0001050441☐00010504412024-07-242024-07-24

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
FORM 8-K
 
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): July 24, 2024
 
EAGLE BANCORP, INC.
(Exact name of registrant as specified in its charter)
 
Maryland0-2592352-2061461
(State or Other Jurisdiction of Incorporation)(Commission File Number)(I.R.S. Employer Identification No.)
7830 Old Georgetown Road, Third Floor
Bethesda, Maryland 20814
(Address of Principal Executive Offices) (Zip Code)
(301) 986-1800
(Registrant's telephone number, including area code)

(Former name or former address, if changed since last report)
 
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
☐Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common Stock, $0.01 par valueEGBN
The Nasdaq Stock Market LLC
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company,indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐


Item 2.02. Results of Operations and Financial Condition.
On July 24, 2024, Eagle Bancorp, Inc. (the "Company") issued a press release, a copy of which is attached hereto as Exhibit 99.1 and is incorporated herein by reference.
Item 7.01. Regulation FD Disclosure.
Attached as Exhibit 99.2 to this report is the presentation for the Company's earnings conference call on July 25, 2024, which also may be used in connection with potential meetings with investors and/or analysts. The Company does not undertake to update the information contained in the attached presentation materials.
The information contained in this Current Report on Form 8-K that is furnished under Items 2.02 and 7.01, including the accompanying Exhibits 99.1 and 99.2, is being furnished pursuant to Items 2.02 and 7.01 of Form 8-K and shall not be deemed to be "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or otherwise subject to the liability of that section. The information contained in this Current Report on Form 8-K that is furnished under Items 2.02 and 7.01, including the accompanying Exhibits 99.1 and 99.2, shall not be incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Exchange Act, whether made before or after the date hereof, except as shall be expressly set forth by specific reference in such a filing.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits.
Exhibit Number Description
   
 Press Release dated July 24, 2024
Earnings Presentation
104 Cover Page Interactive Data File (embedded within the Inline XBRL document)


SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
 EAGLE BANCORP, INC.
   
  
Date: July 24, 2024By:/s/ Eric R. Newell        
  Eric R. Newell
  Executive Vice President, Chief Financial Officer




imagea.jpg
PRESS RELEASE FOR
EAGLE BANCORP, INC.
IMMEDIATE RELEASECONTACT:
Eric R. Newell
July 24, 2024
240.497.1796
EAGLE BANCORP, INC. ANNOUNCES SECOND QUARTER 2024 RESULTS
Eagle grows Common Equity Tier 1 Capital and Tier 1 Capital leverage ratio to 13.9% and 10.6%, respectively

BETHESDA, MD, Eagle Bancorp, Inc. (NASDAQ: EGBN), ("Eagle", "the Company", "we", "us", "our"), the Bethesda-based parent company of EagleBank (the "Bank"), reported its unaudited results for the second quarter ended June 30, 2024.
Eagle recorded a $104.2 million impairment in the value of goodwill and a resulting net loss of $83.8 million or $2.78 per share for the second quarter 2024. The goodwill impairment does not impact our cash, liquidity ratios, core operating performance, or regulatory capital ratios. Operating net income1, adjusted to exclude the impairment charge on goodwill, was $20.4 million or $0.67 per diluted share. We increased the Tier 1 capital leverage ratio to 10.6% and continue to grow the number of core deposit relationships.

"The Company's operating results materially improved from the first quarter due to a normalization of charge-offs from our loan portfolio. We continue to execute on our strategic plan as evidenced by initiatives such as the addition of the Expatriate Banking Services Division and the continued success of our digital banking channel driving our objective of further diversification of deposits and reducing the use of wholesale funding sources" said Susan G. Riel, President and Chief Executive Officer of the Company.
Ms. Riel continued, "I'm encouraged by our team's continued resilience, consistently upholding our brand and community role while serving as trusted partners to our customers. I am excited about EagleBank’s future prospects and its capacity to support our communities and customers for years ahead."
Eric R. Newell, Chief Financial Officer of the Company said, "While the Company experienced a net loss on a GAAP basis due to the impairment charge on goodwill, operating performance significantly improved from last quarter evidenced by operating net income1 increasing $20.7 million to $20.4 million in the second quarter. We continued to build our reserve for credit losses, with coverage to total held for investment loans at 1.33% increasing 8 basis points from last quarter. Common equity tier one capital
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.
1




increased to 13.9% and our tangible common equity1 ratio exceeds 10%. Our efforts remain laser focused on the continued implementation of our strategic objectives2."
Ms. Riel added, "I thank all of our employees for their hard work and dedication. Additionally, we remain committed to a culture of respect, diversity and inclusion in both the workplace and the communities we serve."
Second Quarter 2024 Highlights
•The ACL as a percentage of total held for investment loans was 1.33% at quarter-end; up from 1.25% at the prior quarter-end. Performing office coverage3 was 4.05% at quarter-end; as compared to 3.67% at the prior quarter-end.
•Nonperforming assets increased $6.7 million as of June 30, 2024 and were 0.88% of total assets compared to 0.79% as of March 31, 2024 largely due to increases from construction and income producing commercial real estate loans.
•Net charge-offs for the second quarter were 0.11% compared to 1.07% for the first quarter 2024. The decline in charge-offs reflects a charge-off in the first quarter that did not repeat in the second quarter.
•The net interest margin ("NIM") declined slightly to 2.40% for the second quarter 2024, compared to 2.43% for the prior quarter. While interest rates on earning assets remained stable, we saw costs on interest bearing liabilities increase 8 basis points driven by refinancing of maturing Bank Term Funding Program (“BTFP”) borrowings with Federal Home Loan Bank of Atlanta (“FHLB”) borrowings toward the end of the first quarter.
•The Company declared a quarterly dividend of $0.45 per share.
•At quarter-end, the common equity ratio, tangible common equity ratio, and common equity tier 1 capital (to risk-weighted assets) ratio were 10.35%, 10.35%, and 13.92%, respectively.
•Loans at quarter-end were $8.0 billion, up $19.0 million, or 0.2%, from the prior quarter-end.
•Deposits at quarter-end were $8.3 billion, down $234.1 million, or 2.8%, from the prior quarter-end. The decrease was primarily attributable to a decline in deposits from a third party payment processor related to the fluctuations in deposit levels resulting from its business, as well as a decline in public and brokered funding. Period end deposits have increased $549 million when compared to June 30, 2023.
•Total estimated insured deposits at quarter-end were $6.0 billion, or 72.5% of deposits.
•Total on-balance sheet liquidity and available capacity was $4.0 billion at quarter-end. Capacity was increased from the prior quarter as a result of pledging additional collateral to the FRB Discount window.
Income Statement
•Net interest income was $71.4 million for the second quarter 2024, compared to $74.7 million for the prior quarter. The decrease in net interest income was primarily driven by a decrease in the average balances of deposits held with other banks offset by lower average interest bearing liabilities with a higher rate during the second quarter as compared to the first quarter.
2 Refer to the 2nd Quarter 2024 Earnings Presentation that accompanies this release for further detail on the strategic objectives of the Company.
3 Calculated as the ACL attributable to loans collateralized by performing office properties as a percentage of total loans.
2




•Provision for credit losses was $9.0 million for the second quarter 2024, compared to $35.2 million for the prior quarter. The provision for the second quarter was driven by updates to the qualitative components of the CECL model. The decrease in the provision quarter over quarter reflects a higher provision in the first quarter due to a significant charge-off that did not repeat in the second quarter.
•Noninterest income was $5.3 million for the second quarter 2024, compared to $3.6 million for the prior quarter. The primary driver for the increase related to other income associated with the sale of a small mortgage servicing rights portfolio related to the FHA Multifamily business.
•Noninterest expense was $146.5 million for the second quarter 2024, compared to $40.0 million for the prior quarter. The increase over the comparative quarters was primarily due to a goodwill impairment charge of $104.2 million in the second quarter 2024. Excluding the goodwill impairment charge, our operating noninterest expense4 was $42.3 million for the second quarter 2024. Aside from the goodwill impairment charge, the increase was associated with other expenses lead by real estate taxes.

