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ABIGAIL
ADAMS NATIONAL BANCORP, inc.
REPORTS FORTH QUARTER EARNINGS
Washington, DC
- 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 $1.3million. 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 43.8% 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.
Selected Financial Data December 2005
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