What changed in this filing

/stocks — the workspaceLOADING

Item 2. Management’s Discussion and Analysis

2026-05-07 compared with 2025-11-07 · 303 added, 415 removed, 621 unchanged (54% of the section changed)

8 unchanged sentences

Forward-looking statements include, without limitation, any statement that may predict, forecast, indicate or imply future results, performance or achievements and are typically identified with words such as "may," "will," "can," "anticipates," "believes," "expects," "plans," "strategies," "outlook," "estimates," "potential," "assume," "probable," "possible," "continue," "should," "could," "would," "strive," "seeks," "deem," "projections," "forecast," "consider," "indicative," "uncertainty," "likely," "unlikely," "likelihood," "unknown," "attributable," "depends," "intends," "generally," "feel," "typically," "judgment," "subjective" and similar words or phrases.

For details on factors that could affect these expectations, see the risk factors and other cautionary language included in the Company's 2024 Form 10-K, and in other periodic and current reports filed by the Company with the Securities and Exchange Commission (the "SEC"), including the Company's Quarterly Report on Form 10-Q for the quarter ended March 31, 2025.

For details on factors that could affect these expectations, see the risk factors and other cautionary language included in the Company's 2025 Form 10-K, and in other periodic and current reports filed by the Company with the Securities and Exchange Commission (the "SEC").

These forward-looking statements are based largely on our expectations and are subject to a number of known and unknown risks and uncertainties that are subject to change based on factors which are, in many instances, beyond our control.

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The Company focuses on relationship banking, providing each customer with a number of services and becoming familiar with and addressing customer needs in a proactive, personalized fashion.

The Bank currently has twelve branch offices (three in Suburban Maryland, three in Washington, D.C.

and six in Northern Virginia), a principal corporate office, four lending centers and one operations center.

The Bank currently has twelve branch offices (six in Suburban Maryland, three in Washington, D.C.

and three in Northern Virginia), a principal corporate office, four lending centers and one operations center.

The Bank offers a broad range of commercial banking services to its business and professional clients, as well as full-service consumer banking services to individuals living and/or working primarily in the Bank's market area.

The Bank emphasizes providing commercial banking services to sole proprietors, small and medium-sized businesses, non-profit organizations and associations, and investors living and working in and near the primary service area.

These services include the usual deposit functions of commercial banks, including business and personal checking accounts, Negotiable Order of Withdrawal ("NOW") accounts, money market and savings accounts, business,

Eagle Bancorp, Inc Third Quarter 2025 Form 10-Q

The Bank is also active in

Eagle Bancorp, Inc First Quarter 2026 Form 10-Q

Management's Discussion and Analysis | General

construction, and commercial loans, consumer loans, and cash management services.

The Bank is also active in the origination of Small Business Administration ("SBA") loans.

the origination of Small Business Administration ("SBA") loans.

The Bank generally sells the guaranteed portion of the SBA loans in a transaction apart from the loan origination generating noninterest income from the gains on sale, as well as servicing income on the portion participated.

Until the second half of 2024, the Company originated multifamily Federal Housing Administration ("FHA") loans through the Department of Housing and Urban Development's Multifamily Accelerated Program.

The Company securitized these loans through the Government National Mortgage Association ("Ginnie Mae") MBS I program and sold the resulting securities in the open market to authorized dealers in the normal course of business and periodically bundled and sold the servicing rights.

During the year ended December 31, 2024, the Company sold the remaining servicing rights to all multifamily FHA loans.

However, the Company maintains its licenses to operate in this business and is evaluating options for future activity.

Bethesda Leasing, LLC, a subsidiary of the Bank, holds title to and manages other real estate owned ("OREO") assets.

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The modeling of expected prepayment speeds is based on historical internal data and adjustments to account for loan-specific risk characteristics after pooling our loan portfolio based on similar risk characteristics.

Eagle Bancorp, Inc Third Quarter 2025 Form 10-Q

Eagle Bancorp, Inc First Quarter 2026 Form 10-Q

Management's Discussion and Analysis | Critical Accounting Policies and Estimates

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This analysis also determines how expected PD will react to forecasted levels of the loss drivers.

During the prior year, management enhanced the cash flow model to incorporate additional macroeconomic variables.

During 2024, management enhanced the cash flow model to incorporate additional macroeconomic variables.

The four economic variables selected, national unemployment (original variable used), Commercial Real Estate ("CRE") Price Index, House Price Index and Gross Domestic Product ("GDP"), are incorporated by utilizing a Loss Driver Analysis approach that factors in historical losses, including during the Great Recession, of regional peer banks and the Bank.

17 unchanged sentences

This section discusses our condensed consolidated results of operations and should be read together with our consolidated financial statements and the accompanying notes.

For the Three Months Ended September 30, For the Nine Months Ended September 30,

(dollars in thousands) 2025 2024 Change 2025 2024 Change

For the Three Months Ended March 31,

(dollars in thousands) 2026 2025 Change

Net Interest Income $ 63,694 $ 65,649 $ (1,955)

Provision for (Reversal of) Credit Losses 13,382 26,255 (12,873)

113,215 10,094 103,121 277,629 54,228 223,401

Provision for (Reversal of) Credit Losses for Unfunded Commitments (1,779) (297) (1,482)

(38) (1,593) 1,555 1,424 (529) 1,953

Net Interest Income After Provision for (Reversal of) Credit Losses 52,091 39,691 12,400

2 unchanged sentences

Income (Loss) Before Income Tax Expense 16,059 2,447 13,612

Income Tax Expense (16,907) 4,864 (21,771) (55,558) 12,290 (67,848)

Income Tax Expense (Benefit)

1,341 772 569

Net Income (Loss) $ 14,718 $ 1,675 $ 13,043

Eagle Bancorp, Inc Third Quarter 2025 Form 10-Q

Eagle Bancorp, Inc First Quarter 2026 Form 10-Q

Management's Discussion and Analysis | Results of Operations

Net loss for the three and nine months ended September 30, 2025, compared to three and nine months ended September 30, 2024, was primarily due to higher provision for credit losses, partially offset by the corresponding income tax benefit.

The increase in net income for the three months ended March 31, 2026, compared to the three months ended March 31, 2025, was primarily due to lower provision for credit losses during three months ended March 31, 2026.

See respective subsections below for the primary drivers of change and further discussion on net interest income, provision for credit losses, noninterest income, noninterest expenses, and income tax expenses.

When the impact of the provision is excluded, pre-provision net revenue ("PPNR"), a non-GAAP measure, was $28.8 million for three months ended September 30, 2025, as compared to $35.2 million for the same period in 2024.

The decrease was primarily due to lower noninterest income driven by losses on sale of loans and investment securities during the current period.

For further discussion of drivers for this change, see the "Noninterest Income" section below.

PPNR was $87.9 million for the nine months ended September 30, 2025, as compared to $3.7 million for the same period in 2024.

The increase was primarily due to lower noninterest expenses in the current period driven by the recognition of one-time goodwill impairment of $104.2 million during 2024 which resulted in higher noninterest expense in the prior period.

For further discussion of drivers for this change, see the "Noninterest Expense" section below.

When the impact of the provision is excluded, pre-provision net revenue ("PPNR"), a non-GAAP measure, was relatively flat at $27.7 million for the three months ended March 31, 2026, as compared to $28.4 million for the three months ended March 31, 2025.

Refer to the "Use of Non-GAAP Financial Measures" section for additional detail and a reconciliation of GAAP to non-GAAP financial measures.

The efficiency ratio, which measures the ratio of noninterest expense to total net revenue (the sum of net interest income and noninterest income), was 59.3% and 59.8%, respectively, for three and nine months ended September 30, 2025 compared to 55.4% and 98.4% for the same periods in 2024.

The improvement in the nine months ended September 30, 2025 over the same period in 2024 was primarily driven by the recognition of one-time goodwill impairment of $104.2 million during the second quarter of 2024.

Net interest margin, which measures net interest income as a percentage of earning assets, was 2.43% and 2.37% for the three and nine months ended September 30, 2025 compared to 2.37% and 2.40% for the same periods in 2024, an increase of 6 basis points and a decrease of 3 basis points, respectively.

The efficiency ratio, which measures the ratio of noninterest expense to total net revenue (the sum of net interest income and noninterest income), was 63.79% for the three months ended March 31, 2026 compared to 61.54% for the three months ended March 31, 2025.

Net interest margin, which measures net interest income as a percentage of earning assets, was 2.47% for the three months ended March 31, 2026, an increase compared to 2.28% for the three months ended March 31, 2025.

For further information on the components and drivers of these changes, see the "Net Interest Income and Net Interest Margin" section below.

Loans, which generally have higher yields than securities and other earning assets, represented 69% and 66% of average earning assets for nine months ended September 30, 2025 and 2024, respectively.

Loans, which generally have higher yields than securities and other earning assets, represented 68.0% and 68.2% of average earning assets for three months ended March 31, 2026 and 2025, respectively.

Refer to the "Loan Portfolio" below for further discussion on loans.

Average investment securities for nine months ended September 30, 2025 were 18.8% of average earning assets compared to 20.5% for the same period in 2024.

The combination of federal funds sold and interest-bearing deposits with other banks represented 12.4% and 13.5% of average earning assets for nine months ended September 30, 2025 and 2024, respectively.

The ratio of common equity to total assets decreased to 10.39% as of September 30, 2025, compared to 11.02% as of December 31, 2024.

For three and nine months ended September 30, 2025, the return (loss) on average assets ("ROAA") was (2.31)% and (1.53)%, respectively, as compared to 0.70% and (0.67)% for the same periods in 2024.

Total shareholders’ equity was $1.12 billion as of September 30, 2025 as compared to $1.23 billion as of December 31, 2024, a decrease of 8%, driven by losses in the first nine months of 2025.

The return (loss) on average common equity for three and nine months ended September 30, 2025 was (22.66)% and (14.79)% respectively, as compared to 7.22% and (6.65)% for the same periods in 2024.

Average investment securities for the three months ended March 31, 2026 were 17.6% of average earning assets compared to 19.4% for the three months ended March 31, 2025.

Interest-bearing deposits with other banks represented 14.4% and 12.5% of average earning assets for three months ended March 31, 2026 and 2025, respectively.

The ratio of common equity to total assets increased to 11.51% as of March 31, 2026, compared to 10.78% as of December 31, 2025.

For the three months ended March 31, 2026, the return on average assets ("ROAA") was 0.54%, compared to 0.06% for the three months ended March 31, 2025.

Total shareholders’ equity was $1.15 billion as of March 31, 2026, compared to $1.13 billion as of December 31, 2025, an increase of 1%.

The return (loss) on average common equity for three months ended March 31, 2026 was 5.20%, compared to 0.55% for the three months ended March 31, 2025.

Net Interest Income and Net Interest Margin

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Changes in the volume and mix of assets and funding sources, along with the changes in yields earned and rates paid, determine changes in net interest income.

Eagle Bancorp, Inc Third Quarter 2025 Form 10-Q

Management's Discussion and Analysis | Results of Operations | Net Interest Income and Net Interest Margin

The table below presents the average balances and rates of the major categories of the Company's assets and liabilities.

4 unchanged sentences

Net interest margin is net interest income expressed as a percentage of average earning assets.

For the Three Months Ended September 30,

(dollars in thousands) Average

Balance Interest Average

Interest earning assets:

Interest-bearing deposits with other banks and other short-term investments $ 1,447,944 $ 15,952 4.37 % $ 1,577,464 $ 21,296 5.37 %

Loans held for sale 19,441 389 7.94 % 4,936 1 0.08 %

Loans (1) (2)

7,648,459 123,315 6.40 % 8,026,524 139,835 6.93 %

Investment securities available-for-sale (2)

1,134,993 5,866 2.05 % 1,479,598 7,336 1.97 %

Investment securities held-to-maturity 884,779 4,661 2.09 % 974,366 5,242 2.14 %

Federal funds sold 1,927 22 4.53 % 10,003 103 4.10 %

Total interest earning assets 11,137,543 150,205 5.35 % 12,072,891 173,813 5.73 %

Noninterest earning assets 658,014 397,007

allowance for credit losses (198,158) (108,998)

Total noninterest earning assets 459,856 288,009

Total assets $ 11,597,399 $ 12,360,900

Liabilities and Shareholders’ Equity

Interest-bearing liabilities:

Interest-bearing transaction $ 1,391,316 $ 10,824 3.09 % $ 1,656,676 $ 14,596 3.51 %

Savings and money market 3,576,595 30,875 3.42 % 3,254,128 34,896 4.27 %

Time deposits 3,312,333 37,686 4.51 % 2,517,944 31,698 5.01 %

Total interest-bearing deposits 8,280,244 79,385 3.80 % 7,428,748 81,190 4.35 %

Customer repurchase agreements and federal funds purchased 25,557 202 3.14 % 38,045 332 3.47 %

Derivative collateral liability 9,225 102 4.39 % — — — %

Other short-term borrowings (3)

29,350 332 4.49 % 1,615,867 20,448 5.03 %

Long-term borrowings (3)

76,318 2,025 10.52 % 824 — — %

Total interest-bearing liabilities 8,420,694 82,046 3.87 % 9,083,484 101,970 4.47 %

Noninterest-bearing liabilities:

Noninterest-bearing demand 1,882,971 1,915,666

Other liabilities 111,586 160,272

Total noninterest-bearing liabilities 1,994,557 2,075,938

Shareholders’ equity 1,182,148 1,201,477

Total Liabilities and Shareholders’ Equity $ 11,597,399 $ 12,360,899

Net interest income $ 68,159 $ 71,843

Net interest spread 1.48 % 1.26 %

Net interest margin 2.43 % 2.37 %

Cost of funds 3.16 % 3.69 %

Eagle Bancorp, Inc Third Quarter 2025 Form 10-Q

Eagle Bancorp, Inc First Quarter 2026 Form 10-Q

Management's Discussion and Analysis | Results of Operations | Net Interest Income and Net Interest Margin

For the Nine Months Ended September 30,

Eagle Bancorp, Inc.

