4th Quarter Earnings Up 48% at Annapolis Bancorp; Full Year Earnings Exceed $2 Million for First Time in Company History.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. -- 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) closed out 2004 in record fashion, posting results that made the 4th quarter the most profitable in its history with earnings of $755,000 ($0.19 per basic share and $0.18 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). Net income for the three months ended December December: see month. 31, 2004 increased by 48.0% over the same period in 2003 when the parent company of BankAnnapolis reported net income of $510,000 ($0.13 per basic share and $0.12 per diluted share). Net income for 2004 totaled $2,173,000 ($0.54 per basic share and $0.52 per diluted share), up 29.8% from net income of $1,674,000 ($0.42 per basic share and $0.41 per diluted share) for the year ended December 31, 2003. "Continued strong growth in loans and deposits enabled us to reach a certain critical mass in 2004," said 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. , 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. of Annapolis Bancorp and BankAnnapolis. "This resulted in improved efficiency and profitability, and created what we believe are favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. conditions for continued momentum in 2005." Lerner pointed to notable improvement in certain key metrics metrics Managed care A popular term for standards by which the quality of a product, service, or outcome of a particular form of Pt management is evaluated. See TQM. as evidence of the Company's progress in 2004: return on average assets rose to 0.84% from 0.75% in the prior year, return on average equity climbed to 12.48% from 10.59%, and the efficiency ratio improved to 68.2% from 73.9% in 2003. "All of these important and closely watched ratios reflect a year of substantial advancement A gift of money or property made by a person while alive to his or her child or other legally recognized heir, the value of which the person intends to be deducted from the child's or heir's eventual share in the estate after the giver's death. ," Lerner said. Total assets grew to $284.2 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. 2004, a 22.9% increase over total assets of $231.3 million at year-end 2003. Average interest-earning assets in 2004 were $240.5 million compared to $205.3 million in 2003, a 17.1% increase. As a result, total interest income improved by $1,783,000 or 15.5% despite a slightly lower overall 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 (5.51% in 2004 vs. 5.59% in 2003). The increase in interest-earning assets resulted from another year of strong growth in both the loan and investment portfolios. Total gross loans increased by 21.0% to $204.1 million from $168.7 million at year-end 2003. Real estate loans grew by $25.7 million (30.9%) and construction loans by $7.2 million (29.0%), as favorable interest rates and a thriving thrive intr.v. thrived or throve , thrived or thriv·en , thriv·ing, thrives 1. To make steady progress; prosper. 2. local real estate market generated substantial demand for portfolio mortgage products. The bank also added $16.4 million to its portfolio of investment securities in 2004, a 43.2% increase over year-end 2003 levels. The Company's cost of interest-bearing Adj. 1. interest-bearing - of financial obligations on which interest is paid liabilities dropped to 1.80% in 2004 from 1.92% in 2003. Even so, total interest expense for the year increased by $273,000 or 8.1% as average interest-bearing liabilities grew by $26.7 million (15.3%) from 2003. The increase in interest-bearing liabilities in 2004 came from deposit growth and $15.0 million in new 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. . Total deposits improved to $226.8 million at year-end compared to $190.6 million at December 31, 2003, a 19.0% increase. The bulk of the deposit growth came in certificates of deposits (up $18.4 million or 27.7%), money market accounts (up $11.3 million or 36.0%), and noninterest-bearing demand deposits (up $6.1 million or 18.3%). Net interest income improved by $1,510,000 or 18.6% in 2004, aided by expansion in the net interest margin to 4.00% from 3.95% in 2003. Given the interest rate sensitivity of the Company's asset base, further increases by the Federal Reserve in its target federal funds rate Federal Funds Rate The interest rate at which a depository institution lends immediately available funds (balances at the Federal Reserve) to another depository institution overnight. should continue to positively impact the Company's net interest margin in 2005. The end of the mortgage refinancing Refinancing An extension and/or increase in amount of existing debt. boom caused total noninterest income to decline by $59,000 or 2.8% in 2004. Fees earned on brokered mortgage loans fell to $239,000 from $448,000 in 2003, a 46.7% drop. Partially offsetting this deficit were increases in transaction-based service charges, fees earned from VISA See VESA. check cards, and income from bank-owned life insurance. Noninterest expense in 2004 rose by $413,000 or 5.5% compared to the prior year. Compensation expense increased by $369,000 (8.8%) as a result of annual merit increases and higher benefit costs. Data processing data processing or information processing, operations (e.g., handling, merging, sorting, and computing) performed upon data in accordance with strictly defined procedures, such