-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, IM2i+J3S+DuB7pXwC3vz3xAJtmvk+UmYf7BW0iF06kiEH6wd1QjMUkO8ZmaSh4yt rUhNaTGnS4HvaOEd0X6Y4Q== 0001157523-06-004711.txt : 20060505 0001157523-06-004711.hdr.sgml : 20060505 20060505090032 ACCESSION NUMBER: 0001157523-06-004711 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20060505 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20060505 DATE AS OF CHANGE: 20060505 FILER: COMPANY DATA: COMPANY CONFORMED NAME: ANNAPOLIS BANCORP INC CENTRAL INDEX KEY: 0001041429 STANDARD INDUSTRIAL CLASSIFICATION: NATIONAL COMMERCIAL BANKS [6021] IRS NUMBER: 521648903 STATE OF INCORPORATION: MD FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-22961 FILM NUMBER: 06810777 BUSINESS ADDRESS: STREET 1: 1000 BESTGATE ROAD CITY: ANNAPOLIS STATE: MD ZIP: 21401 BUSINESS PHONE: 4102244455 MAIL ADDRESS: STREET 1: 1000 BESTGATE ROAD CITY: ANNAPOLIS STATE: MD ZIP: 21401 FORMER COMPANY: FORMER CONFORMED NAME: ANNAPOLIS NATIONAL BANCORP INC DATE OF NAME CHANGE: 19970620 8-K 1 a5141258.txt ANNAPOLIS BANCORP, INC. 8K SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of Report May 5, 2006 ANNAPOLIS BANCORP, INC. ----------------------- (Exact name of registrant as specified in its charter) Maryland 000-22961 52-1595772 - ------------------------------------------------------------------------------- (State or other jurisdiction (Commission File No.) (IRS Employer of incorporation) Identification Number) 1000 Bestgate Road, Annapolis, Maryland 21401 ---------------------------------------------- (Address of principal executive offices and zip code) \ Registrant's telephone number, including area code: (410) 224-4455 ------------- Not Applicable. (Former name or former address, if changed since last report) Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligations of the registrant under any of the following provisions: [_] Written communications pursuant to Rule 425 under the Securities Act (17CFR 230.425) [_] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) [_] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b) [_] Pre-commencement communications pursuant to Rule 13e-4(C) under the Exchange Act (17 CFR 240.13e-14c)) Item 2.02 Results of Operations and Financial Condition. - -------------------------------------------------------- The following information is furnished pursuant to Item 2.02, "Results of Operations and Financial Condition": On May 5, 2006 Annapolis Bancorp, Inc. issued a press release reporting first quarter 2006 financial results. The press release is attached hereto as Exhibit 99.1 Item 9.01 Financial Statements and Exhibits. - -------------------------------------------- (a) Not applicable (b) Not applicable (c) Exhibits Exhibit Description - ------- ----------- 99.1 Press Release issued May 5, 2006, filed herewith. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned, hereunto duly authorized. ANNAPOLIS BANCORP, INC. Dated: May 5, 2006 /s/ Richard M. Lerner -------------------------- Richard M. Lerner, Chief Executive Officer EXHIBIT INDEX Exhibit Description - ------- ----------- 99.1 Press Release issued May 5, 2006 EX-99.1 2 a5141258ex991.txt EXHIBIT 99.1 Exhibit 99.1 Earnings Up 11% at Annapolis Bancorp; Asset Quality, Loan Production Improve in First Quarter of 2006 ANNAPOLIS, Md.