EX-99.1 2 er4q2023-earningsreleasete.htm EX-99.1

PRESS RELEASE FOR |  | EAGLE BANCORP, INC.
IMMEDIATE RELEASE |  | CONTACT:
|  | David G. Danielson
January 24, 2024 |  | 240.552.9534

EAGLE BANCORP, INC. ANNOUNCES NET INCOME FOR
FOURTH QUARTER 2023 OF $20.2 MILLION OR $0.67 PER DILUTED SHARE
BETHESDA, MD, Eagle Bancorp, Inc. (the "Company") (NASDAQ: EGBN), the parent company of EagleBank (the "Bank"), today announced net income of $20.2 million for the fourth quarter 2023, compared to net income of $27.4 million for the third quarter 2023 (the "prior quarter"). Net income was $0.68 per share (basic) and $0.67 per share (diluted) for the fourth quarter 2023, compared to $0.91 per share for the prior quarter (basic and diluted).
The $7.2 million decrease in earnings from the prior quarter was attributable to a higher provision for credit losses and lower noninterest income. These reductions were partially offset by higher net interest income as interest income on loans and investments outpaced the increase in interest expense.
Susan G. Riel, President and Chief Executive Officer of the Company, commented, "EagleBank's franchise showed resiliency throughout 2023 by exhibiting continued strength with strong capital levels, strong operating efficiency, and commitment to our customers through a dynamic and uncertain operating environment. The Company's 2023 performance reflected a normalization of asset quality metrics and elevated funding costs from higher interest rates. The team's efforts positively impacted our momentum in the face of these challenges. Deposits ended higher than the comparable year-ago period for the first time in six quarters, and net interest income increased quarter over quarter for the first time in four quarters."
"The EagleBank team is committed to continuing its efforts to grow and improve the quality of our deposit portfolio, reduce the reliance on wholesale funding, and grow our commercial lending team," Ms. Riel said. "I am confident the management team has identified strategies to be executed in 2024 to position the Company for future sustainable growth and an enhanced earnings profile. I am excited about the future and prospects of EagleBank and its ability to serve our communities and customers for years to come."
"We once again thank all of our employees for their commitment in serving the needs of our clients and communities. Additionally, we remain committed to a culture of respect, diversity and inclusion in both the workplace and the communities we serve."
Fourth Quarter 2023 Highlights
•The funding mix continued to improve as deposits at quarter-end were $8.8 billion, up $432 million, or 5.2%, from the prior quarter-end, and are now higher than a year ago before the market disruption in the first quarter of 2023. The increase in deposits was primarily from growth in noninterest bearing demand deposits reflecting a large deposit toward the end of the quarter from a third-party payment processor and money market accounts from a fourth quarter consumer deposit campaign. Average noninterest bearings deposits as a percent of average deposits declined to
1

22.9%, from 25.1% in the prior quarter. Additionally, brokered deposits declined to 27.0% of deposits at quarter-end, from 29.1% a quarter ago.
•The net interest margin ("NIM") was 2.45% for the fourth quarter 2023, compared to 2.43% for the prior quarter.
•The Company declared a quarterly dividend of $0.45 per share.
•At quarter-end, the common equity and tangible common equity ratios were 10.92% and 10.12%1, respectively.
•Loans at quarter-end were $8.0 billion, up $52 million, or 0.6%, from the prior quarter-end.
•Nonperforming assets as a percentage of total assets was 0.57% and the net charge-off year-to-date was 0.24% of average total loans.
•The provision for credit losses was $14.5 million for the quarter, as compared to $5.6 million the prior quarter. The allowance for credit losses as a percent of total loans was 1.08% at quarter-end; up from 1.05% a quarter ago.
•Total estimated uninsured deposits at December 31, 2023 were $2.8 billion 2, or 31.4% of deposits.
Income Statement
•Net interest income was $73.0 million for the fourth quarter 2023, compared to $70.7 million for the prior quarter. The increase in net interest income from the prior quarter was primarily driven by an increase in earning assets as well as higher yields on loans and investments.
•Provision for credit losses on loans was $14.5 million for the fourth quarter 2023, compared to $5.6 million for the prior quarter. The increase in the fourth quarter 2023 provision over the prior quarter was primarily driven by the partial charge-off of an office loan that moved to nonperforming and by the sale of a CRE multi-family construction loan. In addition, there was an increase in qualitative reserve that was offset by a reduction in the quantitative reserve. The increase in the qualitative reserve was related to changes in the nature and volume of the portfolio, changes in delinquencies and loss experience, and changes in loan ratings. The reduction in the quantitative reserves was based on a decline in individually evaluated loans.
•Noninterest income was $2.9 million for the fourth quarter 2023, as compared to $6.3 million for the prior quarter. The primary driver for the decrease in the fourth quarter 2023 from the prior quarter were market value adjustments on our derivative book due to lower interest rates.
•Noninterest expense was $37.1 million for the fourth quarter 2023, as compared to $37.6 million for the prior quarter. Noninterest expense was down $535 thousand from the prior quarter, primarily due to lower overall expenses offset by higher FDIC fees, which were up $1.1 million from the prior quarter on higher assessment fees.
Loans, Total Assets and Funding
•Total loans (excluding loans held for sale) were $8.0 billion at December 31, 2023, up 0.7% from a quarter ago. The increase in total loans from the prior quarter-end was driven by growth in C&I loans and construction loans for commercial and residential properties as period-end balances for commercial real estate loans were down.
1 A reconciliation between this non-GAAP financial measure and the nearest GAAP measure is provided in the tables that accompany this document.
2 Estimated amount of uninsured deposits to be reported on line RCON5597 of schedule RC-O in the Bank's December 31, 2023 Call Report.
2

