GLENDALE, Calif.--(BUSINESS WIRE)--Americas United Bank (OTC Pink: AUNB) today announced financial results for the second quarter of 2016, with quarterly earnings of $235,197, or $0.08 per basic and diluted share, and year-to-date net income of $445,729, or $0.15 per basic and diluted share. Total assets at the period-end were $222.8 million, and the Bank’s equity capital was $26.5 million.
“We are pleased with the continuation of our successive quarterly profits. We strive to improve the operation on a daily basis and we remain focused on rewarding our shareholders amidst the challenging interest rate environment,” said Adriana M. Boeka, President and Chief Executive Officer.
Second Quarter 2016 Financial Highlights:
- Net income increased 11.7% to $235,197 in the second quarter, compared to $210,532 in the first quarter of 2016. The increase was 50.8% when compared to $155,923 in the fourth quarter 2015.
- The net interest margin decreased to 3.21% in the second quarter, compared to 3.40% in the first quarter of 2016, and increased compared to 3.09% in the fourth quarter 2015.
- Non-performing assets remain at nil. Credit quality remains strong with 6 successive quarters of there being zero non-performing assets.
- The loan portfolio increased 7.7% to $184.2 million when compared to the fourth quarter 2015 of $171.1 million.
- Book value per share increased to $9.19 per share compared to $8.91 a year ago. Tangible book value per share increased to $8.99 per share.
No provision for loan losses was taken in the second 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 $2.5 million at June 30, 2016, or 1.33% of total loans.
Total assets were $222.8 million at June 30, 2016, an increase of $53.4 million, or 31.5% from $169.4 million at June 30, 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 $184.2 million as compared to $104.6 million at June 30, 2015, resulting in an increase of $79.7 million, or 76.2%. Total loans comparisons were positively affected by the acquisition of loans from the third quarter 2015 branch acquisition and the loan growth in the fourth quarter 2015.
Total deposits were $191.5 million, an increase of $52.5 million, or 37.8% from $139.0 million at June 30, 2015. Core deposits defined as noninterest bearing demand, money market, NOW, and savings accounts increased 44.2% to $123.7 million from $85.7 million a year earlier at June 30, 2015. Total deposits and core deposit comparisons were positively affected by the acquisition of deposits from the branch acquisition in the third quarter of 2015. Core deposits comprise 64.6% of total deposits.
Shareholder equity increased to $26.5 million at June 30, 2016, from $25.7 million at June 30, 2015. At June 30, 2016 book value per share improved 3.1% to $9.19 per share compared to $8.91 per share at June 30, 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 June 30, 2016. The Bank reported the following capital ratios at June 30, 2016:
| Common Equity Tier 1 Capital Ratio | 12.79% | |||||
| Tier 1 Leverage Ratio | 11.03% | |||||
| Tier 1 Capital Ratio | 12.79% | |||||
| Total Capital Ratio | 14.04% | |||||
President and CEO Boeka said, “We have continued to implement changes to improve our product suite and to streamline our operations to directly improve our customer experience. We introduced a new and improved business internet banking system called BeB and rolled out the initial mobile banking product. We look forward to further product developments over the remainder of 2016. We also remain focused on business development and attracting talented commercial bankers to our team as we continue to grow.”
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 | ||||||||||||||||||||||||
| June 30, | March 31, | December 31, | June 30, | Annual | June 30, | Annual | |||||||||||||||||||
| Income Statement | 2016 | 2016 | 2015 | 2015 | Change | 2016 | 2015 | Change | |||||||||||||||||
| Interest Income | $2,003,953 | $1,970,118 | $1,823,227 | $1,471,165 | 36.2% | $3,974,071 | $2,887,539 | 37.6% | |||||||||||||||||
| Interest Expense | 258,898 | 211,345 | 190,417 | 151,478 | 70.9% | 470,243 | 300,634 | 56.4% | |||||||||||||||||
| Net Interest Income | 1,745,055 | 1,758,773 | 1,632,810 | 1,319,687 | 32.2% | 3,503,828 | 2,586,905 | 35.4% | |||||||||||||||||
| Provision for Loan Losses | 0 | 0 | 0 | 0 | NA | 0 | -1,631,394 | NA | |||||||||||||||||
