Eagle Bancorp, Inc. Announces Fourth Quarter 2025 Results and Cash Dividend
BETHESDA, Md., Jan. 21, 2026 (GLOBE NEWSWIRE) -- Eagle Bancorp, Inc. ("Eagle" or the "Company") (NASDAQ:EGBN), the Bethesda-based holding company for EagleBank, one of the largest community banks in the Washington D.C. area, reported its unaudited results for the fourth quarter ended December 31, 2025.
Eagle reported a net income of $7.6 million or $0.25 per share for the fourth quarter 2025, compared to a net loss of $67.5 million or $(2.22) per share for the third quarter. The $75.1 million improvement from the prior quarter is primarily due to a $97.7 million decrease in provision expense, offset by a $14.3 million reduction in the tax benefit. In the quarter, net interest income increased by $0.1 million, noninterest income increased by $9.7 million, and noninterest expenses increased by $17.9 million.
Pre-provision net revenue ("PPNR")1 in the fourth quarter was $20.7 million compared to $28.8 million for the prior quarter. The decrease is primarily due to a $17.9 million increase in noninterest expense, which was driven by higher costs associated with the disposition of certain loans held for sale ("HFS") and valuation adjustment on the remaining HFS portfolio.
"The quarter marked a return to profitability, supported by a lower provision expense as we continued to execute on credit risk reduction actions," said Susan G. Riel, President, and Chief Executive Officer of the Company. "We are encouraged by our early progress and remain focused on our efforts to improve results. We will remain disciplined in executing on asset disposition strategies that are reducing exposures and improving overall credit quality."
Ms. Riel added, "Building on the funding progress made in 2025, we will remain committed to improving our funding mix in 2026 to drive stronger pre-provision net revenue and improved returns. We are repositioning the balance sheet for more durable performance, reducing concentrations to commercial real estate and construction loans, improving criticized and classified trends, and continuing to decrease held-for-sale exposure through planned first-quarter dispositions that lower mark-to-market sensitivity."
Additionally, the Company is announcing today a cash dividend in the amount of $0.01 per share. The cash dividend will be payable on February 13, 2026 to shareholders of record on February 2, 2026.
Fourth Quarter of 2025 Key Elements
The Company announces today the declaration of a common stock dividend of $0.01 per share.
Total C&I loans (including owner-occupied) increased $301.0 million or 10.95%, and average C&I deposits increased $367.0 million, or 22.30% from the previous quarter.
The ACL as a percentage of total loans was 2.19% at quarter-end; up from 2.14% at the prior quarter-end. Performing office coverage2 was 12.89% at quarter-end; as compared to 11.36% at the prior quarter-end.
Nonperforming assets decreased by $24.4 million to $108.9 million as of December 31, 2025, representing 1.04% of total assets, compared to $133.3 million, representing 1.23% of total loans as of September 30, 2025. During the quarter, nonperforming loan inflows totaled $26.1 million. Reductions of $50.5 million reflected underlying collateral liquidations, disposition of other real estate owned ("OREO") and sales of loans.
Substandard and special mention loans totaled $783.4 million at December 31, 2025, compared to $958.5 million in the prior quarter.
Annualized quarterly net charge-offs for the fourth quarter of 2025 were 0.67% compared to 7.36% for the third quarter of 2025.
The net interest margin ("NIM") decreased to 2.38% for the fourth quarter of 2025, compared to 2.43% for the prior quarter, primarily driven by a mix shift between loans and cash, partially offset by improved time deposit cost from reduced brokered time deposit usage.
At quarter-end, the common equity ratio, tangible common equity ratio1, and common equity tier 1 capital (to risk-weighted assets) ratio were 10.87%, 10.87%, and 13.83%, respectively.
Total estimated insured deposits decreased at quarter-end to $6.9 billion, representing 75.3% of deposits, compared to $7.2 billion, or 75.6% in the prior quarter.
Total on-balance sheet liquidity and available capacity was $4.7 billion, compared to $2.3 billion in uninsured deposits, resulting in a coverage ratio of over 199%
Income Statement
Net interest income was relatively flat at $68.3 million for the fourth quarter of 2025, compared to $68.2 million for the prior quarter. Both interest income and interest expense declined during the quarter, reflecting the impact of lower market rates and declining average balances.
