Annapolis Bancorp, Inc. (NASDAQ: ANNB), parent company of BankAnnapolis, today announced net income of $921,000 for the second quarter of 2012, an increase of $595,000 or 182.5% compared to net income of $326,000 in the second quarter of 2011.
Second quarter net income available to common shareholders after accruing for preferred stock dividends was $860,000 ($0.22 per basic and $0.21 per diluted common share), an increase of $657,000 or 323.6% compared to net income available to common shareholders of $203,000 ($0.05 per basic and diluted common share) in the second quarter of 2011.
Return on average assets and return on average common equity for the quarter improved to 0.84% and 11.30%, respectively, compared to 0.30% and 2.96% in the same period of 2011.
Net income for the first six months of 2012 grew to $1,745,000, an increase of $910,000 or 109.0 % from $835,000 in the first half of 2011. Year-to-date net income available to common shareholders totaled $1,576,000 ($0.40 per basic and $0.39 per diluted common share) compared to $590,000 ($0.15 per basic and $0.14 per diluted common share) in the same six month period of 2011.
Book value per common share at June 30, 2012 was $7.76 compared to $7.38 at December 31, 2011. The Company’s common stock has risen by 77% year-to-date, and closed Thursday, July 12, 2012 at a market price of $6.90.
Total assets of $437.5 million at June 30, 2012 decreased 0.9% or $4.1 million from $441.6 million at December 31, 2011. Gross loans totaled $297.4 million compared to $290.5 million at year-end 2011.
As of June 30, 2012, the Company’s allowance for credit losses was $6.9 million or 2.32% of total loans. Quarter-end nonperforming assets amounted to 1.97% of total assets.
Deposits of $343.2 million at June 30, 2012 decreased by $7.2 million or 2.1% from $350.4 million reported at year-end 2011.
Common stockholders’ equity increased to $30.8 million at June 30, 2012 from $29.2 million at December 31, 2011. Preferred stock was reduced to $4.1 million at June 30, 2012 from $8.1 million at year-end 2011 as one-half of the Company’s $8.2 million TARP obligation to the U.S. Treasury was repaid on April 18, 2012.
At June 30, 2012, Annapolis Bancorp, Inc. exceeded all federal regulatory requirements for a well-capitalized institution, with a Tier 1 capital ratio of 11.8%, a total capital ratio of 13.1%, and a Tier 1 leverage ratio of 8.8%.
In the quarter just ended, net interest income increased by $22,000 to $4,056,000 from $4,034,000 in the second quarter of 2011. The continued low interest rate environment resulted in a decrease in the net interest margin to 3.88% in the second quarter of 2012 from 3.90% in the same period of 2011.
The Company lowered its provision for credit losses to $110,000 in the second quarter of 2012 from $679,000 in the second quarter of 2011.
Noninterest income totaled $466,000 for the three months ended June 30, 2012, an increase of $110,000 or 30.9% compared to $356,000 in the second quarter of 2011.
Noninterest expense improved by $278,000 or 8.6% to $2,938,000 in the quarter just ended compared to $3,216,000 in the second quarter of 2011. The Company’s efficiency ratio improved to 64.97% in the second quarter of the year compared to 73.26% in the linked quarter of 2011.
Year-to-date net interest income totaled $8,090,000 resulting in a net interest margin of 3.86% for the first six months of 2012. A $277,000 provision for credit losses was recorded in the first half of 2012 compared to $1,236,000 in the same period of 2011. Noninterest income increased by $179,000 compared to the first six months of 2011 and noninterest expense was reduced by $327,000. The year-to-date efficiency ratio improved to 65.96% from 71.65% in the same period of 2011.
BankAnnapolis serves the banking needs of small businesses, professional concerns, and individuals through seven community banking offices located in Anne Arundel and Queen Anne’s Counties in Maryland. In April, the Bank broke ground on a new branch to be located in the Waugh Chapel Towne Centre adjacent to Wegmans in Gambrills, Maryland. It is scheduled to open in October.
BankAnnapolis was named 2011 Corporate Philanthropist of the Year by the Community Foundation of Anne Arundel County based on its direct support of local nonprofits, the impact of that support, success in motivating employees to make charitable contributions, and the CEO’s philanthropic leadership and ability to encourage and motivate others to give back. BankAnnapolis also received the 2011 Financial Services Award from the Annapolis and Anne Arundel County Chamber of Commerce for its innovation and leadership in the identification of financial products and services that best fit the needs of the community.
