Abigail Adams National Bancorp Inc. (AANB, Financial) filed Quarterly Report for the period ended 2009-06-30.
Abigail Adams National Bancorp Inc. is a bank holding company. The company conducts operations through its sole wholly-owned subsidiary The Adams National Bank a national banking association. The Bank provides banking and other financial services to individuals small to medium-sized businesses and nonprofit and other organizations including the acceptance of demand time and savings deposits and the making and servicing of secured and unsecured loans. Abigail Adams National Bancorp Inc. has a market cap of $9.6 million; its shares were traded at around $2.8 with and P/S ratio of 0.3.
The Company recorded a $1.7 million net loss before taxes for the first half of 2009 compared to net income of $1.0 million for the first half of 2008. The decrease in earnings was primarily due to a $1.4 million or 18.2% decrease in net interest income and a $1.2 million or 18.4% increase in noninterest expense. The increase in noninterest expense reflected a $460,000 increase in professional fees and a $740,000 increase in other operating expense. Book value per share was $6.64 at June 30, 2009 compared to $8.87 at June 30, 2008. The return (loss) on average assets was -0.51% and the return (loss) on average equity was -8.66% for the first half of 2009 compared to a return on average assets of 0.30% and a return on average equity of 4.07% for the same period last year. Basic and diluted loss per share was $0.29 for the first half of 2009 compared to basic and diluted earnings per share of $0.19 for the first half of 2008.
Net interest income, which is the sum of interest and certain fees generated by earning assets minus interest paid on deposits and other funding sources, is the principal source of the Companys earnings. Net interest income for the quarter ended June 30, 2009 decreased $869,000 or 21.3% from $4.1 million for the second quarter of 2008. The decrease in net interest income was primarily attributable to the decline in the average balance and yield on loans and the loss of income on nonaccrual loans, partially offset by a decline in the cost of liabilities. Average loans decreased $37.5 million or 11.2% to $297.0 million during the second quarter of 2009 from $334.5 million in the second quarter of 2008. The decrease in loans was the result of managements strategy to maintain ANBs capital ratios in compliance with the Written Agreement by restricting growth of the balance sheet. The average yield on loans decreased 130 basis point to 5.34% in the second quarter of 2009 from 6.64% in the second quarter of 2008, primarily as a result of decreases in the Prime rate, a key index to which a substantial portion of our loan rates are tied. During the second quarter of 2009, the average Prime rate was 3.25% compared to 5.08% during the same time last year. The second quarter 2009 yield on average investments was 3.81%, a decrease of 83 basis points from 4.64% in the second quarter of 2008 reflecting the decrease in short and medium term interest rates compared to generally higher market rates in the same period last year. Average total investments decreased 7.0% to $80.6 million from $86.7 million in the second quarter of 2008 reflecting a $10.8 million decrease in investment securities partially offset by a $4.8 million increase in federal funds sold and other short-term investments.
Net interest income for the first half of 2009 decreased $1.4 million or 17.7% from $7.9 million for the first half of 2008. The decrease in the year to date net interest income was primarily attributable to the 128 basis point decrease in the average yield on average earning assets and a $30.7 million decline in average earning assets, partially offset by a decline in the cost of liabilities. The average yield on loans decreased 150 basis points to 5.39% at June 30, 2009 from 6.89% at June 30, 2008 primarily as a result of decreases in the Prime Rate, a key index to which a substantial portion of our loan rates are tied. During the first half of 2009, the average Prime Rate was 3.25% compared to 5.65% during the same period in 2008. The total average loan balance decreased $16.4 million or 5.1% to $306.2 million compared to the first half of 2008, reflecting managements strategy to maintain ANBs capital ratios in compliance with the Written Agreement by restricting growth in the balance sheet. The average yield on investments decreased 67 basis points from 4.61% to 3.94% reflecting the decrease in short and medium term interest rates in the first half of 2009 compared to generally higher market rates in the first half of 2008. The total average investment balance decreased $14.3 million to $80.5 million in the first quarter of 2009 compared to the first half of 2008 reflecting the decrease in the Companys liquidity.
Total noninterest expense for the six months ended June 30, 2009 increased $1.2 million or 18.2% to $7.9 million from $6.6 million for the same period in 2008. During the first half of 2009, professional fees increased $460,000, reflecting a $96,000 increase in audit fees and a $371,000 increase in legal fees partially offset by a $7,000 decrease in consulting fees. Other operating expenses increased $740,000, primarily due to a $342,000 increase in FDIC insurance assessments and a $589,000 increase in OREO expenses, partially offset by decreases in a majority of all other operating expense. The increase in FDIC insurance expense included a $134,000 special second quarter assessment.
Other assets increased $521,000 at June 30, 2009 from December 31, 2008. The most significant increases were in FHLB stock which increased by $335,000 necessitated by the increase in FHLB borrowings and the parent company income tax benefit which increased by $304,000. Other real estate owned increased $384,000 reflecting $302,000 in build out costs incurred on foreclosed property and a $82,000 transfer from loans, which was offset by an $514,000 increase in the related valuation account.
Read the The complete Report
Abigail Adams National Bancorp Inc. is a bank holding company. The company conducts operations through its sole wholly-owned subsidiary The Adams National Bank a national banking association. The Bank provides banking and other financial services to individuals small to medium-sized businesses and nonprofit and other organizations including the acceptance of demand time and savings deposits and the making and servicing of secured and unsecured loans. Abigail Adams National Bancorp Inc. has a market cap of $9.6 million; its shares were traded at around $2.8 with and P/S ratio of 0.3.
