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1. Company Snapshot

1.a. Company Description

Eagle Bancorp, Inc.operates as the bank holding company for EagleBank that provides commercial and consumer banking services primarily in the United States.The company also offers various commercial and consumer lending products comprising commercial loans for working capital, equipment purchases, real estate lines of credit, and government contract financing; asset based lending and accounts receivable financing; construction and commercial real estate loans; business equipment financing; consumer home equity lines of credit, personal lines of credit, and term loans; consumer installment loans, such as auto and personal loans; personal credit cards; and residential mortgage loans.


In addition, it provides online and mobile banking services; and other services, including cash management services, business sweep accounts, lock boxes, remote deposit captures, account reconciliation services, merchant card services, safety deposit boxes, and automated clearing house origination, as well as after-hours depositories and ATM services.Further, the company offers insurance products and services through a referral program.The company serves sole proprietors, small and medium-sized businesses, partnerships, corporations, non-profit organizations and associations, and individuals, as well as investors.


As of December 31, 2021, it operated seventeen banking offices comprising 6 in Suburban Maryland, 5 in the District of Columbia, and 6 in Northern Virginia.Eagle Bancorp, Inc.was incorporated in 1997 and is headquartered in Bethesda, Maryland.

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1.b. Last Insights on EGBN

Here is a 90-word analysis of the negative drivers behind Eagle Bancorp, Inc.'s recent stock performance: Eagle Bancorp's Q4 earnings, although beating estimates, were negatively impacted by a 25% year-over-year decline in EPS to $0.50. The company's revenue and EPS missed Wall Street estimates, and its earnings declined compared to the same period last year. Meanwhile, the company's net interest margin compression and rising operating expenses may have weighed on investor sentiment. Additionally, the company's credit quality concerns, as indicated by its Chief Credit Officer, may have contributed to the negative sentiment.

1.c. Company Highlights

2. Eagle Bancorp's Q3 2025 Earnings: Navigating Asset Quality Issues

Eagle Bancorp reported a net loss of $67.5 million or $2.22 per share, compared to a loss of $69.8 million or $2.30 per share last quarter. The company's actual EPS came out at -$2.22, significantly worse than estimates at -$0.3. Revenue growth for next year is estimated at 1.8%. The company's capital position remains strong, with tangible common equity to tangible assets at 10.39%. The net loss reduction was a positive note, but the EPS miss was substantial.

Publication Date: Nov -25

📋 Highlights
  • Net Loss Narrowed:: Q3 net loss decreased to $67.5M ($2.22/share) from $69.8M ($2.30/share) in Q2.
  • Credit Quality Improved:: Criticaled/classified loans fell for two straight quarters; $121M in loans moved to held-for-sale.
  • Loan Risk Assessment:: Independent review identified $257M in potential commercial loan losses over 30 months.
  • Strong Capital Position:: Tangible common equity to tangible assets ratio held at 10.39%, signaling robust capital.

Asset Quality and Credit Performance

The company's credit performance showed signs of improvement, with total criticized and classified office loans declining for two consecutive quarters. Kevin Geoghegan, Chief Credit Officer, mentioned that the company has moved $121 million of loans to held for sale and is working with buyers to sell these assets. An independent loan review concluded that total potential commercial loan losses are $257 million. As Ryan Riel stated, "We're confident that disposition will occur during the fourth quarter of 2025," indicating a proactive approach to managing asset quality issues.

Outlook and Strategic Plans

The company expects net interest income to grow in 2026, driven by mix improvements and lower funding costs. They anticipate that loan growth will continue to be concentrated in C&I, with a strong focus on disciplined credit standards. Eric Newell mentioned that they expect to get better yields in C&I and will be paying down wholesale funding, which should be helpful in terms of cost of funds. The Board will consider any options that add value to shareholders, indicating a commitment to creating value.

Valuation and Dividend Yield

With a Price-to-Tangible Book Value (P/TBV) not directly available, we can look at the Price-to-Book Ratio (P/B Ratio) at 0.49, indicating that the stock might be undervalued. The Dividend Yield is 2.76%, providing some return to shareholders. Given the current challenges, the valuation seems reasonable, but the significant EPS miss and the ongoing asset quality issues are concerns that need to be monitored.

