BETHESDA, Md., July 17 /PRNewswire-FirstCall/ -- Eagle Bancorp,
Inc. (NASDAQ:EGBN), the parent company of EagleBank, today
announced net income of $4.0 million for the six months ended June
30, 2006, compared to $3.2 million for the first six months of
2005, an increase of 24%. On a per-share basis, the Company earned
$0.42 per basic share and $0.40 per diluted share for 2006, as
compared to $0.35 per basic share and $0.33 cents per diluted share
for 2005. Per share earnings have been adjusted for the 1.3 for 1
share stock split paid on July 5, 2006. (Logo:
http://www.newscom.com/cgi-bin/prnh/20050927/EAGLEBANKLOGO ) For
the second quarter of 2006, the Company earned $2.0 million ($0.21
per basic share and $0.20 per diluted share), as compared to $1.6
million ($0.17 per basic share and $0.16 per diluted share) for the
second quarter of 2005, a 28% increase. "We are pleased to report
continuing strong financial results for Eagle Bancorp for the first
half and second quarter of 2006," noted Ronald D. Paul, President
and CEO of Eagle Bancorp, Inc. "Growth in average deposits and
loans for the first six months of 2006 over 2005 continues to be
the driver of increases in revenues and net earnings. Asset quality
remains favorable and the Company continues to make investments in
personnel, facilities and systems to support a growing
organization, while managing its overall costs as measured by the
efficiency ratio." For the six months ended June 30, 2006, the
Company reported an annualized return on average assets (ROAA) of
1.17% as compared to 1.12% for the first six months of 2005; while
the annualized return on average equity (ROAE) was 11.91%, as
compared to 10.83% for the same period in 2005. Both lending and
deposit activity were strong in the period, and resulted in growth
in net interest income over the prior six-month and three-month
periods. The deposit base in the first six months of 2006 has
shifted to more interest bearing deposits resulting in higher
funding costs. However, the Bank's asset/liability management
position has allowed it to maintain a favorable net interest margin
as market interest rates have continued to increase in the January
to June period. For the first six months of 2006, net interest
income increased 18% over the same period for 2005 and for the
three months ended June 30, 2006 the net interest income increased
15% as compared to the second quarter of 2005. The net interest
margin was 4.91% as compared to 4.99% for the first six months in
2005 and was 4.82% for the second quarter of 2006. Noninterest
income for the first six months of 2006 was $1.7 million compared
to $1.9 million in the first six months of 2005, a decline of 13%.
Excluding securities gains of $156 thousand during the first six
months of 2006 and $12 thousand during the same period in 2005,
noninterest income declined by 20%. The decline was attributed
primarily to lower amounts of gains on the sale of SBA loans which
amounted to $169 thousand for the first six months in 2006 as
compared to $517 thousand for the same period in 2005. Activity in
SBA sales to secondary markets can vary widely from period to
period. EagleBank has been recognized as the leading community bank
SBA lender in its marketplace and continued emphasis in this
business is anticipated. Noninterest expenses were $10.4 million
for the first six months of 2006, as compared to $9.4 million for
2005, an 11% increase. The primary reasons for this increase were
increases in staff levels, and related personnel cost increases,
increased occupancy cost, due in part to new banking offices, and
higher marketing, data processing costs and professional fees
associated with a larger organization. In spite of higher levels of
noninterest expenses, strong growth in revenue allowed the
efficiency ratio to improve for the first six months of 2006 to
59.25% from 61.10% for the same period in 2005 and to 58.38% as
compared to 62.58% for the second quarter of 2006 and 2005. Despite
increases in net-charge offs, asset quality remained favorable in
the period. The Company recorded net charge-offs of $379 thousand
for the first six months of 2006 as compared to net recoveries of
$28 thousand for the first six months of 2005. The ratio of
nonperforming loans to total loans was .41% at June 30, 2006 as
compared to .03% at June 30, 2005. The provision for loan loss was
$707 thousand for the first six months of 2006 as compared to $887
thousand for 2005; the lesser amount due substantially to a lower
amount of growth in the portfolio in the first six months in 2006
as compared to 2005. At June 30, 2006, the allowance for credit
losses represented 1.10% of loans outstanding, as compared to 1.07%
at June 30, 2005. At June 30, 2006, total assets were $757.4
million compared to $610.1 million at June 30, 2005, a 24%
increase. Total deposits amounted to $623.7 million, at June 30,
2006, a 21% increase over deposits of $516.4 million at June 30,
2005, while total loans increased to $573.0 million at June 30,
2006, from $481.8 million at June 30, 2005, a 19% increase. Eagle
Bancorp paid a regular quarterly cash dividend in both the first
and second quarters of 2006 and declared a 30% stock dividend in
May 2006 which was paid on July 5, 2006. All per share amounts have
been adjusted to give effect to this stock split. The Summary of
Financial Information presented on the following pages provides
more detail of the Company's performance for the six and three
months ended June 30, 2006 as compared to 2005. Persons wishing
additional information should refer to the Company's Form 10K for
the year ended December 31, 2005 filed with the Securities and
Exchange Commission on March 16, 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 nine offices, located in Montgomery County, Maryland
and Washington, D.C. The Company focuses on building relationships
with businesses, professionals and individuals in its marketplace.
