Core Insights - Eagle Bancorp (EGBN) reported a quarterly loss of $2.22 per share, significantly worse than the Zacks Consensus Estimate of a loss of $0.3, and down from earnings of $0.72 per share a year ago, indicating an earnings surprise of -640.00% [1] - The company posted revenues of $70.65 million for the quarter ended September 2025, missing the Zacks Consensus Estimate by 7.12% and down from $78.79 million year-over-year [2] - Eagle Bancorp shares have declined approximately 25.2% year-to-date, contrasting with the S&P 500's gain of 14.5% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is -$0.17 on revenues of $76.82 million, and for the current fiscal year, it is -$2.70 on revenues of $301.89 million [7] - The estimate revisions trend for Eagle Bancorp was mixed ahead of the earnings release, resulting in a Zacks Rank 3 (Hold), suggesting the stock is expected to perform in line with the market in the near future [6] Industry Context - The Zacks Industry Rank for Banks - Northeast is currently in the top 29% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8] - Another company in the same industry, Capital Bancorp (CBNK), is expected to report quarterly earnings of $0.88 per share, reflecting a year-over-year increase of +33.3%, with revenues projected at $62.8 million, up 39.6% from the previous year [9]

Third Quarter 2025 Earnings Announcement [Overview of Q3 2025 Results](index=1&type=section&id=Overview%20of%20Q3%202025%20Results) Eagle Bancorp, Inc. reported a net loss of $67.5 million, or $2.22 per share, for the third quarter of 2025, an improvement of $2.3 million from the prior quarter's net loss of $69.8 million. This improvement was primarily driven by a $24.9 million decrease in provision expense, partially offset by a $22.5 million reduction in tax benefit. Pre-provision net revenue (PPNR) decreased to $28.8 million from $30.7 million due to a $3.6 million loss on the sale of loans | Metric | Q3 2025 (in millions) | Q2 2025 (in millions) | Change (QoQ, in millions) | | :-------------------------- | :-------- | :-------- | :----------- | | Net Loss | $(67.5) | $(69.8) | +$2.3 | | EPS ($) | $(2.22) | $(2.30) | +$0.08 | | PPNR (in millions) | $28.8 | $30.7 | $(1.9) | | Provision Expense (Change QoQ, in millions) | | | -$24.9 | | Tax Benefit (Change QoQ, in millions) | | | -$22.5 | | Net Interest Income (Change QoQ, in thousands) | | | +$383 | | Noninterest Income (Change QoQ, in millions) | | | -$3.9 | | Noninterest Expenses (Change QoQ, in millions) | | | -$1.6 | [Management's Strategic Commentary](index=2&type=section&id=Management%27s%20Strategic%20Commentary) CEO Susan G. Riel emphasized the company's ongoing strategy to address asset quality challenges within its loan portfolio, highlighting disciplined credit risk management and actions taken to reduce valuation risk in the office portfolio. She affirmed the core franchise's soundness and resilience, supported by strong capital, liquidity, and customer relationships - The Company continued to execute its strategy to resolve asset quality challenges within the loan portfolio[5](index=5&type=chunk) - Credit costs recognized reflect a commitment to managing credit risk with **discipline and accountability**, including actions to reduce valuation risk in the office portfolio[5](index=5&type=chunk) - The core franchise remains **sound and resilient**, with capital, liquidity, and customer relationships providing a strong foundation[5](index=5&type=chunk) Key Financial Highlights [Dividend Declaration](index=3&type=section&id=Dividend%20Declaration) Eagle Bancorp, Inc. announced a cash dividend of $0.01 per share, payable on November 14, 2025, to shareholders of record as of November 3, 2025 - A cash dividend of **$0.01 per share** was declared[7](index=7&type=chunk)[8](index=8&type=chunk) - The dividend is payable on **November 14, 2025**, to shareholders of record on **November 3, 2025**[7](index=7&type=chunk) [Loan and Deposit Trends](index=3&type=section&id=Loan%20and%20Deposit%20Trends) The company experienced an increase in C&I loans and average C&I deposits, alongside