Market Overview

Americas United Bank Earns $541,000 in Third Quarter

Share:
GLENDALE, Calif.--(BUSINESS WIRE)--

Americas United Bank (OTCBB: AUNB) today reported net income of $541,000 in the third quarter of 2012, compared to net income of $233,000 in the third quarter a year ago.

“We had modest results for the third quarter as we have been favorably impacted by stabilized operations, improved credit quality, and the core business focus. We remain committed to our shareholders and providing them with a solid return. We are focused on our strategy of being a high quality service driven community business bank,” stated Adriana M. Boeka, President and Chief Executive Officer.

Third Quarter 2012 Financial Highlights

  • Net income for the third quarter of 2012 was $541,000 or $0.19 per basic and diluted common share as compared to $233,000, or $0.08 per basic and diluted share for the third quarter of 2011.
  • Total revenue for the third quarter of 2012 was $1,116,000, as compared to $1,405,000, for the third quarter of 2011.
  • Nonperforming loans declined to $433,000 or 0.40% of total loans at September 30, 2012, from $1,384,000, or 1.89% of total loans at year-end 2011, and $2,413,000, or 2.37% of total loans at September 30, 2011.
  • Total allowance for loan losses, including the allowance for undisbursed loan commitments, as a percentage of total loans was 3.51% at September 30, 2012, compared to 3.58% at December 31, 2011, and 3.71% at September 30, 2011.
  • Total loans outstanding at September 30, 2012 decreased to $63.3 million from $73.1 million at December 31, 2011, and from $77.9 million at September 30, 2011.
  • Total deposits at September 30, 2012 increased to $81.1 million from $74.3 million at December 31, 2011, and up from $76.6 million at September 30, 2011.
  • Return on Assets for the third quarter of 2012 was 2.03% and the Return on Equity was 11.79% for the same period. Year-to-date Return on Assets was 1.01% and Return on Equity was 5.91%.
  • Total risk-based capital ratio was 30.0%, Tier 1 risk-based capital ratio was 28.7%, and Tier 1 leverage ratio was 17.6% at September 30, 2012.

The year-to-date net income for 2012 was $1,062,000, or $0.37 per basic and diluted share, compared to a net loss of $637,000, or $0.22 per basic and diluted share, for the same period of 2011.

Income Statement Review

Third quarter net interest income was $887,000 compared to $1,108,000 in the third quarter of 2011. The early payoff of loans that occurred in the fourth quarter of 2011 and the first nine months of 2012 have contributed to this decline. In the third quarter of 2012, the net interest margin was 3.37% compared to 5.44% in the fourth quarter of 2011, and 4.32% for the third quarter of 2011. There has been a decline in the net interest margin due to the early payoff of loans that were on the books at higher rates.

Non-interest income was $86,000 in the third quarter of 2012, compared to $121,000 in the third quarter of 2011. Non-interest expense declined to $882,000 in the third quarter of 2012, from $966,000 in the third quarter of 2011.

Balance Sheet

“New loan demand has improved slightly during the course of the fiscal year as the economic conditions and consumer confidence has improved. The early payoff of loans has impacted our interest income however we remain focused on business development and increasing earning assets through various means,” said Ms. Boeka.

Total loans decreased from a year ago to $63,309,000 at September 30, 2012, compared to $73,114,000 at December 31, 2011, and $77,858,000 at September 30, 2011.

Commercial real estate loans outstanding decreased 21.6%, or $12.6 million, from year ago levels to $45,491,000 at September 30, 2012, and comprise 71.9% of the total loan portfolio. Commercial loans were up 1.9% to $11.4 million as compared to a year ago and now represent 18.0% of the total loan portfolio.

Total deposits were $81,154,000 million at September 30, 2012, compared to $76,563,000 a year earlier. Non-interest bearing accounts decreased 8.6% to $16,773,000 million at September 30, 2012, compared to $18,349,000 million a year ago. Interest bearing accounts increased 1.3% to $34,098,000 compared to $33,664,000 a year ago. Core deposits, defined as non-interest bearing, interest bearing and savings accounts increased 4.7%, or $2,310,000 to $51,117,000 at September 30, 2012, compared to $48,807,000 million at year end and decreased 2.2% or $1,132,000 from $52,249,000 a year earlier. Certificates of deposit increased 17.9% over the year end 2011 to $30,037,000, compared to $25,473,000 million at year end and increased 23.5% from a balance of $24,314,000 a year earlier.

