Shares of Eagle Bancorp, Inc. (EGBN) scaled a new 52-week high of $37.55 in the second half of the trading session on Feb 11. The stock closed the session at $36.25, reflecting a return of 12.3% over the last one year. The trading volume for the session was 62,428 shares.
Despite the strong price appreciation, this Zacks Rank #2 (Buy) stock has plenty of upside left, given the upward estimate revisions it witnessed over the last 30 days.
Growth Drivers
Robust fourth-quarter and full-year 2014 results were the primary growth driver. Along with strong organic growth, the merger with Virginia Heritage Bank completed on Oct 31, 2014 lifted Eagle Bancorp’s results.
Reported on Jan 21, 2015, Eagle Bancorp’s fourth-quarter earnings per share of 49 cents came in 9% higher from the prior-year quarter figure. The results displayed strength on account of a 46% increase in total loans and 34% rise in total deposits. Also, total assets exhibited a year-over-year improvement of 39% as of Dec 31, 2014.
Eagle Bancorp’s balance sheet was further fortified by the Virginia Heritage Bank merger, which added around $800 million in loans, $3 million in loans held for sale, $645 million in deposits, and $95 million in borrowings.
Eagle Bancorp is well poised for organic as well as inorganic growth given its strong asset position and sturdy capital base. Though elevated costs and higher provisions continue to weigh on profitability, the company looks forward to enhanced growth triggered by impressive improvement in loans and deposits as well as consistent revenue generation.
Estimate Revisions Show Strength
Over the last 30 days, the Zacks Consensus Estimate for 2015 witnessed a 2.6% upward revision to reach $2.38 per share. For 2016, the Zacks Consensus Estimate rose slightly to $2.62 per share over the same time frame.
Other north-eastern banks worth considering include Suffolk Bancorp (SUBK), Bridge Bancorp, Inc. (BDGE) and Great Western Bancorp. Inc. (GWB). While Suffolk Bancorp sports a Zacks Rank #1 (Strong Buy), Bridge Bancorp and Great Western Bancorp hold the same Zacks Rank as Eagle Bancorp.
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