While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use a v ...

Eagle Bancorp, Inc. (NASDAQ:EGBN) Q3 2024 Earnings Conference Call October 24, 2024 10:00 AM ET Company Participants Eric Newell - CFO Susan Riel - President and CEO Janice Williams - Chief Credit Officer Kevin Geoghagen - Incoming Chief Credit Officer Conference Call Participants Justin Crowley - Piper Sandler Catherine Mealor - KBW Christopher Marinac - Janney Montgomery Scott Operator Good day and thank you for standing by. Welcome to the Eagle Bancorp Inc. Third Quarter 2024 Earnings Conference Call. At ...

Core Viewpoint - Eagle Bancorp, Inc. held its Q3 2024 earnings conference call, indicating a focus on financial performance and future outlook [1][2]. Group 1: Company Overview - The conference call featured key participants including the CFO, President and CEO, and Chief Credit Officer, highlighting the leadership team involved in the financial discussion [1]. - The call was recorded and included a question-and-answer session, suggesting an interactive approach to investor communication [1]. Group 2: Financial Information - The CFO reminded participants that some comments made during the call are forward-looking statements, emphasizing the uncertainty in predicting future performance [2]. - The company referenced its Form 10-K for the 2023 fiscal year and current reports on Form 8-K, which include earnings presentation slides and risk factors that could impact actual results [2]. - Non-GAAP financial information was mentioned, with reconciliations available in the earnings release posted on the investor relations section of the website [3].

Core Insights - Eagle Bancorp reported revenue of $78.79 million for the quarter ended September 2024, reflecting a 2.2% increase year-over-year [1] - The company's EPS was $0.72, down from $0.91 in the same quarter last year [1] - Revenue fell short of the Zacks Consensus Estimate of $80.31 million, resulting in a surprise of -1.88% [1] - The EPS exceeded expectations with a surprise of +60.00%, compared to the consensus estimate of $0.45 [1] Financial Metrics - Net Interest Margin was reported at 2.4%, slightly below the estimated 2.5% [1] - Efficiency Ratio stood at 55.4%, higher than the average estimate of 53.8% [1] - Total noninterest income reached $6.95 million, surpassing the estimated $5.03 million [1] - Net Interest Income was $71.84 million, below the average estimate of $75.28 million [1] Stock Performance - Eagle Bancorp shares have returned +3.9% over the past month, outperforming the Zacks S&P 500 composite's +2.7% change [2] - The stock currently holds a Zacks Rank 2 (Buy), indicating potential for outperformance in the near term [2]

Eagle Bancorp (EGBN) came out with quarterly earnings of $0.72 per share, beating the Zacks Consensus Estimate of $0.45 per share. This compares to earnings of $0.91 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 60%. A quarter ago, it was expected that this bank holding company would post earnings of $0.33 per share when it actually produced earnings of $0.67, delivering a surprise of 103.03%.Over the last four quarters, the ...

Eagle Bancorp (EGBN) appears an attractive pick, as it has been recently upgraded to a Zacks Rank #2 (Buy). An upward trend in earnings estimates -- one of the most powerful forces impacting stock prices -- has triggered this rating change.The sole determinant of the Zacks rating is a company's changing earnings picture. The Zacks Consensus Estimate -- the consensus of EPS estimates from the sell-side analysts covering the stock -- for the current and following years is tracked by the system.The power of a ...

BETHESDA, Md., Aug. 30, 2024 (GLOBE NEWSWIRE) -- Eagle Bancorp, Inc. (NASDAQ: EGBN), the Bethesda-based holding company of EagleBank, one of the largest community banks in the Washington D.C. area, today announced that Evelyn Lee will join the Bank as Chief Lending Officer for Commercial and Industrial (C&I) Lending. In this position, Ms. Lee will oversee all lending production and portfolio management activities within the C&I Lending Division, a significant strategic growth area for EagleBank. She will be ...

Investors in Eagle Bancorp, Inc. (EGBN) need to pay close attention to the stock based on moves in the options market lately. That is because the Sep 20, 2024 $2.50 Put had some of the highest implied volatility of all equity options today. What is Implied Volatility? Implied volatility shows how much movement the market is expecting in the future. Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. It could a ...

