Americas United Bank Announces Results for the Fourth Quarter 2017 and Fiscal Year 2017

GLENDALE, Calif.--()--Americas United Bank (OTC Pink: AUNB) today announced financial results for the fourth quarter of 2017, with quarterly earnings of $535,575, or $0.19 per basic share and $0.18 per diluted share, and year-to-date net income of $1,780,805, or $0.62 per basic and $0.59 per diluted share. Total assets at the period-end were $235.2 million, and the Bank’s equity capital was $29.0 million.

“We have a strong 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 that we have achieved another profitable quarter and year. We reached a milestone in our history, and that is our book value exceeded our original stock issuance price. We continue to grow and operate in a prudent and sound manner which has contributed to our consistent profitability and our consecutive quarters of favorable operating results. Our credit quality remains strong and we are optimistic about the future,” said Adriana M. Boeka, President and Chief Executive Officer.

Fourth Quarter 2017 Financial Highlights:

  • Net income increased 61% to $553,575 in the fourth quarter of 2017, compared to $343,895 in the fourth quarter of 2016. On a year-to-date basis, net income increased 56.5% to $1,780,805 at December 31, 2017 as compared to $1,137,718 at December 31, 2016.
  • Net interest income increased 6.8% to $2,089,783 in the fourth quarter of 2017, compared to $1,956,243 in the fourth quarter of 2016.
  • Net interest margin was 3.54% in the fourth quarter of 2017, as compared to 3.55% in the fourth quarter of 2016.
  • Credit quality remains strong.
  • The loan portfolio increased 11.5% or $21.5 million to $209.6 million in the fourth quarter of 2017, when compared to the fourth quarter of 2016 which was $188.0 million.
  • Book value per share increased to $10.03 per share compared to $9.39 a year ago. Tangible book value per share increased to $9.88 per share.

No provision for loan losses was taken in the quarter as a result of the reserve being at the appropriate level. The allowance for loan losses totaled $2.2 million at December 31, 2017, or 1.06% of total loans.

Total assets were $235.2 million at December 31, 2017, an increase of $2.6 million, or 1.1% from $232.7 million at December 31, 2016.

Total deposits were $205.2 million, at December 31, 2017, an increase of $4.3 million, or 2.1% from $200.9 million at December 31, 2016. Non-maturing deposits decreased 4.8% to $128.6 million from $135.1 million a year earlier at December 31, 2016.

Shareholder equity increased to $29.0 million at December 31, 2017, from $27.0 million at December 31, 2016.

President and CEO Boeka said, “We have a strong 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 December 31, 2017. The Bank reported the following capital ratios at December 31, 2017:

   
Common Equity Tier 1 Capital Ratio 13.15 %
 
Tier 1 Leverage Ratio 12.03 %
 
Tier 1 Capital Ratio 13.15 %
 
Total Capital Ratio 14.20 %
 

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,   June 30,   March 31,   December 31, Annual December 31, Annual
Income Statement 2017 2017 2017 2017 2016 Change 2017   2016 Change
 
Interest Income $ 2,468,373 $ 2,389,344 $ 2,402,388 $ 2,171,351 $ 2,228,805 10.7 % $ 9,431,456 $ 8,360,626 12.8 %
Interest Expense   378,590     344,720     320,121     286,496     272,562   38.9 %   1,329,927     1,010,189   31.7 %
Net Interest Income 2,089,783 2,044,624 2,082,267 1,884,855 1,956,243 6.8 % 8,101,529 7,350,437 10.2 %
Provision for Loan Losses 0 0 0 0 0 NA 0 0 NA
Total Noninterest Income 105,331 130,191 116,915 131,304 135,372 -22.2 % 483,741 604,142 -19.9 %
Total Noninterest Expense   1,431,101     1,372,488     1,460,964     1,448,910     1,507,058   -5.0 %   5,713,463     6,009,854   -4.9 %
Income Before Taxes 764,013 802,327 738,218 567,249 584,557 30.7 % 2,871,807 1,944,725 47.7 %
Income Tax Expense   210,438     330,291     316,649     233,624     240,662   -12.6 %   1,091,002     807,007   35.2 %
Net Income $ 553,575   $ 472,036   $ 421,569   $ 333,625   $ 343,895   61.0 % $ 1,780,805   $ 1,137,718   56.5 %
 