“Core deposits grew $2.3 million for the first nine-months of 2012, which was due to the addition of deposit production staff and the deposit gathering efforts. We are looking to add successful business development professionals to our team to assist with the planned growth of our loans and deposits,” said Ms. Boeka.

Total assets were $108.4 million at quarter-end, compared to $100.4 million at year-end 2011, and $101.9 million a year earlier. Stockholders' equity was $18.7 million at quarter-end, compared to $17.6 million at year-end 2011, and $16.9 million a year earlier. The bank's book value per common share was $6.51 at quarter-end compared to $5.89 a year earlier.

Credit Quality

Nonperforming loans totaled $433,000, or 0.68% of total loans at September 30, 2012, compared to $1,384,000 or 1.89% of total loans at December 31, 2011 and $1,416,000, or 1.82% of total loans at September 30, 2011. The decrease in nonperforming loans from year-end 2011 to September 30, 2012 was $951,000.

“Our loan portfolio credit quality has improved over the past year as our customers have generally improved their operating performance that has coincided with the general improvement of the economic conditions. Our loan portfolio continues to perform well and has resulted in a sharp decline in nonperforming assets. Thus, the nonperforming loan balance has declined 69% since December 31, 2011, which was a focus of our strategy,” said Ms. Boeka.

The loan loss provision declined as there was a reversal of the provision as a result of the recovery of funds for loans that were previously charged-off and the decrease in the loans outstanding. The reversal of the loan loss provision was $450,000 for the third quarter of 2012 and $763,000 for the first nine-months of 2012. The total allowance for credit losses was $2,223,000 at quarter-end, equal to 3.51% of total loans, compared to $2,616,000, or 3.58% of total loans at December 31, 2011 and $2,890,000, or 3.71% of total loans a year ago.

AUB had net recoveries of $115,000 in the third quarter of 2012 compared to net charge-offs of $26,000 in the fourth quarter of 2011 and $466,000 in the third quarter of 2011.

Company Overview

Americas United Bank (AUB) is the first Hispanic-owned bank to open its doors in California in over thirty years and has the distinction of being the largest Hispanic-owned bank based in California. Founded by a group of respected and successful business leaders (primarily from the Hispanic community), AUB is a full service commercial bank that provides business and personal banking products and services.

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 1150, Glendale, CA 91203 and the Downey Office at 8255 Firestone Boulevard, Suite 110, Downey, CA 90241. Information on products and services may be obtained by calling (818) 637-7000 or visiting the Bank's website at www.aubank.com.

Safe Harbor Disclosure

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
CONDENSED BALANCE SHEETS
(unaudited)
(in 000's, except per share data)
           
 

September 30,

December 31,

September 30,
2012 2011 2011
 
Cash and cash equivalents $ 2,223 $ 2,393 $ 2,666
Interest-earning deposits in other financial institutions 7,609 490 0
Federal funds sold 33,920 22,510 19,680
Investment securities 2,526 3,284 2,362
Loans:
Commercial 11,395 12,121 11,187
Commercial real estate 45,491 52,928 58,056
Consumer 443 450 655
SBA 5,547 6,232 6,544
Non-accrual 433 1,383 1,416
Total loans 63,309 73,114 77,858
Loans, net 61,187 70,607 75,074
Other assets 916 1,109 2,172
TOTAL ASSETS $ 108,381 $ 100,393 $ 101,954
 
Deposits
Non-interest bearing $ 16,773 $ 16,550 $ 18,349
Interest bearing 34,098 32,027 33,664
Savings 246 230 236
CDs over $100,000 27,832 21,706 20,385
CDs under $100,000 2,205 3,767 3,929
Total deposits 81,154 74,280 76,563
Other borrowing 8,000 8,000 8,000
Other liabilities 480 480 449
TOTAL LIABILITIES 89,634 82,760 85,012
 
Stockholders' equity 18,747 17,633 16,942
 
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 108,381 $ 100,393 $ 101,954
 
Shares outstanding 2,878 2,878 2,878
 
Book value per common share $ 6.51 $ 6.13 $ 5.89
 

AMERICAS UNITED BANK
CONDENSED INCOME STATEMENTS
(unaudited)
(in 000's, except per share data)
                     
Three Months Ended Year-To-Date
September 30, December 31, September 30, September 30, September 30,
2012 2011 2011 2012 2011
 
