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Articles 

Alliance Bankshares Corp. Reports Operating Results (10-Q)

May 15, 2012 | About:

Alliance Bankshares Corp. (ABVA) filed Quarterly Report for the period ended 2012-03-31.

Alliance Bksh has a market cap of $23 million; its shares were traded at around $4.37 with and P/S ratio of 1.

Highlight of Business Operations:

Financial Performance Measures. Bankshares net loss for the three month period ended March 31, 2012 was $433 thousand, a decrease of $798 thousand over the first quarter of 2011 net income of $365 thousand. The net loss of $433 thousand includes net interest income of $3.3 million compared to $4.4 million for the same period last year, a decrease of $1.1 million. The decrease is due primarily to a decrease in interest income in the amount of $1.4 million, which was primarily driven by the change in the investment portfolio mix in anticipation of the merger in 2011. This increase was partially offset by a decrease of $283 thousand in the cost of funds. For the three months ended March 31, 2012, total interest expense was $1.2 million compared to $1.5 million for the three months ended March 31, 2011. These results led to $(0.08) basic and diluted earnings per share for the quarter ended March 31, 2012, compared to $0.07 basic and diluted earnings per share for the quarter ended March 31, 2011. Weighted average basic shares outstanding were 5,109.969 for the three months ended March 31, 2012 and 5,108,048 for the three months ended March 31, 2011. Weighted average diluted shares outstanding were 5,270,878 for the three months ended March 31, 2012 and 5,123,029 for the three months ended March 31, 2011.

Net Interest Income. Net interest income (on a fully tax equivalent basis) for the three months ended March 31, 2012 was $3.3 million compared to $4.4 million for the same period in 2011. Interest income on earning assets was $1.4 million lower for the three months ended March 31, 2012, compared to the first quarter of 2011. Of the $1.4 million decrease in interest income, $297 thousand is attributable to the $300 thousand lower average balance in loans and $6.7 million higher average non-accrual loans. The reduction in the average balance in the investment securities portfolio was $22.2 million and contributed $185 thousand to the reduction in interest income. The decrease in yield from 3.89% to 1.14% in the investment securities portfolio also contributed to $810 thousand to the decrease in interest income. This decrease was primarily driven by the change in the investment portfolio mix in anticipation of the merger in 2011. The average balance of interest-bearing deposits decreased by $18.8 million and contributed $58 thousand to the decrease in interest expense. The average rate paid on deposits improved to 1.29% from 1.62%, which reduced interest expense by $272 thousand.

Total average interest-earning assets yielded 4.25% for the three months ended March 31, 2012 compared to the yield of 5.08% for the same period in 2011. Total interest income on a fully tax equivalent basis was $4.5 million for the three months ended March 31, 2012 compared to $5.9 million for the three months ended March 31, 2011. As discussed above, interest income decreased from the first quarter of 2011 to the first quarter of 2012 due to smaller average loans and securities balances, which are a product of our strategy to reposition our balance sheet.

Read the The complete Report

About the author:

10qk
Charlie Tian, Ph.D. - Founder of GuruFocus. You can now order his book Invest Like a Guru on Amazon.

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