BETHESDA, Md., April 22, 2026 (GLOBE NEWSWIRE) -- Eagle Bancorp, Inc. ("Eagle" or 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 first quarter ended March 31, 2026.
Eagle reported a net income of $14.7 million or $0.48 per share for the first quarter 2026, compared to a net loss of $2.4 million or $(0.08) per share for the fourth quarter of 2025. The $17.1 million improvement from the prior quarter is primarily due to a $14.7 million decrease in noninterest expense related to lower loan disposition expenses, a $10 million legal provision that did not reoccur in the first quarter, and a $2.1 million lower provision for credit losses. This benefit from a decline in noninterest expense and a lower provision was partially offset by a $4.6 million reduction in net interest income and a $3.9 million increase in the tax expense.
Pre-provision net revenue ("PPNR")1 also improved in the first quarter to $27.7 million compared to $10.7 million for the prior quarter reflecting the noninterest expense and net interest income factors discussed above.
"We are pleased to begin the year with meaningful progress against our near-term strategic priorities, including asset quality improvement, capital accretion through earnings, and continued diversification of our balance sheet across both assets and funding sources." said Susan G. Riel, President, and Chief Executive Officer of the Company.
"Our first quarter results reflect the resiliency of our franchise and the deliberate work underway to reposition it. We delivered strong C&I growth, returned to profitability, expanded net interest margin, and meaningfully reduced our reliance on wholesale funding. Our CRE concentration declined below 300%, and criticized and classified balances continued their downward trajectory. At the same time, we recognize that our current level of profitability does not yet reflect the earnings power of this franchise, and we are focused on executing against a clear plan to expand pre-provision net revenue over the course of 2026." Ms. Riel added.
Additionally, the Company is announcing today a cash dividend in the amount of $0.01 per share. The cash dividend will be payable on May 15, 2026 to shareholders of record on May 4, 2026.
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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.
First Quarter of 2026 Key Elements
The Company announces today the declaration of a common stock dividend of $0.01 per share.
Total C&I loans (including owner-occupied) increased $157.7 million or 5.2%, and C&I deposits decreased $238.0 million, or 11.4% from the previous quarter. Year-over-year period end C&I deposit growth totaled $400.6 million or 28%.
In the first quarter of 2026 the Bank's CRE concentration ratio was 295.1% compared to 336.6% the prior quarter. ADC concentration at March 31 was 75.7% compared to 92.1% at December 31, 2025.
The ACL as a percentage of total loans was 2.12% at quarter-end; down from 2.19% at the prior quarter-end. Performing office coverage2 was 7.39% at quarter-end; as compared to 12.89% at the prior quarter-end, primarily due to a decrease in the qualitative reserve for CRE office loans (“office overlay”) as the CRE office portfolio decreased and improved in risk ratings.
Nonperforming assets increased by $21.9 million to $130.8 million as of March 31, 2026, representing 1.31% of total assets, compared to $109.0 million, representing 1.04% of total assets as of December 31, 2025. During the quarter, nonperforming loan inflows totaled $61.6 million. Reductions of $39.8 million reflected underlying collateral liquidations and sales of loans.
Including loans held for sale, substandard and special mention loans totaled $794.1 million at March 31, 2026, compared to $874.0 million in the prior quarter. Substandard and special mention loans held for sale totaled $55.2 million and $90.7 million at March 31, 2026 and December 31, 2025, respectively.
Annualized quarterly net charge-offs for the first quarter of 2026 were 1.46% compared to 0.67% for the fourth quarter of 2025.
The net interest margin ("NIM") increased to 2.47% for the first quarter of 2026, compared to 2.38% for the prior quarter, primarily driven by improved funding mix as core deposit inflows and reduced brokered deposit usage lowered cost of funds. This improvement was partially offset by lower interest income from declines in cash and loan average balances.
At quarter-end, the common equity ratio, tangible common equity ratio1, and common equity tier 1 capital (to risk-weighted assets) ratio were 11.51%, 11.51%, and 13.80%, respectively.
Total estimated insured deposits decreased at quarter-end to $6.4 billion, representing 74.2% of deposits, compared to $6.9 billion, or 75.3% in the prior quarter. This decrease was primarily due to reduced usage of brokered deposits.
Total on-balance sheet liquidity and available capacity was $4.3 billion, compared to $2.2 billion in uninsured deposits, resulting in a coverage ratio of over 195%.
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1 A reconciliation of non-GAAP financial measures and the nearest GAAP measures is provided in the GAAP 2 Reconciliation to Non-GAAP Financial Measures tables that accompany this document. Calculated as the ACL attributable to loans collateralized by performing office properties as a percentage of total office loans.
Income Statement
Net interest income was $63.7 million for the first quarter of 2026, compared to $68.3 million for the prior quarter. Both interest income and interest expense declined during the quarter, reflecting the impact of declining average interest-earning balances, lower yields and fewer days in the quarter.
