Eagle Bancorp Q2 net income falls on higher credit loss provision 

Overview

• US community bank's Q2 net income fell and missed analyst expectations

• Net interest income and noninterest income declined from prior quarter

• Company declared a $0.01 per share quarterly dividend

Outlook

• Company did not provide specific guidance for the current qtr or full yr

Result Drivers

• CREDIT LOSS PROVISION - Higher provision for credit losses, mainly from problem asset resolution, weighed on earnings

• FUNDING MIX - Net interest margin expanded as lower-cost funding reduced reliance on brokered deposits, per CFO Eric Newell

• EXPENSE REDUCTION - Noninterest expense decreased, mainly due to lower FDIC insurance expense and reduced loan disposition costs

Company press release: ID:nGNX9WKsfY

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "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 $30.00, about 10.1% above its July 21 closing price of $27.26

• The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 13 three months ago

Reuters Recommended Reads

• July 21 - Metropolitan Bank Q2 EPS falls on credit loss provision and one-time expenses

• July 21 - FFB Bancorp's Q2 net income falls on interest margin pressure

• July 21 - FS Bancorp Q2 net income edges up; deposits fall as brokered deposits decrease

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)