HELENA, Mont., April 19, 2007 (PRIME NEWSWIRE) -- Eagle Bancorp ("Eagle") (OTCBB:EBMT), the stock holding company of American Federal Savings Bank (the "Bank"), reported net income of $453,000, or $0.42 per share ($0.37 per share diluted), for the three months ended March 31, 2007. These earnings represent an increase of 12.4% over the $403,000 earned for the quarter ended March 31, 2006. Earnings for the nine month period ended March 31, 2007 were $1.336 million, or $1.25 per share ($1.11 per share diluted), a decrease of $11,000, or 0.8%, compared to $1.347 million earned for the nine month period ended March 31, 2006.
Also today, Eagle's Board of Directors declared a quarterly cash dividend of $0.22 per share for the third quarter of Eagle's fiscal year. The dividend is payable May 18, 2007 to shareholders of record at the close of business on May 4, 2007.
The increase in net income of $50,000 for the third quarter was the result of increases in noninterest income of $70,000 and net interest income of $48,000, offset by an increase in non-interest expense of $26,000. Eagle's tax provision was $42,000 higher in the current quarter. Noninterest income increased due to an increase in gain on sale of loans, as the Bank chose to sell a higher percentage of its mortgage originations this quarter. The collection of interest on a large commercial loan which had previously been on non-accrual contributed to the increase in net interest income. Eagle's annualized return on assets was 0.76% and its annualized return on equity was 7.51% for the quarter, compared with 0.75% and 7.17%, respectively, for the same quarter in 2006.
Total interest and dividend income increased by $599,000 to $3.26 million for the quarter ended March 31, 2007 from $2.661 million for the quarter ended March 31, 2006. This was due to increases in interest on loans of $531,000 and interest on securities available-for-sale of $61,000. Total interest expense increased $551,000 to $1.532 million for the quarter ended March 31, 2007 from $981,000 for the quarter ended March 31, 2006. Interest on deposits increased by $302,000 and interest on borrowings increased $249,000.
Earnings for the nine month period ended March 31, 2007 were $1.336 million, or $1.25 per share ($1.11 per share diluted), a decrease of $11,000, or 0.8%, compared to $1.347 million, or $1.25 per share ($1.12 per share diluted) for the nine month period ended March 31, 2006. The decrease in net income for the period was the result of an increase in noninterest expense of $74,000 and a decrease in net interest income of $28,000, partially offset by an increase in noninterest income of $39,000. Eagle's tax provision was $52,000 lower in the current period. Eagle's annualized return on assets was 0.76% and its annualized return on equity was 7.59%, compared with 0.85% and 8.01%, respectively, for the same nine-month period in 2006.
Total assets increased $15.4 million, or 6.8%, to $241.6 million at March 31, 2007 from $226.2 million at June 30, 2006. Loans receivable increased $10.4 million, or 7.4%, to $151.3 million from $140.9 million. Investment securities available-for-sale increased $3.1 million, or 4.8%, to $67.3 million from $64.2 million. Deposits increased $7.1 million, or 4.1%, to $181.4 million from $174.3 million. Advances and other borrowings increased $6.3 million, to $28.7 million from $22.4 million. Total stockholders' equity increased $1.8 million, or 8.0%, to $24.3 million at March 31, 2007 from $22.5 million at June 30, 2006. This was a result of net income for the period of $1.336 million and a decrease in accumulated other comprehensive loss of $881,000 (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 59.7% 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)
March 31, June 30,
2007 2006
(Unaudited) (Audited)
ASSETS
Cash and due from banks 3,808 2,844
Interest-bearing deposits with banks 188 27
------- -------
Total cash and cash equivalents 3,996 2,871
Investment securities
available-for-sale, at market value 67,317 64,198
Investment securities held-to-maturity,
