CHANTILLY, Va., Nov. 14, 2011 /PRNewswire/ -- Alliance Bankshares Corporation (NASDAQ: ABVA) today reported a net loss of $503 thousand for the third quarter 2011. Three primary factors influenced operating results during the period, as follows:
- The unprecedented decline in the 10 year Treasury rate resulted in a significant increase in the valuation of our $25 million FHLB Advance, which is accounted for under Fair Value Option (FVO) accounting. The liability increased from $26.2 million to $29.1 million, impacting pre-tax income by $2.9 million.
- On a more positive note, the decline in the 10 year Treasury rate presented opportunities to take securities gains totaling $2.1 million
- Non-interest expenses relating to the previously announced merger with Eagle Bancorp totaled $619 thousand during the quarter; these expenses are largely comprised of legal and investment banking fees
This represents a loss of $.10 per share versus income of $.05 for the same period in 2010. For the nine month period ended September 30, 2011, net income was $257 thousand, or $.05 per share, versus $547 thousand, or $.11 per share, for the nine month period ended September 30, 2010. Alliance's regulatory capital ratios are strengthened since December 31, 2010, and remain above the levels necessary to be considered a "well capitalized" institution.
At September 30, 2011, total assets amounted to $536.1 million, or a decline of $2.4 million compared to the December 31, 2010 level of $538.5 million. As of September 30, 2011, total loans were $319 million, which is $13.3 million below the December 31, 2010 level of $332.3 million. Investment securities amounted to $105.2 million as of September 30, 2011, a decline of $30.6 million from the December 31, 2010 level of $135.9 million. Modest increases in low cost deposit sources offset a decline in time deposits, resulting in total deposits of $402.3 million at September 30, 2011, as compared to $406.9 million at December 31, 2010.
Non-performing assets (NPAs) at September 30, 2011 amounted to $15.3 million, compared to $9.4 million at December 31, 2010. NPAs remain above December 31, 2010 levels due to specific credit situations described in a prior quarter earnings release. At September 30, 2011, the allowance for loan losses was $5.2 million, or 1.62% of loans.
Continued efforts to manage expenses have resulted in a decline in noninterest expense of $269,000 on a quarterly comparative basis, and nearly $1.7 million when comparing the respective nine month period. Our net interest margin decreased to 3.61% for the third quarter. The margin decline resulted largely from the change in mix within the investment portfolio and was also artificially depressed due to nonaccrual interest income reversals of $150,200.
Cautionary Statement Regarding Forward-Looking Statements. Certain statements contained in this report that are not historical facts may constitute "forward-looking statements" within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934. These statements can generally be identified by the use of words such as "may," "will," "should," "could," "would," "plan," "believe," "expect," "anticipate," "intend" or words of similar meaning.These statements are inherently uncertain; there can be no assurance that the underlying assumptions will prove to be accurate. These forward-looking statements include statements relating to the Company's anticipated future performance, mix of assets and liabilities and effects of efforts to reposition its business. Readers should not place undue reliance on such statements, which speak only as of the date of this release. The Company does not undertake to update any forward-looking statement that may be made from time to time by it or on its behalf.
Forward-looking statements are subject to risks, assumptions and uncertainties, and could be affected by many factors.Some factors that could cause the Company's actual results to differ materially from those anticipated in these forward-looking statements include: interest rates, general business conditions, as well as conditions within the financial markets, general economic conditions, unemployment levels,the legislative/regulatory climate, including the effect of the Dodd-Frank Wall Street Reform Act and Consumer Protection Act of 2010 and related regulations, regulatory compliance costs, monetary and fiscal policies of the U.S. Government, including policies of the U.S. Treasury and the Federal Reserve, the quality/composition of the loan portfolios and the value of related collateral,the value of securities the Company holds,charge-offs on loans and the adequacy of the allowance for loan losses, loan demand,deposit flows,counterparty strength, competition, reliance on third parties for key services,the health of the real estate markets, the outcome of the Company's repositioning initiatives, andchanges in accounting principles.
More information on Alliance Bankshares Corporation can be found online at www.alliancebankva.com, or by phoning an Alliance office.
