EXHIBIT 99.1
Eagle Bancorp Announces Record Quarterly Earnings and Declares Quarterly Cash Dividend
HELENA, Mont., April 16, 2009 (GLOBE NEWSWIRE) -- Eagle Bancorp ("Eagle") (OTCBB:EBMT), the stock holding company of American Federal Savings Bank (the "Bank"), reported net income of $1.059 million, or $0.99 per share ($0.87 per share diluted), for the three months ended March 31, 2009, and declared a cash dividend of $0.255 per share. Earnings for the quarter increased by 96.84% from the $538,000 earned for the quarter ended March 31, 2008. Earnings for the nine-month period ended March 31, 2009 were $1.483 million, or $1.39 per share ($1.22 per share diluted), an increase of $262,000 or 21.46%, over the $1.221 million for the nine month period ended March 31, 2008.
"Many parts of the country are experiencing a difficult economic environment, which makes us particularly pleased that we can report continued strong asset quality as Montana in general, and specifically our markets, continue to do well. As a result we are pleased to announce record earnings for our third quarter. The combination of lower rates and a relatively healthy local and state economy has driven high volumes of mortgage loan originations that our talented lending staff turned into very significant loan sales for the quarter. These loan sales, combined with increased growth in our net interest income, led to the record profitability of this current quarter. We are pleased that the increase in lending was accompanied by strong deposit growth during the quarter as well," said President/CEO Pete Johnson.
The increase in net income for the third quarter resulted from an increase in net interest income (after loan loss provision) of $403,000, and an increase in noninterest income of $907,000. Those increases were partially offset by an increase in noninterest expense of $490,000. Eagle's tax provision was $299,000 higher in the current quarter.
The increase in noninterest income of $907,000 or 146.53% was primarily due to an increase in net gain on sale of loans of $658,000, a decrease in loss on securities-SFAS 159 of $101,000, and an increase in mortgage loan servicing fees of $214,000. The increase in gain on sale of loans was due to a significant increase in loan origination volumes resulting from lower rates on mortgages. The increase on mortgage loan servicing fees was due to an adjustment to the valuation of mortgage servicing rights of $192,000.
Eagle's annualized return on assets was 1.45% and its annualized return on equity was 16.55% for the quarter, compared with 0.83% and 8.45%, respectively, for the same quarter in 2008.
Total interest and dividend income increased $348,000 to $3,822,000 for the quarter ended March 31, 2009 from $3,474,000 for the quarter ended March 31, 2008. This was due primarily to an increase in interest on securities available-for-sale of $267,000. Lower funding costs caused total interest expense to decrease by $127,000 to $1.512 million for the quarter ended March 31, 2009 from $1.639 million for the quarter ended March 31, 2008. Interest expense on deposits decreased $326,000, and interest expense on borrowed money increased $199,000.
For the nine-month period ended March 31, 2009 earnings were $1.483 million, or $1.39 per share ($1.22 per share diluted), as noted above. The increase in net income for the period was the result of an increase in net interest income (after loan loss provision) of $1.487 million, a modest decrease in noninterest income of $6,000, and an increase in noninterest expense of $940,000. Eagle's tax provision was $279,000 higher in the current period. The small decrease in noninterest income was primarily attributable to the decline in value of $1.303 million on Fannie Mae and Freddie Mac preferred stock resulting from the conservatorship of both entities by a federal agency, during the first quarter of the fiscal year which was nearly offset by a nearly identical gain on sale of loans. The Company's increase in noninterest expense was primarily due to an increase in salaries and employee benefits of $350,000 attributable to merit raises, inflationary costs, and a slightly larger staff. Eagle's annualized return on assets was 0.69% and its annualized return on equity was 7.62%, compared with 0.63% and 6.53% respectively for the same nine-month period in 2008.
Over the nine-month period, total assets increased by $15.48 million, or 5.53%, to $295.38 million from $279.91 million at June 30, 2008. Loans receivable increased $4.49 million, or 2.67%, to $172.64 million from $168.15 million. Loans held-for-sale remained the same at $7.37 million. For the nine months, deposits increased $13.14 million, or 7.35%, to $191.99 million from $178.85 million at June 30, 2008. Advances from the Federal Home Loan Bank and other borrowings increased $4.25 million, or 6.52%, to $69.47 million from $65.22 million, while federal fund purchases decreased from $3.0 million to zero. Total stockholders' equity increased $638,000 or 2.49%, to $26.27 million at March 31, 2009 from $25.63 million at June 30, 2008. This was a result of the net income for the period of $1.483 million offset by an increase in accumulated other comprehensive loss of $452,000 (mainly due to an increase in net unrealized loss on securities available-for-sale), and by dividends paid and purchases of treasury stoc k.
Eagle's Board of Directors declared a quarterly cash dividend of $0.255 per share for the second quarter of Eagle's fiscal year. The dividend is payable May 22, 2009 to shareholders of record at the close of business on May 1, 2009.
