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Eagle Bancorp (EGBN)
NASDAQ:EGBN
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Eagle Bancorp
(NASDAQ:EGBN)
59Neutral
Eagle Bancorp (EGBN) vs. S&P 500 (SPY)
Market Cap
$629.76M
Dividend Yield3.61%
Average Volume (3M)369.44K
Price to Earnings (P/E)―
Beta (1Y)1.51
Revenue Growth9.77%
EPS Growth-147.04%
CountryUS
Employees452
SectorFinancial
Sector Strength77
IndustryBanking
Share Statistics
EPS (TTM)-1.56
Shares Outstanding30,204,203
10 Day Avg. Volume285,599
30 Day Avg. Volume369,439
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)2.60
Price to Cash Flow (P/CF)15.60
P/FCF Ratio1.80
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$28.75Price Target Upside41.00% Upside
Rating ConsensusHold
Number of Analyst Covering2
Eagle Bancorp Business Overview & Revenue Model
Company DescriptionEagle Bancorp, Inc. (EGBN) is a regional bank holding company headquartered in Bethesda, Maryland. It operates through its wholly-owned subsidiary, EagleBank, providing a range of commercial and consumer banking services. The company primarily serves clients in the Washington, D.C. metropolitan area, offering products such as commercial and residential mortgage loans, business loans, consumer loans, and a variety of deposit products. Eagle Bancorp is recognized for its focus on personalized service and community engagement, catering primarily to small- to medium-sized businesses, professionals, and individuals.
How the Company Makes MoneyEagle Bancorp generates revenue primarily through the interest income earned on loans and investments, which constitutes the largest portion of its earnings. The company offers various loan products, including commercial real estate loans, construction loans, and residential mortgage loans, which are pivotal in driving interest income. Additionally, Eagle Bancorp earns fee-based income through service charges on deposit accounts, loan servicing fees, and other banking-related services. The bank also benefits from strategic partnerships and a strong regional presence, which help in expanding its customer base and enhancing its product offerings. Furthermore, Eagle Bancorp's prudent risk management and focus on maintaining a high-quality loan portfolio contribute to its steady financial performance.
Eagle Bancorp Financial Statement Overview
Summary
Eagle Bancorp shows strong revenue growth and profitability with a stable net profit margin. However, increased leverage and a significant drop in free cash flow raise concerns about financial stability and cash management. The capital structure is sound, but careful monitoring of debt levels and cash flow is recommended.Income Statement
Eagle Bancorp's revenue growth from 2023 to 2024 was robust at approximately 11.12%, reflecting a positive trend in business operations. However, the net profit margin remained stable at around 32.22% in 2024 compared to the previous year. EBIT and EBITDA data are not available for 2024, limiting a full assessment of operational efficiency.72
Positive
Balance Sheet
The company maintains a moderate equity ratio of 11.02% in 2024, suggesting a strong capital base. The debt-to-equity ratio increased significantly to 0.42, indicating a rise in leverage that could pose future risks if not managed properly. Return on Equity remains robust at approximately 8.20%, showing effective use of equity capital.68
Positive
Cash Flow
Free cash flow experienced a sharp decline of over 52.65% from 2023 to 2024, signaling potential cash management issues. However, the operating cash flow to net income ratio remained favorable, indicating efficient conversion of net income to cash flow. The free cash flow to net income ratio also indicates adequate cash generation relative to profits.60
Neutral
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 312.08M | 280.81M | 356.52M | 364.90M | 367.26M | Gross Profit |
| 312.08M | 280.81M | 356.52M | 364.90M | 367.26M | EBIT |
| -307.74M | 0.00 | 278.11M | 237.67M | 176.15M | EBITDA |
| 0.00 | 462.00K | 193.00M | 243.55M | 180.84M | Net Income Common Stockholders |
| -47.03M | 100.53M | 140.93M | 176.69M | 132.22M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 1.28B | 722.68M | 1.88B | 4.32B | 2.91B | Total Assets |
| 11.13B | 11.66B | 11.15B | 11.85B | 11.12B | Total Debt |
| 513.82M | 93.16M | 1.07B | 405.17M | 596.10M | Net Debt |
| 501.93M | -625.79M | 796.13M | -1.29B | -1.16B | Total Liabilities |
| 9.90B | 10.39B | 9.92B | 10.50B | 9.88B | Stockholders Equity |
| 1.23B | 1.27B | 1.23B | 1.35B | 1.24B |
| Cash Flow | Free Cash Flow | |||
| 92.63M | 195.56M | 192.79M | 234.25M | 130.19M | Operating Cash Flow |
| 92.63M | 195.63M | 194.90M | 239.53M | 133.14M | Investing Cash Flow |
| -70.00M | -97.70M | -927.08M | -857.92M | -557.68M | Financing Cash Flow |
| -37.47M | 312.90M | -670.19M | 543.55M | 1.97B |
Eagle Bancorp Technical Analysis
Negative
20.39
Price Trends
24.51
Negative
25.99
Negative
22.94
Negative
Market Momentum
-1.14
Positive
24.02
Positive
9.23
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EGBN, the sentiment is Negative. The current price of 20.39 is below the 20-day moving average (MA) of 23.30, below the 50-day MA of 24.51, and below the 200-day MA of 22.94, indicating a bearish trend. The MACD of -1.14 indicates Positive momentum. The RSI at 24.02 is Positive, neither overbought nor oversold. The STOCH value of 9.23 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for EGBN.