ALLIANCE BANKSHARES CORPORATION | |||||
Consolidated Balance Sheets | |||||
September 30, | December 31, | September 30, | |||
2011* | 2010 | 2010* | |||
ASSETS | (Dollars in thousands) | ||||
Cash and due from banks | $ 67,497 | $ 24,078 | $ 102,526 | ||
Federal funds sold | 23,644 | 17,870 | 14,595 | ||
Trading securities, at fair value | 559 | 2,075 | 2,250 | ||
Investment securities available-for-sale, at fair value | 105,210 | 135,852 | 125,685 | ||
Restricted stock, at cost | 5,224 | 6,355 | 6,548 | ||
Loans, net of unearned discount and fees | 318,993 | 332,310 | 337,087 | ||
Less: allowance for loan losses | (5,178) | (5,281) | (5,224) | ||
Loans, net | 313,815 | 327,029 | 331,863 | ||
Premises and equipment, net | 1,547 | 1,584 | 1,652 | ||
Other real estate owned (OREO) | 4,102 | 4,627 | 4,748 | ||
Other assets | 14,544 | 19,041 | 17,604 | ||
TOTAL ASSETS | 536,142 | 538,511 | 607,471 | ||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||
Non-interest bearing deposits | $ 125,872 | $ 124,639 | $ 138,831 | ||
Savings and NOW deposits | 58,281 | 56,569 | 75,451 | ||
Money market deposits | 23,660 | 25,524 | 24,931 | ||
Time deposits | 194,518 | 200,211 | 227,030 | ||
Total deposits | 402,331 | 406,943 | 466,243 | ||
Repurchase agreements, federal funds purchased and other borrowings | 42,496 | 43,153 | 39,853 | ||
Federal Home Loan Bank advances ($29,081, $26,208 and $26,765 at fair value) | 44,081 | 41,208 | 51,765 | ||
Trust Preferred Capital Notes | 10,310 | 10,310 | 10,310 | ||
Other liabilities | 2,460 | 3,212 | 2,256 | ||
TOTAL LIABILITIES | 501,678 | 504,826 | 570,427 | ||
Common stock, $4 par value; 15,000,000 shares authorized; | |||||
5,108,969 shares issued and outstanding at September 30, 2011 and | |||||
5,106,819 shares at December 31, 2010 and September 30, 2010, respectively. | 20,436 | 20,427 | 20,427 | ||
Capital surplus | 25,864 | 25,857 | 25,857 | ||
Retained (deficit) | (12,055) | (12,311) | (12,469) | ||
Accumulated other comprehensive income (loss), net | 219 | (288) | 3,229 | ||
TOTAL STOCKHOLDERS' EQUITY | 34,464 | 33,685 | 37,044 | ||
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 536,142 | $ 538,511 | $ 607,471 | ||
* Unaudited financial results | |||||
ALLIANCE BANKSHARES CORPORATION | ||||||||
Consolidated Income Statements | ||||||||
Three Months Ended | Three Months Ended | Nine Months Ended | Nine Months Ended | |||||
September 30, | September 30, | September 30, | September 30, | |||||
2011* | 2010* | 2011* | 2010* | |||||
(Dollars in thousands, except per share) | ||||||||
INTEREST INCOME: | ||||||||
Loans | $ 4,574 | $ 5,046 | $ 13,674 | $ 15,414 | ||||
Investment securities | 802 | 1,387 | 3,290 | 4,766 | ||||
Trading securities | 12 | 40 | 57 | 177 | ||||
Federal funds sold | 10 | 18 | 32 | 40 | ||||
Total interest income | 5,398 | 6,491 | 17,053 | 20,397 | ||||
INTEREST EXPENSE: | ||||||||
Savings and NOW deposits | 26 | 46 | 88 | 173 | ||||
Time deposits | 877 | 1,290 | 2,845 | 4,424 | ||||
Money market deposits | 45 | 65 | 139 | 216 | ||||
Repurchase agreements, federal funds purchased and other borrowings | 54 | 82 | 194 | 288 | ||||
FHLB advances | 261 | 282 | 776 | 866 | ||||
Trust preferred capital notes | 93 | 101 | 278 | 275 | ||||
Total interest expense | 1,356 | 1,866 | 4,320 | 6,242 | ||||
Net interest income | 4,042 | 4,625 | 12,733 | 14,155 | ||||
Provision for loan losses | 130 | 378 | 1,205 | 1,328 | ||||
Net interest income after provision for loan losses | 3,912 | 4,247 | 11,528 | 12,827 | ||||
OTHER INCOME: | ||||||||
Deposit account service charges | 39 | 49 | 115 | 172 | ||||
Net gain on sale of available-for-sale securities | 2,120 | 656 | 3,034 | 1,715 | ||||
Fair value adjustments | (2,844) | (412) | (2,950) | (1,028) | ||||
Other operating income | 34 | 58 | 153 | 166 | ||||
Total other income | (651) | 351 | 352 | 1,025 | ||||
OTHER EXPENSES: | ||||||||
Salaries and employee benefits | 1,197 | 1,800 | 3,993 | 5,350 | ||||
Occupancy expense | 578 | 702 | 1,703 | 1,975 | ||||
Equipment expense | 163 | 186 | 486 | 565 | ||||
Other real estate owned expense | 26 | 55 | 77 | 449 | ||||