Provision for credit losses was $13.4 million for the first quarter of 2026, compared to $15.5 million for the prior quarter. The decrease was primarily driven by a decrease in the qualitative office overlay partially offset by updated quantitative assumptions used to calculate our current expected credit losses. The provision related to the reserve for unfunded commitments was a reversal of $1.8 million, compared to a provision expense of $203 thousand in the prior quarter.
Noninterest income was increased $0.5 million to $12.7 million for the first quarter of 2026, compared to $12.2 million for the prior quarter. In the quarter, gain on the sale of loans totaled $3.6 million as compared to a loss on sale of loans in the linked period of $1.1 million.
Noninterest expense was $48.7 million for the first quarter of 2026, compared to $69.8 million for the prior quarter. The decrease over the linked quarter was primarily due to $14.7 million decrease in expenses related to loan dispositions, as well as a $10 million legal provision, in the prior quarter that did not reoccur in the first quarter of 2026.
Income tax expense was $1.3 million for the first quarter of 2026, compared to a $2.6 million benefit for the prior quarter. The increase in income tax expense was primarily due to higher pre-tax income during the first quarter of 2026.
Loans and Funding
Total loans, including loans held for sale, were $7.0 billion at March 31, 2026, a decrease of 5% 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 $8.6 billion, down $0.5 billion, or 6%, from the prior quarter-end. Of the quarter-over-quarter decline, brokered deposits represents $412.7 million. The decrease was primarily driven by lower balances in savings and money market accounts and brokered time deposits. Deposits decreased $685.8 million compared to March 31, 2025.
Asset Quality
Allowance for credit losses was 2.12% of total loans held for investment at March 31, 2026, compared to 2.19% at the prior quarter-end. Performing office coverage was 7.39% at quarter-end; as compared to 12.89% at the prior quarter-end, primarily due to a decrease in the qualitative reserve for office overlay as the CRE office portfolio decreased and improved in risk ratings.
Net charge-offs were $26.0 million for the quarter compared to $12.3 million in the fourth quarter of 2025.
Nonperforming assets ("NPAs") were $130.8 million at March 31, 2026.
NPAs as a percentage of assets were 1.31% at March 31, 2026, compared to 1.04% at the prior quarter-end. At March 31, 2026, OREO consisted of three properties with an aggregate carrying value of $2.1 million.
Loans 30-89 days past due were $18.0 million at March 31, 2026, compared to $49.9 million at the prior quarter-end.
Capital
Total shareholders' equity was $1.1 billion at March 31, 2026, up 1.2% from the prior quarter-end. The increase in shareholders' equity of $14.0 million was primarily due to quarterly income that increased capital.
Book value per share and tangible book value per share3 were $37.56 and $37.56, an increase of 0.8% from the prior quarter-end.
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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.
Additional financial information: The financial information that follows provides more detail on the Company's financial performance for the three months ended March 31, 2026 as compared to the three months ended December 31, 2025 and March 31, 2025, 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, 2025, 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 first quarter of 2026 financial results on Thursday, April 23, 2026 at 10:00 a.m. Eastern Time.
The listen-only webcast can be accessed at:
For analysts who wish to participate in the conference call, please register at the following URL:
https://register-conf.media-server.com/register/BI435096520d554131b588151b80b05bdf
