Abigail Adams National Bancorp Reports a 31.8% Increase in Second
Quarter Earnings
WASHINGTON, July 22 /PRNewswire-FirstCall/ -- Abigail Adams National Bancorp,
Inc. (NASDAQ:AANB), the parent holding company of The Adams National Bank,
reported a 31.8% increase in net income for the second quarter of 2004 of
$831.1 thousand ($0.28 per diluted share) compared to $630.6 thousand ($0.21
per diluted share) for the second quarter of 2003. Net income for the
six-month period ending June 30, 2004 totaled $1.6 million ($0.55 per diluted
share) compared to $1.5 million ($0.51 per diluted share) for the prior year
period.
The return on average equity increased to 14.38% for the second quarter of 2004
versus 11.46% for the second quarter of 2003. The return on average assets
increased to 1.49% versus 1.21% for the second quarter of 2003.
For the first six months of 2004, the return on average equity increased to
14.29%, compared to 14.18% for the same period in 2003, and the return on
average assets was 1.49%, compared to 1.52% reported in 2003.
Net interest income grew by 10.8% for the first half of 2004 as compared to the
same period in 2003, and improvements in asset quality significantly reduced
the level of loan loss provision. Noninterest income declined 8.6%, primarily
due to the reduced sale of loans and fees on accounts. The increase in
noninterest expense centered in cost related to the expanded infrastructure of
the lending department and the Maryland branch office opened in the third
quarter of 2003.
Total assets at June 30, 2004 were $238.7 million, an increase of 10.1%,
compared to June 30, 2003, concentrated in the 8.44% growth in loans over the
same period. Adams' sound asset quality improved through the second quarter of
2004. Positive trends in nonperforming loans continued, with the ratio of
nonperforming loans to total assets declining to 1.37% as of June 30, 2004
versus 1.81% for June 30, 2003. Over 50% of nonperforming loans are guaranteed
by the Small Business Administration. Deposit growth was strong, with total
deposits growing 13.7% over the past twelve months to $201.6 million.
Contributing to the improvement in the second quarter earnings, was the
increase in the net interest margin ratio of 5.40%, compared to 5.07% reported
in the second quarter of 2003. The second quarter net interest spread
increased to 4.95%, compared to 4.58% for the second quarter of 2003.
For the first six months of 2004, the net interest margin increased to 5.40%,
compared to 5.33% for the same period in 2003, and the net interest spread
increased to 4.94%, compared to 4.84% reported in 2003.
Abigail Adams National Bancorp, Inc. declared a quarterly common dividend of
$0.125 per share paid out on June 30, 2004 to stockholders of record as of June
15, 2004.
The Adams National Bank, the largest federally chartered bank in the United
States owned and managed by women, is focused on serving minorities, small
businesses and not-for-profit organizations in the Washington, DC area. The
Adams National Bank offers a full line of banking services including business
and real estate loans, as well as deposit services. All information for the
period ended June 30, 2004 has been derived from unaudited financial
information.
Abigail Adams National Bancorp, Inc. & Subsidiary
Selected Financial Data
June 30, 2004 and 2003
(In thousands, except per share data)
Three Months Ended: Six Months Ended:
6/30/04 6/30/03 6/30/04 6/30/03
INCOME STATEMENT:
Interest income 3,331 3,072 6,617 6,208
Interest expense 465 551 923 1,071
Net interest income 2,866 2,521 5,694 5,137
Provision for loan losses 105 311 210 381
Net interest income after
provision for loan losses 2,761 2,210 5,484 4,756
Noninterest income 457 478 912 998
Noninterest expense 1,837 1,644 3,656 3,201
Income before taxes 1,381 1,044 2,740 2,553
Provision for income tax
expense 550 413 1,091 1,020
Net income 831 631 1,649 1,533 PER SHARE DATA:
Basic earnings per share $0.28 $0.21 $0.55 $0.51
Diluted earnings per share $0.28 $0.21 $0.55 $0.51
Dividends paid on common shares $0.13 $0.13 $0.25 $0.25 Average shares outstanding -
Basic 3,014,343 3,007,811 3,014,343 3,006,570
Average shares outstanding -
Diluted 3,025,901 3,023,380 3,026,188 3,022,533 CONSOLIDATED BALANCE SHEET:
Assets:
Cash & due from banks 9,498 8,860
Short-term investments 19,543 22,851
Investment securities 43,519 32,143
Loans, gross 163,278 150,576
Allowance for loan losses (2,307) (2,297)
Other assets 5,133 4,584
Total assets 238,664 216,717 Liabilities:
Deposits 201,606 177,275
Short-term borrowings 3,505 5,717
Long-term borrowings 9,580 10,478
Accrued expenses &
other liabilities 925 1,154
Total liabilities 215,616 194,624 Stockholders' equity:
Capital stock 30 30
Surplus 17,241 17,202
Retained earnings 5,777 4,861
Total stockholders' equity 23,048 22,093
Total liabilities &
stockholders' equity 238,664 216,717 PERFORMANCE RATIOS:
Book value per share $7.65 $7.35
Return on average assets 1.49% 1.21% 1.49% 1.52%
Return on average
stockholders' equity 14.38% 11.46% 14.29% 14.18%
Net interest margin 5.40% 5.07% 5.40% 5.33%
Net interest spread 4.95% 4.58% 4.94% 4.84%
Efficiency ratio 55.27% 54.81% 55.33% 52.16%
Ratio of nonperforming assets
to total assets 1.37% 1.81%
Allowance for loan losses
to loans 1.41% 1.53%
Allowance for loan losses
to nonperforming assets 70.58% 58.53%
DATASOURCE: The Adams National Bank CONTACT: Kathleen Walsh Carr of The Adams National Bank, +1-202-772-3711 Web site: http://www.adamsbank.com/
|