Eagle Bancorp, Inc. reported its financial results for the third quarter and the nine months ended September 30, 2024, revealing significant changes in revenue, profitability, and strategic developments compared to the previous fiscal period.

For the three months ended September 30, 2024, Eagle Bancorp recorded net income of $21.8 million, a decrease from $27.4 million in the same period of 2023. This decline was primarily attributed to a $4.5 million increase in the provision for credit losses and a $6.0 million rise in noninterest expenses, partially offset by a $2.3 million reduction in income tax expenses. The total revenue for the quarter was $78.8 million, up from $77.1 million year-over-year, driven by an increase in net interest income, which rose to $71.8 million from $70.7 million.

For the nine months ended September 30, 2024, the company reported a net loss of $62.3 million, a stark contrast to the net income of $80.3 million for the same period in 2023. This significant drop was largely due to a goodwill impairment charge of $104.2 million and an increase in the provision for credit losses, which totaled $54.9 million compared to $15.8 million in the prior year. Total revenue for the nine months was $233.8 million, slightly down from $236.2 million in 2023.

Eagle Bancorp's net interest margin decreased to 2.40% for the nine months ended September 30, 2024, from 2.56% in the same period of 2023. The average yield on loans increased to 6.93%, while the cost of funds rose to 3.63%. The company’s total deposits decreased to $8.5 billion from $8.8 billion at the end of 2023, primarily due to a $669.3 million drop in noninterest-bearing demand deposits, although time deposits increased by $493.4 million.

Strategically, the company has focused on enhancing its risk management practices, particularly in its commercial real estate portfolio, which has seen a growth of 28% over the past 36 months. The company has implemented stronger underwriting criteria and monitoring practices, including stress testing to evaluate potential impacts from interest rate changes.

As of September 30, 2024, total assets were reported at $11.3 billion, down from $11.7 billion at the end of 2023. The company’s capital ratios remain strong, with a total risk-based capital ratio of 15.51%, up from 14.79% at the end of the previous year. The common equity tier 1 (CET1) ratio also improved to 14.30% from 13.90%.

Overall, Eagle Bancorp's financial performance reflects challenges in profitability and credit quality, alongside strategic adjustments to enhance risk management and maintain capital adequacy in a fluctuating market environment.