Allowance for credit losses increased to $183 million, covering total loans at 2.38%, up 75 basis points from prior quarter.
Book value per share decreased $1.96 to $39.03.
Eagle Bancorp reported a net loss of $69.8 million or $2.30 per share in Q2 2025, compared to net income of $1.7 million or $0.06 per share in the prior quarter.
Net interest income rose to $67.8 million, benefiting from lower deposit and borrowing costs, reduced short-term borrowings, and an additional day in the quarter.
Noninterest expense decreased by $2 million to $43.5 million, attributed to lower legal, accounting, and professional fees.
Noninterest income declined to $6.4 million from $8.2 million due to a $1.9 million loss from a repositioning trade in the investment portfolio.
Nonperforming loans increased to $226.4 million, a net increase of $26 million for the quarter, with nonperforming assets to total assets at 2.16%, up 37 basis points.
Pre-provision net revenue increased by $2.3 million to $30.7 million, driven by higher net interest income and lower noninterest expenses.
Tier 1 leverage ratio decreased 48 basis points to 10.63%, common equity Tier 1 ratio decreased 60 basis points to 14.01%, and tangible common equity ratio increased 18 basis points to 11.18%.
Adjusted EBITDA increased to $93 million, up approximately 8% year-over-year, with an adjusted EBITDA margin of 40.3%.
Adjusted EPS of $0.89 was up 7% year-over-year, driven by strong adjusted EBITDA growth and lower interest expense, partially offset by higher tax expense and operating depreciation and amortization.
Liquidity remains strong at approximately $485 million as of June 30.
Operating cash flow for the first half of the year was approximately $86 million.
Revenue for the second quarter was $230 million, an 8% increase over the prior year, while constant currency revenue was approximately $233 million, representing growth of 10%.
Segment results: Merchant Acquiring revenue grew 4% year-over-year to $47.3 million with adjusted EBITDA margin of 42.3%. Payment Services Puerto Rico revenue increased 4% to $56.4 million with adjusted EBITDA margin of 58.5%. Latin America Payments & Solutions revenue was $86.1 million, up 15% year-over-year or 20% constant currency, with adjusted EBITDA margin of 27.1%. Business Solutions revenue increased 4% to $64.5 million but adjusted EBITDA declined 13% due to prior year nonrecurring project impact.
Dafinchi