Market Snapshot
  • U.S.
  • Europe
  • Asia
Ticker Volume Price Price Delta
DJIA 16,528.70 27.05 0.16%
S&P 500 1,880.63 5.24 0.28%
NASDAQ 4,154.96 28.00 0.68%
Ticker Volume Price Price Delta
STOXX 50 3,179.09 3.12 0.10%
FTSE 100 6,690.75 16.01 0.24%
DAX 9,529.70 -14.49 -0.15%
Ticker Volume Price Price Delta
NIKKEI 14,404.99 -141.28 -0.97%
TOPIX 1,164.90 -8.91 -0.76%
HANG SENG 22,562.80 53.16 0.24%

Eagle Bancorp Montana Earns $422,000 in First Fiscal Quarter; Highlighted by Net Interest Margin Expansion; Declares Regular



  Eagle Bancorp Montana Earns $422,000 in First Fiscal Quarter; Highlighted by
  Net Interest Margin Expansion; Declares Regular Quarterly Cash Dividend

Business Wire

HELENA, Mont. -- October 23, 2012

Eagle Bancorp Montana, Inc. (NASDAQ:EBMT), (the “Company,” “Eagle”), the
holding company of American Federal Savings Bank, today reported it earned
$422,000, or $0.11 per diluted share, in the first fiscal quarter ended
September 30, 2012, compared to $428,000, or $0.11 per diluted share, in the
first quarter a year ago. In the fourth quarter ended June 30, 2012 Eagle
earned $605,000, or $0.15 per diluted share.

The Company also announced its board of directors has declared a regular
quarterly cash dividend of $0.07125 per share payable November 27, 2012 to
shareholders of record November 6, 2012.

“Eagle’s first quarter operating results include an expanding net interest
margin, reflecting a reduction in funding costs and strong mortgage refinance
activity. However, our earnings were adversely affected by $477,000 in
acquisition costs associated with our pending branch purchase from Sterling
Savings Bank,” said Peter J. Johnson, President and CEO. “We recognized a
portion of these acquisition costs now, and expect them to remain elevated
over the next two quarters.”

In July 2012, Eagle announced a definitive agreement to purchase seven branch
banking locations from Sterling Savings Bank, a wholly-owned subsidiary of
Sterling Financial Corporation (NASDAQ:STSA). On October 15, 2012, Eagle
announced receipt of regulatory approval from the Office of the Comptroller of
the Currency for the transaction. The sale is expected to be completed during
the second quarter of fiscal 2013 and will more than double Eagle’s franchise
to 13 branches and extends its branch network throughout Southern Montana. Of
the seven branches being acquired six are in new markets for Eagle, including
two in Missoula, one in Billings, and one each in Hamilton, Livingston and Big
Timber. The seventh is in Bozeman where Eagle already has a presence.

First Quarter Fiscal 2012 Highlights

  * Eagle earned $422,000, or $0.11 per diluted share, in the first quarter of
    fiscal 2013 compared to $605,000, or $0.15 per diluted share, in the
    preceding quarter and $428,000, or $0.11 per diluted share, in the first
    quarter of fiscal 2012.
  * Net interest margin was 3.72% in the fourth quarter, a 21 basis point
    improvement compared to 3.51% in the preceding quarter and a six basis
    point improvement compared to 3.66% in the first quarter a year ago.
  * Nonperforming assets improved to $4.2 million, or 1.32% of total assets at
    September 30, 2012, compared to $5.6 million, or 1.70% of total assets
    three months earlier and $6.5 million, or 1.94% of total assets a year
    ago.
  * Nonperforming loans declined to $2.3 million, or 1.36% of total loans at
    September 30, 2012 compared to $3.2 million, or 1.83% of total loans three
    months earlier and $5.2 million, or 2.77% of total loans a year ago.
  * Capital ratios remain strong with a Tier 1 leverage ratio of 17.67%.
  * Declared regular quarterly cash dividend of $0.07125 per share.

