EAGLE BANCORP INC 10-Q

ITEM 1. FINANCIAL STATEMENTS EAGLE BANCORP, INC. Consolidated Balance Sheets (dollars in thousands, except share and per share data) As of March 31, 2026 (Unaudited) December 31, 2025 Assets Cash and due from banks $ 12,626 $ 11,692 Interest-bearing deposits with banks and other short-term investments 566,733 684,001 Investment securities available-for-sale (amortized cost of $ 1,008,764 and $ 1,055,146 , respectively, and allowance for credit losses of $ 0 and $ 0 , respectively) 930,314 976,770 Investment securities held-to-maturity, net of allowance for credit losses of $ 907 and $ 1,030 , respectively (fair value of $ 757,238 and $ 774,947 , respectively) 841,273 854,780 Federal Reserve and Federal Home Loan Bank stock 27,685 28,327 Loans held for sale, at lower of cost or fair value 55,702 90,650 Loans held for investment, at amortized cost 6,938,560 7,280,459 Less: Allowance for credit losses ( 147,163 ) ( 159,604 ) Loans held for investment, net of allowance 6,791,397 7,120,855 Premises and equipment, net 12,864 12,800 Right-of-use assets - operating leases 27,569 28,451 Deferred income taxes 132,729 132,330 Bank-owned life insurance 339,844 335,177 Other real estate owned 2,059 2,059 Other assets 213,486 219,311 Total Assets $ 9,954,281 $ 10,497,203 Liabilities and Shareholders’ Equity Liabilities Deposits: Noninterest-bearing demand $ 1,488,668 $ 1,433,952 Interest-bearing transaction 978,330 1,038,154 Savings and money market 3,286,125 3,624,813 Time deposits 2,838,376 3,036,687 Total deposits 8,591,499 9,133,606 Long-term borrowings 76,511 76,428 Operating lease liabilities 34,532 35,256 Reserve for unfunded commitments 3,311 5,090 Other liabilities 103,151 115,540 Total Liabilities 8,809,004 9,365,920 Shareholders’ Equity Common stock, par value 0.01 per share; shares authorized 100,000,000 , shares issued and outstanding 30,494,659 and 30,359,632 , respectively 302 300 Additional paid-in capital 383,050 382,499 Retained earnings 851,998 837,643 Accumulated other comprehensive income (loss) ( 90,073 ) ( 89,159 ) Total Shareholders’ Equity 1,145,277 1,131,283 Total Liabilities and Shareholders’ Equity $ 9,954,281 $ 10,497,203 See Notes to Consolidated Financial Statements. Eagle Bancorp, Inc First Quarter 2026 Form 10-Q 3 Table of Contents Financial Statements and Supplementary Data EAGLE BANCORP, INC. Consolidated Statements of Operations (Unaudited) (dollars in thousands, except per share data) For the Three Months Ended March 31, 2026 2025 Interest Income Interest and fees on loans $ 109,566 $ 126,136 Interest and dividends on investment securities 9,646 11,912 Interest on balances with other banks and short-term investments 12,689 15,830 Total interest income 131,901 153,878 Interest Expense Interest on deposits 66,181 77,211 Interest on customer repurchase agreements — 260 Interest on other short-term borrowings — 8,733 Interest on long-term borrowings 2,026 2,025 Total interest expense 68,207 88,229 Net Interest Income 63,694 65,649 Provision for (Reversal of) Credit Losses 13,382 26,255 Provision for (Reversal of) Credit Losses for Unfunded Commitments ( 1,779 ) ( 297 ) Net Interest Income (Loss) After Provision for (Reversal of) Credit Losses 52,091 39,691 Noninterest Income Service charges on deposits 1,732 1,743 Gain (loss) on sale of loans 3,550 — Net gain (loss) on sale of investment securities 3 4 Increase in the cash surrender value of bank-owned life insurance 5,679 4,282 Other income 1,744 2,178 Total noninterest income 12,708 8,207 Noninterest Expense Salaries and employee benefits 23,247 21,968 Premises and equipment expenses 2,533 3,203 Marketing and advertising 868 1,371 Data processing 4,204 3,978 Legal, accounting and professional fees 4,312 3,122 FDIC insurance 7,009 8,962 Other expenses 6,567 2,847 Total noninterest expense 48,740 45,451 Income (Loss) Before Income Tax Expense 16,059 2,447 Income Tax Expense (Benefit) 1,341 772 Net Income (Loss) $ 14,718 $ 1,675 Earnings (Loss) Per Common Share Basic $ 0.48 $ 0.06 Diluted $ 0.48 $ 0.06 See Notes to Consolidated Financial Statements. Eagle Bancorp, Inc First Quarter 2026 Form 10-Q 4 Table of Contents Financial Statements and Supplementary Data EAGLE BANCORP, INC. Consolidated Statements of Comprehensive Income (Loss) (Unaudited) (dollars in thousands) For the Three Months Ended March 31, 2026 2025 Net Income (Loss) $ 14,718 $ 1,675 Other comprehensive income (loss), net of tax: Unrealized gain (loss) on securities available-for-sale ( 79 ) 19,351 Amortization adjustment for (gain) loss on fair value hedging relationships 7 — Reclassification adjustment for net (gain) loss included in net income (loss) ( 3 ) ( 3 ) Total unrealized gain (loss) on investment securities available-for-sale ( 75 ) 19,348 Amortization of unrealized loss on securities transferred to held-to-maturity 1,195 1,204 Unrealized gain (loss) on derivatives ( 2,294 ) ( 18 ) Reclassification adjustment for (gain) loss on cash flow hedging relationships 260 — Total unrealized gain (loss) on derivatives ( 2,034 ) ( 18 ) Other comprehensive income (loss) ( 914 ) 20,534 Comprehensive Income (Loss) $ 13,804 $ 22,209 See Notes to Consolidated Financial Statements. Eagle Bancorp, Inc First Quarter 2026 Form 10-Q 5 Table of Contents Financial Statements and Supplementary Data EAGLE BANCORP, INC. Consolidated Statements of Changes in Shareholders’ Equity (Unaudited) Three Months Ended March 31, 2026 and 2025 (dollars in thousands, except share data) Common Additional Paid-in Capital Retained Earnings Accumulated Other Comprehensive Income (Loss) Total Shareholders’ Equity Shares Amount Balance as of January 1, 2026 30,359,632 $ 300 $ 382,499 $ 837,643 $ ( 89,159 ) $ 1,131,283 Net Income (Loss) — — — 14,718 — 14,718 Other comprehensive income, net of tax — — — — ( 914 ) ( 914 ) Stock-based compensation expense — — 1,511 — — 1,511 Issuance of common stock under share-based compensation arrangements 131,212 2 ( 1,037 ) ( 60 ) — ( 1,095 ) Issuance of common stock related to employee stock purchase plan 3,815 — 77 — — 77 Cash dividends declared ($ 0.01 per share) — — — ( 303 ) — ( 303 ) Balance as of March 31, 2026 30,494,659 $ 302 $ 383,050 $ 851,998 $ ( 90,073 ) $ 1,145,277 Balance as of January 1, 2025 30,202,003 $ 298 $ 384,932 $ 982,304 $ ( 141,473 ) $ 1,226,061 Net Income (Loss) — — — 1,675 — 1,675 Other comprehensive income, net of tax — — — — 20,534 20,534 Stock-based compensation expense — — 1,524 — — 1,524 Issuance of common stock under share-based compensation arrangements 163,236 2 ( 2 ) — — — Issuance of common stock related to employee stock purchase plan 3,604 — 81 — — 81 Cash dividends declared ($ 0.165 per share) — — — ( 4,984 ) — ( 4,984 ) Balance as of March 31, 2025 30,368,843 $ 300 $ 386,535 $ 978,995 $ ( 120,939 ) $ 1,244,891 See Notes to Consolidated Financial Statements. Eagle Bancorp, Inc First Quarter 2026 Form 10-Q 6 Table of Contents Financial Statements and Supplementary Data EAGLE BANCORP, INC. Consolidated Statements of Cash Flows (Unaudited) (dollars in thousands) For the Three Months Ended March 31, 2026 2025 Cash Flows From Operating Activities: Net Income (loss) $ 14,718 $ 1,675 Adjustments to reconcile net income to net cash provided by operating activities: Provision for credit losses 13,382 26,255 (Reversal of) provision for unfunded commitments ( 1,779 ) ( 297 ) Depreciation and amortization 606 826 Securities premium amortization (discount accretion), net 1,106 1,155 Net gain on sale of other real estate owned — ( 487 ) Net increase in cash surrender value of bank owned life insurance ( 5,679 ) ( 4,282 ) Net (gain) loss on sale of investment securities ( 3 ) ( 4 ) Stock-based compensation expense 1,511 1,524 Decrease (increase) in other assets 6,032 7,262 Increase (decrease) in other liabilities ( 15,022 ) 9,558 Net cash provided by operating activities 14,872 43,185 Cash Flows From Investing Activities: Proceeds from paydowns of available-for-sale securities 27,841 28,273 Proceeds from sale/call and maturities of available-for-sale securities 18,003 50,000 Proceeds from paydowns of held-to-maturity securities 14,565 15,148 Proceeds from call/maturities of held-to-maturity securities 54 52 Proceeds from (purchases of) Federal Reserve stock 208 ( 75 ) Proceeds from (purchases of) Federal Home Loan Bank stock 433 372 Net change in loans 203,636 ( 34,899 ) Proceeds from sale of loans 147,264 — Net (purchase) redemption of bank owned life insurance 805 ( 200,000 ) Proceeds from sale of other real estate owned — 772 Purchase of premises and equipment ( 587 ) ( 138 ) Net cash (used in) provided by investing activities 412,222 ( 140,495 ) Cash Flows From Financing Activities: Increase (decrease) in deposits ( 542,107 ) 146,190 Increase (decrease) in customer repurchase agreements — ( 800 ) Net settlement of withholding taxes on the vesting of stock awards ( 1,095 ) — Proceeds from employee stock purchase plan 77 81 Cash dividends paid ( 303 ) ( 4,984 ) Net cash provided by (used in) financing activities ( 543,428 ) 140,487 Net Increase (Decrease) in Cash and Cash Equivalents ( 116,334 ) 43,177 Cash and Cash Equivalents at Beginning of Period 695,693 633,480 Cash and Cash Equivalents at End of Period $ 579,359 $ 676,657 Supplemental Cash Flows Information: Interest paid $ 72,220 $ 88,838 Supplemental Non-Cash Disclosures: Initial recognition of operating lease right-of-use assets $ 165 $ 15,838 Transfer of loans held for investment to loans held for sale 111,800 15,251 See Notes to Consolidated Financial Statements. Eagle Bancorp, Inc First Quarter 2026 Form 10-Q 7 Table of Contents Notes to Consolidated Financial Statements | Note 1 – Summary of Significant Accounting Policies EAGLE BANCORP, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) Note 1 – Summary of Significant Accounting Policies Nature of Operations Eagle Bancorp, Inc. (the "Parent") and its subsidiaries (together with the Parent, the "Company"), through EagleBank (the "Bank"), conduct a full service community banking business, primarily in Northern Virginia, Suburban Maryland and Washington, D.C. The primary financial services offered by the Bank include real estate, commercial and consumer lending, as well as traditional deposit services. The Bank is also active in the origination of small business loans. The guaranteed portion of small business loans, guaranteed by the Small Business Administration ("SBA"), is typically sold to third party investors in a transaction apart from the loan’s origination. The Bank offers its products and services through twelve banking offices, four lending centers and various digital capabilities, including web-based and smartphone-enabled banking services. The Bank has three active direct subsidiaries: Bethesda Leasing, LLC, Eagle Insurance Services, LLC and Landroval Municipal Finance, Inc. Bethesda Leasing, LLC holds title to and operates real estate owned and acquired through foreclosure. Eagle Insurance Services, LLC, which previously offered access to insurance products and services through a referral program with a third party insurance broker, continues to receive fee income in connection with such program. Landroval Municipal Finance, Inc. focuses on lending to municipalities by buying debt on the public market as well as direct purchase issuance. Principles of Consolidation and Basis of Presentation The Consolidated Financial Statements include the accounts of the Company with all significant intercompany transactions eliminated. EagleBank, a Maryland chartered commercial bank, is the Parent’s principal subsidiary. The accounting and reporting policies of the Company conform to generally accepted accounting principles in the United States of America ("GAAP") and to general practices in the banking industry. The Consolidated Financial Statements and accompanying notes of the Company included herein are unaudited. The Consolidated Financial Statements reflect all adjustments, consisting of normal recurring adjustments, that in the opinion of management are necessary to present fairly the results for the periods presented. Certain information and note disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to the rules and regulations of the Securities and Exchange Commission ("SEC"). In addition to the accounting policies described below, the Company applies the accounting policies contained in "Note 1 – Summary of Significant Accounting Policies" to the Consolidated Financial Statements included in the Company's Annual Report on Form 10-K for the year ended December 31, 2025 ("2025 Form 10-K"). Certain reclassifications have been made to 2025 amounts previously reported to conform to the 2026 presentation. Reclassifications had no effect on net income (loss) or shareholders' equity. These statements should be read in conjunction with the audited Consolidated Financial Statements and related notes included in the Company's Annual Report on 2025 Form 10-K. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts in the consolidated financial statements and accompanying notes. Actual results may differ from those estimates and such differences could be material to the consolidated financial statements. The allowance for credit losses ("ACL") is a material estimate that is particularly susceptible to significant variance in the near-term. Investment Securities The Company recognizes acquired securities on the trade date. Investment securities comprise debt securities, which are classified depending on the Company's intent and ability to hold the securities to maturity. Debt securities are classified as available-for-sale ("AFS") when management may have the intent to sell them prior to maturity. Debt securities are classified as held-to-maturity ("HTM") and carried at amortized cost when management has the positive intent and ability to hold them to maturity. AFS securities are acquired as part of the Company’s asset/liability management strategy and may be sold in response to changes in interest rates, current market conditions, loan demand, changes in prepayment risk and Eagle Bancorp, Inc First Quarter 2026 Form 10-Q 8 Table of Contents Notes to Consolidated Financial Statements | Note 1 – Summary of Significant Accounting Policies other factors. AFS securities are carried at fair value, with unrealized gains or losses, other than impairment losses, being reported as accumulated other comprehensive income (loss), a separate component of shareholders’ equity. Premiums and discounts on investment securities are amortized/accreted to the earlier of call or maturity based on expected lives, which are adjusted based on prepayment assumptions and call optionality. Transfers of Investment Securities from Available-for-Sale to Held-to-Maturity Transfers of debt securities into the HTM category from the AFS category are made at amortized cost, net of unrealized gain or loss reported in accumulated other comprehensive income (loss) at the date of transfer. The unrealized holding gain or loss at the date of transfer is retained in other comprehensive income (loss) and in the carrying value of the HTM securities. Such amounts are amortized over the remaining life of the security. There were no transfers during the periods presented. The Company does not intend to sell the HTM investments, and it is more likely than not that the Company will not have to sell the securities before recovery of its amortized cost basis, which may be at maturity. Loans The Company classifies loans in its portfolio as either held for investment ("HFI"), when management has the intent and ability to hold the loans for the foreseeable future or until maturity or payoff, or held for sale ("HFS"). HFS loans are reported at the lower of cost or fair value on the Consolidated Balance Sheets. HFI loans are stated at the principal amount