Exhibit 99
[Eagle Bancorp, Inc. Logo Omitted]
PRESS RELEASE EAGLE BANCORP, INC.
FOR IMMEDIATE RELEASE CONTACT:
Ronald D. Paul
July 19, 2004 301.986.1800
EAGLE BANCORP, INC. ANNOUNCES 68% INCREASE IN 2ND QUARTER
AND 39% INCREASE IN SIX MONTH EARNINGS
BETHESDA, MD. Eagle Bancorp, Inc. (Nasdaq: EGBN), the parent company of
EagleBank, announces net income of $1.1 million for the quarter and $2.3 million
for the six months ended June 30, 2004. The results for the quarter represent a
68% increase over the $639 thousand earned in the second quarter of 2003. The
six months results represent a 39% increase over the $1.6 million earned in the
first six months of 2003.
On a per share basis, the Company earned $0.20 per basic share and $0.19 per
diluted share for the second quarter of 2004, as compared to $0.22 per basic and
$0.20 per diluted share for the second quarter of 2003. For the six months
ending June 30, 2004, the Company earned $0.42 per basic share and $0.40 per
diluted share compared to $0.56 per basic and $0.52 per diluted share for the
same period in 2003. Earnings per share were affected in both periods of 2004
when compared to the same periods in 2003 by the 85% increase in the number of
outstanding shares following the completion of the Company's offering of
approximately 2.4 million shares in August 2003. The impact on earnings per
share should be reduced in future quarters as the additional capital is further
leveraged and deployed in loans and other income producing assets other than low
yielding, but highly liquid short term investment securities.
The Company reported total assets at June 30, 2004 of $494 million compared to
$443 million at December 31, 2003, an11.4% increase. At June 30, 2003 total
assets were $421 million. At June 30, 2004 deposits of approximately $403
million represented a 20.1% increase over deposits of $336 million at December
31, 2003, and a 30.8% increase over deposits of $308 million at June 30, 2003.
At June 30, 2004, loans (including loans held for sale) increased 9.7% to $353
million from $321 million at December 31, 2003, and 32.3% from $266 million at
June 30, 2003.
Leonard Abel, Chairman and Ronald Paul, President and CEO of Eagle Bancorp,
Inc., are pleased with the results for the first six months and the quarter
ending June 30, 2004. They are particularly pleased that the Company has been
able to maintain its interest margin above 4% increasing it to 4.23% for the six
month period in 2004 from 4.14% for all of 2003 and 4.17% for the first six
months of 2003. As a result of the interest rate sensitivity of the Company's
asset base the recent 25 basis point increase by the Federal Reserve in the
target federal funds rate, and any additional increases, are expected to further
improve the Company's interest rate margin. Indirectly contributing to the
success of the Company is the excellent level of non performing loans, which
stood at the very low percentage of total loans of 0.13% at June 30, 2004, and
the fact that recoveries exceeded charge offs by $78 thousand during the six
month period in 2004. They are pleased that the Bank was able to open its Dupont
Circle branch, located at 1228 Connecticut Avenue, on schedule and expects that
this office will complement the existing K Street Office. Reinforcing the Board
of Director's belief that the District of Columbia represents significant
potential growth and profit opportunities, the Bank executed a lease for a third
D. C. branch and regional office at 14th and K Streets adjacent to McPherson
Square. That office is expected to open in the first quarter of 2005.
The Summary of Financial Information presented on the following pages provides a
more comprehensive overview of the Company's performance for the first six
months of 2004. Persons wishing additional information should refer to the
Company's 10Q report to be filed with the Securities and Exchange Commission on
or before August 16, 2004.
NON-GAAP PRESENTATIONS. This press release refers to the efficiency ratio which
is computed by dividing noninterest expense by the sum of net interest income on
a tax equivalent basis and noninterest income. This is a non-GAAP financial
measure that we believe provides investors with important information regarding
our operational efficiency. Comparison of our efficiency ratio with those of
other companies may not be possible because other companies may calculate the
efficiency ratio differently. The Company, in referring to its net income, is
referring to income under accounting principles generally accepted in the United
States, or "GAAP".
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.
