HELENA, Mont., July 16, 2009 (GLOBE NEWSWIRE) -- Eagle Bancorp ("Eagle" or "the Company") (OTCBB:EBMT), the stock holding company of American Federal Savings Bank (the "Bank"), reported net income of $2,388,000, or $2.23 per share ($1.96 per share diluted), for the year ended June 30, 2009, and announced an increase in its cash dividend to $0.26 per share. These earnings represent an increase of $278,000, or 13.2%, compared to $2,110,000 for the year ended June 30, 2008. Earnings for the quarter ended June 30, 2009 were $905,000, or $0.84 per share ($0.74 per share diluted), an increase of 1.8% compared to $889,000 for the quarter ended June 30, 2008.
Eagle's quarterly cash dividend of $0.26 per share for the fourth quarter of Eagle's fiscal year represents an increase of $0.005 per share, or 1.96%, over the previous quarter's dividend. The dividend is payable August 28, 2009 to shareholders of record at the close of business on August 7, 2009.
"We are pleased with our strong financial performance and that we have again been able to increase the dividend to our stockholders. I am also pleased that our asset quality remains strong during a period when other parts of the country are experiencing a difficult lending environment," said CEO Peter Johnson.
The increase in net income for the year ended June 30, 2009 was the result of an increase in net interest income after loan loss provision of $1.365 million and an increase in noninterest income of $775,000, offset by an increase in noninterest expense of $1.50 million. Eagle's tax provision was $362,000 higher in 2009. Eagle's return on assets was 0.84% and its return on equity was 8.94%, compared with 0.80% and 8.49%, respectively, for the year ended June 30, 2008.
The increase in noninterest income of $775,000 for the year ended June 30, 2009 was due to an increase in gain on sale of loans of $1.415 million partially offset by additional recognized loss on Freddie Mac and Fannie Mae preferred stock of $785,000 that is accounted for under Statement of Financial Accounting Standard (SFAS) No. 159 "Fair Value Option for Financial Assets and Financial Liabilities". The preferred stock of Freddie Mac and Fannie Mae currently held by the Company is valued at $25,000, or 0.009 percent, of total assets as of June 30, 2009.
The increase in noninterest expense of $1.5 million for the year ended June 30, 2009 was due to increases in salaries and employment benefits of $446,000 for merit raises and incentive pay related to loan originations and a slightly larger staff, an increase in the Bank's FDIC deposit insurance premium of $287,000 due to an increase in the base assessment and an industry wide special assessment, an increase in the amortization of mortgage servicing rights of $285,000 due to prepayment of loans experienced as a result of significant refinance activity, and an increase in marketing expense of $101,000. Other items, within noninterest expense, experienced mostly modest increases due to inflationary items and other various factors.
Total assets increased $9.80 million, or 3.50%, to $289.71 million at June 30, 2009 from $279.91 million at June 30, 2008. Loans receivable decreased $952,000 or .57%, to $167.20 million from $168.15 million. Investment securities available-for-sale increased to $82.26 million from $78.42 million. Deposits increased $8.35 million, or 4.67%, to $187.20 million from $178.85 million. Advances and other borrowings decreased $1.17 million, or 1.71%, to $67.06 million from $68.22 million. Total stockholders' equity increased $2.16 million, or 8.42%, to $27.79 million at June 30, 2009 from $25.63 million at June 30, 2008. This was the result of net income for the period of $2.388 million and a decrease in accumulated other comprehensive loss of $240,000 (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.
For the fourth quarter, the increase in net income of $16,000 was the result of a decrease in net interest income after loan loss provision of $122,000, and an increase in noninterest expense of $560,000 offset by an increase in noninterest income of $781,000. Eagle's tax provision was $83,000 higher for the quarter. Eagle's fourth quarter annualized return on assets was 1.24% and its annualized return on equity was 13.39%, compared with 1.30% and 13.83%, respectively, for the same quarter in 2008.
For the quarter ended June 30, 2009, total interest and dividend income increased $45,000 to $3.760 million from $3.715 million for the quarter ended June 30, 2008. This was due primarily to increases in interest and fees on loans of $21,000 and interest on securities available-for-sale of $41,000. Total interest expense decreased $159,000 to $1.441 million for the quarter ended June 30, 2009 from $1.60 million for the quarter ended June 30, 2008. Interest on deposits decreased $236,000 while interest on borrowings increased $77,000.
Relatively favorable economic conditions continued during the fiscal year in southwestern Montana where the Bank conducts its principal banking operations. During the year, Eagle has maintained its asset quality. Montana's unemployment rate also remains relatively low at 6.3 percent versus the U.S. unemployment rate of 9.4 percent, as reported by the Bureau of Labor Statistics at the end of May 2009. In addition the unemployment rate is only 4.0 percent for Lewis and Clark County where a majority of the Bank's loans are located. Thus far, the significant difficulties in other markets with regard to housing have not been felt as acutely in the Bank's markets. RealtyTrac(r) ranks Montana 48th among all states for single family residential foreclosures at the end of May 2009.