At December 31, 2023, income-producing commercial real estate loans secured by office properties other than owner-occupied properties ("CRE office loans") were 11.9% of the total loan portfolio. Our CRE office loans are primarily located in the Washington, D.C. market; with 24.5% in the District of Columbia, 35.4% in Washington's Maryland suburbs, 32.7% in Northern Virginia, and 7.4% located outside these markets.
•Total deposits were $8.8 billion at December 31, 2023, up 5.2% from a quarter ago. The increase from the prior quarter-end was primarily attributable to an increase in noninterest bearing demand and money market accounts as time deposits declined. Brokered deposits were 27.0% of deposits at quarter-end, down from 29.1% a quarter ago. The decrease in brokered funds as a percent of deposits was from both the increase in total deposits and a decline in brokered demand deposits. The increase in deposits lowered the loan-to-deposit ratio to 90% at December 31, 2023, down from 95% a quarter ago.
•Borrowings were $1.4 billion at December 31, 2023, unchanged from a quarter ago. As of December 31, 2023, the Company had aggregate available borrowing capacity of $2.1 billion, which includes $1.9 billion in additional aggregate capacity to borrow with the Federal Home Loan Bank and Bank Term Funding Program on assets that have been pledged and unencumbered securities totaling approximately $244 million available for pledging to the Federal Home Loan Bank or Bank Term Funding Program.
Asset Quality
•Allowance for credit losses was 1.08% of total loans at December 31, 2023, compared to 1.05% a quarter ago. See commentary above in section "Provision for Credit Losses on Loans."
Net charge-off was $11.9 million for the quarter, which as a percent of average loans (excluding loans held for sale)3 was 0.60% for the fourth quarter 2023, compared to 0.02% a quarter ago. Charge-offs for the fourth quarter 2023 were primarily from the partial charge-off of the office loan and a charge-off related to a write-down of a CRE multi-family construction loan that was sold.
•Nonperforming loans and assets were $65.5 million and $66.6 million, respectively, at December 31, 2023.
◦Nonperforming loans ("NPLs") as a percent of loans were 0.82% at December 31, 2023, compared to 0.89% a quarter ago. The decrease from a quarter ago was primarily from the the sale of the CRE multi-family construction loan offset by the addition of the office loan.
◦Nonperforming assets ("NPAs") as a percent of assets were 0.57% at December 31, 2023, compared to 0.64% a quarter ago. The decrease in NPAs from the prior quarter are related to the two loans mentioned above. At quarter end, other real estate owned consisted of two properties with an aggregate value of $1.1 million.
◦Loans 30-89 days late were $20.7 million at December 31, 2023, down from $46.4 million a quarter ago. The decrease from the prior quarter was primarily from the two properties that were added last quarter migrating to nonperforming.
3 Net charge-offs as a percent of average loans (excluding loans held for sale) are shown on an annualized basis.
3

Capital
•Total shareholders’ equity was $1.3 billion at December 31, 2023, up 4.8% from a quarter ago. The increase in shareholders' equity of $58.4 million from the prior quarter-end was primarily from higher valuations of AFS securities and retained earnings.
•Book value per share was $42.58, up $1.94 from a quarter ago.
•Tangible book value per share 4 was $39.08, up $1.96 from a quarter ago.
Additional financial information: The financial information that follows provides more detail on the Company’s financial performance for the three months ended December 31, 2023 as compared to the three months ended September 30, 2023 and December 31, 2022, as well as eight quarters of trend data. Persons wishing additional information should refer to the Company’s Annual Report on Form 10-K for the year ended December 31, 2022, and other reports filed with the SEC.
About Eagle Bancorp: The Company is the holding company for EagleBank, which commenced operations in 1998. The Bank is headquartered in Bethesda, Maryland, and operates through thirteen banking offices and four lending offices, located in Suburban Maryland, Washington, D.C. and Northern Virginia. The Company focuses on building relationships with businesses, professionals and individuals in its marketplace, and is committed to a culture of respect, diversity, equity and inclusion in both its workplace and the communities in which it operates.
Conference call: Eagle Bancorp will host a conference call to discuss its fourth quarter 2023 financial results on Thursday, January 25, 2024 at 10:00 a.m. eastern time.
The listen-only webcast can be accessed at:
•https://edge.media-server.com/mmc/p/4hh5z8e9
•For analysts who wish to participate in the conference call, please register at the following URL:
•https://register.vevent.com/register/BI893787e0a29c4aa283a1a1c1b90db360
•A replay of the conference call will be available on the Company’s website through February 8, 2024: https://www.eaglebankcorp.com/
Forward-looking statements: This press release contains forward-looking statements within the meaning of the Securities Exchange Act of 1934, as amended, including statements of goals, intentions, and expectations as to future trends, plans, events or results of Company operations and policies and regarding general economic conditions. In some cases, forward-looking statements can be identified by use of words such as "may," "will," "can," "anticipates," "believes," "expects," "plans," "estimates," "potential," "continue," "should," "could," "strive," "feel" and similar words or phrases. These statements are based upon current and anticipated economic conditions, nationally and in the Company’s market (including volatility in interest rates and interest rate policy; the current high inflationary environment; competitive factors) and other conditions (such as the impact of bank failures or adverse developments at other banks and related negative press about the banking industry in general on investor and depositor sentiment regarding the stability and liquidity of banks), which by their nature are not susceptible to accurate forecast and are subject to significant uncertainty. Because of these uncertainties and the assumptions on which this discussion and the forward-looking statements are based, actual future operations and results in the future may differ materially from those indicated herein. For details on factors that could affect these expectations, see the risk factors and other cautionary language included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022 and in other periodic and current reports filed with the SEC. Readers are cautioned against placing undue reliance on any such forward-looking statements. The Company’s past results are not necessarily indicative of future performance, and nothing contained
4 A reconciliation of non-GAAP financial measures to the nearest GAAP measure is provided in the tables that accompany this document.
4

herein is meant to or should be considered and treated as earnings guidance of future quarters’ performance projections. Information regarding the Company’s uninsured deposits consists of preliminary estimates, which are forward-looking statements and subject to change, possibly materially, as the Bank completes its fourth quarter 2023 Call Report. All information is as of the date of this press release. Any forward-looking statements made by or on behalf of the Company speak only as to the date they are made. Except to the extent required by applicable law or regulation, the Company undertakes no obligation to revise or update publicly any forward-looking statement for any reason.
5

