Americasbank 10QSB 2007 Q1 Quarterly report (small business)

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-QSB

(Mark One)

x	QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2007

¨	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission file number: 000-22925

AmericasBank Corp.

(Exact name of small business issuer as specified in its charter)

Maryland

52-2090433

(State or other jurisdiction of

incorporation or organization)

(I.R.S. Employer

Identification No.)

500 York Road, Towson, Maryland 21204

Address of principal executive offices

(410) 823-0500

Issuer’s telephone number

Check whether the issuer (1) filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act during the past 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x No ¨

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ¨ No x

State the number of shares outstanding of each of the issuer’s classes of common equity, as of the latest practicable date:

At May 4, 2007, the issuer had 2,654,202 shares of Common Stock outstanding.

Transitional Small Business Disclosure Format (Check one): YES ¨ NO x

Part I - FINANCIAL INFORMATION

Item 1.

Financial Statements

AmericasBank Corp. and Subsidiary

Consolidated Balance Sheets


	March 31, 2007			December 31, 2006
	(Unaudited)
Assets

Cash and due from banks	$	2,388,086		$	3,960,807
Federal funds sold and Federal Home Loan Bank deposit		10,718,009			14,586,886

Cash and cash equivalents		13,106,095			18,547,693
Securities available for sale		30,000			30,000
Federal Home Loan Bank and Federal Reserve Bank stock at cost		658,450			609,250
Loans held for sale		1,631,240			2,267,250
Loans and leases, less allowance of$1,183,821 and $1,025,821		96,116,533			84,586,933
Premises and equipment		1,200,387			1,129,354
Accrued interest receivable		640,986			564,057
Goodwill		202,235			202,235
Intangible assets		16,441			17,850
Other assets		236,113			203,476

	$	113,838,480		$	108,158,098

Liabilities and Stockholders’ Equity

Deposits
Noninterest-bearing	$	10,623,135		$	9,074,405
Interest-bearing		86,507,262			82,510,132

Total deposits		97,130,397			91,584,537
Other liabilities		553,731			581,165

		97,684,128			92,165,702

Stockholders’ equity
Common stock, par value $.01 per share; 30,000,000 shares authorized, issued and outstanding2,654,202 and 2,654,202, shares		26,542			26,542
Preferred stock, par value $.01 per share; 5,000,000 shares authorized, issued and outstanding 0 shares		—			—
Additional paid-in capital		22,827,633			22,785,038
Accumulated deficit		(6,699,823	)		(6,819,184	)

		16,154,352			15,992,396

	$	113,838,480		$	108,158,098

The accompanying notes are an integral part of these consolidated financial statements.

AmericasBank Corp. and Subsidiary

Consolidated Statements of Operations

(Unaudited)


	Three Months Ended
	March 31, 2007		March 31, 2006
Interest revenue
Loans and leases, including fees	$	1,975,628	$	988,073
Federal funds sold and Federal Home Loan Bank deposit		157,132		188,875
Loans held for sale		25,066		20,973
Other		9,731		3,880

Total interest revenue		2,167,557		1,201,801

Interest expense
Deposits		1,044,071		591,793

Net interest income		1,123,486		610,008

Provision for loan and lease losses		158,000		55,000

Net interest income after provision for loan and lease losses		965,486		555,008

Noninterest revenue
Service charges on deposit accounts and other fees		25,018		21,501
Mortgage banking gains and fees		66,870		60,199

Total noninterest revenue		91,888		81,700

Noninterest expenses
Salaries		421,501		397,855
Employee benefits		141,276		113,101
Occupancy		67,970		56,572
Furniture and equipment		37,230		28,685
Other		270,036		254,170

Total noninterest expenses		938,013		850,383

Income (loss) before income taxes		119,361		(213,675	)

Income taxes		—		—

Net income (loss)	$	119,361	$	(213,675	)

Income (loss) per common share - basic and diluted	$	0.04	$	(0.16	)

The accompanying notes are an integral part of these consolidated financial statements.

AmericasBank Corp. and Subsidiary

Consolidated Statements of Changes in Stockholders’ Equity

(Unaudited)


	Common stock			Additional paid-in		Accumulated			Comprehensive
	Shares	Par value		capital		deficit			income
Balance, December 31, 2005	941,702	$	9,417	$	11,634,984	$	(6,388,350	)

Net loss	—		—		—		(213,675	)	$	(213,675	)

Comprehensive income									$	(213,675	)

Stock-based compensation expense	—		—		44,833		—

Common stock issued, net	1,725,000		17,250		11,030,189		—

Balance, March 31, 2006	2,666,702	$	26,667	$	22,710,006	$	(6,602,025	)

Balance, December 31, 2006	2,654,202		26,542		22,785,038		(6,819,184	)

Net income	—		—		—		119,361		$	119,361

Comprehensive income									$	119,361

Stock-based compensation expense	—		—		42,595		—

Balance, March 31, 2007	2,654,202	$	26,542	$	22,827,633	$	(6,699,823	)

The accompanying notes are an integral part of these consolidated financial statements.