outstanding, net of unamortized deferred costs and fees. Interest income on loans is recognized at the contractual rate on the principal amounts outstanding. It is the Company’s policy to discontinue the accrual of interest when circumstances indicate that collection is doubtful. Loan origination fees, net of direct loan origination costs, and commitment fees are deferred and amortized on the interest method over the term of the loan. Past due loans are placed on nonaccrual status when the contractual payment of principal or interest has become 90 days past due or there is a clear indication that the borrower's cash flow may not be sufficient to meet payments as they become due, even when the loan is currently performing. A loan may remain on accrual status if it is in the process of collection and is well secured. When a loan is placed on nonaccrual status, all previously accrued and unpaid interest is reversed through interest income. Interest income is subsequently recognized on a cash basis as long as the remaining book balance of the asset is deemed to be collectible. If collectability is questionable, then cash payments are applied to principal. A loan is placed back on accrual status when both principal and interest are current and it is probable that we will be able to collect all amounts due (both principal and interest) according to the terms of the loan agreement. Besides our primary loan portfolio segments that are summarized below, the Company also regularly engages in the sale of the guaranteed portion of SBA loans originated by the Bank. The sale of the guaranteed portion of SBA loans on a servicing retained basis gives rise to an excess servicing asset, which is computed on a loan by loan basis with the unamortized amount being included in intangible assets in the Consolidated Balance Sheets. The excess servicing asset is amortized on a straight-line basis (with adjustment for prepayments) as an offset to servicing fees collected and is included in other income in the Consolidated Statements of Operations. Collateral Dependent Financial Assets For collateral dependent loans for which 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 collateral, expected credit losses are calculated as the amount by which the amortized cost basis of the financial asset exceeds the net present value ("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. Loan Modifications to Borrowers in Financial Difficulty The Company evaluates loan restructurings to determine if we have a loan modification and whether it results in a new loan or the continuation of the existing loan. Loan modifications to borrowers experiencing financial difficulty that result in a direct change in the timing or amount of contractual cash flows include situations where there are principal forgiveness, interest rate reductions, other-than-insignificant payment delays, term extensions, and combinations of the listed modifications. Eagle Bancorp, Inc First Quarter 2026 Form 10-Q 9 Table of Contents Notes to Consolidated Financial Statements | Note 1 – Summary of Significant Accounting Policies A loan that is considered a modified loan may be subject to an individually-evaluated loan analysis if the commitment is $ 500 thousand or greater; otherwise, the restructured loan remains in the appropriate segment in the ACL model and associated provisions are adjusted based on changes in the discounted cash flows resulting from the modification of the restructured loan. 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. Allowance for Credit Losses 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 March 31, (dollars in thousands) 2026 2025 Provision for (reversal of) credit losses - loans $ 13,506 $ 26,309 Provision for (reversal of) credit losses - HTM debt securities ( 124 ) ( 54 ) Total Provision for credit losses $ 13,382 $ 26,255 Allowance for Credit Losses - Loans The ACL - Loans is an estimate of the expected credit losses in the HFI loans portfolio. The Company's ACL on its loan portfolio is deducted from the amortized cost basis of loans to present the net amount expected to be collected on the loans. Loans, or portions thereof, are charged off against the allowance when they are deemed uncollectible. Expected recoveries are recorded to the extent they do not exceed the aggregate of amounts previously charged-off and expected to be charged-off. The ACL - Loans is measured on a collective pool basis when similar risk characteristics are present. Reserves on loans that do not share similar risk characteristics are evaluated on an individual basis. Nonaccrual loans are specifically reviewed for loss potential and when deemed appropriate are assigned a reserve based on an individual evaluation. The remainder of the portfolio, representing all loans not evaluated individually for impairment, is pooled into portfolio segments by call report codes and a loan-level probability of default ("PD") / Loss Given Default ("LGD") cash flow method is applied using an exposure at default ("EAD") model. These historical loss rates are then modified to incorporate our reasonable and supportable forecast of future losses at the portfolio segment level, as well as any necessary qualitative adjustments. The Company uses regression analysis of historical internal and peer data provided by a third-party provider (as Company loss data is insufficient) to determine suitable credit loss drivers to utilize when modeling lifetime PD and LGD. This analysis also determines how expected PD will be impacted by different forecasted levels of the loss drivers. A similar process is employed to calculate a reserve assigned to off-balance sheet commitments, specifically unfunded loan commitments and letters of credit, and any needed reserve is recorded in reserve for unfunded commitments ("RUC") on the Consolidated Balance Sheets. For periods beyond which we are able to develop reasonable and supportable forecasts, we revert to the historical loss rate on a straight-line basis over a twelve-month period. For each of the loan segments listed below, the Company generates cash flow projections at the instrument level wherein payment expectations are adjusted for estimated prepayment speeds, PD rates and LGD rates. The modeling of expected prepayment speeds is based on historical internal data. EAD is based on each instrument's underlying amortization schedule in order to estimate the bank's expected credit loss exposure at the time of the borrower's potential default. Portfolio segments are used to pool loans with similar risk characteristics and align with our methodology for measuring current expected credit losses ("CECL"). While our methodology in establishing the ACL attributes portions of the ACL and RUC to the separate loan pools or segments, the entire ACL and RUC is available to absorb credit losses in the total loan portfolio and total amount of unfunded credit commitments, respectively. A summary of our primary portfolio segments is as follows: Commercial . The commercial loan portfolio comprises lines of credit and term loans for working capital, equipment and other business assets across a variety of industries. These loans are used for general corporate purposes Eagle Bancorp, Inc First Quarter 2026 Form 10-Q 10 Table of Contents Notes to Consolidated Financial Statements | Note 1 – Summary of Significant Accounting Policies including financing working capital, internal growth and acquisitions; and are generally secured by accounts receivable, inventory, equipment and other assets of our clients’ businesses. Income producing – commercial real estate . Income producing commercial real estate loans comprise permanent and bridge financing provided to professional real estate owners/managers of commercial and residential real estate projects and properties who generally have a demonstrated record of past success with similar properties. Collateral properties include apartment buildings, office buildings, hotels, mixed-use buildings, retail, data centers, warehouses, and shopping centers. The primary source of repayment on these loans is generally expected to come from lease or operation of the real property collateral. Income producing commercial real estate loans are impacted by fluctuations in collateral values, as well as rental demand and rates. Owner occupied – commercial real estate. The owner occupied commercial real estate portfolio comprises permanent financing provided to operating companies and their related entities for the purchase or refinance of real property wherein their business operates. Collateral properties include industrial property, office buildings, religious facilities, mixed-use property, healthcare and educational facilities. Real Estate Mortgage – Residential. Real estate mortgage residential loans comprise consumer mortgages for the purpose of purchasing or refinancing first lien real estate loans secured by primary-residence, second-home and rental residential real property. Construction – commercial and residential . The construction commercial and residential loan portfolio comprises loans made to builders and developers of commercial and residential property, for renovation, new construction and development projects. Collateral properties include apartment buildings, mixed-use properties, residential condominiums, single unit and 1-4 unit residential properties and office buildings. The primary source of repayment on these loans is expected to come from the sale, permanent financing or lease of the real property collateral. Construction loans are impacted by fluctuations in collateral values and the ability of the borrower or ultimate purchaser to obtain permanent financing. Construction – commercial and industrial ("C&I") (owner occupied) . The construction C&I (owner occupied) portfolio comprises loans to operating companies and their related entities for new construction or renovation of the real or leased property in which they operate. Generally, these loans contain provisions for conversion to an owner occupied commercial real estate loan or to a commercial loan after completion of construction. Collateral properties include industrial, healthcare, religious facilities, restaurants and office buildings. Home Equity . The home equity portfolio comprises consumer lines of credit and loans secured by subordinate liens on residential real property. Other Consumer . The other consumer portfolio comprises consumer loans not secured by real property, including personal lines of credit and loans, overdraft lines and vehicle loans. This category also includes other loan items such as overdrawn deposit accounts as well as loans and loan payments in process. The ACL also includes a qualitative adjustment for inherent risks not reflected in the historical quantitative analysis associated with the reasonable and supportable forecast. Relevant factors include, but are not limited to, concentrations of credit risk, appraisal risk from volatility in the market, changes in underwriting standards, experience and depth of lending staff and trends in delinquencies. Our model may reflect assumptions by management that are not covered by the qualitative and environmental factors, and we reevaluate all of its factors quarterly. Additionally, the ACL includes a qualitative reserve for CRE office loans (the "office overlay"), which reflects management’s assessment of continued uncertainty in that 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 company uses four economic variables in its cash flow model: national unemployment, Commercial Real Estate ("CRE") Price Index, House Price Index and Gross Domestic Product ("GDP"), which 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. The model incorporates a weighting of three economic scenarios; baseline, upside and downside. The scenarios cover the four economic forecast variables, with each segment of the portfolio linked to two of these variables, depending on the segment. The loss driver analysis is spread over a reasonable and supportable period of 18 months and reverts back to a historical loss rate over twelve months on a straight-line basis over the loan's remaining maturity. Management leverages economic projections from reputable and independent third parties to inform its loss driver forecasts over the forecast period. We have several pass credit grades that are assigned to loans based on varying levels of risk, ranging from loans that are secured by cash or marketable securities, to watch list loans that have all the characteristics of an Eagle Bancorp, Inc First Quarter 2026 Form 10-Q 11 Table of Contents Notes to Consolidated Financial Statements | Note 1 – Summary of Significant Accounting Policies acceptable credit risk but warrant more than the normal level of monitoring. Special mention loans are those that are currently protected by the sound worth and paying capacity of the borrower, but that are potentially weak and constitute an additional credit risk. These loans have the potential to deteriorate to a substandard grade due to the existence of financial or administrative deficiencies. Substandard loans have a well-defined weakness or weaknesses that jeopardizes the liquidation of the debt. They are characterized by the distinct possibility that we will sustain some loss if the deficiencies are not corrected. Some substandard loans are inadequately protected by the sound worth and paying capacity of the borrower and of the collateral pledged and may be considered impaired and require individual evaluation in the ACL. Substandard loans can be accruing or can be on nonaccrual depending on the circumstances of the individual loans. Loans graded as doubtful have all the weaknesses inherent in substandard loans with the added characteristics that the weaknesses make collection in full highly questionable and improbable. The possibility of loss is extremely high. All doubtful loans are accounted for on a nonaccrual basis. Classified loans is the aggregation of loans graded substandard and doubtful. The methodology used in the estimation of the ACL, which is performed at least quarterly, is designed to be dynamic and responsive to changes in portfolio credit quality and forecasted economic conditions. Changes are reflected in the pool-basis allowance and individually assessed loans as the collectability of classified loans is evaluated with new information. As our portfolio has matured, historical loss ratios have been closely monitored. The review of the appropriateness of the allowance is performed by executive management and presented to management committees and the Asset Quality Subcommittee of the Risk Committee before it is presented to the Audit Committee of the Board of Directors ("Board"). The committees' reports to the Board are included in the Board's quarterly review of our consolidated financial statements. When management determines that foreclosure is probable, and for certain collateral-dependent loans where foreclosure is not considered probable, expected credit losses are based on the estimated fair value of the collateral adjusted for selling costs, when appropriate. A loan is considered collateral-dependent when the borrower is experiencing financial difficulty and repayment is expected to be provided substantially through the operation or sale of the collateral. Expected credit losses are estimated over the contractual term of the loans, adjusted for expected prepayments when appropriate. The contractual term excludes expected extensions, renewals and modifications unless management has a reasonable expectation that a borrower will experience financial difficulty. We do not measure an ACL on accrued interest receivable balances because these balances are written off in a timely manner as a reduction to interest income when loans are placed on