AANB Abigail Adams National Bancorp (MM)

WASHINGTON, Feb. 13 /PRNewswire-FirstCall/ -- Abigail Adams National Bancorp, Inc. (NASDAQ:AANB) announced today that net income for the fourth quarter ended December 31, 2006 was a record high at $1,251,000, or $.36 per diluted share, a 69.3% increase over the net income of $739,000 or $.21 per diluted share reported for the fourth quarter of 2005. The return on average assets for the fourth quarter 2006 was 1.24% and the return on average equity was 16.55%, compared to 0.85% and 10.45%, respectively, for the same period last year. The net income for the year ended December 31, 2006 was also record for AANB and was $3,696,000 or $1.07 per diluted share, an increase of 11.3%, compared to the net income of $3,320,000 and $0.98 diluted earnings per share reported for 2005. The return on average assets was 0.99% and the return on average equity was 12.78% for 2006, as compared to 1.15% and 12.49%, respectively, for 2005. Jeanne Hubbard, President and CEO of the Abigail Adams National Bancorp, said, "Our employees at both affiliate banks have worked very hard to produce these results in a time of shrinking interest margins, slow-downs in the commercial real estate markets, and keen competition for loans and deposits. We believe that our shareholders are beginning to see the benefits from our acquisition of our Richmond affiliate. We anticipate further beneficial economies of scale to be put into place in 2007 that should have a further positive impact to our earnings." Net interest income for the fourth quarter of 2006 increased 12.1% to $4,487,000, compared to $4,001,000 for the same period in 2005. This increase was due primarily to growth in the Company's loan portfolio. The net interest margin remained strong at 4.66% for the fourth quarter 2006, but decreased from the 4.84% reported for the same period in 2005, primarily due to increasing funding costs in 2006. Net interest income for the year ending December 31, 2006 was $16,851,000, a 19.1% increase from the $14,154,000 for the year ending December 31, 2005. The net interest margin for the year 2006 was 4.76%, compared to 5.12% for 2005. The 36 basis point decline was due to competitive deposit pricing in the Company's local markets, and the pressure of a flat/inverted yield curve on new and repricing loans and deposits. Noninterest income for the fourth quarter of 2006 was $598,000, compared to $573,000 for the same period in 2005. The gain on sale of loans in the fourth quarter was $184,000, compared to $92,000 in the fourth quarter of 2005. Noninterest income for the period ended December 31, 2006 was $2.1 million, compared to $1.9 million for 2005. The gain on sale of loans for 2006 was $386,000, compared to $296,000 in 2005. Noninterest expenses were $3.5 million for the fourth quarter of 2006, compared to $3.3 million for the same period in 2005. The increase was due in part to additional staff and additional leased office space. Noninterest expenses for the period ended December 31, 2006 were $13.2 million, compared to $10.2 million for 2005. Salary and benefits expenses were $6.7 million, an increase of 26.4% in 2006, compared to $5.3 million in 2005, due to increases in staffing levels and the associated benefits, as well as the expansion of the loan department into new leased space. The Company's assets totaled $405.5 million at December 31, 2006, an increase of $62.5 million, or 18.2%, compared to assets at December 31, 2005. Loans increased $59.7 million, or 24.0%, from December 31, 2005. Loan growth in 2006 was driven by growth in the construction and commercial real estate markets. Deposits totaled $363.6 million at December 31, 2006, an increase of $71.6 million, or 24.5%, compared to 2005. Nonperforming loans and OREO totaled $3.56 million or 1.16% of period end loans and OREO, an increase from 0.23% at December 31, 2005. The increase in nonperforming loans was due to some deterioration in the SBA loan portfolio and two large past due construction loans that are in the process of collection. 