Exhibit 99
[Eagle Bancorp, Inc. Logo Omitted]
PRESS RELEASE EAGLE BANCORP, INC.
FOR IMMEDIATE RELEASE CONTACT:
Ronald D. Paul
January 19, 2006 301.986.1800
EAGLE BANCORP, INC. ANNOUNCES 48% INCREASE IN NET INCOME
FOR YEAR 2005 OVER 2004
BETHESDA, MD. Eagle Bancorp, Inc. (Nasdaq: EGBN), the parent company of
EagleBank, today announced net income of $7.5 million for the year ended
December 31, 2005, compared to $5.1 million for the year ended December 31,
2004, an increase of 48%. On a per-share basis, the Company earned $1.06 per
basic share and $1.00 per diluted share for 2005, as compared to $0.72 per basic
share and $0.69 cents per diluted share for 2004.
At December 31, 2005, the Company's total assets amounted to $672 million,
compared to $553 million at December 31, 2004, a 21% increase; while total
deposits amounted to $569 million at December 31, 2005, representing a 23%
increase over deposits of $462 million at December 31, 2004; total loans
increased to $549 million at December 31, 2005 from $416 million at December 31,
2004, a 32% increase, and total stockholders' equity totaled $65 million at
December 31, 2005, versus $59 million at December 31, 2004, an 11% increase.
For the full year 2005, the Company reported a return on average assets of 1.24%
as compared to 1.04% for the year of 2004. Return on average equity was 12.25%
for the full year 2005, as compared to 9.16% for 2004. Average equity was 10.09%
of average assets for 2005 as compared to 11.38% for 2004.
Net income for the full year 2005 was favorably affected by strong growth in
both loans and core deposits, an increase in the net interest margin, continued
favorable asset quality trends, and improvements in productivity as measured by
the efficiency ratio.
For the fourth quarter of 2005, net income was $2.1 million ($0.29 per basic
share and $0.27 per diluted share) as compared to $1.8 million ($0.26 per basic
share and $0.25 per diluted share) for the same quarter in 2004, representing a
13% increase.
"Growth in assets, loans, core deposits and client relationships continued at
EagleBank for the fourth quarter of 2005 and capped another outstanding year of
performance for the Company", noted Leonard L. Abel, Chairman of Eagle Bancorp
and Ronald D. Paul, President and CEO of Eagle Bancorp. "The opportunities in
building quality banking relationships in our primary marketplace of Montgomery
County, Maryland and Washington, D.C. continue. We are quite pleased with our
growing deposit and loan businesses, and a continuing favorable net interest
margin result thru December 31, 2005. Furthermore, our efficiency ratio improved
for the full year 2005 to 57.95% from 63.30% in 2004. We remain committed to
growing our franchise, which includes focusing on outstanding asset quality as
well as making investments in our infrastructure to support a growing
organization", noted Messrs. Abel and Paul.
For the year 2005, net interest income increased 45% over 2004, owing to
favorable average earning asset growth of 26% and a net interest margin of 4.99%
as compared to 4.35% for the full year 2004. Total non-interest income increased
from $3.8 million in 2004 to $4.0 million in 2005, a 7% increase. For 2005,
non-interest income included net investment gains of $0.3 million, as compared
to $0.5 million of net investment gains in 2004. Excluding net investment gains,
non-interest income was $3.7 million for 2005, versus $3.3 million for 2004, a
13% increase. This improvement was due substantially to higher amounts of gains
on the sale of the guaranteed portion of SBA loans and SBA loan servicing fees.
Non-interest expenses amounted to $19.0 million for the year 2005 as compared to
$15.0 million for the year of 2004, a 27% increase. The increase in non-interest
expenses was due substantially to a larger staff and related personnel costs,
higher amounts of incentive compensation, new banking offices, increases in
marketing costs and additional professional and consulting fees. The provision
for credit losses was $1.8 million for 2005 as compared to $0.7 million for
2004, a 173% increase. This increase was due to substantial growth in the loan
portfolio during 2005. At December 31, 2005, the allowance for credit losses
represented 1.09% of total loans as compared to 1.02% of total loans at December
31, 2004.
A continuing significant factor in the Company achieving its 2005 results is the
quality of its assets. The ratio of non-performing loan to total loans was just
0.09% at December 31, 2005 and the ratio of net loan losses to average loans was
just 0.03% for the full year 2005, both favorable credit quality positions.
For the fourth quarter of 2005, net interest income increased 33% due to a 22%
increase in average earning assets in the fourth quarter of 2005 as compared to
2004 and an improved net interest margin to 4.95% for the fourth quarter of 2005
as compared to 4.56% for the fourth quarter of 2004. Owing to an absence of net
investment gains in the fourth quarter of 2005, total non-interest income
decreased from $1.1 million for the fourth quarter of 2004 to $0.8 million in
2005, a 28% decrease. For the fourth quarter of 2005, non-interest income
included a modest net investment loss of $2 thousand as compared a $0.3 million
net investment gains in 2004. Excluding net investment gains, non-interest
income was $0.8 million for the fourth quarter of 2005 as compared to $0.9
million for the fourth quarter of 2004. Non-interest expenses amounted to $4.9
million for the fourth quarter of 2005 as compared to $3.9 million for the same
period in 2004 2004, a 26% increase. This increase was due substantially to the
same factors mentioned above that impacted the full year 2005 over 2004.
