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Eagle Bancorp, Inc. (Maryland) Earnings Q2, 2015

Eagle Bancorp, Inc. (Maryland) reports preliminary financial results for the quarter ended June 30, 2015.

We analyze the earnings along side the following peers of Eagle Bancorp, Inc. – Old Line Bancshares, Inc., Sandy Spring Bancorp, Inc., M&T Bank Corporation, Shore Bancshares, Inc., First Niagara Financial Group, Inc., Orrstown Financial Services, Inc., Glen Burnie Bancorp, Bay Bancorp, Inc. and Howard Bancorp, Inc. (OLBK-US, SASR-US, MTB-US, SHBI-US, FNFG-US, ORRF-US, GLBZ-US, BYBK-US and HBMD-US) that have also reported for this period.

Highlights

  • Summary numbers: Revenues of USD 63.59 million, Net Earnings of USD 20.94 million, and Earnings per Share (EPS) of USD 0.61.
  • Net interest income margins narrowed from 91.68% to 91.14% compared to the same quarter last year.
  • Net loan assets changed 39.13% compared to same period last year and 2.38% from previous period, total deposits changed 43.28% compared to same period last year and 5.26% from previous period.
  • Year-on-year change in operating cash flow of -1,228.54% is about the same as the change in earnings, likely no significant movement in accruals or reserves.
  • Earnings growth from operating margin improvements as well as from one-time items.

The table below shows the preliminary results and recent trends for key metrics such as revenues and net income (See complete table at the end of this report):

Access our Ratings and Scores for Eagle Bancorp, Inc. (Maryland)

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Market Share Versus Profits

EGBN-US‘s change in revenue this quarter compared to the same quarter last year of 38.75% is almost the same as its change in earnings, and is about average among the announced results thus far in its peer group, suggesting that EGBN-US is holding onto its market share. Also, for comparison purposes, revenues changed by 0.22% and earnings by 7.83% compared to the immediate last quarter.

Earnings Growth Analysis

The company’s net interest income margins showed no year-on-year improvement. In spite of this, the earnings rose, influenced primarily by the increase in net interest income after provisions margins from 84.85% to 85.68%. Loan loss provisions as a percentage of net interest income were 5.99% this period, and 7.46% a year ago.

Net Loans and Total Deposits

A financial institution’s core operations represented by Net Interest Income and Net Interest Income after Provisions are dependent on both the growth and quality of its deposits as well as the growth and quality of its loans. A firm could boost its interest income in the short-term by just increasing its loan assets with less concern about their quality – but this would eventually lead to greater loan loss provisions. Similarly a drive to increase deposits could result in higher interest expenses and eventually effect the firm’s equity. It is thus important to understand net interest income performance in context to loan loss provisions, loan assets and deposits.

The firm’s decline in net interest income margins was influenced by both the relative drops in the levels of net loan assets and the level of total deposits as a percentage of equity. On an absolute basis, net loan assets changed 39.13% compared to the same period last year and 2.38% from the previous period. Total deposits changed 43.28% compared to the same period last year and 5.26% from the previous period.

Cash Versus Earnings – Sustainable Performance?

EGBN-US‘s change in operating cash flow of -1,228.54% compared to the same period last year is about the same as its change in earnings this period. Additionally, this change in operating cash flow is about average among its peer group. This suggests that the company did not use accruals or reserves to manage earnings this period, and that, all else being equal, the earnings number is sustainable.

Margins

The company’s earnings growth has also been influenced by the following factors: (1) Improvements in operating margins from 44.98% to 53.06% and (2) one-time items. The company’s pretax margins are now 53.02%, compared to 44.86% for the same period last year.

Access our Ratings and Scores for Eagle Bancorp, Inc. (Maryland)

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Company Profile

Eagle Bancorp, Inc. operates as a bank holding company with interest in providing commercial, residential and consumer loans. The company through its subsidiary offers full commercial banking services to its business and professional clients as well as complete consumer banking services to individuals living and working in the service area. The company provides commercial banking services to sole proprietorships, small and medium-sized businesses, partnerships, corporations, non-profit organizations and associations, and investors living and working in and near the Bank’s primary service area. Eagle Bancorp was founded on October 28, 1997 and is headquartered in Bethesda, MD.

CapitalCube does not own any shares in the stocks mentioned and focuses solely on providing unique fundamental research and analysis on approximately 50,000 stocks and ETFs globally. Try any of our analysis, screener or portfolio premium services free for 7 days. To get a quick preview of our services, check out our free quick summary analysis of EGBN-US.

The post Eagle Bancorp, Inc. (Maryland) Earnings Q2, 2015 appeared first on CapitalCube.

Howard Bancorp, Inc. (Maryland) Earnings Q2, 2015

Howard Bancorp, Inc. (Maryland) reports preliminary financial results for the quarter ended June 30, 2015.

