<PAGE>
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 1995
-------------
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 0-14379
---------
EAGLE BANCSHARES, INC.
--------------------------------------------------------------------
(EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER)
Georgia 58-1640222
------------------------------- ------------------------
(STATE OR OTHER JURISDICTION OF (I.R.S. EMPLOYER
INCORPORATION OR ORGANIZATION) IDENTIFICATION NO.)
4305 Lynburn Drive, Tucker, Georgia 30084-4441
-----------------------------------------------------------------
(ADDRESS OF PRINCIPAL EXECUTIVE OFFICES) (ZIP CODE)
(404) 908-6690
----------------------------------------------------
(REGISTRANT'S TELEPHONE NUMBER, INCLUDING AREA CODE)
Not Applicable
----------------------------------------------------------------------
(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
------- ------
APPLICABLE ONLY TO ISSUERS INVOLVED
IN BANKRUPTCY PROCEEDINGS DURING
THE PRECEDING FIVE YEARS:
Indicate by check mark whether the registrant has filed all documents and
reports required to be filed by Sections 12, 13 or 15(d) of the Securities
Exchange Act of 1934 subsequent to the distribution of securities under a plan
confirmed by a court.
Yes No NOT APPLICABLE
----- ------ -----------------
APPLICABLE ONLY TO CORPORATE ISSUERS:
Indicate the number of shares outstanding of each of the issuer's classes of
common stock, as of the latest practicable date.
Class Outstanding at July 31, 1995
------------------- ----------------------------
Common Stock, $1.00 Par Value 1,556,100 shares
Index of Exhibit on Page 15
<PAGE>
EAGLE BANCSHARES, INC. AND SUBSIDIARIES
FORM 10-Q
FOR THE QUARTER ENDED JUNE 30, 1995
TABLE OF CONTENTS
Page
Number
PART I. Financial Information
Item 1. Financial Statements
Consolidated Statements of
Financial Condition at
June 30, 1995 and March 31, 1995 3
Consolidated Statements of Income -
Three months ended June 30, 1995 and 1994 4
Consolidated Statements of Cash Flows -
Three months ended June 30, 1995 and 1994 5
Notes to Consolidated Financial Statements 7
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations 8
PART II. Other Information
Item 1. Legal Proceedings 12
Item 2. Changes in Securities 12
Item 3. Defaults upon Senior Securities 12
Item 4. Submission of Matters to a Vote of
Security Holders 12
Item 5. Other Information 12
Item 6. Exhibits and Reports on Form 8-K 12
Signatures 14
Index of Exhibits 15
2
<PAGE>
EAGLE BANCSHARES, INC.
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(Unaudited)
(in thousands except per share data)
<TABLE>
<CAPTION>
JUNE 30, March 31,
1995 1995
--------------------------------------------------------------------------
<S> <C> <C>
ASSETS:
Cash and amounts due from banks $ 7,650 $ 6,214
Interest-bearing deposits 85 144
Loans receivable held for sale 48,369 41,220
Investment securities available for sale 20,440 20,939
Investment securities held to maturity 56,620 57,599
Loans receivable, net 319,553 303,906
Stock in Federal Home Loan Bank, at cost 6,291 5,984
Premises and equipment 9,161 8,299
Real estate acquired in settle of loans, net 583 615
Real estate held for development and sale 8,918 6,620
Accrued interest receivable 3,236 2,996
Other assets 4,431 2,781
--------------------------------------------------------------------------
Total assets $485,337 457,317
--------------------------------------------------------------------------
LIABILITIES AND STOCKHOLDERS EQUITY
LIABILITIES:
Deposits $305,754 286,315
Advance payments by borrowers for
property taxes and insurance 2,230 2,187
Federal Home Loan Bank advances 117,125 119,953
Deferred income taxes 586 441
Drafts outstanding 20,238 10,778
Accrued expenses and other liabilities 4,656 4,007
--------------------------------------------------------------------------
Total liabilities 450,589 423,681
--------------------------------------------------------------------------
STOCKHOLDERS EQUITY:
Common stock, $1.00 par value,
10,000,000 shares authorized,
1,707,000 and 1,694,500 issued in
June and March, respectively 1,707 1,695
Additional paid-in capital 8,298 8,200
Retained earnings, substantially restricted 25,753 25,075
Net unrealized gain on investment
securities available for sale 319 46
Employee Stock Ownership Plan (ESOP) debt - (11)
Unamortized restricted stock (253) (293)
Treasury stock, 150,900 shares at cost (1,076) (1,076)
--------------------------------------------------------------------------
Total stockholders equity 34,748 33,636
--------------------------------------------------------------------------
TOTAL LIABILITIES AND STOCKHOLDERS EQUITY $485,337 $457,317
--------------------------------------------------------------------------
</TABLE>
3
<PAGE>
EAGLE BANCSHARES, INC.
