Eagle Bancorp , Inc. (NASDAQ:EGBN) reported a decrease in net income in Q3 2023, with earnings falling to $27.4 million from Q2's $28.7 million. This decline was primarily due to a drop in noninterest income, reduced net interest income, and a reversal of $1.6 million in interest income due to a loan turning nonperforming.
Despite the fall in net income, Eagle Bancorp's robust financial health was evident with an increase in quarter-end deposits and loans. Deposits rose by 8.5% to reach $8.4 billion, while loans increased by 1.9% to hit $7.9 billion compared to the previous quarter-end figures.
The company declared a quarterly dividend of $0.45 per share, further demonstrating its strong financial position. It also maintained robust asset quality metrics and regulatory capital ratios, with the common equity ratio standing at 10.89%, and the tangible common equity ratio at 10.04%.
Nonperforming assets constituted 0.64% of total assets, and the net charge-off for the quarter was 0.02% of average total loans. Net interest income fell from $71.8 million to $70.7 million, causing a decrease in the net interest margin from 2.49% to 2.43%.
Eagle Bancorp set aside $5.6 million for credit losses, up slightly from the previous quarter's provision of $5.2 million. Noninterest income dropped from $8.6 million to $6.3 million while noninterest expenses remained steady at $37.6 million.
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