Eagle Bancorp, Inc. Announces 42% Increase in Earnings for the
First Six Months of 2005 With Assets Exceeding $600 Million
BETHESDA, Md., July 18 /PRNewswire-FirstCall/ -- Eagle Bancorp,
Inc. (NASDAQ:EGBN), the parent company of EagleBank, today
announced net income of $3.2 million for the six months ended June
30, 2005, compared to $2.3 million for the first six months of
2004, an increase of 42%. On a per-share basis, the Company earned
$0.45 per basic share and $0.43 per diluted share for 2005, as
compared to $0.32 per basic share and $0.31 cents per diluted share
for 2004. For the second quarter of 2005, the Company earned $1.6
million ($0.22 per basic share and $0.21 per diluted share), as
compared to $1.1 million ($0.15 per basic share and diluted share)
for the second quarter of 2004, a 45% increase. "We are extremely
pleased to report continuing strong financial results for Eagle
Bancorp for the first half and second quarter of 2005," noted
Leonard L. Abel, Chairman of Eagle Bancorp, Inc. and Ronald D.
Paul, President and CEO of Eagle Bancorp, Inc. "Growth in both
deposits and loans and a favorable net interest margin comparison
continue to propel increases in revenues and net earnings. Asset
quality remains strong and the Company continues to make investment
in its infrastructure to support a growing organization, while
managing its overall costs as measured by the efficiency ratio."
For the six months ended June 30, 2005, the Company reported an
annualized return on average assets (ROAA) of 1.12% as compared to
0.99% for the first six months of 2004; while the annualized return
on average equity (ROAE) was 10.83%, as compared to 8.30% for the
same period in 2004. A number of factors contributed to the very
strong first six month results. Both lending and deposit activity
were strong in the period, and resulted in strong growth in net
interest income due to both increased volume, and an improved net
interest margin over the prior period. The Bank's asset/liability
management position has allowed it to benefit from the continued
increase in market interest rates in the January to June period.
For the first six months of 2005, the net interest margin was 4.99%
as compared to 4.23% for the first six months in 2004. Non-interest
income for the first six months of 2005 was $1.9 million compared
to $1.9 million in the first six months of 2004. Excluding
securities gains of $12 thousand during the first six months of
2005 and $253 thousand during the same period in 2004, noninterest
income increased 16%. This increase in noninterest income exclusive
of securities gains was due primarily to increased amounts of gains
on the sale of SBA loans, which increased to $517 thousand for the
first six months of 2005, as compared to $241 thousand in the first
six months of 2004. EagleBank is the leading community bank lender
in the Washington D.C. metropolitan area. Non-interest expenses
were $9.4 million for the first six months of 2005, as compared to
$7.1 million for 2004, a 31% increase. The primary reasons for this
increase were increases in staff levels, and related personnel cost
increases, higher incentive compensation, increased occupancy cost,
due in part to new banking offices, and higher marketing and data
processing costs associated with a larger organization. In spite of
higher levels of noninterest expenses, the very strong growth in
revenue allowed the efficiency ratio to improve for the first six
months of 2005 to 61.09% from 65.46% for the same period in 2004.