CONSOLIDATED STATEMENT OF INCOME
<TABLE>
<CAPTION>
(Unaudited) Three Months Ended
(in thousands except per share data) June 30,
1995 1994
------------------------------------------------------------
<S> <C> <C>
Interest income:
Interest on loans $8,376 $5,608
Interest on mortgage-backed
securities 439 511
Interest on investment securities
and other interest earning assets 1,177 915
------------------------------------------------------------
Total interest income 9,992 7,034
------------------------------------------------------------
Interest expense:
Interest on deposits 3,782 2,654
Interest on borrowings 1,867 447
------------------------------------------------------------
Total interest expense 5,649 3,101
------------------------------------------------------------
Net interest income 4,343 3,933
Provision for loan losses - 182
------------------------------------------------------------
Net interest income after
provision for loan losses 4,343 3,751
------------------------------------------------------------
Other income:
Mortgage production fees 1,065 1,069
Service charges 157 139
Gain on sale of loans - 71
Gain on sale of mortgage-backed
securities - 14
Miscellaneous 474 383
------------------------------------------------------------
Total other income 1,696 1,676
------------------------------------------------------------
Other expenses:
Salaries and employee benefits 2,704 2,506
Net occupancy expense 499 455
Provision for losses on real estate owned - 10
Federal insurance premium 160 144
Marketing Expense 102 86
Data processing 266 190
Miscellaneous 651 587
------------------------------------------------------------
Total other expenses 4,382 3,978
------------------------------------------------------------
Income before income taxes 1,657 1,449
Income tax expense 590 550
------------------------------------------------------------
Net income $1,067 $ 899
------------------------------------------------------------
EARNINGS PER SHARE $.69 $.58
------------------------------------------------------------
</TABLE>
4
<PAGE>
EAGLE BANCSHARES, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
<TABLE>
<CAPTION>
(Unaudited)
(in thousands)
Three Months ended June 30, 1995 1994
-------------------------------------------------------------
<S> <C> <C>
Cash flows from operating activities:
Net income $ 1,067 $ 899
Adjustments to reconcile net income to
net cash used in operating activities:
Depreciation, amortization and accretion 913 196
Provision for loan losses - 182
Provision for losses on real estate
owned - 10
Loss (gain) on sale of real estate 11 (8)
Gain on sale of loans - (71)
Gain on sale of mortgage-backed
securities - (14)
Amortization of restricted stock award 40 110
Amortization of deferred loan fees (424) (474)
Proceeds from sale of loans receivable 80,528 80,576
Originations of loans held for sale (87,677) (75,687)
Changes in assets and liabilities:
(Increase) decrease in accrued
interest receivable (240) (723)
Decrease (increase) in other assets (1,775) (1,641)
Increase (decrease) in drafts
outstanding 9,460 1,813
Increase (decrease) in accrued expense
and other liabilities 794 (485)
-------------------------------------------------------------
Net cash provided by (used in) $ 2,697 $ 4,683
operating activities
-------------------------------------------------------------
Cash flows from investing activities:
Purchase of investment securities
available for sale - (9,112)
Proceeds from sale of investment
securities available for sale - 5,123
Purchases of investment securities
held to maturity - (22,192)
Principle payments received on
investments available for sale 447 1,362
Principle payments received on
investments held to maturity 836 416
Proceeds from maturities of
investment securities held to maturity - 1,000
Proceeds from maturities of investment
securities available for sale 464 -
Loan originations, net of repayments (15,403) (13,666)
Purchases of loans receivable - (3,395)
Proceeds from sale of real estate
acquired in settlement of loans 58 516
Purchases of FHLB stock (307) -
Purchase of premises and equipment (1,506) (777)
Additions to real estate held for
development and sale (2,298) -
-------------------------------------------------------------
Net cash (used in) provided by
investing activities $(17,709) $(40,725)
-------------------------------------------------------------
</TABLE>
5
<PAGE>
EAGLE BANCSHARES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS - CONTINUED
(Unaudited)
(in thousands)
<TABLE>
<CAPTION>
Three Months ended June 30, 1995 1994
-------------------------------------------------------------
<S> <C> <C>
Cash flows from financing activities:
Net change in time deposits 22,100 12,111
Net change in demand deposit accounts (2,661) 11,424
Repayment of FHLB advances and other
borrowings (87,787) (20,961)
Proceeds from FHLB advances and other
borrowings 84,959 33,479
Dividends paid (386) (302)
Principal reduction of ESOP debt 11 53
Proceeds from exercise of stock options 110 37