Consolidated Average Balances, Interest Yields And Rates (Unaudited)

For the Three Months Ended March 31,

(dollars in thousands) Average

4 unchanged sentences

Loans held for sale (1)

85,096 1,380 6.58 % 169 — — %

Loans (1) (2)

3 unchanged sentences

Investment securities held-to-maturity 849,802 4,460 2.13 % 933,880 5,055 2.20 %

Federal funds sold 2,191 73 4.45 % 10,037 311 4.14 %

Total interest earning assets 10,456,689 131,901 5.12 % 11,640,162 153,878 5.36 %

25 unchanged sentences

(1) Loans placed on nonaccrual status are included in average balances.

Net loan fees and late charges included in interest income on loans totaled $3.7 million and $11.1 million for the three and nine months ended 2025, respectively, and $3.9 million and $12.9 million for the three and nine months ended 2024, respectively.

Net loan fees and late charges included in interest income on loans totaled $3.9 million and $3.8 million for the three months ended March 31, 2026 and 2025, respectively.

(2) Interest and fees on loans and investments exclude tax equivalent adjustments.

Net interest income decreased for the third quarter of 2025 compared to the third quarter of 2024, primarily due to lower average balances and lower yields on loans and lower average balance of securities as well interest bearing deposits with other banks.

Both interest income and interest expense declined during the quarter, reflecting the impact of lower market rates and declining average balances.

Eagle Bancorp, Inc Third Quarter 2025 Form 10-Q

Net interest income decreased in the first quarter of 2026 compared to the first quarter of 2025, primarily due to a larger decrease in interest-earning assets compared to interest-bearing liabilities.

Additionally, average loan yields and interest bearing deposits with other banks and short term investments yields were lower in first quarter of 2026 compared to the first quarter of 2025, partially offset by lower rates on interest-bearing liabilities.

Eagle Bancorp, Inc First Quarter 2026 Form 10-Q

Management's Discussion and Analysis | Results of Operations | Net Interest Income and Net Interest Margin

Net interest margin increased for the third quarter of 2025 compared to the third quarter of 2024, primarily due to reduction in interest earning assets associated with a decline in nonaccrual loan balances in the commercial real estate ("CRE") loan portfolio as well as securities in the investment portfolio.

The cost of funds on interest-bearing liabilities had a decrease of 53 basis points from 3.69% for the three months ended September 30, 2024 to 3.16% for the three months ended September 30, 2025, while the yield on interest-earning assets had an decrease of 38 basis points from 5.73% for the three months ended September 30, 2024 to 5.35% for the three months ended September 30, 2025.

Net interest income decreased for the first nine months of 2025 compared to the first nine months of 2024, primarily due to a larger decrease in interest-earning assets compared to interest-bearing liabilities.

Additionally, average loan yields were lower in 2025 compared to the prior year, partially offset by lower yields on interest-bearing liabilities.

Net interest margin decreased for the first nine months of 2025 compared to the first nine months of 2024, primarily due to a decrease in the yield on loans and lower average balances of interest-earning assets, partially offset by lower yields on interest-bearing liabilities.

The cost of funds on interest-bearing liabilities decreased by 40 basis points from 3.63% for the nine months ended September 30, 2024 to 3.23% for the nine months ended September 30, 2025, while the yield on interest-earning assets had a decrease of 38 basis points from 5.72% for the nine months ended September 30, 2024 to 5.34% for the nine months ended September 30, 2025.

Net interest margin was 2.47% for the three months ended March 31, 2026, an increase compared to 2.28% for the three months ended March 31, 2025.

The cost of funds on interest-bearing liabilities decreased by 51 basis points from 3.35% for the first quarter of 2025 to 2.84% for the first quarter of 2026, while the yield on interest-earning assets had a decrease of 24 basis points from 5.36% for the first quarter of 2025 to 5.12% for the first quarter of 2026.

Rate/Volume Analysis of Net Interest Income

The rate/volume table below presents the composition of the change in net interest income for the period indicated, as allocated between the change in net interest income due to changes in the volume of average earning assets and interest-bearing liabilities, and the changes in net interest income due to changes in interest rates.

Three Months Ended September 30, 2025 Compared with

Three Months Ended September 30, 2024

Nine Months Ended September 30, 2025 Compared with

Nine Months Ended September 30, 2024

Three Months Ended March 31, 2026 Compared with

Three Months Ended March 31, 2025

(dollars in thousands) Change

Volume Change

(Decrease) Change

Volume Change

Interest earned on:

4 unchanged sentences

Investment securities held-to-maturity (455) (140) (595)

Federal funds sold (83) 2 (81) (243) 5 (238)

Total interest income (14,183) (7,794) (21,977)

5 unchanged sentences

Derivative collateral liability

102 — 102 569 — 569

Other short-term borrowings (8,733) — (8,733)

2 unchanged sentences

Net interest income $ (3,583) $ 1,628 $ (1,955)

Eagle Bancorp, Inc Third Quarter 2025 Form 10-Q

Management's Discussion and Analysis | Results of Operations | Provision for Credit Losses

Provision for Credit Losses

3 unchanged sentences

The table below presents a breakdown of the current provision for credit losses included in our Consolidated Statements of Operations.

For the Three Months Ended September 30, For the Nine Months Ended September 30,

For the Three Months Ended March 31,

(dollars in thousands) 2026

3 unchanged sentences

Net charge offs in ACL $ (25,947) $ (11,230)

The change in the provision for credit losses on the loan portfolio for the three and nine months ended September 30, 2025 was primarily attributable to the replenishment of the reserve following net charge-offs, as reported in the table above, and an increase in the qualitative overlay.

Net charge-offs of $235.9 million during the first nine months of 2025 represented 4.02% of average loans held for investment on an annualized basis, an increase from net charge-offs of $29.0 million during same period in 2024, which represented 0.48% of average loans held for investment on an annualized basis.

Charge-offs during the first nine months of 2025 were driven by elevated losses primarily on office loans and other real estate loans with underlying office exposure, and to a lesser extent on land, multifamily, and senior living loans.

The increase in charge-offs was primarily driven by the receipt of new information regarding collateral valuations and borrower performance, particularly within the office sector.

During the second quarter of 2025, we disclosed our strategy for resolving criticized and classified loans with the goal of accelerating dispositions and reducing future asset quality risk.

In furtherance of this strategy, we obtained updated valuations in the third quarter of 2025 on the underlying collateral for certain loans that resulted in significant charge offs related to actual and expected dispositions.

Additionally, during the third quarter of 2025 we identified for disposition certain loans that were transferred to loans held-for-sale (HFS), which resulted in additional charge-offs of $109.5 million to record those loans at their fair value at the time of transfer.

Charge-offs related to loans transferred to HFS or sold during the nine months ended September 30, 2025 totaled $170.3 million, of which $124.1 million was related to HFS loans on our balance sheet as of September 30, 2025.

Our actions during the first nine months of 2025 reflect a disciplined approach to credit risk management that incorporates updated market and borrower data into our loss estimates.

The CRE office overlay decreased in the third quarter relative to the second quarter as office loans were moved to HFS.

However, updated assumptions associated with the PD and LGD rates, as well as downward risk rating migration, as further discussed in the "Allowance for Credit Losses" section below, impacted the office overlay in the third quarter.

Although loans were transferred to held-for-sale in the second and third quarter of 2025, reducing the office overlay population, the resulting charge-offs on those loans informed higher loss factors on the remaining loans addressed by the qualitative overlay, contributing to the elevated overlay for the first nine months of 2025.

The increase in the qualitative reserve for the first nine months of 2025 reflects management’s assessment of continued uncertainty in the CRE market, particularly within the office sector, as well as potential lag effects from interest-rate sensitivity, valuation declines, and refinancing risk.

Management continues to monitor trends in occupancy, capitalization rates, and market liquidity across key metropolitan areas and may adjust qualitative reserves further as these factors evolve.

The ACL coverage ratio remains within management’s target range and reflects the current asset quality profile, though further provision expense may be required if collateral values or borrower performance continue to deteriorate.

Eagle Bancorp, Inc Third Quarter 2025 Form 10-Q

Eagle Bancorp, Inc First Quarter 2026 Form 10-Q

Management's Discussion and Analysis | Results of Operations | Provision for Credit Losses

The change in the provision for credit losses on the loan portfolio for the three months ended March 31, 2026 was primarily attributable to a decrease in the qualitative reserve for CRE office loans ("office overlay"), partially offset by updated quantitative assumptions used to calculate our current expected credit losses.

Net charge-offs of $25.9 million during the three months ended March 31, 2026 represented 1.47% of average loans held for investment on an annualized basis, an increase from net charge-offs of $11.2 million in the three months ended March 31, 2025, which represented 0.57% of average loans held for investment on an annualized basis.

During 2025, we began executing on a revised strategy for resolving criticized and classified loans with the goal of accelerating dispositions and reducing asset quality risk.

In furtherance of this strategy, we continue to obtain updated valuations on the underlying collateral for certain loans and incorporate new information about borrower performance.

These updated valuations reflect the rapidly changing commercial real estate market in the D.C.

To mitigate future valuation risk, certain loans were transferred to loans held-for-sale ("HFS") in the three months ended March 31, 2026, which resulted in charge-offs of $11.6 million to record those loans at their fair value at the time of transfer.

We believe our actions during the current period reflect a disciplined approach to credit risk management that incorporates updated market and borrower data into our loss estimates.

The office overlay decreased in the three months ended March 31, 2026 relative to the three months ended March 31, 2025, impacted by updated assumptions associated with the PD and LGD rates as well as the migration of one sizable relationship to nonaccrual status that is now individually evaluated for a specific reserve.

The office overlay for the three months ended March 31, 2026 reflects management’s assessment of continued uncertainty in the CRE office sector, as well as potential lag effects from interest-rate sensitivity, valuation declines, and refinancing risk.

Management continues to monitor trends, including occupancy, capitalization rates, and market liquidity, across key metropolitan areas and may adjust qualitative reserves further as these factors evolve.

The provision for credit losses for the held-to-maturity securities portfolio was recorded primarily on several corporate bonds.

During the three and nine months ended September 30, 2025, there was a reversal of provision for credit losses of $30 thousand and $129 thousand, respectively, for the held-to-maturity securities portfolio, compared to a reversal of provision expense of $775 thousand and $719 thousand, respectively, for the three and nine months ended September 30, 2024.

During the three months ended March 31, 2026, there was a reversal of provision for credit losses of $124 thousand for the held-to-maturity securities portfolio, compared to a reversal of provision expense of $54 thousand for the year ended three months ended March 31, 2025.

The provision for credit losses for unfunded commitments is presented separately on the Consolidated Statements of Operations.

This provision considers the probability that unfunded commitments will fund, among other factors.

There was a reversal of provision of $38 thousand and provision expense of $1.4 million, respectively, for the three and nine months ended September 30, 2025, compared to a reversal of provision of $1.6 million and $529 thousand, respectively, for the three and nine months ended September 30, 2024, primarily due to higher unfunded commitments in our commercial and industrial portfolio during the current period.

There was a reversal of provision of $1.8 million for the year ended three months ended March 31, 2026, compared to a reversal of provision of $297 thousand for the year ended three months ended March 31, 2025, primarily due to a reduction in unfunded loan balances during the current period.

Refer to the discussion under "Critical Accounting Policies and Estimates" above and in "Note 1 – Summary of Significant Accounting Policies" to the Consolidated Financial Statements for an overview of the methodology management employs on a quarterly basis to assess the adequacy of the allowance and the provisions charged to expense.

1 unchanged sentence

Noninterest Income

Noninterest income includes service charges on deposits, gain/(loss) on sale of investment securities, income from BOLI and other income.

Noninterest income includes service charges on deposits, gain/(loss) on sale of investment securities and loans, income from Bank-Owned Life Insurance ("BOLI") and other income.

The table below summarizes the comparative noninterest income.

For the Three Months Ended September 30,

(dollars in thousands) 2025 2024 Dollar Change

Service charges on deposits $ 1,773 $ 1,747 $ 26

Gain (loss) on sale of loans

(3,550) 20 (3,570)

Net gain (loss) on sale of investment securities (1,982) 3 (1,985)

Increase in the cash surrender value of bank-owned life insurance 5,293 731 4,562

Other income 961 4,450 (3,489)

Total $ 2,495 $ 6,951 $ (4,456)

For the Nine Months Ended September 30,

(dollars in thousands) 2025 2024 Dollar Change

For the Three Months Ended March 31, Dollar Percent

(dollars in thousands) 2026 2025 Change

Service charges on deposits $ 1,732 $ 1,743 $ (11) (1) %

4 unchanged sentences

Total $ 12,708 $ 8,207 $ 4,501 55 %

The decrease in total noninterest income in the third quarter of 2025 compared to the third quarter of 2024 was primarily driven by $3.6 million loss on sale of loans and a $2.0 million loss on sale of securities in the investment portfolio, partially offset by increases in the cash surrender value of BOLI investments during the third quarter of 2025.

