BETHESDA, Md., Oct. 18 /PRNewswire-FirstCall/ -- Eagle Bancorp,
Inc. (NASDAQ:EGBN), the parent company of EagleBank, today
announced net income of $1.8 million ($0.18 per basic share and
$0.18 per diluted share) for the three months ended September 30,
2007, compared to $1.9 million ($0.20 per basic share and $0.19 per
diluted share) for the third quarter of 2006. (Logo:
http://www.newscom.com/cgi-bin/prnh/20050927/EAGLEBANKLOGO ) For
the nine months ended September 30, 2007, the Company earned $5.4
million ($0.57 per basic share and $0.55 per diluted share), as
compared to $5.9 million ($0.62 per basic share and $0.60 cents per
diluted share) for 2006, a decline of 8%. Per share earnings for
2006 have been adjusted for the 1.3 for 1 share stock split paid on
July 5, 2006. "Given the challenging interest rate and economic
environment, we are pleased to report solid financial results for
Eagle Bancorp, Inc. for the third quarter and first nine months of
2007" noted Ronald D. Paul, President and CEO of Eagle Bancorp,
Inc. "In spite of a continuing difficult interest rate environment,
the Company achieved a strong net interest margin for the third
quarter of 2007, sustained a long-term trend of growth in the
balance sheet and maintained solid profitability," added Mr. Paul.
Growth in average deposits and loans for the third quarter of 2007,
as compared to 2006, were the drivers of increases in net interest
income. Asset quality remains sound, not withstanding the
identification of weakness in one well secured credit relationship,
resulting in an increase in non performing loans in the quarter.
The Company continues to make investments in additional personnel
toward building more sales capabilities and supporting a growing
organization. For the three months ended September 30, 2007, the
Company reported an annualized return on average assets (ROAA) of
.88% as compared to 1.05% for the third quarter of 2006; while the
annualized return on average equity (ROAE) was 9.09%, as compared
to 10.84% for the same period in 2006, the lower ratios due in
large part to a decline in the net interest margin in the past
twelve months. Both lending and deposit activities showed growth in
the third quarter of 2007 as compared to the same period in 2006.
Average loans increased 14% and average deposits increased by 8%.
Net interest income increased 1% for the third quarter of 2007 over
2006, as the effect of favorable growth mentioned above, was offset
to a large extent by declines in the net interest margin. For the
three months ended September 30, 2007 the net interest margin was
4.39% as compared to 4.81% for the third quarter of 2006. This
margin compression is a challenge that is facing the banking
industry in general. Eagle Bancorp Inc's., net interest margin
remains favorable to peer banking companies. Noninterest income for
the third quarter of 2007 declined 15% from the third quarter of
2006. Excluding securities losses of $71 thousand during the third
quarter of 2006, noninterest income decreased by 20%. The decrease
was attributed primarily to lower amounts of gains on the sale of
SBA loans ($131 thousand versus $520 thousand). Noninterest
expenses were $6.2 million for the third quarter of 2007, as
compared to $5.7 million for 2006, an 8% increase. The primary
reasons for this increase were increases in staff levels, and
related personnel cost, occupancy cost (due in part to a new
banking office and an expanded lending center facility), higher
software licensing costs and fees associated with a reinstated FDIC
deposit insurance assessment. The efficiency ratio was 65.88% for
the third quarter of 2007, as compared to 60.40% for the third
quarter of 2006. For the third quarter of 2007, the Company
recorded net charge-offs of $304 thousand, as compared to $22
thousand of net recoveries for the third quarter of 2006. The
largest portion of the charge-offs in the third quarter of 2007
($250 thousand) related to a problem loan identified several
quarters ago for which specific reserves had been established. The
ratio of non- performing loans to total loans was 0.82% at
September 30, 2007, as compared to 0.22% at June 30, 2007 and 0.34%
at September 30, 2006. The increase in non-performing loans at
September 30, 2007 as compared to June 30, 2007 relates primarily
to two commercial real estate loans to one related borrower
amounting to $4.0 million which were placed on non-accrual in
September 2007. Management believes the loans are well secured and
no loss is anticipated. The provision for credit losses was $421
thousand for the third quarter of 2007 as compared to $711 thousand
for 2006. At September 30, 2007, the allowance for credit losses
represented 1.09% of loans outstanding, as compared to 1.11% at
June 30, 2007 and 1.19% at September 30, 2006, the lower allowance
percentage at September 30, 2007 primarily reflected a reduction in
special reserves due to the partial charge-off of one previously
provisioned problem loan relationship. For the nine months ended
September 30, 2007, the Company reported an annualized return on
average assets (ROAA) of 0.92% as compared to 1.13% for the first
nine months of 2006, while the annualized return on average equity
(ROAE) was 9.57%, as compared to 11.54% for the same nine month
period in 2006. For the first nine months of 2007, net interest
income increased 2% over the same period for 2006. Average loans
increased 16% and average deposits increased by 9%. The net
interest margin was 4.40% as compared to 4.88% for the first nine
months in 2006, as the effects of a flatter yield curve and
reliance on more expensive sources of funds has increased interest
expenses at a faster rate than increases in interest income.
