Core Viewpoint - Eagle Bancorp, Inc. reported a significant decline in net income for the first quarter of 2025, primarily due to increased provision expenses and a decrease in net interest income, while also announcing a cash dividend for shareholders [2][3][4]. Financial Performance - Net income for Q1 2025 was $1.7 million, or $0.06 per diluted share, down from $15.3 million, or $0.50 per diluted share in Q4 2024 [2][3]. - Pre-provision net revenue (PPNR) decreased to $28.4 million from $30.3 million in the previous quarter [2]. - The provision for credit losses increased to $26.3 million from $12.1 million in the prior quarter [3][6]. Income and Expenses - Net interest income fell to $65.6 million from $70.8 million in the previous quarter, attributed to lower average interest-bearing cash balances and a higher mix of interest-bearing deposits [6][8]. - Noninterest income rose to $8.2 million from $4.1 million, driven by a $200 million separate account BOLI transaction [6][8]. - Noninterest expenses increased to $45.5 million from $44.5 million, mainly due to higher legal and professional fees [8]. Asset Quality - Nonperforming assets decreased by $8.5 million to $202.9 million, representing 1.79% of total assets, down from 1.90% [7][13]. - The allowance for credit losses as a percentage of total loans rose to 1.63% from 1.44% [7][13]. - Annualized net charge-offs for Q1 were 0.57%, compared to 0.48% in Q4 2024 [7]. Loan and Deposit Growth - Total loans were $7.9 billion, a slight increase of 0.1% from the prior quarter [13]. - Total deposits grew by $146.2 million, or 1.6%, to $9.3 billion, primarily due to an increase in time deposit accounts [13]. - The company reported a solid growth in its commercial and industrial (C&I) portfolio, which increased by $109 million, or 4.3% [4]. Capital Position - The common equity tier one capital ratio stood at 14.6%, with a tangible common equity ratio exceeding 10% [4][7]. - Total shareholders' equity increased by 1.5% to $1.2 billion, driven by an increase in valuations of available-for-sale securities [13].

Core Viewpoint - Eagle Bancorp, Inc. will host a teleconference on April 24, 2025, to discuss its first quarter 2025 financial results, which will be released on April 23, 2025 [1] Group 1: Teleconference Details - The teleconference will feature CEO Susan Riel and CFO Eric Newell discussing the earnings [1] - Interested parties must register to participate, receiving a dial-in number and unique PIN [2] - The call will also be available via live webcast on the Company's website, with a replay accessible until May 8, 2025 [2] Group 2: Company Overview - Eagle Bancorp, Inc. is the holding company for EagleBank, which began operations in 1998 [4] - The bank is headquartered in Bethesda, Maryland, and operates 12 offices in Suburban Maryland, Washington, D.C., and Northern Virginia [4] - EagleBank focuses on building relationships with businesses, professionals, and individuals in its marketplace [4]

