Annapolis Bancorp Inc.
Baupost's investment process involves "never-ending" gleaning of facts to help support investment ideas Seth Klarman writes in his end-of-year letter to investors. In the letter, a copy of which ValueWalk has been able to review, the value investor describes the Baupost Group's process to identify ideas and answer the most critical questions about its potential Read More
As of Oct 21’ 2012, the stock for Annapolis Bancorp, Inc. (NASDAQ:ANNB) stood at USD 8.10, representing a market capitalization of USD 32.20 million. The stock has traded between a range of USD 3.61 to USD 8.25 over the last 52 weeks. The stock has been trading at a P/E ratio of 12.7 and a P/B ratio of 1.04.
Interest & Dividend Income:
For 6MFY12, the Company reported total interest and dividend income of USD 9.6 million, as compared to 9.8 million for 6MFY11, representing a YoY decline of 2.9% as a result of lower yields, obtained on new loans and investments. The major sources of this income were the Mortgage backed securities and US Govt. Securities, which provided USD 0.6 million and USD 0.41 million of interest income respectively. In 6MFY11, the mortgage backed securities provided .71 million and .62 million in interest income. For 6MFY12, the yield on the investment portfolio decreased to 2.47% from 3.01% in 6MFY11. For 6MFY12, the yield on the loan portfolio decreased to 5.70%, compared to 5.98% for 6MFY11.
For 6MFY12, the Company reported interest expense of USD 1.51 million, as compared to USD 1.87 million, representing a YoY decline of 19.25%. This decline was mainly a result of the decrease in interest expenses related to “other deposits”. For 6MFY12, the average rate of interest paid on all interest bearing liabilities was 0.88%, as compared to 1.08% for 6MFY12.
Net Interest Margins:
For 6MFY12, the net interest income totaled USD 8.09 million, resulting in a net interest margin of 3.86%, as compared to USD 3.95% for the corresponding period last year. The decrease in net interest margin was mainly due to a decline in the yield on earnings assets, which was recorded at 4.58% for 6MFY12, as compared to 4.87% for the corresponding period last year.
For 6MFY12, the Company recorded net income of USD 1.7 million, as compared to net income of USD 835,000 for the corresponding period last year; representing a YoY increase of 109%. Net income available to common shareholders for 6MFY12 was recorded at USD 1.6 million or USD 0.4 per basic share, as compared to net income available to common shareholders of USD.59 million, or USD 0.15 per share for 6MFY11.
As of 30th June 2012,the book value per common share was USD 7.76, compared to USD 7.38 at December 31, 2011. Total assets were recorded at USD 437.5 million at June 30, 2012, as compared to USD 441.6 million at 31 December’ 2011; representing a YoY decline of 0.9%.The Company’s allowance for credit losses stood at 2.32% of total loan portfolio.
Factors to Watch Out For:
- Strong growth in net earnings!