Exhibit 99
[Eagle Bancorp, Inc. Logo Omitted]
PRESS RELEASE EAGLE BANCORP, INC.
FOR IMMEDIATE RELEASE CONTACT:
Ronald D. Paul
October 18, 2004 301.986.1800
EAGLE BANCORP, INC. ASSETS EXCEED $500 MILLION
THIRD QUARTER EARNINGS GROW 28% OVER 2003
YEAR TO DATE EARNINGS EXCEED 2003 BY 37%
BETHESDA, MD. Eagle Bancorp, Inc. (Nasdaq: EGBN), the parent company of
EagleBank, announces net income of $1 million for the three months ended
September 30, 2004 and $3.3 million for the nine months ended September 30,
2004. The results for the quarter represent a 28% increase over the $778
thousand earned in the third quarter of 2003. The nine month, results represent
a 37% increase over the $2.4 million earned in the first nine months of 2003.
On a per share basis, the Company earned $0.18 per basic share and $0.18 per
diluted share for the third quarter of 2004, as compared to $0.17 per basic and
$0.16 per diluted share for the third quarter of 2003. For the nine months ended
September 30, 2004, the Company earned $0.60 per basic share and $0.57 per
diluted share compared to $0.70 per basic and $0.65 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 Company reported total assets at September 30, 2004 of $508 million compared
to $443 million at December 31, 2003, a 14.6% increase. At September 30, 2003
total assets were $402 million. At September 30, 2004, deposits of approximately
$411 million represented a 22.3% increase over deposits of $336 million at
December 31, 2003, and a 31.3% increase over deposits of $313 million at
September 30, 2003. At September 30, 2004, loans (including loans held for sale)
increased 14.3% to $367 million from $321 million at December 31, 2003, and
27.0% from $289 million at September 30, 2003.
Leonard Abel, Chairman and Ronald Paul, President and CEO of Eagle Bancorp,
Inc., are extremely pleased that in just over six years of operation, the
Company exceeded $500 million in assets. They offer their thanks to the
shareholders for their encouragement, the Company's staff for its effort and the
community for the support and encouragement in achieving this significant
milestone. While growing to over $500 million in assets, the Company has been
consistent in improving profits. They are particularly pleased that the Company
has been able to maintain its interest margin above 4%, and actually increasing
it to 4.27% for the nine month period in 2004 from 4.14% for all of 2003 and
4.09% for the first nine months of 2003. As a result of the interest rate
sensitivity of the Company's asset base, the recent increases by the Federal
Reserve in the target federal funds rate and any additional increases, are
expected to further improve the Company's net interest rate margin. Indirectly
contributing to the success of the Company is a low level of non performing
loans. At September 30, 2004, non performing loans stood at 0.86% of total loans
compared to 0.16% at September 30, 2003 and 0.21% at December 31, 2003. Non
performing loans at September 30, 2004 included one loan of $2.2 million which
management believes is well collateralized and expects to be resolved in the
fourth quarter of 2004 with no resulting loss to the Company. Exclusive of this
credit non performing loans were at 0.25%.
