UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): July 28, 2003
Abigail Adams National Bancorp, Inc.
(Exact name of registrant as specified in its charter)
Delaware 0-10971 52-1508198
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(State or other jurisdiction (SEC File Number) (I.R.S. Employer
of incorporation) Identification No.)
1130 Connecticut Avenue, Washington, D.C. 20036
(Address of principal executive offices)
Registrant's telephone number, including area code: (202) 772-3600
Not Applicable
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(Former name or former address, if changed since last report)
CURRENT REPORT ON FORM 8-K
Item 1. Changes in Control of Registrant
Not applicable.
Item 2. Acquisition or Disposition of Assets
Not applicable.
Item 3. Bankruptcy or Receivership
Not applicable.
Item 4. Changes in Registrant's Certifying Accountant
Not applicable.
Item 5. Other Events and Regulation FD Disclosure
Not applicable.
Item 6. Resignations of Registrant's Directors
Not applicable.
Item 7. Financial Statements and Exhibits
(a) No financial statements of businesses acquired are required.
(b) No pro forma financial information is required.
(c) Attached as Exhibit 99 is the Company's news release announcing earnings for
the quarter ended June 30, 2003.
Item 8. Change in Fiscal Year
Not applicable.
Item 9. Regulation FD Disclosure
Not applicable.
Item 10. Amendments to the Registrant's Code of Ethics, or Waiver of a Provision
of the Code of Ethics
Not applicable.
Item 11. Temporary Suspensions of Trading Under Registrant's Employee Benefits
Plans
Not applicable.
Item 12. Results of Operations and Financial Condition
On July 28, 2003, Abigail Adams National Bancorp, Inc. announced its
earnings for the quarter ended June 30, 2003. A copy of the press
release dated July 28, 2003, detailing earnings for this period is
attached as Exhibit 99 to this report.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned, hereunto duly authorized.
Abigail Adams National Bancorp, Inc.
DATE: July 28, 2003 By: /s/ Jeanne D. Hubbard
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Ms. Jeanne D. Hubbard
Chairwoman, President
and Chief Executive Officer
EXHIBIT INDEX
99 News release dated July 28, 2003 announcing earnings for quarter ended June
30, 2003.
EXHIBIT 99
FOR IMMEDIATE RELEASE
Date: July 28, 2003
Contact: Kathleen W. Carr
202.772.3600
ABIGAIL ADAMS NATIONAL BANCORP, INC.
REPORTS 2nd quarter earnings
Washington, DC - Abigail Adams National Bancorp, Inc. (NASDAQ:AANB), the parent
holding company of The Adams National Bank, reported net earnings for the second
quarter 2003 of $631,000. Net earnings totaled $848,000 for the same quarter
last year. The most significant item impacting the net income for the second
quarter 2003, as compared to the second quarter 2002, was an increase in the
provision for loan losses of $223,000. The additional provision was a result of
strengthening our reserve for loan losses, as well as $400,000 in charge-offs of
commercial and SBA non-performing loans. Kathleen W. Carr, President and CEO of
The Adams National Bank, said: "The weaker economy adversely impacted some of
our small commercial borrowers and contributed to an increase in non-performing
assets. We are committed to strengthening credit administration and managing
these assets. We believe our core business activities still remain strong."
Diluted earnings per share were $0.21 for the second quarter, compared to $0.28
per share for the same 2002 period. The return on average equity for the second
quarter was 11.46%, compared to 17.24% for the same quarter in 2002, and the
return on average assets was at 1.21%, compared to 1.83% for the second quarter
2002.
For the six-month period ended June 30, 2003, net income was $1,533,000,
compared to $1,641,000 for 2002, a decrease of 6.6%. Diluted earnings per share
were $0.51, compared to $0.54 for the same period in 2002. The return on average
equity was 14.17% and the return on average assets was 1.52% for the first six
months of 2003, compared to 17.00% and 1.81%, respectively for the same period
in 2002.
Net interest income for the second quarter of 2003 decreased 1.07%, compared to
the second quarter of 2002. Interest income produced by the growth in earning
assets was offset by the decrease in asset yields. The active management of
interest rates paid on deposits helped to mitigate the impact of the reduction
in asset yields on the net interest margin. The net interest margin remained a
healthy 5.07%, but was a decrease from the 5.78% reported for the second quarter
of 2002, as interest rates have declined to historically low levels. Noninterest
income was relatively flat for the quarter, while noninterest expense grew
8.27%, largely due to increases in staff.
Net interest income for the six months ended June 30, 2003 increased 4.27%,
compared to the same period in 2002, as a result of our strong first quarter
combined with the second quarter results. Noninterest income increased 3.83%,
due to increases in service charges and the gain on the sale of investment
securities in the first quarter of 2003. Noninterest expense increased 8.16%,
due to increases in staff.
