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

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