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

Rhea-AI Summary

Eagle Bancorp (NASDAQ: EGBN) reported significant losses in Q2 2025, with a net loss of $69.8 million ($2.30 per share) compared to net income of $1.7 million in Q1. The decline was primarily due to a $111.9 million increase in provision expense, reflecting challenges in the office loan portfolio.

Key financial metrics include: Net interest income increased by $2.1 million, pre-provision net revenue rose to $30.7 million, and the allowance for credit losses increased to 2.38% of total loans. The company maintained strong capital positions with a common equity tier one ratio of 14.01%.

Despite challenges, Eagle declared a quarterly cash dividend of $0.165 per share, payable August 29, 2025, and reported total deposits of $9.1 billion with 75% being insured deposits.

Positive

• Pre-provision net revenue increased to $30.7 million from $28.4 million in Q1
• Net interest margin expanded to 2.37% from 2.28% in previous quarter
• Strong capital position with 14.01% common equity tier 1 ratio
• High insured deposits ratio at 75% of total deposits
• Total on-balance sheet liquidity coverage ratio over 200% of uninsured deposits

Negative

• Significant quarterly net loss of $69.8 million compared to $1.7 million profit in Q1
• Sharp increase in provision expense by $111.9 million
• Nonperforming assets increased to $228.9 million (2.16% of total assets)
• Net charge-offs rose significantly to 4.22% from 0.57% in Q1
• Total loans decreased by 2.8% from previous quarter

Insights

Banking and Credit Analyst

Eagle Bancorp reports substantial Q2 loss of $69.8M due to aggressive loan portfolio cleanup, particularly in challenged office sector.

Eagle Bancorp's second quarter results reveal a significant net loss of $69.8 million ($2.30 per share), a stark contrast to the $1.7 million profit in Q1. This $71.5 million earnings decline stems primarily from a $111.9 million increase in loan loss provisions as the bank takes decisive action to address credit quality issues in its commercial real estate portfolio.

The provision for credit losses reached $138.2 million this quarter, up dramatically from $26.3 million in Q1. Net charge-offs surged to $83.9 million (a 4.22% annualized rate), compared to just $11.2 million (0.57%) in the previous quarter. These aggressive actions have increased the allowance for credit losses to 2.38% of total loans, up from 1.63% last quarter.

The credit deterioration appears concentrated in office properties, where the bank increased its performing office loan coverage ratio to 11.54% from 5.78% in Q1. Nonperforming assets increased to $228.9 million, representing 2.16% of total assets (up from 1.79%). Substandard and special mention loans – early indicators of potential problems – grew to $875.4 million.

Despite these credit challenges, the bank's core operating performance showed improvement. Pre-provision net revenue increased to $30.7 million from $28.4 million, and the net interest margin expanded to 2.37% from 2.28%. The bank reduced its reliance on wholesale funding, decreasing other short-term borrowings by 89.8% to $50 million.

Capital ratios remain healthy despite the loss, with the common equity tier 1 ratio at 14.01% and tangible common equity exceeding 10%. The bank maintained its quarterly dividend at $0.165 per share, signaling confidence in its long-term outlook despite current challenges.

This quarter represents a critical juncture in Eagle Bancorp's strategy to address problem loans in a challenging commercial real estate environment, particularly for office properties. While the short-term earnings impact is severe, the aggressive provisioning and charge-offs may position the bank for healthier performance if it successfully resolves these credit issues in coming quarters.

BETHESDA, Md., July 23, 2025 (GLOBE NEWSWIRE) -- Eagle Bancorp, Inc. ("Eagle", the "Company") (NASDAQ: EGBN), the Bethesda-based holding company for EagleBank, one of the largest community banks in the Washington D.C. area, reported its unaudited results for the second quarter ended June 30, 2025.

Eagle reported a net loss of $69.8 million or $2.30 per share for the second quarter 2025, compared to net income of $1.7 million or $0.06 per diluted share during the first quarter. The $71.5 million decrease in net income from the prior quarter is primarily due to a $111.9 million increase in provision expense. In the quarter, net interest income increased $2.1 million, noninterest income decreased $1.8 million, and noninterest expenses decreased $2.0 million.

Pre-provision net revenue ("PPNR")¹ in the second quarter was $30.7 million compared to $28.4 million for the prior quarter reflecting expansion of the net interest margin.

"Our core profitability improvement this quarter, evident in the growth of pre-provision net revenue, expansion of core deposits, and reduced reliance on wholesale and brokered funding, reflects our disciplined execution of our strategic plan," said Susan G. Riel, Chair, President, and Chief Executive Officer of the Company. "We continue to work on building a stronger balance sheet that will contribute to long-term, sustainable performance."

Our second quarter reflects the execution of our previously communicated strategy to resolve challenged loans and address related valuation pressures in the office portfolio.

"This quarter's credit costs reflect decisive actions we are taking to address risk in our loan portfolio. While the charge is significant, it is aligned with our ongoing strategy and reflects our judgement to remediate credit exposures thoughtfully and deliberately. We view this quarter's loss as a necessary and measured outcome of our risk remediation strategy. The resulting impact of these decisions is difficult, yet represents necessary steps in our objective to drive long-term value creation for shareholders," added Ms. Riel.