This press release may contain forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are based on management’s current expectations and involve certain risks and uncertainties which could cause actual results to differ materially from those expressed in forward-looking statements. Factors that might cause such a difference include, but are not limited to: (i) the rate of declining growth in the economy and employment levels, as well as general business and economic conditions; (ii) changes in interest rates, as well as the magnitude of such changes; (iii) the fiscal and monetary policies of the federal government and its agencies; (iv) changes in federal bank regulatory and supervisory policies, including required levels of capital; (v) the relative strength or weakness of the consumer and commercial credit sectors and of the real estate market; (vi) the performance of the stock and bond markets; (vii) competition in the financial services industry; (viii) possible legislative, tax or regulatory changes, and; (ix) such other risks and uncertainties as set forth in the Company’s filings with the Securities and Exchange Commission. Other than to the extent required by applicable law, including the requirements of applicable securities laws, the Company does not undertake, and specifically disclaims any obligation to update any forward-looking statements to reflect occurrences or unanticipated events or circumstances after the date of such statements.
The Company is not responsible for changes made to this press release by wire services, Internet service providers or other media.
| Annapolis Bancorp, Inc. and Subsidiaries | ||||||||
| Consolidated Balance Sheets | ||||||||
| as of June 30, 2012 and December 31, 2011 | ||||||||
| ($000) | ||||||||
| (Unaudited) | (Audited) | |||||||
| June 30, | December 31, | |||||||
| 2012 | 2011 | |||||||
Assets | ||||||||
| Cash and due from banks | $ | 2,852 | $ | 2,026 | ||||
| Interest bearing balances with banks | 28,884 | 18,288 | ||||||
| Federal funds sold | 8 | 26,583 | ||||||
| Investment securities, available for sale | 90,965 | 87,549 | ||||||
| Federal Reserve and Federal Home | ||||||||
| Loan Bank stock | 2,865 | 2,992 | ||||||
| Loans, net of allowance of $6,908 and $7,182 | 290,476 | 283,284 | ||||||
| Premises and equipment | 9,029 | 8,418 | ||||||
| Accrued interest receivable | 1,320 | 1,279 | ||||||
| Deferred income taxes | 2,569 | 2,617 | ||||||
| Investment in bank owned life insurance | 5,734 | 5,624 | ||||||
| Real estate owned | 1,169 | 1,222 | ||||||
| Prepaid FDIC Insurance | 1,035 | 1,198 | ||||||
| Other assets | 572 | 490 | ||||||
| Total Assets | $ | 437,478 | $ | 441,570 | ||||
| Liabilities and | ||||||||
| Stockholders' Equity | ||||||||
| Deposits | ||||||||
| Noninterest bearing | $ | 56,414 | $ | 56,664 | ||||
| Interest bearing | 286,801 | 293,717 | ||||||
| Total deposits | 343,215 | 350,381 | ||||||
Securities sold under agreement | ||||||||
| to repurchase | 16,458 | 11,344 | ||||||
| Long term borrowed funds | 35,000 | 35,000 | ||||||
| Junior subordinated debentures | 5,000 | 5,000 | ||||||
| Accrued interest and dividends payable | 187 | 219 | ||||||
| Accrued expense and other liabilities | 2,704 | 2,258 | ||||||
| Total Liabilities | 402,564 | 404,202 | ||||||
| Stockholders' Equity | ||||||||
| Preferred stock | 4,076 | 8,146 | ||||||
| Common stock | 40 | 39 | ||||||
| Warrants to purchase common stock | 234 | 234 | ||||||
| Paid in capital | 11,822 | 11,779 | ||||||
| Retained earnings | 17,755 | 16,179 | ||||||
| Accumulated other comprehensive income | 987 | 991 | ||||||
| Total Equity | 34,914 | 37,368 | ||||||
| Total Liabilities and | ||||||||
| Equity | $ | 437,478 | $ | 441,570 | ||||
Annapolis Bancorp, Inc. and Subsidiaries | ||||||||||||||||
| Consolidated Statements of Income | ||||||||||||||||
| for the Three and Six Month Periods Ended June 30, 2012 and 2011 | ||||||||||||||||
| (Unaudited) | ||||||||||||||||
| (In thousands, except per share data) | ||||||||||||||||
| For the Three Months | For the Six Months | |||||||||||||||
| Ended June 30, | Ended June 30, | |||||||||||||||
| 2012 | 2011 | 2012 | 2011 | |||||||||||||
| Interest Income | ||||||||||||||||
| Loans | $ | 4,247 | $ | 4,268 | $ | 8,479 | $ | 8,459 | ||||||||
