EGBN: Reducing EPS Estimates on Elevated Expense and Lower NIM Outlook, Despite Strong Loan Growth; Lowering Target Price; Reiterating Outperform Rating.
Eagle Bancorp reported 2Q19 net income available to common shareholders of $37.2 million, up 10.4% from the $33.7 million posted in 1Q19. On a per share basis, the company recorded 2Q19 results of $1.08 compared to $0.98 in the linked-quarter. The 2Q19 results fell shy of our $1.10 estimate, and the $1.12 median Street estimate. The main drivers of the EPS shortfall versus our estimate were a $1.0 million increase in professional service fees, and a loan loss provision that was $0.9 million above our projection, offset partially by higher-than-expected loan sale and securities gains.