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Americas United Bank Announces Results for the Third Quarter 2017

GLENDALE, Calif.--(BUSINESS WIRE)-- Americas United Bank (OTC Pink: AUNB) today announced financial results for the third quarter of 2017, with quarterly earnings of $472,036, or $0.16 per basic and diluted share. Total assets at the period-end were $237.7 million, and the Bank’s equity capital was $28.4 million.

“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.

Third Quarter 2017 Financial Highlights:

  • Net income increased 35.6% to $472,036 in the third quarter of 2017, compared to $348,094 in the third quarter of 2016.
  • Net interest income increased 8.2% to $2,044,624 in the third quarter of 2017, compared to $1,890,366 in the third quarter of 2016.
  • Net interest margin was 3.52% in the third quarter of 2017, as compared to 3.42% in the third quarter of 2016.
  • Non-performing assets remain at nil. Credit quality remains strong with 11 successive quarters of zero non-performing assets.
  • The loan portfolio increased 3.2% or $6.1 million to $196.4 million in the third quarter of 2017, when compared to the third quarter of 2016 which was $190.3 million.
  • Book value per share increased to $9.86 per share compared to $9.32 a year ago. Tangible book value per share increased to $9.70 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 September 30, 2017, or 1.26% of total loans.

Total assets were $237.7 million at September 30, 2017, an increase of $10.3 million, or 4.5% from $227.4 million at September 30, 2016.

Total deposits were $204.2 million, at September 30, 2017, an increase of $8.8 million, or 4.5% from $195.4 million at September 30, 2016. Core deposits defined as noninterest bearing demand, money market, NOW, and savings accounts increased 2.2% to $130.7 million from $127.8 million a year earlier at September 30, 2016.

Shareholder equity increased to $28.4 million at September 30, 2017, from $26.8 million at September 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 September 30, 2017. The Bank reported the following capital ratios at September 30, 2017:

Common Equity Tier 1 Capital Ratio 13.64%
Tier 1 Leverage Ratio 11.91%
Tier 1 Capital Ratio 13.64%
Total Capital Ratio 14.88%

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
September 30, June 30, March 31, December 31, September 30, Annual September 30, Annual
Income Statement 2017 2017 2017 2016 2016 Change 2017 2016 Change
Interest Income $ 2,389,344 $ 2,402,388 $ 2,171,351 $ 2,228,805 $ 2,157,750 10.7 % $ 6,963,083 $ 6,131,821 13.6 %
Interest Expense 344,720 320,121 286,496 272,562 267,384 28.9 % 951,337 737,627 29.0 %
Net Interest Income 2,044,624 2,082,267 1,884,855 1,956,243 1,890,366 8.2 % 6,011,746 5,394,194 11.4 %
Provision for Loan Losses 0 0 0 0 0 NA 0 0 NA
Total Noninterest Income 130,191 116,915 131,304 135,372 138,862 -6.2 % 378,410 468,770 -19.3 %
Total Noninterest Expense 1,372,488 1,460,964 1,448,910 1,507,058 1,437,375 -4.5 % 4,282,362 4,502,796 -4.9 %
Income Before Taxes 802,327 738,218 567,249 584,557 591,853 35.6 % 2,107,794 1,360,168 55.0 %
Income Tax Expense 330,291 316,649 233,624 240,662 243,759 35.5 % 880,564 566,345 55.5 %
Net Income $ 472,036 $ 421,569 $ 333,625 $ 343,895 $ 348,094 35.6 % $ 1,227,230 $ 793,823 54.6 %
Performance Ratios
Basic Earnings Per Share $ 0.16 $ 0.15 $ 0.12 $ 0.12 $ 0.12 $ 0.43 $ 0.28
Diluted Earnings Per Share $ 0.16 $ 0.14 $ 0.11 $ 0.12 $ 0.12 $ 0.41 $ 0.27
Net Interest Margin 3.52 % 3.61 % 3.40 % 3.55 % 3.42 % 3.51 % 3.35 %
Return on Average Assets 0.80 % 0.71 % 0.59 % 0.61 % 0.61 % 0.70 % 0.48 %
Return on Average Equity 6.62 % 6.09 % 4.95 % 5.07 % 5.18 % 5.91 % 4.01 %
Efficiency Ratio 63.11 % 66.43 % 71.86 % 72.05 % 70.83 % 67.01 % 76.80 %
September 30, June 30, March 31, December 31, September 30, Annual
BALANCE SHEET 2017 2017 2017 2016 2016 Change
Cash and Due from Banks $ 3,280,890 $ 2,707,852 $ 3,509,194 $ 4,392,834 $ 3,870,602 -15.2 %
Investments & Int. Bearing Deposits at Banks 16,531,673 17,926,868 17,589,996 20,939,858 24,077,006 -31.3 %
Federal Funds/FRB Balances 20,605,533 23,030,504 8,399,906 17,320,018 6,865,117 200.1 %
Total Cash & Investments 40,418,096 43,665,224 29,499,096 42,652,710 34,812,725 16.1 %
Gross Loans 196,359,977 196,095,673 202,169,810 188,022,774 190,305,311 3.2 %
Allowance for Loan Losses -2,466,157 -2,466,015 -2,465,944 -2,465,851 -2,465,791 0.0 %
Loans, Net 193,893,820 193,629,658 199,703,866 185,556,923 187,839,520 3.2 %
Property and Equipment, Net 488,913 525,526 558,490 596,621 437,661 11.7 %
Other Assets 2,878,195 3,123,569 3,731,372 3,860,483 4,307,905 -33.2 %
Total Assets $ 237,679,024 $ 240,943,977 $ 233,492,824 $ 232,666,737 $ 227,397,811 4.5 %
Non-Maturing Deposits $ 130,680,081 $ 135,548,391 $ 134,472,061 $ 135,059,802 $ 127,845,580 2.2 %
Certificates of Deposit 73,493,516 72,584,759 66,862,996 65,793,214 67,564,901 8.8 %
Total Deposits 204,173,597 208,133,150 201,335,057 200,853,016 195,410,481 4.5 %
FHLB Advances and Other Borrowings 4,000,000 4,000,000 4,000,000 4,000,000 4,000,000 0.0 %
Other Liabilities 1,097,707 889,135 712,723 765,761 1,150,454 -4.6 %
Total Liabilities 209,271,304 213,022,285 206,047,780 205,618,777 200,560,935 4.3 %
Total Shareholders' Equity 28,407,720 27,921,692 27,445,044 27,047,960 26,836,876 5.9 %
Total Liabilities and Shareholders' Equity $ 237,679,024 $ 240,943,977 $ 233,492,824 $ 232,666,737 $ 227,397,811 4.5 %
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 % 1.26 % 1.22 % 1.31 % 1.30 %
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 11.91 % 11.48 % 11.49 % 11.50 % 11.26 %
Tier 1 Risk-Based Capital Ratio 13.64 % 13.36 % 12.53 % 13.21 % 12.74 %
Total Risk-Based Capital Ratio 14.88 % 14.61 % 13.74 % 14.46 % 14.00 %
Common Equity Tier 1 Risk-Based Capital 13.64 % 13.36 % 12.53 % 13.21 % 12.74 %
Book Value Per Share $ 9.86 $ 9.69 $ 9.53 $ 9.39 $ 9.32
Common Shares Issued and Outstanding 2,880,150 2,880,150 2,880,150 2,880,150 2,880,150

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

Source: Americas United Bank