SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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FORM 10-QSB
|X| QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the quarter year ended March 31, 1996
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| | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the transition period from __________ to ___________
Commission file number 0-10971
_____________________________
ABIGAIL ADAMS NATIONAL BANCORP, INC.
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(Exact name of registrant as specified in its charter)
Delaware 52-1508198
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(State or other jurisdiction of (I.R.S. Employer ID No.)
Incorporation or organization)
1627 K Street, N.W. Washington, D.C. 20006
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(Address of principal executive officers) (Zip code)
N / A
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Former name, address, and fiscal year, if changes since last report
Indicate by check whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or for such shorter period that the registrant was
required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days. Yes __X____ No____ .
Indicate the number of shares outstanding of each of the issuer's classes
of common stock as of May 10, 1996.
284,844 shares of Common Stock, Par Value $10/share.
<PAGE>
PART I.
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Item 1 - Financial Statements
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The information furnished herewith reflects all adjustments which are, in
the opinion of management, necessary to a fair statement of the results for the
interim periods presented. All adjustments are of a normal and recurring nature.
Certain reclassifications have been made to amounts previously reported in 1995
to conform with the 1996 presentation.
1
<PAGE>
ABIGAIL ADAMS NATIONAL BANCORP, INC. AND SUBSIDIARY
Consolidated Balance Sheets
March 31, 1996 and 1995 and December 31, 1995
<TABLE>
<CAPTION>
March 31 March 31 December 31
1996 1995 1995
---- ---- ----
(unaudited) (unaudited)
<S> <C> <C> <C>
Assets
- -----------------------------------------------
Cash and due from banks $4,478,105 $4,073,412 $4,953,200
Short-term investments:
Federal funds sold 10,850,000 3,975,000 9,475,000
Interest bearing deposits in other banks 486,715 490,715 486,715
----------------------------------------------
Total short-term investments 11,336,715 4,465,715 9,961,715
Securities available for sale 4,997,870 5,520,812 5,508,406
Investments securities (market value of $7,626,518, $8,836,148 and $8,309,265
at March 31, 1996,March 31, 1995 and December 31, 1995, respectively) 7,563,546 8,911,113 8,192,647
Loans 60,214,781 58,920,594 63,592,395
Less: Allowance for loan losses (1,261,672) (1,290,313) (1,273,965)
----------------------------------------------
58,953,109 57,630,281 62,318,430
Bank premises and equipment 287,175 342,757 277,517
Other assets 1,272,692 1,286,258 1,152,761
----------------------------------------------
Total assets $88,889,212 $82,230,348 $92,364,676
==============================================
Liabilities
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Demand deposits $20,571,738 $16,798,411 $23,443,937
NOW accounts 6,877,672 9,429,915 7,343,282
Money market deposit accounts 22,159,158 18,703,312 21,391,814
Savings deposits 1,296,342 1,125,675 1,317,226
CD's $100,000 and over 11,673,224 14,413,240 13,590,946
CD's under $100,000 16,233,468 14,445,064 15,975,990
----------------------------------------------
Total deposits 78,811,602 74,915,617 83,063,195
Securities sold under agreements to repurchase 2,233,030 547,905 1,785,402
Long-term debt -- capital note 167,625 260,750 186,250
Other liabilities 887,670 542,777 710,963
----------------------------------------------
Total liabilities 82,099,927 76,267,049 85,745,810
Stockholders' Equity
- -----------------------------------------------
Common stock, par value, $10 per share, authorized 800,000 shares;
issued 286,404; outstanding 284,844 2,864,040 2,864,040 2,864,040
Surplus 3,291,973 3,291,973 3,291,973
Retained earnings (deficit) 698,652 (100,424) 531,830
----------------------------------------------
6,854,665 6,055,589 6,687,843
Less: Treasury Stock, 1,560 shares at cost (28,710) (28,710) (28,710)
