HELENA, Mont., Jan. 18, 2007 (PRIME NEWSWIRE) -- Eagle Bancorp ("Eagle") (OTCBB:EBMT), the stock holding company of American Federal Savings Bank (the "Bank"), reported net income of $461,000, or $0.43 per share ($0.38 per share diluted), for the three months ended December 31, 2006, and declared a cash dividend of $0.22 per share. This represents an increase of 3.6% over the $445,000 in earnings for the quarter ended December 31, 2005. Earnings for the six-month period ended December 31, 2006 were $883,000, or $0.82 per share ($0.73 per share diluted), a decrease of $61,000, or 6.5%, from the $944,000 earned for the six-month period ended December 31, 2005.
Also today, Eagle's Board of Directors declared a quarterly cash dividend of $0.22 per share for the second quarter of Eagle's fiscal year. The dividend is payable February 9, 2007 to shareholders of record at the close of business on January 26, 2007.
The increase in net income of $16,000 for the second quarter was the result of an increase in noninterest income of $75,000, offset by a decrease in net interest income of $60,000 and an increase in noninterest expense of $24,000. Eagle's tax provision was $25,000 lower in the current quarter. Noninterest income increased due to an increase in gain on sale of loan income, as the Bank chose to sell a higher percentage of its mortgage originations this quarter. Eagle's annualized return on assets was 0.78% and its annualized return on equity was 7.79% for the quarter, compared with 0.83% and 7.95%, respectively, for the same quarter in 2005.
Total interest and dividend income increased by $516,000 to $3.10 million for the quarter ended December 31, 2006 from $2.58 million for the quarter ended December 31, 2005. This was due to increases in interest and fees on loans of $481,000 and interest on securities available-for-sale of $56,000, which were partially offset by a decrease in interest on deposits with banks of $20,000. Total interest expense increased $576,000 to $1.47 million for the quarter ended December 31, 2006 from $896,000 for the quarter ended December 31, 2005. Of that amount, interest on deposits increased $325,000 and interest on borrowings increased $251,000.
Earnings for the six-month period ended December 31, 2006 were $883,000, or $0.82 per share ($0.73 per share diluted), a decrease of $61,000, or 6.5%, compared to $944,000, or $0.87 per share ($0.78 per share diluted) for the six-month period ended December 31, 2005. The decrease in net income for the period was the result of decreases in net interest income of $76,000 and noninterest income of $31,000, along with an increase in noninterest expense of $48,000. Eagle's tax provision was $94,000 lower in the current period. Net interest income declined due to higher interest expense, as funding costs continue to rise. Noninterest income was lower due to the adjustment in 2005 to the valuation of Eagle's mortgage servicing rights in the amount of $46,000. Eagle's annualized return on assets was 0.76% and its annualized return on equity was 7.61%, compared with 0.90% and 8.45%, respectively, for the same six-month period in 2005.
Total assets increased $11.9 million, or 5.3%, to $238.1 million at December 31, 2006 from $226.2 million at June 30, 2006. Loans receivable increased $6.4 million, or 4.5%, to $147.3 million from $140.9 million, while investment securities available-for-sale increased $2.2 million, or 3.4%, to $66.4 million from $64.2 million. Advances and other borrowings increased $9.5 million, to $31.9 million from $22.4 million, while deposits were up slightly. Total stockholders' equity increased $1.3 million, or 5.8%, to $23.9 million at December 31, 2006 from $22.6 million at June 30, 2006, as a result of net income for the period of $883,000 and a decrease in accumulated other comprehensive loss of $725,000 (mainly due to a decrease in net unrealized loss on securities available-for-sale). These were partially offset by dividends paid and purchases of treasury stock.
