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Strategic Management and Efficiency Leads to Sustained Success for AB&T

Staff Report From Georgia CEO

Thursday, April 25th, 2024

Despite macroeconomic conditions that have placed uncertainty on the economy and banking sector, Albany's AB&T has once proven that a prudent credit-culture foundation, adherence to sound relationship management fundamentals, and efficacious operational philosophies not only provide safety during tumult, but can also lead to success for the bank's clients, communities, and ultimately its shareholders. 

As has been the trend for the past several quarters, AB&T ended the first quarter of 2024 on solid footing, once again reporting strong earnings to shareholders while continuing to enhance operational efficiency. 

More importantly, stability and efficiency have further positioned AB&T to continue being a leader and resource in our market while allowing the bank to take advantage of several opportunities to strengthen our community and enable positive growth in critical areas. 

Like many decisions an organization makes, the outcomes of those choices are often only known or realized sometime in the future, which makes AB&T's recent success all the more energizing for bank leadership, as that success serves as proof of concept and evidence that AB&T truly is a community-centric institution. 

AB&T has continued supporting important civic initiatives and organizations that strive for the good of the whole. 

This stability and success has allowed AB&T to continue expanding the Beyond the Bank platform, which now features a bi-weekly podcast highlighting the community and its champions, while continuing to support vital things like the Albany Area Chamber's Partners in Excellence Program, the Boys and Girls Clubs, Helping Hands Fighting Hunger, Backpack Blessings, and countless other initiatives moving the needle in the Albany area community. 

"At AB&T, we measure success beyond the bottom line," said CEO Perry Revell. "Yes, our shareholders expect solid financial performance and a reasonable return on investment, and we strive daily to make that a reality. For a community bank like AB&T though, we see the true measure of our success through the impact we can make in the community, both financially and through our service. We see success in our ability to fund new home starts or provide financing for small businesses, which create employment opportunities for our fellow citizens. We see success in being able to dispatch our associates to Alice Coachman to read to students or fill food bags to send home on the weekend. Success is working with Phoebe Putney and Albany Tech to support the new Living and Learning Center for nursing students or sitting at the table to help craft legislative priorities for our community that are presented to our elected delegations. The list is extensive, and we're humbled to serve. 

"The point is, AB&T's success is a shared success, and we are once again honored that we're able to meet our challenge to our community while continuing to perform in a manner consistent with shareholder expectations." 

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We’re honored to represent you, our shareholders, and we’re pleased to present an overview of our financial performance for the first quarter of 2024. Our results demonstrate the discernible success, strength and stability of our core relationship baking strategy.

We’ll continue to prioritize the maintenance of sound underwriting standards, market awareness, capitalization on opportunities, and maximizing income, in line with our cultural and organizational competencies. Consistent with our objectives, we’ll seek targeted opportunities to accelerate the Bank’s growth.

First Quarter 2024 Highlights

  • Fully Diluted Book Value Per Share stood at $20.21 at quarter end, an increase of 12.9% from 1Q23.

  • Net Income decreased 8.1% in 1Q24 compared to 1Q23.

  • The Efficiency Ratio rose to 53.14% for 1Q24 compared to 51.01% for 1Q23.

  • In 1Q24, Net Revenue declined 1.0% compared to 1Q23.

  • Non-Interest Expense rose 3.1% in 1Q24 compared to 1Q23.

  • Average Loans decreased 3.0% compared to the first quarter of 2023.

  • Average Deposits declined 2.8% from 1Q23 to 1Q24.

  • Average Non-Interest-Bearing Demand Deposits were down 11.3% during that same period.

  • Asset Quality remained strong with a 1.53% Allowance for Losses on Loans and Leases as a Percent of

    Total Loans at March 31, 2024, and Non-Performing Assets as a % of Total Assets at 0.00%.

  • Diluted Earnings Per Share was $0.77.

  • Return on Average Assets was 1.57%.

  • Return on Average Common Equity was 15.95%.

We’re proponents of banking’s central role in our hometowns, as you know. We’re also ambassadors for its propensity to build community, effectively bringing people together. Relationship banking is honorable. And it matters. United by our common purpose, we help people and businesses prosper, lift up our community, and provide customized solutions to enhance the lives of those we serve.

We know the foundation of our current and future success, the bank’s full measure, is the summation of our team’s attributes. They are the gold standard, serving our clients and communities, listening well to every word they say, delivering customized solutions, managing the risks, and striving to be as good as gold. The courage I see daily, the power of our collective reason, and the organization's drive, grit, integrity, and smarts are all examples of our gold standard aspiration.