Eagle Bancorp, Inc. (NASDAQ:EGBN) Q2 2024 Earnings Conference Call July 25, 2024 10:00 AM ET

Company Participants

Eric Newell - Chief Financial Officer
Susan Riel - President and Chief Executive Officer
Jan Williams - Chief Credit Officer

Conference Call Participants

Catherine Mealor - KBW
Christopher Marinac - Janney Montgomery Scott

Operator

Good day, and thank you for standing by, and welcome to Eagle Bancorp, Inc. Second Quarter 2024 Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there'll be a question-and-answer session. [Operator Instructions] Please be advised that today's conference is being recorded.

I would now like to hand the conference over to your speaker today, Eric Newell, Chief Financial Officer of Eagle Bancorp, Inc. Please go ahead.

Eric Newell

Good morning. This is Eric Newell, Chief Financial Officer of Eagle Bancorp. Before we begin the presentation, I would like to remind everyone that some of the comments made during this call are forward-looking statements. We cannot make any promises about future performance and caution you not to place undue reliance on these forward-looking statements.

Our Form 10-K for the 2023 fiscal year and current reports on Form 8-K, including the earnings presentation slides, identify risk factors that could cause the company's actual results to differ materially from those projected in any forward-looking statements made this morning, which speaks only as of today. Eagle Bancorp does not undertake to update any forward-looking statements as a result of new information or future events or developments unless required by law.

This morning's commentary will include non-GAAP financial information. The earnings release, which is posted in the Investor Relations section of our website and filed with the SEC, contains reconciliations of this information to the most directly comparable GAAP information. Our periodic reports are available from the company online, at our website, or on the SEC's website.

With me today is our President and CEO, Susan Riel; and our Chief Credit Officer, Jan Williams.

I would now like to turn it over to Susan.

Susan Riel

Thank you, Eric. Good morning, everyone. Before discussing our progress in continuing to execute our strategic objectives, I want to address our second-quarter results announced last night. The quarter's results were affected by a goodwill valuation, which Eric will elaborate on. It's important to note, as you should know, that this impairment does not impact our cash, liquidity, regulatory, or tangible capital ratios. It is a non-operating item that has been fully removed from our balance sheet, ensuring that any goodwill valuation risk will not affect our future results. That said, we are pleased to report that operating earnings in the second quarter have significantly improved from the first quarter. This improvement is largely driven by a lower provision for credit losses as we continue to prudently build reserves in response to uncertain market and economic conditions.