Americas United Bank (OTCQB: AUNB) reported unaudited results and a net profit of $3,223,000, or $1.12 per basic share for the fourth quarter and $3,934,000, or $1.37 per basic share for the year-ended December 31, 2013. Profit for the quarter ended December 31, 2013 and fiscal year 2013 was significantly impacted by the Bank’s elimination of the valuation allowance on its Deferred Tax Asset. Pretax income for the quarter was $171,000 compared to $376,000 in the fourth quarter of 2012. Net profit for the year ended December 31, 2013 was $3,934,000, or $1.37 per basic share, compared to $1,847,000, or $0.64 per basic share for the 2012 fiscal year.
In 2006, the Bank established a valuation allowance against its deferred tax asset due to its operating losses and uncertainty about its ability to utilize its tax loss carry forwards. The deferred tax asset continued to increase in subsequent years from 2007 to 2011, due to additional losses. In 2012, following a series of successive quarterly profits, and based on its expectation for future earnings the Bank reversed $409,000 of its then $4,657,000 million valuation allowance. This quarter, the Bank achieved its eleventh consecutive quarterly profit and has exceeded its earnings projections for 2013. Based on this information, the Bank has determined that it “more likely than not” will be able to fully utilize its tax loss carry forward and determined that it was appropriate to reverse a significant portion of the remaining $4,234,000 million deferred tax asset valuation allowance by recording a credit to tax expense during the quarter of $2,997,000.
Core earnings for the Company continued to improve this quarter. The net interest margin increased from 3.36% in the third quarter of 2013 to 3.59% in the fourth quarter of 2013. Average earning assets increased $805,000 compared to the third quarter of this year, the increase in the net interest margin caused net interest income to increase $73,000, or 7.4% on a third quarter to fourth quarter comparison. Compared to the same quarter a year ago, the average earning assets increased $6.7 million, the net interest margin increased from 3.27% to 3.59% and the net interest income increased $149,000, or 16.5%.