67.6% of the nonperforming loans are guaranteed by the Small Business Administration. The allowance for loan losses was $4.4 million at December 31, 2006, representing 1.44% of total loans, compared to 1.75% at December 31, 2005. The allowance for loan losses as a percentage of nonperforming loans decreased to 129%, compared to 980% at December 31, 2005. Net recoveries were $319,000. The provision for loan losses decreased in 2006 due to a reversal of the allowance and was a net reduction of $232,000, compared to a provision expense of $310,000 taken in 2005. The reduction of the provision was due to improved conditions in one of the banking subsidiaries. Abigail Adams National Bancorp is a two-bank holding company, majority owned and operated by women. The Company is focused on serving the financial needs of minorities, women, small to mid-sized businesses, and not-for-profit organizations in the Washington, DC and Richmond metropolitan areas. All information for the period ended December 31, 2006 has been derived from unaudited financial information. Statements contained in this press release that are not historical facts may constitute forward-looking statements (within the meaning of Section 21E of the Securities and Exchange Act of 1934, as amended) which involve significant risks and uncertainties. The Company intends such forward-looking statements to be covered in the Private Securities Litigation Reform Act of 1995, and is including this statement for purposes of invoking these safe harbor provisions. The Company's ability to predict results or the actual effect of future plans or strategies is inherently uncertain and involves a number of risks and uncertainties, some of which have been set forth in the Company's most recent annual reports on Form 10-K, which disclosures are incorporated by reference herein. The fact that there are various risks and uncertainties should be considered in evaluating forward-looking statements and undue reliance should not be placed on such statements. Abigail Adams National Bancorp, Inc. & Subsidiaries Selected Financial Data December 31, 2006 and 2005 (Unaudited) (In thousands, except per share data) Three Months Ended: Twelve Months Ended: 12/31/06 12/31/05 12/31/06 12/31/05 INCOME STATEMENT: Interest income 7,379 5,588 26,259 18,461 Interest expense 2,892 1,587 9,408 4,307 Net interest income 4,487 4,001 16,851 14,154 Provision for loan losses (432) 90 (232) 310 Net interest income after provision for loan losses 4,919 3,911 17,083 13,844 Noninterest income 598 573 2,130 1,911 Noninterest expense 3,490 3,252 13,221 10,240 Income before taxes 2,027 1,232 5,992 5,515 Provision for income tax expense 776 493 2,296 2,195 Net income 1,251 739 3,696 3,320 PER SHARE DATA: Basic earnings per share $0.36 $0.21 $1.07 $0.98 Diluted earnings per share $0.36 $0.21 $1.07 $0.98 Dividends paid on common shares $0.13 $0.13 $0.50 $0.50 Average shares outstanding - - Basic 3,462 3,462 3,462 3,383 Average shares outstanding - - Diluted 3,466 3,469 3,466 3,390 CONSOLIDATED BALANCE SHEET: Assets: Cash & due from banks 13,729 12,216 Short-term investments 13,834 6,333 Investment securities 63,069 70,116 Loans, gross 307,957 248,287 Allowance for loan losses (4,432) (4,345) Other assets 11,345 10,423 Total assets 405,502 343,030 Liabilities: Deposits 363,590 292,032 Short-term borrowings 2,378 8,256 Long-term borrowings 6,288 11,213 Accrued expenses & other liabilities 3,064 3,476 Total liabilities 375,320 314,977 Stockholders' equity: Capital stock 35 35 Surplus 25,123 24,865 Retained earnings 5,024 3,153 Total stockholders' equity 30,182 28,053 Total liabilities & stockholders' equity 405,502 343,030 PERFORMANCE RATIOS: Book value per share $8.72 $8.10 Return on average assets 1.24% 0.85% 0.99% 1.15% Return on average stockholders' equity 16.55% 10.45% 12.78% 12.49% Net interest margin 4.66% 4.84% 4.76% 5.12% Efficiency ratio 68.63% 71.10% 69.65% 63.74% Ratio of nonperforming assets to total assets 0.88% 0.17% Ratio of nonperforming assets to loans & OREO 1.16% 0.23% Allowance for loan losses to loans 1.44% 1.75% Allowance for loan losses to nonperforming loans 129% 980% DATASOURCE: Abigail Adams National Bancorp, Inc. CONTACT: Jeanne Delaney Hubbard of Abigail Adams National Bancorp, Inc., +1-202-772-3747 Web site: http://www.adamsbank.com/

Copyright