Exhibit 99
[Eagle Bancorp, Inc. Logo Omitted]
PRESS RELEASE EAGLE BANCORP, INC.
FOR IMMEDIATE RELEASE CONTACT:
Ronald D. Paul
October 17, 2005 301.986.1800
EAGLE BANCORP, INC. ANNOUNCES 68% INCREASE IN EARNINGS FOR THE FIRST NINE
MONTHS OF 2005 WITH ASSETS EXCEEDING
$647 MILLION
BETHESDA, MD. Eagle Bancorp, Inc. (Nasdaq: EGBN), the parent company of
EagleBank, today announced net income of $5.5 million for the nine months ended
September 30, 2005, compared to $3.3 million for the first nine months of 2004,
an increase of 68%. On a per-share basis, the Company earned $0.77 per basic
share and $0.73 per diluted share for 2005, as compared to $0.46 per basic share
and $0.44 cents per diluted share for 2004.
For the third quarter of 2005, the Company earned $2.3 million, as compared to
$1.0 million for the third quarter of 2004, a 127% increase. On a per-share
basis, the Company earned $0.32 per basic share and $0.30 per diluted share for
the third quarter of 2005, as compared to $0.14 per share for both basic and
fully diluted shares for the same period in 2004.
"Our growth in assets, loans and deposits continues and was coupled with
favorable financial performance for Eagle Bancorp for the first nine months and
third quarter of 2005", noted Leonard L. Abel, Chairman of Eagle Bancorp and
Ronald D. Paul, President and CEO of Eagle Bancorp. "We are quite pleased with
our balance sheet growth, and a continuing favorable net interest margin result.
Furthermore, non-interest revenue has shown increases and productivity, as
measured by the efficiency ratio, has improved in 2005 over 2004. We are
committed to a balanced approach to managing the Company, which includes
focusing on solid asset quality and making investment in infrastructure to
support a growing organization", added Abel and Paul.
For the nine months ended September 30, 2005, the Company reported an annualized
return on average assets (ROAA) of 1.23% as compared to 0.92% for the first nine
months of 2004; while the annualized return on average equity (ROAE) was 12.07%,
as compared to 7.91% for the same period in 2004.
Several factors contributed to the favorable financial results. Both loan and
deposit activity were strong in the period, and together with an improved net
interest margin, resulted in the Company's net interest income increasing to
$20.9 million from $14.0 million for the first nine months of 2005 over 2004, a
49% gain and to $7.5 million from $5.0 million for the third quarter of 2005 as
compared to the same period in 2004, also a 49% gain. The Bank's asset/liability
management position has allowed it to benefit from the increase in market
interest rates in the January to September period. For the first nine months of
2005, the net interest margin was 5.01% as compared to 4.27% for the first nine
months in 2004.
Non-interest income for the first nine months of 2005 was $3.2 million compared
to $2.6 million in the first nine months of 2004, a 22% increase. This increase
in non-interest income was due primarily to increased amounts of gains on the
sale of SBA loans and related service fees, where EagleBank is the leading
community bank lender in its marketplace and to higher net investment gains. For
the three months ended September 30, 2005, noninterest income increased 78% to
$1.2 million from $697 thousand in the same period in 2004. The primary reason
for the increase was $269 thousand of net investment gains in the third quarter
of 2005, as compared to a $60 thousand net investment loss for the same period
in 2004. Other increases in the third quarter were due to increases in gains on
the sale of SBA loans and related service fees.
Non-interest expenses were $14.1 million for the first nine months of 2005, as
compared to $11.1 million for 2004, a 27% increase. The primary reasons for this
increase were increases in personnel and related benefit cost increases, higher
incentive compensation, increased occupancy cost, due in part to new banking
offices, and higher marketing, data processing and professional fees 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 nine months of 2005 to 58.52% from 66.74% for the same period in 2004.
For the three months ended September 30, 2005, noninterest expenses increased
19% to $4.7 million from $4.0 million for the same period in 2004. This increase
was attributed to the same factors mentioned above for the nine month period.
Asset quality remained favorable in the period. The Company recorded net
charge-offs of just $53 thousand for the first nine months of 2005 (.02% of
average loans outstanding), as compared to net recoveries of $39 thousand for
the first nine months of 2004. The ratio of non-performing loans to total loans
was .04% at September 30, 2005, as compared to .71% at September 30, 2004. The
provision for loan loss was $1.3 million for the first nine months in 2005 as
compared to $457 thousand for 2004; the increase due substantially to growth in
the loan portfolio over the past twelve months. At September 30, 2005, the
allowance for credit losses represented 1.09% of loans outstanding, as compared
to 1.15% at September 30, 2004. For the three months ended September 30, 2005,
the provision for loan losses was $424 thousand as compared to $227 for the
third quarter in 2004.