an overall increase in total deposits. However, total loans, including loans held for sale, decreased by 4% from the prior quarter, primarily due to declines in income-producing real estate loans - Total C&I loans (including owner-occupied) increased **$105 million** from the previous quarter[8](index=8&type=chunk) - Average C&I deposits increased **$134 million**, or **8.6%**, from the previous quarter[8](index=8&type=chunk) - Total loans, including loans held for sale, were **$7.4 billion** at September 30, 2025, down **4%** from the prior quarter-end, driven by declines in income-producing real estate loans[12](index=12&type=chunk)[14](index=14&type=chunk) - Total deposits at quarter-end were **$9.5 billion**, up **$0.3 billion (4%) QoQ** and **$0.9 billion YoY**, primarily due to higher money market balances[15](index=15&type=chunk) [Asset Quality Metrics](index=3&type=section&id=Asset%20Quality%20Metrics) Asset quality showed mixed results: the Allowance for Credit Losses (ACL) as a percentage of total loans decreased, and nonperforming assets significantly declined. However, annualized quarterly net charge-offs increased, and substandard and special mention loans also rose | Metric | Sep 30, 2025 | Jun 30, 2025 | Change (QoQ) | | :----------------------------------- | :----------- | :----------- | :----------- | | ACL as % of total loans (%) | 2.14% | 2.38% | -0.24% | | Performing office coverage (%) | 11.36% | 11.54% | -0.18% | | Nonperforming assets (in millions) | $133.3 | $228.9 | -$95.6 | | NPAs as % of total assets (%) | 1.23% | 2.16% | -0.93% | | Substandard and special mention loans (in millions) | $958.5 | $875.4 | +$83.1 | | Annualized quarterly net charge-offs (%) | 7.36% | 4.22% | +3.14% | | Net charge-offs (absolute, in millions) | $140.8 | $83.9 | +$56.9 | | Loans 30-89 days past due (in millions) | $29.1 | $34.7 | -$5.6 | [Net Interest Margin and Liquidity](index=3&type=section&id=Net%20Interest%20Margin%20and%20Liquidity) The net interest margin improved to 2.43% for Q3 2025, primarily due to a reduction in interest-earning assets. The company maintained robust liquidity, with total on-balance sheet liquidity and available capacity of $5.3 billion, providing over 230% coverage for uninsured deposits - The net interest margin (NIM) increased to **2.43%** for Q3 2025, up from **2.37%** in the prior quarter, driven by the reduction in interest earning assets associated with a decline in nonaccrual loan balances in the CRE loan portfolio[8](index=8&type=chunk) - Total estimated insured deposits increased to **$7.2 billion**, representing **75.6%** of deposits, compared to **$6.8 billion (75.0%)** in the prior quarter[10](index=10&type=chunk) - Total on-balance sheet liquidity and available capacity was **$5.3 billion**, providing a coverage ratio of over **230%** for **$2.3 billion** in uninsured deposits[10](index=10&type=chunk) [Capital Position](index=4&type=section&id=Capital%20Position) Capital ratios remained strong, with the common equity tier 1 capital ratio at 13.58%. However, total shareholders' equity and book value per share both decreased by 5.2% from the prior quarter-end, primarily due to quarterly losses | Capital Ratio | Sep 30, 2025 | | :----------------------------------- | :----------- | | Common equity ratio (%) | 10.39% | | Tangible common equity ratio (%) | 10.39% | | Common equity tier 1 capital ratio (%) | 13.58% | - Total shareholders' equity was **$1.1 billion** at September 30, 2025, down **5.2%** from the prior quarter-end, primarily due to quarterly losses[19](index=19&type=chunk) - Book value per share and tangible book value per share were both **$37.00**, down **5.2%** from the prior quarter-end[19](index=19&type=chunk) Consolidated Financial Statements [Consolidated Statements of Operations](index=5&type=section&id=Consolidated%20Statements%20of%20Operations) For the third quarter of 2025, Eagle Bancorp reported a net loss of $67.5 million, an improvement from the previous quarter's loss. This was influenced by a decrease in provision for credit losses and noninterest expenses, partially offset by a