Eagle Bancorp posts $69.8 mln Q2 loss on higher provisions; announces dividend

Overview

• Eagle Bancorp reports Q2 net loss of $69.8 mln due to higher provision expenses

• Net interest income rises slightly, noninterest income decline

• Co announces $0.165 per share dividend, maintains strong capital position

Outlook

• Company expects remediation activity to continue over coming quarters

• Eagle Bancorp focuses on long-term value creation for shareholders

• Company highlights strong capital position with CET1 at 14.0%

Result Drivers

• CREDIT RISK STRATEGY - Co increased provision expenses by $111.9 mln to address credit risk in loan portfolio, particularly office-related reserves

• NET INTEREST MARGIN - Expansion of net interest margin driven by lower funding costs and reduced borrowings

• CORE PROFITABILITY - Growth in pre-provision net revenue reflects disciplined execution of strategic plan, per CEO Susan G. Riel

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 1 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the banks peer group is "buy"

• Wall Street's median 12-month price target for Eagle Bancorp Inc is $21.50, about 0.7% above its July 22 closing price of $21.35

• The stock recently traded at 8 times the next 12-month earnings vs. a P/E of 8 three months ago

Press Release: ID:nGNX3svFJ4