EGBN Eagle Bancorp Inc

BETHESDA, Md., Jan. 29 /PRNewswire-FirstCall/ -- Eagle Bancorp, Inc. (the "Company") (NASDAQ:EGBN), the parent company of EagleBank, today announced net income of $7.4 million ($0.63 per basic common share and $0.62 per diluted common share) for the year ended December 31, 2008 compared to $7.7 million ($0.73 per basic common share and $0.71 per diluted common share) for 2007, a 4% decline in net income. (Logo: http://www.newscom.com/cgi-bin/prnh/20050927/EAGLEBANKLOGO ) For the three months ended December 31, 2008, the Company earned $1.7 million ($0.12 per basic common share and $0.12 per diluted common share) compared to $2.3 million ($0.22 per basic common share and $0.21 per diluted common share) for the three months ended December 31, 2007. This decrease was due primarily to a non-recurring $1.0 million pre-tax amount recorded in the fourth quarter of 2007 from settlement of a subordinated financing transaction. Per share amounts and the number of outstanding shares have been adjusted to give effect to the 10% common stock dividend paid on October 1, 2008. "At a time of substantial stress in our financial markets and instability in many banks, we are extremely pleased to report positive earnings and continued asset and capital growth for the fourth quarter and full year 2008," noted Ronald D. Paul, Chairman and CEO of Eagle Bancorp, Inc. "In spite of a very difficult interest rate environment during 2008, wherein the Federal Reserve has lowered the targeted federal funds interest rate by 400 basis points to a record low level to combat a weakening economic situation, the Company maintained a net interest margin in excess of 4.00% for the twelve months ended December 31, 2008." A significant portion of the growth in the balance sheet in 2008 was the result of the consummation of the acquisition of Fidelity & Trust Financial Corporation ("Fidelity & Trust") on August 31, 2008. The acquisition added approximately $360 million in loans, $100 million in investments, $385 million in deposits, $70 million in customer repurchase agreements and other borrowings, and $13 million in equity capital, as of the date of consummation. The earnings of the Fidelity & Trust operations are included in the Company's results in 2008 for the four months ended December 31, 2008, the period subsequent to consummation. Growth in average loans, deposits and other funding sources were the major drivers of the increase in net interest income for the three months ended December 31, 2008 as compared to the same three month period in 2007. Growth in these areas was primarily a result of the acquisition, but also reflects a $100 million increase in loans during the fourth quarter. For the three months ended December 31, 2008, the Company reported an annualized return on average assets (ROAA) of 0.46% as compared to 1.06% for the three months ended December 31, 2007; while the annualized return on average common equity (ROAE) for the most recent quarter was 5.21%, as compared to 11.33% for the three months ended December 31, 2007. The most significant factors affecting these ratios have been a decline in the net interest margin, higher provisioning for credit losses, and a decrease in noninterest income due primarily to a non-recurring $1.0 million pre-tax amount recorded in the fourth quarter of 2007 from settlement of a subordinated financing transaction. Both lending and deposit activities showed growth in the fourth quarter of 2008 as compared to the same period in 2007, as average loans increased 77% and average deposits increased by 75%. For the twelve months ended December 31, 2008, average loans increased 38% and average deposits increased 32%. A significant portion of these increases was due to inclusion of the balances acquired in the Fidelity & Trust acquisition as of August 31, 2008. Net interest income increased 50% for the three months ended December 31, 2008 over 2007. The effect of favorable balance sheet growth was offset partially by a decline in the net interest margin of 56 basis points. For the three months ended December 31, 2008, the net interest margin was 3.74% as compared to 4.30% for the three months ended December 31, 2007. The Company's net interest margin remains favorable compared to peer banking companies. The Company's net interest margin for the fourth quarter of 2008 declined by 37 basis points (to 3.74%) from the net interest margin for the third quarter of 2008 of 4.11%, in