Eagle Bancorp (EGBN) investor relations material

Executive summary

• Fourth quarter marked a return to profitability with net income of $7.6 million, improved asset quality, and a more diversified, lower-risk balance sheet following strategic actions to reduce concentration risk and strengthen the franchise.

• Management shifted from remediation to execution, focusing on consistent earnings, improved returns, and proactive credit risk management as it enters 2026.

• Maintained strong capital and liquidity positions, with CET1 ratio at 13.83% and liquidity coverage of uninsured deposits at 199%.

• Strategic focus on diversifying deposits, enhancing C&I lending, and reducing office loan exposure.

• Announced a $0.01 per share cash dividend, payable February 13, 2026.

Financial highlights

• Net income was $7.6 million ($0.25 per diluted share), reversing a prior quarter loss of $67.5 million ($2.22 per share), with pre-provision net revenue at $20.7 million.

• Net interest income was stable at $68.3 million; NIM declined to 2.38% due to asset mix and lower market rates.

• Noninterest income rose to $12.2 million from $2.5 million, driven by SBIC investments and OREO sales.

• Noninterest expense increased to $59.8 million, mainly from HFS loan disposition and valuation costs.

• Provision for credit losses dropped to $15.5 million from $113.2 million in Q3; net charge-offs fell to $12.3 million from $140.8 million.

Outlook and guidance

• Net interest margin is projected to expand to 2.6%-2.8% in 2026, with noninterest income growth of 15%-25% and noninterest expense expected to decrease up to 4%.

• Average deposits, loans, and earning assets are expected to decline year-over-year due to deliberate balance sheet repositioning.

• Pre-provision net revenue is expected to expand in 2026 despite a smaller average balance sheet.

• Effective tax rate expected to normalize to 12-16% in 2026.

• Focus remains on credit risk reduction, asset disposition strategies, and improving funding mix.