Unrealized loss on securities, net of taxes (36,670) (63,580) (40,267)
----------------------------------------------
Total stockholders' equity 6,789,285 5,963,299 6,618,866
----------------------------------------------
Total liabilities and stockholders' equity $88,889,212 $82,230,348 $92,364,676
==============================================
</TABLE>
2
<PAGE>
ABIGAIL ADAMS NATIONAL BANCORP, INC. AND SUBSIDIARY
Consolidated Statements of Operations
For the Three Months Ended March 31, 1996 and 1995
(Unaudited)
<TABLE>
<CAPTION>
1996 1995
---- ----
<S> <C> <C>
Interest income:
- -----------------------------------------------
Interest and fees on loans $1,508,727 $1,418,178
Interest and dividends on investment securities:
U.S. Treasury 7,489 18,004
Obligations of U.S. government agencies 85,593 98,325
Mortgage-backed securities 8,128 12,491
Other 7,036 11,496
------------------------------
Total interest and dividends on investment securities 108,246 140,316
Interest on securities available for sale:
U.S. Treasury 26,562 45,956
Obligations of U.S. government agencies 47,311 41,289
------------------------------
Total interest on securities available for sale 73,873 87,245
Interest on federal funds sold 109,238 18,904
Interest on deposit with other banks 6,866 5,837
------------------------------
Total interest income 1,806,950 1,670,480
Interest expense
- -----------------------------------------------
Interest on deposits:
NOW 46,064 70,655
Money market deposit accounts 217,388 205,839
Savings deposits 8,686 7,719
CD's $100,000 and over 171,469 178,362
CD's under $100,000 238,675 158,990
------------------------------
682,282 621,565
Interest on Federal funds purchased and securities
sold under agreements to repurchase 28,447 26,147
Interest on other borrowings 0 5,113
Interest on capital note 2,794 3,911
------------------------------
Total interest expense 713,523 656,736
------------------------------
Net interest income 1,093,427 1,013,744
Provision for loan losses 0 0
------------------------------
Net interest income after provision for loan losses 1,093,427 1,013,744
</TABLE>
3
<PAGE>
ABIGAIL ADAMS NATIONAL BANCORP, INC. AND SUBSIDIARY
Consolidated Statements of Operations
For the Three Months Ended March 31, 1996 and 1995
(Unaudited)
<TABLE>
<CAPTION>
1996 1995
---- ----
<S> <C> <C>
Other income:
- -----------------------------------------------
Service charges on deposit accounts 172,269 179,753
Other fees and commissions 12,150 11,878
------------------------------
Total other income 184,419 191,631
Other expense:
- -----------------------------------------------
Salaries and employee benefits 431,691 414,145
Net occupancy expense 171,724 185,494
Professional fees 42,617 92,419
Data processing fees 86,879 64,632
Other operating expense 168,423 194,586
------------------------------
Total other expense 901,334 951,276
------------------------------
Income before taxes 376,512 254,099
Income tax expense 138,479 69,877
------------------------------
Net income $238,033 $184,222
==============================
Earnings per share:
- -----------------------------------------------
Net income per share $0.83 $0.65
==============================
Average shares outstanding used to EPS 286,980 284,844
==============================
</TABLE>
4
<PAGE>
ABIGAIL ADAMS NATIONAL BANCORP, INC. AND SUBSIDIARY
Consolidated Statements of Changes in Stockholders' Equity
For the Three Months Ended March 31, 1996 and 1995
(Unaudited)
<TABLE>
<CAPTION>
Additional Retained
Common Paid-in Earnings Treasury Unrealized Loss
Stock Capital (Deficit) Stock on Securities Total
----- ------- --------- ----- ------------- -----
<S> <C> <C> <C> <C> <C> <C>
Balance, January 1, 1995 $2,864,040 $3,291,973 ($284,646) ($28,710) ($80,387) $5,762,270
Net income 184,222 184,222
Unrealized gain on securities,
net of taxes 16,807 16,807
----------------------------------------------------------------------------------------
Balance, March 31, 1995 $2,864,040 $3,291,973 ($100,424) ($28,710) ($63,580) $5,963,299
========================================================================================
Balance, January 1, 1996 $2,864,040 $3,291,973 $531,830 ($28,710) ($40,267) $6,618,866
Net income 238,033 238,033
Dividend declared (71,211) (71,211)
Unrealized gain on securities,
net of taxes 3,597 3,597
