EAGLE BANCORP INC

Balance Sheet Analysis

Overview

This section discusses our condensed consolidated balance sheets and should be read together with our consolidated financial statements and the accompanying notes.

(1)Consists of cash and due from banks, interest-bearing deposits with banks, and other short-term investments.

(2)Consists of available-for-sale securities at fair value and held-to-maturity securities, net of allowance for credit losses.

(3)Consists of Federal Reserve and Federal Home Loan Bank stock, premises and equipment, right-of-use assets, other real estate owned, and other assets.

(4)Consists of operating lease liabilities, reserve for unfunded commitments and other liabilities.

See respective subsections below for the primary drivers of change and further discussion on loans, allowance for credit losses, other earning assets, deposits and other borrowings.

The decrease in total assets as of March 31, 2026 from December 31, 2025 was primarily due to lower cash balances and declines in securities and loans balances from sales, maturities and paydowns.

Investment securities, net of the allowance for credit losses, were $1.77 billion as of March 31, 2026 as compared to $1.83 billion as of December 31, 2025, a 3% decrease, primarily driven by maturities and paydowns on both AFS and HTM securities. Cash flows from the securities portfolio are expected to be managed flexibly, including selective paydowns of brokered funding, while allowing for limited and opportunistic reinvestment in the securities portfolio.

Loans held for investment ("HFI") decreased by $341.9 million (from $7.3 billion as of December 31, 2025 to $6.9 billion as of March 31, 2026) while HFS loans decreased by $34.9 million. Refer to the "Loan Portfolio", "Loan Maturity" and other loans-related sections below for further discussion on loans.

Total shareholders’ equity as of March 31, 2026 was $1.15 billion as compared to $1.13 billion as of December 31, 2025, a 1% increase. The increase in shareholders’ equity was primarily due to net income of $14.7 million, offset by cash dividends of $0.3 million, and $0.9 million in other comprehensive loss. The ratio of common equity to total assets was 11.51% as of March 31, 2026 as compared to 10.78% as of December 31, 2025. Book value per share was $37.56 as of March 31, 2026, a 0.81% increase from $37.26 as of December 31, 2025.

In order to be considered well-capitalized, the Bank must have a common equity tier one capital ("CET1") risk based capital ratio of 6.5%, a Tier 1 risk-based ratio of 8.0%, a total risk-based capital ratio of 10.0% and a leverage ratio of 5.0%. The Company and the Bank exceeded all these requirements and satisfy the capital conservation buffer of 2.5% of CET1 capital as of March 31, 2026. Failure to maintain the required capital conservation buffer would limit the ability of the Company and the Bank to pay dividends, repurchase shares or pay discretionary bonuses.

The Company's capital ratios remain substantially in excess of regulatory minimums and buffer requirements. The total risk based capital ratio was 15.05% as of March 31, 2026, as compared to 14.33% as of December 31, 2025. The CET1 risk based capital ratio was 13.80% as of March 31, 2026, as compared to 13.07% as of December 31, 2025. The tier 1 risk based capital ratio was 13.80% as of March 31, 2026, as compared to 13.07% as of December 31, 2025. The tier 1 leverage ratio was 10.63% as of March 31, 2026, as compared to 9.72% as of December 31, 2025. Refer to "Capital Resources and Adequacy" section below for further discussion on our capital.

Loan Portfolio

In its lending activities, the Company seeks to develop and expand relationships with clients whose businesses and individual banking needs will grow with the Bank. We believe superior customer service, local decision making and accelerated turnaround time from application to closing are significant factors in growing the loan portfolio and meeting the lending needs in the markets served, while maintaining sound asset quality.

Loans held for investment were $6.9 billion as of March 31, 2026, as compared to $7.3 billion as of December 31, 2025, a decrease of $341.9 million or 4.7%. During the period ended March 31, 2026, certain loans, primarily income producing commercial real estate loans, were reclassified from HFI to HFS loans. This reclassification resulted in net charge-offs of $11.6 million in order to bring the loans to the lower of cost or fair value of $111.8 million at the time of transfer. During the first quarter of 2026, eight HFS loans were sold, resulting in a gain of $3.6 million. There were $55.7 million in loans held for sale as of March 31, 2026, compared to $90.7 million as of December 31, 2025.