Interest Income $ 1,030 $ 1,513 $ 1,284 $ 3,272 $ 4,334
Interest Expense 143 163 176 444 605
Net interest income 887 1,350 1,108 2,828 3,729
Provision for loan losses (450 ) (249 ) 30 (763 ) 1,533
Net interest income after
provision for loan losses 1,337 1,599 1,078 3,591 2,196
Non-interest income 86 85 121 225 264
Non-interest expenses 882 1,011 966 2,753 3,096
 
Income before income taxes 541 673 233 1,063 (636 )
Provision for income taxes 1 1
 
NET INCOME $ 541 $ 673 $ 233 $ 1,062 $ (637 )
 
Earnings (Loss) per common Share:
Basic & Diluted $ 0.19 $ 0.23 $ 0.08 $ 0.37 ($0.22 )
 

AMERICAS UNITED BANK
ADDITIONAL FINANCIAL INFORMATION
(Dollars in thousands except per share amounts) (unaudited)
 
    Quarter Ended     Quarter Ended     Quarter Ended
PERFORMANCE MEASURES AND RATIOS September 30, 2012   Dec. 31, 2011   September 30, 2011
Return on average common equity 11.79 % 15.75 % 5.50 %
Return on average assets 2.03 % 2.66 % 0.89 %
Efficiency ratio 90.65 % 70.45 % 78.60 %
Net interest margin 3.37 % 5.44 % 4.32 %
 
Quarter Ended Quarter Ended Quarter Ended
AVERAGE BALANCES September 30, 2012   Dec. 31, 2011   September 30, 2011
Average assets $ 106,466 $ 101,326 $ 104,431
Average earning assets 105,340 99,265 102,588
Average total loans 64,335 76,629 79,577
Average deposits 79,634 75,785 79,063
Average equity 18,362 17,094 16,956
Average common equity 18,362 17,094 16,956
 
EQUITY ANALYSIS September 30, 2012   Dec. 31, 2011   September 30, 2011
Total equity $ 18,746 $ 17,633 $ 16,942
Total common equity 18,746 17,633 16,942
 
Common stock outstanding 2,878 2,878 2,878
Book value per common share $ 6.51 $ 6.13 $ 5.89
 
ASSET QUALITY September 30, 2012   Dec. 31, 2011   September 30, 2011
Nonperforming loans (NPLs) $ 433 $ 1,384 $ 1,416
Nonperforming loans/total loans 0.68 % 1.89 % 1.82 %
REO and repossessed assets $ 0 $ 0 $ 997
Nonperforming assets, net $ 433 $ 1,384 $ 2,413
Nonperforming assets/total assets 0.40 % 1.38 % 2.37 %
Net loan charge-offs in the quarter $ -115 $ 26 $ 466
Net charge-offs in the quarter/total loans -0.18 % 0.04 % 0.60 %
 
Allowance for loan losses $ 2,091 $ 2,484 $ 2,758
Plus: Allowance for undisbursed loan commitments $ 132 $ 132 $ 132
Total allowance for credit losses $ 2,223 $ 2,616 $ 2,890
Total allowance for loan losses/total loans 3.51 % 3.58 % 3.71 %
Total allowance for loan losses/nonperforming loans 482.91 % 179.48 % 194.77 %
 
CAPITAL RATIOS
Tier 1 leverage ratio 17.60 % 17.38 % 16.21 %
Tier 1 risk-based capital ratio 28.73 % 23.72 % 21.25 %
Total risk-based capital ratio 30.00 % 25.00 % 22.53 %
 
INTEREST SPREAD ANALYSIS September 30, 2012   Dec. 31, 2011   September 30, 2011
Yield on interest-bearing deposits with other banks 0.55 % 0.89 % 0.00 %
Yield on total loans 6.31 % 9.96 % 6.18 %
Yield on investments 0.30 % 0.47 % 0.38 %
Yield on earning assets 3.95 % 7.91 % 4.94 %
 
Cost of deposits 0.57 % 0.69 % 0.74 %
Cost of FHLB advances 1.38 % 1.38 % 1.38 %
Cost of interest-bearing liabilities 0.72 % 0.90 % 0.97 %

Americas United Bank
Adriana M. Boeka, President & CEO
818.637.7000
or
Jeffrey Pollard, EVP & CFO
818.637.7000




View Comments and Join the Discussion!