part due to a lower net interest margin from the assets and liabilities acquired from Fidelity & Trust and in part due to the effect on the net interest margin of lower market interest rates over the past three months resulting from the reduction of the federal funds rate from 4.25% at December 31, 2007 to 2.00% at September 30, 2008 and .25% at December 31, 2008. The net interest margin is also being compressed by the cost of the additional capital the Company raised in the third quarter. On August 28, 2008 the Company sold an aggregate of $12.15 million of subordinated notes (the "Notes"). The Notes bear interest at a fixed rate of 10.0% per year. The Company recognized interest expense amounting to $310 thousand for the fourth quarter and $425 thousand for the year ended December 31, 2008. The provision for credit losses was $1.4 million for the fourth quarter of 2008 as compared to $883 thousand for the fourth quarter of 2007. The higher provisioning in the fourth quarter of 2008 as compared to the fourth quarter of 2007 is primarily attributable to higher levels of loan growth in the fourth quarter of 2008 versus 2007, risk migration within the portfolio, and increases in specific reserves for problem loans. The provision for credit losses was $4.0 million for the year ended December 31, 2008 as compared to $1.6 million in 2007. The higher provisioning in the year ended December 31, 2008 as compared to 2007 is attributable to substantially higher levels of loan growth, risk migration within the portfolio and increases in reserve allocations on classified loans. At December 31, 2008 the allowance for credit losses represented 1.45% of loans outstanding, as compared to 1.12% at December 31, 2007 and 1.46% at September 30, 2008. The higher allowance percentage at December 31, 2008 as compared to December 31, 2007 resulted primarily from the acquisition of the loan portfolio of Fidelity & Trust whose allowance for credit losses was approximately $7.5 million or 2.10% of loans outstanding at August 31, 2008. At December 31, 2008, the allowance represented 76% of non-performing loans. For the fourth quarter of 2008, the Company recorded net charge-offs of $166 thousand as compared to $250 thousand of net charge-offs for the fourth quarter of 2007. For the year ended December 31, 2008 net charge-offs totaled $1.1 million versus $1 million for the twelve months ended December 31, 2007. Net charge-offs in the twelve months ended December 31, 2008 were attributable to charge-offs in commercial construction and land development loans ($446 thousand), the un-guaranteed portion of SBA loans ($337 thousand), non-real estate commercial business loans ($100 thousand), consumer loans ($210 thousand), and commercial real estate investment property loans ($29 thousand). The ratio of non-performing loans to total loans increased from 1.79% ($21.0 million) at September 30, 2008 to 1.90% ($24.2 million) at December 31, 2008, an increase of $3.2 million. The ratio at December 31, 2008 was elevated as compared to December 31, 2007 of 0.74% ($5.3 million). A portion of the increase occurred in the third quarter of 2008 following the acquisition of Fidelity & Trust's impaired loans which were recorded at estimated fair value at the acquisition date in accordance with generally accepted accounting principles. The increase in non-performing loans at December 31, 2008 as compared to September 30, 2008 relates primarily to two specific commercial real estate loan relationships which have experienced delays and/or cost overruns in the construction and development processes. Management believes that the Company is adequately reserved for the identified risk inherent in the loan portfolio at December 31, 2008. Noninterest income for the fourth quarter of 2008 was $1.3 million as compared to $2.0 million for the three months ended December 31, 2007, a 36% decrease. This decrease was due primarily to a non-recurring $1.0 million recorded in the fourth quarter of 2007 from settlement of a subordinated financing transaction. Excluding this non-recurring transaction, noninterest income increased 30% over the same period in 2007, in part due to the Fidelity & Trust acquisition. Other major contributors were higher service charges on deposit accounts and loan fees, offset by a lower volume of SBA and residential mortgage loan sales activity which is subject to significant quarterly variances. Noninterest expenses were $10.5 million