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Eagle Bancorp (EGBN)
NASDAQ:EGBN
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Eagle Bancorp (EGBN) AI Stock Analysis

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EGBN

Eagle Bancorp

(NASDAQ:EGBN)

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Neutral 60 (OpenAI - 4o)
Rating:60Neutral
Price Target:
$21.00
▲(0.62% Upside)
Eagle Bancorp's overall score is driven by financial challenges, particularly in revenue and profitability, which weigh heavily on its valuation. Despite these issues, technical indicators show positive momentum, and strategic corporate events provide some optimism for future stability.

Eagle Bancorp (EGBN) vs. SPDR S&P 500 ETF (SPY)

Eagle Bancorp Business Overview & Revenue Model

Company DescriptionEagle Bancorp, Inc. operates as the bank holding company for EagleBank that provides commercial and consumer banking services primarily in the United States. The company also offers various commercial and consumer lending products comprising commercial loans for working capital, equipment purchases, real estate lines of credit, and government contract financing; asset based lending and accounts receivable financing; construction and commercial real estate loans; business equipment financing; consumer home equity lines of credit, personal lines of credit, and term loans; consumer installment loans, such as auto and personal loans; personal credit cards; and residential mortgage loans. In addition, it provides online and mobile banking services; and other services, including cash management services, business sweep accounts, lock boxes, remote deposit captures, account reconciliation services, merchant card services, safety deposit boxes, and automated clearing house origination, as well as after-hours depositories and ATM services. Further, the company offers insurance products and services through a referral program. The company serves sole proprietors, small and medium-sized businesses, partnerships, corporations, non-profit organizations and associations, and individuals, as well as investors. As of December 31, 2021, it operated seventeen banking offices comprising 6 in Suburban Maryland, 5 in the District of Columbia, and 6 in Northern Virginia. Eagle Bancorp, Inc. was incorporated in 1997 and is headquartered in Bethesda, Maryland.
How the Company Makes MoneyEagle Bancorp generates revenue primarily through interest income from loans and investment securities. The bank's key revenue streams include interest earned on commercial and residential mortgages, construction loans, and lines of credit, alongside interest from its investment portfolio. Additionally, the company earns non-interest income through service charges on deposit accounts, transaction fees, and income from wealth management services. A significant aspect of its revenue model is the interest rate spread, which is the difference between the interest earned on loans and the interest paid on deposits. Partnerships with local businesses and government entities also contribute to its earnings by providing customized financial solutions that drive loan growth and deposit retention.

Eagle Bancorp Earnings Call Summary

Earnings Call Date:Jul 23, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Oct 22, 2025
Earnings Call Sentiment Neutral
The earnings call reflects a challenging quarter marked by significant provisions for credit losses and a net loss. However, there are positive developments, including core deposit growth, net interest margin expansion, and progress in C&I lending, which indicate strategic advancements. The sentiment is balanced by the substantial challenges in the office loan portfolio and the net loss reported.
Q2-2025 Updates
Positive Updates
Core Deposit Growth
Notable progress in growing core deposits by $304.1 million, contributing to reduced reliance on wholesale funding.
Pre-Provision Net Revenue Increase
Pre-provision net revenue increased by $2.3 million to $30.7 million, driven by increased net interest income and lower noninterest expenses.
Net Interest Margin Expansion
Net interest margin expanded by 9 basis points from the first quarter to 2.37% due to reduced funding costs and strategic balance sheet management.
C&I Lending Growth
Over two-thirds of loan originations in the second quarter were C&I loans, supporting the strategic objective to diversify the loan portfolio.
Negative Updates
Significant Provision for Credit Losses
A $138 million provision for credit losses impacted the quarter, with $45.4 million related to office loan overlay and $70 million tied to exit strategies.
Net Loss for the Quarter
The company reported a net loss of $69.8 million or $2.30 per share, contrasting with the previous quarter's net income of $1.7 million.
Increase in Nonperforming Loans
Nonperforming loans increased by $26 million to $226.4 million, with significant inflows from office and land properties.
Challenges in Office Loan Portfolio
Structural changes in the office sector led to a reserve coverage increase to 11.54%, with nonperforming assets to total assets increasing to 2.16%.
Company Guidance
During the Eagle Bancorp, Inc. Second Quarter 2025 Earnings Call, the company provided detailed guidance on their financial performance and strategic initiatives. The call revealed a significant net loss of $69.8 million or $2.30 per share for the quarter, attributed mainly to credit reserve building and loan resolution efforts, particularly in the office sector. The allowance for credit losses increased to $183 million, covering 2.38% of total loans, while the ACL coverage ratio for performing office loans rose to 11.54%, up from 5.78% the previous quarter. Despite a challenging quarter marked by $138 million in provisions for credit losses, including $45.4 million related to office overlay, Eagle Bancorp reported positive developments such as a $2.3 million increase in pre-provision net revenue and a nine-basis-point expansion in net interest margin to 2.37%. The bank also highlighted its strategic focus on growing core deposits and reducing reliance on wholesale funding, with average deposits growing by $1 billion year-over-year. Furthermore, management expressed optimism for improved financial performance in the third quarter and a return to a normalized provisioning environment by the first quarter of 2026.

