Americas United Bank Announces Results for the Fourth Quarter and Fiscal Year 2015

GLENDALE, Calif.--()--Americas United Bank (OTCQB: AUNB) today announced financial results for the fourth quarter and fiscal year period ended December 31, 2015, with quarterly income of $155,923, or $0.05 per basic share and annual net income of $1,510,213, or $0.52 per basic share. Total assets at the period-end were $219.9 million, and the Bank’s equity capital was $25.9 million.

“Our core earnings benefit from the increase in earning assets and the steps we have taken to generate greater levels of interest income.”

“I am very pleased to report another positive quarter of earnings performance and growth for the Bank. We were able to absorb our two new branches and merge the operations without any significant issues and this contributed to our solid earnings performance for the fourth quarter of 2015. We are proud of the fact that we have been profitable every quarter since the second quarter of 2011. We continue to be positive as we move forward in 2016 and beyond with measured growth and core profits,” said Adriana M. Boeka, the Bank’s President and Chief Executive Officer.

Financial Performance

The Bank’s net income for the fourth quarter of 2015 was $155,923, or $0.05 per basic share compared to the $108,230 or $0.04 per basic share for the prior quarter and $186,575, or $0.06 per basic share for the fourth quarter of 2014. Net income for the 2015 fiscal year was $1,510,213, or $0.52 per basic share, compared to $621,376, or $0.22 per basic share for 2014. As reported in the first quarter of 2015, net income was favorably impacted by recovery of a previously charged-off loan.

President and CEO Boeka continued, “Our core earnings benefit from the increase in earning assets and the steps we have taken to generate greater levels of interest income.”

Total assets were $219.9 million at December 31, 2015, up $863,000 from the prior quarter and $58.8 million from the fourth quarter a year ago. The Bank’s equity capital was $25.9 million at December 31, 2015, as compared to $25.8 million at September 30, 2015 and $24.4 million at December 31, 2014.

President and CEO Boeka said, “Our balance sheet is comprised of good quality assets and it is this quality that further contributes to our earnings and augments our potential for success as we strive to avoid any unforeseen asset quality issues that negatively impact earnings. Our loan loss reserve remains robust.”

The Bank’s net interest income for the fourth quarter of 2015 was $1,632,810, compared to $1,284,934 for the prior quarter and $1,293,379 last year. The increase is the result of the additional earning assets added at the end of the third quarter of 2015. The fourth quarter 2015 net interest margin was 3.09%, compared to 3.01% for the prior quarter and 3.34% for the fourth quarter of last year.

Noninterest income was $199,016 for the fourth quarter of 2015, compared to $175,829 for the prior quarter and $195,940 for the fourth quarter of 2014. The 2015 annual noninterest income was $570,688, compared to $559,649 for 2014.

The annual noninterest expense increased to $5,129,821 this year from $4,121,774 last year. The increase was the result of additional operating expenses such as staffing, occupancy, data and item processing, and other expenses for the full year’s operation of the Lancaster branch, which was acquired on March 31, 2014, and the addition of the Commerce and Santa Fe Springs branches which were merged on September 25, 2015. In addition there were acquisition related costs associated with each of the acquisitions in 2014 and 2015.

Commercial Banking

The Bank’s loans totaled $171.1 million at December 31, 2015, compared to $109.8 million at December 31, 2014, primarily due to the addition of new commercial real estate loans. Total deposits grew by 43.1% in the past twelve months, which was mainly due to the addition of the Commerce and Santa Fe Springs branches that were purchased from another financial institution in the third quarter of 2015. Our core commercial lending operations has benefited from the acquisition of these branches.

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
December 31, September 30, December 31, Annual December 31, Annual
Income Statement 2015 2015 2014 Change 2015 2014 Change
 
Interest Income $ 1,823,227 $ 1,441,490 $ 1,434,888 27.1 % $ 6,152,256 $ 5,201,110 18.3 %
Interest Expense   190,417     156,556     141,509   34.6 %   647,607     540,027   19.9 %
Net Interest Income 1,632,810 1,284,934 1,293,379 26.2 % 5,504,649 4,661,083 18.1 %
Provision for Loan Losses 0 0 0 NA -1,631,394 0 NA
Total Noninterest Income 199,016 175,829 195,940 1.6 % 570,688 559,649 2.0 %
Total Noninterest Expense   1,579,695     1,265,995     1,133,881   39.3 %   5,129,821     4,121,774   24.5 %
Income Before Taxes 252,131 194,768 355,438 -29.1 % 2,576,910 1,098,958 134.5 %
Income Tax Expense   96,208     86,538     168,863   -43.0 %   1,066,697     477,582   123.4 %
Net Income $ 155,923   $ 108,230   $ 186,575   -16.4 % $ 1,510,213   $ 621,376   143.0 %
 
