AB&T Financial Corporation Announces Fourth Quarter and Year-End 2020 Results

Rhea-AI Summary

AB&T Financial Corporation (OTC Pink: ABTO) reported its fourth quarter and year-end 2020 results. For Q4 2020, net income decreased to $185,000, down from $226,000 in Q4 2019, primarily due to a $50,000 increase in loan loss provisions. Total assets grew 17.3% to $184.6 million, with loans increasing by 36.2% to $144.6 million. Annual net income rose 4.0% to $1,064,000, with basic earnings per share of $0.033. Demand deposits surged by 39.0%. CEO Dan Boyd noted sustained profitability despite COVID-19 challenges.

Positive

• Total assets increased by 17.3% to $184.6 million.
• Loans grew by 36.2% to $144.6 million.
• Demand deposits surged by 39.0% to $76.3 million.
• Annual net income rose by 4.0% to $1,064,000.

Negative

• Net income for Q4 2020 decreased by $41,000 compared to Q4 2019.

AB&T Financial Corporation (OTC Pink: ABTO), the parent company of Alliance Bank & Trust Company, today reported its fourth quarter and year-end 2020 results. For the quarter ended December 31, 2020, net income available to common shareholders was $185,000 or $0.006 per basic and diluted share, compared to net income available to common shareholders of $226,000 or $0.007 per basic and diluted share for the quarter ended December 31, 2019. This $41,000 decrease in earnings was largely attributable to an increase to the provision for loan losses of $50,000 due to economic uncertainty regarding the COVID-19 pandemic as well as a onetime loss of approximately $17,000 due to the sale of a bank-owned property compared to the same period in 2019.

Earnings for the twelve months ended December 31, 2020 remained steady, increasing by $41,000 to $1,064,000 compared to net income available to common shareholders of $1,023,000 for the calendar year 2019. Fully diluted and basic earnings per share for the twelve months ended December 31, 2020 were $0.034 and $0.033 respectively, compared to $0.033 and $0.032 for the same period in 2019.

Total assets at December 31, 2020 were $184.6 million, an increase of $27.2 million or 17.3% over the $157.4 million at December 31, 2019. Loans totaled $144.6 million at December 31, 2020 compared to $106.2 million at December 31, 2019, an increase of $38.4 million or 36.2%. Total deposits increased to $169.8 million at December 31, 2020, from $143.4 million at December 31, 2019, an increase of $26.4 million or 18.4%. Demand deposit accounts increased from $54.9 million to $76.3 million at December 31, 2020, an increase of $21.4 million or 39.0% as compared to December 31, 2019. The Bank continues to carry no wholesale funding on the balance sheet.

Dan Boyd, President and CEO, commented, “In spite of the ongoing COVID-19 pandemic, we are pleased to report another year of sustained profitability for the company. This profitability was driven by a robust year of loan growth as well as a substantial increase in our demand deposit balances. During the third quarter we were fortunate to move our Kings Mountain branch from a store front location to a full-service branch which includes a multilane drive-thru for our customers. Alliance Bank is proud to be the only remaining community bank headquartered in the primary markets we serve.”

Alliance Bank & Trust Company, which opened in Gastonia, North Carolina in 2004, operates four North Carolina banking offices, in Gastonia (2), Kings Mountain and Shelby.

AB&T Financial Corporation is the parent company of Alliance Bank & Trust Company, which operates 4 community-oriented branches in Gaston and Cleveland Counties in North Carolina that offer a full array of banking services. Additional information on Alliance Bank & Trust’s locations and the products and services offered are available at http://www.alliancebanknc.com/.

Information in this news release contains forward-looking statements. These statements involve risks and uncertainties that could cause actual results to differ materially, including without limitation as a result of the effects of future economic conditions, governmental fiscal and monetary policies, legislative and regulatory changes, the risks of changes in interest rates, and the effects of competition. AB&T Financial Corporation does not undertake to update any forward-looking statements in this news release.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210128006077/en/

FAQ

What were ABTO's net income results for Q4 2020?

AB&T Financial Corporation reported a net income of $185,000 for Q4 2020, down from $226,000 in Q4 2019.

How did ABTO perform in terms of total assets by the end of 2020?

Total assets for AB&T Financial Corporation increased by 17.3% to $184.6 million as of December 31, 2020.

What was the increase in loans for ABTO in 2020?

Loans increased by 36.2% to $144.6 million for AB&T Financial Corporation as of December 31, 2020.

What were the annual earnings per share for ABTO in 2020?

For the twelve months ended December 31, 2020, basic earnings per share were $0.033.

What caused the decrease in ABTO's Q4 2020 net income?

The decrease in Q4 2020 net income was largely due to a $50,000 increase in the provision for loan losses.