Financial Performance - The net loss for the year ended December 31, 2024, was $47.0 million, compared to a net income of $100.5 million for the same period in 2023, primarily due to a goodwill impairment of $104.2 million[272]. - The efficiency ratio significantly worsened to 88.99% in 2024 from 49.12% in 2023, reflecting increased operational costs[266][271]. - Net interest income decreased to $288.7 million for 2024, a 1% decline from $290.5 million in 2023, primarily due to increased interest expenses on deposits and borrowings[284]. - Total noninterest income in 2024 was $19.9 million, representing a 7% decrease from $21.5 million in 2023[284]. - The return on average assets (ROAA) was (0.38)% in 2024, down from 0.84% in 2023, primarily due to the goodwill impairment[282]. Asset and Loan Portfolio - As of December 31, 2024, the Company had total assets of approximately $11.1 billion, total loans of $7.9 billion, and total deposits of $9.1 billion[248]. - Total assets decreased from $11.66 billion in 2023 to $11.13 billion in 2024, a reduction of approximately 4.5%[265]. - The loan portfolio remained relatively flat at $7,934,888 thousand as of December 31, 2024, a decrease of $33,807 thousand or 0.4% from $7,968,695 thousand in 2023[333]. - The composition of the loan portfolio includes 83% related to real estate, with 66% being non-owner occupied commercial real estate as of December 31, 2024[334]. - The Company maintained a commercial real estate (CRE) loan portfolio of $6.5 billion, representing 81.5% of total loans, compared to $6.1 billion or 77.0% at December 31, 2023[340]. Credit Losses and Allowance - The provision for credit losses increased by $34.8 million, totaling $66.4 million for 2024, compared to $31.5 million in 2023[265][272]. - The allowance for credit losses increased to $114.4 million in 2024, up from $85.9 million in 2023, reflecting a higher risk environment[265]. - Nonperforming assets and loans 90+ days past due rose to $211.4 million, representing 1.90% of total assets, compared to 0.57% in 2023[266]. - The Company recorded net charge-offs of $38.6 million in 2024, up from $18.9 million in 2023, reflecting increased credit losses[266]. - The coverage ratio for allowance for credit losses to total nonperforming loans decreased to 55% in 2024 from 131% in 2023[376]. Deposits and Funding - Total deposits reached $9.1 billion at December 31, 2024, marking a 4% increase from $8.8 billion in 2023, driven by a $558.2 million rise in interest-bearing time deposits[387]. - Noninterest-bearing deposits fell by $734.7 million, or 32%, to $1.5 billion in 2024, while interest-bearing deposits increased by $499.5 million, or 12%[388]. - Brokered deposits increased to $4.0 billion, or 43.61% of total deposits, as of December 31, 2024, compared to $2.5 billion, or 28.8% of total deposits, in 2023[393]. - The Company had total borrowings of $600.8 million, a decrease from $1.4 billion in 2023, reflecting a strategic shift in funding sources[398]. - The average daily balance of customer repurchase agreements increased to $37.9 million in 2024 from $36.7 million in 2023[398]. Market Conditions and Economic Outlook - The Company experienced a 3.1% real U.S. GDP growth in 2024, compared to 3.3% growth in 2023, despite inflationary pressures and higher interest rates[245]. - The unemployment rate in the U.S. increased to 4.0% at the end of 2024, up from 3.7% at the end of 2023[245]. - The ten-year U.S. Treasury rate averaged 4.21% in 2024, up from 3.96% in 2023, indicating an increase in longer-term interest rates[246]. - The Federal Reserve decreased interest rates by a total of 100 basis points in September 2024 and the fourth quarter, which had minimal impact on net interest margin for most of the year[428]. - The Company remains cautious regarding commercial real estate market conditions, particularly in the office sector, while noting resilience in the multi-family commercial real estate sector[247]. Strategic Initiatives - The Company’s strategy focuses on growth, retaining talented staff, and building quality lending and deposit relationships, which has fostered future growth opportunities[251]. - The Company has implemented risk management procedures and underwriting criteria to address risks in its commercial real estate portfolio[344]. - The Company expects to maintain heightened risk management procedures due to its commercial real estate concentration[434].

Group 1: Investment Strategy - Value investing is a preferred method for identifying strong stocks in various market conditions, focusing on key valuation metrics to find undervalued stocks with profit potential [2] - The Zacks Rank system and Style Scores system are tools for investors to identify stocks with specific traits, particularly in the "Value" category [3] Group 2: Company Analysis - Eagle Bancorp (EGBN) - Eagle Bancorp (EGBN) has a Zacks Rank of 2 (Buy) and an A grade for Value, with a current P/E ratio of 10.80, compared to the industry average of 11.25 [4] - EGBN's P/B ratio is 0.66, significantly lower than the industry's average P/B of 1.37, indicating attractive valuation [5] - The P/S ratio for EGBN is 1.12, compared to the industry's average P/S of 1.95, suggesting it may be undervalued [6] - EGBN's P/CF ratio is 12.54, which is lower than the industry's average P/CF of 13.91, further indicating potential undervaluation [7] Group 3: Company Analysis - Financial Institutions (FISI) - Financial Institutions (FISI) is rated 1 (Strong Buy) with a Value grade of A, and a P/B ratio of 0.91, compared to the industry's average of 1.37 [8] - FISI's P/B ratio has fluctuated between 0.59 and 0.95 over the past year, with a median of 0.78, indicating potential undervaluation [8] Group 4: Conclusion on Valuation - Both Eagle Bancorp and Financial Institutions are likely undervalued based on their financial metrics and earnings outlook, making them attractive options for value investors [9]

