EX-99.1 2 a991erq2-2024xearningsrele.htm EX-99.1

PRESS RELEASE FOR |  | EAGLE BANCORP, INC.
IMMEDIATE RELEASE |  | CONTACT:
|  | Eric R. Newell
July 24, 2024 |  | 240.497.1796

EAGLE BANCORP, INC. ANNOUNCES SECOND QUARTER 2024 RESULTS
Eagle grows Common Equity Tier 1 Capital and Tier 1 Capital leverage ratio to 13.9% and 10.6%, respectively
BETHESDA, MD, Eagle Bancorp, Inc. (NASDAQ: EGBN), ("Eagle", "the Company", "we", "us", "our"), the Bethesda-based parent company of EagleBank (the "Bank"), reported its unaudited results for the second quarter ended June 30, 2024.
Eagle recorded a $104.2 million impairment in the value of goodwill and a resulting net loss of $83.8 million or $2.78 per share for the second quarter 2024. The goodwill impairment does not impact our cash, liquidity ratios, core operating performance, or regulatory capital ratios. Operating net income 1, adjusted to exclude the impairment charge on goodwill, was $20.4 million or $0.67 per diluted share. We increased the Tier 1 capital leverage ratio to 10.6% and continue to grow the number of core deposit relationships.
"The Company's operating results materially improved from the first quarter due to a normalization of charge-offs from our loan portfolio. We continue to execute on our strategic plan as evidenced by initiatives such as the addition of the Expatriate Banking Services Division and the continued success of our digital banking channel driving our objective of further diversification of deposits and reducing the use of wholesale funding sources" said Susan G. Riel, President and Chief Executive Officer of the Company.
Ms. Riel continued, "I'm encouraged by our team's continued resilience, consistently upholding our brand and community role while serving as trusted partners to our customers. I am excited about EagleBank’s future prospects and its capacity to support our communities and customers for years ahead."
Eric R. Newell, Chief Financial Officer of the Company said, "While the Company experienced a net loss on a GAAP basis due to the impairment charge on goodwill, operating performance significantly improved from last quarter evidenced by operating net income 1 increasing $20.7 million to $20.4 million in the second quarter. We continued to build our reserve for credit losses, with coverage to total held for investment loans at 1.33% increasing 8 basis points from last quarter. Common equity tier one capital
1 A reconciliation of non-GAAP financial measures and the nearest GAAP measures is provided in the GAAP Reconciliation to Non-GAAP Financial Measure that accompany this document.
1

increased to 13.9% and our tangible common equity 1 ratio exceeds 10%. Our efforts remain laser focused on the continued implementation of our strategic objectives 2."
Ms. Riel added, "I thank all of our employees for their hard work and dedication. Additionally, we remain committed to a culture of respect, diversity and inclusion in both the workplace and the communities we serve."
Second Quarter 2024 Highlights
•The ACL as a percentage of total held for investment loans was 1.33% at quarter-end; up from 1.25% at the prior quarter-end. Performing office coverage 3 was 4.05% at quarter-end; as compared to 3.67% at the prior quarter-end.
•Nonperforming assets increased $6.7 million as of June 30, 2024 and were 0.88% of total assets compared to 0.79% as of March 31, 2024 largely due to increases from construction and income producing commercial real estate loans.
•Net charge-offs for the second quarter were 0.11% compared to 1.07% for the first quarter 2024. The decline in charge-offs reflects a charge-off in the first quarter that did not repeat in the second quarter.
•The net interest margin ("NIM") declined slightly to 2.40% for the second quarter 2024, compared to 2.43% for the prior quarter. While interest rates on earning assets remained stable, we saw costs on interest bearing liabilities increase 8 basis points driven by refinancing of maturing Bank Term Funding Program (“BTFP”) borrowings with Federal Home Loan Bank of Atlanta (“FHLB”) borrowings toward the end of the first quarter.
•The Company declared a quarterly dividend of $0.45 per share.
•At quarter-end, the common equity ratio, tangible common equity ratio, and common equity tier 1 capital (to risk-weighted assets) ratio were 10.35%, 10.35%, and 13.92%, respectively.
•Loans at quarter-end were $8.0 billion, up $19.0 million, or 0.2%, from the prior quarter-end.
•Deposits at quarter-end were $8.3 billion, down $234.1 million, or 2.8%, from the prior quarter-end. The decrease was primarily attributable to a decline in deposits from a third party payment processor related to the fluctuations in deposit levels resulting from its business, as well as a decline in public and brokered funding. Period end deposits have increased $549 million when compared to June 30, 2023.
•Total estimated insured deposits at quarter-end were $6.0 billion, or 72.5% of deposits.
•Total on-balance sheet liquidity and available capacity was $4.0 billion at quarter-end. Capacity was increased from the prior quarter as a result of pledging additional collateral to the FRB Discount window.
Income Statement
•Net interest income was $71.4 million for the second quarter 2024, compared to $74.7 million for the prior quarter. The decrease in net interest income was primarily driven by a decrease in the average balances of deposits held with other banks offset by lower average interest bearing liabilities with a higher rate during the second quarter as compared to the first quarter.
2 Refer to the 2nd Quarter 2024 Earnings Presentation that accompanies this release for further detail on the strategic objectives of the Company.
3 Calculated as the ACL attributable to loans collateralized by performing office properties as a percentage of total loans.
2

