Americas United Bank Announces Results for the First Quarter 2018

GLENDALE, Calif.--()--Americas United Bank (OTC Pink: AUNB) today announced financial results for the first quarter of 2018, with quarterly earnings of $471,994, or $0.16 per basic share and $0.15 per diluted share. Total assets at the period-end were $229.1 million, and the Bank’s equity capital was $29.7 million.

“We are pleased to report that we achieved another profitable quarter and have continued to operate in prudent and sound manner and this has contributed to our continued success. We were also profitable while having incurred merger related expenses as a result of our announced merger with the Bank of Southern California that is expected to close in the third quarter of 2018,” said Adriana M. Boeka, President and Chief Executive Officer.

First Quarter 2018 Financial Highlights:

  • Net income increased 41.5% to $471,994 in the first quarter of 2018, compared to $333,625 in the first quarter of 2017.
  • Net interest margin was 3.55% in the first quarter of 2018, as compared to 3.40% in the first quarter of 2017.
  • Credit quality remains strong.
  • The loan portfolio decreased 0.15% or $309,000 to $201.9 million in the first quarter of 2018, when compared to the first quarter 2017 of $202.2 million.
  • Book value per share increased to $10.15 per share compared to $9.53 a year ago. Tangible book value per share increased to $10.01 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 $2.2 million at March 31, 2018, or 1.10% of total loans.

Total assets were $229.1 million at March 31, 2018, a decrease of $4.4 million, or 1.9% from $233.5 million at March 31, 2017

Total deposits were $198.4 million, at March 31, 2018, a decrease of $2.9 million, or 1.4% from $201.3 million at March 31, 2017. Core deposits defined as noninterest bearing demand, money market, NOW, and savings accounts decreased 7.1% to $124.9 million from $134.5 million a year earlier at March 31, 2017.

Shareholder equity increased to $29.7 million at March 31, 2018, from $27.4 million at March 31, 2017.

President and CEO Boeka said, “Our deposit levels dipped in the first quarter from our customers using their funds as the strong economy has spurred use of available funds. Our balance sheet remains strong and is comprised of good quality earning assets that allows for steady and progressive earnings growth. We continue to seek additional opportunities to enhance shareholder value and we are looking forward to the consummation of our merger with the Bank of Southern California that was announced earlier in 2018.”

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, 2018. The Bank reported the following capital ratios at March 31, 2018:

Common Equity Tier 1 Capital Ratio     14.07%
 
Tier 1 Leverage Ratio 12.61%
 
Tier 1 Capital Ratio 14.07%
 
Total Capital Ratio 15.16%
 

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, September 30, June 30, March 31, Annual March 31, Annual
Income Statement 2018 2017 2017 2017 2017 Change 2018 2017 Change
 
Interest Income $ 2,386,695 $ 2,468,373 $ 2,389,344 $ 2,402,388 $ 2,171,351 9.9 % $ 2,386,695 $ 2,171,351 9.9 %
Interest Expense   382,591     378,590     344,720     320,121     286,496   33.5 %   382,591     286,496   33.5 %
Net Interest Income 2,004,104 2,089,783 2,044,624 2,082,267 1,884,855 6.3 % 2,004,104 1,884,855 6.3 %
Provision for Loan Losses 0 0 0 0 0 NA 0 0 NA
Total Noninterest Income 87,604 105,331 130,191 116,915 131,304 -33.3 % 87,604 131,304 -33.3 %
Total Noninterest Expense   1,569,423     1,431,101     1,372,488     1,460,964     1,448,910   8.3 %   1,569,423     1,448,910   8.3 %
Income Before Taxes 522,285 764,013 802,327 738,218 567,249 -7.9 % 522,285 567,249 -7.9 %
Income Tax Expense   50,291     210,438     330,291     316,649     233,624   -78.5 %   50,291     233,624   -78.5 %
Net Income $ 471,994   $ 553,575   $ 472,036   $ 421,569   $ 333,625   41.5 % $ 471,994   $ 333,625   41.5 %
 
