Americas United Bank Earns $392,000 In Second Quarter

Americas United Bank (OTCBB: AUNB) today reported net income of $392,000 in the second quarter of 2012 (2Q12), compared to net income of $325,000 in the second quarter a year ago (2Q11).

“We continue to improve and streamline our operation and our operating results reflect the results of that effort. Our focus is on providing value to our shareholders. We have improved our credit quality, lowered our operating costs, and added core deposit relationships and this has favorably contributed to the improvement in our results for the quarter and the year,” stated Adriana M. Boeka, President and Chief Executive Officer.

2Q12 Financial Highlights
  • Net income for the second quarter of 2012 was $392,000 or $0.14 per basic and diluted common share as compared to $325,000, or $0.11 per basic and diluted share for the second quarter of 2011.
  • Nonperforming loans declined to $534,000, or 0.79% of total loans at June 30, 2012, from $1,384,000, or 1.89% of total loans at year-end 2011, and $1,050,000, or 1.28% of total loans at June 30, 2011.
  • Total allowance for loan losses, including the allowance for undisbursed loan commitments, as a percentage of total loans was 3.80% at June 30, 2012, compared to 3.58% at December 31, 2011, and 4.05% at June 30, 2011.
  • Total loans outstanding at June 30, 2012 decreased to $67.3 million from $73.1 million at December 31, 2011, and from $82.1 million at June 30, 2011.
  • Total deposits at June 30, 2012 increased to $80.2 million from $74.3 million at December 31, 2011, and down from $80.5 million at June 30, 2011.
  • Total risk-based capital ratio was 28.1%, Tier 1 risk-based capital ratio was 26.8%, and Tier 1 leverage ratio was 17.3% at June 30, 2012.

The year-to-date net income for 2012 was $521,000, or $0.18 per diluted share, compared to a net loss of $870,000, or $0.30 per diluted share, for the same period of 2011.

Credit Quality

Nonperforming loans totaled $534,000, or 0.79% of total loans at June 30, 2012, compared to $1,384,000 or 1.89% of total loans at December 31, 2011 and $1,050,000, or 1.28% of total loans at June 30, 2011. The decrease in nonperforming loans from year-end 2011 to June 30, 2012 was $850,000.

“Our loan portfolio credit quality has improved over the past year and the portfolio continues to perform well. The nonperforming loan balance has declined 61% since December 31, 2011, and we have focused on mitigating impact to the bank from these loans,” said Ms. Boeka.

The loan loss provision declined as there was a reversal of the provision as a result of the recovery of funds for loans that were previously charged-off and the decrease in the loans outstanding. The reversal of the loan loss provision was $283,000 for the second quarter of 2012 and $313,000 for the first six-months of 2012. The total allowance for credit losses was $2,557,000 at quarter-end, equal to 3.80% of total loans, compared to $2,616,000, or 3.58% of total loans at December 31, 2011 and $3,326,000, or 4.05% of total loans a year ago.

AUB had net recoveries of $87,000 in the second quarter of 2012 compared to net charge-offs of $979,000 in the fourth quarter of 2011 and $407,000 in the second quarter of 2011.

Income Statement Review

Second quarter net interest income was $947,000 compared to $1,298,000 in the second quarter of 2011. The early payoff of loans that occurred in 2011 and the first half of 2012 have contributed to this decline. In the second quarter of 2012, the net interest margin was 3.64% compared to 5.44% in the fourth quarter of 2011, and 4.96% for the second quarter of 2011. There has been a decline in the net interest margin due to the early payoff of loans that were on the books at higher rates.

Non-interest income was $57,000 in the second quarter of 2012, compared to $74,000 in the second quarter of 2011. Non-interest expense declined to $895,000 in the second quarter of 2012, from $1,011,000 in the second quarter of 2011.

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 $67,269,000 at June 30, 2012, compared to $73,114,000 at December 31, 2011, and $82,052,000 at June 30, 2011.

Commercial real estate loans outstanding decreased 18.4%, or $11.2 million, from year ago levels to $49,437,000 at June 30, 2012, and comprise 73.5% of the total loan portfolio. Commercial loans were down 8.5% to $10.8 million as compared to a year ago and now represent 16.1% of the total loan portfolio.

Total deposits were $80,212,000 million at June 30, 2012, compared to $80,538,000 a year earlier. Non-interest bearing accounts decreased 7.2% to $17,937,000 million at June 30, 2012, compared to $19,339,000 million a year ago. Interest bearing accounts decreased 3.5% to $33,534,000 compared to $34,738,000 a year ago. Core deposits, defined as non-interest bearing, interest bearing and savings accounts increased 5.5% to $51,471,000 at June 30, 2012, compared to $48,807,000 million at year end and decreased 4.8% or $2,606,000 from $54,077,000 a year earlier. Certificates of deposit increased 12.8% over the year end 2011 to $28,741,000, compared to $25,473,000 million at year end and increased 8.6% from a balance of $26,461,000 a year earlier.

“Core deposits grew $2.7 million for the first six-months of 2012, which is largely attributable to the addition of deposit production staff and the deposit gathering efforts. We continue to seek successful business development professionals to assist with the planned growth of our loans and deposits,” said Ms. Boeka.

