Exhibit 99
[Eagle Bancorp, Inc. Logo Omitted]
PRESS RELEASE EAGLE BANCORP, INC.
FOR IMMEDIATE RELEASE CONTACT:
Ronald D. Paul
April 14, 2005 301.986.1800
EAGLE BANCORP, INC. ANNOUNCES 40% INCREASE IN NET EARNINGS FOR
FIRST QUARTER OF 2005 OVER 2004
BETHESDA, MD. Eagle Bancorp, Inc. (Nasdaq: EGBN), the parent company of
EagleBank, today announced net income of $1.7 million for the quarter ended
March 31, 2005, compared to $1.2 million for the first quarter of 2004 , an
increase of 40%. On a per-share basis, the Company earned $0.23 per basic share
and $0.22 per diluted share for 2005, as compared to $0.17 per basic share and
$0.16 cents per diluted share for 2004.
"We are extremely pleased to report the continuing strong performance of Eagle
Bancorp in the first quarter of 2005", noted both Leonard Abel, Chairman and
Ronald Paul, President and CEO of Eagle Bancorp, Inc. "Our balance sheet growth
in both deposits and loans was accompanied by increases in revenues and net
earnings. We take particular pride in the quality of assets managed by the
Company. Recurring non-interest sources of revenue, in particular, showed good
growth, aided in part from the start-up of Eagle Land Title, which performs
professional services in connection with loan settlement processes."
For the first quarter of 2005, the Company reported an annualized return on
average assets (ROAA) of 1.20% as compared to 1.08% for the first quarter of
2004; while the annualized return on average equity was 11.32%, as compared to
8.78% for the same quarter in 2004.
A number of factors contributed to the very strong first quarter results. Both
lending and deposit activity were strong in the first quarter, and resulted in
the Company's net interest income growth due to both increased volume, and an
improved net interest margin. The Bank's asset/liability management position has
allowed it to benefit from the continued increase in market interest rates in
the January to March period. For the first quarter of 2005, the net interest
margin was 4.98% as compared to 4.33% for the first quarter in 2004. Recurring
non-interest income for the first quarter of 2005 was $1.0 million compared to
$0.8 million in the first quarter of 2004 (which excludes investment securities
gains of $0.3 million recorded in 2004). This increase in recurring non-interest
income was due primarily to increased amounts of gains on the sale of both SBA
loans, where EagleBank is the leading community bank lender in its marketplace,
and gains on the sale of residential mortgage loans.
Non-interest expenses were $4.5 million for the first quarter of 2005, as
compared to $3.5 million for 2004, a 28% increase. The primary reasons for this
increase were increases in staff levels and related personal cost increases,
increased occupancy cost, due in part to new banking offices, and higher
marketing, data processing and professional fees associated with a larger
organization. The efficiency ratio improved in the first quarter of 2005 to
59.56% from 63.64% for the same period in 2004.
Asset quality remained favorable in the quarter. The Company recorded net
recoveries of $6 thousand for the first quarter of 2005 as compared to net
credit losses of $84 thousand or .10% of average loans for the first quarter of
2004. The ratio of non-performing loan to total loans was .03% at March 31, 2005
as compared to .17% at March 31, 2004. The provision for loan loss was $417
thousand for the first quarter in 2005 as compared to $154 thousand for 2004;
the increase due substantially to growth in the portfolio. At March 31, 2005,
the allowance for credit losses represented 1.07% of loans outstanding, as
compared to 1.14% at March 31, 2004.
At March 31, 2005, total assets were $589.8 million compared to $469.5 million
at March 31, 2004, a 26% increase. Total deposits amounted to $482.9 million, at
March 31, 2005, also representing a 25% increase over deposits of $385.6 million
at March 31, 2004, while total loans increased to $437.1 million at March 31,
2005, from $330.3 million at March 31, 2004, a 32% increase. Eagle Bancorp paid
an initial quarterly cash dividend of $.07 per share in the first quarter of
2005
The Summary of Financial Information presented on the following pages provides
more detail of the Company's performance for the quarter ended March 31, 2005 as
compared to 2004. Persons wishing additional information should refer to the
Company's Form 10K filed with the Securities and Exchange Commission on
March 16, 2005.