Total assets at June 30, 2003 were $216,717,000, an increase of 14.48% compared
to June 30, 2002. Total loans grew 7.62% to $150,576,000 and total deposits grew
9.26% to $177,275,000, compared to last year. Non-performing loans, primarily
SBA guaranteed, increased to 1.81% of total assets, as compared to 0.23%
reported for the same period last year. The increase in non-performing loans
reflected additional loans being categorized as non-accrual. The ratio of
non-performing assets to total loans increased to 2.61% at June 30, 2003,
compared to 0.32% at June 30, 2002. The allowance for loan losses increased to
$2,297,000 or 11.37%, compared to June 30, 2002, and the ratio of the allowance
for loan losses to total loans increased to 1.53%, compared to 1.47% a year ago.
The allowance for loan losses as a percentage of non-performing assets was
58.53% at June 30, 2003. Net loan charge-offs were 0.25% of average loans at
June 30, 2003, compared to 0.03% for the same period in 2002.
The dividend for the second quarter paid on June 30, 2003 increased 4.17% from
the previous quarter to $0.125 (twelve and a half cents).
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, D.C. area. All
information for the period ended June 30, 2003, has been derived from unaudited
financial information.
This press release contains forward-looking statements as defined by federal
securities laws, including those using the words "We expect." These statements
may address issues that involve significant risks, uncertainties, estimates and
assumptions made by management. Actual results could differ materially from
current projections. Please refer to the company's filings with the Securities
and Exchange Commission for a summary of important factors that could affect the
Company's forward-looking statements. The Company undertakes no obligation to
revise these statements following the date of this press release.
SOURCE: The Adams National Bank
ATTACHMENT: Selected Financial Data
Abigail Adams National Bancorp, Inc. & Subsidiary
Selected Financial Data
June 30, 2003 and 2002
Three Months Ended: Six Months Ended:
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6/30/03 6/30/02 6/30/03 6/30/02
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Income statement:
Interest income 3,072,477 3,194,874 6,207,827 6,268,835
Interest expense 551,532 646,619 1,070,928 1,342,402
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Net interest income 2,520,945 2,548,255 5,136,899 4,926,433
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Provision for loan losses 311,065 87,500 381,065 187,500
Net interest income after provision for 2,209,880 2,460,755 4,755,834 4,738,933
loan losses
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Noninterest income 477,861 473,329 997,788 960,970
Noninterest expense 1,643,553 1,517,990 3,200,149 2,958,670
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Income before taxes 1,044,188 1,416,094 2,553,473 2,741,233
Provision for income tax expense 413,542 568,207 1,020,324 1,100,346
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Net income 630,646 847,887 1,533,149 1,640,887
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per share data:
Basic earnings per share $0.21 $0.28 $0.51 $0.54
Diluted earnings per share $0.21 $0.28 $0.51 $0.54
Dividends paid on common shares $0.125 $0.11 $0.245 $0.22
Average shares outstanding - Basic 3,007,811 3,001,957 3,006,570 3,001,444
Average shares outstanding - Diluted 3,023,380 3,018,124 3,022,533 3,017,511
consolidated balance sheet:
Assets:
Cash & due from banks 8,859,939 4,897,326
Short-term investments 22,850,595 14,816,878
Investment securities 32,143,135 28,147,636
Loans, gross 150,575,870 139,910,191
Allowance for loan losses (2,297,376) (2,062,888)
Other assets 4,584,826 3,592,267
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Total assets 216,716,989 189,301,410
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Liabilities:
Deposits 177,275,033 162,253,697
Short-term borrowings 5,717,061 5,500,312
Long-term borrowings 10,478,246 767,935
Accrued expenses & other liabilities 1,153,702 749,898
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Total liabilities 194,624,042 169,271,842
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Stockholders' equity:
Capital stock 30,243 27,438
Surplus 17,201,936 13,055,647
Retained earnings 4,860,768 6,946,483
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Total stockholders' equity 22,092,947 20,029,568
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Total liabilities & stockholders' 216,716,989 189,301,410
equity
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performance ratios:
Book value per share $7.35 $6.67
Return on average assets 1.21% 1.83% 1.52% 1.81%
Return on average stockholders' equity 11.46% 17.24% 14.17% 17.00%
Net interest margin 5.07% 5.78% 5.33% 5.70%
Efficiency ratio 54.81% 50.24% 52.16% 50.25%
Ratio of non-performing assets to total 1.81% 0.23%
assets
Allowance for loan losses to loans 1.53% 1.47%
Allowance for loan losses to 58.53% 465.48%
non-performing assets
Net chargeoffs to average loans 0.25% 0.03%
Ratio of non-performing loans to total 2.61% 0.32%
loans