A replay of the conference call will be available on the Company's website through Thursday, May 7, 2026: 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, financial condition, asset quality 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 economic effects of an extended government shutdown; the proposal, announcement or imposition of tariffs; volatility in interest rates and interest rate, monetary and fiscal policy; inflation levels; competitive factors; our ability to access cost-effective funding) and other conditions (such as the impact of bank failures, credit losses 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, 2025 and in other periodic and current reports filed with the SEC, including the Company's Quarterly Reports on Form 10-Q. 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. 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 | |||||||||||
March 31, | December 31, | March 31, | |||||||||
2026 | 2025 | 2025 | |||||||||
Interest Income | |||||||||||
Interest and fees on loans | $ | 109,566 | $ | 119,744 | $ | 126,136 | |||||
Interest and dividends on investment securities | 9,646 | 10,083 | 11,912 | ||||||||
Interest on balances with other banks and short-term investments | 12,689 | 19,699 | 15,830 | ||||||||
Total interest income | 131,901 | 149,526 | 153,878 | ||||||||
Interest Expense | |||||||||||
Interest on deposits | 66,181 | 79,147 | 77,211 | ||||||||
Interest on customer repurchase agreements | — | 52 | 260 | ||||||||
Interest on other short-term borrowings | — | — | 8,733 | ||||||||
Interest on long-term borrowings | 2,026 | 2,024 | 2,025 | ||||||||
Total interest expense | 68,207 | 81,223 | 88,229 | ||||||||
Net Interest Income | 63,694 | 68,303 | 65,649 | ||||||||
Provision for Credit Losses | 13,382 | 15,468 | 26,255 | ||||||||
Provision (Reversal) for Credit Losses for Unfunded Commitments | (1,779 | ) | 203 | (297 | ) | ||||||
Net Interest Income (Loss) After Provision for Credit Losses | 52,091 | 52,632 | 39,691 | ||||||||
Noninterest Income | |||||||||||
Service charges on deposits | 1,732 | 1,840 | 1,743 | ||||||||
Gain (loss) on sale of loans | 3,550 | (1,137 | ) | — | |||||||
Net gain (loss) on sale of investment securities | 3 | 9 | 4 | ||||||||
Increase in cash surrender value of bank-owned life insurance | 5,679 | 5,636 | 4,282 | ||||||||
Other income | 1,744 | 5,844 | 2,178 | ||||||||
Total noninterest income | 12,708 | 12,192 | 8,207 | ||||||||
Noninterest Expense | |||||||||||
Salaries and employee benefits | 23,247 | 22,661 | 21,968 | ||||||||
Premises and equipment expenses | 2,533 | 2,861 | 3,203 | ||||||||
Marketing and advertising | 868 | 1,185 | 1,371 | ||||||||
Data processing | 4,204 | 4,353 | 3,978 | ||||||||
Legal, accounting and professional fees | 4,312 | 3,100 | 3,122 | ||||||||
FDIC insurance | 7,009 | 7,709 | 8,962 | ||||||||
Legal Contingency | — | 10,000 | — | ||||||||
Other expenses | 6,567 | 17,968 | 2,847 | ||||||||
Total noninterest expense | 48,740 | 69,837 | 45,451 | ||||||||
Income (Loss) Before Income Tax Expense | 16,059 | (5,013 | ) | 2,447 | |||||||
Income Tax Expense (Benefit) | 1,341 | (2,574 | ) | 772 | |||||||
Net Income (Loss) | $ | 14,718 | $ | (2,439 | ) | $ | 1,675 | ||||
Earnings (Loss) Per Common Share | |||||||||||
Basic | $ | 0.48 | $ | (0.08 | ) | $ | 0.06 | ||||
Diluted | $ | 0.48 | $ | (0.08 | ) | $ | 0.06 | ||||
Eagle Bancorp, Inc. | |||||||||||
Consolidated Balance Sheets (Unaudited) | |||||||||||
(Dollars in thousands, except per share data) | |||||||||||
March 31, | December 31, | March 31, | |||||||||
2026 | 2025 | 2025 | |||||||||
Assets | |||||||||||
Cash and due from banks | $ | 12,626 | $ | 11,692 | $ | 15,484 | |||||
Interest-bearing deposits with banks and other short-term investments | 566,733 | 684,001 | 661,173 | ||||||||
Investment securities available-for-sale at fair value (amortized cost of $1,008,764, $1,055,146, and $1,330,077 respectively, and allowance for credit losses of $—, $—, and $—, respectively) | 930,314 | 976,770 | 1,214,237 | ||||||||
Investment securities held-to-maturity at amortized cost, net of allowance for credit losses of $907, $1,030, and $1,275 respectively (fair value of $757,238, $786,662, and $774,947 respectively) | 841,273 | 854,780 | 924,473 | ||||||||
