Americas United Bank Earns $129,000 In First Quarter

Americas United Bank (OTCBB: AUNB) today reported net income of $129,000 in the first quarter of 2012 (1Q12), compared to a net loss of $1,194,000 in the first quarter a year ago (1Q11).

“Strong operating results which included improved credit quality, improved cost controls, and deposit portfolio restructuring contributed to improved earnings for the first quarter compared to the first quarter a year ago,” stated Adriana M. Boeka, President and Chief Executive Officer. “Our changing deposit mix reflects continuing growth in customer relationships and determined efforts of our staff.”

1Q12 Financial Highlights
  • Net income applicable to common stockholders was $129,000, or $0.04 per basic and diluted common share.
  • Core deposits increased by 4.8% compared to year end 2011.
  • Nonperforming loans declined to $946,000, or 1.32% of total loans at March 31, 2012, from $1,384,000 at year end 2011.
  • The total allowance for loan losses as a percentage of total loans was 3.84% at March 31, 2012, compared to 3.58% at December 31, 2011.
  • Total risk-based capital ratio was 25.80%, Tier 1 risk-based capital ratio was 24.52%, and Tier 1 leverage ratio was 17.31% at March 31, 2012.

In 1Q12, net income applicable to stockholders was $129,000, or $0.04 per diluted share, compared to a net loss applicable to stockholders of $1,194,000, or -$0.41 per diluted share, in 1Q11.

Credit Quality

Nonperforming loans totaled $946,000, or 1.32% of total loans at March 31, 2012, compared to $1,384,000 or 1.89% of total loans three months earlier and $922,000, or 0.99% of total loans a year ago. During the first quarter of 2012, the reduction in nonperforming loans was primarily due to two loans that migrated out of nonperforming due in part to one being reimbursed by the SBA as it was guaranteed and one being due to sale of the business that netted the bank proceed from the sale. Thus, the net decrease as compared to the prior quarter-end is approximately $437,000.

“The loan portfolio continues to perform well with lower levels of delinquencies. As of March 31, 2012, less than 1.32% of total loans were nonperforming,” said Ms. Boeka.

The loan loss provision was -$30,000 in 1Q12 compared to -$249,000 in 4Q11 and $1,467,000 in 1Q11. The allowance for loan losses totaled $2,621,000 at quarter-end, equal to 3.84% of total loans, compared to 3.58% at December 31, 2011 and 3.97% a year ago.

AUB had net recoveries of $168,000 in 1Q12 compared to net charge-offs of $979,000 in 4Q11 and $80,000 in 1Q11.

Income Statement Review

First quarter net interest income was $993,000 compared to $1,323,000 in 1Q11. In 1Q12, the net interest margin was 3.92% compared to 5.19% in 4Q11 and 4.86% in 1Q11.

Non-interest income was $83,000 in 1Q12, compared to $69,000 in 1Q11.

Lower costs were primarily responsible for non-interest expenses declining to $977,000, in 1Q12 from $1,119,000 in 1Q11.

Balance Sheet

New loan demand continues to remain somewhat soft, particularly in the commercial and SBA loan sectors. There has also been the revision of our balance sheet mix that included managing some loans out of the portfolio along with some early loan payoffs. As a result, total loans decreased from a year ago to $71,693,000 at March 31, 2012, compared to $93,471,000 at March 31, 2011.

Commercial real estate loans outstanding decreased 21.3%, or $14.0 million, from year ago levels to $51,534,000 at March 31, 2012, and comprise 71.9% of the total loan portfolio. Commercial loans were down 28.9% compared to a year ago and now represent 17.4% of the total loan portfolio.

Total deposits were $78,199,000 million at March 31, 2012, compared to $80,172,000 a year earlier. Non-interest bearing accounts increased 0.96% to $18,676,000 million at March 31, 2012, compared to $18,498,000 million a year ago. Interest bearing accounts decreased 8.68% to $32,469,000 million compared to $35,554,000 a year ago. Core deposits, defined as non-interest bearing, interest bearing and savings accounts increased 4.79% to $51,145,000 at March 31, 2012, compared to $48,807,000 million at year end and decreased 5.38% or $2,907,000 from $54,052,000 a year earlier. Certificates of deposit increased 6.21% over the year end 2011 to $27,054,000, compared to $25,473,000 million at year end and increased 3.58% from a balance of $26,120,000 a year earlier.

“Core deposits grew $2.3 million for the quarter, which is largely attributable to the continued success of our recent deposit transitional efforts,” said Ms. Boeka.

Total assets were $104.5 million at quarter-end, compared to $104.9 million a year earlier. Stockholders’ equity was $17.8 million at quarter-end, compared to $16.3 million a year earlier and book value per common share was $6.18 at quarter-end compared to $5.67 a year earlier.

