Americas United Bank Announces Results for the First Quarter of 2016

GLENDALE, Calif.--()--Americas United Bank (OTC Pink: AUNB) today announced financial results for the first quarter of 2016, with quarterly and year-to-date net income of $210,532, or $0.07 per basic and diluted share. Total assets at the period-end were $212.9 million, and the Bank’s equity capital was $26.2 million.

“Our results this quarter reflect our focus on improving profitability and making the necessary investments to drive future growth. Effectively managing each of these areas is key to helping us take advantages of the opportunities we see in the future,” said Adriana M. Boeka, President and Chief Executive Officer.

First Quarter 2016 Financial Highlights:

  • Net income increased 35.0% to $210,532 in the first quarter, compared to $155,923 in the fourth quarter 2015.
  • The net interest margin increased to 3.40% in the first quarter, compared to 3.09% in the fourth quarter 2015.
  • Non-performing assets remain at nil. Credit quality remains strong with 5 successive quarters of no non-performing assets.
  • Consolidated the Downey, California branch with the Santa Fe Springs, California branch effectively reducing operating costs for one location with minimal customer impact.
  • Book value per share increased to $9.10 per share compared to $8.86 a year ago. Tangible book value per share increased to $8.89 per share.

No provision for loan losses was taken in the first quarter as a result of the reserve being at the appropriate level and there being zero non-performing assets. The allowance for loan losses totaled $2.4 million at March 31, 2016, or 1.42% of total loans.

Total assets were $212.9 at March 31, 2016, and increase of $47.6 million, or 28.8% from $165.4 million at March 31, 2015. The third quarter 2015 acquisition of the Commerce, California and Santa Fe Springs, California branches from another bank contributed to this increase.

Total loans were $172.1 million as compared to $108.0 million at March 31, 2015, resulting in an increase of $64.1 million, or 59.3%. Total loans comparisons were affected by the acquisition of loans from the third quarter 2015 branch acquisition and the loan growth in the latter fourth quarter 2015.

Total deposits were $181.9 million, an increase of $46.7 million, or 34.6% from $135.2 million at March 31, 2015. Core deposits defined as noninterest bearing demand, money market, NOW, and savings accounts increased 43.6% to $114.7 million from $79.9 million a year earlier at March 31, 2015. Total deposits and core deposit comparisons were affected by the acquisition of deposits from the branch acquisition in the third quarter of 2015. Core deposits comprise 63.0% of total deposits.

Shareholder equity increased to $26.2 million at March 31, 2016, from $25.5 million at March 31, 2015. At March 31, 2016 book value per share improved 2.7% to $9.10 per share compared to $8.86 per share at March 31, 2015.

President and CEO Boeka said, “Our balance sheet remains solid and comprised of good quality assets and it is this quality that further contributes to our steady and progressive earnings growth. We continue to look for additional market opportunities to enhance shareholder value.”

The bank’s capital ratios exceeded the regulatory guidelines for a well-capitalized financial institution under the Basel III and Dodd Frank Wall Street Reform requirements at March 31, 2016. The Bank reported the following capital ratios at March 31, 2016:

Common Equity Tier 1 Capital Ratio   13.43%
 
Tier 1 Leverage Ratio 11.36%
 
Tier 1 Capital Ratio 13.43%
 
Total Capital Ratio 14.69%

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
March 31, December 31, March 31, Annual March 31, Annual
Income Statement 2016 2015 2015 Change 2016 2015 Change
 
Interest Income $1,970,118 $1,823,227 $1,416,374 39.1% $1,970,118 $1,416,374 39.1%
Interest Expense 211,345 190,417 149,156 41.7% 211,345 149,156 41.7%
Net Interest Income 1,758,773 1,632,810 1,267,218 38.8% 1,758,773 1,267,218 38.8%
Provision for Loan Losses 0 0 -1,631,394 NA 0 -1,631,394 NA
Total Noninterest Income 168,346 199,016 79,830 110.9% 168,346 79,830 110.9%
Total Noninterest Expense 1,564,297 1,579,695 1,168,263 33.9% 1,564,297 1,168,263 33.9%
Income Before Taxes 362,822 252,131 1,810,179 -80.0% 362,822 1,810,179 -80.0%
Income Tax Expense 152,290 96,208 752,113 -79.8% 152,260 752,113 -79.8%
Net Income $210,532 $155,923 $1,058,066 -80.1% $210,562 $1,058,066 -80.1%
 
