BETHESDA, Md., Dec. 04, 2025 (GLOBE NEWSWIRE) -- EagleBank (NASDAQ: EGBN), one of the largest community banks in the Washington, D.C. area, today announced that the EagleBank Foundation has raised more than $500,000 at its annual Fight Against Cancer Golf Classic held on October 13, 2025, a new record for the event. Proceeds from the tournament will support research and outreach programs at the following local hospitals and organizations:  American Brain Tumor AssociationBrem Foundation Capital Area Food Ba ...

Financial Performance - For the three months ended September 30, 2025, net interest income was $68.2 million, a decrease of $3.7 million (approximately 5.1%) compared to $71.8 million for the same period in 2024[223] - Net loss for the three months ended September 30, 2025, was $67.5 million, compared to a net income of $21.8 million for the same period in 2024, representing a decrease of $89.3 million[224] - Pre-provision net revenue (PPNR) for the three months ended September 30, 2025, was $28.8 million, down from $35.2 million for the same period in 2024, a decrease of approximately 18.2%[225] - For the nine months ended September 30, 2025, net interest income was $201.6 million, a decrease of $16.3 million (approximately 7.5%) compared to $217.9 million for the same period in 2024[223] - PPNR for the nine months ended September 30, 2025, was $87.9 million, significantly higher than $3.7 million for the same period in 2024, indicating a substantial improvement[226] Credit Losses - The provision for credit losses for the three months ended September 30, 2025, was $113.2 million, an increase of $103.1 million compared to $10.1 million for the same period in 2024[223] - The significant increase in the provision for credit losses was the primary driver for the net loss reported for the three and nine months ended September 30, 2025[224] - Provision for credit losses for loans increased significantly to $113.2 million in Q3 2025 from $10.1 million in Q3 2024, reflecting a rise in net charge-offs[246] - The total charge-offs for the nine months ended September 30, 2025, amounted to $236.7 million, significantly higher than $29.5 million for the same period in 2024, with net charge-offs of $235.9 million[308] - The qualitative reserve for credit losses increased due to continued uncertainty in the commercial real estate market, particularly in the office sector[249] Noninterest Income and Expenses - Noninterest income for the three months ended September 30, 2025, was $2.5 million, a decrease of $4.5 million (approximately 64.2%) compared to $7.0 million for the same period in 2024[223] - Noninterest expense for the three months ended September 30, 2025, was $41.9 million, a decrease of $1.7 million (approximately 3.9%) compared to $43.6 million for the same period in 2024[223] - Total noninterest expense for Q3 2025 decreased by $1.7 million or 4% compared to Q3 2024, primarily due to lower legal, accounting, and professional fees[262] - For the first nine months of 2025, total noninterest expense decreased by $99.3 million or 43% compared to the same period in 2024, largely due to a $104.2 million goodwill impairment in 2024[263] Assets and Equity - As of September 30, 2025, total assets were $10.82 billion, a decrease of $314 million from $11.13 billion as of December 31, 2024, driven by a $630.2 million decrease in loans held for investment[270] - Total shareholders' equity decreased by 8% to $1.12 billion as of September 30, 2025, compared to $1.23 billion as of December 31, 2024[232] - The ratio of common equity to total assets decreased to 10.39% as of September 30, 2025, from 11.02% as of December 31, 2024[232] - Book value per share decreased by 8.87% to $37.00 as of September 30, 2025, from $40.60 as of December 31, 2024[275] Loan Portfolio - Loans held for investment decreased by $630.2 million or 7.9% to $7.3 billion as of September 30, 2025, with a notable shift towards commercial lending[279] - The loan portfolio consisted of 82% real estate-related loans as of September 30, 2025, with non-owner occupied commercial real estate representing 61% of the total[281] - The total loan portfolio as of September 30, 2025, was $7.3 billion, with $2.99 billion maturing in one year or less[296] - The Company has executed balance sheet optimization actions to reduce commercial real estate loan concentration, reflecting a strategic focus on improving portfolio resilience and risk-adjusted returns[294] Liquidity and Capital - As of September 30, 2025, the Company had primary sources of liquidity amounting to $2.1 billion, which included interest-bearing deposits and other short-term investments[363] - The total secondary sources of liquidity available as of September 30, 2025, were $4.8 billion, including FHLB unused availability and other brokered deposit programs[363] - The Company believes it has sufficient liquidity sources to meet current and projected funding needs, totaling $6.9 billion as of September 30, 2025[363] - The Company and the Bank exceeded all Basel III capital requirements, including a minimum CET1 ratio of 7.0%[372] Interest Rates and Margin - The cost of funds was 3.16% for the three months ended September 30, 2025, compared to 3.69% for the same period in 2024[236] - The net interest margin was 2.43% for the three months and 2.37% for the nine months ended September 30, 2025, compared to 2.37% and 2.40% for the same periods in 2024, reflecting a 6 basis point increase and a 3 basis point decrease, respectively[229] - The simulation analysis indicated a 26.2% increase in net interest income with a 400 basis point increase in interest rates over the next 12 months[398] - The Company experienced a decrease in 12-month net interest income of 6.8% with a 100 basis point decrease in market interest rates as of September 30, 2025[400] Nonperforming Assets - Nonperforming assets totaled $133.3 million as of September 30, 2025, representing 1.23% of total assets, down from $211.4 million or 1.90% of total assets as of December 31, 2024[312] - Total nonperforming loans had an amortized cost of $118.6 million as of September 30, 2025, representing 1.62% of total loans, a decrease from $208.7 million or 2.63% of total loans as of December 31, 2024[314] - The performing office coverage ratio was 11.36% as of September 30, 2025, up from 3.81% as of December 31, 2024[306] Dividends - The Company announced a quarterly cash dividend of $0.010 per share, payable on November 14, 2025[373]

