Bottom Line Inc

March 8, 2017 | Eagle Bancorp Inc. | EGBN


Today’s Stock of the Week is a solid regional bank in Washington, DC, and the surrounding affluent areas.

Community Focus

Eagle Bancorp Inc. (EGBN) is a small, but rapidly growing, community-focused bank whose modest branch-office network is located entirely in the highly desirable Washington, DC, area. It has five branches in Washington itself, nine in nearby Northern Virginia and seven in well-to-do Montgomery County, Maryland, where the bank is headquartered.

Eagle, founded in 1997, knows its customer base well, which is an advantage of its smaller size—the result is that its net loans are growing 15% annually…its balance sheet is very clean…and there are few nonperforming loans. The bank has assets of $7 billion and higher profitability than many other banks.

In addition to all the expected consumer and commercial banking services, Eagle offers online and mobile banking, payroll services, lock boxes, risk management, merchant card services and more—all valuable to individuals and firms looking for a more tailored financial approach from a bank deeply rooted in the community. Revenue was $258.2 million last year and should grow to $285.4 million this year and $324.2 million in 2018.

Fiscal year.: Dec. Earnings per share: 2018 est./$3.64…2017 est./$3.10…2016/$2.84.

This Week’s Expert

Ryan C. Kelley, CFA, is vice president and portfolio manager of the $236 million Hennessy Small Cap Financial Fund (HSFNX), Novato, California.

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