Federal Reserve and Federal Home Loan Bank stock | 27,685 | 28,327 | 51,467 | ||||||||
Loans held for sale, at lower of cost or fair value | 55,702 | 90,650 | 15,251 | ||||||||
Loans held for investment, at amortized cost | 6,938,560 | 7,280,459 | 7,943,306 | ||||||||
Less: allowance for credit losses | (147,163 | ) | (159,604 | ) | (129,469 | ) | |||||
Loans held for investment, net of allowance | 6,791,397 | 7,120,855 | 7,813,837 | ||||||||
Premises and equipment, net | 12,864 | 12,800 | 7,079 | ||||||||
Operating lease right-of-use assets | 27,569 | 28,451 | 32,769 | ||||||||
Deferred income taxes | 132,729 | 132,330 | 84,798 | ||||||||
Bank-owned life insurance | 339,844 | 335,177 | 320,055 | ||||||||
Other real estate owned | 2,059 | 2,059 | 2,459 | ||||||||
Other assets | 213,486 | 219,311 | 174,279 | ||||||||
Total Assets | $ | 9,954,281 | $ | 10,497,203 | $ | 11,317,361 | |||||
Liabilities and Shareholders' Equity | |||||||||||
Liabilities | |||||||||||
Deposits: | |||||||||||
Noninterest-bearing demand | $ | 1,488,668 | $ | 1,433,952 | $ | 1,607,826 | |||||
Interest-bearing transaction | 978,330 | 1,038,154 | 926,722 | ||||||||
Savings and money market | 3,286,125 | 3,624,813 | 3,558,919 | ||||||||
Time deposits | 2,838,376 | 3,036,687 | 3,183,801 | ||||||||
Total deposits | 8,591,499 | 9,133,606 | 9,277,268 | ||||||||
Customer repurchase agreements | — | — | 32,357 | ||||||||
Other short-term borrowings | — | — | 490,000 | ||||||||
Long-term borrowings | 76,511 | 76,428 | 76,181 | ||||||||
Operating lease liabilities | 34,532 | 35,256 | 38,484 | ||||||||
Reserve for unfunded commitments | 3,311 | 5,090 | 3,166 | ||||||||
Other liabilities | 103,151 | 115,540 | 155,014 | ||||||||
Total Liabilities | 8,809,004 | 9,365,920 | 10,072,470 | ||||||||
Shareholders' Equity | |||||||||||
Common stock, par value $0.01 per share; shares authorized 100,000,000, shares issued and outstanding 30,494,659, 30,359,632, and 30,368,843 respectively | 302 | 300 | 300 | ||||||||
Additional paid-in capital | 383,050 | 382,499 | 386,535 | ||||||||
Retained earnings | 851,998 | 837,643 | 978,995 | ||||||||
Accumulated other comprehensive loss | (90,073 | ) | (89,159 | ) | (120,939 | ) | |||||
Total Shareholders' Equity | 1,145,277 | 1,131,283 | 1,244,891 | ||||||||
Total Liabilities and Shareholders' Equity | $ | 9,954,281 | $ | 10,497,203 | $ | 11,317,361 | |||||
Loan Mix and Asset Quality | ||||||||||||||
(Dollars in thousands) | ||||||||||||||
March 31, | December 31, | March 31, | ||||||||||||
2026 | 2025 | 2025 | ||||||||||||
Amount | % | Amount | % | Amount | % | |||||||||
Loan Balances - Period End: | ||||||||||||||
Commercial | $ | 1,432,933 | 21 | % | $ | 1,338,486 | 18 | % | $ | 1,178,569 | 15 | % | ||
Income producing - commercial real estate | 3,030,004 | 44 | % | 3,350,718 | 46 | % | $ | 3,967,124 | 49 | % | ||||
Owner occupied - commercial real estate | 1,686,210 | 23 | % | 1,602,124 | 22 | % | $ | 1,403,668 | 18 | % | ||||
Real estate mortgage - residential | 35,743 | 1 | % | 37,100 | 1 | % | $ | 48,821 | 1 | % | ||||
Construction - commercial and residential | 617,992 | 9 | % | 795,400 | 11 | % | $ | 1,210,788 | 15 | % | ||||
Construction - C&I (owner occupied) | 87,666 | 1 | % | 108,468 | 1 | % | $ | 83,417 | 1 | % | ||||
Home equity | 44,948 | 1 | % | 47,448 | 1 | % | $ | 50,121 | 1 | % | ||||
Other consumer | 3,064 | — | % | 715 | — | % | $ | 798 | — | % | ||||
Total loans | $ | 6,938,560 | 100 | % | $ | 7,280,459 | 100 | % | $ | 7,943,306 | 100 | % | ||
Three Months Ended or As Of | ||||||||
March 31, | December 31, | March 31, | ||||||
2026 | 2025 | 2025 | ||||||
Asset Quality: | ||||||||
Nonperforming loans | $ | 128,761 | $ | 106,897 | $ | 200,447 | ||
Other real estate owned | 2,059 | 2,059 | 2,459 | |||||
Nonperforming assets | $ | 130,820 | $ | 108,956 | $ | 202,906 | ||
Net charge-offs | $ | 25,960 | $ | 12,259 | $ | 11,230 | ||
Special mention | $ | 290,827 | $ | 268,881 | $ | 273,380 | ||
