GLENDALE, Calif.--(BUSINESS WIRE)--Americas United Bank (OTCQB: AUNB) today announced financial results for the fourth quarter and fiscal year period ended December 31, 2015, with quarterly income of $155,923, or $0.05 per basic share and annual net income of $1,510,213, or $0.52 per basic share. Total assets at the period-end were $219.9 million, and the Bank’s equity capital was $25.9 million.
“I am very pleased to report another positive quarter of earnings performance and growth for the Bank. We were able to absorb our two new branches and merge the operations without any significant issues and this contributed to our solid earnings performance for the fourth quarter of 2015. We are proud of the fact that we have been profitable every quarter since the second quarter of 2011. We continue to be positive as we move forward in 2016 and beyond with measured growth and core profits,” said Adriana M. Boeka, the Bank’s President and Chief Executive Officer.
Financial Performance
The Bank’s net income for the fourth quarter of 2015 was $155,923, or $0.05 per basic share compared to the $108,230 or $0.04 per basic share for the prior quarter and $186,575, or $0.06 per basic share for the fourth quarter of 2014. Net income for the 2015 fiscal year was $1,510,213, or $0.52 per basic share, compared to $621,376, or $0.22 per basic share for 2014. As reported in the first quarter of 2015, net income was favorably impacted by recovery of a previously charged-off loan.
President and CEO Boeka continued, “Our core earnings benefit from the increase in earning assets and the steps we have taken to generate greater levels of interest income.”
Total assets were $219.9 million at December 31, 2015, up $863,000 from the prior quarter and $58.8 million from the fourth quarter a year ago. The Bank’s equity capital was $25.9 million at December 31, 2015, as compared to $25.8 million at September 30, 2015 and $24.4 million at December 31, 2014.
President and CEO Boeka said, “Our balance sheet is comprised of good quality assets and it is this quality that further contributes to our earnings and augments our potential for success as we strive to avoid any unforeseen asset quality issues that negatively impact earnings. Our loan loss reserve remains robust.”
The Bank’s net interest income for the fourth quarter of 2015 was $1,632,810, compared to $1,284,934 for the prior quarter and $1,293,379 last year. The increase is the result of the additional earning assets added at the end of the third quarter of 2015. The fourth quarter 2015 net interest margin was 3.09%, compared to 3.01% for the prior quarter and 3.34% for the fourth quarter of last year.
Noninterest income was $199,016 for the fourth quarter of 2015, compared to $175,829 for the prior quarter and $195,940 for the fourth quarter of 2014. The 2015 annual noninterest income was $570,688, compared to $559,649 for 2014.
The annual noninterest expense increased to $5,129,821 this year from $4,121,774 last year. The increase was the result of additional operating expenses such as staffing, occupancy, data and item processing, and other expenses for the full year’s operation of the Lancaster branch, which was acquired on March 31, 2014, and the addition of the Commerce and Santa Fe Springs branches which were merged on September 25, 2015. In addition there were acquisition related costs associated with each of the acquisitions in 2014 and 2015.
Commercial Banking
The Bank’s loans totaled $171.1 million at December 31, 2015, compared to $109.8 million at December 31, 2014, primarily due to the addition of new commercial real estate loans. Total deposits grew by 43.1% in the past twelve months, which was mainly due to the addition of the Commerce and Santa Fe Springs branches that were purchased from another financial institution in the third quarter of 2015. Our core commercial lending operations has benefited from the acquisition of these branches.
Present and CEO Boeka concluded, “Our acquisition of the Commerce and Santa Fe Springs, branches from another financial institution in the third quarter of 2015, expanded our geographic footprint and further 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 2016 and beyond.”
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, Commerce Office at 6001 E. Washington Boulevard Commerce, CA 90040, Santa Fe Springs Office at 10400 S. Norwalk Boulevard, Santa Fe Springs, CA 90670, and Lancaster Office at 539 West Lancaster Boulevard, Lancaster, CA 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 Commerce office may be reached directly at (323) 724-8801, the Santa Fe Springs office may be reached directly at (562) 906-7220, and the Lancaster office may be reached directly at (661) 945-6955.