Throughout the year 2005, the Company has maintained a favorable net interest
margin, as its balance sheet was well positioned to benefit from market interest
rate increases which occurred throughout 2005. Additionally, very strong loan
growth throughout 2005 was accompanied by growth in core deposits. The Bank's
reliance on sources of funds other than core deposits declined during 2005.
Eagle Bancorp paid a dividend of $.07 per share for the fourth 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 year and three months ended
December 31, 2005 as compared to 2004. 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, 2006.
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, 2005 SEPTEMBER 30, 2005 DECEMBER 31, 2004
------------------------ ---------------------- ----------------------
UNAUDITED UNAUDITED AUDITED
------------------------ ---------------------- ----------------------
ASSETS
Cash and due from banks $ 16,662 $ 17,639 $ 31,100
Interest bearing deposits with other banks and other
short-term investments 11,231 12,015 9,594
Federal funds sold 6,102 30,051 15,035
Investment securities available for sale, at fair
value 68,050 63,887 64,098
Loans held for sale 2,924 2,327 2,208
Loans 549,212 504,290 415,509
Less: allowance for credit losses (5,985) (5,496) (4,240)
Premises and equipment, net 5,774 5,744 5,726
Accrued interest, taxes and other assets 18,282 16,562 14,423
------------------------ ---------------------- ----------------------
TOTAL ASSETS $ 672,252 $ 647,019 $ 553,453
======================== ====================== ======================
LIABILITIES AND STOCKHOLDERS' EQUITY
Non interest bearing deposits $ 165,103 $ 140,554 $ 130,309
Interest bearing deposits 403,791 405,008 331,978
------------------------ ---------------------- ----------------------
Total deposits 568,894 545,562 462,287
Securities sold under repurchase agreements 32,139 31,470 23,983
Other borrowings - 4,000 6,333
Other liabilities 6,256 2,400 2,316
------------------------ ---------------------- ----------------------
Total liabilities 607,289 583,432 494,919
Stockholders' equity 64,963 63,587 58,534
------------------------ ---------------------- ----------------------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 672,252 $ 647,019 $ 553,453
======================== ====================== ======================
EAGLE BANCORP, INC.- Statements of Income
Highlights
(in thousands)
TWELVE MONTHS ENDED THREE MONTHS ENDED
DECEMBER 31, DECEMBER 31,
----------------------------------------- -----------------------------------------
2005 2004 % 2005 2004 %
(UNAUDITED) (AUDITED) (UNAUDITED) (UNAUDITED)
Total interest income $ 36,726 $ 24,195 52% $ 10,606 $ 7,060 50%
Total interest expense 8,008 4,328 85% 2,824 1,200 135%
--------------- --------------- --------- ---------------- -------------- ---------
Net interest income 28,718 19,867 45% 7,782 5,860 33%
--------------- --------------- --------- ---------------- -------------- ---------
Provision for credit losses 1,843 675 173% 532 218 144%
Noninterest income before investment gains
(losses) 3,719 3,300 13% 835 889 -6%
Investment gains (losses) 279 453 -38% (2) 260 n/m
Noninterest expense 18,960 14,952 27% 4,855 3,866 26%
--------------- --------------- --------- ---------------- -------------- ---------
Income before income tax expense 11,913 7,993 49% 3,228 2,925 10%
Income tax expense 4,369 2,906 50% 1,163 1,090 7%
--------------- --------------- --------- ---------------- -------------- ---------
Net income $ 7,544 $ 5,087 48% $ 2,065 $ 1,835 13%
=============== =============== ========= ================ ============== =========
Per Share Data (1):
Earnings per share, basic $ 1.06 $ 0.72 $ 0.29 $ 0.26
Earnings per share, diluted $ 1.00 $ 0.69 $ 0.27 $ 0.25
Shares outstanding at period end 7,184,891 7,048,249 7,184,891 7,048,249
Weighted average shares outstanding, basic 7,117,446 7,024,701 7,176,828 7,043,906
Weighted average shares outstanding, diluted 7,557,775 7,360,707 7,610,141 7,397,506
Book value per share at period end $ 9.04 $ 8.29 $ 9.04 $ 8.29
(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 1.24% 1.04%
Return on average equity 12.25% 9.16%
Net interest margin 4.99% 4.35%
Efficiency ratio (2) 57.95% 63.30%
Other Ratios:
Allowance for credit losses to total loans 1.09% 1.02%
Non performing loans to total loans 0.09% 0.04%
Net charge-offs (recoveries) to average loans 0.03% 0.03%
Average equity to average assets 10.09% 11.38%
Tier 1 leverage Ratio 9.93% 11.98%
Total risk based capital ratio 12.05% 13.45%
Average Balances (in thousands):
Total assets $ 610,245 $ 487,853
Total earning assets $ 575,198 $ 455,979
Total loans (3) $ 479,311 $ 353,537
Total deposits $ 512,416 $ 397,788
Total stockholders' equity $ 61,563 $ 55,507
(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