Americas United Bank Earns $541,000 in Third Quarter

Americas United Bank Earns $541,000 in Third Quarter

GLENDALE, Calif.--(BUSINESS WIRE)-- Americas United Bank (OTCBB: AUNB) today reported net income of $541,000 in the third quarter of 2012, compared to net income of $233,000 in the third quarter a year ago.

"We had modest results for the third quarter as we have been favorably impacted by stabilized operations, improved credit quality, and the core business focus. We remain committed to our shareholders and providing them with a solid return. We are focused on our strategy of being a high quality service driven community business bank," stated Adriana M. Boeka, President and Chief Executive Officer.


Third Quarter 2012 Financial Highlights

  • Net income for the third quarter of 2012 was $541,000 or $0.19 per basic and diluted common share as compared to $233,000, or $0.08 per basic and diluted share for the third quarter of 2011.

  • Total revenue for the third quarter of 2012 was $1,116,000, as compared to $1,405,000, for the third quarter of 2011.

  • Nonperforming loans declined to $433,000 or 0.40% of total loans at September 30, 2012, from $1,384,000, or 1.89% of total loans at year-end 2011, and $2,413,000, or 2.37% of total loans at September 30, 2011.

  • Total allowance for loan losses, including the allowance for undisbursed loan commitments, as a percentage of total loans was 3.51% at September 30, 2012, compared to 3.58% at December 31, 2011, and 3.71% at September 30, 2011.

  • Total loans outstanding at September 30, 2012 decreased to $63.3 million from $73.1 million at December 31, 2011, and from $77.9 million at September 30, 2011.

  • Total deposits at September 30, 2012 increased to $81.1 million from $74.3 million at December 31, 2011, and up from $76.6 million at September 30, 2011.

  • Return on Assets for the third quarter of 2012 was 2.03% and the Return on Equity was 11.79% for the same period. Year-to-date Return on Assets was 1.01% and Return on Equity was 5.91%.

  • Total risk-based capital ratio was 30.0%, Tier 1 risk-based capital ratio was 28.7%, and Tier 1 leverage ratio was 17.6% at September 30, 2012.

The year-to-date net income for 2012 was $1,062,000, or $0.37 per basic and diluted share, compared to a net loss of $637,000, or $0.22 per basic and diluted share, for the same period of 2011.

Income Statement Review

Third quarter net interest income was $887,000 compared to $1,108,000 in the third quarter of 2011. The early payoff of loans that occurred in the fourth quarter of 2011 and the first nine months of 2012 have contributed to this decline. In the third quarter of 2012, the net interest margin was 3.37% compared to 5.44% in the fourth quarter of 2011, and 4.32% for the third quarter of 2011. There has been a decline in the net interest margin due to the early payoff of loans that were on the books at higher rates.

Non-interest income was $86,000 in the third quarter of 2012, compared to $121,000 in the third quarter of 2011. Non-interest expense declined to $882,000 in the third quarter of 2012, from $966,000 in the third quarter of 2011.

Balance Sheet

"New loan demand has improved slightly during the course of the fiscal year as the economic conditions and consumer confidence has improved. The early payoff of loans has impacted our interest income however we remain focused on business development and increasing earning assets through various means," said Ms. Boeka.

Total loans decreased from a year ago to $63,309,000 at September 30, 2012, compared to $73,114,000 at December 31, 2011, and $77,858,000 at September 30, 2011.

Commercial real estate loans outstanding decreased 21.6%, or $12.6 million, from year ago levels to $45,491,000 at September 30, 2012, and comprise 71.9% of the total loan portfolio. Commercial loans were up 1.9% to $11.4 million as compared to a year ago and now represent 18.0% of the total loan portfolio.