Eric R. Newell, Chief Financial Officer of the Company said, "This quarter, the credit loss reserve coverage rose to 2.38% of total loans, up 75 basis points from last quarter. This reserve build reflects our ongoing and continued proactive approach to address credit risk in our loan portfolio and our expectation that remediation activity will continue over the coming quarters. Our capital position remains strong, with common equity tier one capital at 14.0% and our tangible common equity¹ ratio exceeding 10%. We will continue to evaluate capital allocation decisions, in alignment with our objectives of maintaining long-term franchise value."

Additionally, the Company is announcing today a cash dividend in the amount of $0.165 per share. The cash dividend will be payable on August 29, 2025 to shareholders of record on August 8, 2025.

Second Quarter of 2025 Key Elements

• The Company announces today the declaration of a common stock dividend of $0.165 per share.
• The ACL as a percentage of total loans was 2.38% at quarter-end; up from 1.63% at the prior quarter-end. Performing office coverage² was 11.54% at quarter-end; as compared to 5.78% at the prior quarter-end.
• Nonperforming assets increased by $26.0 million to $228.9 million as of June 30, 2025, representing 2.16% of total assets, compared to 1.79% as of March 31, 2025. During the quarter, nonperforming loan inflows totaled $222.8 million, primarily driven by office and land properties, including a $33.6 million data center loan backed by office collateral and a $9.1 million life sciences office loan. Reductions of $182.8 million reflected charge-offs, loans moved to held for sale, and restructuring activity.
• Substandard and special mention loans totaled $875.4 million at June 30, 2025, compared to $774.9 million in the prior quarter.
• Annualized quarterly net charge-offs for the second quarter were 4.22% compared to 0.57% for the first quarter of 2025.
• The net interest margin ("NIM") increased to 2.37% for the second quarter of 2025, compared to 2.28% for the prior quarter, primarily driven by the paydown of average borrowings and reduced funding costs on money market accounts and other borrowings.
• At quarter-end, the common equity ratio, tangible common equity ratio¹, and common equity tier 1 capital (to risk-weighted assets) ratio were 11.18%, 11.18%, and 14.01%, respectively.
• Total estimated insured deposits remained stable at quarter-end to $6.8 billion, representing 75.0% of deposits, compared to $6.9 billion, or 74.7% in the prior quarter.
• Total on-balance sheet liquidity and available capacity was $4.8 billion, compared to $2.3 billion in uninsured deposits, resulting in a coverage ratio of over 200%.
  
  

Income Statement

• Net interest income was $67.8 million for the second quarter of 2025, compared to $65.6 million for the prior quarter. The increase in net interest income for the quarter was primarily driven by lower funding costs on savings and money market accounts, a reduction in average short-term borrowings, and the benefit of one additional day in the quarter. These benefits were partially offset by lower yields on loans and a higher mix of time deposits. Both interest income and interest expense declined during the quarter, reflecting the impact of lower market rates.
• Provision for credit losses was $138.2 million for the second quarter of 2025, compared to $26.3 million for the prior quarter. The increase was primarily driven by higher office-related reserves and expected exit strategies. Net charge-offs totaled $83.9 million, up from $11.2 million in the first quarter. The reserve for unfunded commitments totaled $1.8 million, driven primarily by higher unfunded commitments in our commercial and industrial portfolio. This compared to a reversal for unfunded commitments in the prior quarter of $0.3 million.
• Noninterest income was $6.4 million for the second quarter of 2025, compared to $8.2 million for the prior quarter. The primary driver for the decrease was a $1.9 million loss on a trade executed to reposition the investment portfolio into higher-yielding assets.
• Noninterest expense was $43.5 million for the second quarter of 2025, compared to $45.5 million for the prior quarter. The decrease over the comparative quarter was primarily due to decreased legal, accounting, and professional fees.
  
  

Loans and Funding

• Total loans were $7.7 billion at June 30, 2025, down 2.8% from the prior quarter-end. The decrease in total loans was primarily driven by declines in income-producing real estate loans, partially offset by an increase in commercial and industrial loans.
  
  
• Total deposits at quarter-end were $9.1 billion, down $157.7 million, or 1.7%, from the prior quarter-end. The decrease was primarily driven by lower balances in brokered savings and money market accounts. Period end deposits have increased $852.3 million when compared to the prior year comparable period end of June 30, 2024.
  
  
• Other short-term borrowings were $50.0 million at June 30, 2025, representing an 89.8% decrease from the prior quarter-end. The decline was driven by the pay down of FHLB borrowings, funded by cash and core deposit growth.
  
  

Asset Quality

• Allowance for credit losses was 2.38% of total loans held for investment at June 30, 2025, compared to 1.63% at the prior quarter-end. Performing office coverage was 11.54% at quarter-end; as compared to 5.78% at the prior quarter-end.
• Net charge-offs were $83.9 million for the quarter compared to $11.2 million in the first quarter of 2025.
• Nonperforming assets were $228.9 million at June 30, 2025.
  • NPAs as a percentage of assets were 2.16% at June 30, 2025, compared to 1.79% at the prior quarter-end. At June 30, 2025, other real estate owned consisted of five properties with an aggregate carrying value of $2.5 million.
  • Loans 30-89 days past due were $34.7 million at June 30, 2025, compared to $83.0 million at the prior quarter-end.
    
    

Capital

• Total shareholders' equity was $1.2 billion at June 30, 2025, down 4.8% from the prior quarter-end. The decrease in shareholders' equity of $59.8 million was primarily due to quarterly losses that reduced capital. This was partially offset by an increase in the fair market value of the available-for-sale investment portfolio.
• Book value per share and tangible book value per share³ were $39.03 and $39.03, down 4.8% from the prior quarter-end.
  
