x
|
QUARTERLY
REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934
|
o
|
TRANSITION
REPORT UNDER SECTION 13 OR 15(d) OF THE EXCHANGE
ACT
|
United
States
|
81-0531318
|
(State
or other jurisdiction of incorporation or organization)
|
(I.R.S.
Employer Identification No.)
|
Common
stock, par value $0.01 per share
|
1,087,557
shares outstanding
|
PAGE
|
|||
PART
I.
|
FINANCIAL
INFORMATION
|
||
Item
1.
|
Financial
Statements
|
||
|
|
||
|
Consolidated
Statements of Financial Condition as of September 30, 2006 (unaudited)
and
June 30, 2005
|
1
and 2
|
|
|
|
||
|
Consolidated
Statements of Income for the three months ended September 30, 2006
and
2005 (unaudited)
|
3
and 4
|
|
|
|
||
|
Consolidated
Statements of Changes in Stockholders' Equity for the three months
ended
September 30, 2006 (unaudited)
|
5
|
|
|
|
||
|
Consolidated
Statements of Cash Flows for the three months ended September 30,
2006 and
2005 (unaudited)
|
6
and 7
|
|
|
|
||
|
Notes
to Consolidated Financial Statements
|
8
to 12
|
|
|
|
||
Item
2.
|
Management's
Discussion and Analysis of Financial Condition and Results of
Operations
|
13
to 20
|
|
|
|
||
Item
3.
|
Controls
and Procedures
|
21
|
|
PART
II.
|
OTHER
INFORMATION
|
||
Legal
Proceedings
|
22
|
||
Item
2.
|
Unregistered
Sales of Equity Securities and Use of Proceeds
|
22
|
|
Item
3.
|
Defaults
Upon Senior Securities
|
22
|
|
Item
4.
|
Submission
of Matters to a Vote of Security-Holders
|
23
|
|
Item
5.
|
Other
Information
|
23
|
|
Item
6.
|
Exhibits
|
23
|
|
|
|
|
|
Signatures
|
24
|
||
|
|
|
|
Exhibit
31.1
|
|||
|
|
||
Exhibit
31.2
|
|||
|
|
||
Exhibit
32.1
|
|
September
30,
|
June
30,
|
|||||
|
2006
|
2006
|
|||||
|
(Unaudited)
|
(Audited)
|
|||||
ASSETS
|
|
|
|||||
Cash
and due from banks
|
$
|
3,861
|
$
|
2,844
|
|||
Interest-bearing
deposits with banks
|
321
|
27
|
|||||
Total
cash and cash equivalents
|
4,182
|
2,871
|
|||||
|
|||||||
Investment
securities available-for-sale, at market value
|
64,613
|
64,198
|
|||||
Investment
securities held-to-maturity, at amortized cost
|
1,005
|
1,018
|
|||||
Investment
in Eagle Bancorp Statutory Trust I
|
155
|
155
|
|||||
Federal
Home Loan Bank stock, at cost
|
1,315
|
1,315
|
|||||
Mortgage
loans held-for-sale
|
2,428
|
918
|
|||||
Loans
receivable, net of deferred loan fees and allowance for loan losses
of
|
|||||||
$530
at September 30, 2006 and $535 at June 30, 2006
|
144,776
|
140,858
|
|||||
Accrued
interest and dividends receivable
|
1,305
|
1,211
|
|||||
Mortgage
servicing rights, net
|
1,699
|
1,722
|
|||||
Property
and equipment, net
|
5,935
|
5,962
|
|||||
Cash
surrender value of life insurance
|
5,275
|
5,230
|
|||||
Real
estate acquired in settlement of loans, net of allowance for
losses
|
-
|
-
|
|||||
Other
assets
|
328
|
720
|
|||||
Total
assets
|
$
|
233,016
|
$
|
226,178
|
|
September
30,
|
June
30,