Performance Ratios
Basic Earnings Per Share $ 0.05 $ 0.04 $ 0.06 $ 0.52 $ 0.22
Diluted Earnings Per Share $ 0.05 $ 0.04 $ 0.06 $ 0.51 $ 0.21
Net Interest Margin 3.09 % 3.01 % 3.34 % 3.17 % 3.19 %
Return on Average Assets 0.29 % 0.25 % 0.47 % 0.84 % 0.41 %
Return on Average Equity 2.41 % 1.67 % 3.04 % 5.93 % 2.60 %
Efficiency Ratio 86.24 % 86.67 % 76.13 % 84.44 % 78.95 %
 
 
December 31, September 30,

June 30,

December 31, Annual
BALANCE SHEET 2015 2015 2015 2014 Change
 
Cash and Due from Banks $ 3,397,000 $ 3,385,565 $ 2,631,965 $ 2,097,285 62.0 %
Investments & Int. Bearing Deposits at Banks 34,808,151 44,879,634 38,720,599 35,626,532 -2.3 %
Federal Funds/FRB Balances   7,417,722     24,987,848     21,332,973     10,633,215   -30.2 %
Total Cash & Investments 45,622,873 73,253,047 62,685,537 48,357,032 -5.7 %
Gross Loans 171,091,504 142,872,717 104,594,712 109,814,834 55.8 %
Allowance for Loan Losses   -2,451,074     -1,850,734     -1,850,552     -1,849,587   32.5 %
Loans, Net 168,640,430 141,021,983 102,744,160 107,965,247 56.2 %
Property and Equipment, Net 525,973 349,617 307,160 300,191 75.2 %
Other Assets   5,142,226     4,443,546     3,648,960     4,536,542   13.4 %
Total Assets $ 219,931,502   $ 219,068,193   $ 169,385,817   $ 161,159,012   36.5 %
 
Non-Maturing Deposits $ 133,012,773 $ 130,026,613 $ 85,742,717 $ 75,890,512 75.3 %
Certificates of Deposit   56,245,314     58,321,547     53,237,079     56,324,861   -0.1 %
Total Deposits 189,258,087 188,348,160 138,979,796 132,215,373 43.1 %
FHLB Advances and Other Borrowings 4,000,000 4,000,000 4,000,000 4,000,000 0.0 %
Other Liabilities   756,753     890,557     742,772     574,198   31.8 %

Total Liabilities

194,014,840 193,238,717 143,722,568 136,789,571 41.8 %
Total Shareholders' Equity   25,916,662     25,829,476     25,663,249     24,369,441   6.3 %
Total Liabilities and Shareholders' Equity $ 219,931,502   $ 219,068,193   $ 169,385,817   $ 161,159,012   36.5 %
 
Asset Quality Ratios
Nonperforming Loans to Total Loans 0.00 % 0.00 % 0.00 % 0.00 %
Loss Allowance to Nonperforming Loans 0.00 % 0.00 % 0.00 % 43448.13 %
Allowance for Loan Losses to Loans 1.43 % 1.30 % 1.77 % 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 % 0.00 % 0.02 %
 
Capital Ratios
Tier 1 Leverage Ratio 11.12 % 13.73 % 14.53 % 13.75 %
Tier 1 Risk-Based Capital Ratio 13.50 % 15.80 % 21.36 % 18.91 %
Total Risk-Based Capital Ratio 14.76 % 17.06 % 22.63 % 20.16 %
Common Equity Tier 1 Risk-Based Capital (a) 13.50 % 15.80 % 21.36 % -
Book Value Per Share $ 9.00 $ 8.97 $ 8.91 $ 8.47
Common Shares Issued and Outstanding 2,880,150 2,880,150 2,880,150 2,878,150
 

Footnotes:

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

Contacts

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

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Release Summary

Q4 2015 Earnings Release

Americas United Bank