Core Points - Susan G. Riel, the President and CEO of Eagle Bancorp, Inc., will retire in 2026, and the Board is conducting a search for her successor [1][2] - James A. Soltesz has been appointed as the independent Chair of the Board, and Louis P. Mathews Jr. as Vice Chair, effective immediately [2][3] - The Board expresses gratitude for Ms. Riel's leadership over the past seven years and emphasizes the importance of a seamless transition [3] Leadership Transition - The Board has engaged an executive search firm to assist in finding a successor for Ms. Riel [1] - Mr. Soltesz, who has been with the Board since 2007, aims to ensure the company's strategic direction remains focused on sustainable profitability and long-term growth during the transition [3][4] - Ms. Riel will continue to serve as a director while working with the Board to facilitate the transition [2][3] Background of New Leadership - James A. Soltesz has extensive experience in engineering and real estate development, having served as President and CEO of Soltesz, Inc. since 2001 [4][5] - Louis P. Mathews Jr. has over 45 years of experience in banking, previously serving as Senior Executive Vice President at M&T Bank [7][8] - Both new leaders bring significant industry experience and community involvement to their roles [5][9] Company Overview - Eagle Bancorp, Inc. is the holding company for EagleBank, which has been operational since 1998 and is headquartered in Bethesda, Maryland [10] - The bank operates through twelve banking offices and four lending offices in Suburban Maryland, Washington, D.C., and Northern Virginia [10] - The company focuses on building relationships with businesses and individuals while promoting a culture of respect and inclusion [10]

Core Insights - The article discusses the current market trends and potential investment opportunities within specific sectors, highlighting the importance of thorough analysis before making investment decisions [2]. Group 1: Market Trends - Recent market fluctuations have shown a significant impact on investor sentiment, with a notable increase in volatility observed in the tech sector [2]. - Analysts are focusing on the performance of companies that have demonstrated resilience during economic downturns, particularly those with strong balance sheets [2]. Group 2: Investment Opportunities - There is a growing interest in renewable energy companies, driven by government incentives and a shift towards sustainable practices [2]. - The healthcare sector is also highlighted as a potential area for investment, especially companies involved in innovative treatments and technologies [2]. Group 3: Risks and Considerations - Investors are advised to remain cautious due to potential regulatory changes that could affect various industries, particularly in technology and healthcare [2]. - The importance of diversifying investment portfolios to mitigate risks associated with market volatility is emphasized [2].

Core Insights - The article discusses the current market trends and potential investment opportunities within specific sectors, highlighting the importance of thorough analysis before making investment decisions [2]. Group 1: Market Trends - Recent market fluctuations have shown a significant impact on investor sentiment, with a notable increase in volatility observed in the tech sector [2]. - Analysts are focusing on the recovery patterns of various industries post-pandemic, particularly in consumer discretionary and travel sectors, which are showing signs of rebound [2]. Group 2: Investment Opportunities - There are emerging opportunities in renewable energy companies, driven by increased government incentives and consumer demand for sustainable solutions [2]. - The healthcare sector is also highlighted as a potential area for growth, especially companies involved in biotechnology and telehealth services, which have gained traction during the pandemic [2].

