Core Insights - Eagle Bancorp, Inc. has appointed Kris Pederson and Ted Wilm as independent members of its Board of Directors, expanding the board to 10 directors, 9 of whom are independent [1] Group 1: Appointments and Experience - Kris Pederson has extensive experience managing businesses and global strategies at EY, IBM, and PwC, and holds various board positions including with SOBR Safe and the NFL Alumni Association [2] - Ted Wilm has a 38-year career at PwC, serving major clients in asset management and financial services, and has held leadership roles in California Bancorp and corporate director organizations [3][4] Group 2: Strategic Vision - Pederson expressed enthusiasm about contributing to EagleBank's growth and long-term success, emphasizing the bank's positive impact on the DC region's economic progress [3] - Wilm aims to leverage his experience in financial risk management to advance strategic initiatives at EagleBank, focusing on new opportunities and reinforcing the bank's strengths [4] Group 3: Company Overview - Eagle Bancorp, Inc. is the holding company for EagleBank, which began operations in 1998 and is headquartered in Bethesda, Maryland, offering full-service commercial banking through 12 offices in the DC metropolitan area [5]

```markdown [PART I. FINANCIAL INFORMATION](index=3&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) [Item 1. Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) This section presents the unaudited consolidated financial statements of Eagle Bancorp, Inc. for the periods ended June 30, 2025, and December 31, 2024, including balance sheets, statements of operations, comprehensive income, changes in shareholders' equity, and cash flows, along with detailed notes explaining significant accounting policies, specific financial instrument details, and other relevant disclosures [Consolidated Balance Sheets](index=3&type=section&id=Consolidated%20Balance%20Sheets%20as%20of%20June%2030%2C%202025%20and%20December%2031%2C%202024%20(unaudited)) Consolidated Balance Sheet Highlights (in thousands) | Metric | June 30, 2025 | December 31, 2024 | Change ($) | Change (%) | | :----------------------------------- | :------------ | :---------------- | :--------- | :--------- | | Total Assets | $10,601,331 | $11,129,508 | $(528,177) | -4.75% | | Cash and due from banks | $14,005 | $11,882 | $2,123 | 17.87% | | Interest-bearing deposits with banks and other short-term investments | $239,237 | $619,017 | $(379,780) | -61.35% | | Loans held for investment, net of allowance | $7,537,868 | $7,820,498 | $(282,630) | -3.61% | | Total Liabilities | $9,416,264 | $9,903,447 | $(487,183) | -4.92% | | Total Deposits | $9,119,607 | $9,131,078 | $(11,471) | -0.13% | | Total Shareholders' Equity | $1,185,067 | $1,226,061 | $(40,994) | -3.34% | [Consolidated Statements of Operations](index=4&type=section&id=Consolidated%20Statements%20of%20Operations%20for%20the%20Three%20and%20Six%20Months%20Ended%20June%2030%2C%202025%20and%202024) Consolidated Statements of Operations (Three Months Ended June 30, in thousands) | Metric | 2025 | 2024 | Change ($) | Change (%) | | :----------------------------------- | :----------- | :----------- | :--------- | :--------- | | Total interest income | $151,443 | $169,731 | $(18,288) | -10.77% | | Total interest expense | $83,667 | $98,378 | $(14,711) | -14.95% | | Net Interest Income | $67,776 | $71,353 | $(3,577) | -5.01% | | Provision for Credit Losses | $138,159 | $8,959 | $129,200 | 1442.13% | | Total noninterest income | $6,414 | $5,332 | $1,082 | 20.29% | | Total noninterest expense | $43,470 | $146,491 | $(103,021) | -70.32% | | Net Income (Loss) | $(69,775) | $(83,802) | $14,027 | -16.74% | | Basic Earnings (Loss) Per Common Share | $(2.30) | $(2.78) | $0.48 | -17.27% | Consolidated Statements of Operations (Six Months Ended June 30, in thousands) | Metric | 2025 | 2024 | Change ($) | Change (%) | | :----------------------------------- | :----------- | :----------- | :--------- | :--------- | | Total interest income | $305,321 | $345,333 | $(40,012) | -11.59% | | Total interest expense | $171,896 | $199,282 | $(27,386) | -13.74% | | Net Interest Income | $133,425 | $146,051 | $(12,626) | -8.64% | | Provision for Credit Losses | $164,414 | $44,134 | $120,280 | 272.53% | | Total noninterest income | $14,621 | $8,921 | $5,700 | 63.90% | | Total noninterest expense | $88,921 | $186,488 | $(97,567) | -52.32% | | Net Income (Loss) | $(68,100) | $(84,140) | $16,040 | -19.06% | | Basic Earnings (Loss) Per Common Share | $(2.25) | $(2.79) | $0.54 | -19.35% | [Consolidated Statements of Comprehensive Income (Loss)](index=5&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Income%20(Loss)%20for%20the%20Three%20and%20Six%20Months%20Ended%20June%2030%2C%202025%20and%202024) Consolidated Statements of Comprehensive Income (Loss) (Three Months Ended June 30, in thousands) | Metric | 2025 | 2024 | Change ($) | Change (%) | | :----------------------------------- | :----------- | :----------- | :--------- | :--------- | | Net Income (Loss) | $(69,775) | $(83,802) | $14,027 | -16.74% | | Other comprehensive income (loss) | $12,574 | $4,925 | $7,649 | 155.32% | | Comprehensive Income (Loss) | $(57,201) | $(78,877) | $21,676 | -27.48% | Consolidated Statements of Comprehensive Income (Loss) (Six Months Ended June 30, in thousands) | Metric | 2025 | 2024 | Change ($) | Change (%) | | :----------------------------------- | :----------- | :----------- | :--------- | :--------- | | Net Income (Loss) | $(68,100) | $(84,140) | $16,040 | -19.06% | | Other comprehensive income (loss) | $33,108 | $1,514 | $31,594 | 2086.79% | | Comprehensive Income (Loss) | $(34,992) | $(82,626) | $47,634 | -57.65% | [Consolidated Statements of Changes in Shareholders' Equity](index=6&type=section&id=Consolidated%20Statements%20of%20Changes%20in%20Shareholders'%20Equity%20for%20the%20Three%20and%20Six%20Months%20Ended%20June%2030%2C%202025%20and%202024) Consolidated Statements of Changes in Shareholders' Equity (Six Months Ended June 30, in thousands) | Metric | As of June 30, 2025 | As of January 1, 2025 | Change ($) | Change (%) | | :----------------------------------- | :-------------------- | :-------------------- | :--------- | :--------- | | Total Shareholders' Equity | $1,185,067 | $1,226,061 | $(40,994) | -3.34% | | Net Income (Loss) | $(68,100) | N/A | N/A | N/A | | Other comprehensive income, net of tax | $33,108 | N/A | N/A | N/A | | Stock-based compensation expense | $3,797 | N/A | N/A | N/A | | Cash dividends declared | $(9,999) | N/A | N/A | N/A | [Consolidated Statements of Cash Flows](index=8&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows%20for%20the%20Six%20Months%20Ended%20June%2030%2C%202025%20and%202024) Consolidated Statements of Cash Flows (Six Months Ended June 30, in thousands) | Metric | 2025 | 2024 | Change ($) | Change (%) | | :----------------------------------- | :----------- | :----------- | :--------- | :--------- | | Net cash provided by operating activities | $14,564 | $58,093 | $(43,529) | -74.93% | | Net cash (used in) provided by investing activities | $80,274 | $30,944 | $49,330 | 159.42% | | Net cash provided by (used in) financing activities | $(470,985) | $(268,888) | $(202,097) | 75.17% | | Net Increase (Decrease) in Cash and Cash Equivalents | $(376,147) | $(179,851) | $(196,296) | 109.15% | | Cash and Cash Equivalents at End of Period | $257,333 | $542,833 | $(285,500) | -52.59% | [Notes to Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) [Note 1 – Summary of Significant Accounting Policies](index=9&type=section&id=Note%201%20%E2%80%93%20Summary%20of%20Significant%20Accounting%20Policies) - The company conducts full-service community banking primarily in Northern Virginia, Suburban Maryland, and Washington, D.C., offering real estate, commercial, consumer lending, and traditional deposit services[26](index=26&type=chunk) - Investment securities are classified as available-for-sale (AFS) or held-to-maturity (HTM) based on management's intent and ability to hold them. AFS securities are carried at fair value, while HTM are at amortized cost[31](index=31&type=chunk)[32](index=32&type=chunk) - The Allowance for Credit Losses (ACL) for loans is a material estimate of expected credit losses, measured collectively for similar risk characteristics or individually for nonaccrual loans, using a PD/LGD cash flow method with economic variables like unemployment, CRE Price Index, House Price Index, and