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Allegiance Bank of North America Reports Record Operating Results
for Quarter Ended March 31, 2005
BALA CYNWYD, Pa., May 2 /PRNewswire-FirstCall/ -- Allegiance Bank of North
America (OTC:ABPA) (BULLETIN BOARD: ABPA) , reported today its eleventh
consecutive profitable quarter of operations with record operating results for
the quarter ended March 31, 2005.
Significant events during 2005 include the following:
* The Bank recorded its eleventh consecutive quarter of profitable
operations.
* Further strengthening of our net interest margin. For the quarter ended
March 31, 2005, the Bank's net interest margin grew 65 bps from the
prior year period to 5.31% and 65 bps from the 4.66% reported in the
fourth quarter of 2004;
* Total assets increased to $100.8 million at March 31, 2005 from $71.4
million at March 31, 2004, representing a 41.2% increase over the prior
year period;
* Successfully completed a common stock offering underwritten by Ryan Beck
& Co. raising approximately $12.7 million of additional capital to
support the continued growth of the Bank. The Bank's shares were listed
for quotation on the OTC Bulletin Board on January 13, 2005;
* Opened the Bank's second branch, located in the Old City section of
Philadelphia. The branch successfully opened for business on April 21,
2005;
Net income for the first quarter 2005 was $231 thousand or $0.05 per share
compared to $130 thousand or $0.06 for the first quarter of 2004. The decline
in earnings per share was due to a doubling of outstanding shares as a result
of our common stock offering completed in January. The increase in net income
is primarily the result of a $341 thousand or 40.3% increase in net interest
income to $1.2 million in the first quarter of 2005 from $846 thousand for the
same period in 2004 and an $89 thousand or 387.0% increase in non-interest
income to $112 thousand in the first quarter of 2005 from $23 thousand for the
same period of 2004. The increases were partially offset by a $69 thousand or
116.9% increase in the provision for loan losses to $128 thousand in the first
quarter of 2005 from $59 thousand in the first quarter of 2004 and a $260
thousand or 38.2% increase in non-interest expenses to $940 thousand in the
first quarter of 2005 from $680 thousand in the first quarter of 2004. The
increase in net interest income was primarily due to $438 thousand increase in
interest income to $1.6 million in the first quarter of 2005 from $1.2 million
in the first quarter of 2004. Substantially all of the increase in interest
income was due to an increase in interest on loans receivable which increased
$414 thousand. The increase in loan interest income was driven by a 21.4%
increase in the Bank's loan portfolio to $82.7 million at March 31, 2005 from
$68.1 million at March 31, 2004. The increase in the loan loss provision was
related to the increase in the loan portfolio.
Net interest income for the first quarter of 2005 increased by 40.3% to $1.2
million from $846 thousand for the first quarter of 2004 reflecting continued
growth in assets, primarily loans. The Company's net interest margin
improved to 5.31% for the first quarter 2005 compared to 4.66% for the same
period in 2004 and 4.66% for the fourth quarter of 2004. To further support
continued growth of our franchise, the Bank opened its second branch in April
2005 which should stimulate further deposit growth and improve our deposit mix
by emphasizing lower cost core deposit generation.
Non-interest income grew by 387.0% in the first quarter of 2005 to $112
thousand compared to $23 thousand for the same period in 2004. Non-interest
income represented 8.6% of total revenue for the quarter ended March 31, 2005
compared to 2.6% for the same period in 2004. The increase in non-interest
income was primarily due to mortgage banking activities, which generated $84
thousand of income in the first quarter of 2005 compared to $0 for the same
period in 2004.
Assets increased 41.2% to $100.8 million from $71.4 million at March 31, 2004
fueled by a $17.0 million or 28.5% increase in deposits from $59.4 million in
March 31, 2004 to $76.4 million at March 31, 2005 and the $12.7 million
proceeds from the stock offering. Total loans increased 21.4% or $14.6 million
to $82.7 million at March 31, 2005 from $68.1 million one year earlier.
Investment securities totaled $12.5 million at March 31, 2005, an increase of
$10.6 million over the year earlier period due in large part to the purchase of
short-term investment with the offering proceeds during the quarter.
At quarter-end, the Bank's allowance for loan losses equaled $1.1 million or
1.28% of total loans and 641% of non-performing loans. Non-performing loans
totaled $165 thousand or 0.20% of total loans and 0.16% of total assets at
March 31, 2005. Non-performing loans totaled $165 thousand at December 31,
2004.
Stockholders' equity increased by $12.9 million to $22.1 million at March 31,
2005 from $9.2 million at December 31, 2004. At quarter end, stockholders'
equity equaled 21.9% of total assets compared to 10.5% at December 31, 2004.
In mid-January the Bank issued 2,100,000 shares of its common stock in an
underwritten public offering and shortly thereafter issued an additional
315,000 shares related to the underwriter's exercise of its over-allotment
option for total net proceeds of $12.7 million. The Bank's regulatory capital
ratios are all significantly above the "well-capitalized" threshold.
Allegiance Bank of North America President and Chief Executive Officer C.
Andrew Cook commented, "We are pleased to report our eleventh consecutive
quarter of profitability. We are particularly pleased with the significant
increase in our net income and continued improvement in our net interest
margin, which increased to 5.31% for the first quarter. With the opening of
our second branch, located in the Old City section of Philadelphia, we expect
to increase core deposits and generate new loans to support the Bank's
continued growth."
Allegiance Bank of North America is a Pennsylvania state-chartered full-
service commercial bank formed in 1999, headquartered in Bala Cynwyd,
Pennsylvania. The Bank offers a sophisticated package of services beyond
traditional bank services, such as escrow account management, specialty real
estate lending programs, internet banking and non-bank services including title
insurance, real estate settlement services, financial planning, life and health
insurance and retirement programs through its three subsidiaries, Allegiance
Financial Services, Inc., AllSearch Abstract, LLC, and Paramount Mortgage and
Capital, LLC. The common stock of the Company is traded on OTC Bulletin Board
under the symbol ABPA.
Statements contained in this news release, which are not historical facts, are
forward looking statements, as that term is defined in the Private Securities
Litigation Reform Act of 1995. Amounts herein could vary as a result of market
and other factors. Such forward-looking statements are subject to risks and
uncertainties which could cause actual results to differ materially from those
currently anticipated due to a number of factors. Such forward-looking
statements may be identified by the use of such words as "believe," "expect,"
"anticipate," "should," "planned", "estimated," and "potential". Examples of
forward-looking statements include, but are not limited to, estimates with
respect to the financial condition, expected or anticipated revenue, results of
operations and business of the Company that are subject to various factors
which could cause actual results to differ materially from these estimates.
These factors include, but are not limited to, general economic conditions,
changes in interest rates, deposit flows, loan demand, real estate values, and
competition; changes in accounting principals, policies, or guidelines; changes
in legislation or regulation; and other economic, competitive, governmental,
regulatory, and technological factors affecting the Company's operations,
pricing, products and services.
DATASOURCE: Allegiance Bank of North America
CONTACT: C. Andrew Cook, President and Chief Executive Officer,
Allegiance Bank of North America, +1-610-949-0760