Americas United Bank Announces Results for the First Quarter of 2016

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

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

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