Eagle Bancorp, Inc.
Consolidated Statements of Income (Unaudited)
(Dollars in thousands, except per share data)
| Three Months Ended |  |
| December 31, |  | September 30, |  | December 31, |  |  |  |
| 2023 |  | 2023 |  | 2022 |  |  |  |
Interest Income |  |  |  |  |  |  |  |  |
Interest and fees on loans | $ | 135,964 |  |  | $ | 132,273 |  |  | $ | 109,251 |  |  |  |  |
Interest and dividends on investment securities | 13,142 |  |  | 13,732 |  |  | 13,591 |  |  |  |  |
Interest on balances with other banks and short-term investments | 18,230 |  |  | 15,067 |  |  | 5,696 |  |  |  |  |
Interest on federal funds sold | 85 |  |  | 77 |  |  | 592 |  |  |  |  |
Total interest income | 167,421 |  |  | 161,149 |  |  | 129,130 |  |  |  |  |
Interest Expense |  |  |  |  |  |  |  |  |
Interest on deposits | 78,239 |  |  | 70,929 |  |  | 39,239 |  |  |  |  |
Interest on customer repurchase agreements | 272 |  |  | 311 |  |  | 266 |  |  |  |  |
Interest on borrowings | 15,918 |  |  | 19,190 |  |  | 4,025 |  |  |  |  |
Total interest expense | 94,429 |  |  | 90,430 |  |  | 43,530 |  |  |  |  |
Net Interest Income | 72,992 |  |  | 70,719 |  |  | 85,600 |  |  |  |  |
Provision for Credit Losses | 14,490 |  |  | 5,644 |  |  | (464) |  |  |  |  |
(Reversal of) Provision for Credit Losses for Unfunded Commitments | (594) |  |  | (839) |  |  | 161 |  |  |  |  |
Net Interest Income After (Reversal of) Provision For Credit Losses | 59,096 |  |  | 65,914 |  |  | 85,903 |  |  |  |  |
Noninterest Income |  |  |  |  |  |  |  |  |
Service charges on deposits | 1,688 |  |  | 1,631 |  |  | 1,429 |  |  |  |  |
Gain (Loss) on sale of loans | 23 |  |  | (5) |  |  | 534 |  |  |  |  |
Net gain on sale of investment securities | 3 |  |  | 5 |  |  | 3 |  |  |  |  |
Increase in cash surrender value of bank-owned life insurance | 687 |  |  | 669 |  |  | 658 |  |  |  |  |
Other income | 493 |  |  | 4,047 |  |  | 2,705 |  |  |  |  |
Total noninterest income | 2,894 |  |  | 6,347 |  |  | 5,329 |  |  |  |  |
Noninterest Expense |  |  |  |  |  |  |  |  |
Salaries and employee benefits | 18,416 |  |  | 21,549 |  |  | 23,691 |  |  |  |  |
Premises and equipment expenses | 2,967 |  |  | 3,095 |  |  | 3,292 |  |  |  |  |
Marketing and advertising | 1,071 |  |  | 768 |  |  | 1,290 |  |  |  |  |
Data processing | 3,436 |  |  | 3,194 |  |  | 3,117 |  |  |  |  |
Legal, accounting and professional fees | 2,722 |  |  | 2,162 |  |  | 2,553 |  |  |  |  |
FDIC insurance | 4,444 |  |  | 3,342 |  |  | 1,718 |  |  |  |  |
Other expenses | 4,042 |  |  | 3,523 |  |  | 3,257 |  |  |  |  |
Total noninterest expense | 37,098 |  |  | 37,633 |  |  | 38,918 |  |  |  |  |
Income Before Income Tax Expense | 24,892 |  |  | 34,628 |  |  | 52,314 |  |  |  |  |
Income Tax Expense | 4,667 |  |  | 7,245 |  |  | 10,121 |  |  |  |  |
Net Income | $ | 20,225 |  |  | $ | 27,383 |  |  | $ | 42,193 |  |  |  |  |
Earnings Per Common Share |  |  |  |  |  |  |  |  |
Basic | $ | 0.68 |  |  | $ | 0.91 |  |  | $ | 1.32 |  |  |  |  |
Diluted | $ | 0.67 |  |  | $ | 0.91 |  |  | $ | 1.32 |  |  |  |  |

6

Eagle Bancorp, Inc.
Consolidated Balance Sheets (Unaudited)
(Dollars in thousands, except per share data)
| December 31, |  | September 30, |  | December 31,
Assets | 2023 |  | 2023 |  | 2022
Cash and due from banks | $ | 9,047 |  |  | $ | 8,625 |  |  | $ | 12,655 |
Federal funds sold | 3,740 |  |  | 13,611 |  |  | 33,927 |
Interest-bearing deposits with banks and other short-term investments | 709,897 |  |  | 235,819 |  |  | 265,272 |
Investment securities available-for-sale at fair value (amortized cost of $1,668,316, $1,700,233, and $1,803,898, net of allowance for credit losses of $17, $17 and $17 as of December 31, 2023, September 30, 2023 and December 31, 2022, respectively) | 1,506,388 |  |  | 1,474,945 |  |  | 1,598,666 |
Investment securities held-to-maturity at amortized cost, net of allowance for credit losses of $1,956, $2,010 and $766 (fair value of $901,582, $872,710 and $968,707, as of December 31, 2023, September 30, 2023 and December 31, 2022, respectively) | 1,015,737 |  |  | 1,032,485 |  |  | 1,093,374 |
Federal Reserve and Federal Home Loan Bank stock | 25,748 |  |  | 25,689 |  |  | 65,067 |
Loans held for sale | — |  |  | — |  |  | 6,734 |
Loans | 7,968,695 |  |  | 7,916,391 |  |  | 7,635,632 |
Less allowance for credit losses | (85,940) |  |  | (83,332) |  |  | (74,444) |
Loans, net | 7,882,755 |  |  | 7,833,059 |  |  | 7,561,188 |
Premises and equipment, net | 10,189 |  |  | 11,216 |  |  | 13,475 |
Operating lease right-of-use assets | 19,129 |  |  | 20,151 |  |  | 24,544 |
Deferred income taxes | 86,620 |  |  | 98,987 |  |  | 96,567 |
Bank-owned life insurance | 112,921 |  |  | 112,234 |  |  | 110,998 |
Goodwill and intangible assets, net | 104,925 |  |  | 105,239 |  |  | 104,233 |
Other real estate owned | 1,108 |  |  | 1,487 |  |  | 1,962 |
Other assets | 176,334 |  |  | 190,667 |  |  | 162,192 |
Total assets | $ | 11,664,538 |  |  | $ | 11,164,214 |  |  | $ | 11,150,854 |
Liabilities and Shareholders' Equity |  |  |  |  |
Deposits: |  |  |  |  |
Noninterest bearing demand | $ | 2,279,081 |  |  | $ | 2,072,665 |  |  | $ | 3,150,751 |
Interest bearing transaction | 997,448 |  |  | 932,779 |  |  | 1,138,235 |
Savings and money market | 3,314,043 |  |  | 3,129,773 |  |  | 3,640,697 |
Time deposits | 2,217,467 |  |  | 2,241,089 |  |  | 783,499 |
Total deposits | 8,808,039 |  |  | 8,376,306 |  |  | 8,713,182 |
Customer repurchase agreements | 30,587 |  |  | 25,689 |  |  | 35,100 |
Borrowings | 1,369,918 |  |  | 1,369,888 |  |  | 1,044,795 |
Operating lease liabilities | 23,238 |  |  | 24,422 |  |  | 29,267 |
Reserve for unfunded commitments | 5,590 |  |  | 6,183 |  |  | 5,857 |
Other liabilities | 152,883 |  |  | 145,842 |  |  | 94,332 |
Total liabilities | 10,390,255 |  |  | 9,948,330 |  |  | 9,922,533 |
Shareholders' Equity |  |  |  |  |
Common stock, par value $.01 per share; shares authorized 100,000,000, shares issued and outstanding 29,925,612, 29,917,982, and 31,346,903 respectively | 296 |  |  | 296 |  |  | 310 |
Additional paid in capital | 374,888 |  |  | 372,394 |  |  | 412,303 |
Retained earnings | 1,061,456 |  |  | 1,054,699 |  |  | 1,015,215 |
Accumulated other comprehensive loss | (162,357) |  |  | (211,505) |  |  | (199,507) |
Total Shareholders' Equity | 1,274,283 |  |  | 1,215,884 |  |  | 1,228,321 |
Total Liabilities and Shareholders' Equity | $ | 11,664,538 |  |  | $ | 11,164,214 |  |  | $ | 11,150,854 |

