Alliance Bankshares Corp. (ABVA, Financial) filed Quarterly Report for the period ended 2011-09-30.
Alliance Bankshares Corp. has a market cap of $26.3 million; its shares were traded at around $5.15 with a P/E ratio of 22.4 and P/S ratio of 0.9.
Net interest margin decreased to 3.61% for the three months ended September 30, 2011 compared to 3.72% for the three months ended September 30, 2010, a decrease of 11 basis points. Net interest margin was 3.74% for the nine months ended September 30, 2011 compared to 3.76% for the nine months ended September 30, 2010, a decrease of 2 basis points. Net interest margin for the first nine months was negatively affected by the increase in non-accrual loans and by a decrease in the yield on interest earning assets. Total interest income reversed for the nine months ended September 30, 2011 was $461 thousand compared to $186 thousand for the nine months ended September 30, 2010.
Net interest income (on a fully tax equivalent basis) for the nine months ended September 30, 2011 was $12.8 million compared to $14.5 million for the same period in 2010. Interest income on earning assets was $3.6 million lower for the nine months ended September 30, 2011, compared to the first nine months of 2010. Of the $3.6 million decrease in interest income, $1.1 million is attributable to the $25.9 million lower average balance in loans. The decrease in yield from 5.92% to 5.68% in the loan portfolio also contributed $613 thousand to the decrease in interest income. The reduction in the average balance in the investment securities portfolio was $23.5 million and contributed $727 thousand to the reduction in interest income. The decrease in yield from 4.56% to 3.57% in the investment securities portfolio also contributed $1.0 million to the decrease in interest income. This was offset by the decrease in interest expense of $1.9 million. The average balance of interest bearing deposits decreased by $44.5 million and contributed $700 thousand to the reduction in interest expense. The average rate paid on deposits improved to 1.53% from 2.06%, which reduced interest expense by $1.0 million. A lower average balance of borrowed funds offset a higher rate paid on borrowed funds.
Total average interest earning assets yielded 4.82% for the three months ended September 30, 2011 compared to the yield of 5.21% for the same period in 2010. Total interest income (on a fully tax equivalent basis) was $5.4 million for the three months ended September 30, 2011 compared to $6.5 million for the three months ended September 30, 2010. Interest income decreased from the third quarter of 2010 to the third quarter of 2011 due to the smaller average loans and securities balances, which are a product of our strategy to reposition our balance sheet, and lower yields generated by our interest-earning assets in the low interest rate environment.
Total average earning assets yielded 5.0% for the nine months ended September 30, 2011 or 38 basis points lower than the yield of 5.38% for the same period in 2010. Total interest income (on a fully tax equivalent basis) was $17.1 million for the nine months ended September 30, 2011 compared to $20.7 million for the nine months ended September 30, 2010.
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Alliance Bankshares Corp. has a market cap of $26.3 million; its shares were traded at around $5.15 with a P/E ratio of 22.4 and P/S ratio of 0.9.
Highlight of Business Operations:
Financial Performance Measures. Bankshares net loss for the three month period ended September 30, 2011 was $503 thousand, a decline of $745 thousand over the third quarter of 2010 net income of $242 thousand. The net loss of $503 thousand includes net interest income of $4.0 million compared to $4.6 million for the same period last year, a decrease of $583 thousand. That decrease is due primarily to a decrease in interest income in the amount of $1.1 million attributed to the lower average balances of the investment and loan portfolios, which was partially offset by a decrease of $510 thousand in the cost of funds. For the three months ended September 30, 2011, total interest expense was $1.4 million compared to $1.9 million for the three months ended September 30, 2010. These results led to $0.10 basic and diluted loss per share for the quarter ended September 30, 2011, compared to $0.05 basic and diluted earnings per share for the quarter ended September 30, 2010. Weighted average basic shares outstanding were 5,108,969 for the three months ended September 30, 2011 and 5,106,819 for the three months ended September 30, 2010. Weighted average diluted shares outstanding were 5,108,969 for the three months ended September 30, 2011 and 5,108,150 for the three months ended September 30, 2010.Net interest margin decreased to 3.61% for the three months ended September 30, 2011 compared to 3.72% for the three months ended September 30, 2010, a decrease of 11 basis points. Net interest margin was 3.74% for the nine months ended September 30, 2011 compared to 3.76% for the nine months ended September 30, 2010, a decrease of 2 basis points. Net interest margin for the first nine months was negatively affected by the increase in non-accrual loans and by a decrease in the yield on interest earning assets. Total interest income reversed for the nine months ended September 30, 2011 was $461 thousand compared to $186 thousand for the nine months ended September 30, 2010.
Net interest income (on a fully tax equivalent basis) for the nine months ended September 30, 2011 was $12.8 million compared to $14.5 million for the same period in 2010. Interest income on earning assets was $3.6 million lower for the nine months ended September 30, 2011, compared to the first nine months of 2010. Of the $3.6 million decrease in interest income, $1.1 million is attributable to the $25.9 million lower average balance in loans. The decrease in yield from 5.92% to 5.68% in the loan portfolio also contributed $613 thousand to the decrease in interest income. The reduction in the average balance in the investment securities portfolio was $23.5 million and contributed $727 thousand to the reduction in interest income. The decrease in yield from 4.56% to 3.57% in the investment securities portfolio also contributed $1.0 million to the decrease in interest income. This was offset by the decrease in interest expense of $1.9 million. The average balance of interest bearing deposits decreased by $44.5 million and contributed $700 thousand to the reduction in interest expense. The average rate paid on deposits improved to 1.53% from 2.06%, which reduced interest expense by $1.0 million. A lower average balance of borrowed funds offset a higher rate paid on borrowed funds.
Total average interest earning assets yielded 4.82% for the three months ended September 30, 2011 compared to the yield of 5.21% for the same period in 2010. Total interest income (on a fully tax equivalent basis) was $5.4 million for the three months ended September 30, 2011 compared to $6.5 million for the three months ended September 30, 2010. Interest income decreased from the third quarter of 2010 to the third quarter of 2011 due to the smaller average loans and securities balances, which are a product of our strategy to reposition our balance sheet, and lower yields generated by our interest-earning assets in the low interest rate environment.
Total average earning assets yielded 5.0% for the nine months ended September 30, 2011 or 38 basis points lower than the yield of 5.38% for the same period in 2010. Total interest income (on a fully tax equivalent basis) was $17.1 million for the nine months ended September 30, 2011 compared to $20.7 million for the nine months ended September 30, 2010.
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