Americas United Bank (OTCQB: AUNB) reported unaudited results
and a net profit of $3,223,000, or $1.12 per basic share for the
fourth quarter and $3,934,000, or $1.37 per basic share for the
year-ended December 31, 2013. Profit for the quarter ended December
31, 2013 and fiscal year 2013 was significantly impacted by the
Bank’s elimination of the valuation allowance on its Deferred Tax
Asset. Pretax income for the quarter was $171,000 compared to
$376,000 in the fourth quarter of 2012. Net profit for the year
ended December 31, 2013 was $3,934,000, or $1.37 per basic share,
compared to $1,847,000, or $0.64 per basic share for the 2012
fiscal year.
In 2006, the Bank established a valuation allowance against its
deferred tax asset due to its operating losses and uncertainty
about its ability to utilize its tax loss carry forwards. The
deferred tax asset continued to increase in subsequent years from
2007 to 2011, due to additional losses. In 2012, following a series
of successive quarterly profits, and based on its expectation for
future earnings the Bank reversed $409,000 of its then $4,657,000
million valuation allowance. This quarter, the Bank achieved its
eleventh consecutive quarterly profit and has exceeded its earnings
projections for 2013. Based on this information, the Bank has
determined that it “more likely than not” will be able to fully
utilize its tax loss carry forward and determined that it was
appropriate to reverse a significant portion of the remaining
$4,234,000 million deferred tax asset valuation allowance by
recording a credit to tax expense during the quarter of
$2,997,000.
Core earnings for the Company continued to improve this quarter.
The net interest margin increased from 3.36% in the third quarter
of 2013 to 3.59% in the fourth quarter of 2013. Average earning
assets increased $805,000 compared to the third quarter of this
year, the increase in the net interest margin caused net interest
income to increase $73,000, or 7.4% on a third quarter to fourth
quarter comparison. Compared to the same quarter a year ago, the
average earning assets increased $6.7 million, the net interest
margin increased from 3.27% to 3.59% and the net interest income
increased $149,000, or 16.5%.
There was no recorded provision for loan losses in the fourth
quarter of 2013 due to the favorable credit quality condition of
the loan portfolio. The improvement in loan quality over the past
year allowed the Bank to reduce the Allowance for Loan and Lease
Losses (“ALLL”) $300,000, lowering the ALLL from 2.61% of loans at
the end of the fourth quarter of 2012 to 2.03% as of December 31,
2013.
Non interest income increased $40,000, or 69.3% in the fourth
quarter of 2013 as compared to the fourth quarter of 2012. For the
year, non interest income increased $158,000 or 56.1% in 2013 over
that of fiscal 2012. Most sources of non interest income increased
slightly, with the notable increase in the gain on the sale of SBA
loans, which increased $171,000, or 100%.
Total non interest expenses increased $144,000, or 17.3% in the
fourth quarter of 2013 compared to the fourth quarter of 2012,
largely due to various cost associated with the previously
announced planned acquisition of the Lancaster Branch of Silvergate
Bank and the relocation of the Glendale Branch from the 11th floor
to the ground floor of the building in order to better serve the
customers and to lower the overall monthly rent expense.
On December 30, 2013, Americas United Bank and Silvergate Bank,
a wholly-owned subsidiary of Silvergate Capital Corporation,
jointly announced that they have entered into a purchase and
assumption agreement for Americas United Bank to acquire the
deposits and branch facility of Silvergate Bank’s full service
branch office in Lancaster, California.
Adriana M. Boeka, President and Chief Executive Officer of
Americas United Bank, stated, “We are very pleased to announce our
entry into the Lancaster market, and we look forward to welcoming
the employees and depositors of the Lancaster Regional Office to
the Americas United Bank family. At Americas United Bank, our
vision is to provide a full-array of business and personal banking
services to small-to-medium-sized businesses, professionals and
entrepreneurs. We are excited to serve the greater Lancaster area,
and we believe it is a natural compliment to our other full-service
regional branches in Glendale and Downey, California.”
The Company also recorded a gain on the sale of its only Other
Real Estate Owned as it sold a foreclosed property during the late
fourth quarter of 2013. The sale resulted in a gain of $55,000 in
the quarter as compared to no activity of this nature in 2012.
Total assets of the Bank increased $4.9 million compared to
December 31, 2012. Investments in interest bearing bank balances
increased $4.6 million as the bank used excess overnight liquidity
to deploy into earning assets providing an improved return on the
excess funds. Total loans increased $15.1 million due to the
improved lending environment and the concerted effort of the bank
to grow the loan portfolio. Federal funds or overnight balances
decreased $17.9 million as a result of the increased deployment
into earning assets such as loans and interest bearing bank
balances. Total deposits increased $4.8 million year over year but
took a slight dip from the 2013 third quarter balance of $95.8
million to close the year at $91.4 million. The quarter-to-quarter
fluctuation was due to normal business activity of the customer
base.
The Bank also hired Robert Hunt, as Senior Vice President –
Operations and Orlando Gonzalez, as Senior Vice President – Sales
in the fourth quarter of 2013.
Ms. Boeka commented, “We are pleased to have added two
experienced business bankers to our senior management team. We look
forward to the two new team members’ success at Americas United
Bank.”