[Part I - Financial Information](index=3&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) [Item 1. Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) This section presents Eagle Bancorp, Inc.'s unaudited Consolidated Financial Statements as of June 30, 2024, highlighting a significant net loss driven by a $104.2 million goodwill impairment and increased credit loss allowance Consolidated Balance Sheet Highlights (Unaudited) | Metric | June 30, 2024 | December 31, 2023 | | :--- | :--- | :--- | | **Total Assets** | $11,302,023 thousand | $11,664,538 thousand | | **Total Loans, net** | $7,895,438 thousand | $7,882,755 thousand | | **Total Deposits** | $8,267,348 thousand | $8,808,039 thousand | | **Total Liabilities** | $10,132,564 thousand | $10,390,255 thousand | | **Total Shareholders' Equity** | $1,169,459 thousand | $1,274,283 thousand | Consolidated Statements of Operations Highlights (Unaudited) | Metric | Three Months Ended June 30, 2024 | Three Months Ended June 30, 2023 | Six Months Ended June 30, 2024 | Six Months Ended June 30, 2023 | | :--- | :--- | :--- | :--- | :--- | | **Net Interest Income** | $71,353 thousand | $71,811 thousand | $146,051 thousand | $146,835 thousand | | **Provision for Credit Losses** | $8,959 thousand | $5,238 thousand | $44,134 thousand | $11,402 thousand | | **Goodwill Impairment** | $104,168 thousand | $0 | $104,168 thousand | $0 | | **Net (Loss) Income** | $(83,802) thousand | $28,692 thousand | $(84,140) thousand | $52,926 thousand | | **Diluted (Loss) Earnings Per Share** | $(2.78) | $0.94 | $(2.79) | $1.72 | - For the six months ended June 30, 2024, net cash provided by operating activities was **$58.1 million**, a decrease from **$91.5 million** in the same period of 2023, with net cash used in financing activities increasing to **$268.9 million** from **$206.5 million** due to a larger net decrease in deposits[15](index=15&type=chunk) [Note 1. Summary of Significant Accounting Policies](index=10&type=section&id=Note%201.%20Summary%20of%20Significant%20Accounting%20Policies) This note outlines core accounting policies, including a full goodwill impairment charge in Q2 2024 due to sustained stock price decline and enhanced CECL model incorporating new macroeconomic variables - During Q2 2024, management identified a triggering event for goodwill impairment due to the sustained decrease in the company's stock price, which traded below book value for over a year, leading to a quantitative test and a **full impairment of goodwill**[61](index=61&type=chunk) - In Q1 2024, the company enhanced its CECL model to incorporate three additional macroeconomic variables (CRE Price Index, House Price Index, GDP) alongside national unemployment, using a weighted approach across three economic scenarios (baseline, upside, downside) over an 18-month forecast period[35](index=35&type=chunk) [Note 3. Investment Securities](index=18&type=section&id=Note%203.%20Investment%20Securities) This note details the investment securities portfolio, showing significant unrealized losses in AFS and HTM categories primarily due to market interest rate changes, not credit quality Investment Securities Summary (June 30, 2024) | Category | Amortized Cost | Estimated Fair Value | Gross Unrealized Losses | | :--- | :--- | :--- | :--- | | **Available-for-Sale** | $1,584,435 thousand | $1,420,618 thousand | $(163,830) thousand | | **Held-to-Maturity** | $984,967 thousand | $856,275 thousand | $(128,692) thousand | - Unrealized losses as of June 30, 2024, were primarily due to changes in market interest rates and were considered temporary, with no intent or expectation to sell before anticipated recovery[81](index=81&type=chunk) [Note 4. Loans and Allowance for Credit Losses](index=23&type=section&id=Note%204.%20Loans%20and%20Allowance%20for%20Credit%20Losses) This note details the loan portfolio and ACL, showing a slight increase in total loans to **$8.0 billion**, a significant ACL increase to **$106.3 million**, and higher nonaccrual loans Loan Portfolio Composition | Loan Category | June 30, 2024 | December 31, 2023 | | :--- | :--- | :--- | | Commercial | $1,238,261 thousand | $1,473,766 thousand | | Income-producing - CRE | $4,217,525 thousand | $4,094,614 thousand | | Owner-occupied - CRE | $1,263,714 thousand | $1,172,239 thousand | | Construction - Commercial & Residential | $1,063,764 thousand | $969,766 thousand | | **Total Loans** | **$8,001,739 thousand** | **$7,968,695 thousand** | Allowance for Credit Losses (ACL) Activity - Six Months Ended June 30 | Metric | 2024 | 2023 | | :--- | :--- | :--- | | **Beginning Balance** | $85,940 thousand | $74,444 thousand | | **Net Charge-offs** | $(23,717) thousand | $(6,573) thousand | | **Provision for Credit Losses** | $44,078 thousand | $10,158 thousand | | **Ending Balance** | **$106,301 thousand** | **$78,029 thousand** | - Nonaccrual loans increased to **$93.2 million** at June 30, 2024, from **$65.5 million** at December 31, 2023[106](index=106&type=chunk) [Note 6. Goodwill and Intangibles](index=33&type=section&id=Note%206.