Americas United Bank Reports Total Assets in Excess of $71 Million at the End of Its First Full-Year of Operations.Asset Growth Exceeds 108% for the Year Ended December 31, 2007 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 results for 2007. Americas United Bank, which opened for business on November 6, 2006, has experienced strong growth since opening and is building a solid balance sheet. Operating results for 2006 were for an abbreviated period due to the fact that the Bank opened late in the 2006 fiscal year. At December 31, 2007, total assets had grown to $71.9 million, an increase of $37.4 million, or 108.7% over 2006. Net loans were up $40.3 million, or 22 times from the end of 2006 to $42.2 million at the end of 2007. The Bank's investments portfolio stood at $17.1 million, an increase of approximately 100% over December 31, 2006. Total deposits stood at $45.9 million, an increase of $39.0 million, or 565.4% over the prior year-end level of $6.9 million. At the end of 2007, non-interest bearing demand deposits increased $9.7 million to $11.6 million, while money market, NOW and savings accounts Savings Account A deposit account intended for funds that are expected to stay in for the short term. A savings account offers lower returns than the market rates. Notes: increased $22.7 million, or 459.0%, to $27.7 million. Shareholders' equity Shareholders' Equity A firms' total assets minus its total liabilities. Equivalently, it is share capital plus retained earnings minus treasury shares. Shareholders' equity is the amount by which a company is financed through common and preferred shares. stood at $25.4 million at December 31, 2007. The Bank reported that revenue was approximately $1,222,000 in the 4th quarter of 2007, an increase of $850,000 from $372,000 for the same quarter of 2006. The net loss for the 4th quarter of 2007 was $723,000 compared to $1,400,000 for the 4th quarter of 2006. The 4th quarter 2007 net loss included non-cash expenses Noun 1. non-cash expense - an expense (such as depreciation) that is not paid for in cash disbursal, disbursement, expense - amounts paid for goods and services that may be currently tax deductible (as opposed to capital expenditures) of $191,600 for stock compensation expense and $143,300 for the provision for loan losses and reserves for unfunded commitments. The 2007 year-to-date net loss was $2.9 million as compared to $1.4 million for the approximate two-months of operations in 2006. Further, the loss in 2007 included costs to form a top tier 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 Division, a new business development unit and ongoing investment in infrastructure. The 2007 net loss also includes $786,500 of non-cash stock-based compensation expense, and $611,400 of additional reserves for potential credit losses. These reserves are required by Generally Accepted Accounting Principles The standard accounting rules, regulations, and procedures used by companies in maintaining their financial records. Generally accepted accounting principles (GAAP) provide companies and accountants with a consistent set of guidelines that cover both broad accounting and bank regulatory authorities Noun 1. regulatory authority - a governmental agency that regulates businesses in the public interest regulatory agency administrative body, administrative unit - a unit with administrative responsibilities as part of the normal course of operation. It is important to note that the Bank has no sub-prime exposure of any kind and makes no home mortgages. The Bank had zero non-performing loans at December 31, 2007 or 2006. "We are very pleased with our progress and with the infrastructure we have built to support strong future growth. This includes the establishment of a high performing SBA Lending Division and the more recent formation of a business development team," said Gilbert J. Dalmau, President and Chief Executive Officer. "We are 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 are committed to superior customer service and we are proud to offer the latest banking technology available to support our current and future clients," continued 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." The Bank's performance measures continue to improve. The efficiency ratio was 166.1% in the 4th quarter of 2007 compared to 479.1% in the 4th quarter a year ago. The year-to-date efficiency ratio was 182.4% in 2007 compared to 479.1% in 2006. Return on average assets was -4.04% for 2007, compared to -29.44% for the same period of 2006, which was an abbreviated period as the Bank opened late in the 2006 fiscal year. Return on average equity was -11.40% for 2007 compared to -20.31% 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 4th quarter of 2007, were -$0.25 and -$0.26, as compared to basic and diluted earnings per share of -$0.48 for the same period of 2006. The year-to-date basic and diluted earnings per share were -$1.00 for 2007, as compared to basic and diluted earnings per share of -$0.48 of 2006. Book value per share was $8.87 at December 31, 2007, compared to $9.51 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 Years, The the seven decades of Eleanor Pargiter’s life. [Br. Lit.: Benét, 1109] See : Time 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 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 of its start-up status and consistent with other California 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 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. [TABLE OMITTED] [TABLE OMITTED] |
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