significant decline in noninterest income due to losses on loan and investment securities sales Consolidated Statements of Operations (Unaudited) - Three Months Ended | Metric | Sep 30, 2025 (in thousands) | Jun 30, 2025 (in thousands) | Sep 30, 2024 (in thousands) | | :----------------------------------- | :----------- | :----------- | :----------- | | Total interest income | $150,103 | $151,443 | $173,813 | | Total interest expense | $81,944 | $83,667 | $101,970 | | Net Interest Income | $68,159 | $67,776 | $71,843 | | Provision for Credit Losses | $113,215 | $138,159 | $10,094 | | Total Noninterest Income | $2,495 | $6,414 | $6,951 | | Total Noninterest Expense | $41,897 | $43,470 | $43,614 | | Net (Loss) Income | $(67,513) | $(69,775) | $21,815 | | Basic EPS ($) | $(2.22) | $(2.30) | $0.72 | | Diluted EPS ($) | $(2.22) | $(2.30) | $0.72 | - Net interest income increased **$383 thousand QoQ**, primarily driven by lower funding costs on brokered time deposits and a reduction in average short-term borrowings[13](index=13&type=chunk) - Provision for credit losses decreased to **$113.2 million** from **$138.2 million QoQ**, primarily due to lower office-related reserves, despite net charge-offs increasing to **$140.8 million**[13](index=13&type=chunk) - Noninterest income declined by **$3.9 million QoQ**, mainly due to a **$3.6 million** loss on the sale of two loans and a **$2.0 million** loss on the sale of investment securities[13](index=13&type=chunk) - Noninterest expense decreased by **$1.6 million QoQ**, primarily due to decreases in the FDIC assessment[13](index=13&type=chunk) [Consolidated Balance Sheets](index=13&type=section&id=Consolidated%20Balance%20Sheets) As of September 30, 2025, total assets increased to $10.8 billion, while total loans (net) decreased. Total deposits grew to $9.5 billion, and other short-term borrowings were fully repaid. Total shareholders' equity decreased to $1.1 billion Consolidated Balance Sheets (Unaudited) | Metric | Sep 30, 2025 (in thousands) | Jun 30, 2025 (in thousands) | Sep 30, 2024 (in thousands) | | :----------------------------------- | :----------- | :----------- | :----------- | | Total Assets | $10,815,502 | $10,601,331 | $11,285,052 | | Loans, net | $7,148,451 | $7,537,868 | $7,858,402 | | Total Deposits | $9,463,559 | $9,119,607 | $8,540,850 | | Other short-term borrowings | $0 | $50,000 | $1,240,000 | | Total Liabilities | $9,692,026 | $9,416,264 | $10,059,628 | | Total Shareholders' Equity | $1,123,476 | $1,185,067 | $1,225,424 | - Total loans, including loans held for sale, were **$7.4 billion** at September 30, 2025, down **4%** from the prior quarter-end, primarily due to declines in income-producing real estate loans[12](index=12&type=chunk)[14](index=14&type=chunk) - Total deposits increased by **$0.3 billion (4%) QoQ**, driven by higher balances in money market accounts, offsetting lower brokered time deposits[15](index=15&type=chunk) - Other short-term borrowings were **zero** at September 30, 2025, as FHLB borrowings were repaid with excess cash from core deposit growth and sale of investment securities[15](index=15&type=chunk) [Loan Mix and Asset Quality](index=15&type=section&id=Loan%20Mix%20and%20Asset%20Quality) The loan portfolio composition shifted, with commercial loans increasing their share while income-producing commercial real estate and construction loans decreased. Asset quality metrics showed a reduction in nonperforming loans and assets, but a notable increase in net charge-offs and special mention loans Loan Balances - Period End | Loan Type | Sep 30, 2025 (in thousands) | Sep 30, 2025 (%) | Jun 30, 2025 (in thousands) | Jun 30, 2025 (%) | Sep 30, 2024 (in thousands) | Sep 30, 2024 (%) | | :----------------------------------- | :-------------------- | :--------------- | :-------------------- | :--------------- | :-------------------- | :--------------- | | Commercial | $1,217,805 | 17% | $1,207,512 | 15% | $1,154,349 | 14% | | Income producing - commercial real estate | $3,453,033 | 47% | $3,768,884 | 48% | $4,155,120 | 52% | | Owner occupied - commercial real estate | $1,494,711 | 20% | $1,365,901 | 18% | $1,276,240 | 16% | | Construction - commercial and residential | $1,010,367 | 14% | $1,211,728 | 16% | $1,174,591 | 15% | | Total loans | $7,304,679 | 100% | $7,721,664 | 100% | $7,970,269 | 100% | Asset Quality Metrics | Asset Quality Metric | Sep 30, 2025 (in thousands) | Jun 30, 2025 (in thousands) | Sep 30, 2024 (in thousands) | | :----------------------------------- | :----------- | :----------- | :----------- | | Nonperforming loans | $118,647 | $226,420 | $134,371 | | Other real estate owned | $14,684 | $2,459 | $2,743 | | Nonperforming assets | $133,331 | $228,879 | $137,114 | | Net charge-offs | $140,813 | $83,877 | $5,303 | | Special mention | $423,685 | $173,311 | $364,983 | | Substandard | $534,789 | $702,128 | $391,301 | Average Balances, Interest Yields And Rates Analysis [Quarter-over-Quarter Comparison (Q3 2025 vs Q2 2025)](index=17&type=section&id=Quarter-over-Quarter%20Comparison%20(Q3%202025%20vs%20Q2%202025)) Comparing Q3 2025 to Q2 2025, net interest income saw a slight increase, and the net interest margin improved by 6 basis points. The cost of funds remained relatively stable, while average interest-earning assets and interest-bearing liabilities both experienced decreases Average Balances, Interest Yields And Rates (Q3 2025 vs Q2 2025) | Metric | Q3 2025 | Q2 2025 | Change (QoQ) | | :-------------------------- | :-------- | :-------- | :----------- | | Net interest income (in thousands) | $68,159 | $67,776 | +$383 | | Net interest spread (%) | 1.48% | 1.43% | +0.05% | | Net interest margin (%) | 2.43% | 2.37% | +0.06% | | Cost of funds (%) | 3.16% | 3.17% | -0.01% | | Average Total interest earning assets (in thousands) | $11,137,543 | $11,487,006 | -$349,463 | | Average Total interest bearing liabilities (in thousands) | $8,420,694 | $8,687,505 | -$266,811 | [Year-over-Year Comparison (Q3 2025 vs Q3 2024)](index=19&type=section&id=Year-over-Year%20Comparison%20(Q3%202025%20vs%20Q3%202024)) On a year-over-year basis (Q3 2025 vs Q3 2024), net interest income decreased, despite an improvement in both net interest spread and net interest margin. The cost of funds saw a significant reduction, while average interest-earning assets and interest-bearing liabilities both declined Average Balances, Interest Yields And Rates (Q3 2025 vs Q3 2024) | Metric | Q3 2025 | Q3 2024 | Change (YoY) | | :-------------------------- | :-------- | :-------- | :----------- | | Net interest income (in thousands) | $68,159 | $71,843 | -$3,684 | | Net interest spread (%) | 1.48% | 1.26% | +0.22% | | Net interest margin (%) | 2.43% | 2.37% | +0.06% | | Cost of funds (%) | 3.16% | 3.69% | -0.53% | | Average Total interest earning assets (in thousands) | $11,137,543 | $12,072,891 | -$935,348 | | Average Total interest bearing liabilities (in thousands) | $8,420,694 | $9,083,484 | -$662,790 | Quarterly Financial Trends and Ratios [Income Statement Trends](index=21&type=section&id=Income%20Statement%20Trends) Over the past five quarters, the company has shifted from reporting net income to consecutive net losses in Q2 and Q3 2025. Net interest income has shown a slight decline, while provision for credit losses has been highly volatile, peaking in Q2 2025 Income Statement Quarterly Trends (in thousands) | Metric | Q3 2025 (in thousands) | Q2 2025 (in thousands) | Q1 2025 (in thousands) | Q4 2024 (in thousands) | Q3 2024 (in thousands) | | :-------------------------- | :-------- | :-------- | :-------- | :-------- | :-------- | | Total interest income | $150,103 | $151,443 | $153,878 | $168,417 | $173,813 | | Total interest expense | $81,944 | $83,667 | $88,229 | $97,623 | $101,970 | | Net interest income | $68,159 | $67,776 | $65,649 | $70,794 | $71,843 | | Provision for credit losses | $113,215 | $138,159 | $26,255 | $12,132 | $10,094 | | Net (loss) income | $(67,513) | $(69,775) | $1,675 | $15,290 | $21,815 | [Per Share Data Trends](index=21&type=section&id=Per%20Share%20Data%20Trends) Basic and diluted earnings per share have turned negative in the most recent two quarters, following positive results in prior periods. Book