Loans and Funding
•Total loans were $8.0 billion at June 30, 2024, up 0.2% from the prior quarter-end. The increase in total loans was driven by increased fundings of ongoing construction projects for commercial and residential properties, partially offset by a reduction in commercial loans from the prior quarter-end.
At June 30, 2024, income-producing commercial real estate loans secured by office properties other than owner-occupied properties were 11.3% of the total loan portfolio at principal, up from 11.2% at the prior quarter-end.
•Total deposits were $8.3 billion at June 30, 2024, down 2.8% from the prior quarter-end. The decrease was primarily attributable to a decline in deposits from a third party payment processor related to the fluctuations in deposit levels resulting from its business, as well as declines in some public and brokered funding.
•Borrowings were $1.7 billion at June 30, 2024, down 0.6% from the prior quarter-end.
Asset Quality
•Allowance for credit losses was 1.33% of total loans at June 30, 2024, compared to 1.25% at the prior quarter-end. Performing office coverage was 4.05% at quarter-end; as compared to 3.67% at the prior quarter-end.
•Net charge-offs were $2.3 million for the quarter compared to $21.4 million in the first quarter of 2024.
•Nonperforming assets were $98.9 million at June 30, 2024.
◦NPAs as a percentage of assets were 0.88% at June 30, 2024, compared to 0.79% at the prior quarter-end. At June 30, 2024, other real estate owned consisted of four properties with an aggregate carrying value of $773 thousand.
◦Loans 30-89 days past due were $8.4 million at June 30, 2024, down from $31.1 million at the prior.
4 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.
3




Capital
•Total shareholders' equity was $1.2 billion at June 30, 2024, down 7.1% from the prior quarter-end. The decrease in shareholders' equity of $90.0 million was primarily due to a goodwill impairment charge of $104.2 million.
•Book value per share was $38.75, down $2.97 from the prior quarter-end.
•Tangible book value per share5 was $38.74, up $0.48 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 June 30, 2024 as compared to the three months ended March 31, 2024 and June 30, 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 second quarter 2024 financial results on Thursday, July 25, 2024 at 10:00 a.m. Eastern Time.
The listen-only webcast can be accessed at:
•https://edge.media-server.com/mmc/p/psn698x6/
•For analysts who wish to participate in the conference call, please register at the following URL:
https://register.vevent.com/register/BId373c2f4d3af4a28a271e79bee6e0bca
•A replay of the conference call will be available on the Company's website through August 8, 2024: 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; the current inflationary environment; 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
5 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.
4

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.
5

Eagle Bancorp, Inc.
Consolidated Statements of Operations (Unaudited)
(Dollars in thousands, except per share data)
Three Months Ended
June 30,March 31,June 30,
202420242023
Interest Income
Interest and fees on loans$137,616 $137,994 $128,993 
Interest and dividends on investment securities12,405 12,680 14,241 
Interest on balances with other banks and short-term investments19,568 24,862 13,229 
Interest on federal funds sold142 66 47 
Total interest income169,731 175,602 156,510 
Interest Expense
Interest on deposits76,846 79,383 59,422 
Interest on customer repurchase agreements330 315 333 
Interest on borrowings21,202 21,206 24,944 
Total interest expense98,378 100,904 84,699 
Net Interest Income71,353 74,698 71,811 
Provision for Credit Losses8,959 35,175 5,238 
Provision for Credit Losses for Unfunded Commitments
608 456 318 
Net Interest Income After Provision for Credit Losses
61,786 39,067 66,255 
Noninterest Income
Service charges on deposits1,653 1,699 1,626 
Gain on sale of loans
37 — 95 
Net gain on sale of investment securities
3 4 2 
Increase in cash surrender value of bank-owned life insurance709 703 648 
Other income2,930 1,183 6,224 
Total noninterest income5,332 3,589 8,595 
Noninterest Expense
Salaries and employee benefits21,770 21,726 21,957 
Premises and equipment expenses2,894 3,059 3,227 
Marketing and advertising1,662 859 884 
Data processing3,495 3,293 3,354 
Legal, accounting and professional fees2,705 2,507 2,649 
FDIC insurance5,917 6,412 2,581 
Goodwill impairment
104,168 — — 
Other expenses3,880 2,141 3,326 
Total noninterest expense146,491 39,997 37,978 
(Loss) Income Before Income Tax Expense
(79,373)2,659 36,872 
Income Tax Expense4,429 2,997 8,180 
Net (Loss) Income
$(83,802)$(338)$28,692 
(Loss) Earnings Per Common Share
Basic$(2.78)$(0.01)$0.94 
Diluted$(2.78)$(0.01)$0.94 
6

Eagle Bancorp, Inc.
Consolidated Balance Sheets (Unaudited)
(Dollars in thousands, except per share data)
June 30,March 31,June 30,

202420242023
Assets
Cash and due from banks$10,803 $10,076 $9,865 
Federal funds sold5,802 11,343 3,981 
Interest-bearing deposits with banks and other short-term investments526,228 696,453 174,072 
Investment securities available-for-sale at fair value (amortized cost of $1,584,435, $1,613,659, and $1,732,722, respectively, and allowance for credit losses of $17, $17 and $17, respectively)
1,420,618 1,445,034 1,535,589 
Investment securities held-to-maturity at amortized cost, net of allowance for credit losses of $2,012, $1,957 and $2,010, respectively (fair value of $856,275, $878,159 and $923,313, respectively)
982,955 1,000,732 1,055,181 
Federal Reserve and Federal Home Loan Bank stock54,274 54,678 46,199 
Loans held for sale5,000 — — 
Loans8,001,739 7,982,702 7,766,719 
Less: allowance for credit losses
(106,301)(99,684)(78,029)
Loans, net7,895,438 7,883,018 7,688,690 
Premises and equipment, net8,788 9,504 11,979 
Operating lease right-of-use assets16,250 17,679 21,580 
Deferred income taxes86,236 87,813 92,574 
Bank-owned life insurance114,333 113,624 111,565 
Goodwill and intangible assets, net129 104,611 104,220 
Other real estate owned773 773 1,487 
Other assets174,396 177,310 177,759 
Total Assets
$11,302,023 $11,612,648 $11,034,741 
Liabilities and Shareholders' Equity
Liabilities
Deposits:
Noninterest-bearing demand
$1,693,955 $1,835,524 $2,010,353 
Interest-bearing transaction
1,123,980 1,207,566 930,308 
Savings and money market3,165,314 3,235,391 2,791,040 
Time deposits2,284,099 2,222,958 1,986,426 
Total deposits8,267,348 8,501,439 7,718,127 
Customer repurchase agreements39,220 37,059 37,017 
Borrowings
1,659,979 1,669,948 1,906,615 
Operating lease liabilities20,016 21,611 26,007 
Reserve for unfunded commitments6,653 6,045 7,023 
Other liabilities139,348 117,133 120,186 
Total Liabilities
10,132,564 10,353,235 9,814,975 
Shareholders' Equity
Common stock, par value $0.01 per share; shares authorized 100,000,000, shares issued and outstanding 30,180,482, 30,185,732, and 29,912,082, respectively
297 297 296 
Additional paid-in capital
380,142 377,334 370,278 
Retained earnings949,863 1,047,550 1,040,779 
Accumulated other comprehensive loss(160,843)(165,768)(191,587)
Total Shareholders' Equity1,169,459 1,259,413 1,219,766 
Total Liabilities and Shareholders' Equity$11,302,023 $11,612,648 $11,034,741 
7


Loan Mix and Asset Quality
(Dollars in thousands)

