Eagle Bancorp (EGBN) investor relations material

Executive summary

• Net income for Q2 2026 was $6.9 million ($0.23 per share), down from $14.7 million in Q1 2026, mainly due to higher provision for credit losses, but marked a return to profitability from a net loss in Q2 2025.

• Leadership transition brought a new President and CEO, with a strategic focus on asset quality, funding, operating performance, and capital allocation.

• The company maintains a strong presence in the Washington DC metro area, leveraging a branch-light, efficient operating model and experienced leadership.

• Strategic actions included reducing CRE exposure, expanding C&I lending, and enhancing deposit growth.

• Capital and liquidity positions remain robust, supporting ongoing risk reduction and operational improvements.

Financial highlights

• Net interest income for Q2 2026 was $62.4 million, down $1.3 million sequentially; net interest margin expanded to 2.52%.

• Net income for Q2 2026 was $6.9 million, down from $14.7 million in Q1, due to higher provision for credit losses.

• Noninterest income for Q2 2026 was $10.8 million, down from $12.7 million prior quarter, but up 68% year-over-year due to gains on loan sales.

• Noninterest expense for Q2 2026 was $44.0 million, down from $48.7 million prior quarter.

• Total assets were $9.66 billion and total deposits $8.2 billion as of June 30, 2026.

Outlook and guidance

• Net interest margin outlook for 2026 is 2.60–2.70%, with Q2 below range due to one-time loan sale impact.

• Noninterest income expected to grow 15–25% for the year; noninterest expense projected to decrease 7–11%.

• Management expects continued focus on credit risk management, portfolio optimization, and maintaining strong capital and liquidity.

• Loan growth in CRE expected to stabilize in the second half of 2026, with growth resuming in 2027.

• A discrete tax benefit of $5.3 million is anticipated in Q3 2026 from a settled state tax refund claim.