The increase in total noninterest income in the first nine months of 2025 as compared to the first nine months of 2024 was primarily driven by increases in the cash surrender value of BOLI investments in the first nine months of 2025, partially offset by losses on the sale of loans and investment securities.

Eagle Bancorp, Inc Third Quarter 2025 Form 10-Q

The increase in total noninterest income in the first quarter of 2026 as compared to the first quarter of 2025 was primarily due to higher gains on the sale of HFS loans and increases in the cash surrender value of BOLI.

Eagle Bancorp, Inc First Quarter 2026 Form 10-Q

Management's Discussion and Analysis | Results of Operations | Noninterest Expense

2 unchanged sentences

The table below summarizes the comparative noninterest expense.

For the Three Months Ended September 30,

(dollars in thousands) 2025 2024 Dollar Change Percent Change

Salaries and employee benefits $ 21,290 $ 21,675 $ (385) (2) %

Premises and equipment expenses 2,944 2,794 150 5 %

Marketing and advertising 1,316 1,588 (272) (17) %

Data processing 3,950 3,435 515 15 %

Legal, accounting and professional fees 2,396 3,433 (1,037) (30) %

FDIC insurance 6,665 7,399 (734) (10) %

Goodwill impairment — — — — %

Other expenses 3,336 3,290 46 1 %

Total $ 41,897 $ 43,614 $ (1,717) (4) %

For the Nine Months Ended September 30,

(dollars in thousands) 2025 2024 Dollar Change Percent Change

For the Three Months Ended March 31, Dollar Percent

(dollars in thousands) 2026 2025 Change

Salaries and employee benefits $ 23,247 $ 21,968 $ 1,279 6 %

4 unchanged sentences

FDIC insurance 7,009 8,962 (1,953) (22) %

Goodwill impairment — 104,168 (104,168) (100) %

Other expenses 6,567 2,847 3,720 131 %

Total $ 48,740 $ 45,451 $ 3,289 7 %

The decrease in total noninterest expense in the third quarter of 2025, as compared to the third quarter of 2024, was primarily due to lower legal, accounting and professional fees and lower FDIC insurance assessments in the current period.

The decrease in total noninterest expense in the first nine months of 2025 as compared to the first nine months of 2024 was primarily due to the $104.2 million 2024 goodwill impairment, partially offset by higher FDIC insurance assessments and higher data processing costs during the first nine months of 2025.

The increase in total noninterest expense for the first quarter of 2026 as compared to the first quarter of 2025 was primarily due to $2.9 million in valuation adjustment on the remaining HFS portfolio, which are reflected in other expenses in the table above.

The major components of other expenses include regulatory assessment fees, director compensation, real estate taxes, and insurance expenses.

As a percentage of average assets, total noninterest expense (annualized) was 1.43% and 1.47% for the three and nine months ended September 30, 2025 as compared to 1.40% and 2.46% for the same period in 2024.

The third quarter 2025 percentage compared to third quarter of 2024 was relatively flat while the decrease for the nine months ended September 30, 2025 as compared to the same period 2024 was primarily due to no goodwill impairment during the current period.

Eagle Bancorp, Inc Third Quarter 2025 Form 10-Q

Management's Discussion and Analysis | Results of Operations | Income Tax Expense

Additionally, when applicable, other expenses also include valuation adjustments and any disposition costs related to HFS loans.

As a percentage of average assets, total noninterest expense (annualized) was 1.79% for the first quarter of 2026 as compared to 1.52% in the first quarter of 2025.

Income Tax Expense

For the three and nine months ended September 30, 2025, income tax benefit was $16.9 million and $55.6 million, respectively, compared to income tax expense of $4.9 million and $12.3 million for the three and nine months ended September 30, 2024, respectively.

The decrease in the income tax expense compared to prior year was primarily due to a decrease in the pre-tax income during the first nine months of 2025, and the 2024 goodwill impairment that was not deductible for tax purposes.

The effective tax rate for the three and nine months ended September 30, 2025 was 20.0% and 29.1%, respectively.

The effective tax rate for the first nine months of 2025 varies from the 21% statutory rate primarily due to the tax benefit from the low-income housing tax credit equity investment, tax-exempt interest income and tax-exempt income from the increase in the cash surrender value of BOLI.

For the three months ended March 31, 2026, income tax expense was $1.3 million, compared to $772 thousand for the three months ended March 31, 2025.

The increase in income tax expense was primarily due to an increase in the pre-tax income during the first quarter of 2026.

The effective tax rate for the three months ended March 31, 2026 was 8.35%.

The effective tax rate represents the percentage of income tax expense against the pre-tax income in the three months ended March 31, 2026.

The effective tax rate for the three months ended March 31, 2026 varies from the 21% statutory rate primarily due to the tax benefit from the low-income housing tax credit equity investment, tax-exempt interest income and tax-exempt income from the increase in the cash surrender value of BOLI.

Eagle Bancorp, Inc First Quarter 2026 Form 10-Q

Management's Discussion and Analysis | Balance Sheet Analysis

Balance Sheet Analysis

This section discusses our condensed consolidated balance sheets and should be read together with our consolidated financial statements and the accompanying notes.

September 30, 2025 December 31, 2024 Change

March 31, 2026 December 31, 2025 Change

Cash and cash equivalents (1)

17 unchanged sentences

Total deposits 8,591,499 9,133,606 (542,107)

Customer repurchase agreements 13,725 33,157 (19,432)

Borrowings 76,511 76,428 83

2 unchanged sentences

Total Liabilities 8,809,004 9,365,920 (556,916)

Total Shareholders’ Equity 1,123,476 1,226,061 (102,585)

Shareholders’ Equity

1,145,277 1,131,283 13,994

Total Liabilities and Shareholders’ Equity $ 9,954,281 $ 10,497,203 $ (542,922)

(1) Consists of cash and due from banks, federal funds sold, interest-bearing deposits with banks, and other short-term investments.

(1) Consists of cash and due from banks, interest-bearing deposits with banks, and other short-term investments.

(2) Consists of available-for-sale securities at fair value and held-to-maturity securities, net of allowance for credit losses.

1 unchanged sentence

(4) Consists of operating lease liabilities, reserve for unfunded commitments and other liabilities.

See respective subsections below for the primary drivers of change and further discussion on loans, allowance for credit losses, other earning asset, deposits and other borrowings.

The decrease in total assets as of September 30, 2025 from December 31, 2024 was primarily driven by a decrease of $630.2 million in loans held for investment (to $7.3 billion as of September 30, 2025 from $7.9 billion as of December 31, 2024,) which was a result of reclassifying certain loans with a fair value of $136.5 million to held-for-

Eagle Bancorp, Inc Third Quarter 2025 Form 10-Q

See respective subsections below for the primary drivers of change and further discussion on loans, allowance for credit losses, other earning assets, deposits and other borrowings.

The decrease in total assets as of March 31, 2026 from December 31, 2025 was primarily due to lower cash balances and declines in securities and loans balances from sales, maturities and paydowns.

Investment securities, net of the allowance for credit losses, were $1.77 billion as of March 31, 2026 as compared to $1.83 billion as of December 31, 2025, a 3% decrease, primarily driven by maturities and paydowns on both AFS and HTM securities.

Cash flows from the securities portfolio are expected to be managed flexibly, including selective paydowns of brokered funding, while allowing for limited and opportunistic reinvestment in the securities portfolio.

Loans held for investment ("HFI") decreased by $341.9 million (from $7.3 billion as of December 31, 2025 to $6.9 billion as of March 31, 2026) while HFS loans decreased by $34.9 million.

Refer to the "Loan Portfolio", "Loan Maturity" and other loans-related sections below for further discussion on loans.

Total shareholders’ equity as of March 31, 2026 was $1.15 billion as compared to $1.13 billion as of December 31, 2025, a 1% increase.

The increase in shareholders’ equity was primarily due to net income of $14.7 million, offset by cash dividends of $0.3 million, and $0.9 million in other comprehensive loss.

The ratio of common equity to total assets was 11.51% as of March 31, 2026 as compared to 10.78% as of December 31, 2025.

Book value per share was $37.56 as of March 31, 2026, a 0.81% increase from $37.26 as of December 31, 2025.

Eagle Bancorp, Inc First Quarter 2026 Form 10-Q

Management's Discussion and Analysis | Balance Sheet Analysis

sale as well as declines in income-producing real estate and construction loans, partially offset by an increase in commercial and industrial loans and owner occupied CRE loans.

Investment securities, net of the allowance for credit losses, were $1.9 billion as of September 30, 2025 as compared to $2.2 billion as of December 31, 2024, a 12% decrease, primarily driven by sales, maturities and paydowns of investment securities.

The Bank does not currently plan to reinvest these proceeds back into the investment securities portfolio.

Total shareholders’ equity as of September 30, 2025 was $1.12 billion as compared to $1.23 billion as of December 31, 2024, a 8% decrease.

The decrease in shareholders’ equity in 2025 was primarily from the net loss from operations of $135.6 million, and payment of cash dividends of $15.0 million, offset by $43.7 million increase in other comprehensive income.

The ratio of common equity to total assets was 10.39% as of September 30, 2025 as compared to 11.02% as of December 31, 2024.

Book value per share was $37.00 as of September 30, 2025, a 8.87% decrease from $40.60 as of December 31, 2024.

In order to be considered well-capitalized, the Bank must have a common equity tier one capital ("CET1") risk based capital ratio of 6.5%, a Tier 1 risk-based ratio of 8.0%, a total risk-based capital ratio of 10.0% and a leverage ratio of 5.0%.

The Company and the Bank exceeded all these requirements and satisfy the capital conservation buffer of 2.5% of CET1 capital.

The Company and the Bank exceeded all these requirements and satisfy the capital conservation buffer of 2.5% of CET1 capital as of March 31, 2026.

Failure to maintain the required capital conservation buffer would limit the ability of the Company and the Bank to pay dividends, repurchase shares or pay discretionary bonuses.

The Company's capital ratios remain substantially in excess of regulatory minimums and buffer requirements.

The total risk based capital ratio was 14.83% as of September 30, 2025, as compared to 15.86% as of December 31, 2024.

The CET1 risk based capital ratio was 13.58% as of September 30, 2025, as compared to 14.63% as of December 31, 2024.

The tier 1 risk based capital ratio was 13.58% as of September 30, 2025, as compared to 14.63% as of December 31, 2024.

The tier 1 leverage ratio was 10.40% as of September 30, 2025, as compared to 10.74% as of December 31, 2024.

The total risk based capital ratio was 15.05% as of March 31, 2026, as compared to 14.33% as of December 31, 2025.

The CET1 risk based capital ratio was 13.80% as of March 31, 2026, as compared to 13.07% as of December 31, 2025.

The tier 1 risk based capital ratio was 13.80% as of March 31, 2026, as compared to 13.07% as of December 31, 2025.

The tier 1 leverage ratio was 10.63% as of March 31, 2026, as compared to 9.72% as of December 31, 2025.

Refer to "Capital Resources and Adequacy" section below for further discussion on our capital.

Loan Portfolio

1 unchanged sentence

We believe superior customer service, local decision making and accelerated turnaround time from application to closing are significant factors in growing the loan portfolio and meeting the lending needs in the markets served, while maintaining sound asset quality.

Loans held for investment were $7.3 billion as of September 30, 2025, as compared to $7.9 billion as of December 31, 2024, a decrease of $630.2 million or 7.9%.

During the first nine months of 2025, $22.1 million of HFS loans were sold, resulting in a loss of $3.6 million.

There was $136.5 million in loans held for sale as of September 30, 2025 and none as of December 31, 2024.

The loan portfolio mix continues to evolve as the Bank has experienced a reduction in income producing commercial real estate loans and owner-occupied construction loans, offset by increases in commercial and owner-occupied commercial real estate loans.

Loans held for investment were $6.9 billion as of March 31, 2026, as compared to $7.3 billion as of December 31, 2025, a decrease of $341.9 million or 4.7%.

During the period ended March 31, 2026, certain loans, primarily income producing commercial real estate loans, were reclassified from HFI to HFS loans.

This reclassification resulted in net charge-offs of $11.6 million in order to bring the loans to the lower of cost or fair value of $111.8 million at the time of transfer.

During the first quarter of 2026, eight HFS loans were sold, resulting in a gain of $3.6 million.

There were $55.7 million in loans held for sale as of March 31, 2026, compared to $90.7 million as of December 31, 2025.

The loan portfolio mix continues to evolve as the Bank has experienced a reduction in income producing commercial real estate loans and construction loans, offset by increases in commercial and owner-occupied commercial real estate loans.

These shifts reflect our strategic focus on reshaping the portfolio toward relationship-driven commercial lending and asset classes aligned with our long-term risk-adjusted return objectives.

We continue to see opportunities for growth in the commercial lending market in our focused sectors;

our processes for evaluating these opportunities are designed to ensure they are subject to reasonable underwriting standards, including appropriate cash flow necessary to support debt service.