The loan portfolio mix continues to evolve as the Bank has experienced a reduction in income producing commercial real estate loans and construction loans, offset by increases in commercial and owner-occupied commercial real estate loans. These shifts reflect our strategic focus on reshaping the portfolio toward relationship-driven commercial lending and asset classes aligned with our long-term risk-adjusted return objectives. We continue to see opportunities for growth in the commercial lending market and our processes for evaluating these opportunities are designed to ensure they are subject to reasonable underwriting standards, including appropriate cash flow necessary to support debt service. Following origination, we continue to monitor our borrowers' business plans and assess primary and alternative sources for loan repayment and, if necessary, obtain collateral or additional collateral to mitigate credit loss in the event of default.

The Bank has a large portion of its loan portfolio related to real estate, with 78% consisting of commercial real estate and real estate construction loans as of March 31, 2026. Non-owner occupied commercial real estate and commercial and residential construction represented 53% of the loan portfolio while the remaining 25% is represented by the "owner occupied - commercial real estate" and "construction - C&I (owner occupied)" loans.

The table below presents loans, net of amortized deferred fees and costs by major category.

(1)Excludes accrued interest receivable of $33.3 million and $35.9 million as of March 31, 2026 and December 31, 2025, respectively, which is recorded in other assets.

As noted above, a significant portion of the loan portfolio consists of commercial, construction and commercial real estate loans, primarily in the Washington, D.C. metropolitan area and is secured by real estate or other collateral in that market. While our basic market is the Washington, D.C. metropolitan area, the Bank has made loans outside that market where the borrower or its key decision makers have a meaningful relationship with the Bank and generally operate in or are based in our market. Although all of these loans are made to a diversified pool of unrelated borrowers across numerous businesses, adverse developments in the real estate market could continue to have an adverse impact on this portfolio of loans and the Company’s earnings and financial position. Management believes that the commercial real estate concentration risk is mitigated by diversification among the types and characteristics of real estate collateral properties, sound underwriting practices and ongoing portfolio monitoring and market analysis.

The Company's concentration in the Washington, D.C. metro area includes "Washington's Maryland Suburbs," which comprises Frederick, Prince George's and Montgomery counties, and "Northern Virginia," which comprises Alexandria, Arlington, Falls Church, Fairfax, Loudoun and Prince William counties.

The chart below displays our loan portfolio, as a percentage of total amortized cost, by geographic concentration.

As part of its lending strategy, the Company maintains a substantial portfolio of CRE loans, with $5.3 billion and $5.7 billion, or 76.3% and 78.3% of total loans, of amortized cost outstanding as of March 31, 2026 and December 31, 2025, respectively. Management meets regularly in order to monitor its existing CRE loan portfolio and to evaluate the pipeline for CRE loan investment. Income producing CRE loans collateralized by office properties comprised approximately $573.5 million and $576.1 million, or 8.3% and 7.9% of total loans, as of March 31, 2026 and December 31, 2025, respectively.

Office loans within Washington, D.C., Washington's Maryland Suburbs and Northern Virginia were $543.5 million and $545.8 million, or 7.8% and 7.5% of total loans, as of March 31, 2026 and December 31, 2025, respectively.

The chart below displays the geographic concentration of income producing - CRE office loans in our loan portfolio, as percentage of total principal balance.

The table below summarizes the Company's income producing - commercial real estate loans, at principal balance, by collateral location and type.

(1)Primarily includes commercial real estate loans with land, storage, and healthcare collateral.

As of March 31, 2026 and December 31, 2025, $94.8 million and $107.9 million, respectively, of principal of CRE loans collateralized by office properties were criticized or classified.

The table below displays income producing - commercial real estate loans, at principal, that are criticized or classified by collateral type.

The Company has executed balance sheet optimization actions to reduce commercial real estate loan concentration, including actions to reduce exposure to short- and intermediate-term valuation risk in the office portfolio. These steps reflect our strategic focus on improving portfolio resilience and risk-adjusted returns. While we remain disciplined in evaluating additional opportunities to further address concentration and valuation risk, future decisions or actions, if made or taken, could continue to result in elevated credit costs and may materially impact our results in the periods in which such decisions or actions are made or executed. There can be no assurance that any additional initiatives will be undertaken or, if pursued or undertaken, will achieve their intended results.

Loan Maturity

The table below sets forth the time to contractual maturity of the loan portfolio. Loans are shown in the period based on final contractual maturity. Demand loans, having no contractual maturity, and overdrafts are reported as due in one year or less.