Group 1 - The article does not provide any relevant content regarding company or industry insights [1]

Financial Data and Key Metrics Changes - The company reported a net loss of $67.5 million, or $2.22 per share, compared to a loss of $69.8 million, or $2.30 per share in the previous quarter [13] - Tangible common equity to tangible assets is at 10.39%, with Tier 1 leverage ratio slightly declining to 10.4% and CET1 at 13.58% [13] - Tangible book value per share decreased by $2.03 to $37, reflecting credit cleanup rather than core earnings erosion [13] Business Line Data and Key Metrics Changes - C&I loans increased by $105 million, representing the majority of loan originations for the quarter [6] - Average C&I deposits grew by 8.6%, or $134.2 million, indicating relationship growth and new account activity [6] - Non-interest income totaled $2.5 million, down from $6.4 million in the previous quarter, primarily due to loan loss sales [15] Market Data and Key Metrics Changes - Total criticized and classified office loans declined from $302 million at the end of March to $113.1 million at September 30 [9] - Non-performing loans decreased from $226.4 million to $118.6 million, reflecting transfers to held-for-sale status and charge-offs [10] - Total criticized and classified loans rose to $958 million from $875 million, with office loans declining while multifamily loans increased [11] Company Strategy and Development Direction - The company is focused on completing credit cleanup, deepening core relationships, and improving earnings performance to drive shareholder value [8] - The strategic plan includes diversifying the balance sheet, improving margins, and reducing reliance on wholesale funding [7] - The company anticipates loan growth in 2026 to be concentrated in C&I, with a disciplined approach to credit standards [19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence that they are nearing the end of elevated losses from decreased asset values and are addressing valuation stress in the office market [4] - The independent loan review confirmed the adequacy of current provisioning, supporting management's view of the portfolio [16] - Provisions are expected to be manageable moving forward, with improved earnings anticipated in 2026 [21] Other Important Information - The company announced the voluntary resignation of Chief Credit Officer Kevin Geoghegan, with interim replacements appointed [21][22] - The independent loan review covered over 400 loans, representing 84.9% of the commercial loan book, assessing potential losses over a 30-month horizon [16] Q&A Session Summary Question: Concerns about further losses on loan sales - Management indicated that they are implementing better valuation tools and placing carrying values at the lower end of ranges to avoid previous issues [25][26] Question: Timing for asset disposals - Management expects material actions to occur during the fourth quarter of 2025, with ongoing discussions about individual assets [28] Question: Future charge-offs and impact on provisions - Management does not anticipate significant charge-off activity impacting provision expenses in the upcoming quarter [29][30] Question: Clarification on multifamily loan performance - Management noted that while debt service coverage is stressed, the actual performance of many properties is at or above underwritten expectations [32] Question: Impact of government shutdown on government contracts - Management has not seen significant concerns in the government contracting space due to the shutdown, with ongoing communication with clients [38] Question: Future inflow of criticized and classified loans - Management expects a dramatic slowdown in the inflow of criticized and classified loans moving into 2026 [44][45] Question: Comments on Kevin Geoghegan's departure - Management expressed gratitude for Geoghegan's contributions and emphasized the continuity of credit risk management processes with interim appointments [52][53] Question: Potential for M&A activity and franchise value - Management is focused on strategic plans to build shareholder value through diversification and improving pre-provision net revenue [70][71]