----------------------------------------------------------------------------------------
Balance, March 31, 1996 $2,864,040 $3,291,973 $698,652 ($28,710) ($36,670) $6,789,285
========================================================================================
</TABLE>
5
<PAGE>
ABIGAIL ADAMS NATIONAL BANCORP, INC. AND SUBSIDIARY
Consolidated Statement of Cash Flows
For the Three Months Ended March 31, 1996 and 1995
(Unaudited)
<TABLE>
<CAPTION>
1996 1995
---- ----
<S> <C> <C>
Operating Activities
- -----------------------------------------------
Net income $238,033 $184,222
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization on bank premises & equipment 28,237 40,617
Accretion of loan discounts (9,083) (5,774)
Amortization and accretion of discounts and premiums on investment securities (1,553) 7,698
Decrease in other assets (119,930) (64,679)
Benefit for deferred income taxes (94,576) (44,734)
Decrease in other liabilities 268,750 (21,725)
----------------------------
Net cash provided by operating activities 309,878 95,625
Investing Activities
- -----------------------------------------------
Proceeds from repayment and maturity of investment securities 1,650,000 150,000
Proceeds from repayment of mortgage-backed securities 22,094 28,583
Proceeds from repayment and maturity of securities available for sale 2,000,000 2,088,400
Purchase of investment securities (1,024,775) --
Purchase of securities available for sale (1,500,000) (1,588,400)
Principal collected on loans 1,375,823 4,140,085
Loans originated (1,507,667) (2,729,731)
Net decrease (increase) in short-term loans (155,889) (24,031)
Net decrease in lines of credit 3,662,138 443,475
Purchase of bank premises and equipment (37,895) (14,156)
----------------------------
Net cash provided by investing activities 4,483,829 2,494,225
Financing Activities
- -----------------------------------------------
Net decrease in transaction and savings deposits (2,591,348) (3,077,684)
Proceeds from issuance of time deposits 3,463,596 13,860,339
Payments for maturing time deposits (5,123,841) (11,160,540)
Net increase in Federal funds purchased and repurchase agreements 447,627 187,197
Payments on long-term debt (18,625) --
Cash dividends paid to common stockholders (71,211) --
----------------------------
Net cash used by financing activities (3,893,802) (190,688)
----------------------------
Increase in cash & cash equivalents 899,905 2,399,162
Cash and cash equivalents at beginning of period 14,428,200 5,649,250
----------------------------
Cash and cash equivalents at end of period $15,328,105 $8,048,412
============================
Supplementary disclosures:
Interest paid on deposits and borrowings $731,883 $629,244
============================
Income taxes paid $95,500 $0
============================
</TABLE>
6
<PAGE>
PART I. FINANCIAL INFORMATION (Continued)
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Item 2. Management's Discussion and Analysis of Financial Condition and Results
of Operations
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Total assets of Abigail Adams National Bancorp, Inc. and subsidiary (the
"Company") were $88,889,000 at March 31, 1996 as compared to $92,365,000 at
December 31, 1995. Total assets at March 31, 1996 decreased by $3,476,000 from
December 31, 1995 predominantly due to decreases in loans of $3,377,000. Total
deposits decreased by $4,252,000 during the same period to $78,812,000 at March
31, 1996 due to normal flucutations in both personal and commercial accounts,
while Securities sold under agreements to repurchase increased by $448,000.
The loan portfolio at March 31, 1996 of $60,215,000 decreased by
$3,377,000, or approximately 5%, as compared to the December 31, 1995 balance of
$63,592,000 primarily due to fluctuations in the outstanding balance of
commercial loans issued under lines of credit. Loans outstanding on commercial
lines of credit were approximately 36% of the total committed line amount at
March 31, 1996 as compared to 52% at December 31, 1995. New loans, exclusive of
short-term loans and lines of credit, of $ 1,508,000 were originated in the
first quarter of 1996, however, loan principal payments of $1,376,000 offset the
majority of this increase. The loan to deposit ratio at March 31, 1996 was 76%
as compared to 77% at December 31, 1995. On average, the loan to deposit ratio
for the first quarter of 1996 was 78%.
