Americas United Bank Announces Results for the Fourth Quarter and Fiscal Year 2013

  Americas United Bank Announces Results for the Fourth Quarter and Fiscal
  Year 2013

Business Wire

GLENDALE, Calif. -- January 28, 2014

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
11^th 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   $ 2,962,124                       $ 2,933,798
Equivalents
Investments
and Interest
Bearing           15,774,131                        11,221,485
Deposit at
Banks
Federal
Funds/FRB         10,663,350                        28,580,000
Balances
Gross Loans       87,437,770                        72,368,003
Allowance for     (1,772,951  )                     (1,885,369  )
Loan Losses
Property and
Equipment,        185,012                           208,576
net
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    $ 51,934,853                      $ 58,078,024
Deposits
Certificates      39,470,992                        28,533,269
of Deposit
Total             91,405,845                        86,611,293
Deposits
Other             4,000,000                         8,000,000
Borrowings
Other            572,255                       514,836     
Liabilities
Total             95,978,100                        95,126,129
Liabilities
Shareholders’    23,539,706                    19,496,183  
Equity
Total
Liabilities
and             $ 119,517,806                  $ 114,622,312 
Shareholders’
Equity
                                                                    
                                                                    
                                                            
STATEMENT OF
OPERATIONS
                3 Months Ended                    Year-to-Date
                Dec. 31, 2013     Dec. 31, 2012   Dec. 31, 2013     Dec. 31, 2012
Interest        $ 1,164,611       $ 1,038,916     $ 4,310,195       $ 4,310,304
Income
Interest         111,847        135,590      452,823         578,901    
Expense
Net Interest      1,052,764         903,326         3,857,372         3,731,403
Income
Provision for     -                 (250,000  )     (300,000    )     (1,013,221 )
Loan Losses
Other Income      96,780            57,156          439,785           281,714
Other            978,466        834,072      3,714,185       3,587,185  
Expenses
Earnings
before Income     171,078           376,410         882,972           1,439,153
Taxes
Income Taxes      (2,996,405  )     (408,916  )     (2,995,580  )     (408,016   )
Gain on Sale     55,416         -            55,416          -          
of OREO
Net Income      $ 3,222,899     $ 785,326     $ 3,933,968      $ 1,847,169  
                                                                    
Common Shares
Issued and        2,878,150         2,878,150       2,878,150         2,878,150
Outstanding
Basic
Earnings Per    $ 1.12            $ 0.27          $ 1.37            $ 0.64
Share
Return on
Average           10.72       %     2.79      %     3.40        %     1.73       %
Assets
(annualized)
Return on
Average           15.74       %     16.54     %     19.72       %     10.15      %
Equity
(annualized)
Net Interest      3.59        %     3.27      %     3.39        %     3.55       %
Margin
Efficiency        85.12       %     86.84     %     86.43       %     89.39      %
Ratio
                                                                    
                                                                    
                                                            
SELECTED
RATIOS
                Dec. 31, 2013                     Dec. 31, 2012
Tier 1
Leverage          17.63       %                     17.46       %
Capital Ratio
Tier 1
Risk-Based        23.12       %                     26.05       %
Capital Ratio
Total
Risk-Based        24.38       %                     27.32       %
Capital Ratio
Allowance for
Loan & Lease
Losses (ALLL)     2.03        %                     2.61        %
as a % of
Total Loans
Non
Performing
Assets as a %     0.01        %                     0.35        %
of Total
Assets
Non
Performing
Assets as a %     0.02        %                     0.56        %
of Total
Loans
Net Charge
Offs as a %       -0.21       %                     -0.57       %
of Total
Loans
Total ALLL as
a % of Non        11923.0     %                     468.1       %
Performing
Loans
Texas Ratio
(Non
Performing        0.07        %                     1.89        %
Assets as a %
of T1 Capital
& ALLL)
Basic Book
Value Per       $ 8.18                            $ 6.77
Share
                                                                    
                                                                    
                                                            
www.aubank.com

Contact:

Americas United Bank
Adriana M. Boeka, President and Chief Executive Officer
818-637-7000
or
Jeffrey Pollard, Executive Vice President and CFO
818-637-7000
 
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