7

Loan Mix and Asset Quality
(Dollars in thousands)

| December 31, |  | September 30, |  | December 31,
| 2023 |  | 2023 |  | 2022
| Amount | % |  | Amount | % |  | Amount | %
Loan Balances - Period End: |  |  |  |  |  |  |  |
Commercial and Industrial | $ | 1,473,766 |  | 18 | % |  | $ | 1,418,760 |  | 18 | % |  | $ | 1,487,349 |  | 19 | %
PPP loans | 528 |  | — | % |  | 588 |  | — | % |  | 3,256 |  | — | %
Commercial real estate - income producing | 4,094,614 |  | 51 | % |  | 4,147,301 |  | 52 | % |  | 3,919,941 |  | 51 | %
Commercial real estate - owner occupied | 1,172,239 |  | 15 | % |  | 1,182,959 |  | 15 | % |  | 1,110,325 |  | 15 | %
1-4 Family mortgage | 73,396 |  | 1 | % |  | 76,511 |  | 1 | % |  | 73,001 |  | 1 | %
Construction - commercial and residential | 969,766 |  | 12 | % |  | 904,282 |  | 11 | % |  | 877,755 |  | 12 | %
Construction - C&I (owner occupied) | 132,021 |  | 2 | % |  | 129,616 |  | 2 | % |  | 110,479 |  | 1 | %
Home equity | 51,964 |  | 1 | % |  | 53,917 |  | 1 | % |  | 51,782 |  | 1 | %
Other consumer | 401 |  | — | % |  | 2,457 |  | — | % |  | 1,744 |  | — | %
Total loans | $ | 7,968,695 |  | 100 | % |  | $ | 7,916,391 |  | 100 | % |  | $ | 7,635,632 |  | 100 | %

| Three Months Ended or As Of
| December 31, |  | September 30, |  | December 31,
| 2023 |  | 2023 |  | 2022
Asset Quality: |  |  |  |  |
Net charge-off | $ | 11,936 |  |  | $ | 340 |  |  | $ | 896 |
Nonperforming loans | $ | 65,524 |  |  | $ | 70,158 |  |  | $ | 6,468 |
Other real estate owned | $ | 1,108 |  |  | $ | 1,487 |  |  | $ | 1,962 |
Nonperforming assets | $ | 66,632 |  |  | $ | 71,645 |  |  | $ | 8,430 |
Special mention | $ | 204,971 |  |  | $ | 158,182 |  |  | $ | 113,578 |
Substandard | $ | 335,325 |  |  | $ | 219,001 |  |  | $ | 88,666 |

