HELENA, Mont., July 19, 2007 (PRIME NEWSWIRE) -- Eagle Bancorp ("Eagle") (OTCBB:EBMT), the stock holding company of American Federal Savings Bank (the "Bank"), reported net income of $1,778,000, or $1.66 per share ($1.47 per share diluted), for the year ended June 30, 2007, and announced an increased cash dividend of $0.24 per share. These earnings represent a decrease of $7,000, or 0.4%, compared to $1,785,000 for the year ended June 30, 2006. Earnings for the quarter ended June 30, 2007 were $442,000, or $0.41 per share ($0.37 per share diluted), an increase of 0.9% compared to $438,000 for the quarter ended June 30, 2006.
Eagle's quarterly cash dividend of $0.24 per share for the fourth quarter of Eagle's fiscal year represents an increase of $0.02 per share, or 9.1%, over the previous quarter's dividend. The dividend is payable August 24, 2007 to shareholders of record at the close of business on August 3, 2007.
The slight decrease in net income for the year ended June 30, 2007 was the result of an increase in noninterest expense of $149,000 and a decrease in net interest income of $29,000, offset by an increase in noninterest income of $96,000. Eagle's tax provision was $75,000 lower in 2007. Eagle's return on assets was 0.76% and its return on equity was 7.63%, compared with 0.83% and 7.97%, respectively, for the year ended June 30, 2006.
The increase in net income of $4,000 for the fourth quarter was the result of an increase in noninterest income of $57,000 offset by an increase in noninterest expense of $75,000 and a decrease in net interest income of $1,000. Eagle's tax provision was $23,000 lower in the current quarter. Eagle's fourth quarter annualized return on assets was 0.73% and its annualized return on equity was 7.30%, compared with 0.79% and 7.77%, respectively, for the same quarter in 2006.
Total interest and dividend income increased $472,000 to $3.288 million for the quarter ended June 30, 2007 from $2.816 million for the quarter ended June 30, 2006. This was due primarily to increases in interest and fees on loans of $399,000 and interest on securities available-for-sale of $68,000. Total interest expense increased $473,000 to $1.615 million for the quarter ended June 30, 2007 from $1.142 million for the quarter ended June 30, 2006. Interest on deposits increased $285,000 while interest on borrowings increased $188,000.
Total assets increased $18.43 million, or 8.15%, to $244.61 million at June 30, 2007 from $226.18 million at June 30, 2006. Loans receivable increased $17.28 million, or 12.27%, to $158.14 million from $140.86 million. Investment securities available-for-sale increased slightly to $64.77 million from $64.20 million. Deposits increased $5.31 million, or 3.05%, to $179.65 million from $174.34 million. Advances and other borrowings increased $11.43 million, or 51.10%, to $33.80 million from $22.37 million. Total stockholders' equity increased $1.54 million, or 6.83%, to $24.09 million at June 30, 2007 from $22.55 million at June 30, 2006. This was the result of net income for the period of $1.778 million and a decrease in accumulated other comprehensive loss of $239,000 (mainly due to a decrease in net unrealized loss on securities available-for-sale). These were partially offset by treasury stock purchases and dividends paid.
"We are pleased with our strong growth in assets and to again increase the dividend to our stockholders," said CEO Larry Dreyer.
