Eagle Bancorp, Inc. Announces First Quarter Earnings

Apr 16, 2001, 01:00 ET from Eagle Bancorp, Inc.

    BETHESDA, Md., April 16 /PRNewswire/ -- Eagle Bancorp, Inc.
 (Nasdaq: EGBN), the parent company of EagleBank, announced net income of $482
 thousand (23 cents per basic and diluted share) for the three months ended
 March 31, 2001. This compares to net income of $128 thousand (6 cents per
 basic and diluted share) for the same period in 2000. For the quarter ending
 March 31, 2001 the annualized return on assets (ROA) was 1.1% and annualized
 return on equity (ROE) was 12.0%. The reported earnings and returns on assets
 and equity do not include a provision for income taxes since the Company had a
 net operating loss carry forward that offset current income tax expense. It is
 expected that during the second quarter of 2001, the Company will exhaust its
 net operating loss carryforward and will begin accruing income tax expense. As
 a result, second and future quarters' results will be affected by recognition
 of such expense. Management also anticipates the recognition of deferred
 income taxes during the second quarter of 2001.
     The Company reported assets at March 31, 2001 in excess of $182 million
 compared to $125 million at March 31, 2000. At March 31, 2001, deposits and
 customer repurchase agreements totaled approximately $165 million ($111
 million at March 31, 2000) and loans totaled approximately $133 million ($73
 million at March 31, 2000). The year to year growth in assets of 45% and the
 increase in loans as a percentage of assets were the most significant
 contributors to the 276% increase in earnings. From year-end 2000, assets
 increased $18 million ($164 million at December 31, 2000) and deposits and
 customer repurchase agreements have increased a like amount.
     During the quarter loan demand remained strong and loans increased $15
 million from year-end 2000. As the quarter ended, management noted some
 softness in demand, however, the portfolio quality remains very high and the
 Company had no loans on non-accrual. The interest rate reductions implemented
 by the Federal Reserve have effected loan yields reducing the month of March
 2001 yield to 8.78% compared to the month of December 2000 yield of 9.16%.
 However, management has been able to adjust the cost of funds so that spread
 and margin are only slightly effected. Interest spread in the month of March
 was 3.67% compared to December's 3.69% and the margin in the month of March
 was 4.58% compared to December's 4.60%. For the quarter, the average loan
 yield was 8.94%, spread was 3.63% and margin was 4.58%.
     Ronald D. Paul, Chairman of EagleBank, stated, "I am extremely pleased
 with our first quarter results as they reflect the strength in the Company's
 foundation built over the past two and one-half years. With the opening of our
 Washington, D.C. branch, at 20th and K Streets NW, in late May, I have high
 expectations of continuing our growth in both assets and earnings."
 
     EagleBank commenced operations in July 1998. It presently has four offices
 in Montgomery County, Maryland. EagleBank specializes in delivering full
 relationship banking to the business and professional communities. It recently
 formed EagleCapital, a full service commercial loan brokerage/placement
 division. EagleCapital can place a variety of long-term, favorably priced
 commercial mortgages into the conduit and secondary markets. In addition,
 EagleCapital can provide companion or mezzanine financing for such purposes as
 hard construction, tenant improvements or bridge financing.
 
     This press release contains forward looking statements regarding Eagle
 Bancorp's anticipated future results of operations, which are subject to risks
 and uncertainties. Actual future results may differ materially from current
 expectations as a result of changes in general economic conditions, including
 interest rates, competition, loan demand and other factors.
 
                                EAGLE BANCORP, INC.
                                EAGLE BANCORP, INC.
                                   BALANCE SHEETS
                   MARCH 31, 2001 AND 2000 AND DECEMBER 31, 2000
                             (In thousands - unaudited)
 
                                       ASSETS
 
                                      March            March        December
                                       2001             2000          2000
 
     Cash and due from banks          $6,937          $5,530        $9,047
     Federal funds sold               12,785           1,181         2,121
     Investment securities
       available for sale             26,593          42,987        32,398
     Loans (net of allowance
       for credit losses
       of $1,236, $702, $1,142)      131,962          72,359       116,576
     Premises and equipment, net       2,810           2,625         2,624
     Other assets                      1,475             863         1,316
 
       TOTAL ASSETS                 $182,562        $125,545      $164,082
 
                        LIABILITIES AND STOCKHOLDERS' EQUITY
 
     LIABILITIES:
 
     Deposits:
       Noninterest-bearing demand    $26,523         $18,686       $26,232
       Interest-bearing
        transaction accounts          18,860          15,128        18,927
       Savings and money market       52,852          36,746        40,673
       Time, $100,000 or more         33,014          22,003        32,838
       Other time                     22,525          10,337        17,187
         Total deposits              153,774         102,900       135,857
     Customer repurchase agreements   11,346           8,395        11,078
     Short term borrowings               500             100         1,040
     Other liabilities                   600             348           585
       Total liabilities             166,220         111,743       148,560
 
