Eagle Bancorp Inc (EGBN) Announces Q3 2023 Earnings: Net Income of $27.4 Million
Eagle Bancorp Inc (NASDAQ:EGBN) reported a net income of $27.4 million for Q3 2023, a decrease from $28.7 million in Q2 2023 and $37.3 million in Q3 2022.
The company's net income per share for Q3 2023 was $0.91, compared to $0.94 in the previous quarter and $1.16 in the same quarter last year.
Deposits at the end of the quarter were $8.4 billion, up 8.5% from the previous quarter, while loans at quarter-end were $7.9 billion, up 1.9% from the prior quarter-end.
The company declared a quarterly dividend of $0.45 per share.
Released on October 25, 2023, Eagle Bancorp Inc (NASDAQ:EGBN)'s Q3 2023 earnings report shows a slight decrease in net income compared to the previous quarter. However, the company maintains a strong financial position with steady performance and improved funding mix.
Financial Performance and Challenges
Eagle Bancorp Inc (NASDAQ:EGBN) reported a net income of $27.4 million for Q3 2023, a decrease from $28.7 million in Q2 2023 and $37.3 million in Q3 2022. The decrease in earnings was attributed to lower noninterest income, lower net interest income, and a reversal of $1.6 million of interest income due to a loan entering nonperforming status in the quarter.
Financial Achievements
Despite the decrease in net income, the company's financial position remains strong. Deposits at the end of the quarter were $8.4 billion, up 8.5% from the previous quarter. Loans at quarter-end were $7.9 billion, up 1.9% from the prior quarter-end. The company also declared a quarterly dividend of $0.45 per share.
Income Statement, Balance Sheet, and Cash Flow Statement
Net interest income was $70.7 million for Q3 2023, compared to $71.8 million for the prior quarter. The net interest margin was 2.43% for Q3 2023, compared to 2.49% for the prior quarter. The provision for credit losses was $5.6 million for the quarter, compared to $5.2 million the prior quarter. Noninterest income was $6.3 million for Q3 2023, compared to $8.6 million for the prior quarter. Noninterest expense was $37.6 million for Q3 2023 compared to $38.0 million for the prior quarter.
Company's Performance Analysis
Despite the decrease in net income, the company's performance remains steady. The company's funding mix improved with deposit inflows and paydowns of short-term debt. The company's asset quality metrics and regulatory capital ratios remain strong. The company is also working to diversify its assets and loans and drive core deposit growth.
Other Pertinent Details
The company's common equity and tangible common equity ratios were 10.89% and 10.04% respectively. Nonperforming assets as a percentage of total assets was 0.64% and the net charge-off (annualized) for the quarter was 0.02% of average total loans.
Explore the complete 8-K earnings release (here) from Eagle Bancorp Inc for further details.
This article first appeared on GuruFocus.
