Eagle Bancorp reports Q2 EPS 26c, consensus 46c

Reports Q2 revenue $21M, consensus $16.56M. Net interest margin was 3.47% in the second quarter of 2023, compared to 3.86% in the preceding quarter, and 4.09% in the second quarter a year ago. Book value per share was $20.37 at June 30, 2023, compared to $20.13 a year earlier and $20.36 three months earlier. Tangible book value per share, a non-GAAP financial measure calculated by dividing shareholders’ equity, less goodwill and core deposit intangible, by common shares outstanding, was $15.19 at June 30, 2023, compared to $14.82 a year earlier and $15.14 three months earlier.The ratio of tangible common shareholders’ equity to tangible assets decreased to 6.12% at June 30, 2023 from 6.45% a year ago and 6.25% three months earlier.”Eagle’s second quarter operating results were fueled by improved revenue generation compared to the prior quarter and loan growth,” said Laura Clark, President and CEO. “Total loans increased $170.5 million, or 13.6%, over the last 12 months, while growing $44.1 million, or 3.2%, during the second quarter. We were surprised by loan demand during the second quarter, and remain positive about the opportunities in our markets, as loan pipelines and overall business activity remain solid. Additionally, our acquisition of First Community Bancorp, Inc., and its subsidiary, First Community Bank, which was completed during the second quarter of 2022, is contributing positively to operating results. The transaction was valued at $38.6 million and added approximately $370 million in assets, $321 million in deposits and $191 million in loans. While our outlook for the second half of 2023 remains uncertain as the full effect of the higher interest rate environment continues to impact funding costs and our net interest margin, we are encouraged by customer loan demand and are well positioned for stable growth throughout the remainder of the year.”