Eric Newell
EAGLE BANCORPAbout Eric Newell
Eric R. Newell, 45, is Senior Executive Vice President and Chief Financial Officer of Eagle Bancorp, Inc., promoted to SEVP in February 2025 after joining the Company in September 2023; he holds a BS in Business Administration and an MS in Business Analytics from Northeastern University and is a CFA charterholder (2009) . Operating performance under his finance leadership features a Q4 2024 net interest margin of 2.29%, operating efficiency ratio of 59.5%, and insured deposits at 76.4% of total, while capital remained strong with CET1 at 14.63% and tangible common equity ratio at 11.02% . The Company repaid $1.0B of BTFP borrowings in Q4 2024 using deposit growth and excess liquidity, and increased allowance coverage to 1.44% of loans as office credit migrated to nonaccrual, with Mr. Newell emphasizing deposit cost reductions and wholesale funding efficiency going into 2025 .
Past Roles
| Organization | Role | Years | Strategic impact |
|---|---|---|---|
| Equity Bancshares (NYSE: EQBK) | EVP & CFO | 2020–2019/2023 (since April 2020, joined EGBN Sept 2023) | Led finance, IT, and loan/deposit/payment operations teams at a ~$5.1B community bank . |
| United Financial Bancorp (NASDAQ: UBNK) | CFO | 2013–2019 | CFO until sale to Peoples United Bank in Oct 2019; oversaw commercial bank finance for ~$7.1B platform . |
| AllianceBernstein; Fitch Ratings; FDIC | Various finance/analyst/regulatory roles | Prior to 2013 | Early-career analytical and regulatory experience; builds risk and markets expertise . |
External Roles
No public company directorships or external board roles disclosed in Company filings reviewed .
Fixed Compensation
| Item | 2023 | 2024 |
|---|---|---|
| Base salary ($) | $119,227 | $482,868 |
| SEIP Target bonus (% of salary) | N/A | 80% |
| SEIP Threshold / Maximum (% of salary) | N/A | 50% / 160% |
| Actual SEIP bonus ($) | $0 (no SEIP payout) | $0 (SEIP not funded) |
| Other cash bonuses ($) | $100,000 sign-on | $150,000 sign-on (paid in 2024) |
| Car allowance ($) | $2,077 | $9,000 |
| Insurance premiums ($) | $389 | $2,900 |
| Housing ($) | $0 | $13,800 |
Performance Compensation
Annual Incentive (SEIP) — 2024 design and rigor
| Metric | Weighting (Other NEOs) | Threshold | Target | Maximum |
|---|---|---|---|---|
| Adjusted Income ($000s) | 15–25% | $87,153 | $102,533 | $117,913 |
| Average Loan Growth (ex-HFS) | 15–30% | 2.16% | 2.54% | 2.92% |
| Average Core Deposit Growth | 20–30% | 4.60% | 5.41% | 6.22% |
| Efficiency Ratio | 10–20% | 54.86% | 52.25% | 49.64% |
| Net Interest Margin | 15–20% | 2.26% | 2.66% | 3.06% |
| Note: The SEIP required adjusted net income ≥85% of target to fund; 2024 did not meet threshold, so no SEIP payouts were made . |
Long-Term Incentive (LTIP) grants and vesting
| Grant year (service year) | Instrument | Shares/Units | Grant-date value / valuation basis | Vesting structure |
|---|---|---|---|---|
| Feb 2024 (2023 service) | Time-vested RS | 3,297 | Included in $171,363 total; RS fair value at $24.26/share | 3 equal annual installments starting 1st anniversary of grant . |
| Feb 2024 (2023 service) | PRSUs (at target) | 4,946 | Included in $171,363; 60% market-condition valued $12.69/share via Monte Carlo; 40% performance-condition at $24.26/share | 3-year cliff subject to relative TSR and adjusted EPS goals . |
| Feb 2025 (2024 service) | Time-vested RS | 6,576 | Part of $658,246 total; RS valued at $22.76/share | 3 equal annual installments starting 1st anniversary . |
| Feb 2025 (2024 service) | Stock options | 17,820 | Valued at $8.40/option (Black-Scholes) | 3 equal annual installments; (strike/expiration not disclosed) . |
| Feb 2025 (2024 service) | PRSUs (at target) | 19,730 | 50% performance-condition valued at $22.76/share; 50% market-condition valued at $13.62/share (Monte Carlo) | 3-year cliff; 2025–2027 measurement; vest 50–150% by KRX-relative TSR and adjusted EPS growth; capped at target if Company’s absolute TSR or EPS growth is negative . |
Pay-for-performance calibration
- 2022 PRSUs (2021 service) paid 0% as both ROAA and TSR ranked below threshold vs KRX peers over the 2021–2024 period, reinforcing payout discipline under relative metrics .
