HELENA, Mont., April 21, 2005 (PRIMEZONE) -- Eagle Bancorp ("Eagle") (OTCBB:EBMT), the stock holding company of American Federal Savings Bank (the "Bank"), reported net income of $445,000, or $0.40 per share ($0.37 per share diluted), for the three months ended March 31, 2005, and declared a cash dividend of $0.18 per share. This represents an increase of 12.4% over the $396,000 earned for the quarter ended March 31, 2004, but a decline of 22.1% from the $571,000 earned in the prior quarter ended December 31, 2004. Earnings for the nine month period ended March 31, 2005 were $1.373 million, or $1.20 per share ($1.14 per share diluted), a decrease of $373,000, or 21.4%, compared to $1.746 million for the nine month period ended March 31, 2004.
Also today, Eagle's Board of Directors declared a quarterly cash dividend of $0.18 per share for the third quarter of Eagle's fiscal year. The dividend is payable May 20, 2005 to shareholders of record at the close of business on May 6, 2005.
The increase in net income of $49,000 for the third quarter was the result of an increase in noninterest income of $51,000, a decrease in noninterest expense of $4,000 and an increase in net interest income of $3,000. Eagle's tax provision was $9,000 higher in the current quarter. Noninterest income increased due to increases in mortgage loan servicing fees and other noninterest income, which more than offset the decline in net gain on sale of loans. Eagle's annualized return on assets was 0.89% and its annualized return on equity was 7.89% for the quarter, compared with 0.77% and 6.41%, respectively, for the same quarter in 2004.
Total interest and dividend income decreased by $122,000 to $2.26 million for the quarter ended March 31, 2005 from $2.38 million for the quarter ended March 31, 2004. This was due to decreases in interest on securities available-for-sale of $94,000 and dividends received on FHLB stock of $11,000. Total interest expense decreased $125,000 to $629,000 for the quarter ended March 31, 2005 from $754,000 for the quarter ended March 31, 2004. The decline in interest expense was primarily due to a reduction in the amount of FHLB advances outstanding. Interest on advances decreased by $112,000 and interest on deposits decreased $13,000.
Earnings for the nine month period ended March 31, 2005 were $1.373 million, or $1.20 per share ($1.14 per share diluted), a decrease of $373,000, or 21.4%, compared to $1.746 million, or $1.48 per share ($1.46 per share diluted) for the nine month period ended March 31, 2004. The decrease in net income for the period was the result of a decrease in noninterest income of $1.042 million, offset by an increase in net interest income of $280,000 and a decrease in noninterest expense of $72,000. Noninterest income decreased due to the decline in net gain on sale of loans and to larger increases in the value of Eagle's servicing rights in the previous year's period. Eagle's tax provision was $317,000 lower in the current period. Eagle's annualized return on assets was 0.91% and its annualized return on equity was 8.04%, compared with 1.14% and 9.57%, respectively, for the same nine-month period in 2004.
Total assets decreased $4.8 million, or 2.4%, to $198.2 million at March 31, 2005 from $203.0 million at June 30, 2004. Investment securities available-for-sale decreased $11.0 million, or 12.4%, to $77.5 million from $88.5 million. Loans receivable increased $6.9 million, or 7.5%, to $99.4 million from $92.5 million. Advances from the Federal Home Loan Bank decreased $3.17 million, to $4.28 million from $7.45 million, while deposits were up slightly. Total stockholders' equity decreased $2.5 million, or 10.4%, to $21.5 million at March 31, 2005 from $24.0 million at June 30, 2004. This was a result of $3.90 million in treasury stock purchased during the period, net income for the period of $1.373 million and a decrease in accumulated other comprehensive loss of $139,000 mainly due to a reduction in net unrealized loss on securities available-for-sale.
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 53% of Eagle Bancorp's common stock.
Financial highlights for Eagle Bancorp follow.
