Allegiance Bank of North America Reports Record Operating Results for Quarter Ended March 31, 2005
May 02 2005 - 9:50AM
PR Newswire (US)
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
Copyright