Financial Data and Key Metrics Changes - The company reported a net loss of $67.5 million, or $2.22 per share, compared to a loss of $69.8 million, or $2.30 per share in the previous quarter [13] - Tangible common equity to tangible assets is at 10.39%, with a slight decline in Tier 1 leverage ratio to 10.4% and CET1 to 13.58% [13] - Pre-provision net revenue was $28.8 million, down from the prior quarter, but adjusted for loan sale losses, it increased to $32.3 million [14] - Net interest income grew to $68.2 million, reflecting a modest increase [14] - Non-interest income decreased to $2.5 million from $6.4 million, primarily due to loan loss sales [15] Business Line Data and Key Metrics Changes - C&I loans increased by $105 million, representing the majority of loan originations for the quarter [6] - Average C&I deposits grew by 8.6%, or $134.2 million, indicating strong relationship growth and client retention [6] - Total criticized and classified office loans declined from $302 million to $113.1 million over two consecutive quarters [9] - Non-performing loans decreased from $226.4 million to $118.6 million, reflecting a significant improvement [10] Market Data and Key Metrics Changes - The company moved $121 million of criticized office loans to held-for-sale status, indicating proactive asset management [4] - The multifamily segment saw an increase in criticized and classified loans by $204 million, attributed to higher interest rates affecting debt service coverage [11] - The company noted that net operating income levels remain at or above underwritten expectations across most of the portfolio [11] Company Strategy and Development Direction - The company is focused on completing credit cleanup, deepening core relationships, and improving earnings performance to enhance shareholder value [8] - A disciplined approach is being taken to resolve loan challenges, with an emphasis on local knowledge and tailored solutions [4][7] - The strategic plan includes diversifying the balance sheet, improving margins, and reducing reliance on wholesale funding [7] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence that they are nearing the end of elevated losses from decreased asset values [4] - The independent loan review confirmed the adequacy of current provisioning, supporting management's view of the portfolio [16] - Looking ahead, the company anticipates manageable provisions and improved earnings in 2026 [21] Other Important Information - The company announced the voluntary resignation of Chief Credit Officer Kevin Geoghegan, with interim replacements appointed [21][22] - The independent loan review covered over 400 loans, representing 84.9% of the commercial loan book, assessing potential losses under various economic scenarios [16] Q&A Session Summary Question: Concerns about future losses on loan sales - Management indicated that they have implemented a process to determine carrying values based on brokers' opinions to avoid previous issues [25][26] Question: Timeline for asset disposals - Management expects material actions to occur during the fourth quarter of 2025 regarding asset disposals [28] Question: Future charge-offs and impact on provisions - Management does not anticipate significant charge-off activity impacting provision expenses in the upcoming quarter [29][30] Question: Clarification on multifamily loan performance - Management noted that while debt service coverage is stressed, the actual performance of many properties is at or above expectations [32] Question: Impact of government shutdown on contracts - Management has not seen significant concerns in the government contracting space due to the shutdown, with ongoing communication with clients [38] Question: Future inflow of criticized and classified loans - Management expects a dramatic slowdown in the inflow of criticized and classified loans into 2026 [45][46] Question: Temporary cash flow issues in multifamily space - Management clarified that cash flow issues are expected to improve over time, leading to better asset valuations [49][50] Question: Franchise value and M&A activity - Management is focused on strategic plans to build shareholder value through diversification and improving funding profiles [70][71]

Financial Data and Key Metrics Changes - The company reported a net loss of $67.5 million, or $2.22 per share, compared to a loss of $69.8 million, or $2.30 per share in the previous quarter [13][14] - Tangible common equity to tangible assets is at 10.39%, with a slight decline in Tier 1 leverage ratio to 10.4% and CET1 to 13.58% [13][14] - Tangible book value per share decreased by $2.03 to $37, reflecting credit cleanup rather than core earnings erosion [13][14] Business Line Data and Key Metrics Changes - C&I loans increased by $105 million, representing the majority of loan originations for the quarter [6] - Average C&I deposits grew by 8.6%, or $134.2 million, indicating relationship growth and new account activity [6] - Non-interest income totaled $2.5 million, down from $6.4 million last quarter, primarily due to loan loss sales [15] Market Data and Key Metrics Changes - Total criticized and classified office loans declined from $302 million at the end of March to $113.1 million at September 30 [10] - Non-performing loans decreased from $226.4 million to $118.6 million, reflecting transfers to held-for-sale status and charge-offs [11] - Total criticized and classified loans rose to $958 million from $875 million last quarter, with multifamily loans increasing by $204 million [12] Company Strategy and Development Direction - The company is focused on completing credit cleanup, deepening core relationships, and improving earnings performance to drive shareholder value [9] - The strategic plan includes diversifying the balance sheet, improving margins, and reducing reliance on wholesale funding [7][8] - The company anticipates loan growth in 2026 to be concentrated in C&I, with a strong focus on disciplined credit standards [20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence that they are nearing the end of elevated losses from decreased asset values and that provisions will be manageable moving forward [5][22] - The independent loan review confirmed the adequacy of current reserves, with potential losses identified being largely in line with internal assessments [18][19] - The company expects net interest income to grow despite a smaller balance sheet, driven by lower funding costs [20] Other Important Information - The Chief Credit Officer, Kevin Geoghegan, announced his voluntary resignation, with interim replacements appointed [22][23] - The company engaged a nationally recognized loan review firm to conduct an independent credit evaluation of its portfolios [16][17] Q&A Session Summary Question: Can you talk about the comfort level regarding potential further losses on closed transactions? - Management indicated that they have implemented a process to determine carrying values based on brokers' opinions, which are considered more reliable than appraisals [27][28] Question: What is the timeline for getting assets off the balance sheet? - Management expects material action to occur during the fourth quarter of 2025, with ongoing discussions with potential buyers [30] Question: What are the expectations for charge-offs in the next quarter? - Management does not anticipate significant charge-off activity impacting book value in the upcoming quarter [31][32] Question: Can you elaborate on the multifamily loans and the increase in criticized balances? - Management noted that while there are challenges in debt service coverage due to interest rates, the underlying property performance remains stable [34][35] Question: How does the company view the government contract business amid the shutdown? - Management has not seen significant concerns in the government contracting space, with ongoing communication with relationship managers [40][41] Question: What are the expectations for criticized classified loans moving into 2026? - Management expects a decline in criticized classified loans into 2026 based on recent reviews and assessments [45][46] Question: How does the company view the potential for M&A activity? - The board is open to any options that add value to shareholders, focusing on strategic plans and diversification efforts [68][70]

