Core Viewpoint - Eagle Bancorp reported a significant net loss of $69.8 million for Q2 2025, primarily due to a substantial increase in provision expense, reflecting ongoing challenges in its loan portfolio and strategic risk remediation efforts [2][5][6]. Financial Performance - The company experienced a net loss of $69.8 million or $2.30 per share in Q2 2025, compared to a net income of $1.7 million or $0.06 per share in Q1 2025, marking a $71.5 million decrease in net income [2][19]. - Net interest income increased by $2.1 million to $67.8 million, while noninterest income decreased by $1.8 million to $6.4 million [2][10]. - Noninterest expenses decreased by $2.0 million to $43.5 million, primarily due to reduced legal and professional fees [10]. Asset Quality - The allowance for credit losses (ACL) rose to 2.38% of total loans, up from 1.63% in the previous quarter, indicating a proactive approach to managing credit risk [6][16]. - Nonperforming assets increased by $26.0 million to $228.9 million, representing 2.16% of total assets, compared to 1.79% in the prior quarter [16][25]. - Net charge-offs for the quarter were $83.9 million, significantly higher than $11.2 million in Q1 2025 [16][25]. Capital Position - The common equity tier one capital ratio stood at 14.0%, with a tangible common equity ratio exceeding 10%, indicating a strong capital position [6][16]. - Total shareholders' equity decreased by 4.8% to $1.2 billion, primarily due to quarterly losses [16][21]. Strategic Initiatives - The company is focused on resolving challenged loans and addressing valuation pressures in its office portfolio as part of its strategic plan [4][5]. - A cash dividend of $0.165 per share was declared, payable on August 29, 2025, reflecting ongoing commitment to shareholder returns despite current challenges [6][9].