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Dec 31, 2025
Eagle Bancorp Q4 2025 Earnings Report
Eagle Bancorp reported a return to profitability in Q4 2025 following significant losses in the prior quarters.
Key Takeaways
Eagle Bancorp returned to profitability in Q4 2025, driven by stabilized net interest income, sharply lower credit losses, and improved noninterest income. The bank also maintained strong capital levels and liquidity coverage.
Net income of $7.6 million marked a strong recovery from prior quarters’ losses.
Net interest margin slightly declined to 2.38%, though net interest income remained steady at $68.3 million.
Provision for credit losses dropped significantly to $15.5 million, down from $113.2 million in Q3.
Efficiency ratio increased to 63.72%, reflecting valuation adjustments and costs associated with HFS loans.
Revenue by Geographic Location
Forward Guidance
Eagle expects continued pressure on loan and deposit growth, while NIM is forecasted to expand moderately in 2026 with improved asset yields and tighter expense management.
Positive Outlook
- Net interest margin projected to rise to 2.60%–2.80% in 2026.
- Noninterest income expected to grow 15–25% year-over-year.
- Strong liquidity coverage remains at 199% of uninsured deposits.
- Lower noninterest expense projected, with up to 4% decrease.
- Focus remains on replacing brokered with core deposits.
Challenges Ahead
- Average deposits forecasted to decline 4–7% in 2026.
- Loan balances expected to decrease 4–6%.
- Earning assets forecasted to fall 6–9%.
- Effective tax rate expected to normalize to 12–16%, after a negative rate in Q4.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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