BETHESDA, Md., July 18 /PRNewswire-FirstCall/ -- Eagle Bancorp,
Inc. (the "Company") (NASDAQ:EGBN), the parent company of
EagleBank, today announced net income of $1.9 million ($0.19 per
basic share and per diluted share) for the three months ended June
30, 2008, compared to $2.0 million ($0.21 per basic share and $0.20
per diluted share) for the three months ended June 30, 2007. For
the six months ended June 30, 2008, the Company earned $3.5 million
($0.36 per basic share and $0.35 per diluted share), as compared to
$3.7 million ($0.38 per basic share and $0.37 cents per diluted
share) for 2007, a decline of 4%. "At a time of substantial stress
in our financial markets and instability in many banks, we are
extremely pleased to report consistent net income and continued
asset growth for Eagle Bancorp, Inc. for the second quarter of
2008. Both Eagle Bancorp and EagleBank remain well capitalized,"
noted Ronald D. Paul, Chairman and CEO of Eagle Bancorp, Inc. "In
spite of a continuing difficult interest rate environment, wherein
the Federal Reserve has lowered interest rates sharply to combat a
weakening economic situation, the Company improved an already
strong net interest margin and sustained a long-term trend of
growth in the balance sheet" added Mr. Paul. Growth in average
deposits, other funding sources and loans, along with a slight
expansion of the net interest margin were the major drivers of the
increase in net interest income for the three months ended June 30,
2008 as compared to the same three month period in 2007.
Additionally, the level of Eagle Bancorp's non-performing loans was
stable at June 30, 2008, as compared to March 31, 2008. For the
three months ended June 30, 2008, the Company reported an
annualized return on average assets (ROAA) of 0.84% as compared to
0.77% for the three months ended March 31, 2008 and 1.02% for the
three months ended June 30, 2007; while the annualized return on
average equity (ROAE) for the most recent quarter was 8.81%, as
compared to 7.98% for the three months ended March 31, 2008 and
10.50% for the three months ended June 30, 2007. The most
significant factors affecting these ratios have been changes in the
net interest margin and the contribution to the provision for
credit losses primarily as a result of loan growth. Both lending
and deposit activities showed growth for the three and six months
ended June 30, 2008 as compared to the same periods in 2007. For
the three months ended June 30, 2008, average loans increased 19%
and for the six months ended June 30, 2008, average loans increased
17%. For the three months ended June 30, 2008, average deposits
increased 9% and for the six months ended June 30, 2008, average
deposits increased 8%. Net interest income increased 13% for the
three months ended June 30, 2008 over 2007, as the effect of
favorable balance sheet growth was partially offset by a decline
(11 basis points) in the net interest margin. For the three months
ended June 30, 2008, the net interest margin was 4.34% as compared
to 4.45% for the three months ended June 30, 2007. The Company's
net interest margin remains favorable to peer banking companies.
The Company's net interest margin for the second quarter of 2008
improved by 15 basis points (to 4.34%) over the net interest margin
for the first quarter of 2008 of 4.19%, as the cost of funds was
managed aggressively. The provision for credit losses was $814
thousand for the three months ended June 30, 2008 as compared to
$36 thousand for the three months ended June 30, 2007. The higher
provisioning in the second quarter of 2008 as compared to the
second quarter of 2007 is primarily attributable to higher levels
of loan growth in the second quarter of 2008 versus 2007, increases
in specific reserves for problem and potential problem loans, and
higher levels of net charge-offs in the second quarter of 2008 as
compared to the second quarter of 2007. The provision for credit
losses was $1.5 million for the first six months of 2008 as
compared to $339 thousand in 2007. The higher provisioning in the
first six months of 2008 as compared to 2007 is attributable to
substantially higher levels of loan growth and to increases in
reserve allocations on classified credits. At June 30, 2008 the
allowance for credit losses represented 1.15% of loans outstanding,
unchanged from the allowance percentage at March 31, 2008. The
1.15% allowance represents an increase as compared to 1.12% at
December 31, 2007 and 1.11% at June 30, 2007. The higher allowance
percentage at June 30, 2008 as compared to December 31, 2007 and
June 30, 2007 relates primarily to changes in the portfolio mix and
higher reserve levels for problem loans and potential problem
loans. For the three months ended June 30, 2008, the Company
recorded net charge- offs of $393 thousand as compared to $11
thousand of net charge-offs for the three months ended June 30,
2007. Net charge-offs in the second quarter of 2008 were
attributable to charge-offs in consumer loans (38% of total), the
un-guaranteed portion of SBA Loans (32% of total), and non-real
estate commercial business loans (30% of total). For the six months
ended June 30, 2008 net charge-offs totaled $418 thousand versus
$424 thousand for the six months ended June 30, 2007. Net
charge-offs in the six months ended June 30, 2008 were attributable
to charge-offs in consumer loans (39 % of total), the un-guaranteed
portion of SBA Loans (32% of total), and non-real estate commercial