Total deposits were $81,154,000 million at September 30, 2012, compared to $76,563,000 a year earlier. Non-interest bearing accounts decreased 8.6% to $16,773,000 million at September 30, 2012, compared to $18,349,000 million a year ago. Interest bearing accounts increased 1.3% to $34,098,000 compared to $33,664,000 a year ago. Core deposits, defined as non-interest bearing, interest bearing and savings accounts increased 4.7%, or $2,310,000 to $51,117,000 at September 30, 2012, compared to $48,807,000 million at year end and decreased 2.2% or $1,132,000 from $52,249,000 a year earlier. Certificates of deposit increased 17.9% over the year end 2011 to $30,037,000, compared to $25,473,000 million at year end and increased 23.5% from a balance of $24,314,000 a year earlier.

"Core deposits grew $2.3 million for the first nine-months of 2012, which was due to the addition of deposit production staff and the deposit gathering efforts. We are looking to add successful business development professionals to our team to assist with the planned growth of our loans and deposits," said Ms. Boeka.

Total assets were $108.4 million at quarter-end, compared to $100.4 million at year-end 2011, and $101.9 million a year earlier. Stockholders' equity was $18.7 million at quarter-end, compared to $17.6 million at year-end 2011, and $16.9 million a year earlier. The bank's book value per common share was $6.51 at quarter-end compared to $5.89 a year earlier.

Credit Quality

Nonperforming loans totaled $433,000, or 0.68% of total loans at September 30, 2012, compared to $1,384,000 or 1.89% of total loans at December 31, 2011 and $1,416,000, or 1.82% of total loans at September 30, 2011. The decrease in nonperforming loans from year-end 2011 to September 30, 2012 was $951,000.

"Our loan portfolio credit quality has improved over the past year as our customers have generally improved their operating performance that has coincided with the general improvement of the economic conditions. Our loan portfolio continues to perform well and has resulted in a sharp decline in nonperforming assets. Thus, the nonperforming loan balance has declined 69% since December 31, 2011, which was a focus of our strategy," said Ms. Boeka.

The loan loss provision declined as there was a reversal of the provision as a result of the recovery of funds for loans that were previously charged-off and the decrease in the loans outstanding. The reversal of the loan loss provision was $450,000 for the third quarter of 2012 and $763,000 for the first nine-months of 2012. The total allowance for credit losses was $2,223,000 at quarter-end, equal to 3.51% of total loans, compared to $2,616,000, or 3.58% of total loans at December 31, 2011 and $2,890,000, or 3.71% of total loans a year ago.

AUB had net recoveries of $115,000 in the third quarter of 2012 compared to net charge-offs of $26,000 in the fourth quarter of 2011 and $466,000 in the third quarter of 2011.

Company Overview

Americas United Bank (AUB) is the first Hispanic-owned bank to open its doors in California in over thirty years and has the distinction of being the largest Hispanic-owned bank based in California. Founded by a group of respected and successful business leaders (primarily from the Hispanic community), AUB is a full service commercial bank that provides business and personal banking products and services.

Americas United Bank provides a full-range of financial services, including credit and deposit products, cash management, and internet banking for businesses and high net worth individuals from its head office at 801 N. Brand Boulevard, Suite 1150, Glendale, CA 91203 and the Downey Office at 8255 Firestone Boulevard, Suite 110, Downey, CA 90241. Information on products and services may be obtained by calling (818) 637-7000 or visiting the Bank's website at www.aubank.com.

Safe Harbor Disclosure

Certain statements in this press release, including statements regarding the anticipated development and expansion of the Bank's business, and the intent, belief or current expectations of the Bank, its directors or its officers, are "forward-looking" statements (as such term is defined in the Private Securities Litigation Reform Act of 1995). Because such statements are subject to risks and uncertainties, actual results may differ materially from those expressed or implied by such forward-looking statements. These risks and uncertainties include, but are not limited to, risks related to the local and national economy, the Bank's performance and implementation of its business plans, loan performance, interest rates, and regulatory matters.

