WASHINGTON, Feb. 10 /PRNewswire-FirstCall/ -- Abigail Adams National Bancorp, Inc. (NASDAQ:AANB) announced today that net income for the fourth quarter ended December 31, 2005 was $739,000, or $.21 (basic and diluted earnings per share). Net income for the same period in 2004 was $1,015,000, or $.31 (basic and diluted earnings per share). The return on average assets for the fourth quarter 2005 was 0.85% and the return on average equity was 10.45%, compared to 1.63% and 16.37%, respectively, for the same period last year.
The net income for the year ended December 31, 2005 was $3,320,000 or $.98 (both basic and diluted earnings per share). For the same period in 2004, the net income was $3,602,000 or $1.09 basic and $1.08 diluted earnings per share. The return on average assets was 1.15% and the return on average equity was 12.49% for 2005, as compared to 1.55% and 15.21%, respectively, for 2004.
Year end balance sheet and income data includes the effect of Abigail Adams National Bancorp's ("Company") acquisition of Consolidated Bank and Trust, Richmond, VA ("CBT") in a 100% stock acquisition on July 29, 2005. At the date of the acquisition, CBT had approximately $70.8 million in total assets, total loans of $39.6 million, earning assets of $66.3 million and total deposits of $67.7 million. On December 31, 2005, there were 3,462,129 shares of the Company's common stock issued and outstanding, compared to 3,322,820 shares issued and outstanding at the end of 2004. Jeanne D. Hubbard, CEO of the Company, stated, "CBT's management utilized the remainder of 2005 to maintain the customer base, recruit seasoned lenders, develop new products, and design a marketing program. The affiliate now has the necessary staff and products to be a more effective competitor in the Richmond market." Net interest income for the fourth quarter of 2005 was $4,001,000, compared to $3,156,000 for the same period in 2004. This increase was due primarily to growth in the Company's loan portfolio. Average loans increased $68.8 million or 40.4% with only slightly more than half of that growth coming from the acquisition of CBT. Ms. Hubbard said, "We are pleased that our Washington, DC bank continues to compete successfully in this competitive loan market." The net interest margin remained strong at 4.84% for the fourth quarter 2005, but decreased from the 5.31% in the same period of 2004, primarily due to increasing funding costs associated with the steady increase in short and medium term interest rates throughout 2005.
Net interest income for the year ending December 31, 2005 was $14,154,000, a 19.51% increase from the $11,843,000 for the year ending December 31, 2004. The net interest margin for the year 2005 was 5.12%, compared to 5.34% at the end of 2004. The 22 basis point decline was due to competitive deposit pricing in the Company's local markets, and the pressure of a flat yield curve on the repricing assets and deposits.
The Company's assets totaled $343.0 million at December 31, 2005, an increase of $91.8 million, or 36.56%, compared to assets at December 31, 2004.
Loans increased $68.0 million, or 37.73%, from December 31, 2004. Loan growth in 2005 was driven by growth in the construction, commercial and commercial real estate markets.
Nonperforming loans and OREO totaled $580,000 or 0.23% of period end loans and OREO, a decrease from 1.04% at December 31, 2004. Over 80% of the nonperforming loans are guaranteed by the Small Business Administration.
The allowance for loan losses was $4.3 million at December 31, 2005, representing 1.75% of total loans, compared to 1.42% at December 31, 2004. The allowance for loan losses as a percentage of nonperforming loans increased to 980%, compared to 136% at December 31, 2004. The decline in nonperforming assets was the result of aggressive collection efforts. Net recoveries were $203,000. The provision for loan losses was $310,000 for 2005, compared to $420,000 taken in 2004.
Deposits totaled $292.0 million at December 31, 2005, an increase of $76.7 million, or 35.6%, compared to 2004.
Noninterest income for the fourth quarter of 2005 was $573,000, compared to $605,000 for the same period in 2004. The gain on sale of loans in the fourth quarter was $92,000, compared to $266,000 in the fourth quarter of 2004.
Noninterest income for the period ended December 31, 2005 was $1.9 million, compared to $2.0 million for 2004. The gain on sale of loans for 2005 was $296,000, compared to $287,000 in 2004. The increase in noninterest income from CBT was partially offset by a decline in ATM and overdraft fees.
Noninterest expenses were $3.3 million for the fourth quarter ended December 31, 2005, compared to $2.0 million for the same period in 2004, an increase of $1.3 million. The fourth quarter results for CBT were the primary reason for the increase, which added an additional $1.0 million in noninterest expenses.