Securities available for sale totaling $ 2,000,000 matured during the first
three months of 1996 as compared to purchases of $1,530,000 during the same
period. These securities transactions coupled with scheduled amortization and
accretion for the first quarter accounted for the $510,000 decrease in the
available for sale portfolio to $4,998,000 at March 31, 1996 as compared to
$5,508,000 at December 31, 1995. Maturities totaling $1,650,000 in the long-term
investment portfolio coupled with normal pay downs on mortgage-backed and other
amortizing securities offset by $994,000 in new purchases, account for the
$629,000 decrease in long-term investments to $7,564,000 at March 31, 1996 as
compared to $8,193,000 at December 31, 1995.
Short-term investments increased by $1,375,000 to $11,337,000 at March 31,
1996 due to decreases in the loan portfolio as well as normal fluctuations in
the Company's liquidity.
Cash and due from banks of $4,478,000 at March 31, 1996 decreased by
$475,000 from the December 31, 1995 balance of $4,953,000 due primarily to
variations in balances maintained at correspondent banks.
Total deposits of $78,812,000 at March 31, 1996 decreased by $4,251,000, or
5%, from the December 31, 1995 balance of $83,063,000. Demand deposits of
$20,572,000 at March 31, 1996 reflect a $2,872,000, or 12%, decrease from the
$23,444,000 balance at December 31, 1995 due principally to fluctuations in
large commercial accounts. Normal fluctuations in the deposits of
7
<PAGE>
personal accounts make up the majority of the $466,000 decrease in NOW accounts
to $6,878,000 at March 31, 1996 as compared to $7,343,000 at December 31, 1995.
Money market accounts of $22,159,000 at March 31, 1996 increased by $767,000
from the $21,392,000 balance reported at December 31, 1995 due primally to
normal fluctuations in the balances of both personal and commercial customers.
Certificates of deposit at March 31, 1996 of $27,907,000 decreased by $1,660,000
from the $29,567,000 balance at December 31, 1995, with certificates of deposit
$100,000 and over decreasing by $1,917,000 and certificates of deposit under
$100,000 increasing by $257,000. The decrease in certificates of deposit
$100,000 and over is primarily due to decreases in collateralized government
deposits.
Average noninterest-bearing demand deposits for the first quarter of 1996
of $21,546,000 increased by $4,955,000, or almost 30%, from the comparable 1995
period, while average interest- bearing deposits grew by $276,000 during the
same period to $56,227,000. Average NOW accounts for the first three months of
1996 of $7,652,000 decreased by $3,870,000 due in large part to the withdrawal
of deposits of one large national organization as part of the organization's
deposit consolidation program. Average money market deposits for the first
quarter of 1996 of $18,821,000 increased by $2,025,000 over the prior year's
average balance. Average certificates of deposit $100,000 and over decreased by
$1,926,000 to $12,108,000 for the first quarter of 1996 as compared to the prior
year due principally to the withdrawal of $5,000,000 in District of Columbia
deposits which were on account for the first three months of 1995. Increases in
governmental and financial institution deposits offset a portion of this
decline. Average certificates of deposit under $100,000 for the first quarter of
1996 of $16,332,000 increased by $3,887,000 over the comparable period of the
prior year primarily due to the issuance of brokered certificates of deposit in
late March and early April of 1995. Average noninterest-bearing deposits to
average total deposits during the first three months of 1996 represent 28% as
compared to 23% one year earlier.
Results of Operations
The Company reported net income for the first quarter of 1996 of $238,000,
or $0.83 per share, for an annualized return on average assets of 1.09%. This
net income reflects a 29% increase over the $184,000 net income (or $0.65 per
share) recorded for the first quarter of 1995. Increases in net interest income
and reductions in operating expenses, partially offset by increases in the
Company's effective tax rate, accounted for the growth in net income.