     STOCKHOLDERS' EQUITY:
 
     Common stock, $.01 par value;
       5,000,000 authorized,
       2,062,474 issued and
       outstanding                        21              21            21
     Surplus                          16,479          16,479        16,479
     Accumulated deficit                (873)         (2,285)       (1,355)
     Accumulated other
       comprehensive income (loss)       715            (413)          377
         Total stockholders' equity   16,342          13,802        15,522
 
     TOTAL LIABILITIES AND          $182,562        $125,545      $164,082
     STOCKHOLDERS' EQUITY
 
 
                                EAGLE BANCORP, INC.
                       CONSOLIDATED STATEMENTS OF OPERATIONS
                     THREE MONTHS ENDED MARCH 31, 2001 AND 2000
                             (In thousands - unaudited)
 
                                                        March          March
                                                         2001           2000
 
     INTEREST INCOME:
       Interest and fees on loans                     $ 2,721        $ 1,442
       Taxable interest and dividends
       on investment securities                           507            548
       Interest on federal funds sold                      77            109
         Total interest income                          3,305          2,099
 
     INTEREST EXPENSE:
       Interest on deposits                             1,401            755
       Interest on customer
       repurchase agreements                              105            101
       Interest on short-term borrowings                    3              1
         Total interest expense                         1,509            857
 
     NET INTEREST INCOME                                1,796          1,242
     PROVISION FOR CREDIT LOSSES                           97            123
 
     NET INTEREST INCOME AFTER PROVISION
       FOR CREDIT LOSSES                                1,699          1,119
 
     NONINTEREST INCOME:
       Service charges on deposit accounts                125             45
       Other income                                        42             31
         Total noninterest income                         167             76
 
     NONINTEREST EXPENSES:
       Salaries and employee benefits                     729            587
       Premises and equipment expenses                    269            197
       Advertising                                         51              2
       Office supplies                                     23             17
       Outside data processing                             83             47
       Other expenses                                     229            199
         Total noninterest expenses                     1,384          1,067
 
     NET INCOME BEFORE INCOME TAX BENEFIT                 482            128
 
     INCOME TAX BENEFIT                                     -              -
 
     NET INCOME BEFORE INCOME TAX BENEFIT               $ 482          $ 128
 
     INCOME PER SHARE:
       Basic                                           $ 0.23         $ 0.06
       Diluted                                         $ 0.23         $ 0.06
 
 

SOURCE Eagle Bancorp, Inc.
    BETHESDA, Md., April 16 /PRNewswire/ -- Eagle Bancorp, Inc.
 (Nasdaq: EGBN), the parent company of EagleBank, announced net income of $482
 thousand (23 cents per basic and diluted share) for the three months ended
 March 31, 2001. This compares to net income of $128 thousand (6 cents per
 basic and diluted share) for the same period in 2000. For the quarter ending
 March 31, 2001 the annualized return on assets (ROA) was 1.1% and annualized
 return on equity (ROE) was 12.0%. The reported earnings and returns on assets
 and equity do not include a provision for income taxes since the Company had a
 net operating loss carry forward that offset current income tax expense. It is
 expected that during the second quarter of 2001, the Company will exhaust its
 net operating loss carryforward and will begin accruing income tax expense. As
 a result, second and future quarters' results will be affected by recognition
 of such expense. Management also anticipates the recognition of deferred
 income taxes during the second quarter of 2001.
     The Company reported assets at March 31, 2001 in excess of $182 million
 compared to $125 million at March 31, 2000. At March 31, 2001, deposits and
 customer repurchase agreements totaled approximately $165 million ($111
 million at March 31, 2000) and loans totaled approximately $133 million ($73
 million at March 31, 2000). The year to year growth in assets of 45% and the
 increase in loans as a percentage of assets were the most significant
 contributors to the 276% increase in earnings. From year-end 2000, assets
 increased $18 million ($164 million at December 31, 2000) and deposits and
 customer repurchase agreements have increased a like amount.
     During the quarter loan demand remained strong and loans increased $15
 million from year-end 2000. As the quarter ended, management noted some
 softness in demand, however, the portfolio quality remains very high and the
 Company had no loans on non-accrual. The interest rate reductions implemented
 by the Federal Reserve have effected loan yields reducing the month of March
 2001 yield to 8.78% compared to the month of December 2000 yield of 9.16%.
 However, management has been able to adjust the cost of funds so that spread
 and margin are only slightly effected. Interest spread in the month of March
 was 3.67% compared to December's 3.69% and the margin in the month of March
 was 4.58% compared to December's 4.60%. For the quarter, the average loan
 yield was 8.94%, spread was 3.63% and margin was 4.58%.
     Ronald D. Paul, Chairman of EagleBank, stated, "I am extremely pleased
 with our first quarter results as they reflect the strength in the Company's
 foundation built over the past two and one-half years. With the opening of our
 Washington, D.C. branch, at 20th and K Streets NW, in late May, I have high
 expectations of continuing our growth in both assets and earnings."
 