business loans (29% of total). The ratio of non-performing loans to
total loans improved slightly from 1.54% ($11.7 million) at March
31, 2008 to 1.45% ($11.6 million) at June 30, 2008, a decline of
$100 thousand. However, the ratio was elevated as compared to
December 31, 2007 of 0.74% ($5.3 million) and June 30, 2007 of
0.22% ($1.5 million). The increase in nonperforming loans at June
30, 2008 as compared December 31, 2007 relates primarily to two
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 these non performing commercial real estate-secured
loans. Noninterest income for the three months ended June 30, 2008
decreased to $970 thousand from $1.2 million for the three months
ended June 30, 2007, a 19% decline. This decline was due to a lower
volume of SBA and residential mortgage loan sales activity, which
activity is subject to significant quarterly variances and no
income from subordinate financing of real estate projects in 2008
versus $227 thousand in the prior year. 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 $6.5 million for the three months ended
June 30, 2008, as compared to $6.2 million for the three months
ended June 30, 2007, a 5% increase. The primary reasons for this
increase were merit increases and related personnel costs,
increased broker fees, higher internet and license agreement fees
and increased legal, accounting and professional fees. The
efficiency ratio, which measures the level of non-interest expense
to total revenue improved to 63.96% for the three months ended June
30, 2008, as compared to 66.33% for the three months ended June 30,
2007. While the Company continues to make strategic investments in
infrastructure, more attention to overall cost management is being
emphasized. For the six months ended June 30, 2008, the Company
reported an annualized return on average assets (ROAA) of 0.81% as
compared to 0.95% for the first six months of 2007, while the
annualized return on average equity (ROAE) was 8.40%, as compared
to 9.88% for the same six month period in 2007. Declines in these
ratios were due to lower net interest margins, which factor is
affecting all financial institutions, and to higher levels of loan
loss provisioning. For the first six months of 2008, net interest
income increased 10% over the same period for 2007. As noted above,
average loans increased 17% and average deposits increased by 8%.
The net interest margin was 4.26% as compared to 4.43% for the
first six months in 2007, as the effects of a steep decline in
market interest rates impacted the Company. However, as mentioned
above, the Company believes it has managed this 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 first six months of 2008 was $1.9 million compared
to $2.2 million in the first six months of 2007, a decrease of 13%.
The decrease was attributed primarily to lower amounts of gains on
the sale of SBA and residential mortgage loans ($279 thousand
versus $571 thousand) and no income from subordinate financing of
real estate projects in 2008 versus $227 thousand in the prior
year. Noninterest expenses were $12.7 million for the first six
months of 2008, as compared to $12.3 million for 2007, a modest 4%
increase. The primary reasons for this increase were merit
increases, and related personnel cost increases, increased broker
fees, higher internet and license agreement fees and increased
legal, accounting and professional fees. The efficiency ratio for
the first six months of 2008 improved to 64.50% as compared to
66.88% for the same period in 2007. At June 30, 2008, total assets
were $915.8 million compared to $813.0 million at June 30, 2007, a
13% increase. Total deposits amounted to $698.4 million, at June
30, 2008, a 7% increase over deposits of $650.5 million at June 30,
2007, while total loans increased to $795.1 million at June 30,
2008, from $659.2 million at June 30, 2007, a 21% increase. Total
borrowed funds, which include customer repurchase agreements,
increased to $127.7 million at June 30, 2008 from $82.6 million at
June 30, 2007, a 55% increase. This increase in part represents a
heavier reliance on borrowed funds to meet loan growth. The Company
paid a dividend of $0.06 per share for each of the first and second
quarters of 2008 and 2007. 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,
2008 as compared to the six and three months ended June 30, 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 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. In December 2007, the Company
announced the signing of a definitive agreement to acquire Fidelity
& Trust Financial Corporation, parent of Fidelity & Trust
Bank. At March 31, 2008, Fidelity & Trust Bank had $459 million
of assets. Fidelity & Trust Bank operates six locations, with
one in Northern Virginia, three in Montgomery County, Maryland and
two in the District of Columbia. The transaction is subject to
regulatory and shareholder approvals and the satisfaction of other
conditions, as set forth in the merger agreement. The transaction
is currently anticipated to be completed in the third quarter of
2008. 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. ADDITIONAL
INFORMATION ABOUT THE PROPOSED MERGER WITH FIDELITY & TRUST
Eagle Bancorp, Inc. will be filing a proxy statement/prospectus and
other relevant documents concerning the merger with the SEC. The
proxy statement/prospectus will be mailed to the shareholders of
Eagle Bancorp and Fidelity & Trust Financial Corporation.
