Eagle Bancorp (EGBN) investor relations material

Executive summary

• Net income rose to $24.2 million, or $0.79 per diluted share, from $6.9 million, or $0.23, in Q2, as provision expense fell sharply; NIM expanded for a third consecutive quarter to 2.60%.

• Balance-sheet repositioning continued as loan payoffs reduced total loans, criticized and classified balances declined, and C&I lending grew year over year.

• Priorities are resolving legacy credit issues, stabilizing the balance sheet and funding mix, then pursuing measured relationship-led growth and stronger returns.

Financial highlights

• Net interest income was $61.3 million, down from $62.4 million QoQ; provision for credit losses fell to $2.8 million from $21.4 million.

• PPNR was $23.8 million vs. $29.1 million in Q2; margin expansion and swap activity were offset by lower average earning assets, no Q2-equivalent loan-sale gains, and higher expenses.

• Noninterest income was $9.6 million vs. $10.8 million; no loan-sale gain compared with $2.3 million in Q2 was partly offset by $1.1 million higher swap fee income.

• Noninterest expense rose to $47.1 million from $44.0 million; increases included $1.5 million in accelerated stock awards, $1.3 million in annual incentives, and $1.5 million in salary costs.

• A $5.3 million state tax refund benefit contributed to the Q3 income tax benefit.

Outlook and guidance

• Q4 outlook: average deposits of $8.71–$9.16 billion, average loans of $6.68–$7.02 billion, average earning assets of $9.67–$10.18 billion, and NIM of 2.65%–2.78%.

• Q4 outlook includes noninterest income of $8.9–$9.4 million, noninterest expense of $41.6–$43.8 million, and an annual effective tax rate of 3.0%–2.5%; PPNR is expected to rise from Q3 levels.

• FY2027 outlook: average deposits of $8.55–$9.47 billion, average loans of $6.94–$7.67 billion, NIM of 2.77%–3.05%, noninterest income of $30.7–$34.0 million, and noninterest expense of $169.7–$187.5 million.

• Provision and charge-offs are expected to be lower in 2027 than in 2026; outlook remains subject to credit, rate, liquidity, funding-cost, and economic uncertainty.