We continue to see opportunities for growth in the commercial lending market and our processes for evaluating these opportunities are designed to ensure they are subject to reasonable underwriting standards, including appropriate cash flow necessary to support debt service.

Following origination, we continue to monitor our borrowers' business plans and assess primary and alternative sources for loan repayment and, if necessary, obtain collateral or additional collateral to mitigate credit loss in the event of default.

The Bank has a large portion of its loan portfolio related to real estate, with 82% consisting of commercial real estate and real estate construction loans as of September 30, 2025.

Non-owner occupied commercial real estate represented 61% of the loan portfolio while the remaining 21% is represented by the "owner occupied - commercial real estate" and "construction - C&I (owner occupied)" loans.

Eagle Bancorp, Inc Third Quarter 2025 Form 10-Q

Management's Discussion and Analysis | Balance Sheet Analysis | Loan Portfolio

The Bank has a large portion of its loan portfolio related to real estate, with 78% consisting of commercial real estate and real estate construction loans as of March 31, 2026.

Non-owner occupied commercial real estate and commercial and residential construction represented 53% of the loan portfolio while the remaining 25% is represented by the "owner occupied - commercial real estate" and "construction - C&I (owner occupied)" loans.

The table below presents loans, net of amortized deferred fees and costs by major category.

September 30, 2025

March 31, 2026

December 31, 2025

1 unchanged sentence

Commercial $ 1,432,933 21 % $ 1,338,486 18 %

PPP loans 103 — % 287 — %

Income producing - commercial real estate 3,030,004 44 % 3,350,718 46 %

9 unchanged sentences

$ 6,791,397 $ 7,120,855

(1) Excludes accrued interest receivable of $36.9 million and $42.9 million as of September 30, 2025 and December 31, 2024, respectively, which is recorded in other assets.

(1) Excludes accrued interest receivable of $33.3 million and $35.9 million as of March 31, 2026 and December 31, 2025, respectively, which is recorded in other assets.

Eagle Bancorp, Inc First Quarter 2026 Form 10-Q

Management's Discussion and Analysis | Balance Sheet Analysis | Loan Portfolio

As noted above, a significant portion of the loan portfolio consists of commercial, construction and commercial real estate loans, primarily in the Washington, D.C.

10 unchanged sentences

Other Maryland Other Locations

Eagle Bancorp, Inc Third Quarter 2025 Form 10-Q

Management's Discussion and Analysis | Balance Sheet Analysis | Loan Portfolio

As part of its lending strategy, the Company maintains a substantial portfolio of CRE loans, with $5.9 billion and $6.5 billion, or 80.7% and 81.5% of total loans, of amortized cost outstanding as of September 30, 2025 and December 31, 2024, respectively.

As part of its lending strategy, the Company maintains a substantial portfolio of CRE loans, with $5.3 billion and $5.7 billion, or 76.3% and 78.3% of total loans, of amortized cost outstanding as of March 31, 2026 and December 31, 2025, respectively.

Management meets regularly in order to monitor its existing CRE loan portfolio and to evaluate the pipeline for CRE loan investment.

Income producing CRE loans collateralized by office properties comprised approximately $601.2 million and $862.2 million, or 8.2% and 10.9% of total loans, as of September 30, 2025 and December 31, 2024, respectively.

Office loans within Washington, D.C., Washington's Maryland Suburbs and Northern Virginia were $571.1 million and $795.0 million, or 7.8% and 10.0% of total loans, as of September 30, 2025 and December 31, 2024, respectively.

Income producing CRE loans collateralized by office properties comprised approximately $573.5 million and $576.1 million, or 8.3% and 7.9% of total loans, as of March 31, 2026 and December 31, 2025, respectively.

Office loans within Washington, D.C., Washington's Maryland Suburbs and Northern Virginia were $543.5 million and $545.8 million, or 7.8% and 7.5% of total loans, as of March 31, 2026 and December 31, 2025, respectively.

Eagle Bancorp, Inc First Quarter 2026 Form 10-Q

Management's Discussion and Analysis | Balance Sheet Analysis | Loan Portfolio

The chart below displays the geographic concentration of income producing - CRE office loans in our loan portfolio, as percentage of total principal balance.

3 unchanged sentences

Washington's Maryland Suburbs Northern Virginia

Eagle Bancorp, Inc Third Quarter 2025 Form 10-Q

Management's Discussion and Analysis | Balance Sheet Analysis | Loan Portfolio

The table below summarizes the Company's income producing - commercial real estate loans, at principal balance, by collateral location and type.

As of September 30, 2025

As of March 31, 2026

Maryland Virginia

11 unchanged sentences

Condo 56,724 2,001 1,845 5,665 6,293 3,978 76,506 2 %

Other 150,960 168,140 25,562 328,650 5,951 25,477 704,740 20 %

199,559 168,437 12,107 206,811 5,425 25,353 617,692 20 %

Total $ 1,033,704 $ 677,707 $ 206,248 $ 761,626 $ 250,521 $ 105,219 $ 3,035,025 100 %

8 unchanged sentences

Total 100 % 100 % 100 % 100 % 100 % 100 %

As of September 30, 2025 and December 31, 2024, $113.1 million and $287.0 million, respectively, of principal of CRE loans collateralized by office properties were criticized or classified.

(1) Primarily includes commercial real estate loans with land, storage, and healthcare collateral.

As of March 31, 2026 and December 31, 2025, $94.8 million and $107.9 million, respectively, of principal of CRE loans collateralized by office properties were criticized or classified.

Eagle Bancorp, Inc First Quarter 2026 Form 10-Q

Management's Discussion and Analysis | Balance Sheet Analysis | Loan Portfolio

The table below displays income producing - commercial real estate loans, at principal, that are criticized or classified by collateral type.

September 30, 2025

March 31, 2026

December 31, 2025

15 unchanged sentences

There can be no assurance that any additional initiatives will be undertaken or, if pursued or undertaken, will achieve their intended results.

Eagle Bancorp, Inc Third Quarter 2025 Form 10-Q

Management's Discussion and Analysis | Balance Sheet Analysis | Loan Maturity

Loan Maturity

2 unchanged sentences

Demand loans, having no contractual maturity, and overdrafts are reported as due in one year or less.

As of September 30, 2025

As of March 31, 2026

(dollars in thousands) Total One Year or Less Over One Year to Five Years Over Five Years to Fifteen Years Over Fifteen Years

Commercial $ 1,432,933 $ 400,722 $ 861,351 $ 150,231 $ 20,629

PPP loans 103 103 — — —

Income producing - commercial real estate (1)

10 unchanged sentences

Total loans $ 6,938,560 $ 2,737,335 $ 2,971,186 $ 803,037 $ 427,002

(1) Income producing CRE office loans with total principal of $602.4 million and multifamily loans with total principal of $837.3 million as of September 30, 2025 are included within income producing - commercial real estate.

(1) Income producing CRE office loans with total principal of $574.3 million and multifamily loans with total principal of $762.0 million as of March 31, 2026 are included within income producing - commercial real estate.

The charts below represent their maturities schedules.

Eagle Bancorp, Inc First Quarter 2026 Form 10-Q

Management's Discussion and Analysis | Balance Sheet Analysis | Loan Maturity

Allowance for Credit Losses

2 unchanged sentences

A full discussion of the accounting for ACL is contained in "Note 1 – Summary of Significant Accounting Policies" to the Consolidated Financial Statements and activity in the ACL is contained in "Note 4 – Loans and Allowance for Credit Losses" to the Consolidated Financial Statements.

Also, refer to "Critical Accounting Policies and Estimates" above for further discussion of the methodology which management employs to maintain an adequate ACL, as well as "Provision for Credit Losses" above for a discussion of the Company's calculation of the provision for credit losses during the three and nine months September 30, 2025 and 2024.

Eagle Bancorp, Inc Third Quarter 2025 Form 10-Q

Management's Discussion and Analysis | Balance Sheet Analysis | Allowance for Credit Losses

The ACL for loans as of September 30, 2025 was $156.2 million, which reflected an increase of $41.8 million from $114.4 million as of December 31, 2024.

The ACL represented 2.14% of total loans as of September 30, 2025 as compared to 1.44% as of December 31, 2024.

Management believes the ACL as of September 30, 2025 is adequate to absorb estimated losses inherent in the portfolio following the loss recognition of high-risk loans concentrated in the commercial real estate office segment, during the second and third quarters of 2025, that resulted in an elevated rate of charge-offs for the first nine months of 2025.

As of September 30, 2025, the allowance represented 132% of nonperforming loans as compared to 55% as of December 31, 2024.

The increase in the ACL for loans at September 30, 2025 compared to December 31, 2024, was primarily due to increased reserves for the Bank's CRE office overlay.

The overlay increased as charge-offs taken during the current period, and negative risk rating migration within the CRE office portfolio, were incorporated into the calculation.

Negative risk rating migration within the CRE office portfolio during the first nine months of 2025 were primarily a result of continued market deterioration.

In addition, the ACL on individually assessed loans also increased as updated valuation information was received, primarily on loans that migrated to nonperforming status during the current period.

The ACL for loans as of March 31, 2026 was $147.2 million, which reflected a decrease of $12.4 million from $159.6 million as of December 31, 2025.

The ACL represented 2.12% of total loans as of March 31, 2026 as compared to 2.19% as of December 31, 2025.

Management believes the ACL as of March 31, 2026 remains adequate to absorb estimated losses inherent in the portfolio following the loss recognition on high-risk loans concentrated in the commercial real estate office segment.

The losses recognized in the first quarter of 2026 were primarily due to transfer of certain loans to HFS and the incorporation of new information about borrower performance.

As of March 31, 2026, the allowance represented 114% of nonperforming loans as compared to 149% as of December 31, 2025.

The decrease in the ACL for loans at March 31, 2026 compared to December 31, 2025, was primarily due to a decrease in the office overlay and charge-offs of previously reserved amounts, partially offset by updated assumptions in the CECL model calculation.

As part of its comprehensive loan review process, the Bank’s Risk Committee evaluates loans which are past due 30 days or more.

2 unchanged sentences

The Credit Administration department analyzes the status of development and construction projects, including sales activities and utilization of interest reserves in order to assess potential increased levels of risk which may require additional reserves.

As of September 30, 2025 and December 31, 2024, loans rated special mention had an amortized cost of $423.7 million and $244.8 million, respectively, and loans rated substandard had an amortized cost of $534.8 million and $426.4 million, respectively.

The increase in substandard loans was primarily attributable to additions in CRE loans, particularly in income producing - commercial real estate as weaknesses in borrower performance were identified during our credit monitoring processes.

As of September 30, 2025, 100% and 77% of special mention and substandard loans, respectively, were current.

As of March 31, 2026 and December 31, 2025, the Company had $128.8 million and $106.9 million, respectively, of loans classified as nonperforming.

Please refer to the "Nonperforming Assets" section for a discussion of problem and potential problem assets.

Refer to "Note 1 – Summary of Significant Accounting Policies" to the Consolidated Financial Statements under the caption "Loans" for a discussion of the Company’s policy regarding individual evaluation of loans to record a provision for expected credit losses.

As of March 31, 2026 and December 31, 2025, loans rated special mention had an amortized cost of $290.8 million and $268.9 million, respectively, and loans rated substandard had an amortized cost of $447.6 million and $514.5 million, respectively.

The decrease in substandard loans was primarily attributable to transfer of certain loans to HFS, as previously discussed.

Eagle Bancorp, Inc First Quarter 2026 Form 10-Q

Management's Discussion and Analysis | Balance Sheet Analysis | Allowance for Credit Losses

As of March 31, 2026, 99% and 69% of special mention and substandard loans, respectively, were current, with the remainder either 30 or more days past due or nonperforming.

Based upon their status as potential problem loans, loans risk rated special mention or substandard receive heightened scrutiny.

5 unchanged sentences

The loan portfolio analysis process is ongoing and proactive to support the Company's objective of maintaining a portfolio of quality credits and quickly identifying weaknesses before they become more severe.

As of September 30, 2025 and December 31, 2024, the Company's performing office coverage ratio, which calculates the ACL attributable to loans collateralized by performing office properties as a percentage of total loans, was 11.36% and 3.81%, respectively.

Eagle Bancorp, Inc Third Quarter 2025 Form 10-Q

Management's Discussion and Analysis | Balance Sheet Analysis | Allowance for Credit Losses

The table below presents activity in the allowance for credit losses.

For the Nine Months Ended September 30,

For the Three Months Ended March 31,

(dollars in thousands) 2026

4 unchanged sentences

Real estate mortgage - residential (80) —

Construction - commercial and residential (17,837) (129)

Other consumer — (4)

8 unchanged sentences

Annualized ratio of net charge-offs to average loans outstanding during the period

The table below displays the allocation of the ACL by loan category and the percentage of allowance in each category.

The allocation of the allowance as of September 30, 2025 includes the allowance for credit losses of $24.7 million against individually assessed loans of $119.1 million, as compared to allowance for credit losses of $17.1 million against individually assessed loans of $208.7 million as of December 31, 2024.

1.47 % 0.57 %

The allocation of the allowance as of March 31, 2026 includes the allowance for credit losses of $38.4 million against individually assessed loans of $128.8 million, as compared to allowance for credit losses of $19.6 million against individually assessed loans of $106.9 million as of December 31, 2025.