•Provision for credit losses was $9.0 million for the second quarter 2024, compared to $35.2 million for the prior quarter. The provision for the second quarter was driven by updates to the qualitative components of the CECL model. The decrease in the provision quarter over quarter reflects a higher provision in the first quarter due to a significant charge-off that did not repeat in the second quarter.
•Noninterest income was $5.3 million for the second quarter 2024, compared to $3.6 million for the prior quarter. The primary driver for the increase related to other income associated with the sale of a small mortgage servicing rights portfolio related to the FHA Multifamily business.
•Noninterest expense was $146.5 million for the second quarter 2024, compared to $40.0 million for the prior quarter. The increase over the comparative quarters was primarily due to a goodwill impairment charge of $104.2 million in the second quarter 2024. Excluding the goodwill impairment charge, our operating noninterest expense 4 was $42.3 million for the second quarter 2024. Aside from the goodwill impairment charge, the increase was associated with other expenses lead by real estate taxes.
Loans and Funding
•Total loans were $8.0 billion at June 30, 2024, up 0.2% from the prior quarter-end. The increase in total loans was driven by increased fundings of ongoing construction projects for commercial and residential properties, partially offset by a reduction in commercial loans from the prior quarter-end.
At June 30, 2024, income-producing commercial real estate loans secured by office properties other than owner-occupied properties were 11.3% of the total loan portfolio at principal, up from 11.2% at the prior quarter-end.
•Total deposits were $8.3 billion at June 30, 2024, down 2.8% from the prior quarter-end. The decrease was primarily attributable to a decline in deposits from a third party payment processor related to the fluctuations in deposit levels resulting from its business, as well as declines in some public and brokered funding.
•Borrowings were $1.7 billion at June 30, 2024, down 0.6% from the prior quarter-end.
Asset Quality
•Allowance for credit losses was 1.33% of total loans at June 30, 2024, compared to 1.25% at the prior quarter-end. Performing office coverage was 4.05% at quarter-end; as compared to 3.67% at the prior quarter-end.
•Net charge-offs were $2.3 million for the quarter compared to $21.4 million in the first quarter of 2024.
•Nonperforming assets were $98.9 million at June 30, 2024.
◦NPAs as a percentage of assets were 0.88% at June 30, 2024, compared to 0.79% at the prior quarter-end. At June 30, 2024, other real estate owned consisted of four properties with an aggregate carrying value of $773 thousand.
◦Loans 30-89 days past due were $8.4 million at June 30, 2024, down from $31.1 million at the prior.
4 A reconciliation of non-GAAP financial measures and the nearest GAAP measures is provided in the GAAP Reconciliation to Non-GAAP Financial Measure that accompany this document.
3

Capital
•Total shareholders' equity was $1.2 billion at June 30, 2024, down 7.1% from the prior quarter-end. The decrease in shareholders' equity of $90.0 million was primarily due to a goodwill impairment charge of $104.2 million.
•Book value per share was $38.75, down $2.97 from the prior quarter-end.
•Tangible book value per share 5 was $38.74, up $0.48 from the prior quarter-end.
Additional financial information: The financial information that follows provides more detail on the Company's financial performance for the three months ended June 30, 2024 as compared to the three months ended March 31, 2024 and June 30, 2023, 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, 2023, 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 twelve 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 second quarter 2024 financial results on Thursday, July 25, 2024 at 10:00 a.m. Eastern Time.
The listen-only webcast can be accessed at:
•https://edge.media-server.com/mmc/p/psn698x6/
•For analysts who wish to participate in the conference call, please register at the following URL:
https://register.vevent.com/register/BId373c2f4d3af4a28a271e79bee6e0bca
•A replay of the conference call will be available on the Company's website through August 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 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
5 A reconciliation of non-GAAP financial measures and the nearest GAAP measures is provided in the GAAP Reconciliation to Non-GAAP Financial Measure that accompany this document.
4

on Form 10-K for the year ended December 31, 2023 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 herein is meant to or should be considered and treated as earnings guidance of future quarters' performance projections. 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 Operations (Unaudited)
(Dollars in thousands, except per share data)
| Three Months Ended |  |
| June 30, |  | March 31, |  | June 30, |  |  |  |
| 2024 |  | 2024 |  | 2023 |  |  |  |
Interest Income |  |  |  |  |  |  |  |  |
Interest and fees on loans | $ | 137,616 |  |  | $ | 137,994 |  |  | $ | 128,993 |  |  |  |  |
Interest and dividends on investment securities | 12,405 |  |  | 12,680 |  |  | 14,241 |  |  |  |  |
Interest on balances with other banks and short-term investments | 19,568 |  |  | 24,862 |  |  | 13,229 |  |  |  |  |
Interest on federal funds sold | 142 |  |  | 66 |  |  | 47 |  |  |  |  |
Total interest income | 169,731 |  |  | 175,602 |  |  | 156,510 |  |  |  |  |
Interest Expense |  |  |  |  |  |  |  |  |
Interest on deposits | 76,846 |  |  | 79,383 |  |  | 59,422 |  |  |  |  |
Interest on customer repurchase agreements | 330 |  |  | 315 |  |  | 333 |  |  |  |  |
Interest on borrowings | 21,202 |  |  | 21,206 |  |  | 24,944 |  |  |  |  |
Total interest expense | 98,378 |  |  | 100,904 |  |  | 84,699 |  |  |  |  |
Net Interest Income | 71,353 |  |  | 74,698 |  |  | 71,811 |  |  |  |  |
Provision for Credit Losses | 8,959 |  |  | 35,175 |  |  | 5,238 |  |  |  |  |
Provision for Credit Losses for Unfunded Commitments | 608 |  |  | 456 |  |  | 318 |  |  |  |  |
Net Interest Income After Provision for Credit Losses | 61,786 |  |  | 39,067 |  |  | 66,255 |  |  |  |  |
Noninterest Income |  |  |  |  |  |  |  |  |
Service charges on deposits | 1,653 |  |  | 1,699 |  |  | 1,626 |  |  |  |  |
Gain on sale of loans | 37 |  |  | — |  |  | 95 |  |  |  |  |
Net gain on sale of investment securities | 3 |  |  | 4 |  |  | 2 |  |  |  |  |
Increase in cash surrender value of bank-owned life insurance | 709 |  |  | 703 |  |  | 648 |  |  |  |  |
Other income | 2,930 |  |  | 1,183 |  |  | 6,224 |  |  |  |  |
Total noninterest income | 5,332 |  |  | 3,589 |  |  | 8,595 |  |  |  |  |
Noninterest Expense |  |  |  |  |  |  |  |  |
Salaries and employee benefits | 21,770 |  |  | 21,726 |  |  | 21,957 |  |  |  |  |
Premises and equipment expenses | 2,894 |  |  | 3,059 |  |  | 3,227 |  |  |  |  |
Marketing and advertising | 1,662 |  |  | 859 |  |  | 884 |  |  |  |  |
Data processing | 3,495 |  |  | 3,293 |  |  | 3,354 |  |  |  |  |
Legal, accounting and professional fees | 2,705 |  |  | 2,507 |  |  | 2,649 |  |  |  |  |
FDIC insurance | 5,917 |  |  | 6,412 |  |  | 2,581 |  |  |  |  |
Goodwill impairment | 104,168 |  |  | — |  |  | — |  |  |  |  |
Other expenses | 3,880 |  |  | 2,141 |  |  | 3,326 |  |  |  |  |
Total noninterest expense | 146,491 |  |  | 39,997 |  |  | 37,978 |  |  |  |  |
(Loss) Income Before Income Tax Expense | (79,373) |  |  | 2,659 |  |  | 36,872 |  |  |  |  |
Income Tax Expense | 4,429 |  |  | 2,997 |  |  | 8,180 |  |  |  |  |
Net (Loss) Income | $ | (83,802) |  |  | $ | (338) |  |  | $ | 28,692 |  |  |  |  |
(Loss) Earnings Per Common Share |  |  |  |  |  |  |  |  |
Basic | $ | (2.78) |  |  | $ | (0.01) |  |  | $ | 0.94 |  |  |  |  |
Diluted | $ | (2.78) |  |  | $ | (0.01) |  |  | $ | 0.94 |  |  |  |  |