Net interest income, the most significant component of the Company's
earnings, increased by $80,000, or 8%, to $1,093,000 for the first three months
of 1996 as compared to $1,014,000 for the comparable 1995 period. Average
earning assets for the first quarter of 1996 of $82,163,000 increased by
$5,881,000, or 8%, over the comparable 1995 period. Increased net interest
income resulting from a 30% increase in demand deposit accounts for the first
quarter of 1996 as compared to 1995 more than offset the effects of a decline in
the average loan to deposit ratio of 78% for the first quarter of 1996 from 82%
for the comparable prior year period, as well as an increased cost of deposits.
These factors combined to produce a net interest spread of 3.95% and a net
interest margin of 5.35% for the first quarter of 1996, reflecting decreases of
36 basis points and 4 basis points, respectively, from the prior year.
8
<PAGE>
Total other income decreased by approximately $7,000, or 4%, to $184,000
for the first three months of 1996 due to modest decreases in overdraft activity
as well as decreases in ATM income.
Salaries and benefits of $432,000 for the first quarter of 1996 increased
by $18,000, or 4%, over the first quarter of 1995, due primarily to normal merit
increases. Net occupancy expense of $172,000 for the first three months of 1996
reflects a decrease of $14,000, or 7%, from one year earlier, due primarily to
decreases in rental operating costs and depreciation expense. Professional fees
of $43,000 for the first three months of 1996 declined by $49,000 from one year
earlier due primarily to lower legal fees associated with loan and other
corporate matters. Data processing expense of $87,000 for the first quarter of
1996 increased by $22,000, or 34%, over the prior year as a result of increased
activity levels and item charges as well as the introduction of new electronic
services. Other operating expense of $168,000 for the first three months of 1996
reflects a decrease of $26,000, or 13%, over the prior year due primarily to
decreased FDIC deposit insurance premiums.
Income tax expense of $138,000 for the first three months of 1996 reflects
an increase of $69,000 over the $70,000 tax expense recorded one year earlier
due to an increase in the Company's effective tax rate to 37% from 27% one year
earlier. During 1995, the Company reduced its deferred tax valuation allowance
to zero which reduced the effective tax rate.
Asset Quality
As a result of improvement in the quality of the loan portfolio over the
last few years as well as relatively low levels of net charge-offs, the Company
took no provision for loan losses in either 1996 or 1995. The Company continues
to recognize the risk characteristics of the loan portfolio, including specific
reserves for problem credits and general reserves for the overall loan
portfolio, and deems the allowance for loan losses of $1,262,000 at March 31,
1996 to be adequate. Although the dollar amount of the allowance for loan losses
of $1,262,000 at March 31, 1996 has declined slightly from the December 31, 1995
balance of $1,274,000, the portion of the allowance for loan losses which is not
allocated to any particular component of the loan portfolio increased by 26% to
$319,000 from the December 31, 1995 level of $253,000.
The allowance for loan losses as a percentage of outstanding loans at March
31, 1996 was 2.10%, up from the 2.00% reported at December 31, 1995. Nonaccrual
loans at March 31, 1996 of $1,463,000 are down by $98,000 from the $1,561,000
reported at December 31, 1995, while restructured loans and loans past due 90
days or more at March 31, 1996 of $1,241,000 and $4,000, respectively, remain
virtually unchanged from the $1,245,000 and $6,000, respectively, reported at
December 31, 1995. Nonaccrual loans at March 31, 1996 include $817,000 in loans
guaranteed by the U.S. Small Business Administration ("SBA") for a total of
$691,000. Banking regulations require that the full balance of these loans be
placed on nonaccrual status, despite the SBA guarantee on approximately 80% of
the total.