SUMMARY OF FINANCIAL INFORMATION
FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2004 AND
JUNE 30, 2003 AND YEAR ENDED DECEMBER 31, 2003
STATEMENTS OF CONDITION HIGHLIGHTS
(in thousands) JUNE 30,2004 JUNE 30,2003 DECEMBER 31, 2003
------------ ------------- ------------------
UNAUDITED UNAUDITED AUDITED
ASSETS
Cash and cash equivalents $ 31,180 $ 33,732 $ 25,103
Interest bearing deposits with other banks 5,936 20,755 4,332
Federal funds and cash equivalents 23,980 9,019 --
Investment securities available for sale 63,922 83,392 82,581
Loans held for sale 3,866 4,181 3,649
Loans 349,013 261,392 317,533
Less: Allowance for credit losses (3,957) (2,952) (3,680)
Loans, net 345,056 258,440 313,853
Other assets 20,098 11,117 13,479
TOTAL ASSETS $ 494,038 $ 420,636 $ 442,997
LIABILITIES AND STOCKHOLDERS' EQUITY
Non interest bearing deposits $ 96,252 $ 81,513 $ 90,468
Interest bearing deposits 306,996 226,986 245,046
Total deposits 403,248 308,499 335,514
Federal funds purchased and securities sold
under repurchase agreements 21,906 27,186 38,454
Other borrowings 12,528 26,273 14,588
Other liabilities 1,623 37,110 1,429
Total liabilities 439,305 399,068 389,985
Stockholders' equity 54,733 21,568 53,012
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 494,038 $ 420,636 $ 442,997
STATEMENTS OF INCOME HIGHLIGHTS
SIX MONTHS ENDED THREE MONTHS ENDED YEAR ENDED
JUNE 30, JUNE 30, DECEMBER 31,
------------------------ ------------------------ ----------
2004 2003 2004 2003 2003
---------- ---------- ---------- ---------- ----------
UNAUDITED UNAUDITED UNAUDITED UNAUDITED AUDITED
Total interest income $ 10,992 $ 8,819 $ 5,616 $ 4,353 $ 18,404
Total interest expense 2,016 2,142 1,047 1,067 3,953
Net interest income 8,976 6,677 4,569 3,286 14,451
Provision for credit losses 230 425 76 201 1,175
Noninterest income 1,907 1,446 825 573 2,936
Noninterest expense 7,124 5,116 3,631 2,651 11,094
Income before incomes taxes 3,529 2,582 1,687 1,007 5,118
Income tax expense 1,277 960 614 368 1,903
Net income $ 2,252 $ 1,622 $ 1,073 $ 639 $ 3,215
PER SHARE DATA:
Earnings per share, basic $ 0.42 $ 0.56 $ 0.20 $ 0.22 $ 0.82
Earnings per share, diluted $ 0.40 $ 0.52 $ 0.19 $ 0.20 0.77
Shares outstanding at period end 5,404,257 2,907,174 5,359,303
Weighted average shares outstanding, basic 5,397,459 2,899,359 5,402,486 2,899,036 3,932,004
Weighted average shares outstanding, diluted 5,626,954 3,104,781 5,627,358 3,105,378 4,166,128
Book value at period end $ 10.13 $ 7.44 $ 9.89
FINANCIAL RATIOS AND AVERAGE BALANCE HIGHLIGHTS
SIX MONTHS ENDED
JUNE 30, YEAR ENDED
--------------------------------- DECEMBER 31,
PERFORMANCE RATIOS: 2004 2003 2003
--------------- -------------- ----------------
(ANNUALIZED) UNAUDITED UNAUDITED AUDITED
Return on average assets 0.99% 0.93% 0.86%
Return on average equity 8.30% 15.52% 9.45%
Net interest margin 4.23% 4.17% 4.14%
Efficiency ratio 65.50% 62.93% 63.34%
OTHER RATIOS:
Allowance for credit losses to total
loans 1.14% 1.13% 1.16%
Non performing loans to total loans 0.13% 0.19% 0.21%
Net charge-offs (annualized) to
average loans * 0.23% 0.10%
Equity to average assets 11.88% 6.20% 9.05%
Tier 1 capital ratio 13.62% 8.10% 15.30%
Total capital ratio 14.60% 9.20% 16.40%
AVERAGE BALANCES:
Assets $ 457,096 $ 347,087 $ 375,802
Earning assets $ 423,920 $ 322,946 $ 349,157
Loans $ 332,108 $ 247,527 $ 266,811
Deposits $ 368,361 $ 256,872 $ 263,448
Stockholders' equity $ 54,297 $ 20,900 $ 34,028
* Recoveries exceed credit losses