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Dec 31, 2024
Eagle Bancorp Q4 2024 Earnings Report
Reported net income of $15.3 million, with challenges in asset quality and valuation risk in the office portfolio.
Key Takeaways
Eagle Bancorp reported a net income of $15.3 million for Q4 2024, a decrease compared to the previous quarter. The company successfully repaid $1 billion of Bank Term Funding Program debt and saw deposit growth, but faced challenges with asset quality and increased non-performing assets.
Net income was $15.3 million, or $0.50 per diluted share, down from $21.8 million in the prior quarter.
Nonperforming assets increased to $211.5 million, representing 1.90% of total assets.
Total deposits increased by $590.2 million to $9.1 billion.
The company successfully repaid $1 billion of Bank Term Funding Program debt.
Eagle Bancorp
Eagle Bancorp
Forward Guidance
Eagle Bancorp expects further benefits to funding costs in the first half of 2025 by prioritizing more effective use of wholesale funding and passing through short-term rate reductions to non-maturity deposits.
Positive Outlook
- Expect further benefits to funding costs in the first half of 2025.
- Prioritizing more effective use of wholesale funding.
- Passing through short-term rate reductions to non-maturity deposits.
- Common equity tier one capital increasing to 14.6%.
- Tangible common equity ratio exceeding 10%.
Challenges Ahead
- Asset quality fell short of expectations.
- Valuation risk in office portfolio continues to be a key concern.
- Non-accruals increased due to a $74.9 million commercial real estate office loan.
- Annualized quarterly net charge-offs for the fourth quarter were 0.48% compared to 0.26% for the third quarter 2024.
- The net interest margin decreased to 2.29% for the fourth quarter 2024, compared to 2.37% for the prior quarter.