  

Additional financial information: The financial information that follows provides more detail on the Company's financial performance for the three months ended June 30, 2025 as compared to the three months ended March 31, 2025 and June 30, 2024, as well as eight quarters of trend data. Persons wishing additional information should refer to the Company's Annual Report on Form 10-K for the year ended December 31, 2024, and other reports filed with the SEC.

About Eagle Bancorp: The Company is the holding company for EagleBank, which commenced operations in 1998. The Bank is headquartered in Bethesda, Maryland, and operates through twelve banking offices and four lending offices located in Suburban Maryland, Washington, D.C. and Northern Virginia. The Company focuses on building relationships with businesses, professionals and individuals in its marketplace, and is committed to a culture of respect, opportunity, belonging, and inclusion in both its workplace and the communities in which it operates.

Conference call: Eagle Bancorp will host a conference call to discuss its second quarter of 2025 financial results on Thursday, July 24, 2025 at 10:00 a.m. Eastern Time.

The listen-only webcast can be accessed at:

• https://edge.media-server.com/mmc/p/yiqohzt3/
• For analysts who wish to participate in the conference call, please register at the following URL:
  
  https://register-conf.media-server.com/register/BI6d1c218e6b0143a6903a372200e40cc7

• A replay of the conference call will be available on the Company's website through Thursday, August 7, 2025: https://www.eaglebankcorp.com/
  
  

Forward-looking statements: This press release contains forward-looking statements within the meaning of the Securities Exchange Act of 1934, as amended, including statements of goals, intentions, and expectations as to future trends, plans, events or results of Company operations and policies and regarding general economic conditions. In some cases, forward-looking statements can be identified by use of words such as "may," "will," "can," "anticipates," "believes," "expects," "plans," "strategy," "estimates," "potential," "continue," "should," "could," "strive," "feel" and similar words or phrases. These statements are based upon current and anticipated economic conditions, nationally and in the Company's market (including reductions in the size of the federal government workforce; changes in government spending; the proposal, announcement or imposition of tariffs; volatility in interest rates and interest rate policy; inflation levels; competitive factors) and other conditions (such as the impact of bank failures or adverse developments at other banks and related negative press about the banking industry in general on investor and depositor sentiment regarding the stability and liquidity of banks), which by their nature are not susceptible to accurate forecast and are subject to significant uncertainty. Because of these uncertainties and the assumptions on which this discussion and the forward-looking statements are based, actual future operations and results in the future may differ materially from those indicated herein. For details on factors that could affect these expectations, see the risk factors and other cautionary language included in the Company's Annual Report on Form 10-K for the year ended December 31, 2024 and in other periodic and current reports filed with the SEC, including the Company's Quarterly Report on Form 10-Q for the quarter ended March 31, 2025. Readers are cautioned against placing undue reliance on any such forward-looking statements. The Company's past results are not necessarily indicative of future performance, and nothing contained herein is meant to or should be considered and treated as earnings guidance of future quarters' performance projections. All information is as of the date of this press release. Any forward-looking statements made by or on behalf of the Company speak only as to the date they are made. Except to the extent required by applicable law or regulation, the Company undertakes no obligation to revise or update publicly any forward-looking statement for any reason.

Eagle Bancorp, Inc.
Consolidated Statements of Operations (Unaudited)
(Dollars in thousands, except per share data)
	Three Months Ended
	June 30,				March 31,				June 30,
		2025				2025				2024
Interest Income
Interest and fees on loans	$	125,223			$	126,136			$	137,616
Interest and dividends on investment securities		11,436				11,912				12,405
Interest on balances with other banks and short-term investments		14,760				15,803				19,568
Interest on federal funds sold		24				27				142
Total interest income		151,443				153,878				169,731
Interest Expense
Interest on deposits		78,912				77,211				76,846
Interest on customer repurchase agreements		250				260				330
Interest on other short-term borrowings		2,489				8,733				21,202
Interest on long-term borrowings		2,016				2,025				—
Total interest expense		83,667				88,229				98,378
Net Interest Income		67,776				65,649				119,910
Provision for Credit Losses		138,159				26,255				8,959
Provision (Reversal) for Credit Losses for Unfunded Commitments		1,759				(297	)			608
Net Interest Income After Provision for Credit Losses		(72,142	)			39,691				110,343
Noninterest Income
Service charges on deposits		1,771				1,743				1,653
Gain on sale of loans		—				—				37
Net gain on sale of investment securities		(1,854	)			4				3
Increase in cash surrender value of bank-owned life insurance		5,161				4,282				709
Other income		1,336				2,178				2,930
Total noninterest income		6,414				8,207				5,332
Noninterest Expense
Salaries and employee benefits		21,940				21,968				21,770
Premises and equipment expenses		3,019				3,203				2,894
Marketing and advertising		1,144				1,371				1,662
Data processing		4,293				3,978				3,495
Legal, accounting and professional fees		1,550				3,122				2,705
FDIC insurance		8,077				8,962				5,917
Goodwill impairment		—				—				104,168
Other expenses		3,447				2,847				3,880
Total noninterest expense		43,470				45,451				146,491
Income (Loss) Before Income Tax Expense		(109,198	)			2,447				(79,373	)
Income Tax Expense		(39,423	)			772				4,429
Net (Loss) Income	$	(69,775	)		$	1,675			$	(83,802	)
(Loss) Earnings Per Common Share
Basic	$	(2.30	)		$	0.06			$	(2.78	)
Diluted	$	(2.30	)		$	0.06			$	(2.78	)