Balance Sheet Results

“Loan demand remains modest and loan payoffs have increased due to mortgage
refinance activity. As a result the loan portfolio contracted again during the
quarter,” said Johnson. Total loans declined 10.0% to $169.0 million at
September 30, 2012 compared to $187.8 million at September 30, 2011.
Commercial real estate loans were $65.1 million at September 30, 2012 compared
to $65.9 million a year earlier and residential mortgage loans decreased 17.6%
to $56.6 million compared to $68.7 million a year earlier. Commercial loans
increased 16.7% to $14.4 million and home equity loans decreased 15.8% to
$23.3 million compared to a year ago.

Total deposits increased 3.4% to $220.9 million at the end of September
compared to $213.6 million a year ago. Checking and money market accounts
represent 44.7% of total deposits, savings accounts represent 18.6% of total
deposits, and CDs comprise 36.7% of the total deposit portfolio at September
30, 2012. Eagle had no brokered deposits at the end of September.

Total assets were $320.0 million at September 30, 2012, compared to $335.9
million a year earlier. Shareholders’ equity was $54.0 million at September
30, 2012, compared to $53.4 million a year ago and the tangible book value
increased to $13.92 per share at September 30, 2012, compared to $13.69 per
share a year ago.

Credit Quality

“We made good progress in continuing to reduce problem assets and as a result
all of our key credit quality metrics further improved during the quarter,”
said Clint Morrison, SVP and CFO. “Additionally, very few new loans moved into
delinquency status during the quarter. Nonperforming loans (NPLs) decreased
28.7% to $2.3 million at September 30, 2012, compared to $3.2 million three
months earlier, and decreased 55.9% when compared to $5.2 million, a year ago.
Other real estate owned (OREO) and other repossessed assets totaled $1.9
million at September 30, 2012 compared to $2.4 million three months earlier
and $1.3 million a year earlier.

Nonperforming assets (NPAs), consisting of nonperforming loans, OREO and other
repossessed assets, loans delinquent 90 days or more, and restructured loans,
decreased 24.3% to $4.2 million at September 30, 2012, compared to $5.6
million three months earlier, and decreased 35.1% when compared to $6.5
million a year ago.

Eagle’s first quarter provision for loan losses was $235,000, compared to
$260,000 in the preceding quarter and $258,000 in the first quarter a year
ago. Net charge offs were $60,000 in the first quarter compared to $335,000 in
the preceding quarter and $508,000 in the first quarter a year ago. The
allowance for loan losses now stands at $1.80 million, or 1.07% of total loans
at September 30, 2012, compared to $1.6 million, or 0.93% of total loans at
June 30, 2012, and $1.6 million, or 0.83% of total loans a year ago.

Operating Results

The net interest margin was 3.72% in the first quarter, compared to 3.51% in
the preceding quarter and 3.66% in the first quarter a year ago. “The net
interest margin expansion compared to the preceding quarter and a year ago
reflects continuing reductions in funding costs, as well as the reduction in
loans on nonaccrual status,” said Morrison. Funding costs for the first
quarter of fiscal 2013 decreased 14 basis points compared to the previous
quarter while asset yields increased eight basis points compared to the
previous quarter.

Eagle’s revenues (net interest income before the provision for loan losses,
plus non-interest income) increased 11.2% to $4.2 million, compared to $3.8
million in the preceding quarter. In the first quarter a year ago, Eagle’s
revenues were $3.3 million. Net interest income before the provision for loan
loss was $2.66 million in the first quarter of fiscal 2013, compared to $2.58
million in the preceding quarter and $2.76 million in the first quarter a year
ago.

Largely because of increased mortgage refinance activity and the resulting
gain on the sale of loans in the secondary market, total noninterest income
increased 177% to $1.58 million in the first quarter of fiscal 2013, compared
to $569,000 in the first quarter a year ago. In the fourth quarter of fiscal
2012 noninterest income was $1.23 million. Eagle’s first quarter net gain on
the sale of loans increased to $812,000 compared to $534,000 in the preceding
quarter and $236,000 in the first quarter a year ago.