FDIC assessments | 220 | 366 | 860 | 1,031 | ||||
Merger expenses | 619 | - | 619 | - | ||||
Operating expenses | 1,264 | 1,227 | 3,816 | 3,924 | ||||
Total other expenses | 4,067 | 4,336 | 11,554 | 13,294 | ||||
Income (loss) before income taxes | (806) | 262 | 326 | 558 | ||||
Income tax expense (benefit) | (303) | 20 | 70 | 11 | ||||
NET INCOME (LOSS) | $ (503) | $ 242 | $ 256 | $ 547 | ||||
Net income (loss) per common share, basic | $ (0.10) | $ 0.05 | $ 0.05 | $ 0.11 | ||||
Net income (loss) per common share, diluted | $ (0.10) | $ 0.05 | $ 0.05 | $ 0.11 | ||||
Weighted average number of shares, basic | 5,108,969 | 5,106,819 | 5,108,616 | 5,106,819 | ||||
Weighted average number of shares, diluted | 5,125,607 | 5,108,150 | 5,129,311 | 5,107,800 | ||||
* Unaudited financial results | ||||||||
ALLIANCE BANKSHARES CORPORATION | ||||
Consolidated Statistical Information | ||||
Performance Information | ||||
September 30, | September 30, | |||
2011* | 2010* | |||
(Dollars in thousands, except per share) | ||||
Performance Information: | ||||
For The Three Months Ended: | ||||
Average loans | $ 320,004 | $ 337,923 | ||
Average earning assets | 446,088 | 498,336 | ||
Average assets | 485,386 | 543,338 | ||
Average non-interest bearing deposits | 89,101 | 105,065 | ||
Average total deposits | 354,348 | 405,019 | ||
Average interest-bearing liabilities | 357,429 | 399,742 | ||
Average stockholder equity | 36,285 | 36,524 | ||
Net interest margin (1) | 3.61% | 3.72% | ||
Net income per share, basic | $ (0.10) | $ 0.05 | ||
Net income per share, diluted | $ (0.10) | $ 0.05 | ||
For The Nine Months Ended: | ||||
Average loans | $ 321,981 | $ 347,896 | ||
Average earning assets | 457,547 | 515,467 | ||
Average assets | 495,897 | 560,371 | ||
Average non-interest bearing deposits | 89,369 | 96,159 | ||
Average total deposits | 358,021 | 409,264 | ||
Average interest-bearing liabilities | 369,136 | 426,989 | ||
Average equity | 34,839 | 34,877 | ||
Return on average assets | 0.07% | 0.13% | ||
Return on average equity | 0.98% | 2.10% | ||
Net interest margin (1) | 3.74% | 3.76% | ||
Net income (loss) per share, basic | $ 0.05 | $ 0.11 | ||
Net income (loss) per share, diluted | 0.05 | 0.11 | ||
* Unaudited financial results | ||||
(1) On a fully-tax equivalent basis assuming a 34% federal tax rate. | ||||
ALLIANCE BANKSHARES CORPORATION | ||||||
Consolidated Statistical Information | ||||||
Credit Quality Information (1) | ||||||
September 30, | December 31, | September 30, | ||||
2011* | 2010 | 2010* | ||||
(Dollars in thousands) | ||||||
Credit Quality Information: | ||||||
Nonperforming assets: | ||||||
Impaired loans (performing loans with a specific allowance) | $ - | $ 2,400 | $ - | |||
Non-accrual loans | 10,657 | 1,903 | 3,065 | |||
Loans past due 90 days and still accruing | - | 256 | - | |||
Troubled debt restructured | 501 | 212 | - | |||
OREO | 4,102 | 4,627 | 4,748 | |||
Total nonperforming assets | $ 15,260 | $ 9,398 | $ 7,813 | |||
Specific reserves associated with impaired & non-accrual loans | $ 1,370 | $ 873 | $ 727 | |||
Largest components of the nonperforming assets listed above: | ||||||
September 30, 2011 non-accrual loans (91% of the total) | ||||||
$2.7 million which is secured by commercial real estate. | ||||||
$2.4 million which is secured by residential land. | ||||||
$1.1 million which is secured by commercial land. | ||||||
$1.1 million which is secured by 11 residential properties. | ||||||
$1.0 million which is secured by commercial equipment and receivables. | ||||||
$540 thousand which is secured by a residential property and lot. | ||||||
$495 thousand which is secured by residential building lots. | ||||||
$408 thousand which is secured by commercial real estate. | ||||||
September 30, 2011 OREO (100% of the total) | ||||||
$1.47 million which is acreage near Winchester, Virginia.(OREO as of 9/30/07) | ||||||
$879 thousand which is acreage in Woodstock, VA.(OREO as of 3/31/08) | ||||||
$837 thousand which is property in Charles Town, WV.(OREO as of 6/30/10) | ||||||
$477 thousand which consists of two parcels of land in Northern Virginia.(OREO as of 3/31/08) | ||||||