as recording and summarizing the financial transactions of a expense also continued to rise in correlation with higher transactional volume. At year-end 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 $18.7 million, up 14.0% from $16.4 million at December 31, 2003. Book value per basic share at December 31, 2004 was $4.61. After net charge offs of $94,000 and a $294,000 provision for credit losses in 2004, the allowance for credit losses at December 31, 2004 stood at $1,832,000 (0.90% of total gross loans) and provided greater than 3:1 coverage of 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 $599,000 (0.29% of total gross loans). The per share financial information contained in this release gives effect to 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 and paid 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," "should," and words of similar import relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc future results of the Company, 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 December 31, 2004 and December 31, 2003
($000)
(Unaudited) (Audited)
December 31, December 31,
2004 2003
------------ ------------
Assets
Cash and due $ 7,455 $ 6,033
Federal funds sold 7,213 8,014
Investments 54,440 37,969
Loans, net of allowance 202,296 167,123
Acc int rec 1,061 869
Def inc taxes 594 477
Premises and equip 6,998 6,936
Investment in BOLI 3,510 3,356
Other assets 621 561
------------ ------------
Total Assets $ 284,188 $ 231,338
============ ============
Liabilities and Stockholders' Equity
Deposits
Noninterest bearing $ 39,473 $ 33,385
Interest bearing 187,361 157,192
------------ ------------
Total deposits 226,834 190,577
Sec under agree to repurchase 7,901 8,745
Other borrowed funds 25,000 10,000
Junior subordinated debentures 5,000 5,000
Acc int & acc exp 791 568
------------ ------------
Total Liabilities 265,526 214,890
Stockholders' Equity
Common stock 41 30
Paid in capital 12,986 12,898
Retained Earnings 5,877 3,704
Comprehensive income (242) (184)
------------ ------------
Total Equity 18,662 16,448
------------ ------------
Total Liabilities and Equity $ 284,188 $ 231,338
============ ============
Annapolis Bancorp, Inc. and Subsidiaries
Consolidated Statements of Income
for the Three and Twelve Month Periods Ended December 31, 2004 and
2003
(Unaudited)
(In thousands, except per share data)
For the Three Months For the Twelve Months
Ended December 31, Ended December 31,
----------------------- -----------------------
2004 2003 2004 2003
----------- ----------- ----------- -----------
Interest Income
Loans $ 3,178 $ 2,541 $ 11,596 $ 10,051
Investments 416 386 1,507 1,235
Federal funds sold 91 20 157 191
----------- ----------- ----------- -----------
Total int inc 3,685 2,947 13,260 11,477
Interest expense
Deposits 770 611 2,629 2,557
Sec sold under
agree to repurch 50 41 159 188
Borrowed funds 196 115 617 456
Junior debentures 66 54 236 167
----------- ----------- ----------- -----------
Total int exp 1,082 821 3,641 3,368
Net int inc 2,603 2,126 9,619 8,109
Provision 106 25 294 50
----------- ----------- ----------- -----------
Net int inc after
prov 2,497 2,101 9,325 8,059
NonInterest Income
Service charges 332 349 1,309 1,195
Mortgage banking 66 75 239 448
Other fee income 115 107 477 441
----------- ----------- ----------- -----------
Total nonint inc 513 531 2,025 2,084
NonInterest Expense
Personnel 1,089 1,032 4,586 4,217
Occ and equip 249 238 962 984
Data processing exp 205 211 874 836
Other operating exp 295 343 1,524 1,496
----------- ----------- ----------- -----------
Total Nonint Exp 1,838 1,824 7,946 7,533
Income before taxes 1,172 808 3,404 2,610
Income tax expense 417 298 1,231 936
----------- ----------- ----------- -----------
Net income $ 755 $ 510 $ 2,173 $ 1,674
=========== =========== =========== ===========
Basic EPS $ 0.19 $ 0.13 $ 0.54 $ 0.42
=========== =========== =========== ===========
Diluted EPS $ 0.18 $ 0.12 $ 0.52 $ 0.41
=========== =========== =========== ===========
Book value per share $ 4.61 $ 4.09 $ 4.61 $ 4.09
=========== =========== =========== ===========
Avg fully diluted
shares 4,153,137 4,108,114 4,139,734 4,096,183
=========== =========== =========== ===========
Per share data adjusted to effect a four-for-three stock split
in the form of a stock dividend paid December 3, 2004
Annapolis Bancorp, Inc. and Subsidiaries
Financial Ratios and Average Balance Highlights
(In thousands)
For the Three Months For the Twelve Months
Ended December 31, Ended December 31,
----------------------- -----------------------
2004 2003 2004 2003
----------- ----------- ----------- -----------
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
Performance Ratios
(annualized)
Return on average
assets 1.06% 0.87% 0.84% 0.75%
Return on average
equity 16.32% 12.47% 12.48% 10.59%
Average equity to
average assets 6.50% 7.03% 6.73% 7.11%
Net interest margin 3.92% 3.97% 4.00% 3.95%
Efficiency ratio 58.99% 68.65% 68.24% 73.90%
Other Ratios
Allow for credit
losses to loans 0.90% 0.97% 0.90% 0.97%
Nonperforming to
gross loans 0.29% 0.02% 0.29% 0.02%
Net charge-offs to
avg loans 0.05% 0.00% 0.05% 0.00%
Tier 1 capital
ratio 11.1% 12.2% 11.1% 12.2%
Total capital ratio 12.0% 13.1% 12.0% 13.1%
Average Balances
Assets 283,185 230,584 258,771 222,324
Earning assets 264,505 212,587 240,471 205,284
Loans, gross 201,628 160,996 189,130 155,067
Interest Bearing
Liabiities 222,657 181,418 201,723 175,012
Stockholders'
Equity 18,418 16,218 17,406 15,800
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