Substandard | $ | 447,604 | $ | 514,497 | $ | 501,565 | ||
Eagle Bancorp, Inc. | |||||||||||||||||||
Consolidated Average Balances, Interest Yields And Rates vs. Prior Quarter (Unaudited) | |||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||
Three Months Ended | |||||||||||||||||||
March 31, 2026 | December 31, 2025 | ||||||||||||||||||
Average | Interest | Average | Average | Interest | Average | ||||||||||||||
Assets | |||||||||||||||||||
Interest earning assets: | |||||||||||||||||||
Interest-bearing deposits with other banks and other short-term investments | $ | 1,420,918 | $ | 12,689 | 3.62 | % | $ | 1,997,019 | $ | 19,770 | 3.93 | % | |||||||
Loans held for sale (1) | 85,096 | 1,380 | 6.58 | % | 135,981 | 1,626 | 4.74 | % | |||||||||||
Loans (1) (2) | 7,112,483 | 108,185 | 6.17 | % | 7,338,320 | 118,118 | 6.39 | % | |||||||||||
Investment securities available-for-sale (2) | 988,390 | 5,187 | 2.13 | % | 1,050,620 | 5,501 | 2.08 | % | |||||||||||
Investment securities held-to-maturity (2) | 849,802 | 4,460 | 2.13 | % | 867,222 | 4,582 | 2.10 | % | |||||||||||
Total interest earning assets | 10,456,689 | 131,901 | 5.12 | % | 11,389,162 | 149,597 | 5.21 | % | |||||||||||
Noninterest earning assets | 734,996 | 733,464 | |||||||||||||||||
Less: allowance for credit losses | (161,755 | ) | (157,925 | ) | |||||||||||||||
Total noninterest earning assets | 573,241 | 575,539 | |||||||||||||||||
Total Assets | $ | 11,029,930 | $ | 11,964,701 | |||||||||||||||
Liabilities and Shareholders’ Equity | |||||||||||||||||||
Interest bearing liabilities: | |||||||||||||||||||
Interest-bearing transaction | $ | 1,462,553 | $ | 9,317 | 2.58 | % | $ | 1,574,757 | $ | 11,055 | 2.79 | % | |||||||
Savings and money market | 3,437,234 | 25,851 | 3.05 | % | 3,931,453 | 33,040 | 3.33 | % | |||||||||||
Time deposits | 2,934,494 | 30,957 | 4.28 | % | 3,163,520 | 35,052 | 4.40 | % | |||||||||||
Total interest bearing deposits | 7,834,281 | 66,125 | 3.42 | % | 8,669,730 | 79,147 | 3.62 | % | |||||||||||
Customer repurchase agreements | — | — | | — | % | 6,656 | 53 | | 3.16 | % | |||||||||
Derivative collateral liability | 7,745 | 56 | 2.98 | % | 6,200 | 70 | 4.48 | % | |||||||||||
Long-term borrowings | 76,483 | 2,026 | 10.73 | % | 76,400 | 2,024 | 10.51 | % | |||||||||||
Total interest bearing liabilities | 7,918,509 | 68,207 | 3.49 | % | 8,758,986 | 81,294 | 3.68 | % | |||||||||||
Noninterest bearing liabilities: | |||||||||||||||||||
Noninterest bearing demand | 1,817,726 | 1,920,522 | |||||||||||||||||
Other liabilities | 146,110 | 144,791 | |||||||||||||||||
Total noninterest bearing liabilities | 1,963,836 | 2,065,313 | |||||||||||||||||
Shareholders' equity | 1,147,585 | 1,140,402 | |||||||||||||||||
Total Liabilities and Shareholders’ Equity | $ | 11,029,930 | $ | 11,964,701 | |||||||||||||||
Net interest income | $ | 63,694 | $ | 68,303 | |||||||||||||||
Net interest spread | 1.63 | % | 1.53 | % | |||||||||||||||
Net interest margin | 2.47 | % | 2.38 | % | |||||||||||||||
Cost of funds | 2.84 | % | 3.02 | % | |||||||||||||||
(1) Loans placed on nonaccrual status are included in average balances. Net loan fees and late charges included in interest income on loans totaled $3.9 million and $3.9 million for the three months ended March 31, 2026 and December 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 March 31, | |||||||||||||||||||
2026 | 2025 | ||||||||||||||||||
Average | Interest | Average | Average | Interest | Average | ||||||||||||||
Assets | |||||||||||||||||||
Interest earning assets: | |||||||||||||||||||
Interest-bearing deposits with other banks and other short-term investments | $ | 1,420,918 | $ | 12,689 | 3.62 | % | $ | 1,450,464 | $ | 15,830 | 4.43 | % | |||||||
Loans held for sale (1) | 85,096 | 1,380 | 6.58 | % | 169 | — | — | % | |||||||||||
Loans (1) (2) | 7,112,483 | 108,185 | 6.17 | % | 7,933,695 | 126,136 | 6.45 | % | |||||||||||
Investment securities available-for-sale (2) | 988,390 | 5,187 | 2.13 | % | 1,321,954 | 6,857 | 2.10 | % | |||||||||||
