Press release
Eagle Bancorp, Inc. Announces Net Income for Second Quarter 2022 of $25.2 Million or $0.78 Per Diluted Share
BETHESDA, Md., July 20, 2022 (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., July 20, 2022 (GLOBE NEWSWIRE) -- Eagle Bancorp, Inc. (the \"Company\") (NASDAQ: EGBN), the parent company of EagleBank (the \"Bank\"), today announced net income of $25.2 million for the second quarter 2022, compared to net income of $45.7 million for the prior quarter and $48.0 million for the year-ago quarter. Net income was $0.79 per share (basic) and $0.78 per share (diluted) for the second quarter 2022, compared to $1.43 per share (basic) and $1.42 per share (diluted) for the prior quarter and $1.50 per share (basic and diluted) for the year-ago quarter. The decrease in earnings of $20.5 million from the first quarter of 2022 (the \"prior quarter\") was primarily driven by an increase in noninterest expense accruals related to the previously disclosed agreement in principle with the Securities and Exchange Commission (\"SEC\") staff to pay a civil money penalty and disgorgement, plus prejudgment interest, for an aggregate expense of $13.4 million1 to resolve the SEC's investigation with respect to the Company, while the prior quarter included a reduction in noninterest expense accruals related to share-based compensation awards and deferred compensation to our former CEO and Chairman of $5.0 million. Second Quarter 2022 Highlights The Company reached an agreement in principle with the SEC to resolve the previously disclosed investigation with respect to the Company. Under the terms of the settlement, the Company would pay a civil money penalty and disgorgement, plus prejudgment interest, in an aggregate amount of $13.4 million, which the Company accrued as non-tax deductible expenses during the quarter. Absent the agreement in principle with the SEC, adjusted net income (a non-GAAP measure) was $38.6 million2 and adjusted earnings per share (a non-GAAP measure), was $1.20.2The Company declared a quarterly dividend of $0.45 per share, an increase of $0.05 over the prior quarter.Loans increased by $40.9 million from the prior quarter-end. This was the third consecutive quarterly increase.There was a $495 thousand provision for credit losses on loans. This was the first provision for credit losses after five consecutive quarterly reversals.The increase in the overall interest rate environment continued to create unrealized losses in securities available-for-sale (\"AFS\"), which are recorded in accumulated othe...