GLENDALE, Calif.--(BUSINESS WIRE)--Americas United Bank (OTCQB: AUNB) today announced financial results for the second quarter ended June 30, 2015, with income of $187,994, or $0.07 per basic share. Total assets at period end were $169.4 million, and the Bank’s equity capital was $25.7 million.
“We are pleased to report that Americas United Bank continued its trend of successive, quarterly profitability in the second quarter of 2015. Our focus on growing a quality loan portfolio is reflected in the 19% year-over-year improvement in interest income for the first half of 2015,” said Adriana M. Boeka, the Bank’s President and Chief Executive Officer.
Boeka continued, “We continue to focus on increasing the Bank’s earning assets and achieving greater capital deployment and profitability. With our announced purchase of two branches from Banc of California, expected to close in the third quarter of 2015, Americas United Bank is poised to further increase the Bank’s geographic footprint in Los Angeles County. The addition of loan and deposit totals from these new locations puts the Bank on firm footing for further expansion and enhancing our franchise value.”
Financial Performance
The Bank’s net income for the second quarter ending June 30, 2015 was $187,994, or $0.07 per basic share, compared to $1,058,066, or $0.37 per basic share in the previous quarter ending March 31, 2015, and $91,261, or $0.03 per basic share, in second quarter ending June 30, 2014. Year-to-date 2015 net income was $1,246,060, or $0.43 per basic share, compared to $202,202, or $0.07 per basic share for 2014, reflecting the favorable impact of recoveries of previously charged-off loans in the first quarter of 2015.
Total assets at June 30, 2015 were $169.4 million, up $8.2 million from December 31, 2014, and $6.6 million from June 30, 2014. The Bank’s equity capital was $25.7 million at June 30, 2015, compared to $24.4 million at December 31, 2014 and $23.8 million at June 30, 2014.
Net interest income in second quarter 2015 was $1,319,687, compared to $1,267,218 in first quarter 2015, and $1,121,428 in the second quarter of 2014. The year-over-year increase was mainly due to deployment of the Bank’s liquidity into earning assets such as loans, securities, and time deposits at other banks. Year-to-date 2015 net interest income was $2,586,905, compared to $2,166,514 for the same period in 2014.
Net interest margin in second quarter 2015 was 3.33%, compared to 3.27% in the previous quarter and 2.86% in second quarter of 2014. Note that second quarter of 2014 included the additional liquidity from the acquisition of the Lancaster branch that had not been fully deployed and therefore not fully contributing to the net interest margin. This additional liquidity of approximately $43 million in first quarter 2014 has been subsequently deployed over the course of the succeeding quarters. Year-to-date 2015 net interest margin 3.30%, compared to 3.19% for 2014.
Noninterest income was $116,013 in second quarter 2015, compared to $79,830 in first quarter 2015 and $80,661 in the second quarter of 2014. The increase in noninterest income reflects SBA activity and other fees. Year-to-date 2015 noninterest income was $195,843, compared to $205,381 for 2014. Noninterest expense decreased slightly to $1,115,868 from $1,168,263 in the previous quarter, and $1,046,676 last year due to normal business activity variances. Year-to-date 2015 noninterest expense was $2,284,131, compared to $2,027,455 in the first half of 2014, mainly due to ramped-up hiring and personnel-related expense.
Commercial Banking
The Bank’s loans totaled $104.6 million at June 30, 2015, compared to $109.8 million at December 31, 2014, and $96.1 million at June 30, 2014. The year-over-year net increase of approximately 8.9% was due to the addition of new commercial real estate loans. Total deposits grew to $139.0 million at June 30, 2015, from $132.2 million at December 31, 2014, and from $134.2 million at June 30, 2014, largely due to an increase in existing customer balances.
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 main branch at 801 N. Brand Boulevard, Suite 180, Glendale, CA 91203, the Downey branch at 8255 Firestone Boulevard, Suite 110, Downey, CA 90241, and the Lancaster branch at 539 West Lancaster Boulevard, Lancaster, California 93534.
Information on products and services may be obtained by calling the branches or visiting www.aubank.com: Glendale (818) 637-7000; Lancaster (661) 945-6955; Downey (592) 299-9920.
