GLENDALE, Calif.--(BUSINESS WIRE)--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 | |||||||||||||||||||||||||||||