        

Eagle Bancorp, Inc.
Consolidated Balance Sheets (Unaudited)
(Dollars in thousands, except per share data)
	June 30,				March 31,				June 30,
		2025				2025				2024
Assets
Cash and due from banks	$	14,005			$	12,516			$	10,803
Federal funds sold		4,091				2,968				5,802
Interest-bearing deposits with banks and other short-term investments		239,237				661,173				526,228
Investment securities available-for-sale at fair value (amortized cost of $1,271,179, $1,330,077, and $1,584,435 respectively, and allowance for credit losses of $—, $—, and $17, respectively)		1,170,489				1,214,237				1,420,618
Investment securities held-to-maturity at amortized cost, net of allowance for credit losses of $1,229, $1,275, and $2,012 respectively (fair value of $799,136, $820,530, and $856,275 respectively)		896,855				924,473				982,955
Federal Reserve and Federal Home Loan Bank stock		30,613				51,467				54,274
Loans held for sale		37,576				15,251				5,000
Loans		7,721,664				7,943,306				8,001,739
Less: allowance for credit losses		(183,796	)			(129,469	)			(106,301	)
Loans, net		7,537,868				7,813,837				7,895,438
Premises and equipment, net		7,103				7,079				8,788
Operating lease right-of-use assets		31,202				32,769				16,250
Deferred income taxes		80,731				84,798				86,236
Bank-owned life insurance		325,174				320,055				114,333
Intangible assets, net		9				11				129
Other real estate owned		2,459				2,459				773
Other assets		223,919				174,268				174,396
Total Assets		10,601,331				11,317,361				11,302,023
Liabilities and Shareholders' Equity
Liabilities
Deposits:
Noninterest-bearing demand		1,532,132				1,607,826				1,693,955
Interest-bearing transaction		895,604				926,722				1,123,980
Savings and money market		3,267,630				3,558,919				3,165,314
Time deposits		3,424,241				3,183,801				2,284,099
Total deposits		9,119,607				9,277,268				8,267,348
Customer repurchase agreements		23,442				32,357				39,220
Other short-term borrowings		50,000				490,000				1,659,979
Long-term borrowings		76,264				76,181				—
Operating lease liabilities		37,297				38,484				20,016
Reserve for unfunded commitments		4,925				3,166				6,653
Other liabilities		104,729				155,014				139,348
Total Liabilities		9,416,264				10,072,470				10,132,564
Shareholders' Equity
Common stock, par value $0.01 per share; shares authorized 100,000,000, shares issued and outstanding 30,364,983, 30,368,843, and 30,180,482 respectively		300				300				297
Additional paid-in capital		388,927				386,535				380,142
Retained earnings		904,205				978,995				949,863
Accumulated other comprehensive loss		(108,365	)			(120,939	)			(160,843	)
Total Shareholders' Equity		1,185,067				1,244,891				1,169,459
Total Liabilities and Shareholders' Equity	$	10,601,331			$	11,317,361			$	11,302,023

Loan Mix and Asset Quality
(Dollars in thousands)
	June 30,					March 31,					June 30,
	2025					2025					2024
	Amount		%			Amount		%			Amount		%
Loan Balances - Period End:
Commercial	$	1,207,512	15	%		$	1,178,343	15	%		$	1,238,261	15	%
PPP loans		164	—	%			226	—	%		$	407	—	%
Income producing - commercial real estate		3,768,884	48	%			3,967,124	49	%		$	4,217,525	53	%
Owner occupied - commercial real estate		1,365,901	18	%			1,403,668	18	%		$	1,263,714	16	%
Real estate mortgage - residential		45,921	1	%			48,821	1	%		$	61,338	1	%
Construction - commercial and residential		1,211,728	16	%			1,210,788	15	%		$	1,063,764	13	%
Construction - C&I (owner occupied)		69,554	1	%			83,417	1	%		$	99,526	1	%
Home equity		49,224	1	%			50,121	1	%		$	52,773	1	%
Other consumer		2,776	—	%			798	—	%		$	4,431	—	%
Total loans	$	7,721,664	100	%		$	7,943,306	100	%		$	8,001,739	100	%

	Three Months Ended or As Of
	June 30,			March 31,			June 30,
	2025			2025			2024
Asset Quality:
Nonperforming loans	$	226,420		$	200,447		$	98,169
Other real estate owned		2,459			2,459			773
Nonperforming assets	$	228,879		$	202,906		$	98,942
Net charge-offs	$	83,877		$	11,230		$	2,285
Special mention	$	173,311		$	273,380		$	307,906
Substandard	$	702,128		$	501,565		$	408,311