|
|||||
|
2006
|
2006
|
|||||
|
(Unaudited)
|
(Audited)
|
|||||
LIABILITIES
AND STOCKHOLDERS' EQUITY
|
|
|
|||||
Liabilities:
|
|
|
|||||
Deposit
accounts:
|
|
|
|||||
Noninterest
bearing
|
$
|
12,771
|
$
|
12,575
|
|||
Interest
bearing
|
163,392
|
161,767
|
|||||
Advances
from Federal Home Loan Bank
|
25,830
|
22,371
|
|||||
Long-term
subordinated debentures
|
5,155
|
5,155
|
|||||
Accrued
expenses and other liabilities
|
2,424
|
1,765
|
|||||
Total
liabilities
|
209,572
|
203,633
|
|||||
Stockholders'
Equity:
|
|||||||
Preferred
stock (no par value, 1,000,000 shares authorized, none issued or
outstanding)
|
-
|
-
|
|||||
Common
stock (par value $0.01 per share; 9,000,000 shares authorized;
1,223,572
shares issued; 1,087,557 and 1,091,722 outstanding at September
30, 2006
and June 30, 2006, respectively)
|
12
|
12
|
|||||
Additional
paid-in capital
|
4,302
|
4,274
|
|||||
Unallocated
common stock held by employee stock ownership plan
("ESOP")
|
(120
|
)
|
(129
|
)
|
|||
Treasury
stock, at cost
|
(4,654
|
)
|
(4,521
|
)
|
|||
Retained
earnings
|
24,381
|
24,056
|
|||||
Accumulated
other comprehensive loss
|
(477
|
)
|
(1,147
|
)
|
|||
Total
stockholders' equity
|
23,444
|
22,545
|
|||||
|
|||||||
Total
liabilities and stockholders' equity
|
$
|
233,016
|
$
|
226,178
|
|
Three
Months Ended
|
||||||
|
September
30,
|
||||||
|
2006
|
2005
|
|||||
|
(Unaudited)
|
||||||
Interest
and Dividend Income:
|
|
|
|||||
Interest
and fees on loans
|
$
|
2,311
|
$
|
1,790
|
|||
Interest
on deposits with banks
|
12
|
11
|
|||||
FHLB
stock dividends
|
-
|
-
|
|||||
Securities
available-for-sale
|
660
|
623
|
|||||
Securities
held-to-maturity
|
11
|
14
|
|||||
Total
interest and dividend income
|
2,994
|
2,438
|
|||||
|
|||||||
Interest
Expense:
|
|||||||
Deposits
|
934
|
666
|
|||||
FHLB
advances
|
331
|
100
|
|||||
Subordinated
debentures
|
75
|
2
|
|||||
Total
interest expense
|
1,340
|
768
|
|||||
|
|||||||
Net
interest income
|
1,654
|
1,670
|
|||||
Loan
loss provision
|
-
|
-
|
|||||
Net
interest income after loan loss provision
|
1,654
|
1,670
|
|||||
|
|||||||
Noninterest
income:
|
|||||||
Net
gain on sale of loans
|
119
|
173
|
|||||
Demand
deposit service charges
|
135
|
143
|
|||||
Mortgage
loan servicing fees
|
138
|
191
|
|||||
Net
gain on sale of available-for-sale securities
|
-
|
1
|
|||||
Other
|
145
|
135
|
|||||
Total
noninterest income
|
537
|
643
|
|
Three
Months Ended
|
||||||
|
September
30,
|
||||||
|
2006
|
2005
|
|||||
|
(Unaudited)
|
||||||
Noninterest
expense:
|
|
|
|||||
Salaries
and employee benefits
|
838
|
832
|
|||||
Occupancy
expenses
|
142
|
125
|
|||||
Furniture
and equipment depreciation
|
79
|
79
|
|||||
In-house
computer expense
|
71
|
67
|
|||||
Advertising
expense
|
93
|
70
|
|||||
Amortization
of mtg servicing fees
|
76
|
106
|
|||||
Federal
insurance premiums
|
