BETHESDA, Md., April 24 /PRNewswire-FirstCall/ -- Eagle Bancorp,
Inc. (the "Company") (NASDAQ:EGBN), the parent company of
EagleBank, today announced net income of $1.7 million ($0.17 per
basic share and per diluted share) for the three months ended March
31, 2008, compared to $1.7 million ($0.18 per basic share and $0.17
per diluted share) for the three months ended March 31, 2007. "We
are pleased to report solid financial results for Eagle Bancorp,
Inc. for the first quarter of 2008 at a time of substantial stress
in financial markets and a challenging interest rate environment "
noted Ronald D. Paul, President and CEO of Eagle Bancorp, Inc. "In
spite of a continuing difficult interest rate environment, wherein
the Federal Reserve has lowered interest rates sharply to combat a
weakening economic situation, the Company maintained a strong net
interest margin for the first quarter of 2008, and sustained a
long-term trend of growth in our balance sheet" added Mr. Paul.
Growth in average deposits, other funding sources and loans were
the major drivers of the increase in net interest income for the
three months ended March 31, 2008 as compared to the same three
month period ended March 31, 2007. Despite an increase in
non-accrual loans for the three months ended March 31, 2008, asset
quality remains sound with net-charge offs for the three months
ended March 31, 2008 at just .01% of average loans. For the three
months ended March 31, 2008, the Company reported an annualized
return on average assets (ROAA) of 0.77% as compared to 0.88% for
the three months ended March 31, 2007; while the annualized return
on average equity (ROAE) was 7.98%, as compared to 9.23% for the
same period in 2007, the lower ratios were due in large part to a
decline in the net interest margin in the past twelve months. Both
lending and deposit activities showed growth for the three months
ended March 31, 2008 as compared to the same period in 2007, as
average loans increased 15% and average deposits increased by 6%.
Net interest income increased 8% for the three months ended March
31, 2008 over 2007, as the effect of favorable growth was partially
offset by declines in the net interest margin. For the three months
ended March 31, 2008 the net interest margin was 4.19% as compared
to 4.41% for the three months ended March 31, 2007 and 4.30% for
the three months ended December 31, 2007. This margin compression
is a challenge that is facing the banking industry in general. The
Company's net interest margin remains favorable to peer banking
companies. The provision for credit losses was $720 thousand for
the three months ended March 31, 2008 as compared to $303 thousand
for the three months ended March 31, 2007. The higher provisioning
in the first quarter of 2008 as compared to 2007 is primarily
attributable to loan growth and in lesser part to changes in the
portfolio mix and increases in non-performing and problem loans.
For the three months ended March 31, 2008, the Company recorded net
charge-offs of just $25 thousand (0.01% of average loans), as
compared to $413 thousand of net charge-offs (0.26% of average
loans) for the three months ended March 31, 2007. The ratio of
non-performing loans to total loans increased to 1.54% at March 31,
2008, as compared to 0.74% at December 31, 2007 and 0.25% at March
31, 2007. The increase in non-performing loans at March 31, 2008 as
compared to December 31, 2007 relates primarily to two commercial
real loan relationships which include commercial real estate loans
secured by residential properties which have experienced cost
overruns and/or delays in the development and construction
processes. Management believes that the Company is adequately
reserved for these non-performing real estate secured loans. At
March 31, 2008, the allowance for credit losses represented 1.15%
of loans outstanding, as compared to 1.12% at December 31, 2007 and
1.14% at March 31, 2007. The higher allowance percentage at March
31, 2008 as compared to December 31, 2007 and the higher provision
for the three months ended March 31, 2008, relate in part to the
increases in non-performing and problem loans as mentioned above as
well as increased provisioning due to substantial loan growth and
changes in the loan mix in the three and twelve month periods,
respectively. Noninterest income for the three months ended March
31, 2008 decreased to $940 thousand from $998 thousand for the
three months ended March 31, 2007, a 6% decline. This decline was
due to a lower volume of SBA loan sales activity, which activity is
subject to significant quarterly variances. Noninterest expenses
were $6.2 million for the three months ended March 31, 2008, as
compared to $6.0 million for the three months ended March 31, 2007,
a 3% increase. The primary reasons for this increase were increases
in staff levels and related personnel costs, merit increases and
benefit costs over the past twelve months and higher internet and
license agreements costs. The efficiency ratio, which measures the
level of non-interest expense to total revenue improved to 65.07%
for the three months ended March 31, 2008, as compared to 67.44%
for the three months ended March 31, 2007. While the Company
continues to make strategic investments in infrastructure, more
attention to overall cost management is being emphasized. At March
31, 2008, total assets were $899.5 million compared to $776.2
