 |
 |
 | |  |  | |
Abigail Adams national Bancorp Reports fourth Quarter Earnings
Washington, DC - Abigail Adams National Bancorp, Inc. (NASDAQ:AANB), the parent holding company of The Adams National Bank, reported net income of $819,000 or $0.27 basic and diluted earnings per share for the three months ended December 31, 2003 as compared to $900,000 or $0.30 basic and diluted earnings per share for the same period one year ago. The decrease in fourth quarter earnings is attributable to flat earnings growth in the declining rate market with an increase in non-interest expense.
Net interest income after the provision for loan losses increased 1.9% to $2,615,000 for the three months ended December 31, 2003, when compared to $2,565,000 for the same period one year ago. This increase is primarily attributable to a reduction in interest expense resulting from a decrease in the cost of funds, partially offset by an increase in the provision for loan losses.
Non-interest expense increased 10.2% to $1,755,000 for the three months ended December 31, 2003, as compared to $1,593,000 for the same period last year. The increase in non-interest expense included: an increase in salaries and benefits expense and an increase in occupancy expense due to the expansion of a new branch in Maryland.
Year-to-date net income as of December 31, 2003 was $3,161,000 or $1.05 basic and diluted earnings per share, as compared to $3,415,000 or $1.14 basic and $1.13 diluted earnings per share for 2002. The decrease in year-to-date earnings is primarily attributable to an increase in the provision for loan losses and an increase in non-interest expense. The year-to-date provision for loan losses increased to $591,000 as of December 31, 2003, as compared to $443,000 for the year ended December 31, 2002. The increase in the provision for loan losses reflects an increase in classified loans. Non-interest expense for the year ended December 31, 2003 was $6,646,000 as compared to $6,064,000 for the same period last year. The increase in year-to-date non-interest expense included an increase of $286,000 or 9.6% in salaries and benefits expense primarily due to normal salary increases and increased employee insurance costs, and an increase of $130,000 or 11.0% in occupancy expense, primarily due to expenses associated with the new branch office.
Year-to-date net interest income increased 2.1% to $10,461,000 for the year ended December 31, 2003 compared to $10,251,000 for the same period one year ago. This increase is primarily attributable to a decrease in interest expense resulting from a reduction in the cost of funds, which was partially offset by a decrease in interest income resulting from a reduction in the Bank's prime commercial lending rate in June 2003 and a decrease in the yield on investments.
Total assets as of December 31, 2003 totaled to $231,906,000, an increase of 13.2% compared to $204,950,000 at December 31, 2002. This increase is primarily attributable to an increase in short-term investments and an increase in investment securities. Loans remained relatively flat at $156,034,000 as of December 31, 2003, compared to $156,536,000 as of December 31, 2002. Non-performing assets totaled $2,843,000 at December 31, 2003 or 1.24% of total assets, compared to $460,000 at December 31, 2002 or 0.22% of total assets. Fifty-eight percent, or $1,639,102, of non-performing loans are guaranteed by the Small Business Administration and the balance are secured by real estate or other assets. The allowance for loan losses at December 31, 2003 was $2,119,000 or 1.36% of total loans compared to $2,297,000 or 1.47% of total loans at December 31, 2002.
Deposits as of December 31, 2003 were $192,756,000, representing an increase of 10.3% over deposits of $174,768,000 at December 31, 2002.
Shareholders' equity increased to $22,875,000 or 9.9% of total assets at December 31, 2003 as compared to $21,192,000 or 10.3% of total assets at December 31, 2002. The cash dividends paid on common stock increased 13.6% to $0.50 per share for 2003.
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 December 31, 2003 has been derived from unaudited financial information.
Selected Financial Data December 2003
|