Noninterest income for the first nine months of 2007 was $3.2
million compared to $2.9 million in the first nine months of 2006,
an increase of 11%. Excluding securities gains of $7 thousand
during the first nine months of 2007 and $85 thousand during the
same period in 2006, noninterest income increased by 14% for the
first nine months of 2007 as compared to the same period in 2006.
The increase was attributed primarily to higher amounts of gains on
the sale of residential mortgage loans ($336 thousand versus $170
thousand), higher deposit activity fees ($1.1 million versus $1.0
million) and income from subordinate financing of real estate
projects ($251 thousand versus $0). Income from subordinated
financing activities is subject to wide variances, as it is based
on the sales progress of a limited number of development projects.
Noninterest expenses were $18.5 million for the first nine months
of 2007, as compared to $16.1 million for 2006, a 15% increase. The
primary reasons for this increase were increases in staff levels,
and related personnel cost increases, increased occupancy cost as
mentioned above, higher software licensing costs and fees
associated with a reinstated FDIC deposit insurance assessment. The
efficiency ratio for the first nine months of 2007 was 66.54% as
compared to 59.65% for the same period in 2006. The provision for
loan losses was $760 thousand for the first nine months of 2007 as
compared to $1.4 million in 2006. For the first nine months of
2007, the Company recorded net charge-offs of $727 thousand, as
compared to $356 thousand for the same period in 2006. The higher
provision in 2006 reflected increased reserves for identified
problem loans. At September 30, 2007, total assets were $802.1
million compared to $727.4 million at September 30, 2006, a 10%
increase. Total deposits amounted to $615.2 million, at September
30, 2007, a 5% increase over deposits of $588.2 million at
September 30, 2006, while total loans increased to $679.5 million
at September 30, 2007, from $591.2 million at September 30, 2006, a
15% increase. Eagle Bancorp, Inc. paid a regular quarterly cash
dividend of $0.06 per share in the first, second and third quarters
of 2007. The Summary of Financial Information presented on the
following pages provides more detail of the Company's performance
for the three and nine months ended September 30, 2007 as compared
to 2006, as well as providing seven quarters of trend data. Persons
wishing additional information should refer to the Company's Form
10K for the year ended December 31, 2006 filed with the Securities
and Exchange Commission on March 13, 2007. Eagle Bancorp, Inc. is
the holding company for EagleBank which commenced operations in
1998. The Bank is headquartered in Bethesda, Maryland, and conducts
full service commercial banking services through 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. 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.
CONTACT: Ronald D. Paul 301.986.1800 Eagle Bancorp, Inc. Statements
of Condition Highlights (in thousands) Sept. 30, Dec. 31, Sept. 30,
2007 2006 2006 (Unaudited) (Audited) (Unaudited) Assets Cash and
due from banks $16,595 $19,250 $18,989 Interest bearing deposits
with banks and other short term investments 4,580 4,855 3,833
Federal funds sold 1,085 9,727 3,953 Investment securities
available for sale, at fair value 77,351 91,140 79,638 Loans held
for sale 1,471 2,157 5,825 Loans 679,467 625,773 591,232 Less:
Allowance for credit losses (7,406) (7,373) (7,046) Premises and
equipment, net 6,950 6,954 7,122 Accrued interest, taxes, and other
assets 22,036 20,968 23,821 Total Assets $802,129 $773,451 $727,367
Liabilities and Stockholders' Equity Noninterest bearing deposits
$127,084 $139,917 $143,963 Interest bearing transaction 49,863
66,596 60,318 Savings and money market 161,744 159,778 146,829
Time, $100,000 or more 169,944 158,495 162,397 Other time 106,586
103,729 74,680 Total deposits 615,221 628,515 588,187 Customer
repurchase agreements and federal funds purchased 49,744 38,064
35,974 Other borrowings 52,000 30,000 25,000 Other liabilities
7,098 3,956 7,639 Total liabilities 724,063 700,535 656,800
Stockholders' equity 78,066 72,916 70,567 Total Liabilities and
Stockholders' Equity $802,129 $773,451 $727,367 Eagle Bancorp, Inc.
