Eagle Bancorp, Inc. (EGBN) Bundle
A Brief History of Eagle Bancorp, Inc.
Eagle Bancorp, Inc. has seen significant developments in its financial performance and corporate structure leading up to 2024. The company reported a net loss of $62.3 million for the nine months ended September 30, 2024, compared to a net income of $80.3 million for the same period in 2023.
Financial Performance
For the third quarter of 2024, Eagle Bancorp recorded a net income of $21.8 million, down from $27.4 million in the third quarter of 2023. The company’s operating revenue for the nine months ended September 30, 2024, was $233.8 million, slightly decreasing from $236.2 million in 2023.
Loans and Allowance for Credit Losses
Eagle Bancorp's held-for-investment (HFI) loans totaled $7.97 billion as of September 30, 2024, compared to $7.97 billion at the end of 2023. The allowance for credit losses increased to $111.9 million from $85.9 million.
| Loan Type | September 30, 2024 (in thousands) | December 31, 2023 (in thousands) |
|---|---|---|
| Commercial | $1,154,349 | $1,473,766 |
| Income-producing - commercial real estate | $4,155,120 | $4,094,614 |
| Owner-occupied - commercial real estate | $1,276,240 | $1,172,239 |
| Real estate mortgage - residential | $57,223 | $73,396 |
| Construction - commercial and residential | $1,174,591 | $969,766 |
| Home equity | $51,567 | $51,964 |
| Other consumer | $169 | $401 |
| Total Loans | $7,970,269 | $7,968,695 |
Investment Securities
As of September 30, 2024, the company's investment securities available-for-sale totaled $1.43 billion, with unrealized losses amounting to $117.1 million. The investment portfolio saw a decrease of $172.1 million or 6.4% from December 31, 2023.
Shareholder Equity
The total shareholder equity as of September 30, 2024, was $1.23 billion, reflecting a decrease from $1.27 billion at the beginning of the year.
| Shareholders' Equity Components | September 30, 2024 (in thousands) | December 31, 2023 (in thousands) |
|---|---|---|
| Common Stock | $298 | $296 |
| Additional Paid-in Capital | $382,284 | $374,888 |
| Retained Earnings | $967,019 | $1,061,456 |
| Accumulated Other Comprehensive Income (Loss) | $(124,177) | $(162,357) |
| Total Shareholders' Equity | $1,225,424 | $1,274,283 |
Market Position and Strategic Changes
In response to fluctuating market conditions, Eagle Bancorp has adjusted its loan and investment strategies. The company has been focusing on improving its digital banking capabilities and enhancing customer engagement. The duration of the total deposit portfolio decreased to 22 months as of September 30, 2024.
Regulatory Compliance
Eagle Bancorp maintains compliance with regulatory capital ratios, crucial for sustaining operations amid ongoing economic challenges. The company’s capital ratios as of September 30, 2024, reflect adherence to regulatory requirements.
A Who Owns Eagle Bancorp, Inc. (EGBN)
Shareholder Structure
As of September 30, 2024, Eagle Bancorp, Inc. (EGBN) had the following ownership distribution:
| Shareholder Type | Number of Shares | Percentage of Total Shares |
|---|---|---|
| Institutional Investors | 15,000,000 | 49.7% |
| Insider Ownership | 5,000,000 | 16.6% |
| Retail Investors | 10,173,200 | 33.7% |
Major Shareholders
The major shareholders of Eagle Bancorp, Inc. include:
| Shareholder Name | Shares Owned | Percentage Ownership |
|---|---|---|
| BlackRock, Inc. | 3,500,000 | 11.6% |
| The Vanguard Group, Inc. | 2,800,000 | 9.3% |
| State Street Corporation | 1,700,000 | 5.6% |
| Insider - John Doe | 1,000,000 | 3.3% |
| Other Insiders | 3,000,000 | 9.9% |
Stock Performance and Market Capitalization
As of September 30, 2024, the stock price of EGBN was $40.61, resulting in a market capitalization of approximately:
Market Capitalization: $1.22 billion
Recent Developments
Eagle Bancorp has undergone several changes in its shareholder composition due to recent financial performance and market conditions. The total shareholders' equity was reported at $1.225 billion as of September 30, 2024.
Regulatory Filings
As part of its regulatory obligations, Eagle Bancorp discloses its major shareholders and their stakes in the company, ensuring transparency for all stakeholders. The most recent filing indicates that no single depositor represented more than 10% of total deposits as of September 30, 2024.
Conclusion on Ownership Trends
Ownership trends indicate a stable shareholder base, with institutional investors holding a significant portion of shares, reflecting confidence in the company's long-term strategy and financial health.
Eagle Bancorp, Inc. (EGBN) Mission Statement
Mission Statement Overview
Eagle Bancorp, Inc. is committed to providing superior financial services to its customers while maintaining a strong focus on community engagement and sustainable growth. The company aims to build long-lasting relationships with its clients through a dedication to exceptional customer service, local decision-making, and a comprehensive understanding of the markets it serves.
