AB&T continued the trend of growing net income and earnings per share through the first quarter of 2020. Net Income for the quarter, and year-to-date year, climbed 4.0% to $392,000 and resulted in fully diluted quarterly earnings per share of $0.31. Average Loans were up 3.6% compared to 1Q19 and Average Deposits grew 1.3%. In addition, the change in deposit mix as evidenced by 16.7% growth in Average Non-Interest-Bearing Deposits year over year, contributed to an increase in net interest income. The bank’s asset quality remained strong in 1Q20, with Non-Performing Assets as a Percent of Total Assets standing at only 0.41%. Non-Performing Assets included one loan that represented the bulk of the total. Repayment of the loan principal, interest and most fees that was expected in 1Q20, has been delayed and the timing for repayment is uncertain due to the effects of Covid-19 on business activity. Following a $30,000 loan loss provision, the Allowance for Loan Losses as a Percent of Total Loans improved to 1.23% as of December 31, 2019. In 1Q20 Bank Capital also continued to grow.

The Tier 1 Leverage Ratio improved to 9.06%, up from 8.41% a year earlier, and the Total Capital Ratio climbed to 12.22% up from 11.61% at the end of the first quarter 2019. Fully Diluted Book Value per Share of $13.18 was reported as of March 31, 2020. When 2020 began, the outlook for earnings and balance sheet growth at AB&T was promising. All that changed in early March as the spread of Covid-19 was recognized as a pandemic. Dougherty County, the center of our primary market area, has been particularly hard hit. As a result, our outlook for 2020 has been tempered and our expectations lowered. As we began the second quarter, we turned our focus to processing and funding loans under the Paycheck Protection Plan authorized by Congress and administered by the Small Business Administration.

Our team of bankers and support personnel have distinguished themselves in our efforts to make these loans available to our clients. Their penchant for excellence shone through once again as they shepherded our clients through the process. As a result, every client who delivered an eligible application received authorization for funding from SBA. Despite the cloudy outlook for 2020, our resolve to do the best for our clients and community has never been more certain. We believe that the enduring relationships we have forged will lead us through this unexpected crisis and enable us to deliver the Gold Standard service our clients expect from us.