Increase (decrease) in advance payments
from borrowers for property
taxes and insurance 43 701
-------------------------------------------------------------
Net cash (used in) provided by
financing activities 16,389 36,542
-------------------------------------------------------------
Net (decrease) increase in cash and
cash equivalents 1,377 500
Cash and cash equivalents at beginning
of year 6,358 7,858
-------------------------------------------------------------
Cash and cash equivalents at end of
period $ 7,735 $ 8,358
-------------------------------------------------------------
-------------------------------------------------------------
Supplemental disclosure of cash paid
during period for:
-------------------------------------------------------------
Interest $ 5,739 $ 3,060
-------------------------------------------------------------
Income taxes $ 530 $ 520
-------------------------------------------------------------
Supplemental schedule of noncash
investing and financing activities:
-------------------------------------------------------------
Acquisition of real estate in
settlement on loans $ 258 $ 203
-------------------------------------------------------------
Loans made to finance real estate $ 295 $ 575
-------------------------------------------------------------
</TABLE>
See accompanying notes to consolidated financial statements
6
<PAGE>
EAGLE BANCSHARES, INC. AND SUBSIDIARIES
NOTES TO INTERIM UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
JUNE 30, 1995
A. BASIS OF PRESENTATION:
The accompanying unaudited consolidated financial statements have been prepared
in accordance with the instructions for preparation of the Securities and
Exchange Commission Form 10-Q. Accordingly, they do not include all of the
information and disclosures required for fair presentation in accordance with
generally accepted accounting principles. These financial statements should
therefore be read in conjunction with management's discussion and analysis of
financial condition and results of operations included in this report and the
complete annual report for the year ended March 31, 1995, which has been filed
with the Company's most recent Form 10-K. In the opinion of management, all
eliminations and normal recurring adjustments considered necessary for fair
presentation have been included. Operating results for the three month period
ended June 30, 1995, are not necessarily indicative of the results that may be
expected for the fiscal year ending March 31, 1996.
B. RECLASSIFICATION OF PRIOR PERIOD AMOUNTS:
Certain reclassifications have been made in the Company's financial statements
for the prior fiscal period to conform to the classifications used in the
financial statements for the current fiscal period.
7
<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
-----------------------------------------------------------------------
OF OPERATIONS
-------------
LIQUIDITY AND CAPITAL RESOURCES
The Companys Asset and Liability Committee manages liquidity to ensure that
there is sufficient cash flow to satisfy demands for credit, deposit withdrawals
and other Company needs. Traditional sources of liquidity include deposits,
FHLB advances and payments on loans. Savings deposits are highly dependent upon
market and other conditions largely outside the Company's control; while loan
principal repayments are a relatively stable source of funds. The Companys
deposits increased 6.8% during the quarter from $286,315,000 at March 31, 1995
to $305,754,000 at June 30, 1995. This increase was primarily in certificates of
deposit with maturities of one year or less.
Under current regulations, the Association is required to maintain liquid assets
at five percent or more of its net withdrawable deposits plus short-term
borrowings (due in one year or less). The Association has traditionally
maintained liquidity levels above the regulatory minimum and management
anticipates this trend will continue. At June 30, 1995, the Association's
liquidity ratio was 5.2%.
Beginning April 1, 1995, the Company formed an operating subsidiary, PrimeEagle
Mortgage and consolidated all real estate lending activities into this business
unit. This business unit generates revenues by originating construction loans,
permanent mortgage loans and Small Business Administration loans (SBA). The
permanent mortgage and SBA loans are sold to investors. During the current
quarter, PrimeEagle Mortgage originated approximately $88,000,000 first mortgage
loans and $81,000,000 were sold and funded by investors. During the quarter
ended June 1994, $76,000,000 first mortgage loans were originated and
approximately $81,000,000 were funded by investors. The Company manages the
funding requirements of these loans primarily with short term advances from the
FHLB. In addition, outstanding commitments to originate loans, exclusive of the
undisbursed portion of loans in process, increased to approximately $19.3
million at June 30, 1995 from $5.7 million at March 31, 1995.