Investors and security holders of Eagle Bancorp and Fidelity &
Trust Financial Corporation are urged to read the proxy
statement/prospectus, the documents incorporated by reference in
the proxy statement/prospectus, the other documents filed with the
SEC and the other relevant materials when they become available
because they will contain important information about Eagle
Bancorp, Fidelity & Trust Financial Corporation and the Merger
Agreement and the transactions contemplated by the Merger
Agreement. Investors will be able to obtain these documents free of
charge at the SEC's web site (http://www.sec.gov/). In addition,
documents filed with the SEC by Eagle Bancorp, Inc. will be
available free of charge from Eagle Bancorp's Investor Relations at
301/986-1800, or from Eagle Bancorp's website at
http://www.eaglebankmd.com/. The directors, executive officers, and
certain other members of management and employees of Eagle Bancorp
and its subsidiaries are participants in the solicitation of
proxies in favor of the issuance of shares pursuant to the merger
from the shareholders of Eagle Bancorp. Information about the
directors and executive officers of Eagle Bancorp is set forth in
Eagle Bancorp's proxy statement for the 2008 annual meeting of
shareholders filed with the SEC on March 31, 2008. Additional
information regarding the interests of such participants will be
included in the proxy statement/prospectus and the other relevant
documents filed with the SEC when they become available. Eagle
Bancorp, Inc. Statements of Financial Condition (in thousands) June
30, December 31, June 30, 2008 2007 2007 (Unaudited) (Audited)
(Unaudited) Assets Cash and due from banks $18,565 $15,408 $24,899
Interest bearing deposits with banks and other short term
investments 1,391 4,490 4,383 Federal funds sold 63 244 28,146
Investment securities available for sale, at fair value 79,585
87,117 72,449 Loans held for sale 1,484 2,177 2,854 Loans 795,102
716,677 659,233 Less: Allowance for credit losses (9,154) (8,037)
(7,288) Premises and equipment, net 6,561 6,701 7,158 Accrued
interest and other assets 22,203 21,623 21,182 Total Assets
$915,800 $846,400 $813,016 Liabilities and Stockholders' Equity
Noninterest bearing deposits $143,335 $142,477 $145,263 Interest
bearing transaction 55,017 54,090 52,895 Savings and money market
187,275 177,081 180,415 Time, $100,000 or more 171,127 173,586
155,316 Other time 141,687 83,702 116,603 Total deposits 698,441
630,936 650,492 Customer repurchase agreements and federal funds
purchased 46,129 76,408 40,589 Other borrowings 81,581 52,000
42,000 Other liabilities 5,436 5,890 3,926 Total liabilities
831,587 765,234 737,007 Stockholders' equity 84,213 81,166 76,009
Total Liabilities and Stockholders' Equity $915,800 $846,400
$813,016 Eagle Bancorp, Inc. Statements of Income and Highlights
(in thousands, except per share data) Six Months Ended Three Months
Ended June 30, June 30, 2008 2007 2008 2007 Income Statements
(Unaudited)(Unaudited)(Unaudited)(Unaudited) Total interest income
$28,009 $27,843 $13,995 $14,107 Total interest expense 10,167
11,676 4,753 5,909 Net interest income 17,842 16,167 9,242 8,198
Provision for credit losses 1,534 339 814 36 Net interest income
after provision for credit losses 16,308 15,828 8,428 8,162
Noninterest income (before investment gains) 1,900 2,187 970 1,196
Investment gains 10 7 - - Total noninterest income 1,910 2,194 970
1,196 Salaries and employee benefits 7,286 6,806 3,646 3,454
