The Bank Slate

INSIGHTS INTO THE BANKING INDUSTRY

Eagle in Md. closes two branches, plans layoffs

Eagle Bancorp in Bethesda, Md., closed two branches and laid off some employees as part of a cost-cutting effort.

The $11 billion-asset company said in a press release that it closed locations in the Georgetown neighborhood of Washington, D.C., and Chantilly, Va. The closures should save Eagle $408,000 annually.

Eagle now has 13 branches.

Eagle also said it implemented a “reduction-in-force” that will help it save $2.4 million in the second half of 2023 and $5.8 million next year. The number of jobs being cut wasn’t disclosed.

Eagle subsequently disclosed that it laid off Antonio Marquez, its president of commercial banking, after eliminating his position.

The company also said it stopping originating first-lien residential mortgages.

The cuts were a “difficult decision” that followed a wide-ranging “strategic review of operating expenses,” President and CEO Susan Riel said in the release.

The company’s second-quarter earnings increased by 83% from a year earlier, to $28.7 million. The second quarter of 2022 included one-time legal settlement costs.

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