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.

BALANCE SHEET   QuarterEnding   QuarterEnding       QuarterEnding    
(dollars in thousands) Change     Change    
End of Period   3/31/2010     3/31/2009     $   %     12/31/2009     $   %  
 
Total Assets $ 397,167 $ 378,105 $ 19,062 5.0 % $ 401,461 $ (4,294 ) -1.1 %
Total Loans 280,273 274,538 5,735 2.1 % 283,715 (3,442 ) -1.2 %
Total Deposits 362,323 320,413 41,910 13.1 % 359,019 3,304 0.9 %
Allowance for Loan Losses 6,726 4,653 2,073 44.6 % 7,835 (1,109 ) -14.2 %
Shareholders' Equity 31,652 36,945 (5,293 ) -14.3 % 31,318 334 1.1 %
 
Quarter Average
 
Total Assets 396,281 336,698 59,583 17.7 % 417,057 $ (20,776 ) -5.0 %
Total Loans 285,746 274,506 11,240 4.1 % 285,277 469 0.2 %
Total Deposits 357,121 282,238 74,883 26.5 % 367,695 (10,574 ) -2.9 %
Shareholders' Equity 34,006 32,263 1,743 5.4 % 35,004 (998 ) -2.9 %
 
OPERATIONS QUARTER TO DATE
 
Interest Income $ 4,231,726 $ 4,241,170 $ (9,444 ) -0.2 % $ 4,369,150 $ (137,424 ) -3.1 %
Interest Expense   1,207,520     1,858,979     (651,459 ) -35.0 %   1,706,554   (499,034 ) -29.2 %
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 %
Noninterest Income 299,318 78,195 221,123 282.8 % 186,451 112,867 60.5 %
Noninterest Expense 2,665,415 2,495,481 169,934 6.8 % 3,962,152 (1,296,737 ) -32.7 %
Income Tax Expense (Benefit)   37,700     (65,500 ) 103,200   1,127,529   (1,089,829 )
Net Income $ 320,409   $ (69,595 ) 390,004 $ (3,640,634 ) 3,961,043 -108.8 %
 
RATIOS:
 
Net Interest Margin 3.24 % 3.00 % 2.62 %
Efficiency Ratio 89.23 % 105.49 % 188.21 %
 
ALLL/Gross Loans 2.40 % 1.69 % 2.76 %
Nonperforming/Total Loans 5.32 % 1.66 % 6.51 %
Average Capital/Average Assets 8.59 % 9.58 % 8.39 %

Copyright Business Wire 2010

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