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Mar 31, 2020
Eagle Bancorp Q1 2020 Earnings Report
Reported net income of $23.1 million and total assets of $10.01 billion for the first quarter of 2020.
Key Takeaways
Eagle Bancorp reported a net income of $23.1 million for Q1 2020, with total assets reaching $10.01 billion, a 19% increase year-over-year. The company's performance was impacted by the adoption of CECL and COVID-19 related loan loss provisioning.
Net income for Q1 2020 was $23.1 million, or $0.70 per share.
Total assets grew to $10.01 billion, a 19% increase compared to Q1 2019.
The company adopted the CECL standard, impacting retained earnings and loan loss provisioning.
Efficiency ratio was 43.83% for Q1 2020, consistent with Q1 2019.
Eagle Bancorp
Eagle Bancorp
Forward Guidance
While the Company’s capital position remains well above regulatory well capitalized levels, due to the heightened volatility of the stock market and uncertainty regarding the impact of COVID-19, the Company’s remaining authorization to repurchase shares has been put on hold. Management believes that our capital position remains very strong and at this time, we expect to maintain our quarterly dividend.
Positive Outlook
- Capital position remains well above regulatory requirements.
- Expect to maintain quarterly dividend.
- Average deposits have increased.
- Maintain a very liquid investment portfolio, including significant overnight liquidity.
- The Company’s productivity remained strong in the quarter and the efficiency ratio of 43.83% reflects management’s ongoing efforts to maintain superior operating leverage.
Challenges Ahead
- Heightened volatility of the stock market.
- Uncertainty regarding the impact of COVID-19.
- Remaining authorization to repurchase shares has been put on hold.
- The evolution of the COVID-19 pandemic and related containment and relief measures will determine how the impacts will be reflected in our loan portfolio, including these measures, over time.
- Sharply lower market interest rates over the past four quarters and a continuing relatively flat yield curve maintains pressure on the Company’s net interest margin.