AmericasBank Corp. and Subsidiary

Consolidated Statements of Cash Flows

(Unaudited)


	Three Months Ended
	March 31, 2007			March 31, 2006
Cash flows from operating activities
Interest received	$	2,159,058		$	1,161,497
Fees and commissions received		25,018			21,501
Interest paid		(1,115,381	)		(594,771	)
Proceeds from sales of loans held for sale		8,868,820			6,882,000
Originations of loans held for sale		(8,165,940	)		(7,376,366	)
Cash paid to suppliers and employees		(829,280	)		(552,526	)

		942,295			(458,665	)

Cash flows from investing activities
Purchase of Federal Home Loan Bank and Federal Reserve stock		(49,200	)		(65,200	)
Loans and leases made, net of principal collected		(11,756,030	)		(5,904,098	)
Purchase of premises, equipment and software		(124,523	)		237

		(11,929,753	)		(5,969,061	)

Cash flows from financing activities
Net increase (decrease) in time deposits		1,576,655			(4,319,869	)
Net increase (decrease) in other deposits		3,969,205			(403,495	)
Proceeds from issuance of common stock, net		—			11,011,478

		5,545,860			6,288,114

Net decrease in cash and cash equivalents		(5,441,598	)		(139,612	)

Cash and cash equivalents at beginning of year		18,547,693			20,398,751

Cash and cash equivalents at end of period	$	13,106,095		$	20,259,139

The accompanying notes are an integral part of these consolidated financial statements.

AmericasBank Corp. and Subsidiary

Consolidated Statements of Cash Flows

(Unaudited) (Continued)


	Three Months Ended
	March 31, 2007			March 31, 2006
Reconciliation of net income (loss) to net cash provided by operating activities
Net income (loss)	$	119,361		$	(213,675	)

Adjustments to reconcile net income (loss) to net cash provided by operating activities
Depreciation and amortization		48,393			43,745
Provision for loan and lease losses		158,000			55,000
Stock-based compensation		42,595			44,833
Amortization of loan premium and other intangible assets		470			1,815
Increase (decrease) in
Deferred loan fees and costs, net		68,430			(24,470	)
Accrued interest payable		(71,310	)		(2,978	)
Other liabilities		43,876			69,899
Decrease (increase) in
Loans held for sale		636,010			(554,565	)
Accrued interest receivable		(76,929	)		(15,834	)
Other assets		(26,601	)		137,565

	$	942,295		$	(458,665	)

The accompanying notes are an integral part of these consolidated financial statements.

AMERICASBANK CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

1. BASIS OF PRESENTATION

The accompanying consolidated financial statements include the activity of AmericasBank Corp. (the “Company”) and its wholly owned subsidiary, AmericasBank (the “Bank”). All significant intercompany transactions and balances have been eliminated in consolidation.

The foregoing consolidated financial statements are unaudited; however, in the opinion of management, all adjustments (comprising only normal recurring accruals and adjustments) necessary for a fair presentation of the results of the interim period have been included. These statements should be read in conjunction with the financial statements and accompanying notes included in AmericasBank Corp.’s 2006 Annual Report on Form 10-KSB. There have been no significant changes to the Company’s Accounting Policies as disclosed in the 2006 Annual Report. The results shown in this interim report are not necessarily indicative of results to be expected for the full year 2007.

The accounting and reporting policies of the Company conform to accounting principles generally accepted in the United States of America.

Reclassifications

Certain reclassifications have been made to amounts previously reported to conform to the current presentation.

2. STOCK-BASED COMPENSATION

The Company recognizes expense for stock-based compensation using the fair value based method of accounting described in Statement of Financial Accounting Standards (“SFAS”) No. 123,Accounting for Stock-Based Compensation, as amended. Salaries and other expense (director’s fees) included stock-based compensation of $42,595 for the three months ended March 31, 2007, and $44,833 for the three months ended March 31, 2006.

