- Eagle Bancorp (EGBN, Financial) reported a significant decline in earnings, with Q1 2025 net income at $1.7 million, down from $15.3 million in the previous quarter.
- Total deposits increased by $146.2 million (1.6%) to $9.3 billion, while C&I portfolio rose by $109 million (4.3%).
- Declared a cash dividend of $0.165 per share, maintaining a strong capital position with a CET1 ratio of 14.61%.
Eagle Bancorp (EGBN) has disclosed its financial results for the first quarter of 2025, highlighting an 89% plunge in net income to $1.7 million, or $0.06 per diluted share, from $15.3 million, or $0.50 per diluted share, in the fourth quarter of 2024. This decline is primarily attributed to a $14.1 million increase in provision expense, a $5.1 million reduction in net interest income, and a $0.9 million rise in noninterest expenses.
Despite the earnings setback, the firm demonstrated resilience in its core business segments, with total deposits growing by $146.2 million to $9.3 billion, reflecting a 1.6% increase. The commercial and industrial (C&I) loan portfolio expanded by $109 million, marking a 4.3% rise. The bank declared a quarterly cash dividend of $0.165 per share, underscoring its commitment to returning value to shareholders.
Eagle Bancorp's allowance for credit losses rose to 1.63% of total loans, amid challenges in the commercial real estate office sector. Performing office loan coverage increased significantly to 5.78%, from 3.81% in the previous quarter. Nonetheless, nonperforming assets showed a reduction to $202.9 million, representing 1.79% of total assets, down from 1.90% at the end of 2024.
While navigating credit challenges, the bank maintained a robust capital position with a common equity tier one (CET1) capital ratio of 14.61%, providing a buffer against potential future credit risks.
