FOR IMMEDIATE RELEASE
Date: July 22, 2004
Contact: Kathleen Walsh Carr
202.772.3711
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.
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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.
SOURCE: The Adams National Bank
ATTACHMENT: Selected Financial Data
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Abigail Adams National Bancorp, Inc. & Subsidiary
Selected Financial Data
June 30, 2004 and 2003
(In thousands, except per share data)
Three Months Ended: Six Months Ended:
----------------------------------- -----------------------------------
--------------- -- ---------------- --------------- -- ----------------
6/30/04 6/30/03 6/30/04 6/30/03
--------------- ---------------- --------------- ----------------
--------------- ---------------- -- ---------------
Income statement:
Interest income 3,331 3,072 6,617 6,208
Interest expense 465 551 923 1,071
--------------- ---------------- --------------- ----------------
--------------- ---------------- --------------- ----------------
Net interest income 2,866 2,521 5,694 5,137
--------------- ---------------- --------------- ----------------
--------------- ---------------- --------------- ----------------
Provision for loan losses 105 311 210 381
Net interest income after provision
for loan losses 2,761 2,210 5,484 4,756
--------------- ---------------- --------------- ----------------
--------------- ---------------- --------------- ----------------
Noninterest income 457 478 912 998
Noninterest expense 1,837 1,644 3,656 3,201
--------------- ---------------- --------------- ----------------
--------------- ---------------- --------------- ----------------
Income before taxes 1,381 1,044 2,740 2,553
Provision for income tax expense 550 413 1,091 1,020
--------------- ---------------- --------------- ----------------
--------------- ---------------- --------------- ----------------
Net income 831 631 1,649 1,533
=============== ================ =============== ================
=============== ================ =============== ================
Per share data:
Basic earnings per share $0.28 $0.21 $0.55 $0.51
Diluted earnings per share $0.28 $0.21 $0.55 $0.51
Dividends paid on common shares $0.13 $0.13 $0.25 $0.25
Average shares outstanding - Basic 3,014,343 3,007,811 3,014,343 3,006,570
Average shares outstanding - Diluted 3,025,901 3,023,380 3,026,188 3,022,533
Consolidated balance sheet:
Assets:
Cash & due from banks 9,498 8,860
Short-term investments 19,543 22,851
Investment securities 43,519 32,143
Loans, gross 163,278 150,576
Allowance for loan losses (2,307) (2,297)
Other assets 5,133 4,584
--------------- ----------------
--------------- ----------------
Total assets 238,664 216,717
=============== ================
=============== ================
Liabilities:
Deposits 201,606 177,275
Short-term borrowings 3,505 5,717
Long-term borrowings 9,580 10,478
Accrued expenses & other liabilities 925 1,154
--------------- ----------------
--------------- ----------------
Total liabilities 215,616 194,624
--------------- ----------------
--------------- ----------------
Stockholders' equity:
Capital stock 30 30
Surplus 17,241 17,202
Retained earnings 5,777 4,861
--------------- ----------------
--------------- ----------------
Total stockholders' equity 23,048 22,093
--------------- ----------------
--------------- ----------------
Total liabilities & stockholders' equity 238,664 216,717
=============== ================
=============== ================
Performance ratios:
Book value per share $7.65 $7.35
Return on average assets 1.49% 1.21% 1.49% 1.52%
Return on average stockholders' equity 14.38% 11.46% 14.29% 14.18%
Net interest margin 5.40% 5.07% 5.40% 5.33%
Net interest spread 4.95% 4.58% 4.94% 4.84%
Efficiency ratio 55.27% 54.81% 55.33% 52.16%
Ratio of nonperforming assets to total assets 1.37% 1.81%
Allowance for loan losses to loans 1.41% 1.53%
Allowance for loan losses to nonperforming assets 70.58% 58.53%