American Federal Savings Bank is a wholly owned subsidiary of Eagle and 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 59.7% of Eagle Bancorp's 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)
December 31, June 30,
2006 2006
(Unaudited) (Audited)
ASSETS
Cash and due from banks 4,421 2,844
Interest-bearing deposits with
banks 509 27
------- -------
Total cash and cash equivalents 4,930 2,871
Investment securities
available-for-sale, at market
value 66,446 64,198
Investment securities
held-to-maturity, at cost 977 1,018
Investment in Eagle Bancorp
Statutory Trust I 155 155
Federal Home Loan Bank stock,
at cost 1,315 1,315
Mortgage loans held-for-sale 2,063 918
Loans receivable, net of
deferred loan fees and
allowance for loan losses of
$520 at December 31, 2006 and
$535 at June 30, 2006 147,331 140,858
Accrued interest and dividends
receivable 1,280 1,211
Mortgage servicing rights, net 1,682 1,722
Property and equipment, net 5,938 5,962
Cash surrender value of life
insurance 5,664 5,230
Real estate acquired in
settlement of loans, net of
allowance for losses 0 0
Other assets 304 720
------- -------
Total assets 238,085 226,178
======= =======
LIABILITIES
Deposit accounts:
Noninterest bearing 12,575 12,575
Interest bearing 162,760 161,767
------- -------
Total Deposits 175,335 174,342
Advances from Federal Home Loan
Bank and Other Borrowings 31,863 22,371
Long-Term Subordinated Debentures 5,155 5,155
Accrued expenses and other
liabilities 1,863 1,765
------- -------
Total liabilities 214,216 203,633
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; 1,086,557 and
1,091,722 shares outstanding
at December 31, 2006 and
June 30, 2006, respectively) 12 12
Additional paid-in capital 4,330 4,274
Unallocated common stock held
by ESOP (110) (129)
Treasury stock, at cost (4,687) (4,521)
Retained earnings 24,746 24,056
Accumulated other comprehensive
(loss) income (422) (1,147)
------- -------
Total equity 23,869 22,545
Total liabilities and
equity 238,085 226,178
======= =======
EAGLE BANCORP AND SUBSIDIARY
Consolidated Statements of Income
(In Thousands, except for Per Share Data)
Three Months Ended Six Months Ended
December 31, December 31,
--------------------- ---------------------
2006 2005 2006 2005
--------- --------- --------- ---------
Interest and
Dividend Income:
Interest and fees
on loans $2,378 $1,897 $4,689 $3,687
Interest on deposits
with banks 16 36 28 47
FHLB Stock dividends 1 0 1 0
Securities
available-for-sale 696 640 1,356 1,263
Securities
held-to-maturity 11 13 22 27
--------- --------- --------- ---------
Total interest
and dividend
income 3,102 2,586 6,096 5,024
--------- --------- --------- ---------
Interest Expense:
Deposits 1,042 717 1,976 1,383
Advances and other
borrowings 355 104 686 204
Subordinated
debentures 75 75 150 77
--------- --------- --------- ---------
Total interest
expense 1,472 896 2,812 1,664
--------- --------- --------- ---------
Net Interest Income 1,630 1,690 3,284 3,360
Loan loss provision 0 0 0 0
--------- --------- --------- ---------
Net interest income
after loan loss
provision 1,630 1,690 3,284 3,360
--------- --------- --------- ---------
Noninterest income:
Net gain on sale of
loans 190 128 309 301
Demand deposit
service charges 128 136 263 279
Mortgage loan
servicing fees 133 130 271 321
Net gain on sale of
available-for-sale
securities 1 0 1 1
Other 140 123 285 258
--------- --------- --------- ---------
Total
noninterest
income 592 517 1,129 1,160
--------- --------- --------- ---------
Noninterest expense:
Salaries and
employee benefits 914 906 1,752 1,738
Occupancy expenses 133 133 275 258
Furniture and
equipment
depreciation 68 78 147 157
In-house computer
expense 70 68 141 135
Advertising expense 60 46 153 116
Amortization of mtg
servicing fees 73 92 149 198
Federal insurance
premiums 5 6 11 12
Postage 21 19 39 42
Legal,accounting,
and examination
fees 66 61 124 95
Consulting fees 20 12 36 30
ATM processing 10 12 22 24
Other 221 204 428 424
--------- --------- --------- ---------
Total
noninterest
expense 1,661 1,637 3,277 3,229
--------- --------- --------- ---------
Income before
provision for
income taxes 561 570 1,136 1,291
--------- --------- --------- ---------
Provision for
income taxes 100 125 253 347
--------- --------- --------- ---------
Net income $461 $445 $883 $944
========= ========= ========= =========
Basic earnings per
share $0.43 $0.41 $0.82 $0.87
========= ========= ========= =========
Diluted earnings
per share $0.38 $0.37 $0.73 $0.78
========= ========= ========= =========
Weighted average
shares outstanding
(basic eps) 1,072,540 1,077,640 1,073,100 1,079,122
========= ========= ========= =========
Weighted average
shares outstanding
(diluted eps) 1,209,012 1,204,412 1,208,435 1,203,835
========= ========= ========= =========