Asset quality remained favorable in the period. The Company
recorded net recoveries of $28 thousand for the first six months of
2005 as compared to net recoveries of $47 thousand for the first
six months of 2004. The ratio of non-performing loans to total
loans was .03% at June 30, 2005 as compared to .13% at June 30,
2004. The provision for loan loss was $887 thousand for the first
six months in 2005 as compared to $230 thousand for 2004; the
increase due substantially to growth in the portfolio. At June 30,
2005, the allowance for credit losses represented 1.07% of loans
outstanding, as compared to 1.13% at June 30, 2004. At June 30,
2005, total assets were $610.1 million compared to $494.0 million
at June 30, 2004, a 23% increase. Total deposits amounted to $516.4
million, at June 30, 2005, a 28% increase over deposits of $403.2
million at June 30, 2004, while total loans increased to $481.8
million at June 30, 2005, from $349.0 million at June 30, 2004, a
38% increase. Eagle Bancorp commenced a quarterly cash dividend of
$.07 per share in the first quarter of 2005, which was also paid
for the second quarter of 2005. 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, 2005 as compared to 2004. Persons wishing additional
information should refer to the Company's Form 10K filed with the
Securities and Exchange Commission on March 16, 2005. 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 lease has been
executed for a new community bank office in Chevy Chase, Maryland
which is expected to be opened in the first quarter of 2006. 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
Statement of Condition Highlights June 30, December 31, June 30,
(in thousands) 2005 2004 2004 Unaudited Audited Unaudited Assets
Cash and due from banks $24,577 $31,100 $31,180 Interest bearing
deposits with banks and other short term investments 10,689 9,594
5,936 Federal funds sold 2,002 15,035 23,980 Investment securities
available for sale, at fair value 71,035 64,098 63,922 Loans held
for sale 3,646 2,208 3,866 Loans 481,769 415,509 349,012 Less:
allowance for credit losses (5,155) (4,240) (3,957) Premises and
equipment, net 5,962 5,726 5,603 Accrued interest, taxes and other
assets 15,575 14,423 14,485 Total Assets $610,100 $553,453 $494,027
Liabilities and Stockholders' Equity Noninterest bearing deposits
$146,039 $130,309 $96,252 Interest bearing deposits 370,401 331,978
306,996 Total deposits 516,440 462,287 403,248 Federal funds
purchased and securities sold under repurchase agreements 26,352
23,983 21,906 Other borrowings 4,333 6,333 12,528 Other liabilities
1,920 2,316 1,623 Total liabilities 549,045 494,919 439,305
Stockholders' equity 61,055 58,534 54,722 Total Liabilities and
Stockholders' Equity $610,100 $553,453 $494,027 Eagle Bancorp, Inc.
Statements of Income Highlights (in thousands) Six Months Ended
Three Months Ended June 30, June 30, 2005 2004 2005 2004
(Unaudited)(Unaudited)(Unaudited)(Unaudited) Total interest income
$16,362 $10,989 $8,652 $5,613 Total interest expense 2,942 2,013
1,707 1,044 Net interest income 13,420 8,976 6,945 4,569 Provision
for credit losses 887 230 470 76 Noninterest income (before
investment gains) 1,913 1,654 874 825 Investment Gains 12 253 12 -
Noninterest expense 9,375 7,124 4,900 3,631 Income before income
tax expense 5,083 3,529 2,461 1,687 Income tax expense 1,874 1,277
905 614 Net income $3,209 $2,252 $1,556 $1,073 Per Share Data (1):
Earnings per share, basic $0.45 $0.32 $0.22 $0.15 Earnings per
share, diluted $0.43 $0.31 $0.21 $0.15 Shares outstanding at period
end 7,095,397 7,025,534 7,085,855 7,025,534 Weighted average shares
outstanding, basic 7,085,855 7,016,697 7,092,770 7,023,232 Weighted
average shares outstanding, diluted 7,514,477 7,274,391 7,533,336
7,315,565 Book value per share at period end $8.60 $7.79 (1) Prior
periods adjusted to give retroactive effect to the 1.3 to 1 stock
split in the form of a 30% stock dividend paid on February 25, 2005
Eagle Bancorp, Inc. Performance Ratios (annualized): Return on
average assets 1.12% 0.99% Return on average equity 10.83% 8.30%
Net interest margin 4.99% 4.23% Efficiency ratio (2) 61.09% 65.46%
Other Ratios: Allowance for credit losses to total loans 1.07%
1.13% Non performing loans to total loans 0.03% 0.13% Net
charge-offs (annualized) to average loans -0.01% -0.03% Average
equity to average assets 10.37% 11.89% Tier 1 leverage Ratio 10.61%
12.10% Total risk based capital ratio 12.46% 16.20% Average
Balances: Total assets $576,109 $456,495 Total earning assets
$542,780 $424,259 Total loans $443,235 $332,108 Total deposits
$479,639 $368,371 Total stockholders' equity $59,748 $54,297 (2)
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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