SOURCE: Americas United Bank

Americas United Bank

February 25, 2010 14:23 ET

Largest Hispanic-Owned Bank Based in California Reports Annual Growth and Record Assets at Year-End

GLENDALE, CA--(Marketwire - February 25, 2010) - Americas United Bank (OTCBB: AUNB) today announced that assets, loans and deposits all continued to exhibit steady growth and were all at record levels at year-end 2009.

The bank also reported a fourth quarter (unaudited) net loss applicable to common shareholders of $1,272,000. For the year, the Company reported a net loss of $3,475,000 or $1.21 per diluted share, compared to a net loss of $2,789,000 or $0.97 per diluted share in 2008.

"Our mission as a community bank, and an integral part of our business plan, is to provide financing to the small business market. Accordingly, we were very active in lending to this segment in 2007 and 2008, primarily via our SBA loan product. Unfortunately, the severe economic recession has negatively impacted our SBA loan portfolio as many of these small business clients struggle to make their payments with many losing a significant portion of their revenues in these tough times," said Gilbert J. Dalmau, President and Chief Executive Officer.

Dalmau continued, "Although the low rate environment and special industry-wide FDIC assessments negatively impacted our 2009 operating performance, the largest factor was the $2.6 million in loan loss provisions that we recorded to address the weakness in our SBA loan portfolio. While we believe that some recoveries are possible on these loans, we felt strongly that it was appropriate to take this action given the ongoing stress in these credits as well as the overall state of the economy."

Financial highlights include:

Capital strength remained strong and among the highest level of financial institutions in the country at:

--  16.6% Leverage Capital Ratio
--  18.2% Tier 1 Risk-Based Capital Ratio
--  19.5% Total Risk-Based Capital Ratio
--  Total assets of $124.8 million at December 31, 2009, an 11.0 percent
    increase over $112.4 million at December 31, 2008.

--  Gross loans of $99.4 million at December 31, 2009, an increase of
    15.6 percent from December 31, 2008 total of $86.0 million.

--  Allowance for loan loss maintained at 2.0 percent of gross loans at
    December 31, 2009, which compares favorably to that of many of the
    bank's peer group.

--  Total deposits of $94.7 million at December 31, 2009, an increase of
    19.7 percent from December 31, 2008 total of $79.0 million.

--  Fourth quarter 2009 operating revenue which consists of interest income
    and non interest income increased to $1,592,000 from $1,478,000 for the
    same period in 2008 primarily due to higher volumes, but offset by
    lower market interest rates.

--  Fourth quarter net loss was $1,272,000 for 2009 or $0.44 per share
    compared to a net loss of $694,000 or $0.24 per share for the same
    period in 2008.

--  Year-to-date net loss was $3.5 million for the twelve-month period as
    compared to $2.8 million for the same period of 2008. The loan loss
    provision was $2.6 million for 2009 as compared to $1.0 million for
    2008. Year-to-date operating revenue increased to $6.6 million as
    compared to $5.9 million of the prior year, or an 11.9 percent
    increase. Net loss per share was $1.21 for the twelve-months of 2009
    as compared to a net loss of $0.97 per share for the same period of
    2008.

Dalmau summarized, "It is certainly disappointing to report a loss of this size, but we felt strongly that such aggressive action was necessary in order to address our loan loss exposure so we could focus on new business and supporting our customers. While there is much left to be done and the recovery is still far from over, we are hopeful credit and operating results will improve as 2010 progresses. Our core pre-provision operating results are improving, so we remain optimistic about the future and we believe that our aggressive actions taken in 2009 will continue to serve us well as the economy stabilizes."

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 and has achieved the distinction of being the largest Hispanic-owned Bank based in California. 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 and currently has the distinction of being the largest such 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, including business and commercial real estate loans, SBA loans, lines of credit, corporate debit 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.


AMERICAS UNITED BANK

BALANCE SHEET
Unaudited - In 000's (except percentages)

                                              December 31,   December 31,
                                                  2009           2008
                                              -------------  -------------

ASSETS

Investment Securities                         $       1,610  $      10,291
Deposits in Other Banks                                   -          2,650
Federal Funds Sold                                    1,105         11,565
Loans and Leases (Net)                               97,356         84,507
Cash and Due from Banks                              20,676          2,236
Other Assets                                          4,041          1,167

                                              -------------  -------------
TOTAL ASSETS                                  $     124,788  $     112,416
                                              =============  =============

LIABILITIES & SHAREHOLDERS' EQUITY

Demand Deposits                               $      11,006  $      12,493
NOW Deposits                                          3,887          3,539
Money Market and Savings Deposits                    34,981         38,997
Time Deposits                                        44,777         24,017
                                              -------------  -------------
Total Deposits                                       94,651         79,046
Other Borrowings                                      8,900          8,900
Other Liabilities                                       638            979
                                              -------------  -------------
Total Liabilities                                   104,189         88,925
Shareholders' Equity                                 20,599         23,491

                                              -------------  -------------
TOTAL LIABILITIES & SHAREHOLDERS' EQUITY      $     124,788  $     112,416
                                              =============  =============

Tier 1 Leverage Ratio                                 16.61%         21.47%
Tier 1 Risk Based Capital Ratio                       18.23%         23.17%
Total Risk Based Capital Ratio                        19.49%         24.42%





AMERICAS UNITED BANK

INCOME STATEMENT
Unaudited - In 000's (except per share data)


                                          FOR THE            FOR THE
                                    THREE-MONTHS ENDED  TWELVE-MONTHS ENDED
DECEMBER 31,                          2009      2008      2009      2008
                                    --------  --------  --------  --------

INTEREST INCOME

   Loans and Leases                 $  1,523  $  1,345  $  5,897  $  4,648
   Investment Securities                  17       131       167       599
   Federal Funds Sold                      4        31        16       247
   Other Interest Income                   2         3        20         8
                                    --------  --------  --------  --------
      Total Interest Income            1,546     1,510     6,100     5,502
                                    --------  --------  --------  --------

INTEREST EXPENSE

   NOW Deposits                           17        25        76        91
   Money Market and Savings Accounts     146       233       713       797
   Time Deposits                         262       186       988       681
   Other Borrowings                       66        66       264       232
                                    --------  --------  --------  --------
      Total Interest Expenses            491       510     2,041     1,801
                                    --------  --------  --------  --------
Net Interest Income                    1,055     1,000     4,059     3,701
Provision for Loan Losses              1,001       212     2,588     1,031
                                    --------  --------  --------  --------
Net Interest Income after
         Provision for Loan Losses        54       788     1,471     2,670
Non-interest Income                       46       (32)      500       401
Non-interest Expense                   1,372     1,450     5,555     5,947
                                    --------  --------  --------  --------
Operating Loss                        (1,272)     (694)   (3,584)   (2,876)
Other Gains                                -         -       110        87


Net Loss Before Income Taxes          (1,272)     (694)   (3,474)   (2,789)
Income Tax Expense                         -         -        (1)        -
                                    --------  --------  --------  --------
NET LOSS                            $ (1,272) $   (694) $ (3,475) $ (2,789)
                                    ========  ========  ========  ========

Basic & Diluted Loss per Share      $  (0.44) $  (0.24) $  (1.21) $  (0.97)