million at March 31, 2007, a 16% increase. Total deposits amounted
to $685.7 million, at March 31, 2008, an 8% increase over deposits
of $632.1 million at March 31, 2007, while total loans increased to
$759.5 million at March 31, 2008, from $637.4 million at March 31,
2007, a 19% increase. Total borrowed funds, which include customer
repurchase agreements, increased to $123.7 million at March 31,
2008 from $65.0 million at March 31, 2007, a 90% increase. This
increase in part represents a heavier reliance on purchased funds
to meet loan demand. The Company paid a dividend of $0.06 per share
for the first quarter of 2008 and 2007. The Summary of Financial
Information presented on the following pages provides more detail
of the Company's performance for the three months ended March 31,
2008 as compared to the three months ended March 31, 2007, as well
as providing eight quarters of trend data. Persons wishing
additional information should refer to the Company's Form 10K for
the year ended December 31, 2007 filed with the Securities and
Exchange Commission (the "SEC") on March 14, 2008. The Company is
the holding company for EagleBank which commenced operations in
1998. The Bank is headquartered in Bethesda, Maryland, and conducts
full service commercial banking services through nine offices,
located in Montgomery County, Maryland and Washington, D.C. The
Company focuses on building relationships with businesses,
professionals and individuals in its marketplace. In December 2007,
the Company announced the signing of a definitive agreement to
acquire Fidelity & Trust Financial Corporation, parent of
Fidelity & Trust Bank. At December 31, 2007, Fidelity &
Trust Financial Corporation had $447 million of assets. Fidelity
& Trust Bank operates six locations, with one in Northern
Virginia, three in Montgomery County, Maryland and two in the
District of Columbia. The transaction is subject to regulatory and
shareholder approvals and the satisfaction of other conditions, as
set forth in the merger agreement. The transaction is currently
anticipated to be completed in the third quarter of 2008. 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. ADDITIONAL
INFORMATION ABOUT THE PROPOSED MERGER WITH FIDELITY & TRUST
Eagle Bancorp, Inc. will be filing a proxy statement/prospectus and
other relevant documents concerning the merger with the SEC. The
proxy statement/prospectus will be mailed to the shareholders of
Eagle Bancorp and Fidelity & Trust Financial Corporation.
Investors and security holders of Eagle Bancorp and Fidelity &
Trust Financial Corporation are urged to read the proxy
statement/prospectus, the documents incorporated by reference in
the proxy statement/prospectus, the other documents filed with the
SEC and the other relevant materials when they become available
because they will contain important information about Eagle
Bancorp, Fidelity & Trust Financial Corporation and the Merger
Agreement and the transactions contemplated by the Merger
Agreement. Investors will be able to obtain these documents free of
charge at the SEC's web site (http://www.sec.gov/). In addition,
documents filed with the SEC by Eagle Bancorp, Inc. will be
available free of charge from Eagle Bancorp's Investor Relations at
301/986-1800, or from Eagle Bancorp's website at
http://www.eaglebankmd.com/. The directors, executive officers, and
certain other members of management and employees of Eagle Bancorp
and its subsidiaries are participants in the solicitation of
proxies in favor of the issuance of shares pursuant to the merger
from the shareholders of Eagle Bancorp. Information about the
directors and executive officers of Eagle Bancorp is set forth in
Eagle Bancorp's proxy statement for the 2008 annual meeting of
shareholders filed with the SEC on March 31, 2008. Additional
information regarding the interests of such participants will be
included in the proxy statement/prospectus and the other relevant
documents filed with the SEC when they become available. CONTACT:
Ronald D. Paul 301.986.1800 Eagle Bancorp, Inc. Statements of
Financial Condition Highlights (in thousands) March 31, December
31, March 31, 2008 2007 2007 (Unaudited) (Audited) (Unaudited)
Assets Cash and due from banks $18,117 $15,408 $16,470 Interest
bearing deposits with banks and other short term investments 2,230
4,490 4,573 Federal funds sold 16,013 244 19,701 Investment
securities available for sale, at fair value 82,932 87,117 74,216
Loans held for sale 1,945 2,177 2,531 Loans 759,547 716,677 637,356
Less: Allowance for credit losses (8,733) (8,037) (7,263) Premises
and equipment, net 6,445 6,701 7,380 Accrued interest and other
assets 20,971 21,623 21,224 Total Assets $899,467 $846,400 $776,188
Liabilities and Stockholders' Equity Noninterest bearing deposits
$143,508 $142,477 $130,664 Interest bearing transaction 47,822
54,090 58,801 Savings and money market 193,348 177,081 177,717
Time, $100,000 or more 177,003 173,586 107,514 Other time 124,059
83,702 157,415 Total deposits 685,740 630,936 632,111 Customer
repurchase agreements and federal funds purchased 61,727 76,408
35,043 Other borrowings 62,000 52,000 30,000 Other liabilities
6,463 5,890 4,574 Total liabilities 815,930 765,234 701,728
Stockholders' equity 83,537 81,166 74,460 Total Liabilities and
Stockholders' Equity $899,467 $846,400 $776,188 Eagle Bancorp, Inc.
