Eagle Bancorp, Inc. Securities Lawsuit Investigation

Shamis & Gentile P.A., a law firm that advocates for investors who are victims of securities fraud, is investigating potential claims against Eagle Bancorp, Inc. (EGBN).

If you purchased or held Eagle Bancorp securities and suffered losses, you may be eligible to join this securities investigation and seek compensation.

About Eagle Bancorp, Inc.

Eagle Bancorp is a regional financial holding company that operates through its principal subsidiary, EagleBank. The company provides commercial and consumer banking services, including loans, deposit accounts, and other financial products, primarily in the Washington, D.C. metropolitan area.

Concerns Under Investigation

Lawyers are investigating whether Eagle Bancorp may have made misleading statements or omitted material information regarding its financial condition, risk management, and the true extent of its exposure to troubled office loans during the period from Jan. 22, 2025 through Jul. 23, 2025.

A key focus is on the company’s public statements. On Jan. 22, 2025, Eagle Bancorp released its fourth quarter 2024 results. CEO Susan Riel emphasized “enhanced transparency around our CRE portfolio” and a commitment to “build on… improvements,” while only abstractly acknowledging valuation risk. At the same time, CFO Eric Newell disclosed that a single $74.9 million CRE loan had just become non-accrual and that allowance coverage was only 1.44% of loans. Attorneys might examine whether these statements adequately reflected the company’s credit risks, especially given the subsequent financial deterioration.

The investigation could also focus on the first quarter 2025 statements. The company announced net income of only $1.7 million, down sharply from $15.3 million in the prior quarter, due to a $14.1 million increase in loan-loss provisions. Analysts described this as a “notable miss,” with earnings per share of just $0.06 compared to a $0.49 forecast. The following day, the stock price dropped approximately 6.6 percent, closing at $21.19.

Despite these disappointing results, management seemingly continued to offer optimistic guidance. CEO Riel highlighted new commercial and industrial loan growth and projected a “return to sustained profitability,” while forecasts for loan growth and non-interest income were reiterated on the Q1 earnings call. Lawyers may focus on whether these forward-looking statements were consistent with the company’s actual financial position and whether sufficient caution was provided regarding the risks.

On July 23, 2025, Eagle Bancorp disclosed a dramatic second quarter net loss of $69.8 million, driven by a $111.9 million increase in loan-loss provisions, which management attributed to credit reserves on challenged office loans. The next trading day, the stock fell by about 22 percent, closing near $16.93. These sharp stock declines, amounting to a 35–40 percent drop (roughly $8–10 per share), resulted in hundreds of millions of dollars in lost shareholder value.

Attorneys could examine whether the company’s earlier statements about risk management, loan quality, and profitability adequately reflected the true condition of its loan portfolio. The investigation might also review whether shareholders were sufficiently informed about the rising risk of nonperforming loans and the adequacy of reserves, especially as the allowance for loan losses rose from 1.44 percent to 2.38 percent of loans within two quarters.

Your Rights and Next Steps

This is an active investigation, not a filed lawsuit. Investors who purchased or held Eagle Bancorp securities between Jan. 22, 2025 and Jul. 23, 2025 and suffered losses may have important legal rights. If the investigation uncovers evidence of securities law violations, it could lead to a class action lawsuit seeking recovery for affected shareholders.

Investors are encouraged to gather records of their Eagle Bancorp purchases, sales, and account statements from the class period. Lawyers are ready to help review potential claims, answer questions, and explain the process for participating in any future class action. There is no cost or obligation to participate in the investigation at this stage.

It is important to act promptly, as securities investigations and any resulting lawsuits are subject to strict deadlines. By joining the investigation early, investors can help ensure their interests are represented if a class action is filed.

You May Be Entitled to Compensation

Investors who purchased Eagle Bancorp securities and suffered financial losses during the class period may be eligible to join any potential class action and seek compensation. Securities investigations are time-sensitive, and acting quickly can help protect your rights.

To participate in the investigation and learn more about your options, complete the form below.