AMERICAS UNITED BANK

CONDENSED BALANCE SHEETS

(unaudited)

(in 000's, except per share data)

September 30,

December 31,

September 30,

2012

2011

2011

Cash and cash equivalents

$

2,223

$

2,393

$

2,666

Interest-earning deposits in other financial institutions

7,609

490

0

Federal funds sold

33,920

22,510

19,680

Investment securities

2,526

3,284

2,362

Loans:

Commercial

11,395

12,121

11,187

Commercial real estate

45,491

52,928

58,056

Consumer

443

450

655

SBA

5,547

6,232

6,544

Non-accrual

433

1,383

1,416

Total loans

63,309

73,114

77,858

Loans, net

61,187

70,607

75,074

Other assets

916

1,109

2,172

TOTAL ASSETS

$

108,381

$

100,393

$

101,954

Deposits

Non-interest bearing

$

16,773

$

16,550

$

18,349

Interest bearing

34,098

32,027

33,664

Savings

246

230

236

CDs over $100,000

27,832

21,706

20,385

CDs under $100,000

2,205

3,767

3,929

Total deposits

81,154

74,280

76,563

Other borrowing

8,000

8,000

8,000

Other liabilities

480

480

449

TOTAL LIABILITIES

89,634

82,760

85,012

Stockholders' equity

18,747

17,633

16,942

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY

$

108,381

$

100,393

$

101,954

Shares outstanding

2,878

2,878

2,878

Book value per common share

$

6.51

$

6.13

$

5.89

AMERICAS UNITED BANK

CONDENSED INCOME STATEMENTS

(unaudited)

(in 000's, except per share data)

Three Months Ended

Year-To-Date

September 30,

December 31,

September 30,

September 30,

September 30,

2012

2011

2011

2012

2011

Interest Income

$

1,030

$

1,513

$

1,284

$

3,272

$

4,334

Interest Expense

143

163

176

444

605

Net interest income

887

1,350

1,108

2,828

3,729

Provision for loan losses

(450

)

(249

)

30

(763

)

1,533

Net interest income after

provision for loan losses

1,337

1,599

1,078

3,591

2,196

Non-interest income

86

85

121

225

264

Non-interest expenses

882

1,011

966

2,753

3,096

Income before income taxes

541

673

233

1,063

(636

)

Provision for income taxes

1

1

NET INCOME

$

541

$

673

$

233

$

1,062

$

(637

)

Earnings (Loss) per common Share:

Basic & Diluted

$

0.19

$

0.23

$

0.08

$

0.37

($0.22

)

AMERICAS UNITED BANK

ADDITIONAL FINANCIAL INFORMATION

(Dollars in thousands except per share amounts) (unaudited)

Quarter Ended

Quarter Ended

Quarter Ended

PERFORMANCE MEASURES AND RATIOS

September 30, 2012

Dec. 31, 2011

September 30, 2011

Return on average common equity

11.79

%

15.75

%

5.50

%

Return on average assets

2.03

%

2.66

%

0.89

%

Efficiency ratio

90.65

%

70.45

%

78.60

%

Net interest margin

3.37

%

5.44

%

4.32

%

Quarter Ended

Quarter Ended

Quarter Ended

AVERAGE BALANCES

September 30, 2012

Dec. 31, 2011

September 30, 2011

Average assets

$

106,466

$

101,326

$

104,431

Average earning assets

105,340

99,265

102,588

Average total loans

64,335

76,629

79,577

Average deposits

79,634

75,785

79,063

Average equity

18,362

17,094

16,956

Average common equity

18,362

17,094

16,956

EQUITY ANALYSIS

September 30, 2012

Dec. 31, 2011

September 30, 2011

Total equity

$

18,746

$

17,633

$

16,942

Total common equity

18,746

17,633

16,942

Common stock outstanding

2,878

2,878

2,878

Book value per common share

$

6.51

$

6.13

$

5.89

ASSET QUALITY

September 30, 2012

Dec. 31, 2011

September 30, 2011

Nonperforming loans (NPLs)

$

433