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ABIGAIL
ADAMS NATIONAL BANCORP, inc.
REPORTS FirsT QUARTER EARNINGS
Washington, DC
- Abigail Adams National Bancorp, Inc. (NASDAQ:AANB) announced
today that net income for the first quarter ended March 31, 2006 was $653,000,
or $.19 (basic and diluted earnings per share). Net income for the same period
in 2005 was $922,000 or $.28 (basic and diluted earnings per share). The
return on average assets for the fourth quarter 2005 was 0.76% and the return
on average equity was 9.37%, compared to 1.51% and 14.94%, respectively, for
the same period last year. The results of operations for Consolidated Bank and
Trust (“CBT”) are included subsequent to the close of business on July 29,
2005.
Net interest income for the first quarter of 2006
increased 25.8% to $3.9 million, compared to $3.1 million for the same period
in 2005. This increase was due to
a 44.5% growth in the Company’s loan portfolio. Average loans increased
$75.3 million, with the CBT acquisition contributing 53.9% of the
year-over-year loan growth. The
net interest margin was 4.73% for the first quarter 2006, down from the 5.38%
reported for the same period in 2005. The decline was due to competitive
deposit pricing in the Company’s local markets; the increased competition
affecting yields on new loans; and the pressure of a flat yield curve on the
repricing assets and deposits.
The Company’s assets totaled $353.0 million at March
31, 2006, an increase of $106.8 million or 43.4%, compared to assets at March
31, 2005. The CBT acquisition contributed 73.5% of the year-over-year asset
growth. Loans increased $77.4 million from March 31, 2005. Loan growth was driven by growth in the construction and
commercial real estate markets.
Nonperforming loans and OREO totaled $725,000 or 0.29% of
period end loans and OREO, a decrease from 0.61% at March 31, 2005.
Approximately 88% of the nonperforming loans are guaranteed by the Small
Business Administration.
The allowance for loan losses was $4.5 million at March
31, 2006, representing 1.80% of total loans, compared to 1.56% at March 31,
2005. The ratio of nonperforming loans to total assets was 0.21%, reflecting a
positive trend from 0.43% reported at March 31, 2005. Net recoveries for the
first quarter were $134,000. The provision for loan losses was $50,000 for
2006, compared to $65,000 for the first quarter of 2005.
Deposits totaled $283.3 million at March 31, 2006, an
increase of $72.8 million, or 34.6%, compared to the same period in 2005. The
CBT acquisition contributed approximately 94.5% of the growth in deposits.
Short term debt was $27.2 million, compared to $2.2 million at March 31, 2005,
which was used to fund the asset growth in the first quarter. Long term debt
was $11.0 million, compared to $6.9 million, as a result of the note used to
fund the capital infusion to CBT in 2005.
Noninterest income for the first quarter of 2006 was
$483,000, compared to $428,000 for the same period in 2005. The gain on sale
of loans in the first quarter was $28,000, compared to $33,000 in the first
quarter of 2005.
Noninterest expense was $3.2 million for the first
quarter of 2006, compared to $2.0 million for the same period in 2005, a 64.1%
increase. The increase in noninterest expense was primarily due to the
acquisition of CBT, which added an additional $958,000. At March 31, 2006, the
Company had approximately 109 full time equivalent employees, compared to 71
at March 31, 2005. The Banks had nine branch locations at March 31, 2006,
compared to six at March 31, 2005.
Abigail Adams National Bancorp, Inc. declared a quarterly
dividend of $0.125 per common share paid on March 31, 2006 to shareholders of
record on March 15, 2006.
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 March 31,
2006 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 March 2006
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