value and tangible book value per common share have also shown a consistent downward trend, while the dividend per common share was significantly reduced in Q3 2025 Per Share Data Quarterly Trends | Metric | Q3 2025 ($) | Q2 2025 ($) | Q1 2025 ($) | Q4 2024 ($) | Q3 2024 ($) | | :----------------------------------- | :-------- | :-------- | :-------- | :-------- | :-------- | | Basic EPS | $(2.22) | $(2.30) | $0.06 | $0.51 | $0.72 | | Diluted EPS | $(2.22) | $(2.30) | $0.06 | $0.50 | $0.72 | | Book value per common share | $37.00 | $39.03 | $40.99 | $40.60 | $40.61 | | Tangible book value per common share | $37.00 | $39.03 | $40.99 | $40.59 | $40.61 | | Dividend per common share | $0.010 | $0.165 | $0.165 | $0.165 | $0.165 | [Performance Ratios Quarterly Trends](index=21&type=section&id=Performance%20Ratios%20Quarterly%20Trends) Profitability ratios, including Return on average assets and Return on average common equity, have become negative in the last two quarters. The net interest margin has remained relatively stable, while the efficiency ratio has shown some fluctuation, increasing in Q3 2025 Performance Ratios Quarterly Trends | Metric | Q3 2025 (%) | Q2 2025 (%) | Q1 2025 (%) | Q4 2024 (%) | Q3 2024 (%) | | :----------------------------------- | :-------- | :-------- | :-------- | :-------- | :-------- | | Return on average assets | (2.31) | (2.33) | 0.06 | 0.48 | 0.70 | | Return on average common equity | (22.66) | (22.35) | 0.55 | 4.94 | 7.22 | | Return on average tangible common equity | (22.66) | (22.35) | 0.55 | 4.94 | 7.22 | | Net interest margin | 2.43 | 2.37 | 2.28 | 2.29 | 2.37 | | Efficiency ratio | 59.30 | 58.60 | 59.50 | 61.50 | 55.40 | [Other Ratios Quarterly Trends](index=21&type=section&id=Other%20Ratios%20Quarterly%20Trends) Asset quality ratios indicate an increase in the allowance for credit losses relative to nonperforming loans, while nonperforming assets to total assets decreased. Net charge-offs to average total loans significantly increased in Q3 2025. Capital ratios, including Common equity tier 1 and Tangible common equity, have shown slight declines but remain robust Other Ratios Quarterly Trends | Metric | Q3 2025 (%) | Q2 2025 (%) | Q1 2025 (%) | Q4 2024 (%) | Q3 2024 (%) | | :----------------------------------- | :-------- | :-------- | :-------- | :-------- | :-------- | | Allowance for credit losses to total loans | 2.14 | 2.38 | 1.63 | 1.44 | 1.40 | | Allowance for credit losses to total nonperforming loans | 131.67 | 81.17 | 64.59 | 54.81 | 83.25 | | Nonperforming assets to total assets | 1.23 | 2.16 | 1.79 | 1.90 | 1.22 | | Net charge-offs (annualized) to average total loans | 7.36 | 4.22 | 0.57 | 0.48 | 0.26 | | Common equity tier 1 capital (to risk weighted assets) | 13.58 | 14.01 | 14.61 | 14.63 | 14.30 | | Tangible common equity ratio | 10.39 | 11.18 | 11.00 | 11.02 | 10.86 | [Average Balances Quarterly Trends](index=22&type=section&id=Average%20Balances%20Quarterly%20Trends) Average total assets, earning assets, and loans have generally decreased over the past five quarters. Conversely, average total deposits have shown an increasing trend, while average total borrowings have significantly reduced Average Balances Quarterly Trends (in thousands) | Metric | Q3 2025 (in thousands) | Q2 2025 (in thousands) | Q1 2025 (in thousands) | Q4 2024 (in thousands) | Q3 2024 (in thousands) | | :-------------------------- | :---------- | :---------- | :---------- | :---------- | :---------- | | Total assets | $11,597,399 | $11,989,095 | $12,118,190 | $12,575,722 | $12,360,899 | | Total earning assets | $11,137,543 | $11,487,006 | $11,640,162 | $12,303,940 | $12,072,891 | | Total loans | $7,648,459 | $7,942,333 | $7,933,695 | $7,971,907 | $8,026,524 | | Total deposits | $10,163,215 | $10,226,095 | $9,883,233 | $10,056,463 | $9,344,414 | | Total borrowings | $131,225 | $355,914 | $794,940 | $1,118,276 | $1,654,736 | | Total shareholders' equity | $1,182,148 | $1,252,252 | $1,242,805 | $1,230,573 | $1,201,477 | GAAP Reconciliation to Non-GAAP Financial Measures [Tangible Common Equity](index=25&type=section&id=Tangible%20Common%20Equity) The