Eagle Bancorp (EGBN) Q3 2026 earnings summary

Executive summary

• Net income was $24.2 million, or $0.79 per diluted share, versus $6.9 million in Q2; lower credit-loss provision drove the increase, while PPNR fell to $23.8 million.

• NIM expanded for a third consecutive quarter to 2.60%; credit indicators improved and brokered funding declined, although NPAs rose, mainly due to one multifamily relationship.

• Strategy prioritizes resolving legacy credit issues and stabilizing funding and the balance sheet before scaling relationship-led growth and improving returns.

Financial highlights

• Net interest income was $61.3 million, down 1.7% QoQ; provision for credit losses fell to $2.8 million from $21.4 million.

• Noninterest income was $9.6 million, down from $10.8 million; no Q2-equivalent loan-sale gain was partly offset by $1.1 million higher swap fee income.

• Noninterest expense rose to $47.1 million from $44.0 million; $2.8 million of the QoQ increase was not expected to remain in the Q4 run rate.

• Q3 net income included a $5.4 million benefit from settlement of Maryland state income tax refund claims.

• Nine-month net income was $45.9 million versus a $135.6 million loss; nine-month PPNR was $80.5 million versus $87.9 million.

Outlook and guidance

• Q4 outlook: average deposits $8.71–$9.16 billion, average loans $6.68–$7.02 billion, and NIM 2.65%–2.78%; PPNR is expected to increase from Q3 levels.

• FY2027 outlook: average deposits $8.55–$9.47 billion, average loans $6.94–$7.67 billion, and NIM 2.77%–3.05%.

• Provision and charge-offs are expected to be lower in 2027 than in 2026; projected 2027 NIM reflects asset repricing, portfolio remix, loan mix, and the 9/30 forward curve.

• Around $350 million of investment assets earning 2% are expected to roll off in 2027 and be reinvested at higher yields; brokered-deposit cost tailwinds are not expected to recur.

• Guidance is subject to rate, credit, real estate valuation, liquidity, funding-cost, competition, tariff, government-spending, and shutdown risks.