Americas United Bank Announces Results for the Second Quarter 2017

GLENDALE, Calif.--()--Americas United Bank (OTC Pink: AUNB) today announced financial results for the second quarter of 2017, with quarterly earnings of $421,569, or $0.15 per basic share and $0.14 per diluted share. Total assets at the period-end were $240.9 million, and the Bank’s equity capital was $27.9 million.

“We have a solid balance sheet that is comprised of good quality earning assets and this has contributed to our steady and progressive earnings growth. We continue to seek additional opportunities to enhance shareholder value.”

“I am pleased to report another profitable quarter and improved results specifically in our net interest income levels for both the quarter and year-to-date. We continue to grow and operate in an efficient manner which has led to our improved profitability and our consecutive quarters of favorable operating results. We remain optimistic and continue to strive to improve our operation,” said Adriana M. Boeka, President and Chief Executive Officer.

Second Quarter 2017 Financial Highlights:

  • Net income increased 79.2% to $421,569 in the second quarter of 2017, compared to $235,197 in the second quarter of 2016.
  • Net interest income increased 13.2% to $3,967,122 in 2017 year-to-date compared to $3,503,828 in 2016 year-to-date.
  • Net interest margin was 3.61% in the second quarter of 2017, as compared to 3.21% in the second quarter of 2016.
  • Non-performing assets remain at nil. Credit quality remains strong with 10 successive quarters of zero non-performing assets.
  • The loan portfolio increased 6.4% or $11.8 million to $196.1 million in the second quarter of 2017, when compared to the second quarter 2016 of $184.2 million.
  • Book value per share increased to $9.69 per share compared to $9.19 a year ago. Tangible book value per share increased to $9.52 per share.

No provision for loan losses was taken in the 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, 2017, or 1.26% of total loans.

Total assets were $240.9 million at June 30, 2017, an increase of $18.2 million, or 8.2% from $222.8 million at June 30, 2016

Total deposits were $208.1 million, at June 30, 2017, an increase of $16.7 million, or 8.7% from $191.4 million at June 30, 2016. Core deposits defined as noninterest bearing demand, money market, NOW, and savings accounts increased 9.6% to $135.5 million from $123.7 million a year earlier at June 30, 2016.

Shareholder equity increased to $27.9 million at June 30, 2017, from $26.5 million at June 30, 2016.

President and CEO Boeka said, “We have a solid balance sheet that is comprised of good quality earning assets and this has contributed to our steady and progressive earnings growth. We continue to seek additional 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, 2017. The Bank reported the following capital ratios at June 30, 2017:

Common Equity Tier 1 Capital Ratio     13.36 %
 
Tier 1 Leverage Ratio 11.48 %
 
Tier 1 Capital Ratio 13.36 %
 
Total Capital Ratio 14.61 %
 

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, September 30, June 30, Annual June 30, Annual
Income Statement   2017     2017     2016     2016     2016   Change   2017     2016   Change
 
Interest Income $ 2,402,388 $ 2,171,351 $ 2,228,805 $ 2,157,750 $ 2,003,953 19.9 % $ 4,573,739 $ 3,974,071 15.1 %
Interest Expense   320,121     286,496     272,562     267,384     258,898   23.6 %   606,617     470,243   29.0 %
Net Interest Income 2,082,267 1,884,855 1,956,243 1,890,366 1,745,055 19.3 % 3,967,122 3,503,828 13.2 %
Provision for Loan Losses 0 0 0 0 0 NA 0 0 NA
Total Noninterest Income 116,915 131,304 135,372 138,862 161,562 -27.6 % 248,219 329,908 -24.8 %
Total Noninterest Expense   1,460,964     1,448,910     1,507,058     1,437,375     1,501,124   -2.7 %   2,909,874     3,065,421   -5.1 %
Income Before Taxes 738,218 567,249 584,557 591,853 405,493 82.1 % 1,305,467 768,315 69.9 %
Income Tax Expense   316,649     233,624     240,662     243,759     170,296   85.9 %   550,273     322,586   70.6 %
Net Income $ 421,569   $ 333,625   $ 343,895   $ 348,094   $ 235,197   79.2 % $ 755,194   $ 445,729   69.4 %
 
