Eagle Bancorp CEO Susan Riel to Retire in 2026 Amidst Turnaround Efforts
Established Maryland-based lender, Eagle Bancorp, has announced that its CEO and president, Susan Riel, will be retiring in 2026. The bank, which has been grappling with significant losses in recent quarters due to exposure to loans on troubled office buildings, is gearing up for a comprehensive turnaround. The retirement of Riel, who is one of the founders of Eagle, could signal a significant change in the bank’s leadership and strategic direction. [source]
Transition Plan and Successor Search
Eagle Bancorp has started the search for Riel’s successor, and she will remain in her position until a suitable candidate is found. The bank has engaged an executive search firm to assist in the process and will consider both internal and external candidates. James Soltesz, currently serving as lead independent director, will immediately assume the chair role. Riel’s decision to stay on the board post-retirement will depend on the appointment of the new CEO.
Notably, Riel’s son, Ryan, who currently holds the position of senior executive vice president at Eagle Bancorp and chief real estate lending officer at its subsidiary, EagleBank, could be a potential candidate for the CEO role. However, Riel has stated that she will not be involved in the selection process.
Financial Challenges and Strategic Changes
Over the past few years, Eagle Bancorp has faced financial challenges due to its significant commercial real estate portfolio. The shift towards remote work during the COVID-19 pandemic, coupled with rising interest rates, has adversely impacted the bank’s performance. The occupancy rates of many office buildings dropped, making existing loans uncompetitive and hard to offload.
Despite these challenges, Riel is optimistic about the bank’s future. She believes that the bank’s current strategy, which includes growing its commercial & industrial lending business, is effective. “We feel like we’ve put things in place, we’ve dealt with the problems we have, and we should be in a position to move forward in a much more positive way than we have been,” she stated.
Efforts to Improve Asset Quality
Eagle Bancorp has been actively working to improve its asset quality. The bank recently added two new independent directors to its board in September, and an independent credit review was conducted on 85% of its commercial real estate and commercial & industrial portfolios.
The bank’s efforts seem to be paying off, with 88% of Eagle’s loans classified as performing in the third quarter, up from 69% in the fourth quarter of last year. Analysts at Piper Sandler noted in a recent research note that the majority of office pain appears to have been addressed.
As Eagle Bancorp embarks on this new chapter, it remains to be seen how the transition of leadership will impact the bank’s turnaround strategy. One thing is certain: the bank is committed to overcoming its financial challenges and forging a path towards a more profitable future.
Contributions from Catherine Leffert.