Provision for credit losses was $15.5 million for the fourth quarter of 2025, compared to $113.2 million for the prior quarter. The decrease was primarily driven by lower charge-offs compared to prior quarter. Net charge-offs totaled $12.3 million, a decrease from $140.8 million in the prior quarter. The provision related to the reserve for unfunded commitments was $203 thousand, compared to a reversal of $38 thousand in the prior quarter.
Noninterest income was $12.2 million for the fourth quarter of 2025, compared to $2.5 million for the prior quarter. The increase was primarily driven by losses in the third quarter that did not reoccur in the fourth quarter, and an increase in other income as a result of SBIC investments and gains on sale of OREO during the quarter.
Noninterest expense was $59.8 million for the fourth quarter of 2025, compared to $41.9 million for the prior quarter. The increase over the linked quarter was primarily due to $6.3 million in higher costs associated with the disposition of certain HFS loans and $8.4 million in valuation adjustment on the remaining HFS portfolio.
Income tax benefit was $2.6 million for the fourth quarter of 2025, compared to a $19.9 million benefit for the prior quarter. The Company had income tax benefit, despite a profitable fourth quarter, primarily due to tax credit purchase and tax equity investments during the quarter that generated $3.6 million in tax benefits.
Loans and Funding
Total loans, including loans held for sale, were $7.4 billion at December 31, 2025, a decrease of 1% from the prior quarter-end. The decrease in total loans was primarily driven by declines in income-producing real estate loans, partially offset by an increase in commercial and industrial loans.
Total deposits at quarter-end were $9.1 billion, down $0.3 billion, or 4%, from the prior quarter-end. The decrease was primarily driven by lower balances in brokered time deposit accounts and noninterest bearing deposits. Deposits increased $2.5 million compared to December 31, 2024.
Asset Quality
Allowance for credit losses was 2.19% of total loans held for investment at December 31, 2025, compared to 2.14% at the prior quarter-end. Performing office coverage was 12.89% at quarter-end; as compared to 11.36% at the prior quarter-end.
Net charge-offs were $12.3 million for the quarter compared to $140.8 million in the third quarter of 2025.
Nonperforming assets were $108.9 million at December 31, 2025.
NPAs as a percentage of assets were 1.04% at December 31, 2025, compared to 1.23% at the prior quarter-end. At December 31, 2025, OREO consisted of three properties with an aggregate carrying value of $2.1 million.
Loans 30-89 days past due were $49.9 million at December 31, 2025, compared to $29.1 million at the prior quarter-end.
Capital
Total shareholders' equity was $1.1 billion at December 31, 2025, up 1.6% from the prior quarter-end. The increase in shareholders' equity of $17.8 million was primarily due to quarterly income that increased capital.
Book value per share and tangible book value per share3 were $37.59 and $37.59, an increase of 1.6% from the prior quarter-end.
Additional financial information: The financial information that follows provides more detail on the Company's financial performance for the three months ended December 31, 2025 as compared to the three months ended September 30, 2025 and December 31, 2024, as well as eight quarters of trend data. Persons wishing additional information should refer to the Company's Annual Report on Form 10-K for the year ended December 31, 2024, and other reports filed with the SEC.
About Eagle Bancorp: The Company is the holding company for EagleBank, which commenced operations in 1998. The Bank is headquartered in Bethesda, Maryland, and operates through twelve banking offices and four lending offices located in Suburban Maryland, Washington, D.C. and Northern Virginia. The Company focuses on building relationships with businesses, professionals and individuals in its marketplace, and is committed to a culture of respect, opportunity, belonging, and inclusion in both its workplace and the communities in which it operates.
Conference call: Eagle Bancorp will host a conference call to discuss its fourth quarter of 2025 financial results on Thursday, January 22, 2026 at 10:00 a.m. Eastern Time.
