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GLENDALE, Calif.--([ BUSINESS WIRE ])--Americas United Bank (OTCBB: AUNB) today reported net income of $129,000 in the first quarter of 2012 (1Q12), compared to a net loss of $1,194,000 in the first quarter a year ago (1Q11).

"The loan portfolio continues to perform well with lower levels of delinquencies. As of March 31, 2012, less than 1.32% of total loans were nonperforming"

aStrong operating results which included improved credit quality, improved cost controls, and deposit portfolio restructuring contributed to improved earnings for the first quarter compared to the first quarter a year ago,a stated Adriana M. Boeka, President and Chief Executive Officer. aOur changing deposit mix reflects continuing growth in customer relationships and determined efforts of our staff.a

1Q12 Financial Highlights

• Net income applicable to common stockholders was $129,000, or $0.04 per basic and diluted common share.
• Core deposits increased by 4.8% compared to year end 2011.
• Nonperforming loans declined to $946,000, or 1.32% of total loans at March 31, 2012, from $1,384,000 at year end 2011.
• The total allowance for loan losses as a percentage of total loans was 3.84% at March 31, 2012, compared to 3.58% at December 31, 2011.
• Total risk-based capital ratio was 25.80%, Tier 1 risk-based capital ratio was 24.52%, and Tier 1 leverage ratio was 17.31% at March 31, 2012.

In 1Q12, net income applicable to stockholders was $129,000, or $0.04 per diluted share, compared to a net loss applicable to stockholders of $1,194,000, or -$0.41 per diluted share, in 1Q11.

Credit Quality

Nonperforming loans totaled $946,000, or 1.32% of total loans at March 31, 2012, compared to $1,384,000 or 1.89% of total loans three months earlier and $922,000, or 0.99% of total loans a year ago. During the first quarter of 2012, the reduction in nonperforming loans was primarily due to two loans that migrated out of nonperforming due in part to one being reimbursed by the SBA as it was guaranteed and one being due to sale of the business that netted the bank proceed from the sale. Thus, the net decrease as compared to the prior quarter-end is approximately $437,000.

aThe loan portfolio continues to perform well with lower levels of delinquencies. As of March 31, 2012, less than 1.32% of total loans were nonperforming,a said Ms. Boeka.

The loan loss provision was -$30,000 in 1Q12 compared to -$249,000 in 4Q11 and $1,467,000 in 1Q11. The allowance for loan losses totaled $2,621,000 at quarter-end, equal to 3.84% of total loans, compared to 3.58% at December 31, 2011 and 3.97% a year ago.

AUB had net recoveries of $168,000 in 1Q12 compared to net charge-offs of $979,000 in 4Q11 and $80,000 in 1Q11.

Income Statement Review

First quarter net interest income was $993,000 compared to $1,323,000 in 1Q11. In 1Q12, the net interest margin was 3.92% compared to 5.19% in 4Q11 and 4.86% in 1Q11.

Non-interest income was $83,000 in 1Q12, compared to $69,000 in 1Q11.

Lower costs were primarily responsible for non-interest expenses declining to $977,000, in 1Q12 from $1,119,000 in 1Q11.

Balance Sheet

New loan demand continues to remain somewhat soft, particularly in the commercial and SBA loan sectors. There has also been the revision of our balance sheet mix that included managing some loans out of the portfolio along with some early loan payoffs. As a result, total loans decreased from a year ago to $71,693,000 at March 31, 2012, compared to $93,471,000 at March 31, 2011.

Commercial real estate loans outstanding decreased 21.3%, or $14.0 million, from year ago levels to $51,534,000 at March 31, 2012, and comprise 71.9% of the total loan portfolio. Commercial loans were down 28.9% compared to a year ago and now represent 17.4% of the total loan portfolio.

Total deposits were $78,199,000 million at March 31, 2012, compared to $80,172,000 a year earlier. Non-interest bearing accounts increased 0.96% to $18,676,000 million at March 31, 2012, compared to $18,498,000 million a year ago. Interest bearing accounts decreased 8.68% to $32,469,000 million compared to $35,554,000 a year ago. Core deposits, defined as non-interest bearing, interest bearing and savings accounts increased 4.79% to $51,145,000 at March 31, 2012, compared to $48,807,000 million at year end and decreased 5.38% or $2,907,000 from $54,052,000 a year earlier. Certificates of deposit increased 6.21% over the year end 2011 to $27,054,000, compared to $25,473,000 million at year end and increased 3.58% from a balance of $26,120,000 a year earlier.

aCore deposits grew $2.3 million for the quarter, which is largely attributable to the continued success of our recent deposit transitional efforts,a said Ms. Boeka.

Total assets were $104.5 million at quarter-end, compared to $104.9 million a year earlier. Stockholdersa equity was $17.8 million at quarter-end, compared to $16.3 million a year earlier and book value per common share was $6.18 at quarter-end compared to $5.67 a year earlier.

Company Overview

Americas United Bank (AUB) is the first Hispanic-owned bank to open its doors in California in over thirty years and has the distinction of being the largest Hispanic-owned bank based in California. 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.

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. Information on products and services may be obtained by calling (818) 637-7000 or visiting the Bankas website at [ www.aubank.com ].

Safe Harbor Disclosure

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.