Americas United Bank Reports Strong Loan and Core Deposit Growth.Asset Growth Exceeds 95% for the Quarter Ended March 31, 2008 GLENDALE, Calif. -- Americas United Bank (OTCBB OTCBB See OTC Bulletin Board (OTCBB). :AUNB) today reported that solid core deposit growth, strong asset quality, and strong loan growth contributed to favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. results for the quarter ended March 31, 2008. Americas United Bank continued to experience strong growth in its loans and core deposits during the quarter ended March 31, 2008. Net loans at March 31, 2008 were $66.0 million, an increase of $55.9 million, or 555.5%, as compared to March 31, 2007. Total deposits of $54.2 million represented an increase over the prior year period of $35.5 million, or 190.2%. Non-interest bearing demand deposits increased by $5.7 million, or 126.2% and money market accounts increased by $11.7 million, or 89.3%, over the prior year. Total assets of $89.1 million at quarter end were up $43.4 million, or 95.2%, from March 31, 2007. The net loss for the period ended March 31, 2008 was $601 thousand, a decrease of $256 thousand, or 29.9%, from the net loss for the same period in 2007. Due to strong loan growth in the quarter, the net loss reported for the first quarter of 2008 included an increase to the loan loss reserve and reserve for unfunded loan commitments Unfunded loan commitments are those commitments made by a Financial institution that are contractual obligations for future funding. They should not be confused with Letters of credit which require certain trigger events before funding is needed. of $306 thousand. In addition, the recognition of non-cash stock option expense of $208 thousand contributed to the loss. "The Bank has been very successful in building a solid balance sheet that will serve us well in this period of economic uncertainty. We are very pleased with our strong asset growth which continues to be funded by our high quality core deposit base," said Gilbert J. Dalmau, President and Chief Executive Officer of Americas United Bank. Dalmau continued, "Our asset quality remains extremely high, and our liquidity remains strong. As of March 31, 2008, we had no past due or non-performing loans A non-performing loan is a loan that is in default or close to being in default. Many loans become non-performing after being in default for 3 months, but this can depend on the contract terms. in our loan portfolio, and our investment portfolio consisted of highly liquid U.S. Government sponsored Agency based securities. We are also very pleased with the significant improvement in our operating performance during the first quarter, which has come as a direct result of our growth in average earning assets Earning Assets Any income-earning asset owned by a company. Notes: These assets are generally interest-bearing accounts, bonds, and securities available for sale. See also: Asset, Asset Valuation, Earnings, Net Interest Margin over the past months. Our strong growth during the past year is attributable to the high quality of our staff and their dedication to serving the entrepreneurial en·tre·pre·neur n. A person who organizes, operates, and assumes the risk for a business venture. [French, from Old French, from entreprendre, to undertake; see enterprise. businesses and their owners throughout the greater Los Angeles area The Greater Los Angeles Area, or the Southland, is the agglomeration of urbanized area around the city of Los Angeles, California, United States. There are two "official" definitions—the Los Angeles metropolitan area consisting only of the Los Angeles and Orange . "We continue to be pleased with our SBA SBA abbr. Small Business Administration Noun 1. SBA - an independent agency of the United States government that protects the interests of small businesses and ensures that they receive a fair share of government Lending Division and the more recent formation of a business development team," said Dalmau. "We continue to be committed to fulfilling the market need for a strong commercial bank that primarily serves the needs of the Hispanic business Hispanic Business, Inc. is a media company based in Santa Barbara, California, in the United States of America. Founded by Jesús Chavarría in 1979, Hispanic Business, Inc. publishes information for and about Hispanic professionals and entrepreneurs. marketplace. We remain committed to superior customer service and we are always reviewing the latest banking technology available to support our current and future clients." The Bank's performance measures continue to