FOR IMMEDIATE RELEASE
Date: October 28, 2003
Contact: Kathleen Walsh Carr
202.772.3711
Abigail Adams national Bancorp Reports THIRD Quarter Earnings
Washington, DC - Abigail Adams National Bancorp, Inc. (NASDAQ:AANB), the parent
holding company of The Adams National Bank, announced earnings of $0.27 per
diluted share for the three months ended September 30, 2003, compared to $0.29
per diluted share in 2002. The dividend for the third quarter of 2003 was $0.125
per share, an increase of 13.6% compared to the third quarter of 2002. The
return on average assets for the third quarter was 1.5% and the return on
average equity was 14.5%. Net income for the quarter was $809.2 thousand,
compared with $874.3 thousand for the third quarter of 2002.
For the nine months ended September 30, 2003, total earnings decreased by 6.9%
to $2.3 million, compared to $2.5 million in 2002. The return on assets was 1.5%
and the return on average equity was 14.3% for the first nine months of 2003, as
compared to 1.8% and 17.0%, respectively, for the same period in 2002.
Net interest income for the third quarter of 2003 decreased by 0.7%, compared to
the third quarter of 2002. The net interest margin decreased from 5.59% in the
third quarter of 2002 to 4.93% for the third quarter of 2003. Interest income
produced by the growth in earning assets was offset by the decrease in asset
yields. The active management of the cost of funds lessened the impact of the
margin compression. Noninterest income increased 14.1%, compared to the third
quarter of 2002, due to the sale of loans and investment securities. Noninterest
expense included the impact of the cost of opening a new branch office in Silver
Spring, Maryland.
Net interest income for the nine months ended September 30, 2003 increased by
2.6%, compared to the same period in 2002, due to increased volumes. The
provision for loan losses increased 61.1% or by $178.6 thousand, compared to the
first nine months of 2002. Noninterest income increased 7.2%, resulting from
loan and investment security sales. Noninterest expense increased 9.4%.,
compared to 2002, predominantly due to increased staffing levels and the cost of
employee benefits.
Total assets at September 30, 2003 were $230.6 million, an 18.0% increase
compared to September 30, 2002. Investment securities totaled $45.2 million, a
70.3% increase from the same period in 2002. Total loans grew 2.3% to $149.4
million and total deposits grew 15.4% to $190.9 million, compared to 2002. The
allowance for loan losses was $2.4 million, an increase of 10.7%, compared to
September 30, 2002. The ratio of the allowance for loan losses to total loans
increased to 1.60%, compared to 1.48% a year ago. Nonperforming loans were 1.7%
of total assets, which was a modest 10 basis point improvement from the results
reported for the second quarter of 2003. Additionally, 50% of the nonperforming
loans are guaranteed by the SBA.
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. All
information for the period ended September 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
September 30, 2003 and 2002
Three Months Ended: Nine Months Ended:
------------------------------ ---------------------------------
9/30/03 9/30/02 9/30/03 9/30/02
------------- ------------- --------------- --------------
INCOME STATEMENT:
Interest income 3,119,536 3,250,852 9,327,363 9,519,687
Interest expense 529,591 643,222 1,600,519 1,985,624
------------- ------------- --------------- --------------
Net interest income 2,589,945 2,607,630 7,726,844 7,534,063
------------- ------------- --------------- --------------
Provision for loan losses 90,000 105,000 471,065 292,500
Net interest income after 2,499,945 2,502,630 7,255,779 7,241,563
provision for loan losses
------------- ------------- --------------- --------------
Noninterest income 533,281 467,271 1,531,069 1,428,241
Noninterest expense 1,690,940 1,512,331 4,891,089 4,471,001
------------- ------------- --------------- --------------
Income before taxes 1,342,286 1,457,570 3,895,759 4,198,803
Provision for income tax expense 533,090 583,300 1,553,413 1,683,646
------------- ------------- --------------- --------------
Net income 809,196 874,270 2,342,346 2,515,157
============= ============= =============== ==============
PER SHARE DATA:
Basic earnings per share $0.27 $0.29 $0.78 $0.84
Diluted earnings per share $0.27 $0.29 $0.78 $0.84
Dividends paid on common shares $0.125 $0.11 $0.37 $0.33
Average shares outstanding - Basic 3,010,793 3,001,957 3,007,993 3,001,750
Average shares outstanding - Diluted 3,024,720 3,017,984 3,023,278 3,019,281
CONSOLIDATED BALANCE SHEET:
Assets:
Cash & due from banks 8,195,406 7,764,557
Short-term investments 25,267,933 13,289,040
Investment securities 45,223,940 26,557,617
Loans, gross 149,429,583 146,148,349
Allowance for loan losses (2,397,396) (2,164,905)
Other assets 4,842,144 3,722,950
--------------- --------------
Total assets 230,561,610 195,317,608
=============== ==============
Liabilities:
Deposits 190,875,609 165,406,982
Short-term borrowings 6,307,264 7,493,690
Long-term borrowings 10,254,466 746,302
Accrued expenses & other 953,206 1,011,463
liabilities
--------------- --------------
Total liabilities 208,390,545 174,658,437
--------------- --------------
Stockholders' equity:
Capital stock 30,308 27,445
Surplus 17,241,143 13,059,578
Retained earnings 4,899,614 7,572,148
--------------- --------------
Total stockholders' equity 22,171,065 20,659,171
--------------- --------------
Total liabilities & 230,561,610 195,317,608
stockholders' equity
=============== ==============
PERFORMANCE RATIOS:
Book value per share $7.36 $6.88
Return on average assets 1.47% 1.79% 1.50% 1.81%
Return on average stockholders' 14.53% 16.97% 14.30% 16.99%
equity
Net interest margin 4.93% 5.59% 5.19% 5.66%
Efficiency ratio 54.14% 49.18% 52.83% 49.89%
Ratio of non-performing assets to 1.71% 0.23%
total assets
Allowance for loan losses to loans 1.60% 1.48%
Allowance for loan losses to 60.85% 475.04%
non-performing assets