8
<PAGE>
REGULATORY CAPITAL
The Financial Institution Reform, Recovery, and Enforcement Act (FIRREA) of 1989
established minimum capital requirements for thrift institutions. FIRREA
requires savings and loan associations to have core capital of at least 3% of
total assets and tangible capital of at least 1.5% of total assets.
Additionally, institutions are required to meet a risk-based capital requirement
consisting of 8% of the value of risk weighted assets. The Association's
regulatory capital exceeds each of the above mentioned capital requirements and
allows Tucker Federal to be classified as a Well Capitalized Institution under
current OTS standards. Management anticipates that the Association will
continue to meet the capital requirements.
At June 30, 1995 the Association's regulatory capital and the required minimum
amount according to FIRREA are summarized as follows:
<TABLE>
<CAPTION>
---------------------------------------------------
Regulatory Required Excess
Capital Capital Capital
---------------------------------------------------
<S> <C> <C> <C>
Tangible Capital $30,412 $ 7,174 $23,238
Core Capital $30,412 $14,348 $16,064
Risk-based Capital $33,800 $26,889 $ 6,911
---------------------------------------------------
</TABLE>
RESULTS OF OPERATIONS
Net income for the three months ended June 30, 1995 was $1,067,000 or $.69 per
share compared to $899,000 or $.58 per share for the three month period ended
June 30, 1994. The increase in net income is attributable to an increase in net
interest income and a reduced provision for loan losses. Net interest income
increased 10% for the quarter ending June 30, 1995, to $4,343,000 from
$3,933,000 for the quarter ending June 30, 1994. The increase is primarily the
result of an increase in loans receivable.
9
<PAGE>
NET INTEREST SPREAD
A major factor influencing the profitability of the Company is the difference
between the interest earned on assets and the interest paid on liabilities. This
is referred to as the "net interest spread". The Company's net interest spread
changes due to the repricing of assets and liabilities at different times in the
economic cycle. Since this time last year the Companys net interest spread
decreased 80 basis points to 3.74% for the three months ended June 30, 1995 from
4.54% for the three months ended June 30, 1994.
The decreasing trend in the Company's net interest spread was anticipated by
management as the cost of interest bearing liabilities increased beginning in
early 1995. The overall interest earned on interest earning assets increased 37
basis points from 8.81% for the three months ended June 30, 1994 to 9.18% for
the same period ended June 30, 1995. Additionally, the cost of interest bearing
liabilities increased 117 basis points from 4.27% for the three months ended
June 30, 1994 to 5.44% for the three months ended June 30, 1995.
The following table summarizes the net interest spread for the periods
indicated.
<TABLE>
<CAPTION>
Three Month Period
Ended
June 30,
1995 1994
-------------------------
<S> <C> <C>
Weighted average yield on all interest earning assets 9.18% 8.81%
Weighted average cost of all interest bearing liabilities 5.44% 4.27%
--------------------------------------------------------------------------------
Net interest spread 3.74% 4.54%
--------------------------------------------------------------------------------
</TABLE>
OTHER INCOME
Other income remained virtually unchanged at $1,696,000 for the three months
ended June 30, 1995 compared to $1,676,000 for the three months ended June 30,
1994. The largest portion of the Companys non-interest income is generated by
mortgage banking activities and mortgage production fees. Mortgage production
fees represented 63 percent of total other income for the quarter ending June
30, 1995 versus 64 percent for the same quarter ended June 30, 1994. These fees
are directly correlated to the volume of loans originated and sold. Loans sold
and funded in the secondary market remained unchanged for the first quarter
ended June 30, 1995 and June 30, 1994 at $81,000,000.
For the three month period ended June 30, 1994, the Company sold mortgage-backed
securities from it available for sale portfolio of approximately $5.1 million.
The gain recorded on the sales was $14,000. The Company did not record any gains
from the sale of loans or mortgage-backed securities for the same period ended
June 30, 1995. Management does not rely on the sale of loans and mortgage-backed
securities as a continuing source of income.
OTHER EXPENSES
Other expenses increased 10.2% for the three month period ended June 30, 1995 to
$4,382,000 compared to $3,978,000 for the comparable period ending June 30,
1994. The increase is in part due to the increase in salaries and benefits from
$2,506,000 for the first quarter ended June 30, 1994 to $2,704,000 for the first
10
<PAGE>
quarter ended June 30, 1995. The increase is caused by the addition of new loan
production staff . In addition, the Companys data processing expense increased
as a result of the growth in the number of checking accounts and the loan
servicing portfolio.
