ACQUISITION OF BALLSTON BANCORP BELIEVED TO BE ACCRETIVE TO
EARNINGS PER SHARE AND BOOK VALUE
WASHINGTON -- November 19, 1997 -- Abigail Adams National Bancorp, Inc.
(Nasdaq:AANB) reported that management and the Board of Directors believe the
acquisition of Ballston Bancorp (parent company of The Bank of Northern
Virginia) will have a positive financial impact as well as strategic benefits.
Management estimates that the merger will be accretive to Adams' book value per
share as well as accretive to earnings beginning in the first half of 1998,
after anticipated cost savings following the combination of the two banks'
operations. Management estimates annual direct cost savings of approximately
$750,000, before taxes, and $500,000, after taxes, the majority of which
management expects will be realized beginning in the first half of 1998, a rate
sufficient to offset the fifteen year write-off of goodwill resulting from the
transaction.
The acquisition will result in a combined bank with assets of
approximately $200 million and will establish Adams' presence in the high growth
Northern Virginia market with a nearly doubled legal lending limit. Barbara
Davis Blum, Chairwoman and CEO, said, "With the Ballston acquisition, we are
continuing our strategy of expansion to keep pace with and to take advantage of
the growth in the National Capital region we serve."
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