8

Eagle Bancorp, Inc.
Consolidated Average Balances, Interest Yields And Rates vs. Prior Quarter (Unaudited)
(Dollars in thousands)
| Three Months Ended
| December 31, 2023 |  | September 30, 2023
| Average Balance |  | Interest |  | Average Yield/Rate |  | Average Balance |  | Interest |  | Average Yield/Rate
ASSETS |  |  |  |  |  |  |  |  |  |  |
Interest earning assets: |  |  |  |  |  |  |  |  |  |  |
Interest bearing deposits with other banks and other short-term investments | $ | 1,340,972 |  |  | $ | 18,230 |  |  | 5.39 | % |  | $ | 1,127,451 |  |  | $ | 15,067 |  |  | 5.30 | %
Loans (1) (2) | 7,963,074 |  |  | 135,964 |  |  | 6.77 | % |  | 7,795,144 |  |  | 132,273 |  |  | 6.73 | %
Investment securities available-for-sale (2) | 1,498,132 |  |  | 7,611 |  |  | 2.02 | % |  | 1,554,348 |  |  | 8,126 |  |  | 2.07 | %
Investment securities held-to-maturity (2) | 1,027,230 |  |  | 5,531 |  |  | 2.14 | % |  | 1,047,515 |  |  | 5,606 |  |  | 2.12 | %
Federal funds sold | 8,314 |  |  | 85 |  |  | 4.06 | % |  | 7,728 |  |  | 77 |  |  | 3.95 | %
Total interest earning assets | 11,837,722 |  |  | $ | 167,421 |  |  | 5.61 | % |  | 11,532,186 |  |  | $ | 161,149 |  |  | 5.54 | %
Total noninterest earning assets | 530,364 |  |  |  |  |  |  | 489,683 |  |  |  |  |
Less: allowance for credit losses | 84,783 |  |  |  |  |  |  | 78,964 |  |  |  |  |
Total noninterest earning assets | 445,581 |  |  |  |  |  |  | 410,719 |  |  |  |  |
TOTAL ASSETS | $ | 12,283,303 |  |  |  |  |  |  | $ | 11,942,905 |  |  |  |  |
LIABILITIES AND SHAREHOLDERS' EQUITY |  |  |  |  |  |  |  |  |  |
Interest bearing liabilities: |  |  |  |  |  |  |  |  |  |  |
Interest bearing transaction | $ | 1,843,617 |  |  | $ | 16,607 |  |  | 3.57 | % |  | $ | 1,421,522 |  |  | $ | 12,785 |  |  | 3.57 | %
Savings and money market | 3,297,581 |  |  | 35,384 |  |  | 4.26 | % |  | 3,113,755 |  |  | 32,855 |  |  | 4.19 | %
Time deposits | 2,164,038 |  |  | 26,248 |  |  | 4.81 | % |  | 2,162,582 |  |  | 25,289 |  |  | 4.64 | %
Total interest bearing deposits | 7,305,236 |  |  | 78,239 |  |  | 4.25 | % |  | 6,697,859 |  |  | 70,929 |  |  | 4.20 | %
Customer repurchase agreements | 31,290 |  |  | 272 |  |  | 3.45 | % |  | 36,082 |  |  | 311 |  |  | 3.42 | %
Borrowings | 1,370,627 |  |  | 15,918 |  |  | 4.61 | % |  | 1,610,097 |  |  | 19,190 |  |  | 4.73 | %
Total interest bearing liabilities | 8,707,153 |  |  | $ | 94,429 |  |  | 4.30 | % |  | 8,344,038 |  |  | $ | 90,430 |  |  | 4.30 | %
Noninterest bearing liabilities: |  |  |  |  |  |  |  |  |  |  |
Noninterest bearing demand | 2,166,133 |  |  |  |  |  |  | 2,248,782 |  |  |  |  |
Other liabilities | 171,254 |  |  |  |  |  |  | 114,923 |  |  |  |  |
Total noninterest bearing liabilities | 2,337,387 |  |  |  |  |  |  | 2,363,705 |  |  |  |  |
Shareholders’ equity | 1,238,763 |  |  |  |  |  |  | 1,235,162 |  |  |  |  |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ | 12,283,303 |  |  |  |  |  |  | $ | 11,942,905 |  |  |  |  |
Net interest income |  |  | $ | 72,992 |  |  |  |  |  |  | $ | 70,719 |  |  |
Net interest spread |  |  |  |  | 1.31 | % |  |  |  |  |  | 1.24 | %
Net interest margin |  |  |  |  | 2.45 | % |  |  |  |  |  | 2.43 | %
Cost of funds |  |  |  |  | 3.45 | % |  |  |  |  |  | 3.39 | %

(1) Loans placed on nonaccrual status are included in average balances. Net loan fees and late charges included in interest income on loans totaled $4.7 million and $4.1 million for the three months ended December 31, 2023 and September 30, 2023, respectively.
(2) Interest and fees on loans and investments exclude tax equivalent adjustments.
9

Eagle Bancorp, Inc.
Consolidated Average Balances, Interest Yields And Rates vs. Year Ago Quarter (Unaudited)
(Dollars in thousands)
| Three Months Ended December 31,
| 2023 |  | 2022
| Average Balance |  | Interest |  | Average Yield/Rate |  | Average Balance |  | Interest |  | Average Yield/Rate
ASSETS |  |  |  |  |  |  |  |  |  |  |
Interest earning assets: |  |  |  |  |  |  |  |  |  |  |
Interest bearing deposits with other banks and other short-term investments | $ | 1,340,972 |  |  | $ | 18,230 |  |  | 5.39 | % |  | $ | 600,653 |  |  | $ | 5,696 |  |  | 3.76 | %
Loans held for sale (1) | — |  |  | — |  |  | — | % |  | 6,868 |  |  | 102 |  |  | 5.89 | %
Loans (1) (2) | 7,963,074 |  |  | 135,964 |  |  | 6.77 | % |  | 7,379,198 |  |  | 109,149 |  |  | 5.87 | %
Investment securities available-for-sale (2) | 1,498,132 |  |  | 7,611 |  |  | 2.02 | % |  | 1,658,228 |  |  | 7,753 |  |  | 1.85 | %
Investment securities held-to-maturity (2) | 1,027,230 |  |  | 5,531 |  |  | 2.14 | % |  | 1,105,209 |  |  | 5,838 |  |  | 2.10 | %
Federal funds sold | 8,314 |  |  | 85 |  |  | 4.06 | % |  | 79,547 |  |  | 592 |  |  | 2.95 | %
Total interest earning assets | 11,837,722 |  |  | $ | 167,421 |  |  | 5.61 | % |  | 10,829,703 |  |  | $ | 129,130 |  |  | 4.73 | %
Total noninterest earning assets | 530,364 |  |  |  |  |  |  | 501,977 |  |  |  |  |
Less: allowance for credit losses | 84,783 |  |  |  |  |  |  | 75,724 |  |  |  |  |
Total noninterest earning assets | 445,581 |  |  |  |  |  |  | 426,253 |  |  |  |  |
TOTAL ASSETS | $ | 12,283,303 |  |  |  |  |  |  | $ | 11,255,956 |  |  |  |  |
LIABILITIES AND SHAREHOLDERS' EQUITY |  |  |  |  |  |  |  |  |  |
Interest bearing liabilities: |  |  |  |  |  |  |  |  |  |  |
Interest bearing transaction | $ | 1,843,617 |  |  | $ | 16,607 |  |  | 3.57 | % |  | $ | 996,951 |  |  | $ | 3,877 |  |  | 1.54 | %
Savings and money market | 3,297,581 |  |  | 35,384 |  |  | 4.26 | % |  | 3,963,022 |  |  | 31,571 |  |  | 3.16 | %
Time deposits | 2,164,038 |  |  | 26,248 |  |  | 4.81 | % |  | 667,202 |  |  | 3,791 |  |  | 2.25 | %
Total interest bearing deposits | 7,305,236 |  |  | 78,239 |  |  | 4.25 | % |  | 5,627,175 |  |  | 39,239 |  |  | 2.77 | %
Customer repurchase agreements | 31,290 |  |  | 272 |  |  | 3.45 | % |  | 45,521 |  |  | 266 |  |  | 2.32 | %
Borrowings | 1,370,627 |  |  | 15,918 |  |  | 4.61 | % |  | 365,539 |  |  | 4,025 |  |  | 4.37 | %
Total interest bearing liabilities | 8,707,153 |  |  | $ | 94,429 |  |  | 4.30 | % |  | 6,038,235 |  |  | $ | 43,530 |  |  | 2.86 | %
Noninterest bearing liabilities: |  |  |  |  |  |  |  |  |  |  |
Noninterest bearing demand | 2,166,133 |  |  |  |  |  |  | 3,896,964 |  |  |  |  |
Other liabilities | 171,254 |  |  |  |  |  |  | 87,052 |  |  |  |  |
Total noninterest bearing liabilities | 2,337,387 |  |  |  |  |  |  | 3,984,016 |  |  |  |  |
Shareholders’ equity | 1,238,763 |  |  |  |  |  |  | 1,233,705 |  |  |  |  |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ | 12,283,303 |  |  |  |  |  |  | $ | 11,255,956 |  |  |  |  |
Net interest income |  |  | $ | 72,992 |  |  |  |  |  |  | $ | 85,600 |  |  |
Net interest spread |  |  |  |  | 1.31 | % |  |  |  |  |  | 1.87 | %
Net interest margin |  |  |  |  | 2.45 | % |  |  |  |  |  | 3.14 | %
Cost of funds(3) |  |  |  |  | 3.45 | % |  |  |  |  |  | 1.74 | %

