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Eagle Bancorp (EGBN)
NASDAQ:EGBN
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Eagle Bancorp
(NASDAQ:EGBN)
55Neutral
Eagle Bancorp (EGBN) vs. S&P 500 (SPY)
Market Cap
$545.14M
Dividend Yield4.29%
Average Volume (3M)461.82K
Price to Earnings (P/E)―
Beta (1Y)1.03
Revenue Growth1.68%
EPS Growth-159.14%
CountryUS
Employees451
SectorFinancial
Sector Strength87
IndustryBanks - Regional
Share Statistics
EPS (TTM)-1.49
Shares Outstanding30,369,772
10 Day Avg. Volume581,254
30 Day Avg. Volume461,818
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.00
Price to Cash Flow (P/CF)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap2.32
Enterprise Value/RevenueN/A
Enterprise Value/Gross Profit4.05
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$21.50Price Target Upside19.78% 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
17.95
Price Trends
21.11
Negative
23.69
Negative
23.47
Negative
Market Momentum
-0.75
Positive
37.23
Neutral
21.72
Neutral
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 17.95 is below the 20-day moving average (MA) of 19.65, below the 50-day MA of 21.11, and below the 200-day MA of 23.47, indicating a bearish trend. The MACD of -0.75 indicates Positive momentum. The RSI at 37.23 is Neutral, neither overbought nor oversold. The STOCH value of 21.72 is Neutral, 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 (63)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $599.18M | 10.83 | 9.99% | 1.34% | 5.23% | -7.72% | |
73 Outperform | $623.16M | 10.85 | 11.83% | 2.48% | 6.62% | 11.18% | |
71 Outperform | $638.83M | 9.68 | 15.04% | 3.15% | 5.60% | 7.03% | |
70 Neutral | $646.13M | 14.33 | 6.06% | 4.31% | 9.68% | 90.70% | |
64 Neutral | $637.89M | 9.82 | 11.13% | 2.86% | 7.90% | 10.08% | |
63 Neutral | $12.46B | 9.55 | 8.14% | 17103.96% | 12.70% | -4.66% | |
55 Neutral | $545.14M | ― | -3.60% | 4.29% | 1.68% | -159.14% |
* Financial Sector Average
Performance Comparison
EGBN
Eagle Bancorp
17.95
-1.20
-6.27%
CCBG
Capital City Bank
36.54
9.79
36.60%
GSBC
Great Southern Bancorp
55.00
3.42
6.63%
HBNC
Horizon Bancorp
14.68
2.83
23.88%
HTB
Hometrust Bancshares
34.14
8.09
31.06%
IBCP
Independent Bank
30.46
5.97
24.38%
Eagle Bancorp Earnings Call Summary
Earnings Call Date:Apr 23, 2025
(Q1-2025)
| % Change Since: -15.29%|
Next Earnings Date:Jul 23, 2025
Earnings Call Sentiment Negative
The earnings call reflects a challenging quarter for Eagle Bancorp, with significant declines in net income and increased credit loss provisions, particularly in the office portfolio. However, the bank's strong capital position and deposit growth provide some optimism for future resilience.Q1-2025 Updates
Positive Updates
Deposit Growth
Deposits grew in the first quarter by $146.2 million, indicating strength in liquidity and the ability to attract funding through digital and branch channels.
Strong Capital Position
Tier one leverage increased by 37 basis points to 11.11%, and the common equity Tier one ratio remains strong at 14.61%, indicating a robust capital position.
Increase in Noninterest Income
Noninterest income increased by $4.1 million, primarily driven by a $200 million separate account BOLI transaction, which is expected to continue generating $3 to $4 million per quarter.
Negative Updates
Net Income Decline
Net income for the quarter was $1.7 million, a significant decrease from $15.3 million in the prior quarter, largely due to higher provisions for credit losses and a decline in net interest income.
Increased Provision for Credit Losses
The provision for credit losses increased by $26.3 million, with $13.9 million related to office loans, reflecting increased risk in the office portfolio.
Decline in Net Interest Income
Net interest income before provision decreased to $65.6 million from $70.8 million in the prior quarter, driven by lower average interest-bearing cash balances and a higher mix of interest-bearing deposits.
Challenges in Office Portfolio
Sustained pressure on office property valuations and increased reserves reflect ongoing challenges in the office portfolio. The ACL coverage for performing office loans increased significantly.
Company Guidance
During the Eagle Bancorp Inc. First Quarter 2025 Earnings Conference Call, the company provided various metrics and insights into their financial performance and strategic direction. Eagle Bancorp reported a net income of $1.7 million for the quarter, reflecting ongoing earnings pressure. The balance sheet remains resilient with high capital levels and strong liquidity, with deposits growing by $146.2 million in the first quarter. The commercial lending portfolio saw a period-end growth of $109.1 million, or 4.3% over December 31, 2024. The provision for credit losses significantly increased to $26.3 million, primarily due to a $13.9 million increase in the qualitative overlay for office loans. The allowance for credit losses rose to $129.5 million, representing a coverage of 1.63% of total loans. Nonperforming loans decreased to $200.4 million, while net charge-offs were $11.3 million. The net interest margin (NIM) slightly declined by one basis point to 2.28%, with net interest income at $65.6 million. Noninterest income saw an increase to $8.2 million, mainly driven by a $200 million BOLI transaction. The bank's capital position remains robust, with the Tier 1 leverage ratio increasing to 11.11%. Eagle Bancorp continues to focus on strengthening its core banking fundamentals and executing its strategy for long-term success despite market uncertainties.Eagle Bancorp Corporate Events
DividendsBusiness Operations and StrategyFinancial Disclosures
Eagle Bancorp Reports Q1 2025 Income Decline
Negative
Apr 23, 2025
Eagle Bancorp, Inc. reported a significant decline in net income for the first quarter of 2025, with earnings dropping to $1.7 million from $15.3 million in the previous quarter. The decrease was attributed to increased provision expenses, a decline in net interest income, and higher noninterest expenses. Despite these challenges, the company announced a cash dividend and reported growth in its C&I portfolio and total deposits, reflecting its strategic focus. The company also highlighted concerns over valuation risks in its office portfolio and noted an increase in credit loss reserves. Eagle Bancorp remains committed to its long-term strategy of capital accretion and maintaining a strong capital position.
Spark’s Take on EGBN Stock
According to Spark, TipRanks’ AI Analyst, EGBN is a Neutral.
Eagle Bancorp’s overall stock score reflects a blend of solid revenue growth and a strong capital position, offset by concerns about increased leverage, declining cash flow, and valuation. The technical indicators suggest bearish momentum, while earnings call and corporate events highlight both operational strengths and strategic challenges. Investors should weigh the strong dividend yield against potential risks in valuation and asset quality.
To see Spark’s full report on EGBN stock, click here.
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.
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.