Americas United Bank Announces Results for the Fourth Quarter and Fiscal Year 2014

GLENDALE, Calif.--()--Americas United Bank (OTCQB: AUNB) today announced financial results for the fourth quarter and fiscal year period ended December 31, 2014, with quarterly income of $186,575, or $0.06 per basic share and annual net income of $621,376, or $0.22 per basic share. Total assets at the period-end were $161.2 million, and the Bank’s equity capital was $24.4 million.

“In an economy that is showing widespread improvements, we are pleased to report that Americas United Bank delivered another solid earnings performance in the fourth quarter of 2014,” said Adriana M. Boeka, the Bank’s President and Chief Executive Officer. We continue to be poised to move forward in 2015 and beyond with measured growth and core profits.”

Boeka continued, “Our acquisition of the Lancaster, California branch from another financial institution in the first quarter of 2014, added to our geographic footprint and enhanced our market territory. We continue to target our market areas for new customers and loans and deposits. We are focused on growth, yield improvement and overhead control from economies of scale as we move forward in 2015.”

Financial Performance

The Bank’s net income for the fourth quarter of 2014 was $186,575, or $0.06 per basic share compared to the $232,599, or $0.08 per basic share for the prior quarter and $3,222,899, or $1.12 per basic share for the fourth quarter of 2013, which was favorably impacted by the full recognition of the Bank’s deferred tax asset. Without the effects of the deferred tax asset in the fourth quarter of 2013, the basic earnings per share were $0.08. Net income for the 2014 fiscal year was $621,376, or $0.22 per basic share compared to $3,933,968 or $1.37 per basic share for 2013. Without the effect of the deferred tax assets and the reversal of loan losses provision, the basic earnings per share were $0.22.

Total assets were $161.2 million at December 31, 2014, up $1.5 million from the prior quarter and $41.6 million from the fourth quarter a year ago. The Bank’s equity capital was $24.4 million at December 31, 2014, as compared to $24.1 million at September 30, 2014 and $23.5 million at December 31, 2013.

The Bank’s net interest income for the fourth quarter of 2014 was $1,293,379, compared to $1,201,190 for the prior quarter and $1,052,764 last year. The fourth quarter 2014 net interest margin was 3.34%, compared to 3.05% for the prior quarter and 3.59% for the fourth quarter of last year. These quarterly and year-over-year increases were mainly due to the deployment of liquidity into earning assets such as loans, securities, and time deposits at other banks.

Noninterest income was $195,940 for the fourth quarter of 2014, compared to $158,328 for the prior quarter and $96,780 for the fourth quarter of 2013. The 2014 annual noninterest income was $559,649, compared to $439,785 for 2013. The annual noninterest expense increased to $4,121,774 this year from $3,714,185 last year, with the largest impact being from the addition of the Lancaster branch and the employee-related and occupancy costs.

Commercial Banking

The Bank’s loans totaled $109.8 million at December 31, 2014, compared to $87.4 million at December 31, 2013 primarily due to the addition of new commercial real estate loans. Total deposits grew by 44.6% in the past twelve months, which was mainly due to the addition of the Lancaster branch that was purchased from another financial institution in the first quarter of 2014. Our core commercial lending operations has benefited from the acquisition of the Lancaster branch.

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

Information on products and services may be obtained by calling the Glendale Head Office 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 Date    
 
  Three-Months Ended
Twelve Months Ended
December 31, September 30, December 31, Annual December 31, Annual
Income Statement   2014     2014     2013   Change   2014     2013   Change
 
Interest Income $ 1,434,888 $ 1,345,979 $ 1,164,611 23.2 % $ 5,201,110 $ 4,310,195 20.7 %
Interest Expense   141,509     144,789     111,847   26.5 %   540,027     452,823   19.3 %
Net Interest Income 1,293,379 1,201,190 1,052,764 22.9 % 4,661,083 3,857,372 20.8 %
Provision for Loan Losses 0 0 0 0.0 % 0 -300,000 -100.0 %
Total Noninterest Income 195,940 158,328 96,780 102.5 % 559,649 439,785 27.3 %
Total Noninterest Expense   1,133,881     960,438     978,466   15.9 %   4,121,774     3,714,185   11.0 %
Income Before Taxes 355,438 399,080 171,078 107.8 % 1,098,958 882,972 24.5 %
Income Tax Expense 168,863 166,481 -2,996,405 -105.6 % 477,582 -2,995,580 -115.9 %
Gain on the Sale of OREO   0     0     55,416   -100.0 %   0     55,416   -100.0 %
Net Income $ 186,575   $ 232,599   $ 3,222,899   -94.2 % $ 621,376   $ 3,933,968   -84.2 %
 