(1) Loans placed on nonaccrual status are included in average balances. Net loan fees and late charges included in interest income on loans totaled $4.7 million and $3.8 million for the three months ended December 31, 2023 and December 31, 2022, respectively.
(2) Interest and fees on loans and investments exclude tax equivalent adjustments.
(3) Beginning in the second quarter of 2023, the Company revised its cost of funds methodology to use a daily average calculation where interest expense on interest bearing liabilities is divided by average interest bearing liabilities and average noninterest bearing deposits. Previously, the Company calculated the cost of funds as the difference between yield on earning assets and net interest margin. Prior period has been conformed to the current presentation.
10

Eagle Bancorp, Inc.
Statements of Income and Highlights Quarterly Trends (Unaudited)
(Dollars in thousands, except per share data)
| Three Months Ended
| December 31, |  | September 30, |  | June 30, |  | March 31, |  | December 31, |  | September 30, |  | June 30, |  | March 31,
Income Statements: | 2023 |  | 2023 |  | 2023 |  | 2023 |  | 2022 |  | 2022 |  | 2022 |  | 2022
Total interest income | $ | 167,421 |  |  | $ | 161,149 |  |  | $ | 156,510 |  |  | $ | 140,247 |  |  | $ | 129,130 |  |  | $ | 111,527 |  |  | $ | 95,635 |  |  | $ | 88,321 |
Total interest expense | 94,429 |  |  | 90,430 |  |  | 84,699 |  |  | 65,223 |  |  | 43,530 |  |  | 27,630 |  |  | 12,717 |  |  | 7,869 |
Net interest income | 72,992 |  |  | 70,719 |  |  | 71,811 |  |  | 75,024 |  |  | 85,600 |  |  | 83,897 |  |  | 82,918 |  |  | 80,452 |
Provision for (reversal of) credit losses | 14,490 |  |  | 5,644 |  |  | 5,238 |  |  | 6,164 |  |  | (464) |  |  | 3,022 |  |  | 495 |  |  | (2,787) |
Provision for (reversal of) unfunded commitments | (594) |  |  | (839) |  |  | 318 |  |  | 848 |  |  | 161 |  |  | 774 |  |  | 553 |  |  | (11) |
Net interest income after provision for credit losses | 59,096 |  |  | 65,914 |  |  | 66,255 |  |  | 68,012 |  |  | 85,903 |  |  | 80,101 |  |  | 81,870 |  |  | 83,250 |
Noninterest income before investment gain (loss) | 2,891 |  |  | 6,342 |  |  | 8,593 |  |  | 3,721 |  |  | 5,326 |  |  | 5,304 |  |  | 5,715 |  |  | 7,478 |
Net gain (loss) on sale of investment securities | 3 |  |  | 5 |  |  | 2 |  |  | (21) |  |  | 3 |  |  | 4 |  |  | (151) |  |  | (25) |
Total noninterest income | 2,894 |  |  | 6,347 |  |  | 8,595 |  |  | 3,700 |  |  | 5,329 |  |  | 5,308 |  |  | 5,564 |  |  | 7,453 |
Salaries and employee benefits | 18,416 |  |  | 21,549 |  |  | 21,957 |  |  | 24,174 |  |  | 23,691 |  |  | 21,538 |  |  | 21,805 |  |  | 17,019 |
Premises and equipment | 2,967 |  |  | 3,095 |  |  | 3,227 |  |  | 3,317 |  |  | 3,292 |  |  | 3,275 |  |  | 3,523 |  |  | 3,128 |
Marketing and advertising | 1,071 |  |  | 768 |  |  | 884 |  |  | 636 |  |  | 1,290 |  |  | 1,181 |  |  | 1,186 |  |  | 1,064 |
Other expenses | 14,644 |  |  | 12,221 |  |  | 11,910 |  |  | 12,457 |  |  | 10,645 |  |  | 10,212 |  |  | 32,448 |  |  | 9,801 |
Total noninterest expense | 37,098 |  |  | 37,633 |  |  | 37,978 |  |  | 40,584 |  |  | 38,918 |  |  | 36,206 |  |  | 58,962 |  |  | 31,012 |
Income before income tax expense | 24,892 |  |  | 34,628 |  |  | 36,872 |  |  | 31,128 |  |  | 52,314 |  |  | 49,203 |  |  | 28,472 |  |  | 59,691 |
Income tax expense | 4,667 |  |  | 7,245 |  |  | 8,180 |  |  | 6,894 |  |  | 10,121 |  |  | 11,906 |  |  | 12,776 |  |  | 13,947 |
Net income | $ | 20,225 |  |  | $ | 27,383 |  |  | $ | 28,692 |  |  | $ | 24,234 |  |  | $ | 42,193 |  |  | $ | 37,297 |  |  | $ | 15,696 |  |  | $ | 45,744 |
Per Share Data: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Earnings per weighted average common share, basic | $ | 0.68 |  |  | $ | 0.91 |  |  | $ | 0.94 |  |  | $ | 0.78 |  |  | $ | 1.32 |  |  | $ | 1.16 |  |  | $ | 0.49 |  |  | $ | 1.43 |
Earnings per weighted average common share, diluted | $ | 0.67 |  |  | $ | 0.91 |  |  | $ | 0.94 |  |  | $ | 0.78 |  |  | $ | 1.32 |  |  | $ | 1.16 |  |  | $ | 0.49 |  |  | $ | 1.42 |
Weighted average common shares outstanding, basic | 29,925,557 |  |  | 29,910,218 |  |  | 30,454,766 |  |  | 31,109,267 |  |  | 31,819,631 |  |  | 32,084,464 |  |  | 32,080,657 |  |  | 32,033,280 |
