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Abigail
Adams national Bancorp Reports a 31.8% increase in second Quarter Earnings
Washington, DC
- 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.
Selected Financial Data June 2004
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