Americas United Bank Announces Third Quarter 2015 Results

GLENDALE, Calif.--()--Americas United Bank (OTCQB: AUNB) today announced financial results for the third-quarter ended September 30, 2015, with income of $108,230, or $0.04 per basic share. Total assets at period-end were $219.1 million, and the Bank’s equity capital was $25.8 million.

“We are pleased to report that Americas United Bank has completed the acquisition of two branches from Banc of California, N.A., and has grown to over $219 million in total assets at September 30, 2015. We also continue to report net profit and add to our trend of successive quarterly profitability. Our focus remains on growing a quality loan portfolio and enhancing shareholder value,” said Adriana M. Boeka, the Bank’s President and Chief Executive Officer.

Boeka continued, “We remain committed to building our commercial banking franchise and are steadfastly focused on increasing the Bank’s earning assets in order to achieve greater capital deployment and profitability. With two new communities that expand our presence in Southeast Los Angeles County, we are better positioned to realize our growth strategy and enhance our market share.”

Financial Performance

The Bank’s net income for the third quarter ending September 30, 2015 was $108,230, or $0.04 per basic share, compared to $187,994, or $0.07 per basic share, in the previous quarter ending June 30, 2015, and $232,599, or $0.08 per basic share, in the third quarter of 2014. Year-to-date 2015 net income was $1,354,290, or $0.47 per basic share, compared to $434,801, or $0.15 per basic share, for 2014, reflecting the favorable impact of recoveries from previously charged-off loans in the first quarter of 2015.

Total assets at September 30, 2015 were $219.1 million, up approximately $57.9 million from December 31, 2014, and $59.4 million from September 30, 2014, which is a result of the acquisition of the two previously mentioned branches. The Bank’s equity capital was $25.8 million at September 30, 2015, compared to $24.4 million at December 31, 2014 and $24.1 million at September 30, 2014.

Net interest income in third quarter 2015 was $1,284,934, compared to $1,319,687 in second quarter 2015, and $1,201,190 in the third quarter of 2014. The year-over-year quarterly increase was mainly due to deployment of the Bank’s liquidity into earning assets such as loans, securities, and time deposits at other banks. Year-to-date 2015 net interest income was $3,871,839, compared to $3,367,704, for the same period in 2014, and the increase was also due to the deployment indication above.

Year-to-date 2015 net interest margin was 3.21%, compared to 3.15% for 2014. Net interest margin in third quarter 2015 was 3.01%, compared to 3.33% in the previous quarter, which included the payment of a loan prepayment penalty for the early payoff of a loan. The net interest margin for the third quarter of 2014 was 3.05%. The decline in net interest margin reflects industry-wide downward pressure due to continued low interest rates and a highly competitive business environment. The balance sheet mix, which included higher balances of overnight funds and short-term investments, has also contributed to the lower overall net interest margin.

Noninterest income was $175,829 in third quarter 2015, compared to $116,013 in second quarter 2015 and $158,328 in the third quarter of 2014. The increase in noninterest income reflects SBA activity and other fees. Year-to-date 2015 noninterest income was $371,672, compared to $363,709 for 2014.

Noninterest expense increased to $1,265,995 in third quarter 2015 from $1,115,868 in the previous quarter, and $960,438 last year due to this year’s third quarter including the costs of acquiring two branches in Commerce and Santa Fe Springs, California, which transaction closed September 25, 2015. Year-to-date 2015 noninterest expense was $3,550,126, compared to $2,987,893 in 2014, mainly due to acquisition-related costs that, for year-to-date 2015, included expenses for nine-months of operation for the Lancaster, California branch, acquired March 31, 2014. The year-to-date 2014 noninterest expense only included six-months of operations for the Lancaster branch as it was acquired March 31, 2015. The year-to-date 2015 noninterest expense included a material amount of operating expenses for the two new branches and legal and other professional costs related to the acquisition, resulting in a higher year-over-year comparison.

Commercial Banking

The Bank’s loans totaled $142.9 million at September 30, 2015, compared to $109.8 million at December 31, 2014, and $107.3 million at September 30, 2014. The primary reason for the year-over-year net increase of approximately 33.2% was due to the addition of new loans associated with the acquisition of branches in Commerce and Santa Fe Springs, California. Separately, organic loan production for the first nine-months of 2015 was offset by unscheduled payoffs and normal amortization.

Total deposits grew to $188.3 million at September 30, 2015, from $132.2 million at December 31, 2014, and from $130.7 million at September 30, 2014, largely due to the two-branch acquisition.

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 Glendale branch at 801 N. Brand Boulevard, Suite 180, Glendale, CA 91203; the Downey branch at 8255 Firestone Boulevard, Suite 110, Downey, CA 90241; the Commerce branch at 6001 E. Washington Blvd., Commerce, CA 90040; the Santa Fe Springs branch at 10400 S. Norwalk Blvd., Santa Fe Springs, CA 90670; and the Lancaster branch at 539 West Lancaster Boulevard, Lancaster, California 93534.