--(BUSINESS WIRE)--May 5, 2006--Annapolis Bancorp, Inc. (NASDAQ:ANNB), parent company of BankAnnapolis, today announced net income of $690,000 ($0.17 per basic and $0.16 per diluted share) for the first quarter of 2006, an 11.3% increase over net income of $620,000 ($0.15 per basic and diluted share) in the same period last year. Nonperforming assets fell to $270,000 at March 31, 2006 from just over $2 million at December 31, 2005, as several loans concentrated in one credit relationship were repaid, with the Bank fully recovering all principal, interest and associated fees. The improvement in asset quality, combined with the recovery of $37,000 in previously charged-off loans, enabled the Bank to reduce its provision for credit losses in the first quarter to $12,000 compared to $145,000 in the first quarter of 2005. At March 31, 2006 the allowance for credit losses stood at $2,061,000 (0.99% of total gross loans) compared to $2,012,000 (0.98% of total gross loans) at December 31, 2005. Nonperforming assets accounted for 0.13% of total gross loans, and the allowance for credit losses provided 8:1 coverage of nonperforming assets. Total assets dipped slightly for the quarter as deposit levels were affected by the impact of a slowdown in mortgage activity on title and escrow company deposit balances. Total assets at March 31, 2006 totaled $303.3 million compared to $304.9 at December 31, 2005. The Bank's loan portfolio grew at an annualized rate of 9.1% in the first quarter, adding $4.6 million to total loans outstanding. An increase of $7.5 million in real estate loans was partially offset by payoffs on commercial, construction and installment loans. Loan growth for the quarter ended March 31, 2006 was funded by a reduction of $2.4 million in cash and $4.2 million in investment balances. The decline in investments included the sale of $3.0 million in securities at a loss of $23,000. Total deposits fell by $3.4 million, or 1.4%, in the first quarter--with the largest decreases occurring in NOW accounts (down $4.3 million or 11.3%) and certificates of deposit (down $2.4 million or 2.8%). Average interest-earning assets grew to $277.0 million compared to $273.2 million in the first quarter of 2005. Total interest income improved by $558,000 or 14.1%, with the yield on earning assets improving to 6.59% for the three months ended March 31, 2006 compared to 5.86% for the same period in 2005. Average interest-bearing liabilities dipped to $229.6 million in the first quarter of 2006 from $231.2 million in the same period last year--a decrease of $1.6 million. Total interest expense increased in the first quarter by $473,000 or 40.9%, with the cost of interest-bearing liabilities rising to 2.88% from 2.03% in the quarter ended March 31, 2005. First quarter net interest income rose by $85,000 or 3.0%, with the net interest margin improving to 4.20% from 4.14% in the first quarter of 2005. Noninterest income decreased by $31,000 or 6.7% in the first quarter as the Company recorded a loss on the sale of securities of $23,000. Fees earned on brokered mortgage loans declined by $16,000 as mortgage activity slowed. Noninterest expense increased by $22,000 or 1.0% compared to the first three months of 2005 due to higher marketing costs, as the Bank continued its "Inner Lion" advertising campaign in print and on local cable television. Offsetting this increase, in part, was the recovery of legal fees previously expensed in the collection of nonperforming loans. BankAnnapolis serves the banking needs of small businesses, professional concerns, and individuals through six community banking offices located in Anne Arundel and Queen Anne's Counties in Maryland. The Bank plans to open its seventh branch this summer in the historic Market House at City Dock in downtown Annapolis. It has also acquired property in Odenton, Maryland on which it intends to build a new branch in 2007. The site is located in the heart of the Odenton Town Center in western Anne Arundel County where substantial residential and commercial growth is expected over the next 5 to 10 years with the planned expansion of nearby Fort George Meade. Committed to a unique "unbank" philosophy of personalized customer service and strategic, market-driven offerings, BankAnnapolis' goal is to be the community bank of choice in the greater Annapolis area. The Bank's headquarters