Performance Ratios
Basic Earnings Per Share $0.07 $0.05 $0.37 $0.07 $0.37
Diluted Earnings Per Share $0.07 $0.05 $0.36 $0.07 $0.36
Net Interest Margin 3.40% 3.09% 3.27% 3.40% 3.27%
Return on Average Assets 0.39% 0.29% 2.65% 0.39% 2.65%
Return on Average Equity 3.24% 2.41% 17.47% 3.24% 17.47%
Efficiency Ratio 81.17% 86.24% 86.73% 81.17% 86.73%
 
 
March 31, December 31, September 30, June 30, March 31, Annual
BALANCE SHEET 2016 2015 2015 2015 2015 Change
 
Cash and Due from Banks $3,507,321 $3,397,000 $3,385,565 $2,631,965 $4,633,714 -24.3%
Investments & Int. Bearing Deposits at Banks 26,538,027 34,808,151 44,879,634 38,720,599 38,009,148 -30.2%
Federal Funds/FRB Balances 7,937,612 7,417,722 24,987,848 21,332,973 12,533,097 -36.7%
Total Cash & Investments 37,982,960 45,622,873 73,253,047 62,685,537 55,175,959 -31.2%
Gross Loans 172,096,391 171,091,504 142,872,717 104,594,712 108,015,186 59.3%
Allowance for Loan Losses -2,451,184 -2,451,074 -1,850,734 -1,850,552 -1,850,070 32.5%
Loans, Net 169,645,207 168,640,430 141,021,983 102,744,160 106,165,116 59.8%
Property and Equipment, Net 505,653 525,973 349,617 307,160 279,527 80.9%
Other Assets 4,803,899 5,142,226 4,443,546 3,648,960 3,741,276 28.4%
Total Assets $212,937,719 $219,931,502 $219,068,193 $169,385,817 $165,361,878 28.8%
 
Non-Maturing Deposits $114,689,255 $133,012,773 $130,026,613 $85,742,717 $79,891,089 43.6%
Certificates of Deposit 67,242,124 56,245,314 58,321,547 53,237,079 55,301,717 21.6%
Total Deposits 181,931,379 189,258,087 188,348,160 138,979,796 135,192,806 34.6%
FHLB Advances and Other Borrowings 4,000,000 4,000,000 4,000,000 4,000,000 4,000,000 0.0%
Other Liabilities 806,910 756,753 890,557 742,772 670,064 20.4%

Total Liabilities

186,738,289 194,014,840 193,238,717 143,722,568 139,862,870 33.5%
Total Shareholders' Equity 26,199,430 25,916,662 25,829,476 25,663,249 25,499,008 2.7%
Total Liabilities and Shareholders' Equity $212,937,719 $219,931,502 $219,068,193 $169,385,817 $165,361,878 28.8%
 
Asset Quality Ratios
Nonperforming Loans to Total Loans 0.00% 0.00% 0.00% 0.00% 0.00%
Loss Allowance to Nonperforming Loans 0.00% 0.00% 0.00% 0.00% 0.00%
Allowance for Loan Losses to Loans 1.42% 1.43% 1.30% 1.77% 1.71%
Nonperforming Assets to Total Assets 0.00% 0.00% 0.00% 0.00% 0.00%
Texas Ratio (NPAs/T1 Capital & ALLL) 0.00% 0.00% 0.00% 0.00% 0.00%
 
Capital Ratios
Tier 1 Leverage Ratio 11.36% 11.12% 13.73% 14.53% 14.50%
Tier 1 Risk-Based Capital Ratio 13.43% 13.50% 15.80% 21.36% 20.40%
Total Risk-Based Capital Ratio 14.69% 14.76% 17.06% 22.63% 21.65%
Common Equity Tier 1 Risk-Based Capital 13.43% 13.50% 15.80% 21.36% 20.40%
Book Value Per Share $9.10 $9.00 $8.97 $8.91 $8.86
Common Shares Issued and Outstanding 2,880,150 2,880,150 2,880,150 2,880,150 2,878,150

Contacts

Americas United Bank
Adriana M. Boeka, President & CEO
Jeff Pollard, EVP & CFO
818 637-7000

Release Summary

Q1 2016 Earnings Release

Contacts

Americas United Bank
Adriana M. Boeka, President & CEO
Jeff Pollard, EVP & CFO
818 637-7000