Performance Ratios
Basic Earnings Per Share $ 0.16 $ 0.19 $ 0.16 $ 0.15 $ 0.12 $ 0.16 $ 0.12
Diluted Earnings Per Share $ 0.15 $ 0.18 $ 0.16 $ 0.14 $ 0.11 $ 0.15 $ 0.11
Net Interest Margin 3.55 % 3.54 % 3.52 % 3.61 % 3.40 % 3.55 % 3.40 %
Return on Average Assets 0.82 % 0.92 % 0.80 % 0.71 % 0.59 % 0.82 % 0.58 %
Return on Average Equity 6.51 % 7.65 % 6.62 % 6.09 % 4.95 % 6.51 % 4.90 %
Efficiency Ratio 75.03 % 65.19 % 63.11 % 66.43 % 71.86 % 75.03 % 71.86 %
 
 
March 31, December 31, September 30, June 30, March 31, Annual
BALANCE SHEET 2018 2017 2017 2017 2017 Change
 
Cash and Due from Banks $ 2,799,033 $ 3,870,519 $ 3,280,890 $ 2,707,852 $ 3,509,194 -20.2 %
Investments & Int. Bearing Deposits at Banks 9,906,982 11,844,836 16,531,673 17,926,868 17,589,996 -43.7 %
Federal Funds/FRB Balances   13,695,628     8,805,564     20,605,533     23,030,504     8,399,906   63.0 %
Total Cash & Investments 26,401,643 24,520,919 40,418,096 43,665,224 29,499,096 -10.5 %
Gross Loans 201,860,534 209,562,341 196,359,977 196,095,673 202,169,810 -0.2 %
Allowance for Loan Losses   -2,213,506     -2,211,168     -2,466,157     -2,466,015     -2,465,944   -10.2 %
Loans, Net 199,647,028 207,351,173 193,893,820 193,629,658 199,703,866 0.0 %
Property and Equipment, Net 427,487 467,787 488,913 525,526 558,490 -23.5 %
Other Assets   2,588,668     2,891,138     2,878,195     3,123,569     3,731,372   -30.6 %
Total Assets $ 229,064,826   $ 235,231,017   $ 237,679,024   $ 240,943,977   $ 233,492,824   -1.9 %
 
Non-Maturing Deposits $ 124,862,503 $ 128,572,657 $ 130,680,081 $ 135,548,391 $ 134,472,061 -7.1 %
Certificates of Deposit   73,560,352     76,599,757     73,493,516     72,584,759     66,862,996   10.0 %
Total Deposits 198,422,855 205,172,414 204,173,597 208,133,150 201,335,057 -1.4 %
FHLB Advances and Other Borrowings 0 0 4,000,000 4,000,000 4,000,000 -100.0 %
Other Liabilities   969,766     1,061,523     1,097,707     889,135     712,723   36.1 %
Total Liabilities 199,392,621 206,233,937 209,271,304 213,022,285 206,047,780 -3.2 %
Total Shareholders' Equity   29,672,205     28,997,080     28,407,720     27,921,692     27,445,044   8.1 %
Total Liabilities and Shareholders' Equity $ 229,064,826   $ 235,231,017   $ 237,679,024   $ 240,943,977   $ 233,492,824   -1.9 %
 
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 1.10 % 1.06 % 1.26 % 1.26 % 1.22 %
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 12.61 % 12.03 % 11.91 % 11.48 % 11.49 %
Tier 1 Risk-Based Capital Ratio 14.07 % 13.15 % 13.64 % 13.36 % 12.53 %
Total Risk-Based Capital Ratio 15.16 % 14.20 % 14.88 % 14.61 % 13.74 %
Common Equity Tier 1 Risk-Based Capital 14.07 % 13.15 % 13.64 % 13.36 % 12.53 %
Book Value Per Share $ 10.15 $ 10.03 $ 9.86 $ 9.69 $ 9.53
Common Shares Issued and Outstanding 2,923,150 2,890,150 2,880,150 2,880,150 2,880,150

Contacts

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

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Release Summary

First quarter 2018 earning release

Americas United Bank