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Eagle Bancorp Announces Quarterly Earnings and Declares Quarterly Cash Dividend

(January 21, 2010)

HELENA, Mont., Jan. 21, 2010 (GLOBE NEWSWIRE) -- Eagle Bancorp (“Eagle”) (OTCBB:EBMT), the stock holding company of American Federal Savings Bank (the “Bank”), reported net income of $553,000, or $0.52 per share ($0.45 per share diluted), for the three months ended December 31, 2009, and declared a cash dividend of $0.26 per share. Earnings for the quarter increased by 5.53% from the $524,000 earned for the quarter ended December 31, 2008. Earnings for the six month period ended December 31, 2009 were $1.397 million, or $1.30 per share ($1.14 per share diluted), an increase of $973,000, compared to $424,000 for the six month period ended December 31, 2008, during which losses attributable to significant declines in Fannie Mae and Freddie Mac preferred stock were recognized.



 “We are pleased with our performance for the second quarter including strong deposit growth. Our net interest income continues to grow, while asset quality remains strong.” said CEO Pete Johnson.



The increase in net income for the second quarter was the result of an increase in net interest income of $77,000, and an increase in noninterest income of $493,000. Those increases were partially offset by increases in noninterest expense of $429,000 and loan loss provision of $73,000. Eagle’s tax provision was $39,000 higher in the current quarter.


Noninterest income increased due to increases in gains on sale of loans compared to the prior year’s period. Net gain on sale of loans increased by $111,000 to $349,000 for the quarter ended December 31, 2009 from $238,000 for the quarter ended December 31, 2008. Also, mortgage loan servicing fees increased by $281,000 to $198,000. This increase is primarily due to a provision against the valuation of mortgage servicing rights of $239,000 in the quarter ended December 31, 2008.




Eagle’s annualized return on assets was 0.73% and its annualized return on equity was 7.29% for the quarter, compared with 0.73% and 8.54%, respectively, for the same quarter in 2008. 



Total interest and dividend income decreased by $145,000 to $3.80 million for the quarter ended December 31, 2009 from $3.94 million for the quarter ended December 31, 2008. This was due primarily to a decrease in interest and fees on loans of $175,000. However, lower funding costs caused total interest expense to decrease by $222,000 to $1.35 million for the quarter ended December 31, 2009 from $1.58 million for the quarter ended December 31, 2008. Interest expense on deposits decreased $241,000 and interest expense on borrowed funds increased $19,000.



For the six month period ended December 31, 2009 earnings were $1.40 million, or $1.30 per share ($1.14 per share diluted). The increase in net income for the period was the result of an increase in noninterest income of $2.06 million, and an increase in net interest income of $224,000. These increases were partially offset by an increase in loan loss provision of $208,000 and an increase in noninterest expense of $683,000. Eagle’s tax provision was $418,000 higher in the current period. The increase in noninterest income was primarily attributable to last period’s recognition of a decline in value of $1.29 million on Fannie Mae and Freddie Mac preferred stock, which primarily occurred during the first quarter of the fiscal year. Also,  mortgage servicing fees for the six month period ended December 30, 2008 includes a provision against the valuation of mortgage servicing rights of $239,000. The increase in noninterest expense was primarily due to an increase in salaries and employee benefits, occupancy costs, and FDIC premium increases. Salaries and employee benefits increased $158,000 resulting from merit raises, inflationary costs, and a slightly larger staff. Occupancy cost increased due to the opening of the Skyway branch in Helena, Montana in January 2009 and the Oak Street branch in Bozeman, Montana in October 2009. Federal deposit insurance premiums increased due to the expiration of credits and FDIC assessment rates increases for all federally insured financial institutions. Eagle’s annualized return on assets was 0.94% and its annualized return on equity was 9.62%, compared with 0.30% and 3.46% respectively for the same six-month period in 2008.