for the fourth quarter of 2008, as compared to $6.5 million for 2007, a 62% increase, in part due to the Fidelity & Trust acquisition consummated as of August 31, 2008. Other primary reasons for this increase were merit increases and related personnel costs, increased broker fees, higher internet and license agreement fees, increased legal, accounting and professional fees, including loan collection costs, and acquisition related expenses. In addition, higher costs were incurred in the fourth quarter for marketing, sponsorship, and professional services associated with the EagleBank Bowl, a new NCAA Bowl in 2008 played in Washington, D.C. on December 20th. The efficiency ratio, which measures the level of noninterest expense to total revenue, was 72.54% for the three months ended December 31, 2008, as compared to 59.87% for the three months ended December 31, 2007. For the year ended December 31, 2008, the Company reported ROAA of 0.69% as compared to 0.96% for the same period in 2007, while the ROAE was 8.05%, as compared to 10.03% for the same period in 2007. Declines in these ratios were due primarily to lower net interest margins and higher loan loss provisions, factors which are being experienced throughout the banking industry. For the year ended December 31, 2008, net interest income increased 26% over the year of 2007. As noted above, average loans increased 38% and average deposits increased by 32%, due in part to the Fidelity & Trust acquisition. The net interest margin for the year of 2008 was 4.05% as compared to 4.37% for 2007, as the effects of a steep decline in market interest rates impacted the Company. Additionally, a portion of the decline was due to lower margins on the assets and liabilities acquired from Fidelity & Trust. The Company believes it has managed the significant decline in market interest rates well and currently has a favorable net interest margin as compared to peer banking companies. Noninterest income for the full year of 2008 was $4.4 million compared to $5.2 million for the same period in 2007, a decrease of 16%. The decrease was attributed primarily to the $1.0 million of nonrecurring income in the fourth quarter of 2007 from the settlement of a subordinated financing transaction. Excluding this transaction, recurring non-interest income increased 10%, which includes the impact of the Fidelity & Trust acquisition. Other factors were higher service charges on deposit accounts of $919 thousand ($2.4 million in 2008 versus $1.5 million in 2007), and lower volume of SBA and residential mortgage loan sales activity ($426 thousand in 2008 versus $1.0 million in 2007). Noninterest expenses were $30.8 million for the full year of 2008, as compared to $24.9 million for 2007, a 24% increase, which includes the larger organization subsequent to the Fidelity & Trust acquisition. The other primary reasons for this increase were merit increases, higher personnel costs, increased broker fees, higher internet and license agreement fees, increased legal, accounting and professional fees, including loan collection costs, and acquisition related expenses. In addition, higher costs were incurred for marketing, sponsorship, and professional services associated with the EagleBank Bowl. The efficiency ratio for the year of 2008 was 66.49% as compared to 64.67% for 2007. By all regulatory measures, the Company and EagleBank were well capitalized at December 31, 2008. On December 5, 2008, the Company issued $38.235 million of preferred stock to the U.S. Treasury under the Capital Purchase Plan (commonly referred to as TARP) established under the Emergency Economic Stabilization Act of 2008. The preferred shares carry a cumulative annual dividend at a rate of 5% for five years and 9% thereafter. Additionally, the Company issued warrants to the U.S. Treasury for the purchase of 770,867 shares of the Company's common stock with an exercise price of $7.44 and a term of ten years. Considering the value ascribed to the warrants, the effective dividend rate on the preferred shares is 6.18%. The Company has utilized these capital funds towards the funding of $100 million in new loans in its portfolio in the fourth quarter of 2008. The Company expects to continue to grow its loan portfolio throughout 2009. At December 31, 2008, total assets were $1.50 billion compared to $846.4 million at December 31, 2007, a 77% increase. Total deposits amounted to $1.13 billion at December 31, 2008, a 79% increase