Core Viewpoint - Eagle Bancorp (EGBN) shows a significant improvement in earnings outlook, making it an attractive investment option as analysts continue to raise earnings estimates for the company [1][3]. Estimate Revisions - The rising trend in earnings estimate revisions reflects growing analyst optimism regarding Eagle Bancorp's earnings prospects, which is expected to positively impact its stock price [2]. - For the current quarter, Eagle Bancorp is projected to earn $0.51 per share, marking a substantial increase of +5200% compared to the same period last year. The Zacks Consensus Estimate has risen by 6.32% over the last 30 days [4]. - For the full year, the expected earnings per share is $2.44, indicating a year-over-year growth of +29.1%. The consensus estimate has increased by 8.71% over the past month, with two estimates moving higher and no negative revisions [5]. Zacks Rank - Eagle Bancorp currently holds a Zacks Rank 1 (Strong Buy), attributed to favorable estimate revisions. This ranking is based on a proven track record of outperforming the market, with Zacks 1 stocks averaging a +25% annual return since 2008 [3][6]. - Stocks with Zacks Rank 1 and 2 are shown to significantly outperform the S&P 500, indicating strong potential for Eagle Bancorp [6]. Investment Outlook - The stock has appreciated by 6.4% over the past four weeks due to strong estimate revisions, suggesting that there may still be further upside potential. Investors are encouraged to consider adding Eagle Bancorp to their portfolios [7].

Financial Highlights - Total assets reached $11.1 billion[9], total loans amounted to $7.9 billion[9], and total deposits stood at $9.1 billion[9] - Tangible common equity was $1.2 billion[9], with a tangible book value per common share of $40.59[10] - The company's market capitalization was $758 million as of January 21, 2024[10] Capital & Liquidity - The CET1 Ratio was 14.63%, placing it in the top quartile of bank holding companies with $10 billion or more in assets[14] - Tangible Common Equity to Tangible Assets ratio was 11.02%[14] - The company had $4.6 billion in total on-balance sheet liquidity and available borrowing capacity at quarter-end[14] - Uninsured deposits represented 24% of total deposits[14] Asset Quality & Loan Portfolio - The allowance for credit losses to gross loans was 1.44%, and the allowance for credit losses to performing office loans was 3.81%[14] - Total period-end deposits increased by $323 million year-over-year[52] - Other short-term borrowings were $0.5 billion as of December 31, 2024, a 60.5% decrease from the prior quarter-end[59] Performance & Outlook - Net interest margin decreased to 2.29% for the fourth quarter of 2024[43] - Management expects cash flows from the investment portfolio of $386 million in 2025 to be reinvested at higher yields[43] - The company is forecasting a 1-4% average loan growth and a 2-3% effective tax rate for 2025[48]

Financial Data and Key Metrics - The company's commentary includes non-GAAP financial information, with reconciliations provided in the earnings release posted on the Investor Relations section of the website and filed with the SEC [5] Business Line Data and Key Metrics - No specific data or metrics related to individual business lines were provided in the content Market Data and Key Metrics - No specific data or metrics related to individual markets were provided in the content Company Strategy and Industry Competition - No specific information on company strategy or industry competition was provided in the content Management Commentary on Operating Environment and Future Outlook - The company cautions against placing undue reliance on forward-looking statements, as actual results may differ materially due to identified risk factors [3][4] Other Important Information - The company's Form 10-K for the 2023 fiscal year and current reports on Form 8-K identify risk factors that could cause actual results to differ from forward-looking statements [4] Q&A Session - No Q&A session content was provided in the content

