Eagle Bancorp slides as higher bad loan provisions hit profit

Eagle Bancorp

24/04/2025 18:37

** Regional lender Eagle Bancorp's EGBN.O shares slide 10.9% to $18.89

** EGBN late on Wednesday reported Q1 profit well below Wall Street expectations, after beating estimates for the past three quarters

** Profit took a hit as the bank set aside more funds for bad loans due to weakness in its office portfolio

** Valuation risk in our office portfolio remains a concern and was the primary driver of the provision for credit losses, Chief Financial Officer Eric Newell says

** Piper Sandler says while the results didn't show the improvement it was hoping for, it thinks investors concerns around credit are reflected in the stock

** All three brokerages covering the stock rate it "hold"; median PT $25 - data compiled by LSEG

** As of last close, EGBN shares down 18.6% YTD

 (Reporting by Arasu Kannagi Basil in Bengaluru)

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