In addition, the Company's performing office coverage ratio, which calculates the ACL attributable to loans collateralized by performing office properties as a percentage of total loans, was 7.39% and 12.89% as of March 31, 2026 and December 31, 2025, respectively.

The allocation of the allowance to each category is not necessarily indicative of future losses or charge-offs and does not restrict the usage of the allowance to absorb losses in any category.

2 unchanged sentences

These reclassifications had no effect on net income (loss) or shareholders' equity.

September 30, 2025

Eagle Bancorp, Inc First Quarter 2026 Form 10-Q

Management's Discussion and Analysis | Balance Sheet Analysis | Allowance for Credit Losses

The table below displays the allocation of the ACL by loan category and the percentage of allowance in each category.

March 31, 2026

December 31, 2025

9 unchanged sentences

Total $ 147,163 100 % 100 % $ 159,604 100 % 100 %

Eagle Bancorp, Inc Third Quarter 2025 Form 10-Q

Management's Discussion and Analysis | Balance Sheet Analysis | Allowance for Credit Losses

The table below displays the allocation of the ACL specific to income producing - commercial real estate loans by collateral type.

September 30, 2025

March 31, 2026

December 31, 2025

13 unchanged sentences

Nonperforming Assets

The Company’s nonperforming assets are comprised of the amortized cost of loans delinquent 90 days or more, and nonaccrual HFI loans, which includes the nonperforming portion of loan modifications, and the carrying value of other real estate owned ("OREO").

Nonperforming assets totaled $133.3 million as of September 30, 2025, representing 1.23% of total assets, as compared to $211.4 million as of December 31, 2024, representing 1.90% of total assets.

The decrease was primarily due to charge offs of nonaccrual loans and changes in nonperforming loans discussed below.

As of September 30, 2025, nonaccrual HFS loans totaling $121.3 million were excluded from nonperforming assets since they are carried at the lower of cost or fair value and are not reflected in credit metrics.

The Company had no accruing loans that were 90 days or more past due as of September 30, 2025 and December 31, 2024.

The Company’s nonperforming assets are comprised of the amortized cost of nonaccrual HFI loans, which includes the nonperforming portion of loan modifications, and the carrying value of other real estate owned ("OREO").

Nonperforming assets totaled $130.8 million as of March 31, 2026, representing 1.31% of total assets, as compared to $109.0 million as of December 31, 2025, representing 1.04% of total assets.

The increase was primarily due to the migration of one previously substandard-rated CRE office relationship to nonaccrual status during the quarter, along with other credit facilities in the C&I and construction - commercial & residential categories, partly offset by charge offs of nonaccrual loans as well as by loans transferred to HFS.

As of March 31, 2026, nonaccrual HFS loans totaling $55.2 million were excluded from nonperforming assets since they are carried at the lower of cost or fair value and are not reflected in credit metrics.

Total nonperforming loans had an amortized cost of $128.8 million as of March 31, 2026, representing 1.86% of total loans, compared to $106.9 million as of December 31, 2025, representing 1.47% of total loans.

The Company had no accruing loans that were 90 days or more past due as of March 31, 2026 and December 31, 2025.

Management prioritizes remaining attentive to early signs of deterioration in borrowers’ financial conditions and to taking action designed to mitigate risk.

The Company places loans on nonaccrual status if it deems collection to be doubtful.

The Company believes, based on its loan portfolio risk analysis that its ACL at 2.14% of total loans as of September 30, 2025, is adequate to absorb expected credit losses within the loan portfolio at that date.

Total nonperforming loans had an amortized cost of $118.6 million as of September 30, 2025, representing 1.62% of total loans, compared to $208.7 million as of December 31, 2024, representing 2.63% of total loans.

This decrease was primarily driven by the reduction of nonperforming loans in the income-producing commercial real estate category.

The CECL standard allows for institutions to evaluate individual loans in the event that the asset does not share similar risk characteristics with its original segmentation.

This can occur due to credit deterioration, increased collateral dependency or other factors leading to impairment.

In particular, the Company individually evaluates loans on nonaccrual status, though it may individually evaluate other loans or groups of loans as well if it determines they no longer share similar risk with their assigned segment.

Reserves on individually assessed loans are determined by one of two methods:

the fair value of collateral or the discounted cash flow.

Fair value of collateral is used for loans determined to be collateral dependent, and the fair value represents the net realizable value of the collateral, adjusted for sales costs, commissions, senior liens, etc.

Discounted cash flow is used on loans that are not collateral dependent where structural concessions have been made and continuing payments are expected.

The continuing payments are discounted over the expected life at the loan’s original contract rate and include adjustments for risk of default.

Nonperforming assets include loans that the Company considers to be individually assessed.

Individually assessed loans are defined as those as to which we believe it is probable that we will not collect all amounts due according to the contractual terms of the loan agreement.

Loans that do not share risk characteristics consistent with similar loans are evaluated on an individual basis.

For collateral dependent financial assets where the Company has determined that foreclosure of the collateral is probable, or where the borrower is experiencing financial difficulty and the Company expects repayment of the financial asset to be provided substantially through the sale of the collateral, the ACL is measured based on the difference between the fair value of the collateral and the amortized cost basis of the asset as of the measurement date.

When repayment is expected to be from the operation of the

Eagle Bancorp, Inc Third Quarter 2025 Form 10-Q

Eagle Bancorp, Inc First Quarter 2026 Form 10-Q

Management's Discussion and Analysis | Balance Sheet Analysis | Nonperforming Assets

collateral, expected credit losses are calculated as the amount by which the amortized cost basis of the financial asset exceeds the NPV from the operation of the collateral.

When repayment is expected to be from the sale of the collateral, expected credit losses are calculated as the amount by which the amortized cost basis of the financial asset exceeds the fair value of the underlying collateral less estimated cost to sell.

The ACL may be zero if the fair value of the collateral at the measurement date exceeds the amortized cost basis of the financial asset.

Under the CECL standard, loans that no longer share similar risk characteristics with their assigned segment—due to credit deterioration, increased collateral dependency, or other factors—are evaluated on an individual basis.

The Company individually assesses all nonaccrual loans and may also individually evaluate other loans or groups of loans when it is probable that not all contractual amounts will be collected.

Expected credit losses on individually assessed loans are measured using either the fair value of collateral or discounted cash flow methods.

For collateral-dependent loans, including those for which foreclosure is probable or repayment is expected substantially through the sale or operation of the collateral, the ACL is based on the difference between the asset’s amortized cost basis and the net realizable value of the collateral, adjusted for estimated selling costs, commissions, senior liens, and other factors;

the ACL may be zero when collateral value exceeds amortized cost.

For loans that are not collateral dependent but have experienced structural concessions and are expected to continue making payments, expected credit losses are measured using discounted cash flows over the expected life of the loan at the original contractual interest rate, with adjustments for default risk.

Based on management’s analysis of portfolio risk, the Company believes its ACL, which totaled 2.12% of total loans as of March 31, 2026, is adequate to absorb expected credit losses at that date.

Generally, collateral valuations associated with individually assessed loans are updated on not less than an annual basis.

12 unchanged sentences

A loan that is considered a modified loan may be evaluated for disclosure if the commitment is $500 thousand or greater.

Management strives to identify borrowers in financial difficulty early and work with them to modify their loan to more affordable terms before their loan reaches nonaccrual status, foreclosure or repossession of the collateral to minimize economic loss to the Company.

Management strives to identify borrowers in financial difficulty early and may work with them to modify their loan to more affordable terms before their loan reaches nonaccrual status, foreclosure or repossession of the collateral to minimize economic loss to the Company.

Commercial and consumer loans modified are closely monitored for delinquency as an early indicator of possible future default.

1 unchanged sentence

The allowance may be increased, adjustments may be made in the allocation of the allowance, or partial charge-offs may be taken to further write-down the carrying value of the loan.

During the nine months ended September 30, 2025, the Bank modified 29 loans with a total amortized cost of $199.2 million as of September 30, 2025 (2.7% of the loan portfolio).

During the three months ended March 31, 2026, the Bank modified 9 loans with a total amortized cost of $82.2 million as of March 31, 2026 (1.2% of the loan portfolio).

These loans received extended loan terms of between approximately 3 to 24 months.

As of September 30, 2025, the payment status of 38 loans modified in the preceding twelve months, totaling $218.1 million of amortized cost basis, included 26 loans with a total amortized cost basis $171.0 million which were performing under their modified terms and 11 loans with a total amortized cost basis of $44.3 million which were on nonaccrual status .

Management, from time-to-time and in the ordinary course of business, implements renewals, modifications, extensions and/or changes in terms of loans to borrowers who have the ability to repay on reasonable market-based terms, as circumstances may warrant, and therefore, such modifications are not considered to be loan restructurings to a borrower experiencing financial difficulty, as the accommodation of a borrower's request does not rise to the level of a concession if the modified transaction is at market rates and terms and/or the borrower is not experiencing financial difficulty.

(1) adverse weather conditions may create a short term cash flow issue for an otherwise profitable retail business which suggests a temporary interest only period on an amortizing loan;

As of March 31, 2026, the payment status of 28 loans that were modified in the preceding twelve months, included 21 loans with a total amortized cost basis $189.6 million which were performing under their modified terms, 2 loan with a total amortized cost basis of $7.2 million which was 30-89 days past due and 5 loans with a total amortized cost basis of $18.8 million which were on nonaccrual status.

(1) adverse weather conditions may create a short term cash flow issue for an otherwise profitable retail business which suggests a temporary interest only

Eagle Bancorp, Inc First Quarter 2026 Form 10-Q

Management's Discussion and Analysis | Balance Sheet Analysis | Nonperforming Assets

period on an amortizing loan;

(2) there may be delays in absorption on a real estate project which reasonably suggests extension of the loan maturity at market terms;

or (3) there may be maturing loans to borrowers with demonstrated repayment ability who are not in a position at the time of maturity to obtain alternate long-term financing.

Eagle Bancorp, Inc Third Quarter 2025 Form 10-Q

Management's Discussion and Analysis | Balance Sheet Analysis | Nonperforming Assets

Included in nonperforming assets as of September 30, 2025 was OREO of $14.7 million, consisting of six foreclosed properties, compared to OREO of $2.7 million, consisting of five foreclosed properties as of December 31, 2024.

Included in nonperforming assets as of March 31, 2026 was OREO of $2.1 million, consisting of three foreclosed properties, which was unchanged compared to OREO of $2.1 million, consisting of three foreclosed properties as of December 31, 2025.

OREO properties are carried at the lower of cost or at fair value less estimated costs to sell.

1 unchanged sentence

Generally, the Company obtains updated appraisals or evaluations where it has reason to believe, based upon market indications (such as comparable sales, a scenario in which the Company is considering legitimate offers below carrying value, broker indications and similar factors), that the current appraisal does not accurately reflect current value.

There were two OREO sales in nine months ended September 30, 2025 and two in nine months ended September 30, 2024, generating proceeds of $769 thousand and $656 thousand, respectively.

There were zero OREO sales in the first quarter of 2026 and two in the first quarter of 2025, generating proceeds of zero and $772 thousand, respectively.

The table below presents the amounts of nonperforming assets, including loans at amortized cost and OREO at the lower of cost or fair value less estimated costs to sell.

(dollars in thousands) September 30, 2025 December 31, 2024

(dollars in thousands) March 31, 2026 December 31, 2025

Nonaccrual Loans:

13 unchanged sentences

Ratio of nonperforming assets to total assets 1.31 % 1.04 %

(1) Excludes nonaccrual HFS loans totaling $121.3 million and zero as of September 30, 2025 and December 31, 2024, respectively.

(1) Excludes nonaccrual HFS loans totaling $55.2 million and $90.7 million as of March 31, 2026 and December 31, 2025, respectively.

Significant variation in the amount of nonperforming loans may occur from period to period because the amount of nonperforming loans depends largely on the condition of a relatively small number of individual credits and borrowers relative to the total loan portfolio.

Other Earning Assets

As part of its employee benefits and financing strategies, the Company has invested in Bank-Owned Life Insurance ("BOLI") policies.

As part of its employee benefits and financing strategies, the Company has invested in BOLI policies.

BOLI serves as a tax-efficient asset designed to offset the cost of employee benefit obligations.

The Company views BOLI as a long-term investment to help fund future benefit expenses.

As of September 30, 2025, the cash surrender value of BOLI totaled $330.4 million, compared to $115.8 million as of December 31, 2024.

The increase reflects earnings on the policies as well as additional BOLI purchased through premium payments made in the first nine months of 2025.

As of March 31, 2026, the cash surrender value of BOLI totaled $339.8 million, compared to $335.2 million as of December 31, 2025.

The increase reflects net earnings on the BOLI policies during 2026.

Deposits and Other Borrowings

The principal sources of funds for the Bank are core deposits, consisting of demand deposits, money market accounts, Negotiable Order of Withdrawal ("NOW") accounts, savings accounts, and certificates of deposits.

The deposit base includes transaction accounts, time and savings accounts and accounts which customers use for cash management and which provide the Bank with a source of fee income and cross-marketing opportunities, as well as an attractive source of lower cost funds.