     EagleBank commenced operations in July 1998. It presently has four offices
 in Montgomery County, Maryland. EagleBank specializes in delivering full
 relationship banking to the business and professional communities. It recently
 formed EagleCapital, a full service commercial loan brokerage/placement
 division. EagleCapital can place a variety of long-term, favorably priced
 commercial mortgages into the conduit and secondary markets. In addition,
 EagleCapital can provide companion or mezzanine financing for such purposes as
 hard construction, tenant improvements or bridge financing.
 
     This press release contains forward looking statements regarding Eagle
 Bancorp's anticipated future results of operations, which are subject to risks
 and uncertainties. Actual future results may differ materially from current
 expectations as a result of changes in general economic conditions, including
 interest rates, competition, loan demand and other factors.
 
                                EAGLE BANCORP, INC.
                                EAGLE BANCORP, INC.
                                   BALANCE SHEETS
                   MARCH 31, 2001 AND 2000 AND DECEMBER 31, 2000
                             (In thousands - unaudited)
 
                                       ASSETS
 
                                      March            March        December
                                       2001             2000          2000
 
     Cash and due from banks          $6,937          $5,530        $9,047
     Federal funds sold               12,785           1,181         2,121
     Investment securities
       available for sale             26,593          42,987        32,398
     Loans (net of allowance
       for credit losses
       of $1,236, $702, $1,142)      131,962          72,359       116,576
     Premises and equipment, net       2,810           2,625         2,624
     Other assets                      1,475             863         1,316
 
       TOTAL ASSETS                 $182,562        $125,545      $164,082
 
                        LIABILITIES AND STOCKHOLDERS' EQUITY
 
     LIABILITIES:
 
     Deposits:
       Noninterest-bearing demand    $26,523         $18,686       $26,232
       Interest-bearing
        transaction accounts          18,860          15,128        18,927
       Savings and money market       52,852          36,746        40,673
       Time, $100,000 or more         33,014          22,003        32,838
       Other time                     22,525          10,337        17,187
         Total deposits              153,774         102,900       135,857
     Customer repurchase agreements   11,346           8,395        11,078
     Short term borrowings               500             100         1,040
     Other liabilities                   600             348           585
       Total liabilities             166,220         111,743       148,560
 
     STOCKHOLDERS' EQUITY:
 
     Common stock, $.01 par value;
       5,000,000 authorized,
       2,062,474 issued and
       outstanding                        21              21            21
     Surplus                          16,479          16,479        16,479
     Accumulated deficit                (873)         (2,285)       (1,355)
     Accumulated other
       comprehensive income (loss)       715            (413)          377
         Total stockholders' equity   16,342          13,802        15,522
 
     TOTAL LIABILITIES AND          $182,562        $125,545      $164,082
     STOCKHOLDERS' EQUITY
 
 
                                EAGLE BANCORP, INC.
                       CONSOLIDATED STATEMENTS OF OPERATIONS
                     THREE MONTHS ENDED MARCH 31, 2001 AND 2000
                             (In thousands - unaudited)
 
                                                        March          March
                                                         2001           2000
 
     INTEREST INCOME:
       Interest and fees on loans                     $ 2,721        $ 1,442
       Taxable interest and dividends
       on investment securities                           507            548
       Interest on federal funds sold                      77            109
         Total interest income                          3,305          2,099
 
     INTEREST EXPENSE:
       Interest on deposits                             1,401            755
       Interest on customer
       repurchase agreements                              105            101
       Interest on short-term borrowings                    3              1
         Total interest expense                         1,509            857
 
     NET INTEREST INCOME                                1,796          1,242
     PROVISION FOR CREDIT LOSSES                           97            123
 
     NET INTEREST INCOME AFTER PROVISION
       FOR CREDIT LOSSES                                1,699          1,119
 
     NONINTEREST INCOME:
       Service charges on deposit accounts                125             45
       Other income                                        42             31
         Total noninterest income                         167             76
 
     NONINTEREST EXPENSES:
       Salaries and employee benefits                     729            587
       Premises and equipment expenses                    269            197
       Advertising                                         51              2
       Office supplies                                     23             17
       Outside data processing                             83             47
       Other expenses                                     229            199
         Total noninterest expenses                     1,384          1,067
 
     NET INCOME BEFORE INCOME TAX BENEFIT                 482            128
 
     INCOME TAX BENEFIT                                     -              -
 
     NET INCOME BEFORE INCOME TAX BENEFIT               $ 482          $ 128
 
     INCOME PER SHARE:
       Basic                                           $ 0.23         $ 0.06
       Diluted                                         $ 0.23         $ 0.06
 
 SOURCE  Eagle Bancorp, Inc.