$164 thousand which is residential lots in Virginia.(OREO as of 6/30/11) | ||||||
$156 thousand which is acreage in Spotsylvania, VA.(OREO as of 12/31/10) | ||||||
$117 thousand which is a commercial lot in King George, VA.(OREO as of 3/31/10) | ||||||
* Unaudited financial results | ||||||
(1) The allowance for loan losses includes a specific allocation for all impaired loans. Nonperforming assets are defined as impaired loans, non-accrual loans, OREO, troubled debt restructured, and loans past due 90 days or more and still accruing interest. | ||||||
ALLIANCE BANKSHARES CORPORATION | ||||
Consolidated Statistical Information | ||||
Credit Quality Information (1) | ||||
For The Nine Months Ended: | September 30, | September 30, | ||
2011* | 2010* | |||
(Dollars in thousands) | ||||
Balance, beginning of period | $ 5,281 | $ 5,619 | ||
Provision for loan losses | 1,205 | 1,328 | ||
Loans charged off | (1,556) | (1,850) | ||
Recoveries of loans charged off | 248 | 127 | ||
Net charge-offs | (1,308) | (1,723) | ||
Balance, end of period | $ 5,178 | $ 5,224 | ||
September 30, | June 30, | March 31, | December 31, | September 30, | ||||||
2011 | 2011 | 2011 | 2010* | 2010* | ||||||
Ratios: | ||||||||||
Allowance for loan losses to total loans | 1.62% | 1.62% | 1.75% | 1.59% | 1.55% | |||||
Allowance for loan losses to non-accrual loans | 0.49X | 0.53X | 0.48X | 2.8X | 1.7X | |||||
Allowance for loan losses to nonperforming assets | 0.34X | 0.35X | 0.33X | 0.6X | 0.7X | |||||
Nonperforming assets to total assets | 2.85% | 2.98% | 3.16% | 1.75% | 1.29% | |||||
Net charge-offs to average loans | 0.54% | 0.46% | 0.03% | 0.61% | 0.66% | |||||
* Unaudited financial results | ||||||||||
(1) The allowance for loan losses includes a specific allocation for all impaired loans. Nonperforming assets are defined as impaired loans, non-accrual loans, OREO, troubled debt restructured, and loans past due 90 days or more and still accruing interest. | ||||||||||
ALLIANCE BANKSHARES CORPORATION | ||||||
Consolidated Statistical Information | ||||||
Trading Asset & Liability Summary | ||||||
September 30, 2011 | December 31, 2010 | |||||
Fair | Fair | |||||
Trading Securities | Value | Yield | Value | Yield | ||
(Dollars in thousands) | ||||||
PCMOs (1) | $ 559 | 5.43% | $ 2,075 | 5.32% | ||
Totals | $ 559 | 5.43% | $ 2,075 | 5.32% | ||
(1) As of September 30, 2011 trading securities consisted of one PCMO instrument. This PCMO was rated AAA by at least one ratings agency on the purchase date. Currently the security has a rating below investment grade. The instrument is currently performing as expected. | ||||||
September 30, 2011 | December 31, 2010 | |||||
Fair | Fair | |||||
Fair Value Assets and Liabilities | Value | Value | ||||
(Dollars in thousands) | ||||||
Trading securities | $ 559 | $ 2,075 | ||||
FHLB advances | 29,081 | 26,208 | ||||
ALLIANCE BANKSHARES CORPORATION | ||||
Consolidated Statistical Information | ||||
Capital Information | ||||
September 30, | December 31, | |||
2011* | 2010 | |||
(Dollars in thousands, except per share) | ||||
Capital Information: | ||||
Book value per share | $ 6.75 | $ 6.60 | ||
Tier I risk-based capital ratio | 12.5% | 11.6% | ||
Total risk-based capital ratio | 13.8% | 12.9% | ||
Leverage capital ratio | 8.3% | 7.5% | ||
Total equity to total assets ratio | 6.4% | 6.3% | ||
* Unaudited financial results | ||||
ALLIANCE BANKSHARES CORPORATION | ||||
Components of Stockholder Equity | ||||
on a Book Value per Share Basis | ||||
Nine Months | Twelve Months | Nine Months | ||
Ended September 30, | Ended December 31, | Ended September 30, | ||
2011 | 2010 | 2010 | ||
Book Value Per Share, beginning of the period | $6.60 | $6.49 | $6.49 | |
Net income (loss) per common share | 0.05 | 0.14 | 0.11 | |
Effects of Changes in Other Comprehensive Income (1) | 0.10 | (0.03) | 0.65 | |
Book Value Per Share, end of the period | $6.75 | $6.60 | $7.25 | |
(1) Other Comprehensive Income represents the unrealized gains or losses associated with available-for-sale securities and the related | ||||
reclassification adjustments. | ||||
SOURCE Alliance Bankshares Corporation
