Loading...
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.
Eagle Bancorp
Eagle Bancorp
Eagle Bancorp Revenue by Segment
Revenue by Segment
Interest and fees on loans Revenue
CapyFin.comInterest and dividends on investment securities Revenue
CapyFin.comInterest on balances with other banks and short-term investments Revenue
CapyFin.comInterest on federal funds sold Revenue
CapyFin.comService charges on deposits Revenue
CapyFin.comNet gain on sale of investment securities Revenue
CapyFin.comIncrease in cash surrender value of bank-owned life insurance Revenue
CapyFin.comOther income Revenue
CapyFin.com 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.
- Noninterest expenses increased by $0.9 million.
- Valuation risk in the office portfolio remains a concern and was the primary driver of the provision for credit losses.