Second-quarter profit at Eagle Bancorp (EGBN) rose 57% from a year ago, as the Bethesda, Md.-based company grew its loan portfolio and gathered more fee income.
Net income after a provision for loan losses was a record $7.6 million, or 37 cents per share, two cents better than what analysts had projected, according to Thomson Reuters. The provision rose 38%, to $4.4 million, from a year earlier, due in part to higher chargeoffs
Net interest income, after the provision, rose 29% to $26.6 million. Fee income increased 39% to $4.4 million, as Eagle originated and sold more residential mortgage loans.
Eagle, with $2.9 billion of assets, said its expense ratio improved, dropping 285 basis points to 52.28% from 55.13%. However, Eagle gave employee raises and hired additional workers in the quarter, which boosted its noninterest expense by 24%, to $18.5 million.