Statements of Income Highlights (in thousands, except per share
data) Nine Months Ended Three Months Ended September 30, September
30, 2007 2006 2007 2006 (Unaudited) (Unaudited) (Unaudited)
(Unaudited) Total interest income $42,198 $36,470 $14,355 $13,033
Total interest expense 17,693 12,414 6,017 4,818 Net interest
income 24,505 24,056 8,338 8,215 Provision for credit losses 760
1,418 421 711 Net interest income after provision for credit losses
23,745 22,638 7,917 7,504 Noninterest income (before investment
gains) 3,219 2,816 1,032 1,287 Investment gains (losses) 7 85 -
(71) Total noninterest income 3,226 2,901 1,032 1,216 Salaries and
employee benefits 10,383 9,053 3,577 3,104 Premises and equipment
expenses 3,649 2,795 1,186 1,107 Marketing and advertising 356 366
134 102 Outside data processing 647 655 202 219 Other expenses
3,418 3,212 1,074 1,164 Total noninterest expense 18,453 16,081
6,173 5,696 Income before income tax expense 8,518 9,458 2,776
3,024 Income tax expense 3,103 3,585 1,021 1,124 Net income $5,415
$5,873 $1,755 $1,900 Per Share Data (1): Earnings per share, basic
$0.57 $ 0.62 $ 0.18 $ 0.20 Earnings per share, diluted $0.55 $ 0.60
$ 0.18 $ 0.19 Weighted average shares outstanding, basic 9,534,401
9,423,239 9,580,790 9,423,947 Weighted average shares outstanding,
diluted 9,855,010 9,853,794 9,838,524 9,869,514 Book value per
share at period end $8.15 $ 7.49 $ 8.15 $ 7.49 Dividend per share
$0.18 $ 0.17 $ 0.06 $ 0.06 Performance Ratios (annualized): Return
on average assets 0.92% 1.13% 0.88% 1.05% Return on average equity
9.57% 11.54% 9.09% 10.84% Net interest margin 4.40% 4.88% 4.34%
4.81% Efficiency ratio (2) 66.54% 59.65% 65.88% 60.40% Other
Ratios: Allowance for credit losses to total loans 1.09% 1.19%
1.09% 1.19% Non-performing loans to total loans 0.82% 0.34% 0.82%
0.34% Net charge-offs (annualized) to average loans 0.15% 0.08%
0.18% (0.02%) Average equity to average assets 9.66% 9.75% 9.69%
9.69% Tier 1 leverage ratio 9.78% 11.04% 9.78% 11.03% Total risk
based capital ratio 11.93% 12.13% 11.93% 12.12% Average Balances
(in thousands): Total assets $782,979 $697,549 $799,382 $717,481
Total earning assets $744,579 $659,582 $761,646 $678,225 Total
loans (3) $649,826 $565,380 $665,222 $581,874 Total deposits
$625,899 $575,071 $636,573 $589,597 Total borrowings $77,508
$47,987 $80,952 $53,837 Total stockholders' equity $75,649 $68,026
$77,468 $69,537 (1) All periods adjusted to give retroactive effect
to the 1.3 to 1 stock split in the form of a 30% stock FMS-3202-72
9999 dividend for averages paid on July 5, 2006 (2) Computed by
dividing noninterest expense by the sum of net interest income and
noninterest income (3) Includes loans held for sale Eagle Bancorp,
Inc. Statements of Income Highlights - Quarterly Trends (in
thousands, except per share data) Three Months Ended Sept. 30, June
30, March 31, Dec. 31, 2007 2007 2007 2006
(Unaudited)(Unaudited)(Unaudited)(Unaudited) Total interest income
$14,355 $14,107 $13,736 $13,848 Total interest expense 6,017 5,909
5,767 5,466 Net interest income 8,338 8,198 7,969 8,382 Provision
for credit losses 421 36 303 327 Net interest income after
provision for credit losses 7,917 8,162 7,666 8,055 Noninterest
income (before investment gains) 1,032 1,196 991 906 Investment
gains (losses) - - 7 39 Total noninterest income 1,032 1,196 998
945 Salaries and employee benefits 3,577 3,454 3,352 3,177 Premises
and equipment expenses 1,186 1,255 1,208 1,040 Marketing and
advertising 134 131 91 221 Outside data processing 202 183 262 226
Other expenses 1,074 1,208 1,136 1,079 Total noninterest expense
6,173 6,231 6,049 5,743 Income before income tax expense 2,776
