HELENA, Mont., Oct. 19, 2006 (PRIMEZONE) -- Eagle Bancorp ("Eagle")(OTCBB:EBMT), the stock holding company of American Federal Savings Bank (the "Bank"), reported first quarter net income of $422,000, or $0.39 per share ($0.35 per share diluted), for the three months ended September 30, 2006, and declared a cash dividend of $0.22 per share. Earnings for the quarter decreased by 15.4% from the $499,000 earned for the quarter ended September 30, 2005.
Eagle's Board of Directors also declared a quarterly cash dividend of $0.22 per share for the first quarter of Eagle's fiscal year. The dividend is payable November 17, 2006 to shareholders of record at the close of business on November 3, 2006.
The decrease in net income for the first quarter was the result of decreases in noninterest income of $106,000 and net interest income of $16,000, as well as an increase in noninterest expense of $24,000. Eagle's tax provision was $69,000 lower in the current quarter. Noninterest income declined due to lower gains on loan sales from the 2005 period and the absence of an adjustment of $45,860 to the valuation of Eagle's servicing rights as occurred in the first quarter of 2005. Eagle's annualized return on assets was 0.74% and its annualized return on equity was 7.34% for the quarter, compared with 0.95% and 8.94%, respectively, for the same quarter in 2005.
Total interest and dividend income increased $556,000 to $2,994,000 for the quarter ended September 30, 2006 from $2,438,000 for the quarter ended September 30, 2005. This was due primarily to an increase in interest and fees on loans of $521,000. Higher funding costs caused total interest expense to increase by $572,000 to $1.34 million for the quarter ended September 30, 2006 from $768,000 for the quarter ended September 30, 2005. Interest expense on deposits increased $268,000 and interest expense on advances increased $231,000. Interest expense on the subordinated debentures increased $73,000, as the debt was outstanding for only a short period of time in the previous year's quarter.
Total assets increased by $6.84 million, or 3.0%, to $233.02 million at September 30, 2006 from $226.18 million at June 30, 2006. Loans receivable increased $3.92 million, or 2.8%, to $144.78 million from $140.86 million. Loans held-for-sale increased $1.51 million to $2.43 million from $920,000. Deposits increased $1.82 million, or 1.0%, to $176.16 million at September 30, 2006 from $174.34 million at June 30, 2006. Advances from the Federal Home Loan Bank increased $3.46 million, or 15.5%, to $25.83 million from $22.37 million. Total stockholders' equity increased $900,000, or 4.0%, to $23.44 million at September 30, 2006 from $22.54 million at June 30, 2006, as a result of the net income for the period of $422,000 and a decrease in accumulated other comprehensive loss of $670,000 (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 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,
2006 2006
(Unaudited) (Audited)
ASSETS
Cash and due from banks 3,861 2,844
Interest-bearing deposits with banks 321 27
-------- --------
Total cash and cash equivalents 4,182 2,871
Investment securities available-for-sale,
at market value 64,613 64,198
Investment securities held-to-maturity, at
cost 1,005 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 2,428 918
Loans receivable, net of deferred loan fees
and allowance for loan losses of $531 at
September 30, 2006 and $535 at June 30,
2006 144,776 140,858
Accrued interest and dividends receivable 1,305 1,211
Mortgage servicing rights, net 1,699 1,722
Property and equipment, net 5,935 5,962
Cash surrender value of life insurance 5,275 5,230
Real estate acquired in settlement of loans,
net of allowance for losses 0 0
Other assets 328 720
-------- --------
Total assets 233,016 226,178
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LIABILITIES
Deposit accounts:
Noninterest bearing 12,771 12,575
Interest bearing 163,392 161,767
-------- --------
Total Deposits 176,163 174,342
Advances from Federal Home Loan Bank 25,830 22,371
Long-Term Subordinated Debentures 5,155 5,155
Accrued expenses and other liabilities 2,424 1,765
-------- --------
Total liabilities 209,572 203,633
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; 1,087,557 and 1,091,722
shares outstanding at September 30, 2006
and June 30, 2006, respectively) 12 12
Additional paid-in capital 4,302 4,274
Unallocated common stock held by ESOP (120) (129)
Treasury stock, at cost (4,654) (4,521)
Retained earnings 24,381 24,056
Accumulated other comprehensive (loss)
income (477) (1,147)
-------- --------
Total equity 23,444 22,545
Total liabilities and equity 233,016 226,178
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EAGLE BANCORP AND SUBSIDIARY
Consolidated Statements of Income
For the Three Months Ended September 30, 2006 and 2005
(Dollars in Thousands, Except for Per Share Data)
Three Months Ended
Sept. 30 (unaudited) Sept. 30
------------------------------
2006 2005
--------- ---------
Interest and Dividend Income:
Interest and fees on loans 2,311 1,790
Interest on deposits with banks 12 11
Securities held to maturity 11 14
Securities available for sale 660 623
FHLB Stock dividends 0 0
--------- ---------
Total interest and dividend income 2,994 2,438
--------- ---------
Interest Expense:
Deposits 934 666
Federal Home Loan Bank advances 331 100
Subordinated debentures 75 2
--------- ---------
Total interest expense 1,340 768
--------- ---------
Net Interest Income 1,654 1,670
Loan loss provision 0 0
--------- ---------
Net interest income after loan loss
provision 1,654 1,670
--------- ---------
Noninterest income:
Net gain on sale of loans 119 173
Demand deposit service charges 135 143
Mortgage loan servicing fees 138 191
Net gain (loss) on sale of available for
sale securities 0 1
Other 145 135
--------- ---------
Total noninterest income 537 643
--------- ---------
Noninterest expense:
Salaries and employee benefits 838 832
Occupancy expenses 142 125
Furniture and equipment depreciation 79 79
In-house computer expense 71 67
Advertising expense 93 70
Amortization of mtg servicing fees 76 106
Federal insurance premiums 6 6
Postage 18 23
Legal, accounting, and examination fees 58 34
Consulting fees 16 18
ATM processing 12 12
Other 207 220
--------- ---------
Total noninterest expense 1,616 1,592
--------- ---------
Income before provision for income
taxes 575 721
--------- ---------
Provision for income taxes 153 222
--------- ---------
Net income 422 499
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Basic earnings per common share 0.39 0.46
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Diluted earnings per common share 0.35 0.41
========= =========
Weighted average shares outstanding
(basic eps) 1,073,660 1,080,604
========= =========
Weighted average shares outstanding
(diluted eps) 1,207,858 1,203,258
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