9
<PAGE>
Liquidity and Capital Resources
Liquidity
Principal sources of liquidity are cash and unpledged assets that can be
readily converted into cash, including investment securities maturing within one
year, the available for sale security portfolio and short-term loans. In
addition to $15,815,000 in cash and short-term investments at March 31, 1996,
the Company has a securities portfolio which can be pledged to raise additional
deposits and borrowings, if necessary. At March 31, 1996, the Company had
$1,486,000 in unpledged securities which were available for such use with an
additional $5,711,000 in securities which could be available for immediate use
at the Company's request without any change in the Company's deposit or
borrowing structure. As a percentage of total assets, the amount of these cash
equivalent assets at March 31, 1996 and December 31, 1995 was 26% and 21%,
respectively. The Bank's liquidity needs are mitigated by the sizeable base of
relatively stable funds which includes demand deposits, NOW and money market
accounts, savings deposits and nonbrokered certificates of deposit under
$100,000 (excluding financial institutions and custodial funds raised under
deposit acquisition programs) representing 77% and 76% of average total deposits
at March 31, 1996 and December 31, 1995, respectively. In addition, the Bank has
unsecured lines of credit from correspondent financial institutions which can
provide up to an additional $1,000,000 in liquidity as well as access to other
collateralized borrowing programs. Through its membership in the Federal Home
Loan Bank of Atlanta (the "FHLB"), which serves as a reserve or central bank for
member institutions within its region, the Bank is eligible to borrow up to
approximately $1,283,000 in funds from the FHLB collateralized by loans secured
by first liens on one to four family, multifamily and commercial mortgages as
well as investment securities. The Bank is eligible to increase the maximum
amount to be borrowed by $7,717,000 with the purchase of up to $1,696,000 in
additional stock in the FHLB. The Company has adequate resources to meet its
liquidity needs.
Interest Sensitivity
Through the Bank's Asset/Liability Investment Committee, sensitivity of net
interest income to fluctuations in interest rates is considered through analysis
of the interest sensitivity positions of major asset and liability categories.
As a result of inherent limitations in this type of analysis, the Company does
not necessarily attempt to maintain a matched position for each time frame. To
augment this analysis, the Company also prepares an analysis of the effect on
net interest income of 1%, 2% and 3% interest rate movements in either
direction. Based on the Company's interest sensitivity position and the analyses
performed on the effect of interest rate movements at March 31, 1996, a rising
interest rate environment will generally tend to increase net interest income
while a declining interest rate environment will generally tend to decrease net
interest income.
Stockholders' Equity
Stockholders' equity at March 31, 1996 increased by $170,000 over the
balance at December 31, 1995 to $6,789,000 as a result of the Company's $238,000
net income for the three months ended March 31, 1996 and a $4,000 decrease in
unrealized loss on securities, net of taxes, partially offset by dividends
declared in the first quarter of 1996 of $71,000. Average stockholders' equity
as a percentage of average total assets for the first three months of 1996 was
7.67% as compared to 7.23% for the comparable prior year period.
10
<PAGE>
Under the risk based capital guidelines issued by the Federal Reserve Board
and the Comptroller of the Currency, total capital consists of core capital
(Tier 1) and supplementary capital (Tier 2). For the Company and the Bank, Tier
1 capital consists stockholders' equity, excluding unrealized gains and losses
on securities, and Tier 2 capital consists of long-term debt and a portion of
the allowance for loan losses. Assets include items both on and off the balance
sheet, with each item being assigned a "risk- weight" for the determination of
the ratio of capital to risk-adjusted assets. These guidelines require a minimum
of 8% total capital to risk-adjusted assets, with at least 4% being in Tier 1
capital. At March 31, 1996, the Company's total risk-based capital ratio and
Tier 1 capital ratio of 11.46% and 10.16%, respectively, met the regulatory
definition of "well- capitalized." Under regulatory guidelines, an institution
is generally considered "well-capitalized" if it has a total risk-based capital
ratio of 10% or greater, a Tier 1 capital ratio of 6% or greater and a leverage
ratio of 5% or greater (discussed below). The March 31, 1996 ratios are based on
Tier 1 capital of $6,826,000, total capital of $7,695,000 and risk adjusted
assets of $67,177,000. At March 31, 1996, the Bank's total risk-based capital
ratio and Tier 1 capital ratio of 11.26% and 9.96%, respectively, also met the
definition of "well-capitalized." The March 31, 1996 ratios for the Bank are
based on Tier 1 capital of $6,683,000, total capital of $7,552,000 and
risk-adjusted assets of $67,074,000.