Equity Ownership & Alignment
| Item | Detail |
|---|---|
| Beneficial ownership (3/20/2025) | 29,489 shares; unvested time-vested restricted stock counts in ownership; none of such shares are pledged; total shares outstanding 30,369,772 . |
| Outstanding unvested awards (12/31/2024) | 2023 time-vested RS: 9,212; 2024 time-vested RS: 3,297; 2024 PRSUs: 4,946; total unvested listed above; PRSUs vest on performance after 3 years . |
| Hedging/pledging policy | Hedging prohibited; pledging limited to ≤50% of shares and cannot exceed 25% of executive’s net worth . |
| Ownership guidelines | Executives required to hold Company stock equal to 2× base salary; all required executives and directors were in compliance as of 12/31/2024 . |
Employment Terms
| Provision | Terms |
|---|---|
| Term/notice | No fixed term; executive may resign with 90 days’ notice . |
| Base salary in agreement | $476,907 initial; subsequent actual base shown in compensation tables . |
| Annual incentive eligibility | Eligible under Board-approved plans subject to Committee performance criteria . |
| Equity eligibility | Equity awards at Compensation Committee discretion under stock plans . |
| Severance (non-CIC) | If terminated without cause: salary at highest rate in prior 12 months + cash bonuses paid in prior 12 months, paid in equal monthly installments over 12 months post-release . |
| Change-in-control (double trigger) | If terminated without cause within 120 days pre/12 months post-CIC or for good reason within 12 months post-CIC: lump sum 1.99× (highest annual salary in prior 12 months + cash bonuses paid in prior 12 months) + 36× monthly healthcare premium . |
| Non-compete / non-solicit | During employment and for 12 months post-termination . |
| Estimated payouts (12/31/2024) | Termination without cause: $642,384; CIC cash: $1,920,823; equity acceleration (assumed at target): $451,561; total CIC incl. equity: $2,372,384 (before any 280G cutback) . |
| Clawback policy | Dodd-Frank compliant clawback for erroneously awarded incentive-based compensation over the prior 3 completed fiscal years . |
Track Record, Value Creation, and Execution Risk
- Funding costs optimization: Fully repaid $1.0B BTFP borrowings by Q4 2024 using deposit growth and excess liquidity; expects further deposit cost benefits in 1H 2025 through pricing discipline and wholesale funding efficiency .
- Balance sheet and capital: CET1 14.63%, TCE/TA 11.02%; total liquidity and borrowing capacity ~$4.6B; uninsured deposits at 24% of total with weighted average relationship >8 years .
- Profitability drivers and risks: Q4 2024 NIM down to 2.29%; PPNR $30.3M; NPAs rose to 1.90% of assets due to a $74.9M office loan moving to nonaccrual; performing office ACL coverage at 3.81% .
- 2025 outlook: Target NIM 2.50–2.75%, average deposits +1–4%, noninterest expense +3–5%, with noted sensitivity to rates, funding competition, and regulation .
Investment Implications
- Compensation alignment: No 2024 SEIP payouts due to not meeting funding threshold; 2022 PRSUs forfeited at 0%—underscoring pay-for-performance rigor and reduced risk of discretionary awards .
- Vesting and potential selling pressure: Time-vested RS and options vest ratably over 3 years; PRSUs cliff-vest after 3-year measurement; 2025 awards (RS 6,576; options 17,820; PRSUs 19,730) create scheduled vesting events through 2027, but hedging is prohibited and pledging tightly limited, moderating forced-selling risk .
- Retention and CIC economics: Double-trigger CIC at 1.99× cash plus health premiums indicates competitive retention economics; estimated CIC package including equity at ~$2.37M as of 12/31/2024—material but not egregious for regional bank CFO scale .
- Execution focus: Newell’s track record across multiple bank CFO roles and current emphasis on deposit growth, funding cost reductions, and capital discipline are aligned with EGBN’s levers to improve NIM and PPNR; key watch items are office CRE credit migration and delivering on 2025 margin/expense targets .