at June 30, 2021, down from $21.8 million at June 30, 2020 [397]. Risk Management - The Company has implemented heightened risk management procedures for its commercial real estate portfolio, including periodic stress testing [420]. - The company continues to monitor its concentration in commercial real estate lending to remain compliant with federal guidance [420]. - The Company continues to monitor early signs of deterioration in borrowers' financial conditions to mitigate risk effectively [317]. Capital and Shareholder Returns - The ratio of common equity to total assets increased to 11.92% at June 30, 2021, from 11.16% at December 31, 2020, due to earnings of $91.5 million [289]. - The total risk-based capital ratio improved to 17.98% as of June 30, 2021, up from 17.04% at December 31, 2020 [359]. - The Company initiated a repurchase program allowing for the repurchase of up to 1,588,848 shares, with 1,466 shares repurchased in Q1 2021 for $62,000 [424]. - A quarterly cash dividend of $0.35 per share was announced on June 30, 2021, payable on August 2, 2021 [425].

Eagle Bancorp, Inc. (NASDAQ:EGBN) Q2 2021 Results Conference Call July 22, 2021 10:00 AM ET Company Participants Susan Riel - President and Chief Executive Officer Charles Levingston - Chief Financial Officer Janice Williams - Chief Credit Officer Conference Call Participants Casey Whitman - Piper Sandler David Bishop - Seaport Research Partners Catherine Mealor - KBW Brody Preston - Stephens, Inc Christopher Marinac - Janney Montgomery Scott David Bishop - Seaport Research Partners Operator Good day and th ...