company provides a reconciliation of common shareholders' equity to tangible common equity, which excludes intangible assets. This non-GAAP measure is considered important for evaluating capital adequacy and comparing financial institutions, aligning with bank regulatory capital calculations Tangible Common Equity Reconciliation (in thousands) | Metric | Sep 30, 2025 (in thousands) | Jun 30, 2025 (in thousands) | Sep 30, 2024 (in thousands) | | :----------------------------------- | :----------- | :----------- | :----------- | | Common shareholders' equity | $1,123,476 | $1,185,067 | $1,225,424 | | Less: Intangible assets | $0 | $9 | $21 | | Tangible common equity | $1,123,476 | $1,185,058 | $1,225,403 | | Tangible common equity ratio (%) | 10.39% | 11.18% | 10.86% | | Tangible book value per common share ($) | $37.00 | $39.03 | $40.61 | | Return on average tangible common equity (%) | (22.66)% | (22.35)% | 7.22% | - Tangible common equity is a non-GAAP measure consistent with bank regulatory capital calculations, useful for investors, regulators, and management to evaluate **capital adequacy**[51](index=51&type=chunk) [Efficiency Ratio](index=25&type=section&id=Efficiency%20Ratio) The efficiency ratio, a non-GAAP measure, is calculated by dividing GAAP noninterest expense by the sum of GAAP net interest income and GAAP noninterest income. It serves to measure a bank's overhead as a percentage of its revenue and its effectiveness in controlling operational activities Efficiency Ratio Calculation (in thousands) | Metric | Q3 2025 (in thousands) | Q2 2025 (in thousands) | Q3 2024 (in thousands) | | :-------------------------- | :-------- | :-------- | :-------- | | Net interest income | $68,159 | $67,776 | $71,843 | | Noninterest income | $2,495 | $6,414 | $6,951 | | Operating revenue | $70,654 | $74,190 | $78,794 | | Noninterest expense | $41,897 | $43,470 | $43,614 | | Efficiency ratio (%) | 59.30% | 58.59% | 55.35% | - The efficiency ratio measures a bank's overhead as a percentage of its revenue and is used to assess the **effectiveness of controlling operational activities**[52](index=52&type=chunk) [Pre-Provision Net Revenue (PPNR)](index=26&type=section&id=Pre-Provision%20Net%20Revenue%20(PPNR)) Pre-provision net revenue (PPNR) is a non-GAAP financial measure derived by subtracting noninterest expenses from the sum of net interest income and noninterest income. This metric is important to shareholders as it illustrates revenue performance before accounting for credit loss provisions and reversals Pre-Provision Net Revenue Calculation (in thousands) | Metric | Q3 2025 (in thousands) | Q2 2025 (in thousands) | Q3 2024 (in thousands) | | :-------------------------- | :-------- | :-------- | :-------- | | Net interest income | $68,159 | $67,776 | $71,843 | | Noninterest income | $2,495 | $6,414 | $6,951 | | Less: Noninterest expense | $(41,897) | $(43,470) | $(43,614) | | Pre-provision net revenue | $28,757 | $30,720 | $35,180 | - PPNR illustrates revenue excluding the impact of provisions and reversals to the allowance for credit losses on loans[53](index=53&type=chunk) Corporate Information and Disclosures [About Eagle Bancorp](index=7&type=section&id=About%20Eagle%20Bancorp) Eagle Bancorp, Inc. is the holding company for EagleBank, a community bank established in 1998 and headquartered in Bethesda, Maryland. It operates through twelve banking offices and four lending offices across the Washington D.C. area, focusing on building relationships with businesses, professionals, and individuals - Eagle Bancorp is the holding company for EagleBank, which commenced operations in **1998**[18](index=18&type=chunk) - The Bank is headquartered in **Bethesda, Maryland**, and operates through **twelve banking offices** and **four lending offices** in Suburban Maryland, Washington, D.C., and Northern Virginia[18](index=18&type=chunk) - The Company focuses on building relationships with businesses, professionals, and individuals in its marketplace[18](index=18&type=chunk) [Conference Call Details](index=8&type=section&id=Conference%20Call%20Details) Eagle