6
|
6
|
|||||
Postage
|
18
|
23
|
|||||
Legal,
accounting, and examination fees
|
58
|
34
|
|||||
Consulting
fees
|
16
|
18
|
|||||
ATM
processing
|
12
|
12
|
|||||
Other
|
207
|
220
|
|||||
Total
noninterest expense
|
1,616
|
1,592
|
|||||
|
|||||||
Income
before provision for income taxes
|
575
|
721
|
|||||
|
|||||||
Provision
for income taxes
|
153
|
222
|
|||||
|
|||||||
Net
income
|
$
|
422
|
$
|
499
|
|||
|
|||||||
Basic
earnings per share
|
$
|
0.39
|
$
|
0.46
|
|||
|
|||||||
Diluted
earnings per share
|
$
|
0.35
|
$
|
0.41
|
|||
|
|||||||
Weighted
average shares outstanding (basic eps)
|
1,073,660
|
1,080,604
|
|||||
|
|||||||
Weighted
average shares outstanding (diluted eps)
|
1,207,858
|
1,203,258
|
|
|
|
|
|
|
|
ACCUMULATED
|
|
|||||||||||||||||
|
|
|
ADDITIONAL
|
UNALLOCATED
|
|
|
OTHER
|
|
|||||||||||||||||
|
PREFERRED
|
COMMON
|
PAID-IN
|
ESOP
|
TREASURY
|
RETAINED
|
COMPREHENSIVE
|
|
|||||||||||||||||
|
STOCK
|
STOCK
|
CAPITAL
|
SHARES
|
STOCK
|
EARNINGS
|
INCOME
|
TOTAL
|
|||||||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Balance,
June 30, 2006
|
$
|
-
|
$
|
12
|
$
|
4,274
|
$
|
(129
|
)
|
$
|
(4,521
|
)
|
$
|
24,056
|
$
|
(1,147
|
)
|
$
|
22,545
|
||||||
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Net
income
|
-
|
-
|
-
|
-
|
-
|
422
|
-
|
422
|
|||||||||||||||||
Other
comprehensive income
|
-
|
-
|
-
|
-
|
-
|
-
|
670
|
670
|
|||||||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Total
comprehensive income
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
1,092
|
|||||||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Dividends
paid ($.22 per share)
|
-
|
-
|
-
|
-
|
-
|
(97
|
)
|
-
|
(97
|
)
|
|||||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Treasury
stock purchased (3,100 shares @ $31.90; 1,065 shares @
$32.00)
|
-
|
-
|
-
|
-
|
(133
|
)
|
-
|
-
|
(133
|
)
|
|||||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||||||||||
ESOP
shares allocated or committed to be released for allocation (1,150
shares)
(unaudited)
|
-
|
-
|
28
|
9
|
-
|
-
|
-
|
37
|
|||||||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Balance,
September 30, 2006 (unaudited)
|
$
|
-
|
$
|
12
|
$
|
4,302
|
$
|
(120
|
)
|
$
|
(4,654
|
)
|
$
|
24,381
|
$
|
(477
|
)
|
$
|
23,444
|
|
Three
Months Ended
|
||||||
|
September
30,
|
||||||
|
2006
|
2005
|
|||||
|
(Unaudited)
|
||||||
CASH
FLOWS FROM OPERATING ACTIVITIES:
|
|
|
|||||
Net
income
|
$
|
422
|
$
|
499
|
|||
Adjustments
to reconcile net income to net cash from operating
activities:
|
|||||||
Provision
(adjustment) for mortgage servicing rights valuation
|
-
|
(46
|
)
|
||||
Depreciation
|
130
|
128
|
|||||
Net
amortization of marketable securities premium and
discounts
|
174
|
300
|
|||||
Amortization
of capitalized mortgage servicing rights
|
76
|
106
|
|||||
Gain
on sale of loans
|
(119
|
)
|
(173
|
