Exhibit 99
[Eagle Bancorp, Inc. Logo Omitted]
PRESS RELEASE EAGLE BANCORP, INC.
FOR IMMEDIATE RELEASE CONTACT:
Ronald D. Paul
July 18, 2005 301.986.1800
EAGLE BANCORP, INC. ANNOUNCES 42% INCREASE IN EARNINGS FOR THE FIRST SIX
MONTHS OF 2005 WITH ASSETS EXCEEDING
$600 MILLION
BETHESDA, MD. Eagle Bancorp, Inc. (Nasdaq: EGBN), the parent company of
EagleBank, today announced net income of $3.2 million for the six months ended
June 30, 2005, compared to $2.3 million for the first six months of 2004, an
increase of 42%. On a per-share basis, the Company earned $0.45 per basic share
and $0.43 per diluted share for 2005, as compared to $0.32 per basic share and
$0.31 cents per diluted share for 2004.
For the second quarter of 2005, the Company earned $1.6 million ($0.22 per basic
share and $0.21 per diluted share), as compared to $1.1 million ($0.15 per basic
share and diluted share) for the second quarter of 2004, a 45% increase.
"We are extremely pleased to report continuing strong financial results for
Eagle Bancorp for the first half and second quarter of 2005", noted Leonard L.
Abel, Chairman of Eagle Bancorp, Inc. and Ronald D. Paul, President and CEO of
Eagle Bancorp, Inc. "Growth in both deposits and loans and a favorable net
interest margin comparison continue to propel increases in revenues and net
earnings. Asset quality remains strong and the Company continues to make
investment in its infrastructure to support a growing organization, while
managing its overall costs as measured by the efficiency ratio."
For the six months ended June 30, 2005, the Company reported an annualized
return on average assets (ROAA) of 1.12% as compared to 0.99% for the first six
months of 2004; while the annualized return on average equity (ROAE) was 10.83%,
as compared to 8.30% for the same period in 2004.
A number of factors contributed to the very strong first six month results. Both
lending and deposit activity were strong in the period, and resulted in strong
growth in net interest income due to both increased volume, and an improved net
interest margin over the prior period. The Bank's asset/liability management
position has allowed it to benefit from the continued increase in market
interest rates in the January to June period. For the first six months of 2005,
the net interest margin was 4.99% as compared to 4.23% for the first six months
in 2004. Non-interest income for the first six months of 2005 was $1.9 million
compared to $1.9 million in the first six months of 2004. Excluding securities
gains of $12 thousand during the first six months of 2005 and $253 thousand
during the same period in 2004, noninterest income increased 16%. This increase
in noninterest income exclusive of securities gains was due primarily to
increased amounts of gains on the sale of SBA loans, which increased to $517
thousand for the first six months of 2005, as compared to $241 thousand in the
first six months of 2004. EagleBank is the leading community bank lender in the
Washington D.C. metropolitan area.
Non-interest expenses were $9.4 million for the first six months of 2005, as
compared to $7.1 million for 2004, a 31% increase. The primary reasons for this
increase were increases in staff levels, and related personnel cost increases,
higher incentive compensation, increased occupancy cost, due in part to new
banking offices, and higher marketing and data processing costs associated with
a larger organization. In spite of higher levels of noninterest expenses, the
very strong growth in revenue allowed the efficiency ratio to improve for the
first six months of 2005 to 61.09% from 65.46% for the same period in 2004.
Asset quality remained favorable in the period. The Company recorded net
recoveries of $28 thousand for the first six months of 2005 as compared to net
recoveries of $47 thousand for the first six months of 2004. The ratio of
non-performing loans to total loans was .03% at June 30, 2005 as compared to
..13% at June 30, 2004. The provision for loan loss was $887 thousand for the
first six months in 2005 as compared to $230 thousand for 2004; the increase due
substantially to growth in the portfolio. At June 30, 2005, the allowance for
credit losses represented 1.07% of loans outstanding, as compared to 1.13% at
June 30, 2004.
At June 30, 2005, total assets were $610.1 million compared to $494.0 million at
June 30, 2004, a 23% increase. Total deposits amounted to $516.4 million, at
June 30, 2005, a 28% increase over deposits of $403.2 million at June 30, 2004,
while total loans increased to $481.8 million at June 30, 2005, from $349.0
million at June 30, 2004, a 38% increase.
Eagle Bancorp commenced a quarterly cash dividend of $.07 per share in the first
quarter of 2005, which was also paid for the second quarter of 2005.