The Summary of Financial Information presented on the following pages provides a
more comprehensive overview of the Company's performance for the first nine
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 November 15, 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 NINE MONTHS ENDED SEPTEMBER 30, 2004 AND
SEPTEMBER 30, 2003 AND YEAR ENDED DECEMBER 31, 2003
STATEMENTS OF CONDITION HIGHLIGHTS
SEPTEMBER 30, SEPTEMBER 30,
(in thousands) 2004 2003 DECEMBER 31, 2003
----------------- --------------- -------------------
UNAUDITED UNAUDITED AUDITED
--------- --------- -------
ASSETS
Cash and cash equivalents $ 50,116 $ 26,340 $ 25,103
Interest bearing deposits with other banks 9,612 4,351 4,332
Federal funds sold - 2,000 -
Investment securities available for sale 65,696 70,069 82,581
Loans held for sale 3,138 1,930 3,649
Loans 363,823 287,001 317,533
Less: Allowance for credit losses (4,176) (3,237) (3,680)
Loans, net 359,649 283,764 313,853
Other assets 19,479 13,267 13,479
TOTAL ASSETS $ 507,688 $ 401,721 $ 442,997
LIABILITIES AND STOCKHOLDERS' EQUITY
Non interest bearing deposits $ 113,730 $ 79,723 $ 90,468
Interest bearing deposits 297,291 233,581 245,046
Total deposits 411,021 313,304 335,514
Federal funds purchased and securities sold
under repurchase agreements 27,370 20,009 38,454
Other borrowings 11,443 15,632 14,588
Other liabilities 1,376 875 1,429
Total liabilities 451,210 349,820 389,985
Stockholders' equity 56,478 51,901 53,012
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 507,688 $ 401,721 $ 442,997
STATEMENTS OF INCOME HIGHLIGHTS
NINE MONTHS ENDED THREE MONTHS ENDED YEAR ENDED
SEPTEMBER 30, SEPTEMBER 30, DECEMBER 31,
---------------------------- ---------------------------- --------------
2004 2003 2004 2003 2003
------------ ------------ ------------ ------------ --------------
UNAUDITED UNAUDITED UNAUDITED UNAUDITED AUDITED
Total interest income $ 17,135 $ 13,360 $ 6,146 $ 4,541 $ 18,404
Total interest expense 3,128 3,048 1,115 906 3,953
Net interest income 14,007 10,312 5,031 3,635 14,451
Provision for credit losses 457 730 227 305 1,175
Noninterest income 2,604 2,133 697 687 2,936
Noninterest expense 11,086 7,920 3,962 2,804 11,094
Income before income taxes 5,068 3,795 1,539 1,213 5,118
Income tax expense 1,816 1,395 539 435 1,903
Net income $ 3,252 $ 2,400 $ 1,000 $ 778 $ 3,215
PER SHARE DATA:
Earnings per share, basic $ 0.60 $ 0.70 $ 0.18 $ 0.17 $ 0.82
Earnings per share, diluted $ 0.57 $ 0.65 $ 0.18 $ 0.16 0.77
Shares outstanding at period end 5,408,169 5,359,153 5,359,303
Weighted average shares outstanding,
basic 5,398,638 3,442,022 5,406,590 4,522,116 3,932,004
Weighted average shares outstanding,
diluted 5,657,452 3,671,841 5,640,888 4,742,419 4,166,128
Book value at period end $ 10.45 $ 9.67 $ 9.89
FINANCIAL RATIOS AND AVERAGE BALANCE HIGHLIGHTS
NINE MONTHS ENDED YEAR ENDED
SEPTEMBER 30, DECEMBER 31,
--------------------------------- ----------------
PERFORMANCE RATIOS: 2004 2003 2003
--------------- -------------- ----------------
(ANNUALIZED) UNAUDITED UNAUDITED AUDITED
Return on average assets 0.92% 0.88% 0.86%
Return on average equity 7.89% 11.50% 9.45%
Net interest margin 4.27% 4.09% 4.14%
Efficiency ratio 66.74% 63.59% 63.34%
OTHER RATIOS:
Allowance for credit losses to total
loans 1.15% 1.13% 1.16%
Non performing loans to total loans 0.86% 0.16% 0.21%
Net charge-offs (annualized) to average loans 0.02% 0.13% 0.10%
Average equity to average assets 11.71% 7.66% 9.05%
Tier 1 capital ratio 14.36% 16.1% 15.30%
Total capital ratio 15.42% 17.1% 16.40%
AVERAGE BALANCES:
Assets $ 469,357 $ 363,047 $ 375,802
Earning assets $ 437,651 $ 337,323 $ 349,157
Loans $ 341,559 $ 256,011 $ 266,811
Deposits $ 380,866 $ 283,228 $ 292,953
Stockholders' equity $ 54,947 $ 27,826 $ 34,028