)
|
|||
Net
realized gain on sale of available-for-sale securities
|
-
|
(1
|
)
|
||||
Increase
in cash surrender value of life insurance
|
(45
|
)
|
(45
|
)
|
|||
Change
in assets and liabilities:
|
|||||||
(Increase)
decrease in assets:
|
|||||||
Accrued
interest and dividends receivable
|
(94
|
)
|
(38
|
)
|
|||
Loans
held-for-sale
|
(1,371
|
)
|
647
|
||||
Other
assets
|
386
|
69
|
|||||
Increase
(decrease) in liabilities:
|
|||||||
Accrued
expenses and other liabilities
|
304
|
606
|
|||||
Net
cash used in operating activities
|
(137
|
)
|
2,052
|
||||
|
|||||||
CASH
FLOWS FROM INVESTING ACTIVITIES:
|
|||||||
Purchase
of securities:
|
|||||||
Investment
securities available-for-sale
|
(3,295
|
)
|
(526
|
)
|
|||
Proceeds
from maturities, calls and principal payments:
|
|||||||
Investment
securities held-to-maturity
|
29
|
46
|
|||||
Investment
securities available-for-sale
|
3,745
|
5,488
|
|||||
Proceeds
from sales of investment securities available-for-sale
|
-
|
505
|
|||||
Net
increase in loans receivable, excludes transfers to real estate
acquired
in settlement of loans
|
(3,976
|
)
|
(9,165
|
)
|
|||
Purchase
of stock in non-consolidated subsidiary
|
-
|
(155
|
)
|
||||
Purchase
of property and equipment
|
(103
|
)
|
(65
|
)
|
|||
Net
cash used in investing activities
|
(3,600
|
)
|
(3,872
|
)
|
|
Three
Months Ended
|
||||||
|
September
30,
|
||||||
|
2006
|
2005
|
|||||
|
(Unaudited)
|
||||||
CASH
FLOWS FROM FINANCING ACTIVITIES:
|
|||||||
Net
increase in checking and savings accounts
|
$
|
1,820
|
$
|
3,719
|
|||
Net
decrease in federal funds
|
(2,375
|
)
|
-
|
||||
Payments
on FHLB advances
|
(6,167
|
)
|
(292
|
)
|
|||
FHLB
advances
|
12,000
|
-
|
|||||
Issue
of subordinated debentures
|
-
|
5,155
|
|||||
Purchase
of treasury stock
|
(133
|
)
|
(151
|
)
|
|||
Dividends
paid
|
(97
|
)
|
(90
|
)
|
|||
Net
cash provided by financing activities
|
5,048
|
8,341
|
|||||
|
|||||||
Net
increase in cash and cash equivalents
|
1,311
|
6,521
|
|||||
|
|||||||
CASH
AND CASH EQUIVALENTS, beginning of period
|
2,871
|
4,966
|
|||||
|
|||||||
CASH
AND CASH EQUIVALENTS, end of period
|
$
|
4,182
|
$
|
11,487
|
|||
|
|||||||
SUPPLEMENTAL
CASH FLOW INFORMATION:
|
|||||||
Cash
paid during the period for interest
|
$
|
1,484
|
$
|
774
|
|||
|
|||||||
Cash
paid during the period for income taxes
|
$
|
-
|
$
|
-
|
|||
|
|||||||
NON-CASH
INVESTING ACTIVITIES:
|
|||||||
Increase
in market value of securities available-for-sale
|
$
|
(1,055
|
)
|
$
|
291
|
||
|
|||||||
Mortgage
servicing rights capitalized
|
$
|
53
|
$
|
174
|
|
September
30, 2006 (Unaudited)
|
June
30, 2006 (Audited)
|
|||||||||||||||||
|
AMORTIZED
COST
|
GROSS
UNREALIZED
GAINS/(LOSSES)
|
FAIR
VALUE
|
AMORTIZED
COST
|
GROSS
UNREALIZED
GAINS/(LOSSES)
|
FAIR
VALUE
|
|||||||||||||
Available-for-sale:
|
|
|
|
|
|
|
|||||||||||||
U.S.