Total assets increased by $16.40 million, or 5.66%, to $306.11 million at December 31, 2009 from $289.71 million at June 30, 2009. Loans receivable increased $4.05 million, or 2.42%, to $171.25 million from $167.20 million. Loans held-for-sale decreased to $2.24 million from $5.35 million. Deposits increased $15.02 million, or 8.03%, to $202.22 million at December 31, 2009 from $187.20 million at June 30, 2009. Advances from the Federal Home Loan Bank and other borrowings decreased $834,000, or 1.24%, to $66.22 million from $67.06 million, while federal fund purchases remained at $0. Total shareholders’ equity increased $2.49 million or 8.95%, to $30.28 million at December 31, 2009 from $27.79 million at June 30, 2009. This was a result of the net income for the period of $1.40 million and by an increase in accumulated other comprehensive income of $1.27 million (mainly due to an increase in net unrealized gains on securities available-for-sale). This was partially offset by dividends paid and purchases of treasury stock.



Eagle’s Board of Directors declared a quarterly cash dividend of $0.26 per share for the second quarter of Eagle’s fiscal year. The dividend is payable March 5, 2010 to shareholders of record at the close of business on February 12, 2010.



American Federal Savings Bank was formed in 1922 and is headquartered in Helena, Montana. It has additional branches in Butte, Bozeman and Townsend. Eagle’s common stock trades on the OTC Bulletin Board under the symbol “EBMT.” Eagle is a subsidiary of Eagle Financial MHC, a federal mutual holding company formed in 2000, which owns approximately 59% of Eagle Bancorp’s outstanding common stock.



This release may contain certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Eagle intends such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995, and is including this statement for purposes of these safe harbor provisions.





Financial highlights for Eagle Bancorp follow.



 
















































































































































































































































































































































































































































































































































































































































EAGLE BANCORP AND SUBSIDIARY

 

 

 

 

 

(consolidated)

 

 

 

 

 

 

 

 

 

(Dollars in Thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2009

 

June 30, 2009

 

 

 

 

 

 

 

(Unaudited)

 

 

(Audited)

ASSETS

 

 

 

 

 

 

 

 

 

Cash and due from banks

 

 

 

$3,696

 

 

$2,487

Interest-bearing deposits with banks

 

 

3,129

 

 

224

Federal funds sold

 

 

 

 

--

 

 

3,617

Total cash and cash equivalents

 

 

6,825

 

 

6,328

 

 

 

 

 

 

 

 

 

 

 

Securities available-for-sale,

 

 

 

 

 

 

 

at market value

 

 

 

 

94,948

 

 

82,263

Securities held-to-maturity, at cost

 

 

265

 

 

375

Preferred stock - FASB ASC 825, at market value

--

 

 

25

Federal Home Loan Bank stock, at cost

 

2,003

 

 

2,000

Investment in Eagle Bancorp Statutory Trust I

 

155

 

 

155

Mortgage loans held-for-sale

 

 

 

2,236

 

 

5,349

Loans receivable, net of deferred loan fees

 

 

 

 

 

and allowance for loan losses of $700 at

 

 

 

 

 

December 31, 2009 and $525 at June 30, 2009

171,250

 

 

167,197

Accrued interest and dividends receivable

 

1,534

 

 

1,399

Mortgage servicing rights, net

 

 

 

2,350

 

 

2,208

Premises and equipment, net

 

 

 

15,989

 

 

13,761

Cash surrender value of life insurance

 

6,593

 

 

6,496

Real estate acquired in settlement of loans,

 

 

 

 

 

net of allowance for losses

 

 

142

 

 

--

Other assets

 

 

 

 

 

1,818

 

 

2,153

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total assets

 

 

$306,108

 

 

$289,709

 

 

 

 

 

 

 

 

 

 

 

LIABILITIES

 

 

 

 

 

 

 

 

 

Deposit accounts:

 

 

 

 

 

 

 

 

 

Noninterest bearing

 

 

 

17,745

 

 

15,002

 

Interest bearing

 

 

 

184,478

 

 

172,197

 

 

 

Total deposits

 

 

202,223

 

 

187,199

 

 

 

 

 

 

 

 

 

 

 

Accrued expenses and other liabilities

 

2,228

 

 

2,507

Federal funds purchased

 

 

 

--

 

 

--

FHLB advances and other borrowings

 

66,222

 

 

67,056

Subordinated debentures

 

 

 

5,155

 

 

5,155

 

 

 

Total liabilities

 

 

275,828

 

 

261,917

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EQUITY

 

 

 

 

 

 

 

 

 

Preferred stock (no par value, 1,000,000 shares

 

 

 

 

authorized, none issued or outstanding)

 

--

 

 

--

Common stock (par value $0.01 per share;

 

 

