Exhibit 99
[Eagle Bancorp, Inc. Logo Omitted]
PRESS RELEASE EAGLE BANCORP, INC.
FOR IMMEDIATE RELEASE CONTACT:
Ronald D. Paul
January 19, 2005 301.986.1800
EAGLE BANCORP, INC. ANNOUNCES 59% INCREASE IN NET EARNINGS
FOR FULL YEAR 2004 OVER 2003
BETHESDA, MD. Eagle Bancorp, Inc. (Nasdaq: EGBN), the parent company of
EagleBank, today announced net income of $5.1 million for the year ended
December 31, 2004, compared to $3.2 million for the year ended December 31,
2003, an increase of 59%. On a per-share basis, the Company earned $0.94 per
basic share and $0.90 per diluted share for 2004 as compared to $0.82 per basic
share and $0.77 cents per diluted share for 2003. Comparisons in earnings per
share between 2004 and 2003 are affected by an increase in the number of
outstanding shares resulting from the issuance of approximately 2.4 million
shares in August 2003. For the full year 2004, the Company reported a return on
average assets (ROAA) of 1.04%. This is the first time the Company has reported
a ROAA in excess of 1.00%. For the year 2003, the ROAA was .86%. Return on
average equity was 9.16% for the full year 2004, as compared to 9.45% for 2003.
This ratio was affected by the larger average capital base during 2004 resulting
from the August 2003 issuance of shares. Average equity was 11.38% of average
assets for 2004 as compared to 9.05% for 2003.
Net earnings for the full year 2004 were positively affected by strong growth in
loans and deposits, an improved net interest margin, continuing favorable asset
quality and good growth in non-interest income revenues.
For the fourth quarter of 2004, net income was $1.8 million ($0.34 per basic
share and $0.32 per diluted share) as compared to $815 thousand ($0.15 per basic
share and $0.15 per diluted share) for the same quarter in 2003, representing a
125% increase.
A number of factors contributed to the very strong fourth quarter results, which
contributed significantly to the Company's record earnings for the full year
2004. As anticipated by management, a problem credit of approximately $2.2
million was resolved in the fourth quarter with the loan being paid in full.
This resolution allowed the Company to recognize approximately $200 thousand of
pre-tax non-recurring income from the recovery of collection expenses advanced
in prior periods, default interest and the recognition of late charges
accumulated on the loan account.
Both lending and deposit activity were strong in the fourth quarter, and
permitted the Company's net interest income to benefit from increased volumes,
in addition to the improved net interest margin discussed below. Non-interest
income in the fourth quarter of 2004 was $1.3 million compared to $803 thousand
in the fourth quarter of 2003. This increase was due primarily to increased
amounts of gains on the sale of both SBA loans, where EagleBank is a leading
lender in its marketplace, and increased amounts of gains on the sale of
residential mortgage loans. These same factors together with increases in the
amount of gains on the sale of investment securities represented the primary
increases for the full year 2004 over 2003 in the noninterest income category.
Throughout the year 2004, the Company has maintained a favorable net interest
margin, and as expected, experienced an increased net interest margin as
interest rates began to rise during 2004. For the year 2004, the Company's net
interest margin improved to 4.36% compared to 4.14% for the year 2003. Deposit
and loan growth were particularly strong in the fourth quarter, with deposits
increasing 12%, compared to an increase for the full year 2004 of 38%, while
loans increased 14% in the fourth quarter, compared to an increase for the full
year 2004 of 31%. The Company was in part able to improve the net interest
margin, through continued reliance on core deposits.
A significant factor in the Company achieving its 2004 results is the quality of
its assets. The quality of the loan portfolio has allowed management to moderate
the provision for possible credit losses. The ratio of non-performing loan to
total loans was just 0.03% at December 31, 2004 as compared to .21% at December
31, 2003 and the ratio of net loan losses to average loans was just 0.01% for
the full year 2004 as compared to .10% for the year of 2003. The provision for
loan losses was $675 thousand for the full year 2004 as compared to $1.2 million
for the year of 2003. At December 31, 2004, the allowance for credit losses
represented 1.02% of loans outstanding, as compared to 1.16% at December 31,
2003.
The Company reported total assets at December 31, 2004 of $553 million compared
to $443 million at December 31, 2003, a 25% increase. At December 31, 2004,
total deposits amounted to $462 million, representing a 38% increase over
deposits of $336 million at December 31, 2003, while total loans increased to
$416 million at December 31, 2004 from $318 million at December 31, 2003, a 31%
increase.
