EX-99 2 b401635_ex99.txt PRESS RELEASE Exhibit 99 [Eagle Bancorp, Inc. Logo Omitted] PRESS RELEASE EAGLE BANCORP, INC. FOR IMMEDIATE RELEASE CONTACT: Ronald D. Paul October 18, 2004 301.986.1800 EAGLE BANCORP, INC. ASSETS EXCEED $500 MILLION THIRD QUARTER EARNINGS GROW 28% OVER 2003 YEAR TO DATE EARNINGS EXCEED 2003 BY 37% BETHESDA, MD. Eagle Bancorp, Inc. (Nasdaq: EGBN), the parent company of EagleBank, announces net income of $1 million for the three months ended September 30, 2004 and $3.3 million for the nine months ended September 30, 2004. The results for the quarter represent a 28% increase over the $778 thousand earned in the third quarter of 2003. The nine month, results represent a 37% increase over the $2.4 million earned in the first nine months of 2003. On a per share basis, the Company earned $0.18 per basic share and $0.18 per diluted share for the third quarter of 2004, as compared to $0.17 per basic and $0.16 per diluted share for the third quarter of 2003. For the nine months ended September 30, 2004, the Company earned $0.60 per basic share and $0.57 per diluted share compared to $0.70 per basic and $0.65 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 Company reported total assets at September 30, 2004 of $508 million compared to $443 million at December 31, 2003, a 14.6% increase. At September 30, 2003 total assets were $402 million. At September 30, 2004, deposits of approximately $411 million represented a 22.3% increase over deposits of $336 million at December 31, 2003, and a 31.3% increase over deposits of $313 million at September 30, 2003. At September 30, 2004, loans (including loans held for sale) increased 14.3% to $367 million from $321 million at December 31, 2003, and 27.0% from $289 million at September 30, 2003. Leonard Abel, Chairman and Ronald Paul, President and CEO of Eagle Bancorp, Inc., are extremely pleased that in just over six years of operation, the Company exceeded $500 million in assets. They offer their thanks to the shareholders for their encouragement, the Company's staff for its effort and the community for the support and encouragement in achieving this significant milestone. While growing to over $500 million in assets, the Company has been consistent in improving profits. They are particularly pleased that the Company has been able to maintain its interest margin above 4%, and actually increasing it to 4.27% for the nine month period in 2004 from 4.14% for all of 2003 and 4.09% for the first nine months of 2003. As a result of the interest rate sensitivity of the Company's asset base, the recent increases by the Federal Reserve in the target federal funds rate and any additional increases, are expected to further improve the Company's net interest rate margin. Indirectly contributing to the success of the Company is a low level of non performing loans. At September 30, 2004, non performing loans stood at 0.86% of total loans compared to 0.16% at September 30, 2003 and 0.21% at December 31, 2003. Non performing loans at September 30, 2004 included one loan of $2.2 million which management believes is well collateralized and expects to be resolved in the fourth quarter of 2004 with no resulting loss to the Company. Exclusive of this credit non performing loans were at 0.25%. The Summary of Financial Information presented on the following pages provides a more comprehensive overview of the Company's performance for the first nine 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 November 15, 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 NINE MONTHS ENDED SEPTEMBER 30, 2004 AND SEPTEMBER 30, 2003 AND YEAR ENDED DECEMBER 31, 2003
