EXHIBIT 99.1
Eagle Bancorp Announces Quarterly Earnings and Declares Quarterly Cash Dividend
HELENA, Mont., Oct. 18, 2007 (PRIME NEWSWIRE) -- Eagle Bancorp ("Eagle") (OTCBB:EBMT), the stock holding company of American Federal Savings Bank (the "Bank"), reported first quarter net income of $464,000, or $0.43 per share ($0.38 per share diluted), for the three months ended September 30, 2007, and declared a cash dividend of $0.24 per share. Earnings for the quarter increased by 9.96% from the $422,000 earned for the quarter ended September 30, 2006.
Eagle's Board of Directors declared a quarterly cash dividend of $0.24 per share for the first quarter of Eagle's fiscal year. The dividend is payable November 16, 2007 to shareholders of record at the close of business on November 2, 2007.
The increase in net income for the first quarter was the result of increases in net interest income of $55,000 and noninterest income of $47,000, offset by an increase in noninterest expense of $52,000. Eagle's tax provision was $8,000 higher in the current quarter. Noninterest income increased primarily due to higher gains on loan sales from the 2006 period. Eagle's annualized return on assets was 0.75% and its annualized return on equity was 7.58% for the quarter, compared with 0.74% and 7.34%, respectively, for the same quarter in 2006.
Total interest and dividend income increased $414,000 to $3,408,000 for the quarter ended September 30, 2007 from $2,994,000 for the quarter ended September 30, 2006. This was due primarily to an increase in interest and fees on loans of $357,000. Higher funding costs caused total interest expense to increase by $359,000 to $1.7 million for the quarter ended September 30, 2007 from $1.34 million for the quarter ended September 30, 2006. Interest expense on deposits increased $251,000 and interest expense on advances increased $108,000.
Total assets increased by $3.37 million, or 1.4%, to $248.06 million at September 30, 2007 from $244.69 million at June 30, 2007. Loans receivable increased $3.80 million, or 2.4%, to $161.94 million from $158.14 million. Loans held-for-sale increased $1.55 million to $2.72 million from $1.18 million. Deposits increased $1.83 million, or 1.0%, to $181.48 million at September 30, 2007 from $179.65 million at June 30, 2007. Advances from the Federal Home Loan Bank and other borrowings increased $4.0 million, or 13.3%, to $34.0 million from $30.0 million, while federal fund purchases decreased from $3.8 million to zero. Total stockholders' equity increased $807,000, or 3.35%, to $24.90 million at September 30, 2007 from $24.09 million at June 30, 2007, as a result of the net income for the period of $464,000 and a decrease in accumulated other comprehensive loss of $556,000 (mainly due to a decrease in net unrealized loss on securities available-for-sale). These were partially offset by dividends paid and purch ases of treasury stock.
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)
September 30, June 30,
2007 2007
(Unaudited) (Audited)
ASSETS
Cash and due from banks 3,021 2,709
Interest-bearing deposits with banks 198 360
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Total cash and cash equivalents 3,219 3,069
Investment securities available-for-sale,
at market value 63,067 64,774
Investment securities held-to-maturity, at cost 748 921
Investment in nonconsolidated subsidiary 155 155
Federal Home Loan Bank stock, at cost 1,315 1,315
Mortgage loans held-for-sale 2,720 1,175
Loans receivable, net of deferred loan fees
and allowance for loan losses of $518 at
September 30, 2007 and $518 at June 30, 2007 161,942 158,140
Accrued interest and dividends receivable 1,336 1,333
Mortgage servicing rights, net 1,644 1,628
Property and equipment, net 5,781 5,806
Cash surrender value of life insurance 5,813 5,764
Real estate acquired in settlement of loans,
net of allowance for losses 0 0
Other assets 316 606
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Total assets 248,056 244,686
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LIABILITIES
Deposit accounts:
Noninterest bearing 14,688 13,694
Interest bearing 166,793 165,953
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Total deposits 181,481 179,647
Federal Funds Purchased 0 3,800
Advances from Federal Home Loan Bank
and Other Borrowings 34,000 30,000
Long-Term Subordinated Debentures 5,155 5,155
Accrued expenses and other liabilities 2,525 1,996
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Total liabilities 223,161 220,598
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; 1,083,107 and 1,084,357 shares
outstanding at September 30, 2007 and
June 30, 2007, respectively) 12 12
Additional paid-in capital 4,414 4,387
Unallocated common stock held by employee
stock ownership plan ("ESOP") (82) (92)
Treasury stock, at cost (140,265 and 139,215
shares at September 30, 2007 and
June 30, 2007, respectively) (4,801) (4,759)
Retained earnings 25,704 25,448
Accumulated other comprehensive (loss) income (352) (908)
-------- --------
Total equity 24,895 24,088
Total liabilities and equity 248,056 244,686
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EAGLE BANCORP AND SUBSIDIARY
Consolidated Statements of Income
For the Three Months Ended September 30, 2007 and 2006
(Dollars in Thousands, Except for Per Share Data)
Three Months Ended
(unaudited)
Sept. 30 Sept. 30
----------------------
2007 2006
--------- ---------
Interest and Dividend Income:
Interest and fees on loans 2,668 2,311
Interest on deposits with banks 7 12
Securites held to maturity 9 11
Securities available for sale 722 660
FHLB Stock dividends 2 0
--------- ---------
Total interest and dividend income 3,408 2,994
--------- ---------
Interest Expense:
Deposits 1,185 934
Federal Home Loan Bank advances 439 331
Subordinated debentures 75 75
--------- ---------
Total interest expense 1,699 1,340
--------- ---------
Net Interest Income 1,709 1,654
Loan loss provision 0 0
--------- ---------
Net interest income after loan loss provision 1,709 1,654
--------- ---------
Noninterest income:
Net gain on sale of loans 199 119
Demand deposit service charges 166 135
Mortgage loan servicing fees 133 138
Net gain (loss) on sale of available for sale
securities 0 0
Net gain (loss) on securities FAS 159 (41) 0
Other 127 145
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Total noninterest income 584 537
--------- ---------
Noninterest expense:
Salaries and employee benefits 946 838
Occupancy expenses 135 142
Furniture and equipment depreciation 71 79
In-house computer expense 74 71
Advertising expense 63 93
Amortization of mtg servicing fees 66 76
Federal insurance premiums 5 6
Postage 23 18
Legal, accounting, and examination fees 56 58
Consulting fees 15 16
ATM processing 14 12
Other 200 207
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Total noninterest expense 1,668 1,616
--------- ---------
Income before provision for income taxes 625 575
--------- ---------
Provision for income taxes 161 153
--------- ---------
Net income 464 422
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Basic earnings per common share 0.43 0.39
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Diluted earnings per common share 0.38 0.35
========= =========
Weighted average shares
outstanding (basic eps) 1,072,441 1,073,660
========= =========
Weighted average shares outstanding
(diluted eps) 1,212,458 1,207,858
========= =========
CONTACT: Eagle Bancorp
Peter J. Johnson, President and Chief Executive Officer
(406) 457-4006
Clint J. Morrison, Senior Vice President and CFO
(406) 457-4007
