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