Performance Ratios
Basic Earnings Per Share $ 0.19 $ 0.16 $ 0.15 $ 0.12 $ 0.12 $ 0.62 $ 0.40
Diluted Earnings Per Share $ 0.18 $ 0.16 $ 0.14 $ 0.11 $ 0.12 $ 0.59 $ 0.38
Net Interest Margin 3.54 % 3.52 % 3.61 % 3.40 % 3.55 % 3.52 % 3.40 %
Return on Average Assets 0.92 % 0.80 % 0.71 % 0.59 % 0.61 % 0.76 % 0.51 %
Return on Average Equity 7.65 % 6.62 % 6.09 % 4.95 % 5.07 % 6.36 % 4.28 %
Efficiency Ratio 65.19 % 63.11 % 66.43 % 71.86 % 72.05 % 66.55 % 75.55 %
 
 
December 31, September 30, June 30, March 31, December 31, Annual
BALANCE SHEET 2017 2017 2017 2017 2016 Change
 
Cash and Due from Banks $ 3,870,519 $ 3,280,890 $ 2,707,852 $ 3,509,194 $ 4,392,834 -11.9 %
Investments & Int. Bearing Deposits at Banks 11,844,836 16,531,673 17,926,868 17,589,996 20,939,858 -43.4 %
Federal Funds/FRB Balances   8,805,564     20,605,533     23,030,504     8,399,906     17,320,018   -49.2 %
Total Cash & Investments 24,520,919 40,418,096 43,665,224 29,499,096 42,652,710 -42.5 %
Gross Loans 209,562,341 196,359,977 196,095,673 202,169,810 188,022,774 11.5 %
Allowance for Loan Losses   -2,211,168     -2,466,157     -2,466,015     -2,465,944     -2,465,851   -10.3 %
Loans, Net 207,351,173 193,893,820 193,629,658 199,703,866 185,556,923 11.7 %
Property and Equipment, Net 467,787 488,913 525,526 558,490 596,621 -21.6 %
Other Assets   2,891,138     2,878,195     3,123,569     3,731,372     3,860,483   -25.1 %
Total Assets $ 235,231,017   $ 237,679,024   $ 240,943,977   $ 233,492,824   $ 232,666,737   1.1 %
 
Non-Maturing Deposits $ 128,572,657 $ 130,680,081 $ 135,548,391 $ 134,472,061 $ 135,059,802 -4.8 %
Certificates of Deposit   76,599,757     73,493,516     72,584,759     66,862,996     65,793,214   16.4 %
Total Deposits 205,172,414 204,173,597 208,133,150 201,335,057 200,853,016 2.2 %
FHLB Advances and Other Borrowings 0 4,000,000 4,000,000 4,000,000 4,000,000 -100.0 %
Other Liabilities   1,061,523     1,097,707     889,135     712,723     765,761   38.6 %
Total Liabilities 206,233,937 209,271,304 213,022,285 206,047,780 205,618,777 0.3 %
Total Shareholders' Equity   28,997,080     28,407,720     27,921,692     27,445,044     27,047,960   7.2 %
Total Liabilities and Shareholders' Equity $ 235,231,017   $ 237,679,024   $ 240,943,977   $ 233,492,824   $ 232,666,737   1.1 %
 
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 1.06 % 1.26 % 1.26 % 1.22 % 1.31 %
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 12.03 % 11.91 % 11.48 % 11.49 % 11.50 %
Tier 1 Risk-Based Capital Ratio 13.15 % 13.64 % 13.36 % 12.53 % 13.21 %
Total Risk-Based Capital Ratio 14.20 % 14.88 % 14.61 % 13.74 % 14.46 %
Common Equity Tier 1 Risk-Based Capital 13.15 % 13.64 % 13.36 % 12.53 % 13.21 %
Book Value Per Share $ 10.03 $ 9.86 $ 9.69 $ 9.53 $ 9.39
Common Shares Issued and Outstanding 2,890,150 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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