Overview

* Eagle Bancorp Q2 net income stable at $3.2 mln, EPS $0.41, yr/yr increase

* Net interest income rises 7.4% sequentially, driven by improved net interest margin

* Total loans and deposits increase, loans up 3.4%, deposits up 7.4% yr/yr

Outlook

* Eagle expects funding costs to improve due to current Fed rate environment

* Company anticipates moderation in deposit pricing as CDs reprice lower

* Eagle remains cautious about inflationary pressures affecting interest rate policy

Result Drivers

* NET INTEREST MARGIN - Increase driven by higher yields on interest-earning assets and reduced funding costs, per CFO Miranda Spaulding

* LOAN GROWTH - Total loans increased by 3.4% yr/yr, supported by diversified loan portfolio

* DEPOSIT MIX - Shift towards higher-yielding deposit products in response to high interest rate environment

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q2 EPS $0.41

Q2 Net $3.24

Income mln

Q2 Net $18.14

Interest mln

Income

Q2 Basic $0.42

EPS

Q2 $0.145

Dividend

Q2 $3.99

Pretax mln

Profit

Analyst Coverage

* The current average analyst rating on the shares is "hold" and the breakdown of recommendations is no "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"

* The average consensus recommendation for the banks peer group is "buy."

* Wall Street's median 12-month price target for Eagle Bancorp Montana Inc ( EBMT ) is $18.50, about 11.2% above its July 28 closing price of $16.42

* The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 10 three months ago

Press Release:

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)