Eagle Bancorp Financial Statement Overview

Summary
Eagle Bancorp faces challenges with declining revenue and profitability, negatively affecting the income statement. The balance sheet is relatively stable but shows risks concerning asset and equity declines. Cash flow is strong, reflecting effective cash management, yet strategic adjustments are necessary for sustainable growth.
Income Statement
48
Neutral
Eagle Bancorp's income statement shows a decline in revenue with a concerning net loss in the TTM period. The gross profit margin has decreased from previous periods, and the company is experiencing negative EBIT and EBITDA margins. Despite historical revenue growth, the recent drop in revenue and profitability indicates potential challenges in maintaining operational efficiency and controlling costs.
Balance Sheet
60
Neutral
The company's balance sheet reflects a moderate debt-to-equity ratio, indicating a manageable level of leverage. The equity ratio remains stable, suggesting a solid capital structure. However, the decline in stockholders' equity and total assets could pose risks to long-term financial stability. Overall, the balance sheet appears relatively stable but requires monitoring for potential liquidity issues.
Cash Flow
65
Positive
Eagle Bancorp demonstrates strong cash flow management with a positive operating cash flow and free cash flow. The free cash flow growth rate is healthy, reflecting effective cash management. The operating cash flow to net income ratio is favorable, highlighting strong cash generation relative to reported earnings. Nevertheless, fluctuations in financing and investing cash flows suggest areas for improvement.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue707.50M646.86M448.27M404.88M435.68M
Gross Profit244.39M280.81M356.52M386.84M320.31M
EBITDA-27.04M131.00M193.00M243.55M180.84M
Net Income-47.03M100.53M140.93M176.69M132.22M
Balance Sheet
Total Assets11.13B11.66B11.15B11.85B11.12B
Cash, Cash Equivalents and Short-Term Investments1.50B2.23B1.88B4.32B2.91B
Total Debt623.08M1.49B1.11B429.09M622.83M
Total Liabilities9.90B10.39B9.92B10.50B9.88B
Stockholders Equity1.23B1.27B1.23B1.35B1.24B
Cash Flow
Free Cash Flow123.44M195.56M192.79M234.25M130.19M
Operating Cash Flow123.77M195.63M194.90M239.53M133.14M
Investing Cash Flow310.74M-97.70M-927.08M-857.92M-557.68M
Financing Cash Flow-523.71M312.90M-670.19M543.55M1.97B

Eagle Bancorp Technical Analysis

Technical Analysis Sentiment
Positive
Last Price20.87
Price Trends
50DMA
18.91
Positive
100DMA
18.73
Positive
200DMA
20.77
Positive
Market Momentum
MACD
0.63
Negative
RSI
60.78
Neutral
STOCH
66.77
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EGBN, the sentiment is Positive. The current price of 20.87 is above the 20-day moving average (MA) of 20.37, above the 50-day MA of 18.91, and above the 200-day MA of 20.77, indicating a bullish trend. The MACD of 0.63 indicates Negative momentum. The RSI at 60.78 is Neutral, neither overbought nor oversold. The STOCH value of 66.77 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 (68)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
76
Outperform
$736.79M12.310.86%2.03%4.81%
74
Outperform
$830.02M13.776.56%3.95%7.86%170.93%
73
Outperform
$727.37M12.4910.68%2.28%9.68%13.46%
71
Outperform
$706.55M10.6410.98%2.61%4.55%16.84%
70
Outperform
$652.97M10.2713.80%3.24%3.17%-1.53%
60
Neutral
$633.80M-2.63%3.16%-2.45%15.35%
68
Neutral
$18.00B11.429.92%3.81%9.73%1.22%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
EGBN
Eagle Bancorp
20.87
-1.00
-4.57%
HTBK
Heritage Commerce
10.09
0.72
7.68%
SMBC
Southern Missouri Bancorp
54.30
-1.29
-2.32%
IBCP
Independent Bank
31.53
-0.78
-2.41%
SMBK
SmartFinancial
36.61
7.75
26.85%
SPFI
South Plains Financial
39.24
5.90
17.70%

Eagle Bancorp Corporate Events

Executive/Board ChangesBusiness Operations and Strategy
Eagle Bancorp Appoints New Independent Directors
Positive
Sep 8, 2025

On September 8, 2025, Eagle Bancorp, Inc. announced the appointment of Kris Pederson and Ted Wilm as independent directors to its Board of Directors and the Board of EagleBank. This strategic move increases the board to ten members, nine of whom are independent, and aims to leverage the extensive experience of both appointees in business management and financial services to strengthen EagleBank’s strategic initiatives and long-term success.

DividendsBusiness Operations and StrategyFinancial Disclosures
Eagle Bancorp Reports Q2 2025 Net Loss of $69.8M
Negative
Jul 23, 2025

Eagle Bancorp, Inc. reported a net loss of $69.8 million for the second quarter of 2025, primarily due to a significant increase in provision expenses related to credit risk management. Despite the loss, the company saw improvements in core profitability, with an increase in pre-provision net revenue and a stronger balance sheet. The company’s strategic focus on resolving challenged loans and addressing valuation pressures in its office portfolio led to higher credit loss reserves and nonperforming assets. Eagle Bancorp also announced a cash dividend of $0.165 per share, payable on August 29, 2025.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.Date of analysis: Sep 09, 2025