Eagle Bancorp Had A Curiously Challenging Quarter, But There's Still Value Here

The share of Eagle Bancorp (EGBN) have had a relatively mediocre run since my last update in October, with the stock more or less tracking the broader performance of regional bank stocks. Although Eagle’s fourth quarter had some pretty curious moving parts, I believe the bank is still in fundamentally good shape and well-positioned to take advantage of the growing, less cyclical Washington, D.C. economy.

With ample surplus capital and the bank already spending on preparations to exceed the $10B asset threshold, I think an acquisition is at least plausible. Either way, while I don’t think the shares are hugely undervalued, there’s still worthwhile upside here on a risk-adjusted basis and the potential of double-digit annualized returns for shareholders.

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Eagle Bancorp Had A Curiously Challenging Quarter, But There's Still Value Here