Premises and equipment expenses 2,183 2,463 1,103 1,255 Marketing
and advertising 195 222 114 131 Other expenses 3,076 2,789 1,669
1,391 Total noninterest expense 12,740 12,280 6,532 6,231 Income
before income tax expense 5,478 5,742 2,866 3,127 Income tax
expense 1,972 2,082 1,011 1,149 Net income $3,506 $3,660 $1,855
$1,978 Per Share Data: Earnings per weighted average share, basic
$0.36 $0.38 $0.19 $0.21 Earnings per weighted average share,
diluted $0.35 $0.37 $0.19 $0.20 Weighted average shares
outstanding, basic 9,807,371 9,510,788 9,833,506 9,532,765 Weighted
average shares outstanding, diluted 9,926,334 9,826,739 9,906,151
9,813,537 Actual shares outstanding 9,842,571 9,563,163 9,842,571
9,563,163 Book value per share at period end $8.56 $7.95 $8.56
$7.95 Dividend per share $0.12 $0.12 $0.06 $0.06 Performance Ratios
(annualized): Return on average assets 0.81% 0.95% 0.84% 1.02%
Return on average equity 8.40% 9.88% 8.81% 10.50% Net interest
margin 4.26% 4.43% 4.34% 4.45% Efficiency ratio (1) 64.50% 66.88%
63.96% 66.33% Other Ratios: Allowance for credit losses to total
loans 1.15% 1.11% 1.15% 1.11% Non-performing loans to total loans
1.45% 0.22% 1.45% 0.22% Net charge-offs (annualized) to average
loans 0.11% 0.13% 0.20% 0.01% Average equity to average assets
9.59% 9.65% 9.51% 9.70% Tier 1 leverage ratio 9.60% 9.85% 9.60%
9.85% Total risk based capital ratio 10.80% 11.87% 10.80% 11.87%
Average Balances (in thousands): Total assets $875,521 $774,688
$891,012 $778,454 Total earning assets $841,348 $735,531 $857,232
$738,501 Total loans (2) $750,768 $642,001 $770,034 $647,714 Total
deposits $669,128 $620,474 $683,151 $624,413 Total borrowings
$117,659 $75,758 $118,634 $74,948 Total stockholders' equity
$83,954 $74,724 $84,708 $75,549 (1) Computed by dividing
noninterest expense by the sum of net interest income and
noninterest income (2) 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
June 30, March 31, Dec. 31, Sept. 30, Income Statements 2008 2008
2007 2007 Total interest income $13,995 $14,014 $14,879 $14,355
Total interest expense 4,753 5,414 6,036 6,017 Net interest income
9,242 8,600 8,843 8,338 Provision for credit losses 814 720 883 421
Net interest income after provision for credit losses 8,428 7,880
7,960 7,917 Noninterest income (before investment gains) 970 930
1,961 1,032 Investment gains (losses) - 10 (1) - Total noninterest
income 970 940 1,960 1,032 Salaries and employee benefits 3,646
3,640 3,784 3,577 Premises and equipment expenses 1,103 1,080 1,180
1,186 Marketing and advertising 114 81 109 134 Other expenses 1,669
1,407 1,395 1,276 Total noninterest expense 6,532 6,208 6,468 6,173
Income before income tax expense 2,866 2,612 3,452 2,776 Income tax
expense 1,011 961 1,166 1,021 Net income $1,855 $1,651 $2,286
$1,755 Per Share Data: Earnings per weighted average share, basic
$0.19 $0.17 $0.24 $0.18 Earnings per weighted average share,
diluted $0.19 $0.17 $0.23 $0.18 Weighted average shares
outstanding, basic 9,833,506 9,781,237 9,689,422 9,580,790 Weighted
average shares outstanding, diluted 9,906,151 9,933,993 9,884,709
9,838,524 Actual shares outstanding 9,842,571 9,790,252 9,721,315
9,584,029 Book value per share at period end $8.56 $8.53 $8.35
$8.15 Dividend per share $0.06 $0.06 $0.06 $0.06 Performance Ratios
(annualized): Return on average assets 0.84% 0.77% 1.06% 0.88%
Return on average equity 8.81% 7.98% 11.33% 9.09% Net interest
margin 4.34% 4.19% 4.30% 4.34% Efficiency ratio (1) 63.96% 65.07%
