UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-QSB
(MARK ONE)
( X ) QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the Quarterly Period Ended June 30, 1999
OR
( ) TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from to
Commission File Number 0-25923
EAGLE BANCORP, INC
(Exact name of registrant as specified in its charter)
MARYLAND 52-2061461
(State of other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
7815 WOODMONT AVENUE, BETHESDA, MARYLAND 20814
(Address of principal executive offices) (Zip Code)
(301) 986-1800
(Registrant's telephone number, including area code)
N/A
(Former name, former address and former fiscal year,
if changed since last report)
Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days. Yes x No
Indicate the number of shares outstanding of each of the issuer's
classes of common stock, as of the latest practical date.
As of March 31, 1999, the registrant had 1,650,000 shares of Common
Stock outstanding.
<PAGE>
EAGLE BANCORP, INC.
BALANCE SHEETS
JUNE 30, 1999 AND DECEMBER 31, 1998
ASSETS
<TABLE>
<CAPTION>
June 30, December 31,
1999 1998
----------------- -----------------
<S> <C> <C>
Cash and due from banks $ 3,274,676 $ 1,292,006
Federal funds sold 5,032,399 5,429,047
Investment securities available for sale 26,827,610 22,569,699
Loans(net of allowance for credit losses of
$350,500 and $163,800) 38,248,910 19,984,124
Premises and equipment, net 2,573,088 2,396,075
Other assets 676,597 368,232
----------------- -----------------
TOTAL ASSETS $ 76,633,280 $ 52,039,183
LIABILITIES AND STOCKHOLDERS' EQUITY
LIABILITIES:
Deposits:
Noninterest-bearing demand $ 10,200,361 $ 4,096,392
Interest-bearing transaction accounts 9,185,370 3,664,012
Savings and money market 19,391,550 17,061,269
Time, $100,000 or more 7,112,753 5,621,543
Other time 7,347,221 4,187,677
----------------- -----------------
Total deposits 53,237,255 34,630,893
Customer repurchase agreements 9,038,672 2,304,694
Other borrowings 100,000 -
Other liabilities 243,544 154,101
----------------- -----------------
Total liabilities 62,619,471 37,089,688
----------------- -----------------
STOCKHOLDERS' EQUITY:
Common stock, $.01 par value; 5,000,000
authorized, 1,650,000 issued and outstanding 16,500 16,500
Surplus 16,483,500 16,483,500
Accumulated deficit (2,222,015) (1,561,660)
Accumulated other comprehensive income (loss) (264,176) 11,155
----------------- -----------------
Total stockholders' equity 14,013,809 14,949,495
----------------- -----------------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 76,633,280 $ 52,039,183
----------------- -----------------
</TABLE>
See notes to consolidated financial statements
2
<PAGE>
EAGLE BANCORP, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE SIX AND THREE MONTHS ENDED JUNE 30, 1999 AND 1998
<TABLE>
<CAPTION>
Six Months Six Months Three Months Three Months
June 30, 1999 June 30, 1998 June 30, 1999 June 30, 1998
-------------- -------------- ------------- -------------
<S> <C> <C> <C> <C>
INTEREST INCOME:
Interest and fees on loans $ 1,171,031 $ - $ 702,735 $ -
Taxable interest and dividends on investment
securities 731,557 - 352,597 -
Interest on federal funds and securities
purchased under agreement to resell 144,624 204,061 69,697 180,615
-------------- -------------- ------------- ------------
Total interest income 2,047,212 204,061 1,125,029 180,615
-------------- -------------- ------------- ------------
INTEREST EXPENSE:
Interest on deposits 722,795 - 362,579 -
Interest on customer repurchase agreements 100,888 - 68,000 -
Interest on short-term borrowings 3,730 15,699 2,553 10,617
-------------- -------------- ------------- ------------
Total interest expense 827,413 15,699 433,132 10,617
-------------- -------------- ------------- ------------
NET INTEREST INCOME 1,219,799 188,362 691,897 169,998
PROVISION FOR CREDIT LOSSES 186,700 - 120,700 -
-------------- -------------- ------------- ------------
NET INTEREST INCOME AFTER PROVISION FOR
CREDIT LOSSES 1,033,099 188,362 571,197 169,998
-------------- -------------- ------------- ------------
NONINTEREST INCOME:
Service charges on deposit accounts 57,225 - 33,922 -
Other income 24,873 - 12,556 -
-------------- -------------- ------------- ------------
Total noninterest income 82,098 - 46,478 -
-------------- -------------- ------------- ------------
NONINTEREST EXPENSES:
Salaries and employee benefits 952,024 220,054 476,852 147,290
Premises and equipment expenses 345,558 1,896 182,992 1,548
Advertising 49,070 - 24,011 -
Insurance expense 46,255 - 22,671 -
Outside data processing 62,263 - 37,726 -
Other expenses 320,382 210,336 172,159 159,739
-------------- -------------- ------------- ------------
Total noninterest expenses 1,775,552 432,286 916,411 308,577
-------------- -------------- ------------- ------------
NET LOSS BEFORE INCOME TAX BENEFIT (660,355) (243,924) (298,736) (138,579)
INCOME TAX BENEFIT - - - -
-------------- -------------- ------------- ------------
NET LOSS $ (660,355) $ (243,924) $ (298,736) $ (138,579)
-------------- -------------- ------------- ------------
LOSS PER SHARE:
Basic $ (0.40) $ (2.97) $ (0.18) $ (0.85)
Diluted $ (0.40) $ (2.97) $ (0.18) $ (0.85)
</TABLE>
See notes to consolidated financial statements
3
<PAGE>
EAGLE BANCORP, INC.