Bancorp will host a conference call on Thursday, October 23, 2025, at 10:00 a.m. Eastern Time to discuss its third quarter 2025 financial results. A listen-only webcast and analyst registration link are provided, with a replay available on the company's website until November 6, 2025 - A conference call to discuss Q3 2025 financial results will be held on **Thursday, October 23, 2025, at 10:00 a.m. Eastern Time**[20](index=20&type=chunk) - A listen-only webcast is accessible at **https://register-conf.media-server.com/register/Bl6d1c218e6b0143a6903a372200e40cc7**[20](index=20&type=chunk) - A replay of the conference call will be available on the Company's website through **November 6, 2025**, at **https://www.eaglebankcorp.com/**[22](index=22&type=chunk) [Forward-Looking Statements](index=9&type=section&id=Forward-Looking%20Statements) This press release contains forward-looking statements that are subject to significant uncertainties and risks, including economic conditions, government spending, interest rate volatility, and competitive factors. Readers are cautioned against undue reliance on these statements, and the company does not undertake to update them unless required by law - The press release contains forward-looking statements regarding future trends, plans, financial condition, and results of operations[22](index=22&type=chunk) - These statements are based on current and anticipated economic conditions and are subject to **significant uncertainty**, including factors like government workforce reductions, interest rate volatility, and bank failures[22](index=22&type=chunk) - Readers are cautioned against placing undue reliance on forward-looking statements, and the Company undertakes no obligation to revise or update them publicly, except as required by applicable law[22](index=22&type=chunk)

Core Viewpoint Eagle Bancorp, Inc. reported a net loss of $67.5 million for the third quarter of 2025, showing a slight improvement from the previous quarter's loss. The company continues to address asset quality challenges while maintaining a strong capital and liquidity position. Financial Performance - The net loss for Q3 2025 was $67.5 million, or $2.22 per share, compared to a net loss of $69.8 million, or $2.30 per share, in Q2 2025, reflecting a $2.3 million improvement [2] - Net interest income increased by $383 thousand to $68.2 million, while noninterest income decreased by $3.9 million to $2.5 million [2][8] - Noninterest expenses decreased by $1.6 million to $41.9 million, primarily due to lower FDIC assessments [2][8] Asset Quality - Total loans decreased by 4% to $7.4 billion, driven by declines in income-producing real estate loans [7] - Nonperforming assets decreased by $95.5 million to $133.3 million, representing 1.23% of total assets [8][14] - Annualized net charge-offs increased to 7.36% from 4.22% in the previous quarter [8] Capital and Liquidity - The common equity ratio was 10.39%, and the common equity tier 1 capital ratio was 13.58% [8] - Total estimated insured deposits increased to $7.2 billion, representing 75.6% of total deposits [8] - Total on-balance sheet liquidity and available capacity was $5.3 billion, resulting in a coverage ratio of over 230% [8] Dividend Declaration - The company declared a cash dividend of $0.01 per share, payable on November 14, 2025 [4]

Core Points - Eagle Bancorp, Inc. will host a teleconference on October 23, 2025, at 10:00 a.m. (ET) to discuss third quarter 2025 earnings [1] - The earnings report will be released after the close of business on October 22, 2025 [1] - The call will feature CEO Susan Riel and CFO Eric Newell discussing the financial results [1] Registration and Access - Interested parties must register at a specified URL to participate in the call [2] - Participants will receive a dial-in number and unique PIN after registration [2] - The call will also be available live via webcast on the Company's website, with a replay accessible until November 6, 2025 [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 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]