at cost 951 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 1,766 918
Loans receivable, net of deferred loan
fees and allowance for loan losses of
$523 at March 31, 2007 and $535 at
June 30, 2006 151,256 140,858
Accrued interest and dividends
receivable 1,303 1,211
Mortgage servicing rights, net 1,659 1,722
Property and equipment, net 5,844 5,962
Cash surrender value of life insurance 5,713 5,230
Real estate acquired in settlement of
loans, net of allowance for losses 0 0
Other assets 371 720
------- -------
Total assets 241,646 226,178
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LIABILITIES
Deposit accounts:
Noninterest bearing 13,552 12,575
Interest bearing 167,806 161,767
------- -------
Total Deposits 181,358 174,342
Advances from Federal Home Loan Bank
and Other Borrowings 28,696 22,371
Long-Term Subordinated Debentures 5,155 5,155
Accrued expenses and other liabilities 2,058 1,765
------- -------
Total liabilities 217,267 203,633
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; 1,085,357 and 1,091,722
shares outstanding at March 31, 2007
and June 30, 2006, respectively) 12 12
Additional paid-in capital 4,358 4,274
Unallocated common stock held by ESOP (101) (129)
Treasury stock, at cost (4,726) (4,521)
Retained earnings 25,102 24,056
Accumulated other comprehensive (loss)
income (266) (1,147)
------- -------
Total equity 24,379 22,545
Total liabilities and equity 241,646 226,178
======= =======
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,
(unaudited) (unaudited)
--------------------- ---------------------
2007 2006 2007 2006
--------- --------- --------- ---------
Interest and
Dividend Income:
Interest and fees
on loans 2,509 1,978 7,198 5,665
Interest on deposits
with banks 11 5 39 52
FHLB Stock dividends 3 0 4 0
Securities
available-for-sale 726 665 2,082 1,928
Securities
held-to-maturity 11 13 33 40
--------- --------- --------- ---------
Total
interest and
dividend
income 3,260 2,661 9,356 7,685
--------- --------- --------- ---------
Interest Expense:
Deposits 1,072 770 3,048 2,153
Advances and other
borrowings 385 136 1,071 340
Subordinated
debentures 75 75 225 152
--------- --------- --------- ---------
Total
interest
expense 1,532 981 4,344 2,645
--------- --------- --------- ---------
Net Interest Income 1,728 1,680 5,012 5,040
Loan loss provision 0 0 0 0
--------- --------- --------- ---------
Net interest income
after loan loss
provision 1,728 1,680 5,012 5,040
--------- --------- --------- ---------
Noninterest income:
Net gain on sale of
loans 153 70 462 371
Demand deposit
service charges 114 124 377 403
Mortgage loan
servicing fees 134 138 405 459
Net gain (loss) on
sale of
available-for-sale
securities (5) (10) (4) (9)
Other 148 152 433 410
--------- --------- --------- ---------
Total
noninterest
income 544 474 1,673 1,634
--------- --------- --------- ---------
Noninterest expense:
Salaries and
employee benefits 943 918 2,695 2,656
Occupancy expenses 135 140 410 398
Furniture and
equipment
depreciation 69 78 216 235
In-house computer
expense 70 66 211 201
Advertising expense 43 40 196 156
Amortization of mtg
servicing fees 66 67 215 265
Federal insurance
premiums 5 6 16 18
Postage 25 27 64 69
Legal, accounting,
and examination
fees 54 39 178 134
Consulting fees 20 14 56 44
ATM processing 13 12 35 36
Other 217 227 645 651
--------- --------- --------- ---------
Total
noninterest
expense 1,660 1,634 4,937 4,863
--------- --------- --------- ---------
Income before
provision for
income taxes 612 520 1,748 1,811
--------- --------- --------- ---------
Provision for
income taxes 159 117 412 464
--------- --------- --------- ---------
Net income 453 403 1,336 1,347
========= ========= ========= =========
Earnings per share 0.42 0.37 1.25 1.25
========= ========= ========= =========
Diluted earnings
per share 0.37 0.33 1.11 1.12
========= ========= ========= =========
Weighted average
shares outstanding
(basic eps) 1,072,347 1,077,376 1,072,849 1,078,540
========= ========= ========= =========
Weighted average
shares outstanding
(diluted eps) 1,210,162 1,205,562 1,209,011 1,204,411
========= ========= ========= =========