Eagle Bancorp, Inc.
Consolidated Average Balances, Interest Yields And Rates vs. Prior Quarter (Unaudited)
(Dollars in thousands)
	Three Months Ended
	June 30, 2025									March 31, 2025
	Average Balance			Interest			Average Yield/Rate			Average Balance			Interest			Average Yield/Rate
ASSETS
Interest earning assets:
Interest-bearing deposits with other banks and other short-term investments	$	1,375,782		$	14,749		4.30	%		$	1,445,054		$	15,803		4.44	%
Loans held for sale(1)		15,418			284		7.39	%			169			—		—	%
Loans(1) (2)		7,942,333			124,939		6.31	%			7,933,695			126,136		6.45	%
Investment securities available-for-sale(2)		1,233,206			6,491		2.11	%			1,321,954			6,857		2.10	%
Investment securities held-to-maturity(2)		918,083			4,945		2.16	%			933,880			5,055		2.20	%
Federal funds sold		2,184			24		4.41	%			5,410			27		2.02	%
Total interest earning assets		11,487,006			151,432		5.29	%			11,640,162			153,878		5.36	%
Total noninterest earning assets		635,125									596,585
Less: allowance for credit losses		133,036									118,557
Total noninterest earning assets		502,089									478,028
TOTAL ASSETS	$	11,989,095								$	12,118,190
LIABILITIES AND SHAREHOLDERS' EQUITY
Interest bearing liabilities:
Interest-bearing transaction	$	1,489,056		$	9,982		2.69	%		$	1,368,609		$	9,908		2.94	%
Savings and money market		3,461,918			29,634		3.43	%			3,682,217			32,389		3.57	%
Time deposits		3,367,907			39,296		4.68	%			2,951,111			34,914		4.80	%
Total interest bearing deposits		8,318,881			78,912		3.80	%			8,001,937			77,211		3.91	%
Customer repurchase agreements		34,387			250		2.92	%			36,572			260		2.88	%
Derivative collateral liability		12,710			118		3.72	%			—			—		—	%
Other short-term borrowings		245,291			2,360		3.86	%			682,222			8,733		5.19	%
Long-term borrowings		76,236			2,016		10.61	%			76,146			2,025		10.79	%
Total interest bearing liabilities		8,687,505			83,656		3.86	%			8,796,877			88,229		4.07	%
Noninterest bearing liabilities:
Noninterest bearing demand		1,907,214									1,881,296
Other liabilities		142,124									197,212
Total noninterest bearing liabilities		2,049,338									2,078,508
Shareholders' equity		1,252,252									1,242,805
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$	11,989,095								$	12,118,190
Net interest income				$	67,776								$	65,649
Net interest spread							1.43	%								1.29	%
Net interest margin							2.37	%								2.28	%
Cost of funds							3.17	%								3.35	%

(1	)	Loans placed on nonaccrual status are included in average balances. Net loan fees and late charges included in interest income on loans totaled $3.6 million and $3.8 million for the three months ended June 30, 2025 and March 31, 2025, respectively.
(2	)	Interest and fees on loans and investments exclude tax equivalent adjustments.

Eagle Bancorp, Inc.
Consolidated Average Balances, Interest Yields And Rates vs. Year Ago Quarter (Unaudited)
(Dollars in thousands)
	Three Months Ended June 30,
		2025									2024
	Average Balance			Interest			Average Yield/Rate			Average Balance			Interest			Average Yield/Rate
ASSETS
Interest earning assets:
Interest-bearing deposits with other banks and other short-term investments	$	1,375,782		$	14,749		4.30	%		$	1,455,007		$	19,568		5.41	%
Loans held for sale(1)		15,418			284		7.39	%			8,045			100		5.00	%
Loans(1) (2)		7,942,333			124,939		6.31	%			8,003,206			137,516		6.91	%
Investment securities available-for-sale(2)		1,233,206			6,491		2.11	%			1,478,856			7,048		1.92	%
Investment securities held-to-maturity(2)		918,083			4,945		2.16	%			995,274			5,357		2.16	%
Federal funds sold		2,184			24		4.41	%			13,058			142		4.37	%
Total interest earning assets		11,487,006			151,432		5.29	%			11,953,446			169,731		5.71	%
Total noninterest earning assets		635,125									510,725
Less: allowance for credit losses		133,036									102,671
Total noninterest earning assets		502,089									408,054
TOTAL ASSETS	$	11,989,095								$	12,361,500
LIABILITIES AND SHAREHOLDERS' EQUITY
Interest bearing liabilities:
Interest-bearing transaction	$	1,489,056		$	9,982		2.69	%		$	1,636,795		$	16,100		3.96	%
Savings and money market		3,461,918			29,634		3.43	%			3,321,001			33,451		4.05	%
Time deposits		3,367,907			39,296		4.68	%			2,215,693			27,295		4.95	%
Total interest bearing deposits		8,318,881			78,912		3.80	%			7,173,489			76,846		4.31	%
Customer repurchase agreements		34,387			250		2.92	%			38,599			330		3.44	%
Derivative collateral liability		12,710			118		3.72	%			—			—		—	%
Other short-term borrowings		245,291			2,360		3.86	%			1,682,684			21,202		5.07	%
Long-term borrowings		76,236			2,016		10.61	%			—			—		—	%
Total interest bearing liabilities		8,687,505			83,656		3.86	%			8,894,772			98,378		4.45	%
Noninterest bearing liabilities:
Noninterest bearing demand		1,907,214									2,051,777
Other liabilities		142,124									151,324
Total noninterest bearing liabilities		2,049,338									2,203,101
Shareholders' equity		1,252,252									1,263,627
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$	11,989,095								$	12,361,500
Net interest income				$	67,776								$	71,353
Net interest spread							1.43	%								1.26	%
Net interest margin							2.37	%								2.40	%
Cost of funds							3.17	%								3.61	%

(1	)	Loans placed on nonaccrual status are included in average balances. Net loan fees and late charges included in interest income on loans totaled $3.6 million and $4.8 million for the three months ended June 30, 2025 and 2024, respectively.
(2	)	Interest and fees on loans and investments exclude tax equivalent adjustments.

