CORRECTION - Eagle Bancorp, Inc. Announces Third Quarter 2025 Results and Cash Dividend

Core Insights - Eagle Bancorp, Inc. reported a net loss of $67.5 million or $2.22 per share for Q3 2025, showing an improvement from a net loss of $69.8 million or $2.30 per share in Q2 2025, primarily due to a decrease in provision expense [2][4][12] - The company continues to focus on resolving asset quality challenges within its loan portfolio, with a commitment to managing credit risk [4][8] - A cash dividend of $0.01 per share has been declared, payable on November 14, 2025 [4] Financial Performance - Net interest income for Q3 2025 was $68.2 million, an increase from $67.8 million in Q2 2025, driven by lower funding costs [2][12] - Noninterest income decreased to $2.5 million from $6.4 million in the previous quarter, primarily due to losses on loan sales and investment securities [2][12] - Noninterest expenses decreased to $41.9 million from $43.5 million in Q2 2025, mainly due to lower FDIC assessments [2][12] Asset Quality - Nonperforming assets decreased to $133.3 million, representing 1.23% of total assets, down from $228.9 million or 2.16% in the prior quarter [7][12] - The allowance for credit losses (ACL) as a percentage of total loans was 2.14%, down from 2.38% in the previous quarter [7][12] - Annualized net charge-offs for Q3 2025 were 7.36%, compared to 4.22% in Q2 2025 [7][12] Capital and Liquidity - Total estimated insured deposits increased to $7.2 billion, representing 75.6% of total deposits, compared to $6.8 billion or 75.0% in the prior quarter [7][12] - The common equity ratio was 10.39% at quarter-end, with a common equity tier 1 capital ratio of 13.58% [7][12] - Total on-balance sheet liquidity and available capacity was $5.3 billion, resulting in a coverage ratio of over 230% against uninsured deposits [7][12] Loan Portfolio - Total loans decreased by 4% to $7.4 billion, primarily due to declines in income-producing real estate loans, partially offset by an increase in commercial and industrial loans [12][20] - Total deposits increased by $0.3 billion or 4% from the prior quarter, driven by higher balances in money market accounts [12][20] - The loan mix included 47% in income-producing commercial real estate and 20% in owner-occupied commercial real estate [20]