 |
 |
 | |  |  | |
ABIGAIL
ADAMS NATIONAL BANCORP, INC.
REPORTS SECOND QUARTER RESULTS
Washington, DC
- Abigail Adams National Bancorp, Inc. (NASDAQ: AANB) today reported second quarter earnings and year-to-date results for the period ended June 30, 2007. Earnings for the second quarter 2007 were $711,000 or $0.21 per diluted share compared to $788,000 or $0.23 per diluted share for the same quarter in 2006. Earnings for the first six months of 2007 were $1,393,000 or $0.40 per diluted share, compared to $1,441,000 or $0.42 per diluted share for the same period in 2006. Although net interest income increased for both the second quarter and year-to-date period, the decrease in earnings was due to a decrease in noninterest income combined with an increase in noninterest expense.
Net interest income for the second quarter of 2007 totaled $4,199,000, an increase of $224,000 or 5.64% over the same period in 2006. This increase, however, was offset by a $153,000 or 28.07% decrease in noninterest income, compared to the second quarter 2006, due to a $153,000 decrease in the gain on sale of loans. Noninterest expense was $3,351,000, an increase of $212,000, compared to the second quarter of 2006, due to an increase in data processing expense and professional fees.
Net interest income for the first half of 2007 was $8,422,000, an increase of $578,000 or 7.37% over the first half of 2006. As a consequence of the strong loan growth, the provision for loan losses increased $35,000 compared to 2006. Noninterest income totaled $802,000, a decrease of $226,000 or 21.98%, compared to the first half of 2006 and was attributed primarily to a $181,000 decrease in the gain on sale of loans. Noninterest expense totaled $6,759,000, an increase of $398,000 or 6.26%, compared to the same period in 2006, due to an increase in data processing expense, professional fees, and occupancy expense. The increase in data processing expense was attributable to system conversion expenses and associated hardware and software costs.
Total assets for the period ended June 30, 2007 were $459,345,000, reflecting strong growth of $87,256,000 or 23.45% from June 30, 2006. Loans were $320,319,000, a $47,520,000 or 17.42% growth from the same period in 2006. Short-term investments totaled $43,578,000, an increase of $32,916,000 or 309%, compared to June 30, 2006, due to an increase in deposits in the second quarter of 2007.
Deposits for the period ended June 30, 2007 were $406,960,000, compared to $303,480,000 for the same period in 2006, an increase of $103,480,000 or 34.10%. The strong deposit growth was attributable to a marketing program started in the third quarter of 2006 and to growth in governmental deposits.
Nonperforming assets increased this year to 1.47% of assets, compared to 0.45% for the same period in 2006. The increase was predominantly due to one large construction loan totaling $4.3 million with a collateral deficiency, which the Company expects to be resolved by the end of the third quarter. In general, asset quality remains strong. The allowance for loan and lease losses remains adequate at 1.43% of loans.
Jeanne D. Hubbard, President and CEO, said, “While we are pleased with our continued strong growth in the markets where we do business, our banks, like most other community banks, find the current rate environment challenging. We continue to experience intense competition for deposit and loan accounts and the continued compression of our margins that this type of competition brings. We continue to position our banks to provide the banking solutions to satisfy our customers’ needs in each of our markets.”
During the second quarter 2007, our Consolidated Bank & Trust (CB&T) affiliate with offices in Richmond and Hampton, VA, converted data processing systems and incurred additional conversion-related data processing expenses. In the third quarter, CB&T will introduce expanded products and services made available as a result of this conversion. This affiliate has also begun a marketing effort to introduce these and other banking services to its market areas.
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, VA metropolitan areas. All information for the period ended June 30, 2007 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 June 2007
|