nonaccrual status. Allowance for Credit Losses - AFS Securities For AFS debt securities in an unrealized loss position, the Company first assesses whether it intends to sell, or it is more likely than not that it will be required to sell, the security before recovery of its amortized cost basis. If either criteria is met, the security’s amortized cost basis is written down to fair value through income. For AFS debt securities that do not meet the aforementioned criteria, the Company evaluates whether the decline in fair value has resulted from credit losses or other factors. In making this assessment, management considers the extent to which fair value is less than amortized cost, any changes to the rating of the security by a rating agency, and adverse conditions specifically related to the security, among other factors. If this assessment indicates that a credit loss exists, the present value of cash flows expected to be collected from the security is compared to the amortized cost basis of the security. If the present value of cash flows expected to be collected is less than the amortized cost basis, a credit loss exists and an ACL is recorded for the credit loss, limited by the amount that the fair value is less than the amortized cost basis. Any impairment that has not been recorded through an ACL is recognized in other comprehensive income, as a non-credit-related impairment. The entire amount of an impairment loss is recognized in earnings (loss) only when: (1) the Company intends to sell the security; or (2) it is more likely than not that the Company will have to sell the security before recovery of its amortized cost basis; or (3) the Company does not expect to recover the entire amortized cost basis of the security. In all other situations, only the portion of the impairment loss representing the credit loss must be recognized in earnings (loss), with the remaining portion being recognized in other comprehensive income (loss), net of deferred taxes. Changes in the ACL are recorded as a provision for (or reversal of) credit losses. Losses are charged against the allowance when management believes the uncollectibility of an AFS security is confirmed or when either of the criteria regarding intent or requirement to sell is met. We have made a policy election to exclude accrued interest from the amortized cost basis of AFS debt securities and report accrued interest separately in accrued interest and other assets in the Consolidated Balance Sheets. AFS debt securities are placed on nonaccrual status when we no longer expect to receive all contractual amounts due, which is generally at 90 days past due. Accrued interest receivable is reversed against interest income when a Eagle Bancorp, Inc First Quarter 2026 Form 10-Q 12 Table of Contents Notes to Consolidated Financial Statements | Note 1 – Summary of Significant Accounting Policies security is placed on nonaccrual status. Accordingly, we do not recognize an allowance for credit loss against accrued interest receivable. Allowance for Credit Losses - HTM Securities The Company separately evaluates its HTM investment securities for any credit losses. The Company pools like securities and calculates expected credit losses through an estimate based on a security's credit rating, which is recognized as part of the ACL for HTM securities and included in the balance of HTM securities on the Consolidated Balance Sheets. If the Company determines that a security indicates evidence of deteriorated credit quality, the security is individually evaluated and a discounted cash flow analysis may be performed and compared to the amortized cost basis. Loan Commitments and Allowance for Credit Losses on Off-Balance Sheet Credit Exposures Financial instruments include off-balance sheet credit instruments such as commitments to make loans and commercial letters of credit issued to meet customer financing needs. The Company's exposure to credit loss in the event of nonperformance by the other party to the financial instrument for off-balance sheet loan commitments is represented by the contractual amount of those instruments. Such financial instruments are recorded when they are funded. The Company records a RUC on off-balance sheet credit exposures through a charge to provision for credit loss expense in the Company's Consolidated Statements of Operations. The RUC on off-balance sheet credit exposures is estimated by loan segment at each balance sheet date under the current expected credit loss model using the same methodologies as portfolio loans, taking into consideration the likelihood that funding will occur and is included in the RUC on the Company’s Consolidated Balance Sheets. Segment Reporting The Company has one reporting unit, one operating segment and, consequently, a single reportable segment. Refer to "Note 12 – Segment Reporting" for further details. New Authoritative Accounting Guidance Accounting Standards Pending Adoption ASU No. 2023-06, "Disclosure Improvements: Codification Amendments in Response to the SEC’s Disclosure Update and Simplification Initiative" ("ASU 2023-06") incorporates into the Accounting Standards Codification (ASC or Codification) several U.S. Securities and Exchange Commission ("SEC") disclosure requirements under Regulations S-K and S-X. The amendments in the ASU are intended to clarify or improve disclosure and presentation requirements of a variety of Codification Topics, allow users to more easily compare entities subject to the SEC’s existing disclosures with those entities that were not previously subject to the requirements, and align the requirements in the Codification with the SEC’s regulations. These requirements are similar to, but require additional information than, generally accepted accounting principles. These new updates modify the disclosure or presentation requirements of a variety of Topics in the Codification. Entities should apply the amendments in ASU 2023-06 prospectively. For entities subject to the SEC’s existing disclosure requirements and for entities that have to file or provide financial statements with or to the SEC for the purpose of selling or issuing securities that do not have contractual limits on transfer, the effective date for each amendment will be the date on which the SEC removes that related disclosure from its rules. As a result, the effective date will be different for each individual disclosure based on the effective date of the SEC’s deletion of the related disclosure. Early adoption is prohibited. For all other entities, the effective date will be two years later. Early adoption is permitted for these entities, but not before the provisions of the ASU become effective for entities subject to SEC’s regulation. The effective dates of the amendments are predicated on the SEC removing its related disclosure requirements from its regulations. However, if by June 30, 2027, the SEC has not removed the related disclosure from its regulations, the amendments will be removed from the Codification and not become effective for any entity. We are currently in the process of evaluating this guidance. ASU No. 2024-03, "Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses" ("ASU 2024-03") which requires disaggregated disclosure of income statement expenses for public business entities. The ASU does not change the expense captions an entity presents on the face of the income statement; rather, it requires disaggregation of certain expense captions into specified categories in disclosures within the footnotes to the financial statements at interim and annual reporting periods. ASU 2024-03 adds to ASC 220-40, requiring public business entities to disaggregate within the financial statement footnotes, in a tabular presentation, each relevant expense caption on the face of the Eagle Bancorp, Inc First Quarter 2026 Form 10-Q 13 Table of Contents Notes to Consolidated Financial Statements | Note 1 – Summary of Significant Accounting Policies income statement that includes any of the following natural expenses: (1) purchases of inventory, (2) employee compensation, (3) depreciation, (4) intangible asset amortization, and (5) depreciation, depletion, and amortization recognized as part of oil- and gas-producing activities or other types of depletion expenses. The tabular disclosure would also include certain other expenses, when applicable. ASU 2024-03 does not change or remove existing expense disclosure requirements; however, it may affect where that information appears in the footnotes to the financial statements. The amendments in this update are effective for annual reporting periods beginning after December 15, 2026, and interim reporting periods beginning after December 15, 2027. Early adoption is permitted. The amendments in this update should be applied either (1) prospectively to financial statements issued for reporting periods after the effective date of this Update or (2) retrospectively to any or all prior periods presented in the financial statements. The company will expand its disclosures in the annual reporting period beginning after December 15, 2026 and interim reporting periods after to include disaggregated information related to the expenses required by the standard. ASU No. 2025-06, "Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40)": Targeted Improvements to the Accounting for Internal-Use Software ("ASU 2025-06") amends guidance related to the accounting for internal-use software development costs. The amendments are intended to modernize the recognition and capitalization framework to reflect current software development practices, including iterative and agile methodologies, by removing references to "development stages". It also clarifies the criteria for capitalization, which begins when both of the following occur: (1) management has authorized and committed to funding the software project and (2) it is probable that the project will be completed and the software will be used to perform the function intended. The amendments in ASU 2025-06 are effective for annual periods beginning after December 15, 2027, and interim periods within those annual periods, which for the Company would be the fiscal first quarter ending March 31, 2028. Early adoption is permitted as of the beginning of an annual reporting period. ASU 2025-06 allows companies to elect one of the following adoption methods to apply its amendments: a prospective transition approach, a retrospective transition approach, or a modified transition approach that is based on the status of the project and whether software costs were capitalized before the date of adoption. The Company is currently evaluating the impact the new accounting standard will have on its policy for capitalization of development costs for software intended for internal use. ASU No. 2025-07, "Derivatives and Hedging (Topic 815)—Derivatives Scope Refinements (Issue 1)" ("ASU 2025-07"). I n September 2025, the FASB issued ASU 2025-07 to refine the scope of derivative accounting under ASC 815 and clarify the treatment of share-based noncash consideration from customers under ASC 606. The update provides a new scope exception for certain contracts based on a party’s own operations, removing them from derivative accounting. It also clarifies that share-based consideration from customers should be measured at fair value at contract inception and included in the transaction price only if the right to receive it is unconditional. Subsequent fair value changes before the right becomes unconditional are not recognized in revenue. The ASU is effective for annual periods beginning after December 15, 2026, with early adoption permitted, and transition options include prospective or modified retrospective application. Entities will need to reassess existing contracts and update processes for valuation and revenue recognition related to customer share-based payments. The Company is currently in the process of evaluating this guidance. ASU No. 2025-09, " Derivatives and Hedging (Topic 815)— Hedge Accounting Improvements " ("ASU 2025-09"). In November 2025, the FASB issued ASU 2025-09 to provide significant improvements to hedge accounting under FASB ASC 815, primarily by giving companies more flexibility to align hedge accounting with their actual risk management, especially for variable-rate debt ("choose-your-rate"), nonfinancial asset hedges, and aggregated forecasts. Key changes include allowing flexible switching between interest rate indexes for variable debt hedges, simplifying grouping of forecasted transactions (similar risk instead of shared risk), and resolving mismatches in complex dual-purpose hedges involving foreign currency debt. The goal is to reduce complexity, cost, and align financial reporting with economic reality. The ASU is effective for fiscal years beginning after December 15, 2026, and interim reporting periods within those annual reporting periods The Company is currently in the process of evaluating this guidance. ASU No. 2025-12, " Codification Improvements " ("ASU 2025-12"). In December 2025, the FASB issued ASU 2025-12 to make dozens of technical corrections, clarifications, and minor enhancements across various topics including simplifying diluted EPS calculations with losses, clarifying lease receivable disclosures, refining beneficial interest calculations, and streamlining treasury stock accounting. The ASU is effective for fiscal years beginning after December 15, 2026, and interim reporting periods within those annual reporting periods. The Company is currently in the process of evaluating this guidance. Eagle Bancorp, Inc First Quarter 2026 Form 10-Q 14 Table of Contents Notes to Consolidated Financial Statements | Note 2 – Cash and Due from Banks Note 2 – Cash and Due from Banks For the three months ended March 31, 2026 and 2025, the Bank maintained average daily balances at the Federal Reserve Bank of Richmond ("Federal Reserve Bank") of $ 1.4 billion for each period, on which interest is paid. Additionally, the Bank maintains interest-bearing balances with the Federal Home Loan Bank of Atlanta ("FHLB") and noninterest-bearing balances with domestic correspondent banks to cover associated costs for services they provide to the Bank. Note 3 – Investment Securities The table below summarizes the Company's investment in AFS securities by major security type. As of March 31, 2026 (dollars in thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value U.S. agency securities $ 332,381 $ — $ ( 17,318 ) $ 315,063 Residential mortgage-backed securities 597,422 65 ( 58,177 ) 539,310 Commercial mortgage-backed securities 68,581 — ( 2,465 ) 66,116 Municipal bonds 8,380 — ( 508 ) 7,872 Corporate bonds 2,000 — ( 47 ) 1,953 Total available-for-sale securities $ 1,008,764 $ 65 $ ( 78,515 ) $ 930,314 As of December 31, 2025 (dollars in thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value U.S. agency securities $ 355,249 $ — $ ( 17,541 ) $ 337,708 Residential mortgage-backed securities 620,540 152 ( 58,188 ) 562,504 Commercial mortgage-backed securities 68,931 117 ( 2,503 ) 66,545 Municipal bonds 8,426 — ( 380 ) 8,046 Corporate bonds 2,000 — ( 33 ) 1,967 Total available-for-sale securities $ 1,055,146 $ 269 $ ( 78,645 ) $ 976,770 Eagle Bancorp, Inc First Quarter 2026 Form 10-Q 15 Table of Contents Notes to Consolidated Financial Statements | Note 3 – Investment Securities The table below summarizes the Company's investment in HTM securities by major security type. As of March 31, 2026 (dollars in thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Residential mortgage-backed securities $ 531,370 $ — $ ( 62,117 ) $ 469,253 Commercial mortgage-backed securities 85,189 — ( 10,006 ) 75,183 Municipal bonds 106,813 — ( 8,221 ) 98,592 Corporate bonds 118,808 120 ( 4,718 ) 114,210 Total 842,180 $ 120 $ ( 85,062 ) $ 