June 30,March 31,June 30,
202420242023
Amount%Amount%Amount%
Loan Balances - Period End:
Commercial
$1,238,261 15 %$1,473,766 18 %$1,431,284 18 %
PPP loans407 — %528 — %649 — %
Income producing - commercial real estate
4,217,525 53 %4,094,614 51 %4,086,049 53 %
Owner occupied - commercial real estate
1,263,714 16 %1,172,239 15 %1,122,334 14 %
Real estate mortgage - residential
61,338 1 %73,396 1 %76,596 1 %
Construction - commercial and residential1,063,764 13 %969,766 12 %862,869 11 %
Construction - C&I (owner occupied)99,526 1 %132,021 2 %132,843 2 %
Home equity52,773 1 %51,964 1 %53,934 1 %
Other consumer4,431 — %401 — %161 — %
Total loans$8,001,739 100 %$7,968,695 100 %$7,766,719 100 %



Three Months Ended or As Of
June 30,March 31,June 30,
202420242023
Asset Quality:
Net charge-offs
$2,285 $21,430 $5,598 
Nonperforming loans$98,169 $91,491 $29,098 
Other real estate owned$773 $773 $1,487 
Nonperforming assets$98,942 $92,264 $30,585 
Special mention$307,906 $265,348 $155,810 
Substandard$408,311 $361,776 $219,045 
8

Eagle Bancorp, Inc.
Consolidated Average Balances, Interest Yields And Rates vs. Prior Quarter (Unaudited)
(Dollars in thousands)
Three Months Ended
June 30, 2024March 31, 2024
Average BalanceInterestAverage
Yield/Rate		Average BalanceInterestAverage
Yield/Rate
ASSETS
Interest earning assets:
Interest-bearing deposits with other banks and other short-term investments
$1,455,007 $19,568 5.41 %$1,841,771 $24,862 5.43 %
Loans held for sale (1)
8,045 100 5.00 %— — — %
Loans (1) (2)
$8,003,206 137,516 6.91 %7,988,941 137,994 6.95 %
Investment securities available-for-sale (2)
1,478,856 7,048 1.92 %1,516,503 7,247 1.92 %
Investment securities held-to-maturity (2)
995,274 5,357 2.16 %1,011,231 5,433 2.16 %
Federal funds sold13,058 142 4.37 %7,051 66 3.76 %
Total interest earning assets11,953,446 $169,731 5.71 %12,365,497 $175,602 5.71 %
Total noninterest earning assets510,725 508,987 
Less: allowance for credit losses(102,671)(90,014)
Total noninterest earning assets408,054 418,973 
TOTAL ASSETS$12,361,500 $12,784,470 
LIABILITIES AND SHAREHOLDERS' EQUITY
Interest bearing liabilities:
Interest-bearing transaction
$1,636,795 $16,100 3.96 %$1,833,493 $16,830 3.69 %
Savings and money market3,321,001 33,451 4.05 %3,423,388 35,930 4.22 %
Time deposits2,215,693 27,295 4.95 %2,187,320 26,623 4.90 %
Total interest bearing deposits7,173,489 76,846 4.31 %7,444,201 79,383 4.29 %
Customer repurchase agreements38,599 330 3.44 %36,084 315 3.51 %
Borrowings
1,682,684 21,202 5.07 %1,796,863 21,206 4.75 %
Total interest bearing liabilities8,894,772 $98,378 4.45 %9,277,148 $100,904 4.37 %
Noninterest bearing liabilities:
Noninterest bearing demand2,051,777 2,057,460 
Other liabilities151,324 160,206 
Total noninterest bearing liabilities2,203,101 2,217,666 
Shareholders' equity
1,263,627 1,289,656 
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY$12,361,500 $12,784,470 
Net interest income$71,353 $74,698 
Net interest spread1.26 %1.34 %
Net interest margin2.40 %2.43 %
Cost of funds
3.61 %3.58 %
(1)Loans placed on nonaccrual status are included in average balances. Net loan fees and late charges included in interest income on loans totaled $4.8 million and $5.1 million for the three months ended June 30, 2024 and March 31, 2024, respectively.
(2)Interest and fees on loans and investments exclude tax equivalent adjustments.
9

Eagle Bancorp, Inc.
Consolidated Average Balances, Interest Yields And Rates vs. Year Ago Quarter (Unaudited)
(Dollars in thousands)
Three Months Ended June 30,
20242023
Average BalanceInterestAverage
Yield/Rate		Average BalanceInterestAverage
Yield/Rate
ASSETS
Interest earning assets:
Interest bearing deposits with other banks and other short-term investments$1,455,007 $19,568 5.41 %$1,053,961 $13,229 5.03 %
Loans held for sale (1)
8,045 100 5.00 %813 13 6.40 %
Loans (1) (2)
8,003,206 137,516 6.91 %7,790,555 128,980 6.64 %
Investment securities available-for-sale (2)
1,478,856 7,048 1.92 %1,626,330 8,526 2.10 %
Investment securities held-to-maturity (2)
995,274 5,357 2.16 %1,068,755 5,715 2.14 %
Federal funds sold13,058 142 4.37 %5,636 47 3.34 %
Total interest earning assets11,953,446 $169,731 5.71 %11,546,050 $156,510 5.44 %
Total noninterest earning assets510,725 492,426 
Less: allowance for credit losses(102,671)(78,365)
Total noninterest earning assets408,054 414,061 
TOTAL ASSETS$12,361,500 $11,960,111 
LIABILITIES AND SHAREHOLDERS' EQUITY
Interest bearing liabilities:
Interest bearing transaction$1,636,795 $16,100 3.96 %$1,312,710 $10,640 3.25 %
Savings and money market3,321,001 33,451 4.05 %2,967,678 30,861 4.17 %
Time deposits2,215,693 27,295 4.95 %1,675,690 17,921 4.29 %
Total interest bearing deposits7,173,489 76,846 4.31 %5,956,078 59,422 4.00 %
Customer repurchase agreements38,599 330 3.44 %41,105 333 3.25 %
Borrowings
1,682,684 21,202 5.07 %2,061,402 24,944 4.85 %
Total interest bearing liabilities8,894,772 $98,378 4.45 %8,058,585 $84,699 4.22 %
Noninterest bearing liabilities:
Noninterest bearing demand2,051,777 2,558,860 
Other liabilities151,324 97,019 
Total noninterest bearing liabilities2,203,101 2,655,879 
Shareholders' equity
1,263,627 1,245,647 
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY$12,361,500 $11,960,111 
Net interest income$71,353 $71,811 
Net interest spread1.26 %1.22 %
Net interest margin2.40 %2.49 %
Cost of funds
3.61 %3.20 %
(1)Loans placed on nonaccrual status are included in average balances. Net loan fees and late charges included in interest income on loans totaled $4.8 million and $7.9 million for the three months ended June 30, 2024 and 2023, respectively.
(2)Interest and fees on loans and investments exclude tax equivalent adjustments.
10

