Eagle Bancorp (EGBN) investor relations material

Executive summary

• Significant progress made in addressing asset quality issues, particularly in the office loan portfolio, with a focus on sustainable profitability and franchise value growth.

• Net loss of $67.5 million ($2.22 per share) for Q3 2025, a slight improvement from the prior quarter's $69.8 million loss, mainly due to lower provision expense offset by reduced tax benefit.

• Independent third-party and supplemental internal reviews validated adequacy of current reserves and provisioning.

• 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, payable November 14, 2025.

Financial highlights

• Net interest income grew to $68.2 million, with NIM expanding six basis points to 2.43%.

• Non-interest income declined to $2.5 million, mainly due to loan and investment sale losses.

• Non-interest expense decreased to $41.9 million, reflecting lower FDIC assessments and cost discipline.

• Provision for credit losses was $113.2 million, down from $138.2 million in Q2, with net charge-offs increasing to $140.8 million from $83.9 million.

• Pre-provision net revenue (PPNR) was $28.8 million; adjusted PPNR was $32.3 million, up sequentially.

Outlook and guidance

• Expectation of manageable provisions and improved earnings in 2026 as credit issues subside.

• Net interest income forecasted to grow in 2026, driven by improved mix and lower funding costs despite a smaller balance sheet.

• Loan growth to be concentrated in C&I, with disciplined credit standards.

• Non-interest expenses to remain well controlled; FDIC costs expected to decline as asset quality improves.

• Management expects continued focus on credit risk management and asset quality, aiming for a more normalized earnings environment as the cycle progresses.