Eagle Bancorp (EGBN) investor relations material

Executive summary

• Reported a net loss of $67.5 million ($2.22 per share) for Q3 2025, a slight improvement from the prior quarter, mainly due to lower provision expense offset by reduced tax benefit.

• Significant progress made in addressing asset quality issues, particularly in the office loan portfolio, with independent and internal reviews validating reserve adequacy.

• Noninterest income declined due to losses on loan and investment sales, while noninterest expense decreased, reflecting lower FDIC assessments and absence of prior year goodwill impairment.

• Leadership transition announced with the voluntary resignation of the Chief Credit Officer and interim appointments made.

• Declared a cash dividend of $0.01 per share to preserve capital flexibility.

Financial highlights

• Net interest income for Q3 2025 was $68.2 million, with net interest margin expanding to 2.43% from 2.37% in Q2.

• Provision for credit losses was $113.2 million in Q3 2025, with net charge-offs totaling $140.8 million for the quarter and $235.9 million for the nine months.

• Noninterest expense for the nine months was $130.8 million, down from $230.1 million, mainly due to the absence of a $104.2 million goodwill impairment.

• Book value and tangible book value per share were $37.00 at September 30, 2025, down 8.87% from year-end 2024.

• Efficiency ratio was 59.3% for Q3 2025.

Outlook and guidance

• Management expects manageable provisions and improved earnings in 2026 as credit issues subside, with net interest income forecasted to grow due to improved mix and lower funding costs.

• Loan growth to be concentrated in C&I, with disciplined credit standards and noninterest expenses to remain well controlled.

• No formal earnings guidance provided; focus remains on disciplined credit risk management and portfolio optimization.