Eagle Bancorp, Inc.

Good day, and thank you for standing by. Welcome to the Eagle Bank Corp fourth quarter and year-end 2022 earnings conference call. At this time, all participants on a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you will need to press star 11 on your telephone. You will then hear an automated message advising your hand is raised. Please be advised that today's conference call is being recorded. I would like to turn the conference over to your speaker for today, Charles Levinson, Chief Financial Officer. Please go ahead.

Thank you so much. Good morning. This is Charles Levinson, 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 may be considered forward-looking statements. While our loan growth and performance over this past quarter have been positive, we cannot make any promises about future performance, and it is our policy not to establish with the markets any formal guidance with respect to our earnings. None of the forward-looking statements made during this call should be interpreted as our providing formal guidance. Our Form 10-K for the 2021 fiscal year and current reports on Form 8K identify certain risk factors that could cause the company's actual results to differ materially from those projected in any forward-looking statements made this morning. 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. This 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. This morning, Susan Reel, the President and CEO of Eagle Bank Corp., will start us off with a high-level overview. Then Jan Williams, our Chief Credit Officer, will discuss her thoughts on the local economy, loans, reserves, and credit quality matters. Then I'll return to discuss our financials in more detail. At the end, all three of us will be available to take questions. I would now like to turn it over to our President and CEO, Susan Reel.

Thank you, Charles. Good morning, everyone. I'm pleased to report that despite facing economic headwinds such as higher interest rates, inflation, and the threat of recession, the bank ended the year with strong results. We were able to navigate these challenging conditions through our consistent focus on delivering value to our customers and effective cost management strategies. In the fourth quarter, we had our best quarter of loan growth for the year, and credit quality metrics remained very strong. Loans increased by 4.5% from the prior quarter end. This was the fifth consecutive quarterly increase. At the same time, NPAs were eight basis points on assets at quarter end, and we had a net charge-off of less than $1 million. Credit risk management has been a constant strength since our founding, and it will continue to be a focus going forward. Additionally, our commercial lending teams continue to find new business opportunities to replenish our loan pipeline. And in addition to our pipeline, unfunded commitments were $2.6 billion at quarter end, up $120 million from the prior quarter end. Part of our success is our ability to understand, underwrite, and close on significant commercial projects. With total risk-based capital of 14.99% and equity of more than $1.2 billion, we are uniquely well positioned to take advantage of opportunities in our market. Our clients know that we are more committed to the business community in the Washington DC market than larger banks based outside the area. This commitment also extends to the people in the communities in which we operate. We regularly provide much needed financing for affordable housing projects. This past quarter, there were two such projects. In October, we announced financing for a $42 million project with Howard University to bring a mixed-use development to the Shaw neighborhood of Washington, D.C. And in November, we announced financing for a $50 million affordable rent property with 259 units in Reston, Virginia. And to our shareholders, we remain committed to creating value. This past quarter, our board declared a dividend of 45 cents per share, which equates to an annualized yield of 4.11% based on last night's closing stock price. of $43.78 per share. We were also active in stock repurchases, buying back almost 740,000 shares at an average price of $44.82 per share. In aggregate, the total repurchase amount was $33.1 million. Now, Jan Williams, our Chief Credit Officer, will give us some insight into the market loans, and credit quality.