EX-99 2 b333153ex_99.txt PRESS RELEASE Exhibit 99 [Eagle Bancorp, Inc. Logo Omitted] PRESS RELEASE EAGLE BANCORP, INC. FOR IMMEDIATE RELEASE CONTACT: Ronald D. Paul July 19, 2004 301.986.1800 EAGLE BANCORP, INC. ANNOUNCES 68% INCREASE IN 2ND QUARTER AND 39% INCREASE IN SIX MONTH EARNINGS BETHESDA, MD. Eagle Bancorp, Inc. (Nasdaq: EGBN), the parent company of EagleBank, announces net income of $1.1 million for the quarter and $2.3 million for the six months ended June 30, 2004. The results for the quarter represent a 68% increase over the $639 thousand earned in the second quarter of 2003. The six months results represent a 39% increase over the $1.6 million earned in the first six months of 2003. On a per share basis, the Company earned $0.20 per basic share and $0.19 per diluted share for the second quarter of 2004, as compared to $0.22 per basic and $0.20 per diluted share for the second quarter of 2003. For the six months ending June 30, 2004, the Company earned $0.42 per basic share and $0.40 per diluted share compared to $0.56 per basic and $0.52 per diluted share for the same period in 2003. Earnings per share were affected in both periods of 2004 when compared to the same periods in 2003 by the 85% increase in the number of outstanding shares following the completion of the Company's offering of approximately 2.4 million shares in August 2003. The impact on earnings per share should be reduced in future quarters as the additional capital is further leveraged and deployed in loans and other income producing assets other than low yielding, but highly liquid short term investment securities. The Company reported total assets at June 30, 2004 of $494 million compared to $443 million at December 31, 2003, an11.4% increase. At June 30, 2003 total assets were $421 million. At June 30, 2004 deposits of approximately $403 million represented a 20.1% increase over deposits of $336 million at December 31, 2003, and a 30.8% increase over deposits of $308 million at June 30, 2003. At June 30, 2004, loans (including loans held for sale) increased 9.7% to $353 million from $321 million at December 31, 2003, and 32.3% from $266 million at June 30, 2003. Leonard Abel, Chairman and Ronald Paul, President and CEO of Eagle Bancorp, Inc., are pleased with the results for the first six months and the quarter ending June 30, 2004. They are particularly pleased that the Company has been able to maintain its interest margin above 4% increasing it to 4.23% for the six month period in 2004 from 4.14% for all of 2003 and 4.17% for the first six months of 2003. As a result of the interest rate sensitivity of the Company's asset base the recent 25 basis point increase by the Federal Reserve in the target federal funds rate, and any additional increases, are expected to further improve the Company's interest rate margin. Indirectly contributing to the success of the Company is the excellent level of non performing loans, which stood at the very low percentage of total loans of 0.13% at June 30, 2004, and the fact that recoveries exceeded charge offs by $78 thousand during the six month period in 2004. They are pleased that the Bank was able to open its Dupont Circle branch, located at 1228 Connecticut Avenue, on schedule and expects that this office will complement the existing K Street Office. Reinforcing the Board of Director's belief that the District of Columbia represents significant potential growth and profit opportunities, the Bank executed a lease for a third D. C. branch and regional office at 14th and K Streets adjacent to McPherson Square. That office is expected to open in the first quarter of 2005. The Summary of Financial Information presented on the following pages provides a more comprehensive overview of the Company's performance for the first six months of 2004. Persons wishing additional information should refer to the Company's 10Q report to be filed with the Securities and Exchange Commission on or before August 16, 2004. 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. SUMMARY OF FINANCIAL INFORMATION FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2004 AND JUNE 30, 2003 AND YEAR ENDED DECEMBER 31, 2003 STATEMENTS OF CONDITION HIGHLIGHTS