In the first quarter of fiscal 2013 noninterest expense was $3.44 million,
compared to $2.79 million in the preceding quarter and $2.46 million in the
first quarter a year ago. The increase is primarily attributable to
acquisition costs associated with the definitive agreement to purchase seven
branch banking locations from Sterling Savings Bank, which totaled $477,000
during the first quarter of fiscal 2013.

Eagle’s first quarter return on average equity (ROAE) was 3.11% compared to
4.46% in the preceding quarter and 3.22% in the first quarter a year ago.
Return on average assets (ROAA) was 0.53% in the first quarter compared to
0.74% in the preceding quarter and 0.51% in the first quarter a year ago.

Capital Management

Eagle Bancorp Montana continues to meet the well capitalized thresholds for
regulatory purposes with a Tier 1 leverage ratio of 17.67% at September 30,
2012. “When we complete our acquisition of the seven branches from Sterling
Savings Bank, our Tier 1 leverage ratio should be approximately 10.80%, still
high enough to be considered well capitalized by our regulators,” Johnson
added.

About the Company

Eagle Bancorp Montana, Inc. is the stock holding company of American Federal
Savings Bank. American Federal Savings Bank was formed in 1922 and is
headquartered in Helena, Montana. It has additional branches in Butte, Bozeman
and Townsend. Eagle Bancorp Montana, Inc. commenced operations on April 5,
2010 following the conversion of Eagle Financial MHC and the sale of Eagle
Bancorp Montana, Inc. stock. Eagle's common stock trades on the NASDAQ Global
Market under the symbol "EBMT."

Forward Looking Statements

This release may contain certain "forward-looking statements" within the
meaning of Section 27A of the Securities Act of 1933 and Section 21E of the
Securities Exchange Act of 1934, and may be identified by the use of such
words as "believe," "expect," "anticipate," "should," "planned," "estimated,"
and "potential." These forward-looking statements include, but are not limited
to statements of our goals, intentions and expectations; statements regarding
our business plans, prospects, growth and operating strategies; statements
regarding the asset quality of our loan and investment portfolios; and
estimates of our risks and future costs and benefits. These forward-looking
statements are based on current beliefs and expectations of our management and
are inherently subject to significant business, economic and competitive
uncertainties and contingencies, many of which are beyond our control. In
addition, these forward-looking statements are subject to assumptions with
respect to future business strategies and decisions that are subject to
change. These factors include, but are not limited to, changes in laws or
government regulations or policies affecting financial institutions, including
changes in regulatory fees and capital requirements; general economic
conditions, either nationally or in our market areas, that are worse than
expected; competition among depository and other financial institutions; loan
demand or residential and commercial real estate values in Montana; inflation
and changes in the interest rate environment that reduce our margins or reduce
the fair value of financial instruments; adverse changes in the securities
markets; and other economic, governmental, competitive, regulatory and
technological factors that may affect our operations. Because of these and
other uncertainties, our actual future results may be materially different
from the results indicated by these forward-looking statements.

Balance Sheet                                                   
(Dollars in thousands, except      (Unaudited)     (Audited)     (Unaudited)
per share data)
                                   September 30,   June 30,      September 30,
                                   2012            2012          2011
                                                                  
