Eagle Bancorp (2ZI) Q3 2026 Earnings Report
DE:2ZI Q3 2026 EPS Results
- Actual EPS
- EUR 0.71
- Consensus EPS
- EUR 0.31
- Beat/Miss
- Beat by +EUR 0.40
- One Year Ago EPS
- -EUR 1.98
DE:2ZI Q3 2026 Revenue Results
- Actual Revenue
- EUR 117.27M
- Expected Revenue
- EUR 64.18M
- Beat/Miss
- Beat by +EUR 53.09M
- YoY Revenue Growth
- -13.90%
Earnings Announcement Details
- Quarter
- Q3 2026
- Date
- 10/21/2026
- Time
- After Close
- Conference Call
- Wednesday, October 21, 2026
DE:2ZI Upcoming Earnings
Eagle Bancorp's next earnings date is estimated for January 27, 2027, based on past reporting schedules.
Q3 2026 Earnings Call Audio
DE:2ZI Q3 2026 Earnings Call
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Q3 2026 Earnings Slide Deck
Q3 2026 Earnings Call Summary
Earnings Call Sentiment|Positive
The call was predominantly positive. Earnings, net interest margin, capital, funding mix, credit inflows, criticized and classified loans, delinquencies, and business-development activity all improved or showed encouraging momentum. The main challenges were higher nonperforming assets tied to one multifamily relationship, a smaller balance sheet, sequential declines in net interest income and pre-provision net revenue, higher expenses from hiring and investments, continued CRE runoff, and elevated credit-risk levels. Management nevertheless expressed confidence that loan and deposit growth, stronger pipelines, and improving credit trends would support better operating performance beginning in the fourth quarter.
Company Guidance
Eagle expects pre provision net revenue to increase from third quarter levels in the fourth quarter, average loans and deposits to grow in the fourth quarter and continue growing in 2027, and measured net loan growth beginning in the fourth quarter; approximately $2.8 million of the quarter's expense increase is not expected to remain in the fourth quarter run rate. Management expects more of the same in the fourth quarter for declining criticized and classified assets, said criticized and classified loans should be much improved from $648.4 million at September 30 by year-end, and said a 3-handle, meaning hundreds of millions of dollars, around the end of the second quarter would be the goal, with something around $400 million considered pretty good performance. For 2027, the net interest margin outlook is 2.70% to 3.05%, based partly on about $350 million of investment-portfolio roll off, while the outlook does not include assumptions for future provision expense, charge offs, loan sales, or other credit related items.
- Net Income and Earnings per Share Increased SignificantlyThird quarter net income was $24.2 million, or $0.79 per diluted share, compared with $6.9 million, or $0.23 per diluted share, in the second quarter. The increase primarily reflected an $18.6 million reduction in provision expense and a $5.3 million income tax benefit related to a state tax refund.
- Net Interest Margin Expanded for the Third Consecutive QuarterNet interest margin expanded 8 basis points to 2.6%, marking the third consecutive quarterly increase. Cost of funds declined to 2.75%.
- Provision Expense and Net Charge-Offs DeclinedProvision expense declined to $2.8 million from $21.4 million in the second quarter. Net charge-offs were $4.2 million, or 25 basis points annualized, down from $47.9 million in the second quarter; the current quarter included a $3.4 million recovery.
- Criticized and Classified Loans Continued to DeclineCriticized and classified loans declined by $111 million during the quarter and were down $448 million, or 41%, from a year ago. Balances held for sale totaled $648.4 million at September 30, representing 54% of Tier 1 capital, compared with approximately $1.1 billion, or 90% of Tier 1 capital, at the end of the third quarter of 2025.
- New Credit Problem Inflows Fell SharplyInflows into criticized and classified loans declined to $55.7 million, down 74% from the second quarter and more than 87% from the $445 million reported a year ago. This was the lowest level since last year's loan review, with no concentration in any single asset class.
- Credit Migration and Delinquency Metrics ImprovedDuring the quarter, $40.7 million of loans were upgraded to pass from criticized and classified. Special mention balances declined 29% to $195.1 million, watch balances were down more than 50% from their peak, and 30- to 89-day past dues declined from $44.1 million at June 30 to $0.4 million at September 30.
- Held-for-Sale Balances DeclinedHeld-for-sale balances declined to $13.5 million from $49.7 million, with no new transfers during the quarter. Management said loan sales remain a tool it may deploy when they are the fastest and cheapest way to exit a problem loan.
- Brokered Funding Reliance Was ReducedBrokered deposits declined by $348 million during the quarter. Core deposits increased by $197 million, supporting management's longer-term objective of building a larger base of core relationship deposits.
- Commercial and Industrial Deposit and Loan Momentum Remained PositiveC&I deposits grew $101.5 million, or 5.9%, during the quarter, and C&I loans were up 20% year over year. Management said the C&I pipeline remained strong and stable to growing.
- Capital and Tangible Book Value Continued to BuildCET1 increased to 14.99%, tangible common equity increased to 12.24%, and Tier 1 leverage increased to 12.08%. Tangible book value per share rose to $38 and grew each quarter this year.
