BETHESDA, Md., April 20 /PRNewswire-FirstCall/ -- Eagle Bancorp,
Inc. (NASDAQ:EGBN), the parent company of EagleBank, today
announced net income of $2.0 million for the quarter ended March
31, 2006, compared to $1.7 million for the first quarter of 2005,
an increase of 20%. On a per-share basis, the Company earned $0.27
per basic share and $0.26 per diluted share for 2006, as compared
to $0.23 per basic share and $0.22 cents per diluted share for
2005. Strong growth in both average loans and average deposits over
the past 12 months, coupled with a slight increase in the net
interest margin for the first quarter of 2006, as compared to 2005,
were the primary factors which contributed to the increase in first
quarter net income improvement. Average loans increased 27% in the
first quarter of 2006 as compared to the first quarter of 2005,
while average deposits increased 19% during the same period. The
net interest margin increased from 4.98% for the first quarter of
2005 to 5.01% for the first quarter of 2006, as the bank's
asset/liability position benefited from the continued increase in
market interest rates in the January to March 2006 period. The
Company reported an annualized return on average assets of 1.20%
for the first quarter of 2006, equal to the 1.20% for the first
quarter of 2005; while the annualized return on average equity
improved to 12.08%, as compared to 11.32% for the same quarter in
2005. Non-interest income for the first quarter of 2006 was $840
thousand compared to $1.0 million in the first quarter of 2005, for
an overall decline of 19%. The decline was attributed primarily to
lower amounts of gains on the sale of SBA loans which amounted to
$138 thousand in the first quarter of 2006 as compared to $385
thousand for the same period in 2005. Activity in SBA sales to
secondary markets can vary widely from quarter to quarter.
EagleBank has been recognized as the leading community bank SBA
lender in its marketplace and continued emphasis in this business
is anticipated. The decline in gains on the sale of SBA loans was
partially offset by an increase in deposit service charges, which
amounted to $324 thousand in the initial quarter of 2006, as
compared to $269 thousand for the same period in 2005, a 20%
increase. Non-interest expenses were $5.2 million for the first
quarter of 2006, as compared to $4.5 million for 2005, a 17%
increase. The primary reasons for this increase were increases in
staff levels and related personnel cost, director fees, costs
associated with stock options under new accounting expensing rules,
occupancy cost increases, and higher data processing, licensing,
and other professional fees associated with a larger organization.
The efficiency ratio, which is a measure of the level of
noninterest expenses to revenue, was only slightly higher in the
first quarter of 2006 at 60.14%, as compared to 59.56% for the same
period in 2005. The company emphasizes the efficiency ratio as a
measure of noninterest expense control. Asset quality remained
favorable in the quarter. The Company recorded net charge-offs of
just $14 thousand for the first quarter of 2006, or .01% of average
loans outstanding as compared to net recoveries of $6 thousand or
.01% of average loans for the first quarter of 2005. The ratio of
non-performing loans to total loans increased to 1.13% at March 31,
2006 as compared to .03% at March 31, 2005. The increase was due to
two large loans placed on non- accrual status in the first quarter
of 2006, which loans management has been monitoring closely,
believes are well secured and that no loss is anticipated. The
provision for credit losses was $115 thousand for the first quarter
in 2006 as compared to $417 thousand for 2005; the decrease
primarily due to a slower rate of loan growth in the first quarter
of 2006 as compared to 2005. At March 31, 2006, the allowance for
credit losses represented 1.10% of loans outstanding, as compared
to 1.07% at March 31, 2005. At March 31, 2006, total assets were
$694.6 million compared to $589.8 million at March 31, 2005, an 18%
increase. Total deposits amounted to $571.2 million, at March 31,
2006, also representing an 18% increase over deposits of $482.9
million at March 31, 2005, while total loans increased to $552.4
million at March 31, 2006, from $437.1 million at March 31, 2005, a
26% increase. Eagle Bancorp paid a regular quarterly cash dividend
of $.07 per share for both the first quarter of 2006 and 2005. The
Summary of Financial Information following provides more detail of
the Company's performance for the quarter ended March 31, 2006 as
compared to 2005. Persons wishing additional information should
refer to the Company's Form 10K filed with the Securities and
Exchange Commission on March 15, 2006. Eagle Bancorp is the holding
company for EagleBank and its subsidiary, Eagle Land Title, LLC.
EagleBank commenced operations in 1998. The Bank is headquartered
in Bethesda, Maryland, and conducts full service commercial banking
services thru eight offices, located in Montgomery County, Maryland
and Washington, D.C. A new community bank office to be located in
Chevy Chase, Maryland is planned to open in the second quarter of
2006. The Company focuses on building relationships with
businesses, professionals and individuals in its marketplace.