Investment securities held-to-maturity (2) | 849,802 | 4,460 | 2.13 | % | 933,880 | 5,055 | 2.20 | % | |||||||||||
Total interest earning assets | 10,456,689 | 131,901 | 5.12 | % | 11,640,162 | 153,878 | 5.36 | % | |||||||||||
Noninterest earning assets | 734,996 | 596,585 | |||||||||||||||||
Less: allowance for credit losses | (161,755 | ) | (118,557 | ) | |||||||||||||||
Total noninterest earning assets | 573,241 | 478,028 | |||||||||||||||||
Total Assets | $ | 11,029,930 | $ | 12,118,190 | |||||||||||||||
Liabilities and Shareholders’ Equity | |||||||||||||||||||
Interest bearing liabilities: | |||||||||||||||||||
Interest-bearing transaction | $ | 1,462,553 | $ | 9,317 | 2.58 | % | $ | 1,368,609 | $ | 9,908 | 2.94 | % | |||||||
Savings and money market | 3,437,234 | 25,851 | 3.05 | % | 3,682,217 | 32,389 | 3.57 | % | |||||||||||
Time deposits | 2,934,494 | 30,957 | 4.28 | % | 2,951,111 | 34,914 | 4.80 | % | |||||||||||
Total interest bearing deposits | 7,834,281 | 66,125 | 3.42 | % | 8,001,937 | 77,211 | 3.91 | % | |||||||||||
Customer repurchase agreements | — | — | | — | % | 36,572 | 260 | 2.88 | % | ||||||||||
Derivative collateral liability | 7,745 | 56 | 2.98 | % | — | — | — | % | |||||||||||
Other short-term borrowings | — | — | — | % | 682,222 | 8,733 | 5.19 | % | |||||||||||
Long-term borrowings | 76,483 | 2,026 | 10.73 | % | 76,146 | 2,025 | 10.79 | % | |||||||||||
Total interest bearing liabilities | 7,918,509 | 68,207 | 3.49 | % | 8,796,877 | 88,229 | 4.07 | % | |||||||||||
Noninterest bearing liabilities: | |||||||||||||||||||
Noninterest bearing demand | 1,817,726 | 1,881,296 | |||||||||||||||||
Other liabilities | 146,110 | 197,212 | |||||||||||||||||
Total noninterest bearing liabilities | 1,963,836 | 2,078,508 | |||||||||||||||||
Shareholders' equity | 1,147,585 | 1,242,805 | |||||||||||||||||
Total Liabilities and Shareholders’ Equity | $ | 11,029,930 | $ | 12,118,190 | |||||||||||||||
Net interest income | $ | 63,694 | $ | 65,649 | |||||||||||||||
Net interest spread | 1.63 | % | 1.29 | % | |||||||||||||||
Net interest margin | 2.47 | % | 2.28 | % | |||||||||||||||
Cost of funds | 2.84 | % | 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 $3.9 million and $3.8 million for the three months ended March 31, 2026 and 2025, 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 | ||||||||||||||||||||||||||||||||
March 31, | December 31, | September 30, | June 30, | March 31, | December 31, | September 30, | June 30, | |||||||||||||||||||||||||
Income Statements: | ||||||||||||||||||||||||||||||||
Total interest income | $ | 131,901 | $ | 149,526 | $ | 150,103 | $ | 151,443 | $ | 153,878 | $ | 168,417 | $ | 173,813 | $ | 169,731 | ||||||||||||||||
Total interest expense | 68,207 | 81,223 | 81,944 | 83,667 | 88,229 | 97,623 | 101,970 | 98,378 | ||||||||||||||||||||||||
Net interest income | 63,694 | 68,303 | 68,159 | 67,776 | 65,649 | 70,794 | 71,843 | 71,353 | ||||||||||||||||||||||||
Provision for credit losses | 13,382 | 15,468 | 113,215 | 138,159 | 26,255 | 12,132 | 10,094 | 8,959 | ||||||||||||||||||||||||
Provision (reversal) for credit losses for unfunded commitments | (1,779 | ) | 203 | (38 | ) | 1,759 | (297 | ) | (1,598 | ) | (1,593 | ) | 608 | |||||||||||||||||||
Net interest income after provision for credit losses | 52,091 | 52,632 | (45,018 | ) | (72,142 | ) | 39,691 | 60,260 | 63,342 | 61,786 | ||||||||||||||||||||||
Noninterest income before investment gain | 12,705 | 12,183 | 4,477 | 8,268 | 8,203 | 4,063 | 6,948 | 5,329 | ||||||||||||||||||||||||
Net gain (loss) on sale of investment securities | 3 | 9 | (1,982 | ) | (1,854 | ) | 4 | 4 | 3 | 3 | ||||||||||||||||||||||
Total noninterest income | 12,708 | 12,192 | 2,495 | 6,414 | 8,207 | 4,067 | 6,951 | 5,332 | ||||||||||||||||||||||||
Salaries and employee benefits | 23,247 | 22,661 | 21,290 | 21,940 | 21,968 | 22,597 | 21,675 | 21,770 | ||||||||||||||||||||||||
Premises and equipment expenses | 2,533 | 2,861 | 2,944 | 3,019 | 3,203 | 2,635 | 2,794 | 2,894 | ||||||||||||||||||||||||