(1)Income producing CRE office loans with total principal of $574.3 million and multifamily loans with total principal of $762.0 million as of March 31, 2026 are included within income producing - commercial real estate. The charts below represent their maturities schedules.

Allowance for Credit Losses

The ACL is an estimate based on many factors which reflect management’s assessment of the risk in the loan portfolio. Those factors include economic conditions and trends, the value and adequacy of collateral, volume and mix of the portfolio, performance of the portfolio and internal loan processes of the Company and Bank. A full discussion of the accounting for ACL is contained in "Note 1 – Summary of Significant Accounting Policies" to the Consolidated Financial Statements and activity in the ACL is contained in "Note 4 – Loans and Allowance for Credit Losses" to the Consolidated Financial Statements. Also, refer to "Critical Accounting Policies and Estimates" above for further discussion of the methodology which management employs to maintain an adequate ACL, as well as "Provision for Credit Losses" above for a discussion of the Company's calculation of the provision for credit losses during the three months ended March 31, 2026 and 2025.

The ACL for loans as of March 31, 2026 was $147.2 million, which reflected a decrease of $12.4 million from $159.6 million as of December 31, 2025. The ACL represented 2.12% of total loans as of March 31, 2026 as compared to 2.19% as of December 31, 2025.

Management believes the ACL as of March 31, 2026 remains adequate to absorb estimated losses inherent in the portfolio following the loss recognition on high-risk loans concentrated in the commercial real estate office segment. The losses recognized in the first quarter of 2026 were primarily due to transfer of certain loans to HFS and the incorporation of new information about borrower performance. As of March 31, 2026, the allowance represented 114% of nonperforming loans as compared to 149% as of December 31, 2025. The decrease in the ACL for loans at March 31, 2026 compared to December 31, 2025, was primarily due to a decrease in the office overlay and charge-offs of previously reserved amounts, partially offset by updated assumptions in the CECL model calculation.

As part of its comprehensive loan review process, the Bank’s Risk Committee evaluates loans which are past due 30 days or more. The Committee makes an assessment of the conditions and circumstances surrounding delinquent and potential problem loans. The Bank’s loan policy requires that loans be placed on nonaccrual if they are 90 days past due or if their collection is deemed to be doubtful, unless they are well secured and in the process of collection. The Credit Administration department analyzes the status of development and construction projects, including sales activities and utilization of interest reserves in order to assess potential increased levels of risk which may require additional reserves.

As of March 31, 2026 and December 31, 2025, the Company had $128.8 million and $106.9 million, respectively, of loans classified as nonperforming. Please refer to the "Nonperforming Assets" section for a discussion of problem and potential problem assets. Refer to "Note 1 – Summary of Significant Accounting Policies" to the Consolidated Financial Statements under the caption "Loans" for a discussion of the Company’s policy regarding individual evaluation of loans to record a provision for expected credit losses.

As of March 31, 2026 and December 31, 2025, loans rated special mention had an amortized cost of $290.8 million and $268.9 million, respectively, and loans rated substandard had an amortized cost of $447.6 million and $514.5 million, respectively. The decrease in substandard loans was primarily attributable to transfer of certain loans to HFS, as previously discussed.

As of March 31, 2026, 99% and 69% of special mention and substandard loans, respectively, were current, with the remainder either 30 or more days past due or nonperforming. Based upon their status as potential problem loans, loans risk rated special mention or substandard receive heightened scrutiny. Additionally, the Company's credit loss allowance methodology incorporates increased reserve factors for office loans considered potential problem loans as compared to the general portfolio.

Management recognizes the risks inherent in the CRE portfolio and remains focused on maintaining disciplined portfolio management and a robust risk rating process. The Bank has implemented enhanced analytical procedures for evaluating credit requests, refined its risk rating framework, and strengthened ongoing monitoring of the loan portfolio and the adequacy of the ACL, particularly for CRE and construction loans, including those secured by office properties. These efforts include the use of stress testing analyses. Additionally, fair value assessments of loans acquired are included in our analytical procedures. The loan portfolio analysis process is ongoing and proactive to support the Company's objective of maintaining a portfolio of quality credits and quickly identifying weaknesses before they become more severe.

The table below presents activity in the allowance for credit losses.