government and agency obligations
|
$
|
7,222
|
$
|
(74
|
)
|
$
|
7,148
|
$
|
7,448
|
$
|
(152
|
)
|
$
|
7,296
|
|||||
Municipal
obligations
|
17,914
|
158
|
18,072
|
17,471
|
(328
|
)
|
17,143
|
||||||||||||
Corporate
obligations
|
16,094
|
(261
|
)
|
15,833
|
16,059
|
(442
|
)
|
15,617
|
|||||||||||
Mortgage-backed
securities
|
6,262
|
(146
|
)
|
6,116
|
6,949
|
(202
|
)
|
6,747
|
|||||||||||
Collateralized
mortgage obligations
|
16,124
|
(298
|
)
|
15,826
|
16,330
|
(513
|
)
|
15,817
|
|||||||||||
Corporate
preferred stock
|
1,800
|
(182
|
)
|
1,618
|
1,800
|
(222
|
)
|
1,578
|
|||||||||||
Total
|
$
|
65,416
|
$
|
(803
|
)
|
$
|
64,613
|
$
|
66,057
|
$
|
(1,859
|
)
|
$
|
64,198
|
|||||
Held-to-maturity:
|
|||||||||||||||||||
Municipal
obligations
|
$
|
827
|
$
|
17
|
$
|
844
|
$
|
828
|
$
|
12
|
$
|
840
|
|||||||
Mortgage-backed
securities
|
178
|
1
|
179
|
190
|
-
|
190
|
|||||||||||||
Total
|
$
|
1,005
|
$
|
18
|
$
|
1,023
|
$
|
1,018
|
$
|
12
|
$
|
1,030
|
|
September
30,
|
June
30,
|
|||||
|
2006
|
2006
|
|||||
|
(Unaudited)
|
(Audited)
|
|||||
|
(Dollars
in Thousands)
|
||||||
First
mortgage loans:
|
|
|
|||||
Residential
mortgage (1-4 family)
|
$
|
78,417
|
$
|
75,913
|
|||
Commercial
real estate
|
19,658
|
18,648
|
|||||
Real
estate construction
|
7,103
|
6,901
|
|||||
|
|||||||
Other
loans:
|
|||||||
Home
equity
|
20,940
|
20,191
|
|||||
Consumer
|
11,552
|
11,820
|
|||||
Commercial
|
7,571
|
7,861
|
|||||
|
|||||||
Total
|
145,241
|
141,334
|
|||||
|
|||||||
Less:
Allowance for loan losses
|
(530
|
)
|
(535
|
)
|
|||
Add:
Deferred loan fees, net
|
65
|
59
|
|||||
|
|||||||
Total
|
$
|
144,776
|
$
|
140,858
|
|
Three
Months Ended
|
Year
Ended
|
|||||
|
September
30,
|
June
30,
|
|||||
|
2006
|
2006
|
|||||
|
(Audited)
|
(Audited)
|
|||||
|
(Dollars
in Thousands)
|
||||||
Balance,
beginning of period
|
$
|
535
|
$
|
573
|
|||
Reclassification
to repossessed property reserve
|
-
|
(15
|
)
|
||||
Provision
charged to operations
|
-
|
-
|
|||||
Charge-offs
|
(7
|
)
|
(48
|
)
|
|||
Recoveries
|
2
|
25
|
|||||
Balance,
end of period
|
$
|
530
|
$
|
535
|
|
September
30,
|
June
30,
|
|||||
|
2006
|
2006
|
|||||
|
(Unaudited)
|
(Audited)
|
|||||
|
(Dollars
in Thousands)
|
||||||
Noninterest
checking
|
$
|
12,771
|
$
|
12,575
|
|||
Interest-bearing
checking
|
30,931
|
29,571
|
|||||
Passbook
|
23,682
|
24,438
|
|||||
Money
market
|
27,653
|
29,129
|
|||||
Time
certificates of deposit
|
81,126
|
78,629
|
|||||
Total
|
$
|
176,163
|
$
|
174,342
|
|
Three
Months
|
Year
|
|||||
|
Ended
|
Ended
|
|||||
|
September
30,
|
June
30,
|
|||||
|
2006
|
2006
|
|||||
|
(Unaudited)
|
(Audited)
|
|||||
|
(Dollars
in Thousands)
|
||||||
Mortgage
Servicing Rights
|
|
|
|||||
Beginning
balance
|
$
|
1,722
|
$
|
1,903
|
|||
Servicing
rights capitalized
|
53
|
174
|
|||||
Servicing
rights amortized
|
(76
|
)
|
(355
|
)
|
|||
Ending
balance
|
1,699
|
1,722
|
|||||
|
|||||||
Valuation
Allowance
|
|||||||
Beginning
balance
|
-
|
46
|
|||||
Provision
|
-
|
(46
|
)
|
||||
Adjustments
|
-
|
-
|
|||||
Ending
balance
|
-
|
-
|
|||||
|
|||||||
Net
Mortgage Servicing Rights
|
$
|
1,699
|
$
|
1,722
|
|
(Unaudited)
|
||||||
|
At
September 30, 2006
|
||||||
|
|
For
Capital
|
|||||
|
|
Adequacy
|
|||||
|
Dollar
|
Purposes
|
|||||
|
Amount
|
%
of Assets
|
|||||
Tangible
capital:
|
|
|
|||||
Capital
level
|
$
|
25,147
|
10.91
|
%
|
|||
Requirement
|
3,458
|
1.5
|
|||||
Excess
|
$
|
21,689
|
9.41
|
%
|
|||
Core
capital:
|
|||||||
Capital
level
|
$
|
25,147
|
10.91
|
%
|
|||
Requirement
|
6,915
|
3.00
|
|||||
Excess
|
$
|
18,232
|
7.91
|
%
|
|||
Risk-based
capital:
|
|||||||
Capital
level
|
$
|
25,631
|
15.47
|
%
|
|||
Requirement
|
13,254
|
8.00
|
|||||
Excess
|
$
|
12,377
|
7.47
|
%
|
Item 1. |
Legal
Proceedings.
