Eagle Bancorp Taps New CEO for Strategic Overhaul Amid Market Challenges

BETHESDA, MD – May 12, 2026 – Eagle Bancorp, Inc. (NASDAQ: EGBN) today announced a significant leadership transition, appointing seasoned banking executive Stephen Curley as its new president and chief executive officer, effective July 6, 2026. The move signals a deliberate strategic pivot for the prominent D.C. area community bank as it navigates a challenging financial landscape and seeks to chart a new course for growth and profitability.

Curley, who will also join the company's board of directors, arrives from Western Alliance Bank in Phoenix, where he served as chief banking officer for national business lines. He steps in to replace Susan G. Riel, a long-tenured executive who will retire after steering the bank through a period of significant turbulence. The appointment concludes an extensive search by the board, which emphasized finding a leader capable of executing a complex turnaround.

A Mandate for Change

The board’s directive for the new CEO is clear and ambitious. In the official announcement, Eagle Bancorp’s independent board chair, James A. Soltesz, outlined the priorities that will define Curley’s tenure. “The board’s CEO search focused on identifying a leader with experience and strategic judgment required in today’s challenging banking environment,” Mr. Soltesz said. “Long-term shareholder value requires execution across lending, deposit growth, capital allocation, and risk management.”

Curley’s background appears tailor-made for this mandate. With over 25 years in banking, his time at Western Alliance was marked by success in diversifying lending assets and growing stable, high-quality core deposits. He is credited with revitalizing branch banking, enhancing services for commercial clients, and building new business lines from the ground up—experience that directly addresses Eagle Bancorp’s current needs.

“Stephen Curley brings hands-on experience executing those priorities,” Mr. Soltesz continued, highlighting Curley’s understanding of relationship-driven community banking. “He is well positioned to strengthen profitability, enhance franchise value and deliver consistent long-term performance for shareholders.”

For his part, Curley acknowledged the bank's foundational strengths while signaling his intent to drive performance. “EagleBank is a strong commercial franchise, with a respected market position and solid operating foundation,” Mr. Curley stated. “Leveraging those strengths will lead to improving performance, expanding the business and delivering value for clients, employees and shareholders.”

Navigating a Troubled Balance Sheet

The urgency for a strategic shift is rooted in the bank’s recent financial struggles. While the first quarter of 2026 showed a promising return to profitability—with net income of $14.7 million beating analyst expectations—it followed a bruising 2025. The bank reported staggering net losses of $69.8 million and $67.5 million in the second and third quarters of 2025, respectively.

These losses were largely driven by what the bank has termed “asset quality challenges,” stemming from its significant concentration in the commercial real estate (CRE) sector. A substantial portion of EagleBank's over $7.3 billion loan portfolio is tied to CRE, an area that has faced significant headwinds, particularly in the office space. In late 2024, the bank was forced to move a $74.9 million office loan to non-accrual status, triggering a major provision for credit losses.

While management has made what it calls “tangible progress” on asset quality, the challenge remains formidable. Nonperforming loans stood at $128.8 million as of the first quarter of 2026, and the bank holds a specific reserve of $60 million for its troubled office portfolio. Curley’s primary task will be to de-risk the balance sheet and reposition the bank for more stable, diversified revenue streams, a process he has already alluded to by mentioning his intent to add “other specialties” in commercial lending beyond CRE.

The End of an Era

Curley’s arrival marks the end of Susan G. Riel’s long and influential tenure. Having joined EagleBank at its inception in 1998 and serving as CEO since 2019, Riel’s leadership has been synonymous with the bank’s “Relationship First” culture. She is widely credited with strengthening the bank's operational framework and risk management controls, providing a steady hand during periods of transition.

“Susan’s tenure at EagleBank has been defined by steady and devoted leadership,” Mr. Soltesz commented, praising her contributions. “Her contributions leave the company with a strong franchise and solid foundation that well positions the bank for long-term growth and profitability.”

Riel will remain CEO until July 5 to ensure a smooth transition. Her continued involvement is assured, as she is slated to join the board and will serve as a consultant to the bank for 12 months, a role that comes with a substantial fee of $94,000 per month. This arrangement underscores the value the board places on her institutional knowledge as it navigates this critical inflection point.

Wall Street’s Cautious Optimism

The leadership change has been a focal point for investors, who have already priced in a significant amount of hope for a turnaround. Eagle Bancorp’s stock surged an impressive 56% in the six months leading up to the announcement. Following the news, however, the market offered a more muted and cautious reaction, with shares dipping slightly in early trading.

Analysts see the appointment as a clear positive for the bank's long-term prospects. Raymond James reiterated a “Strong Buy” rating, with analyst Steve Moss noting Curley's background should support the much-needed diversification of the balance sheet. However, the firm also cautioned that investors hoping for a quick sale of the bank might be disappointed by the strategic focus on internal growth and operational improvement.

The consensus rating among analysts remains a “Hold,” reflecting the delicate balance between the new leadership’s potential and the very real, persistent risks tied to the bank's CRE exposure. Curley has stated he will spend his first 90 days evaluating operations before making any major moves, a prudent approach that Wall Street will be watching with keen interest as he begins the difficult work of reshaping Eagle Bancorp for the future.