Financial Data and Key Metrics Changes - The company reported net income of $7.6 million, or $0.25 per diluted share, compared to a loss of $67.5 million, or $2.22 per share, in the previous quarter [6] - Non-performing loans decreased to $106.8 million, down $12 million from the prior quarter, representing 1.47% of total loans [7] - Total non-performing assets declined by $24 million to $108.9 million, representing 1.04% of total assets, compared to 1.23% in the prior quarter [7] - The allowance for credit losses ended the quarter at $159.6 million, or 2.19% of total loans [8] - Tangible common equity to tangible assets is 10.87%, Tier 1 leverage ratio is 10.17%, and CET1 is 13.83% [10] Business Line Data and Key Metrics Changes - Net interest income grew by $144,000 to $68.3 million, with a net interest margin (NIM) decline of five basis points to 2.38% [9][10] - Non-interest income increased to $12.2 million from $2.5 million in the previous quarter, primarily due to non-recurrent losses and gains from investments [10] - Non-interest expense rose by $17.9 million to $59.8 million, driven by costs associated with the disposition of held-for-sale loans [10] Market Data and Key Metrics Changes - The company experienced a reduction in brokered deposits by $602 million while increasing core deposits by $692 million during 2025 [11] - The concentration ratio for commercial real estate (CRE) loans to total risk-based capital and reserves declined to 322% [9] - The acquisition, development, and construction (ADC) concentration ratio decreased to 88% [9] Company Strategy and Development Direction - The company is transitioning from remediation to execution, focusing on consistent performance and improving returns [4][14] - There is an emphasis on reducing concentration risk and enhancing the quality of the balance sheet to support sustainable earnings [4] - The company aims to expand pre-provision net revenue in 2026, despite a smaller average balance sheet, prioritizing shareholder returns and profitability [12] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the company's direction, highlighting improved asset quality and a stronger foundation [14] - The expectation is for average deposits, loans, and earning assets to decline year-over-year, reflecting deliberate balance sheet repositioning rather than operational pressure [12] - Management is cautious about capital management and will consider changes only after observing continued positive trends over multiple quarters [28] Other Important Information - The company has $4.7 billion in available liquidity, maintaining 2x coverage of uninsured deposits [11] - The company is actively hiring producers in the commercial and industrial (C&I) sector to support growth [72] Q&A Session Summary Question: Can you provide more details on the asset dispositions and the expected timing? - The company has $90.7 million of loans held for sale, with two-thirds scheduled for resolution in the first quarter [19] Question: What is the potential for further moves into held-for-sale loans? - There could be situations where selling loans is deemed the best strategy, but the pace is not expected to match 2025 [21] Question: What trends are being observed in the multifamily sector? - There are signs of stabilization and improvement in multifamily loans, with strong valuations compared to the office market [22] Question: How do you view the current reserves and future provisioning? - The company expects to see a decline in the allowance for credit losses as the criticized classified loan portfolio continues to decrease [35][46] Question: Can you discuss the buyer interest in the secondary market for loans? - Buyer interest is high, with a range of investors involved, including local developers and existing ownership looking to purchase their own debt [37] Question: What is the outlook for loan growth in the C&I sector? - The growth seen in the fourth quarter is not expected to be sustainable at that level, but the C&I platform is expected to continue growing [55] Question: What is the current status of brokered deposits and cash levels? - The company holds $1.56 billion in brokered deposits, with plans to reduce this significantly throughout 2026 [58][60]