The allocation of the allowance as of March 31, 2026 includes the allowance for credit losses of $38.4 million against individually assessed loans of $128.8 million, as compared to allowance for credit losses of $19.6 million against individually assessed loans of $106.9 million as of December 31, 2025. In addition, the Company's performing office coverage ratio, which calculates the ACL attributable to loans collateralized by performing office properties as a percentage of total loans, was 7.39% and 12.89% as of March 31, 2026 and December 31, 2025, respectively. The allocation of the allowance to each category is not necessarily indicative of future losses or charge-offs and does not restrict the usage of the allowance to absorb losses in any category. The Company has updated its allocation methodology to better reflect the ACL attributable to loan categories and collateral types. Conforming changes have been made to prior period amounts. These reclassifications had no effect on net income (loss) or shareholders' equity.

The table below displays the allocation of the ACL by loan category and the percentage of allowance in each category.

The table below displays the allocation of the ACL specific to income producing - commercial real estate loans by collateral type.

Nonperforming Assets

The Company’s nonperforming assets are comprised of the amortized cost of nonaccrual HFI loans, which includes the nonperforming portion of loan modifications, and the carrying value of other real estate owned ("OREO"). Nonperforming assets totaled $130.8 million as of March 31, 2026, representing 1.31% of total assets, as compared to $109.0 million as of December 31, 2025, representing 1.04% of total assets. The increase was primarily due to the migration of one previously substandard-rated CRE office relationship to nonaccrual status during the quarter, along with other credit facilities in the C&I and construction - commercial & residential categories, partly offset by charge offs of nonaccrual loans as well as by loans transferred to HFS. As of March 31, 2026, nonaccrual HFS loans totaling $55.2 million were excluded from nonperforming assets since they are carried at the lower of cost or fair value and are not reflected in credit metrics.

Total nonperforming loans had an amortized cost of $128.8 million as of March 31, 2026, representing 1.86% of total loans, compared to $106.9 million as of December 31, 2025, representing 1.47% of total loans. The Company had no accruing loans that were 90 days or more past due as of March 31, 2026 and December 31, 2025. Management prioritizes remaining attentive to early signs of deterioration in borrowers’ financial conditions and to taking action designed to mitigate risk. The Company places loans on nonaccrual status if it deems collection to be doubtful.

Under the CECL standard, loans that no longer share similar risk characteristics with their assigned segment—due to credit deterioration, increased collateral dependency, or other factors—are evaluated on an individual basis. The Company individually assesses all nonaccrual loans and may also individually evaluate other loans or groups of loans when it is probable that not all contractual amounts will be collected. Expected credit losses on individually assessed loans are measured using either the fair value of collateral or discounted cash flow methods. For collateral-dependent loans, including those for which foreclosure is probable or repayment is expected substantially through the sale or operation of the collateral, the ACL is based on the difference between the asset’s amortized cost basis and the net realizable value of the collateral, adjusted for estimated selling costs, commissions, senior liens, and other factors; the ACL may be zero when collateral value exceeds amortized cost. For loans that are not collateral dependent but have experienced structural concessions and are expected to continue making payments, expected credit losses are measured using discounted cash flows over the expected life of the loan at the original contractual interest rate, with adjustments for default risk. Based on management’s analysis of portfolio risk, the Company believes its ACL, which totaled 2.12% of total loans as of March 31, 2026, is adequate to absorb expected credit losses at that date.

Generally, collateral valuations associated with individually assessed loans are updated on not less than an annual basis. As part of our credit risk management process, we periodically reassess the value of collateral supporting commercial real estate loans, particularly in periods of market volatility. Normally, we obtain updated valuations when borrower performance suggests that repayment may become dependent on the underlying real estate and we determine that existing collateral values may not reflect current market conditions. This approach focuses on loans where cash flow coverage has deteriorated and where guarantor support appears uncertain or insufficient. In some cases when a loan is downgraded late in a quarter, a new valuation may not be obtained until the following quarter.

In evaluating whether a new valuation is warranted, we consider a range of factors, including trends in local property markets, changes in capitalization rates and lease terms, the availability and terms of financing for comparable properties, and observable shifts in supply-demand dynamics. We also assess property-specific factors such as deferred maintenance or improvements, zoning or regulatory changes, environmental matters, and other conditions that may materially influence value. Passage of time alone does not drive our valuation decisions; rather, we apply a judgment-based framework informed by current market data and asset-specific analysis.

The objectives of this process are to have our collateral estimates reflect current market conditions and to support timely and appropriate credit loss recognition as conditions evolve.