The listen-only webcast can be accessed at:
https://edge.media-server.com/mmc/p/35j4x675/
For analysts who wish to participate in the conference call, please register at the following URL:https://register-conf.media-server.com/register/BI89ddf0d53da24dc0bc55096224de408f
A replay of the conference call will be available on the Company's website through Thursday, February 5, 2026: https://www.eaglebankcorp.com/
Forward-looking statements: This press release contains forward-looking statements within the meaning of the Securities Exchange Act of 1934, as amended, including statements of goals, intentions, and expectations as to future trends, plans, events, financial condition, asset quality or results of Company operations and policies and regarding general economic conditions. In some cases, forward-looking statements can be identified by use of words such as "may," "will," "can," "anticipates," "believes," "expects," "plans," "strategy," "estimates," "potential," "continue," "should," "could," "strive," "feel" and similar words or phrases. These statements are based upon current and anticipated economic conditions, nationally and in the Company's market (including reductions in the size of the federal government workforce; changes in government spending; the economic effects of an extended government shutdown; the proposal, announcement or imposition of tariffs; volatility in interest rates and interest rate, monetary and fiscal policy; inflation levels; competitive factors; our ability to access cost-effective funding) and other conditions (such as the impact of bank failures, credit losses or adverse developments at other banks and related negative press about the banking industry in general on investor and depositor sentiment regarding the stability and liquidity of banks), which by their nature are not susceptible to accurate forecast and are subject to significant uncertainty. Because of these uncertainties and the assumptions on which this discussion and the forward-looking statements are based, actual future operations and results in the future may differ materially from those indicated herein. For details on factors that could affect these expectations, see the risk factors and other cautionary language included in the Company's Annual Report on Form 10-K for the year ended December 31, 2024 and in other periodic and current reports filed with the SEC, including the Company's Quarterly Reports on Form 10-Q. Readers are cautioned against placing undue reliance on any such forward-looking statements. The Company's past results are not necessarily indicative of future performance. All information is as of the date of this press release. Any forward-looking statements made by or on behalf of the Company speak only as to the date they are made. Except to the extent required by applicable law or regulation, the Company undertakes no obligation to revise or update publicly any forward-looking statement for any reason.
Eagle Bancorp, Inc.
Consolidated Statements of Operations (Unaudited)
(Dollars in thousands, except per share data)
Three Months Ended
December 31,
September 30,
December 31,
2025
2025
2024
Interest Income
Interest and fees on loans
$
119,744
$
123,704
$
132,943
Interest and dividends on investment securities
10,083
10,527
12,307
Interest on balances with other banks and short-term investments
19,699
15,872
23,167
Total interest income
149,526
150,103
168,417
Interest Expense
Interest on deposits
79,147
79,385
83,002
Interest on customer repurchase agreements
52
202
294
Interest on other short-term borrowings
—
332
9,530
Interest on long-term borrowings
2,024
2,025
4,797
Total interest expense
81,223
81,944
97,623
Net Interest Income
68,303
68,159
70,794
Provision for Credit Losses
15,468
113,215
12,132
Provision (Reversal) for Credit Losses for Unfunded Commitments
203
(38
)
(1,598
)
Net Interest Income (Loss) After Provision for Credit Losses
52,632
(45,018
)
60,260
Noninterest Income
Service charges on deposits
1,840
1,773
1,744
Gain (loss) on sale of loans
(1,137
)
(3,550
)
—
Net gain (loss) on sale of investment securities
9
(1,982
)
4
Increase in cash surrender value of bank-owned life insurance
5,636
5,293
742
Other income
5,844
961
1,577
Total noninterest income
12,192
2,495
4,067
Noninterest Expense
Salaries and employee benefits
22,661
21,290
22,597
Premises and equipment expenses
2,861
2,944
2,635
Marketing and advertising
1,185
1,316
1,340
Data processing
4,353
3,950
3,870
Legal, accounting and professional fees
3,100
2,396
641
FDIC insurance
7,709
6,665
9,281
Other expenses
17,968
3,336
4,168
Total noninterest expense
59,837
41,897
44,532
Income (Loss) Before Income Tax Expense
4,987
(84,420
)
19,795
Income Tax Expense (Benefit)
(2,574
)
(16,907
)
4,505
Net Income (Loss)
$
7,561
$
(67,513
)
$
15,290
Earnings (Loss) Per Common Share
Basic
$
0.25
$
(2.22
)
$
0.51
Diluted
$
0.25
$
(2.22
)
$
0.50
Eagle Bancorp, Inc.