- Balance Sheet Repositioning Improved Portfolio CompositionManagement said the repositioning reduced higher-risk exposures and improved portfolio composition. More than half of the loans that paid off were criticized or classified, leaving a smaller but stronger and better-balanced portfolio from which to grow.
- Loan Pipeline Strengthened and Growth Is Expected to ResumePipeline activity strengthened, particularly in commercial real estate, and management expects the momentum to support measured net loan growth beginning in the fourth quarter. Average loans and deposits are expected to grow in the fourth quarter and continue growing in 2027.
- Fourth-Quarter Pre-Provision Net Revenue Outlook ImprovedManagement expects pre-provision net revenue to increase from third-quarter levels in the fourth quarter, supported by production capacity added through recent hiring and expected growth in average loans and deposits.
- Commercial Real Estate Pipeline Became More DiverseManagement reported opportunities in for-sale residential, industrial, retail, new multifamily, and office-to-multifamily conversions. The pipeline was described as diverse across asset types and geography.
- Multifamily Loss Content Was Described as Lower Than OfficeManagement stated that $130 million of criticized and classified resolution during the quarter resulted in approximately a 3% charge-off relationship, compared with a weighted average loss rate approaching 50% for office. Management said multifamily properties generally had revenue, occupancy in the 90s, and strong senior positions supporting potential remargining, refinancing, or liquidation outcomes.
- Stress Testing Identified Potential Rate-Sensitive CreditsThe bank has reviewed 80% to 90% of balances using interest-rate increases of 25, 50, and 100 basis points to evaluate debt-service coverage. Credits approaching or falling below a 1.0 debt-service coverage ratio were described as being almost entirely classified as watch, special mention, or substandard, and management said watch credits did not increase during the quarter.
- Strategic Hiring Expanded Commercial Banking CapabilitiesThe bank added experienced bankers and leaders across commercial banking, commercial real estate, Baltimore, and other areas. New hires included a Baltimore market executive, a senior C&I relationship manager, CRE professionals, and a chief people officer. Management said early business-development activity was encouraging and expected the momentum to continue through the fourth quarter and well into 2027.
- Core Relationship Deposit Growth ContinuedThe 25 new relationships brought in during 2025 contributed approximately $50 million of new deposits in 2026. Management said the trajectory for new primary relationships remained stable from the prior year and expected core relationship deposits to continue growing over a trailing 12-month period.
- Additional Deposit and Treasury Management Initiatives Are PlannedManagement is working to recruit treasury management and deposit-gathering business development personnel, with some activity expected in the fourth quarter. Management also expects to finalize a first national business opportunity and identify a leader for it, with progress expected early next year.
- 2027 Net Interest Margin Outlook Was ProvidedManagement initially expects 2027 net interest margin to be in a range of 2.70% to 3.05%. Potential contributors discussed included the forward interest-rate curve, reinvestment of investment-portfolio cash flows, approximately $350 million of investment-portfolio roll-off currently earning 2% that could be reinvested at higher yields, and the composition and spreads of new loans.
- Potential Future Capital Deployment Was IdentifiedManagement said growth could be one use of capital and capital return could be another over time. The bank is not taking capital actions today, but intends to deploy capital where it can produce attractive risk-adjusted returns and, when appropriate, return excess capital to shareholders.
- Residential Real Estate Purchases Increased Asset YieldThe bank purchased residential real estate assets at par that had previously been earning 2% and are now earning 6%. Management said it might do a little more of this in the fourth quarter.
DE:2ZI Earnings History
| Report Date | Fiscal Quarter | Forecast / EPS | Last Year's EPS | EPS YoY Change | Press Release |
|---|---|---|---|---|---|
| Jan 27, 2027 | 2026 (Q4) | 0.45- | 0.22 | ― | ― |
| Oct 21, 2026 | 2026 (Q3) | 0.310.71 | -1.98 | 135.59% (+2.69) | |
| Jul 22, 2026 | 2026 (Q2) | 0.310.21 | -2.06 | 110.00% (+2.26) | |
| Apr 22, 2026 | 2026 (Q1) | 0.260.43 | 0.05 | 700.00% (+0.38) | |
| Jan 21, 2026 | 2025 (Q4) | -0.090.22 | 0.45 | -50.00% (-0.22) | |
| Oct 23, 2025 | 2025 (Q3) | -0.28-1.98 | 0.64 | -408.33% (-2.63) | |
| Jul 23, 2025 | 2025 (Q2) | 0.39-2.06 | 0.6 | -443.28% (-2.66) | |
| Apr 23, 2025 | 2025 (Q1) | 0.430.05 | -0.01 | 700.00% (+0.06) | |
| Jan 22, 2025 | 2024 (Q4) | 0.440.45 | 0.6 | -25.37% (-0.15) | |
| Oct 23, 2024 | 2024 (Q3) | 0.390.64 | 0.81 | -20.88% (-0.17) |
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat Missed