STATEMENTS OF CASH FLOWS
FOR THE SIX MONTHS ENDED JUNE 30, 1999 and 1998
<TABLE>
<CAPTION>
June 30, 1999 June 30, 1998
----------------- -----------------
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss $ (660,355) $ (243,934)
Adjustments to reconcile net loss to net cash
used by
Operating activities:
Provision for credit losses 186,700 -
Depreciation and amortization 136,857 1,896
Increase in accrued interest and other assets (308,365) (151,030)
Increase (decrease) in accrued expenses and
other liabilities 89,443 594,436
----------------- -----------------
Net cash (used) by operating activities (555,720) 201,368
----------------- -----------------
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of available for sale investment securities (41,642,782) -
Proceeds from maturities of available for sale securities 37,109,540 -
Decrease in federal funds sold 396,648 -
Net increase in loans (18,451,486) -
Bank premises and equipment acquired (313,870) (844,135)
----------------- -----------------
Net cash used by investing activities (22,901,950) (844,135)
----------------- -----------------
CASH FLOWS FROM FINANCING ACTIVITIES:
Increase in deposits 18,606,362 -
Increase in customer repurchase agreements 6,733,978 -
Increase in other borrowings 100,000 -
Decrease in payable to organizers - (130,000)
Increase in common stock subscriptions - 16,500,000
----------------- -----------------
Net cash provided by financing activities 25,440,340 16,370,000
----------------- -----------------
NET INCREASE IN CASH 1,982,670 15,727,233
CASH AT BEGINNING OF PERIOD 1,292,006 7,214
----------------- -----------------
CASH AND CASH EQUIVALENTS AT END OF
PERIOD $ 3,274,676 $ 15,734,447
----------------- -----------------
</TABLE>
See notes to consolidated financial statements
4
<PAGE>
EAGLE BANCORP, INC
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY FOR THE SIX MONTHS
ENDING JUNE 30, 1999
<TABLE>
<CAPTION>
Accumulated
Other Total
Common Accumulated Comprehensive Stockholders'
Stock Surplus Deficit Income Equity
-------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Balances at December 31, 1998 $ 16,500 $ 16,483,500 $(1,561,660) $ 11,155 $14,949,495
Net Loss (660,355) (660,355)
Other comprehensive income-
Unrealized gain on investment
securities available for sale (275,331) (275,331)
------------
Total other comprehensive income (loss) (935,686)
------------
Balances at June 30, 1999 $ 16,500 $ 16,483,500 $(2,222,015) $(264,176) $14,013,809
---------- --------------- --------------- ---------- ------------
</TABLE>
See notes to consolidated financial statements
<PAGE>
EAGLE BANCORP, INC.
NOTES TO FINANCIAL STATEMENTS
1. BASIS OF PRESENTATION
General - The financial statements of Eagle Bancorp, Inc. (the "Company")
included herein are unaudited; however, they reflect all adjustments
consisting only of normal recurring accruals that, in the opinion of
Management, are necessary to present fairly the results for the periods
presented. Certain information and note disclosures normally included in
financial statements prepared in accordance with Generally Accepted
Accounting Principles have been condensed or omitted pursuant to the rules
and regulations of the Securities and Exchange Commission. The Company
believes that the disclosures are adequate to make the information
presented not misleading. The results of operation for the three and six
months ended June 30, 1999, are not necessarily indicative of the results
of operations to be expected for the remainder of the year.