Consolidated Balance Sheets (Unaudited)
(Dollars in thousands, except per share data)
December 31,
September 30,
December 31,
2025
2025
2024
Assets
Cash and due from banks
$
11,692
$
9,395
$
14,463
Interest-bearing deposits with banks and other short-term investments
684,001
841,372
619,017
Investment securities available-for-sale at fair value (amortized cost of $1,055,146, $1,161,644, and $1,408,935 respectively, and allowance for credit losses of $—, $—, and $22, respectively)
976,770
1,073,412
1,267,404
Investment securities held-to-maturity at amortized cost, net of allowance for credit losses of $1,030, $1,199, and $1,306 respectively (fair value of $774,947, $786,662, and $820,382 respectively)
854,780
872,418
938,647
Federal Reserve and Federal Home Loan Bank stock
28,327
28,306
51,763
Loans held for sale, at lower of cost or fair value
90,650
136,506
—
Loans held for investment, at amortized cost
7,280,459
7,304,679
7,934,888
Less: allowance for credit losses
(159,604
)
(156,228
)
(114,390
)
Loans held for investment, net of allowance
7,120,855
7,148,451
7,820,498
Premises and equipment, net
12,800
10,503
7,694
Operating lease right-of-use assets
28,451
29,791
18,494
Deferred income taxes
132,330
77,362
91,472
Bank-owned life insurance
335,177
330,426
115,806
Other real estate owned
2,059
14,684
2,743
Other assets
219,311
242,876
181,491
Total Assets
$
10,497,203
$
10,815,502
$
11,129,508
Liabilities and Shareholders' Equity
Liabilities
Deposits:
Noninterest-bearing demand
$
1,433,952
$
1,577,197
$
1,544,403
Interest-bearing transaction
1,038,154
932,500
1,211,791
Savings and money market
3,624,813
3,702,579
3,599,221
Time deposits
3,036,687
3,251,283
2,775,663
Total deposits
9,133,606
9,463,559
9,131,078
Customer repurchase agreements
—
13,725
33,157
Other short-term borrowings
—
—
490,000
Long-term borrowings
76,428
76,346
76,108
Operating lease liabilities
35,256
36,278
23,815
Reserve for unfunded commitments
5,090
4,886
3,463
Other liabilities
105,540
97,232
145,826
Total Liabilities
9,355,920
9,692,026
9,903,447
Shareholders' Equity
Common stock, par value $0.01 per share; shares authorized 100,000,000, shares issued and outstanding 30,359,632, 30,366,555, and 30,202,003 respectively
300
300
298
Additional paid-in capital
391,204
389,305
384,932
Retained earnings
838,938
831,685
982,304
Accumulated other comprehensive loss
(89,159
)
(97,814
)
(141,473
)
Total Shareholders' Equity
1,141,283
1,123,476
1,226,061
Total Liabilities and Shareholders' Equity
$
10,497,203
$
10,815,502
$
11,129,508
Loan Mix and Asset Quality(Dollars in thousands)
December 31,
September 30,
December 31,
2025
2025
2024
Amount
%
Amount
%
Amount
%
Loan Balances - Period End:
Commercial
$
1,338,486
18
%
$
1,217,908
17
%
$
1,183,628
15
%
Income producing - commercial real estate
3,350,718
45
%
3,453,033
47
%
$
4,064,846
51
%
Owner occupied - commercial real estate
1,657,963
23
%
1,494,711
20
%
$
1,269,669
16
%
Real estate mortgage - residential
37,100
1
%
44,684
1
%
$
50,535
1
%
Construction - commercial and residential
795,400
11
%
1,010,367
14
%
$
1,210,763
15
%
Construction - C&I (owner occupied)
52,629
1
%
33,378
—
%
$
103,259
1
%
Home equity
47,448
1
%
49,333
1
%
$
51,130
1
%
Other consumer
715
—
%
1,265
—
%
$
1,058
—
%
Total loans
$
7,280,459
100
%
$
7,304,679
100
%
$
7,934,888
100
%
Three Months Ended or As Of
December 31,
September 30,
December 31,
2025
2025
2024
Asset Quality:
Nonperforming loans
$
106,834
$
118,647
$
208,706
Other real estate owned
2,059
14,684
2,743
Nonperforming assets
$
108,893
$
133,331
$
211,449
Net charge-offs
$
12,259
$
140,814
$
9,535
Special mention
$
268,881
$
423,685
$
244,807
Substandard
$
514,497
$
534,789
$
426,366
Eagle Bancorp, Inc.
Consolidated Average Balances, Interest Yields And Rates vs. Prior Quarter (Unaudited)
(Dollars in thousands)
Three Months Ended
December 31, 2025
September 30, 2025
AverageBalance
Interest
AverageYield/Rate
AverageBalance