6

Eagle Bancorp, Inc.
Consolidated Balance Sheets (Unaudited)
(Dollars in thousands, except per share data)
| June 30, |  | March 31, |  | June 30,
| 2024 |  | 2024 |  | 2023
Assets |  |  |  |  |
Cash and due from banks | $ | 10,803 |  |  | $ | 10,076 |  |  | $ | 9,865 |
Federal funds sold | 5,802 |  |  | 11,343 |  |  | 3,981 |
Interest-bearing deposits with banks and other short-term investments | 526,228 |  |  | 696,453 |  |  | 174,072 |
Investment securities available-for-sale at fair value (amortized cost of $1,584,435, $1,613,659, and $1,732,722, respectively, and allowance for credit losses of $17, $17 and $17, respectively) | 1,420,618 |  |  | 1,445,034 |  |  | 1,535,589 |
Investment securities held-to-maturity at amortized cost, net of allowance for credit losses of $2,012, $1,957 and $2,010, respectively (fair value of $856,275, $878,159 and $923,313, respectively) | 982,955 |  |  | 1,000,732 |  |  | 1,055,181 |
Federal Reserve and Federal Home Loan Bank stock | 54,274 |  |  | 54,678 |  |  | 46,199 |
Loans held for sale | 5,000 |  |  | — |  |  | — |
Loans | 8,001,739 |  |  | 7,982,702 |  |  | 7,766,719 |
Less: allowance for credit losses | (106,301) |  |  | (99,684) |  |  | (78,029) |
Loans, net | 7,895,438 |  |  | 7,883,018 |  |  | 7,688,690 |
Premises and equipment, net | 8,788 |  |  | 9,504 |  |  | 11,979 |
Operating lease right-of-use assets | 16,250 |  |  | 17,679 |  |  | 21,580 |
Deferred income taxes | 86,236 |  |  | 87,813 |  |  | 92,574 |
Bank-owned life insurance | 114,333 |  |  | 113,624 |  |  | 111,565 |
Goodwill and intangible assets, net | 129 |  |  | 104,611 |  |  | 104,220 |
Other real estate owned | 773 |  |  | 773 |  |  | 1,487 |
Other assets | 174,396 |  |  | 177,310 |  |  | 177,759 |
Total Assets | $ | 11,302,023 |  |  | $ | 11,612,648 |  |  | $ | 11,034,741 |
Liabilities and Shareholders' Equity |  |  |  |  |
Liabilities |  |  |  |  |
Deposits: |  |  |  |  |
Noninterest-bearing demand | $ | 1,693,955 |  |  | $ | 1,835,524 |  |  | $ | 2,010,353 |
Interest-bearing transaction | 1,123,980 |  |  | 1,207,566 |  |  | 930,308 |
Savings and money market | 3,165,314 |  |  | 3,235,391 |  |  | 2,791,040 |
Time deposits | 2,284,099 |  |  | 2,222,958 |  |  | 1,986,426 |
Total deposits | 8,267,348 |  |  | 8,501,439 |  |  | 7,718,127 |
Customer repurchase agreements | 39,220 |  |  | 37,059 |  |  | 37,017 |
Borrowings | 1,659,979 |  |  | 1,669,948 |  |  | 1,906,615 |
Operating lease liabilities | 20,016 |  |  | 21,611 |  |  | 26,007 |
Reserve for unfunded commitments | 6,653 |  |  | 6,045 |  |  | 7,023 |
Other liabilities | 139,348 |  |  | 117,133 |  |  | 120,186 |
Total Liabilities | 10,132,564 |  |  | 10,353,235 |  |  | 9,814,975 |
Shareholders' Equity |  |  |  |  |
Common stock, par value $0.01 per share; shares authorized 100,000,000, shares issued and outstanding 30,180,482, 30,185,732, and 29,912,082, respectively | 297 |  |  | 297 |  |  | 296 |
Additional paid-in capital | 380,142 |  |  | 377,334 |  |  | 370,278 |
Retained earnings | 949,863 |  |  | 1,047,550 |  |  | 1,040,779 |
Accumulated other comprehensive loss | (160,843) |  |  | (165,768) |  |  | (191,587) |
Total Shareholders' Equity | 1,169,459 |  |  | 1,259,413 |  |  | 1,219,766 |
Total Liabilities and Shareholders' Equity | $ | 11,302,023 |  |  | $ | 11,612,648 |  |  | $ | 11,034,741 |