At September 30, 2005, total assets were $647 million compared to $508 million
at September 30, 2004, a 27% increase. Total deposits amounted to $546 million
at September 30, 2005, a 33% increase over deposits of $411 million at September
30, 2004, while total loans increased to $504 million at September 30, 2005,
from $364 million at September 30, 2004, a 38% increase.
Eagle Bancorp paid a dividend of $.07 per share for the third quarter of 2005.
The quarterly dividend commenced 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 three and nine months ended
September 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 second 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
(in thousands) SEPTEMBER 30, 2005 DECEMBER 31, 2004 SEPTEMBER 30, 2004
------------------------ ---------------------- ----------------------
UNAUDITED AUDITED UNAUDITED
------------------------ ---------------------- ----------------------
ASSETS
Cash and cash equivalents $ 29,196 $ 31,100 $ 38,204
Interest bearing deposits with other banks 396 9,594 9,612
Federal funds sold 30,051 15,035 -
Investment securities available for sale 63,949 64,098 77,606
Loans held for sale 2,327 2,208 3,138
Loans 504,290 415,509 363,824
Less: Allowance for credit losses (5,496) (4,240) (4,176)
Premises and equipment, net 5,744 5,726 5,425
Other assets 16,562 14,423 14,054
------------------------ ---------------------- ----------------------
TOTAL ASSETS $ 647,019 $ 553,453 $ 507,687
======================== ====================== ======================
LIABILITIES AND STOCKHOLDERS' EQUITY
Non interest bearing deposits $ 140,554 $ 130,309 $ 113,730
Interest bearing deposits 405,008 331,978 297,291
------------------------ ---------------------- ----------------------
Total deposits 545,562 462,287 411,021
Federal funds purchased and securities sold
under repurchase agreements 31,470 23,983 27,370
Other borrowings 4,000 6,333 11,443
Other liabilities 2,400 2,316 1,375
------------------------ ---------------------- ----------------------
Total liabilities 583,432 494,919 451,209
Stockholders' equity 63,587 58,534 56,478
------------------------ ---------------------- ----------------------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 647,019 $ 553,453 $ 507,687
======================== ====================== ======================
EAGLE BANCORP, INC.
Statements of Income Highlights
(in thousands) NINE MONTHS ENDED THREE MONTHS ENDED
SEPTEMBER 30, SEPTEMBER 30,
--------------------------------------- ---------------------------------------
2005 2004 % 2005 2004 %
(UNAUDITED) (UNAUDITED) (UNAUDITED) (UNAUDITED)
Total interest income $ 26,120 $ 17,135 52% $ 9,758 $ 6,146 59%
Total interest expense 5,184 3,128 66% 2,242 1,115 101%
--------------- --------------- ------- --------------- -------------- --------
Net interest income 20,936 14,007 49% 7,516 5,031 49%
--------------- --------------- ------- --------------- -------------- --------
Provision for credit losses 1,311 457 187% 424 227 87%
Noninterest income before investment gains
(losses) 2,884 2,411 20% 970 757 28%
Investment gains (losses) 281 193 46% 269 (60) n/m
Noninterest expense 14,105 11,086 27% 4,729 3,962 19%
--------------- --------------- ------- --------------- -------------- --------
Income before income tax expense 8,685 5,068 71% 3,602 1,539 134%
Income tax expense 3,206 1,816 77% 1,332 539 147%
--------------- --------------- ------- --------------- -------------- --------
Net income $ 5,479 $ 3,252 68% $ 2,270 $ 1,000 127%
=============== =============== ======= =============== ============== ========
Per Share Data (1):
Earnings per share, basic $ 0.77 $ 0.46 $ 0.32 $ 0.14
Earnings per share, diluted $ 0.73 $ 0.44 $ 0.30 $ 0.14
Shares outstanding at period end 7,174,343 7,030,256 7,174,343 7,030,256
Weighted average shares outstanding, basic 7,093,486 7,018,229 7,119,872 7,028,567
Weighted average shares outstanding, diluted 7,532,690 7,328,545 7,574,063 7,378,229
Book value per share at period end $ 8.86 $ 8.03 $ 8.86 $ 8.03
(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 1.23% 0.92%
Return on average equity 12.07% 7.91%
Net interest margin 5.01% 4.27%
Efficiency ratio (2) 58.52% 66.74%
Other Ratios:
Allowance for credit losses to total loans 1.09% 1.15%
Non performing loans to total loans 0.04% 0.71%
Net charge-offs (recoveries) to average loans 0.02% -0.02%
Average equity to average assets 10.22% 11.68%
Tier 1 leverage Ratio 10.18% 12.00%
Total risk based capital ratio 12.56% 14.50%
Average Balances (in thousands):
Total assets $ 593,496 $ 469,357
Total earning assets $ 558,956 $ 437,651
Total loans (3) $ 463,576 $ 341,559
Total deposits $ 495,318 $ 380,866
Total stockholders' equity $ 60,668 $ 54,826
(2) Computed by dividing noninterest expense by the sum of net interest
income and noninterest income and investment gains (losses)
(3) Includes loans held for sale