The following table presents the impact of SFAS No. 123:


	Three Months Ended March 31,
	2006			2005
Net income (loss) without adoption of SFAS No. 123	$	161,956		$	(168,842	)
Additional expense as a result of adoption of SFAS No. 123		(42,595	)		(44,833	)

Net income (loss) with adoption of SFAS No. 123	$	119,361		$	(213,675	)

Net income (loss) per share - basic and diluted
Without adoption of SFAS No. 123	$	0.06		$	(0.12	)
With adoption of SFAS No. 123	$	0.04		$	(0.16	)

3. REGULATORY MATTERS

The Bank is subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory—and possibly additional discretionary—actions by regulators that, if undertaken, could have a direct material effect on the Company’s financial statements. The Bank must meet specific capital guidelines that involve quantitative measures of the Bank’s assets, liabilities and certain off-balance sheet items as calculated under regulatory accounting practices. The Bank’s capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weighting and other factors.

Quantitative measures established by regulation to ensure capital adequacy require the Bank to maintain minimum amounts and ratios.

4. INCOME/LOSS PER SHARE

Income/loss per common share is determined by dividing net income/loss by the weighted average number of common shares outstanding during the period. The Company’s common stock equivalents were not considered in the computation of diluted income/loss per share because the result would have been anti-dilutive. The weighted average common shares outstanding were 2,654,202 for the three months ended March 31, 2007, and 1,363,369 for the three months ended March 31, 2006.

5. SALE OF COMMON STOCK

On March 10, 2006, the Company sold 1,725,000 shares of its common stock for $7.00 per share. Net proceeds from the offering were approximately $11,047,439. The Company invested $10,500,000 of these funds into AmericasBank in March 2006. On March 13, 2006, the common stock of the Company began to be quoted for trading on the NASDAQ Capital Market under the symbol AMAB.

ITEM 2.

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Because AmericasBank Corp. has no material operations and conducts no business on its own other than owning its subsidiary, AmericasBank, this discussion primarily concerns the business of AmericasBank. However, for ease of reading and because our financial statements are presented on a consolidated basis, unless the context requires otherwise, references to “we” or “our” refers to both AmericasBank Corp. and AmericasBank.

General

AmericasBank Corp. was incorporated as a Maryland corporation on June 4, 1996, to become a one-bank holding company by acquiring all of the capital stock of AmericasBank, a federal stock savings bank, upon its formation. AmericasBank commenced operations on December 1, 1997. On March 20, 1999, AmericasBank converted from a federal stock savings bank to a Maryland chartered trust company exercising the powers of a commercial bank.

Strategy

Our long-term strategy is to become a high-performing community bank that provides above-average investment returns to its stockholders while maintaining a low to moderate risk profile. The essence of our strategy is consistent with the traditional community bank model, under which we focus on promoting business entrepreneurship and home ownership by delivering value-added products and services to selected customers in the communities that we serve. Specifically, we will seek to obtain low cost, core deposits from small businesses in our market areas and then invest those funds primarily into in-market residential and commercial real estate loans and commercial loans, as we identify opportunities via our network of mortgage originators. Obtaining low cost, core deposits in lieu of depending upon high rate certificates of deposit will reduce our overall cost of funds, and ultimately improve our net interest margin.

To succeed in our community banking strategy, we must effectively differentiate ourselves from our competitors, including the larger financial service companies operating in our market area. We believe we can do this by selling the concept that we have established and published in our marketing material. We want to be known as: Creative, Responsive and Flexible. We have observed that by consistently providing customer service beyond what is expected, we attract the specific customers we seek and they, in turn, become our best advocates and referral sources. Since 2004, we have realigned and expanded bank and loan operations with experienced staff and also invested in new banking products.

We are using the $11 million in capital that we raised in our recent offering to execute our expansion strategy, thereby allowing us to effectively leverage our investment in bank and loan operations with only incremental additions to staff. Our expansion strategy for new markets consists of replicating the community bank business model that we have developed in the Towson market. We believe this as an efficient way to enter a market and drive the operation to profitability relatively quickly. Our goal is to enter several new markets over the next few years.

We anticipate that over the short term, net income will be reduced as we incur capital expenditures and non-interest expense, including marketing expense, in opening and operating new banking centers — until the new banking centers become profitable. Further, because we will likely enter new markets by first building a mortgage lending presence, we anticipate that in each new market we will solicit higher cost deposits to fund loan growth. We also anticipate that our dependence on high cost deposits will diminish as we increase core deposit growth in the new market.

Summary of Recent Performance

We reported net income of $119,361 or $0.04 per basic and diluted common share for the three months ended March 31, 2007, an increase of $333,036 compared to our net loss of $213,675 or $(0.16) per basic and diluted common share for the three months ended March 31, 2006.