2. NATURE OF BUSINESS
The Company, through its bank subsidiary, provides domestic financial
services primarily in Montgomery County, Maryland. The primary financial
services include real estate, commercial and consumer lending, as well as
traditional demand deposits and savings products. From October 28, 1997
until July 20, 1998, when the Bank received regulatory approval, the
Company was considered a development stage enterprise.
3. INCOME TAXES
The Company uses the liability method of accounting for income taxes as
required by SFAS No. 109, "Accounting for Income Taxes." Under the
liability method, deferred-tax assets and liabilities are determined based
on differences between the financial statement carrying amounts and the tax
basis of existing assets and liabilities (i.e., temporary differences) and
are measured at the enacted rates that will be in effect when these
differences reverse. Deferred income taxes will be recognized when it is
deemed more likely than not that the benefits of such deferred income taxes
will be realized; accordingly, no deferred income taxes or income tax
benefits have been recorded by the Company.
4. EARNINGS
Earnings per common share is computed by dividing net income (loss) by the
weighted average number of common shares outstanding during the period.
Diluted net income (loss) per common share is computed by dividing net
income (loss) by the weighted average number of common shares outstanding
during the period, including any potential dilutive common shares
outstanding, such as options and warrants.
The calculation of net income per common share for the three and six months
ended June 30, 1998 was based on an effective stock date of June 22, 1998.
Basic and diluted earnings per share are the same for the six months and
three months ended June 30, 1999 and June 30, 1998 because the inclusion of
any stock equivalents would have been antidilutive.
6
<PAGE>
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
This discussion and analysis provides an overview of the financial
condition and results of operations of Eagle Bancorp, Inc. ("Company") and
EagleBank ("Bank") for the six and three months ended June 30, 1999. In
general, comparative discussion of the results of operations for the three
and six months ended June 30, 1999 and June 30, 1998 is not provided, as
the Company had no operations other than organizational activity in the
first and second quarters of 1998, and as such, comparisons do not provide
accurate or meaningful information regarding the Company's financial
position or results of operations.
This discussion contains forward looking statements within the meaning of
the Securities 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. These statements are based upon current and anticipated
economic conditions, nationally and in the Company's market, interest rates
and interest rate policy, the year 2000 issue, 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
statement. The Company does not undertake to update any forward looking
statement to reflect occurrences or events which may not have been
anticipated as of the date of such statements.
GENERAL
Eagle Bancorp, Inc. was incorporated under the general corporation laws of
the State of Maryland, on October 28, 1997, and is headquartered in
Bethesda, Maryland. The Company was formed to be the registered bank
holding company for EagleBank, its Maryland chartered commercial bank
subsidiary ( "EagleBank" or the "Bank").
On July 20, 1998, having received the required approvals from the State of
Maryland and Federal Reserve System and been accepted for deposit insurance
by the FDIC, EagleBank opened its first office in Rockville, Maryland and
the Company became a bank holding company. The Company initially
capitalized the Bank with $7.75 million. Since its opening, the Bank has
established a branch in Silver Spring and its main office in Bethesda. A
third branch office has been approved and will open in late August or early
September 1999. The new branch, to be located at 850 Sligo Avenue, Silver
Spring, will be the Bank's second office in Silver Spring.
At June 30, 1999, the Company had made total capital contributions to the
Bank of $9.5 million. The Company monitors the Bank's growth and plans to
make additional contributions to the Bank's capital at such times as it
deems necessary in order to maintain the Bank's capital at appropriate
levels. These contributions are from proceeds of the Company's original
offering which have been retained at the Company. In view of strong growth
at the Bank, discussed in this analysis, the Company will make a capital
contribution in August or September sufficient to allow the Bank to
maintain adequate capital levels and to accommodate reasonable levels of
anticipated further growth.
FINANCIAL CONDITION
As of June 30, 1999, assets were $76.6 million and deposits and customer
repurchase agreements were $62.3 million, an increase from year end 1998,
of 47.3% and 68.6% respectively. Management is pleased with the growth
experienced during the six months and the fact that the growth came from a
cross section of businesses targeted by the Bank.