 

 

 

9,000,000 shares authorized; 1,223,572

 

 

 

 

 

shares issued; 1,074,507 and 1,075,312

 

 

 

 

 

shares outstanding at December 31, 2009

 

 

 

 

 

and June 30, 2009, respectively)

 

 

12

 

 

12

Additional paid-in capital

 

 

 

4,614

 

 

4,564

Unallocated common stock held by employee

stock ownership plan ("ESOP")

 

 --

 

 

 (18)

Treasury stock, at cost (149,065 and 148,260

 

 

 

 

 

shares at December 31, 2009 and

 

 

 

 

 

 

June 30, 2009, respectively)

 

 

(5,056)

 

 

(5,034)

Retained earnings

 

 

 

 

30,026

 

 

28,850

Accumulated other comprehensive gain(loss)

 

684

 

 

(582)

 

 

 

Total equity

 

 

30,280

 

 

27,792

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total liabilities and equity

$306,108

 

 

$289,709


 






































































































































































































































































































































































































































































EAGLE BANCORP AND SUBSIDIARY

Consolidated Statements of Income

(In Thousands, except for Per Share Data)

 

 

 

 

 

 

 

 

Three Months Ended

Six Months Ended

 

 

December 31, (unaudited)

December 31, (unaudited)

 

 

2009

2008

2009

2008

Interest and Dividend Income:

 

 

 

 

Interest and fees on loans

$2,780

$2,955

$5,488

5,792

Securities available-for-sale

1,008

977

2,012

1,940

Securities held-to-maturity

3

5

7

10

Interest on deposits with banks

7

1

15

5

FHLB Stock dividends

0

5

0

12

 

Total interest and dividend income

3,798

3,943

7,522

7,759

 

 

 

 

 

 

Interest Expense:

 

 

 

 

Deposits

 

589

830

1,200

1,692

Advances and other borrowings

689

670

1,344

1,313

Subordinated debentures

75

75

150

150

 

Total interest expense

1,353

1,575

2,694

3,155

 

 

 

 

 

 

Net Interest Income

2,445

2,368

4,828

4,604

Loan loss provision

107

34

242

34

Net interest income after loan loss provision

2,338

2,334

4,586

4,570

 

 

 

 

 

 

Noninterest income:

 

 

 

 

Service charges on deposit accounts

205

181

400

371

Net gain on sale of loans

349

238

789

421

Mortgage loan servicing fees

198

(83)

383

57

Net gain on sale of available-for-sale

 

 

 

 

securities

28

0

28

57

Net gain (loss) on securities FASB ASC 825

0

(47)

84

(1,286)

Other

 

157

155

314

320

 

Total noninterest income

937

444

1,998

(60)

 

 

 

 

 

 

Noninterest expense:

 

 

 

 

Salaries and employee benefits

1,251

1,146

2,350

2,192

Occupancy expenses

231

136

387

285

Furniture and equipment depreciation

68

65

131

132

In-house computer expense

101

101

189

174

Advertising

124

103

230

194

Amortization of mtg servicing fees

137

66

263

137

Federal insurance premiums

66

9

131

16

Postage

 

49

45

87

78

Legal,accounting, and examination fees

93

65

168

113

Consulting fees

41

19

98

62

ATM processing

12

14

29

28

Other

 

312

287

525

494

 

Total noninterest expense

2,485

2,056

4,588

3,905

 

 

 

 

 

 

Income before provision for income taxes

790

722

1,996

605

 

 

 

 

 

 

Provision for income taxes

237

198

599

181

 

 

 

 

 

 

Net income

$553

$524

$1,397

$424

 

 

 

 

 

 

Basic earnings per share

$0.52

$0.49

$1.30

$0.40

 

 

 

 

 

 

Diluted earnings per share

$0.45

$0.43

$1.14

$0.35

 

 

 

 

 

 

Weighted average shares outstanding (basic eps)

1,073,747

1,069,952

1,073,323

1,069,581

 

 

 

 

 

 

Weighted average shares outstanding (diluted eps)

1,222,812

1,218,212

1,222,235

1,217,635


 


CONTACT: Eagle Bancorp
Peter J. Johnson, President and Chief Executive Officer
(406) 457-4006
Clint J. Morrison, Senior Vice President and
Chief Financial Officer
(406) 457-4007



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