757,238 Less: Allowance for credit losses ( 907 ) Total held-to-maturity securities, net of ACL $ 841,273 As of December 31, 2025 (dollars in thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Residential mortgage-backed securities $ 544,402 $ — $ ( 58,836 ) $ 485,566 Commercial mortgage-backed securities 85,760 — ( 9,787 ) 75,973 Municipal bonds 106,875 — ( 6,933 ) 99,942 Corporate bonds 118,773 8 ( 5,315 ) 113,466 Total 855,810 $ 8 $ ( 80,871 ) $ 774,947 Less: Allowance for credit losses ( 1,030 ) Total held-to-maturity securities, net of ACL $ 854,780 In addition, as of March 31, 2026 and December 31, 2025, the Company held $ 27.7 million and $ 28.3 million, respectively, in non-marketable equity securities in a combination of Federal Reserve System ("Federal Reserve Board", "Federal Reserve" or "FRB") and FHLB stocks, which are required to be held for regulatory purposes. These securities cannot be disposed of other than through redemption by the issuer and, if redeemed, would be redeemed at the original cost. The securities are carried at cost, classified as restricted securities, and periodically evaluated for impairment based on ultimate recovery of par value. As of March 31, 2026 and December 31, 2025, the Company had $ 36.9 million and $ 38.5 million, respectively, of unamortized unrealized losses outstanding following the transfer of investment securities from AFS to HTM in 2022. These unrealized losses are included in accumulated other comprehensive loss and are amortized through interest income as a yield adjustment over the remaining term of the securities. Accrued interest receivable on investment securities was $ 5.5 million as of March 31, 2026 and December 31, 2025. The accrued interest on investment securities is excluded from the amortized cost of the securities and is reported in other assets in the Consolidated Balance Sheets. Eagle Bancorp, Inc First Quarter 2026 Form 10-Q 16 Table of Contents Notes to Consolidated Financial Statements | Note 3 – Investment Securities The table below summarizes, by length of time, the Company's AFS securities that have been in a continuous unrealized loss position and HTM securities that have been in a continuous unrecognized loss position. As of March 31, 2026 Less than 12 Months 12 Months or Greater Total (dollars in thousands) Number of Securities Estimated Fair Value Unrealized Losses Estimated Fair Value Unrealized Losses Estimated Fair Value Unrealized Losses Investment securities available-for-sale: U.S. agency securities 50 $ — $ — $ 315,063 $ ( 17,318 ) $ 315,063 $ ( 17,318 ) Residential mortgage-backed securities 141 17,423 ( 92 ) 512,563 ( 58,085 ) 529,986 ( 58,177 ) Commercial mortgage-backed securities 12 29,017 ( 31 ) 37,099 ( 2,434 ) 66,116 ( 2,465 ) Municipal bonds 1 — — 7,872 ( 508 ) 7,872 ( 508 ) Corporate bonds 1 — — 1,953 ( 47 ) 1,953 ( 47 ) Total 205 $ 46,440 $ ( 123 ) $ 874,550 $ ( 78,392 ) $ 920,990 $ ( 78,515 ) Investment securities held-to-maturity: Residential mortgage-backed securities 135 $ — $ — $ 469,253 $ ( 62,117 ) $ 469,253 $ ( 62,117 ) Commercial mortgage-backed securities 16 4,230 ( 531 ) 70,953 ( 9,475 ) 75,183 ( 10,006 ) Municipal bonds 33 — — 97,592 ( 8,221 ) 97,592 ( 8,221 ) Corporate bonds 27 9,841 ( 29 ) 97,386 ( 4,689 ) 107,227 ( 4,718 ) Total 211 $ 14,071 $ ( 560 ) $ 735,184 $ ( 84,502 ) $ 749,255 $ ( 85,062 ) As of December 31, 2025 Less than 12 Months 12 Months or Greater Total (dollars in thousands) Number of Securities Estimated Fair Value Unrealized Losses Estimated Fair Value Unrealized Losses Estimated Fair Value Unrealized Losses Investment securities available-for-sale: U.S. agency securities 52 $ — $ — $ 337,708 $ ( 17,541 ) $ 337,708 $ ( 17,541 ) Residential mortgage-backed securities 139 — — 546,514 ( 58,188 ) 546,514 ( 58,188 ) Commercial mortgage-backed securities 10 — — 37,329 ( 2,503 ) 37,329 ( 2,503 ) Municipal bonds 1 — — 8,046 ( 380 ) 8,046 ( 380 ) Corporate bonds 1 — — 1,967 ( 33 ) 1,967 ( 33 ) Total 203 $ — $ — $ 931,564 $ ( 78,645 ) $ 931,564 $ ( 78,645 ) Investment securities held-to-maturity: Residential mortgage-backed securities 136 $ — $ — $ 485,567 $ ( 58,836 ) $ 485,567 $ ( 58,836 ) Commercial mortgage-backed securities 16 4,271 ( 503 ) 71,702 ( 9,284 ) 75,973 ( 9,787 ) Municipal bonds 33 — — 98,942 ( 6,933 ) 98,942 ( 6,933 ) Corporate bonds 27 1,922 ( 18 ) 106,638 ( 5,297 ) 108,560 ( 5,315 ) Total 212 $ 6,193 $ ( 521 ) $ 762,849 $ ( 80,350 ) $ 769,042 $ ( 80,871 ) Eagle Bancorp, Inc First Quarter 2026 Form 10-Q 17 Table of Contents Notes to Consolidated Financial Statements | Note 3 – Investment Securities As of March 31, 2026, unrealized losses were generally attributable to changes in market interest rates and interest spread relationships subsequent to the dates the securities were originally purchased, and were considered to be temporary, and not due to credit quality concerns on the investment securities. The fair values of these AFS securities are expected to recover as the securities approach their respective maturity dates. The Company measures its AFS and HTM securities portfolios for credit losses as part of its ACL analysis. For further information on provision for credit losses on AFS and HTM securities, see the "Allowance for Credit Losses" discussion in "Note 1 – Summary of Significant Accounting Policies". As of March 31, 2026 and December 31, 2025, the Company had an allowance for credit losses outstanding of zero on its AFS securities and $ 0.9 million and $ 1.0 million, respectively, on its HTM securities, each of which primarily comprise allowances for corporate bonds. The table below summarizes the Company's investment in AFS securities and HTM securities by contractual maturity. Expected maturities for mortgage-backed securities ("MBS") will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. As of March 31, 2026 (dollars in thousands) Amortized Cost Estimated Fair Value Investment securities available-for-sale: Within one year $ 70,454 $ 69,447 One to five years 226,437 213,471 Five to ten years 27,699 25,939 Beyond ten years 18,171 16,031 Residential mortgage-backed securities 597,422 539,310 Commercial mortgage-backed securities 68,581 66,116 Less: allowance for credit losses — — Total investment securities available-for-sale 1,008,764 930,314 Investment securities held-to-maturity: Within one year 4,928 4,925 One to five years 71,030 69,073 Five to ten years 98,688 92,668 Beyond ten years 50,975 46,136 Residential mortgage-backed securities: 531,370 469,253 Commercial mortgage-backed securities 85,189 75,183 Less: allowance for credit losses ( 907 ) — Total investment securities held-to-maturity 841,273 757,238 Total $ 1,850,037 $ 1,687,552 There were no sales and calls of investment securities during the three months ended March 31, 2026 and 2025, therefore, no proceeds from sales or calls in either period. As of March 31, 2026 and December 31, 2025, the book value of securities pledged as collateral for certain government deposits, securities sold under agreements to repurchase and certain lines of credit with correspondent banks was $ 16.0 million and $ 519.6 million, respectively. As of March 31, 2026 and December 31, 2025, there were no holdings of securities of any one issuer, other than the U.S. agency securities, which exceeded ten percent of shareholders’ equity. Eagle Bancorp, Inc First Quarter 2026 Form 10-Q 18 Table of Contents Notes to Consolidated Financial Statements | Note 4 – Loans and Allowance for Credit Losses Note 4 – Loans and Allowance for Credit Losses The Bank makes loans to customers primarily in the Washington, D.C. metropolitan area and surrounding communities. The Bank’s loan portfolio primarily consists of loans to businesses secured by real estate and other business assets, as evidenced by the table below. The table below presents HFI Loans, net of unamortized net deferred fees, summarized by portfolio segment. As of March 31, 2026 December 31, 2025 (dollars in thousands) Amount % Amount % Commercial $ 1,432,933 21 % $ 1,338,486 18 % Income producing - commercial real estate 3,030,004 44 % 3,350,718 46 % Owner occupied - commercial real estate 1,686,210 23 % 1,602,124 22 % Real estate mortgage - residential 35,743 1 % 37,100 1 % Construction - commercial and residential 617,992 9 % 795,400 11 % Construction - C&I (owner occupied) 87,666 1 % 108,468 1 % Home equity 44,948 1 % 47,448 1 % Other consumer 3,064 — % 715 — % Total loans 6,938,560 100 % 7,280,459 100 % Less: allowance for credit losses ( 147,163 ) ( 159,604 ) Net loans (1) $ 6,791,397 $ 7,120,855 (1) Excludes accrued interest receivable of $ 33.3 million and $ 35.9 million as of March 31, 2026 and December 31, 2025, respectively, which were recorded in other assets on the Consolidated Balance Sheets. Unamortized net deferred fees and costs were $ 17.5 million and $ 17.6 million as of March 31, 2026 and December 31, 2025, respectively. During the three months ended March 31, 2026, certain loans, primarily income producing - commercial real estate loans, were reclassified from HFI to HFS loans with the lower of cost or fair value of $ 111.8 million. As of March 31, 2026 and December 31, 2025, the outstanding balance of all HFS loans were $ 55.7 million and $ 90.7 million, respectively, as reported on the Consolidated Balance Sheets, of which $ 55.2 million and $ 90.7 million, respectively, were on nonaccrual status. As of March 31, 2026 and December 31, 2025, the Bank serviced $ 102.3 million and $ 81.5 million, respectively, of SBA loans and other loan participations, which are not reflected as loan balances on the Consolidated Balance Sheets. Real estate loans are secured primarily by duly recorded first deeds of trust or mortgages. In some cases, the Bank may accept a recorded junior trust position. In general, borrowers will have a proven ability to build, lease, manage and/or sell a commercial or residential project and demonstrate satisfactory financial condition. Additionally, an equity contribution toward the project is customarily required. Construction loans require that the financial condition and experience of the general contractor and major subcontractors be satisfactory to the Bank. Guaranteed, fixed price contracts are required whenever appropriate, along with payment and performance bonds or completion bonds for larger scale projects. Loans intended for residential land acquisition, lot development and construction are made on the premise that the land: 1) is or will be developed for building sites for residential structures; and 2) will ultimately be utilized for construction or improvement of residential zoned real properties, including the creation of housing. Residential development and construction loans will finance projects such as single family subdivisions, planned unit developments, townhouses and condominiums. Residential land acquisition, development and construction ("ADC") loans generally are underwritten with a maximum term of 36 months, including extensions approved at origination. Commercial land acquisition and construction loans are secured by real property where loan funds will be used to acquire land and to construct or improve appropriately zoned real property for the creation of income producing or owner-occupied commercial properties. Borrowers are generally required to put equity into each project at levels determined by the appropriate approval authority. Commercial land acquisition and construction loans generally are underwritten with a maximum term of 24 months. Eagle Bancorp, Inc First Quarter 2026 Form 10-Q 19 Table of Contents Notes to Consolidated Financial Statements | Note 4 – Loans and Allowance for Credit Losses Substantially all construction draw requests must be presented in writing on American Institute of Architects documents and certified either by the contractor, the borrower and/or the borrower’s architect. Each draw request shall also include the borrower’s soft cost breakdown certified by the borrower or their Chief Financial Officer. Prior to an advance, the Bank or its contractor inspects the project to determine that the work has been completed, to justify the draw requisition. Commercial permanent loans are generally secured by improved real property which is generating income in the normal course of operation. Debt service coverage, assuming stabilized occupancy, must be satisfactory to support a permanent loan. The debt service coverage ratio ("DSCR") is ordinarily at least 1.15 to 1.0. As part of the underwriting process, DSCRs are stress tested assuming a 200 basis point increase in interest rates from their current levels. Commercial permanent loans generally are underwritten with a term not greater than 10 years or the remaining useful life of the property, whichever is less. The preferred term is between 5 to 7 years, with amortization to a maximum of 25 years. The Company’s loan portfolio includes ADC real estate loans including both investment and owner occupied projects. ADC loans amounted to $ 1.0 billion as of March 31, 2026. A portion of the ADC portfolio, both speculative and non-speculative, includes loan-funded interest reserves at origination. ADC loans that provide for the use of interest reserves represent approximately 27 % of the outstanding ADC loan portfolio as of March 31, 2026. The decision to establish a loan-funded interest reserve is made upon origination of the ADC loan and is based upon a number of factors considered during underwriting of the credit including: (1) the feasibility of the project; (2) the experience of the sponsor; (3) the creditworthiness of the borrower and guarantors; (4) borrower equity contribution; and (5) the level of collateral protection. When appropriate, an interest reserve provides an effective means of addressing the cash flow characteristics of a properly underwritten ADC loan. The Company does not significantly utilize interest reserves in other loan products. The Company recognizes that one of the risks inherent in the use of interest reserves is the potential masking of underlying problems with the project and/or the borrower’s ability to repay the loan. In order to mitigate this inherent risk, the Company employs a series of reporting and monitoring mechanisms on all ADC loans, whether or not an interest reserve is provided, including: (1) construction and development timelines which are monitored on an ongoing basis which track the progress of a given project to the timeline projected at origination; (2) a construction loan administration department independent of the lending function; (3) third party independent construction loan inspection reports; (4) monthly interest reserve monitoring reports detailing the balance of the interest reserves approved at origination and the days of interest carry represented by the reserve balances as compared to the then current anticipated time to completion and/or sale of speculative projects; and (5) quarterly commercial real estate construction meetings among senior Company management, which includes monitoring of current and projected real estate market conditions. If a project has not performed as expected, it is not the customary practice of the Company to increase loan funded interest reserves. Eagle Bancorp, Inc First Quarter 2026 Form 10-Q 20 Table of Contents Notes to Consolidated Financial Statements | Note 4 – Loans and Allowance for Credit Losses The table below details activity in the ACL by portfolio segment. The Company has updated its allocation methodology to better reflect the ACL attributable to loan categories and collateral types. Conforming changes have been made to prior period amounts. Allocation of a portion of the allowance to one category of loans does not preclude its availability to absorb losses in other categories. (dollars in thousands) Commercial Income