Noninterest expenses for the period ended December 31, 2005 were $10.2 million, compared to $7.4 million for 2004. The CBT acquisition added approximately 59% of the increase in additional noninterest expenses for 2005. Salary and benefits expenses were $5.3 million, an increase of 43.2% in 2005, compared $3.7 million in 2004, due to increases in staffing levels and the associated benefits, as well as, the CBT acquisition, which added 42.2% of the increase. During the third quarter of 2005, the Company took a $200,000 non- recurring charge against income for the payment due under an employment contract to the former CEO of The Adams National Bank. At December 31, 2005, the Company had approximately 105 full time equivalent employees, compared to 68 at the end of 2004. The Banks had 9 branch locations at the end of 2005, compared to 6 at the end of 2004.
Abigail Adams National Bancorp is a two-bank holding company, majority owned and operated by women. The Company is focused on serving the financial needs of minorities, women, small to mid-sized businesses, and not-for-profit organizations in the Washington, DC and Richmond metropolitan areas. All information for the period ended December 31, 2005 has been derived from unaudited financial information.
Statements contained in this press release that are not historical facts may constitute forward-looking statements (within the meaning of Section 21E of the Securities and Exchange Act of 1934, as amended) which involve significant risks and uncertainties. The Company intends such forward-looking statements to be covered in the Private Securities Litigation Reform Act of 1995, and is including this statement for purposes of invoking these safe harbor provisions. The Company's ability to predict results or the actual effect of future plans or strategies is inherently uncertain and involves a number of risks and uncertainties, some of which have been set forth in the Company's most recent annual reports on Form 10-K, which disclosures are incorporated by reference herein. The fact that there are various risks and uncertainties should be considered in evaluating forward-looking statements and undue reliance should not be placed on such statements.
Abigail Adams National Bancorp, Inc. & Subsidiaries
Selected Financial Data
December 31, 2005 and 2004
(in thousands, except per share data)
Three Months Ended: Twelve Months Ended:
12/31/05 12/31/04 12/31/05 12/31/04 INCOME STATEMENT:
Interest income 5,588 3,718 18,461 13,829
Interest expense 1,587 562 4,307 1,986
Net interest income 4,001 3,156 14,154 11,843
Provision for loan losses 90 105 310 420
Net interest income after
provision for loan losses 3,911 3,051 13,844 11,423
Noninterest income 573 605 1,911 1,975
Noninterest expense 3,252 1,971 10,240 7,415
Income before taxes 1,232 1,685 5,515 5,983
Provision for income tax
expense 493 670 2,195 2,381
Net income 739 1,015 3,320 3,602 PER SHARE DATA:
Basic earnings per share $0.21 $0.31 $0.98 $1.09
Diluted earnings per share $0.21 $0.31 $0.98 $1.08
Dividends paid on common shares $0.13 $0.11 $0.50 $0.45 Average shares outstanding -
Basic 3,462,129 3,323,004 3,382,555 3,318,976
Average shares outstanding -
Diluted 3,469,445 3,330,930 3,390,495 3,329,713 CONSOLIDATED BALANCE SHEET:
Assets:
Cash & due from banks 12,216 5,109
Short-term investments 6,333 12,794
Investment securities 70,116 50,835
Loans, gross 248,287 180,272
Allowance for loan losses (4,345) (2,558)
Other assets 10,423 4,740
Total assets 343,030 251,192 Liabilities:
Deposits 292,032 215,367
Short-term borrowings 8,256 2,667
Long-term borrowings 11,213 7,127
Accrued expenses & other
liabilities 3,476 1,271
Total liabilities 314,977 226,432 Stockholders' equity:
Capital stock 35 33
Surplus 24,865 22,628
Retained earnings 3,153 2,099
Total stockholders' equity 28,053 24,760
Total liabilities &
stockholders' equity 343,030 251,192 PERFORMANCE RATIOS:
Book value per share $8.10 $7.45
Return on average assets 0.85% 1.63% 1.15% 1.55%
Return on average stockholders'
equity 10.45% 16.37% 12.49% 15.21%
Net interest margin 4.84% 5.31% 5.12% 5.34%
Efficiency ratio 71.10% 52.41% 63.74% 53.66%
Ratio of nonperforming assets
to total assets 0.17% 0.75%
Ratio of nonperforming assets
to loans & OREO 0.23% 1.04%
Allowance for loan losses to
loans 1.75% 1.42%
Allowance for loan losses to
nonperforming loans 980% 136%
First Call Analyst: FCMN Contact: DATASOURCE: Abigail Adams National Bancorp, Inc.
CONTACT: Jeanne Delaney Hubbard of Abigail Adams National Bancorp, Inc., +1-202-772-3747 Web site: http://www.adamsbank.com/
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