Eagle Bancorp is the holding company for EagleBank and its subsidiary, Eagle
Land Title, LLC. EagleBank commenced operations in 1998. The Bank is
headquartered in Bethesda, Maryland, and conducts full service commercial
banking services thru eight offices, located in Montgomery County, Maryland and
Washington, D.C. A lease has been executed for a new community bank office to be
located in Chevy Chase, Maryland. The Company focuses on building relationships
with businesses, professionals and individuals in its marketplace.
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
Consolidated Statement of Condition Highlights
(in thousands) MARCH 31, 2005 DECEMBER 31, 2004 MARCH 31, 2004
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UNAUDITED AUDITED UNAUDITED
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Assets
Cash and cash equivalents $ 23,193 $ 31,100 $ 29,659
Interest bearing deposits with other banks 15,620 9,594 4,981
Federal funds sold 26,064 15,035 17,026
Investment securities available for sale 67,333 64,098 70,459
Loans held for sale 3,671 2,208 4,341
Loans 437,117 415,509 330,253
Less: Allowance for credit losses (4,683) (4,240) (3,750)
Premises and equipment, net 6,176 5,726 4,863
Other assets 15,338 14,423 11,630
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TOTAL ASSETS $ 589,829 $ 553,453 $ 469,462
========= ========= =========
LIABILITIES AND STOCKHOLDERS' EQUITY
Non interest bearing deposits $ 146,376 $ 130,309 $ 93,805
Interest bearing deposits 336,534 331,978 291,835
Total deposits 482,910 462,287 385,640
Federal funds purchased and securities sold 39,498 23,983 13,958
under repurchase agreements --
Other borrowings 5,333 6,333 13,551
Other liabilities 2,448 2,316 1,657
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Total liabilities 530,189 494,919 414,806
Stockholders' equity 59,640 58,534 54,656
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TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 589,829 $ 553,453 $ 469,462
========= ========= =========
EAGLE BANCORP, INC.
Consolidated Statement of Income Highlights
(in thousands)
THREE MONTHS ENDED
MARCH 31,
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2005 2004
(UNAUDITED) (UNAUDITED)
Total interest income $ 7,710 $ 5,376
Total interest expense 1,235 969
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Net interest income 6,475 4,407
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Provision for credit losses 417 154
Noninterest income (before investment gains) (1) 1,039 829
Investment gains -- 253
Noninterest expense 4,475 3,493
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Income before income tax expense 2,622 1,842
Income tax expense 969 663
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Net income $ 1,653 $ 1,179
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(1) includes gains on the sale of SBA loans of $385k in 2005 and $97k in 2004
Per Share Data (1):
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Earnings per share, basic $ 0.23 $ 0.17
Earnings per share, diluted $ 0.22 0.16
Shares outstanding at period end 7,088,651 7,022,297
Weighted average shares outstanding, basic 7,078,451 7,010,169
Weighted average shares outstanding, diluted 7,494,133 7,345,599
Book value per share at period end $ 8.41 $ 7.78
(1) prior periods adjusted to give retroactive effect to the 1.3 to 1 stock
split in the form of a 30% stock dividend paid on February 28, 2005
EAGLE BANCORP, INC.
Performance Ratios (annualized):
Return on average assets 1.20% 1.08%
Return on average equity 11.32% 8.78%
Net interest margin 4.98% 4.33%
Efficiency ratio (2) 59.56% 63.64%
OTHER RATIOS:
Allowance for credit losses to total loans 1.07% 1.14%
Non performing loans to total loans 0.03% 0.17%
Net charge-offs (annualized) to average loans -0.01% 0.10%
Average equity to average assets 10.57% 12.28%
AVERAGE BALANCES (IN THOUSANDS):
Total assets $ 559,981 $ 438,634
Total earning assets $ 527,291 $ 409,068
Total loans $ 429,095 $ 324,942
Total deposits $ 463,304 $ 347,998
Total stockholders' equity $ 59,208 $ 53,877
(2) computed by dividing noninterest expense by the sum of net interest
income and noninterest income