"We are extremely pleased to report the strong performance of Eagle Bancorp in
2004", noted both Leonard Abel, Chairman and Ronald Paul, President and CEO of
Eagle Bancorp, Inc. "We take particular pride in the quality of assets managed
by the Company, which receives ongoing attention by management and the Board.
The strong loan growth experienced in the fourth quarter of 2004 is continuing
in the first quarter of 2005 and should contribute favorably to 2005 results. "
The Summary of Financial Information presented on the following pages provides
more detail of the Company's performance for the year ended December 31, 2004 as
compared to 2003. Persons wishing additional information should refer to the
Company's Form 10K report to be filed with the Securities and Exchange
Commission on or before March 15, 2005.
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
Statement of Condition Highlights
(in thousands) DECEMBER 31, 2004 SEPTEMBER 30, 2004 DECEMBER 31, 2003
----------------- ------------------ -----------------
UNAUDITED UNAUDITED AUDITED
----------------- ------------------ -----------------
ASSETS
Cash and cash equivalents $ 31,100 $ 50,116 $ 25,103
Interest bearing deposits with other banks 9,594 9,612 4,332
Federal funds sold 15,035 -- --
Investment securities available for sale 64,098 65,696 82,581
Loans held for sale 2,208 3,138 3,649
Loans 415,509 363,823 317,533
Less: Allowance for credit losses (4,240) (4,176) (3,680)
Loans, net 411,269 359,647 313,853
Other assets 19,979 19,479 13,479
TOTAL ASSETS $ 553,283 $ 507,688 $ 442,997
LIABILITIES AND STOCKHOLDERS' EQUITY
Non interest bearing deposits $ 130,309 $ 113,730 $ 90,468
Interest bearing deposits 331,978 297,291 245,046
Total deposits 462,287 411,021 335,514
Federal funds purchased and securities sold
under repurchase agreements 23,983 27,370 38,454
Other borrowings 6,333 11,443 14,588
Other liabilities 2,244 1,376 1,429
Total liabilities 494,897 451,210 389,985
Stockholders' equity 58,436 56,478 53,012
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 553,283 $ 507,688 $ 442,997
EAGLE BANCORP, INC.
STATEMENTS OF INCOME HIGHLIGHTS
TWELVE MONTHS ENDED THREE MONTHS ENDED
(in thousands) DECEMBER 31, DECEMBER 31,
------------------------------- --------------------------------
2004 2003 2004 2003
(UNAUDITED) (AUDITED) (UNAUDITED) (UNAUDITED)
Total interest income $ 24,195 $ 18,404 $ 7,060 $ 5,044
Total interest expense 4,328 3,953 1,200 905
Net interest income 19,867 14,451 5,860 4,139
Provision for credit losses 675 1,175 218 445
Noninterest income 3,858 2,936 1,254 803
Noninterest expense 15,057 11,094 3,971 3,174
Income before incomes taxes 7,993 5,118 2,925 1,323
Income tax expense 2,906 1,903 1,090 508
Net income $ 5,087 $ 3,215 $ 1,835 $ 815
Per Share Data:
Earnings per share, basic $ 0.94 $ 0.82 $ 0.34 $ 0.15
Earnings per share, diluted 0.90 0.77 0.32 0.15
Shares outstanding at period end 5,421,730 5,359,303 5,421,730 5,359,303
Weighted average shares outstanding, basic 5,403,616 3,932,004 5,412,785 5,356,379
Weighted average shares outstanding, diluted 5,661,951 4,166,128 5,680,169 5,614,773
Book value per share at period end $ 10.78 $ 9.89 $ 10.78 $ 9.89
EAGLE BANCORP, INC.
Financial Ratios and Average Balances
YEARS ENDED
DECEMBER 31,
-------------------------------
PERFORMANCE RATIOS: 2004 2003
(ANNUALIZED) (UNAUDITED) (AUDITED)
Return on average assets 1.04% 0.86%
Return on average equity 9.16% 9.45%
Net interest margin 4.35% 4.14%
Efficiency ratio 64.00% 63.34%
OTHER RATIOS:
Allowance for credit losses to total loans 1.02% 1.16%
Non performing loans to total loans 0.03% 0.21%
Net charge-offs (annualized) to average loans 0.01% 0.10%
Average equity to average assets 11.38% 9.05%
Tier 1 capital ratio 12.43% 15.30%
Total capital ratio 13.33% 16.40%
AVERAGE BALANCES:
Assets $ 487,853 $ 375,802
Earning assets $ 455,979 $ 349,157
Loans $ 353,537 $ 266,811
Deposits $ 397,788 $ 292,953
Stockholders' equity $ 55,507 $ 34,028