Eagle Bancorp, Inc.
) has delivered positive earnings surprises in three of the last
four quarters with an average beat of 6.0%. This commercial bank
saw Q2 year-over-year earnings growth of 54.2%. Moreover, this
Zacks #1 Rank (Strong Buy) stock trades at a P/B multiple of just
1.5, which makes it an attractive value stock.
Impressive Second Quarter Results
On July 23, Eagle Bancorp reported second quarter earnings of 37
cents per share, topping the Zacks Consensus Estimate of 35 cents
by 5.7% and the year-ago earnings of 24 cents by 54.2%. The upsurge
was aided by increased net interest income and elevated
non-interest income, partially offset by enhanced non-interest
Net Interest income climbed up 29.7% year over year to $31.0
million, driven by strong balance sheet growth and net interest
margin expansion. Net interest margin expanded 7 basis points on a
year-over-year basis to 4.39%. Additionally, the company's
non-interest income surged 37.5% to $4.4 million. However,
non-interest expenses escalated 24.2% to $18.5 million.
Eagle Bancorp's capital position improved in the quarter. Total
assets came in at $2.9 million, up 26.1% year over year. Total
deposits also surged 26.3% to $2.4 million. Moreover, total loans
increased 15.8% from the year-ago quarter to $2.2 million.
Earnings Momentum on an Upswing
Over the last 60 days, the Zacks Consensus Estimate for 2012
advanced 6.4% to $1.50, implying a year-over-year growth of 31.4%.
For 2013, the Zacks Consensus Estimate increased 7.5% to $1.58 over
the same time frame, indicating a year-over-year growth of 5.5%.
Along with a P/B multiple of 1.5, Eagle Bancorp has a P/E multiple
of just 11.5. (A P/E ratio under 15.0 and a P/B ratio below 3.0
generally indicate value). The company has a trailing 12-month
return on equity (ROE) of 13.4% compared with the peer group
average of 10.7%. This signifies an efficient reinvestment effort
by the company compared to its peers.
Shares have been soaring and are at 5-year highs. They have easily
outpaced the returns of the S&P 500 since the Great Recession.
Headquartered in Bethesda, Maryland, Eagle Bancorp, Inc. the
holding company for EagleBank provides various banking products and
services. The company was founded in 1997 and operates through 16
branch offices in Montgomery County, Maryland, Washington, D.C. and
Northern Virginia. With a market capital of about $356.9 million,
Eagle Bancorp, Inc. competes with First of Long Island Corp.
(FLIC), among others.
EAGLE BCP INC (EGBN): Free Stock Analysis
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