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 59.8% 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. The Company 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)
June 30, 2007 June 30, 2006
------------- -------------
(Unaudited) (Audited)
ASSETS
Cash and due from banks 2,709 2,844
Interest-bearing deposits with banks 360 27
------------- -------------
Total cash and cash equivalents 3,069 2,871
Investment securities available-for-sale,
at market value 64,774 64,198
Investment securities held-to-maturity,
at cost 921 1,018
Investment in nonconsolidated subsidiary 155 155
Federal Home Loan Bank stock, at cost 1,315 1,315
Mortgage loans held-for-sale 1,175 918
Loans receivable, net of deferred loan
fees and allowance for loan losses of
$518 at June 30, 2007 and $535 at
June 30, 2006 158,140 140,858
Accrued interest and dividends receivable 1,333 1,211
Mortgage servicing rights, net 1,628 1,722
Property and equipment, net 5,806 5,962
Cash surrender value of life insurance 5,764 5,230
Real estate acquired in settlement of
loans, net of allowance for losses 0 0
Other assets 526 720
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Total assets 244,606 226,178
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LIABILITIES
Deposit accounts:
Noninterest bearing 13,694 12,575
Interest bearing 165,953 161,767
------------- -------------
Total deposits 179,647 174,342
Federal Funds Purchased 3,800 0
Advances from Federal Home Loan Bank and
Other Borrowings 30,000 22,371
Long-Term Subordinated Debentures 5,155 5,155
Accrued expenses and other liabilities 1,916 1,765
------------- -------------
Total liabilities 220,518 203,633
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; 1,084,357 and 1,091,722
shares outstanding at June 30, 2007 and
June 30, 2006, respectively) 12 12
Additional paid-in capital 4,387 4,274
Unallocated common stock held by employee
stock ownership plan ("ESOP") (92) (129)
Treasury stock, at cost (139,215 and
131,850 shares at June 30, 2007 and
June 30, 2006, respectively) (4,759) (4,521)
Retained earnings 25,448 24,056
Accumulated other comprehensive (loss)
income (908) (1,147)
------------- -------------
Total equity 24,088 22,545
Total liabilities and equity 244,606 226,178
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EAGLE BANCORP (consolidated)
Three Months Ended Twelve Months Ended
June 30, June 30,
(unaudited)
---------------------- ----------------------
2007 2006 2007 2006
---------- ---------- ---------- ----------
(unaudited) (audited)
Interest and Dividend
Income:
Loans, including fees 2,533 2,134 9,731 7,799
Deposits with banks 11 7 50 59
Trust preferred
securities 2 2 9 7
FHLB Stock dividends 3 0 7 0
Available-for-sale
securities 729 661 2,811 2,589
Held-to-maturity
securities 10 12 43 52
---------- ---------- ---------- ----------
Total interest and
dividend income 3,288 2,816 12,651 10,506
---------- ---------- ---------- ----------
Interest Expense:
Deposits 1,143 858 4,191 3,011
Subordinated debentures 77 77 309 235
FHLB Advances and other
borrowings 395 207 1,466 546
---------- ---------- ---------- ----------
Total interest
expense 1,615 1,142 5,966 3,792
---------- ---------- ---------- ----------
Net Interest Income 1,673 1,674 6,685 6,714
Loan loss provision 0 0 0 0
---------- ---------- ---------- ----------
Net interest income
after loan loss
provision 1,673 1,674 6,685 6,714
---------- ---------- ---------- ----------
Noninterest income:
Net gain on sale of
loans 181 121 643 492
Demand deposit service
charges 119 129 496 532
Mortgage loan servicing
fees 128 134 533 593
Net gain (loss) on sale
of available-for-sale
securities 0 9 (4) 0
Other 160 138 593 548
--------- --------- --------- ---------
Total noninterest
income 588 531 2,261 2,165
---------- ---------- ---------- ----------
Noninterest expense:
Salaries and employee
benefits 922 863 3,617 3,519
Occupancy expenses 127 139 537 538
Furniture and equipment
depreciation 71 75 287 310
In-house computer
expense 75 73 286 274
Advertising expense 51 46 247 201
Amortization of mtg
servicing fees 90 90 305 355
Federal insurance
premiums 5 5 21 23
Postage 22 17 86 86
Legal, accounting, and
examination fees 54 48 232 182
Consulting fees 23 14 79 58
ATM processing 14 15 49 51
Other 223 217 868 868
---------- ---------- ---------- ----------
Total noninterest
expense 1,677 1,602 6,614 6,465
---------- ---------- ---------- ----------
Income before
provision for income
taxes 584 603 2,332 2,414
---------- ---------- ---------- ----------
Provision for income
taxes 142 165 554 629
---------- ---------- ---------- ----------
Net income 442 438 1,778 1,785
========== ========== ========== ==========
Earnings per share 0.41 0.41 1.66 1.66
========== ========== ========== ==========
Diluted earnings per
share 0.37 0.36 1.47 1.48
========== ========== ========== ==========
Weighted average
shares outstanding
(basic eps) 1,072,745 1,075,442 1,072,823 1,077,766
========== ========== ========== ==========
Weighted average
shares outstanding
(diluted eps) 1,211,312 1,206,712 1,209,586 1,204,986
========== ========== ========== ==========