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

July 27, 2012 | About:

Alliance Bankshares Corp. (ABVA) filed Quarterly Report for the period ended 2012-06-30.

Alliance Bankshares Corporation has a market cap of $22.2 million; its shares were traded at around $4.45 with and P/S ratio of 1.

Highlight of Business Operations:

The net loss for the quarter ended June 30, 2012 was $919 thousand compared to net income of $394 thousand for the same period in 2011, a decrease of $1.3 million. The net loss was $1.4 million for the six months ended June 30, 2012 compared to net income of $759 thousand for the six months ended June 30, 2011, a decrease of $2.1 million. Loss per common share, basic and diluted, amounted to $0.26 for the six months ended June 30, 2012, compared to earnings per share of $0.15 for the six months ended June 30, 2011. Earnings were negatively affected by merger related expenses of $418 thousand, the fair value adjustment on the FHLB advance of $209 thousand and a reduction in interest income of $2.7 million from $11.7 million for the six months ended June 30, 2011, to $9.0 million for the six months ended June 30, 2012, offset by a reduction in the provision for loan losses of approximately $769 thousand resulting primarily from the collection in full of a previously reserved loan.

Financial Performance Measures. Bankshares net loss for the three month period ended June 30, 2012 was $919 thousand, a decrease of $1.3 million over the second quarter of 2011 net income of $394 thousand. The net loss of $919 thousand includes net interest income of $3.3 million compared to $4.3 million for the same period last year, a decrease of $1.0 million. The decrease is due primarily to a decrease in interest income in the amount of $1.3 million attributed to the lower average yield on the investment portfolio and the lower balance on the loan portfolio, which was partially offset by a decrease of $245 thousand in the cost of funds. For the three months ended June 30, 2012, total interest expense was $1.2 million compared to $1.4 million for the three months ended June 30, 2011. These results led to $0.18 basic and diluted loss per share for the quarter ended June 30, 2012, compared to $0.08 basic and diluted earnings per share for the quarter ended June 30, 2011. Weighted average basic shares outstanding were 5,109,969 for the three months ended June 30, 2012 and 5,108,821 for the three months ended June 30, 2011. Weighted average diluted shares outstanding were 5,109,969 for the three months ended June 30, 2012 and 5,134,153 for the three months ended June 30, 2011.

For the six month period ended June 30, 2012, Bankshares had net loss of $1.4 million compared to net income of $759 thousand for the same period in the prior year, a decline of $2.1 million. The net loss of $1.4 million includes net interest income of $6.6 million compared to $8.7 million for the same period last year, a decrease of $2.1 million. The decrease is due primarily to a decrease in interest income in the amount of $2.7 million, from $11.7 million for the six months ended June 30, 2011, to $9.0 million for the same period in 2012, and the lower average yield on the investment portfolio and the lower average balances on the loan portfolio. The decrease was partially offset by a decrease of $530 thousand in the cost of funds. For the six months ended June 30, 2012, total interest expense was $2.4 million compared to $3.0 million for the six months ended June 30, 2011. These results led to a $0.26 basic and diluted loss per share for the six months ended June 30, 2012. The basic and diluted earnings per share for the six months ended June 30, 2011 was $0.15. Weighted average basic shares outstanding were 5,109,969 for the six months ended June 30, 2012 and 5,108,436 for the six months ended June 30, 2011. Weighted average diluted shares outstanding were 5,109,969 and 5,125,151 for the six months ended June 30, 2012 and June 30, 2011, respectively.

Net interest income (on a fully tax equivalent basis) for the six months ended June 30, 2011 was $6.6 million compared to $8.7 million for the same period in 2011. Interest income on earning assets was $2.7 million lower for the six months ended June 30, 2012, compared to the first six months of 2011. Of the $2.7 million decrease in interest income, $154 thousand is attributable to the $25.4 million lower average balance in loans. The reduction in the average balance in the investment securities portfolio was $16.5 million and contributed $257 thousand to the reduction in interest income. This was offset by the decrease in interest expense of $530 thousand. The average balance of interest bearing deposits decreased by $20.0 million and contributed $82 thousand to the reduction in interest expense.

Total average earning assets yielded 4.23% for the six months ended June 30, 2012 or 88 basis points lower than the yield of 5.11% for the same period in 2011. Total interest income (on a fully tax equivalent basis) was $9.0 million for the six months ended June 30, 2012 compared to $11.7 million for the six months ended June 30, 2011.

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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