Eagle Bancorp, Inc. Announces First Quarter 2025 Results and Cash Dividend

Core Viewpoint - Eagle Bancorp, Inc. reported a significant decline in net income for the first quarter of 2025, primarily due to increased provision expenses and a decrease in net interest income, while also announcing a cash dividend for shareholders [2][3][4]. Financial Performance - Net income for Q1 2025 was $1.7 million, or $0.06 per diluted share, down from $15.3 million, or $0.50 per diluted share in Q4 2024 [2][3]. - Pre-provision net revenue (PPNR) decreased to $28.4 million from $30.3 million in the previous quarter [2]. - The provision for credit losses increased to $26.3 million from $12.1 million in the prior quarter [3][6]. Income and Expenses - Net interest income fell to $65.6 million from $70.8 million in the previous quarter, attributed to lower average interest-bearing cash balances and a higher mix of interest-bearing deposits [6][8]. - Noninterest income rose to $8.2 million from $4.1 million, driven by a $200 million separate account BOLI transaction [6][8]. - Noninterest expenses increased to $45.5 million from $44.5 million, mainly due to higher legal and professional fees [8]. Asset Quality - Nonperforming assets decreased by $8.5 million to $202.9 million, representing 1.79% of total assets, down from 1.90% [7][13]. - The allowance for credit losses as a percentage of total loans rose to 1.63% from 1.44% [7][13]. - Annualized net charge-offs for Q1 were 0.57%, compared to 0.48% in Q4 2024 [7]. Loan and Deposit Growth - Total loans were $7.9 billion, a slight increase of 0.1% from the prior quarter [13]. - Total deposits grew by $146.2 million, or 1.6%, to $9.3 billion, primarily due to an increase in time deposit accounts [13]. - The company reported a solid growth in its commercial and industrial (C&I) portfolio, which increased by $109 million, or 4.3% [4]. Capital Position - The common equity tier one capital ratio stood at 14.6%, with a tangible common equity ratio exceeding 10% [4][7]. - Total shareholders' equity increased by 1.5% to $1.2 billion, driven by an increase in valuations of available-for-sale securities [13].