During the three months ended March 31, 2007, we reported 77.4% growth in average loans and an 80.4% growth in total interest revenue compared to the three months ended March 31, 2006. This resulted in a $513,478 or 84.2% growth in net interest income between the comparative quarters, and an increase in our net interest margin to 4.31% for the three months ended March 31, 2007, from 3.51% for the three months ended March 31, 2006.

The provision for loan and lease losses was $158,000 for the three months ended March 31, 2007, compared to $55,000 for the three months ended March 31, 2006. The increase in the provision was attributable our risk assessment of the loan portfolio at March 31, 2007, and to the $11,529,600 in loan growth in the first quarter of 2007, compared to loan growth of $5,873,568 in the first quarter of 2006.

Mortgage loans originated for sale in the secondary market approximated our levels from a year ago. Mortgage banking gains and fees increased $6,671 or 11.1%, to $66,870 for the three months ended March 31, 2007, from $60,199 for the three months ended March 31, 2006. We operate under a business model whereby our mortgage loan officers are expected to originate loans for sale in the secondary market and refer loan business to the Bank for our loan portfolio. This sales group has maintained a steady referral of loan business to the Bank and their efforts have contributed to the growth in loans. These loans, while principally secured by real estate, tend to be for commercial and investment purposes such as builder construction, owner occupied businesses, and investors who are rehabbing either one or several 1 to 4 family residential properties. It has been and will continue to be our strategy to leverage our mortgage loan originators as a source for building our portfolio loans. We believe that our strategy of building a loan portfolio based on real estate based products will allow us to continue to maintain good asset quality and is consistent with our risk management policies.

Noninterest expenses increased $87,630 or 10.3%, to $938,013 for the three months ended March 31, 2007, from $850,383 for the three months ended March 31, 2006. We experienced an increase in all major expense categories in the first quarter of 2007 compared to 2006, which is mostly attributable to the costs associated with our growth and expansion activities. We expect more significant increases for the remainder of 2007 as we accelerate our expansion activities with the opening of the Annapolis Banking Center and the addition of three banking professionals to our Towson Banking Center.

Total assets increased by $5,680,382 or 5.3%, to $113,838,480 at March 31, 2007, from $108,158,098 at December 31, 2006. Average interest earning assets for the three months ended March 31, 2007 were $105,825,950, an increase of $35,319,259, or 50.1% from the $70,506,691 in average interest earning assets for the first three months of 2006.

Total deposits at March 31, 2007 were $97,130,397, an increase of 6.1% from $91,584,537 at December 31, 2006. The increase in deposits is primarily the result of growth in premium rate certificates of deposit obtained through an Internet-based service and retail broker channels. Noninterest bearing deposits were $10,623,135 at March 31, 2007, compared to $9,074,405 at December 31, 2006, reflecting an increase in deposits from title companies.

Results of Operations

Net Interest Income

Net interest income is the difference between interest revenue on assets and the cost of funds supporting those assets. Earning assets are comprised primarily of loans, investments and federal funds sold; interest-bearing deposits

make up the cost of funds. Noninterest bearing deposits and capital are also funding sources. Changes in the volume and mix of earning assets and funding sources along with changes in associated interest rates determine changes in net interest income.

Net interest income for the three months ended March 31, 2007, increased 84.2% to $1,123,486 from $610,008 for the three months ended March 31, 2006.

Total interest revenue increased for the three months ended March 31, 2007, to $2,167,557, from $1,201,801 for the three months ended March 31, 2006. The increase is primarily attributable to an increase in interest revenue from loans and leases. Interest revenue from loans and leases increased by $987,555 or 99.9% for the three months ended March 31, 2007. This increase was partially offset by a $31,743 or 16.8% decrease in interest revenue from federal funds sold and Federal Home Loan Bank deposits for the three months ended March 31, 2007, as we deployed excess liquidity into loans.

Increases in average balances of our earning assets and market interest rates were the primary factors contributing to the significant increases in interest revenue between the comparable periods. Average loans increased by $39,882,345 or 77.4% for the three months ended March 31, 2007, to $91,426,041 from $51,543,696 for the three months ended March 31, 2006. The yield on loans increased to 8.76% for the three months ended March 31, 2007, from 7.77% for the three months ended March 31, 2006.

Average federal funds sold and Federal Home Loan Bank deposit decreased by $5,296,645, or 30.6% for the three months ended March 31, 2007, to $12,030,265 from $17,326,910 for the three months ended March 31, 2006. The yield on these funds increased to 5.30% for the three months ended March 31, 2007, from 4.42% for the three months ended March 31, 2006.

The increase in yields on earning assets was also influenced by the increase in market interest rates in response to actions by the Federal Reserve to increase the target for the federal funds rate to 5.25% as of March 31, 2007, from the target rate of 4.75% as of March 31, 2006.