7

Loan Mix and Asset Quality
(Dollars in thousands)

| June 30, |  | March 31, |  | June 30,
| 2024 |  | 2024 |  | 2023
| Amount | % |  | Amount | % |  | Amount | %
Loan Balances - Period End: |  |  |  |  |  |  |  |
Commercial | $ | 1,238,261 |  | 15 | % |  | $ | 1,473,766 |  | 18 | % |  | $ | 1,431,284 |  | 18 | %
PPP loans | 407 |  | — | % |  | 528 |  | — | % |  | 649 |  | — | %
Income producing - commercial real estate | 4,217,525 |  | 53 | % |  | 4,094,614 |  | 51 | % |  | 4,086,049 |  | 53 | %
Owner occupied - commercial real estate | 1,263,714 |  | 16 | % |  | 1,172,239 |  | 15 | % |  | 1,122,334 |  | 14 | %
Real estate mortgage - residential | 61,338 |  | 1 | % |  | 73,396 |  | 1 | % |  | 76,596 |  | 1 | %
Construction - commercial and residential | 1,063,764 |  | 13 | % |  | 969,766 |  | 12 | % |  | 862,869 |  | 11 | %
Construction - C&I (owner occupied) | 99,526 |  | 1 | % |  | 132,021 |  | 2 | % |  | 132,843 |  | 2 | %
Home equity | 52,773 |  | 1 | % |  | 51,964 |  | 1 | % |  | 53,934 |  | 1 | %
Other consumer | 4,431 |  | — | % |  | 401 |  | — | % |  | 161 |  | — | %
Total loans | $ | 8,001,739 |  | 100 | % |  | $ | 7,968,695 |  | 100 | % |  | $ | 7,766,719 |  | 100 | %

| Three Months Ended or As Of
| June 30, |  | March 31, |  | June 30,
| 2024 |  | 2024 |  | 2023
Asset Quality: |  |  |  |  |
Net charge-offs | $ | 2,285 |  |  | $ | 21,430 |  |  | $ | 5,598 |
Nonperforming loans | $ | 98,169 |  |  | $ | 91,491 |  |  | $ | 29,098 |
Other real estate owned | $ | 773 |  |  | $ | 773 |  |  | $ | 1,487 |
Nonperforming assets | $ | 98,942 |  |  | $ | 92,264 |  |  | $ | 30,585 |
Special mention | $ | 307,906 |  |  | $ | 265,348 |  |  | $ | 155,810 |
Substandard | $ | 408,311 |  |  | $ | 361,776 |  |  | $ | 219,045 |

8

Eagle Bancorp, Inc.
Consolidated Average Balances, Interest Yields And Rates vs. Prior Quarter (Unaudited)
(Dollars in thousands)
| Three Months Ended
| June 30, 2024 |  | March 31, 2024
| 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 | $ | 1,455,007 |  |  | $ | 19,568 |  |  | 5.41 | % |  | $ | 1,841,771 |  |  | $ | 24,862 |  |  | 5.43 | %
Loans held for sale (1) | 8,045 |  |  | 100 |  |  | 5.00 | % |  | — |  |  | — |  |  | — | %
Loans (1) (2) | $ | 8,003,206 |  |  | 137,516 |  |  | 6.91 | % |  | 7,988,941 |  |  | 137,994 |  |  | 6.95 | %
Investment securities available-for-sale (2) | 1,478,856 |  |  | 7,048 |  |  | 1.92 | % |  | 1,516,503 |  |  | 7,247 |  |  | 1.92 | %
Investment securities held-to-maturity (2) | 995,274 |  |  | 5,357 |  |  | 2.16 | % |  | 1,011,231 |  |  | 5,433 |  |  | 2.16 | %
Federal funds sold | 13,058 |  |  | 142 |  |  | 4.37 | % |  | 7,051 |  |  | 66 |  |  | 3.76 | %
Total interest earning assets | 11,953,446 |  |  | $ | 169,731 |  |  | 5.71 | % |  | 12,365,497 |  |  | $ | 175,602 |  |  | 5.71 | %
Total noninterest earning assets | 510,725 |  |  |  |  |  |  | 508,987 |  |  |  |  |
Less: allowance for credit losses | (102,671) |  |  |  |  |  |  | (90,014) |  |  |  |  |
Total noninterest earning assets | 408,054 |  |  |  |  |  |  | 418,973 |  |  |  |  |
TOTAL ASSETS | $ | 12,361,500 |  |  |  |  |  |  | $ | 12,784,470 |  |  |  |  |
LIABILITIES AND SHAREHOLDERS' EQUITY |  |  |  |  |  |  |  |  |  |
Interest bearing liabilities: |  |  |  |  |  |  |  |  |  |  |
Interest-bearing transaction | $ | 1,636,795 |  |  | $ | 16,100 |  |  | 3.96 | % |  | $ | 1,833,493 |  |  | $ | 16,830 |  |  | 3.69 | %
Savings and money market | 3,321,001 |  |  | 33,451 |  |  | 4.05 | % |  | 3,423,388 |  |  | 35,930 |  |  | 4.22 | %
Time deposits | 2,215,693 |  |  | 27,295 |  |  | 4.95 | % |  | 2,187,320 |  |  | 26,623 |  |  | 4.90 | %
Total interest bearing deposits | 7,173,489 |  |  | 76,846 |  |  | 4.31 | % |  | 7,444,201 |  |  | 79,383 |  |  | 4.29 | %
Customer repurchase agreements | 38,599 |  |  | 330 |  |  | 3.44 | % |  | 36,084 |  |  | 315 |  |  | 3.51 | %
Borrowings | 1,682,684 |  |  | 21,202 |  |  | 5.07 | % |  | 1,796,863 |  |  | 21,206 |  |  | 4.75 | %
Total interest bearing liabilities | 8,894,772 |  |  | $ | 98,378 |  |  | 4.45 | % |  | 9,277,148 |  |  | $ | 100,904 |  |  | 4.37 | %
Noninterest bearing liabilities: |  |  |  |  |  |  |  |  |  |  |
Noninterest bearing demand | 2,051,777 |  |  |  |  |  |  | 2,057,460 |  |  |  |  |
Other liabilities | 151,324 |  |  |  |  |  |  | 160,206 |  |  |  |  |
Total noninterest bearing liabilities | 2,203,101 |  |  |  |  |  |  | 2,217,666 |  |  |  |  |
Shareholders' equity | 1,263,627 |  |  |  |  |  |  | 1,289,656 |  |  |  |  |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ | 12,361,500 |  |  |  |  |  |  | $ | 12,784,470 |  |  |  |  |
Net interest income |  |  | $ | 71,353 |  |  |  |  |  |  | $ | 74,698 |  |  |
Net interest spread |  |  |  |  | 1.26 | % |  |  |  |  |  | 1.34 | %
Net interest margin |  |  |  |  | 2.40 | % |  |  |  |  |  | 2.43 | %
Cost of funds |  |  |  |  | 3.61 | % |  |  |  |  |  | 3.58 | %