Eagle Bancorp, Inc.
Statements of Operations and Highlights Quarterly Trends (Unaudited)
(Dollars in thousands, except per share data)
Three Months Ended
June 30,March 31,December 31,September 30,June 30,March 31,December 31,September 30,
Income Statements:20242024202320232023202320222022
Total interest income$169,731 $175,602 $167,421 $161,149 $156,510 $140,247 $129,130 $111,527 
Total interest expense98,378 100,904 94,429 90,430 84,699 65,223 43,530 27,630 
Net interest income71,353 74,698 72,992 70,719 71,811 75,024 85,600 83,897 
Provision for (reversal of) credit losses8,959 35,175 14,490 5,644 5,238 6,164 (464)3,022 
Provision for (reversal of) credit losses for unfunded commitments
608 456 (594)(839)318 848 161 774 
Net interest income after provision for (reversal of) credit losses
61,786 39,067 59,096 65,914 66,255 68,012 85,903 80,101 
Noninterest income before investment gain (loss)5,329 3,585 2,891 6,342 8,593 3,721 5,326 5,304 
Net gain (loss) on sale of investment securities3 4 3 5 2 (21)3 4 
Total noninterest income5,332 3,589 2,894 6,347 8,595 3,700 5,329 5,308 
Salaries and employee benefits21,770 21,726 18,416 21,549 21,957 24,174 23,691 21,538 
Premises and equipment expenses
2,894 3,059 2,967 3,095 3,227 3,317 3,292 3,275 
Marketing and advertising1,662 859 1,071 768 884 636 1,290 1,181 
Goodwill impairment
104,168 — — — — — — — 
Other expenses15,997 14,353 14,644 12,221 11,910 12,457 10,645 10,212 
Total noninterest expense146,491 39,997 37,098 37,633 37,978 40,584 38,918 36,206 
(Loss) income before income tax expense
(79,373)2,659 24,892 34,628 36,872 31,128 52,314 49,203 
Income tax expense4,429 2,997 4,667 7,245 8,180 6,894 10,121 11,906 
Net (loss) income
$(83,802)$(338)$20,225 $27,383 $28,692 $24,234 $42,193 $37,297 
Per Share Data:
(Loss) earnings per weighted average common share, basic
$(2.78)$(0.01)$0.68 $0.91 $0.94 $0.78 $1.32 $1.16 
(Loss) earnings per weighted average common share, diluted
$(2.78)$(0.01)$0.67 $0.91 $0.94 $0.78 $1.32 $1.16 
Weighted average common shares outstanding, basic30,185,609 30,068,173 29,925,557 29,910,218 30,454,766 31,109,267 31,819,631 32,084,464 
Weighted average common shares outstanding, diluted30,185,609 30,068,173 29,966,962 29,944,692 30,505,468 31,180,346 31,898,619 32,155,678 
Actual shares outstanding at period end30,180,482 30,185,732 29,925,612 29,917,982 29,912,082 31,111,647 31,346,903 32,082,321 
Book value per common share at period end$38.75 $41.72 $42.58 $40.64 $40.78 $39.92 $39.18 $38.02 
Tangible book value per common share at period end (1)
$38.74 $38.26 $39.08 $37.12 $37.29 $36.57 $35.86 $34.77 
Dividend per common share$0.45 $0.45 $0.45 $0.45 $0.45 $0.45 $0.45 $0.45 
Performance Ratios (annualized):
Return on average assets(2.73)%(0.01)%0.65 %0.91 %0.96 %0.86 %1.49 %1.29 %
Return on average common equity(26.67)%(0.11)%6.48 %8.80 %9.24 %7.92 %13.57 %11.64 %
Return on average tangible common equity (1)
(28.96)%(0.11)%7.08 %9.61 %10.08 %8.65 %14.82 %12.67 %
Net interest margin2.40 %2.43 %2.45 %2.43 %2.49 %2.77 %3.14 %3.02 %
Efficiency ratio (2)
191.0 %51.1 %48.9 %48.8 %47.2 %51.6 %42.8 %40.6 %
Other Ratios:
Allowance for credit losses to total loans (3)
1.33 %1.25 %1.08 %1.05 %1.00 %1.01 %0.97 %1.04 %
Allowance for credit losses to total nonperforming loans110 %109 %131 %119 %268 %1,160 %1,151 %997 %
Nonperforming assets to total assets
0.88 %0.79 %0.57 %0.64 %0.28 %0.08 %0.08 %0.09 %
Net charge-offs (recoveries) (annualized) to average total loans (3)
0.11 %1.07 %0.60 %0.02 %0.29 %0.05 %0.05 %— %
Tier 1 capital (to average assets)10.58 %10.26 %10.73 %10.96 %10.84 %11.42 %11.63 %11.55 %
Total capital (to risk weighted assets)15.07 %14.87 %14.79 %14.54 %14.51 %14.74 %14.94 %15.60 %
Common equity tier 1 capital (to risk weighted assets)13.92 %13.80 %13.90 %13.68 %13.55 %13.75 %14.03 %14.64 %
Tangible common equity ratio (1)
10.35 %10.03 %10.12 %10.04 %10.21 %10.36 %10.18 %10.52 %
Average Balances (in thousands):
Total assets$12,361,500 $12,784,470 $12,283,303 $11,942,905 $11,960,111 $11,426,056 $11,255,956 $11,431,110 
Total earning assets$11,953,446 $12,365,497 $11,837,722 $11,532,186 $11,546,050 $11,004,817 $10,829,703 $11,030,670 
Total loans (3)
$8,003,206 $7,988,941 $7,963,074 $7,795,144 $7,790,555 $7,712,023 $7,379,198 $7,282,589 
Total deposits$9,225,266 $9,501,661 $9,471,369 $8,946,641 $8,514,938 $8,734,125 $9,524,139 $9,907,497 
Total borrowings$1,721,283 $1,832,947 $1,401,917 $1,646,179 $2,102,507 $1,359,463 $411,060 $158,001 
Total shareholders' equity
$1,263,627 $1,289,656 $1,238,763 $1,235,162 $1,245,647 $1,240,978 $1,233,705 $1,271,753 
(1)A reconciliation of non-GAAP financial measures to the nearest GAAP measure is provided in the tables that accompany this document.
(2)Computed by dividing noninterest expense by the sum of net interest income and noninterest income.
(3)Excludes loans held for sale.
11

GAAP Reconciliation to Non-GAAP Financial Measures (unaudited)
(dollars in thousands, except per share data)
June 30,March 31,June 30,
202420242023
Tangible common equity
Common shareholders' equity
$1,169,459 $1,259,413 $1,219,766 
Less: Intangible assets
(129)(104,611)(104,220)
Tangible common equity
$1,169,330 $1,154,802 $1,115,546 
Tangible common equity ratio
Total assets
$11,302,023 $11,612,648 $11,034,741 
Less: Intangible assets
(129)(104,611)(104,220)
Tangible assets
$11,301,894 $11,508,037 $10,930,521 
Tangible common equity ratio
10.35 %10.03 %10.21 %
Per share calculations
Book value per common share
$38.75 $41.72 $40.78 
Less: Intangible book value per common share
(0.01)(3.46)(3.49)
Tangible book value per common share
$38.74 $38.26 $37.29 
Shares outstanding at period end
30,180,482 30,185,732 29,912,082 
12

Three Months Ended
June 30,March 31,June 30,
202420242023
Average tangible common equity
Average common shareholders' equity
$1,263,627 $1,289,656 $1,245,647 
Less: Average intangible assets
(99,827)(104,718)(104,224)
Average tangible common equity
$1,163,800 $1,184,938 $1,141,423 
Return on average tangible common equity
Net (loss) income
$(83,802)$(338)$28,692 
Return on average tangible common equity
(28.96)%(0.11)%10.08 %
Net (loss) income
$(83,802)$(338)$28,692 
Add back of goodwill impairment
104,168 — — 
Operating net (loss) income (Non-GAAP)
$20,366 $(338)$28,692 
Operating Return on average tangible common equity (Non-GAAP)
7.04 %(0.11)%10.08 %
Efficiency ratio
Net interest income
$71,353 $74,698 $71,811 
Noninterest income
5,332 3,589 8,595 
Operating revenue
$76,685 $78,287 $80,406 
Noninterest expense
$146,491 $39,997 $37,978 
Add back of goodwill impairment
(104,168)— — 
Operating Noninterest expense (Non-GAAP)
42,323 39,997 37,978 
Efficiency ratio
191.03 %51.09 %47.23 %
Operating Efficiency ratio (Non-GAAP)
55.19 %51.09 %47.23 %
Pre-provision net revenue
Net interest income
$71,353 $74,698 $71,811 
Noninterest income
5,332 3,589 8,595 
Less: Noninterest expense
(146,491)(39,997)(37,978)
Pre-provision net revenue
$(69,806)$38,290 $42,428 
Pre-provision net revenue
$(69,806)$38,290 $42,428 
Add back of goodwill impairment
$104,168 $— $— 
Operating Pre-provision net revenue (Non-GAAP)
$34,362 $38,290 $42,428 

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, and the operating 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. The Company calculates the operating annualized return on average
13

tangible common equity ratio by dividing operating net income available to common shareholders, which adds back the goodwill impairment, by average tangible common equity, which is calculated by excluding the average balance of intangible assets from the average common shareholders' equity. The Company considers this information important to shareholders as the significant impact of the goodwill impairment is a one-time event that obscures the operating performance of the company. 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. Further, the operating efficiency ratio is measured by dividing non-GAAP noninterest expense, which excludes the goodwill impairment, by the sum of GAAP net interest income and GAAP noninterest income. The Company considers this information important to shareholders as the significant impact of the goodwill impairment is a one-time event that obscures the operating performance of the company.
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. Operating pre-provision net revenue is a non-GAAP financial measure calculated by subtracting noninterest expenses with the impact of the goodwill impairment added back from the sum of net interest income and noninterest income. The Company considers this information important to shareholders as the significant impact of the goodwill impairment is a one-time event that obscures the operating performance of the company.