GDP[40](index=40&type=chunk)[41](index=41&type=chunk)[52](index=52&type=chunk) [Note 2 – Cash and Due from Banks](index=15&type=section&id=Note%202%20%E2%80%93%20Cash%20and%20Due%20from%20Banks) - The Bank maintained average daily balances of **$1.4 billion** at the Federal Reserve Bank of Richmond for the six months ended June 30, 2025, compared to **$1.7 billion** for the same period in 2024[74](index=74&type=chunk) [Note 3 – Investment Securities](index=15&type=section&id=Note%203%20%E2%80%93%20Investment%20Securities) Investment Securities (in thousands) | Metric | June 30, 2025 | December 31, 2024 | Change ($) | Change (%) | | :----------------------------------- | :------------ | :---------------- | :--------- | :--------- | | AFS Securities (Amortized Cost) | $1,271,179 | $1,408,935 | $(137,756) | -9.78% | | AFS Securities (Fair Value) | $1,170,489 | $1,267,404 | $(96,915) | -7.65% | | HTM Securities (Amortized Cost) | $898,084 | $939,953 | $(41,869) | -4.45% | | HTM Securities (Fair Value) | $799,136 | $820,382 | $(21,246) | -2.59% | | Total AFS Unrealized Losses | $(100,742) | $(141,545) | $40,803 | -28.83% | | Federal Reserve and FHLB stock | $30,613 | $51,763 | $(21,150) | -40.86% | - Unrealized losses on AFS securities as of June 30, 2025, were primarily due to changes in market interest rates and interest spread relationships, considered temporary, with recovery expected as securities approach maturity[83](index=83&type=chunk) [Note 4 – Loans and Allowance for Credit Losses](index=19&type=section&id=Note%204%20%E2%80%93%20Loans%20and%20Allowance%20for%20Credit%20Losses) Loans and Allowance for Credit Losses (in thousands) | Metric | June 30, 2025 | December 31, 2024 | Change ($) | Change (%) | | :----------------------------------- | :------------ | :---------------- | :--------- | :--------- | | Total loans held for investment | $7,721,664 | $7,934,888 | $(213,224) | -2.69% | | Allowance for credit losses | $(183,796) | $(114,390) | $(69,406) | 60.67% | | Net loans held for investment | $7,537,868 | $7,820,498 | $(282,630) | -3.61% | | Nonaccrual Loans | $226,420 | $208,706 | $17,714 | 8.49% | | Total Nonperforming Assets | $228,879 | $211,449 | $17,430 | 8.24% | ACL Activity (Six Months Ended June 30, in thousands) | Metric | 2025 | 2024 | Change ($) | Change (%) | | :----------------------------------- | :----------- | :----------- | :--------- | :--------- | | Balance at beginning of period | $114,390 | $85,940 | $28,450 | 33.11% | | Total charge-offs | $(95,698) | $(24,115) | $(71,583) | 296.85% | | Total recoveries | $591 | $398 | $193 | 48.49% | | Net charge-offs | $(95,107) | $(23,717) | $(71,390) | 300.99% | | Provision for credit losses - loans | $164,513 | $44,078 | $120,435 | 273.23% | | Balance at end of period | $183,796 | $106,301 | $77,495 | 72.90% | - Charge-offs in the first half of 2025 were primarily driven by elevated losses in the office and land loan portfolios, including a data center loan with underlying office exposure, as well as assisted senior living and life sciences office properties, due to continued market deterioration and updated collateral valuations[241](index=241&type=chunk) [Note 5 – Leases](index=30&type=section&id=Note%205%20%E2%80%93%20Leases) Operating Lease Information (in thousands) | Metric | June 30, 2025 | December 31, 2024 | Change ($) | Change (%) | | :----------------------------------- | :------------ | :---------------- | :--------- | :--------- | | Right-of-use assets - operating leases | $31,202 | $18,494 | $12,708 | 68.72% | | Operating lease liabilities | $37,297 | $23,815 | $13,482 | 56.61% | | Weighted average lease term (years) | 9.13 | 6.78 | 2.35 | 34.66% | | Weighted average discount rate | 3.58% | 3.03% | 0.55% | 18.15% | - On January 1, 2025, the Company commenced a new lease for its future headquarters at 7500 Old Georgetown Road in Bethesda, MD, expiring on July 31, 2037[136](index=136&type=chunk) [Note 6 – Derivatives and Hedging Activities](index=31&type=section&id=Note%206%20%E2%80%93%20Derivatives%20and%20Hedging%20Activities) Derivative Instruments (in thousands) | Derivative Type | June 30, 2025 Fair Value (Asset) | December 31, 2024 Fair Value (Asset) | Change ($) | Change (%) | | :----------------------------------- | :------------------------------- | :----------------------------------- | :--------- | :--------- | | Derivatives designated as hedging instruments (Interest rate product) | $11 | $0 | $11 | N/A | | Derivatives not designated as hedging instruments (Interest rate product) | $27,556 | $31,592 | $(4,036) | -12.77% | | Total derivatives in an asset position | $27,567 | $31,592 | $(4,025) | -12.74% | | Derivative Type | June 30, 2025 Fair Value (Liability) | December 31, 2024 Fair Value (Liability) | Change ($) | Change (%) | | :----------------------------------- | :--------------------------------- | :------------------------------------- | :--------- | :--------- | | Derivatives not designated as hedging instruments (Interest rate product) | $24,590 | $29,110 | $(4,520) | -15.53% | - The company minimizes credit risk by entering into derivative contracts with large, stable financial institutions and monitors counterparty risk, posting **$1.7 million** cash collateral and holding **$11.9 million** on behalf of others as of June 30, 2025[147](index=147&type=chunk) [Note 7 – Deposits](index=34&type=section&id=Note%207%20%E2%80%93%20Deposits) Deposit Composition (in thousands) | Deposit Type | June 30, 2025 | December 31, 2024 | Change ($) | Change (%) | | :----------------------------------- | :------------ | :---------------- | :--------- | :--------- | | Noninterest-bearing demand | $1,532,132 | $1,544,403 | $(12,271) | -0.79% | | Interest-bearing transaction | $895,604 | $1,211,791 | $(316,187) | -26.09% | | Savings and money market | $3,267,630 | $3,599,221 | $(331,591) | -9.21% | | Time deposits | $3,424,241 | $2,775,663 | $648,578 | 23.30% | | Total Deposits | $9,119,607 | $9,131,078 | $(11,471) | -0.13% | - Total brokered deposits were **$3.5 billion** (**38%** of total deposits) as of June 30, 2025, down from **$4.0 billion** (**44%**) as of December 31, 2024[155](index=155&type=chunk) [Note 8 – Borrowings](index=35&type=section&id=Note%208%20%E2%80%93%20Borrowings) Borrowings Summary (in thousands) | Borrowing Type | June 30, 2025 | December 31, 2024 | Change ($) | Change (%) | | :----------------------------------- | :------------ | :---------------- | :--------- | :--------- | | Customer repurchase agreements | $23,442 | $33,157 | $(9,715) | -29.30% | | Other short-term borrowings (FHLB) | $50,000 | $490,000 | $(440,000) | -89.80% | | Long-term borrowings (Senior notes) | $76,264 | $76,108 | $156 | 0.20% | | Total Net Borrowings Outstanding | $149,706 | $599,265 | $(449,559) | -75.02% | | Total Available Capacity | $3,118,267 | $2,674,916 | $443,351 | 16.57% | - The company completed an exchange offer for its **10.00%** senior unsecured debt (2029 Senior Notes) on January 16, 2025, with terms identical to the original notes but without transfer restrictions and registration rights[161](index=161&type=chunk) [Note 9 – Net Income (Loss) per Common Share](index=36&type=section&id=Note%209%20%E2%80%93%20Net%20Income%20(Loss)%20per%20Common%20Share) Earnings (Loss) Per Common Share | Metric | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | Change ($) | Change (%) | | :----------------------------------- | :--------------------------- | :--------------------------- | :--------- | :--------- | | Basic Net Income (Loss) per Common Share | $(2.30) | $(2.78) | $0.48 | -17.27% | | Diluted Net Income (Loss) per Common Share | $(2.30) | $(2.78) | $0.48 | -17.27% | | Metric | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | Change ($) | Change (%) | | :----------------------------------- | :--------------------------- | :--------------------------- | :--------- | :--------- | | Basic Net Income (Loss) per Common Share | $(2.25) | $(2.79) | $0.54 | -19.35% | | Diluted Net Income (Loss) per Common Share | $(2.25) | $(2.79) | $0.54 | -19.35% | [Note 10 – Other Comprehensive Income (Loss)](index=37&type=section&id=Note%2010%20%E2%80%93%20Other%20Comprehensive%20Income%20(Loss)) Other Comprehensive Income (Loss) (in thousands) | Metric | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | Change ($) | Change (%) | | :----------------------------------- | :--------------------------- | :--------------------------- | :--------- | :--------- | | Net unrealized gain (loss) on securities available-for-sale | $10,241 | $3,629 | $6,612 | 182.20% | | Other comprehensive income (loss) | $12,574 | $4,925 | $7,649 | 155.32% | | Metric | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | Change ($) | Change (%) | | :----------------------------------- | :--------------------------- | :--------------------------- | :--------- | :--------- | | Net unrealized gain (loss) on securities available-for-sale | $29,594 | $(1,437) | $31,031 | -2159.43% | | Other comprehensive income (loss) | $33,108 | $1,514 | $31,594 | 2086.79% | Accumulated Other Comprehensive Income (Loss) (in thousands) | AOCI Component | June 30, 2025 | June 30, 2024 | Change ($) | Change (%) | | :----------------------------------- | :------------ | :------------ | :--------- | :--------- | | Balance at end of period (Total AOCI) | $(108,365) | $(160,843) | $52,478 | -32.63% | [Note 11 – Fair Value Measurements](index=39&type=section&id=Note%2011%20%E2%80%93%20Fair%20Value%20Measurements) Recurring Fair Value Assets (Level 2, in thousands) | Metric | June 30, 2025 | December 31, 2024 | Change ($) | Change (%) | | :----------------------------------- | :------------ | :---------------- | :--------- | :--------- | | Investment securities available-for-sale | $1,170,489 | $1,267,404 | $(96,915) | -7.65% | | Loans held for sale | $37,576 | $0 | $37,576 | N/A | | Interest rate product (asset) | $27,567 | $31,592 | $(4,025) | -12.74% | | Total recurring assets | $1,235,632 | $1,298,996 | $(63,364) | -4.88% | Nonrecurring Fair Value Assets (Level 3, in thousands) | Metric | June 30, 2025 | December 31, 2024 | Change ($) | Change (%) | | :----------------------------------- | :------------ | :---------------- | :--------- | :--------- | | Individually assessed loans | $198,605 | $192,194 | $6,411 | 3.34% | | Other real estate owned | $2,459 | $2,743 | $(284) | -10.35% | | Total nonrecurring assets | $200,914 | $194,937 | $5,977 | 3.07% | [Note 12 – Segment Reporting](index=44&type=section&id=Note%2012%20%E2%80%93%20Segment%20Reporting) - The Company has one reporting unit, one operating segment, and consequently, a single reportable segment[191](index=191&type=chunk) - The Chief Executive Officer (CODM) evaluates financial performance by assessing revenue streams, significant expenses, and budget-to-actual results, with profitability determined only at the entity level[191](index=191&type=chunk) [Note 13 – Legal Contingencies](index=44&type=section&id=Note%2013%20%E2%80%93%20Legal%20Contingencies) - The company is cooperating with an ongoing investigation by the U.S. Attorney's Office for the Middle District of Pennsylvania regarding anti-money laundering controls (2011-2017) and a former customer's bank fraud[193](index=193&type=chunk) - Due to inherent uncertainty, the company is unable to reasonably estimate possible losses from the ongoing investigation[193](index=193&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=45&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section provides management's perspective on the company's financial condition, results of operations, liquidity, and capital resources, detailing its business model, critical accounting policies, and a comprehensive analysis of financial performance, balance sheet changes, commitments, liquidity management, and capital adequacy, including disclosures on market risk and the use of non-GAAP financial measures [General](index=45&type=section&id=General) - The Company provides general commercial and consumer banking services through EagleBank, its wholly owned banking subsidiary, primarily in Northern Virginia, Suburban Maryland, and Washington, D.C.[199](index=199&type=chunk)[200](index=200&type=chunk) - The Bank emphasizes providing commercial banking services to sole proprietors, small and medium-sized businesses, non-profit organizations, associations, and investors, and is active in originating SBA loans[201](index=201&type=chunk) - The Company sold the remaining servicing rights to all multifamily FHA loans during 2024 but maintains licenses and is evaluating options for future activity in this business[203](index=203&type=chunk) [Critical Accounting Policies and Estimates](index=46&type=section&id=Critical%20Accounting%20Policies%20and%20Estimates) - The Allowance for Credit Losses (ACL) and Reserve for Unfunded Commitments (RUC) are material estimates requiring significant judgment regarding the amount and timing of expected future cash flows, historical loss rates, and quantitative/qualitative evaluations of economic factors[208](index=208&type=chunk) - The ACL on loans is estimated using a quantitative model (PD/LGD cash flow with EAD) incorporating four economic variables: national unemployment, Commercial Real Estate (CRE) Price Index, House Price Index, and Gross Domestic Product (GDP), weighted across baseline, upside, and downside scenarios[209](index=209&type=chunk)[210](index=210&type=chunk) - Loans with evidence of credit deterioration are individually assessed, and the ACL includes a qualitative adjustment for inherent risks not reflected in historical quantitative analysis[211](index=211&type=chunk)[213](index=213&type=chunk) [Results of Operations](index=47&type=section&id=Results%20of%20Operations) Summary of Consolidated Statements of Operations (Six Months Ended June 30, in thousands) | Metric | 2025 | 2024 | Change ($) | Change (%) | | :----------------------------------- | :----------- | :----------- | :--------- | :--------- | | Net Interest Income | $133,425 | $146,051 | $(12,626) | -8.64% | | Provision for Credit Losses | $164,414 | $44,134 | $120,280 | 272.53% | | Noninterest income | $14,621 | $8,921 | $5,700 | 63.90% | | Noninterest expense | $88,921 | $186,488 | $(97,567) | -52.32% | | Net Income (Loss) | $(68,100) | $(84,140) | $16,040 | -19.06% | Net Interest Margin and Cost of Funds (Six Months Ended June 30) | Metric | 2025 | 2024 | Change (bps) | | :----------------------------------- | :----------- | :----------- | :----------- | | Net interest margin | 2.33% | 2.42% | -9 bps | | Cost of funds (interest-bearing liabilities) | 3.26% | 3.60% | -34 bps | | Yield on interest-earning assets | 5.34% | 5.71% | -37 bps | - The efficiency ratio improved to **60.1%** for the six months ended June 30, 2025, from **120.3%** for the same period in 2024, primarily due to the absence of a **$104.2 million** goodwill impairment recognized in Q2 2024[216](index=216&type=chunk)[249](index=249&type=chunk) [Balance Sheet Analysis](index=54&type=section&id=Balance%20Sheet%20Analysis) Balance Sheet Overview (in thousands) | Metric | June 30, 2025 | December 31, 2024 | Change ($) | Change (%) | | :----------------------------------- | :------------ | :---------------- | :--------- | :--------- | | Total Assets | $10,601,331 | $11,129,508 | $(528,177) | -4.75% | | Loans held for investment (amortized cost) | $7,721,664 | $7,934,888 | $(213,224) | -2.69% | | Investment securities (amortized cost, net of ACL) | $2,168,034 | $2,346,051 | $(178,017) | -7.59% | | Total Deposits | $9,119,607 | $9,131,078 | $(11,471) | -0.13% | | Total Borrowed Funds (excl. customer repurchase) | $126,264 | $566,108 | $(439,844) | -77.69% | | Total Shareholders' Equity | $1,185,067 | $1,226,061 | $(40,994) | -3.34% | - The Allowance for Credit Losses (ACL) for loans increased by **$69.4 million** to **$183.8 million** as of June 30, 2025, representing **2.38%** of total loans, up from **1.44%** at December 31, 2024[277](index=277&type=chunk) - Nonperforming assets increased to **$228.9 million** (**2.16%** of total assets) as of June 30, 2025, from **$211.4 million** (**1.90%** of total assets) at December 31, 2024, primarily due to additions in office and land property categories within nonperforming loans[287](index=287&type=chunk)[289](index=289&type=chunk) [Commitments and Contractual Obligations](index=63&type=section&id=Commitments%20and%20Contractual%20Obligations) Loan Commitments and Lines of Credit (in thousands) | Commitment Type | June 30, 2025 | December 31, 2024 | Change ($) | Change (%) | | :----------------------------------- | :------------ | :---------------- | :--------- | :--------- | | Unfunded loan commitments | $1,391,648 | $1,318,133 | $73,515 | 5.58% | | Unfunded lines of credit | $88,857 | $88,305 | $552 | 0.62% | | Letters of credit | $60,223 | $69,051 | $(8,828) | -12.78% | | Total | $1,540,728 | $1,475,489 | $65,239 | 4.42% | - Commitments generally have fixed expiration dates or termination clauses and may require performance milestones or collateral, especially