RESERVE FOR LOAN LOSSES
Asset quality at June 30, 1995, showed continuing strength with nonperforming
assets to total assets at 0.22% compared to 0.27% at March 31, 1995. As a
result, no provision for loan losses was recorded. Loan loss reserves totaled
$3,388,000 at June 30, 1995 and $3,362,000 at March 31, 1995. At June 30, 1995,
reserves represented 1.1% of loans receivable and real estate owned and 180.25%
of problem assets. Management believes that the reserves for losses on loans are
adequate based upon management's evaluation of, among other things, estimated
value of the underlying collateral, loan concentrations, specific problem loans,
and economic conditions that may affect the borrower's ability to repay and such
other factors as, in management's judgment, deserve recognition under existing
economic conditions. While management uses available information to recognize
losses on loans, future additions to the allowances may be necessary based on
changes in economic conditions and composition of the Association's loan
portfolio. The following table summarizes problem assets for the periods
indicated.
NON-ACCRUAL LOANS & REAL ESTATE OWNED
<TABLE>
<CAPTION>
June 30, March 31, March 31, March 31, March 31,
(dollars in thousands) 1995 1995 1994 1993 1992
-----------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Non-accrual loans:
Residential real estate $ 487 603 780 2,057 1,051
Commercial real estate - - - - -
Consumer - - 7 - 87
---------------------------------------------------------------------------------------------------------------------------
Total $ 487 603 787 2,057 1,138
---------------------------------------------------------------------------------------------------------------------------
Potential problem loans 810 954 - 2,165 -
Loans contractually delinquent 90
days & still accruing - - - - -
Troubled debt restructurings - - - - -
---------------------------------------------------------------------------------------------------------------------------
Total problem loans $ 1,297 1,557 787 4,222 1,138
---------------------------------------------------------------------------------------------------------------------------
Real estate owned, net $ 583 615 671 2,137 3,696
---------------------------------------------------------------------------------------------------------------------------
Total problem assets $ 1,880 2,172 1,458 6,359 4,834
---------------------------------------------------------------------------------------------------------------------------
Total problem assets/
Total assets .39% .47% .46% 1.98% 1.60%
---------------------------------------------------------------------------------------------------------------------------
Loan loss reserve/
Total problem assets 180.25% 154.79% 229.70% 38.06% 18.45%
---------------------------------------------------------------------------------------------------------------------------
</TABLE>
11
<PAGE>
PART II - OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS
-----------------
There are no material pending legal proceedings to which the
Company, the Association or any subsidiary is a party or to which
any of their property is subject.
ITEM 2. CHANGES IN SECURITIES
---------------------
None
ITEM 3. DEFAULTS UPON SENIOR SECURITIES
-------------------------------
None
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
---------------------------------------------------
The 1995 Annual Meeting of Shareholders of Eagle Bancshares, Inc. was
held on July 20, 1995. A total of 1,307,576 shares of common stock
which equals 84.11% of the 1,554,600 shares outstanding as of the
record date were represented in person or by proxy. The Board of
Directors submitted three proposals to be voted upon by shareholders:
(i) the election of Weldon A. Nash, Jr. and Conrad J. Sechler, Jr. to
serve as Directors for a three year term; (ii) the approval of the 1995
Employees Stock Incentive Plan; and (iii) the ratification of the Board
of Directors' appointment of Arthur Anderson LLP to serve as
independent auditors for the fiscal year ending March 31, 1996. Weldon
A. Nash, Jr. and Conrad J. Sechler, Jr. were elected to serve as
Directors for a three year period and until their successors are duly
elected and qualified. Shareholder votes for the election of Directors
are set forth below :
<TABLE>
<CAPTION>
Broker
For Withheld Nonvotes
--------- -------- --------
<S> <C> <C> <C>
Weldon A. Nash, Jr. 1,086,076 221,500 None
Conrad J. Sechler, Jr. 1,269,513 38,063 None
</TABLE>
The Directors whose names are set forth below will continue to serve
for the remainder of their terms, as indicated.
Director Term Expires*
-------- -------------
Richard B. Inman, Jr. 1996
Charles J. Alford, Jr. 1996
Conrad J. Sechler, Sr. 1996
George G. Thompson 1998
Richard J. Burrell 1998
* The term of office will expire on the later of the date of the
annual meeting of shareholders for the year indicated when their
replacements are duly elected and qualified.