The Company announced in late June 2006, that it was forming Eagle
Commercial Ventures, LLC as a direct subsidiary to provide
subordinate financing for the acquisition, development and
construction of real estate projects, whose primary financing would
be done by EagleBank. 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. Statement of Condition Highlights
(in thousands) June 30, December 31, June 30, 2006 2005 2005
Unaudited Audited Unaudited Assets Cash and due from banks $21,735
$16,662 $24,577 Interest bearing deposits with other banks and
other short-term investments 807 11,231 10,689 Federal funds sold
45,654 6,103 2,002 Investment securities available for sale, at
fair value 90,556 68,050 71,035 Loans held for sale 4,526 2,924
3,646 Loans 573,028 549,212 481,769 Less: allowance for credit
losses (6,313) (5,985) (5,155) Loans, net 566,715 543,227 476,614
Premises and equipment, net 6,663 5,774 5,962 Accrued interest,
taxes and other assets 20,751 18,281 15,575 Total Assets $757,407
$672,252 $610,100 Liabilities and Stockholders' Equity Noninterest
bearing deposits $141,636 $165,103 $146,039 Interest bearing
deposits 482,097 403,790 370,401 Total deposits 623,733 568,893
516,440 Customer repurchase agreements and federal funds purchased
34,460 32,139 26,352 Other borrowings 25,000 - 4,333 Other
liabilities 5,737 6,256 1,920 Total liabilities 688,930 607,288
549,045 Stockholders' equity 68,477 64,964 61,055 Total Liabilities
and Stockholders' Equity $757,407 $672,252 $610,100 Eagle Bancorp,
Inc. Statements of Income Highlights (in thousands) Six Months
Ended Three Months Ended June 30, June 30, 2006 2005 2006 2005
(Unaudited)(Unaudited)(Unaudited)(Unaudited) Total interest income
$23,437 $16,362 $12,213 $8,652 Total interest expense 7,596 2,942
$4,216 1,707 Net interest income 15,841 13,420 $7,997 6,945
Provision for credit losses 707 887 $592 470 Net interest income
after provision for credit losses 15,134 12,533 7,405 6,475
Noninterest income (before investment gains) 1,529 1,914 $689 875
Investment Gains 156 12 $156 12 Total noninterest income 1,685
1,926 845 887 Salaries and employee benefits 5,949 5,234 $2,975
2,674 Premises and equipment expenses 1,688 1,617 $819 816
Advertising 264 207 $145 111 Outside data processing 436 385 $208
204 Other expenses 2,048 1,933 $1,015 1,096 Total noninterest
expense 10,385 9,376 $5,162 4,901 Income before income tax expense
6,434 5,083 $3,088 2,461 Income tax expense 2,461 1,874 $1,098 905
Net income $3,973 $3,209 $1,990 $1,556 Per Share Data: Earnings per
share, basic (1) $0.42 $0.35 $0.21 $0.17 Earnings per share,
diluted (1) $0.40 $0.33 $0.20 $0.16 Shares outstanding at period
end 7,248,594 7,095,397 7,248,594 7,085,855 Weighted average shares
outstanding, basic (1) 9,399,628 9,211,612 9,420,579 9,220,601
Weighted average shares outstanding, diluted (1) 9,821,666
9,768,820 9,847,644 9,793,337 Book value per share at period end
(1) $7.27 $6.62 $7.27 $6.62 (1) All periods adjusted to give
retroactive effect to the 1.3 to 1 stock split in the form of a 30%
stock dividend paid on July 5, 2006 Eagle Bancorp, Inc. Performance
Ratios (annualized): Return on average assets 1.17% 1.12% 1.13% n/a
Return on average equity 11.91% 10.83% 11.73% n/a Net interest
margin 4.91% 4.99% 4.82% n/a Efficiency ratio (2) 59.25% 61.10%
58.38% 62.58% Other Ratios: Allowance for credit losses to total
loans 1.10% 1.07% Nonperforming loans to total loans 0.41% 0.03%
Net charge-offs (annualized) to average loans 0.14% -0.01% 0.26%
n/a Average equity to average assets 9.79% 10.37% 9.67% n/a Tier 1
leverage ratio 11.10% 10.61% 11.10% 10.61% Total risk based capital
ratio 12.11% 12.46% 12.11% 12.46% Average Balances: Total assets
$687,284 $576,109 $703,889 n/a Total earning assets $650,106
$542,780 $665,569 n/a Total loans (3) $556,996 $446,026 $568,273
n/a Total deposits $567,688 $479,639 $581,751 n/a Total
stockholders' equity $67,257 $59,748 $68,049 n/a (2) Computed by
dividing noninterest expense by the sum of net interest income and
noninterest income (3) Includes loans held for sale
http://www.newscom.com/cgi-bin/prnh/20050927/EAGLEBANKLOGO
http://photoarchive.ap.org/ 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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