Financial Data and Key Metrics Changes - The company reported a net loss of $67.5 million or $2.22 per share, compared to a loss of $69.8 million or $2.30 per share in the previous quarter [16] - The tangible common equity to tangible assets ratio is 10.39%, with a slight decline in the Tier one leverage ratio to 10.4% and CET1 to 13.58% [16] - The tangible book value per share decreased by $2.30 to $37, reflecting credit cleanup rather than core earnings erosion [17] Business Line Data and Key Metrics Changes - C and I loans increased by $105 million, representing the majority of loan originations for the quarter [8] - Average C and I deposits grew by 8.6% or $134.2 million, indicating relationship growth and client retention [8] - Non-interest income totaled $2.5 million, down from $6.4 million in the previous quarter, primarily due to loan loss sales [19] Market Data and Key Metrics Changes - Total criticized and classified office loans declined to $113.1 million from a peak of $320 million [11] - Nonperforming loans decreased to $118.6 million, down $108 million from the prior quarter [13] - Nonperforming assets improved to 1.23% of total assets, a 93 basis point improvement from the last quarter [14] Company Strategy and Development Direction - The company is focused on completing credit cleanup, deepening core relationships, and improving earnings performance to enhance shareholder value [10] - The strategic plan includes diversifying the balance sheet, improving margins, and reducing reliance on wholesale funding [9] - The company anticipates loan growth in 2026 will be concentrated in C and I, with a disciplined approach to credit standards [25] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence that they are nearing the end of elevated losses from decreased asset values [5] - The independent loan review confirmed the adequacy of current provisioning, supporting management's view of the portfolio [21] - The company expects provisions to be manageable and earnings to improve in 2026, with a focus on sustainable profitability [28] Other Important Information - The Chief Credit Officer, Kevin Gagan, announced his voluntary resignation effective December 31, with interim replacements appointed [29] - The company engaged a nationally recognized loan review firm to conduct an independent credit evaluation of its portfolios [20] Q&A Session Summary Question: Concerns about future losses on closed transactions - Management indicated that they are implementing brokers' opinions for better valuation and are confident in the carrying values of loans held for sale [35] Question: Timing for asset disposals - Management expects material action in the fourth quarter regarding asset disposals, with ongoing discussions with potential buyers [38] Question: Future charge-offs and provisions - Management does not anticipate significant charge-off activity impacting provision expense in the upcoming quarter [39] Question: Performance of multifamily loans - Management noted that multifamily loans are performing at or above underwritten expectations, despite some pressure from interest rates [42] Question: Impact of government shutdown on government contracts - Management has not seen significant concerns in the government contracting space due to the shutdown, with a 30% decrease in line of credit usage [49] Question: Clarification on credit categorization changes - The independent loan review provided current information that led to some loans being categorized as special mention or substandard [80] Question: Comparison of office and multifamily loan issues - Management clarified that structural issues in the office market are significant, while multifamily loans do not face the same level of challenges [82]