Non-GAAP Presentations. This press release refers to the efficiency
ratio which is computed by dividing noninterest expense by the sum
of net interest income on a tax equivalent basis and noninterest
income. This is a non-GAAP financial measure that we believe
provides investors with important information regarding our
operational efficiency. Comparison of our efficiency ratio with
those of other companies may not be possible because other
companies may calculate the efficiency ratio differently. The
Company, in referring to its net income, is referring to income
under accounting principles generally accepted in the United
States, or "GAAP". Forward looking Statements: This press release
contains forward looking statements within the meaning of the
Securities and Exchange Act of 1934, as amended, including
statements of goals, intentions, and expectations as to future
trends, plans, events or results of Company operations and policies
and regarding general economic conditions. In some cases,
forward-looking statements can be identified by use of words such
as "may," "will," "anticipates," "believes," "expects," "plans,"
"estimates," "potential," "continue," "should," and similar words
or phrases. These statements are based upon current and anticipated
economic conditions, nationally and in the Company's market,
interest rates and interest rate policy, competitive factors and
other conditions which by their nature, are not susceptible to
accurate forecast and are subject to significant uncertainty.
Because of these uncertainties and the assumptions on which this
discussion and the forward- looking statements are based, actual
future operations and results in the future may differ materially
from those indicated herein. Readers are cautioned against placing
undue reliance on any such forward-looking statements. The
Company's past results are not necessarily indicative of future
performance Eagle Bancorp, Inc Consolidated Statement of Condition
Highlights March 31, December 31, March 31, (in thousands) 2006
2005 2005 Unaudited Audited Unaudited Assets Cash and due from
banks $16,689 $16,662 $23,193 Interest bearing deposits with banks
and other short term investments 1,718 11,231 17,504 Federal funds
sold 31,630 6,103 26,064 Investment securities available for sale,
at fair value 69,954 68,050 65,449 Loans held for sale 3,010 2,924
3,671 Loans 552,375 549,212 437,117 Less: allowance for credit
losses (6,085) (5,985) (4,663) Premises and equipment, net 5,852
5,774 6,176 Accrued interest, taxes, and other assets 19,423 18,281
15,339 Total Assets $694,566 $672,252 $589,850 Liabilities and
Stockholders' Equity Noninterest bearing deposits $149,778 $165,103
$146,376 Interest bearing deposits 421,467 403,790 336,534 Total
deposits 571,245 568,893 482,910 Customer repurchase agreements and
federal funds purchased 31,549 32,139 39,498 Other short term
borrowings 20,000 - 5,333 Other liabilities 4,531 6,256 2,469 Total
liabilities 627,325 607,288 530,210 Stockholders' equity 67,241
64,964 59,640 Total Liabilities and Stockholders' Equity $694,566
$672,252 $589,850 Eagle Bancorp, Inc. Consolidated Statement of
Income Highlights (in thousands) Three Months Ended March 31, 2006
2005 (Unaudited) (Unaudited) Total interest income $11,224 $7,710
Total interest expense 3,380 1,235 Net interest income 7,844 6,475
Provision for credit losses 115 417 Noninterest income 840 1,039
Noninterest expense 5,223 4,475 Income before income tax expense
3,346 2,622 Income tax expense 1,363 969 Net income $1,983 $1,653
Per Share Data: Earnings per share, basic $0.27 $0.23 Earnings per
share, diluted $0.26 $0.22 Shares outstanding at period end
7,239,422 7,088,651 Weighted average shares outstanding, basic
7,214,188 7,078,451 Weighted average shares outstanding, diluted
7,533,458 7,494,133 Book value per share at period end $9.29 $8.41
Dividends per share $0.07 $0.07 Eagle Bancorp, Inc. Performance
Ratios (annualized): Return on average assets 1.20% 1.20% Return on
average equity 12.08% 11.32% Net interest margin 5.01% 4.98%
Efficiency ratio (1) 60.14% 59.56% Other Ratios: Allowance for
credit losses to total loans 1.10% 1.07% Nonperforming loans to
total loans 1.13% 0.03% Net charge-offs (annualized) to average
loans 0.01% -0.01% Average equity to average assets 9.93% 10.57%
Average Balances (in thousands): Total assets $670,664 $559,981
Total earning assets $634,471 $527,291 Total loans $545,594
$429,095 Total deposits $553,469 $463,304 Total borrowings $47,178
$34,510 Total stockholders' equity $66,627 $59,208 (1) computed by
dividing noninterest expense by the sum of net interest income and
noninterest income DATASOURCE: Eagle Bancorp, Inc. CONTACT: Ronald
D. Paul of Eagle Bancorp, Inc., +1-301-986-1800 Web site:
http://www.eaglebankmd.com/
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