June 30,March 31,June 30,
202420242023
Net (loss) income$(83,802)$(338)$28,692 
Add back of goodwill impairment
104,168 — — 
Operating Net (loss) income (Non-GAAP)
$20,366 $(338)$28,692 
(Loss) earnings per share (diluted)6$(2.78)$(0.01)$0.94 
Add back of goodwill impairment per share (diluted)
3.45 — — 
Operating earnings (loss) per share (diluted) (Non-GAAP)
$0.67 $(0.01)$0.94 
Operating net (loss) income and operating (loss) earnings per share (diluted) are non-GAAP financial measures derived from GAAP based amounts. The Company calculates operating net (loss) income by excluding from net (loss) income the one-time goodwill impairment of $104.2 million. During the second quarter of 2024, the Company performed an annual impairment test as a result of management's evaluation of current economic conditions, and concluded that goodwill had become impaired, which resulted in an impairment charge of $104.2 million to reduce the carrying value of the Company's goodwill to zero. The Company calculates operating earnings (loss) per share (diluted) by dividing the one-time goodwill impairment of $104.2 million by the weighted average shares outstanding (diluted) for the three and six months ended June 30, 2024. The Company considers this information important to shareholders because operating net (loss) income and operating (loss) earnings per share (diluted) provides investors insight into how Company earnings changed exclusive of the impairment charge to allow investors to better compare the Company's performance against historical periods. The table above provides a reconciliation of operating net income (loss) and operating earnings (loss) per share (diluted) to the nearest GAAP measure.
6 For periods ended with a net loss, anti-dilutive financial instruments have been excluded from the calculation of GAAP diluted EPS. Operating diluted EPS calculations include the impact of outstanding equity-based awards for all periods.
14
2nd Quarter 2024 Earnings Presentation EagleBankCorp.com July 24, 2024 Scan for digital version

 
Forward Looking Statements 2 This presentation contains forward looking statements within the meaning of the Securities and 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,” “anticipates,” “believes,” “expects,” “plans,” “estimates,” “potential,” “continue,” “should,” and similar words or phrases. These statements are based upon current and anticipated economic conditions, nationally and in the Company’s market, interest rates and interest rate policy, competitive factors and other conditions which by their nature, are not susceptible to accurate forecast and are subject to significant uncertainty. 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 other periodic and current reports filed with the SEC. 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. 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. The Company does not undertake to publicly revise or update forward-looking statements in this presentation to reflect events or circumstances that arise after the date of this presentation, except as may be required under applicable law. This presentation was delivered digitally. The Company makes no representation that subsequent to delivery of the presentation it was not altered. For more information about the Company, please refer to www.eaglebankcorp.com and go to the Investor Relations tab. For further information on the Company please contact: Eric Newell P 240-497-1796 E enewell@eaglebankcorp.com

 
Attractive Washington DC Footprint 3 One-of-a-kind Market The Washington DC area represents a strong and stable economy bolstered by Federal government spending and related jobs insulating the region from the severity of potential economic downturns. Our market includes world-class centers of education, a robust private sector, including increasing technology innovation, and tourism. Attractive Demographics Eagle’s footprint represents some of the best demographics in the country. Household income in our markets is 55% above the national average and 41% above all Mid- Atlantic states. Advantageous Competitive Landscape Eagle is one of the largest banks headquartered in the Washington DC metro area and ranked 3rd by deposits in the DC MSA for banks with less than $100 billion in assets. 1 - Source: FDIC Deposit Market Share Reports - Summary of Deposits

 
Eagle at a Glance 4 Total Assets $11.3 billion Total Loans $8 .0 billion Total Deposits $8 . 3 billion Tangible Common Equity $1. 2 billion Shares Outstanding (at close June 30, 2024) 30,180,482 Market Capitalization (at close July 22, 2024) $671 million Tangible Book Value per Common Share $38.74 Institutional Ownership 78% Member of Russell 2000 yes Member of S&P SmallCap 600 yes Note: Financial data as of June 30, 2024 unless otherwise noted. 1 - Equity was $1.2 billion and book value was $38.75 per share. Please refer to the Non-GAAP reconciliation in the appendix. 2 - Based on July 22, 2024 closing price of $22.90 per share and June 30, 2024 shares outstanding. 1 1 2

 
5 1 - Include cash and cash equivalents; see slide 7 for more detail 2 - Estimated amount of uninsured deposits to be reported on line RCON5597 of schedule RC-O in the Bank’s June 30, 2024 Call Report. • Best-in-Class Regulatory Capital Levels o As of 3/31/2024, our CET1 ratio was in the top quartile of all bank holding companies with $10 billion in assets or more; our CET1 ratio as of 6/30/2024 was 13.92%. • Long-term strategy to improve operating pre-provision, net revenue (“PPNR”) across all interest rate environments o Growth and diversification of deposits designed to improve funding profile • Strong Operating Efficiency o Eagle has a top quartile operating efficiency ratio. Our cost structure is designed to minimize inefficiencies while allowing us to invest in growth and important control functions such as risk management and compliance. • Strong Liquidity and Funding Position o Liquidity risk management is central to our strategy • At 6.6%, Eagle has one of the highest liquid assets to total deposits ratio relative to peers1, and total on- balance sheet liquidity and available borrowing capacity was $4.0 billion at quarter-end. o Uninsured deposits only represent 28% of total deposits, having a weighted average relationship with EagleBank of over 10 years. • Capitalizing on our Desirable Geography o Proximity to the federal government and prime contractors offers a stable and financially strong customer base. o The DMV has a robust and diverse economy including education, healthcare, technology, and defense sectors. o Access to a population with high household incomes, leading to more significant deposit base. Eagle is an attractive investment opportunity

 
1.93% 1.61% 1.50% 1.40% 1.37% 1.25% 1.24% 1.20% 1.15% 1.12% 1.11% 1.09% 1.08% 0.93% 0.84% 0.84% 0.84% 0.57% 0.25% Peer 1 Peer 2 Peer 3 Peer 4 Peer 5 Peer 6 Peer 7 Peer 8 Peer 9 EGBN Peer 10 Peer 11 Peer 12 Peer 13 Peer 14 Peer 15 Peer 16 Peer 17 Peer 18 Operating PPNR / Avg Assets1 Improving Operating Pre-Provision Net Revenue (“PPNR”) • Enhance revenue opportunities through C&I and small business to improve fee income and deposits • Continue to focus on growing core deposits • Maintain pricing discipline on loan originations to promote revenue growth • Continue operating efficiency focus and seek out opportunities for positive operating leverage Strategies Driving Growth and PPNR 6 Capital Management Improving C&I Lending Capability Balance Sheet & De-Risking Strategies Enhancing Deposit Franchise •Expanded yield realization through pricing decision-making and ROE hurdle rates •Strategies to reduce CRE concentration •Evaluating trades to improve investment portfolio yield •Launched a digital channel to expand our customer base •Grow low-cost deposits with focus on operating relationships •Team onboarded to focus on expatriate banking services tapping new, proven market •Enhancing digital engagement with focus on payments •Enhancing services and talent in our treasury management vertical •Proactively recruiting talent to build out our sales culture • Identifying industry verticals where the Company has a comparative advantage and expertise •Evaluation of options regarding maturing 2024 subordinated debt •Build capital through earnings 1. Please refer to the Non-GAAP reconciliation and footnotes in the appendices. Peers are those used in the proxy for the May 2024 annual meeting. Proxy Peers are AUB, BHLB, BRKL, BUSE, CNOB, CVBF, DCOM, FFIC, IBTX, INDB, LBAI, OCFC, PFS, SASR, TMP, UBSI, VBTX, WSFS and data is as of March 30, 2024. EGBN is as of June 30, 2024. Source: S&P Capital IQ Pro and company filings.