Loans increased by $7.2 million during the first quarter as compared to
December 31, 1998, And increased an additional $11.1 million in the second
quarter.
7
<PAGE>
RESULTS OF OPERATIONS
On a consolidated basis the Company recorded a net loss of $660,355 for the
six months ended June 30, 1999, and a loss of $298,736 for the three months
ended June 30, 1999. The loss for the second quarter compares to a loss of
$361,619 for the first quarter. These losses were expected and are
consistent with anticipated results. The Bank reported a loss of $814,833
for the six month period, while the Company realized net earnings on
capital not invested in the Bank of $154,478. On a per share basis, the
Company has a net lost $0.40 for the six months ended June 30, 1999, as
compared to a net loss of $2.97 per share for the six months ended June 30,
1998. The loss for the 1998 period reflects the fact that the Company had
shares outstanding for only nine days during the first six months of 1998,
resulting in a significantly lower average weighted number of shares
outstanding. These losses are expected to be reduced in the future as the
Bank increases its deposit base and generates additional loan volume.
As noted above, the Bank ended the six months with deposits and customer
repurchase agreements at $62.3 million and lending activity increased
resulting in a net increase in loans, from year end, of $18.3 million.
While deposit and customer repurchase agreement growth has exceeded
projections, the competitive market has caused lending activity to lag
behind expectations. The Bank has been committed to maintaining a high
quality portfolio which returns a reasonable market rate and is, therefore,
being selective in the loans it is approving. Although, there maybe a small
sacrifice in current income, the Company believes the Bank will benefit
from this practice in the long term.
The Bank plans to maintain the allowance for credit losses at an adequate
level and ended the quarter with an allowance of 1% of its outstanding
loans. The Company, exclusive of the Bank, held $4.7 million in
participation loans. No allowance is being maintained on $4 million of
those loans considered to be of minimal risk due to an underlying
guarantee, however, 1% is maintained for the remaining loans held by the
Company.
It was expected that the Bank would sustain losses during its start up
period and not show an operating profit for any month for at least eighteen
months after opening for business. Establishment of additional branches
could extend that period for several months. Earnings from investments by
the Company of capital not invested in the Bank partially offsets losses of
the Bank and, on a consolidated basis, the Company may show a monthly
profit earlier, although there can be no assurance of this.
NET INTEREST INCOME
Net interest income is the difference between income on assets and the cost
of funds supporting those assets. Earning assets are composed primarily of
loans and investments; interest bearing deposits and customer repurchase
agreements and other borrowings make up the cost of funds. Noninterest
bearing deposits and capital are other components representing funding
sources. Changes in the volume and mix of assets and funding sources along
with the changes in yields earned and rates paid, determine changes in net
interest income.
The net interest income for the six months ended June 30, 1999, was
$1,219,799, and $691,897 for the three months ended June 30, 1999. As a
result of the growth in the loan portfolio, the three months ended June 30,
1999 was the first period in which a majority of total interest income came
from interest on loans as opposed to interest on investment securities and
federal funds sold. Continued growth of the loan portfolio will result in
it contributing a greater portion of interest income both because of volume
and yield. The yield on loans is 3% to 5% higher than on investment
portfolio holdings. During the six and three months ended June 30, 1999,
the average yield on loans was 8.65% and 8.78%, as compared to average
yields of 5.11% and 5.03% on the Company's investment portfolio.
Total interest expense of $827,413 for the six months ended June 30, 1999
and $433,132 for the three months ended June 30, 1999, has remained stable
as relating to rate but increased because of increased deposit volume.
Rates paid are a function of the market and the Bank has offered
competitive rates while building relationships
8
<PAGE>
and does not have any reliance on brokered funds. Total deposits and
repurchase agreements increased by approximately $25 million at June 30,
1999 over December 31, 1998, with $11.0 million of that increase coming in
the second quarter. The average rate on deposits and customer repurchase
agreements was 3.70% for the six months ended June 30, 1999.
ALLOWANCE AND PROVISION FOR CREDIT LOSSES
The provision for credit losses represents the expense recognized to fund
the allowance for credit losses. This amount is based on many factors which
reflect management's assessment of the risk in its loan portfolio. Those
factors include economic conditions and trends, the value and adequacy of
collateral, volume and mix of the portfolio, performance of the portfolio,
internal loan processes and capital adequacy of the Company and Bank.
