(Source: PrimeNewswire)
HELENA, Mont., Oct. 22, 2009 (GLOBE NEWSWIRE) -- Eagle Bancorp ("Eagle") (OTCBB:EBMT), the stock holding company of American Federal Savings Bank (the "Bank"), reported a first quarter net income of $844,000, or $.79 per share ($.69 per share diluted), for the three months ended September 30, 2009, and declared a cash dividend of $0.26 per share. Earnings for the quarter increased $944,000 from the $100,000 loss for the quarter ended September 30, 2008.
The change in net income for the first quarter was mainly attributable to the adjustment of $84,000 to reflect the increase in fair value of those securities pursuant to SFAS 159, the Fair Value Option for Financial Assets and Liabilities. Under SFAS 159, the Company, in the first quarter of 2008, recognized a loss of $1.24 million on Freddie Mac and Fannie Mae preferred stock. The Company continues to hold these securities, and as a result, adjustments in the fair value will occur in future periods.
The Company continued to achieve favorable results with respect to loan quality in its markets, but noted that mortgage loan refinance activity has recently declined.
"We are pleased to report that our asset quality remains strong. Deposit growth was very good this quarter, which allowed us to realize savings on interest expense. Mortgage loan volume has decreased, as the amount of refinance activity has dropped significantly. This will result in lower gains on sale of loans in future quarters. Our core earnings performance remains very strong, however. We are also excited to announce the opening of our second office in Bozeman this month," said CEO Pete Johnson.
Net interest income increased $147,000, or 6.57%, to $2.38 million for the quarter ended September 30, 2009 from $2.24 million for the quarter ended September 30, 2008. Noninterest income increased $1.565 million, which, as discussed above, was due to a recovery in value of Fannie Mae and Freddie Mac preferred stock versus last year's loss in value. Eagle's tax provision was $379,000 higher in the current quarter. Eagle's annualized return on assets was 1.14% and its annualized return on equity was 11.60% for the quarter, compared with negative 0.14% and negative 1.61%, respectively, for the same quarter in 2008.
Total interest and dividend income decreased $92,000 to $3.7 million for the quarter ended September 30, 2009 from $3.8 million for the quarter ended September 30, 2008. This was due to a decrease in interest and fees on loans of $129,000 offset by an increase in interest and dividends on securities available-for-sale of $41,000. Lower funding costs caused total interest expense to decrease by $239,000 to $1.34 million for the quarter ended September 30, 2009 from $1.58 million for the quarter ended September 30, 2008. Interest expense on deposits decreased $251,000 and interest expense on Federal Home Loan Bank advances and other borrowings increased $12,000.
Total assets increased by $10.97 million, or 3.79%, to $300.68 million at September 30, 2009 from $289.71 million at June 30, 2009. Loans receivable increased $988,000, or 0.6%, to $168.19 million from $167.20 million. Loans held-for-sale decreased $1.86 million to $3.49 million from $5.35 million. Deposits increased $7.88 million, or 4.21%, to $195.08 million at September 30, 2009 from $187.20 million at June 30, 2009. Advances from the Federal Home Loan Bank and other borrowings decreased $417,000, or 0.62%, to $66.64 million from $67.06 million, while federal fund purchases remained at zero. Total stockholders' equity increased $2.64 million or 9.48%, to $30.43 million at September 30, 2009 from $27.79 million at June 30, 2009, as a result of the net income for the period of $844,000, an increase in accumulated other comprehensive gain of $1.89 million (mainly due to an increase in net unrealized gain on securities available-for-sale), as well as dividends paid and purchases of treasury stock.
Eagle's Board of Directors declared a quarterly cash dividend of $0.26 per share for the first quarter of Eagle's fiscal year. The dividend is payable December 4, 2009 to shareholders of record at the close of business on November 13, 2009.
American Federal Savings Bank was formed in 1922 and is headquartered in Helena, Montana. It has additional branches in Butte, Bozeman and Townsend.