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 | Year-To-Date | ||||||||||||||||||||||||||
| December 31, | September 30, | December 31, | Annual | December 31, | Annual | ||||||||||||||||||||||
| Income Statement | 2015 | 2015 | 2014 | Change | 2015 | 2014 | Change | ||||||||||||||||||||
| Interest Income | $ | 1,823,227 | $ | 1,441,490 | $ | 1,434,888 | 27.1 | % | $ | 6,152,256 | $ | 5,201,110 | 18.3 | % | |||||||||||||
| Interest Expense | 190,417 | 156,556 | 141,509 | 34.6 | % | 647,607 | 540,027 | 19.9 | % | ||||||||||||||||||
| Net Interest Income | 1,632,810 | 1,284,934 | 1,293,379 | 26.2 | % | 5,504,649 | 4,661,083 | 18.1 | % | ||||||||||||||||||
| Provision for Loan Losses | 0 | 0 | 0 | NA | -1,631,394 | 0 | NA | ||||||||||||||||||||
| Total Noninterest Income | 199,016 | 175,829 | 195,940 | 1.6 | % | 570,688 | 559,649 | 2.0 | % | ||||||||||||||||||
| Total Noninterest Expense | 1,579,695 | 1,265,995 | 1,133,881 | 39.3 | % | 5,129,821 | 4,121,774 | 24.5 | % | ||||||||||||||||||
| Income Before Taxes | 252,131 | 194,768 | 355,438 | -29.1 | % | 2,576,910 | 1,098,958 | 134.5 | % | ||||||||||||||||||
| Income Tax Expense | 96,208 | 86,538 | 168,863 | -43.0 | % | 1,066,697 | 477,582 | 123.4 | % | ||||||||||||||||||
| Net Income | $ | 155,923 | $ | 108,230 | $ | 186,575 | -16.4 | % | $ | 1,510,213 | $ | 621,376 | 143.0 | % | |||||||||||||
| Performance Ratios | |||||||||||||||||||||||||||
| Basic Earnings Per Share | $ | 0.05 | $ | 0.04 | $ | 0.06 | $ | 0.52 | $ | 0.22 | |||||||||||||||||
| Diluted Earnings Per Share | $ | 0.05 | $ | 0.04 | $ | 0.06 | $ | 0.51 | $ | 0.21 | |||||||||||||||||
| Net Interest Margin | 3.09 | % | 3.01 | % | 3.34 | % | 3.17 | % | 3.19 | % | |||||||||||||||||
| Return on Average Assets | 0.29 | % | 0.25 | % | 0.47 | % | 0.84 | % | 0.41 | % | |||||||||||||||||
| Return on Average Equity | 2.41 | % | 1.67 | % | 3.04 | % | 5.93 | % | 2.60 | % | |||||||||||||||||
| Efficiency Ratio | 86.24 | % | 86.67 | % | 76.13 | % | 84.44 | % | 78.95 | % | |||||||||||||||||
| December 31, | September 30, |
June 30, |
December 31, | Annual | |||||||||||||||||||||||
| BALANCE SHEET | 2015 | 2015 | 2015 | 2014 | Change | ||||||||||||||||||||||
| Cash and Due from Banks | $ | 3,397,000 | $ | 3,385,565 | $ | 2,631,965 | $ | 2,097,285 | 62.0 | % | |||||||||||||||||
| Investments & Int. Bearing Deposits at Banks | 34,808,151 | 44,879,634 | 38,720,599 | 35,626,532 | -2.3 | % | |||||||||||||||||||||
| Federal Funds/FRB Balances | 7,417,722 | 24,987,848 | 21,332,973 | 10,633,215 | -30.2 | % | |||||||||||||||||||||
| Total Cash & Investments | 45,622,873 | 73,253,047 | 62,685,537 | 48,357,032 | -5.7 | % | |||||||||||||||||||||
| Gross Loans | 171,091,504 | 142,872,717 | 104,594,712 | 109,814,834 | 55.8 | % | |||||||||||||||||||||