The Federal Reserve Board and the Comptroller of the Currency have also
adopted a minimum leverage ratio of Tier 1 capital to total assets which is
intended to supplement the risk-based capital guidelines. The minimum Tier 1
leverage ratio is 3% for the most highly rated institutions which meet certain
standards. For other banks and bank holding companies, the guidelines provide
that the Tier 1 leverage ratio should be at least 1% to 2% higher. At March 31,
1996, the Company's and the Bank's Tier 1 leverage ratios based on annual
average assets of $87,682,000 and $87,611,000 were 7.78% and 7.63%,
respectively, meeting the regulatory definition of "well-capitalized."
11
<PAGE>
- --------------------------------------------------------------------------------
Item 6 - Exhibits and Reports on Form 8-K
- --------------------------------------------------------------------------------
(a) Exhibits
Exhibit No. Description of Exhibit
- ----------- ----------------------
19 Abigail Adams National Bancorp, Inc. Financial Summary for
March 31, 1996
27 Financial Data Schedule
(b) No reports on Form 8-K were filed during the quarter ended March 31, 1996
12
<PAGE>
SIGNATURES
In accordance with the requirements of the Exchange Act, the Registrant caused
this report to be signed on its behalf by the undersigned thereunto duly
authorized.
ABIGAIL ADAMS NATIONAL BANCORP, INC.
------------------------------------
Registrant
Date: May 15, 1996 /s/ Barbara Davis Blum
------------ ----------------------
Barbara Davis Blum
Chairwoman of the Board,
President and Director
(Principal Executive Officer)
Date: May 15, 1996 /s/ Kimberly J. Levine
------------ ----------------------
Kimberly J. Levine
Senior Vice President & Treasurer
(Principal Financial and
Accounting Officer)
13
ABIGAIL ADAMS
NATIONAL BANCORP,
INC.
FINANCIAL SUMMARY
MARCH 31, 1996
<PAGE>
APRIL 19, 1996
DEAR SHAREHOLDER:
ABIGAIL ADAMS NATIONAL BANCORP, INC. REPORTED NET INCOME OF $238,000, OR $.83
PER SHARE, FOR THE FIRST THREE MONTHS OF 1996, FOR AN ANNUALIZED RETURN ON
AVERAGE ASSETS OF 1.09%.
IN MARCH 1996, WE DECLARED A QUARTERLY DIVIDEND OF $.25 PER SHARE. WE HAVE ALSO
CONTINUED TO MAINTAIN OUR WELL CAPITALIZED STATUS (THE TOP CAPITAL RATING) WITH
A TOTAL RISK- BASED CAPITAL RATIO OF 11.46%, TIER 1 RISK-BASED CAPITAL RATIO OF
10.16% AND A LEVERAGE CAPITAL RATIO OF 7.78%. IN ADDITION TO THIS STRONG CAPITAL
BASE, WE MAINTAIN AN "OUTSTANDING" COMMUNITY REINVESTMENT ACT (CRA) RATING AND
PAY THE LOWEST POSSIBLE FDIC INSURANCE PREMIUMS.
IN AUGUST OF THIS YEAR, WE WILL OPEN A NEW FULL SERVICE BRANCH AT 1604 17TH
STREET, DUPONT CIRCLE EAST, IN THE DISTRICT OF COLUMBIA.
WHILE WE TAKE GREAT SATISFACTION IN THESE ACCOMPLISHMENTS, IT IS OUR SEVENTEEN
YEARS OF OUTSTANDING SERVICE TO OUR CUSTOMERS IN WHICH WE TAKE THE MOST PRIDE.
OVER THE YEARS, WE HAVE FAITHFULLY SERVED THE NEEDS OF OUR NON-PROFIT, SMALL
BUSINESS AND COMMERCIAL REAL ESTATE CUSTOMERS, OFFERING A HIGH LEVEL OF
PERSONALIZED SERVICE WITHOUT THE BUREAUCRACY OF A LARGE BANK ENVIRONMENT. WE
APPRECIATE OUR CUSTOMERS' BUSINESS AND VALUE EACH AS IMPORTANT.