for construction loans and asset-based lending[319](index=319&type=chunk) [Liquidity Management](index=64&type=section&id=Liquidity%20Management) Secondary Sources of Liquidity (in thousands) | Secondary Liquidity Source | In Use (June 30, 2025) | Available (June 30, 2025) | | :----------------------------------- | :--------------------- | :------------------------ | | Unsecured brokered deposits | $892,664 | $1,180,754 | | FHLB secured borrowings | $50,000 | $1,363,585 | | FRB Discount window secured borrowings | $0 | $1,754,682 | | Federal funds lines | $0 | $145,000 | | Unpledged investment securities | $0 | $270,511 | | Total | $966,106 | $4,727,479 | - The Bank's aggregate borrowing capacity as of June 30, 2025, was **$3.4 billion**, including **$1.4 billion** from FHLB and **$1.8 billion** from the Federal Reserve's Discount Window on existing pledged assets, plus **$0.3 billion** in unencumbered securities[328](index=328&type=chunk)[329](index=329&type=chunk) - The company believes it maintains sufficient primary (**$1.5 billion**) and secondary (**$4.7 billion**) liquidity sources, totaling **$6.2 billion**, to fund its operations and meet current and projected funding needs[333](index=333&type=chunk) [Capital Resources and Adequacy](index=65&type=section&id=Capital%20Resources%20and%20Adequacy) Capital Ratios (as of June 30, 2025) | Capital Ratio | Company | Bank | Minimum Required For Capital Adequacy (1) | Well Capitalized Under Prompt Corrective Action (2) | | :----------------------------------- | :------ | :----- | :---------------------------------------- | :------------------------------------ | | CET1 capital (to risk weighted assets) | 14.01% | 14.23% | 7.00% | 6.50% | | Total capital (to risk weighted assets) | 15.27% | 15.49% | 10.50% | 10.00% | | Tier 1 capital (to risk weighted assets) | 14.01% | 14.23% | 8.50% | 8.00% | | Tier 1 capital (to average assets) | 10.63% | 10.78% | 4.00% | 5.00% | - The company continues to exceed the construction, land development, and other land acquisitions regulatory concentration threshold (**115.8%** of total capital) and maintains heightened risk management procedures for its commercial real estate portfolio[336](index=336&type=chunk) - The Company announced a regular quarterly cash dividend on July 23, 2025, of **$0.165** per share, payable on August 29, 2025[342](index=342&type=chunk) [Asset/Liability Management and Quantitative and Qualitative Disclosures about Market Risk](index=67&type=section&id=Asset%2FLiability%20Management%20and%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) - The loan portfolio's repricing duration was **10 months** as of June 30, 2025, with **65.6%** of total loans being variable or adjustable rate[350](index=350&type=chunk) Interest Rate Sensitivity Analysis (as of June 30, 2025) | Change in interest rates (basis points) | Percentage change in 12-month net interest income | Percentage change in economic value of equity | | :-------------------------------------- | :------------------------------------------------ | :-------------------------------------------- | | +400 | 13.3% | (5.4)% | | +300 | 10.0% | (4.1)% | | +200 | 6.7% | (2.7)% | | +100 | 3.4% | (1.2)% | | — | — | — | | (100) | (4.0)% | 1.6% | | (200) | (7.5)% | 2.1% | | (300) | (12.6)% | 0.3% | | (400) | (17.7)% | (6.8)% | - The net unrealized loss before income tax on the AFS securities portfolio was **$100.7 million** as of June 30, 2025, representing **7.92%** of the investment portfolio's book value[357](index=357&type=chunk) [Use of Non-GAAP Financial Measures](index=70&type=section&id=Use%20of%20Non-GAAP%20Financial%20Measures) Non-GAAP Financial Measures (in thousands, except per share data) | Metric | June 30, 2025 | December 31, 2024 | Change ($) | Change (%) | | :----------------------------------- | :------------ | :---------------- | :--------- | :--------- | | Tangible common equity (Non-GAAP) | $1,185,058 | $1,226,045 | $(40,987) | -3.34% | | Tangible common equity ratio (Non-GAAP) | 11.18% | 11.02% | 0.16% | 1.45% | | Tangible book value per common share (Non-GAAP) | $39.03 | $40.59 | $(1.56) | -3.84% | [Item 3. Quantitative and Qualitative Disclosures about Market Risk](index=71&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) This section refers to the "Asset/Liability Management and Quantitative and Qualitative Disclosures about Market Risk" section within Item 2 for detailed information on market risk - Refer to Item 2, "Management's Discussion and Analysis of Financial Condition and Results of Operations," under the caption "Asset/Liability Management and Quantitative and Qualitative Disclosures about Market Risk" for disclosures about market risk[378](index=378&type=chunk) [Item 4. Controls and Procedures](index=71&type=section&id=Item%204.%20Controls%20and%20Procedures) As of June 30, 2025, the company's management, including the CEO and CFO, concluded that disclosure controls and procedures were effective in providing reasonable assurance that required information is recorded, processed, summarized, and reported timely, with no material changes in internal control over financial reporting during the second quarter of 2025 - The CEO and CFO concluded that the company's disclosure controls and procedures were effective as of June 30, 2025[379](index=379&type=chunk) - No material changes in internal control over financial reporting occurred during the second quarter of 2025[380](index=380&type=chunk) [PART II. OTHER INFORMATION](index=72&type=section&id=PART%20II.%20OTHER%20INFORMATION) [Item 1. Legal Proceedings](index=72&type=section&id=Item%201.%20Legal%20Proceedings) This section refers to Note 13 of the Notes to Consolidated Financial Statements for information on legal proceedings and contingencies - Refer to "Note 13 – Legal Contingencies" of the Notes to Consolidated Financial Statements for information on legal proceedings[383](index=383&type=chunk) [Item 1A. Risk Factors](index=72&type=section&id=Item%201A.%20Risk%20Factors) There have been no material changes to the company's risk factors from those previously disclosed in its Annual Report on Form 10-K for 2024 and Quarterly Report on Form 10-Q for Q1 2025 - No material changes to risk factors from those included in the Annual Report on 2024 Form 10-K and Quarterly Report on Form 10-Q for the quarter ended March 31, 2025[384](index=384&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=72&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) There were no unregistered sales of equity securities or use of proceeds to report for the period - None[385](index=385&type=chunk) [Item 3. Defaults Upon Senior Securities](index=72&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) There were no defaults upon senior securities to report for the period - None[386](index=386&type=chunk) [Item 4. Mine Safety Disclosures](index=72&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company - Not Applicable[387](index=387&type=chunk) [Item 5. Other Information](index=72&type=section&id=Item%205.%20Other%20Information) There is no other information to report for the period - None[388](index=388&type=chunk) [Item 6. Exhibits](index=73&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including indentures, certifications, and interactive data files - Exhibits include Indenture dated September 30, 2024, Form of 10.00% Senior Notes due 2029, Certifications of Susan G. Riel and Eric R. Newell, and Interactive data files (XBRL)[391](index=391&type=chunk) [SIGNATURES](index=74&type=section&id=SIGNATURES) The report was duly signed on August 7, 2025, by Susan G. Riel, Chair, President and CEO, and Eric R. Newell, Senior Executive Vice President and Chief Financial Officer of Eagle Bancorp, Inc - The report was signed on August 7, 2025, by Susan G. Riel (Chair, President and CEO) and Eric R. Newell (Senior Executive Vice President and CFO)[395](index=395&type=chunk) ```

Core Viewpoint - Eagle Bancorp, Inc. held its Second Quarter 2025 Earnings Call, indicating a focus on financial performance amidst an uncertain market environment [1][2]. Financial Performance - The earnings release and related financial information will include non-GAAP financial metrics, which are essential for understanding the company's performance [4]. Risk Factors - The company highlighted that its Form 10-K for fiscal year 2024 and Form 10-Q for the quarter ended March 31, 2025, outline risk factors that could lead to actual results differing from forward-looking statements [3].