To meet funding needs during periods of high loan demand and seasonal variations in core deposits, the Bank regularly utilizes alternative funding sources such as secured borrowings from the FHLB, federal funds purchased lines of credit from correspondent banks and brokered deposits.

Eagle Bancorp, Inc Third Quarter 2025 Form 10-Q

The deposit base includes transaction accounts, time and savings accounts and accounts which customers use for cash management which provide the Bank with a source of fee income and cross-marketing opportunities, as well as an attractive source of lower cost funds.

To meet funding needs during periods of high loan demand and seasonal variations in core deposits, the Bank utilizes alternative funding sources such as brokered deposits, secured borrowings from the FHLB, and federal funds purchased lines of credit from correspondent banks.

Eagle Bancorp, Inc First Quarter 2026 Form 10-Q

Management's Discussion and Analysis | Balance Sheet Analysis | Deposits and Other Borrowings

The table below presents the Bank’s deposit composition by balance and percentage.

September 30, 2025

March 31, 2026

December 31, 2025

5 unchanged sentences

Total $ 8,591,499 100 % $ 9,133,606 100 %

For the nine months ended September 30, 2025, deposits increased primarily as the result of growth in time deposits from the company's digital acquisition channel and savings and money market accounts, partially offset by a decrease in interest-bearing transaction accounts.

No single depositor represented more than 10% of total deposits as of September 30, 2025.

The ten largest depositors not associated with brokered pass-through relationships represented approximately 18% of total deposits as of September 30, 2025.

For the three months ended March 31, 2026, deposits decreased primarily due to a shift in funding mix and change in deposit composition which resulted in lower balances in savings and money market accounts and brokered time deposits.

No single depositor represented more than 10% of total deposits as of March 31, 2026.

The ten largest depositors not associated with brokered pass-through relationships represented approximately 17% of total deposits as of March 31, 2026.

The Company maintains a significant deposit relationship with a third-party payments processor, whose business results in deposit inflows and outflows on an ongoing basis, which contributes to variations in period end balances compared to average deposit balances.

The Bank accepts brokered time deposits generally in denominations of less than $250 thousand from brokerage networks, including IntraFi Network, LLC ("IntraFi").

The Bank participates in IntraFi's CDARS and the ICS programs, which provide for reciprocal ("two-way") transactions among banks to maximize FDIC insurance.

The Bank offers brokered time deposits generally in denominations of less than $250 thousand from brokerage networks.

The Bank participates in CDARS and the ICS programs within IntraFi Network, LLC ("IntraFi"), which provide for reciprocal ("two-way") transactions among banks to maximize FDIC insurance.

ICS also allows for the sale of deposits into the IntraFi Network ("One-Way Sale") which provides FDIC insurance for the depositor without reciprocal deposits returned to the Bank.

1 unchanged sentence

The sale of ICS deposits allows the Bank to moderate the fluctuation of deposit balances.

As of September 30, 2025, the Bank sold de minimis deposits through the IntraFi One-Way Sale network.

The total of reciprocal deposits as of September 30, 2025 was $1.4 billion (15% of total deposits) as compared to $1.4 billion (16% of total deposits) as of December 31, 2024.

As of March 31, 2026, the Bank sold de minimis deposits through the IntraFi One-Way Sale network.

The total of reciprocal deposits as of March 31, 2026 was $1.6 billion (18% of total deposits) as compared to $1.7 billion (19% of total deposits) as of December 31, 2025.

These sources are believed by the Company to represent a reliable and cost efficient alternative funding source for the Bank, but there can be no assurance that they will continue to be adequate or appropriate to meet our liquidity needs.

The Bank also is able to obtain one way CDARS deposits and participates in IntraFi’s Insured Network Deposit Program ("IND").

The Bank had $643.3 million and $894.7 million of IND brokered deposits as of September 30, 2025 and December 31, 2024, respectively.

The Bank also is able to receive one way CDARS deposits and participates in IntraFi’s Insured Network Deposit Program ("IND").

The Bank had $269.9 million and $385.7 million of IND brokered deposits as of March 31, 2026 and December 31, 2025, respectively.

However, to the extent that the condition or reputation of the Company or Bank deteriorates, or to the extent that there are significant changes in market interest rates which the Company and Bank do not elect to match, or if aggregate funding available to banks changes due to changes in the marketplace, we may experience an outflow of brokered deposits or difficulty with obtaining them in the future.

1 unchanged sentence

We have used brokered deposits and intend to continue to use brokered deposits as one of our funding sources.

As of September 30, 2025, total brokered deposits were $3.5 billion, or 37% of total deposits, compared to $4.0 billion, or 44% as of December 31, 2024.

These brokered deposits were comprised of savings, money market and other interest-bearing transaction accounts of $2.4 billion and $2.7 billion, and time deposits of $910.5 million and $1.3 billion as of September 30, 2025 and December 31, 2024, respectively.

As of March 31, 2026, total brokered deposits were $2.9 billion, or 34% of total deposits, compared to $3.3 billion, or 36% as of December 31, 2025.

These brokered deposits were comprised of savings, money market and other interest-bearing transaction accounts of $2.1 billion and $2.4 billion, and time deposits of $0.6 billion and $0.8 billion as of March 31, 2026 and December 31, 2025, respectively.

The Company uses the Call Report definitions for regulatory reporting by the Bank to classify its deposits as brokered deposits.

As of September 30, 2025 and December 31, 2024, total deposits included estimated totals of $2.3 billion and $2.2 billion of uninsured deposits, which represented 24% and 24% of total deposits, respectively.

The Company has offered a sweep account, or "customer repurchase agreement," allowing qualifying businesses to earn interest on short-term excess funds, which are not suited for either a certificate of deposit or a money market account.

The balances in these accounts were $13.7 million as of September 30, 2025 compared to $33.2 million as of December 31, 2024.

The Company is winding down this product offering and anticipates further reductions in the near term.

Customer repurchase agreements are not deposits and are not insured by the FDIC, but are collateralized by U.S.

agency securities and/or U.S.

agency-backed MBS.

The Company had no outstanding balances under its federal funds lines of credit provided by correspondent banks (which are unsecured) as of September 30, 2025 and December 31, 2024.

Eagle Bancorp, Inc Third Quarter 2025 Form 10-Q

As of March 31, 2026 and December 31, 2025, total deposits included estimated totals of $2.2 billion and $2.3 billion of uninsured deposits, which represented 26% and 25% of total deposits, respectively.

The Company had no outstanding balances under its federal funds lines of credit provided by correspondent banks (which are unsecured) as of March 31, 2026 and December 31, 2025.

The Company had no outstanding balances in FHLB advances as of March 31, 2026 and December 31, 2025.

Outstanding FHLB advances are secured by collateral consisting of specifically pledged marketable investment securities, a blanket lien on qualifying loans in the Bank’s commercial mortgage, residential mortgage and home equity loan portfolios.

Eagle Bancorp, Inc First Quarter 2026 Form 10-Q

Management's Discussion and Analysis | Balance Sheet Analysis | Deposits and Other Borrowings

As of September 30, 2025, the company had no outstanding FHLB advances compared to $490 million as of December 31, 2024.

The decline in FHLB advances reflects the increase in the Company's deposits.

Any outstanding FHLB advances are secured by collateral consisting of specifically pledged marketable investment securities, a blanket lien on qualifying loans in the Bank’s commercial mortgage, residential mortgage and home equity loan portfolios.

On September 30, 2024, the Company closed a private placement of its 10.00% senior unsecured debt totaling $77.7 million maturing on September 30, 2029 (the "2029 Senior Notes" or "Original Notes").

As of September 30, 2025, the carrying value of these 2029 Senior Notes was $76.3 million which reflected $1.3 million in unamortized deferred financing costs that are being amortized over the life of the 2029 Senior Notes.

In connection with the issuance of the 2029 Senior Notes, the Company also entered into a registration rights agreement dated September 30, 2024 with the purchasers of the 2029 Senior Notes ("Registration Rights Agreement").

Pursuant to the Registration Rights Agreement, the Company filed an exchange offer registration statement with the SEC to exchange the Senior Notes for substantially identical notes registered under the Securities Act ("Exchange Notes").

The terms of the Exchange Notes are identical to the terms of the Original Notes, except that the transfer restrictions and registration rights applicable to the Original Notes do not apply to the Exchange Notes.

The Company completed the exchange offer on January 16, 2025.

On September 30, 2024, the Company closed a private placement of its 10.00% senior unsecured debt totaling $77.7 million maturing on September 30, 2029 (the "2029 Senior Notes").

As of March 31, 2026 and 2025, the carrying value of these 2029 Senior Notes were $76.5 million and $76.4 million, respectively, which reflected $1.15 million and $1.24 million, respectively, in unamortized deferred financing costs that are being amortized over the life of the 2029 Senior Notes.

Commitments and Contractual Obligations

The table below displays the loan commitments outstanding and lines and letters of credit.

(dollars in thousands) September 30, 2025

(dollars in thousands) March 31, 2026

December 31, 2025

9 unchanged sentences

In many instances, borrowers are required to meet performance milestones in order to draw on a commitment as is the case in construction loans, or to have a required level of collateral in order to draw on a commitment as is the case in asset based lending credit facilities.

As of September 30, 2025, there were no material unfunded loan commitments to borrowers whose existing loans were considered criticized and classified loans.

As of March 31, 2026, there were no material unfunded loan commitments to borrowers whose existing loans were considered criticized and classified loans.

Collateral obtained varies and may include certificates of deposit, accounts receivable, inventory, property and equipment, residential and CRE.

10 unchanged sentences

The Bank has recourse against the customer for any amount it is required to pay to a third party under a letter of credit, and holds cash and or other collateral on those standby letters of credit for which collateral is deemed necessary.

Eagle Bancorp, Inc Third Quarter 2025 Form 10-Q

Management's Discussion and Analysis | Liquidity Management

Liquidity Management

Liquidity is a measure of the Company’s and Bank’s ability to meet loan demand and to satisfy depositor withdrawal requirements in an orderly manner.

The Bank’s primary sources of liquidity consist of cash and cash balances due from correspondent banks, excess reserves at the Federal Reserve, loan repayments, federal funds sold and other short-term investments, maturities and sales of investment securities, income from operations and new core deposits into the Bank.

Approximately 55% of the Company's investment portfolio of debt securities is held as available-for-sale which allows flexibility to generate cash from sales as needed to meet ongoing cash needs.

These securities can also be utilized as pledged assets that provide secondary liquidity through the form of additional available borrowings.

These sources of liquidity are considered primary and are supplemented by the ability of the Company and Bank to borrow funds or issue brokered deposits, which are termed secondary sources of liquidity.

Investment securities that are classified as held-to-maturity can also be used as collateral to pledge against additional borrowings.

The table below summarizes the Company's secondary sources of liquidity in use and available.

As of September 30, 2025

(dollars in thousands) Secondary Sources of Liquidity in Use Secondary Sources of Remaining Liquidity Available

Unsecured brokered deposits (1)

The Bank’s primary sources of liquidity consist of cash and cash balances due from correspondent banks, excess reserves at the Federal Reserve, loan repayments and other short-term investments, maturities and sales of investment securities, income from operations and new core deposits into the Bank.

The Company believes it maintains sufficient primary and secondary sources of liquidity to fund its operations.

As of March 31, 2026, primary sources of liquidity were $2.3 billion, comprising interest-bearing deposits with other banks and other short-term investments and unencumbered securities.

Secondary sources of liquidity as of March 31, 2026 were $2.1 billion, which included the FHLB and FRB unused availability.

Approximately $400 million of additional HTM securities were unencumbered during the first quarter.

As of March 31, 2026, under the Company's liquidity formula, it had $4.34 billion of primary and secondary liquidity sources.

Management believes the amount is adequate to meet current and projected funding needs.

Eagle Bancorp, Inc First Quarter 2026 Form 10-Q

Management's Discussion and Analysis | Liquidity Management

The table below summarizes the Company's primary and secondary sources of liquidity available.

(dollars in thousands) March 31, 2026 December 31, 2025

Primary sources of liquidity available:

Cash and cash equivalents (1)

$ 579,359 $ 695,693

Unencumbered securities

1,673,598 1,289,474

Total primary sources of liquidity available

2,252,957 1,985,167

Secondary sources of liquidity available:

FHLB secured borrowings (2)

Discount window secured borrowings — 1,717,794

Federal funds lines — 145,000

Customer repurchase agreements 13,725 —

Unpledged assets:

Interest-bearing deposits with banks — 9,223

Investment securities — 262,908

Total $ 952,252 $ 4,764,750

(1) The available liquidity from the unsecured brokered deposits represents unsecured funds under one-way CDARS, ICS, and other brokered deposits that would require then current market rates and be dependent on the availability of funds in those networks.

(2) Unpledged assets are comprised of unencumbered assets that could be liquidated or used as collateral to obtain additional liquidity through debt financing.

The funding mix has continued to change throughout the nine months ended September 30, 2025.

Deposits were $9.46 billion and $9.13 billion as of September 30, 2025 and December 31, 2024, respectively.

The increase of $332.5 million and funding mix change was primarily attributable to a $475.6 million increase in time deposits and $103.4 million increase in savings and money market accounts, partially offset by a $279.3 million reduction in interest-bearing transaction accounts.

The growth was due to increase in time deposits through the digital acquisition channel during the nine months ended September 30, 2025, as discussed in "Deposits and Other Borrowings" above.