| Investments | 531 | 696 | 1,088 | 1,404 | ||||||||||||
| Interest bearing balances with banks | 8 | 5 | 15 | 9 | ||||||||||||
| Federal funds sold | 10 | 8 | 22 | 15 | ||||||||||||
| Total interest income | 4,796 | 4,977 | 9,604 | 9,887 | ||||||||||||
| Interest expense | ||||||||||||||||
| Deposits | 401 | 594 | 836 | 1,188 | ||||||||||||
| Securities sold under | ||||||||||||||||
| agreements to repurchase | 12 | 24 | 23 | 41 | ||||||||||||
| Interest on long-term borrowings | 327 | 325 | 655 | 646 | ||||||||||||
| Total interest expense | 740 | 943 | 1,514 | 1,875 | ||||||||||||
| Net interest income | 4,056 | 4,034 | 8,090 | 8,012 | ||||||||||||
| Provision | 110 | 679 | 277 | 1,236 | ||||||||||||
| Net interest income after provision | 3,946 | 3,355 | 7,813 | 6,776 | ||||||||||||
| NonInterest Income | ||||||||||||||||
| Service charges | 310 | 316 | 594 | 616 | ||||||||||||
| Mortgage banking | 50 | 15 | 96 | 17 | ||||||||||||
| Other fee income | 96 | (31 | ) | 183 | (2 | ) | ||||||||||
| Gain on sale of loans | - | 79 | - | 147 | ||||||||||||
| Gain (loss) on sale of REO and other assets | 10 | (22 | ) | 30 | (22 | ) | ||||||||||
| Loss on sale or disposal of fixed assets | - | (1 | ) | - | (32 | ) | ||||||||||
| Total noninterest income | 466 | 356 | 903 | 724 | ||||||||||||
| NonInterest Expense | ||||||||||||||||
| Personnel expense | 1,618 | 1,714 | 3,307 | 3,475 | ||||||||||||
| Occupancy and equipment expense | 369 | 424 | 747 | 845 | ||||||||||||
| Data processing expense | 208 | 213 | 420 | 421 | ||||||||||||
| Professional fees | 137 | 146 | 268 | 225 | ||||||||||||
| Marketing expense | 99 | 123 | 217 | 232 | ||||||||||||
| FDIC expense | 86 | 135 | 168 | 281 | ||||||||||||
| Other operating expense | 421 | 461 | 805 | 780 | ||||||||||||
| Total noninterest expense | 2,938 | 3,216 | 5,932 | 6,259 | ||||||||||||
| Income before taxes | 1,474 | 495 | 2,784 | 1,241 | ||||||||||||
| Income tax expense | 553 | 169 | 1,039 | 406 | ||||||||||||
| Net income | 921 | 326 | 1,745 | 835 | ||||||||||||
| Preferred stock dividend and discount accretion | 61 | 123 | 169 | 245 | ||||||||||||
| Net income available to common shareholders | $ | 860 | $ | 203 | $ | 1,576 | $ | 590 | ||||||||
| Basic earnings per common share | $ | 0.22 | $ | 0.05 | $ | 0.40 | $ | 0.15 | ||||||||
| Diluted earnings per common share | $ | 0.21 | $ | 0.05 | $ | 0.39 | $ | 0.14 | ||||||||
| Book value per common share | $ | 7.76 | $ | 7.00 | $ | 7.76 | $ | 7.00 | ||||||||
| Annapolis Bancorp, Inc. and Subsidiaries | ||||||||||||||
| Financial Ratios and Average Balance Highlights | ||||||||||||||
| (In thousands) | ||||||||||||||
| For the Three Months | For the Sixth Months | |||||||||||||
| Ended June 30, | Ended June 30, | |||||||||||||
| 2012 | 2011 | 2012 | 2011 | |||||||||||
| (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | |||||||||||
| Performance Ratios (annualized) | ||||||||||||||
| Return on average assets | 0.84 | % | 0.30 | % | 0.79 | % | 0.39 | % | ||||||
| Return on average common equity | 11.30 | % | 2.96 | % | 10.52 | % | 4.37 | % | ||||||
| Average equity to average assets | 8.00 | % | 8.15 | % | 8.29 | % | 8.16 | % | ||||||
| Net interest margin | 3.88 | % | 3.90 | % | 3.86 | % | 3.95 | % | ||||||
| Efficiency ratio | 64.97 | % | 73.26 | % | 65.96 | % | 71.65 | % | ||||||
| Other Ratios | ||||||||||||||
| Allowance for credit losses to loans | 2.32 | % | 2.51 | % | 2.32 | % | 2.51 | % | ||||||
| Nonperforming assets to total assets | 1.97 | % | 1.68 | % | 1.97 | % | 1.68 | % | ||||||
| Net (recoveries) charge-offs to average loans | (0.01 | %) | 0.10 | % | 0.18 | % | 0.29 | % | ||||||
| Tier 1 capital ratio | 11.8 | % | 12.8 | % | 11.8 | % | 12.8 | % | ||||||
| Total capital ratio | 13.1 | % | 14.0 | % | 13.1 | % | 14.0 | % | ||||||
| Average Balances | ||||||||||||||
| Assets | 442,856 | 437,833 | 441,887 | 432,592 | ||||||||||
| Earning assets | 420,961 | 414,559 | 420,344 | 409,144 | ||||||||||
| Loans, gross | 299,888 | 288,110 | 298,192 | 285,091 | ||||||||||
| Interest-bearing liabilities | 347,909 | 351,649 | 346,207 | 348,581 | ||||||||||
| Stockholders' equity | 35,433 | 35,689 | 36,622 | 35,291 | ||||||||||
Contacts:
Edward J. Schneider, 410-224-4455