Eagle Bancorp, Inc.
Statements of Operations and Highlights Quarterly Trends (Unaudited)
(Dollars in thousands, except per share data)
						Three Months Ended
		June 30, 2025				March 31, 2025				December 31, 2024				September 30, 2024				June 30, 2024				March 31, 2024				December 31, 2023				September 30, 2023
Income Statements:
Total interest income		$	151,443			$	153,878			$	168,417			$	173,813			$	169,731			$	175,602			$	167,421			$	161,149
Total interest expense			83,667				88,229				97,623				101,970				98,378				100,904				94,429				90,430
Net interest income			67,776				65,649				70,794				71,843				71,353				74,698				72,992				70,719
Provision for credit losses			138,159				26,255				12,132				10,094				8,959				35,175				14,490				5,644
Provision (reversal) for credit losses for unfunded commitments			1,759				(297	)			(1,598	)			(1,593	)			608				456				(594	)			(839	)
Net interest income after provision for credit losses			(72,142	)			39,691				60,260				63,342				61,786				39,067				59,096				65,914
Noninterest income before investment gain			8,268				8,203				4,063				6,948				5,329				3,585				2,891				6,342
Net gain on sale of investment securities			(1,854	)			4				4				3				3				4				3				5
Total noninterest income			6,414				8,207				4,067				6,951				5,332				3,589				2,894				6,347
Salaries and employee benefits			21,940				21,968				22,597				21,675				21,770				21,726				18,416				21,549
Premises and equipment expenses			3,019				3,203				2,635				2,794				2,894				3,059				2,967				3,095
Marketing and advertising			1,144				1,371				1,340				1,588				1,662				859				1,071				768
Goodwill impairment			—				—				—				—				104,168				—				—				—
Other expenses			17,367				18,909				17,960				17,557				15,997				14,353				14,644				12,221
Total noninterest expense			43,470				45,451				44,532				43,614				146,491				39,997				37,098				37,633
(Loss) income before income tax expense			(109,198	)			2,447				19,795				26,679				(79,373	)			2,659				24,892				34,628
Income tax expense			(39,423	)			772				4,505				4,864				4,429				2,997				4,667				7,245
Net (loss) income			(69,775	)			1,675				15,290				21,815				(83,802	)			(338	)			20,225				27,383
Per Share Data:
(Loss) earnings per weighted average common share, basic		$	(2.30	)		$	0.06			$	0.51			$	0.72			$	(2.78	)		$	(0.01	)		$	0.68			$	0.91
(Loss) earnings per weighted average common share, diluted		$	(2.30	)		$	0.06			$	0.50			$	0.72			$	(2.78	)		$	(0.01	)		$	0.67			$	0.91
Weighted average common shares outstanding, basic			30,373,167				30,275,001				30,199,433				30,173,852				30,185,609				30,068,173				29,925,557				29,910,218
Weighted average common shares outstanding, diluted			30,510,847				30,404,262				30,321,644				30,241,699				30,185,609				30,068,173				29,966,962				29,944,692
Actual shares outstanding at period end			30,364,983				30,368,843				30,202,003				30,173,200				30,180,482				30,185,732				29,925,612				29,917,982
Book value per common share at period end		$	39.03			$	40.99			$	40.60			$	40.61			$	38.75			$	41.72			$	42.58			$	40.64
Tangible book value per common share at period end(1)		$	39.03			$	40.99			$	40.59			$	40.61			$	38.74			$	38.26			$	39.08			$	37.12
Dividend per common share		$	0.165			$	0.165			$	—			$	0.165			$	0.45			$	0.45			$	0.45			$	0.45
Performance Ratios (annualized):
Return on average assets		(2.33		)%			0.06	%			0.48	%			0.70	%		(2.73		)%		(0.01		)%			0.65	%			0.91	%
Return on average common equity		(22.35		)%			0.55	%			4.94	%			7.22	%		(26.67		)%		(0.11		)%			6.48	%			8.80	%
Return on average tangible common equity(1)		(22.35		)%			0.55	%			4.94	%			7.22	%		(28.96		)%		(0.11		)%			7.08	%			9.61	%
Net interest margin			2.37	%			2.28	%			2.29	%			2.37	%			2.40	%			2.43	%			2.45	%			2.43	%
Efficiency ratio(1)(2)			58.60	%			61.50	%			59.50	%			55.40	%			191.00	%			51.10	%			48.90	%			48.83	%
Other Ratios:
Allowance for credit losses to total loans(3)			2.38	%			1.63	%			1.44	%			1.40	%			1.33	%			1.25	%			1.08	%			1.05	%
Allowance for credit losses to total nonperforming loans			81.17	%			64.59	%			54.81	%			83.25	%			110.06	%			108.76	%			131.16	%			118.78	%
Nonperforming assets to total assets			2.16	%			1.79	%			1.90	%			1.22	%			0.88	%			0.79	%			0.57	%			0.64	%
Net charge-offs (recoveries) (annualized) to average total loans(3)			4.22	%			0.57	%			0.48	%			0.26	%			0.11	%			1.07	%			0.60	%			0.02	%
Tier 1 capital (to average assets)			10.63	%			11.11	%			10.74	%			10.77	%			10.58	%			10.26	%			10.73	%			10.96	%
Total capital (to risk weighted assets)			15.27	%			15.86	%			15.86	%			15.51	%			15.07	%			14.87	%			14.79	%			14.54	%
Common equity tier 1 capital (to risk weighted assets)			14.01	%			14.61	%			14.63	%			14.30	%			13.92	%			13.80	%			13.90	%			13.68	%
Tangible common equity ratio(1)			11.18	%			11.00	%			11.02	%			10.86	%			10.35	%			10.03	%			10.12	%			10.04	%
Average Balances (in thousands):
Total assets		$	11,989,095			$	12,118,190			$	12,575,722			$	12,360,899			$	12,361,500			$	12,784,470			$	12,283,303			$	11,942,905
Total earning assets		$	11,487,006			$	11,640,162			$	12,303,940			$	12,072,891			$	11,953,446			$	12,365,497			$	11,837,722			$	11,532,186
Total loans(2)		$	7,942,333			$	7,933,695			$	7,971,907			$	8,026,524			$	8,003,206			$	7,988,941			$	7,963,074			$	7,795,144
Total deposits		$	10,226,095			$	9,883,233			$	10,056,463			$	9,344,414			$	9,225,266			$	9,501,661			$	9,471,369			$	8,946,641
Total borrowings		$	355,914			$	794,940			$	1,118,276			$	1,654,736			$	1,721,283			$	1,832,947			$	1,401,917			$	1,646,179
Total shareholders' equity		$	1,252,252			$	1,242,805			$	1,230,573			$	1,201,477			$	1,263,627			$	1,289,656			$	1,238,763			$	1,235,162