Producing - Commercial Real Estate Owner Occupied - Commercial Real Estate Real Estate Mortgage - Residential Construction -Commercial and Residential Construction - C&I (Owner Occupied) Home Equity Other Consumer Total For the Three Months Ended March 31, 2026 Allowance for credit losses: Balance at beginning of quarter $ 26,607 $ 98,707 $ 20,719 $ 339 $ 11,171 $ 1,515 $ 519 $ 27 $ 159,604 Loans charged-off ( 11,533 ) ( 11,557 ) ( 2,926 ) ( 80 ) — — — — ( 26,096 ) Recoveries of loans previously charged-off 87 38 24 — — — — — 149 Net loans (charged-off) and recovered ( 11,446 ) ( 11,519 ) ( 2,902 ) ( 80 ) — — — — ( 25,947 ) Provision for (reversal of) credit losses 11,130 981 180 56 1,432 ( 391 ) 112 6 13,506 Ending balance $ 26,291 $ 88,169 $ 17,997 $ 315 $ 12,603 $ 1,124 $ 631 $ 33 $ 147,163 For the Three Months Ended March 31, 2025 Allowance for credit losses: Balance at beginning of quarter $ 19,390 $ 55,185 $ 22,654 $ 610 $ 14,585 $ 1,282 $ 653 $ 31 $ 114,390 Loans charged-off ( 270 ) ( 6,170 ) ( 4,862 ) — — — — ( 4 ) ( 11,306 ) Recoveries of loans previously charged-off 53 — 23 — — — — — 76 Net loans (charged-off) and recovered ( 217 ) ( 6,170 ) ( 4,839 ) — — — — ( 4 ) ( 11,230 ) Provision for (reversal of) credit losses 1,489 12,922 9,057 60 2,306 398 71 6 26,309 Ending balance $ 20,662 $ 61,937 $ 26,872 $ 670 $ 16,891 $ 1,680 $ 724 $ 33 $ 129,469 The table below presents the amortized cost basis of collateral-dependent HFI loans by portfolio segment. As of March 31, 2026 December 31, 2025 (dollars in thousands) Business/Other Assets Real Estate Business/Other Assets Real Estate Commercial $ 15,305 $ 3,215 $ 15,285 $ 2,813 Income producing-commercial real estate 880 75,781 880 61,657 Owner occupied - commercial real estate — 5,052 — 7,938 Real estate mortgage- residential — 464 — 579 Construction - commercial and residential — 28,016 — 17,394 Home equity — 517 — 351 Total $ 16,185 $ 113,045 $ 16,165 $ 90,732 Eagle Bancorp, Inc First Quarter 2026 Form 10-Q 21 Table of Contents Notes to Consolidated Financial Statements | Note 4 – Loans and Allowance for Credit Losses Credit Quality Indicators The Company uses several credit quality indicators to manage credit risk in an ongoing manner. The Company’s primary credit quality indicator is an internal credit risk rating system that categorizes loans into pass, special mention or classified categories. Credit risk ratings are applied individually to those classes of loans that have significant or unique credit characteristics that benefit from a case-by-case evaluation. These are typically loans to businesses or individuals in the classes which comprise the commercial portfolio segment. Groups of loans that are underwritten and structured using standardized criteria and characteristics, such as statistical models (e.g., credit scoring or payment performance), are typically risk rated and monitored collectively. These are typically loans to individuals in the classes which comprise the consumer portfolio segment. The following are the definitions of the Company’s credit quality indicators: Pass: Loans in all classes that comprise the commercial and consumer portfolio segments that are not adversely rated, are contractually current as to principal and interest and are otherwise in compliance with the contractual terms of the loan agreement. Management believes that there is a low likelihood of loss related to those loans that are considered pass. Special Mention: Loans in the classes that comprise the commercial portfolio segment that have potential weaknesses that deserve management’s close attention. If not addressed, these potential weaknesses may result in deterioration of the repayment prospects for the loan. The special mention credit quality indicator is not used for classes of loans that comprise the consumer portfolio segment. Management believes that there is a moderate likelihood of some loss related to those loans that are considered special mention. Classified (a) Substandard: Loans inadequately protected by the current sound worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the company will sustain some loss if the deficiencies are not corrected. Loss potential, while existing in the aggregate amount of substandard loans, does not have to exist in individual loans classified substandard. Classified (b) Doubtful: Loans that have all the weaknesses inherent in a loan classified substandard, with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions and values, highly questionable and improbable. The possibility of loss is extremely high, but because of certain important and reasonably specific pending factors, which may work to the advantage and strengthening of the assets, its classification as an estimated loss is deferred until its more exact status may be determined. Eagle Bancorp, Inc First Quarter 2026 Form 10-Q 22 Table of Contents Notes to Consolidated Financial Statements | Note 4 – Loans and Allowance for Credit Losses The Company's credit quality indicators are generally updated annually, however, credits rated "Special Mention" or below are reviewed more frequently. The table below presents the amortized cost basis of HFI loans by risk category, class and year of origination, along with any charge-offs that were recorded in the applicable loan segment, if applicable. The table below excludes $ 11.6 million of gross charge-offs associated with loans that were reclassified to HFS or sold during the three months ended March 31, 2026. As of March 31, 2026 (dollars in thousands) Prior 2022 2023 2024 2025 2026 Revolving Loans Amort. Cost Basis Revolving Loans Convert. to Term Total Commercial: Pass $ 104,869 $ 33,046 $ 67,471 $ 88,369 $ 358,736 $ 145,359 $ 541,703 $ 3,540 $ 1,343,093 Special Mention 56 11,534 996 7,260 — — 20,841 — 40,687 Substandard 24,515 9,586 424 2,738 — — 11,678 212 49,153 Total 129,440 54,166 68,891 98,367 358,736 145,359 574,222 3,752 1,432,933 YTD gross charge-offs ( 2,681 ) ( 8,852 ) — — — — — — ( 11,533 ) Income producing - commercial real estate: Pass 1,352,420 443,676 412,067 88,766 123,779 771 151,826 — 2,573,305 Special Mention 57,450 56,173 — — — — — — 113,623 Substandard 248,923 93,545 — — — — 608 — 343,076 Total 1,658,793 593,394 412,067 88,766 123,779 771 152,434 — 3,030,004 Owner occupied - commercial real estate: Pass 844,229 88,995 131,357 127,490 338,606 105,439 657 — 1,636,773 Special Mention 11,491 — — — 16,441 — — — 27,932 Substandard 20,440 1,065 — — — — — — 21,505 Total 876,160 90,060 131,357 127,490 355,047 105,439 657 — 1,686,210 YTD gross charge-offs ( 2,926 ) — — — — — — ( 2,926 ) Real estate mortgage - residential: Pass 14,101 10,832 5,830 — — — — — 30,763 Substandard 4,980 — — — — — — — 4,980 Total 19,081 10,832 5,830 — — — — — 35,743 Construction - commercial and residential: Pass 112,240 184,622 75,117 9,990 29,369 7,149 56,029 6,874 481,390 Special Mention — 81,094 — — — — 27,491 — 108,585 Substandard 12,118 15,152 — — — — 747 — 28,017 Total 124,358 280,868 75,117 9,990 29,369 7,149 84,267 6,874 617,992 Construction - C&I (owner occupied): Pass 3,698 — 10,445 49,507 23,236 — 780 — 87,666 Home equity: Pass 2,026 113 — — — — 41,622 314 44,075 Substandard 418 — — — — 37 377 41 873 Total 2,444 113 — — — 37 41,999 355 44,948 Other consumer: Pass — — — — 135 200 2,729 — 3,064 Total Recorded Investment $ 2,813,974 $ 1,029,433 $ 703,707 $ 374,120 $ 890,302 $ 258,955 $ 857,088 $ 10,981 $ 6,938,560 Total YTD gross charge-offs $ ( 5,607 ) $ ( 8,852 ) $ — $ — $ — $ — $ — $ — $ ( 14,459 ) Eagle Bancorp, Inc First Quarter 2026 Form 10-Q 23 Table of Contents Notes to Consolidated Financial Statements | Note 4 – Loans and Allowance for Credit Losses As of December 31, 2025 (dollars in thousands) Prior 2021 2022 2023 2024 2025 Revolving Loans Amort. Cost Basis Revolving Loans Convert. to Term Total Commercial: Pass $ 92,082 $ 18,390 $ 35,098 $ 66,402 $ 83,098 $ 357,934 $ 593,711 $ 3,815 $ 1,250,530 Special Mention 524 309 11,264 994 10,360 — 7,018 — 30,469 Substandard 22,721 433 18,134 406 — — 13,102 2,691 57,487 Total 115,327 19,132 64,496 67,802 93,458 357,934 613,831 6,506 1,338,486 YTD gross charge-offs ( 1,208 ) ( 525 ) ( 304 ) — ( 57 ) — ( 296 ) — ( 2,390 ) Income producing - commercial real estate: Pass 1,087,720 435,579 533,070 364,692 88,823 123,114 145,256 13,381 2,791,635 Special Mention 86,600 43,104 56,157 — — — — — 185,861 Substandard 167,878 90,035 114,451 — — — 858 — 373,222 Total 1,342,198 568,718 703,678 364,692 88,823 123,114 146,114 13,381 3,350,718 YTD gross charge-offs ( 35,833 ) — — — — — ( 10,500 ) — ( 46,333 ) Owner occupied - commercial real estate: Pass 667,233 209,803 89,580 132,719 126,792 356,437 636 — 1,583,200 Substandard 14,263 3,137 1,072 452 — — — — 18,924 Total 681,496 212,940 90,652 133,171 126,792 356,437 636 — 1,602,124 YTD gross charge-offs ( 22,238 ) — — — — — — ( 22,238 ) Real estate mortgage - residential: Pass 13,331 6,411 10,941 5,838 — — — — 36,521 Substandard 579 — — — — — — — 579 Total 13,910 6,411 10,941 5,838 — — — — 37,100 Construction - commercial and residential: Pass 10,095 106,241 307,223 120,558 10,228 23,415 92,900 8,294 678,954 Special Mention — — 25,082 — — — 27,469 — 52,551 Substandard 35,517 11,618 15,320 — — — 1,440 — 63,895 Total 45,612 117,859 347,625 120,558 10,228 23,415 121,809 8,294 795,400 YTD gross charge-offs ( 1,579 ) — — — — — — — ( 1,579 ) Construction - C&I (owner occupied): Pass 3,737 — — 10,199 43,484 18,945 791 31,312 108,468 Home equity: Pass 1,282 35 114 — — — 44,822 805 47,058 Substandard 248 — — — — — 82 60 390 Total 1,530 35 114 — — — 44,904 865 47,448 YTD gross charge-offs — ( 206 ) — — — — — — ( 206 ) Other consumer: Pass — — — — — 156 559 — 715 YTD gross charge-offs ( 3 ) — — — — — — ( 32 ) ( 35 ) Total Recorded Investment $ 2,203,810 $ 925,095 $ 1,217,506 $ 702,260 $ 362,785 $ 880,001 $ 928,644 $ 60,358 $ 7,280,459 Total YTD gross charge-offs $ ( 60,861 ) $ ( 731 ) $ ( 304 ) $ — $ ( 57 ) $ — $ ( 10,796 ) $ ( 32 ) $ ( 72,781 ) The Company individually evaluates nonaccrual loans when performing its CECL estimate to calculate the ACL. Additionally, the Company utilizes historical internal and third-party service provider sourced loss data in the determination of its PD/LGD rates applied in the calculation of its CECL estimate. Upon determination that a modified loan (or a portion of a loan) has subsequently been deemed uncollectible, the loan (or a portion of the loan) is charged off. Therefore, the amortized cost basis of the loan is reduced by the uncollectible amount and the ACL is adjusted by the same amount. Eagle Bancorp, Inc First Quarter 2026 Form 10-Q 24 Table of Contents Notes to Consolidated Financial Statements | Note 4 – Loans and Allowance for Credit Losses Nonaccrual and Past Due Loans Loans are considered past due if the required principal and interest payments have not been received as of the date such payments were due. Loans are placed on nonaccrual status when, in management’s opinion, the borrower may be unable to meet payment obligations as they become due, as well as when required by regulatory provisions. Loans may be placed on nonaccrual status whether or not such loans are considered past due. Interest income is subsequently recognized only to the extent cash payments are received in excess of principal due. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured. The table below presents, by portfolio segment, information related to the amortized cost basis of nonaccrual HFI loans. As of March 31, 2026 December 31, 2025 (dollars in thousands) Nonaccrual with No Allowance for Credit Loss Nonaccrual with an Allowance for Credit Losses Total Nonaccrual Loans Nonaccrual with No Allowance for Credit Loss Nonaccrual with an Allowance for Credit Losses Total Nonaccrual Loans Commercial $ 3,672 $ 14,382 $ 18,054 $ 3,397 $ 14,702 $ 18,099 Income producing - commercial real estate 6,716 69,945 76,661 38,275 24,262 62,537 Owner occupied - commercial real estate 5,050 — 5,050 3,199 4,738 7,937 Real estate mortgage - residential 464 — 464 579 — 579 Construction- commercial and residential 2,773 25,243 28,016 2,074 15,320 17,394 Home equity 327 189 516 333 18 351 Total (1) $ 19,002 $ 109,759 $ 128,761 $ 47,857 $ 59,040 $ 106,897 (1) Gross coupon interest income of $ 4.2 million, and $ 3.1 million would have been recorded for the three months ended March 31, 2026 and 2025, respectively, if nonaccrual loans shown above had been current and in accordance with their original terms. Interest income recognized on loans on nonaccrual status was $ 2.3 million and $ 1.6 million for the three months ended March 31, 2026 and 2025, respectively. See "Note 1 – Summary of Significant Accounting Policies" to the Consolidated Financial Statements for a description of the Company’s policy for placing loans on nonaccrual status. Eagle Bancorp, Inc First Quarter 2026 Form 10-Q 25 Table of Contents Notes to Consolidated Financial Statements | Note 4 – Loans and Allowance for Credit Losses The table below presents, by portfolio segment, an aging analysis and the recorded investments in HFI loans past due. As of March 31, 2026 (dollars in thousands) Loans 30-59 Days Past Due Loans 60-89 Days Past Due Loans 90 Days or More Past Due Total Past Due Loans Current Loans Nonaccrual Loans Total Recorded Investment in Loans Commercial $ 769 $ 379 $ — $ 1,148 $ 1,413,731 $ 18,054 $ 1,432,933 Income producing - commercial real estate 12,654 3,638 — 16,292 2,937,051 76,661 3,030,004 Owner occupied - commercial real estate — — — — 1,681,160 5,050 1,686,210 Real estate mortgage – residential 578 — — 578 34,701 464 35,743 Construction - commercial and residential — — — — 589,976 28,016 617,992 Construction - C&I (owner occupied) — — — — 87,666 — 87,666 Home equity — — — — 44,432 516 44,948 Other consumer — — — — 3,064 — 3,064 Total $ 14,001 $ 4,017 $ — $ 18,018 $ 6,791,781 $ 128,761 $ 6,938,560 As of December 31, 2025 (dollars in thousands) Loans 30-59 Days Past Due Loans 60-89 Days Past Due Loans 90 Days or More Past Due Total Past Due Loans Current Loans Nonaccrual Loans Total Recorded Investment in Loans Commercial $ 2,942 $ 44 $ — $ 2,986 $ 1,317,401 $ 18,099 $ 1,338,486 Income producing - commercial real estate 2,688 — — 2,688 3,285,493 62,537 3,350,718 Owner occupied - commercial real estate 167 12,573 — 12,740 1,581,447 7,937 1,602,124 Real estate mortgage – residential 4,544 — — 4,544 31,977 579 37,100 Construction - commercial and residential 26,942 — — 26,942 751,064 17,394 795,400 Construction - C&I (owner occupied) — — — — 108,468 — 108,468 Home equity — 39 — 39 47,058 351 47,448 Other consumer — — — — 715 — 715 Total $ 37,283 $ 12,656 $ — $ 49,939 $ 7,123,623 $ 106,897 $ 7,280,459 Loan Modifications for Borrowers Experiencing Financial Difficulty The Company evaluates all loan modifications according to the accounting guidance to determine if the modification results in a new loan or a continuation of the existing loan. Loan modifications to borrowers experiencing financial difficulties that result in a direct change in the timing or amount of contractual cash flows include situations where there is principal forgiveness, interest rate reductions, other-than-insignificant payment delays, term extensions, and combinations of the listed modifications. Modifications with terms not as favorable to the Company as the terms for comparable loans to other customers with similar collection risk who are not refinancing or restructuring a loan with the Company and which have a direct impact on cash flows are considered modified loans to borrowers experiencing financial difficulty. The Company may offer various types of modifications when restructuring a loan. Commercial and industrial loans modified in a loan restructuring often involve temporary interest-only payments, term extensions, and converting revolving credit lines to term loans. Additional collateral, a co-borrower, or a guarantor is often requested. Commercial mortgage and construction loans modified in a loan restructuring often involve reducing the interest rate for the remaining term of the loan, extending the maturity date at an interest rate lower than the current market rate for new debt with similar risk, or substituting or adding a new borrower or guarantor. Construction loans modified in a loan restructuring may also involve extending the interest-only payment period. Eagle Bancorp, Inc First Quarter 2026 Form 10-Q 26 Table of Contents Notes to Consolidated Financial Statements | Note 4 – Loans and Allowance for Credit Losses Loans modified in a loan restructuring for the Company may have the financial effect of increasing the specific allowance associated with the loan. An allowance for consumer and commercial loans that have been modified in a loan restructuring is measured based on the present value of expected future cash flows discounted at the loan's effective interest rate, the loan's observable market price, or the estimated fair value of the collateral, less any selling costs, if the loan is collateral dependent. Management exercises significant judgment in developing these estimates. Commercial and consumer loans modified in a loan restructuring are closely monitored for delinquency as an early indicator of possible future default. If loans modified in a loan restructuring subsequently default, the Company evaluates the loan for possible further loss. 