Weighted average common shares outstanding, diluted | 29,966,962 |  |  | 29,944,692 |  |  | 30,505,468 |  |  | 31,180,346 |  |  | 31,898,619 |  |  | 32,155,678 |  |  | 32,142,427 |  |  | 32,110,099 |
Actual shares outstanding at period end | 29,925,612 |  |  | 29,917,982 |  |  | 29,912,082 |  |  | 31,111,647 |  |  | 31,346,903 |  |  | 32,082,321 |  |  | 32,081,241 |  |  | 32,079,474 |
Book value per common share at period end | $ | 42.58 |  |  | $ | 40.64 |  |  | $ | 40.78 |  |  | $ | 39.92 |  |  | $ | 39.18 |  |  | $ | 38.02 |  |  | $ | 39.05 |  |  | $ | 39.89 |
Tangible book value per common share at period end (1) | $ | 39.08 |  |  | $ | 37.12 |  |  | $ | 37.29 |  |  | $ | 36.57 |  |  | $ | 35.86 |  |  | $ | 34.77 |  |  | $ | 35.80 |  |  | $ | 36.64 |
Dividend per common share | $ | 0.45 |  |  | $ | 0.45 |  |  | $ | 0.45 |  |  | $ | 0.45 |  |  | $ | 0.45 |  |  | $ | 0.45 |  |  | $ | 0.45 |  |  | $ | 0.40 |
Performance Ratios (annualized): |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Return on average assets | 0.65 | % |  | 0.91 | % |  | 0.96 | % |  | 0.86 | % |  | 1.49 | % |  | 1.29 | % |  | 0.54 | % |  | 1.46 | %
Return on average common equity | 6.48 | % |  | 8.80 | % |  | 9.24 | % |  | 7.92 | % |  | 13.57 | % |  | 11.64 | % |  | 4.91 | % |  | 13.83 | %
Return on average tangible common equity(1) | 7.08 | % |  | 9.61 | % |  | 10.08 | % |  | 8.65 | % |  | 14.82 | % |  | 12.67 | % |  | 5.35 | % |  | 14.99 | %
Net interest margin | 2.45 | % |  | 2.43 | % |  | 2.49 | % |  | 2.77 | % |  | 3.14 | % |  | 3.02 | % |  | 2.94 | % |  | 2.65 | %
Efficiency ratio (2) | 48.9 | % |  | 48.8 | % |  | 47.2 | % |  | 51.6 | % |  | 42.8 | % |  | 40.6 | % |  | 66.6 | % |  | 35.3 | %
Other Ratios: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Allowance for credit losses to total loans (3) | 1.08 | % |  | 1.05 | % |  | 1.00 | % |  | 1.01 | % |  | 0.97 | % |  | 1.04 | % |  | 1.02 | % |  | 1.01 | %
Allowance for credit losses to total nonperforming loans | 131 | % |  | 118 | % |  | 268 | % |  | 1,160 | % |  | 1,151 | % |  | 997 | % |  | 386 | % |  | 301 | %
Nonperforming loans to total loans (3) | 0.82 | % |  | 0.89 | % |  | 0.37 | % |  | 0.09 | % |  | 0.08 | % |  | 0.10 | % |  | 0.26 | % |  | 0.33 | %
Nonperforming assets to total assets | 0.57 | % |  | 0.64 | % |  | 0.28 | % |  | 0.08 | % |  | 0.08 | % |  | 0.09 | % |  | 0.19 | % |  | 0.23 | %
Net charge-off (recovery)(annualized) to average total loans (3) | 0.60 | % |  | 0.02 | % |  | 0.29 | % |  | 0.05 | % |  | 0.05 | % |  | — | % |  | (0.04) | % |  | 0.03 | %
Tier 1 capital (to average assets) | 10.73 | % |  | 10.96 | % |  | 10.84 | % |  | 11.42 | % |  | 11.63 | % |  | 11.55 | % |  | 10.68 | % |  | 9.82 | %
Total capital (to risk weighted assets) | 14.79 | % |  | 14.54 | % |  | 14.51 | % |  | 14.74 | % |  | 14.94 | % |  | 15.60 | % |  | 15.14 | % |  | 15.21 | %
Common equity tier 1 capital (to risk weighted assets) | 13.90 | % |  | 13.68 | % |  | 13.55 | % |  | 13.75 | % |  | 14.03 | % |  | 14.64 | % |  | 14.06 | % |  | 14.12 | %
Tangible common equity ratio (1) | 10.12 | % |  | 10.04 | % |  | 10.21 | % |  | 10.36 | % |  | 10.18 | % |  | 10.52 | % |  | 10.60 | % |  | 10.57 | %
Average Balances (in thousands): |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Total assets | $ | 12,283,303 |  |  | $ | 11,942,905 |  |  | $ | 11,960,111 |  |  | $ | 11,426,056 |  |  | $ | 11,255,956 |  |  | $ | 11,431,110 |  |  | $ | 11,701,679 |  |  | $ | 12,701,152 |
Total earning assets | $ | 11,837,722 |  |  | $ | 11,532,186 |  |  | $ | 11,546,050 |  |  | $ | 11,004,817 |  |  | $ | 10,829,703 |  |  | $ | 11,030,670 |  |  | $ | 11,300,267 |  |  | $ | 12,326,473 |
Total loans(3) | $ | 7,963,074 |  |  | $ | 7,795,144 |  |  | $ | 7,790,555 |  |  | $ | 7,712,023 |  |  | $ | 7,379,198 |  |  | $ | 7,282,589 |  |  | $ | 7,104,727 |  |  | $ | 7,053,701 |
Total deposits | $ | 9,471,369 |  |  | $ | 8,946,641 |  |  | $ | 8,514,938 |  |  | $ | 8,734,125 |  |  | $ | 9,524,139 |  |  | $ | 9,907,497 |  |  | $ | 10,184,886 |  |  | $ | 10,874,976 |
Total borrowings | $ | 1,401,917 |  |  | $ | 1,646,179 |  |  | $ | 2,102,507 |  |  | $ | 1,359,463 |  |  | $ | 411,060 |  |  | $ | 158,001 |  |  | $ | 152,583 |  |  | $ | 371,987 |
Total shareholders’ equity | $ | 1,238,763 |  |  | $ | 1,235,162 |  |  | $ | 1,245,647 |  |  | $ | 1,240,978 |  |  | $ | 1,233,705 |  |  | $ | 1,271,753 |  |  | $ | 1,281,742 |  |  | $ | 1,341,785 |