Short-term borrowings were zero and $490.0 million as of September 30, 2025 and December 31, 2024, respectively.

Additionally, the Bank can purchase up to $145.0 million in federal funds on an unsecured basis from its correspondents, against which there were no amounts outstanding as of September 30, 2025 and can borrow unsecured funds under one-way CDARS and ICS brokered deposits in the amount of $1.1 billion, against which there was $107 million outstanding as of September 30, 2025.

As of September 30, 2025, the Bank also has custodial agreements with various broker-dealers through IntraFi's IND program which provided $643.0 million of brokered deposits.

As of September 30, 2025, the Bank was also eligible to draw advances from the FHLB up to $1.4 billion based on assets pledged as collateral to the FHLB, against which the Bank borrowed none as of September 30, 2025.

The Bank may enter into repurchase agreements as well as obtain additional borrowing capabilities from certain broker-dealers provided adequate collateral exists to secure these lending relationships.

899,817 1,349,351

FRB secured borrowings

1,184,055 1,373,872

Total secondary sources of liquidity available

2,083,872 2,723,223

Total liquidity available

$ 4,336,829 $ 4,708,390

(1) Consists of cash and due from banks, interest-bearing deposits with banks, and other short-term investments.

(2) Reduced by $23.0 million as of March 31, 2026 and $12.4 million as of December 31, 2025, respectively, due to the issuance of letters of credit.

As of March 31, 2026, the Bank was eligible to draw advances from the FHLB up to $0.9 billion based on assets pledged as collateral to the FHLB, against which the Bank borrowed none as of March 31, 2026.

The Bank may enter into repurchase agreements with broker-dealers provided adequate collateral exists.

The Bank also has a back-up borrowing facility through the Discount Window at the Federal Reserve Bank of Richmond ("Federal Reserve Bank").

This facility, which can be used to borrow up to $1.7 billion, is collateralized with specific loan assets and

Eagle Bancorp, Inc Third Quarter 2025 Form 10-Q

Management's Discussion and Analysis | Liquidity Management

investment securities identified to the Federal Reserve Bank.

This facility, which can be used to borrow up to $1.2 billion, is collateralized with specific loan assets pledged to the Federal Reserve Bank.

It is anticipated that, except for periodic testing, this facility would be utilized for contingency funding only.

There can be no assurance, however, that these alternative sources of liquidity will continue to be available or will be sufficient to meet our ongoing liquidity needs.

The Bank's aggregate borrowing capacity as of September 30, 2025 was $3.4 billion, which consists of $1.4 billion borrowing capacity from FHLB, $1.7 billion borrowing capacity from the Federal Reserve's Discount Window as discussed above, and $262.9 million of unencumbered HTM securities available to pledge.

The Bank's aggregate borrowing capacity as of March 31, 2026 was $3.8 billion, which consists of $0.9 billion borrowing capacity from FHLB, $1.2 billion borrowing capacity from the Federal Reserve's Discount Window as discussed above, and $1.7 billion of unencumbered securities available to pledge to the FHLB or Discount Window.

The loss of deposits, including through disintermediation, is one of the primary risks to liquidity.

Disintermediation occurs most commonly when rates rise and depositors withdraw deposits seeking higher rates in alternative savings and investment sources than the Bank may offer.

The Bank makes deposit interest rate comparisons weekly and makes adjustments from time to time to ensure its interest rate offerings are competitive.

There is, however, a risk that the cost of funds will increase significantly as the Bank competes for deposits or that some deposits would be lost if rates were to increase and the Bank elected not to remain competitive with its deposit rates.

Under those conditions, the Bank believes that it is well positioned to use other sources of funds such as FHLB borrowings, brokered deposits, repurchase agreements and correspondent bank lines of credit to offset a decline in deposits in the short run, but the use of such sources may negatively impact net interest margin and earnings.

The Bank regularly compares deposit interest rates and makes adjustments from time to time to ensure its interest rate offerings are competitive.

There is a risk that the cost of funds will increase significantly as the Bank competes for deposits or that some deposits would be lost if rates were to increase and the Bank elected not to remain competitive with its deposit rates.

Under those conditions, the Bank believes that it is well positioned to use other sources of funds such as FHLB borrowings, brokered deposits, repurchase agreements and federal funds lines of credit to offset a decline in deposits in the short run, but the use of such sources may negatively impact net interest margin and earnings.

The continuing elevated cost of funding has negatively impacted our net interest margin.

There can be no assurance that the mix of sources of funds available to us at any particular time in the future will be adequate to meet our future liquidity needs.

However, the market for customer and brokered deposits is highly competitive and the risk of disintermediation is high, particularly in a high interest rate environment.

The market for customer and brokered deposits is highly competitive and the risk of disintermediation is high, particularly in a high interest rate environment.

Most of our noninterest-bearing deposits are operating deposits or compensating balances that are held in connection with lending relationships.

The potential outflow of such deposits is a risk unless competitive rates of interest are paid, which could significantly and negatively impact the Bank’s interest expense and net interest margin.

The potential outflow of such deposits is a risk and may require the Bank to pay competitive rates of interest, which could significantly and negatively impact the Bank’s interest expense and net interest margin.

Over the long-term, an adjustment in assets and change in business emphasis could compensate for a potential loss of deposits.

1 unchanged sentence

The Asset Liability Committee ("ALCO") has adopted policy guidelines, which emphasize the importance of core deposits, adequate asset liquidity and a contingency funding plan.

The Company believes it maintains sufficient primary and secondary sources of liquidity to fund its operations.

As of September 30, 2025, primary sources of liquidity were $2.1 billion, comprising interest-bearing deposits with other banks and other short-term investments and AFS securities.

Secondary sources of liquidity as of September 30, 2025 were $4.8 billion, which included the FHLB unused availability, other insured brokered deposit sweep programs, unpledged HTM securities, Fed funds lines, and the FRB Discount Window.

As of September 30, 2025, under the Bank’s liquidity formula, it had $6.9 billion of primary and secondary liquidity sources.

Management believes the amount is adequate to meet current and projected funding needs.

Eagle Bancorp, Inc First Quarter 2026 Form 10-Q

Management's Discussion and Analysis | Capital Resources and Adequacy

Capital Resources and Adequacy

9 unchanged sentences

Although growth in that segment declined over the past 36 months and did not exceed the 50% threshold laid out in the regulatory guidance, we expect the heightened supervisory expectations to continue to apply to us given the federal banking regulators’ general focus on commercial real estate exposures at banks.

Eagle Bancorp, Inc Third Quarter 2025 Form 10-Q

Management's Discussion and Analysis | Capital Resources and Adequacy

As of September 30, 2025, the Company continued to exceed the construction, land development, and other land acquisitions regulatory concentration threshold, and we continue to monitor our concentration in commercial real estate lending and remain in compliance with the guidance issued by the federal banking regulators.

Construction, land and land development loans represented 111.7% of total capital as of September 30, 2025.

Construction, land and land development loans represented 75.7% of total capital as of March 31, 2026, which no longer exceeded the regulatory concentration threshold, compared to 92.1% as of December 31, 2025.

As of March 31, 2026 the Company no longer exceeded the total commercial real estate loans threshold as it represented 295.1% of total capital compared to 336.6% as of December 31, 2025.

Management has extensive experience in commercial real estate lending, and has implemented and continues to maintain heightened risk management procedures and strong underwriting criteria with respect to its commercial real estate portfolio.

6 unchanged sentences

Failure to meet various capital requirements can initiate regulatory action that could have a direct material effect on the financial statements.

As of September 30, 2025, the capital position of the Company and its wholly owned subsidiary, the Bank, continue to exceed regulatory requirements and well-capitalized guidelines.

As of March 31, 2026, the capital position of the Company and its wholly owned subsidiary, the Bank, continue to exceed regulatory requirements and well-capitalized guidelines.

The primary indicators relied on by bank regulators in measuring the capital position are four ratios as follows:

9 unchanged sentences

If a bank is undercapitalized, capital distributions and growth and expansion are limited, and plans for capital restoration are required.

If a bank is not well-capitalized, interest rate restrictions apply.

If a bank is not well-capitalized, interest rate restrictions paid on deposits may apply.

Eagle Bancorp, Inc First Quarter 2026 Form 10-Q

Management's Discussion and Analysis | Capital Resources and Adequacy

The FRB and the FDIC have adopted the Basel III Rules implementing the Basel Committee on Banking Supervision's capital guidelines for U.S.

4 unchanged sentences

The Basel III Rules also increased risk weights for certain assets and off-balance-sheet exposures.

As of September 30, 2025, the Company and the Bank exceeded all these thresholds.

The Company announced a regular quarterly cash dividend on October 22, 2025 of $0.010 per share to shareholders of record on November 3, 2025, to be paid on November 14, 2025.

As of March 31, 2026, the Company and the Bank exceeded all these thresholds.

The ability of the Company to continue to grow is dependent on its earnings and those of the Bank, the ability to obtain additional funds for contribution to the Bank’s capital, through additional borrowings, through the sale of additional common stock or preferred stock or through the issuance of additional qualifying capital instruments, such as subordinated debt.

1 unchanged sentence

The Company’s capital ratios were all well in excess of requirements established by the Federal Reserve Board and the Bank’s capital ratios were in excess of those required to be classified as a "well capitalized" institution under the PCA provisions of the Federal Deposit Insurance Act.

Eagle Bancorp, Inc Third Quarter 2025 Form 10-Q

Management's Discussion and Analysis | Capital Resources and Adequacy

The table below presents the actual capital amounts and ratios for the Company and Bank.

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Amount Ratio Actual

As of September 30, 2025

As of March 31, 2026

CET1 capital (to risk weighted assets) $ 1,179,308 13.80 % $ 1,200,755 14.13 % 7.00 % 6.50 %

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Federal bank and holding company regulations, as well as Maryland law, impose certain restrictions on capital distributions, including dividend payments and share repurchases by the Bank, as well as restricting extensions of credit and transfers of assets between the Bank and the Company.

The Company announced a regular quarterly cash dividend on April 22, 2026 of $0.01 per share to shareholders of record on May 4, 2026, paid on May 15, 2026.

The quarterly cash dividend amount was reduced to $0.01 in the fourth quarter of 2025 to preserve capital as the Company addresses asset quality matters.

Asset/Liability Management and Quantitative and Qualitative Disclosures about Market Risk

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The Company, through its ALCO and ongoing financial management practices, monitors the interest rate environment in which it operates and adjusts the rates and maturities of its assets and liabilities to remain competitive and to achieve its overall financial objectives subject to established risk limits.

The loan portfolio decreased 7.9% during the first nine months of 2025.

The re-pricing duration on the loan portfolio was 10 months as of September 30, 2025 and 11 months as of December 31, 2024, with fixed-rate loans amounting to 34.0% and 38.1% of total loans as of September 30, 2025 and December 31, 2024, respectively.

Variable and adjustable rate loans comprised 66.0% and 61.9% of total loans as of September 30, 2025 and December 31, 2024, respectively.

Eagle Bancorp, Inc First Quarter 2026 Form 10-Q

Management's Discussion and Analysis | Asset/Liability Management and Quantitative and Qualitative Disclosures about Market Risk

The loan portfolio decreased 4.7% during the first quarter of 2026.

The re-pricing duration on the loan portfolio was 9 months as of March 31, 2026 and 9 months as of December 31, 2025, with fixed-rate loans amounting to 31.4% and 33.4% of total loans as of March 31, 2026 and December 31, 2025, respectively.

Variable and adjustable rate loans comprised 68.6% and 66.6% of total loans as of March 31, 2026 and December 31, 2025, respectively.

Variable rate loans are generally indexed to the Secured Overnight Funding Rate ("SOFR") or the Wall Street Journal prime interest rate, while adjustable rate loans are indexed primarily to the five year U.S.

Treasury interest rate.

Eagle Bancorp, Inc Third Quarter 2025 Form 10-Q

Management's Discussion and Analysis | Asset/Liability Management and Quantitative and Qualitative Disclosures about Market Risk

Currently, the cash flows from the investment portfolio have not been reinvested in the investment portfolio.

As of September 30, 2025, the amortized cost basis, net of allowance, of the investment portfolio decreased by $313.5 million, or 13.4%, as compared to the balance as of December 31, 2024.

The table below presents the percentage mix of securities in the investment portfolio.

September 30, 2025

March 31, 2026

December 31, 2025

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Duration of the investment portfolio (in years) 3.7 3.8

As of September 30, 2025, $69.2 million of corporate bonds were subordinated debt from other financial institutions.

Corporate bonds generally, and subordinated debt in particular, pose credit risk such that if any of these issuers were to enter bankruptcy or insolvency proceedings, we could experience losses that may be material to operating results and our financial condition.

We may also experience increases in provisions for credit losses, adversely affecting our earnings, if the creditworthiness of the issuers declines, whether due to idiosyncratic factors, economic conditions generally or other unforeseen factors or events.

The Company has credit Risk Participation Agreements ("RPAs") with institutional counterparties, under which the Company assumes its pro-rata share of the credit exposure associated with a borrower’s performance related to interest rate derivative contracts.

The fair value of RPAs is calculated by determining the total expected asset or liability exposure of the derivatives to the borrowers and applying the borrowers’ credit spread to that exposure.