Financial Data and Key Metrics Changes - The company reported a net loss of $69.8 million or $2.3 per share for the second quarter, compared to a net income of $1.7 million or $0.06 per diluted share in the prior quarter [17] - The allowance for credit losses increased to $183 million, representing coverage of total loans at 2.38%, an increase of 75 basis points from the prior quarter [11] - The Tier one leverage ratio decreased by 48 basis points to 10.63%, and the common equity Tier one ratio decreased by 60 basis points to 14.01% [18] Business Line Data and Key Metrics Changes - The provision for credit losses was $138 million, with $45.4 million related to an increase in the office overlay and $11.1 million associated with individually evaluated loans [10] - Over two-thirds of loan originations in the second quarter were C and I loans, indicating a shift towards this segment [22] - Non-interest income decreased to $6.4 million from $8.2 million in the prior quarter, primarily due to a loss from a repositioning trade [23] Market Data and Key Metrics Changes - Nonperforming loans increased to $226.4 million, a net increase of $26 million for the quarter [12] - Total criticized and classified loans increased to $875.4 million from $774.9 million, driven by new classifications in multifamily and land loans [14] - The company noted that multifamily loans showed strength due to governmental mandates, contrasting with the office portfolio's challenges [14] Company Strategy and Development Direction - The company is focusing on reducing reliance on wholesale funding and strengthening its core deposit base, with core deposits increasing by $304.1 million [21] - A strategic decision was made to manage excess cash, leading to a revision of average loan growth expectations from 2%-5% to flat [24] - The company aims to normalize provision expenses and return to a more stable credit provisioning environment by 2026 [72] Management's Comments on Operating Environment and Future Outlook - Management expressed that the current market environment is uncertain, particularly regarding the office sector, which is believed to be facing long-term structural changes [5] - The expectation is that the third quarter will show improvement compared to the second quarter, with hopes for a normalized provisioning environment in early 2026 [16] - Management emphasized the importance of maintaining a strong capital position despite the current losses, with extensive loss absorption capacity on the balance sheet [17] Other Important Information - The company declared a dividend this quarter but is evaluating a near-term reduction or suspension to preserve flexibility [26] - The company has $4.8 billion of available liquidity, maintaining more than two times coverage of uninsured deposits [18] - The company is confident in its non-interest income forecast, supported by stable contributions from BOLI and expected growth in treasury management sales [23] Q&A Session Summary Question: How does the company view the current credit provisioning cycle? - Management indicated that they believe net charge-offs in the next quarter will be similar to the current quarter, with no larger impact expected on the income statement [33][34] Question: What is the outlook for inflows to nonperforming assets? - Management believes that the degree of inflow going forward will not be as significant as in the past quarter [39] Question: Are there any regulatory restrictions related to classified assets? - Management stated they are diligently working to reduce criticized and classified loans and expect to see a decline in the total portfolio towards the end of the year [40][41] Question: What is the expected impact of deposit costs on margins? - Management noted that deposit costs are expected to improve in the third quarter due to successful renewal rates and growth in relationship deposits [42] Question: Is there a potential for bulk loan sales to clear problem credits? - Management is evaluating each situation on a case-by-case basis and may consider strategic patience to maximize exit values [70][72]

Financial Results - Eagle Bancorp (EGBN) announced its financial results for Q2 of the 2025 fiscal year after market close on July 23rd [1] - Revenue exceeded expectations, but adjusted earnings per share declined [1] Investment Focus - Crude Value Insights provides an investment service centered on oil and natural gas, emphasizing cash flow and companies that generate it [1] - The service aims to identify value and growth prospects with real potential in the sector [1]

Company Performance - Eagle Bancorp reported a quarterly loss of $2.3 per share, significantly missing the Zacks Consensus Estimate of $0.4, and down from earnings of $0.67 per share a year ago, representing an earnings surprise of -675.00% [1] - The company posted revenues of $74.19 million for the quarter ended June 2025, missing the Zacks Consensus Estimate by 2.46%, and down from $76.68 million in the same quarter last year [2] - Over the last four quarters, Eagle Bancorp has surpassed consensus EPS estimates only two times and has not beaten consensus revenue estimates during this period [2] Stock Outlook - Eagle Bancorp shares have declined approximately 18% since the beginning of the year, contrasting with the S&P 500's gain of 7.3% [3] - The current consensus EPS estimate for the upcoming quarter is $0.50 on revenues of $80.31 million, and for the current fiscal year, it is $1.58 on revenues of $314.94 million [7] Industry Context - The Zacks Industry Rank for Banks - Northeast, to which Eagle Bancorp belongs, is currently in the top 24% of over 250 Zacks industries, indicating a favorable industry outlook [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact Eagle Bancorp's stock performance [5]

[Introduction](index=3&type=section&id=Introduction) [Forward Looking Statements](index=3&type=section&id=Forward%20Looking%20Statements) The presentation contains forward-looking statements subject to uncertainties and risks that could materially affect actual results - The presentation contains forward-looking statements, which are subject to significant uncertainty and may differ materially from actual future operations and results[5](index=5&type=chunk) - Key risks include the impact of the interest rate environment on business activity, declines in credit quality, prolonged downturns in the real estate market, liquidity management, funding profile, competition, and monetary/fiscal policies[6](index=6&type=chunk) [Contact Information](index=4&type=section&id=Contact%20Information) This section provides contact details for further company information - For further information, contact Eric Newell at P 240-497-1796 or E enewell@eaglebankcorp.com[7](index=7&type=chunk) [Company Profile & Strategy](index=5&type=section&id=Company%20Profile%20%26%20Strategy) [Attractive Washington DC Footprint](index=5&type=section&id=Attractive%20Washington%20DC%20Footprint) The company operates within the robust and diverse Washington DC metro area, a market with a strong economy and high household incomes - The Washington DC metro area boasts a robust and diverse economy, supported by public and private sectors, globally recognized educational institutions, a thriving private sector with technology innovation, and a strong tourism base[12](index=12&type=chunk) - Household income in EagleBank's markets is **significantly above** the national and Mid-Atlantic states' averages[13](index=13&type=chunk) - EagleBank is one of the largest community banks headquartered in the Washington DC metro area, ranking **3rd by deposits** in the DC MSA for banks with less than $100 billion in assets[14](index=14&type=chunk) [Eagle at a Glance](index=7&type=section&id=Eagle%20at%20a%20Glance) This section presents key financial and corporate metrics for EagleBank as of June 30, 2025 Eagle at a Glance | Metric | Value (as of June 30, 2025) | | :-------------------------- | :-------------------------- | | Total Assets | $10.6 billion | | Total Loans | $7.7 billion | | Total Deposits | $9.1 billion | | Tangible Common Equity | $1.2 billion | | Shares Outstanding | 30,364,983 | | Market Capitalization | $650 million (July 22, 2025) | | Tangible Book Value per Share | $39.03 | | Institutional Ownership | 80% | [Core Strengths Supporting Long-Term Performance](index=9&type=section&id=Core%20Strengths%20Supporting%20Long-Term%20Performance) The company's long-term performance is supported by strong capital, a disciplined cost structure, robust liquidity, and a desirable geography - **Best-in-Class Capital Levels**: **CET1 Ratio = 14.01%** (top quartile for banks >$10B assets), **TCE / TA = 11.18%**, **ACL / Gross Loans = 2.38%**, and **ACL / Performing Office Loans = 