HELENA, Mont., Oct. 20, 2005 (PRIMEZONE) -- Eagle Bancorp ("Eagle") (OTCBB:EBMT), the stock holding company of American Federal Savings Bank (the "Bank"), reported net income of $499,000, or $0.46 per share ($0.41 per share diluted), for the three months ended September 30, 2005, and declared a cash dividend of $0.20 per share. These earnings represent an increase of 39.4% compared to $358,000 for the quarter ended September 30, 2004.
Eagle's Board of Directors declared a quarterly cash dividend of $0.20 per share for the first quarter of Eagle's fiscal year. The dividend is payable November 18, 2005 to shareholders of record at the close of business on November 4, 2005.
The increase in net income for the first quarter was the result of increases in noninterest income of $211,000 and net interest income of $102,000, partially offset by an increase in noninterest expense of $93,000. Eagle's tax provision was $79,000 higher in the current quarter. Noninterest income increased due to the increase in net gain on sale of loans and to the higher valuation of Eagle's servicing rights. This quarter, the value of Eagle's servicing rights increased by $46,000, compared to the same quarter last year, in which the value decreased $59,000. Eagle's annualized return on assets was 0.95% and its annualized return on equity was 8.94% for the quarter, compared with 0.70% and 5.91%, respectively, for the same quarter in 2004.
Total interest and dividend income increased $231,000 to $2,438,000 for the quarter ended September 30, 2005 from $2,207,000 for the quarter ended September 30, 2004. This was due primarily to an increase in interest and fees on loans of $326,000 which was partially offset by a decrease in interest on securities available-for-sale of $73,000. Total interest expense increased $129,000 to $768,000 for the quarter ended September 30, 2005 from $639,000 for the quarter ended September 30, 2004. Interest expense on deposits increased $87,000 and interest expense on advances increased $42,000.
Total assets increased by $9.1 million, or 4.4%, to $215.5 million at September 30, 2005 from $206.4 million at June 30, 2005. Interest-bearing deposits with banks increased $5.2 million to $7.0 million at September 30, 2005. Loans receivable increased $9.0 million, or 8.4%, to $115.8 million from $106.8 million. Investment securities available-for-sale decreased $6.0 million, or 8.0%, to $69.2 million from $75.2 million. Deposits increased $3.7 million, or 2.1%, to $176.2 million at September 30, 2005 from $172.5 million at June 30, 2005. Total stockholders' equity increased $113,000, or 0.5%, to $22.4 million at September 30, 2005 from $22.3 million at June 30, 2005, as a result of the net income for the period of $499,000, offset by an increase in treasury stock acquired at a cost of $150,000, an increase in accumulated other comprehensive loss of $183,000 (mainly due to an increase in net unrealized loss on securities available-for-sale) and dividends paid.
During the quarter, Eagle formed a special purpose subsidiary, Eagle Bancorp Statutory Trust I (the "Trust"), for the purpose of issuing trust preferred securities in the amount of $5 million. Eagle has issued subordinated debentures to the Trust, and the coupon on the debentures matches the dividend payment on the trust preferred securities. For bank regulatory purposes, the securities qualify as Tier 1 Capital, while for accounting purposes they are recorded as long term debt. The proceeds of the securities will be used to fund stock repurchases and for other general corporate purposes.
American Federal Savings Bank was formed in 1922 and is headquartered in Helena, Montana. It has additional branches in Butte, Bozeman and Townsend. Eagle's common stock trades on the OTC Bulletin Board under the symbol "EBMT." Eagle is a subsidiary of Eagle Financial MHC, a federal mutual holding company formed in 2000, which owns approximately 59% of Eagle Bancorp's outstanding common stock.
This release may contain certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Eagle intends such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995, and is including this statement for purposes of these safe harbor provisions.