Financial Data and Key Metrics Changes - The company reported net income of $7.6 million, or $0.25 per diluted share, compared to a loss of $67.5 million, or $2.22 per share, in the previous quarter [6] - Non-performing loans decreased to $106.8 million, down $12 million from the prior quarter, representing 1.47% of total loans [7] - Total non-performing assets declined by $24 million to $108.9 million, representing 1.04% of total assets, down from 1.23% in the prior quarter [7] - The allowance for credit losses ended the quarter at $159.6 million, or 2.19% of total loans [8] - Tangible common equity to tangible assets is 10.87%, with a Tier 1 leverage ratio of 10.17% and CET1 at 13.83% [10] Business Line Data and Key Metrics Changes - Net interest income grew by $144,000 to $68.3 million, with a net interest margin (NIM) decline of five basis points to 2.38% [9][10] - Non-interest income increased to $12.2 million compared to $2.5 million in the previous quarter, primarily due to non-reoccurring losses and gains from SBIC investments [10] - Non-interest expense rose by $17.9 million to $59.8 million, driven by costs associated with the disposition of held-for-sale loans and valuation adjustments [10] Market Data and Key Metrics Changes - The company experienced a reduction in brokered deposits by $602 million while increasing core deposits by $692 million during 2025 [11] - The CRE concentration ratio declined to 322%, and the ADC concentration ratio decreased to 88% as of year-end [9] Company Strategy and Development Direction - The company is focusing on transitioning from remediation to execution, with an emphasis on consistent performance and improved asset quality [4][14] - The strategy includes reducing loan concentrations and enhancing balance sheet quality to support sustainable earnings [4][14] - The company anticipates a meaningful expansion in net interest margin, forecasting NIM to range between 2.6% and 2.8% for the year [12] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the ability to expand pre-provision net revenue despite a smaller average balance sheet [11][12] - The company is cautious about capital management and will continue to monitor the criticized and classified loan levels before making further decisions [28] - Management noted that while there are signs of improvement, they will remain vigilant in monitoring credit quality and potential risks [33][34] Other Important Information - The company has $4.7 billion in available liquidity, maintaining two-times coverage of uninsured deposits [11] - The company is actively hiring producers in the C&I sector to support growth [72] Q&A Session Summary Question: Can you provide more details on the asset dispositions and expected timing? - The company has $90.7 million of loans held for sale, with two-thirds scheduled for resolution in the first quarter [19] Question: What is the potential for further moves into held-for-sale? - There could be situations where selling loans is the best strategy, but the pace is not expected to match 2025 [21] Question: What trends are being seen in the multifamily sector? - There are signs of stabilization and improvement in multifamily loans, with strong valuations compared to the office market [22] Question: How do you view the current reserves and future provisioning? - The company expects to see a decline in the allowance for credit losses as the criticized classified loan portfolio continues to decline [39] Question: Can you discuss the buyer interest in the secondary market? - Buyer interest is high, with a range of investors looking to purchase loans, including local developers and existing ownership [37] Question: What is the outlook for loan growth in the C&I sector? - The growth seen in the fourth quarter is not expected to be sustainable, but the C&I platform is expected to continue growing [55] Question: What is the current level of brokered deposits and plans for reduction? - The company has $1.56 billion in brokered deposits, with plans to reduce this significantly throughout 2026 [58][60]