Total assets were $106.9 million at quarter-end, compared to $100.4 million at year-end 2011, and $105.6 million a year earlier. Stockholders’ equity was $18.2 million at quarter-end, compared to $17.6 million at year-end 2011, and $16.7 million a year earlier. The bank’s book value per common share was $6.32 at quarter-end compared to $5.79 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)
           
 
June 30, December 31, June 30,
2012 2011 2011
 
Cash and cash equivalents $ 2,629 $ 2,393 $ 3,419
Interest-earning deposits in other financial institutions 4,871 490 0
Federal funds sold 30,770 22,510 19,970
Investment securities 2,883 3,284 1,098
Loans:
Commercial 10,842 12,121 11,847
Commercial real estate 49,437 52,928 60,605
Consumer 416 450 956
SBA 6,040 6,232 7,594
Non-accrual 534 1,383 1,050
Total loans 67,269 73,114 82,052
Loans, net 64,803 70,607 78,837
Other assets 908 1,109 2,296
TOTAL ASSETS $ 106,864 $ 100,393 $ 105,620
 
Deposits
Non-interest bearing $ 17,937 $ 16,550 $ 19,339
Interest bearing 33,310 32,027 33,962
Savings 224 230 776
CDs over $100,000 26,251 23,305 24,238
CDs under $100,000 2,490 2,168 2,223
Total deposits 80,212 74,280 80,538
Other borrowing 8,000 8,000 8,000
Other liabilities 460 480 410
TOTAL LIABILITIES 88,672 82,760 88,948
 
Stockholders' equity 18,192 17,633 16,672
 
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 106,864 $ 100,393 $ 105,620
 
Shares outstanding 2,878 2,878 2,878
 
Book value per common share $ 6.32 $ 6.13 $ 5.79
 

AMERICAS UNITED BANK
CONDENSED INCOME STATEMENTS
(unaudited)
(in 000's, except per share data)
                     

Three Months Ended
Year-To-Date
June 30, December 31, June 30, June 30, June 30,
2012 2011 2011 2012 2011
 
Interest Income $ 1,095 $ 1,513 $ 1,491 2,241 $ 3,050
Interest Expense 148 163 193 301 429
Net interest income 947 1,350 1,298 1,940 2,621
Provision for loan losses (283 ) (249 ) 36 (313 ) 1,503
Net interest income after
provision for loan losses 1,230 1,599 1,262 2,253 1,118
Non-interest income 57 85 74 139 143
Non-interest expenses 895 1,011 1,011 1,870 2,130
 
Income before income taxes 392 673 325 522 (869 )
Provision for income taxes 1 1
 
NET INCOME $ 392 $ 673 $ 325 $ 521 $ (870 )
 
Earnings (Loss) per common Share:
Basic & Diluted $ 0.14 $ 0.23 $ 0.11 $ 0.18 ($0.30 )
 

AMERICAS UNITED BANK
ADDITIONAL FINANCIAL INFORMATION
(Dollars in thousands except per share amounts) (unaudited)
 
    Quarter Ended     Quarter Ended     Quarter Ended
PERFORMANCE MEASURES AND RATIOS June 30, 2012 Dec. 31, 2011 June 30, 2011
Return on average common equity 8.77 % 15.75 % 7.89 %
Return on average assets 1.49 % 2.66 % 1.22 %
Efficiency ratio 89.14 % 70.45 % 73.69 %
Net interest margin 3.64 % 5.44 % 4.96 %
 
Quarter Ended Quarter Ended Quarter Ended
AVERAGE BALANCES June 30, 2012 Dec. 31, 2011 June 30, 2011
Average assets $ 105,183 $ 101,326 $ 106,357
Average earning assets 104,124 99,265 104,773
Average total loans 68,720 76,629 90,450
Average deposits 78,828 75,785 81,456
Average equity 17,888 17,094 16,487
Average common equity 17,888 17,094 16,487
 
EQUITY ANALYSIS June 30, 2012 Dec. 31, 2011 June 30, 2011
Total equity $ 18,192 $ 17,633 $ 16,672
Total common equity 18,192 17,633 16,672
 
Common stock outstanding 2,878 2,878 2,878
Book value per common share $ 6.32 $ 6.13 $ 5.79
 
ASSET QUALITY June 30, 2012 Dec. 31, 2011 June 30, 2011
Nonperforming loans (NPLs) $ 534 $ 1,384 $ 1,050
Nonperforming loans/total loans 0.79 % 1.89 % 1.28 %
REO and repossessed assets $ 0 $ 0 $ 1012
Nonperforming assets, net $ 534 $ 1,384 $ 2,062
Nonperforming assets/total assets 0.50 % 1.38 % 1.95 %
Net loan charge-offs in the quarter $ -87 $ 979 $ 407
Net charge-offs in the quarter/total loans -0.13 % 1.34 % 0.50 %
 
Allowance for loan losses $ 2,425 $ 2,484 $ 3,194
Plus: Allowance for undisbursed loan commitments $ 132 $ 132 $ 132
Total allowance for credit losses $ 2,557 $ 2,616 $ 3,326
Total allowance for loan losses/total loans 3.80 % 3.58 % 4.05 %
Total allowance for loan losses/nonperforming loans 454.12 % 179.48 % 304.19 %
 
CAPITAL RATIOS
Tier 1 leverage ratio 17.27 % 17.38 % 15.65 %
Tier 1 risk-based capital ratio 26.80 % 23.72 % 20.19 %
Total risk-based capital ratio 28.08 % 25.00 % 21.48 %
 
INTEREST SPREAD ANALYSIS June 30, 2012 Dec. 31, 2011 June 30, 2011
Yield on interest-bearing deposits with other banks 0.64 % 0.89 % 0.00 %
Yield on total loans 6.29 % 9.96 % 6.72 %
Yield on investments 0.38 % 0.47 % 0.41 %
Yield on earning assets 4.26 % 7.91 % 5.81 %
 
Cost of deposits 0.60 % 0.69 % 0.80 %
Cost of FHLB advances 1.38 % 1.38 % 1.38 %
Cost of interest-bearing liabilities 0.78 % 0.90 % 1.05 %

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