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 ========= ========= ========= =========