Performance Ratios
Basic Earnings Per Share $ 0.06 $ 0.08 $ 1.12 $ 0.22 $ 1.37
Diluted Earnings Per Share $ 0.06 $ 0.08 $ 1.10 $ 0.21 $ 1.35
Net Interest Margin 3.34 % 3.05 % 3.59 % 3.19 % 3.39 %
Return on Average Assets 0.47 % 0.57 % 10.72 % 0.41 % 3.40 %
Return on Average Equity 3.04 % 3.85 % 15.74 % 2.60 % 19.72 %
Efficiency Ratio 76.13 % 70.65 % 85.12 % 78.95 % 86.43 %
Annual Net Loan Charge-Offs to Total Loans -0.07 % -0.21 %
 
December 31, September 30, June 30, March 31, December 31, Annual
BALANCE SHEET   2014     2014     2014     2014     2013   Change
 
Cash and Due from Banks $ 2,097,285 $ 2,444,965 $ 2,606,946 $ 2,196,799 $ 2,962,124 -29.2 %
Investments & Int. Bearing Deposits at Banks 35,626,532 37,462,837 38,313,373 16,195,861 15,774,131 125.9 %
Federal Funds/FRB Balances   10,633,215     9,118,246     22,753,244     50,033,242     10,663,350   -0.3 %
Total Cash & Investments 48,357,032 49,026,048 63,673,563 68,425,902 29,399,605 64.5 %
Gross Loans 109,814,834 107,277,577 96,065,839 90,292,456 87,437,770 25.6 %
Allowance for Loan Losses   -1,849,587     -1,806,471     -1,748,453     -1,705,274     -1,772,951   4.3 %
Loans, Net 107,965,247 105,471,106 94,317,386 88,587,182 85,664,819 26.0 %
Property and Equipment, Net 300,191 293,744 292,920 233,633 185,012 62.3 %
Other Assets   4,536,542     4,911,873     4,529,726     4,562,819     4,268,370   6.3 %
Total Assets $ 161,159,012   $ 159,702,771   $ 162,813,595   $ 161,809,536   $ 119,517,806   34.8 %
 
Non-Maturing Deposits $ 75,890,512 $ 77,711,972 $ 78,865,123 $ 76,260,441 $ 51,934,853 46.1 %
Certificates of Deposit   56,324,861     52,995,198     55,367,563     57,332,604     39,470,992   42.7 %
Total Deposits 132,215,373 130,707,170 134,232,686 133,593,045 91,405,845 44.6 %
FHLB Advances and Other Borrowings 4,000,000 4,000,000 4,000,000 4,000,000 4,000,000 0.0 %
Other Liabilities   574,198     932,545     746,386     539,883     572,255   0.3 %

Total Liabilities

136,789,571 135,639,715 138,979,072 138,132,928 95,978,100 42.5 %
Total Shareholders' Equity   24,369,441     24,063,056     23,834,523     23,676,608     23,539,706   3.5 %
Total Liabilities and Shareholders' Equity $ 161,159,012   $ 159,702,771   $ 162,813,595   $ 161,809,536   $ 119,517,806   34.8 %
 
Asset Quality Ratios
Nonperforming Loans to Total Loans 0.00 % 0.01 % 0.01 % 0.05 % 0.02 %
Loss Allowance to Nonperforming Loans 43448.13 % 25795.70 % 19247.60 % 3751.60 % 11923.00 %
Allowance for Loan Losses to Loans 1.68 % 1.68 % 1.82 % 1.89 % 2.03 %
Nonperforming Assets to Total Assets 0.00 % 0.00 % 0.01 % 0.03 % 0.01 %
Texas Ratio (NPAs/T1 Capital & ALLL) 0.02 % 0.03 % 0.04 % 0.20 % 0.07 %
 
Capital Ratios
Tier 1 Leverage Ratio 13.75 % 13.11 % 12.86 % 17.43 % 17.63 %
Tier 1 Risk-Based Capital Ratio 18.91 % 18.48 % 20.43 % 22.39 % 23.12 %
Total Risk-Based Capital Ratio 20.16 % 19.73 % 21.69 % 23.65 % 24.38 %
Book Value Per Share $ 8.47 $ 8.36 $ 8.28 $ 8.23 $ 8.18
Common Shares Issued and Outstanding 2,878,150 2,878,150 2,878,150 2,878,150 2,878,150

Contacts

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

Release Summary

Q4 Earnings Release

Contacts

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