Eagle Bancorp slides after bigger-than-expected Q3 loss, dividend cut

Eagle Bancorp

23/10/2025 14:19

** Community bank Eagle Bancorp's EGBN.O shares slide 7% to $18 premarket

** Late Wednesday, EGBN reported a bigger-than-expected Q3 loss and slashed its dividend to a penny

** Credit weakness within the bank's office portfolio has been a top concern for a couple of years now

** Piper Sandler says the steeper loss appears to be a function of EGBN acting quicker on addressing stressed office credits for further loan disposals

** "Following an independent review of our loan portfolio and expanded supplemental internal analysis, we took actions to reduce valuation risk in the office portfolio" - EGBN CEO Susan Riel says

** Separately, EGBN chief credit officer Kevin Geoghegan has decided to resign from his position, effective December 31

** "While we think what management says on the 10am call will matter, if the stock opens weak, we think this would create a good buying opportunity for investors, given what we viewed this quarter as largely a ripping off of the band-aid," Piper Sandler says

** As of last close, EGBN stock down 25.5% YTD

(Reporting by Arasu Kannagi Basil in Bengaluru)

((ArasuKannagi.Basil@thomsonreuters.com;))