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. The table below presents the amortized cost basis and the financial effect of HFI loans modified for borrowers experiencing financial difficulty. (dollars in thousands) Term Extension Combination - Term Extension and Principal Payment Delay Total Percentage of Total Loan Type Weighted Average Term and Principal Payment Extension (1) Weighted Average Interest Rate Reduction (2) For the Three Months Ended March 31, 2026 Commercial $ 7,252 $ — $ 7,252 0.5 % 9 months — % Income producing - commercial real estate 54,090 16,340 70,430 2.3 % 4 months — % Real estate mortgage - residential 4,515 — 4,515 12.6 % 14 months — % Total $ 65,857 $ 16,340 $ 82,197 For the Three Months Ended March 31, 2025 Commercial $ 3,310 $ 9,440 $ 12,750 1.1 % 12 months — % Income producing - commercial real estate — 70,296 70,296 1.8 % 5 months — % Total $ 3,310 $ 79,736 $ 83,046 (1) For loans that received multiple modifications during the year, weighted average term and principal payment extensions were calculated based on the aggregate impact of the extensions received during the period. (2) The weighted average is calculated based on the total amortized cost of loans, at the year-end, that received interest rate reduction modifications during the year. The table below presents the performance of HFI loans modified during the prior twelve months for borrowers experiencing financial difficulty. Payment Status (Amortized Cost Basis) (dollars in thousands) Current 30-89 Days Past Due 90 Days or More Past Due Nonaccrual March 31, 2026 Commercial $ 18,997 $ — $ — $ 2,581 Income producing - commercial real estate 153,404 7,159 — 7,423 Owner occupied - commercial real estate 12,659 — — — Real estate mortgage - residential 4,515 — Construction - C&I (owner occupied) — — — 8,750 Total $ 189,575 $ 7,159 $ — $ 18,754 March 31, 2025 Commercial $ 46,010 $ — $ — $ — Income producing - commercial real estate 172,099 — — 84,442 Owner occupied - commercial real estate 863 — — — Construction - commercial and residential 9,942 10,605 — — Total $ 228,914 $ 10,605 $ — $ 84,442 Eagle Bancorp, Inc First Quarter 2026 Form 10-Q 27 Table of Contents Notes to Consolidated Financial Statements | Note 4 – Loans and Allowance for Credit Losses The Company monitors loan payments on performing and nonperforming loans on an on-going basis to determine if a loan is considered to have a payment default. To determine the existence of a payment default, the Company analyzes the economic conditions that exist for each borrower and their ability to generate positive cash flow during a given loan's term. The table below presents the amortized cost basis of HFI loans that were experiencing payment default and were modified in the twelve months prior to that default for borrowers experiencing financial difficulty. Amortized Cost Basis (dollars in thousands) Term Extension Combination - Term Extension and Principal Payment Delay March 31, 2026 Commercial $ 2,581 $ — Income producing - commercial real estate 7,159 7,423 Construction - commercial and residential 1,520 7,230 Total $ 11,260 $ 14,653 March 31, 2025 Income producing - commercial real estate $ — $ 84,442 Construction - commercial and residential — 10,605 Total $ — $ 95,047 The Company individually evaluates nonaccrual loans when performing its CECL estimate to calculate the ACL. Additionally, the Company utilizes historical internal and third-party service provider sourced loss data in the determination of its PD/LGD rates applied in the calculation of its CECL estimate. Upon determination that a modified loan (or a portion of a loan) has subsequently been deemed uncollectible, the loan (or a portion of the loan) is charged off. Therefore, the amortized cost basis of the loan is reduced by the uncollectible amount and the ACL is adjusted by the same amount. Note 5 – Leases The Company accounts for leases in accordance with ASC Topic 842. A lease is defined as a contract that conveys the right to control the use of identified property, plant or equipment for a period of time in exchange for consideration. Substantially all of the leases in which the Company is the lessee comprise real estate for branch offices, ATM locations and corporate office space. Substantially all of our leases are classified as operating leases and are included in operating lease right-of-use ("ROU") assets and operating lease liabilities in the Consolidated Balance Sheet. ROU assets represent our right to use an underlying asset for the lease term and operating lease liabilities represent our obligation to make lease payments arising from the lease. ROU assets and operating lease liabilities are recognized at commencement date based on the present value of lease payments over the lease term. In determining the present value of the lease payments, we use the implicit lease rate if available. If the implicit lease rate is not available, we use the incremental borrowing rate at commencement date. The incremental borrowing rate is the rate of interest that we would have to pay to borrow on a collateralized basis over a similar term in an amount equal to the lease payments in a similar economic environment. As of March 31, 2026 and December 31, 2025, the Company had $ 27.6 million and $ 28.5 million of operating lease ROU assets respectively, and $ 34.5 million and $ 35.3 million of operating lease liabilities respectively, on the Company’s Consolidated Balance Sheet. The Company elects not to recognize ROU assets and operating lease liabilities arising from short-term leases, leases with initial terms of twelve months or less or equipment leases (deemed immaterial) on the Consolidated Balance Sheet. The leases contain options to extend or terminate the lease, which are recognized as part of the ROU assets and lease liabilities when an economic benefit to exercise the option exists and there is a 90 % probability that the Company will exercise the option. If these criteria are not met, the options are not included in our ROU assets and operating lease liabilities. As of March 31, 2026, our leases do not contain material residual value guarantees or impose restrictions or covenants related to dividends or the Company’s ability to incur additional financial obligations. Eagle Bancorp, Inc First Quarter 2026 Form 10-Q 28 Table of Contents Notes to Consolidated Financial Statements | Note 5 – Leases The tables below present lease costs and other lease information. For the Three Months Ended March 31, (dollars in thousands) 2026 2025 Lease cost: Operating lease cost (cost resulting from lease payments) $ 1,349 $ 1,892 Variable lease cost (cost excluded from lease payments) 123 115 Net lease cost $ 1,472 $ 2,007 Operating lease - operating cash flows (fixed payments) $ 1,190 $ 1,499 As of (dollars in thousands) March 31, 2026 December 31, 2025 Right-of-use assets - operating leases $ 27,569 $ 28,451 Operating lease liabilities $ 34,532 $ 35,256 Weighted average lease term - operating leases (in years) 8.97 9.12 Weighted average discount rate - operating leases 3.61 % 3.60 % The table below presents the future minimum payments for operating leases with initial or remaining terms of one year or more. (dollars in thousands) As of March 31, 2026 Twelve months ended: March 31, 2027 $ 4,932 March 31, 2028 4,922 March 31, 2029 4,785 March 31, 2030 4,272 March 31, 2031 3,865 Thereafter 18,455 Total future minimum lease payments 41,231 Amounts representing interest ( 6,699 ) Present value of net future minimum lease payments $ 34,532 Note 6 – Derivatives and Hedging Activities The Company is exposed to certain risks arising from both its business operations and economic conditions. The Company principally manages its exposures to a wide variety of business and operational risks through management of its core business activities. The Company manages economic risks, including interest rate, liquidity and credit risk primarily by managing the amount, sources and duration of its assets and liabilities and the use of derivative financial instruments. Fair Value Hedges of Interest Rate Risk During 2025, the Company utilized pay-fixed, receive-floating interest rate swaps, accounted for as fair value hedges, to protect itself against adverse fluctuations in the fair value of AFS securities attributable to changes in the designated benchmark interest rate. Adjustments were made to record the hedging instrument at fair value on the balance sheet, with changes in fair value recognized in interest income. Changes in fair value of the AFS securities attributable to changes in the hedged risk were reclassified out of other comprehensive income (loss) through interest income each period to offset changes in fair value of the hedging instrument. The Company voluntarily discontinued this fair value hedging relationship in 2025. The Company is amortizing the hedging basis adjustment over a period consistent with amortization of other discounts or premiums on the asset. The cumulative amount of fair value hedging adjustments included in the amortized cost basis of the AFS securities was $ 290 thousand as of March 31, 2026. Eagle Bancorp, Inc First Quarter 2026 Form 10-Q 29 Table of Contents Notes to Consolidated Financial Statements | Note 6 – Derivatives and Hedging Activities During the quarter ended September 30, 2025, the Company began utilizing receive-fixed, pay-floating interest rate swaps, accounted for as fair value hedges, to protect itself against adverse fluctuations in the fair value of interest-bearing deposits attributable to changes in the benchmark interest rate. Adjustments will be made to record the hedging instrument at fair value on the balance sheet, with changes in fair value recognized in interest expense. The carrying value of the interest-bearing deposits will also be adjusted through interest expense, based on changes in fair value attributable to changes in the benchmark interest rate. Cash Flow Hedges of Interest Rate Risk The Company utilizes interest rate swaps, accounted for as cash flow hedges, to protect itself against adverse fluctuations in interest payments on variable rate loans. These swaps consist of receive-fixed, pay-floating interest rate swaps used to hedge the designated benchmark interest rate. The Company designates the receive-fixed, pay-floating interest rate swap as a cash flow hedge of the risk of changes in the cash flows on the hedged transactions. These swaps will be recorded on the balance sheet at fair value and, assuming the hedging relationship qualifies as highly effective, the gain or loss on the hedging instrument will be recorded in accumulated other comprehensive income and reclassified into interest income in the same period(s) during which the hedged transactions affect earnings. Any interest accruals will flow through earnings as adjustments to interest income. Interest Rate Swaps Related to Customer Loans Interest rate derivatives not designated as hedges are not speculative and result from a service the Company provides to certain customers. The Company executes interest rate caps and swaps with commercial banking customers to facilitate their respective risk management strategies. Those interest rate swaps are simultaneously hedged by offsetting derivatives that the Company executes with a third party, such that the Company minimizes its net risk exposure resulting from such transactions. As the interest rate derivatives associated with this program do not meet the strict hedge accounting requirements, changes in the fair value of both the customer derivatives and the offsetting derivatives are recognized directly in earnings (loss). The Company entered into 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 in exchange for a fee. 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. Credit Risk Related Contingent Features The Company has agreements with each of its derivative counterparties that contain a provision where if the Company defaults on any of its indebtedness, then the Company could also be declared in default on its derivative obligations. The Company is exposed to credit risk in the event of nonperformance by the interest rate derivative counterparty. The Company minimizes this risk by entering into derivative contracts with only large, stable financial institutions, and the Company has not experienced, and does not expect, any losses from counterparty nonperformance on the interest rate derivatives. The Company monitors counterparty risk in accordance with the provisions of ASC 815, "Derivatives and Hedging" . In addition, the interest rate derivative agreements contain language outlining collateral-pledging requirements for each counterparty. As of March 31, 2026, the Company had posted $ 370 thousand of cash collateral with other financial institutions and held $ 11.6 million of cash collateral on behalf of other financial institutions. The interest rate derivative agreements detail: 1) that collateral be posted when the market value exceeds certain threshold limits associated with the secured party's exposure; 2) if the Company defaults on any of its indebtedness (including default where repayment of the indebtedness has not been accelerated by the lender), then the Company could also be declared in default on its derivative obligations; and 3) if the Company fails to maintain its status as a well-capitalized institution then the counterparty could terminate the derivative positions and the Company would be required to settle its obligations under the agreements. Eagle Bancorp, Inc First Quarter 2026 Form 10-Q 30 Table of Contents Notes to Consolidated Financial Statements | Note 6 – Derivatives and Hedging Activities The table below presents the amounts recorded on the balance sheet related to cumulative basis adjustments for fair value hedges. As of (dollars in thousands) March 31, 2026 December 31, 2025 March 31, 2026 December 31, 2025 Line Item in the Balance Sheet in Which the Hedged Item is Included Carrying Amount of the Hedged Assets (Liabilities) Cumulative Amount of Fair Value Hedging Adjustments Included in the Carrying Amount of the Hedged Assets (Liabilities) Deposits $ ( 421,950 ) $ ( 389,295 ) $ 3,050 $ 705 The table below identifies the balance sheet category and fair value of the Company’s derivative