|
Item
2.
|
Unregistered
Sales of Equity Securities Use of
Proceeds.
|
Period
|
Total
Number of Shares Purchased*
|
Average
Price Paid Per Share
|
Total
Number of Shares Purchased as Part of Publicly Announced Plans
or
Programs
|
Maximum
Number of Shares that May Yet Be Purchased Under the Plans or
Programs
|
|||||||||
|
|
|
|
|
|||||||||
July
2006
|
None
|
N/A
|
N/A
|
N/A
|
|||||||||
07-01-06
|
|||||||||||||
07-31-06
|
|||||||||||||
|
|||||||||||||
August
2006
|
4,165
|
$
|
31.93
|
4,165
|
7,735
|
||||||||
08-01-06
|
|||||||||||||
08-31-06
|
|||||||||||||
|
|||||||||||||
September
2006
|
None
|
N/A
|
N/A
|
N/A
|
|||||||||
09-01-06
|
|||||||||||||
09-30-06
|
|||||||||||||
Total
|
4,165
|
$
|
31.93
|
4,165
|
N/A
|
Item
3.
|
Defaults
Upon Senior Securities.
|
Item
4.
|
Submission
of Matters to a Vote of Security
Holders.
|
1.
|
Election
of directors for three-year terms expiring in
2009:
|
For:
|
Against:
|
|||||||||
James
A. Maierle
|
1,028,303
|
3,202
|
||||||||
Thomas
J. McCarvel
|
1,027,303
|
4,202
|
2.
|
Ratification
of appointment of Davis, Kinard & Co., P.C. as auditors for the fiscal
year ended June 30, 2007:
|
For:
|
Against:
|
Abstain:
|
||||||||
1,029,028
|
60
|
2,417
|
Item
6.
|
Exhibits.
|
|||||
31.1 |
Certification
by Larry A. Dreyer, Chief Executive Officer, pursuant to Rule
13a-14(a)
under the Securities Exchange Act of 1934, as adopted pursuant
to Section
302 (a) of the Sarbanes-Oxley Act of 2002.
|
|||||
31.2 |
Certification
by Peter J. Johnson, Chief Financial Officer, pursuant to Rule
13a-14(a)
under the Securities Exchange Act of 1934, as adopted pursuant
to Section
302 (a) of the Sarbanes-Oxley Act of 2002.
|
|||||
32.1 |
Certification
by Larry A. Dreyer, Chief Executive Officer, and Peter J. Johnson,
Chief
Financial Officer, pursuant to 18 U.S.C. Section 1350, as adopted
pursuant
to Section 906 of the Sarbanes-Oxley Act of
2002.
|
|
a.)
|
Reports
on Form 8-K
|
EAGLE
BANCORP
|
||
|
|
|
Date: November
8, 2006
|
By: |
/s/ Larry
A. Dreyer
|
Larry
A. Dreyer
|
||
President/CEO
|
Date: November
8, 2006
|
By: |
/s/ Peter
J. Johnson
|
Peter
J. Johnson
|
||
Executive
Vice President/CFO
|