The shareholders approved the 1995 Employees Stock Incentive Plan with
915,050 voting for, 102,056 voting against, 24,254 abstaining from
voting and 266,216 broker nonvotes.
12
<PAGE>
The appointment by the Board of Directors of Arthur Andersen to serve
as independent auditors for the fiscal year ending March 31, 1996, was
ratified by the shareholders. The shareholders voted 1,303,985 for
Arthur Andersen, 1421 voted against and 2,170 abstained from voting.
ITEM 5. OTHER INFORMATION
-----------------
None
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
----------------------------------
(11) Computation of per share earnings
Reports on Form 8-K
None
13
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
EAGLE BANCSHARES, INC.
(Registrant)
Date: August 14, 1995 /s/ Conrad J. Sechler, Sr.
--------------------------
Conrad J. Sechler, Sr.
Chairman of the Board,
Chief Executive Officer
and Duly Authorized
Representative
Pursuant to the requirements of the Securities Act of 1934, this report
has been signed below by the following persons on behalf of the Registrant in
the capacities and on the dates indicated.
Date: August 14, 1995 /s/ Zelma B. Martin
--------------------
Zelma B. Martin
Principal Financial and
Accounting Officer
Date: August 14, 1995 /s/ Conrad J. Sechler, Sr.
--------------------------
Conrad J. Sechler, Sr.
Chairman of the Board
14
<PAGE>
EAGLE BANCSHARES, INC.
INDEX OF EXHIBITS
<TABLE>
<CAPTION>
Exhibit
Number Description Page No.
------- ----------------------------------------- ---------
<S> <C> <C>
11 Computation of per share earnings 16
</TABLE>
15
<PAGE>
EXHIBIT 11
EAGLE BANCSHARES, INC.
Statement re: Computation of per share earnings
The following computation set forth the calculation of primary earnings per
share and fully diluted earnings per share for the three months ending June 30,
1995.
<TABLE>
<CAPTION>
Three months ending June 30, 1995
---------------------------------
Primary Fully Diluted
--------------------------------------------------------------------------------
<S> <C> <C>
Net income per share: $.69 $.69
--------------------------------------------------------------------------------
Weighted average number of common
shares outstanding 1,543,721 1,543,721
Increase due to assumed exercise of
dilutive stock options 20,984 30,159
--------------------------------------------------------------------------------
Adjusted weighted average number of
common and common equivalent
shares outstanding 1,564,705 1,573,880
--------------------------------------------------------------------------------
</TABLE>
The dilutive effect of common stock equivalents on earnings per share is less
than 3% of the quarter ending June 30, 1995; therefore, simple weighted average
shares outstanding are used in computing earnings per share.
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 9
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> MAR-31-1996
<PERIOD-START> APR-01-1995
<PERIOD-END> JUN-30-1995
<CASH> 7,650
<INT-BEARING-DEPOSITS> 85
<FED-FUNDS-SOLD> 0
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 20,440
<INVESTMENTS-CARRYING> 56,620
<INVESTMENTS-MARKET> 58,234
<LOANS> 319,553
<ALLOWANCE> 3,388
<TOTAL-ASSETS> 485,337
<DEPOSITS> 305,754
<SHORT-TERM> 0
<LIABILITIES-OTHER> 4,656
<LONG-TERM> 0
<COMMON> 1,707
0
0
<OTHER-SE> 33,041
<TOTAL-LIABILITIES-AND-EQUITY> 485,337
<INTEREST-LOAN> 8,376
<INTEREST-INVEST> 1,177
<INTEREST-OTHER> 439
<INTEREST-TOTAL> 9,992
<INTEREST-DEPOSIT> 3,782
<INTEREST-EXPENSE> 5,649
<INTEREST-INCOME-NET> 4,343
<LOAN-LOSSES> 0
<SECURITIES-GAINS> 0
<EXPENSE-OTHER> 4,382
<INCOME-PRETAX> 1,657
<INCOME-PRE-EXTRAORDINARY> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 1,067
<EPS-PRIMARY> .69
<EPS-DILUTED> .69
<YIELD-ACTUAL> 9.18
<LOANS-NON> 487
<LOANS-PAST> 0
<LOANS-TROUBLED> 0
<LOANS-PROBLEM> 810
<ALLOWANCE-OPEN> 3,362
<CHARGE-OFFS> 8
<RECOVERIES> 34
<ALLOWANCE-CLOSE> 3,388
<ALLOWANCE-DOMESTIC> 0
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 0
</TABLE>