11.54%**[24](index=24&type=chunk)[28](index=28&type=chunk) - **Disciplined Cost Structure**: **Operating Noninterest Expense / Average Assets = 1.45%**, **Operating Efficiency Ratio = 58.6%**; The company operates a branch-light, efficient model[25](index=25&type=chunk)[28](index=28&type=chunk) - **Strong Liquidity and Funding Position**: **$4.8 billion** in combined on-balance sheet liquidity and available borrowing capacity, significantly exceeding **$2.3 billion** in uninsured deposits (**200% coverage ratio**); Uninsured deposits represent **25% of total deposits** with a weighted average relationship of over 8 years[26](index=26&type=chunk)[28](index=28&type=chunk) - **Capitalizing on Desirable Geography**: The DMV area offers a robust and diverse economy (education, healthcare, technology, defense) and a population with high household incomes, contributing to a significant deposit base[27](index=27&type=chunk)[28](index=28&type=chunk) [Strategic Initiatives to Enhance Profitability](index=11&type=section&id=Strategic%20Initiatives%20to%20Enhance%20Profitability) The company is pursuing profitability enhancement through deposit growth, funding diversification, and operational excellence initiatives - **Grow & Diversify Deposits & Funding**: Expand C&I team, build Treasury sales behaviors to deepen deposit relationships and grow fee income, evaluate strategies to reduce CRE concentration, seek deposit-rich sectors, and leverage existing branch network for customer acquisition[34](index=34&type=chunk)[35](index=35&type=chunk) - **Operational Excellence**: Continue investments in operational capabilities and human talent to strengthen efficiency and scalability, drive effective expense management to achieve positive operating leverage, and maintain an exceptional client and employee experience[34](index=34&type=chunk)[35](index=35&type=chunk) - **Key Levers to Improve Return on Average Assets**: Grow and deepen relationship deposits to reduce high-cost wholesale and non-core funding, maintain pricing discipline on loan originations for revenue growth, and continue operating efficiency focus for positive operating leverage[35](index=35&type=chunk) [Financial Highlights & Outlook](index=15&type=section&id=Financial%20Highlights%20%26%20Outlook) [Performance Measures](index=15&type=section&id=Performance%20Measures) Key performance metrics for Q2 2025 reflect a net loss, an improved efficiency ratio, and increased tangible common equity Performance Measures | Metric (Quarter Ended) | 2024Q2 | 2024Q3 | 2024Q4 | 2025Q1 | 2025Q2 | | :--------------------- | :----- | :----- | :----- | :----- | :----- | | Operating Return on Average Tangible Common Equity | 7.22% | 7.04% | 4.94% | 0.55% | -22.35% | | Operating Efficiency Ratio | 61.5% | 59.5% | 58.6% | 55.4% | 55.2% | | Operating Return on Average Assets | 0.70% | 0.66% | 0.48% | 0.06% | -2.33% | | Tangible Common Equity/Tangible Assets | 11.18% | 11.02% | 11.00% | 10.86% | 10.35% | - **Operating Return on Average Tangible Common Equity** declined significantly to **-22.35%** in 2025Q2 from 0.55% in 2025Q1[46](index=46&type=chunk) - **Operating Efficiency Ratio** improved to **55.2%** in 2025Q2 from 61.5% in 2024Q2[48](index=48&type=chunk) [Net Interest Income & Margin](index=17&type=section&id=Net%20Interest%20Income%20%26%20Margin) Net interest income and margin improved in Q2 2025, driven primarily by a decrease in interest expense Net Interest Income & Margin | Metric (Quarter Ended) | 2024Q2 | 2024Q3 | 2024Q4 | 2025Q1 | 2025Q2 | | :--------------------- | :----- | :----- | :----- | :----- | :----- | | Net Interest Income (millions) | $71.4 | $71.8 | $70.8 | $65.6 | $67.8 | | Net Interest Margin (NIM) | 2.40% | 2.37% | 2.37% | 2.28% | 2.29% | - Net interest income increased by **$2.2 million** quarter-over-quarter[61](index=61&type=chunk) - Interest expense decreased by **$4.6 million**, driven by lower average short-term borrowings and reduced costs on savings and money market accounts[61](index=61&type=chunk) - Net interest margin (NIM) increased to **2.37%** for Q2 2025, up from 2.28% in the prior quarter[61](index=61&type=chunk) [Net Income - Summary](index=19&type=section&id=Net%20Income%20-%20Summary) The company reported a significant net loss in Q2 2025, driven by a large provision for credit losses Net Income Summary | Metric (Quarter Ended) | 2025Q1 | 2025Q2 | | :--------------------- | :----- | :----- | | Net Income (thousands) | $1,675 | $(69,775) | - Net interest income increased **$2.2 million**, driven by reduced costs on savings and money market accounts and lower average short-term borrowings[66](index=66&type=chunk) - **Provision for Credit Losses (PCL)** increased significantly to **$138.2 million** in Q2 2025 from $26.3 million in Q1 2025, primarily due to higher office-related reserves and expected exit strategies; Net charge-offs totaled **$83.9 million**, up from $11.2 million[67](index=67&type=chunk) - Noninterest income decreased **$1.8 million**, mainly due to a **$1.9 million loss** on a trade to reposition the investment portfolio[68](index=68&type=chunk) - Noninterest expense decreased **$2 million**, associated with decreased legal, accounting, and professional fees[69](index=69&type=chunk)[70](index=70&type=chunk) [2025 Outlook](index=21&type=section&id=2025%20Outlook) The company has revised its 2025 outlook, adjusting expectations for deposits, loans, margins, income, expenses, and tax rate 2025 Outlook | Key Driver | 2Q 2025 Actual | Prior 2025 Outlook | Current 2025 Outlook | | :------------------ | :------------- | :----------------- | :------------------- | | **Balance Sheet** | | | | | Average deposits | $10,226 million | 1-4% increase | 4-6% increase | | Average loans | $7,942 million | 2-5% increase | Flat | | Average earning assets | $11,487 million | Flat | 5-7% decrease | | **Income Statement**| | | | | Net interest margin | 2.37% | 2.40% - 2.65% | 2.35% - 2.50% | | Noninterest income | $6.4 million | 35 - 40% growth | 40 - 45% growth | | Noninterest expense | $43.5 million | 3-5% growth | 5.5-7.5% growth | | Period effective tax rate | 36.1% | 15-17% | 37-47% | - The outlook for average deposits has improved, while average loans and earning assets are expected to perform less favorably than previously anticipated[73](index=73&type=chunk) - The company anticipates higher growth in noninterest income and noninterest expense, along with a significantly higher effective tax rate[73](index=73&type=chunk) [Funding & Liquidity](index=23&type=section&id=Funding%20%26%20Liquidity) [Deposit Mix and Trend](index=23&type=section&id=Deposit%20Mix%20and%20Trend) Total deposits grew year-over-year, with a mix shift towards CDs and a slight decrease in overall deposit cost in Q2 2025 - Total Period End Deposits increased **$852 million** Year-over-Year[75](index=75&type=chunk) Deposit Mix (Q2 2025) | Deposit Type (Q2 2025) | Percentage of Total | | :--------------------- | :------------------ | | CDs | 38% | | Savings & money market | 38% | | Interest bearing transaction | 10% | | Noninterest bearing | 17% | Cost of Funds | Cost Metric (Quarter Ended) | 2024Q2 | 2024Q3 | 2024Q4 | 2025Q1 | 2025Q2 | | :-------------------------- | :----- | :----- | :----- | :----- | :----- | | Total Deposit Cost | 3.35% | 3.40% | 3.28% | 3.17% | 3.05% | | Borrowings | 5.75% | 5.46% | 5.28% | 5.07% | 5.03% | | Total IBL Cost | 4.47% | 4.45% | 4.20% | 4.07% | 3.86% | [Funding & Liquidity Summary](index=25&type=section&id=Funding%20%26%20Liquidity%20Summary) The company maintains a robust liquidity position, with ample coverage for uninsured deposits and a significant reduction in short-term borrowings - Available liquidity of **$4.8 billion** covers uninsured deposits of **$2.3 billion** by more than **200%**[81](index=81&type=chunk) - Average deposits increased **$342.8 million** for the quarter, primarily due to an increase in time deposit accounts[84](index=84&type=chunk) - Other short-term borrowings decreased by **89.8%** from the prior quarter-end to **$50.0 million** at June 30, 2025, driven by the paydown of FHLB borrowings, funded by cash and core deposit growth[85](index=85&type=chunk) - Ample access to liquidity from FHLB, FRB Discount Window, cash, and unencumbered securities totals over **$4.8 billion**[86](index=86&type=chunk) [Loan Portfolio Overview](index=33&type=section&id=Loan%20Portfolio%20Overview) [Loan Mix and Trend](index=33&type=section&id=Loan%20Mix%20and%20Trend) The loan portfolio saw a slight decrease in Q2 2025, with CRE remaining the largest segment and a decline in overall loan yield Loan Mix (Q2 2025) | Loan Type (Q2 2025) | Percentage of Total Loans | | :------------------ | :------------------------ | | Income producing CRE (excluding office) | 38% | | Owner-Occupied CRE | 16% | | Construction - comm & residential | 16% | | Commercial | 15% | | Office | 11% | | Construction C&I (owner-occupied) | 1% | Loan Trend | Metric (Quarter Ended) | 2024Q2 | 2024Q3 | 2024Q4 | 2025Q1 | 2025Q2 | | :--------------------- | :----- | :----- | :----- | :----- | :----- | | Total Loans (millions) | $8,001 | $7,970 | $7,934 | $7,943 | $7,719 | | Overall Loan Yield | 6.91% | 6.93% | 6.63% | 6.45% | 6.31% | [Loan Type and Classification](index=35&type=section&id=Loan%20Type%20and%20Classification) The loan portfolio is detailed by type and classification, highlighting an increase in substandard CRE loans as of June 30, 2025 Loan Portfolio by Type (6/30/2025) | Loan Type (6/30/2025) | Balance ($ in millions) | % of Total | | :-------------------- | :---------------------- | :--------- | | Income-producing - CRE (Total) | $3,769 | 49% | | Commercial | $1,208 | 16% | | Owner-occupied - commercial real estate | $1,366 | 18% | | Construction - commercial and residential | $1,212 | 16% | | Construction - C&I (owner-occupied) | $70 | 1% | | Real estate mortgage - residential | $46 | 1% | | Consumer & home equity | $52 | 1% | | **Total** | **$7,722** | **100%** | Income Producing CRE by Type (6/30/2025) | Income Producing CRE by Type (6/30/2025) | Balance ($ in millions) | % of Loans | | :--------------------------------------- | :---------------------- | :--------- | | Office & Office Condo | $821 | 11% | | Multifamily | $836 | 11% | | Retail | $311 | 4% | | Hotel/Motel | $395 | 5% | | Mixed Use | $325 | 4% | | Industrial | $169 | 2% | | Single/1-4 Family & Res. Condo | $82 | 1% | | Other | $830 | 11% | | **Total** | **$3,769** | **49%** | - Substandard loans in CRE increased by **$189.4 million** quarter-over-quarter, while C&I substandard loans decreased by **$5.5 million**; **64%** of substandard loans were current at 6/30/25[122](index=122&type=chunk) [Detailed Loan Portfolio Analysis](index=27&type=section&id=Detailed%20Loan%20Portfolio%20Analysis) [Office Loan Portfolio](index=27&type=section&id=Office%20Loan%20Portfolio) The office loan portfolio decreased year-over-year and is detailed by class, classification, ACL coverage, and maturity - Income Producing Office Holdings declined **$68 million** Year-over-Year[92](index=92&type=chunk) CRE Office Portfolio (6/30/2025) | Class Type (6/30/2025) | Balance ($ in millions) | of Loans | Avg. Size ($ in millions) | Criticized and Classified % | | :--------------------- | :---------------------- | :--------- | :------------------------ | :-------------------------- | | Owner Occupied Office | $144.2 | 88 | $1.6 | 1% | | Income Producing Office | $821.2 | 68 | $12.1 | 28% | | **Total CRE Office** | **$965.4** | **156** | **$6.2** | **29%** | - Performing Office ACL coverage is **11.54%**[103](index=103&type=chunk) - Limited exposure to Class B central business district office[103](index=103&type=chunk) [Office Loan Portfolio Detail](index=27&type=section&id=Office%20Loan%20Portfolio%20Detail) Income Producing Office Detail (6/30/2025) | Income Producing Office (6/30/2025) | Balance ($ in millions) | of Loans | Avg. Size ($ in millions) | Criticized and Classified % | In Central Business District of DC % | | :---------------------------------- | :---------------------- | :--------- | :------------------------ | :-------------------------- | :----------------------------------- | | Class A | $372.2 | 15 | $24.8 | 11% | 6.0% | | Class B | $417.9 | 36 | $11.6 | 16% | 4.9% | | Class C | $7.7 | 5 | $1.5 | 0% | 0.0% | | Office Condo and Other | $23.4 | 12 | $2.0 | 1% | 0.0% | | **Total Income Producing Office** | **$821.2** | **68** | **$12.1** | **28%** | **10.9%** | - EagleBank's **Excess CET1 + ACL / Inc Producing Office Loans is 73%**, which is lower than some peers but still provides significant coverage[96](index=96&type=chunk) [Income Producing Office Loan Maturity](index=29&type=section&id=Income%20Producing%20Office%20Loan%20Maturity) Income Producing Office Loan Maturity | Maturity Year | Balance ($ millions) | % of Inc Producing Office | Cumulative % | Weighted LTV | Weighted DSCR | | :------------ | :------------------- | :------------------------ | :----------- | :----------- | :------------ | | 2025 | $76.3 | 9.3% | 9.3% | 65 | 1.0 | | 2026 | $305.2 | 37.2% | 46.4% | 71 | 1.6 | | 2027 | $171.0 | 20.8% | 67.3% | 55 | 1.4 | | 2028+ | $268.8 | 32.7% | 100.0% | 73 | 1.6 | | **Total** | **$821.2** | **100.0%** | | **68** | **1.5** | [Multifamily Loan Portfolio](index=31&type=section&id=Multifamily%20Loan%20Portfolio) The multifamily loan portfolio is detailed by key metrics, risk classification, and geographic concentration Multifamily Portfolio Metrics (6/30/2025) | Metric (6/30/2025) | Value | | :----------------- | :---- | | Total CRE Balance | $836.4 million | | of Loans | 43 | | Avg Size | $19.5 million | | Median Size | $11.6 million | | Pass % | 83% | | Criticized % | 17% | | Non-Accrual % | 2% | | Weighted LTV | 63 | | Weighted DSCR | 1.0 | Multifamily Portfolio Geography | Geography | % of Inc Producing Multi-Family | | :-------- | :------------------------------ | | Maryland | 23% | | Virginia | 24% | | DC | 47% | | Other US | 6% | [Asset Quality](index=37&type=section&id=Asset%20Quality) [Asset Quality Metrics](index=37&type=section&id=Asset%20Quality%20Metrics) Asset quality metrics for Q2 2025 show a significant increase in credit loss provisions and charge-offs, alongside an improved NPA ratio Asset Quality Trends | Metric (Quarter Ended) | 2024Q2 | 2024Q3 | 2024Q4 | 2025Q1 | 2025Q2 | | :--------------------- | :----- | :----- | :----- | :----- | :----- | | Provision for Credit Losses (thousands) | $8,959 | $10,094 | $12,132 | $26,255 | $138,159 | | NCO / Average Loans | 0.11% | 0.26% | 0.48% | 0.57% | 4.22% | | Allowance for Credit Losses/Loans HFI | 1.33% | 1.40% | 1.44% | 1.63% | 2.38% | | NPAs / Assets | 2.16% | 1.90% | 1.79% | 1.22% | 0.88% | - **Provision for Credit Losses (PCL)** surged to **$138.2 million** in Q2 2025, a substantial increase from previous quarters[126](index=126&type=chunk) - **Net Charge-Offs (NCO) / Average Loans** increased significantly to **4.22%** in Q2 2025[127](index=127&type=chunk) - **Non-Performing Assets (NPAs) / Assets** decreased to **0.88%** in Q2 2025, indicating an improvement in the non-performing asset ratio[130](index=130&type=chunk) [Nonaccrual Loans](index=41&type=section&id=Nonaccrual%20Loans) Nonaccrual loans increased in Q2 2025, with details on new additions and progress on credit resolution efforts Nonaccrual Loan Detail (6/30/2025) | Nonaccrual Loan (6/30/2025) | Balance ($000s) | % Total NPLs | New in 2Q 2025 | | :-------------------------- | :-------------- | :----------- | :------------- | | Office - Washington DC | $39,489 | 17.4% | Yes | | Data Center - Fairfax | $33,610 | 14.8% | Yes | | Land - Washington DC | $27,377 | 12.1% | Yes | | Office - Montgomery | $14,700 | 6.5% | Yes | | Multifamily - Washington DC | $13,789 | 6.1% | Yes | | All Other Nonaccrual Loans | $47,998 | 21.2% | | | **Total Nonaccrual Loans** | **$226,420** | **100.0%** | | - Credit resolution highlights include **$60.0 million** of loans returning to accrual status and **$38.9 million** transferred to held-for-sale, with a signed LOI for one property expected to close in Q3[143](index=143&type=chunk)[144](index=144&type=chunk) [Classified and Criticized Loans Summary](index=45&type=section&id=Classified%20and%20Criticized%20Loans%20Summary) This section summarizes classified and criticized loans as of June 30, 2025, detailing large exposures by risk rating Classified and Criticized Loans | Risk Rating | of Loans | Average Balance ($000s) | Median Size ($000s) | Loans Over $10M | Balance Over $10M ($000s) | % of Total Over $10M | | :------------------ | :--------- | :---------------------- | :------------------ | :---------------- | :------------------------ | :--------------------- | | Special Mention Loans | 33 | $173,311 | $1,826 | | $107,266 | 62% | | Substandard Loans | 131 | $702,128 | $880 | | $502,922 | 72% | | **Grand Total** | **164** | **$875,439** | **$806** | **22** | **$610,187** | | - The summary provides detailed information for 5 Special Mention loans over $10 million and 17 Substandard loans over $10 million, including their LTV, DSCR, and accrual status[146](index=146&type=chunk) [Investment Portfolio](index=57&type=section&id=Investment%20Portfolio) The investment portfolio composition, yield, and strategic management for liquidity and reinvestment are detailed Securities Portfolio Summary | Securities Classification | % of Portfolio at Book | Book Yield | Reprice Term (years) | | :------------------------ | :--------------------- | :--------- | :------------------- | | Securities AFS | 57% | 1.78% | 3.7 | | Securities HTM | 43% | 2.05% | 6.3 | | **Total Securities** | **100%** | **1.90%** | **1.8** | Investment Portfolio Mix | Investment Type | % of Portfolio | | :-------------- | :------------- | | Agency MBS | 57% | | Agency Debenture | 24% | | Agency CMBS | 7% | | Municipal | 6% | | Corporate | 6% | | US Treasury | 0% | - The portfolio is positioned to manage liquidity and pledging needs, with projected cash flow of **$216 million** for the remainder of 2025[178](index=178&type=chunk) - Sold **$30 million** par value securities yielding **0.95%** and reinvested the proceeds at **5.33%** during the quarter[178](index=178&type=chunk) [Capital & Shareholder Value](index=13&type=section&id=Capital%20%26%20Shareholder%20Value) [Capital Levels vs. Peers](index=13&type=section&id=Capital%20Levels%20vs.