Financial highlights for Eagle Bancorp follow:
EAGLE BANCORP AND SUBSIDIARY
(consolidated)
(Dollars in Thousands)
Sept. 30, June 30,
2005 2005
(Unaudited) (Audited)
ASSETS
Cash and due from banks 4,475 3,122
Interest-bearing deposits with banks 7,012 1,844
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Total cash and cash equivalents 11,487 4,966
Investment securities available-for-sale,
at market value 69,170 75,227
Investment securities held-to-maturity,
at cost 1,155 1,201
Investment in nonconsolidated subsidiary 155 --
Federal Home Loan Bank stock, at cost 1,315 1,315
Mortgage loans held-for-sale 1,671 2,148
Loans receivable, net of deferred loan fee
and allowance for loan losses 115,863 106,839
Accrued interest and dividends receivable 1,140 1,102
Mortgage servicing rights, net 1,859 1,857
Property and equipment, net 6,179 6,242
Cash surrender value of life insurance 5,094 5,049
Real estate acquired in settlement of loans,
net of allowance for losses 75 0
Other assets 350 468
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Total assets 215,513 206,414
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LIABILITIES
Deposit accounts:
Noninterest bearing 13,584 11,660
Interest bearing 162,631 160,837
Advances from Federal Home Loan Bank 9,593 9,885
Long-Term Subordinated Debentures 5,155 --
Accrued expenses and other liabilities 2,172 1,767
-------- --------
Total liabilities 193,135 184,149
EQUITY
Preferred stock (no par value, 1,000,000 shares
authorized, none issued or outstanding)
Common stock (par value $0.01 per share;
9,000,000 shares authorized;
1,223,572 shares issued; 1,099,272 and
1,103,972 shares outstanding at September 30,
2005 and June 30, 2005, respectively) 12 12
Additional paid-in capital 4,216 4,188
Unallocated common stock held by employee
stock ownership plan ("ESOP") (156) (165)
Treasury stock, at cost (124,300 and 119,600
shares at September 30, 2005 and
June 30, 2005, respectively) (4,198) (4,048)
Retained earnings 23,039 22,630
Accumulated other comprehensive (loss) income (535) (352)
-------- --------
Total equity 22,378 22,265
Total liabilities and equity 215,513 206,414
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EAGLE BANCORP AND SUBSIDIARY
Consolidated Statements of Income
For the Three Months Ended September 30, 2005 and 2004
(Dollars in Thousands, Except for Per Share Data)
Three Months Ended
Sept. 30 (unaudited) Sept. 30
-----------------------------
2005 2004
--------- ---------
Interest and Dividend Income:
Interest and fees on loans 1,790 1,464
Interest on deposits with banks 11 15
Securites held to maturity 14 18
Securities available for sale 623 696
FHLB Stock dividends 0 14
--------- ---------
Total interest and dividend income 2,438 2,207
--------- ---------
Interest Expense:
Deposits 666 579
Int on borrowings 102 60
--------- ---------
Total interest expense 768 639
--------- ---------
Net Interest Income 1,670 1,568
Loan loss provision 0 0
--------- ---------
Net interest income after loan
loss provision 1,670 1,568
--------- ---------
Noninterest income:
Net gain on sale of loans 173 115
Demand deposit service charges 143 139
Mortgage loan servicing fees 191 84
Net gain (loss) on sale of available
for sale securities 1 0
Other 135 94
--------- ---------
Total noninterest income 643 432
--------- ---------
Noninterest expense:
Salaries and employee benefits 832 809
Occupancy expenses 125 125
Furniture and equipment depreciation 79 78
In-house computer expense 67 62
Advertising expense 70 40
Amortization of mtg servicing fees 106 96
Federal insurance premiums 6 6
Postage 23 25
Legal,accounting, and examination fees 34 35
Consulting fees 18 11
ATM processing 12 12
Other 220 200
--------- ---------
Total noninterest expense 1,592 1,499
--------- ---------
Income before provision for income taxes 721 501
--------- ---------
Provision for income taxes 222 143
--------- ---------
Net income 499 358
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Basic earnings per common share 0.46 0.31
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Diluted earnings per common share 0.41 0.30
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Weighted average shares outstanding
(basic eps) 1,080,604 1,172,153
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Weighted average shares outstanding
(diluted eps) 1,203,258 1,198,658
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