| Total Noninterest Income | 161,562 | 168,346 | 199,016 | 116,013 | 39.3% | 329,908 | 195,843 | 68.5% | |||||||||||||||||
| Total Noninterest Expense | 1,501,124 | 1,564,297 | 1,579,695 | 1,115,868 | 34.5% | 3,065,421 | 2,284,131 | 34.2% | |||||||||||||||||
| Income Before Taxes | 405,493 | 362,822 | 252,131 | 319,832 | 26.8% | 768,315 | 2,130,011 | -63.9% | |||||||||||||||||
| Income Tax Expense | 170,296 | 152,290 | 96,208 | 131,838 | 29.2% | 322,586 | 883,951 | -63.5% | |||||||||||||||||
| Net Income | $235,197 | $210,532 | $155,923 | $187,994 | 25.1% | $445,729 | $1,246,060 | -64.2% | |||||||||||||||||
| Performance Ratios | |||||||||||||||||||||||||
| Basic Earnings Per Share | $0.08 | $0.07 | $0.05 | $0.07 | $0.15 | $0.43 | |||||||||||||||||||
| Diluted Earnings Per Share | $0.08 | $0.07 | $0.05 | $0.06 | $0.15 | $0.42 | |||||||||||||||||||
| Net Interest Margin | 3.21% | 3.40% | 3.09% | 3.33% | 3.30% | 3.30% | |||||||||||||||||||
| Return on Average Assets | 0.42% | 0.39% | 0.29% | 0.46% | 0.41% | 1.55% | |||||||||||||||||||
| Return on Average Equity | 3.59% | 3.24% | 2.41% | 2.94% | 3.41% | 10.07% | |||||||||||||||||||
| Efficiency Ratio | 78.73% | 81.17% | 86.24% | 77.72% | 79.96% | 82.08% | |||||||||||||||||||
| June 30, | March 31, | December 31, | September 30, | June 30, | Annual | ||||||||||||||||||||
| BALANCE SHEET | 2016 | 2016 | 2015 | 2015 | 2015 | Change | |||||||||||||||||||
| Cash and Due from Banks | $3,663,863 | $3,507,321 | $3,397,000 | $3,385,565 | $2,631,965 | 39.2% | |||||||||||||||||||
| Investments & Int. Bearing Deposits at Banks | 23,990,665 | 26,538,027 | 34,808,151 | 44,879,634 | 38,720,599 | -38.0% | |||||||||||||||||||
| Federal Funds/FRB Balances | 8,175,215 | 7,937,612 | 7,417,722 | 24,987,848 | 21,332,973 | -61.7% | |||||||||||||||||||
| Total Cash & Investments | 35,829,743 | 37,982,960 | 45,622,873 | 73,253,047 | 62,685,537 | -42.8% | |||||||||||||||||||
| Gross Loans | 184,249,456 | 172,096,391 | 171,091,504 | 142,872,717 | 104,594,712 | 76.2% | |||||||||||||||||||
| Allowance for Loan Losses | -2,453,782 | -2,451,184 | -2,451,074 | -1,850,734 | -1,850,552 | 32.6% | |||||||||||||||||||
| Loans, Net | 181,795,674 | 169,645,207 | 168,640,430 | 141,021,983 | 102,744,160 | 76.9% | |||||||||||||||||||
| Property and Equipment, Net | 472,225 | 505,653 | 525,973 | 349,617 | 307,160 | 53.7% | |||||||||||||||||||
| Other Assets | 4,685,142 | 4,803,899 | 5,142,226 | 4,443,546 | 3,648,960 | 28.4% | |||||||||||||||||||
| Total Assets | $222,782,784 | $212,937,719 | $219,931,502 | $219,068,193 | $169,385,817 | 31.5% | |||||||||||||||||||
| Non-Maturing Deposits | $123,663,527 | $114,689,255 | $133,012,773 | $130,026,613 | $85,742,717 | 44.2% | |||||||||||||||||||
| Certificates of Deposit | 67,787,511 | 67,242,124 | 56,245,314 | 58,321,547 | 53,237,079 | 27.3% | |||||||||||||||||||
| Total Deposits | 191,451,038 | 181,931,379 | 189,258,087 | 188,348,160 | 138,979,796 | 37.8% | |||||||||||||||||||
| FHLB Advances and Other Borrowings | 4,000,000 | 4,000,000 | 4,000,000 | 4,000,000 | 4,000,000 | 0.0% | |||||||||||||||||||
| Other Liabilities | 854,657 | 806,910 | 756,753 | 890,557 | 742,772 | 15.1% | |||||||||||||||||||
| Total Liabilitites | 196,305,695 | 186,738,289 | 194,014,840 | 193,238,717 | 143,722,568 | 36.6% | |||||||||||||||||||
| Total Shareholders' Equity | 26,477,089 | 26,199,430 | 25,916,662 | 25,829,476 | 25,663,249 | 3.2% | |||||||||||||||||||
| Total Liabilities and Shareholders' Equity | $222,782,784 | $212,937,719 | $219,931,502 | $219,068,193 | $169,385,817 | 31.5% | |||||||||||||||||||
| 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 | 1.33% | 1.42% | 1.43% | 1.30% | 1.77% | ||||||||||||||||||||
| 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 | 11.03% | 11.36% | 11.12% | 13.73% | 14.53% | ||||||||||||||||||||
| Tier 1 Risk-Based Capital Ratio | 12.79% | 13.43% | 13.50% | 15.80% | 21.36% | ||||||||||||||||||||
| Total Risk-Based Capital Ratio | 14.04% | 14.69% | 14.76% | 17.06% | 22.63% | ||||||||||||||||||||
| Common Equity Tier 1 Risk-Based Capital | 12.79% | 13.43% | 13.50% | 15.80% | 21.36% | ||||||||||||||||||||
| Book Value Per Share | $9.19 | $9.10 | $9.00 | $8.97 | $8.91 | ||||||||||||||||||||
| Common Shares Issued and Outstanding | 2,880,150 | 2,880,150 | 2,880,150 | 2,880,150 | 2,880,150 | ||||||||||||||||||||