HELENA, Mont., April 20, 2006 (PRIMEZONE) -- Eagle Bancorp ("Eagle") (OTCBB:EBMT), the stock holding company of American Federal Savings Bank (the "Bank"), reported net income of $403,000, or $0.37 per share ($0.33 per share diluted), for the three months ended March 31, 2006, and declared a cash dividend of $0.20 per share. This represents a decrease of 9.4% over the $445,000 earned for the quarter ended March 31, 2005. Earnings for the nine month period ended March 31, 2006 were $1.347 million, or $1.25 per share ($1.12 per share diluted), a decrease of $26,000, or 1.9%, compared to $1.373 million for the nine month period ended March 31, 2005.
Also today, Eagle's Board of Directors declared a quarterly cash dividend of $0.20 per share for the third quarter of Eagle's fiscal year. The dividend is payable May 19, 2006 to shareholders of record at the close of business on May 5, 2006.
The decrease in net income of $42,000 for the third quarter was the result of an increase in noninterest expense of $75,000 and a decrease in noninterest income of $74,000, offset by an increase in net interest income of $48,000. Eagle's tax provision was $59,000 lower in the current quarter. Noninterest expense increased due to increases in salaries and other benefits and other noninterest expense. A decline in net gain on sale of loans contributed to the decrease in noninterest income. Eagle's annualized return on assets was 0.75% and its annualized return on equity was 7.17% for the quarter, compared with 0.89% and 7.89%, respectively, for the same quarter in 2005.
Total interest and dividend income increased by $400,000 to $2.66 million for the quarter ended March 31, 2006 from $2.26 million for the quarter ended March 31, 2005. This was due to an increase in interest on loans of $452,000, which was partially offset by a decrease in interest on securities available-for-sale of $44,000. Total interest expense increased $352,000 to $981,000 for the quarter ended March 31, 2006 from $629,000 for the quarter ended March 31, 2005. Interest on advances increased by $179,000 and interest on deposits increased $173,000.
Earnings for the nine month period ended March 31, 2006 were $1.347 million, a decrease of $26,000, or 1.9%, compared to $1.373 million for the nine month period ended March 31, 2005. The decrease in net income for the period was the result of an increase in noninterest expense of $247,000, offset by an increase in net interest income of $187,000 and an increase in noninterest income of $31,000. Eagle's tax provision was $3,000 lower in the current period. Eagle's annualized return on assets was 0.85% and its annualized return on equity was 8.01%, compared with 0.91% and 8.04%, respectively, for the same nine-month period in 2005.
Total assets increased $10.7 million, or 5.2%, to $217.1 million at March 31, 2006 from $206.4 million at June 30, 2005. Loans receivable increased $22.3 million, or 20.9%, to $129.1 million from $106.8 million. Investment securities available-for-sale decreased $9.1 million, or 12.1%, to $66.1 million from $75.2 million. Deposits increased $4.1 million, or 2.4%, to $176.6 million from $172.5 million. Advances from the Federal Home Loan Bank increased $1.1 million. Total stockholders' equity increased $300,000, or 1.3%, to $22.6 million at March 31, 2006 from $22.3 million at June 30, 2005. This was a result of net income for the period of $1.347 million, offset by purchases of treasury stock of $504,000, dividends for the period, and an increase in accumulated other comprehensive loss of $442,000 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.