During the quarter, management elected to maintain an allowance of 1% of
outstanding loans. Based principally on current economic conditions,
perceived asset quality and a strong capital position, the allowance is
believed to be adequate. At June 30, there were no commercial or real
estate loans past due more than thirty days and only two consumer loan over
thirty days in the amount of $17,000.
NONINTEREST INCOME
Noninterest income is primarily deposit account service charges and fees
and noninterest loan fees and amounted to $82,098 for the six months and
$46,478 for the quarter. This source of income is expected to increase as
the Bank's deposit account base increases. Management is continually
seeking sources of noninterest income and during the second quarter entered
into an agreement with an off premise ATM service provider which will
result in commission income to the Bank. Other sources are being considered
and will be pursued if management believes they are viable.
NONINTEREST EXPENSE
Noninterest expense was $1,775,552 for the six month period and $916,411
for the quarter with more than 50% representing salaries and employee
benefit costs. Management has made a concentrated effort to budget and
monitor noninterest expenses and believes it has established practices to
control these expenses while meeting the requirements of an aggressively
growing bank.
YEAR 2000
The year 2000 ("Y2K") issue is the result of computer programs using two
digits to define the year, rather than four. Therefore, any computer
programs that have time-sensitive software may recognize a date using "00"
as the year 1900 rather than the year 2000. This could result in a system
failure or miscalculations causing disruptions of operations, including
among other things, a temporary inability to process transactions, send
invoices, or engage in similar normal business activities. Timely and
accurate data processing is essential to the operations of the Company.
The Company enjoys certain advantages as it addresses year 2000 issues. It
is not encumbered with embedded systems and programs purchased years ago,
but has, and is installing, new monitored applications. The Bank's data
processing is outsourced and the Bank is carefully reviewing its service
provider to assure that it is meeting its schedule for full compliance.
During the months of March and April the Bank has and will be testing the
servicer's compliance with year 2000. The tests conducted in March went
well and all systems seemed to be compliant.
Year 2000 was a major issue in the selection of the Bank's data processing
provider and was foremost in its consideration of other acquisitions of
systems and applications. At the same time the Bank is actively testing its
systems and requiring its vendors to show evidence of readiness for Y2K. As
a result of the base from which
9
<PAGE>
the Company commenced its operations, the Company believes that incremental
costs related to Y2K compliance are not expected to be material to the
financial performance of the Company. Because all systems and services are
new and were purchased Y2K compliant, the estimated cost of testing and
reviewing is not expected to exceed $25,000.
The Bank is also working with customers to increase awareness in their
businesses of the need for and importance of Y2K attention.
The Board of Directors of the Bank is active in its oversight of Y2K
preparedness and regularly receives reports from management. The failure of
the Company, its principal data processing provider, its customers, or of
other service providers, including utilities, and government agencies, to
be year 2000 compliant in a timely manner could have a negative impact on
the Company's business, including but not limited to an inability to
provide accurate and timely processing of customer transactions, and delays
in loan collection practices. The Company's belief that it, and its primary
suppliers of data processing services, will be Y2K compliant, are based on
a number of assumptions and on statements made by third parties, involve
events and actions which may be beyond the control of the Company, and are
subject to uncertainty. The Company also is not able to predict the effect,
if any, on the Company, financial markets or society in general of the
public's reaction to Y2K.
10
<PAGE>
PART II OTHER INFORMATION
ITEM 1 LEGAL PROCEEDINGS
None.
ITEM 2 CHANGES IN SECURITIES
None.
ITEM 3 DEFAULTS UPON SENIOR SECURITIES
None.
ITEM 4 SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
On May 14, 1999, the annual meeting of shareholders
of the Company was held for the purpose ) electing five (5) directors
to serve until the next annual meeting and until their successors are
duly elected and qualified; (2) considering and voting upon the
Company's 1998 Stock Option Plan; (3) ratifying the appointment of the
Company's independent auditors.
The name of each director elected at the meeting, who constitute the
entire Board of Directors in office upon completion of the meeting, and
the votes cast for such persons are set forth below.