Jeff Pollard, Executive Vice President and Chief Financial
Officer, commented, "We are pleased to report another quarterly
profit and improvement in our operating results. As the general
economic conditions continue to improve, we expect to see an
increase in demand for our products. New loan bookings did improve
in the fourth quarter, however there was some unanticipated loan
payoff activity due to customers seeking to use available cash to
payoff their respective loans. Our loan pipeline remains strong
compared to a year ago, and should the anticipated loan growth
occur it will improve our net interest margin and net interest
income. We continue to have a solid deposit base, a liquid balance
sheet, be well capitalized, and are well positioned for increased
lending activity."
Mr. Manuel J. Remon, Chairman of the Board, commented, "Local
and national economic indicators continue to improve, and we remain
cautiously optimistic given the recent signs of relative strength
in the local and regional recovery. While we remain concerned about
the effect of global and national issues on our local economy, we
are optimistic that our progress will continue through the rest of
2014 and into 2015. We will continue to focus our efforts on
growth, maintaining our asset quality, maintaining liquidity,
seeking new sources of revenue and controlling expenses. Our
current environment still presents challenges, but we remain
confident in our ability to maintain and improve our position as a
preferred financial institution to businesses and consumers
alike."
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 1150,
Glendale, CA 91203 and the Downey Office at 8255 Firestone
Boulevard, Suite 110, Downey, CA 90241.
Coming soon to Lancaster, California at 539 West Lancaster
Boulevard, Lancaster, California 93534.
Information on products and services may be obtained by calling
(818) 637-7000 or visiting the Bank’s website at
www.aubank.com.
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.
4th QUARTER REPORT (Unaudited) BALANCE SHEET
December 31, December 31,
2013 2012 Assets Cash and Cash Equivalents $
2,962,124 $ 2,933,798 Investments and Interest Bearing Deposit at
Banks 15,774,131 11,221,485 Federal Funds/FRB Balances 10,663,350
28,580,000 Gross Loans 87,437,770 72,368,003 Allowance for Loan
Losses (1,772,951 ) (1,885,369 ) Property and Equipment, net
185,012 208,576 Other Real Estate Owned - - Other Assets
4,268,370 1,195,819 Total Assets
$ 119,517,806 $ 114,622,312
Liabilities and Shareholders’ Equity Non-Maturing Deposits $
51,934,853 $ 58,078,024 Certificates of Deposit 39,470,992
28,533,269 Total Deposits 91,405,845 86,611,293 Other Borrowings
4,000,000 8,000,000 Other Liabilities 572,255
514,836 Total Liabilities 95,978,100
95,126,129 Shareholders’ Equity 23,539,706
19,496,183 Total Liabilities and Shareholders’
Equity $ 119,517,806 $ 114,622,312
STATEMENT OF OPERATIONS 3 Months Ended
Year-to-Date Dec. 31, 2013 Dec. 31, 2012
Dec. 31, 2013 Dec. 31, 2012 Interest Income $
1,164,611 $ 1,038,916 $ 4,310,195 $ 4,310,304 Interest Expense
111,847 135,590
452,823 578,901 Net Interest Income 1,052,764
903,326 3,857,372 3,731,403 Provision for Loan Losses - (250,000 )
(300,000 ) (1,013,221 ) Other Income 96,780 57,156 439,785 281,714
Other Expenses 978,466 834,072
3,714,185 3,587,185 Earnings
before Income Taxes 171,078 376,410 882,972 1,439,153 Income Taxes
(2,996,405 ) (408,916 ) (2,995,580 ) (408,016 ) Gain on Sale of
OREO 55,416 -
55,416 - Net Income $ 3,222,899
$ 785,326 $ 3,933,968 $ 1,847,169
Common Shares Issued and Outstanding 2,878,150 2,878,150
2,878,150 2,878,150 Basic Earnings Per Share $ 1.12 $ 0.27 $ 1.37 $
0.64 Return on Average Assets (annualized) 10.72 % 2.79 % 3.40 %
1.73 % Return on Average Equity (annualized) 15.74 % 16.54 % 19.72
% 10.15 % Net Interest Margin 3.59 % 3.27 % 3.39 % 3.55 %
Efficiency Ratio 85.12 % 86.84 % 86.43 % 89.39 %
SELECTED RATIOS Dec. 31, 2013 Dec. 31, 2012
Tier 1 Leverage Capital Ratio 17.63 % 17.46 % Tier 1 Risk-Based
Capital Ratio 23.12 % 26.05 % Total Risk-Based Capital Ratio 24.38
% 27.32 % Allowance for Loan & Lease Losses (ALLL) as a % of
Total Loans 2.03 % 2.61 % Non Performing Assets as a % of Total
Assets 0.01 % 0.35 % Non Performing Assets as a % of Total Loans
0.02 % 0.56 % Net Charge Offs as a % of Total Loans -0.21 % -0.57 %
Total ALLL as a % of Non Performing Loans 11923.0 % 468.1 % Texas
Ratio (Non Performing Assets as a % of T1 Capital & ALLL) 0.07
% 1.89 % Basic Book Value Per Share $ 8.18 $ 6.77
www.aubank.com
Americas United BankAdriana M. Boeka, President and Chief
Executive Officer818-637-7000orJeffrey Pollard, Executive Vice
President and CFO818-637-7000