The Company evaluates all loan modifications according to the accounting guidance to determine if the modification results in a new loan or a continuation of the existing loan. Loan modifications to borrowers experiencing financial difficulties that result in a direct change in the timing or amount of contractual cash flows include situations where there is principal forgiveness, interest rate reductions, other-than-insignificant payment delays, term extensions, and combinations of the listed modifications. Modifications with terms not as favorable to the Company as the terms for comparable loans to other customers with similar collection risk who are not refinancing or restructuring a loan with the Company and which have a direct impact on cash flows are considered modified loans to borrowers experiencing financial difficulty. A loan that is considered a modified loan may be evaluated for disclosure if the commitment is $500 thousand or greater. Management strives to identify borrowers in financial difficulty early and may work with them to modify their loan to more affordable terms before their loan reaches nonaccrual status, foreclosure or repossession of the collateral to minimize economic loss to the Company.

Commercial and consumer loans modified are closely monitored for delinquency as an early indicator of possible future default. If loans modified in a loan restructuring subsequently default, the Company evaluates the loan for possible further impairment. The allowance may be increased, adjustments may be made in the allocation of the allowance, or partial charge-offs may be taken to further write-down the carrying value of the loan.

During the three months ended March 31, 2026, the Bank modified 9 loans with a total amortized cost of $82.2 million as of March 31, 2026 (1.2% of the loan portfolio). These loans received extended loan terms of between approximately 3 to 24 months.

As of March 31, 2026, the payment status of 28 loans that were modified in the preceding twelve months, included 21 loans with a total amortized cost basis $189.6 million which were performing under their modified terms, 2 loan with a total amortized cost basis of $7.2 million which was 30-89 days past due and 5 loans with a total amortized cost basis of $18.8 million which were on nonaccrual status.

Management, from time-to-time and in the ordinary course of business, implements renewals, modifications, extensions and/or changes in terms of loans to borrowers who have the ability to repay on reasonable market-based terms and are not experiencing financial difficulty. For example: (1) adverse weather conditions may create a short term cash flow issue for an otherwise profitable retail business which suggests a temporary interest only

period on an amortizing loan; (2) there may be delays in absorption on a real estate project which reasonably suggests extension of the loan maturity at market terms; or (3) there may be maturing loans to borrowers with demonstrated repayment ability who are not in a position at the time of maturity to obtain alternate long-term financing.

Included in nonperforming assets as of March 31, 2026 was OREO of $2.1 million, consisting of three foreclosed properties, which was unchanged compared to OREO of $2.1 million, consisting of three foreclosed properties as of December 31, 2025. OREO properties are carried at the lower of cost or at fair value less estimated costs to sell.

It is the Company's policy to generally obtain third party appraisals prior to foreclosure and to obtain updated third party appraisals on OREO properties generally not less frequently than annually. Generally, the Company obtains updated appraisals or evaluations where it has reason to believe, based upon market indications (such as comparable sales, a scenario in which the Company is considering legitimate offers below carrying value, broker indications and similar factors), that the current appraisal does not accurately reflect current value. There were zero OREO sales in the first quarter of 2026 and two in the first quarter of 2025, generating proceeds of zero and $772 thousand, respectively.

The table below presents the amounts of nonperforming assets, including loans at amortized cost and OREO at the lower of cost or fair value less estimated costs to sell.

(1)Excludes nonaccrual HFS loans totaling $55.2 million and $90.7 million as of March 31, 2026 and December 31, 2025, respectively.

Significant variation in the amount of nonperforming loans may occur from period to period because the amount of nonperforming loans depends largely on the condition of a relatively small number of individual credits and borrowers relative to the total loan portfolio.

Other Earning Assets

As part of its employee benefits and financing strategies, the Company has invested in BOLI policies. BOLI serves as a tax-efficient asset designed to offset the cost of employee benefit obligations. The Company views BOLI as a long-term investment to help fund future benefit expenses.

As of March 31, 2026, the cash surrender value of BOLI totaled $339.8 million, compared to $335.2 million as of December 31, 2025. The increase reflects net earnings on the BOLI policies during 2026.