EAGLE BANCORP AND SUBSIDIARY
(consolidated)
March 31, 2005 June 30, 2004
(Unaudited) (Audited)
ASSETS
Cash and due from banks 2,731,654 3,587,145
Interest-bearing
deposits with banks 114,290 759,621
Investment securities
available-for-sale,
at market value 77,464,006 88,547,458
Investment securities
held-to-maturity,
at cost 1,265,004 1,565,692
Federal Home Loan Bank stock,
at cost 1,315,400 1,672,200
Mortgage loans
held-for-sale 1,072,329 1,436,747
Loans receivable,
net of deferred loan fee
and allowance for
loan losses 99,409,881 92,456,589
Accrued interest
and dividends receivable 1,092,999 1,079,815
Mortgage servicing
rights, net 1,966,728 2,003,258
Property and
equipment, net 6,321,159 6,557,883
Cash surrender value of
life insurance 5,004,296 2,476,842
Real estate acquired
in settlement of
loans, net of
allowance for losses 0 0
Other assets 433,289 870,001
------------ ------------
Total assets 198,191,035 203,013,251
============ ============
LIABILITIES
Deposit accounts:
Noninterest bearing 10,446,639 9,267,458
Interest bearing 160,349,425 160,801,422
Advances from Federal
Home Loan Bank 4,276,852 7,450,000
Accrued expenses
and other liabilities 1,596,642 1,469,832
------------ ------------
Total liabilities 176,669,558 178,988,712
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; 1,103,972 and 1,212,372
shares outstanding at March 31,
2005 and June 30, 2004,
respectively) 12,236 12,236
Additional paid-in
capital 4,161,278 4,072,947
Unallocated common stock
held by employee stock
ownership plan
("ESOP") (174,848) (202,448)
Treasury stock, at cost
(119,600 and 11,200
shares at March 31, 2005
and June 30, 2004,
respectively) (4,047,890) (198,665)
Retained earnings 22,341,619 21,250,088
Accumulated other
comprehensive
(loss) income (770,918) (909,619)
------------ ------------
Total equity 21,521,477 24,024,539
Total liabilities
and equity 198,191,035 203,013,251
============ ============
EAGLE BANCORP AND SUBSIDIARY
Consolidated Statements of Income
Three Months Ended Nine Months Ended
March 31, March 31,
(unaudited) (unaudited)
---------------------- ----------------------
2005 2004 2005 2004
---------- ---------- ---------- ----------
Interest and
Dividend Income:
Interest and
fees on loans 1,526,271 1,535,153 4,497,917 4,821,029
Interest on
deposits with banks 4,420 7,612 29,158 37,039
FHLB Stock
dividends 6,250 17,206 27,215 61,053
Securities
available-for-sale 708,456 802,101 2,137,339 2,068,928
Securities
held-to-maturity 15,640 21,567 49,953 71,173
---------- ---------- ---------- ----------
Total interest
and dividend
income 2,261,037 2,383,639 6,741,582 7,059,222
---------- ---------- ---------- ----------
Interest Expense:
Deposits 597,321 610,833 1,763,711 2,052,755
FHLB Advances 31,423 142,979 124,580 433,473
---------- ---------- ---------- ----------
Total interest
expense 628,744 753,812 1,888,291 2,486,228
---------- ---------- ---------- ----------
Net Interest Income 1,632,293 1,629,827 4,853,291 4,572,994
Loan loss provision 0 0 0 0
---------- ---------- ---------- ----------
Net interest income
after loan loss
provision 1,632,293 1,629,827 4,853,291 4,572,994
---------- ---------- ---------- ----------
Noninterest income:
Net gain on
sale of loans 119,210 195,440 344,286 1,001,983
Demand deposit
service charges 126,733 149,460 410,649 475,596
Mortgage loan
servicing fees 157,784 46,883 493,499 880,015
Net gain (loss)
on sale of
available-for-sale
securities (372) 11,070 9,399 12,372
Other 144,579 94,132 344,858 274,404
---------- ---------- ---------- ----------
Total non-
interest
income 547,934 496,985 1,602,691 2,644,370
---------- ---------- ---------- ----------
Noninterest expense:
Salaries
and employee
benefits 868,151 823,683 2,484,386 2,360,528
Occupancy expenses 130,093 132,299 378,210 364,926
Furniture and
equipment
depreciation 76,959 58,960 234,869 180,797
In-house
computer expense 67,916 63,339 195,468 179,391
Advertising
expense 44,114 32,716 131,130 106,943
Amortization of
mtg servicing
fees 87,103 118,753 276,229 506,561
Federal
insurance
premiums 6,138 6,607 18,471 19,401
Postage 28,072 33,926 76,327 93,325
Legal, accounting,
and examination
fees 36,375 45,425 119,953 117,368
Consulting fees 14,750 1,200 37,414 12,540
ATM processing 12,260 12,287 35,742 38,984
Other 187,324 234,417 628,314 707,331
---------- ---------- ---------- ----------
Total non-
interest
expense 1,559,255 1,563,612 4,616,513 4,688,095
---------- ---------- ---------- ----------
Income before
provision for
income taxes 620,972 563,200 1,839,469 2,529,269
---------- ---------- ---------- ----------
Provision for
income taxes 176,396 167,041 466,556 783,555
---------- ---------- ---------- ----------
Net income 444,576 396,159 1,372,913 1,745,714
========== ========== ========== ==========
Earnings per
share 0.40 0.33 1.20 1.48
========== ========== ========== ==========
Diluted earnings
per share 0.37 0.33 1.14 1.46
========== ========== ========== ==========
Weighted average
shares outstanding
(basic eps) 1,106,049 1,186,202 1,141,231 1,182,624
========== ========== ========== ==========
Weighted average
shares outstanding
(diluted eps) 1,200,962 1,196,362 1,199,811 1,195,210
========== ========== ========== ==========