%20Peers) The company maintains strong capital ratios, providing superior coverage compared to its peer group - Capital ratios are high relative to peers[44](index=44&type=chunk) - Excess CET1 (over 9%) plus reserves provides a superior level of coverage when measured against peers[44](index=44&type=chunk) Capital Ratios vs. Peers | Metric (EGBN vs. Peers) | EGBN (6/30/2025) | Peer Range (3/31/2025) | | :---------------------- | :--------------- | :--------------------- | | CET1 Ratio | 14.0% | 10.1% - 17.0% | | Excess CET1 + ACL / Total Loans | 8.4% | 1.8% - 10.4% | | Tangible Common Equity / Tangible Assets | 11.2% | 7.8% - 11.9% | [Tangible Book Value Per Share](index=59&type=section&id=Tangible%20Book%20Value%20Per%20Share) Tangible Book Value Per Share decreased slightly in Q2 2025, with a positive long-term compound annual growth rate TBVPS Trend | Metric (Quarter Ended) | 2025Q1 | 2025Q2 | | :--------------------- | :----- | :----- | | Tangible Book Value Per Share | $40.99 | $39.03 | - TBVPS decreased by **$1.96** from $40.99 in Q1 2025 to **$39.03** in Q2 2025, primarily influenced by net income and AOCI[183](index=183&type=chunk) - Tangible Book Value Per Share has a **2.0% CAGR** from 2020 to 2025[184](index=184&type=chunk) [Appendix](index=39&type=section&id=Appendix) [Non-GAAP Reconciliation (unaudited)](index=67&type=section&id=Non-GAAP%20Reconciliation%20(unaudited)) This section provides detailed reconciliations of non-GAAP financial measures to their comparable GAAP equivalents Tangible Common Equity Reconciliation | Metric ($ in thousands, except per share data) | 2024 Q2 | 2024 Q3 | 2024 Q4 | 2025 Q1 | 2025 Q2 | | :------------------------------------------- | :----------- | :----------- | :----------- | :----------- | :----------- | | Common shareholders' equity | $1,169,459 | $1,225,424 | $1,226,061 | $1,244,891 | $1,185,067 | | Less: Intangible assets | (129) | (21) | (16) | (11) | (9) | | **Tangible common equity** | **$1,169,330** | **$1,225,403** | **$1,226,045** | **$1,244,880** | **$1,185,058** | | Total assets | $11,302,023 | $11,285,052 | $11,129,508 | $11,317,361 | $10,601,331 | | Less: Intangible assets | (129) | (21) | (16) | (11) | (9) | | **Tangible assets** | **$11,301,894** | **$11,285,031** | **$11,129,492** | **$11,317,350** | **$10,601,322** | | **Tangible common equity ratio** | **10.35%** | **10.86%** | **11.02%** | **11.00%** | **11.18%** | | Book value per share | $38.75 | $40.61 | $40.60 | $40.99 | $39.03 | | Less: Intangible book value | (0.01) | - | (0.01) | - | - | | **Tangible book value per share** | **$38.74** | **$40.61** | **$40.59** | **$40.99** | **$39.03** | | Shares outstanding | 30,180,482 | 30,173,200 | 30,202,003 | 30,368,843 | 30,364,983 | Operating Net Income Reconciliation | Metric ($ in thousands) | 2024 Q2 | 2024 Q3 | 2024 Q4 | 2025 Q1 | 2025 Q2 | | :------------------------------------------- | :----------- | :----------- | :----------- | :----------- | :----------- | | Net (loss) Income | ($83,802) | $21,815 | $15,290 | $1,675 | ($69,775) | | Add back of goodwill impairment | $104,168 | 50 | 50 | 50 | 50 | | **Operating net income** | **$20,366** | **$21,815** | **$15,290** | **$1,675** | **($69,775)** | | Operating return on avg. tangible common equity | 7.04% | 7.22% | 4.94% | 0.55% | -22.35% | | Operating return on avg. assets | 0.66% | 0.70% | 0.48% | 0.06% | -2.33% | | Operating return on avg. common equity | 6.46% | 7.22% | 4.94% | 0.55% | -22.35% | Operating Efficiency Ratio Reconciliation | Metric ($ in thousands) | 2024 Q2 | 2024 Q3 | 2024 Q4 | 2025 Q1 | 2025 Q2 | | :------------------------------------------- | :----------- | :----------- | :----------- | :----------- | :----------- | | Operating Revenue | $76,685 | $78,794 | $74,861 | $73,856 | $74,190 | | Operating Noninterest expense | $42,323 | $43,614 | $44,532 | $45,451 | $43,470 | | **Operating Efficiency ratio** | **55.2%** | **55.4%** | **59.5%** | **61.5%** | **58.6%** |

Core Viewpoint - Eagle Bancorp reported a significant net loss of $69.8 million for Q2 2025, primarily due to a substantial increase in provision expense, reflecting ongoing challenges in its loan portfolio and strategic risk remediation efforts [2][5][6]. Financial Performance - The company experienced a net loss of $69.8 million or $2.30 per share in Q2 2025, compared to a net income of $1.7 million or $0.06 per share in Q1 2025, marking a $71.5 million decrease in net income [2][19]. - Net interest income increased by $2.1 million to $67.8 million, while noninterest income decreased by $1.8 million to $6.4 million [2][10]. - Noninterest expenses decreased by $2.0 million to $43.5 million, primarily due to reduced legal and professional fees [10]. Asset Quality - The allowance for credit losses (ACL) rose to 2.38% of total loans, up from 1.63% in the previous quarter, indicating a proactive approach to managing credit risk [6][16]. - Nonperforming assets increased by $26.0 million to $228.9 million, representing 2.16% of total assets, compared to 1.79% in the prior quarter [16][25]. - Net charge-offs for the quarter were $83.9 million, significantly higher than $11.2 million in Q1 2025 [16][25]. Capital Position - The common equity tier one capital ratio stood at 14.0%, with a tangible common equity ratio exceeding 10%, indicating a strong capital position [6][16]. - Total shareholders' equity decreased by 4.8% to $1.2 billion, primarily due to quarterly losses [16][21]. Strategic Initiatives - The company is focused on resolving challenged loans and addressing valuation pressures in its office portfolio as part of its strategic plan [4][5]. - A cash dividend of $0.165 per share was declared, payable on August 29, 2025, reflecting ongoing commitment to shareholder returns despite current challenges [6][9].

Core Viewpoint - Eagle Bancorp, Inc. will host a teleconference on July 24, 2025, to discuss its second quarter 2025 financial results, which will be released on July 23, 2025 [1] Group 1: Teleconference Details - The teleconference will feature CEO Susan Riel and CFO Eric Newell discussing the earnings [1] - Interested parties must register to participate, receiving a dial-in number and unique PIN [2] - The call will also be available via live webcast on the company's website, with a replay accessible until August 7, 2025 [2] Group 2: Company Overview - Eagle Bancorp, Inc. is the holding company for EagleBank, which began operations in 1998 [4] - The bank is headquartered in Bethesda, Maryland, and operates 12 offices in Suburban Maryland, Washington, D.C., and Northern Virginia [4] - EagleBank focuses on building relationships with businesses, professionals, and individuals in its marketplace [4]

Core Viewpoint - Rosen Law Firm is investigating potential securities claims on behalf of shareholders of Eagle Bancorp, Inc. due to allegations of materially misleading business information issued by the company [1]. Group 1: Legal Action and Investor Rights - Shareholders who purchased Eagle Bancorp securities may be entitled to compensation through a class action lawsuit without any out-of-pocket fees, facilitated by a contingency fee arrangement [2]. - The Rosen Law Firm is preparing a class action to seek recovery of investor losses related to Eagle Bancorp [2]. Group 2: Financial Performance and Market Reaction - Eagle Bancorp filed a current report on Form 8-K on April 23, 2025, announcing its Q1 2025 results, which indicated a significant miss on both earnings per share (EPS) and revenue compared to forecasts [3]. - Following the disappointing Q1 results, Eagle Bancorp's stock price experienced an 11.3% decline on April 24, 2025 [3]. Group 3: Rosen Law Firm's Credentials - The Rosen Law Firm has a strong track record in securities class actions, having achieved the largest securities class action settlement against a Chinese company at the time and being ranked No. 1 for the number of settlements in 2017 [4]. - The firm has recovered hundreds of millions of dollars for investors, securing over $438 million in 2019 alone [4].