Press release
Eagle Bancorp, Inc. Announces Net Income for First Quarter 2023 of $24.2 Million or $0.78 per Diluted Share
BETHESDA, Md., April 19, 2023 (GLOBE NEWSWIRE) -- Eagle Bancorp, Inc. (the "Company") (NASDAQ: EGBN), the parent company of EagleBank (the "Bank"), today
About this update from Eagle Bancorp, Inc.
[{"type":"text","content":"BETHESDA, Md., April 19, 2023 (GLOBE NEWSWIRE) -- Eagle Bancorp, Inc. (the \"Company\") (NASDAQ: EGBN), the parent company of EagleBank (the \"Bank\"), today announced net income of $24.2 million for the first quarter 2023, compared to net income of $42.2 million for the fourth quarter 2022 (the \"prior quarter\") and $45.7 million for the first quarter 2022 (the \"year ago quarter\"). Net income was $0.78 per share (basic and diluted) for the first quarter 2023, compared to $1.32 per share (basic and diluted) for the prior quarter, and $1.43 per share (basic) and $1.42 per share (diluted) for the year-ago quarter. The $18.0 million decrease in earnings from the prior quarter was primarily attributable to the decrease in net interest income and a higher provision for credit losses. The decrease in net interest income was primarily attributable to higher interest expense as the rate paid on deposits increased in response to Federal Reserve rate increases and the funding mix changed reflecting a higher level of borrowings at rates higher than those of the deposits the borrowings replaced. These increases in interest expense outpaced the increase in interest income from loans. Additionally, the higher provision for credit losses was primarily attributable to qualitative factors, loan growth, and, to a lesser extent, reserves on corporate bonds within the securities portfolio. First Quarter 2023 Highlights Common equity and tangible common equity ratios at quarter-end were 11.20% and 10.36%1, respectively.Nonperforming assets as a percent of assets was 0.08%. Net charge-off for the quarter was $975 thousand.Investment securities Held-to-Maturity had a fair value that was $112 million less than carrying value at quarter-end. This amount (unadjusted for tax impact) is 9.0% of quarter-end common shareholders' equity, which was $1.2 billion, and 9.8% of quarter-end tangible common equity, which was $1.1 billion1.Loans at quarter-end were $7.7 billion, up $102 million from the prior quarter-end. This was the sixth consecutive quarterly increase. Loans were up 1.3% from the prior quarter and 8.8% from the year-ago quarter.The provision for credit losses was $6.2 million for the quarter, as compared to a reversal of $0.5 million the prior quarter. The allowance for credit losses on loans was 1.01%, up from 0.97% a quarter ago and flat from...