Alabama National BanCorporation Announces Third Quarter 2005 Earnings and Declares Fourth Quarter Dividend

Business Wire, Oct 19, 2005

BIRMINGHAM, Ala. -- Alabama National BanCorporation ("ANB") (NASDAQ/NM: ALAB) today announced record earnings for the quarter and nine months ended September 30, 2005 and declared a quarterly cash dividend of $0.3375 per share.

For the 2005 third quarter, ANB reported earnings of $17.1 million, up 16.2% from the 2004 third quarter. Diluted earnings per share of $0.98 were up 13.5% from the year ago third quarter. Diluted cash earnings per share were $1.01, up 12.5% from the 2004 third quarter. Total revenue grew to $69.5 million in the 2005 third quarter, up 11.7% from $62.2 million in the year ago third quarter. Noninterest income represented 26.1% of third quarter 2005 total revenue, down from 29.9% in the 2004 third quarter. ANB's taxable equivalent net interest margin was 3.94% for the 2005 third quarter, up 13 basis points from the 2004 third quarter and up 1 basis point from the second quarter of 2005.

"Our employees have delivered excellent performance for our share owners in the first nine months of 2005," said John H. Holcomb, III, Chairman and CEO. "Our focus on asset quality along with successful loan and deposit growth will continue to be the key factors that allow us to deliver excellent growth within an acceptable risk profile."

Year-to-date earnings were $48.8 million, an increase of 24.2% over the $39.3 million in earnings reported for the same period in 2004. Diluted earnings per share for the first nine months of 2005 were $2.80, up 11.9% from the $2.50 earned in the same period in 2004. Nine months 2005 cash earnings per diluted share of $2.89 were up 11.4% over 2004 levels.

Total assets at September 30, 2005 were $5.9 billion. Loan growth (excluding loans held for sale) was 23.8% on an annualized basis during the 2005 third quarter and 22.1% on a year-to-date annualized basis. Deposits grew at an 8.4% annualized rate from June 30, 2005 and at an 11.5% annualized rate from December 31, 2004, ending the September 30, 2005 period at $4.3 billion. Quarter-end share owners' equity was $562 million, or $32.89 per share, and tangible book value per share was $23.65.

During the 2005 third quarter, ANB recognized $398 thousand in net charge-offs, or an annualized rate of 0.04% of average loans. Combined with first six months net charge-offs, ANB's year-to-date loss of $880 thousand represents a rate of 0.03% in net losses to average loans and leases. Quarter-end nonperforming assets were 0.20% of period end loans and other real estate. The allowance for loan and lease losses covered nonperforming loans 697%.

The Board of Directors of Alabama National today announced a quarterly cash dividend of $0.3375 per share. The dividend is payable January 3, 2006, to stockholders of record at the close of business on December 15, 2005.

ANB is a bank holding company operating 85 banking locations through ten bank subsidiaries in Alabama, Florida and Georgia. Alabama subsidiaries include: First American Bank in north central Alabama; Bank of Dadeville; and Alabama Exchange Bank in Tuskegee. Florida subsidiaries are: First Gulf Bank, N.A., in Escambia County, Florida and Baldwin County, AL; Community Bank of Naples, N.A.; Millennium Bank in Gainesville; Public Bank in metropolitan Orlando; CypressCoquina Bank in Ormond Beach; and Indian River National Bank in Vero Beach. ANB has one subsidiary in Georgia, Georgia State Bank in metropolitan Atlanta. ANB provides full banking services to individuals and businesses. Brokerage services are provided to customers through First American Bank's wholly owned subsidiary, NBC Securities, Inc. Investments are not bank guaranteed, not FDIC insured and may lose value. Insurance services are provided through ANB Insurance Services, Inc., a wholly owned subsidiary of First American Bank.

Alabama National BanCorporation common stock is traded on the NASDAQ National Market System under the symbol "ALAB."

Conference Call Instructions:

Alabama National will discuss financial results for the third quarter completed September 30, 2005 as well as its goals and general outlook for the remainder of 2005 in a conference call to be held Thursday, October 20, 2005 at 9:00 a.m. Central Time. A listen-only simulcast and replay of Alabama National's conference call will be available on-line at the following Internet links: www.alabamanational.com, under "In The News," or www.viavid.net, on October 20, beginning at 9:00 a.m. Central Time. The on-line replay will follow immediately and continue for 30 days.

For live interactive access to the teleconference, please dial 1-800-938-1464 at 9:00 a.m. Central Time on October 20. For those without Internet access, a telephonic replay will be available through November 20 by dialing 1-800-642-1687 and entering Conference ID number 9985894.

Many of the comparisons of financial data from period to period presented in the narrative of this release have been rounded from actual values reported in the attached selected unaudited financial tables. The percentage changes presented above are based on a comparison of the actual values recorded in the attached tables, not the rounded values.