%20Goodwill%20and%20Intangibles) This note details the full impairment of goodwill in Q2 2024, resulting in a **$104.2 million** non-cash charge that reduced the balance to zero without impacting cash flows or regulatory capital - A triggering event in Q2 2024 led to a quantitative impairment test, resulting in a **full goodwill impairment charge of $104.2 million**, which reduced the carrying value of goodwill to zero[121](index=121&type=chunk) - The goodwill impairment charge is a non-cash event and did not impact the company's cash flows, liquidity ratios, core operating performance, or regulatory capital ratios[121](index=121&type=chunk) [Note 8. Deposits](index=35&type=section&id=Note%208.%20Deposits) Total deposits decreased to **$8.27 billion** at June 30, 2024, primarily due to a decline in noninterest-bearing demand deposits, with brokered deposits comprising **46.9%** of the total Deposit Composition | Deposit Type | June 30, 2024 | December 31, 2023 | | :--- | :--- | :--- | | Noninterest-bearing demand | $1,693,955 thousand | $2,279,081 thousand | | Interest-bearing transaction | $1,123,980 thousand | $997,448 thousand | | Savings and money market | $3,165,314 thousand | $3,314,043 thousand | | Time deposits | $2,284,099 thousand | $2,217,467 thousand | | **Total Deposits** | **$8,267,348 thousand** | **$8,808,039 thousand** | - At June 30, 2024, total brokered deposits were **$3.9 billion**, representing **46.9%** of total deposits, including **$1.5 billion** from reciprocal CDARS and ICS two-way accounts[132](index=132&type=chunk) [Note 9. Borrowings](index=36&type=section&id=Note%209.%20Borrowings) Borrowings increased to **$1.7 billion** at June 30, 2024, primarily from FHLB and FRB BTFP, with **$70 million** in subordinated notes maturing in September 2024 Borrowings Summary | Borrowing Source | June 30, 2024 | December 31, 2023 | | :--- | :--- | :--- | | FHLB | $590,000 thousand | $0 | | FRB: BTFP | $1,000,000 thousand | $1,300,000 thousand | | Subordinated notes | $69,979 thousand | $69,918 thousand | | **Total Borrowings** | **$1,699,199 thousand** | **$1,400,505 thousand** | - The company has **$70 million** of 5.75% subordinated notes maturing on September 1, 2024, and is considering refinancing options expected to carry a higher interest rate[139](index=139&type=chunk)[140](index=140&type=chunk) [Note 13. Legal Contingencies](index=45&type=section&id=Note%2013.%20Legal%20Contingencies) The company is cooperating with an ongoing U.S. Attorney's Office investigation into its anti-money laundering controls from 2011-2017, but cannot estimate potential losses due to uncertainty - The company is cooperating with an ongoing investigation by the U.S. Attorney's Office into its anti-money laundering controls between approximately 2011 and 2017[172](index=172&type=chunk) - Due to the uncertainty of the investigation, the company cannot reasonably estimate potential losses, if any, resulting from this matter[172](index=172&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=46&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the Q2 2024 net loss of **$83.8 million** driven by a **$104.2 million** goodwill impairment, increased credit loss provision, and higher expenses, alongside financial condition changes and strong capital ratios [Results of Operations](index=49&type=section&id=Results%20of%20Operations) The company reported a **$83.8 million** net loss for Q2 2024, primarily due to a **$104.2 million** goodwill impairment, higher credit loss provisions, and increased FDIC insurance expenses - The primary driver for the **$112.5 million** decrease in net income for Q2 2024 compared to Q2 2023 was a **$104.2 million** goodwill impairment charge[196](index=196&type=chunk) - The provision for credit losses increased by **$3.7 million** year-over-year for the quarter, mainly due to updated qualitative factors and increased reserves for the performing CRE office portfolio[196](index=196&type=chunk) - FDIC insurance expense increased **129%** to **$5.9 million** for Q2 2024 compared to **$2.6 million** in Q2 2023, contributing to higher operating noninterest expenses[235](index=235&type=chunk) [Financial Condition](index=59&type=section&id=Financial%20Condition) Total assets decreased by **3.1%** to **$11.3 billion** due to goodwill impairment and lower securities, while loans grew modestly to **$8.0 billion**, deposits fell to **$8.3 billion**, and ACL increased to **1.33%** of total loans - Total assets decreased by **$362.5 million (3.1%)** since December 31, 2023, primarily due to the goodwill impairment and decreases in investment securities[242](index=242&type=chunk) - The loan portfolio includes a substantial concentration in Commercial Real Estate (CRE), totaling **$6.4 billion** or **80.5%** of total loans, with the CRE office portfolio comprising **$887.4 million** or **11.1%** of total loans[256](index=256&type=chunk) - The ACL for loans increased to **$106.3 million (1.33% of total