<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------------------
Name For Against/Withheld Abstentions Broker Non-votes
---------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Leonard L. Abel 1,205,027 6,800 - -
-------------------- ------------------ ------------------ --------------- ----------------
Eugene F. Ford, Sr. 1,205,027 6,800 - -
-------------------- ------------------ ------------------ --------------- ----------------
William A. Koier 1,205,027 6,800 - -
-------------------- ------------------ ------------------ --------------- ----------------
Ronald D. Paul 1,205,027 6,800 - -
-------------------- ------------------ ------------------ --------------- ----------------
H.L. Ward 1,205,027 6,800 - -
-------------------- ------------------ ------------------ --------------- ----------------
</TABLE>
The vote by which the Company's 1999 Stock Option Plan, pursuant to
which options to purchase up to 247,500 shares of common stock may be
issued to officers, directors and employees of the Company and its
subsidiaries, was approved, was as follows:
For: 969,545
Against: 30,600
Abstain: 35,700
Broker Non-votes: 175,982
The vote for ratification of the appointment of Stegman & Company as
the Company's independent auditors was as follows:
For: 1,181,027
Against: -
Abstain: 30,800
Broker Non-votes: -
ITEM 5 OTHER INFORMATION
None.
11
<PAGE>
ITEM 6 EXHIBITS AND REPORTS ON FORM 8-K
(a) Exhibits
(11) Statement Re; Computation of Per Share Earnings
(21) Subsidiaries of the Registrant
The only subsidiary of the registrant is EagleBank, a
Maryland chartered commercial banking company.
(27) Financial Data Schedule
(b) Reports on Form 8-K
None.
12
<PAGE>
EXHIBIT INDEX
Exhibit No. Description
----------- -----------
(11) Statement Re; Computation of Per Share Earnings
(21) Subsidiaries of the Registrant
The only subsidiary of the registrant is EagleBank, a
Maryland chartered commercial banking company.
(27) Financial Data Schedule
13
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
EAGLE BANCORP, INC.
Date: August 10, 1999 By: /s/ Ronald D. Paul
----------------------------------------------
Ronald D. Paul, President
Date: August 10, 1999 By: /s/ Wilmer L. Tinley
----------------------------------------------
Wilmer L. Tinley, Senior Vice President, CFO
14
Exhibit 11
Statement of Computation of Per Share Earnings
Set forth below are the bases for the computation of earnings per share
for the periods shown. The Company had no shares outstanding prior to June 22,
1998.
Six Months Ended June 30,
--------------------------------------
Earnings (loss) Per Common Share 1999 1998
Basic $(0.40) (2.97)
Average Shares Outstanding 1,650,000 82,044
Diluted $(0.40) (2.97)
Average Shares Outstanding 1,650,000 82,044
15
<TABLE> <S> <C>
<ARTICLE> 9
<LEGEND>
This schedule contains summary financial information extracted from the
Form 10-QSB and is qualified in its entirety by reference to such financial
statements.
</LEGEND>
<CIK> 0001050441
<NAME> Eagle Bancorp, Inc.
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1999
<PERIOD-END> JUN-30-1999
<CASH> 3,275
<INT-BEARING-DEPOSITS> 0
<FED-FUNDS-SOLD> 5,032
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 26,828
<INVESTMENTS-CARRYING> 0
<INVESTMENTS-MARKET> 0
<LOANS> 38,599
<ALLOWANCE> 351
<TOTAL-ASSETS> 76,633
<DEPOSITS> 53,237
<SHORT-TERM> 9,039
<LIABILITIES-OTHER> 344
<LONG-TERM> 0
<COMMON> 17
0
0
<OTHER-SE> 13,997
<TOTAL-LIABILITIES-AND-EQUITY> 76,633
<INTEREST-LOAN> 1,171
<INTEREST-INVEST> 732
<INTEREST-OTHER> 145
<INTEREST-TOTAL> 2,047
<INTEREST-DEPOSIT> 723
<INTEREST-EXPENSE> 827
<INTEREST-INCOME-NET> 1,220
<LOAN-LOSSES> 187
<SECURITIES-GAINS> 0
<EXPENSE-OTHER> 1,776
<INCOME-PRETAX> (660)
<INCOME-PRE-EXTRAORDINARY> (660)
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (660)
<EPS-BASIC> (0.40)
<EPS-DILUTED> (0.40)
<YIELD-ACTUAL> 6.58
<LOANS-NON> 0
<LOANS-PAST> 0
<LOANS-TROUBLED> 0
<LOANS-PROBLEM> 0
<ALLOWANCE-OPEN> 164
<CHARGE-OFFS> 0
<RECOVERIES> 0
<ALLOWANCE-CLOSE> 351
<ALLOWANCE-DOMESTIC> 351
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 351
</TABLE>
