United American Bank (OTCBB: UABK), reported total assets of $264.9 million at September 30, 2011 as compared to $343.3 million at September 30, 2010. The bank finished fiscal 2010 with total assets of $316.2 million.

United American Bank (UAB) reported total loans outstanding at September 30, 2011 of $218.6 million, as compared to $277.8 million reported at the end of the third quarter of the prior year. Loans outstanding at December 31, 2010 were $261.4 million.

The bank reported total deposits of $254.6 million as of September 30, 2011, compared to total deposits of $314.8 at September 30, 2010. Total deposits at December 31, 2010 were $300.7 million.

UAB reported a net loss for the third quarter of $687,187 as compared to a net loss of $1,148,510 for the third quarter of the prior year, and a loss of $14.2 million for the fourth quarter of 2010. The provision for loan loss was $600,000, and $1,500,000 for the third quarters ended September 30, 2011 and 2010, respectively.

New $10 Million Capital Investment

UAB and ATBancorp of Dubuque, Iowa, announced on October 31, 2011, the completion of ATBancorp’s initial $10.0 million investment in UAB’s capital stock. The transaction received regulatory approval from the Federal Reserve Board and California Department of Financial Institutions. In addition, the United States Department of the Treasury, as a shareholder of UAB, voted to approve the transaction. With completion of the initial investment, UAB’s capital ratios qualify as “well capitalized” as calculated under customary bank regulatory standards. UAB’s capital had been diminished in recent years by the increase in non-performing loans resulting from poor economic conditions in the hard-hit San Francisco-area commercial real estate market.

UAB President and CEO John Schrup stated, “We at United American Bank are pleased that ATBancorp has provided the capital to stabilize the bank and has committed its depth of resources and expertise to help us build a bright, new future along with the businesses and communities we serve.”

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 quality 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 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 Quarter Quarter Quarter
(dollars in thousands) Ending Ending Change     Ending Change    
End of Period   9/30/2011     9/30/2010       $     %     6/30/2011       $     %
 
Total Assets $ 264,860 $ 343,256 $ (78,396 ) -22.8 % $ 285,269 $ (20,409 ) -7.2 %
Total Loans 218,645 277,841 (59,196 ) -21.3 % 240,314 (21,669 ) -9.0 %
Total Deposits 254,592 314,717 (60,125 ) -19.1 % 274,343 (19,751 ) -7.2 %
Allowance for Loan Losses 8,567 7,376 1,191 16.1 % 7,716 851 11.0 %
Shareholders' Equity 9,313 28,671 (19,358 ) -67.5 % 9,971 (658 ) -6.6 %
 
Quarter Average
 
Total Assets 276,608 354,867 (78,259 ) -22.1 % 295,514 $ (18,906 ) -6.4 %
Total Loans 227,591 280,300 (52,709 ) -18.8 % 252,881 (25,290 ) -10.0 %
Total Deposits 265,886 325,248 (59,362 ) -18.3 % 280,659 (14,773 ) -5.3 %
Shareholders' Equity 9,723 29,744 (20,021 ) -67.3 % 13,828 (4,105 ) -29.7 %
 
OPERATIONS QUARTER TO DATE
 
Interest Income $ 3,031,082 $ 4,019,917 $ (988,835 ) -24.6 % $ 3,156,544 $ (125,462 ) -4.0 %
Interest Expense   400,336     608,538       (208,202 ) -34.2 %   458,031   (57,695 ) -12.6 %
Net Interest Income 2,630,746 3,411,379 (780,633 ) -22.9 % 2,698,513 (67,767 ) -2.5 %
 
Provision for loan losses 600,000 1,500,000 (900,000 ) -60.0 % 3,020,000 (2,420,000 ) -80.1 %
Noninterest Income 115,111 140,793 (25,682 ) -18.2 % 138,157 (23,046 ) -16.7 %
Noninterest Expense 2,833,044 3,203,082 (370,038 ) -11.6 % 3,863,759 (1,030,715 ) -26.7 %
Income Tax Expense (Benefit)   -     (2,400 ) 2,400   -   -
Net Income $ (687,187 ) $ (1,148,510 ) 461,323 $ (4,047,089 ) 3,359,902 -83.0 %
 
RATIOS:
 
Net Interest Margin 3.88 % 4.01 % 3.72 %
Efficiency Ratio 125.00 % 132.00 % 243.00 %
 
ALLL/Gross Loans 3.92 % 2.65 % 3.21 %
Nonperforming/Total Loans 14.13 % 7.18 % 13.16 %
Average Capital/Average Assets 3.51 % 8.38 % 4.68 %

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