Information on products and services may be obtained by calling the branches or visiting www.aubank.com: Glendale (818) 637-7000; Downey (592) 299-9920; Commerce (323) 724-8801; Santa Fe Springs (562) 906-7220; and Lancaster (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
September 30,

June 30,

September 30, Annual September 30, Annual
Income Statement 2015 2015 2014 Change 2015 2014 Change
 
Interest Income $1,441,490 $1,471,165 $1,345,979 7.1% $4,329,029 $3,766,222 14.9%
Interest Expense 156,556 151,478 144,789 8.1% 457,190 398,518 14.7%
Net Interest Income 1,284,934 1,319,687 1,201,190 7.0% 3,871,839 3,367,704 15.0%
Provision for Loan Losses 0 0 0 NA -1,631,394 0 NA
Total Noninterest Income 175,829 116,013 158,328 11.1% 371,672 363,709 2.2%
Total Noninterest Expense 1,265,995 1,115,868 960,438 31.8% 3,550,126 2,987,893 18.8%
Income Before Taxes 194,768 319,832 399,080 -51.2% 2,324,779 743,520 212.7%
Income Tax Expense 86,538 131,838 166,481 -48.0% 970,489 308,719 214.4%
Net Income $108,230 $187,994 $232,599 -53.5% $1,354,290 $434,801 211.5%
 
Performance Ratios
Basic Earnings Per Share $0.04 $0.07 $0.08 $0.47 $0.15
Diluted Earnings Per Share $0.04 $0.06 $0.08 $0.46 $0.15
Net Interest Margin 3.01% 3.33% 3.05% 3.21% 3.15%
Return on Average Assets 0.25% 0.46% 0.57% 1.09% 0.39%
Return on Average Equity 1.67% 2.94% 3.85% 7.15% 2.44%
Efficiency Ratio 86.67% 77.72% 70.65% 83.66% 80.07%
 
 
September 30, June 30, September 30, December 31, Annual
BALANCE SHEET 2015 2015 2014 2014 Change
 
Cash and Due from Banks $3,385,565 $2,631,965 $2,444,965 $2,097,285 38.5%
Investments & Int. Bearing Deposits at Banks 44,879,634 38,720,599 37,462,837 35,626,532 19.8%
Federal Funds/FRB Balances 24,987,848 21,332,973 9,118,246 10,633,215 174.0%
Total Cash & Investments 73,253,047 62,685,537 49,026,048 48,357,032 49.4%
Gross Loans 142,872,717 104,594,712 107,277,577 109,814,834 33.2%
Allowance for Loan Losses -1,850,734 -1,850,552 -1,806,471 -1,849,587 2.5%
Loans, Net 141,021,983 102,744,160 105,471,106 107,965,247 33.7%
Property and Equipment, Net 349,617 307,160 293,744 300,191 19.0%
Other Assets 4,443,546 3,648,960 4,911,873 4,536,542 -9.5%
Total Assets $219,068,193 $169,385,817 $159,702,771 $161,159,012 37.2%
 
Non-Maturing Deposits $130,026,613 $85,742,717 $77,711,972 $75,890,512 67.3%
Certificates of Deposit 58,321,547 53,237,079 52,995,198 56,324,861 10.1%
Total Deposits 188,348,160 138,979,796 130,707,170 132,215,373 44.1%
FHLB Advances and Other Borrowings 4,000,000 4,000,000 4,000,000 4,000,000 0.0%
Other Liabilities 890,557 742,772 932,545 574,198 -4.5%

Total Liabilities

193,238,717 143,722,568 135,639,715 136,789,571 42.5%
Total Shareholders' Equity 25,829,476 25,663,249 24,063,056 24,369,441 7.3%
Total Liabilities and Shareholders' Equity $219,068,193 $169,385,817 $159,702,771 $161,159,012 37.2%
 
Asset Quality Ratios
Nonperforming Loans to Total Loans 0.00% 0.00% 0.01% 0.00%
Loss Allowance to Nonperforming Loans 0.00% 0.00% 25795.70% 43448.13%
Allowance for Loan Losses to Loans 1.30% 1.77% 1.68% 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% 0.03% 0.02%
 
Capital Ratios
Tier 1 Leverage Ratio 13.73% 14.53% 13.11% 13.75%
Tier 1 Risk-Based Capital Ratio 15.80% 21.36% 18.48% 18.91%
Total Risk-Based Capital Ratio 17.06% 22.63% 19.73% 20.16%
Common Equity Tier 1 Risk-Based Capital (a) 15.80% 21.36% - -
Book Value Per Share $8.97 $8.91 $8.36 $8.47
Common Shares Issued and Outstanding 2,880,150 2,880,150 2,878,150 2,878,150
 

Footnotes:

(a) Revised Regulatory Capital Ratio effective on January 1, 2015
 

Contacts

Investor Relations:
Americas United Bank
Jeff Pollard, 818-637-7000
or
Adriana M. Boeka, 818-637-7000

Release Summary

Americas United Bank Announces Third Quarter 2015 Results

Contacts

Investor Relations:
Americas United Bank
Jeff Pollard, 818-637-7000
or
Adriana M. Boeka, 818-637-7000