The Summary of Financial Information presented on the following pages provides
more detail of the Company's performance for the six and three months ended June
30, 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 in
Chevy Chase, Maryland which is expected to be opened in the first quarter of
2006. 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
Statement of Condition Highlights
JUNE 30, DECEMBER 31, JUNE 30,
(in thousands) 2005 2004 2004
------------------------------------------
UNAUDITED AUDITED UNAUDITED
------------------------------------------
ASSETS
Cash and due from banks $ 24,577 $ 31,100 $ 31,180
Interest bearing deposits with banks and other short term investments 10,689 9,594 5,936
Federal funds sold 2,002 15,035 23,980
Investment securities available for sale, at fair value 71,035 64,098 63,922
Loans held for sale 3,646 2,208 3,866
Loans 481,769 415,509 349,012
Less: allowance for credit losses (5,155) (4,240) (3,957)
Premises and equipment, net 5,962 5,726 5,603
Accrued interest, taxes and other assets 15,575 14,423 14,485
-----------------------------------------
TOTAL ASSETS $ 610,100 $ 553,453 $ 494,027
=========================================
LIABILITIES AND STOCKHOLDERS' EQUITY
Noninterest bearing deposits $ 146,039 $ 130,309 $ 96,252
Interest bearing deposits 370,401 331,978 306,996
-----------------------------------------
Total deposits 516,440 462,287 403,248
Federal funds purchased and securities sold 26,352 23,983 21,906
under repurchase agreements -
Other borrowings 4,333 6,333 12,528
Other liabilities 1,920 2,316 1,623
-----------------------------------------
Total liabilities 549,045 494,919 439,305
Stockholders' equity 61,055 58,534 54,722
-----------------------------------------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 610,100 $ 553,453 $ 494,027
=========================================
EAGLE BANCORP, INC.
Statements of Income Highlights
(in thousands)
SIX MONTHS ENDED THREE MONTHS ENDED
JUNE 30, JUNE 30,
---------------------------- ---------------------------
2005 2004 2005 2004
(UNAUDITED) (UNAUDITED) (UNAUDITED) (UNAUDITED)
----------- ----------- ----------- -----------
Total interest income $ 16,362 $ 10,989 $ 8,652 $ 5,613
Total interest expense 2,942 2,013 1,707 1,044
---------- ---------- ---------- ----------
Net interest income 13,420 8,976 6,945 4,569
---------- ---------- ---------- ----------
Provision for credit losses 887 230 470 76
Noninterest income (before investment gains) 1,913 1,654 874 825
Investment Gains 12 253 12 -
Noninterest expense 9,375 7,124 4,900 3,631
---------- ---------- ---------- ----------
Income before income tax expense 5,083 3,529 2,461 1,687
Income tax expense 1,874 1,277 905 614
---------- ---------- ---------- ----------
Net income $ 3,209 $ 2,252 $ 1,556 $ 1,073
========== ========== ========== ==========
PER SHARE DATA (1):
Earnings per share, basic $ 0.45 $ 0.32 $ 0.22 $ 0.15
Earnings per share, diluted $ 0.43 $ 0.31 $ 0.21 $ 0.15
Shares outstanding at period end 7,095,397 7,025,534 7,085,855 7,025,534
Weighted average shares outstanding, basic 7,085,855 7,016,697 7,092,770 7,023,232
Weighted average shares outstanding, diluted 7,514,477 7,274,391 7,533,336 7,315,565
Book value per share at period end $ 8.60 $ 7.79
(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 25, 2005
EAGLE BANCORP, INC.
Performance Ratios (annualized):
Return on average assets 1.12% 0.99%
Return on average equity 10.83% 8.30%
Net interest margin 4.99% 4.23%
Efficiency ratio (2) 61.09% 65.46%
OTHER RATIOS:
Allowance for credit losses to total loans 1.07% 1.13%
Non performing loans to total loans 0.03% 0.13%
Net charge-offs (annualized) to average loans -0.01% -0.03%
Average equity to average assets 10.37% 11.89%
Tier 1 leverage Ratio 10.61% 12.10%
Total risk based capital ratio 12.46% 16.20%
AVERAGE BALANCES:
Total assets $ 576,109 $ 456,495
Total earning assets $ 542,780 $ 424,259
Total loans $ 443,235 $ 332,108
Total deposits $ 479,639 $ 368,371
Total stockholders' equity $ 59,748 $ 54,297
(2) Computed by dividing noninterest expense by the sum of net interest income
and noninterest income