Highlight of Business Operations:
The Company recorded a $396,000 net loss before taxes for the second quarter of 2009 compared to net income before taxes of $104,000 in the second quarter of 2008. The loss during the three months ended June 30, 2009 compared to earnings for the same period in 2008 was primarily due to a $430,000 increase in noninterest expense, reflecting a $216,000 increase in professional fees and $281,000 increase in other operating expense. Interest income decreased $1.8 million or 27.6% quarter over quarter, partially offset by a $932,000 or a 38.1% decrease in interest expense and a $805,000 or 83.0% decrease in the provision for loan losses. The return (loss) on average assets for the second quarter of 2009 was -0.21% and the return (loss) on average equity was -3.48% compared to a return on average assets of 0.08% and a return on average equity of 1.05% for the same period last year. Basic and diluted loss per share was $0.06 for the second quarter of 2009 compared to basic and diluted earnings per share of $0.02 for the second quarter of 2008.The Company recorded a $1.7 million net loss before taxes for the first half of 2009 compared to net income of $1.0 million for the first half of 2008. The decrease in earnings was primarily due to a $1.4 million or 18.2% decrease in net interest income and a $1.2 million or 18.4% increase in noninterest expense. The increase in noninterest expense reflected a $460,000 increase in professional fees and a $740,000 increase in other operating expense. Book value per share was $6.64 at June 30, 2009 compared to $8.87 at June 30, 2008. The return (loss) on average assets was -0.51% and the return (loss) on average equity was -8.66% for the first half of 2009 compared to a return on average assets of 0.30% and a return on average equity of 4.07% for the same period last year. Basic and diluted loss per share was $0.29 for the first half of 2009 compared to basic and diluted earnings per share of $0.19 for the first half of 2008.
Net interest income, which is the sum of interest and certain fees generated by earning assets minus interest paid on deposits and other funding sources, is the principal source of the Companys earnings. Net interest income for the quarter ended June 30, 2009 decreased $869,000 or 21.3% from $4.1 million for the second quarter of 2008. The decrease in net interest income was primarily attributable to the decline in the average balance and yield on loans and the loss of income on nonaccrual loans, partially offset by a decline in the cost of liabilities. Average loans decreased $37.5 million or 11.2% to $297.0 million during the second quarter of 2009 from $334.5 million in the second quarter of 2008. The decrease in loans was the result of managements strategy to maintain ANBs capital ratios in compliance with the Written Agreement by restricting growth of the balance sheet. The average yield on loans decreased 130 basis point to 5.34% in the second quarter of 2009 from 6.64% in the second quarter of 2008, primarily as a result of decreases in the Prime rate, a key index to which a substantial portion of our loan rates are tied. During the second quarter of 2009, the average Prime rate was 3.25% compared to 5.08% during the same time last year. The second quarter 2009 yield on average investments was 3.81%, a decrease of 83 basis points from 4.64% in the second quarter of 2008 reflecting the decrease in short and medium term interest rates compared to generally higher market rates in the same period last year. Average total investments decreased 7.0% to $80.6 million from $86.7 million in the second quarter of 2008 reflecting a $10.8 million decrease in investment securities partially offset by a $4.8 million increase in federal funds sold and other short-term investments.
Net interest income for the first half of 2009 decreased $1.4 million or 17.7% from $7.9 million for the first half of 2008. The decrease in the year to date net interest income was primarily attributable to the 128 basis point decrease in the average yield on average earning assets and a $30.7 million decline in average earning assets, partially offset by a decline in the cost of liabilities. The average yield on loans decreased 150 basis points to 5.39% at June 30, 2009 from 6.89% at June 30, 2008 primarily as a result of decreases in the Prime Rate, a key index to which a substantial portion of our loan rates are tied. During the first half of 2009, the average Prime Rate was 3.25% compared to 5.65% during the same period in 2008. The total average loan balance decreased $16.4 million or 5.1% to $306.2 million compared to the first half of 2008, reflecting managements strategy to maintain ANBs capital ratios in compliance with the Written Agreement by restricting growth in the balance sheet. The average yield on investments decreased 67 basis points from 4.61% to 3.94% reflecting the decrease in short and medium term interest rates in the first half of 2009 compared to generally higher market rates in the first half of 2008. The total average investment balance decreased $14.3 million to $80.5 million in the first quarter of 2009 compared to the first half of 2008 reflecting the decrease in the Companys liquidity.
Total noninterest expense for the six months ended June 30, 2009 increased $1.2 million or 18.2% to $7.9 million from $6.6 million for the same period in 2008. During the first half of 2009, professional fees increased $460,000, reflecting a $96,000 increase in audit fees and a $371,000 increase in legal fees partially offset by a $7,000 decrease in consulting fees. Other operating expenses increased $740,000, primarily due to a $342,000 increase in FDIC insurance assessments and a $589,000 increase in OREO expenses, partially offset by decreases in a majority of all other operating expense. The increase in FDIC insurance expense included a $134,000 special second quarter assessment.
Other assets increased $521,000 at June 30, 2009 from December 31, 2008. The most significant increases were in FHLB stock which increased by $335,000 necessitated by the increase in FHLB borrowings and the parent company income tax benefit which increased by $304,000. Other real estate owned increased $384,000 reflecting $302,000 in build out costs incurred on foreclosed property and a $82,000 transfer from loans, which was offset by an $514,000 increase in the related valuation account.
Read the The complete Report
