Shares of Eagle Bancorp (EGBN 0.99%) -- also known as EagleBank -- were up 13.2% as of 3:30 p.m. EDT Thursday after the bank announced better-than-expected third-quarter 2023 results.
EagleBank delivers a solid quarter
EagleBank's third-quarter 2023 revenue declined 15.7% year over year to $70.7 million, translating to net income of $27.4 million, or $0.91 per share (down from $1.16 per share in the same year-ago period). But analysts, on average, were only modeling earnings of $0.72 per share on revenue of $69.2 million.
EagleBank's declining earnings were largley the result of lower net interest income, in part as the cost of interest-bearing liabilities outpaced income on interest-earnings assets. Even so, EagleBank CEO Susan Riel praised their "steady performance" and (lower interest income notwithstanding) stabilization of both margins and earnings.
On positioning EagleBank's balance sheet for a return to growth
EagleBank didn't provide specific forward financial guidance, but management added that the bank is working "to position the company's balance sheet to enable appropriate diversification of assets and loans, and is building capabilities to drive core deposit growth."
Amid this uncertain macro environment and with the echoes of this year's prominent bank failures still ringing in investors' ears, those are certainly steps in the right direction. Coupled with its strong third-quarter performance, and it's no surprise to see EagleBank stock popping in response today.