improve. The efficiency ratio was 125.6% in the 1st quarter of 2008 compared to 273.4% in the 1st quarter a year ago. Return on average assets was -3.05% for 2008, compared to -9.03% for the same period of 2007. Return on average equity was -9.59% for 2008 compared to -12.83% a year ago. Basic and diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of for the 1st quarter of 2008, were -$0.21 and -$0.22, as compared to basic and diluted earnings per share of -$0.30 and -0.29, for the same period of 2007. Book value per share was $8.71 at March 31, 2008, compared to $9.28 per share a year earlier. The Bank's capital position remains very strong and significantly exceeds all regulatory guidelines guidelines, n.pl a set of standards, criteria, or specifications to be used or followed in the performance of certain tasks. for being "well capitalized Capitalized Recorded in asset accounts and then depreciated or amortized, as is appropriate for expenditures for items with useful lives longer than one year. ". Total risk-based capital and Tier 1/risk-based capital ratios at March 31, 2008 were 32.07% and 30.89%, respectively, compared with minimum regulatory capital requirements Capital requirements Financing required for the operation of a business, composed of long-term and working capital plus fixed assets. of 10% and 6% to be considered "well capitalized". We believe our asset quality as well as our strong capital ratios will support us through the current weakness within the economy and will allow us to take advantage of prudent growth opportunities that may arise. Having commenced operations on November 6, 2006, as California's first Hispanic-owned Bank to open in over thirty years, the Years, The the seven decades of Eleanor Pargiter’s life. [Br. Lit.: Benét, 1109] See : Time bank continues to grow at a strong pace, while maintaining a high quality balance sheet position. The Bank's operating losses operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. are reflective Refers to light hitting an opaque surface such as a printed page or mirror and bouncing back. See reflective media and reflective LCD. of its "start-up Start-up The earliest stage of a new business venture. " status and consistent with other California California (kăl'ĭfôr`nyə), most populous state in the United States, located in the Far West; bordered by Oregon (N), Nevada and, across the Colorado River, Arizona (E), Mexico (S), and the Pacific Ocean (W). de novo [Latin, Anew.] A second time; afresh. A trial or a hearing that is ordered by an appellate court that has reviewed the record of a hearing in a lower court and sent the matter back to the original court for a new trial, as if it had not been previously heard nor decided. banks. About Americas United Bank: Americas United Bank (AUB AUB Auburn (University) AUB Alstublieft (Dutch: please) AUB American University of Beirut (Beirut, Lebanon) AUB Abnormal Uterine Bleeding AUB Ahli United Bank ) 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, corporate debit A monetary amount that is subtracted from an account balance. A debit from one account is a credit to another. See credit. 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 The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and 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 forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. . 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 - 000's omitted > > > > > >
> > > > > >
MARCH 31, > > > > > >
2008
2007
> > > > > >
ASSETS > > > > > >
> > > > > >
Investment Securities > > > > > $ >
12,600
$
3,996
Federal Funds Sold > > > > > >
7,500
30,500
Loans and Leases (Net) > > > > > >
66,020
10,072
Cash and Due from Banks > > > > > >
1,926
489
Other Assets > > > > > >
1,041
592
> > > > > >
TOTAL ASSETS > > > > > $ >
89,087
$
45,649
> > > > > >
LIABILITIES & SHAREHOLDER'S EQUITY > > > > > >
> > > > > >
Demand Deposits > > > > > $ >
10,305
$
4,556
NOW Deposits > > > > > >
2,499
328
Money Market and Savings Deposits > > > > > >
24,879
13,144
Time Deposits > > > > > >
16,538
655
Total Deposits > > > > > >
54,221
18,683
Other Borrowings > > > > > >
8,900
-
Other Liabilities > > > > > >
906
248
Total Liabilities > > > > > >
64,027
18,931
Shareholders' Equity > > > > > >
25,060
26,718
> > > > > >
TOTAL LIABILITIES & SHAREHOLDER'S EQUITY > > > > > >
89,087
45,649
> > > > > >
Tier 1 Leverage Ratio > > > > > >
31.56
%
70.36
%
Tier 1 Risk Based Capital Ratio > > > > > >
30.89
%
141.97
%
Total Risk Based Capital Ratio > > > > > >
32.07
%
1.43
%
[TABLE OMITTED]
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