Eagle Bancorp Risk Analysis
Eagle Bancorp disclosed 39 risk factors in its most recent earnings report. Eagle Bancorp reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Eagle Bancorp Peers Comparison
Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $7.83B | 14.29 | 15.13% | 2.98% | 7.81% | -2.49% | |
74 Outperform | $21.39B | 12.41 | 9.93% | 4.09% | 10.13% | -1.25% | |
72 Outperform | $1.51B | 9.45 | 10.44% | ― | -3.61% | -29.58% | |
67 Neutral | $2.34B | 10.73 | 9.90% | 3.70% | 3.42% | 30.07% | |
64 Neutral | $13.80B | 10.64 | 9.23% | 4.22% | 17.66% | -7.66% | |
59 Neutral | $629.76M | ― | -3.76% | 3.61% | 9.77% | -147.04% |
* Financial Sector Average
Performance Comparison
EGBN
Eagle Bancorp
20.39
-1.46
-6.68%
BKU
BankUnited
32.45
6.13
23.29%
CFR
Cullen/Frost Bankers
121.84
17.31
16.56%
HBAN
Huntington Bancshares
14.40
1.54
11.98%
CUBI
Customers Bancorp
48.20
-4.05
-7.75%
Eagle Bancorp Earnings Call Summary
Earnings Call Date: Jan 22, 2025 | % Change Since: -16.54% | Next Earnings Date: Apr 16, 2025
Earnings Call Sentiment Neutral
The earnings call reflected a mix of positive and negative aspects. While deposit growth and team strengthening were notable achievements, challenges such as office loan downgrades and a decline in net income were significant. The capital position remains strong, but increased nonperforming assets and a declining net interest margin present concerns.Highlights
Strong Deposit Growth
Fourth quarter deposit growth of $590.2 million allowed Eagle Bancorp to fully repay $1 billion in bank term funding program debt.
C&I Team Strengthening
Eagle Bancorp strengthened their C&I team to deepen relationships and grow deposits and fee income, which are key components of their profitability strategy.
Improved Classified and Criticized Loans
Special mention decreased by $120.2 million during the quarter, indicating overall positive migration of criticized and classified loans.
Capital Position and Liquidity
Tier 1 leverage ratio at 10.74%, Common equity Tier 1 ratio at 14.63%, tangible common equity ratio increased to 11.02%. Available liquidity totaled $4.6 billion.
Lowlights
Office Loan Downgrade
$74.9 million office loan moved to nonaccrual status due to a new appraisal showing a 44% decline in value since May 2022.
Decline in Net Income
Net income for Q4 totaled $15.3 million, down from $21.8 million in the prior quarter. Pretax income declined $6.9 million to $19.8 million in the fourth quarter.
Increased Nonperforming Assets
Nonperforming loans were $208.7 million at December 31, an increase of $74.3 million from September 30. Nonperforming assets to total assets increased by 68 basis points.
Net Interest Margin Decline
NIM declined 8 basis points from the third quarter to 2.29% due to declines in both interest income and interest expense.
Company Guidance
During the Q4 2024 earnings call for Eagle Bancorp Inc., several key metrics and strategic insights were shared. The company reported a net income of $15.3 million for the quarter, with net interest income before provision totaling $70.8 million. Notably, deposit growth reached $590.2 million, allowing EagleBank to fully repay $1 billion in bank term funding program debt. The bank also faced a significant 44% decline in the appraisal value of a $74.9 million office loan, which was moved to nonaccrual status. This led to net charge-offs totaling $9.5 million for the quarter. Despite these challenges, Eagle Bancorp maintained a strong capital position, with a Tier 1 leverage ratio of 10.74% and a Common Equity Tier 1 ratio of 14.63%. Looking ahead, the bank anticipates loan growth between 2% and 8% for 2025, focusing on growing relationship deposits and reducing reliance on wholesale funding to enhance net interest margin (NIM), which declined by 8 basis points to 2.29% in the fourth quarter.Eagle Bancorp Corporate Events
Executive/Board Changes
Eagle Bancorp Chair Norm Pozez Announces Departure
Neutral
Feb 11, 2025
On February 5, 2025, Norm Pozez, the Executive Chair of Eagle Bancorp, Inc., announced he will not seek re-election to the Board of Directors at the end of his term, expiring at the 2025 Annual Meeting. His decision was not due to any disputes with the company’s operations or policies. Despite his departure, his performance-based and time-based restricted stock units will continue to vest as per the original schedule. Susan Riel, currently a director and the President and CEO, will succeed him as Chair of the Board. Additionally, Eric Newell and Ryan Riel have been promoted to Senior Executive Vice Presidents, with further details on their roles expected soon.
Executive/Board ChangesBusiness Operations and StrategyFinancial Disclosures
Eagle Bancorp Faces Board Changes and Income Decline
Negative
Jan 22, 2025
On January 21, 2025, Kathy A. Raffa announced she will not seek re-election to Eagle Bancorp’s Board of Directors, though it was not due to any disagreements with the company. Eagle Bancorp reported a decrease in net income for the fourth quarter of 2024, attributed to several factors including lower noninterest income and increased provision expenses. Despite a transformative year with management changes and strategic adjustments, challenges such as asset quality and office portfolio valuation risks remain.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.