59.87% 65.88% Other Ratios: Allowance for credit losses to total
loans 1.15% 1.15% 1.12% 1.09% Non-performing loans to total loans
1.45% 1.54% 0.74% 0.82% Net charge-offs (annualized) to average
loans 0.20% 0.01% 0.15% 0.18% Average equity to average assets
9.51% 9.67% 9.39% 9.69% Tier 1 leverage ratio 9.60% 9.55% 9.46%
9.78% Total risk based capital ratio 10.80% 10.95% 11.21% 11.90%
Average Balances (in thousands): Total assets $891,012 $860,030
$852,243 $799,382 Total earning assets $857,232 $825,463 $816,187
$761,646 Total loans (2) $770,034 $731,501 $687,030 $665,222 Total
deposits $683,151 $655,105 $659,355 $636,573 Total borrowings
$118,634 $116,684 $107,697 $80,952 Total stockholders' equity
$84,708 $83,200 $80,058 $77,468 Three Months Ended June 30, March
31, Dec. 31, Sept. 30, Income Statements 2007 2007 2006 2006 Total
interest income $14,107 $13,736 $13,848 $13,033 Total interest
expense 5,909 5,767 5,466 4,818 Net interest income 8,198 7,969
8,382 8,215 Provision for credit losses 36 303 327 711 Net interest
income after provision for credit losses 8,162 7,666 8,055 7,504
Noninterest income (before investment gains) 1,196 991 906 1,287
Investment gains (losses) - 7 39 (71) Total noninterest income
1,196 998 945 1,216 Salaries and employee benefits 3,454 3,352
3,177 3,104 Premises and equipment expenses 1,255 1,208 1,040 1,107
Marketing and advertising 131 91 221 102 Other expenses 1,391 1,398
1,305 1,383 Total noninterest expense 6,231 6,049 5,743 5,696
Income before income tax expense 3,127 2,615 3,257 3,024 Income tax
expense 1,149 933 1,105 1,124 Net income $1,978 $1,682 $2,152
$1,900 Per Share Data: Earnings per weighted average share, basic
$0.21 $0.18 $0.23 $0.20 Earnings per weighted average share,
diluted $0.20 $0.17 $0.22 $0.19 Weighted average shares
outstanding, basic 9,532,765 9,488,567 9,442,952 9,423,947 Weighted
average shares outstanding, diluted 9,813,537 9,816,711 9,842,928
9,869,514 Actual shares outstanding 9,563,163 9,509,622 9,478,064
9,425,733 Book value per share at period end $7.95 $7.83 $7.69
$7.49 Dividend per share $0.06 $0.06 $0.06 $0.06 Performance Ratios
(annualized): Return on average assets 1.02% 0.88% 1.13% 1.05%
Return on average equity 10.50% 9.23% 11.89% 10.84% Net interest
margin 4.45% 4.41% 4.63% 4.81% Efficiency ratio (1) 66.33% 67.44%
61.57% 60.40% Other Ratios: Allowance for credit losses to total
loans 1.11% 1.14% 1.18% 1.19% Non-performing loans to total loans
0.22% 0.25% 0.32% 0.34% Net charge-offs (annualized) to average
loans 0.01% 0.26% 0.00% (0.02%) Average equity to average assets
9.70% 9.59% 9.49% 9.69% Tier 1 leverage ratio 9.85% 9.70% 9.67%
9.89% Total risk based capital ratio 11.87% 12.00% 11.91% 12.13%
Average Balances (in thousands): Total assets $778,454 $770,880
$756,323 $717,481 Total earning assets $738,501 $732,529 $718,751
$678,225 Total loans (2) $647,714 $636,225 $606,934 $581,874 Total
deposits $624,413 $616,492 $616,929 $589,597 Total borrowings
$74,948 $76,577 $62,711 $53,837 Total stockholders' equity $75,549
$73,890 $71,784 $69,537 (1) Computed by dividing noninterest
expense by the sum of net interest income and noninterest income
(2) Includes loans held for sale DATASOURCE: Eagle Bancorp, Inc.
CONTACT: Ronald D. Paul of Eagle Bancorp, Inc., +1-301-986-1800 Web
site: http://www.eaglebankmd.com/
Copyright
Eagle Bancorp (NASDAQ:EGBN)
Historical Stock Chart
From Jun 2024 to Jul 2024
Eagle Bancorp (NASDAQ:EGBN)
Historical Stock Chart
From Jul 2023 to Jul 2024