Eagle Bancorp Q2 Net Income Misses Estimates by 35% on Higher Credit Provisions
EGBN sits 79% above its 52-week low of $15.03.
Summary
Eagle Bancorp's Q2 net income fell to $6.92M, missing the $10.67M consensus by 35%, driven by a higher provision for credit losses tied to problem asset resolution. This follows a strong Q1 rebound to $14.7M, marking a sharp sequential decline. Net interest margin expanded to 2.52% as the bank reduced reliance on brokered deposits, and noninterest expenses dropped on lower FDIC insurance costs. The results come amid a recent DOJ settlement and activist investor board presence, adding scrutiny to credit quality. The stock trades at 12x forward earnings, below its three-month average of 13x, with a median analyst target of $30.
At the time of this announcement, EGBN was trading at $26.94 on NASDAQ in the Finance sector, with a market capitalization of approximately $821.6M. The 52-week trading range was $15.03 to $29.29. This news item was assessed with negative market sentiment and an importance score of 8 out of 10. Source: Reuters.