Performance Ratios
Basic Earnings Per Share $ 0.15 $ 0.12 $ 0.12 $ 0.12 $ 0.08 $ 0.26 $ 0.15
Diluted Earnings Per Share $ 0.14 $ 0.11 $ 0.12 $ 0.12 $ 0.08 $ 0.25 $ 0.15
Net Interest Margin 3.61 % 3.40 % 3.55 % 3.42 % 3.21 % 3.50 % 3.30 %
Return on Average Assets 0.71 % 0.59 % 0.61 % 0.61 % 0.42 % 0.65 % 0.41 %
Return on Average Equity 6.09 % 4.95 % 5.07 % 5.18 % 3.59 % 5.53 % 3.41 %
Efficiency Ratio 66.43 % 71.86 % 72.05 % 70.83 % 78.73 % 69.03 % 79.96 %
 
 
June 30, March 31, December 31, September 30, June 30, Annual
BALANCE SHEET   2017     2017     2016     2016     2016   Change
 
Cash and Due from Banks $ 2,707,852 $ 3,509,194 $ 4,392,834 $ 3,870,602 $ 3,663,863 -26.1 %
Investments & Int. Bearing Deposits at Banks 17,926,868 17,589,996 20,939,858 24,077,006 23,990,665 -25.3 %
Federal Funds/FRB Balances   23,030,504     8,399,906     17,320,018     6,865,117     8,175,215   181.7 %
Total Cash & Investments 43,665,224 29,499,096 42,652,710 34,812,725 35,829,743 21.9 %
Gross Loans 196,095,673 202,169,810 188,022,774 190,305,311 184,249,456 6.4 %
Allowance for Loan Losses   -2,466,015     -2,465,944     -2,465,851     -2,465,791     -2,453,782   0.5 %
Loans, Net 193,629,658 199,703,866 185,556,923 187,839,520 181,795,674 6.5 %
Property and Equipment, Net 525,526 558,490 596,621 437,661 472,225 11.3 %
Other Assets   3,123,569     3,731,372     3,860,483     4,307,905     4,685,142   -33.3 %
Total Assets $ 240,943,977   $ 233,492,824   $ 232,666,737   $ 227,397,811   $ 222,782,784   8.2 %
 
Non-Maturing Deposits $ 135,548,391 $ 134,472,061 $ 135,059,802 $ 127,845,580 $ 123,663,527 9.6 %
Certificates of Deposit   72,584,759     66,862,996     65,793,214     67,564,901     67,787,511   7.1 %
Total Deposits 208,133,150 201,335,057 200,853,016 195,410,481 191,451,038 8.7 %
FHLB Advances and Other Borrowings 4,000,000 4,000,000 4,000,000 4,000,000 4,000,000 0.0 %
Other Liabilities   889,135     712,723     765,761     1,150,454     854,657   4.0 %
Total Liabilities 213,022,285 206,047,780 205,618,777 200,560,935 196,305,695 8.5 %
Total Shareholders' Equity   27,921,692     27,445,044     27,047,960     26,836,876     26,477,089   5.5 %
Total Liabilities and Shareholders' Equity $ 240,943,977   $ 233,492,824   $ 232,666,737   $ 227,397,811   $ 222,782,784   8.2 %
 
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 1.26 % 1.22 % 1.31 % 1.30 % 1.33 %
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 11.48 % 11.49 % 11.50 % 11.26 % 11.03 %
Tier 1 Risk-Based Capital Ratio 13.36 % 12.53 % 13.21 % 12.74 % 12.79 %
Total Risk-Based Capital Ratio 14.61 % 13.74 % 14.46 % 14.00 % 14.04 %
Common Equity Tier 1 Risk-Based Capital 13.36 % 12.53 % 13.21 % 12.74 % 12.79 %
Book Value Per Share $ 9.69 $ 9.53 $ 9.39 $ 9.32 $ 9.19
Common Shares Issued and Outstanding 2,880,150 2,880,150 2,880,150 2,880,150 2,880,150

Contacts

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

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Release Summary

Americas United Bank Announces Results for the Second Quarter 2017

Americas United Bank