| Allowance for Loan Losses | -2,451,074 | -1,850,734 | -1,850,552 | -1,849,587 | 32.5 | % | |||||||||||||||||||||
| Loans, Net | 168,640,430 | 141,021,983 | 102,744,160 | 107,965,247 | 56.2 | % | |||||||||||||||||||||
| Property and Equipment, Net | 525,973 | 349,617 | 307,160 | 300,191 | 75.2 | % | |||||||||||||||||||||
| Other Assets | 5,142,226 | 4,443,546 | 3,648,960 | 4,536,542 | 13.4 | % | |||||||||||||||||||||
| Total Assets | $ | 219,931,502 | $ | 219,068,193 | $ | 169,385,817 | $ | 161,159,012 | 36.5 | % | |||||||||||||||||
| Non-Maturing Deposits | $ | 133,012,773 | $ | 130,026,613 | $ | 85,742,717 | $ | 75,890,512 | 75.3 | % | |||||||||||||||||
| Certificates of Deposit | 56,245,314 | 58,321,547 | 53,237,079 | 56,324,861 | -0.1 | % | |||||||||||||||||||||
| Total Deposits | 189,258,087 | 188,348,160 | 138,979,796 | 132,215,373 | 43.1 | % | |||||||||||||||||||||
| FHLB Advances and Other Borrowings | 4,000,000 | 4,000,000 | 4,000,000 | 4,000,000 | 0.0 | % | |||||||||||||||||||||
| Other Liabilities | 756,753 | 890,557 | 742,772 | 574,198 | 31.8 | % | |||||||||||||||||||||
|
Total Liabilities |
194,014,840 | 193,238,717 | 143,722,568 | 136,789,571 | 41.8 | % | |||||||||||||||||||||
| Total Shareholders' Equity | 25,916,662 | 25,829,476 | 25,663,249 | 24,369,441 | 6.3 | % | |||||||||||||||||||||
| Total Liabilities and Shareholders' Equity | $ | 219,931,502 | $ | 219,068,193 | $ | 169,385,817 | $ | 161,159,012 | 36.5 | % | |||||||||||||||||
| Asset Quality Ratios | |||||||||||||||||||||||||||
| Nonperforming Loans to Total Loans | 0.00 | % | 0.00 | % | 0.00 | % | 0.00 | % | |||||||||||||||||||
| Loss Allowance to Nonperforming Loans | 0.00 | % | 0.00 | % | 0.00 | % | 43448.13 | % | |||||||||||||||||||
| Allowance for Loan Losses to Loans | 1.43 | % | 1.30 | % | 1.77 | % | 1.68 | % | |||||||||||||||||||
| Nonperforming Assets to Total Assets | 0.00 | % | 0.00 | % | 0.00 | % | 0.00 | % | |||||||||||||||||||
| Texas Ratio (NPAs/T1 Capital & ALLL) | 0.00 | % | 0.00 | % | 0.00 | % | 0.02 | % | |||||||||||||||||||
| Capital Ratios | |||||||||||||||||||||||||||
| Tier 1 Leverage Ratio | 11.12 | % | 13.73 | % | 14.53 | % | 13.75 | % | |||||||||||||||||||
| Tier 1 Risk-Based Capital Ratio | 13.50 | % | 15.80 | % | 21.36 | % | 18.91 | % | |||||||||||||||||||
| Total Risk-Based Capital Ratio | 14.76 | % | 17.06 | % | 22.63 | % | 20.16 | % | |||||||||||||||||||
| Common Equity Tier 1 Risk-Based Capital (a) | 13.50 | % | 15.80 | % | 21.36 | % | - | ||||||||||||||||||||
| Book Value Per Share | $ | 9.00 | $ | 8.97 | $ | 8.91 | $ | 8.47 | |||||||||||||||||||
| Common Shares Issued and Outstanding | 2,880,150 | 2,880,150 | 2,880,150 | 2,878,150 | |||||||||||||||||||||||
|
Footnotes: |
|||||||||||||||||||||||||||
| (a) Revised Regulatory Capital Ratio effective on January 1, 2015 | |||||||||||||||||||||||||||