3. NewsRoom

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EagleBank Foundation's Annual Fight Against Cancer Golf Tournament Breaks Fundraising Records with More Than $500,000 Raised

Dec -04

Source: globenewswire.com

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Connor Clark & Lunn Investment Management Ltd. Decreases Stock Holdings in Eagle Bancorp, Inc. $EGBN

Nov -17

Source: defenseworld.net

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Eagle Bancorp: High-Reward Potential From Deeply Distressed Valuation

Oct -29

Source: seekingalpha.com

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Eagle Bancorp, Inc. (EGBN) Q3 2025 Earnings Call Transcript

Oct -23

Source: seekingalpha.com

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CORRECTION - Eagle Bancorp, Inc. Announces Third Quarter 2025 Results and Cash Dividend

Oct -23

Source: globenewswire.com

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Here's What Key Metrics Tell Us About Eagle Bancorp (EGBN) Q3 Earnings

Oct -23

Source: zacks.com

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Eagle Bancorp (EGBN) Reports Q3 Loss, Misses Revenue Estimates

Oct -23

Source: zacks.com

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Eagle Bancorp Announces Earnings Call on October 23, 2025

Oct -03

Source: globenewswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (10.00%)

6. Segments

Banking and Related Activities

Expected Growth: 10.0%

Eagle Bancorp, Inc.'s 10.0% growth in Banking and Related Activities is driven by strong loan growth, fueled by a robust commercial real estate market and increasing demand for construction loans. Additionally, the company's focus on relationship-based banking and expansion into new markets has contributed to the growth. Furthermore, the company's efficient cost structure and solid asset quality have also supported the growth.

7. Detailed Products

Commercial Banking

Eagle Bancorp, Inc. offers a range of commercial banking services, including cash management, treasury management, and commercial lending, to help businesses manage their finances and achieve their goals.

Consumer Banking

Eagle Bancorp, Inc. provides consumer banking services, including checking and savings accounts, credit cards, and personal loans, to help individuals manage their finances and achieve their personal goals.

Mortgage Lending

Eagle Bancorp, Inc. offers a range of mortgage lending services, including residential and commercial mortgages, to help individuals and businesses finance their real estate needs.

Wealth Management

Eagle Bancorp, Inc. provides wealth management services, including investment management, trust services, and financial planning, to help individuals and families achieve their long-term financial goals.

Treasury Management

Eagle Bancorp, Inc. offers treasury management services, including cash management, wire transfers, and account reconciliation, to help businesses manage their cash flow and optimize their financial operations.

8. Eagle Bancorp, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Eagle Bancorp, Inc. operates in a highly competitive industry, but the threat of substitutes is moderate due to the complexity of banking services and the need for regulatory compliance.

Bargaining Power Of Customers

Eagle Bancorp, Inc. has a diverse customer base, and individual customers do not have significant bargaining power, reducing the threat of customer bargaining power.

Bargaining Power Of Suppliers

Eagle Bancorp, Inc. has a diverse supplier base, and individual suppliers do not have significant bargaining power, reducing the threat of supplier bargaining power.

Threat Of New Entrants

The banking industry is highly regulated, and new entrants face significant barriers to entry, including high capital requirements and regulatory hurdles, but fintech companies and digital banks pose a threat to traditional banks like Eagle Bancorp, Inc.

Intensity Of Rivalry

The banking industry is highly competitive, and Eagle Bancorp, Inc. faces intense competition from other banks and financial institutions, leading to a high level of rivalry.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 52.36%
Debt Cost 9.20%
Equity Weight 47.64%
Equity Cost 9.20%
WACC 9.20%
Leverage 109.91%

11. Quality Control: Eagle Bancorp, Inc. passed 2 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Eagle Bancorp

A-Score: 5.4/10

Value: 9.1

Growth: 4.2

Quality: 4.2

Yield: 8.0

Momentum: 3.0

Volatility: 3.7

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

20.98$

Current Price

20.98$

Potential

-0.00%

Expected Cash-Flows