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)
March 31, June 30,
2009 2008
(Unaudited) (Audited)
----------- -----------
ASSETS
Cash and due from banks $ 2,246 $ 3,541
Interest-bearing deposits with banks 133 549
Federal funds sold 11,302 --
----------- -----------
Total cash and cash equivalents 13,681 4,090
Securities available-for-sale,
at market value 76,005 78,417
Securities held-to-maturity, at cost 376 697
Preferred stock - SFAS 159, at market value 20 1,321
Federal Home Loan Bank stock, at cost 1,925 1,715
Investment in Eagle Bancorp Statutory Trust I 155 155
Mortgage loans held-for-sale 7,374 7,370
Loans receivable, net of deferred loan fees
and allowance for loan losses of $399 at
March 31, 2009 and $300 at June 30, 2008 172,637 168,149
Accrued interest and dividends receivable 1,477 1,426
Mortgage servicing rights, net 1,881 1,652
Premises and equipment, net 12,142 8,080
Cash surrender value of life insurance 6,449 6,285
Real estate acquired in settlement of loans,
net of allowance for losses -- --
Other assets 1,262 550
----------- -----------
Total assets $ 295,384 $ 279,907
=========== ===========
LIABILITIES
Deposit accounts:
Noninterest bearing $ 15,535 $ 14,617
Interest bearing 176,454 164,234
----------- -----------
Total deposits 191,989 178,851
Accrued expenses and other liabilities 2,496 2,045
Federal funds purchased -- 3,000
FHLB advances and other borrowings 69,472 65,222
Subordinated debentures 5,155 5,155
----------- -----------
Total liabilities 269,112 254,273
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; 1,075,312 and 1,076,072
shares outstanding at March 31, 2009
and June 30, 2008, respectively) 12 12
Additional paid-in capital 4,543 4,487
Unallocated common stock held by employee
stock ownership plan ("ESOP") (28) (55)
Treasury stock, at cost (148,260 and 147,500
shares at March 31, 2009 and
June 30, 2008, respectively) (5,034) (5,013)
Retained earnings 28,053 27,025
Accumulated other comprehensive loss (1,274) (822)
----------- -----------
Total equity 26,272 25,634
Total liabilities and equity $ 295,384 $ 279,907
=========== ===========
EAGLE BANCORP AND SUBSIDIARY
Consolidated Statements of Income
(In Thousands, except for Per Share Data)
Three Months Ended Nine Months Ended
March 31, March 31,
(unaudited) (unaudited)
----------------------- ------------------------
2009 2008 2009 2008
---------- ---------- ---------- -----------
Interest and
Dividend
Income:
Interest and
fees on loans $ 2,862 $ 2,750 $ 8,654 $ 8,169
Securities
available-
for-sale 959 692 2,899 2,118
Securities
held-to-
maturity 5 8 15 26
Interest on
deposits
with banks 3 20 8 54
FHLB Stock
dividends (7) 4 5 9
---------- ---------- ---------- ----------
Total interest
and dividend
income 3,822 3,474 11,581 10,376
---------- ---------- ---------- ----------
Interest Expense:
Deposits 770 1,096 2,462 3,452
Advances and
other borrowings 667 468 1,980 1,378
Subordinated
debentures 75 75 225 225
---------- ---------- ---------- ----------
Total interest
expense 1,512 1,639 4,667 5,055
---------- ---------- ---------- ----------
Net Interest
Income 2,310 1,835 6,914 5,321
Loan loss
provision 72 0 106 0
---------- ---------- ---------- ----------
Net interest
income after
loan loss
provision 2,238 1,835 6,808 5,321
---------- ---------- ---------- ----------
Noninterest
income:
Service
charges on
deposit
accounts 179 164 550 546
Net gain on
sale of
loans 849 191 1,270 547
Mortgage loan
servicing fees 350 136 407 406
Net gain on sale
of available-
for-sale
securities 0 72 57 72
Net gain (loss)
on securities
SFAS 159 (17) (118) (1,303) (549)
Other 165 174 485 450
---------- ---------- ---------- ----------
Total
noninterest
income 1,526 619 1,466 1,472
---------- ---------- ---------- ----------
Noninterest
expense:
Salaries and
employee benefits 1,110 998 3,302 2,952
Occupancy expenses 172 136 457 401
Furniture and
equipment
depreciation 78 69 210 210
In-house
computer expense 104 73 278 220
Advertising 74 52 268 185
Amortization of
mtg servicing fees 241 83 378 224
Federal
insurance premiums 54 5 70 15
Postage 31 23 109 79
Legal, accounting,
and examination
fees 60 48 173 169
Consulting fees 20 39 82 72
ATM processing 17 13 45 40
Other 290 222 784 649
---------- ---------- ---------- ----------
Total
noninterest
expense 2,251 1,761 6,156 5,216
---------- ---------- ---------- ----------
Income before
provision for
income taxes 1,513 693 2,118 1,577
---------- ---------- ---------- ----------
Provision for
income taxes 454 155 635 356
---------- ---------- ---------- ----------
Net income $ 1,059 $ 538 $ 1,483 $ 1,221
========== ========== ========== ==========
Basic earnings
per share $ 0.99 $ 0.50 $ 1.39 $ 1.14
========== ========== ========== ==========
Diluted earnings
per share $ 0.87 $ 0.44 $ 1.22 $ 1.01
========== ========== ========== ==========
Weighted average
shares
outstanding
(basic eps) 1,071,098 1,070,070 1,070,087 1,071,124
========== ========== ========== ==========
Weighted average
shares
outstanding
diluted eps) 1,219,358 1,214,762 1,218,209 1,213,610
========== ========== ========== ==========
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