(1)Loans placed on nonaccrual status are included in average balances. Net loan fees and late charges included in interest income on loans totaled $4.8 million and $5.1 million for the three months ended June 30, 2024 and March 31, 2024, 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 June 30,
| 2024 |  | 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 | $ | 1,455,007 |  |  | $ | 19,568 |  |  | 5.41 | % |  | $ | 1,053,961 |  |  | $ | 13,229 |  |  | 5.03 | %
Loans held for sale (1) | 8,045 |  |  | 100 |  |  | 5.00 | % |  | 813 |  |  | 13 |  |  | 6.40 | %
Loans (1) (2) | 8,003,206 |  |  | 137,516 |  |  | 6.91 | % |  | 7,790,555 |  |  | 128,980 |  |  | 6.64 | %
Investment securities available-for-sale (2) | 1,478,856 |  |  | 7,048 |  |  | 1.92 | % |  | 1,626,330 |  |  | 8,526 |  |  | 2.10 | %
Investment securities held-to-maturity (2) | 995,274 |  |  | 5,357 |  |  | 2.16 | % |  | 1,068,755 |  |  | 5,715 |  |  | 2.14 | %
Federal funds sold | 13,058 |  |  | 142 |  |  | 4.37 | % |  | 5,636 |  |  | 47 |  |  | 3.34 | %
Total interest earning assets | 11,953,446 |  |  | $ | 169,731 |  |  | 5.71 | % |  | 11,546,050 |  |  | $ | 156,510 |  |  | 5.44 | %
Total noninterest earning assets | 510,725 |  |  |  |  |  |  | 492,426 |  |  |  |  |
Less: allowance for credit losses | (102,671) |  |  |  |  |  |  | (78,365) |  |  |  |  |
Total noninterest earning assets | 408,054 |  |  |  |  |  |  | 414,061 |  |  |  |  |
TOTAL ASSETS | $ | 12,361,500 |  |  |  |  |  |  | $ | 11,960,111 |  |  |  |  |
LIABILITIES AND SHAREHOLDERS' EQUITY |  |  |  |  |  |  |  |  |  |
Interest bearing liabilities: |  |  |  |  |  |  |  |  |  |  |
Interest bearing transaction | $ | 1,636,795 |  |  | $ | 16,100 |  |  | 3.96 | % |  | $ | 1,312,710 |  |  | $ | 10,640 |  |  | 3.25 | %
Savings and money market | 3,321,001 |  |  | 33,451 |  |  | 4.05 | % |  | 2,967,678 |  |  | 30,861 |  |  | 4.17 | %
Time deposits | 2,215,693 |  |  | 27,295 |  |  | 4.95 | % |  | 1,675,690 |  |  | 17,921 |  |  | 4.29 | %
Total interest bearing deposits | 7,173,489 |  |  | 76,846 |  |  | 4.31 | % |  | 5,956,078 |  |  | 59,422 |  |  | 4.00 | %
Customer repurchase agreements | 38,599 |  |  | 330 |  |  | 3.44 | % |  | 41,105 |  |  | 333 |  |  | 3.25 | %
Borrowings | 1,682,684 |  |  | 21,202 |  |  | 5.07 | % |  | 2,061,402 |  |  | 24,944 |  |  | 4.85 | %
Total interest bearing liabilities | 8,894,772 |  |  | $ | 98,378 |  |  | 4.45 | % |  | 8,058,585 |  |  | $ | 84,699 |  |  | 4.22 | %
Noninterest bearing liabilities: |  |  |  |  |  |  |  |  |  |  |
Noninterest bearing demand | 2,051,777 |  |  |  |  |  |  | 2,558,860 |  |  |  |  |
Other liabilities | 151,324 |  |  |  |  |  |  | 97,019 |  |  |  |  |
Total noninterest bearing liabilities | 2,203,101 |  |  |  |  |  |  | 2,655,879 |  |  |  |  |
Shareholders' equity | 1,263,627 |  |  |  |  |  |  | 1,245,647 |  |  |  |  |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ | 12,361,500 |  |  |  |  |  |  | $ | 11,960,111 |  |  |  |  |
Net interest income |  |  | $ | 71,353 |  |  |  |  |  |  | $ | 71,811 |  |  |
Net interest spread |  |  |  |  | 1.26 | % |  |  |  |  |  | 1.22 | %
Net interest margin |  |  |  |  | 2.40 | % |  |  |  |  |  | 2.49 | %
Cost of funds |  |  |  |  | 3.61 | % |  |  |  |  |  | 3.20 | %

(1)Loans placed on nonaccrual status are included in average balances. Net loan fees and late charges included in interest income on loans totaled $4.8 million and $7.9 million for the three months ended June 30, 2024 and 2023, respectively.
(2)Interest and fees on loans and investments exclude tax equivalent adjustments.
10