(1	)	A reconciliation of non-GAAP financial measures to the nearest GAAP measure is provided in the tables that accompany this document.
(2	)	Computed by dividing noninterest expense by the sum of net interest income and noninterest income.
(3	)	Excludes loans held for sale.

GAAP Reconciliation to Non-GAAP Financial Measures (unaudited)
(dollars in thousands, except per share data)
	June 30,				March 31,				June 30,
	2025				2025				2024
Tangible common equity
Common shareholders' equity	$	1,185,067			$	1,244,891			$	1,169,459
Less: Intangible assets		(9	)			(11	)			(129	)
Tangible common equity	$	1,185,058			$	1,244,880			$	1,169,330
Tangible common equity ratio
Total assets	$	10,601,331			$	11,317,361			$	11,302,023
Less: Intangible assets		(9	)			(11	)			(129	)
Tangible assets	$	10,601,322			$	11,317,350			$	11,301,894
Tangible common equity ratio		11.18	%			11.00	%			10.35	%
Per share calculations
Book value per common share	$	39.03			$	40.99			$	38.75
Less: Intangible book value per common share	$	—			$	—			$	(0.01	)
Tangible book value per common share	$	39.03			$	40.99			$	38.74
Shares outstanding at period end		30,364,983				30,368,843				30,180,482

		Three Months Ended
		June 30,				March 31,				June 30,
		2025				2025				2024
Average tangible common equity
Average common shareholders' equity		$	1,252,252			$	1,242,805			$	1,263,627
Less: Average intangible assets			(11	)			(14	)			(99,827	)
Average tangible common equity		$	1,252,241			$	1,242,791			$	1,163,800
Return on average tangible common equity
Net (loss) income		$	(69,775	)		$	1,675			$	(83,802	)
Return on average tangible common equity		(22.35		)%			0.55	%		(28.96		)%
Net (loss) income		$	(69,775	)		$	1,675			$	(83,802	)
Add back of goodwill impairment			—				—				104,168
Operating net (loss) income (Non-GAAP)		$	(69,775	)		$	1,675			$	20,366
Operating Return on average tangible common equity (Non-GAAP)		(22.35		)%			0.55	%			7.04	%
Efficiency ratio
Net interest income		$	67,776			$	65,649			$	71,353
Noninterest income			6,414				8,207				5,332
Operating revenue		$	74,190			$	73,856			$	76,685
Noninterest expense		$	43,470			$	45,451			$	146,491
Add back of goodwill impairment							—				(104,168	)
Operating Noninterest expense (Non-GAAP)			43,470				45,451				42,323
Efficiency ratio			58.59	%			61.54	%			191.03	%
Operating Efficiency ratio (Non-GAAP)			58.59	%			61.54	%			55.19	%
Pre-provision net revenue
Net interest income		$	67,776			$	65,649			$	71,353
Noninterest income			6,414				8,207				5,332
Less: Noninterest expense			(43,470	)			(45,451	)			(146,491	)
Pre-provision net revenue		$	30,720			$	28,405			$	(69,806	)
Pre-provision net revenue		$	30,720			$	28,405			$	(69,806	)
Add back of goodwill impairment		$	—			$	—			$	104,168
Operating Pre-provision net revenue (Non-GAAP)		$	30,720			$	28,405			$	34,362

Tangible common equity, tangible common equity to tangible assets (the "tangible common equity ratio"), tangible book value per common share, average tangible common equity, annualized return on average tangible common equity, and the operating annualized return on average tangible common equity are non-GAAP financial measures derived from GAAP based amounts. The Company calculates the tangible common equity ratio by excluding the balance of intangible assets from common shareholders' equity, or tangible common equity, and dividing by tangible assets. The Company calculates tangible book value per common share by dividing tangible common equity by common shares outstanding, as compared to book value per common share, which the Company calculates by dividing common shareholders' equity by common shares outstanding. The Company calculates the annualized return on average tangible common equity ratio by dividing net income available to common shareholders by average tangible common equity, which is calculated by excluding the average balance of intangible assets from the average common shareholders' equity. The Company calculates the operating annualized return on average tangible common equity ratio by dividing operating net income available to common shareholders, which adds back the goodwill impairment, by average tangible common equity, which is calculated by excluding the average balance of intangible assets from the average common shareholders' equity. The Company considers this information important to shareholders as the significant impact of the goodwill impairment is a one-time event that obscures the operating performance of the company. Further related to other measures, tangible equity is a measure that is consistent with the calculation of capital for bank regulatory purposes, which excludes intangible assets from the calculation of risk based ratios, and as such is useful for investors, regulators, management and others to evaluate capital adequacy and to compare against other financial institutions.