instruments. The Company has a minimum collateral posting threshold with its derivative counterparty. If the Company had breached any provisions under the agreement as of March 31, 2026, it could have been required to settle its obligations under the agreement at the termination value. As of March 31, 2026 December 31, 2025 (dollars in thousands) Notional Amount Fair Value Balance Sheet Category Notional Amount Fair Value Balance Sheet Category Derivatives in an asset position: Derivatives designated as hedging instruments: Cash flow hedges $ — $ — Other Assets $ 300,000 $ 60 Other Assets Fair value hedges — — Other Assets — — Other Assets Total hedging instruments — — 300,000 60 Derivatives not designated as hedging instruments: Interest rate swaps related to customer loans 852,066 23,553 Other Assets 808,009 24,272 Other Assets Total derivatives in an asset position $ 852,066 $ 23,553 $ 1,108,009 $ 24,332 Derivatives in a liability position: Derivatives designated as hedging instruments: Cash flow hedges $ 600,000 $ 2,711 Other Liabilities $ — $ — Other Liabilities Fair value hedges 390,000 3,201 Other Liabilities 390,000 927 Other Liabilities Total hedging instruments 990,000 5,912 390,000 927 Derivatives not designated as hedging instruments: Interest rate swaps related to customer loans 852,066 22,332 Other Liabilities 808,009 23,015 Other Liabilities Total derivatives in a liability position $ 1,842,066 $ 28,244 $ 1,198,009 $ 23,942 Eagle Bancorp, Inc First Quarter 2026 Form 10-Q 31 Table of Contents Notes to Consolidated Financial Statements | Note 6 – Derivatives and Hedging Activities The table below presents the pre-tax net gains (losses) of the Company’s designated cash flow hedges for the three months ended March 31, 2026 and 2025. The Effect of Cash Flow Hedge Accounting on Accumulated Other Comprehensive Income (Loss) Amount of Gain (Loss) Recognized in OCI Location of Gain (Loss) Recognized from Accumulated Other Comprehensive Income (Loss) into Income (Loss) Amount of Gain or (Loss) Reclassified from Accumulated OCI into Income Year Ended Amount of Gain (Loss) Reclassified from Accumulated OCI into Income (dollars in thousands) Total Included Component Excluded Component Total Included Component Excluded Component Three Months Ended March 31, 2026: Derivatives in cash flow hedging relationships: Interest rate products $ ( 2,585 ) $ ( 2,585 ) $ — Interest income $ ( 345 ) $ ( 345 ) $ — Three Months Ended March 31, 2025: Derivatives in cash flow hedging relationships: Interest rate products $ — $ — $ — Interest expense $ — $ — $ — The tables below present the effect of the Company’s derivative financial instruments on the Consolidated Statements of Operations. The Effect of Fair Value and Cash Flow Hedge Accounting on the Consolidated Statements of Operations Three Months Ended March 31, 2026 2025 (dollars in thousands) Interest Income (Expense) Total amounts of expense line items presented in the Consolidated Statements of Operations in which the effects of fair value and cash flow hedges are recorded $ ( 715 ) $ — The effect of fair value and cash flow hedging: Gain (loss) on fair value hedging relationships in Subtopic 815-20: Interest rate products: Hedged items $ ( 370 ) $ — Derivatives designated as hedging instruments 3,201 — Gain (loss) on cash flow hedging relationships in Subtopic 815-20: Interest rate products: Amount of gain (loss) reclassified from accumulated other comprehensive income (loss) into income (loss) $ ( 345 ) $ — Amount of gain (loss) reclassified from accumulated other comprehensive income into income as a result that a forecasted transaction is no longer probable of occurring — — Amount of gain (loss) reclassified from accumulated other comprehensive income (loss) into income (loss) - included component ( 345 ) — Amount of gain (loss) reclassified from accumulated other comprehensive income (loss) into income (loss) - excluded component — — Eagle Bancorp, Inc First Quarter 2026 Form 10-Q 32 Table of Contents Notes to Consolidated Financial Statements | Note 6 – Derivatives and Hedging Activities The table below presents the effect of the Company’s derivative financial instruments on the Consolidated Statements of Operations. The Effect of Derivatives Not Designated as Hedging Instruments on the Consolidated Statements of Operations (dollars in thousands) Location of Gain or (Loss) Recognized in Income on Derivative Amount of Gain or (Loss) Recognized in Income on Derivatives For the Three Months Ended March 31, 2026 2025 Derivatives Not Designated as Hedging Instruments under ASC 815-20: Interest rate products Other income / (expense) $ 421 $ ( 6 ) Note 7 – Deposits The table below presents the Bank’s deposit composition. As of (dollars in thousands) March 31, 2026 December 31, 2025 Noninterest-bearing demand $ 1,488,668 $ 1,433,952 Interest-bearing transaction 978,330 1,038,154 Savings and money market 3,286,125 3,624,813 Time deposits 2,838,376 3,036,687 Total $ 8,591,499 $ 9,133,606 The tables below represent the remaining maturity of time deposits. As of (dollars in thousands) March 31, 2026 December 31, 2025 2026 $ 1,825,180 $ 2,178,745 2027 657,937 516,925 2028 147,570 139,265 2029 79,174 75,687 2030 108,913 107,991 Thereafter 19,602 18,074 Total $ 2,838,376 $ 3,036,687 The table below represents the time deposit accounts in excess of $250 thousand. As of (dollars in thousands) March 31, 2026 December 31, 2025 Three months or less $ 410,568 $ 252,100 More than three months through six months 197,942 391,299 More than six months through twelve months 312,075 305,557 Over twelve months 438,476 521,701 Total $ 1,359,061 $ 1,470,657 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. Eagle Bancorp, Inc First Quarter 2026 Form 10-Q 33 Table of Contents Notes to Consolidated Financial Statements | Note 8 – Borrowings Note 8 – Borrowings The table below summarizes the Company’s borrowings. (dollars in thousands) Borrowings - Principal Unamortized Deferred Issuance Costs Net Borrowings Outstanding Available Capacity (1) Maturity Dates Interest Rates (2) As of March 31, 2026 Short-term borrowings: Secured borrowings: FHLB $ — $ — $ — $ 899,817 N/A — % FRB: Discount window — — — 1,184,055 N/A — % Total — — — 2,083,872 Long-term borrowings: Senior notes 77,665 ( 1,154 ) 76,511 — September 30, 2029 10.00 % Total borrowings $ 77,665 $ ( 1,154 ) $ 76,511 $ 2,083,872 As of December 31, 2025 Short-term borrowings: Secured borrowings: FHLB $ — $ — $ — $ 1,349,351 N/A — % FRB: Discount window — — — 1,373,872 N/A —% Total — — — 2,723,223 Long-term borrowings: Senior notes 77,665 ( 1,237 ) 76,428 — September 30, 2029 10.00 % Total borrowings $ 77,665 $ ( 1,237 ) $ 76,428 $ 2,723,223 (1) Available capacity on the Company's borrowings arrangements with the FHLB and the FRB comprise pledged collateral that has not been borrowed against. FHLB capacity was reduced by $ 23.0 million as of March 31, 2026 and $ 12.4 million as of December 31, 2025 due to the issuance of letters of credit. As of March 31, 2026, the Company had total additional undrawn borrowing capacity of approximately $ 3.8 billion, comprising unencumbered securities available to be pledged of approximately $ 1.7 billion and undrawn financing on pledged assets of $ 2.1 billion. (2) Represents the weighted average interest rate on customer repurchase agreements, borrowings outstanding and the coupon interest rate on the subordinated notes, which approximates the effective interest rate. There are no prepayment penalties nor unused commitment fees on any of the Company’s borrowing arrangements. The Company used to offer a sweep account, or "customer repurchase agreement," allowing qualifying businesses to earn interest on short-term excess funds, which were not suited for either a certificate of deposit or a money market account. The Company discontinued this product offering in November 2025. Senior Notes 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, the carrying value of these 2029 Senior Notes was $ 76.5 million which reflected $ 1.2 million in unamortized deferred financing costs that are being amortized over the life of the 2029 Senior Notes. Eagle Bancorp, Inc First Quarter 2026 Form 10-Q 34 Table of Contents Notes to Consolidated Financial Statements | Note 9 – Net Income (Loss) per Common Share Note 9 – Net Income (Loss) per Common Share The table below displays the calculation of net income (loss) per common share. For the Three Months Ended March 31, (dollars and shares in thousands, except per share data) 2026 2025 Basic: Net income (loss) $ 14,718 $ 1,675 Average common shares outstanding 30,422 30,275 Basic net income (loss) per common share $ 0.48 $ 0.06 Diluted: Net income (loss) $ 14,718 $ 1,675 Average common shares outstanding 30,422 30,275 Adjustment for common share equivalents 118 129 Average common shares outstanding-diluted 30,540 30,404 Diluted net income (loss) per common share (1) $ 0.48 $ 0.06 Anti-dilutive shares 39 136 (1) For any periods ending with a net loss, anti-dilutive financial instruments are excluded from the calculation of GAAP diluted earnings per share. Basic net income (loss) per share is computed by dividing income (loss) available to common stockholders by the weighted-average number of common shares outstanding for the period. Diluted net income (loss) per share reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock or resulted in the issuance of common stock that then shared in the net income (loss) of the Company. The computation of diluted per share does not assume conversion or exercise of securities that would have an anti-dilutive effect on net income (loss) per share. Securities issued by the Company that could potentially dilute net income (loss) per share in future periods include stock options and restricted stock. To calculate diluted net income (loss) per share, the Company utilizes the treasury stock method which results in only an incremental number of shares added to shares outstanding during the period. Eagle Bancorp, Inc First Quarter 2026 Form 10-Q 35 Table of Contents Notes to Consolidated Financial Statements | Note 10 – Other Comprehensive Income (Loss) Note 10 – Other Comprehensive Income (Loss) The table below presents the components of other comprehensive income (loss). (dollars in thousands) Before Tax Tax Effect Net of Tax Three Months Ended March 31, 2026 Unrealized gain (loss) on securities available-for-sale $ ( 70 ) $ ( 9 ) $ ( 79 ) Amortization adjustment for (gain) loss on fair value hedging relationships 7 — 7 Reclassification adjustment for net realized (gain) loss included in net income (loss) ( 3 ) — ( 3 ) Total unrealized gain (loss) on securities available-for-sale ( 66 ) ( 9 ) ( 75 ) Amortization of unrealized gain (loss) on securities transferred to held-to-maturity 1,552 ( 357 ) 1,195 Total unrealized gain (loss) on securities held-to-maturity 1,552 ( 357 ) 1,195 Unrealized gain (loss) on derivatives ( 3,042 ) 748 ( 2,294 ) Reclassification adjustment for (gain) loss on cash flow hedging relationships 345 ( 85 ) 260 Total unrealized gain (loss) on derivatives ( 2,697 ) 663 ( 2,034 ) Other comprehensive income (loss) $ ( 1,211 ) $ 297 $ ( 914 ) Three Months Ended March 31, 2025 Unrealized gain (loss) on securities available-for-sale $ 25,673 $ ( 6,322 ) $ 19,351 Reclassification adjustment for net realized (gain) loss included in net income (loss) ( 4 ) 1 ( 3 ) Total unrealized gain (loss) on securities available-for-sale 25,669 ( 6,321 ) 19,348 Amortization of unrealized gain (loss) on securities transferred to held-to-maturity 1,565 ( 361 ) 1,204 Unrealized gain (loss) on derivatives ( 24 ) 6 ( 18 ) Other comprehensive income (loss) $ 27,210 $ ( 6,676 ) $ 20,534 The table below presents the changes in each component of accumulated other comprehensive income (loss), net of tax. (dollars in thousands) Available-for-Sale Securities Held-to-Maturity Securities Derivatives Accumulated Other Comprehensive Income (Loss) For the Three Months Ended March 31, 2026 Balance at beginning of period $ ( 59,486 ) $ ( 29,757 ) $ 84 $ ( 89,159 ) Other comprehensive income (loss) before reclassifications ( 79 ) — ( 2,294 ) ( 2,373 ) Amortization of unrealized loss on securities transferred to held-to-maturity — 1,195 — 1,195 Amounts reclassified from accumulated other comprehensive income (loss) 4 — 260 264 Net other comprehensive income (loss) during period ( 75 ) 1,195 ( 2,034 ) ( 914 ) Balance at end of period $ ( 59,561 ) $ ( 28,562 ) $ ( 1,950 ) $ ( 90,073 ) For the Three Months Ended March 31, 2025 Balance at beginning of period $ ( 106,852 ) $ ( 34,639 ) $ 18 $ ( 141,473 ) Other comprehensive income (loss) before reclassifications 19,351 — ( 18 ) 19,333 Amortization of unrealized loss on securities transferred to held-to-maturity — 1,204 — 1,204 Amounts reclassified from accumulated other comprehensive income (loss) ( 3 ) — — ( 3 ) Net other comprehensive income (loss) during period 19,348 1,204 ( 18 ) 20,534 Balance at end of period $ ( 87,504 ) $ ( 33,435 ) $ — $ ( 120,939 ) Eagle Bancorp, Inc First Quarter 2026 Form 10-Q 36 Table of Contents Notes to Consolidated Financial Statements | Note 10 – Other Comprehensive Income (Loss) The table below presents the amounts reclassified out of each component of accumulated other comprehensive income (loss). Amount Reclassified from Accumulated Other Comprehensive Income (Loss) Affected Line Item in the Statement Where Net Income (Loss) is Presented For the Three Months Ended March 31, (dollars in thousands) 2026 2025 Realized gain (loss) on sale of investment securities $ 3 $ 4 Net gain (loss) on sale of investment securities Gain (loss) on fair value hedging relationships - AFS securities ( 7 ) — Interest income Gain (loss) on cash flow hedging relationships - Loans ( 345 ) — Interest income Income tax benefit (expense) 85 ( 1 ) Income tax expense Total $ ( 264 ) $ 3 Net Income (Loss) Note 11 – Fair Value Measurements The fair value of an asset or liability is the price that would be received to sell that asset or paid to transfer that liability in an orderly transaction occurring in the principal market (or most advantageous market in the absence of a principal market) for such asset or liability. In estimating fair value, the Company utilizes valuation techniques that are consistent with the market approach, the income approach and/or the cost approach. Such valuation techniques are consistently applied. Inputs to valuation techniques include the assumptions that market participants would use in pricing an asset or liability. ASC 820, "Fair Value Measurements and Disclosures" , establishes a fair value hierarchy for valuation inputs that gives the highest priority to quoted prices in active markets for identical assets or liabilities and the lowest priority to unobservable inputs. The fair value hierarchy is as follows: Level 1 Quoted prices in active exchange markets for identical assets or liabilities. Level 2 Observable inputs other than Level 1 including quoted prices for similar assets or liabilities, quoted prices in less active markets or other observable inputs that can be corroborated by observable market data; also includes derivative contracts whose value is determined using a pricing model with observable market inputs or inputs that can be derived principally from or corroborated by observable market data. This category generally includes certain U.S. Government and agency securities, corporate debt securities, and derivative instruments. Level 3 Unobservable inputs supported by little or no market activity for financial instruments whose value is determined using pricing models, discounted cash flow methodologies or similar techniques, as well as instruments for which the determination of fair value requires significant management judgment or estimation; also