Eagle Bancorp, Inc.
Statements of Operations and Highlights Quarterly Trends (Unaudited)
(Dollars in thousands, except per share data)
| Three Months Ended
| June 30, |  | March 31, |  | December 31, |  | September 30, |  | June 30, |  | March 31, |  | December 31, |  | September 30,
Income Statements: | 2024 |  | 2024 |  | 2023 |  | 2023 |  | 2023 |  | 2023 |  | 2022 |  | 2022
Total interest income | $ | 169,731 |  |  | $ | 175,602 |  |  | $ | 167,421 |  |  | $ | 161,149 |  |  | $ | 156,510 |  |  | $ | 140,247 |  |  | $ | 129,130 |  |  | $ | 111,527 |
Total interest expense | 98,378 |  |  | 100,904 |  |  | 94,429 |  |  | 90,430 |  |  | 84,699 |  |  | 65,223 |  |  | 43,530 |  |  | 27,630 |
Net interest income | 71,353 |  |  | 74,698 |  |  | 72,992 |  |  | 70,719 |  |  | 71,811 |  |  | 75,024 |  |  | 85,600 |  |  | 83,897 |
Provision for (reversal of) credit losses | 8,959 |  |  | 35,175 |  |  | 14,490 |  |  | 5,644 |  |  | 5,238 |  |  | 6,164 |  |  | (464) |  |  | 3,022 |
Provision for (reversal of) credit losses for unfunded commitments | 608 |  |  | 456 |  |  | (594) |  |  | (839) |  |  | 318 |  |  | 848 |  |  | 161 |  |  | 774 |
Net interest income after provision for (reversal of) credit losses | 61,786 |  |  | 39,067 |  |  | 59,096 |  |  | 65,914 |  |  | 66,255 |  |  | 68,012 |  |  | 85,903 |  |  | 80,101 |
Noninterest income before investment gain (loss) | 5,329 |  |  | 3,585 |  |  | 2,891 |  |  | 6,342 |  |  | 8,593 |  |  | 3,721 |  |  | 5,326 |  |  | 5,304 |
Net gain (loss) on sale of investment securities | 3 |  |  | 4 |  |  | 3 |  |  | 5 |  |  | 2 |  |  | (21) |  |  | 3 |  |  | 4 |
Total noninterest income | 5,332 |  |  | 3,589 |  |  | 2,894 |  |  | 6,347 |  |  | 8,595 |  |  | 3,700 |  |  | 5,329 |  |  | 5,308 |
Salaries and employee benefits | 21,770 |  |  | 21,726 |  |  | 18,416 |  |  | 21,549 |  |  | 21,957 |  |  | 24,174 |  |  | 23,691 |  |  | 21,538 |
Premises and equipment expenses | 2,894 |  |  | 3,059 |  |  | 2,967 |  |  | 3,095 |  |  | 3,227 |  |  | 3,317 |  |  | 3,292 |  |  | 3,275 |
Marketing and advertising | 1,662 |  |  | 859 |  |  | 1,071 |  |  | 768 |  |  | 884 |  |  | 636 |  |  | 1,290 |  |  | 1,181 |
Goodwill impairment | 104,168 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Other expenses | 15,997 |  |  | 14,353 |  |  | 14,644 |  |  | 12,221 |  |  | 11,910 |  |  | 12,457 |  |  | 10,645 |  |  | 10,212 |
Total noninterest expense | 146,491 |  |  | 39,997 |  |  | 37,098 |  |  | 37,633 |  |  | 37,978 |  |  | 40,584 |  |  | 38,918 |  |  | 36,206 |
(Loss) income before income tax expense | (79,373) |  |  | 2,659 |  |  | 24,892 |  |  | 34,628 |  |  | 36,872 |  |  | 31,128 |  |  | 52,314 |  |  | 49,203 |
Income tax expense | 4,429 |  |  | 2,997 |  |  | 4,667 |  |  | 7,245 |  |  | 8,180 |  |  | 6,894 |  |  | 10,121 |  |  | 11,906 |
Net (loss) income | $ | (83,802) |  |  | $ | (338) |  |  | $ | 20,225 |  |  | $ | 27,383 |  |  | $ | 28,692 |  |  | $ | 24,234 |  |  | $ | 42,193 |  |  | $ | 37,297 |
Per Share Data: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
(Loss) earnings per weighted average common share, basic | $ | (2.78) |  |  | $ | (0.01) |  |  | $ | 0.68 |  |  | $ | 0.91 |  |  | $ | 0.94 |  |  | $ | 0.78 |  |  | $ | 1.32 |  |  | $ | 1.16 |
(Loss) earnings per weighted average common share, diluted | $ | (2.78) |  |  | $ | (0.01) |  |  | $ | 0.67 |  |  | $ | 0.91 |  |  | $ | 0.94 |  |  | $ | 0.78 |  |  | $ | 1.32 |  |  | $ | 1.16 |
Weighted average common shares outstanding, basic | 30,185,609 |  |  | 30,068,173 |  |  | 29,925,557 |  |  | 29,910,218 |  |  | 30,454,766 |  |  | 31,109,267 |  |  | 31,819,631 |  |  | 32,084,464 |
Weighted average common shares outstanding, diluted | 30,185,609 |  |  | 30,068,173 |  |  | 29,966,962 |  |  | 29,944,692 |  |  | 30,505,468 |  |  | 31,180,346 |  |  | 31,898,619 |  |  | 32,155,678 |
Actual shares outstanding at period end | 30,180,482 |  |  | 30,185,732 |  |  | 29,925,612 |  |  | 29,917,982 |  |  | 29,912,082 |  |  | 31,111,647 |  |  | 31,346,903 |  |  | 32,082,321 |
Book value per common share at period end | $ | 38.75 |  |  | $ | 41.72 |  |  | $ | 42.58 |  |  | $ | 40.64 |  |  | $ | 40.78 |  |  | $ | 39.92 |  |  | $ | 39.18 |  |  | $ | 38.02 |
Tangible book value per common share at period end (1) | $ | 38.74 |  |  | $ | 38.26 |  |  | $ | 39.08 |  |  | $ | 37.12 |  |  | $ | 37.29 |  |  | $ | 36.57 |  |  | $ | 35.86 |  |  | $ | 34.77 |
Dividend per common share | $ | 0.45 |  |  | $ | 0.45 |  |  | $ | 0.45 |  |  | $ | 0.45 |  |  | $ | 0.45 |  |  | $ | 0.45 |  |  | $ | 0.45 |  |  | $ | 0.45 |
Performance Ratios (annualized): |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Return on average assets | (2.73) | % |  | (0.01) | % |  | 0.65 | % |  | 0.91 | % |  | 0.96 | % |  | 0.86 | % |  | 1.49 | % |  | 1.29 | %
Return on average common equity | (26.67) | % |  | (0.11) | % |  | 6.48 | % |  | 8.80 | % |  | 9.24 | % |  | 7.92 | % |  | 13.57 | % |  | 11.64 | %
Return on average tangible common equity (1) | (28.96) | % |  | (0.11) | % |  | 7.08 | % |  | 9.61 | % |  | 10.08 | % |  | 8.65 | % |  | 14.82 | % |  | 12.67 | %
Net interest margin | 2.40 | % |  | 2.43 | % |  | 2.45 | % |  | 2.43 | % |  | 2.49 | % |  | 2.77 | % |  | 3.14 | % |  | 3.02 | %
Efficiency ratio (2) | 191.0 | % |  | 51.1 | % |  | 48.9 | % |  | 48.8 | % |  | 47.2 | % |  | 51.6 | % |  | 42.8 | % |  | 40.6 | %
Other Ratios: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Allowance for credit losses to total loans (3) | 1.33 | % |  | 1.25 | % |  | 1.08 | % |  | 1.05 | % |  | 1.00 | % |  | 1.01 | % |  | 0.97 | % |  | 1.04 | %
Allowance for credit losses to total nonperforming loans | 110 | % |  | 109 | % |  | 131 | % |  | 119 | % |  | 268 | % |  | 1,160 | % |  | 1,151 | % |  | 997 | %
Nonperforming assets to total assets | 0.88 | % |  | 0.79 | % |  | 0.57 | % |  | 0.64 | % |  | 0.28 | % |  | 0.08 | % |  | 0.08 | % |  | 0.09 | %
Net charge-offs (recoveries) (annualized) to average total loans (3) | 0.11 | % |  | 1.07 | % |  | 0.60 | % |  | 0.02 | % |  | 0.29 | % |  | 0.05 | % |  | 0.05 | % |  | — | %
Tier 1 capital (to average assets) | 10.58 | % |  | 10.26 | % |  | 10.73 | % |  | 10.96 | % |  | 10.84 | % |  | 11.42 | % |  | 11.63 | % |  | 11.55 | %
Total capital (to risk weighted assets) | 15.07 | % |  | 14.87 | % |  | 14.79 | % |  | 14.54 | % |  | 14.51 | % |  | 14.74 | % |  | 14.94 | % |  | 15.60 | %
Common equity tier 1 capital (to risk weighted assets) | 13.92 | % |  | 13.80 | % |  | 13.90 | % |  | 13.68 | % |  | 13.55 | % |  | 13.75 | % |  | 14.03 | % |  | 14.64 | %
Tangible common equity ratio (1) | 10.35 | % |  | 10.03 | % |  | 10.12 | % |  | 10.04 | % |  | 10.21 | % |  | 10.36 | % |  | 10.18 | % |  | 10.52 | %
Average Balances (in thousands): |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Total assets | $ | 12,361,500 |  |  | $ | 12,784,470 |  |  | $ | 12,283,303 |  |  | $ | 11,942,905 |  |  | $ | 11,960,111 |  |  | $ | 11,426,056 |  |  | $ | 11,255,956 |  |  | $ | 11,431,110 |
Total earning assets | $ | 11,953,446 |  |  | $ | 12,365,497 |  |  | $ | 11,837,722 |  |  | $ | 11,532,186 |  |  | $ | 11,546,050 |  |  | $ | 11,004,817 |  |  | $ | 10,829,703 |  |  | $ | 11,030,670 |
Total loans (3) | $ | 8,003,206 |  |  | $ | 7,988,941 |  |  | $ | 7,963,074 |  |  | $ | 7,795,144 |  |  | $ | 7,790,555 |  |  | $ | 7,712,023 |  |  | $ | 7,379,198 |  |  | $ | 7,282,589 |
Total deposits | $ | 9,225,266 |  |  | $ | 9,501,661 |  |  | $ | 9,471,369 |  |  | $ | 8,946,641 |  |  | $ | 8,514,938 |  |  | $ | 8,734,125 |  |  | $ | 9,524,139 |  |  | $ | 9,907,497 |
Total borrowings | $ | 1,721,283 |  |  | $ | 1,832,947 |  |  | $ | 1,401,917 |  |  | $ | 1,646,179 |  |  | $ | 2,102,507 |  |  | $ | 1,359,463 |  |  | $ | 411,060 |  |  | $ | 158,001 |
Total shareholders' equity | $ | 1,263,627 |  |  | $ | 1,289,656 |  |  | $ | 1,238,763 |  |  | $ | 1,235,162 |  |  | $ | 1,245,647 |  |  | $ | 1,240,978 |  |  | $ | 1,233,705 |  |  | $ | 1,271,753 |