over deposits of $630.9 million at December 31, 2007, while total loans increased to $1.27 billion at December 31, 2008, from $716.7 million at December 31, 2007, a 77% increase. Total borrowed funds, excluding customer repurchase agreements, increased to $122.1 million at December 31, 2008 from $52.0 million at December 31, 2007, a 135% increase. These increases in large part reflect the Fidelity & Trust acquisition. The increase in borrowed funds represents a heavier reliance on such funds to meet loan growth. The Company paid a cash dividend of $0.0545 per common share for each of the first and second quarters of 2008 and each quarter of 2007. In July 2008, the Company, in an action to conserve capital, discontinued the payment of its quarterly cash dividend. On October 1, 2008, the Company paid a 10% stock dividend on the common stock. The Summary of Financial Information which follows provides more detail of the Company's performance for the year and three months ended December 31, 2008 as compared to 2007, as well as providing eight quarters of trend data. Persons wishing additional information should refer to the Company's Form 10-K as amended, for the year ended December 31, 2007 as filed with the Securities and Exchange Commission (the "SEC"). The Company 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 thirteen offices, located in Montgomery County, Maryland, Washington, D.C. and Fairfax County, Virginia. A new office in Potomac, Maryland is planned to open in the fourth quarter of 2009. 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, the Company's ability to successfully integrate the operations of Fidelity & Trust 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. CONTACT: Ronald D. Paul 301.986.1800 Eagle Bancorp, Inc. Statements of Financial Condition (in thousands) December 31, September 30, December 31, 2008 2008 2007 (Unaudited) (Unaudited) (Audited) ----------- ----------- --------- Assets Cash and due from banks $27,157 $27,452 $15,408 Interest bearing deposits with banks and other short term investments 2,489 6,958 4,490 Federal funds sold 191 11,668 244 Investment securities available for sale, at fair value 169,079 213,915 87,117 Loans held for sale 2,718 2,844 2,177 Loans 1,271,026 1,170,583 716,677 Less: Allowance for credit losses (18,403) (17,119) (8,037) Premises and equipment, net 9,666 9,724 6,701 Accrued interest and other assets 32,532 31,520 21,623 ------ ------ ------ Total Assets $1,496,455 $1,457,545 $846,400 ========== ========== ======== Liabilities and Stockholders' Equity Noninterest bearing deposits $223,580 $214,160 $142,477 Interest bearing transaction 54,801 62,177 54,090 Savings and money market 271,791 281,215 177,081 Time, $100,000 or more 249,516 275,296 173,586 Other time 329,692 304,519 83,702 ------- ------- ------ Total deposits 1,129,379 1,137,367 630,936 Customer repurchase agreements and federal funds purchased 93,855 104,243 76,408 Other borrowings 122,097 91,150 52,000 Other liabilities 8,752 24,192 5,890 ----- ------ ----- Total liabilities 1,354,084 1,356,952 765,234 Total stockholders' equity (1) 142,371 100,593 81,166 ------- ------- ------ Total Liabilities and Stockholders' Equity $1,496,455 $1,457,545 $846,400 ========== ========== ======== (1) Includes, at December 31, 2008, $38.235 million in preferred stock issued on December 5, 2008 pursuant to the Capital Purchase Program Eagle Bancorp, Inc. Statements of Income and Highlights (in thousands, except per share data) Twelve Months Ended Three Months Ended December 31, December 31, ------------ ------------ 2008 2007 2008 2007 Income Statements (Unaudited) (Audited) (Unaudited) (Unaudited) ----------------- Total interest income $65,657 $57,077 $20,904 $14,879 Total interest expense 23,676 23,729 7,680 6,036 ------ ------ ----- ----- Net interest income 41,981 33,348 13,224 8,843 Provision for credit losses 3,979 1,643 1,450 883 ----- ----- ----- --- Net interest income after provision for credit losses 38,002 31,705 11,774 7,960 ------ ------ ------ ----- Noninterest income (before investment gains or losses) 4,364 5,180 1,314 1,961 Investment gains (losses) 2 6 (53) (1) -- -- --- -- Total noninterest income 4,366 5,186 1,261 1,960 ----- ----- ----- ----- Salaries and employee benefits 16,728 14,167 5,270 3,784 Premises and equipment expenses 5,424 4,829 1,861 1,180 Marketing and advertising 1,054 465 734 109 Other expenses 7,611 5,460 2,642 1,395 ----- ----- ----- ----- Total