Financial Data and Key Metrics Changes - The company reported net income of $7.6 million, or $0.25 per diluted share, compared to a loss of $67.5 million, or $2.22 per share, in the previous quarter [6] - Non-performing loans decreased to $106.8 million, down $12 million from the prior quarter, representing 1.47% of total loans [7] - Total non-performing assets declined by $24 million to $108.9 million, representing 1.04% of total assets, down from 1.23% in the prior quarter [7] - The allowance for credit losses ended the quarter at $159.6 million, or 2.19% of total loans [8] - Tangible common equity to tangible assets is 10.87%, with a Tier 1 leverage ratio of 10.17% and CET1 at 13.83% [10] Business Line Data and Key Metrics Changes - Net interest income grew by $144,000 to $68.3 million, with a net interest margin (NIM) decline of five basis points to 2.38% [9] - Non-interest income increased to $12.2 million compared to $2.5 million in the previous quarter, primarily due to non-reoccurring losses and gains from SBIC investments [10] - Non-interest expense rose by $17.9 million to $59.8 million, driven by costs associated with the disposition of held-for-sale loans and valuation adjustments [10] Market Data and Key Metrics Changes - The company experienced a reduction in brokered deposits by $602 million while increasing core deposits by $692 million during 2025 [11] - The concentration ratio for commercial real estate (CRE) loans to total risk-based capital and reserves declined to 322% [9] - The acquisition, development, and construction (ADC) concentration ratio decreased to 88% as of year-end [9] Company Strategy and Development Direction - The company is transitioning from remediation to execution, focusing on consistent performance and reducing risk concentration [4] - The strategic plan includes improving asset quality and enhancing the balance sheet to support sustainable earnings [4][14] - The company aims to expand pre-provision net revenue in 2026, despite a smaller average balance sheet, prioritizing shareholder returns and profitability [11][12] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the company's direction, highlighting improved asset quality and a stronger foundation [14] - The expectation is for average deposits, loans, and earning assets to decline year-over-year due to deliberate balance sheet repositioning [11] - Management anticipates a meaningful expansion in net interest margin, forecasting NIM to range between 2.6% and 2.8% for the year [12] Other Important Information - The company has $4.7 billion in available liquidity, maintaining two-times coverage of uninsured deposits [11] - The company is actively reducing brokered deposits and expects to continue this trend into 2026 [11] Q&A Session Summary Question: Can you provide more details on the asset dispositions and the expected timing? - The company has $90.7 million of loans held for sale, with two-thirds scheduled for resolution in the first quarter, though it may extend into the second quarter [19] Question: What is the outlook for further moves into held-for-sale loans? - There may be situations where selling loans is the best strategy, but the pace will not match that of 2025 [20] Question: What trends are being observed in the multifamily sector? - There is stabilization and improvement in multifamily loans, with strong valuations compared to the office market [22] Question: How does the company view the provisioning for loan losses moving forward? - The company expects provision expenses to be higher than in 2024 but not at the levels seen in 2025, with a focus on the criticized classified portfolio [36] Question: What is the current status of brokered deposits and cash levels? - The company holds $1.56 billion in brokered deposits, with plans to reduce this significantly throughout 2026 [56]

Financial Highlights - Total assets reached $10.5 billion[13] - Total loans amounted to $7.3 billion[13] - Total deposits totaled $9.1 billion[13] - Tangible common equity stood at $1.1 billion[13] - Market capitalization was $683 million as of January 20, 2026[14] Capital & Liquidity - CET1 Ratio was 13.83%[19] - Tangible Common Equity / Tangible Assets was 10.87%[19] - Available liquidity covered uninsured deposits by 199%, with $4.7 billion in combined on-balance sheet liquidity and available borrowing capacity against $2.4 billion in uninsured deposits[19, 59] Income Statement - Net interest income increased by $0.1 million quarter over quarter[44] - Provision for credit losses decreased to $15.5 million, compared to $113.2 million for the prior quarter[49] - Noninterest income increased by $9.7 million[50] 2026 Outlook - Average deposits are projected to decrease by 4-7%[53] - Average loans are expected to decrease by 4-6%[53] - Net interest margin is forecasted to be between 2.60% - 2.80%[53]

Core Insights - Eagle Bancorp (EGBN) reported $80.5 million in revenue for the quarter ended December 2025, marking a year-over-year increase of 7.5% and a surprise of +9.7% over the Zacks Consensus Estimate of $73.38 million [1] - The earnings per share (EPS) for the same period was $0.25, a decrease from $0.50 a year ago, with an EPS surprise of +308.33% compared to the consensus estimate of -$0.12 [1] Financial Performance Metrics - Net Interest Margin was reported at 2.4%, matching the average estimate from two analysts [4] - The Efficiency Ratio stood at 74.3%, significantly higher than the average estimate of 58.1% based on two analysts [4] - Total noninterest income reached $12.19 million, exceeding the average estimate of $7.11 million from two analysts [4] - Net Interest Income was reported at $68.3 million, surpassing the average estimate of $66.28 million from two analysts [4] Stock Performance - Shares of Eagle Bancorp have returned +7.1% over the past month, in contrast to the Zacks S&P 500 composite's -0.4% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]

