Albemarle First Bank Announces First Quarter 2003 Performance.Business Editors CHARLOTTESVILLE, Va.--(BUSINESS WIRE)--April 23, 2003 Albemarle First Bank, Charlottesville, Virginia Charlottesville is an independent city located within the confines of Albemarle County in the Commonwealth of Virginia, United States, and named after Princess Sophia Charlotte of Mecklenburg-Strelitz, the wife of King George III of the United Kingdom. (Nasdaq:AFBK)(Nasdaq:AFBKW) reports a net loss of $1,590,623, or $1.27 loss per share, after an extraordinary expense net of taxes of $825,788 related to a check kiting loss experienced during the first quarter of 2003. Net income before the extraordinary loss is $12,377, or $.01 per share, as of March 31, 2003, as compared to the first quarter 2002 net income of $11,387, or $.01 per share. Thomas M. Boyd, Jr., President 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. stated, "In the first quarter of 2003, we experienced an unfortunate $2.4 million loss resulting from a check kiting scheme. However, our legal counsel is aggressively seeking restitution In the context of Criminal Law, state programs under which an offender is required, as a condition of his or her sentence, to repay money or donate services to the victim or society; with respect to maritime law, the restoration of articles lost by jettison, done when the from various sources. At this point, we do not know what the final outcome will be. We are pleased that, excluding the check kite loss, we would have made a profit for the third consecutive quarter. We anticipate this core trend to continue." Boyd continued, "We are continuing to work on improving asset quality and have made a $75,000 provision to the allowance for loan losses during the first quarter of 2002. We currently have a ratio of the allowance for loan losses to total loans of 1.54%. We anticipate moving approximately $2 million dollars of loans out of non-accrual status by the end of the third quarter through liquidation The collection of assets belonging to a debtor to be applied to the discharge of his or her outstanding debts. A type of proceeding pursuant to federal Bankruptcy . We are moving in the right direction." In an effort to restore the Bank's capital position after the check kiting loss, the Board of Directors voted to temporarily amend the stock warrant exercise price from $10.50 to $7.00 until May 2, 2003. Boyd adds, "We are seeing a lot of interest from investors in this price reduction. Given our net book value is currently $6.69; the decrease in the exercise price has a non-dilutive effect to existing shareholders. Based on information we are gathering, we feel confident we will restore our position. The market is demonstrating its confidence in Albemarle First Bank." The warrants are traded under the symbol AFBKW. For more information, regarding this discounted exercise offering, please contact either your stock broker or Christy chris·ty n. Variant of christie. Richardson, Director of Marketing, at 1-434-973-1664. Total assets as of the end of the quarter decreased to $96.6 million as of March 31, 2003 from $101.1 million as of year-end. The decrease is partly attributable to seasonal swings and also from the check kiting loss. "We have purposely pur·pose·ly adv. With specific purpose. purposely Adverb on purpose USAGE: See at purposeful. Adv. 1. avoided growing during the first quarter until we restore our capital levels," Boyd commented. "After this takes place, we will continue with our strategic plan to grow market share." Albemarle First Bank offers a full range of banking and financial services The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. to individuals, professionals, and small and medium-sized businesses in Charlottesville, Albemarle County, Greene County Greene County is the name of fourteen counties in the United States of America, each named in honor of American Revolutionary War general Nathanael Greene:
This press release contains "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. " that concern future events that are subject to risks and uncertainties. Any such statements are based on certain assumptions and analyses by the Bank and other factors it believes are appropriate in the circumstances. The Bank's actual results and developments may differ materially from those contemplated by any forward-looking statement. Factors that could have a material adverse effect on the operations and future prospects of the Bank include, but are not limited to, changes in: interest rates, general economic conditions, legislative/ regulatory changes, monetary and fiscal polices of the U.S. Government, including policies of the U.S. Treasury U.S. Treasury Created in 1798, the United States Department of the Treasury is the government (Cabinet) department responsible for issuing all Treasury bonds, notes and bills. Some of the government branches operating under the U.S. Treasury umbrella include the IRS, U.S. and the Board of Governors of the Federal Reserve System Board of Governors of the Federal Reserve System The managing body of the Federal Reserve System, which sets policies on bank practices and the money supply. , the quality or composition of the loan or investment portfolios, demand for loan products, deposit flows, competition, demand for financial services in the Bank's market area and accounting principles, policies, and guidelines. Consequently, all forward-looking statements made in this press release are qualified by the cautionary language contained in the Bank's quarterly and annual reports filed pursuant to the Securities Exchange Act of 1934. |
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