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)
 
 
March 31, December 31, March 31,
2012 2011 2011
 
Cash and cash equivalents $ 1,866 $ 2,393 $ 3,226
Interest-earning deposits in other financial institutions 1,636 490
Federal funds sold 27,835 22,510 8,170
Investment securities 3,086 3,284 1,140
Loans:
Commercial 12,477 12,121 17,547
Commercial real estate 51,534 52,928 65,514
Consumer 450 450 1,730
SBA 6,286 6,232 7,758
Non-accrual 946 1,383 922
Total loans 71,693 73,114 93,471
Loans, net 69,063 70,607 89,891
Other assets 978 1,109 2,476
TOTAL ASSETS $ 104,464 $ 100,393 $ 104,903
 
Deposits

 

 

 
Non-interest bearing

$
18,676

$
16,550

$
18,498
Interest bearing 32,237 32,027 35,312
Savings 232 230 242
CDs over $100,000 24,679 23,305 23,699
CDs under $100,000 2,375 2,168 2,421
Total deposits 78,199 74,280 80,172
Other borrowing 8,000 8,000 8,000
Other liabilities 477 480 421
TOTAL LIABILITIES 86,676 82,760 88,593
 
Stockholders' equity 17,788 17,633 16,310
 
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 104,464 $ 100,393 $ 104,903
 
Shares outstanding 2,878 2,878 2,878
 
Book value per common share $ 6.18 $ 6.13 $ 5.67
   
AMERICAS UNITED BANK
CONDENSED INCOME STATEMENTS
(unaudited)
(in 000's, except per share data)
 
Three Months Ended
March 31, December 31, March 31,
2012 2011 2011
 
Interest Income $ 1,146 $ 1,513 $ 1,559
Interest Expense 153 163 236
Net interest income 993 1,350 1,323
Provision for loan losses (30 ) (249 ) 1,467
Net interest income after
provision for loan losses 1,023 1,599 (144 )
Non-interest income 83 85 69
Non-interest expenses 977 1,011 1,119
 
Income before income taxes 129 673 (1,194 )
Provision for income taxes

-

-

-
 
NET INCOME $ 129 $ 673 $ (1,194 )
 
Earnings (Loss) per common Share:
Basic & Diluted $ 0.04 $ 0.23 ($0.41 )
     
AMERICAS UNITED BANK
ADDITIONAL FINANCIAL INFORMATION
(Dollars in thousands except per share amounts) (unaudited)
Quarter Ended Quarter Ended Quarter Ended
PERFORMANCE MEASURES AND RATIOS Mar. 31, 2012 Dec. 31, 2011 Mar. 31, 2011
Return on average common equity 2.19 % 3.91 % -20.26 %
Return on average assets 0.38 % 1.91 % -3.23 %
Efficiency ratio 90.80 % 70.45 % 80.39 %
Net interest margin 3.92 % 5.19 % 4.86 %
Quarter Ended Quarter Ended Quarter Ended
AVERAGE BALANCES Mar. 31, 2012 Dec. 31, 2011 Mar. 31, 2011
Average assets $ 102,599 $ 105,905 $ 110,915
Average earning assets 101,441 104,033 108,915
Average total loans 72,157 86,311 98,187
Average deposits 76,452 80,093 84,171
Average equity 17,691 17,230 17,681
Average common equity 17,671 17,230 17,681
 
EQUITY ANALYSIS Mar. 31, 2012 Dec. 31, 2011 Mar. 31, 2011
Total equity $ 17,788 $ 17,633 $ 16,310
Total common equity 17,788 17,633 16,310
 
Common stock outstanding 2,878 2,878 2,878
Book value per common share $ 6.18 $ 6.13 $ 5.67
 
ASSET QUALITY Mar. 31, 2012 Dec. 31, 2011 Mar. 31, 2011
Nonperforming loans (NPLs) $ 946 $ 1384 $ 922
Nonperforming loans/total loans 1.32 % 1.89 % 0.99 %
REO and repossessed assets $ 0 $ 0 $ 1036
Nonperforming assets, net 946 1384 1958
Nonperforming assets/total assets 0.91 % 1.38 % 1.87 %
Net loan charge-offs in the quarter $ -168 $ 979 $ 80
Net charge-offs in the quarter/total loans -0.23 % 1.34 % 0.09 %
 
Allowance for loan losses $ 2,621 $ 2,484 $ 3,566
Plus: Allowance for undisbursed loan commitments 132 132 142
Total allowance for credit losses $ 2,753 $ 2,616 $ 3,708
Total allowance for loan losses/total loans 3.84 % 3.58 % 3.97 %
Total allowance for loan losses/nonperforming loans 277.06 % 179.48 % 386.77 %
 
CAPITAL RATIOS
Tier 1 leverage ratio 17.31 % 17.38 % 14.68 %
Tier 1 risk-based capital ratio 24.52 % 23.72 % 16.63 %
Total risk-based capital ratio 25.80 % 25.00 % 17.92 %
 
INTEREST SPREAD ANALYSIS Mar. 31, 2012 Dec. 31, 2011 Mar. 31, 2011
Yield on interest-bearing deposits with other banks 0.80 % 0.89 % 0.00 %
Yield on total loans 6.06 % 9.96 % 6.68 %
Yield on investments 0.42 % 0.47 % 0.68 %
Yield on earning assets 4.42 % 7.91 % 6.31 %
 
Cost of deposits 0.62 % 0.69 % 0.90 %
Cost of FHLB advances 1.38 % 1.38 % 1.47 %
Cost of interest-bearing liabilities 0.80 % 0.90 % 1.15 %

Copyright Business Wire 2010

More from Press Releases

NFL Pushes for Regulation Following Supreme Court's Sports Gambling Ruling

NFL Pushes for Regulation Following Supreme Court's Sports Gambling Ruling

21st Century Fox Scoops Up Local News Stations

21st Century Fox Scoops Up Local News Stations

Walmart CEO: 'We Are Transforming Globally' With Flipkart

Walmart CEO: 'We Are Transforming Globally' With Flipkart

Three-Part FREE Webinar Series

Three-Part FREE Webinar Series

March 24 Full-Day Course Offering: Professional Approach to Trading SPX

March 24 Full-Day Course Offering: Professional Approach to Trading SPX