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, | June 30, | Annual | June 30, | Annual | |||||||||||||||||||||
| Income Statement | 2015 | 2015 | 2014 | Change | 2015 | 2014 | Change | |||||||||||||||||||
| Interest Income | $1,471,165 | $1,416,374 | $1,269,030 | 15.9% | $2,887,539 | $2,420,243 | 19.3% | |||||||||||||||||||
| Interest Expense | 151,478 | 149,156 | 147,602 | 2.6% | 300,634 | 253,729 | 18.5% | |||||||||||||||||||
| Net Interest Income | 1,319,687 | 1,267,218 | 1,121,428 | 17.7% | 2,586,905 | 2,166,514 | 19.4% | |||||||||||||||||||
| Provision for Loan Losses | 0 | -1,631,394 | 0 | NA | -1,631,394 | 0 | NA | |||||||||||||||||||
| Total Noninterest Income | 116,013 | 79,830 | 80,661 | 43.8% | 195,843 | 205,381 | -4.6% | |||||||||||||||||||
| Total Noninterest Expense | 1,115,868 | 1,168,263 | 1,046,676 | 6.6% | 2,284,131 | 2,027,455 | 12.7% | |||||||||||||||||||
| Income Before Taxes | 319,832 | 1,810,179 | 155,413 | 105.8% | 2,130,011 | 344,440 | 518.4% | |||||||||||||||||||
| Income Tax Expense | 131,838 | 752,113 | 64,152 | 105.5% | 883,951 | 142,238 | 521.5% | |||||||||||||||||||
| Net Income | $187,994 | $1,058,066 | $91,261 | 106.0% | $1,246,060 | $202,202 | 516.2% | |||||||||||||||||||
| Performance Ratios | ||||||||||||||||||||||||||
| Basic Earnings Per Share | $0.07 | $0.37 | $0.03 | $0.43 | $0.07 | |||||||||||||||||||||
| Diluted Earnings Per Share | $0.06 | $0.36 | $0.03 | $0.42 | $0.07 | |||||||||||||||||||||
| Net Interest Margin | 3.33% | 3.27% | 2.86% | 3.30% | 3.19% | |||||||||||||||||||||
| Return on Average Assets | 0.46% | 2.65% | 0.22% | 1.55% | 0.29% | |||||||||||||||||||||
| Return on Average Equity | 2.94% | 17.47% | 1.54% | 10.07% | 1.72% | |||||||||||||||||||||
| Efficiency Ratio | 77.72% | 86.73% | 87.07% | 82.08% | 85.48% | |||||||||||||||||||||
| June 30, | March 31, | June 30, | December 31, | Annual | ||||||||||||||||||||||
| BALANCE SHEET | 2015 | 2015 | 2014 | 2014 | Change | |||||||||||||||||||||
| Cash and Due from Banks | $2,631,965 | $4,633,714 | $2,606,946 | $2,097,285 | 1.0% | |||||||||||||||||||||
| Investments & Int. Bearing Deposits at Banks | 38,720,599 | 38,009,148 | 38,313,373 | 35,626,532 | 1.1% | |||||||||||||||||||||
| Federal Funds/FRB Balances | 21,332,973 | 12,533,097 | 22,753,244 | 10,633,215 | -6.2% | |||||||||||||||||||||
| Total Cash & Investments | 62,685,537 | 55,175,959 | 63,673,563 | 48,357,032 | -1.6% | |||||||||||||||||||||
| Gross Loans | 104,594,712 | 108,015,186 | 96,065,839 | 109,814,834 | 8.9% | |||||||||||||||||||||
| Allowance for Loan Losses | -1,850,552 | -1,850,070 | -1,748,453 | -1,849,587 | 5.8% | |||||||||||||||||||||
| Loans, Net | 102,744,160 | 106,165,116 | 94,317,386 | 107,965,247 | 8.9% | |||||||||||||||||||||
| Property and Equipment, Net | 307,160 | 279,527 | 292,920 | 300,191 | 4.9% | |||||||||||||||||||||
| Other Assets | 3,648,960 | 3,741,276 | 4,529,726 | 4,536,542 | -19.4% | |||||||||||||||||||||
| Total Assets | $169,385,817 | $165,361,878 | $162,813,595 | $161,159,012 | 4.0% | |||||||||||||||||||||
| Non-Maturing Deposits | $85,742,717 | $79,891,089 | $78,865,123 | $75,890,512 | 8.7% | |||||||||||||||||||||
| Certificates of Deposit | 53,237,079 | 55,301,717 | 55,367,563 | 56,324,861 | -3.8% | |||||||||||||||||||||
| Total Deposits | 138,979,796 | 135,192,806 | 134,232,686 | 132,215,373 | 3.5% | |||||||||||||||||||||
| FHLB Advances and Other Borrowings | 4,000,000 | 4,000,000 | 4,000,000 | 4,000,000 | 0.0% | |||||||||||||||||||||
| Other Liabilities | 742,772 | 670,064 | 746,386 | 574,198 | -0.5% | |||||||||||||||||||||
| Total Liabilitites | 143,722,568 | 139,862,870 | 138,979,072 | 136,789,571 | 3.4% | |||||||||||||||||||||
| Total Shareholders' Equity | 25,663,249 | 25,499,008 | 23,834,523 | 24,369,441 | 7.7% | |||||||||||||||||||||
| Total Liabilities and Shareholders' Equity | $169,385,817 | $165,361,878 | $162,813,595 | $161,159,012 | 4.0% | |||||||||||||||||||||
| Asset Quality Ratios | ||||||||||||||||||||||||||
| Nonperforming Loans to Total Loans | 0.00% | 0.00% | 0.01% | 0.00% | ||||||||||||||||||||||
| Loss Allowance to Nonperforming Loans | 0.00% | 0.00% | 19247.60% | 43448.13% | ||||||||||||||||||||||
| Allowance for Loan Losses to Loans | 1.77% | 1.71% | 1.82% | 1.68% | ||||||||||||||||||||||
| Nonperforming Assets to Total Assets | 0.00% | 0.00% | 0.01% | 0.00% | ||||||||||||||||||||||
| Texas Ratio (NPAs/T1 Capital & ALLL) | 0.00% | 0.00% | 0.04% | 0.02% | ||||||||||||||||||||||
| Capital Ratios | ||||||||||||||||||||||||||
| Tier 1 Leverage Ratio | 14.53% | 14.50% | 12.86% | 13.75% | ||||||||||||||||||||||
| Tier 1 Risk-Based Capital Ratio | 21.36% | 20.40% | 20.43% | 18.91% | ||||||||||||||||||||||
| Total Risk-Based Capital Ratio | 22.63% | 21.65% | 21.69% | 20.16% | ||||||||||||||||||||||
|
Common Equity Tier 1 Risk-Based Capital (a) |
21.36% | 20.40% | - | - | ||||||||||||||||||||||
| Book Value Per Share | $8.91 | $8.86 | $8.28 | $8.47 | ||||||||||||||||||||||
| Common Shares Issued and Outstanding | 2,880,150 | 2,878,150 | 2,878,150 | 2,878,150 | ||||||||||||||||||||||
|
Footnotes: |
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| (a) Revised Regulatory Capital Ratio effective on January 1, 2015 | ||||||||||||||||||||||||||