HELENA, Mont., Jan. 19, 2006 (PRIMEZONE) -- Eagle Bancorp ("Eagle") (OTCBB:EBMT), the stock holding company of American Federal Savings Bank (the "Bank"), reported net income of $445,000, or $0.41 per share ($0.37 per share diluted), for the three months ended December 31, 2005, and declared a cash dividend of $0.20 per share. These earnings represent a decrease of 22.1% compared to $571,000 for the quarter ended December 31, 2004. Earnings for the six month period ended December 31, 2005 were $944,000, or $0.87 per share ($0.78 per share diluted), an increase of $16,000, or 1.7%, compared to $928,000 for the six month period ended December 31, 2004.
Also today, Eagle's Board of Directors declared a quarterly cash dividend of $0.20 per share for the second quarter of Eagle's fiscal year. The dividend is payable February 10, 2006 to shareholders of record at the close of business on January 27, 2006.
The decrease in net income of $126,000 for the second quarter was the result of a decrease in noninterest income of $106,000 and an increase in noninterest expense of $79,000, offset by an increase in net interest income of $38,000. Eagle's tax provision was $21,000 lower in the current quarter. Noninterest income decreased due to a decline in income from loan servicing. The quarter ended December 31, 2004 included an upward adjustment in the value of Eagle's mortgage loan servicing rights of $108,000, while the current quarter had no adjustment. Eagle's annualized return on assets was 0.83% and its annualized return on equity was 7.95% for the quarter, compared with 1.13% and 9.50%, respectively, for the same quarter in 2004.
Total interest and dividend income increased by $313,000 to $2.58 million for the quarter ended December 31, 2005 from $2.27 million for the quarter ended December 31, 2004. This was due to an increase in interest and fees on loans of $390,000, which was partially offset by a decrease in interest on securities available-for-sale of $93,000. Total interest expense increased $275,000 to $896,000 for the quarter ended December 31, 2005 from $621,000 for the quarter ended December 31, 2004. Interest on advances increased $146,000 and interest on deposits increased $129,000.
Earnings for the six month period ended December 31, 2005 were $944,000, or $0.87 per share ($0.78 per share diluted), an increase of $16,000, or 1.7%, compared to $928,000, or $0.80 per share ($0.77 per share diluted) for the six month period ended December 31, 2004. The increase in net income for the period was the result of increases in net interest income of $139,000 and noninterest income of $105,000, partially offset by an increase in noninterest expense of $171,000. Eagle's tax provision was $57,000 higher in the current period. Eagle's annualized return on assets was 0.90% and its annualized return on equity was 8.45%, compared with 0.92% and 7.80%, respectively, for the same six-month period in 2004.
Total assets increased $6.6 million, or 3.2%, to $213.0 million at December 31, 2005 from $206.4 million at June 30, 2005. Loans receivable increased $15.3 million, or 14.3%, to $122.1 million from $106.8 million, while investment securities available-for-sale decreased $7.2 million, or 9.6%, to $68.0 million from $75.2 million. Advances from the Federal Home Loan Bank increased $1.8 million, to $11.7 million from $9.9 million, while deposits were down slightly. Eagle issued trust preferred securities in the amount of $5.0 million during the first quarter of the fiscal year. Total stockholders' equity increased $147,000, or 0.7%, to $22.41 million at December 31, 2005 from $22.26 million at June 30, 2005, as a result of net income for the period of $944,000, offset by purchases of treasury stock ($284,000), dividends for the period, and an increase in accumulated other comprehensive loss of $409,000 mainly due to an increase in net unrealized loss on securities available-for-sale.