Marketing and advertising | 868 | 1,185 | 1,316 | 1,144 | 1,371 | 1,340 | 1,588 | 1,662 | ||||||||||||||||||||||||
Legal Contingency | — | 10,000 | — | — | — | — | — | — | ||||||||||||||||||||||||
Other expenses | 22,092 | 33,130 | 16,347 | 17,367 | 18,909 | 17,960 | 17,557 | 120,165 | ||||||||||||||||||||||||
Total noninterest expense | 48,740 | 69,837 | 41,897 | 43,470 | 45,451 | 44,532 | 43,614 | 146,491 | ||||||||||||||||||||||||
Income (loss) before income tax expense | 16,059 | (5,013 | ) | (84,420 | ) | (109,198 | ) | 2,447 | 19,795 | 26,679 | (79,373 | ) | ||||||||||||||||||||
Income tax expense | 1,341 | (2,574 | ) | (16,907 | ) | (39,423 | ) | 772 | 4,505 | 4,864 | 4,429 | |||||||||||||||||||||
Net income (loss) | 14,718 | (2,439 | ) | (67,513 | ) | (69,775 | ) | 1,675 | 15,290 | 21,815 | (83,802 | ) | ||||||||||||||||||||
Per Share Data: | ||||||||||||||||||||||||||||||||
Earnings (loss) per weighted average common share, basic | $ | 0.48 | $ | (0.08 | ) | $ | (2.22 | ) | $ | (2.30 | ) | $ | 0.06 | $ | 0.51 | $ | 0.72 | $ | (2.78 | ) | ||||||||||||
Earnings (loss) per weighted average common share, diluted | $ | 0.48 | $ | (0.08 | ) | $ | (2.22 | ) | $ | (2.30 | ) | $ | 0.06 | $ | 0.50 | $ | 0.72 | $ | (2.78 | ) | ||||||||||||
Weighted average common shares outstanding, basic | 30,422,259 | 30,368,432 | 30,367,997 | 30,373,167 | 30,275,001 | 30,199,433 | 30,173,852 | 30,185,609 | ||||||||||||||||||||||||
Weighted average common shares outstanding, diluted | 30,540,379 | 30,584,374 | 30,367,997 | 30,510,847 | 30,404,262 | 30,321,644 | 30,241,699 | 30,185,609 | ||||||||||||||||||||||||
Actual shares outstanding at period end | 30,494,659 | 30,359,632 | 30,366,555 | 30,364,983 | 30,368,843 | 30,202,003 | 30,173,200 | 30,180,482 | ||||||||||||||||||||||||
Book value per common share at period end | $ | 37.56 | $ | 37.26 | $ | 37.00 | $ | 39.03 | $ | 40.99 | $ | 40.60 | $ | 40.61 | $ | 38.75 | ||||||||||||||||
Tangible book value per common share at period end(1) | $ | 37.56 | $ | 37.26 | $ | 37.00 | $ | 39.03 | $ | 40.99 | $ | 40.59 | $ | 40.61 | $ | 38.74 | ||||||||||||||||
Dividend per common share | $ | 0.010 | $ | 0.010 | $ | 0.010 | $ | 0.165 | $ | 0.165 | $ | 0.165 | $ | 0.165 | $ | 0.45 | ||||||||||||||||
Performance Ratios (annualized): | ||||||||||||||||||||||||||||||||
Return on average assets | 0.54 | % | (0.08 | )% | (2.31 | )% | (2.33 | )% | 0.06 | % | 0.48 | % | 0.70 | % | (2.73 | )% | ||||||||||||||||
Return on average common equity | 5.20 | % | (0.85 | )% | (22.66 | )% | (22.35 | )% | 0.55 | % | 4.94 | % | 7.22 | % | (26.67 | )% | ||||||||||||||||
Return on average tangible common equity(1) | 5.20 | % | (0.85 | )% | (22.66 | )% | (22.35 | )% | 0.55 | % | 4.94 | % | 7.22 | % | (28.96 | )% | ||||||||||||||||
Net interest margin | 2.47 | % | 2.38 | % | 2.43 | % | 2.37 | % | 2.28 | % | 2.29 | % | 2.37 | % | 2.40 | % | ||||||||||||||||
Efficiency ratio(1)(2) | 63.8 | % | 86.8 | % | 59.3 | % | 58.6 | % | 61.5 | % | 59.5 | % | 55.4 | % | 191.0 | % | ||||||||||||||||
Other Ratios: | ||||||||||||||||||||||||||||||||
Allowance for credit losses to total loans(3) | 2.12 | % | 2.19 | % | 2.14 | % | 2.38 | % | 1.63 | % | 1.44 | % | 1.40 | % | 1.33 | % | ||||||||||||||||
Allowance for credit losses to total nonperforming loans | 114.29 | % | 149.31 | % | 131.67 | % | 81.17 | % | 64.59 | % | 54.81 | % | 83.25 | % | 110.06 | % | ||||||||||||||||
Nonperforming assets to total assets | 1.31 | % | 1.04 | % | 1.23 | % | 2.16 | % | 1.79 | % | 1.90 | % | 1.22 | % | 0.88 | % | ||||||||||||||||
Net charge-offs (recoveries) (annualized) to average total loans(3) | 1.46 | % | 0.67 | % | 7.36 | % | 4.22 | % | 0.57 | % | 0.48 | % | 0.26 | % | 0.11 | % | ||||||||||||||||
Tier 1 capital (to average assets) | 10.63 | % | 9.72 | % | 10.40 | % | 10.63 | % | 11.11 | % | 10.74 | % | 10.77 | % | 10.58 | % | ||||||||||||||||
Total capital (to risk weighted assets) | 15.05 | % | 14.33 | % | 14.83 | % | 15.27 | % | 15.86 | % | 15.86 | % | 15.51 | % | 15.07 | % | ||||||||||||||||
