&T Financial : July 28, 2020 -- AB&T Financial Corporation Announces Second Quarter 2020 Results

Contact: Dan M. Boyd IV, President/CEO, [phone]

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AB&T Financial Corporation Announces Second Quarter 2020 Results

Gastonia, N.C. (July 28, 2020) - AB&T Financial Corporation (OTC Pink: ABTO), the parent company of Alliance Bank & Trust Company (the 'Bank'), today reported its second quarter 2020 results. For the quarter ended June 30, 2020, net income available to common shareholders was $455,000 or $0.014 per basic and diluted common share, compared to net income available to common shareholders of $250,000 or $0.008 per diluted common share for the quarter ended June 30, 2019. This $205,000 increase in earnings was largely attributable to an increase in loan fee income of $545,000 for the quarter ended June 30, 2020 as compared to the quarter ended June 30, 2019 due to the Bank's participation in the Small Business Administration's Paycheck Protection Program ('SBA PPP'). This increase in loan fee income was offset by a provision for loan loss expense of $250,000, an increase in other operating expenses of $79,000, and an increase in the income tax provision of $25,000.

Earnings for the first six months of 2020 increased by $157,000 to $689,000, compared to earnings of $532,000 for the same period in 2019. Fully diluted earnings per common share for the six months ended June 30, 2020 were $0.022 compared to $0.017 for the same period in 2019.

Total assets at June 30, 2020 were $178.2 million, an increase of $20.9 million from $157.3 million at December 31, 2019. Loans totaled $134.9 million at June 30, 2020 compared to $106.2 million at December 31, 2019, an increase of $28.7 million or 27.0%. Total deposits increased to $163.7 million on June 30, 2020, from $143.4 million as of December 31, 2019. Demand deposit accounts increased from $54.9 million at December 31, 2019, to $82.4 million at June 30, 2020, an increase of $27.5 million or 50.1%. The Bank continues to carry no wholesale funding on the balance sheet.

Dan Boyd, President and CEO, commented, 'Alliance Bank has been an active participant in the SBA PPP lending program and has provided our local businesses with the funding needed during these unprecedented times. The Bank has assisted 165 small business customers with approximately $20,300,000 in loans that supported over 2,500 jobs in our markets. As we continue to deal with the COVID-19 pandemic, our team remains committed to providing superior customer service to our clients and Alliance Bank is proud to be the only remaining bank headquartered in the primary markets that 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.