 
Key Strategic Objectives 7 • Enhance Deposit Franchise o Focus on deposit growth through improved sales behaviors; focusing on net new relationship metrics; enhancing products set and services to better serve our customers. o Enhance our treasury management program by continued collaboration between Treasury Management and C&I teams, onboarding of seasoned treasury management professionals and an increased focus on a consultative approach to selling. o Enhance our digital banking platform to improve the ease of opening accounts on-line and leverage our in- footprint brand to increase market share of deposits in the Washington DC area as well as the DMV region and beyond. o Build on the addition of the Expatriate Banking Services team which leverages strong centers of influence to introduce EagleBank’s consumer banking products to transferees into the U.S. o Leverage our existing branch network to drive customer acquisition and explore how to increase EagleBank’s physical presence in lower cost geographies contiguous to the Washington DC metro market. • Grow Commercial Lending Team o Enhance our C&I lending capabilities to obtain greater growth and diversity within the loan portfolio. o Shift community and customer perception of EagleBank to a full spectrum commercial bank. • Proactive Management of Office and Multi-family Portfolios o Continue to have expert teams regularly assess exposures and relationship managers proactively reach out to clients well in advance of maturities to achieve results beneficial to both the Bank and the borrower.

 
Eagle – Capital Levels vs. Peers 8 1-Peers are those used in the proxy for the May 2024 annual meeting. Proxy Peers are AUB, BHLB, BRKL, BUSE, CNOB, CVBF, DCOM, FFIC, IBTX, INDB, LBAI, OCFC, PFS, SASR, TMP, UBSI, VBTX, WSFS and data is as of March 31, 2024 (if available). EGBN is as of June 30, 2024. 2-Please refer to the Non-GAAP reconciliation and footnotes in the appendices. Source: S&P Capital IQ Pro and company filings. Strong Capital • Capital ratios are high relative to peers1 • Excess CET1 (over 9%) plus reserves provides a superior level of coverage when measured against our peers 8.4% 7.0% 6.8% 6.3% 6.2% 5.9% 4.4% 3.9% 4.0% 3.1% 3.2% 2.8% 2.8% 2.6% 2.5% 1.9% 1.9% 1.7% 1.7% Peer 1 EGBN Peer 2 Peer 3 Peer 4 Peer 5 Peer 6 Peer 7 Peer 8 Peer 9 Peer 10 Peer 11 Peer 12 Peer 13 Peer 14 Peer 15 Peer 16 Peer 17 Peer 18 Excess CET1 + ACL / Total Loans 10.4% 10.3% 10.3% 10.2% 8.9% 9.1% 8.9% 8.9% 8.3% 8.2% 8.4% 8.2% 7.9% 8.1% 8.1% 7.4% 7.6% 7.5% 7.5% Peer 1 Peer 2 Peer 3 EGBN Peer 4 Peer 5 Peer 6 Peer 7 Peer 8 Peer 9 Peer 10 Peer 11 Peer 12 Peer 13 Peer 14 Peer 15 Peer 16 Peer 17 Peer 18 Tangible Common Equity / Tangible Assets2 15.0% 14.2% 13.9% 13.3% 13.2% 13.5% 12.5% 11.6% 11.8% 11.2% 11.0% 11.0% 10.7% 10.4% 10.3% 10.3% 10.0% 9.9% 9.6% Peer 1 Peer 2 EGBN Peer 3 Peer 4 Peer 5 Peer 6 Peer 7 Peer 8 Peer 9 Peer 10 Peer 11 Peer 12 Peer 13 Peer 14 Peer 15 Peer 17 Peer 16 Peer 18 CET1 Ratio

 
Eagle – Liquidity Position vs. Peers 9 Peers are those used in the proxy for the May 2024 annual meeting. Proxy Peers are AUB, BHLB, BRKL, BUSE, CNOB, CVBF, DCOM, FFIC, IBTX, INDB, LBAI, OCFC, PFS, SASR, TMP, UBSI, VBTX, WSFS and data is as of March 31, 2024 (if available). EGBN is as of June 30, 2024. Source: S&P Capital IQ Pro and company filings. Available Liquidity Cash and cash equivalents are high relative to peers. Cash equivalents combined with AFS securities provides a high level of coverage when measured against our peers. 12.1% 8.1% 7.6% 7.0% 6.6% 6.0% 5.9% 4.7% 3.7% 3.7% 3.5% 3.4% 2.9% 2.4% 2.3% 1.6% 1.5% 1.3% 0.9% Peer 1 Peer 2 Peer 3 Peer 4 EGBN Peer 5 Peer 6 Peer 7 Peer 8 Peer 9 Peer 10 Peer 11 Peer 12 Peer 13 Peer 14 Peer 15 Peer 16 Peer 17 Peer 18 Cash Equivalents / Total Deposits 29.1% 25.4% 23.3% 19.1% 18.4% 18.1% 15.0% 13.5% 11.8% 7.0% 5.9% 4.7% 3.5% 3.4% 2.4% 1.5% 1.3% 0.9% Peer 2 EGBN Peer 3 Peer 4 Peer 5 Peer 6 Peer 7 Peer 8 Peer 9 Peer 10 Peer 11 Peer 12 Peer 13 Peer 14 Peer 15 Peer 16 Peer 17 Peer 18 Cash Equivalents + AFS Securities / Total Deposits 71% 72% 72% 29% 28% 28% $7,718 $8,501 $8,267 6/30/2023 3/31/2024 6/30/2024 ($ in m ill io n s) Insured Deposit Exposure Trend Insured Uninsured

 
$42 $39 $39 $38 $34 1.43% 1.31% 1.25% 1.20% 1.12% 0.00% 1.00% 2.00% 3.00% 4.00% ($5) $5 $15 $25 $35 $45 $55 2023 Q2 2023 Q3 2023 Q4 2024 Q1 2024 Q2 (i n m ill io n s ) Operating PPNR and Operating PPNR/Average Assets1 Operating PPNR ($) Operating PPNR to average assets (%) Performance Measures 10 1-Please refer to the Non-GAAP reconciliation and footnotes in the appendices. Operating PPNR/Average Assets and returns are annualized. For the periods above, return on average common equity was 9.24% (2023Q2), 8.80% (2023Q3), 6.48% (2023Q4) (0.11)% (2024Q1), and (26.60)% (2024Q2); common equity to assets was 11.20% (2023Q1), 11.05% (2023Q2), 10.89% (2023Q3) 10.92% (2023Q4) 10.85% (2024Q1) and 10.35% (2024Q2); and efficiency ratio was 47.2% (2023Q2), 48.8% (2023Q3), 48.9% (2023Q4), 51.1% (2024Q1), and 191.0% (2024Q2) 10.08% 9.61% 7.08% -0.11% 7.04% 2023Q2 2023Q3 2023Q4 2024Q1 2024Q2 Operating Return on Average Tangible Common Equity1 47.2% 48.8% 48.9% 51.1% 55.2% 2023Q2 2023Q3 2023Q4 2024Q1 2024Q2 Operating Efficiency Ratio1 10.21% 10.04% 10.12% 10.03% 10.35% 2023Q2 2023Q3 2023Q4 2024Q1 2024Q2 Tangible Common Equity/Tangible Assets1