Assets:
Cash and due from banks            $  3,357        $ 3,534       $  3,444
Interest-bearing deposits with        1,751          16,280         2,159
banks
Federal funds sold                    6,632          -              5,000     
Total cash and cash equivalents       11,740         19,814         10,603
Securities available-for-sale,        98,253         89,277         102,888
at market value
FHLB stock, at cost                   1,985          2,003          2,003
Investment in Eagle Bancorp           155            155            155
Statutory Trust I
Loans held-for-sale                   9,160          10,613         3,160
Loans:
Residential mortgage (1-4             56,600         61,671         68,680
family)
Commercial loans                      14,408         15,343         12,343
Commercial real estate                65,110         64,672         65,893
Construction loans                    1,363          1,455          4,277
Consumer loans                        8,328          8,778          9,057
Home equity                           23,316         23,709         27,694
Unearned loan fees                    (139     )     (164    )      (157     )
Total loans                           168,986        175,464        187,787
Allowance for loan losses             (1,800   )     (1,625  )      (1,550   )
Net loans                             167,186        173,839        186,237
Accrued interest and dividends        1,352          1,371          1,548
receivable
Mortgage servicing rights, net        2,350          2,218          2,133
Premises and equipment, net           15,530         15,561         16,017
Cash surrender value of life          9,247          9,172          8,955
insurance
Real estate and other assets
acquired in settlement of loans,      1,937          2,361          1,303
net of allowance for losses
Other assets                          1,142          915            906       
Total assets                       $  320,037      $ 327,299     $  335,908   
                                                                  
Liabilities:
Deposit accounts:
Noninterest bearing                   26,031         23,425         21,650
Interest bearing                      194,870        196,564        191,970   
Total deposits                        220,901        219,989        213,620
Accrued expense and other             6,356          5,809          4,889
liabilities
Federal funds purchased               -              -              -
FHLB advances and other               33,646         42,696         58,846
borrowings
Subordinated debentures               5,155          5,155          5,155     
Total liabilities                     266,058        273,649        282,510
                                                                  
Shareholders' Equity:
Preferred stock (no par value,
1,000,000 shares authorized,          -              -              -
none issued or outstanding)
Common stock (par value $0.01;
8,000,000 shares authorized;
4,083,127 shares issued;
3,878,971; 3,878,971; and             41             41             41
3,901,487 outstanding at
September 30, 2012, June 30,
2012 and September 30, 2011,
respectively
Additional paid-in capital            22,113         22,112         22,112
Unallocated common stock held by
employee stock ownership plan         (1,514   )     (1,556  )      (1,681   )
(ESOP)
Treasury stock, at cost
(204,156; 204,156; and 181,640
shares at September 30, 2012,         (2,210   )     (2,210  )      (1,981   )
June 30, 2012, and September 30,
2011, respectively)
Retained earnings                     33,135         32,990         32,068
Accumulated other comprehensive       2,414          2,273          2,839     
gain
Total shareholders' equity            53,979         53,650         53,398
Total liabilities and              $  320,037      $ 327,299     $  335,908   
shareholders' equity

Income Statement                 (Unaudited)
(Dollars in thousands, except    Three Months Ended
per share data)
                                 September 30    June 30         September 30
                                 2012            2012            2011
Interest and dividend Income:
Interest and fees on loans       $ 2,551         $ 2,535         $ 2,775
Securities available-for-sale      669             715             872
Interest on deposits with          5               4               6          
banks
Total interest and dividend        3,225           3,254           3,653
income
Interest Expense:
Interest expense on deposits       248             252             289
Advances and other borrowings      294             398             583
Subordinated debentures            24              24              22         
Total interest expense             566             674             894        
Net interest income                2,659           2,580           2,759
Provision for loan losses          235             260             258        
Net interest income after          2,424           2,320           2,501
provision for loan losses
                                                                  
Noninterest income:
Service charges on deposit         166             161             190
accounts
Net gain on sale of loans          812             534             236
Mortgage loan servicing fees       234             225             228
Net gain on sale of                67              209             57
available-for-sale securities
Net gain (loss) on sale of         (17       )     6               -
OREO
Net gain (loss) on fair value      37              (137      )     (330      )
hedge-FASB ASC 815
Other income                       276             228             188        
Total noninterest income           1,575           1,226           569
                                                                  
Noninterest expense:
Salaries and employee benefits     1,441           1,335           1,167
Occupancy and equipment            342             348             343
expense
Data processing                    147             155             151
Advertising                        201             214             131
Amortization of mortgage           187             161             93
servicing fees
Federal insurance premiums         49              50              30
Postage                            26              37              25
Legal, accounting and              91              79              72
examination fees
Consulting fees                    26              28              87
Acquisition costs                  477             50              -
Provision for valuation loss       68              4               -
on OREO
Other                              380             332             356        
Total noninterest expense          3,435           2,793           2,455
                                                                  