EAGLE BANCORP AND SUBSIDIARY
(consolidated)
(Dollars in Thousands)
March 31, June 30,
2006 2005
(Unaudited) (Audited)
-------- ---------
ASSETS
Cash and due from banks $ 3,327 $ 3,122
Interest-bearing deposits with banks 883 1,844
-------- --------
Total cash and cash equivalents $ 4,210 $ 4,966
Investment securities available-for-sale,
at market value 66,072 75,227
Investment securities held-to-maturity,
at cost 1,070 1,201
Investment in nonconsolidated subsidiary 155 --
Federal Home Loan Bank stock, at cost 1,315 1,315
Mortgage loans held-for-sale 401 2,148
Loans receivable, net of deferred loan fee
and allowance for loan losses 129,137 106,839
Accrued interest and dividends receivable 1,180 1,102
Mortgage servicing rights, net 1,775 1,857
Property and equipment, net 6,009 6,242
Cash surrender value of life insurance 5,185 5,049
Real estate acquired in settlement of loans,
net of allowance for losses 0 0
Other assets 612 468
-------- --------
Total assets $217,121 $206,414
======== ========
LIABILITIES
Deposit accounts:
Noninterest bearing $ 12,104 $ 11,660
Interest bearing 164,539 160,837
Advances from Federal Home Loan Bank 11,010 9,885
Long-Term Subordinated Debentures 5,155 --
Accrued expenses and other liabilities 1,751 1,767
-------- --------
Total liabilities $194,559 $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; 1,093,322 and 1,103,972
shares outstanding at March 31, 2006
and June 30, 2005, respectively) 12 12
Additional paid-in capital 4,247 4,188
Unallocated common stock held by employee
stock ownership plan ("ESOP") (138) (165)
Treasury stock, at cost (130,250 and
119,600 shares at March 31, 2006 and
June 30, 2005, respectively) (4,472) (4,048)
Retained earnings 23,707 22,630
Accumulated other comprehensive
(loss) income (794) (352)
-------- --------
Total equity 22,562 22,265
Total liabilities and equity $217,121 $206,414
======== ========
EAGLE BANCORP AND SUBSIDIARY
Consolidated Statements of Income
(In Thousands, except for Per Share Data)
Three Months Ended Nine Months Ended
March 31, March 31,
--------------------- ---------------------
2006 2005 2006 2005
--------- --------- --------- ---------
Interest and (unaudited) (unaudited)
Dividend Income:
Interest and fees
on loans $ 1,978 $ 1,526 $ 5,665 $ 4,498
Interest on deposits
with banks 5 4 52 29
FHLB Stock dividends 0 6 0 27
Securities available-
for-sale 665 709 1,928 2,138
Securities held-to-
maturity 13 16 40 50
--------- --------- --------- ---------
Total interest and
dividend income $ 2,661 $ 2,261 $ 7,685 $ 6,742
--------- --------- --------- ---------
Interest Expense:
Deposits 770 597 2,153 1,764
Borrowings 211 32 492 125
--------- --------- --------- ---------
Total interest expense $ 981 $ 629 $ 2,645 $ 1,889
--------- --------- --------- ---------
Net Interest Income 1,680 1,632 5,040 4,853
Loan loss provision 0 0 0 0
--------- --------- --------- ---------
Net interest income after
loan loss provision 1,680 1,632 5,040 4,853
--------- --------- --------- ---------
Noninterest income:
Net gain on sale of loans 70 119 371 344
Demand deposit service
charges 124 127 403 411
Mortgage loan
servicing fees 138 158 459 494
Net gain (loss) on sale
of available-for-sale
securities (10) 0 (9) 9
Other 152 144 410 345
--------- --------- --------- ---------
Total noninterest
income $ 474 $ 548 $ 1,634 $ 1,603
--------- --------- --------- ---------
Noninterest expense:
Salaries and employee
benefits 918 868 2,656 2,484
Occupancy expenses 140 130 398 378
Furniture and equipment
depreciation 78 77 235 235
In-house computer expense 66 68 201 196
Advertising expense 40 44 156 131
Amortization of mtg
servicing fees 67 87 265 276
Federal insurance premiums 6 6 18 19
Postage 27 28 69 76
Legal, accounting, and
examination fees 39 37 134 120
Consulting fees 14 15 44 37
ATM processing 12 12 36 36
Other 227 187 651 628
--------- --------- --------- ---------
Total noninterest
expense 1,634 1,559 4,863 4,616
--------- --------- --------- ---------
Income before provision
for income taxes 520 621 1,811 1,840
--------- --------- --------- ---------
Provision for income
taxes 117 176 464 467
--------- --------- --------- ---------
Net income $ 403 $ 445 $ 1,347 $ 1,373
========= ========= ========= =========
Earnings per share $ 0.37 $ 0.40 $ 1.25 $ 1.20
========= ========= ========= =========
Diluted earnings per
share $ 0.33 $ 0.37 $ 1.12 $ 1.14
========= ========= ========= =========
Weighted average shares
outstanding (basic eps) 1,077,376 1,106,049 1,078,540 1,141,231
========= ========= ========= =========
Weighted average shares
outstanding
(diluted eps) 1,205,562 1,200,962 1,204,411 1,199,811
========= ========= ========= =========