 
Net Interest Income 11 NII and NIM Decline Slightly Net Interest Income • Interest income declined $5.9 million quarter over quarter as lower cash balances resulted in lower interest income • Interest expense decreased $2.5 million on lower short-term borrowings and MMDAs offset by increases in funding costs on those borrowings • Net interest income declined quarter over quarter $3.3 million Margin • The net interest margin declined slightly quarter over quarter landing at 2.40% • Decrease in net interest income outpaced a decline in average earning assets which resulted in a slightly lower NIM • Management expects cash flows from the investment portfolio of $218 million for the remainder of 2024 and $386 million in 2025 to be reinvested at higher yields • NIM is forecasted to improve for the rest of the year under the assumption that interest rates remain unchanged $71.8 $70.7 $73.0 $74.7 $71.4 2.49% 2.43% 2.45% 2.43% 2.40% -1.00% 1.00% 3.00% 5.00% 7.00% 9.00% $- $20.0 $40.0 $60.0 $80.0 $100.0 2023Q2 2023Q3 2023Q4 2024Q1 2024Q2 (i n m ill io n s ) Net Interest Income & Margin Net Interest Income NIM

 
Operating Net Income – Summary 12 Operating Net Income Drivers Net interest income Net interest income down $3.3 million, driven by lower cash balances and higher yields on borrowings and time deposits Provision for Credit Losses (“PCL”) The provision on credit was lower primarily reflecting a charge-off that took place in the first quarter of 2024 that did not repeat in the second quarter. Additionally, there was an increase related to the office ACL coverage ratio. Noninterest income Noninterest income up $1.7 million primarily on the sale of a small mortgage servicing right portfolio related to the FHA Multifamily business. Operating Noninterest expense1 Noninterest expense, excluding the goodwill impairment, increased $2.3 million associated with other expenses lead by real estate taxes. 1- Please refer to Non-GAAP reconciliation and footnotes in the appendices.

 
2024 Outlook 13 1 – The forecasted increase is based off 2023 figures for the same measure 2 – The effective tax rate for 2Q 2024 was negative because of the loss experienced relate to a goodwill impairment that occurred in the quarter 3 – The effective tax rate is forecasted on an operating basis excluding the loss associated with the goodwill impairment in 2Q 2024 4 – Please refer to the Non-GAAP reconciliation and footnotes in the appendices. Other Notes: 2024 Outlook represents forward-looking statements and are not guarantees of future performance and are subject to risks, assumptions and uncertainties that are difficult to predict. Please see “Forward Looking Statements” on page 2. Current 2024 Outlook1Prior 2024 Outlook2Q 2024 ActualKey Drivers Balance Sheet Low single digit % increaseLow single digit % increase$9,225 millionAverage deposits Low single digit % increaseLow single digit % increase$8,003 millionAverage loans Low single digit % increaseLow single digit % decline$11,953 millionAverage earning assets Income Statement 2.40% - 2.50%2.50% - 2.70%2.40%Net interest margin $17-$19 million$17-$19 million$5.3 millionNoninterest income $160-$170 million$170-$180 million$42.3 millionOperating Noninterest expense4 22-24%322-24%-5.58%2Period effective tax rate

 
2024 Outlook Variables & Risks 14 Notes: Outlook 2024Y represents forward-looking statements and are not guarantees of future performance and are subject to risks, assumptions and uncertainties that are difficult to predict. Please see “Forward Looking Statements” on page 2. Variables & RisksComponent • Business activity highly correlated to current and anticipated forward ratesEconomy & Rates • Credit quality and need for credit coupled with a potential recessionClients • Ability to obtain deposit funding in a cost-effective manner • High funding costs directly impacts the competitiveness of our loan offerings Funding • Competition for loans in the market remains high with added competition from non-bank lenders • Pricing (rate) and overall cost of acquiring deposits Competition • Growth in loans and deposits must remain flexibleOpportunities • Upcoming elections and potential for new policies adversely impacting banksRegulation/Politics To reach our 2024 outlook, we made many assumptions of variables and risks, including:

 
2.27% 2.80% 3.14% 3.28% 3.36% 3.35% 4.83% 4.84% 4.73% 4.61% 4.75% 5.07% 3.87% 4.22% 4.30% 4.30% 4.37% 4.45% 2023Q1 2023Q2 2023Q3 2023Q4 2024Q1 2024Q2 Cost Analysis Total Deposit Cost Borrowings Total IBL Cost Deposit Mix and Trend 15 Total Period End Deposits increased $549 million Year-over-Year CDs Savings & money market Interest bearing transaction Noninterest bearing Cumulative Betas1 • Interest bearing deposits - 76% • Cost of funds – 64% 1 - For betas, the denominator is the change in the Average Effective Federal Funds rate for the quarter, starting with 2022 Q1.

 
77.1% 79.9% 85.7% 86.3% 83.3% 83.0% 22.9% 20.1% 14.3% 13.7% 16.7% 17.0% $9,685 $9,662 $9,772 $10,209 $10,208 $9,967 2023Q1 2023Q2 2023Q3 2023Q4 2024Q1 2024Q2 in m ill io n s Deposits & Borrowings Deposits Borrowings (includes customer repos) Funding & Liquidity 16 Funding & Liquidity Summary Deposits Period end deposits were down $234 million for the quarter, attributable to a decline in deposits from a third-party payment processor related to the fluctuations in deposit levels resulting from its business, as well as declines in some public and brokered funding. For the quarter, average deposits were down $276 million. The long-term strategy for deposits is to increase core deposits and reduce reliance on wholesale funding. Borrowings With some BTFP borrowings maturing in the first quarter, borrowings were replaced with FHLB borrowings and remained steady over the second quarter. Ample Access to Liquidity Available liquidity from the FHLB, FRB Discount Window, cash and unencumbered securities is over $4.0 billion. We increased available liquidity at the FRB Discount Window by $1.37 billion in 2Q 2024 by pledging additional collateral. 1 - Includes interest-bearing deposits with banks, cash and due from, and federal funds sold

 
4650 3850 2023Q2 2023Q3 2023Q4 2024Q1 2024Q2 2024Q1 CRE Office Detail 17 As of June 30, 2024 2-Proxy Peers are AUB, BHLB, BRKL, BUSE, CNOB, CVBF, DCOM, FFIC, IBTX, INDB, LBAI, OCFC, PFS, SASR, TMP, UBSI, VBTX, WSFS and data is as of March 31, 2024 (if available). Peer data only shown if CRE Office non-owner occupied was disclosed. EGBN is as of June 30, 2024. Source: S&P Capital IQ Pro and company filings. 1-Class Type is determined based on the latest appraisal designation Higher Risk Rating (9000) Lower Risk Rating (1000) Office (% of Total Inc Prod CRE) 21% Non-Office 79% Office (Avg Risk Rating) Non-Office Mix and Risk Rating Trend of Total Inc Prod CRE The vast majority of our Inc Prod CRE is Non-Office and with risk ratings that have largely remained unchanged. 128% 119% 108% 89% 84% 78% 63% 63% 55% 51% 46% 46% 38% 24% 24% 21% Peer 1 Peer 2 Peer 3 Peer 4 Peer 5 Peer 6 Peer 7 EGBN Peer 8 Peer 9 Peer 10 Peer 11 Peer 12 Peer 13 Peer 14 Peer 15 Excess CET1+ACL/ Non-Owner Occupied Office Loans2

 
$127 $128 $44 $34 $21 $9 $308 $112 $108 2024 Q3 2024 Q4 2025 Q1 2025 Q2 2025 Q3 2025 Q4 2026 2027 2028+ (i n m ill io n s) CRE Office - Maturity Schedule CRE Office Detail (continued) 18 CRE Office Commentary • Improving ACL coverage of office with reserve build to 4.05% of performing CRE Office vs. 3.67% the prior quarter • Non-office CRE exhibited limited internal risk rating migration • 60% of office portfolio maturities are beyond year-end 2025 • Limited exposure to Class B central business district office1-DSCR is calculated based on contractual principal and interest payments and only considers cash flow from primary sources of repayment