Income before provision for        564             753             615        
income taxes
Provision for income taxes         142             148             187        
Net income                       $ 422           $ 605           $ 428        
                                                                  
Basic earnings per share         $ 0.11          $ 0.16          $ 0.11       
Diluted Earnings per share       $ 0.11          $ 0.15          $ 0.11       
Weighted average shares            3,724,789       3,720,651       3,739,610  
outstanding (basic EPS)
Weighted average shares            3,928,945       3,924,807       3,912,326  
outstanding (diluted EPS)

Financial Ratios                                            
and Other Data
(Dollars in
thousands, except
per share data)
(Unaudited)           September 30,       June 30,            September 30,
                      2012                2012                2011
Asset Quality:
Nonaccrual loans      $  1,491            $  1,814            $  5,074
Loans 90 days past       -                   -                   -
due
Restructured             803                 1,404               131         
loans, net
Total
nonperforming            2,294               3,218               5,205
loans
Other real estate
owned and other          1,930               2,361               1,303       
repossessed
assets, net
Total
nonperforming         $  4,224            $  5,579            $  6,508       
assets
Nonperforming
loans / portfolio        1.36       %        1.83       %        2.77       %
loans
Nonperforming            1.32       %        1.70       %        1.94       %
assets / assets
Allowance for loan
losses / portfolio       1.07       %        0.93       %        0.83       %
loans
Allowance /
nonperforming            78.47      %        50.50      %        29.78      %
loans
Gross loan
charge-offs for       $  64               $  346              $  510
the quarter
Gross loan
recoveries for the    $  4                $  11               $  2
quarter
Net loan
charge-offs for       $  60               $  335              $  508
the quarter
                                                               
Capital Data (At
quarter end):
Book value per        $  13.92            $  13.83            $  13.69
share
Shares outstanding       3,878,971           3,878,971           3,901,487
                                                               
Profitability
Ratios (For the
quarter):
Efficiency ratio*        79.02      %        71.16      %        70.75      %
Return on average        0.53       %        0.74       %        0.51       %
assets
Return on average        3.11       %        4.46       %        3.22       %
equity
Net interest             3.72       %        3.51       %        3.66       %
margin
                                                               
Profitability
Ratios
(Year-to-date):
Efficiency ratio ^       79.02      %        70.82      %        70.75      %
*
Return on average        0.53       %        0.66       %        0.51       %
assets
Return on average        3.11       %        4.06       %        3.22       %
equity
Net interest             3.72       %        3.68       %        3.66       %
margin
                                                               
Other Information
Average total
assets for the        $  320,776          $  328,350          $  334,428
quarter
Average total
assets year to        $  320,776          $  331,161          $  334,428
date
Average earning
assets for the        $  286,273          $  293,934          $  301,488
quarter
Average earning
assets year to        $  286,273          $  297,174          $  301,488
date
Average loans for     $  180,782          $  184,076          $  187,643
the quarter **
Average loans year    $  180,782          $  188,502          $  187,643
to date **
Average equity for    $  54,265           $  54,209           $  53,121
the quarter
Average equity        $  54,265           $  53,675           $  53,121
year to date
Average deposits      $  219,522          $  219,398          $  212,144
for the quarter
Average deposits      $  219,522          $  214,490          $  212,144
year to date
                                                               
* The efficiency ratio is a non-GAAP ratio that is calculated by dividing
non-interest expense, exclusive of intangible asset amortization, by the sum
of net interest income and non-interest income.
** includes loans held for sale

Contact:

Eagle Bancorp Montana, Inc.
Peter J. Johnson, President and CEO, 406-457-4006
or
Clint J. Morrison, SVP and CFO, 406-457-4007
Sponsored Links
Advertisement
Advertisements
Sponsored Links
Advertisement