FOR IMMEDIATE RELEASE
Date: October 21, 2004
Contact: Kathleen Walsh Carr
202.772.3600
Abigail Adams National Bancorp, Inc. Reports record earnings for the Third
Quarter
Washington, DC - Abigail Adams National Bancorp, Inc. (NASDAQ:AANB), the parent
holding company of The Adams National Bank, reported third quarter 2004 earnings
of $938 thousand, a 15.87% increase over third quarter 2003 earnings of $809
thousand. Diluted earnings per share were $0.31 for the third quarter of 2004,
as compared to $0.27 for the same period in 2003. The third quarter 2004
earnings represent a 1.56% return on average assets and a 15.69% return on
average equity.
Results for the nine months ended September 30, 2004 showed earnings of $2.6
million, a 10.44% increase over earnings for the same nine-month period in 2003
of $2.3 million. Diluted earnings per share were $0.86, compared to $0.78 for
the same period one year ago. Nine month 2004 earnings represent a 1.52%
annualized return on average assets and a 14.78% annualized return on average
equity.
Net interest income for the third quarter of 2004 increased 15.61% to $3 million
from $2.5 million in the third quarter of 2003. The increase reflects loan
growth and continued control of interest expense. The net interest margin was
5.22% for the quarter ended September 30, 2004, compared to 4.93% for the same
period in 2003. For the nine months ended September 30, 2004, net interest
income increased 12.43% to $8.7 million from $7.7 million in the same nine-month
period one year ago.
Non-interest income declined 14.19% for the third quarter, primarily centered in
reduced ATM fees. Adams National Bank is expanding its fee-based income in other
service areas to offset the ATM usage decline. Recently, Adams and Nationwide
Advantage entered into a partnership to provide a mortgage product for community
and residential construction customers.
Total deposits increased 5.91% to $202 million and loans grew 12.17% to $168
million, compared to September 30, 2003. The allowance for loan losses closed
the quarter at $2.46 million or 1.47% of total loans. Nonperforming assets,
primarily consisting of SBA-guaranteed loans, improved to 1.09%, versus 1.71%
reported at September 30, 2003.
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Kate Carr, President and CEO said, "The results reflect solid returns on our
investment in infrastructure and staffing. Adams Bank is positioned to take
advantage of the strong, vibrant economy in the Metropolitan Washington area."
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 September 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
September 30, 2004 and 2003
Three Months Ended: Nine Months Ended:
----------------------------------- -----------------------------------
9/30/04 9/30/03 9/30/04 9/30/03
--------------- ---------------- --------------- ----------------
Income statement:
Interest income 3,494,572 3,119,536 10,111,415 9,327,363
Interest expense 500,340 529,591 1,423,753 1,600,519
--------------- ---------------- --------------- ----------------
Net interest income 2,994,232 2,589,945 8,687,662 7,726,844
--------------- ---------------- --------------- ----------------
Provision for loan losses 105,000 90,000 315,000 471,065
Net interest income after provision for loan losses 2,889,232 2,499,945 8,372,662 7,255,779
--------------- ---------------- --------------- ----------------
Noninterest income 457,620 533,281 1,369,418 1,531,069
Noninterest expense 1,788,791 1,690,940 5,443,644 4,891,089
--------------- ---------------- --------------- ----------------
Income before taxes 1,558,061 1,342,286 4,298,436 3,895,759
Provision for income tax expense 620,471 533,090 1,711,468 1,553,413
--------------- ---------------- --------------- ----------------
Net income 937,590 809,196 2,586,968 2,342,346
=============== ================ =============== ================
Per share data:
Basic earnings per share $0.31 $0.27 $0.86 $0.78
Diluted earnings per share $0.31 $0.27 $0.86 $0.78
Dividends paid on common shares $0.125 $0.125 $0.38 $0.37
Average shares outstanding - Basic 3,019,342 3,010,793 3,016,021 3,007,993
Average shares outstanding - Diluted 3,027,489 3,024,720 3,026,634 3,023,278
Consolidated balance sheet:
Assets:
Cash & due from banks 8,136,837 8,195,406
Short-term investments 11,604,937 25,267,933
Investment securities 49,315,220 45,223,940
Loans, gross 167,617,392 149,429,583
Allowance for loan losses (2,457,073) (2,397,396)
Other assets 4,601,734 4,842,144
--------------- ----------------
Total assets 238,819,047 230,561,610
=============== ================
Liabilities:
Deposits 202,158,290 190,875,609
Short-term borrowings 3,901,265 6,307,264
Long-term borrowings 7,353,517 10,254,466
Accrued expenses & other liabilities 1,249,881 953,206
--------------- ----------------
Total liabilities 214,662,953 208,390,545
--------------- ----------------
Stockholders' equity:
Capital stock 30,374 30,308
Surplus 17,277,434 17,241,143
Retained earnings 6,848,286 4,899,614
--------------- ----------------
Total stockholders' equity 24,156,094 22,171,065
--------------- ----------------
Total liabilities & stockholders' equity 238,819,047 230,561,610
=============== ================
Performance ratios:
Book value per share $8.00 $7.36
Return on average assets 1.56% 1.47% 1.52% 1.50%
Return on average stockholders' equity 15.69% 14.53% 14.78% 14.30%
Net interest margin 5.22% 4.93% 5.34% 5.19%
Efficiency ratio 51.82% 54.14% 54.13% 52.83%
Ratio of nonperforming assets to total assets 1.09% 1.71%
Allowance for loan losses to loans 1.47% 1.60%
Allowance for loan losses to nonperforming assets 94.43% 60.85%