Americas United Bank Announces First Quarter 2015 Results

GLENDALE, Calif.--(BUSINESS WIRE)-- Americas United Bank (OTCQB: AUNB) today announced financial results for the first quarter ended March 31, 2015, with income of $1,058,066, or $0.37 per basic share. Total assets at period end were $165.4 million, and the Bank’s equity capital was $25.5 million.

“We are pleased to report that Americas United Bank continued its trend of successive, quarterly profitability in the first quarter of 2015,” said Adriana M. Boeka, the Bank’s President and Chief Executive Officer.

Boeka continued, “We continue to focus on increasing the Bank’s earning assets and achieving greater capital deployment and profitability. While this quarter’s earnings were positively impacted by the recoveries of previously charged-off loans, core profitability continues to show sequential growth and asset quality remains strong. Americas United Bank is on a firm footing for expansion.”

Financial Performance

The Bank’s net income for the first quarter ending March 31, 2015 was $1,058,066, or $0.37 per basic share, compared to $186,575, or $0.06 per basic share in the previous quarter ending December 31, 2014, and $110,941, or $0.04 per basic share, in first quarter 2014. Net income was favorably impacted by recoveries of previously charged-off loans.

Total assets at March 31, 2015 were $165.4 million, up $4.2 million from December 31, 2014, and $3.6 million from March 31, 2014. The Bank’s equity capital was $25.5 million at March 31, 2015, compared to $24.4 million at December 31, 2014 and $23.7 million at quarter-end 2014.

Net interest income in first quarter 2015 was $1,267,218, compared to $1,293,379 in fourth quarter 2014 and $1,045,086 in last year’s quarter. The year-over-year increase was mainly due to deployment of the Bank’s liquidity into earning assets such as loans, securities, and time deposits at other banks.

Net interest margin in first quarter 2015 was 3.27%, compared to 3.34% in the previous quarter and 3.64% in first quarter 2014. Comparisons reflect additional liquidity in last year’s period in the form of customer deposits from the Lancaster branch acquisition. This additional liquidity of $43 million in first quarter 2014 has been subsequently deployed over the course of the succeeding quarters. Although there has been loan growth, declining asset yields have served to offset the earning-asset mix of the last three quarters, resulting in a declining net interest margin.

Noninterest income was $79,830 in first quarter 2015, compared to $195,940 in fourth quarter 2014 and $124,720 in first quarter 2014. The reduction in noninterest income reflects SBA loan sales in the comparable periods. Noninterest expense increased slightly to $1,168,263 from $1,133,881 in the previous quarter and $980,779 last year due to higher overhead costs reflecting the addition of operating expenses for our newest full-service branch in Lancaster.

Commercial Banking

The Bank’s loans totaled $108.0 million at March 31, 2015, compared to $109.8 million at December 31, 2014, and $90.3 million at March 31, 2014. The year-over-year increase was due to the addition of new commercial real estate loans. Total deposits grew to $135.2 million at March 31, 2015, from $132.2 million at December 31, 2014, and from $133.6 million at March 31, 2014, largely due to an increase in existing customer balances.

About Americas United Bank

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 main branch at 801 N. Brand Boulevard, Suite 180, Glendale, CA 91203, the Downey branch at 8255 Firestone Boulevard, Suite 110, Downey, CA 90241, and the Lancaster branch at 539 West Lancaster Boulevard, Lancaster, California 93534.

Information on products and services may be obtained by calling the Glendale headquarters at 818-637-7000 or visiting the Bank’s website at www.aubank.com. The Lancaster branch may be reached directly at 661-945-6955 and the Downey branch at 592-299-9920.