Statements of Income Highlights (in thousands, except per share
data) Three Months Ended March 31, 2008 2007 (Unaudited)
(Unaudited) Total interest income $14,014 $13,736 Total interest
expense 5,414 5,767 Net interest income 8,600 7,969 Provision for
credit losses 720 303 Net interest income after provision for
credit losses 7,880 7,666 Noninterest income (before investment
gains) 930 991 Investment gains 10 7 Total noninterest income 940
998 Salaries and employee benefits 3,640 3,352 Premises and
equipment expenses 1,080 1,208 Marketing and advertising 81 91
Other expenses 1,407 1,398 Total noninterest expense 6,208 6,049
Income before income tax expense 2,612 2,615 Income tax expense 961
933 Net income $1,651 $1,682 Per Share Data: Earnings per share,
basic $0.17 $ 0.18 Earnings per share, diluted $0.17 $ 0.17
Weighted average shares outstanding, basic 9,781,237 9,488,567
Weighted average shares outstanding, diluted 9,933,993 9,816,711
Book value per share at period end $8.53 $ 7.83 Dividend per share
$0.06 $ 0.06 Performance Ratios (annualized): Return on average
assets 0.77% 0.88% Return on average equity 7.98% 9.23% Net
interest margin 4.19% 4.41% Efficiency ratio (1) 65.07% 67.44%
Other Ratios: Allowance for credit losses to total loans 1.15%
1.14% Non-performing loans to total loans 1.54% 0.25% Net
charge-offs (annualized) to average loans 0.01% 0.26% Average
equity to average assets 9.67% 9.59% Tier 1 leverage ratio 9.56%
9.68% Total risk based capital ratio 10.96% 12.03% Average Balances
(in thousands): Total assets $860,030 $770,880 Total earning assets
$825,463 $732,529 Total loans (2) $731,501 $636,225 Total deposits
$655,105 $616,492 Total borrowings $116,684 $76,577 Total
stockholders' equity $83,200 $73,890 (1) Computed by dividing
noninterest expense by the sum of net interest income and
noninterest income (2) Includes loans held for sale Eagle Bancorp,
Inc. Statements of Income Highlights - Quarterly Trends (in
thousands, except per share data) (Unaudited) Three Months Ended
March 31, December 31, September 30, June 30, 2008 2007 2007 2007
Total interest income $14,014 $14,879 $14,355 $14,107 Total
interest expense 5,414 6,036 6,017 5,909 Net interest income 8,600
8,843 8,338 8,198 Provision for credit losses 720 883 421 36 Net
interest income after provision for credit losses 7,880 7,960 7,917
8,162 Noninterest income (before investment gains) 930 1,961 1,032
1,196 Investment gains (losses) 10 (1) - - Total noninterest income
940 1,960 1,032 1,196 Salaries and employee benefits 3,640 3,784
3,577 3,454 Premises and equipment expenses 1,080 1,180 1,186 1,255
Marketing and advertising 81 109 134 131 Outside data processing -
146 202 183 Other expenses 1,407 1,395 1,276 1,391 Total
noninterest expense 6,208 6,468 6,173 6,231 Income before income
tax expense 2,612 3,452 2,776 3,127 Income tax expense 961 1,166
1,021 1,149 Net income $1,651 $2,286 $1,755 $1,978 Per Share Data
(1): Earnings per share, basic $0.17 $0.24 $0.18 $0.21 Earnings per
share, diluted $0.17 $0.23 $0.18 $0.20 Weighted average shares
outstanding, basic 9,781,237 9,689,422 9,580,790 9,532,765 Weighted
average shares outstanding, diluted 9,933,993 9,884,709 9,838,524
9,813,537 Book value per share at period end $8.53 $8.35 $8.15
$7.95 Dividend per share $0.06 $0.06 $0.06 $0.06 Performance Ratios
(annualized): Return on average assets 0.77% 1.06% 0.88% 1.02%
Return on average equity 7.98% 11.33% 9.09% 10.50% Net interest
