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 ------------- ------------- Total assets 244,606 226,178 ============= ============= 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 ============= =============
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 ========== ========== ========== ==========