3rd Quarter Earnings Up 25% at Annapolis Bancorp.ANNAPOLIS Annapolis, river, Canada Annapolis, river, c.75 mi (120 km) long, rising in W Nova Scotia, Canada, and flowing SW past Annapolis Royal to Annapolis Basin, an arm of the Bay of Fundy. , Md. -- Fueled by continued strong loan growth and an expanding net interest margin, 3rd quarter earnings at Annapolis Bancorp, Inc. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :ANNB), parent company of BankAnnapolis, improved by 25.1% over the same period in 2003. The company today announced net income of $548,000 ($0.14 per basic and $0.13 per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share) for the quarter ended September September: see month. 30, 2004 compared to $438,000 ($0.11 per basic and diluted share) for the same quarter last year. Net income through the first nine months of 2004 totaled $1,418,000 ($0.35 per basic and $0.34 per diluted share), up 21.8% from $1,164,000 ($0.29 per basic and $0.28 per diluted share) in the same period of 2003. During the three months ended September 30, 2004, the bank's loan portfolio grew by $6.5 million or 3.4%, bringing total year-to-date Year-to-date (YTD) The period beginning at the start of the calendar year up to the current date. loan growth to $29.9 million or 17.8%. Reflecting a strong local real estate market and a continuing low interest rate environment, real estate and construction loans accounted for much of the growth, increasing by $27.2 million or 25.2%. Installment loans Noun 1. installment loan - a loan repaid with interest in equal periodic payments installment credit consumer credit - a line of credit extended for personal or household use loan - the temporary provision of money (usually at interest) were up by $3.1 million or 16.0%, while commercial loan balances declined by $200,000 or 0.5%. The bank's net interest margin recovered in the 3rd quarter to 4.04% from 3.75% in the corresponding quarter of 2003, with net interest income improving by $442,000 or 21.9%. "Given the interest rate sensitivity of the bank's asset base, we expected to see improvement in the net interest margin when interest rates began to rise," said Chairman and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. Richard Ri·chard , Joseph Henri Maurice Known as "Rocket." 1921-2000. Canadian hockey player. A right wing for the Montreal Canadiens (1942-1960), he led his team to eight Stanley Cup championships and was the first player to score 50 goals in a M. Lerner Ler·ner , Alan Jay 1918-1986. American playwright and lyricist. He wrote a number of musicals with the composer Frederick Loewe, including Brigadoon (1947) and My Fair Lady (1956). Noun 1. . "With another rate increase announced by the Federal Reserve on September 21st, we expect this trend to continue into the 4th quarter." In the quarter just ended, average interest-earning assets grew to $242.3 million from $213.4 million in the same period of last year. As a result, total interest income increased by $497,000 or 17.3%, boosted by an improvement in the yield on earning assets Earning Assets Any income-earning asset owned by a company. Notes: These assets are generally interest-bearing accounts, bonds, and securities available for sale. See also: Asset, Asset Valuation, Earnings, Net Interest Margin to 5.52% from 5.39% in the 3rd quarter of 2003. Total interest expense went up in the 3rd quarter by $55,000 or 6.5%, as average interest-bearing Adj. 1. interest-bearing - of financial obligations on which interest is paid liabilities increased to $202.0 million from $182.0 million in the same period of 2003. The cost of interest-bearing liabilities continued to decline, however, dropping to 1.78% from 1.85% in the 3rd quarter of last year. Total assets expanded to $271.3 million at September 30, 2004 from $231.3 million at December December: see month. 31, 2003. This $40.0 million or 17.3% increase was funded by $31.6 million in new deposits, $5.0 million in borrowings from the Federal Home Loan Bank of Atlanta Atlanta (ətlăn`tə, ăt–), city (1990 pop. 394,017), state capital and seat of Fulton co., NW Ga., on the Chattahoochee R. and Peachtree Creek, near the Appalachian foothills; inc. 1847. , and a $1.4 million increase in repurchase agreement Repurchase agreement An agreement with a commitment by the seller (dealer) to buy a security back from the purchaser (customer) at a specified price at a designated future date. account balances. At September 30, 2004, total stockholders' equity Stockholders' Equity The portion of the balance sheet that includes capital received from investors in exchange for stock (paid-in capital), donated capital, and retained earnings. This is equal to total assets minus liabilities, preferred stock and intangible assets. amounted to $18.0 million, up 9.7% from $16.4 million at year-end year-end also year·end n. The end of a year. adj. Occurring or done at the end of the year: a year-end audit. Noun 1. 