margin 4.19% 4.30% 4.34% 4.45% Efficiency ratio (2) 65.07% 59.87%
65.88% 66.33% Other Ratios: Allowance for credit losses to total
loans 1.15% 1.12% 1.09% 1.11% Non-performing loans to total loans
1.54% 0.74% 0.82% 0.22% Net charge-offs (annualized) to average
loans 0.01% 0.15% 0.18% 0.01% Average equity to average assets
9.67% 9.39% 9.69% 9.70% Tier 1 leverage ratio 9.56% 9.46% 9.78%
9.84% Total risk based capital ratio 10.96% 11.21% 11.93% 11.85%
Average Balances (in thousands): Total assets $860,030 $852,243
$799,382 $778,454 Total earning assets $825,463 $816,187 $761,646
$738,501 Total loans (3) $731,501 $687,030 $665,222 $647,714 Total
deposits $655,105 $659,355 $636,573 $624,413 Total borrowings
$116,684 $107,697 $80,952 $74,948 Total stockholders' equity
$83,200 $80,058 $77,468 $75,549 Three Months Ended March 31,
December 31, September 30, June 30, 2007 2006 2006 2006 Total
interest income $13,736 $13,848 $13,033 $12,213 Total interest
expense 5,767 5,466 4,818 4,216 Net interest income 7,969 8,382
8,215 7,997 Provision for credit losses 303 327 711 592 Net
interest income after provision for credit losses 7,666 8,055 7,504
7,405 Noninterest income (before investment gains) 991 906 1,287
689 Investment gains (losses) 7 39 (71) 156 Total noninterest
income 998 945 1,216 845 Salaries and employee benefits 3,352 3,177
3,104 2,975 Premises and equipment expenses 1,208 1,040 1,107 819
Marketing and advertising 91 221 102 145 Outside data processing
262 226 219 208 Other expenses 1,398 1,305 1,383 1,223 Total
noninterest expense 6,049 5,743 5,696 5,162 Income before income
tax expense 2,615 3,257 3,024 3,088 Income tax expense 933 1,105
1,124 1,098 Net income $1,682 $2,152 $1,900 $1,990 Earnings per
share, basic $0.18 $0.23 $0.20 $0.21 Earnings per share, diluted
$0.17 $0.22 $0.19 $0.20 Weighted average shares outstanding, basic
9,488,567 9,442,952 9,423,947 9,420,579 Weighted average shares
outstanding, diluted 9,816,711 9,842,928 9,869,514 9,847,644 Book
value per share at period end $7.83 $7.69 $7.49 $7.27 Dividend per
share $0.06 $0.06 $0.06 $0.05 Return on average assets 0.88% 1.13%
1.05% 1.13% Return on average equity 9.23% 11.89% 10.84% 11.73% Net
interest margin 4.41% 4.63% 4.81% 4.82% Efficiency ratio (2) 67.44%
61.57% 60.40% 58.38% Allowance for credit losses to total loans
1.14% 1.18% 1.19% 1.10% Non-performing loans to total loans 0.25%
0.32% 0.34% 0.41% Net charge-offs (annualized) to average loans
0.26% 0.00% (0.02%) 0.26% Average equity to average assets 9.59%
9.49% 9.69% 9.67% Tier 1 leverage ratio 9.68% 9.67% 11.03% 11.10%
Total risk based capital ratio 12.03% 11.91% 12.12% 12.11% Total
assets $770,880 $756,323 $717,481 $703,889 Total earning assets
$732,529 $718,751 $678,225 $665,569 Total loans (3) $636,225
$606,934 $581,874 $568,273 Total deposits $616,492 $616,929
$589,597 $581,751 Total borrowings $76,577 $62,711 $53,837 $49,849
Total stockholders' equity $73,890 $71,784 $69,537 $68,049 (1) All
periods from September 30, 2006 and prior were adjusted to give
retroactive effect to the 1.3 to 1 stock split in the form of a 30%
stock dividend paid on July 5, 2006 (2) Computed by dividing
noninterest expense by the sum of net interest income and
noninterest income (3) Includes loans held for sale DATASOURCE:
Eagle Bancorp, Inc. CONTACT: Ronald D. Paul of Eagle Bancorp, Inc.,
+1-301-986-1800 Web site: http://www.eaglebankmd.com/
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