(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 to Non-GAAP Financial Measures (unaudited)
(dollars in thousands, except per share data)
| June 30, |  | March 31, |  | June 30,
| 2024 |  | 2024 |  | 2023
Tangible common equity |  |  |  |  |
Common shareholders' equity | $ | 1,169,459 |  |  | $ | 1,259,413 |  |  | $ | 1,219,766 |
Less: Intangible assets | (129) |  |  | (104,611) |  |  | (104,220) |
Tangible common equity | $ | 1,169,330 |  |  | $ | 1,154,802 |  |  | $ | 1,115,546 |
Tangible common equity ratio |  |  |  |  |
Total assets | $ | 11,302,023 |  |  | $ | 11,612,648 |  |  | $ | 11,034,741 |
Less: Intangible assets | (129) |  |  | (104,611) |  |  | (104,220) |
Tangible assets | $ | 11,301,894 |  |  | $ | 11,508,037 |  |  | $ | 10,930,521 |
Tangible common equity ratio | 10.35 | % |  | 10.03 | % |  | 10.21 | %
Per share calculations |  |  |  |  |
Book value per common share | $ | 38.75 |  |  | $ | 41.72 |  |  | $ | 40.78 |
Less: Intangible book value per common share | (0.01) |  |  | (3.46) |  |  | (3.49) |
Tangible book value per common share | $ | 38.74 |  |  | $ | 38.26 |  |  | $ | 37.29 |
Shares outstanding at period end | 30,180,482 |  |  | 30,185,732 |  |  | 29,912,082 |