SINCERELY,
/s/ Barbara Davis Blum
----------------------
BARBARA DAVIS BLUM
PRESIDENT AND CHIEF EXECUTIVE OFFICER
<PAGE>
ABIGAIL ADAMS NATIONAL BANCORP, INC.
BALANCE SHEET
MARCH 31, 1996
($ in thousands)
Assets:
Cash and due from banks $ 4,478
Short-term investments 11,337
Securities (market value of $12,624) 12,561
Loans 60,215
Less: Allowance
for loan losses (1,262)
------
Loans, net 58,953
Other assets 1,560
-----
Total assets $ 88,889
========
Liabilities and Equity:
Deposits $ 78,812
Short-term borrowings 2,233
Long-term debt 168
Other liabilities 887
-------
Total liabilities 82,100
Stockholders' equity 6,789
Total liabilities and -------
stockholders' equity $ 88,889
========
STATEMENT OF INCOME
FOR THE NINE MONTHS ENDED MARCH 31, 1996
($ in thousands, except per share data)
Total interest income $ 1,807
Total interest expense 714
------
Net interest income 1,093
Provision for loan losses --
Net interest income after ------
provision for loan losses 1,093
Other income 185
Other expense 901
----
Income before taxes 377
Applicable income tax expense 139
---
Net income $ 238
=======
Net income per share $ .83
=======
SELECTED DATA
MARCH 31, 1996
Allowance for loan losses as a
percentage of loans 2.10%
Average equity to average assets 7.67%
Return on average assets 1.09%
Net interest margin 5.35%
<TABLE> <S> <C>
<ARTICLE> 9
<LEGEND>
(Replace this text with the legend)
</LEGEND>
<CIK> 0000356809
<NAME> ABIGAIL ADAMS NATIONAL BANCORP, INC.
<MULTIPLIER> 1
<CURRENCY> US DOLLARS
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-START> JAN-01-1996
<PERIOD-END> DEC-31-1996
<EXCHANGE-RATE> 1
<CASH> 4,478,105
<INT-BEARING-DEPOSITS> 486,715
<FED-FUNDS-SOLD> 10,850,000
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 4,997,870
<INVESTMENTS-CARRYING> 7,563,546
<INVESTMENTS-MARKET> 7,626,518
<LOANS> 60,214,781
<ALLOWANCE> (1,261,672)
<TOTAL-ASSETS> 88,889,212
<DEPOSITS> 78,811,602
<SHORT-TERM> 2,233,030
<LIABILITIES-OTHER> 887,670
<LONG-TERM> 167,625
0
0
<COMMON> 2,864,040
<OTHER-SE> 3,925,245
<TOTAL-LIABILITIES-AND-EQUITY> 88,889,212
<INTEREST-LOAN> 1,508,727
<INTEREST-INVEST> 182,119
<INTEREST-OTHER> 116,104
<INTEREST-TOTAL> 1,806,950
<INTEREST-DEPOSIT> 682,282
<INTEREST-EXPENSE> 713,523
<INTEREST-INCOME-NET> 1,093,427
<LOAN-LOSSES> 0
<SECURITIES-GAINS> 0
<EXPENSE-OTHER> 901,334
<INCOME-PRETAX> 376,512
<INCOME-PRE-EXTRAORDINARY> 376,512
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 238,033
<EPS-PRIMARY> 0.83
<EPS-DILUTED> 0
<YIELD-ACTUAL> 8.85
<LOANS-NON> 1,463,486
<LOANS-PAST> 4,000
<LOANS-TROUBLED> 1,240,860
<LOANS-PROBLEM> 671,152
<ALLOWANCE-OPEN> (1,273,965)
<CHARGE-OFFS> 45,182
<RECOVERIES> (32,889)
<ALLOWANCE-CLOSE> (1,261,672)
<ALLOWANCE-DOMESTIC> (1,261,672)
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 318,953
</TABLE>