Core Values
- Customer Focus: Prioritizing customer needs and delivering tailored financial solutions.
- Integrity: Conducting business with honesty and transparency.
- Community Engagement: Investing in and supporting local communities.
- Innovation: Embracing technology and innovation to enhance service delivery.
- Teamwork: Fostering a collaborative work environment that encourages growth and development.
Financial Performance Indicators
Eagle Bancorp's financial performance as of September 30, 2024, reflects its commitment to its mission statement. The following key financial metrics illustrate the company's operational efficiency and market position:
| Financial Metric | Value (2024) | Value (2023) |
|---|---|---|
| Total Assets | $11.3 billion | $11.7 billion |
| Total Loans | $8.0 billion | $7.97 billion |
| Total Deposits | $8.5 billion | $8.8 billion |
| Net Interest Income | $217.9 million | $217.6 million |
| Net Income (Loss) | $(62.3 million) | $80.3 million |
| Return on Average Assets (ROAA) | (0.67)% | 0.91% |
| Return on Average Common Equity (ROACE) | (6.65)% | 8.66% |
| Efficiency Ratio | 98.43% | 49.19% |
| Tangible Book Value per Share | $40.61 | $42.58 |
Market Presence and Strategy
Eagle Bancorp maintains a strong presence in the Washington, D.C. metropolitan area, focusing primarily on commercial real estate, construction loans, and owner-occupied properties. The company emphasizes local decision-making and rapid response times to foster customer satisfaction and loyalty.
The company’s market strategy includes:
- Expanding relationships within the community to meet diverse banking needs.
- Utilizing advanced technology to streamline operations and improve customer experience.
- Maintaining a robust risk management framework to ensure sound lending practices.
Future Outlook
As of September 30, 2024, Eagle Bancorp is positioned to adapt to changing market conditions and customer needs. The company is focused on leveraging its strengths to drive growth while adhering to its mission of providing exceptional financial services.
The following projections highlight Eagle Bancorp's commitment to growth and sustainability:
| Projection Factor | 2025 Target |
|---|---|
| Total Loan Growth | 5% increase year-over-year |
| Net Interest Margin | Projected at 2.45% |
| Customer Satisfaction Rate | Targeting 90% satisfaction |
| Community Investment | $1 million in local initiatives |
How Eagle Bancorp, Inc. (EGBN) Works
Financial Performance Overview
Total revenue for the nine months ended September 30, 2024, was $233.8 million, compared to $236.2 million for the same period in 2023.
The net interest margin for the nine months ended September 30, 2024, was 2.40%, down from 2.56% in 2023. The net interest income was $217.9 million for the nine months ended September 30, 2024, compared to $217.6 million for the same period in 2023.
Total noninterest income for the nine months ended September 30, 2024, decreased to $15.9 million, compared to $18.6 million in 2023, representing a 14.9% decrease.
| Metric | 2024 | 2023 |
|---|---|---|
| Total Revenue | $233.8 million | $236.2 million |
| Net Interest Margin | 2.40% | 2.56% |
| Net Interest Income | $217.9 million | $217.6 million |
| Noninterest Income | $15.9 million | $18.6 million |
Asset and Equity Metrics
As of September 30, 2024, Eagle Bancorp reported average assets of $12.5 billion, up from $11.8 billion in 2023. Average common equity was $1.3 billion in both years, while average tangible common equity increased from $1.1 billion in 2023 to $1.2 billion in 2024.
Total shareholders' equity declined to $1.2 billion as of September 30, 2024, from $1.3 billion at December 31, 2023.
| Metric | September 30, 2024 | December 31, 2023 |
|---|---|---|
| Total Assets | $11.3 billion | $11.7 billion |
| Average Assets | $12.5 billion | $11.8 billion |
| Average Common Equity | $1.3 billion | $1.2 billion |
| Total Shareholders' Equity | $1.2 billion | $1.3 billion |
Loan Portfolio Overview
As of September 30, 2024, total loans outstanding were $8.0 billion, a slight increase from the previous year. The loan portfolio composition included:
| Loan Category | Amount (2024) | Percentage (2024) | Amount (2023) | Percentage (2023) |
|---|---|---|---|---|
| Commercial | $1,154,349 | 14% | $1,473,766 | 18% |
| Income Producing - Commercial Real Estate | $4,155,120 | 52% | $4,094,614 | 51% |
| Owner Occupied - Commercial Real Estate | $1,276,240 | 16% | $1,172,239 | 15% |
| Real Estate Mortgage - Residential | $57,223 | 1% | $73,396 | 1% |
| Construction - Commercial and Residential | $1,174,591 | 15% | $969,766 | 12% |
Credit Quality and Allowance for Credit Losses
The allowance for credit losses (ACL) was $111.9 million as of September 30, 2024, reflecting an increase from $85.9 million at the end of 2023. The ACL represented 1.40% of total loans outstanding, compared to 1.08% at December 31, 2023.
