Income Taxes (Tables)

12 Months Ended

Dec. 31, 2025

Income Tax Disclosure [Abstract]

Schedule of Income Tax Expense

The table below presents the federal and state income tax expense.

	As of December 31,
(dollars in thousands)	2025		2024		2023
Pre-tax Income (Loss) from continuing operations
US	$	(196,184)	$	(30,240)	$	127,520
Foreign	—		—		—
Total - Pre-tax income (loss) from continuing operations	(196,184)		(30,240)		127,520
Income tax expense (benefit)
Current taxes:
U.S. federal	10,094		9,897		25,291
U.S. state and local	154		4,297		5,072
Foreign	—		—		—
Subtotal - Current tax expense	10,248		14,194		30,363
Deferred taxes:
U.S. federal	(59,583)		2,823		(2,966)
U.S. state and local	(8,797)		(222)		(411)
Foreign	—		—		—
Subtotal - Deferred taxes	(68,380)		2,601		(3,377)
Total income tax expense (benefit) from continuing operations	$	(58,132)	$	16,795	$	26,986

Schedule of Significant Components of Deferred Tax Assets and Liabilities

The table below summarizes significant components of our deferred tax assets and liabilities.

	As of December 31,
(dollars in thousands)	2025		2024
Deferred tax assets:
Allowance for credit losses	$	38,927	$	27,998
Deferred loan fees and costs	4,274		4,551
Unrealized loss on securities available-for-sale	19,188		34,656
Unrealized loss on securities held-to-maturity	8,696		10,160
LIHTC and Investment Tax Credits ("ITC")	9,787		5,793
Lease liabilities	8,575		5,774
Supplemental executive retirement and death benefit agreements	3,167		2,075
Stock-based compensation	1,705		1,785
Premises and equipment	—		217
Net operating loss	51,740		8,104
Other assets	3,537		3,549
Deferred tax assets before valuation allowances	149,596		104,662
Valuation allowances	(8,357)		(7,715)
Total deferred tax assets	141,239		96,947
Deferred tax liabilities:
Right-of-use Assets	(6,920)		(4,483)
Interest Rate Swaps & Derivatives	(324)		(602)
Investment in Partnership	(444)		(384)
Premises and equipment	(1,194)		—
Other liabilities	(27)		(6)
Total deferred tax liabilities	(8,909)		(5,475)
Net deferred income tax assets	$	132,330	$	91,472

Schedule of Reconciliation of Income Taxes

The table below presents a reconciliation of the statutory federal income tax rate to the Company’s effective income tax rate.

	For the Year Ended December 31,
	2025				2024				2023
(dollars in thousands)	Amount		Percent		Amount		Percent		Amount		Percent
U.S. federal statutory income tax rate	$	(41,199)	21.00	%	$	(6,350)	21.00	%	$	26,779	21.00	%
State and Local Income Taxes, Net of Federal Income Tax Effect(1)	(6,828)		3.48	%	3,194		(10.57)	%	3,596		2.82	%
Effect of Changes in Tax Laws or Rates Enacted in the Current Period	—		—	%	—		—	%	—		—	%
Tax Credits:
Purchased transferable tax credits	(3,195)		1.63	%	(1,700)		5.62	%	—		—	%
Investment tax credits (2)	(1,203)		0.61	%	—		—	%	—		—	%
Low income housing tax credits(3)	(2,124)		1.08	%	(1,003)		3.32	%	(569)		(0.45)	%
Bond credits(4)	(532)		0.27	%	(532)		1.76	%	(532)		(0.42)	%
Changes in Valuation Allowances	—		—	%	—		—	%	—		—	%
Nontaxable or Nondeductible Items:
Goodwill Impairment	—		—	%	21,875		(72.34)	%	—		—	%
Bank owned life insurance income	(4,245)		2.16	%	(606)		2.00	%	(736)		(0.58)	%
Tax-exempt interest, net of expense disallowance	(2,072)		1.06	%	(492)		1.63	%	(2,229)		(1.75)	%
Stock-based compensation expense(5)	512		(0.26)	%	1,034		(3.42)	%	219		0.17	%
Non-deductible fines and penalties	2,100		(1.07)	%	—		—	%	—		—	%
All other nontaxable or nondeductible items	241		(0.12)	%	398		(1.31)	%	458		0.37	%
Changes in Unrecognized Tax Benefits	436		(0.22)	%	1,097		(3.63)	%	—		—	%
Other Adjustments:	(23)		0.01	%	(120)		0.40	%	—		—	%
Effective tax rate	$	(58,132)	29.63	%	$	16,795	(55.54)	%	$	26,986	21.16	%

(1)    State taxes in Maryland made up the majority (greater than 50 percent) of the tax effect in this category.

(2)    EagleBank's investment in solar tax equity qualifies for proportional amortization accounting method ("PAM"). Includes tax expense related to proportional amortization of $9.4 million, $0, and $0 and tax benefit related to flow-through losses of $0.1 million, $0, and $0 in 2025, 2024 and 2023, respectively.

(3)    Includes tax expense related to proportional amortization of $5.3 million, $5.7 million, and $5.4 million and tax benefit related to flow-through losses of $1.7 million, $1.1 million, and $1.0 million in 2025, 2024 and 2023, respectively.

(4)    The amount is net of the federal income tax add-back related to the bond credits.

(5)    The amount includes the federal income tax effect of the windfall/shortfall adjustments related to the vesting of stock awards.

Schedule of Unrecognized Tax Benefits

The table below details the UTBs for the periods shown below.

	For the Year Ended December 31,
(dollars in thousands)	2025		2024
Balance at beginning of year	$	6,550	$	—
Gross increases - tax positions related to prior periods	434		6,254
Gross decreases - tax positions related to prior periods	—		—
Gross increases - tax positions related to the current period	—		296
Settlements with tax authorities	—		—
Lapse of statute of limitations	—		—
Balance at end of year	$	6,984	$	6,550