STATEMENTS OF CONDITION HIGHLIGHTS SEPTEMBER 30, SEPTEMBER 30, (in thousands) 2004 2003 DECEMBER 31, 2003 ----------------- --------------- ------------------- UNAUDITED UNAUDITED AUDITED --------- --------- ------- ASSETS Cash and cash equivalents $ 50,116 $ 26,340 $ 25,103 Interest bearing deposits with other banks 9,612 4,351 4,332 Federal funds sold - 2,000 - Investment securities available for sale 65,696 70,069 82,581 Loans held for sale 3,138 1,930 3,649 Loans 363,823 287,001 317,533 Less: Allowance for credit losses (4,176) (3,237) (3,680) Loans, net 359,649 283,764 313,853 Other assets 19,479 13,267 13,479 TOTAL ASSETS $ 507,688 $ 401,721 $ 442,997 LIABILITIES AND STOCKHOLDERS' EQUITY Non interest bearing deposits $ 113,730 $ 79,723 $ 90,468 Interest bearing deposits 297,291 233,581 245,046 Total deposits 411,021 313,304 335,514 Federal funds purchased and securities sold under repurchase agreements 27,370 20,009 38,454 Other borrowings 11,443 15,632 14,588 Other liabilities 1,376 875 1,429 Total liabilities 451,210 349,820 389,985 Stockholders' equity 56,478 51,901 53,012 TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 507,688 $ 401,721 $ 442,997
STATEMENTS OF INCOME HIGHLIGHTS NINE MONTHS ENDED THREE MONTHS ENDED YEAR ENDED SEPTEMBER 30, SEPTEMBER 30, DECEMBER 31, ---------------------------- ---------------------------- -------------- 2004 2003 2004 2003 2003 ------------ ------------ ------------ ------------ -------------- UNAUDITED UNAUDITED UNAUDITED UNAUDITED AUDITED Total interest income $ 17,135 $ 13,360 $ 6,146 $ 4,541 $ 18,404 Total interest expense 3,128 3,048 1,115 906 3,953 Net interest income 14,007 10,312 5,031 3,635 14,451 Provision for credit losses 457 730 227 305 1,175 Noninterest income 2,604 2,133 697 687 2,936 Noninterest expense 11,086 7,920 3,962 2,804 11,094 Income before income taxes 5,068 3,795 1,539 1,213 5,118 Income tax expense 1,816 1,395 539 435 1,903 Net income $ 3,252 $ 2,400 $ 1,000 $ 778 $ 3,215 PER SHARE DATA: Earnings per share, basic $ 0.60 $ 0.70 $ 0.18 $ 0.17 $ 0.82 Earnings per share, diluted $ 0.57 $ 0.65 $ 0.18 $ 0.16 0.77 Shares outstanding at period end 5,408,169 5,359,153 5,359,303 Weighted average shares outstanding, basic 5,398,638 3,442,022 5,406,590 4,522,116 3,932,004 Weighted average shares outstanding, diluted 5,657,452 3,671,841 5,640,888 4,742,419 4,166,128 Book value at period end $ 10.45 $ 9.67 $ 9.89
FINANCIAL RATIOS AND AVERAGE BALANCE HIGHLIGHTS NINE MONTHS ENDED YEAR ENDED SEPTEMBER 30, DECEMBER 31, --------------------------------- ---------------- PERFORMANCE RATIOS: 2004 2003 2003 --------------- -------------- ---------------- (ANNUALIZED) UNAUDITED UNAUDITED AUDITED Return on average assets 0.92% 0.88% 0.86% Return on average equity 7.89% 11.50% 9.45% Net interest margin 4.27% 4.09% 4.14% Efficiency ratio 66.74% 63.59% 63.34% OTHER RATIOS: Allowance for credit losses to total loans 1.15% 1.13% 1.16% Non performing loans to total loans 0.86% 0.16% 0.21% Net charge-offs (annualized) to average loans 0.02% 0.13% 0.10% Average equity to average assets 11.71% 7.66% 9.05% Tier 1 capital ratio 14.36% 16.1% 15.30% Total capital ratio 15.42% 17.1% 16.40% AVERAGE BALANCES: Assets $ 469,357 $ 363,047 $ 375,802 Earning assets $ 437,651 $ 337,323 $ 349,157 Loans $ 341,559 $ 256,011 $ 266,811 Deposits $ 380,866 $ 283,228 $ 292,953 Stockholders' equity $ 54,947 $ 27,826 $ 34,028