EGBN: Shows Continued Loan and Deposit Growth; Expect NIM Stabilization Next Year; Maintaining Target Price; Reiterating Outperform Rating.
Eagle Bancorp reported 3Q19 net income available to common shareholders of $36.5 million, down 2.0% from the $37.2 million posted in 2Q19. On a per share basis, the company recorded 3Q19 results of $1.07 compared to $1.08 in the linked-quarter. Excluding two partially offsetting, nonrecurring expense items (discussed in more detail below), adjusted 3Q18 results were $1.08 per share. The 3Q19 results exceeded our $1.03 estimate, and the $1.05 median Street estimate. The main drivers of the better than-expected EPS versus our estimate were higher-than-anticipated securities and loan sale gains, lower expenses due to an FDIC credit, higher net interest income and a lower than projected loan loss provision.