Common equity tier 1 capital (to risk weighted assets) | 13.80 | % | 13.07 | % | 13.58 | % | 14.01 | % | 14.61 | % | 14.63 | % | 14.30 | % | 13.92 | % | ||||||||||||||||
Tangible common equity ratio(1) | 11.51 | % | 10.78 | % | 10.39 | % | 11.18 | % | 11.00 | % | 11.02 | % | 10.86 | % | 10.35 | % | ||||||||||||||||
Average Balances (in thousands): | ||||||||||||||||||||||||||||||||
Total assets | $ | 11,029,930 | $ | 11,964,701 | $ | 11,597,399 | $ | 11,989,095 | $ | 12,118,190 | $ | 12,575,722 | $ | 12,360,899 | $ | 12,361,500 | ||||||||||||||||
Total earning assets | 10,456,689 | 11,389,162 | 11,137,543 | 11,487,006 | 11,640,162 | 12,303,940 | 12,072,891 | 11,953,446 | ||||||||||||||||||||||||
Total loans(3) | 7,112,483 | 7,338,320 | 7,648,459 | 7,942,333 | 7,933,695 | 7,971,907 | 8,026,524 | 8,003,206 | ||||||||||||||||||||||||
Total deposits | 9,652,007 | 10,590,252 | 10,163,215 | 10,226,095 | 9,883,233 | 10,056,463 | 9,344,414 | 9,225,266 | ||||||||||||||||||||||||
Total borrowings | 76,483 | 83,056 | 131,225 | 355,914 | 794,940 | 1,118,276 | 1,654,736 | 1,721,283 | ||||||||||||||||||||||||
Total shareholders' equity | 1,147,585 | 1,140,402 | 1,182,148 | 1,252,252 | 1,242,805 | 1,230,573 | 1,201,477 | 1,263,627 | ||||||||||||||||||||||||
(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) | |||||||||||
Three Months Ended | |||||||||||
March 31, | December 31, | March 31, | |||||||||
2026 | 2025 | 2025 | |||||||||
Tangible common equity | |||||||||||
Common shareholders' equity | $ | 1,145,277 | $ | 1,131,283 | $ | 1,244,891 | |||||
Less: Intangible assets | — | — | (11 | ) | |||||||
Tangible common equity | $ | 1,145,277 | $ | 1,131,283 | $ | 1,244,880 | |||||
Tangible common equity ratio | |||||||||||
Total assets | $ | 9,954,281 | $ | 10,497,203 | $ | 11,317,361 | |||||
Less: Intangible assets | — | — | (11 | ) | |||||||
Tangible assets | $ | 9,954,281 | $ | 10,497,203 | $ | 11,317,350 | |||||
Tangible common equity ratio | 11.51 | % | 10.78 | % | 11.00 | % | |||||
Per share calculations | |||||||||||
Book value per common share | $ | 37.56 | $ | 37.26 | $ | 40.99 | |||||
Less: Intangible book value per common share | $ | — | $ | — | $ | — | |||||
Tangible book value per common share | $ | 37.56 | $ | 37.26 | $ | 40.99 | |||||
Shares outstanding at period end | 30,494,659 | 30,359,632 | 30,368,843 | ||||||||
Average tangible common equity | |||||||||||
Average common shareholders' equity | $ | 1,147,585 | $ | 1,140,391 | $ | 1,242,805 | |||||
Less: Average intangible assets | — | — | (14 | ) | |||||||
Average tangible common equity | $ | 1,147,585 | $ | 1,140,391 | $ | 1,242,791 | |||||
Return on average tangible common equity | |||||||||||
Net (loss) income | $ | 14,718 | $ | (2,439 | ) | $ | 1,675 | ||||
Return on average tangible common equity | 5.20 | % | (0.85 | )% | 0.55 | % | |||||
Efficiency ratio | |||||||||||
Net interest income | $ | 63,694 | $ | 68,303 | $ | 65,649 | |||||
Noninterest income | 12,708 | 12,192 | 8,207 | ||||||||
Operating revenue | $ | 76,402 | $ | 80,495 | $ | 73,856 | |||||
Noninterest expense | $ | 48,740 | $ | 69,837 | $ | 45,451 | |||||
Efficiency ratio | 63.79 | % | 86.76 | % | 61.54 | % | |||||
Pre-provision net revenue | |||||||||||
Net interest income | $ | 63,694 | $ | 68,303 | $ | 65,649 | |||||
Noninterest income | 12,708 | 12,192 | 8,207 | ||||||||
Less: Noninterest expense | (48,740 | ) | (69,837 | ) | (45,451 | ) | |||||
Pre-provision net revenue | $ | 27,662 | $ | 10,658 | $ | 28,405 | |||||
Tangible common equity, tangible common equity to tangible assets (the "tangible common equity ratio"), tangible book value per common share, average tangible common equity, and the 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 considers this information important to shareholders as 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 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.
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.
For the March 31, 2026 Earnings Presentation, click 1Q2026 EGBN Earnings DECK 3-31-2026 FINAL
EAGLE BANCORP, INC.
CONTACT:
Eric R. Newell
240.497.1796