(in thousands) JUNE 30,2004 JUNE 30,2003 DECEMBER 31, 2003 ------------ ------------- ------------------ UNAUDITED UNAUDITED AUDITED ASSETS Cash and cash equivalents $ 31,180 $ 33,732 $ 25,103 Interest bearing deposits with other banks 5,936 20,755 4,332 Federal funds and cash equivalents 23,980 9,019 -- Investment securities available for sale 63,922 83,392 82,581 Loans held for sale 3,866 4,181 3,649 Loans 349,013 261,392 317,533 Less: Allowance for credit losses (3,957) (2,952) (3,680) Loans, net 345,056 258,440 313,853 Other assets 20,098 11,117 13,479 TOTAL ASSETS $ 494,038 $ 420,636 $ 442,997 LIABILITIES AND STOCKHOLDERS' EQUITY Non interest bearing deposits $ 96,252 $ 81,513 $ 90,468 Interest bearing deposits 306,996 226,986 245,046 Total deposits 403,248 308,499 335,514 Federal funds purchased and securities sold under repurchase agreements 21,906 27,186 38,454 Other borrowings 12,528 26,273 14,588 Other liabilities 1,623 37,110 1,429 Total liabilities 439,305 399,068 389,985 Stockholders' equity 54,733 21,568 53,012 TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 494,038 $ 420,636 $ 442,997
STATEMENTS OF INCOME HIGHLIGHTS
SIX MONTHS ENDED THREE MONTHS ENDED YEAR ENDED JUNE 30, JUNE 30, DECEMBER 31, ------------------------ ------------------------ ---------- 2004 2003 2004 2003 2003 ---------- ---------- ---------- ---------- ---------- UNAUDITED UNAUDITED UNAUDITED UNAUDITED AUDITED Total interest income $ 10,992 $ 8,819 $ 5,616 $ 4,353 $ 18,404 Total interest expense 2,016 2,142 1,047 1,067 3,953 Net interest income 8,976 6,677 4,569 3,286 14,451 Provision for credit losses 230 425 76 201 1,175 Noninterest income 1,907 1,446 825 573 2,936 Noninterest expense 7,124 5,116 3,631 2,651 11,094 Income before incomes taxes 3,529 2,582 1,687 1,007 5,118 Income tax expense 1,277 960 614 368 1,903 Net income $ 2,252 $ 1,622 $ 1,073 $ 639 $ 3,215 PER SHARE DATA: Earnings per share, basic $ 0.42 $ 0.56 $ 0.20 $ 0.22 $ 0.82 Earnings per share, diluted $ 0.40 $ 0.52 $ 0.19 $ 0.20 0.77 Shares outstanding at period end 5,404,257 2,907,174 5,359,303 Weighted average shares outstanding, basic 5,397,459 2,899,359 5,402,486 2,899,036 3,932,004 Weighted average shares outstanding, diluted 5,626,954 3,104,781 5,627,358 3,105,378 4,166,128 Book value at period end $ 10.13 $ 7.44 $ 9.89
FINANCIAL RATIOS AND AVERAGE BALANCE HIGHLIGHTS
SIX MONTHS ENDED JUNE 30, YEAR ENDED --------------------------------- DECEMBER 31, PERFORMANCE RATIOS: 2004 2003 2003 --------------- -------------- ---------------- (ANNUALIZED) UNAUDITED UNAUDITED AUDITED Return on average assets 0.99% 0.93% 0.86% Return on average equity 8.30% 15.52% 9.45% Net interest margin 4.23% 4.17% 4.14% Efficiency ratio 65.50% 62.93% 63.34% OTHER RATIOS: Allowance for credit losses to total loans 1.14% 1.13% 1.16% Non performing loans to total loans 0.13% 0.19% 0.21% Net charge-offs (annualized) to average loans * 0.23% 0.10% Equity to average assets 11.88% 6.20% 9.05% Tier 1 capital ratio 13.62% 8.10% 15.30% Total capital ratio 14.60% 9.20% 16.40% AVERAGE BALANCES: Assets $ 457,096 $ 347,087 $ 375,802 Earning assets $ 423,920 $ 322,946 $ 349,157 Loans $ 332,108 $ 247,527 $ 266,811 Deposits $ 368,361 $ 256,872 $ 263,448 Stockholders' equity $ 54,297 $ 20,900 $ 34,028
* Recoveries exceed credit losses