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Americas United Bank Reports 56.3% Asset Growth for the Year Ended December 31, 2008

^{Published on 2009-02-06 10:58:52, Last Modified on 2009-02-06 11:01:34 - Market Wire}
 

GLENDALE, Calif.--([ BUSINESS WIRE ])--Americas United Bank (OTCBB:AUNB) today announced its unaudited 2008 year-end financial results. As of December 31, 2008, the company grew loans to $84.5 million (a 100.0 percent growth year-over-year). Also, among the year-end results, is a 72.2 percent increase in deposits from the same period in 2007.

"The growth of our balance sheet by more than 56.3 percent this year over last reinforces our positive and consistent financial performance despite the current state of the economy," said Gilbert J. Dalmau, President and Chief Executive Officer of Americas United Bank. "Our liquidity position remains strong, and we continue to maintain capital well in excess of the "well capitalized" regulatory standards."

Fourth-quarter financial highlights include:

• Total assets of $112.4 million at December 31, 2008, a substantial increase over $71.9 million at December 31, 2007.
• Gross loans of $86.0 million at December 31, 2008, show a gain of 100.9 percent from December 31, 2007 total of $42.8 million.
• Allowance for loan loss maintained at a healthy 1.68 percent of gross loans at December 31, 2008, higher than many of the bank's peer group. Total non-performing loans were $387,000 at December 31, 2008.
• Total deposits for December 31, 2008 were $79.0 million, a rise of 72.2 percent over December 2007.
• Fourth Quarter 2008 operating revenue increased to $1,478,000 from $1,309,000 for the same period in 2007 primarily due to higher volumes, but offset by margin compression (reductions in market interest rates placed downward pressure on our net interest margin).
• Annual operating revenue for 2008 increased to $5,903,000 compared to $3,714,000 for the same period of 2007 for an increase of 58.9 percent largely due to higher volumes.
• Operating net loss year-over-year decreased to $2,789,000 for 2008 or $0.97 per basic share compared to $2,885,000 or $1.00 for the same period in 2007. Earnings were negatively impacted by market interest rate reductions, a shortfall in SBA Gain on Sale Income, and by increased loan loss provision expense.

In just over two-years since its founding, Americas United Bank has built a reputation for ensuring customer accessibility to executive-level advisors, speed-of-business responsiveness and financial innovation. The Bank's client base is comprised of growth-oriented Greater Los Angeles organizations in a wide array of industries. Americas United Bank operates from its Corporate Headquarter based in Glendale, California.

Dalmau continued, "Our SBA Preferred Lender status and our high volume of SBA lending activity have favorably enhanced the Bank's visibility in the marketplace. We have continued to enhance our business development efforts and have focused on expanding the Bank's target market area to include other areas in greater Los Angeles that possess small to medium sized businesses where the Bank can provide value added products and services. Due to the secondary market for SBA loans abruptly halting earlier in the year, the Bank has been retaining these loans rather than selling them. This has added to the increased yield of the loan portfolio, but has not provided the Gains on Sale of the loans that was originally anticipated. This negatively impacted our earnings for the year. We look forward to a return of this marketplace at some point in the future. However, in the meantime, we expect solid net interest income from this portfolio in 2009."

"We have all been challenged by the unique and unforeseen circumstances of 2008 and with our solid management team we have positioned ourselves to be better able to withstand the impact of such a dramatic downturn. Our Bank did not need the assistance of the government from TARP funds and had no impact from sub-prime mortgage loans. In fact, we provided additional loan loss reserves due to the uncertainty in the marketplace. Further, outside of our Government Guaranteed loan portfolio, the Bank has no non-performing or delinquent loans. We are a solid commercial Bank that seeks relationship banking with successful businesses, entrepreneurs and professionals. During this time of economic uncertainty, the quality of earning assets is more telling than ever, and we are very pleased with the strong performance of the Bank's loan portfolio and its customers," said Manuel J. Remon, Chairman of Americas United Bank.

"We continue to offer the highest commitment to fulfilling the needs of all our customers, with emphasis remaining on the needs of the Hispanic business community. We remain committed to superior customer service and we are always reviewing the latest banking technology available to support our current and future clients," said Dalmau.

Dalmau further said, "The banking environment is very challenging and we regularly compete against all of the major Banks for both loans and deposits. However, with a highly experienced team of professionals, state-of-the-art systems, exceptional customer service with a personal touch, and strong relationships from within the community, we believe that we will be able to operate favorably against any and all competitors. We did take advantage of the Federal Deposit Insurance Corporation's Temporary Liquidity Guarantee Program which allows us to offer unlimited FDIC insurance on all of our noninterest-bearing transaction accounts."

The Bank's capital ratios continue to be well in excess of the required levels to be considered well capitalized. The Tier 1 Leverage Ratio was 21.47%, Tier 1 Risk Based Capital Ratio was 23.17%, and the Total Risk Based Capital Ratio was 24.42%.

Basic and diluted loss per share for the 4^th quarter of 2008, were -$0.24 and -$0.28, as compared to basic and diluted loss per share of -$0.25 and -$0.26 for the same period of 2007. The year-to-date basic and diluted loss per share were -$0.97 and -$1.03 for 2008, as compared to basic and diluted loss per share of -$1.00 for 2007. Book value per share was $8.16 at December 31, 2008, compared to $8.87 per share a year earlier.

Having commenced operations on November 6, 2006, as California's first Hispanic-owned Bank to open in over thirty years, the Bank continues to grow at a healthy pace. The credit quality of the Bank shows no negative impact at this point in the Bank's existence. The Bank's operating losses are reflective of its start-up status and consistent with other California de novo Banks.

About Americas United Bank:

Americas United Bank (AUB) is the first Hispanic-owned bank to open its doors in California in over thirty years. Founded by a group of respected and successful business leaders (primarily from the Hispanic community), AUB is a full service commercial bank that provides business and personal banking products and services, including business and commercial real estate loans, SBA loans, lines of credit, corporatedebit and credit cards, merchant card processing, international trade solutions, and more. For more information on the Bank, please visit our 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.