2003. Book value per share at the end of the 3rd quarter was $4.46. The Bank recorded a $63,000 provision for credit losses in the 3rd quarter, bringing the allowance for credit losses to $1,805,000 or 0.91% of total gross loans compared to 0.97% of total gross loans at December 31, 2003. Nonperforming assets Nonperforming asset An asset that is not effectively producing income, such as an overdue loan. nonperforming asset An asset that produces no income. of $115,000 accounted for 0.06% of total gross loans at quarter-end, and the allowance for credit losses provided greater than 15:1 coverage of nonperforming assets. Noninterest income decreased in the 3rd quarter by $81,000 or 13.9%, with mortgage banking fees down $67,000 or 54.0% from last year. Noninterest expense for the period rose by $101,000 or 5.3% compared to the same quarter last year, driven by an $88,000 or 8.1% increase in compensation expense which reflected increases in benefit costs and payroll taxes Payroll Tax Tax an employer withholds and/or pays on behalf of their employees based on the wage or salary of the employee. In most countries, including the U.S., both state and federal authorities collect some form of payroll tax. . For the nine months ended September 30, 2004, total interest income increased by $1.0 million or 12.3% compared to the same period in 2003. Total interest expense increased by $12,000 or 0.5%, resulting in a $1.0 million or 17.3% improvement in net interest income before provision. In the first nine months of 2004, the Bank's provision for credit losses increased by $163,000 over the same period last year, reflecting significant growth in the loan portfolio. Noninterest income declined by $41,000 or 2.6% and noninterest expense increased by $399,000 or 7.0%. Net income for the nine month period improved by $254,000 or 21.8%. The per share financial information contained in this release takes into account the effects of a 4-for-3 stock split declared de·clare v. de·clared, de·clar·ing, de·clares v.tr. 1. To make known formally or officially. See Synonyms at announce. 2. To state emphatically or authoritatively; affirm. 3. by the Annapolis Bancorp Board of Directors on October October: see month. 19, 2004. Shareholders of record on November November: see month. 5, 2004 will receive one additional share of Annapolis Bancorp, Inc. common stock for every three shares they own, payable on December 3, 2004. BankAnnapolis serves the banking needs of small businesses, professional concerns, and individuals through six community banking offices located in Anne Anne, British princess Anne (Anne Elizabeth Alice Louise), 1950–, British princess, only daughter of Queen Elizabeth II and Prince Philip, duke of Edinburgh. She was educated at Benenden School. Arundel
Coordinates: and Queen Anne's Counties in Maryland This is a list of the twenty-four counties and county-equivalents in the U.S. state of Maryland. Though an independent city rather than a county, the City of Baltimore is considered the equal of a county for most purposes and is a county-equivalent. . The bank's headquarters building and main branch are located at 1000 Bestgate Road, directly across from the Annapolis Mall The Annapolis Mall, officially known as Westfield Annapolis, is a shopping mall owned by The Westfield Group, and is located near U.S. Route 50 and Interstate 97 in Annapolis, Maryland. . Certain statements contained in this release, including without limitation, statements containing the words "believes," "plans," "expects," "anticipates," and words of similar import, constitute "forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. " within the meaning of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of the company to be materially different from any future results, performance or achievements expressed or implied Inferred from circumstances; known indirectly. In its legal application, the term implied is used in contrast with express, where the intention regarding the subject matter is explicitly and directly indicated. by such forward-looking statements.