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 60.3% 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, June 30,
2009 2008
(Unaudited) (Audited)
ASSETS
Cash and due from banks $ 2,487 $ 3,541
Interest-bearing deposits with banks 224 549
Federal funds sold 3,617 --
----------- -----------
Total cash and cash equivalents 6,328 4,090
Securities available-for-sale, at market
value 82,263 78,417
Securities held-to-maturity, at cost 375 697
Preferred stock - SFAS 159, at market
value 25 1,321
Federal Home Loan Bank stock, at cost 2,000 1,715
Investment in Eagle Bancorp Statutory
Trust I 155 155
Mortgage loans held-for-sale 5,349 7,370
Loans receivable, net of deferred loan
fees and allowance for loan losses of
$525 at June 30, 2009 and $300 at
June 30, 2008 167,197 168,149
Accrued interest and dividends receivable 1,399 1,426
Mortgage servicing rights, net 2,208 1,652
Premises and equipment, net 13,761 8,080
Cash surrender value of life insurance 6,496 6,285
Real estate acquired in settlement of
loans, net of allowance for losses -- --
Other assets 2,153 550
----------- -----------
Total assets $ 289,709 $ 279,907
=========== ===========
LIABILITIES
Deposit accounts:
Noninterest bearing 14,247 14,617
Interest bearing 172,952 164,234
----------- -----------
Total deposits 187,199 178,851
Accrued expenses and other liabilities 2,507 2,045
Federal funds purchased -- 3,000
FHLB advances and other borrowings 67,056 65,222
Subordinated debentures 5,155 5,155
----------- -----------
Total liabilities 261,917 254,273
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; 1,075,312 and 1,076,072
shares outstanding at June 30, 2009 and
June 30, 2008, respectively) 12 12
Additional paid-in capital 4,564 4,487
Unallocated common stock held by employee
stock ownership plan ("ESOP") (18) (55)
Treasury stock, at cost (148,260 and
147,500 shares at June 30, 2009 and
June 30, 2008, respectively) (5,034) (5,013)
Retained earnings 28,850 27,025
Accumulated other comprehensive loss (582) (822)
----------- -----------
Total equity 27,792 25,634
Total liabilities and equity $ 289,709 $ 279,907
=========== ===========
EAGLE BANCORP AND SUBSIDIARY
Consolidated Statements of Income
(In Thousands, except for Per Share Data)
Three Months Ended Twelve Months Ended
June 30, June 30,
(unaudited) (unaudited)
--------------------- ---------------------
2009 2008 2009 2008
---------- ---------- ---------- ----------
Interest and Dividend
Income:
Interest and fees on
loans $2,757 $2,736 $11,411 $10,905
Securities available-
for-sale 994 953 3,893 3,071
Securities held-to-
maturity 5 8 20 34
Trust preferred
securities 2 2 9 9
FHLB dividends (5) 7 -- 16
Interest on deposits
with banks 7 9 15 63
---------- ---------- ---------- ----------
Total interest and
dividend income 3,760 3,715 15,348 14,098
---------- ---------- ---------- ----------
Interest Expense:
Deposits 699 935 3,161 4,387
Advances and other
borrowings 665 588 2,645 1,966
Subordinated debentures 77 77 309 309
---------- ---------- ---------- ----------
Total interest
expense 1,441 1,600 6,115 6,662
---------- ---------- ---------- ----------
Net Interest Income 2,319 2,115 9,233 7,436
Loan loss provision 151 (175) 257 (175)
---------- ---------- ---------- ----------
Net interest income after
loan loss provision 2,168 2,290 8,976 7,611
---------- ---------- ---------- ----------
Noninterest income:
Demand deposit service
charges 195 164 745 711
Net gain on sale of loans 946 255 2,216 801
Mortgage loan servicing
fees 221 136 628 542
Net gain (loss) on sale of
available-for-sale
securities (3) -- 54 72
Net gain (loss) on
securities FAS 159 7 38 (1,296) (511)
Other 167 159 652 609
---------- ---------- ---------- ----------
Total noninterest
income 1,533 752 2,999 2,224
---------- ---------- ---------- ----------
Noninterest expense:
Salaries and employee
benefits 1,109 1,013 4,411 3,965
Occupancy expenses 170 136 627 537
Furniture and equipment
depreciation 63 71 273 281
In-house computer expense 92 77 370 297
Marketing expense 126 108 394 293
Amortization of mtg
servicing fees 220 89 598 313
Federal insurance
premiums 237 5 307 20
Postage 42 20 151 99
Legal, accounting, and
examination fees 58 51 231 220
Consulting fees 32 44 114 116
ATM processing 17 16 62 56
Other 241 217 1,025 866
---------- ---------- ---------- ----------
Total noninterest
expense 2,407 1,847 8,563 7,063
---------- ---------- ---------- ----------
Income before provision
for income taxes 1,294 1,195 3,412 2,772
---------- ---------- ---------- ----------
Provision for income
taxes 389 306 1,024 662
---------- ---------- ---------- ----------
Net income $905 $889 $2,388 $2,110
========== ========== ========== ==========
Basic earnings per share $0.84 $0.83 $2.23 $1.97
========== ========== ========== ==========
Diluted earnings per
share $0.74 $0.73 $1.96 $1.74
========== ========== ========== ==========
Weighted average shares
outstanding (basic eps) 1,072,252 1,069,027 1,070,628 1,070,600
========== ========== ========== ==========
Weighted average shares
outstanding
(diluted eps) 1,220,512 1,215,912 1,218,785 1,214,186
========== ========== ========== ==========