分组1 - Eagle Bancorp reported quarterly earnings of $0.25 per share, exceeding the Zacks Consensus Estimate of a loss of $0.12 per share, representing an earnings surprise of +308.33% [1] - The company posted revenues of $80.5 million for the quarter ended December 2025, surpassing the Zacks Consensus Estimate by 9.70%, compared to year-ago revenues of $74.86 million [2] - Over the last four quarters, Eagle Bancorp has surpassed consensus EPS estimates just once and topped consensus revenue estimates only once [2] 分组2 - The current consensus EPS estimate for the coming quarter is $0.09 on revenues of $73.29 million, and for the current fiscal year, it is $1.58 on revenues of $303.63 million [7] - The Zacks Industry Rank for Banks - Northeast is currently in the top 34% of over 250 Zacks industries, indicating a favorable outlook for the industry [8] - Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact stock performance [5]

Financial Performance - Total assets reached $10.5 billion, total loans at $7.3 billion, and total deposits at $9.1 billion as of December 31, 2025[8] - Net interest income increased by $0.1 million quarter over quarter, while net interest margin decreased to 2.38% from 2.43% in the previous quarter[18] - Provision for credit losses was $15.5 million for Q4 2025, significantly down from $113.2 million in the prior quarter, with net charge-offs totaling $12.3 million[20] - Noninterest income rose by $9.7 million, driven by the absence of third-quarter losses and gains from SBIC investments[20] - The efficiency ratio improved to 63.72%, indicating a disciplined cost structure[10] - Average deposits decreased by $62.9 million for the quarter, reflecting lower balances in time deposit accounts[26] - Noninterest income is expected to grow by 15-25% in 2026, following a 20-30% growth in the previous quarter[22] - The net interest margin for 2026 is projected to be between 2.60% and 2.80%[22] - The effective tax rate is expected to be between 12-16% in 2026, down from 15-20%[22] - Tangible Book Value Per Share (TBVPS) as of December 31, 2025, is projected to be $37.59, reflecting a decrease due to net income and other adjustments[56] Liquidity and Capital Management - The company maintains $4.7 billion in combined on-balance sheet liquidity, significantly exceeding its $2.4 billion in uninsured deposits[10] - Available liquidity is over $4.7 billion, covering uninsured deposits of $2.4 billion by more than 199%[26] - The allowance for credit losses to loans held for investment is projected to be 2.19% for Q4 2025[30] - The company has positioned its portfolio to manage liquidity and pledging needs effectively[54] - Cash flow from the securities portfolio is utilized to pay down brokered funding[54] - The company considers tangible equity important for evaluating capital adequacy and comparing against other financial institutions[68] Strategic Initiatives - The strategy includes optimizing and diversifying loans and securities to drive sustainable growth, focusing on business relationships and C&I lending[12] - The company aims to redeploy $254 million from its investment portfolio into higher-yielding assets in 2026[18] - The company aims to increase core deposits and reduce reliance on wholesale funding as part of its long-term strategy[26] Loan and Securities Portfolio - Non-accrual loans decreased by $11.8 million during the fourth quarter, driven by paydowns on credit facilities[46] - The total CRE office loan portfolio has declined by $286.9 million year-over-year[34] - Total securities decreased by $124 million from September 30, 2025, due to principal paydowns, maturities, and called securities[54] - Unencumbered securities available for pledging amount to $1.29 billion[54] Performance Metrics - The efficiency ratio, a non-GAAP measure, is calculated by dividing GAAP non-interest expense by the sum of GAAP net interest income and GAAP non-interest income[68] - Adjusted PPNR excludes the impact of loan sales to provide a clearer view of core operating performance[68]