Total expected exposure incorporates both the current and potential future exposure of the derivatives, derived from using observable inputs, such as yield curves and volatilities.

These derivatives are not designated as hedges, are not speculative and had an asset position with a notional value of $21.6 million as of September 30, 2025.

The changes in fair value for these contracts are recognized directly in earnings.

The duration of the deposit portfolio increased to 25 months as of September 30, 2025 from 11 months as of December 31, 2024.

This increase was attributable to a shift in deposit mix, an increase in time deposits and modeling assumption updates.

The Company experienced a total deposit increase of $332.5 million for the nine months ended September 30, 2025 as compared to a total loan decrease of $630.2 million for the same period.

In the current and expected future interest rate environment, the Company has been maintaining its investment portfolio to manage the balance between yield and risk in its portfolio of MBS.

Further, the Company has been principally collecting cash flows from the investment portfolio to reduce brokered deposits.

As of March 31, 2026, the amortized cost less allowance of the investment portfolio decreased by $59.9 million, or 3.1%, as compared to the balance as of December 31, 2025.

The duration of the deposit portfolio decreased to 13 months as of March 31, 2026 from 22 months as of December 31, 2025.

This decrease was attributable to a shift in deposit mix and modeling assumption updates.

The Company experienced a total deposit decrease of $542.1 million for the quarter ended March 31, 2026 as compared to a total loan decrease of $341.9 million for the same period.

Refer to the "Deposits and Other Borrowings" section above for further discussion of deposits and borrowings.

The net unrealized loss before income tax on the AFS securities portfolio was $88.5 million and $141.5 million as of September 30, 2025 and December 31, 2024, respectively.

As of September 30, 2025, the net unrealized loss position represented 7.60% of the investment portfolio's book value.

The net unrealized loss before income tax on the AFS securities portfolio was $78.5 million and $78.4 million as of March 31, 2026 and December 31, 2025, respectively.

As of March 31, 2026, the net unrealized loss position represented 7.8% of the investment portfolio's book value.

Management relies on the use of models in order to measure the expected future impact on interest income of various interest rate environments, as described below.

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There can be no assurance that the Company will be able to successfully achieve its optimal asset liability mix, given competitive pressures, customer preferences and the inability to forecast future interest rates and movements with complete accuracy.

Our rate risk modeling showed net interest margin expansion in an increased interest rate environment while showing net interest margin compression in a declining interest rate environment.

The Company employs a net interest income simulation model on a monthly basis to monitor its interest rate sensitivity and risk and to model its balance sheet cash flows and the effects in different interest rate scenarios.

The model utilizes current balance sheet data and attributes and is adjusted for assumptions as to investment maturities including prepayments, loan prepayments, interest rates, and deposit decay rates.

The data is then subjected to a "shock test" which assumes a simultaneous change in interest rates up and down 100, 200, 300 and 400 basis points, along the entire yield curve, but not below zero.

The results are analyzed as to the impact on net interest income over the next twelve and twenty-four month periods and the economic value of equity.

Further discussion of the limitations of this analysis are listed below and included in Risk Factors in the Company's 2025 10-K, and in other periodic and current reports filed by the Company with the SEC.

Our rate risk modeling showed minimal net interest margin expansion in an increased interest rate environment while showing moderate net interest margin compression in a declining interest rate environment.

The model's prediction in a rising rate environment is the result of increases in both interest income on variable and adjustable rate loans and interest expense on its deposit liabilities, based on our funding needs, market conditions and certain contractual obligations but with no changes in the mix of assets or liabilities or the spreads we are able to earn.

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The model also assumes a stable interest rate environment after the programmed changes in the yields, which assumes repricing of assets and liabilities as scheduled in a stable environment, which may be quite different than real world conditions.

Eagle Bancorp, Inc Third Quarter 2025 Form 10-Q

Eagle Bancorp, Inc First Quarter 2026 Form 10-Q

Management's Discussion and Analysis | Asset/Liability Management and Quantitative and Qualitative Disclosures about Market Risk

A portion of the of the Company's variable and adjustable rate loans may contain interest rate floors and may provide asset yield protection in a low-interest rate environment;

however, they are also expected to delay the impact of increases to market rates on interest income until such floors have been exceeded.

In the first nine months ended September 30, 2025, interest rate floors have not been relevant in the current interest rate environment since most variable rate loans are well above their floor rate.

The weighted average rate of the Company's variable rate loans had a decrease of approximately 18 basis poin ts from December 31, 2024 to September 30, 2025.

As of September 30, 2025, the Company had a portfolio of $2.6 billion of variable and adjustable rate loans that were subject to interest rate floors with a weighted average rate of 7.03%, which was a 21 basis points decrease from December 31, 2024.

As of September 30, 2025, $134.5 million or 1.84% of loans held by the Company were earning interest at their floor rate, as compared to $123.6 million or 1.56% as of December 31, 2024.

The Company employs an earnings simulation model (immediate parallel shifts along the yield curve) on a quarterly basis to monitor its interest rate sensitivity and risk and to model its balance sheet cash flows and the related statement of operations effects in different interest rate scenarios.

Further discussion of the limitations of this analysis are listed below and in the risk factors and other cautionary language included in the Company's 2024 Form 10-K, and in other periodic and current reports filed by the Company with the SEC, including the Company's Quarterly Report on Form 10-Q for the quarter ended March 31, 2025.

The data is then subjected to a "shock test" which assumes a simultaneous change in interest rates up and down 100, 200, 300 and 400 basis points, along the entire yield curve, but not below zero.

The results are analyzed as to the impact on net interest income over the next twelve and twenty-four month periods and the economic value of equity.

For the analysis presented below, as of September 30, 2025, the change in interest rates on interest-bearing deposits could be less than the change in market interest rates with a floor of 0 basis points.

For the analysis presented below, as of March 31, 2026, the change in interest rates on interest-bearing deposits was less than the change in market interest rates with a floor of 0 basis points.

The Bank also has deposits with contractual rate terms that mean these deposits will change 100 basis points for every 100 basis points change in market rates.

Thus, the overall measure of the correlation between all deposit costs and market rate changes is less than 100%.

The Company previously utilized the assumption for its analysis as of December 31, 2024 that all deposit rates changed 100 basis point for a 100 basis point change in market rates.

Thus, the overall change in rates on deposits versus change in market rates can be less than 100%.

Because competitive market behavior does not necessarily track the trend of interest rates but at times moves ahead of financial market influences, the change in the cost of liabilities may be different than anticipated by the interest rate risk model.

If this were to occur, the effects of a rising or declining interest rate environment may not be in accordance with management’s expectations.

As quantified in the table below, the Company’s analysis as of September 30, 2025 shows the effect on net interest income over the next 12 months, as well as the effect on the economic value of equity when interest rates are shocked down and up 100, 200, 300 and 400 basis points.

As of September 30, 2025, the repricing duration of (a) the investment portfolio was 4.5 years, (b) the loan portfolio 0.8 years, (c) the interest-bearing deposit portfolio was 1.5 years, and (d) the borrowed funds portfolio was 3.2 years.

As quantified in the table below, the Company’s analysis as of March 31, 2026 shows the effect on net interest income over the next 12 months, as well as the effect on the economic value of equity when interest rates are shocked up and down 100, 200, 300 and 400 basis points.

As of March 31, 2026, the repricing duration of (a) the investment portfolio was 3.7 years, (b) the loan portfolio 0.8 years, (c) the interest-bearing deposit portfolio was 0.8 years, and (d) the borrowed funds portfolio was 2.9 years.

The table below displays the result of the simulation analysis on the asset and liability balances.

As of September 30, 2025

As of March 31, 2026

Net Interest Income

Economic Value of Equity

Change in interest

rates (basis points) Percentage change in 12-month net interest income Percentage change in economic value of equity

rates (basis points) Percentage change in 12-month

Policy limits

Percentage change in 12-month

Policy limits

+400 13.4% (25)% (9.2)% (32)%

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(300) (8.8)% (20)% 7.4% (25)%

Eagle Bancorp, Inc Third Quarter 2025 Form 10-Q

Management's Discussion and Analysis | Asset/Liability Management and Quantitative and Qualitative Disclosures about Market Risk

The results of the simulation are within the relevant policy limits adopted by the Company for percentage change in net interest income.

For net interest income, the Company has adopted a policy limit of -8% for a 100 basis point change, -15% for a 200 basis point change, -20% for a 300 basis point change and -25% for a 400 basis point change.

For the economic value of equity, the Company has adopted a policy limit of -10% for a 100 basis point change, -20% for a 200 basis point change, -25% for a 300 basis point change and -32% for a 400 basis point change.

The decrease in 12-month net interest income of 6.8% given a 100 basis point decrease in market interest rates as of September 30, 2025 compared to a decrease of 1.4% for the same period in 2024.

(400) (11.8)% (25)% 6.3% (32)%

The decrease in 12-month net interest income of 2.8% given a 100 basis point decrease in market interest rates as of March 31, 2026 compared to a decrease of 0.7% for the same period in 2025.

In contrast to 2025, primarily due to modeling enhancements and balance sheet composition changes, our analysis shows that we will experience a decrease in our economic value of equity and an increase in net interest income with an increase in interest rates.

The changes in net interest income and the economic value of equity in higher, and lower, interest rate shock scenarios as of March 31, 2026 are not believed to be excessive and are within policy limits.

As part of the Company’s ongoing enhancement of the simulation analysis, the Company has been making updates to its model to incorporate, among other things, improvements to certain assumptions, as well as assumptions related to deposits.

The difference in the results of the simulation analysis between the third quarter of 2025 and the second quarter of 2025 is attributable to these model updates.

The difference in the results of the simulation analysis between the first quarter of 2026 and the fourth quarter of 2025 is attributable to these model updates.

Certain shortcomings are inherent in the method of analysis presented in the foregoing table.

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While an instantaneous parallel shift in interest rates was used in this analysis to provide an estimate of exposure under these scenarios, we believe that a non-immediate parallel shifts in interest rates would have a more modest impact.

SOFR, Fed Funds), hedging activities we might take and changing product spreads that could mitigate or exacerbate any potential beneficial or adverse impact of changes in interest rates.

Further, the earnings simulation model does not take into account factors such as future balance sheet growth, changes in product mix, changes in yield curve relationships, the various rate indexes do not move in parallel (e.g., SOFR, Fed Funds), hedging activities we might take and changing product spreads that could mitigate or exacerbate any potential beneficial or adverse impact of changes in interest rates.

Eagle Bancorp, Inc First Quarter 2026 Form 10-Q

Management's Discussion and Analysis | Asset/Liability Management and Quantitative and Qualitative Disclosures about Market Risk

Another key factor to consider is the behavior of our deposit portfolio.

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ALCO reviews each of the above interest rate sensitivity analyses along with several different interest rate scenarios as part of its responsibility to provide a satisfactory, consistent level of profitability within the framework of established liquidity, loan, investment, borrowing and capital policies.

Interest Rate and Balance Sheet Risk Management

Management actively monitors the Company’s exposure to interest rate risk arising from the composition and duration profile of its balance sheet.

Our objective is to maintain a stable and predictable earnings and capital profile by mitigating the impact of interest‑rate volatility on both net interest income and the economic value of equity.

Consistent with this objective, the Company employs a macro balance sheet hedging program designed to manage interest rate risk at the portfolio level rather than through instrument‑specific hedges.

In 2025, the Company reinitiated the use of derivative instruments to hedge macro interest rate risk.

This decision reflects management’s reassessment of the Company’s asset‑liability profile.

Management determined that reestablishing a macro hedging program was prudent to mitigate potential variability in earnings and capital arising from interest‑rate movements.

Hedging Strategy and Risk Management Framework

Our macro hedging approach incorporates derivatives — primarily interest rate swaps — to align the interest‑rate sensitivity of assets and liabilities with the Company’s risk appetite.

Macro hedging enables management to address exposures that evolve dynamically as new assets and liabilities are originated and existing positions mature, consistent with regulatory expectations that hedging strategies reflect material trends and uncertainties affecting future performance.

GAAP, the Company applies the hedge accounting framework under ASC 815, as amended by ASU 2017‑12, which expands the range of permissible hedging strategies and enhances the alignment between accounting outcomes and risk management activities.

The Company designates qualifying hedges where appropriate and evaluates hedge effectiveness in accordance with ASC 815’s criteria.

Refer to "Note 6 – Derivatives and Hedging Activities" to the Consolidated Financial Statements for further discussion on the Company's derivative instruments and hedging activities.

Eagle Bancorp, Inc First Quarter 2026 Form 10-Q

Management's Discussion and Analysis | Use of Non-GAAP Financial Measures

Use of Non-GAAP Financial Measures

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Management compensates for these limitations by providing detailed reconciliations between GAAP information and the non-GAAP financial measures.

Eagle Bancorp, Inc Third Quarter 2025 Form 10-Q

Management's Discussion and Analysis | Use of Non-GAAP Financial Measures

The table below reconciles the GAAP financial measures to the associated non-GAAP financial measures.

For the Three Months Ended September 30, For the Nine Months Ended September 30,

For the Three Months Ended March 31,

(dollars in thousands except per share data) 2026 2025

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Noninterest income 12,708 8,207

Total net revenue

76,402 73,856

Noninterest expense (48,740) (45,451)

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Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 2. Management’s Discussion and Analysis