building and main branch are located at 1000 Bestgate Road, directly across from the Annapolis Mall. Certain statements contained in this release, including without limitation, statements containing the words "believes," "plans," "expects," "anticipates," and words of similar import, constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Annapolis Bancorp, Inc. and Subsidiaries Consolidated Balance Sheets as of March 31, 2006 and December 31, 2005 ($000) (Unaudited) (Audited) March 31, December 31, 2006 2005 ------------ ------------ Assets Cash and due $ 7,223 $ 9,603 Federal funds sold 4,397 3,400 Investments 68,741 73,902 Loans, net of allowance 207,091 202,568 Acc int rec 1,335 1,423 Def inc taxes 1,314 1,128 Premises and equip 9,037 8,550 Investment in BOLI 3,669 3,638 Other assets 492 704 ------------ ------------ Total Assets $ 303,299 $ 304,916 ============ ============ Liabilities and Stockholders' Equity Deposits Noninterest bearing $ 44,277 $ 43,448 Interest bearing 202,245 206,501 ------------ ------------ Total deposits 246,522 249,949 Sec under agree to repurchase 14,375 12,986 Other borrowed funds 15,000 15,000 Junior subordinated debentures 5,000 5,000 Acc int & acc exp 1,047 1,022 ------------ ------------ Total Liabilities 281,944 283,957 Stockholders' Equity Common stock 41 41 Paid in capital 13,225 13,171 Retained Earnings 9,548 8,858 Comprehensive loss (1,459) (1,111) ------------ ------------ Total Equity 21,355 20,959 Total Liabilities and ------------ ------------ Equity $ 303,299 $ 304,916 ============ ============ Annapolis Bancorp, Inc. and Subsidiaries Consolidated Statements of Income for the Three Month Periods Ended March 31, 2006 and 2005 (Unaudited) (In thousands, except per share data) For the three months ended March 31, --------------------- 2006 2005 ---------- ---------- Interest Income Loans $ 3,719 $ 3,367 Investments 766 523 Federal funds sold 17 54 ---------- ---------- Total int inc 4,502 3,944 Interest expense Deposits 1,273 827 Sec sold under agree to repurch 94 51 Borrowed funds 167 207 Junior debentures 96 72 ---------- ---------- Total int exp 1,630 1,157 Net int inc 2,872 2,787 Provision 12 145 ---------- ---------- Net int inc after prov 2,860 2,642 NonInterest Income Service charges 290 294 Mortgage banking 42 58 Other fee income 126 114 Loss on sale of securities (23) - ---------- ---------- Total nonint inc 435 466 NonInterest Expense Personnel 1,218 1,220 Occ and equip 269 285 Data processing exp 231 220 Other operating exp 443 414 ---------- ---------- Total Nonint Exp 2,161 2,139 Income before taxes 1,134 969 Income tax expense 444 349 ---------- ---------- Net income $ 690 $ 620 ========== ========== Basic EPS $ 0.17 $ 0.15 ========== ========== Diluted EPS $ 0.16 $ 0.15 ========== ========== Book value per share $ 5.23 $ 4.63 ========== ========== Avg fully diluted shares 4,203,311 4,173,882 ========== ========== Annapolis Bancorp, Inc. and Subsidiaries Financial Ratios and Average Balance Highlights (In thousands) For the Three Months Ended March 31, ------------------------- 2006 2005 ------------ ------------ (Unaudited) (Unaudited) Performance Ratios (annualized) Return on average assets 0.94% 0.86% Return on average equity 13.17% 13.34% Average equity to average assets 7.14% 6.46% Net interest margin 4.20% 4.14% Efficiency ratio 65.35% 65.75% Other Ratios Allow for credit losses to loans 0.99% 0.91% Nonperforming to gross loans 0.13% 0.27% Net charge-offs to avg loans (0.02%) 0.00% Tier 1 capital ratio 12.8% 10.8% Total capital ratio 13.7% 11.6% Average Balances Assets 298,437 292,016 Earning assets 277,001 273,204 Loans, gross 204,049 210,358 Interest Bearing Liabilities 229,559 231,173 Stockholders' Equity 21,311 18,868 CONTACT: Annapolis Bancorp, Inc. Richard M. Lerner, 410-224-4455 -----END PRIVACY-ENHANCED MESSAGE-----