Eagle Bancorp (EGBN) Reports In-Line Q2 EPS, Beats on Revenues

Eagle Bancorp (NASDAQ: EGBN) reported Q2 EPS of $1.08, in-line with the analyst estimate of $1.08. Revenue for the quarter came in at $83.8 million versus the consensus estimate of $77.96 million.

“We are very pleased to report another quarter of favorable earnings, which continued to exhibit positive trends of balance sheet growth, revenue growth, solid asset quality and favorable operating leverage,” noted Ronald D. Paul, Chairman and Chief Executive Officer of Eagle Bancorp, Inc. Mr. Paul continued, “The Company’s assets ended the quarter at $7.88 billion, representing 9% growth over the second quarter of 2017 and total shareholders’ equity exceeded $1.00 billion for the first time. Second quarter 2018 earnings resulted in a return on average assets of 1.92%, return on average common equity (“ROACE”) of 14.93% and a return on average tangible common equity (“ROATCE”) of 16.71%.” Mr. Paul added “Our financial results in the second quarter continue to exhibit balanced and consistent performance.”

Mr. Paul added, “In the second quarter of 2018, period end total loans growth was a modest 1% over March 31, 2018, while total deposits increased 2% over March 31, 2018. New loans settled in the second quarter of 2018 were similar to the first quarter of 2018, which had a 3% growth rate, however, substantial loan payoffs and delays in new loan fundings occurred in the second quarter which restrained net loan growth. The total of unfunded loan commitments remains stable over the last six quarters at approximately $2.4 billion. The Company continues to emphasize strategies focusing on achieving core deposit growth. Significantly, the mix of noninterest deposits to total deposits averaged 33% in the second quarter of 2018 as compared to 32% in the second quarter of 2017. Since spread earnings are the key element of our revenue, we remain focused on our net interest margin, which has been stable as market rates and related deposit rates have continued to increase.”

Mr. Paul noted, “While we are seeing a higher cost of funds, we are also experiencing higher loan yields, in part due to rate adjustments in our predominately variable and adjustable rate loan portfolio.”

For earnings history and earnings-related data on Eagle Bancorp (EGBN) click here.

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