United American Bank (OTCBB:UABK) reported net income for the first quarter of $320,000 as compared to a net loss of $70,000 for the first quarter of the prior year, and a loss of $3.6 million for the fourth quarter of 2009. The fourth quarter of 2009 was impacted by a provision for loan loss of $1.3 million, a write-down of bank-owned real estate of $1.2 million, and an income tax valuation allowance of $1.0 million. “We have met the challenges posed by the extraordinary recession in 2009, and are now poised to report better performance in 2010 as reflected in our results for the first quarter of 2010,” said John Schrup, President and CEO of United American Bank. The Bank reported total assets of $397.2 million at March 31, 2010, as compared to $378.1 million at March 31, 2009. The increase in total assets represents growth of $19.1 million, or 5.0 percent over the same date a year ago. The Bank reported total loans outstanding of $280.3 million at March 31, 2010, as compared to $274.5 million reported at the end of the first quarter of the prior year. Loans outstanding represent an increase of $5.7 million or 2.1 percent compared to loans outstanding as of March 31, 2009. The Bank reported total deposits of $362.3 million as of March 31, 2010, compared to total deposits of $320.4 million at March 31, 2009. The increase in deposits represents growth of $41.9 million, or 13.1 percent. About United American Bank United American Bank is a full-service commercial bank headquartered in San Mateo, California. The bank has offices in San Mateo, Sunnyvale, Half Moon Bay, and Redwood City. The bank is dedicated to providing superior banking and financial services to businesses, professionals and individuals who prefer a high level of personalized client service and management. For more information, visit United American Bank on the web at www.UnitedAmericanBank.com or call 650-579-1500. Safe Harbor Certain matters discussed in this press release constitute forward looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward looking statements relate to the bank’s current expectations regarding future operating results and the growth in loans, deposits, and assets. These forward looking statements are subject to certain risks and uncertainties that could cause the actual results, or performance to differ materially from those expressed, suggested or implied by the forward looking statements.
These risks and uncertainties include, but are not limited to: (1) the impact on the bank’s performance from changes in interest rates, local and national economic conditions, and the number of financial services providers, (2) the banks ability to continue the current rate of growth, (3) the banks ability to increase net interest income (4) the quality of the loan portfolio and (5) changes in government regulations.
|(dollars in thousands)||Change||Change|
|End of Period||3/31/2010||3/31/2009||$||%||12/31/2009||$||%|
|Allowance for Loan Losses||6,726||4,653||2,073||44.6||%||7,835||(1,109||)||-14.2||%|
|OPERATIONS QUARTER TO DATE|
|Net Interest Income||3,024,206||2,382,191||642,015||27.0||%||2,662,596||361,610||13.6||%|
|Provision for loan losses||300,000||100,000||200,000||200.0||%||1,400,000||(1,100,000||)||-78.6||%|
|Income Tax Expense (Benefit)||37,700||(65,500||)||103,200||1,127,529||(1,089,829||)|
|Net Interest Margin||3.24||%||3.00||%||2.62||%|
|Average Capital/Average Assets||8.59||%||9.58||%||8.39||%|