 
Loan Mix and Trend 19 Commercial Owner-Occupied CRE Construction – comm& residential. Home Equity Other Consumer Construction C&I (owner-occupied) Office Income producing CRE (excluding office if applicable)

 
$219 $219 $336 $362 $408 $156 $158 $207 $265 $308 $375 $377 $543 $627 $717 2023Q2 2023Q3 2023Q4 2024Q1 2024Q2 (i n m ill io n s) Substandard Special mention % of loans 20 Loan Type and Classification 1-Includes land. Quarter-over-Quarter Change Special Mention • C&I -$8.5 million • CRE +$51 million • 100% of special mention loans were current as 6/30/24 Substandard • C&I -$10.6 million • CRE +$59.7 million • 74% of substandard loans were current at 6/30/24 Classified and Criticized Loans 85%88%81%92% 91% % performing 4.83% 4.76% 6.81% 7.86% 8.95%

 
Asset Quality Metrics 21 1-Excludes loans held for sale. 2-Non-performing assets (“NPAs”) include loans 90 days past due and still accruing. Charts for Allowance for Credit Losses and NPAs are as of period end. Net Charge Offs (“NCO”) are annualized for periods of less than a year. $5,238 $5,644 $14,490 $35,175 $8,959 2023Q2 2023Q3 2023Q4 2024Q1 2024Q2 (i n t h o u s a n d s ) Provision for Credit Losses 1.00% 1.05% 1.08% 1.25% 1.33% 2023Q2 2023Q3 2023Q4 2024Q1 2024Q2 Allowance for Credit Losses/ Loans HFI 0.29% 0.02% 0.60% 1.07% 0.11% 2023Q2 2023Q3 2023Q4 2024Q1 2024Q2 NCO / Average Loans1 0.28% 0.64% 0.57% 0.79% 0.88% 2023Q2 2023Q3 2023Q4 2024Q1 2024Q2 NPAs2 / Assets

 
Appendices 22

 
Investment Portfolio 23 Investment Portfolio Strategy • Portfolio positioned to manage liquidity and pledging needs • Cash flow projected principal only (rates unchanged): o Remainder of 2024 - $218 million o 2025 - $386 million • Total securities down $42 million from 3/31/2024 from principal paydowns, maturities received, and lower carrying values on securities. • Unencumbered securities of $151 million available for pledging. Note: Chart is as of period end on an amortized cost basis. AFS / HTM as of June 30, 2024

 
Tangible Book Value Per Share 24 Per share data is as of period end. Please refer to Non-GAAP reconciliation and footnotes in the appendices. The CAGR for Book Value Per Share with AOCI included was 2.3% and excluded was 6.6% for the period from December 31, 2020, through June 30, 2024. Book values per share, including and excluding AOCI were, respectively, $39.05 and $38.56 (2020Y), $42.28 and $42.72 (2021Y), $39.18 and $45.54 (2022Y), $42.58 and $48.00 (2023Y) $41.72 and $47.21 (2024 Q1), and $44.08 and $38.75 (2024 Q2).

 
Loan Portfolio – Details 25 Note: Data as of June 30, 2024.

 
Loan Portfolio – Income Producing CRE 26 Note: Data as of June 30, 2024.

 
Loan Portfolio – CRE Construction 27 Note: Data as of June 30, 2024.

 
28 Non-GAAP Reconciliation (unaudited)

 
29 Non-GAAP Reconciliation (unaudited)

 
30 Non-GAAP Reconciliation (unaudited)

 
31 Non-GAAP Reconciliation (unaudited)

 
32 Non-GAAP Reconciliation (unaudited) Tangible common equity to tangible assets (the "tangible common equity ratio"), tangible book value per common share, tangible book value per common share excluding accumulated other comprehensive income (“AOCI”), and the return on average tangible common equity are non-GAAP financial measures derived from GAAP based amounts. The Company calculates the tangible common equity ratio by excluding the balance of intangible assets from common shareholders' equity and dividing by tangible assets. The Company calculates tangible book value per common share by dividing tangible common equity by common shares outstanding, as compared to book value per common share, which the Company calculates by dividing common shareholders' equity by common shares outstanding; to calculate the tangible book value per common share excluding the AOCI, tangible common equity is reduced by the loss on the AOCI before dividing by common shares outstanding. The Company calculates the annualized return on average tangible common equity ratio by dividing net income available to common shareholders by average tangible common equity which is calculated by excluding the average balance of intangible assets from the average common shareholders’ equity. The Company calculates the annualized return on average common equity ratio by dividing net income available to common shareholders by average common equity. The Company considers this information important to shareholders as tangible equity is a measure that is consistent with the calculation of capital for bank regulatory purposes, which excludes intangible assets from the calculation of risk-based ratios and as such is useful for investors, regulators, management and others to evaluate capital adequacy and to compare against other financial institutions. The above table provides reconciliation of these financial measures defined by GAAP with non-GAAP financial measures. Operating net (loss) income and is a non-GAAP financial measures derived from GAAP based amounts. The Company calculates operating net (loss) income by excluding from net (loss) income the one-time goodwill impairment of $104.2 million. The Company considers this information important to shareholders because operating net (loss) income) provides investors insight into how Company earnings changed exclusive of the impairment charge to allow investors to better compare the Company's performance against historical periods. The table above provides a reconciliation of operating net income (loss) to the nearest GAAP measure. Operating return on average common equity and operating return on tangible common equity are non-GAAP financial measures derived from GAAP based amounts. The Company calculates the operating return on average common equity ratio by dividing operating net income available to common shareholders by average common equity. The Company calculates the operating return on average tangible common equity ratio by dividing operating net income available to common shareholders by average tangible common equity. The Company considers this information important to shareholders because operating return on average tangible common equity and operating return on average common equity provides investors insight into how Company earnings changed exclusive of the impairment charge to allow investors to better compare the Company's performance against historical periods. The table above provides a reconciliation of operating return on average tangible common equity and operating return on average common equity to the nearest GAAP measure. Operating Efficiency ratio is a non-GAAP financial measure calculated by dividing operating non-interest expense by the sum of GAAP net interest income and GAAP non- interest (loss) income. Operating noninterest expense is a non-GAAP financial measure calculated by adding back goodwill impairment to GAAP noninterest expense. Management believes that reporting the non-GAAP efficiency ratio more closely measures its effectiveness of controlling operational activities. The table above shows the calculation of the operating efficiency ratio and operating noninterest expense from these GAAP measures. Operating Pre-provision net revenue is a non-GAAP financial measure derived from GAAP based amounts. The Company calculates PPNR by subtracting noninterest expenses from the sum of net interest income and noninterest income. The Company calculates operating PPNR by excluding from PPNR the one-time goodwill impairment. Operating PPNR to Average Assets is calculated by dividing the operating PPNR amount by average assets to obtain a percentage. The Company considers this information important to shareholders because it illustrates revenue excluding the impact of provisions and reversals to the allowance for credit losses on loans. The table above provides a reconciliation of operating PPNR and operating PPNR to Average Assets to the nearest GAAP measure.

 
v3.24.2
Cover
Jul. 24, 2024
Cover [Abstract]  
Document Type 8-K
Document Period End Date Jul. 24, 2024
Entity Registrant Name EAGLE BANCORP, INC.
Entity Incorporation, State or Country Code MD
Entity File Number 0-25923
Entity Tax Identification Number 52-2061461
Entity Address, Address Line One 7830 Old Georgetown Road, Third Floor
Entity Address, City or Town Bethesda
Entity Address, State or Province MD
Entity Address, Postal Zip Code 20814
City Area Code 301
Local Phone Number 986-1800
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Title of 12(b) Security Common Stock, $0.01 par value
Trading Symbol EGBN
Security Exchange Name NASDAQ
Entity Emerging Growth Company false
Amendment Flag false
Entity Central Index Key 0001050441
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