noninterest expense 30,817 24,921 10,507 6,468 ------ ------ ------ ----- Income before income tax expense 11,551 11,970 2,528 3,452 Income tax expense 4,123 4,269 867 1,166 ----- ----- --- ----- Net income $7,428 $7,701 $1,661 $2,286 ====== ====== ====== ====== Per Share Data (1): ------------------- Earnings per weighted average common share, basic (2) $0.63 $0.73 $0.12 $0.22 Earnings per weighted average common share, diluted (2) $0.62 $0.71 $0.12 $0.21 Weighted average common shares outstanding, basic 11,556,569 10,531,236 12,703,425 10,658,364 Weighted average common shares outstanding, diluted 11,682,059 10,849,975 12,777,262 10,873,180 Actual shares outstanding 12,714,355 10,693,447 12,714,355 10,693,447 Book value per common share at period end $8.19 $7.59 $8.19 $7.59 Dividend per common share $0.11 $0.22 $- $0.05 Performance Ratios (annualized): -------------------------------- Return on average assets 0.69% 0.96% 0.46% 1.06% Return on average common equity 8.05% 10.03% 5.21% 11.33% Net interest margin 4.05% 4.37% 3.74% 4.30% Efficiency ratio (3) 66.49% 64.67% 72.54% 59.87% Other Ratios: ------------- Allowance for credit losses to total loans 1.45% 1.12% 1.45% 1.12% Non-performing loans to total loans 1.90% 0.74% 1.90% 0.74% Net charge-offs (annualized) to average loans 0.12% 0.15% 0.05% 0.15% Average common equity to average assets 8.37% 9.59% 7.00% 9.39% Tier 1 leverage ratio 9.39% 9.46% 9.39% 9.46% Tier 1 risk based capital ratio 9.97% 10.20% 9.97% 10.20% Total risk based capital ratio 12.11% 11.21% 12.11% 11.21% Average Balances (in thousands): -------------------------------- Total assets $1,076,044 $800,437 $1,450,553 $852,243 Total earning assets $1,037,732 $762,628 $1,406,422 $816,187 Total loans (4) $911,329 $659,204 $1,218,067 $687,030 Total deposits $839,568 $634,332 $1,152,378 $659,355 Total borrowings $138,022 $85,118 $177,954 $107,697 Total stockholders' equity $92,892 $76,760 $113,245 $80,058 (1) Per share amounts and the number of outstanding shares have been adjusted to give effect to the 10% common stock dividend paid on October 1, 2008 (2) Earnings per weighted average common share, basic and diluted, for the three and twelve months ended December 31, 2008 was reduced by the accrued dividends of $177,000 on the preferred stock issued on December 5, 2008 pursuant to the Capital Purchase Program (3) Computed by dividing noninterest expense by the sum of net interest income and noninterest income (4) Includes loans held for sale Eagle Bancorp, Inc. Statements of Income and Highlights (Quarterly Trends) (in thousands, except per share data) (Unaudited) Three Months Ended -------------------------------------------- Dec. 31, Sept. 30, June 30, March 31, Income Statements 2008 2008 2008 2008 ----------------- Total interest income $20,904 $16,744 $13,995 $14,014 Total interest expense 7,680 5,829 4,753 5,414 ----- ----- ----- ----- Net interest income 13,224 10,915 9,242 8,600 Provision for credit losses 1,450 995 814 720 ----- --- --- --- Net interest income after provision for credit losses 11,774 9,920 8,428 7,880 ------ ----- ----- ----- Noninterest income (before investment gains or losses) 1,314 1,150 970 930 Investment gains (losses) (53) 45 - 10 --- -- --- -- Total noninterest income 1,261 1,195 970 940 ----- ----- --- --- Salaries and employee benefits 5,270 4,172 3,646 3,640 Premises and equipment expenses 1,861 1,380 1,103 1,080 Marketing and advertising 734 125 114 81 Other expenses 2,642 1,893 1,669 1,407 ----- ----- ----- ----- Total noninterest expense 10,507 7,570 6,532 6,208 ------ ----- ----- ----- Income before income tax expense 2,528 3,545 2,866 2,612 Income tax expense 867 1,284 1,011 961 --- ----- ----- --- Net income $1,661 $2,261 $1,855 $1,651 ====== ====== ====== ====== Per Share Data (1): ------------------- Earnings per weighted average common share, basic (2) $0.12 $0.20 $0.17 $0.15 Earnings per weighted average common share, diluted (2) $0.12 $0.19 $0.17 $0.15 Weighted average common shares outstanding, basic 12,703,425 11,482,401 10,816,857 10,759,361 Weighted average common shares outstanding, diluted 12,777,262 11,576,095 10,896,766 10,927,392 Actual shares outstanding 12,714,355 12,686,128 10,826,828 10,769,277 Book value per common share at period end $8.19 $7.93 $7.78 $7.76 Dividend per common share $- $- $0.05 $0.05 Performance Ratios (annualized): -------------------------------- Return on average assets 0.46% 0.82% 0.84% 0.77% Return