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 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)
Dec. 31, 2005 June 30, 2005
(Unaudited) (Audited)
ASSETS -------- --------
Cash and due from banks 4,697 3,122
Interest-bearing deposits with banks 214 1,844
-------- --------
Total cash and cash equivalents 4,911 4,966
Investment securities available-
for-sale, at market value 67,967 75,227
Investment securities held-to-maturity,
at cost 1,110 1,201
Investment in nonconsolidated subsidiary 155 --
Federal Home Loan Bank stock, at cost 1,315 1,315
Mortgage loans held-for-sale 813 2,148
Loans receivable, net of deferred
loan fee and allowance for loan losses 122,077 106,839
Accrued interest and dividends receivable 1,142 1,102
Mortgage servicing rights, net 1,814 1,857
Property and equipment, net 6,123 6,242
Cash surrender value of life insurance 5,141 5,049
Real estate acquired in settlement of
loans, net of allowance for losses 0 0
Other assets 452 468
-------- --------
Total assets 213,020 206,414
======== ========
LIABILITIES
Deposit accounts:
Noninterest bearing 12,278 11,660
Interest bearing 159,824 160,837
Advances from Federal Home Loan Bank 11,702 9,885
Long-Term Subordinated Debentures 5,155 --
Accrued expenses and other liabilities 1,649 1,767
-------- --------
Total liabilities 190,608 184,149
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; 1,095,372 and
1,103,972 shares outstanding at
December 31, 2005 and June 30,
2005, respectively) 12 12
Additional paid-in capital 4,246 4,188
Unallocated common stock held by
employee stock ownership plan ("ESOP") (147) (165)
Treasury stock, at cost (128,200 and
119,600 shares at December 31, 2005
and June 30, 2005, respectively) (4,332) (4,048)
Retained earnings 23,394 22,630
Accumulated other comprehensive
(loss) income (761) (352)
-------- --------
Total equity 22,412 22,265
Total liabilities and equity 213,020 206,414
======== ========
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,
-------------------- --------------------
2005 2004 2005 2004
--------- --------- --------- ---------
Interest and
Dividend Income:
Interest and fees on loans $ 1,897 $ 1,507 $ 3,687 $ 2,972
Interest on deposits
with banks 36 9 47 25
FHLB Stock dividends 0 7 0 21
Securities available-
for-sale 640 733 1,263 1,429
Securities held-to-maturity 13 17 27 34
--------- --------- --------- ---------
Total interest and
dividend income 2,586 2,273 5,024 4,481
--------- --------- --------- ---------
Interest Expense:
Deposits 717 588 1,383 1,167
Int on borrowings 179 33 281 93
--------- --------- --------- ---------
Total interest expense 896 621 1,664 1,260
--------- --------- --------- ---------
Net Interest Income 1,690 1,652 3,360 3,221
Loan loss provision 0 0 0 0
--------- --------- --------- ---------
Net interest income after
loan loss provision 1,690 1,652 3,360 3,221
--------- --------- --------- ---------
Noninterest income:
Net gain on sale of loans 128 111 301 225
Demand deposit service
charges 136 145 279 284
Mortgage loan servicing fees 130 251 321 336
Net gain on sale of
available-for-sale
securities 0 10 1 10
Other 123 106 258 200
--------- --------- --------- ---------
Total noninterest income 517 623 1,160 1,055
--------- --------- --------- ---------
Noninterest expense:
Salaries and employee
benefits 906 807 1,738 1,616
Occupancy expenses 133 122 258 248
Furniture and equipment
depreciation 78 80 157 158
In-house computer expense 68 66 135 128
Advertising expense 46 47 116 87
Amortization of mtg
servicing fees 92 93 198 189
Federal insurance premiums 6 6 12 12
Postage 19 23 42 48
Legal,accounting, and
examination fees 61 49 95 84
Consulting fees 12 12 30 23
ATM processing 12 12 24 24
Other 204 241 424 441
--------- --------- --------- ---------
Total noninterest
expense 1,637 1,558 3,229 3,058
--------- --------- --------- ---------
Income before provision
for income taxes 570 717 1,291 1,218
--------- --------- --------- ---------
Provision for income taxes 125 146 347 290
--------- --------- --------- ---------
Net income $ 445 $ 571 $ 944 $ 928
========= ========= ========= =========
Basic earnings per share $ 0.41 $ 0.50 $ 0.87 $ 0.80
========= ========= ========= =========
Diluted earnings per share $ 0.37 $ 0.48 $ 0.78 $ 0.77
========= ========= ========= =========
Weighted average
shares outstanding
(basic eps) 1,077,640 1,145,492 1,079,122 1,158,823
========= ========= ========= =========
Weighted average
shares outstanding
(diluted eps) 1,204,412 1,199,812 1,203,835 1,199,235
========= ========= ========= =========