3,127 2,615 3,257 Income tax expense 1,021 1,149 933 1,105 Net
income $1,755 $1,978 $1,682 $2,152 Per Share Data (1): Earnings per
share, basic $0.18 $0.21 $0.18 $0.23 Earnings per share, diluted
$0.18 $0.20 $0.17 $0.22 Weighted average shares outstanding, basic
9,580,790 9,532,765 9,488,567 9,442,952 Weighted average shares
outstanding, diluted 9,838,524 9,813,537 9,816,711 9,842,928 Book
value per share at period end $8.15 $7.95 $7.83 $7.69 Dividend per
share $0.06 $0.06 $0.06 $0.06 Performance Ratios (annualized):
Return on average assets 0.88% 1.02% 0.88% 1.13% Return on average
equity 9.09% 10.50% 9.23% 11.89% Net interest margin 4.34% 4.45%
4.41% 4.63% Efficiency ratio (2) 65.88% 66.33% 67.44% 61.57% Other
Ratios: Allowance for credit losses to total loans 1.09% 1.11%
1.14% 1.18% Non-performing loans to total loans 0.82% 0.22% 0.25%
0.32% Net charge-offs (annualized) to average loans 0.18% 0.01%
0.26% 0.00% Average equity to average assets 9.69% 9.70% 9.59%
9.49% Tier 1 leverage ratio 9.78% 9.84% 9.68% 9.67% Total risk
based capital ratio 11.93% 11.85% 12.03% 11.91% Average Balances
(in thousands): Total assets $799,382 $778,454 $770,880 $756,323
Total earning assets $761,646 $738,501 $732,529 $718,751 Total
loans (3) $665,222 $647,714 $636,225 $606,934 Total deposits
$636,573 $624,413 $616,492 $616,929 Total borrowings $80,952
$74,948 $76,577 $62,711 Total stockholders' equity $77,468 $75,549
$73,890 $71,784 Three Months Ended Sept. 30, June 30, March 31,
2006 2006 2006 (Unaudited) (Unaudited) (Unaudited) Total interest
income $13,033 $12,213 $11,224 Total interest expense 4,818 4,216
3,380 Net interest income 8,215 7,997 7,844 Provision for credit
losses 711 592 115 Net interest income after provision for credit
losses 7,504 7,405 7,729 Noninterest income (before investment
gains) 1,287 689 840 Investment gains (losses) (71) 156 - Total
noninterest income 1,216 845 840 Salaries and employee benefits
3,104 2,975 2,974 Premises and equipment expenses 1,107 819 869
Marketing and advertising 102 145 119 Outside data processing 219
208 228 Other expenses 1,164 1,015 1,033 Total noninterest expense
5,696 5,162 5,223 Income before income tax expense 3,024 3,088
3,346 Income tax expense 1,124 1,098 1,363 Net income $1,900 $1,990
$1,983 Per Share Data (1): Earnings per share, basic $0.20 $0.21
$0.21 Earnings per share, diluted $0.19 $0.20 $0.20 Weighted
average shares outstanding, basic 9,423,947 9,420,579 9,378,444
Weighted average shares outstanding, diluted 9,869,514 9,847,644
9,793,495 Book value per share at period end $7.49 $7.27 $7.14
Dividend per share $0.06 $0.05 $0.05 Performance Ratios
(annualized): Return on average assets 1.05% 1.13% 1.20% Return on
average equity 10.84% 11.73% 12.08% Net interest margin 4.81% 4.82%
5.01% Efficiency ratio (2) 60.40% 58.38% 60.14% Other Ratios:
Allowance for credit losses to total loans 1.19% 1.10% 1.10%
Non-performing loans to total loans 0.34% 0.41% 1.13% Net
charge-offs (annualized) to average loans (0.02%) 0.26% 0.01%
Average equity to average assets 9.69% 9.67% 9.93% Tier 1 leverage
ratio 11.03% 11.10% 10.12% Total risk based capital ratio 12.12%
12.11% 12.42% Average Balances (in thousands): Total assets
$717,481 $703,889 $670,664 Total earning assets $678,225 $665,569
$634,471 Total loans (3) $581,874 $568,273 $545,594 Total deposits
$589,597 $581,751 $553,469 Total borrowings $53,837 $49,849 $47,178
Total stockholders' equity $69,537 $68,049 $66,627 (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 (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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