We analyze the earnings along side the following peers of Howard Bancorp, Inc. – Sandy Spring Bancorp, Inc., Glen Burnie Bancorp, Bay Bancorp, Inc., Shore Bancshares, Inc., Old Line Bancshares, Inc., First United Corporation, M&T Bank Corporation and Univest Corporation of Pennsylvania (SASR-US, GLBZ-US, BYBK-US, SHBI-US, OLBK-US, FUNC-US, MTB-US and UVSP-US) that have also reported for this period.

Highlights

  • Summary numbers: Revenues of USD 10.24 million, Net Earnings of USD 0.79 million, and Earnings per Share (EPS) of USD 0.15.
  • Net interest income margins narrowed from 70.11% to 67.29% compared to the same quarter last year.
  • Net loan assets changed 34.45% compared to same period last year and 2.10% from previous period, total deposits changed 36.32% compared to same period last year and -0.85% from previous period.
  • Year-on-year change in operating cash flow of -50.78% is about the same as the change in earnings, likely no significant movement in accruals or reserves.
  • One-time items pull down operating performance.

The table below shows the preliminary results and recent trends for key metrics such as revenues and net income (See complete table at the end of this report):

Access our Ratings and Scores for Howard Bancorp, Inc. (Maryland)

Click here to view

Market Share Versus Profits

HBMD-US‘s change in revenue this quarter compared to the same quarter last year of 48.62% is almost the same as its change in earnings, and is about average among the announced results thus far in its peer group, suggesting that HBMD-US is holding onto its market share. Also, for comparison purposes, revenues changed by 12.30% and earnings by 21.88% compared to the immediate last quarter.

Earnings Growth Analysis

HBMD-US‘s earnings rose year-on-year. But this growth has not come as a result of improvement in net interest income margins or any loan loss improvement activities in its operations. Net interest income margins were 67.29% compared to 75.18% in the immediate last quarter. Net interest income after provisions margins were 62.06% this period compared to 72.43% in the previous quarter. In addition, loan loss provisions as a percentage of net interest income were 7.77% this period and 6.73% a year ago.

Net Loans and Total Deposits

A financial institution’s core operations represented by Net Interest Income and Net Interest Income after Provisions are dependent on both the growth and quality of its deposits as well as the growth and quality of its loans. A firm could boost its interest income in the short-term by just increasing its loan assets with less concern about their quality – but this would eventually lead to greater loan loss provisions. Similarly a drive to increase deposits could result in higher interest expenses and eventually effect the firm’s equity. It is thus important to understand net interest income performance in context to loan loss provisions, loan assets and deposits.

The firm’s decline in net interest income margins was influenced by both the relative drops in the levels of net loan assets and the level of total deposits as a percentage of equity. On an absolute basis, net loan assets changed 34.45% compared to the same period last year and 2.10% from the previous period. Total deposits changed 36.32% compared to the same period last year and -0.85% from the previous period.

Cash Versus Earnings – Sustainable Performance?

HBMD-US‘s change in operating cash flow of -50.78% compared to the same period last year is about the same as its change in earnings this period. Additionally, this change in operating cash flow is about average among its peer group. This suggests that the company did not use accruals or reserves to manage earnings this period, and that, all else being equal, the earnings number is sustainable.

Margins

The improvement in operating margins from 17.62% to 18.68% has impacted the company’s earnings growth. However, one-time items have challenged the operating performance. As a result, the company’s pretax margin fell from 17.62% to 12.33%.

Access our Ratings and Scores for Howard Bancorp, Inc. (Maryland)

Click here to view

Company Profile

Howard Bancorp, Inc. is a bank holding company for Howard Bank. It provides commercial banking, insurance, investments, mortgage banking and consumer finance through banking branches, the internet and other distribution channels to businesses, business owners, professionals and other consumers located primarily in Howard County and Maryland. It offers a range of consumer and business deposit products that include demand, money market, checking, savings, and individual retirement accounts, as well as certificates of deposit. The company also provides various loan products, such as short to medium term commercial loans, commercial mortgage loans for owner occupied and investor properties, residential mortgage loans, and secured and unsecured consumer loans. It offers wire transfer services, courier service for non-negotiable deposits, automated teller machines and check cards, and safe deposit boxes, as well as credit cards through a third party processor. The company provides Internet banking, merchant card, overnight sweep, and remote deposit capture services; and Mobiliti mobile banking, PopMoney, and eStatement products. Howard Bancorp was founded in April 2005 and is headquartered in Ellicott City, MD.

CapitalCube does not own any shares in the stocks mentioned and focuses solely on providing unique fundamental research and analysis on approximately 50,000 stocks and ETFs globally. Try any of our analysis, screener or portfolio premium services free for 7 days. To get a quick preview of our services, check out our free quick summary analysis of HBMD-US.

The post Howard Bancorp, Inc. (Maryland) Earnings Q2, 2015 appeared first on CapitalCube.