Annapolis Bancorp, Inc. and Subsidiaries
Consolidated Balance Sheets
as of September 30, 2004 and December 31, 2003
($000)
(Unaudited) (Audited)
September 30, December 31,
2004 2003
-------------- ---------------
Assets
Cash and due $ 8,916 $ 6,033
Federal funds sold 14,174 8,014
Investments 38,811 37,969
Loans, net of allowance 196,896 167,123
Acc int rec 1,004 869
Def inc taxes 535 477
Premises and equip 7,007 6,936
Investment in BOLI 3,479 3,356
Other assets 479 561
-------------- ---------------
Total Assets $ 271,301 $ 231,338
============== ===============
Liabilities and
Stockholders' Equity
Deposits
Noninterest bearing $ 44,405 $ 33,385
Interest bearing 177,840 157,192
-------------- ---------------
Total deposits 222,245 190,577
Sec under agree
to repurchase 10,071 8,745
Other borrowed funds 15,000 10,000
Junior subordinated debentures 5,000 5,000
Acc int & acc exp 972 568
-------------- ---------------
Total Liabilities 253,288 214,890
Stockholders' Equity
Common stock 30 30
Paid in capital 12,986 12,898
Retained Earnings 5,122 3,704
Comprehensive income (125) (184)
-------------- ---------------
Total Equity 18,013 16,448
Total Liabilities and
-------------- ---------------
Equity $ 271,301 $ 231,338
============== ===============
Annapolis Bancorp, Inc. and Subsidiaries
Consolidated Statements of Income
for the Three and Nine Month Periods Ended September 30, 2004 and 2003
(Unaudited)
(In thousands, except per share data)
For the Three Months For the Nine Months
Ended September 30, Ended September 30,
---------------------- ---------------------
2004 2003 2004 2003
----------- ---------- ---------- ----------
Interest Income
Loans $ 2,954 $ 2,451 $ 8,418 $ 7,510
Investments 380 367 1,091 849
Federal funds sold 30 49 66 171
----------- ---------- ---------- ----------
Total int inc 3,364 2,867 9,575 8,530
Interest expense
Deposits 648 634 1,859 1,946
Sec sold under
agree to repurch 42 47 109 147
Borrowed funds 152 115 421 341
Junior debentures 61 52 170 113
----------- ---------- ---------- ----------
Total int exp 903 848 2,559 2,547
Net int inc 2,461 2,019 7,016 5,983
Provision 63 - 188 25
----------- ---------- ---------- ----------
Net int inc after prov 2,398 2,019 6,828 5,958
NonInterest Income
Service charges 330 349 977 846
Mortgage banking 57 124 173 373
Other fee income 113 108 362 334
----------- ---------- ---------- ----------
Total nonint inc 500 581 1,512 1,553
NonInterest Expense
Personnel 1,181 1,093 3,497 3,185
Occ and equip 241 260 713 746
Data processing exp 218 213 669 625
Other operating exp 384 357 1,229 1,153
----------- ---------- ---------- ----------
Total Nonint Exp 2,024 1,923 6,108 5,709
Income before taxes 874 677 2,232 1,802
Income tax expense 326 239 814 638
---------------------- ---------- ----------
Net income $ 548 $ 438 $ 1,418 $ 1,164
====================== ========== ==========
Per share data adjusted for the effect of a four-for-three stock split
in the form of a stock dividend to be paid December 3, 2004
Basic EPS $ 0.14 $ 0.11 $ 0.35 $ 0.29
=========== ========== ========== ==========
Diluted EPS $ 0.13 $ 0.11 $ 0.34 $ 0.28
=========== ========== ========== ==========
Book value per share $ 4.46 $ 3.98 $ 4.46 $ 3.98
=========== ========== ========== ==========
Avg fully diluted shares 4,133,665 4,094,402 4,124,549 4,087,197
=========== ========== ========== ==========
Annapolis Bancorp, Inc. and Subsidiaries
Financial Ratios and Average Balance Highlights
(In thousands)
For the Three Months For the Nine Months Year Ended
Ended September 30, Ended September 30, Dec. 31,
-------------------- -------------------- --------
2004 2003 2004 2003 2003
-------- -------- -------- -------- --------
(Unaudited) (Unaudited) (Unaudited) (Unaudited) (Audited)
Performance
Ratios
(annualized)
Return on
average
assets 0.84% 0.74% 0.76% 0.70% 0.75%
Return on
average
equity 12.90% 10.92% 11.03% 9.94% 10.59%
Average
equity to
average
assets 6.73% 6.78% 6.86% 7.13% 7.11%
Net interest
margin 4.04% 3.75% 4.03% 3.95% 3.95%
Efficiency
ratio 68.36% 73.96% 71.62% 75.76% 73.90%
Other Ratios
Allow for
credit
losses to
loans 0.91% 0.97% 0.91% 0.97% 0.97%
Nonperforming
to gross
loans 0.06% 0.13% 0.06% 0.13% 0.02%
Net charge-
offs to avg
loans 0.01% 0.00% 0.01% 0.00% 0.00%
Tier 1
capital
ratio 11.2% 12.7% 11.2% 12.7% 12.2%
Total capital
ratio 12.1% 13.6% 12.1% 13.6% 13.1%
Average
Balances
Assets 260,900 230,887 250,608 219,265 222,324
Earning
assets 242,335 213,393 232,400 202,343 205,284
Loans, gross 193,465 152,946 184,932 152,324 155,067
Interest
Bearing
Liabilities 202,047 181,955 194,693 172,893 175,012
Stockholders'
Equity 17,564 15,659 17,191 15,633 15,800
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