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Eagle Bancorp Q1 2025 Earnings Report
Eagle Bancorp, Inc. announced its unaudited results for the first quarter ended March 31, 2025, reporting a significant decrease in net income compared to the previous quarter, primarily due to increased provision expense and a decline in net interest income.
Key Takeaways
Eagle Bancorp, Inc. reported net income of $1.7 million for the first quarter of 2025, a substantial decrease from $15.3 million in the prior quarter. This decline was mainly driven by a $14.1 million increase in provision expense and a $5.1 million decrease in net interest income, partially offset by a $4.1 million increase in noninterest income. The company also announced a cash dividend of $0.165 per share.
Net income for Q1 2025 was $1.7 million, down from $15.3 million in Q4 2024.
Diluted EPS for Q1 2025 was $0.06, a decrease from $0.50 in Q4 2024.
Provision for credit losses increased significantly to $26.3 million in Q1 2025 from $12.1 million in Q4 2024.
The company declared a cash dividend of $0.165 per share, payable on May 16, 2025.
Forward Guidance
The company is focused on executing its strategy to return to sustained profitability, with continued emphasis on core business areas and conservative credit risk management. However, valuation risk in the office portfolio remains a concern.
Positive Outlook
- Achieved solid period-end growth in the C&I portfolio, increasing by $109 million or 4.3%.
- Total deposits grew by $146.2 million or 1.6%.
- Capital position remains strong, with common equity tier one capital at 14.6% and tangible common equity ratio exceeding 10%.
- Total on-balance sheet liquidity and available capacity increased by $244.9 million from the prior quarter.
- Proactively identified credits showing signs of potential weakness, reflecting a conservative credit risk management approach.
Challenges Ahead
- Net income decreased by $13.6 million from the prior quarter.
- Provision expense increased by $14.1 million.
- Net interest income declined by $5.1 million.
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