12

|  | Three Months Ended
|  | June 30, |  | March 31, |  | June 30,
|  | 2024 |  | 2024 |  | 2023
Average tangible common equity |  |  |  |  |  |
Average common shareholders' equity |  | $ | 1,263,627 |  |  | $ | 1,289,656 |  |  | $ | 1,245,647 |
Less: Average intangible assets |  | (99,827) |  |  | (104,718) |  |  | (104,224) |
Average tangible common equity |  | $ | 1,163,800 |  |  | $ | 1,184,938 |  |  | $ | 1,141,423 |
Return on average tangible common equity |  |  |  |  |  |
Net (loss) income |  | $ | (83,802) |  |  | $ | (338) |  |  | $ | 28,692 |
Return on average tangible common equity |  | (28.96) | % |  | (0.11) | % |  | 10.08 | %
Net (loss) income |  | $ | (83,802) |  |  | $ | (338) |  |  | $ | 28,692 |
Add back of goodwill impairment |  | 104,168 |  |  | — |  |  | — |
Operating net (loss) income (Non-GAAP) |  | $ | 20,366 |  |  | $ | (338) |  |  | $ | 28,692 |
Operating Return on average tangible common equity (Non-GAAP) |  | 7.04 | % |  | (0.11) | % |  | 10.08 | %
Efficiency ratio |  |  |  |  |  |
Net interest income |  | $ | 71,353 |  |  | $ | 74,698 |  |  | $ | 71,811 |
Noninterest income |  | 5,332 |  |  | 3,589 |  |  | 8,595 |
Operating revenue |  | $ | 76,685 |  |  | $ | 78,287 |  |  | $ | 80,406 |
Noninterest expense |  | $ | 146,491 |  |  | $ | 39,997 |  |  | $ | 37,978 |
Add back of goodwill impairment |  | (104,168) |  |  | — |  |  | — |
Operating Noninterest expense (Non-GAAP) |  | 42,323 |  |  | 39,997 |  |  | 37,978 |
Efficiency ratio |  | 191.03 | % |  | 51.09 | % |  | 47.23 | %
Operating Efficiency ratio (Non-GAAP) |  | 55.19 | % |  | 51.09 | % |  | 47.23 | %
Pre-provision net revenue |  |  |  |  |  |
Net interest income |  | $ | 71,353 |  |  | $ | 74,698 |  |  | $ | 71,811 |
Noninterest income |  | 5,332 |  |  | 3,589 |  |  | 8,595 |
Less: Noninterest expense |  | (146,491) |  |  | (39,997) |  |  | (37,978) |
Pre-provision net revenue |  | $ | (69,806) |  |  | $ | 38,290 |  |  | $ | 42,428 |
Pre-provision net revenue |  | $ | (69,806) |  |  | $ | 38,290 |  |  | $ | 42,428 |
Add back of goodwill impairment |  | $ | 104,168 |  |  | $ | — |  |  | $ | — |
Operating Pre-provision net revenue (Non-GAAP) |  | $ | 34,362 |  |  | $ | 38,290 |  |  | $ | 42,428 |

Tangible common equity, tangible common equity to tangible assets (the "tangible common equity ratio"), tangible book value per common share, average tangible common equity, annualized return on average tangible common equity, and the operating annualized 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, or tangible common 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 calculates the operating annualized return on average
13

tangible common equity ratio by dividing operating net income available to common shareholders, which adds back the goodwill impairment, 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 the significant impact of the goodwill impairment is a one-time event that obscures the operating performance of the company. Further related to other measures, 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 efficiency ratio is a non-GAAP measure calculated by dividing GAAP noninterest expense by the sum of GAAP net interest income and GAAP noninterest income. The efficiency ratio measures a bank's overhead as a percentage of its revenue. The Company believes that reporting the non-GAAP efficiency ratio more closely measures its effectiveness of controlling operational activities. Further, the operating efficiency ratio is measured by dividing non-GAAP noninterest expense, which excludes the goodwill impairment, by the sum of GAAP net interest income and GAAP noninterest income. The Company considers this information important to shareholders as the significant impact of the goodwill impairment is a one-time event that obscures the operating performance of the company.
Pre-provision net revenue is a non-GAAP financial measure calculated by subtracting noninterest expenses from the sum of net interest income and noninterest income. The Company considers this information important to shareholders because it illustrates revenue excluding the impact of provisions and reversals to the allowance for credit losses on loans. Operating pre-provision net revenue is a non-GAAP financial measure calculated by subtracting noninterest expenses with the impact of the goodwill impairment added back from the sum of net interest income and noninterest income. The Company considers this information important to shareholders as the significant impact of the goodwill impairment is a one-time event that obscures the operating performance of the company.

|  | June 30, |  | March 31, |  | June 30,
|  | 2024 |  | 2024 |  | 2023
Net (loss) income |  | $ | (83,802) |  |  | $ | (338) |  |  | $ | 28,692 |
Add back of goodwill impairment |  | 104,168 |  |  | — |  |  | — |
Operating Net (loss) income (Non-GAAP) |  | $ | 20,366 |  |  | $ | (338) |  |  | $ | 28,692 |
(Loss) earnings per share (diluted)6 |  | $ | (2.78) |  |  | $ | (0.01) |  |  | $ | 0.94 |
Add back of goodwill impairment per share (diluted) |  | 3.45 |  |  | — |  |  | — |
Operating earnings (loss) per share (diluted) (Non-GAAP) |  | $ | 0.67 |  |  | $ | (0.01) |  |  | $ | 0.94 |

Operating net (loss) income and operating (loss) earnings per share (diluted) are non-GAAP financial measures derived from GAAP based amounts. The Company calculates operating net (loss) income by excluding from net (loss) income the one-time goodwill impairment of $104.2 million. During the second quarter of 2024, the Company performed an annual impairment test as a result of management's evaluation of current economic conditions, and concluded that goodwill had become impaired, which resulted in an impairment charge of $104.2 million to reduce the carrying value of the Company's goodwill to zero. The Company calculates operating earnings (loss) per share (diluted) by dividing the one-time goodwill impairment of $104.2 million by the weighted average shares outstanding (diluted) for the three and six months ended June 30, 2024. The Company considers this information important to shareholders because operating net (loss) income and operating (loss) earnings per share (diluted) provides investors insight into how Company earnings changed exclusive of the impairment charge to allow investors to better compare the Company's performance against historical periods. The table above provides a reconciliation of operating net income (loss) and operating earnings (loss) per share (diluted) to the nearest GAAP measure.
6 For periods ended with a net loss, anti-dilutive financial instruments have been excluded from the calculation of GAAP diluted EPS. Operating diluted EPS calculations include the impact of outstanding equity-based awards for all periods.
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