loans)** from **$85.9 million (1.08% of total loans)** at year-end, driven by a **$44.1 million** provision and **$23.7 million** in net charge-offs in the first half of 2024[264](index=264&type=chunk) - Nonperforming assets rose to **$98.9 million (0.88% of total assets)** from **$66.6 million (0.57% of total assets)** at year-end 2023, mainly due to an increase in nonperforming loans[273](index=273&type=chunk) [Liquidity and Capital Resources](index=72&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains a strong liquidity position with **$6.6 billion** in sources and capital ratios well above 'well-capitalized' minimums, despite the net loss and goodwill impairment Regulatory Capital Ratios (Company) | Ratio | June 30, 2024 | December 31, 2023 | Minimum to be Well-Capitalized | | :--- | :--- | :--- | :--- | | **CET1 Capital Ratio** | 13.92% | 13.90% | 6.50% | | **Tier 1 Capital Ratio** | 13.92% | 13.90% | 8.00% | | **Total Risk-Based Capital Ratio** | 15.07% | 14.79% | 10.00% | | **Tier 1 Leverage Ratio** | 10.58% | 10.73% | 5.00% | - The company has total available secondary liquidity of **$5.5 billion**, including borrowing capacity from the FHLB, FRB Discount Window, and unpledged securities[313](index=313&type=chunk) - The company's construction, land, and land development loans represent **121%** of total risk-based capital, exceeding one of the regulatory concentration thresholds, which requires heightened risk management[316](index=316&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=77&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This section details interest rate risk management, showing a moderate impact on net interest income from rate shocks, with **61%** of the loan portfolio being variable or adjustable rate Interest Rate Sensitivity Analysis (as of June 30, 2024) | Change in Interest Rates (bps) | Percentage Change in Net Interest Income | Percentage Change in Net Income | Percentage Change in Market Value of Portfolio Equity | | :--- | :--- | :--- | :--- | | +400 | 0.1% | 0.9% | (7.9)% | | +200 | 0.2% | 0.8% | (3.4)% | | +100 | 0.2% | 0.7% | (1.4)% | | -100 | 1.0% | 2.4% | 1.0% | | -200 | 2.4% | 5.7% | 0.4% | - At June 30, 2024, **61%** of the total loan portfolio consisted of variable and adjustable rate loans, while **39%** were fixed-rate loans[330](index=330&type=chunk) [Item 4. Controls and Procedures](index=83&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that the company's disclosure controls and procedures were effective as of June 30, 2024, with no material changes to internal control over financial reporting during Q2 2024 - Management concluded that the company's disclosure controls and procedures were effective as of June 30, 2024[363](index=363&type=chunk) - No changes in internal control over financial reporting that materially affected, or are reasonably likely to materially affect, internal controls were identified during the second quarter of 2024[364](index=364&type=chunk) [Part II - Other Information](index=84&type=section&id=PART%20II.%20OTHER%20INFORMATION) [Item 1. Legal Proceedings](index=84&type=section&id=Item%201.%20Legal%20Proceedings) This section incorporates Note 13, detailing the company's cooperation with an ongoing U.S. Attorney's Office investigation into anti-money laundering controls from 2011-2017 - The company is cooperating with an ongoing investigation by the U.S. Attorney's Office for the Middle District of Pennsylvania regarding its anti-money laundering controls from approximately 2011 to 2017[172](index=172&type=chunk)[366](index=366&type=chunk) [Item 1A. Risk Factors](index=84&type=section&id=Item%201A.%20Risk%20Factors) The company reports no material changes to the risk factors previously disclosed in its 2023 Annual Report on Form 10-K - There have been no material changes to the company's risk factors from those disclosed in the 2023 Annual Report on Form 10-K[367](index=367&type=chunk) [Other Items (Items 2, 3, 4, 5, 6)](index=84&type=section&id=Other%20Items%20%28Items%202%2C%203%2C%204%2C%205%2C%206%29) This section confirms no unregistered equity sales or senior security defaults, and lists exhibits including officer certifications and interactive data files - The company reported no unregistered sales of equity securities, use of proceeds, or defaults upon senior securities during the period[367](index=367&type=chunk) - The report includes exhibits such as officer certifications (Rule 31) and interactive data files (XBRL)[369](index=369&type=chunk)

BETHESDA, Md., Aug. 01, 2024 (GLOBE NEWSWIRE) -- EagleBank (NASDAQ: EGBN), one of the largest community banks in the Washington, D.C. area, today announced it has hired Hetal Desai as Chief Risk Officer (CRO). Ms. Desai will support EagleBank's continued role as a trusted partner for clients and customers and play a pivotal role in managing risk for the Bank as it enhances its lines of business. Ms. Desai joins EagleBank with global expertise in risk management across top tier multinational financial instit ...