The efficiency ratio is a non-GAAP measure calculated by dividing GAAP noninterest expense by the sum of GAAP net interest income and GAAP noninterest income. The efficiency ratio measures a bank's overhead as a percentage of its revenue. The Company believes that reporting the non-GAAP efficiency ratio more closely measures its effectiveness of controlling operational activities. Further, the operating efficiency ratio is measured by dividing non-GAAP noninterest expense, which excludes the goodwill impairment, by the sum of GAAP net interest income and GAAP noninterest income. The Company considers this information important to shareholders as the significant impact of the goodwill impairment is a one-time event that obscures the operating performance of the company.

Pre-provision net revenue is a non-GAAP financial measure calculated by subtracting noninterest expenses from the sum of net interest income and noninterest income. The Company considers this information important to shareholders because it illustrates revenue excluding the impact of provisions and reversals to the allowance for credit losses on loans. Operating pre-provision net revenue is a non-GAAP financial measure calculated by subtracting noninterest expenses with the impact of the goodwill impairment added back from the sum of net interest income and noninterest income. The Company considers this information important to shareholders as the significant impact of the goodwill impairment is a one-time event that obscures the operating performance of the company.

		June 30,				March 31,			June 30,
		2025				2025			2024
Net (loss) income		$	(69,775	)		$	1,675		$	(83,802	)
Add back of goodwill impairment			—				—			104,168
Operating Net (loss) income (Non-GAAP)		$	(69,775	)		$	1,675		$	20,366
(Loss) earnings per share (diluted)4		$	(2.30	)		$	0.06		$	(2.78	)
Add back of goodwill impairment per share (diluted)			—				—			3.45
Operating earnings (loss) per share (diluted) (Non-GAAP)		$	(2.30	)		$	0.06		$	0.67

Operating net (loss) income and operating (loss) earnings per share (diluted) are non-GAAP financial measures derived from GAAP based amounts. The Company calculates operating net (loss) income by excluding from net (loss) income the one-time goodwill impairment of $104.2 million. During the second quarter of 2024, the Company performed an annual impairment test as a result of management's evaluation of current economic conditions, and concluded that goodwill had become impaired, which resulted in an impairment charge of $104.2 million to reduce the carrying value of the Company's goodwill to zero. The Company calculates operating earnings (loss) per share (diluted) by dividing the one-time goodwill impairment of $104.2 million by the weighted average shares outstanding (diluted) for the three and six months ended June 30, 2024. The Company considers this information important to shareholders because operating net (loss) income and operating (loss) earnings per share (diluted) provides investors insight into how Company earnings changed exclusive of the impairment charge to allow investors to better compare the Company's performance against historical periods. The table above provides a reconciliation of operating net income (loss) and operating earnings (loss) per share (diluted) to the nearest GAAP measure.

______________________________
1 A reconciliation of non-GAAP financial measures and the nearest GAAP measures is provided in the GAAP Reconciliation to Non-GAAP Financial Measures tables that accompany this document.
2 Calculated as the ACL attributable to loans collateralized by performing office properties as a percentage of total loans.
3 A reconciliation of non-GAAP financial measures and the nearest GAAP measures is provided in the GAAP Reconciliation to Non-GAAP Financial Measures tables that accompany this document.
4 For periods ended with a net loss, anti-dilutive financial instruments have been excluded from the calculation of GAAP diluted EPS. Operating diluted EPS calculations include the impact of outstanding equity-based awards for all periods.

EAGLE BANCORP, INC.
CONTACT:
Eric R. Newell
240.497.1796

For the June 30, 2025 Earnings Presentation, click 2025 EGBN Earnings DECK 6-30-2025 FINAL

FAQ

What caused Eagle Bancorp's (EGBN) significant loss in Q2 2025?

Eagle Bancorp's Q2 2025 loss was primarily due to a $111.9 million increase in provision expense, mainly related to addressing risk in their office loan portfolio and credit loss reserves.

What is Eagle Bancorp's (EGBN) dividend payment for Q2 2025?

Eagle Bancorp declared a cash dividend of $0.165 per share, payable on August 29, 2025, to shareholders of record on August 8, 2025.

How much are Eagle Bancorp's (EGBN) insured deposits as of Q2 2025?

Eagle Bancorp reported $6.8 billion in insured deposits, representing 75% of total deposits, compared to $6.9 billion (74.7%) in the previous quarter.

What is Eagle Bancorp's (EGBN) current allowance for credit losses?

Eagle Bancorp's allowance for credit losses increased to 2.38% of total loans in Q2 2025, up from 1.63% in the previous quarter.

How did Eagle Bancorp's (EGBN) net interest margin perform in Q2 2025?

Eagle Bancorp's net interest margin increased to 2.37% in Q2 2025 from 2.28% in Q1, driven by lower borrowings and reduced funding costs.