Eagle Bancorp (EGBN) investor relations material

Executive summary

• Reported a net loss of $69.8 million for Q2 2025, reflecting elevated credit costs and charge-offs, especially in the CRE office portfolio, and compared to net income of $1.7 million in the prior quarter.

• Strategic actions focused on resolving challenged office loans, viewed as necessary due to long-term sector changes, led to significant financial impact.

• Total assets decreased 5% to $10.6 billion as of June 30, 2025, mainly due to lower deposits and loans.

• Capital ratios remain well above regulatory minimums, with CET1 at 14.01% and tangible common equity at 11.18%.

• Announced a quarterly cash dividend of $0.165 per share, with near-term reduction or suspension under evaluation.

Financial highlights

• Net interest income was $67.8 million in Q2 2025, aided by lower funding costs and reduced borrowings.

• Provision for credit losses surged to $138.2 million in Q2, with net charge-offs of $83.9 million for the quarter and $95.1 million year-to-date.

• Noninterest income was $6.4 million, down from $8.2 million, mainly due to a $1.9 million repositioning trade loss.

• Noninterest expense decreased to $43.5 million, driven by lower legal and professional fees.

• Book value per share declined 4.8% to $39.03.

Outlook and guidance

• Management expects continued remediation activity in the loan portfolio, with credit costs to normalize in 2026.

• Average loan growth outlook revised to flat, with a strategic shift to reduce CRE concentration.

• Deposit growth guidance raised to 6%, driven by digital deposit growth.

• No formal earnings guidance provided; capital and liquidity expected to remain strong.

• NIM expected to improve modestly through 2025; interest rate risk managed neutrally.