on average common equity 5.21% 9.97% 8.81% 7.98% Net interest margin 3.74% 4.11% 4.34% 4.19% Efficiency ratio (3) 72.54% 62.51% 63.96% 65.07% Other Ratios: ------------- Allowance for credit losses to total loans 1.45% 1.46% 1.15% 1.15% Non-performing loans to total loans 1.90% 1.79% 1.45% 1.54% Net charge-offs (annualized) to average loans 0.05% 0.27% 0.20% 0.01% Average equity to average assets 7.00% 8.21% 9.51% 9.67% Tier 1 leverage ratio 9.39% 8.79% 9.43% 9.55% Tier 1 risk based capital ratio 9.97% 7.55% 9.74% 9.90% Total risk based capital ratio 12.11% 9.75% 10.80% 10.95% Average Balances (in thousands): -------------------------------- Total assets $1,450,553 $1,098,285 $891,012 $860,030 Total earning assets $1,406,422 $1,057,542 $857,232 $825,463 Total loans (4) $1,218,067 $922,224 $770,034 $731,501 Total deposits $1,152,378 $863,931 $683,151 $655,105 Total borrowings $177,954 $138,374 $118,634 $116,684 Total stockholders' equity $113,245 $90,223 $84,708 $83,200 Three Months Ended -------------------------------------------- Dec. 31, Sept. 30, June 30, March 31, Income Statements 2007 2007 2007 2007 ----------------- Total interest income $14,879 $14,355 $14,107 $13,736 Total interest expense 6,036 6,017 5,909 5,767 ----- ----- ----- ----- Net interest income 8,843 8,338 8,198 7,969 Provision for credit losses 883 421 36 303 --- --- -- --- Net interest income after provision for credit losses 7,960 7,917 8,162 7,666 ----- ----- ----- ----- Noninterest income (before investment gains or losses) 1,961 1,032 1,196 991 Investment gains (losses) (1) - - 7 -- --- --- - Total noninterest income 1,960 1,032 1,196 998 ----- ----- ----- --- Salaries and employee benefits 3,784 3,577 3,454 3,352 Premises and equipment expenses 1,180 1,186 1,255 1,208 Marketing and advertising 109 134 131 91 Other expenses 1,395 1,276 1,391 1,398 ----- ----- ----- ----- Total noninterest expense 6,468 6,173 6,231 6,049 ----- ----- ----- ----- Income before income tax expense 3,452 2,776 3,127 2,615 Income tax expense 1,166 1,021 1,149 933 ----- ----- ----- --- Net income $2,286 $1,755 $1,978 $1,682 ====== ====== ====== ====== Per Share Data (1): ------------------- Earnings per weighted average common share, basic (2) $0.22 $0.16 $0.19 $0.16 Earnings per weighted average common share, diluted (2) $0.21 $0.16 $0.18 $0.15 Weighted average common shares outstanding, basic 10,658,364 10,538,869 10,486,041 10,437,424 Weighted average common shares outstanding, diluted 10,873,180 10,822,376 10,794,891 10,798,382 Actual shares outstanding 10,693,447 10,542,432 10,519,479 10,460,584 Book value per common share at period end $7.59 $7.40 $7.23 $7.12 Dividend per common share $0.05 $0.05 $0.05 $0.05 Performance Ratios (annualized): -------------------------------- Return on average assets 1.06% 0.88% 1.02% 0.88% Return on average common equity 11.33% 9.09% 10.50% 9.23% Net interest margin 4.30% 4.34% 4.45% 4.41% Efficiency ratio (3) 59.87% 65.88% 66.33% 67.44% Other Ratios: ------------- Allowance for credit losses to total loans 1.12% 1.09% 1.11% 1.14% Non-performing loans to total loans 0.74% 0.82% 0.22% 0.25% Net charge-offs (annualized) to average loans 0.15% 0.18% 0.01% 0.26% Average equity to average assets 9.39% 9.69% 9.70% 9.59% Tier 1 leverage ratio 9.46% 9.78% 9.85% 9.70% Tier 1 risk based capital ratio 10.20% 10.87% 10.84% 11.00% Total risk based capital ratio 11.21% 11.90% 11.87% 12.00% Average Balances (in thousands): -------------------------------- Total assets $852,243 $799,242 $778,454 $770,880 Total earning assets $816,187 $761,378 $738,501 $732,529 Total loans (4) $687,030 $665,222 $647,714 $636,225 Total deposits $659,355 $636,573 $624,413 $616,492 Total borrowings $107,697 $80,951 $74,948 $76,577 Total stockholders' equity $80,058 $77,469 $75,549 $73,890 (1) Per share amounts and the number of outstanding shares have been adjusted to give effect to the 10% common stock dividend paid on October 1, 2008 (2) Earnings per weighted average common share, basic and diluted, for the three months ended December 31, 2008 was reduced by the accrued dividends of $177,000 on the preferred stock issued on December 5, 2008 pursuant to the Capital Purchase Program (3) Computed by dividing noninterest expense by the sum of net interest income and noninterest income (4) 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, +1-301-986-1800 Web Site: http://www.eaglebankmd.com/

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