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 Selected Financial and Operating Data
		Three-Months Ended
		March 31,				December 31,				March 31,				Annual
Income Statement		2015				2014				2014				Change
Interest Income		$	1,416,374			$	1,434,888			$	1,151,213				23.0	%
Interest Expense			149,156				141,509				106,127				40.5	%
Net Interest Income			1,267,218				1,293,379				1,045,086				21.3	%
Provision for Loan Losses (a)			-1,631,394				0				0			NA
Total Noninterest Income			79,830				195,940				124,720				-36.0	%
Total Noninterest Expense			1,168,263				1,133,881				980,779				19.1	%
Income Before Taxes			1,810,179				355,438				189,027				857.6	%
Income Tax Expense			752,113				168,863				78,086				863.2	%
Net Income		$	1,058,066			$	186,575			$	110,941				853.7	%
Performance Ratios
Basic Earnings Per Share		$	0.37			$	0.06			$	0.04
Diluted Earnings Per Share		$	0.36			$	0.06			$	0.04
Net Interest Margin			3.27	%			3.34	%			3.64	%
Return on Average Assets			2.65	%			0.47	%			0.37	%
Return on Average Equity			17.47	%			3.04	%			1.92	%
Efficiency Ratio			86.73	%			76.13	%			83.84	%
		March 31,				December 31,				September 30,				June 30,				March 31,				Annual
BALANCE SHEET		2015				2014				2014				2014				2014				Change
Cash and Due from Banks		$	4,633,714			$	2,097,285			$	2,444,965			$	2,606,946			$	2,196,799			110.9	%
Investments & Int. Bearing Deposits at Banks			38,009,148				35,626,532				37,462,837				38,313,373				16,195,861			134.7	%
Federal Funds/FRB Balances			12,533,097				10,633,215				9,118,246				22,753,244				50,033,242			-75.0	%
Total Cash & Investments			55,175,959				48,357,032				49,026,048				63,673,563				68,425,902			-19.4	%
Gross Loans			108,015,186				109,814,834				107,277,577				96,065,839				90,292,456			19.6	%
Allowance for Loan Losses			-1,850,070				-1,849,587				-1,806,471				-1,748,453				-1,705,274			8.5	%
Loans, Net			106,165,116				107,965,247				105,471,106				94,317,386				88,587,182			19.8	%
Property and Equipment, Net			279,527				300,191				293,744				292,920				233,633			19.6	%
Other Assets			3,741,276				4,536,542				4,911,873				4,529,726				4,562,819			-18.0	%
Total Assets		$	165,361,878			$	161,159,012			$	159,702,771			$	162,813,595			$	161,809,536			2.2	%
Non-Maturing Deposits		$	79,891,089			$	75,890,512			$	77,711,972			$	78,865,123			$	76,260,441			4.8	%
Certificates of Deposit			55,301,717				56,324,861				52,995,198				55,367,563				57,332,604			-3.5	%
Total Deposits			135,192,806				132,215,373				130,707,170				134,232,686				133,593,045			1.2	%
FHLB Advances and Other Borrowings			4,000,000				4,000,000				4,000,000				4,000,000				4,000,000			0.0	%
Other Liabilities			670,064				574,198				932,545				746,386				539,883			24.1	%
Total Liabilities			139,862,870				136,789,571				135,639,715				138,979,072				138,132,928			1.3	%
Total Shareholders' Equity			25,499,008				24,369,441				24,063,056				23,834,523				23,676,608			7.7	%
Total Liabilities and Shareholders' Equity		$	165,361,878			$	161,159,012			$	159,702,771			$	162,813,595			$	161,809,536			2.2	%
Asset Quality Ratios
Nonperforming Loans to Total Loans			0.00	%			0.00	%			0.01	%			0.01	%			0.05	%
Loss Allowance to Nonperforming Loans			0.00	%			43448.13	%			25795.70	%			19247.60	%			3751.60	%
Allowance for Loan Losses to Loans			1.71	%			1.68	%			1.68	%			1.82	%			1.89	%
Nonperforming Assets to Total Assets			0.00	%			0.00	%			0.00	%			0.01	%			0.03	%
Texas Ratio (NPAs/T1 Capital & ALLL)			0.00	%			0.02	%			0.03	%			0.04	%			0.20	%
Capital Ratios
Tier 1 Leverage Ratio			14.50	%			13.75	%			13.11	%			12.86	%			17.43	%
Tier 1 Risk-Based Capital Ratio			20.40	%			18.91	%			18.48	%			20.43	%			22.39	%
Total Risk-Based Capital Ratio			21.65	%			20.16	%			19.73	%			21.69	%			23.65	%
Common Equity Tier 1 Risk-Based Capital (b)			20.40	%			-				-				-				-
Book Value Per Share		$	8.86			$	8.47			$	8.36			$	8.28			$	8.23
Common Shares Issued and Outstanding			2,878,150				2,878,150				2,878,150				2,878,150				2,878,150
Footnotes:
(a) Reversal of loan loss provision, equivalent to $0.57 per basic share (pretax).
(b) Revised Regulatory Capital Ratio effective on January 1, 2015

Americas United Bank
Adriana M. Boeka, 818-637-7000
Jeff Pollard, 818-637-7000

Source: Americas United Bank

---

Serious News for Serious Traders! Try StreetInsider.com Premium Free!

---

You May Also Be Interested In

• Citi raises Autodesk price target to $269, keeps Neutral rating
• Citi cuts Lowe's price target to $260, keeps Buy rating
• J.M. Smucker (SJM) PT Raised to $142 at UBS