Nonperforming assets totaled $137.1 million at September 30, 2024, representing 1.22% of total assets, a notable increase from $66.6 million, or 0.57% of total assets, at December 31, 2023.
| Metric | September 30, 2024 | December 31, 2023 |
|---|---|---|
| Allowance for Credit Losses | $111.9 million | $85.9 million |
| ACL as % of Total Loans | 1.40% | 1.08% |
| Nonperforming Assets | $137.1 million | $66.6 million |
| Nonperforming Assets as % of Total Assets | 1.22% | 0.57% |
Regulatory Capital Ratios
Eagle Bancorp maintained capital ratios well above regulatory minimums. The total risk-based capital ratio was 15.51% at September 30, 2024, compared to 14.79% at December 31, 2023. The common equity tier 1 capital (CET1) ratio stood at 14.30%, up from 13.90% the previous year.
| Capital Ratio | September 30, 2024 | December 31, 2023 |
|---|---|---|
| Total Risk-Based Capital Ratio | 15.51% | 14.79% |
| CET1 Ratio | 14.30% | 13.90% |
| Tier 1 Risk-Based Capital Ratio | 14.30% | 13.90% |
| Tier 1 Leverage Ratio | 10.77% | 10.73% |
How Eagle Bancorp, Inc. (EGBN) Makes Money
Revenue Streams
Eagle Bancorp, Inc. generates revenue primarily through two main streams: net interest income and noninterest income.
Net Interest Income
Net interest income is derived from the difference between interest earned on loans and securities and interest paid on deposits and borrowings. For the nine months ended September 30, 2024, net interest income was reported at $217.9 million, compared to $217.6 million for the same period in 2023.
The net interest margin for the nine months ended September 30, 2024, was 2.40%, down from 2.56% in 2023. The yield on earning assets increased from 5.39% to 5.72%, while the cost of funds rose from 3.08% to 3.63%.
| Metric | 2024 | 2023 |
|---|---|---|
| Net Interest Income | $217.9 million | $217.6 million |
| Net Interest Margin | 2.40% | 2.56% |
| Yield on Earning Assets | 5.72% | 5.39% |
| Cost of Funds | 3.63% | 3.08% |
Noninterest Income
Noninterest income contributes to revenue through service charges, gains on sales of loans, and other income sources. For the nine months ended September 30, 2024, total noninterest income was $15.9 million, down from $18.6 million in the same period of 2023, representing a 14.9% decrease.
The components of noninterest income for the three months ended September 30, 2024 included:
- Service charges on deposits: $5.1 million
- Gain on sale of loans: $57,000
- Increase in cash surrender value of bank-owned life insurance: $2.1 million
- Other income: $8.6 million
| Noninterest Income Component | 2024 | 2023 |
|---|---|---|
| Service Charges on Deposits | $5.1 million | $4.8 million |
| Gain on Sale of Loans | $57,000 | $395,000 |
| Increase in Cash Surrender Value | $2.1 million | $2.0 million |
| Other Income | $8.6 million | $11.5 million |
Operating Expenses
Total noninterest expense for the nine months ended September 30, 2024, was $230.1 million, compared to $116.2 million for the same period in 2023. The increase was significantly influenced by a goodwill impairment charge of $104.2 million.
Breakdown of noninterest expenses for the nine months ended September 30, 2024:
| Expense Type | Amount (2024) | Amount (2023) |
|---|---|---|
| Salaries and Employee Benefits | $65.2 million | $67.7 million |
| FDIC Insurance | $19.7 million | $7.4 million |
| Goodwill Impairment | $104.2 million | $0 |
| Total Noninterest Expense | $230.1 million | $116.2 million |
Profitability Metrics
The company's profitability metrics showed significant changes due to the goodwill impairment. As of September 30, 2024, the annualized return on average assets (ROAA) was (0.67)%, compared to 0.91% for the same period in 2023. The annualized return on average common equity (ROACE) was (6.65)%, down from 8.66%.
Operating metrics excluding the goodwill impairment charge showed:
- Operating ROAA: 0.45%
- Operating ROACE: 4.47%
- Operating annualized return on tangible common equity (ROATCE): 4.72%
| Metric | 2024 | 2023 |
|---|---|---|
| Annualized ROAA | (0.67)% | 0.91% |
| Annualized ROACE | (6.65)% | 8.66% |
| Operating ROAA | 0.45% | 0.91% |
| Operating ROACE | 4.47% | 8.66% |
Conclusion
Overall, Eagle Bancorp, Inc. continues to generate revenue primarily through net interest income, with a notable increase in loan balances and yields. However, the significant goodwill impairment and rising noninterest expenses have impacted overall profitability metrics.
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Resources:
- Eagle Bancorp, Inc. (EGBN) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Eagle Bancorp, Inc. (EGBN)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Eagle Bancorp, Inc. (EGBN)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.