Core Insights - The article emphasizes the importance of the Zacks Rank system and its focus on earnings estimates and revisions to identify strong stocks [1] - Value investing is highlighted as a popular and successful strategy across various market conditions, utilizing traditional valuation metrics [2] - The Style Scores system is introduced, particularly the "Value" category, which helps identify top value stocks with high Zacks Ranks [3] Company Analysis: Eagle Bancorp (EGBN) - Eagle Bancorp (EGBN) currently holds a Zacks Rank of 1 (Strong Buy) and a Value grade of A, indicating strong investment potential [4] - EGBN's P/E ratio is 10.26, lower than the industry average of 11.29, with a 52-week range of 7.61 to 15.48 and a median of 10.88 [4] - The stock has a P/B ratio of 0.62, significantly below the industry average of 1.32, with a 52-week range of 0.39 to 0.74 and a median of 0.56 [5] - EGBN's P/S ratio stands at 1.05, compared to the industry's average of 1.86, indicating a favorable valuation based on sales [6] - The P/CF ratio for EGBN is 10.74, much lower than the industry average of 24.65, with a 52-week range of 5.76 to 12.84 and a median of 7.87 [7] - Overall, the metrics suggest that EGBN is likely undervalued, supported by a strong earnings outlook, making it an impressive value stock [8]

Core Insights - Eagle Bancorp reported revenue of $74.86 million for the quarter ended December 2024, reflecting a year-over-year decline of 1.4% and an EPS of $0.50 compared to $0.67 a year ago [1] - The reported revenue fell short of the Zacks Consensus Estimate of $81.08 million, resulting in a surprise of -7.67%, while the EPS exceeded the consensus estimate of $0.48 by 4.17% [1] Financial Performance Metrics - Net Interest Margin was reported at 2.3%, below the average estimate of 2.5% from two analysts [4] - The Efficiency Ratio stood at 59.5%, higher than the estimated 54.7% by two analysts [4] - Total noninterest income was $4.07 million, compared to the estimated $5.27 million [4] - Net Interest Income was reported at $70.79 million, below the estimated $75.81 million [4] Stock Performance - Over the past month, shares of Eagle Bancorp have returned -5.9%, contrasting with the Zacks S&P 500 composite's +2.1% change [3] - The stock currently holds a Zacks Rank 1 (Strong Buy), suggesting potential for outperformance in the near term [3]

Core Viewpoint - Eagle Bancorp reported quarterly earnings of $0.50 per share, exceeding the Zacks Consensus Estimate of $0.48 per share, but down from $0.67 per share a year ago, indicating a 25.37% year-over-year decline in earnings [1][2] Financial Performance - The company posted revenues of $74.86 million for the quarter ended December 2024, missing the Zacks Consensus Estimate by 7.67% and down from $75.89 million year-over-year [2] - Over the last four quarters, Eagle Bancorp has surpassed consensus EPS estimates three times and topped consensus revenue estimates only once [2] Stock Performance - Eagle Bancorp shares have declined approximately 3.6% since the beginning of the year, contrasting with the S&P 500's gain of 2.9% [3] - The stock currently holds a Zacks Rank 1 (Strong Buy), indicating expectations for outperformance in the near future [6] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.52 on revenues of $80.79 million, and for the current fiscal year, it is $2.42 on revenues of $334.55 million [7] - The estimate revisions trend for Eagle Bancorp is favorable ahead of the earnings release, which may influence future stock movements [5][6] Industry Context - The Banks - Northeast industry, to which Eagle Bancorp belongs, is currently ranked in the top 24% of over 250 Zacks industries, suggesting a positive outlook for stocks within this sector [8]