Deposits and Other Borrowings

The principal sources of funds for the Bank are core deposits, consisting of demand deposits, money market accounts, Negotiable Order of Withdrawal ("NOW") accounts, savings accounts, and certificates of deposits. The deposit base includes transaction accounts, time and savings accounts and accounts which customers use for cash management which provide the Bank with a source of fee income and cross-marketing opportunities, as well as an attractive source of lower cost funds. To meet funding needs during periods of high loan demand and seasonal variations in core deposits, the Bank utilizes alternative funding sources such as brokered deposits, secured borrowings from the FHLB, and federal funds purchased lines of credit from correspondent banks.

The table below presents the Bank’s deposit composition by balance and percentage.

For the three months ended March 31, 2026, deposits decreased primarily due to a shift in funding mix and change in deposit composition which resulted in lower balances in savings and money market accounts and brokered time deposits.

No single depositor represented more than 10% of total deposits as of March 31, 2026. The ten largest depositors not associated with brokered pass-through relationships represented approximately 17% of total deposits as of March 31, 2026. The Company maintains a significant deposit relationship with a third-party payments processor, whose business results in deposit inflows and outflows on an ongoing basis, which contributes to variations in period end balances compared to average deposit balances.

The Bank offers brokered time deposits generally in denominations of less than $250 thousand from brokerage networks. The Bank participates in CDARS and the ICS programs within IntraFi Network, LLC ("IntraFi"), which provide for reciprocal ("two-way") transactions among banks to maximize FDIC insurance. ICS also allows for the sale of deposits into the IntraFi Network ("One-Way Sale") which provides FDIC insurance for the depositor without reciprocal deposits returned to the Bank. Deposits sold through the IntraFi One-Way Sale process are not included in the Bank’s deposit totals. The sale of ICS deposits allows the Bank to moderate the fluctuation of deposit balances. As of March 31, 2026, the Bank sold de minimis deposits through the IntraFi One-Way Sale network. The total of reciprocal deposits as of March 31, 2026 was $1.6 billion (18% of total deposits) as compared to $1.7 billion (19% of total deposits) as of December 31, 2025. These sources are believed by the Company to represent a reliable and cost efficient alternative funding source for the Bank, but there can be no assurance that they will continue to be adequate or appropriate to meet our liquidity needs. The Bank also is able to receive one way CDARS deposits and participates in IntraFi’s Insured Network Deposit Program ("IND"). The Bank had $269.9 million and $385.7 million of IND brokered deposits as of March 31, 2026 and December 31, 2025, respectively. However, to the extent that the condition or reputation of the Company or Bank deteriorates, or to the extent that there are significant changes in market interest rates which the Company and Bank do not elect to match, or if aggregate funding available to banks changes due to changes in the marketplace, we may experience an outflow of brokered deposits or difficulty with obtaining them in the future. In that event, we would be required to obtain alternate sources for funding, which may increase our cost of funds and negatively impact our net interest margin.

We have used brokered deposits and intend to continue to use brokered deposits as one of our funding sources. As of March 31, 2026, total brokered deposits were $2.9 billion, or 34% of total deposits, compared to $3.3 billion, or 36% as of December 31, 2025. These brokered deposits were comprised of savings, money market and other interest-bearing transaction accounts of $2.1 billion and $2.4 billion, and time deposits of $0.6 billion and $0.8 billion as of March 31, 2026 and December 31, 2025, respectively. The Company uses the Call Report definitions for regulatory reporting by the Bank to classify its deposits as brokered deposits. As of March 31, 2026 and December 31, 2025, total deposits included estimated totals of $2.2 billion and $2.3 billion of uninsured deposits, which represented 26% and 25% of total deposits, respectively.

The Company had no outstanding balances under its federal funds lines of credit provided by correspondent banks (which are unsecured) as of March 31, 2026 and December 31, 2025.

The Company had no outstanding balances in FHLB advances as of March 31, 2026 and December 31, 2025. Outstanding FHLB advances are secured by collateral consisting of specifically pledged marketable investment securities, a blanket lien on qualifying loans in the Bank’s commercial mortgage, residential mortgage and home equity loan portfolios.

On September 30, 2024, the Company closed a private placement of its 10.00% senior unsecured debt totaling $77.7 million maturing on September 30, 2029 (the "2029 Senior Notes"). As of March 31, 2026 and 2025, the carrying value of these 2029 Senior Notes were $76.5 million and $76.4 million, respectively, which reflected $1.15 million and $1.24 million, respectively, in unamortized deferred financing costs that are being amortized over the life of the 2029 Senior Notes.