includes observable inputs for single dealer nonbinding quotes not corroborated by observable market data. This category generally includes certain private equity investments, retained interests from securitizations and certain collateralized debt obligations. Eagle Bancorp, Inc First Quarter 2026 Form 10-Q 37 Table of Contents Notes to Consolidated Financial Statements | Note 11 – Fair Value Measurements Assets and Liabilities Recorded at Fair Value on a Recurring Basis The table below presents the recorded amount of assets and liabilities measured at fair value on a recurring basis. As of March 31, 2026 (dollars in thousands) Quoted Prices (Level 1) Significant Other Observable Inputs (Level 2) Significant Other Unobservable Inputs (Level 3) Total Fair Value Assets: Investment securities available-for-sale: U.S. agency securities $ — $ 315,063 $ — $ 315,063 Residential mortgage-backed securities — 539,310 — 539,310 Commercial mortgage-backed securities — 66,116 — 66,116 Municipal bonds — 7,872 — 7,872 Corporate bonds — 1,953 — 1,953 Derivative assets — 23,553 — 23,553 Total assets measured at fair value on a recurring basis $ — $ 953,867 $ — $ 953,867 Liabilities: Derivative liabilities $ — $ 28,244 $ — $ 28,244 Total liabilities measured at fair value on a recurring basis $ — $ 28,244 $ — $ 28,244 As of December 31, 2025 (dollars in thousands) Quoted Prices (Level 1) Significant Other Observable Inputs (Level 2) Significant Other Unobservable Inputs (Level 3) Total Fair Value Assets: Investment securities available-for-sale: U.S. agency securities — 337,708 — 337,708 Residential mortgage-backed securities — 562,504 — 562,504 Commercial mortgage-backed securities — 66,545 — 66,545 Municipal bonds — 8,046 — 8,046 Corporate bonds — 1,967 — 1,967 Derivative assets — 24,332 — 24,332 Total assets measured at fair value on a recurring basis $ — $ 1,001,102 $ — $ 1,001,102 Liabilities: Derivative liabilities $ — $ 23,942 $ — $ 23,942 Total liabilities measured at fair value on a recurring basis $ — $ 23,942 $ — $ 23,942 Investment securities available-for-sale: AFS securities are recorded at fair value on a recurring basis. Fair value measurement is based upon quoted prices, if available. If quoted prices are not available, fair value is measured using independent pricing models or other model-based valuation techniques such as the present value of future cash flows, adjusted for the security’s credit rating, prepayment assumptions and other factors such as credit loss assumptions. Level 2 securities includes certain U.S. treasury bonds, U.S. agency debt securities, MBS issued by Government Sponsored Entities and municipal bonds. Securities classified as Level 3 include securities in less liquid markets, for which the carrying amounts approximate the fair value. Credit risk participation agreements : The Company enters into 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. Accordingly, RPAs fall within Level 2. Eagle Bancorp, Inc First Quarter 2026 Form 10-Q 38 Table of Contents Notes to Consolidated Financial Statements | Note 11 – Fair Value Measurements Interest rate derivatives: The Company entered into an interest rate derivative agreement with an institutional counterparty, under which the Company will receive cash if and when market rates exceed the derivatives' strike rate. The fair value of the derivative is calculated by determining the total expected asset or liability exposure of the derivatives. Total expected exposure incorporates both the current and potential future exposure of the derivative, derived from using observable inputs, such as yield curves and volatilities. Accordingly, the derivative falls within Level 2. Assets and Liabilities Recorded at Fair Value on a Nonrecurring Basis The Company measures certain assets at fair value on a nonrecurring basis and the following is a general description of the methods used to value such assets. Loans: The fair value of individually assessed loans and HFS loans is estimated using one of several methods, including the collateral value, market value of similar debt, enterprise value, liquidation value and discounted cash flows. Those individually assessed loans not requiring a specific allowance represent loans for which the fair value of expected repayments or collateral exceed the recorded investment in such loans. As of March 31, 2026, substantially all of the Company’s individually evaluated loans were evaluated based upon the fair value of the collateral. In accordance with ASC Topic 820, individually evaluated loans and HFS loans where an allowance is established based on the fair value of collateral, i.e., those that are collateral dependent, require classification in the fair value hierarchy. When the fair value of the collateral is based on an observable market price, the Company records the loan as nonrecurring Level 2. When management determines the fair value of the collateral based on the appraised value and there is no observable market price, the Company records the loan as nonrecurring Level 3. Other real estate owned ("OREO") : OREO is initially recorded at fair value less estimated selling costs. Fair value is based upon independent market prices, appraised values of the collateral or management’s estimation of the value of the collateral, which the Company classifies as a Level 3 valuation. The table below presents assets measured at fair value on a nonrecurring basis. There were no liabilities measured at fair value on a non-recurring basis as of March 31, 2026 and December 31, 2025. As of March 31, 2026 (dollars in thousands) Quoted Prices (Level 1) Significant Other Observable Inputs (Level 2) Significant Other Unobservable Inputs (Level 3) Total Fair Value Individually assessed loans: Commercial $ — $ — $ 10,420 $ 10,420 Income producing - commercial real estate — — 54,150 54,150 Owner occupied - commercial real estate — — 5,052 5,052 Real estate mortgage - residential — — 564 564 Construction - commercial and residential — — 20,293 20,293 Consumer — — 370 370 Loans held for sale — — 55,702 55,702 Other real estate owned — — 2,059 2,059 Total assets measured at fair value on a nonrecurring basis $ — $ — $ 148,610 $ 148,610 Eagle Bancorp, Inc First Quarter 2026 Form 10-Q 39 Table of Contents Notes to Consolidated Financial Statements | Note 11 – Fair Value Measurements As of December 31, 2025 (dollars in thousands) Quoted Prices (Level 1) Significant Other Observable Inputs (Level 2) Significant Other Unobservable Inputs (Level 3) Total Fair Value Individually assessed loans: Commercial $ — $ — $ 8,580 $ 8,580 Income producing - commercial real estate — — 59,655 59,655 Owner occupied - commercial real estate — — 3,695 3,695 Real estate mortgage - residential — — 579 579 Construction - commercial and residential — — 14,460 14,460 Consumer — — 333 333 Loans held for sale — — 90,650 90,650 Other real estate owned — — 2,059 2,059 Total assets measured at fair value on a nonrecurring basis $ — $ — $ 180,011 $ 180,011 As shown in the table above, certain assets are measured at fair value on a nonrecurring basis in accordance with GAAP. Adjustments to the fair value of these assets usually result from the application of lower-of-cost-or-fair value accounting or write-downs of individual assets after they are evaluated for impairment. The primary assets accounted for at fair value on a nonrecurring basis are related to collateral-dependent loans that are individually assessed and other real estate owned. For the collateral-dependent loans and other real estate owned, the Company measures the fair value utilizing a market valuation approach, based on an appraisal conducted by an independent, licensed appraiser. Management may discount the value from the appraisal in determining the fair value if, based on its understanding of the market conditions, the collateral had been impaired below the appraised value (Level 3). For loans that are not collateral dependent, the Company uses an income approach, specifically, the discounted cash flow method. The continuing payments are discounted over the expected life at the loan’s original contract rate and include adjustments for risk of default. Fair Value of Financial Instruments The Company discloses fair value information about financial instruments for which it is practicable to estimate the value, whether or not such financial instruments are recognized on the balance sheet. Fair value is the amount at which a financial instrument could be exchanged in a current transaction between willing parties, other than in a forced sale or liquidation, and is best evidenced by quoted market price, if one exists. Quoted market prices, if available, are shown as estimates of fair value. Because no quoted market prices exist for a portion of the Company’s financial instruments, the fair value of such instruments has been derived based on management’s assumptions with respect to future economic conditions, the amount and timing of future cash flows and estimated discount rates. Different assumptions could significantly affect these estimates. Accordingly, the net realizable value could be materially different from the estimates presented below. In addition, the estimates are only indicative of individual financial instrument values, including in certain cases, the Company's estimation of exit pricing, and should not be considered an indication of the fair value of the Company taken as a whole. Eagle Bancorp, Inc First Quarter 2026 Form 10-Q 40 Table of Contents Notes to Consolidated Financial Statements | Note 11 – Fair Value Measurements The table below presents the estimated fair values of the Company’s financial instruments. Fair Value Measurements (dollars in thousands) Carrying Value Fair Value Quoted Prices (Level 1) Significant Other Observable Inputs (Level 2) Significant Other Unobservable Inputs (Level 3) As of March 31, 2026 Assets Cash and due from banks $ 12,626 $ 12,626 $ 12,626 $ — $ — Interest-bearing deposits with other banks 566,733 566,733 — 566,733 — Investment securities available-for-sale 930,314 930,314 — 930,314 — Investment securities held-to-maturity 841,273 757,238 — 757,238 — Federal Reserve and Federal Home Loan Bank stock 27,685 N/A — — — Loans held for sale 55,702 55,702 — 55,702 Loans held for investment 6,938,560 6,784,673 — — 6,784,673 Bank owned life insurance 339,844 339,844 — 339,844 — Annuity investment 11,796 11,796 — 11,796 — Interest rate product 23,553 23,553 — 23,553 — Accrued interest receivable 38,823 38,823 — 38,823 — Liabilities Noninterest-bearing deposits 1,488,668 1,488,668 — 1,488,668 — Interest-bearing deposits 4,264,455 4,264,455 — 4,264,455 — Time deposits 2,838,376 2,844,719 — 2,844,719 — Long-term borrowings 76,511 81,167 — 81,167 — Interest rate product 28,244 28,244 — 28,244 — Accrued interest payable 8,726 8,726 — 8,726 — As of December 31, 2025 Assets Cash and due from banks $ 11,692 $ 11,692 $ 11,692 $ — $ — Interest-bearing deposits with other banks 684,001 684,001 — 684,001 — Investment securities available-for-sale 976,770 976,770 — 976,770 — Investment securities held-to-maturity 854,780 774,947 — 774,947 — Federal Reserve and Federal Home Loan Bank stock 28,327 N/A — — — Loans held for sale 90,650 90,650 — 90,650 Loans held for investment 7,280,459 7,093,276 — — 7,093,276 Bank owned life insurance 335,177 335,177 — 335,177 — Annuity investment 12,061 12,061 — 12,061 — Interest rate product 24,332 24,332 — 24,332 — Accrued interest receivable 41,373 41,373 — 41,373 — Liabilities Noninterest-bearing deposits 1,433,952 1,433,952 — 1,433,952 — Interest-bearing deposits 4,662,967 4,662,967 — 4,662,967 — Time deposits 3,036,687 3,050,951 — 3,050,951 — Long-term borrowings 76,428 80,329 — 80,329 — Interest rate product 23,942 23,942 — 23,942 — Accrued interest payable 10,798 10,798 — 10,798 — Eagle Bancorp, Inc First Quarter 2026 Form 10-Q 41 Table of Contents Notes to Consolidated Financial Statements | Note 12 – Segment Reporting Note 12 – Segment Reporting The Company has one reporting unit, one operating segment and, consequently, a single reportable segment. The Chief Executive Officer, who is the Company’s chief operating decision maker ("CODM"), monitors revenue streams and other information provided about the company’s products and services offered, primarily banking operations. The information provided to the CODM is presented on an aggregated entity-level basis, which is consistent with the accompanying Consolidated Financial Statements presented in this Form 10-Q. The CODM evaluates the financial performance of the Company’s business by evaluating revenue streams, significant expenses, and budget to actual results in assessing operating results and in allocating resources, but profitability is only determined at the entity level. The CODM uses revenue streams to evaluate product pricing and significant expenses to assess performance and evaluate return on assets. The CODM uses consolidated net income to benchmark the company against its competitors. The benchmarking analysis coupled with monitoring of budget to actual results are used in assessing performance and allocating resources. Interest income and fees on loans, investments, and deposits provide the majority of revenues in the Company's operation. Interest expense, provisions for credit losses, and payroll provide the significant expenses in the Company's operations. All of the Company's income and expenses are included in the accompanying Consolidated Financial Statements presented in this Form 10-Q. All of the Company’s operations are domestic. Note 13 – Legal Contingencies From time to time, the Company and its subsidiaries are involved in various legal proceedings incidental to their business in the ordinary course, including matters in which damages in various amounts are claimed, as well as regulatory and governmental investigations and inquiries that could result in penalties, fines or other sanctions against the Company. Based on information currently available, the Company does not believe that the liabilities (if any) resulting from such matters will have a material effect on the financial position of the Company. However, considering inherent uncertainties involved in such matters, ongoing legal expenses or an adverse outcome in one or more of these matters could materially and adversely affect the Company's financial condition, results of operations or cash flows in any particular reporting period, as well as its reputation. Under ASC 450, the Company accrues for a loss contingency when the loss is probable and reasonably estimable. The Company discloses the matter if a material loss is at least reasonably possible. Under ASC 450, a loss contingency is "reasonably possible" if "the chance of the future event or events occurring is more than remote but less than likely", and a loss contingency is "remote" if "the chance of the future event or events occurring is slight." The Company is cooperating with an ongoing investigation by the U.S. Attorney’s Office for the Middle District of Pennsylvania into, among other things, the Company’s anti-money laundering controls and the Company’s relationship with a former customer who pleaded guilty to a charge of bank fraud in 2020. The Company is engaged in advanced discussions with the U.S. Attorney’s Office regarding a potential resolution of the investigation, but there can be no assurance that these discussions will lead to a resolution. In light of the advanced discussions for this matter, the Company accrued a provision of $ 10 million for the fourth quarter of 2025. Refer to Note 19 – Commitments and Contingent Liabilities in the Company's Annual Report on Form 10-K for the year ended December 31, 2025. Eagle Bancorp, Inc First Quarter 2026 Form 10-Q 42 Table of Contents Management's Discussion and Analysis