Core Insights - Eagle Bancorp reported a net income of $7.6 million or $0.25 per share for Q4 2025, a significant recovery from a net loss of $67.5 million or $(2.22) per share in Q3 2025, primarily due to a $97.7 million decrease in provision expense [2][4] - The company aims to improve its funding mix and reduce concentrations in commercial real estate and construction loans to enhance credit quality and overall performance in 2026 [4] Financial Performance - Net interest income for Q4 2025 was relatively flat at $68.3 million, compared to $68.2 million in Q3 2025 [8] - Noninterest income increased to $12.2 million in Q4 2025 from $2.5 million in Q3 2025, driven by a recovery from previous losses and gains on sales of other real estate owned (OREO) [8] - Noninterest expenses rose to $59.8 million in Q4 2025, up from $41.9 million in Q3 2025, mainly due to higher costs related to loan dispositions and valuation adjustments [8] Asset Quality - Nonperforming assets decreased by $24.4 million to $108.9 million as of December 31, 2025, representing 1.04% of total assets, down from 1.23% in the prior quarter [8][13] - The allowance for credit losses (ACL) as a percentage of total loans was 2.19% at quarter-end, up from 2.14% in the previous quarter [8][13] - Annualized net charge-offs for Q4 2025 were 0.67%, a significant decrease from 7.36% in Q3 2025 [8][13] Loans and Deposits - Total loans, including loans held for sale, were $7.4 billion at December 31, 2025, a decrease of 1% from the prior quarter, primarily due to declines in income-producing real estate loans [13] - Total deposits at quarter-end were $9.1 billion, down $0.3 billion or 4% from the prior quarter, mainly due to lower balances in brokered time deposit accounts [13] - Commercial and industrial loans increased by $301 million or 10.95%, while average commercial and industrial deposits rose by $367 million or 22.30% from the previous quarter [8][13] Capital and Dividends - Total shareholders' equity increased by 1.6% to $1.1 billion at December 31, 2025, primarily due to quarterly income [13] - The company declared a cash dividend of $0.01 per share, payable on February 13, 2026, to shareholders of record on February 2, 2026 [4]

Core Viewpoint - Eagle Bancorp (EGBN) is anticipated to report a quarterly loss of -$0.12 per share, reflecting a significant decline of 124% year-over-year, with revenues expected to be $73.38 million, down 2% from the previous year [1]. Group 1: Earnings Estimates and Performance - The consensus EPS estimate for the quarter has not changed over the past 30 days, indicating that analysts have not revised their projections [1]. - Revisions to earnings estimates are crucial for predicting investor actions, as empirical research shows a strong correlation between earnings estimate trends and short-term stock price performance [2]. Group 2: Key Financial Metrics - Analysts project the 'Efficiency Ratio' to reach 58.1%, a decrease from 59.5% reported in the same quarter last year [4]. - The estimated 'Total noninterest income' is projected at $7.11 million, compared to $4.07 million from the previous year [4]. - 'Net Interest Income' is expected to be $66.28 million, down from $70.79 million year-over-year [4]. Group 3: Stock Performance - Eagle Bancorp shares have changed by -0.1% over the past month, contrasting with a +1.6% increase in the Zacks S&P 500 composite [5]. - The company holds a Zacks Rank of 3 (Hold), suggesting it is expected to perform in line with the overall market in the near future [5].

Core Viewpoint - Eagle Bancorp (EGBN) is set to report its Q4 financial results for 2025 on January 21, following two consecutive quarters of significant losses, indicating a critical need for positive momentum [1] Financial Performance - EGBN has experienced back-to-back quarters of substantial losses, highlighting ongoing struggles within the company [1] Market Context - The financial market is characterized by efficiency, with most stocks reflecting their real current value, suggesting that opportunities for profit may arise from less-followed stocks or those not accurately reflecting market opportunities [1]