(1) A reconciliation of non-GAAP financial measures to the nearest GAAP measure is provided in the tables that accompany this document.
(2) Computed by dividing noninterest expense by the sum of net interest income and noninterest income.
(3) Excludes loans held for sale.
11

GAAP Reconciliation (unaudited)
(dollars in thousands, except per share data)
| December 31, |  | September 30, |  | December 31,
| 2023 |  | 2023 |  | 2022
Tangible common equity |  |  |  |  |
Common shareholders' equity | $ | 1,274,283 |  |  | $ | 1,215,884 |  |  | $ | 1,228,321 |
Less: Intangible assets | (104,925) |  |  | (105,239) |  |  | (104,233) |
Tangible common equity | $ | 1,169,358 |  |  | $ | 1,110,645 |  |  | $ | 1,124,088 |
Reverse: AOCI loss | 162,357 |  |  | 211,505 |  |  | 199,507 |
Tangible common equity, excluding AOCI | $ | 1,331,715 |  |  | $ | 1,322,150 |  |  | $ | 1,323,595 |
Tangible common equity ratio |  |  |  |  |
Total assets | $ | 11,664,538 |  |  | $ | 11,164,214 |  |  | $ | 11,150,854 |
Less: Intangible assets | (104,925) |  |  | (105,239) |  |  | (104,233) |
Tangible assets | $ | 11,559,613 |  |  | $ | 11,058,975 |  |  | $ | 11,046,621 |
Tangible common equity ratio | 10.12 | % |  | 10.04 | % |  | 10.18 | %
Per share calculations |  |  |  |  |
Book value per common share | $ | 42.58 |  |  | $ | 40.64 |  |  | $ | 39.18 |
Less: Intangible book value per common share | (3.50) |  |  | (3.52) |  |  | (3.32) |
Tangible book value per common share | $ | 39.08 |  |  | $ | 37.12 |  |  | $ | 35.86 |
Book value per common share | $ | 42.58 |  |  | $ | 40.64 |  |  | $ | 39.18 |
Reverse: AOCI loss | 5.42 |  |  | 7.07 |  |  | 6.36 |
Adjusted book value excluding AOCI per common share | $ | 48.00 |  |  | $ | 47.71 |  |  | $ | 45.54 |
Tangible book value per common share | $ | 39.08 |  |  | $ | 37.12 |  |  | $ | 35.86 |
Reverse: Loss on AOCI | 5.42 |  |  | 7.07 |  |  | 6.36 |
Adjusted tangible book value excluding AOCI per common share | $ | 44.50 |  |  | $ | 44.19 |  |  | $ | 42.22 |
Shares outstanding period end | 29,925,612 |  |  | 29,917,982 |  |  | 31,346,903 |

12

GAAP Reconciliation (unaudited)
(dollars in thousands)
| Three Months Ended
| December 31, |  | September 30, |  | December 31,
| 2023 |  | 2023 |  | 2022
Average tangible common equity |  |  |  |  |
Average common shareholders' equity | $ | 1,238,763 |  |  | $ | 1,235,162 |  |  | $ | 1,233,705 |
Less: Average intangible assets | (105,032) |  |  | (104,639) |  |  | (104,238) |
Average tangible common equity | $ | 1,133,731 |  |  | $ | 1,130,523 |  |  | $ | 1,129,467 |
Return on Average Tangible Common Equity |  |  |  |  |
Net income | $ | 20,225 |  |  | $ | 27,383 |  |  | $ | 42,193 |
Return on Average Tangible Common Equity | 7.08 | % |  | 9.61 | % |  | 14.82 | %
Efficiency ratio |  |  |  |  |
Net interest income | $ | 72,992 |  |  | $ | 70,719 |  |  | $ | 85,600 |
Noninterest income | 2,894 |  |  | 6,347 |  |  | 5,329 |
Operating revenue | $ | 75,886 |  |  | $ | 77,066 |  |  | $ | 90,929 |
Noninterest expense | $ | 37,098 |  |  | $ | 37,633 |  |  | $ | 38,918 |
Efficiency ratio | 48.9 | % |  | 48.8 | % |  | 42.8 | %

Tangible common equity to tangible assets (the "tangible common equity ratio"), tangible book value per common share, average tangible common equity, and the return on average tangible common equity are non-GAAP financial measures derived from GAAP based amounts. The Company calculates the tangible common equity ratio by excluding the balance of intangible assets from common shareholders' equity and dividing by tangible assets. The Company calculates tangible book value per common share by dividing tangible common equity by common shares outstanding, as compared to book value per common share, which the Company calculates by dividing common shareholders' equity by common shares outstanding. The Company calculates the annualized return on average tangible common equity ratio by dividing net income available to common shareholders by average tangible common equity, which is calculated by excluding the average balance of intangible assets from the average common shareholders’ equity. The Company considers this information important to shareholders as tangible equity is a measure that is consistent with the calculation of capital for bank regulatory purposes, which excludes intangible assets from the calculation of risk based ratios, and as such is useful for investors, regulators, management and others to evaluate capital adequacy and to compare against other financial institutions. The above tables provide reconciliations of these financial measures defined by GAAP with non-GAAP financial measures.
Efficiency ratio is a non-GAAP measure calculated by dividing GAAP non-interest expense by the sum of GAAP net interest income and GAAP non-interest (loss) income. The Company believes that reporting the non-GAAP efficiency ratio more closely measures its effectiveness of controlling operational activities. The table above shows the calculation of the efficiency ratio from these GAAP measures.
13