Interest expense increased by $452,278 or 76.4% for the three months ended March 31, 2007, to $1,044,071 from $591,793 for the three months ended March 31, 2006. The increase in interest expense was due to the growth in average balances of our money market accounts and premium rate certificates of deposit, and an increase in the rates paid on deposits as a result of the rise in market interest rates.

Average interest bearing deposits increased by $25,654,019 or 43.7% for the three months ended March 31, 2007, to $84,393,771 from $58,739,752 for the three months ended March 31, 2006. The rate on interest-bearing deposits increased to 5.02% for the three months ended March 31, 2007, from 4.09% for the three months ended March 31, 2006. The majority of the increase in average interest-bearing deposits was attributable to our growth in certificates of deposit and money market accounts resulting from our marketing efforts and the use of an Internet-based service and retail broker channels to offer certificates of deposit.

Average noninterest-bearing deposits increased by $926,688 or 15.1% for the three months ended March 31, 2007, to $7,078,721 from $6,152,033 for the three months ended March 31, 2006. Noninterest-bearing deposits are mainly comprised of deposits from title companies and the balances held in these accounts are subject to the variability of the real estate market.

The net margin on earning assets increased to 4.31% for the three months ended March 31, 2007, from 3.51% for the three months ended March 31, 2006. The increase in average interest earning assets, our new capital, and the increases in market interest rates contributed to the increase in the net margin on earning assets.

The following tables illustrates average balances of total interest earning assets and total interest bearing liabilities for the periods indicated, showing the average distribution of assets, liabilities, stockholders’ equity and related revenue, expense and corresponding weighted average yields and rates. The average balances used in these tables and other statistical data were calculated using average daily balances.

Average Balances, Interest, and Yields/Rates


	Three Months Ended March 31,
	2007								2006
	Average balance				Interest		Yield/ Rate		Average balance			Interest		Yield/ Rate
Assets:
Federal Funds Sold and FHLB deposit	$	12,030,265			$	157,132	5.30	%	$	17,326,910		$	188,875	4.42	%
FHLB and FRB stock		610,343				9,485	6.30	%		238,500			3,578	6.08	%

Investment Securities
Equity security		30,000				246	3.33	%		30,000			302	4.08	%

Total investment securities		30,000				246	3.33	%		30,000			302	4.08	%

Loans held for sale		1,729,301				25,066	5.88	%		1,367,585			20,973	6.22	%

Loans:
Residential real estate		30,839,764				656,936	8.64	%		25,380,863			480,789	7.68	%
Construction and land development		31,972,957				715,068	9.07	%		7,958,895			151,960	7.74	%
Commercial, including real estate		16,591,747				351,414	8.59	%		9,019,590			175,988	7.91	%
Commercial finance leases		760,300				13,839	7.38	%		1,883,495			32,310	6.96	%
Home equity		11,018,967				233,846	8.61	%		6,918,417			140,509	8.24	%
Installment		242,306				4,525	7.57	%		382,436			6,517	6.91	%

Total loans		91,426,041		��		1,975,628	8.76	%		51,543,696			988,073	7.77	%

Total interest earning assets		105,825,950				2,167,557	8.31	%		70,506,691			1,201,801	6.91	%

Allowance for loan and lease losses		(1,102,843	)							(367,500	)
Noninterest-bearing cash		1,677,968								1,273,595
Premises and equipment		1,143,184								996,986
Other assets		857,322								564,766

Total assets		108,401,581								72,974,538

Liabilities and Stockholders’ Equity
Interest-bearing Deposits
Savings		4,687,177				37,885	3.28	%		4,802,299			34,784	2.94	%
NOW money market and escrow		17,152,766				221,929	5.25	%		13,472,178			145,600	4.38	%
Certificates of deposit		62,553,828				784,257	5.08	%		40,465,275			411,409	4.12	%

Total interest-bearing deposits		84,393,771				1,044,071	5.02	%		58,739,752			591,793	4.09	%
Noninterest-bearing deposits		7,078,721				—				6,152,033			—

		91,472,492				1,044,071	4.63	%		64,891,785			591,793	3.70	%

Other liabilities		563,778								322,855
Stockholders’ equity		16,365,311								7,759,898

Total Liabilities and Stockholders’ Equity	$	108,401,581							$	72,974,538

Net interest spread							3.68	%						3.21	%
Net interest income					$	1,123,486						$	610,008

Net margin on earning assets							4.31	%						3.51	%

Provision for Loan and Lease Losses and Analysis of Allowance for Loan and Lease Losses

Lending involves a risk that our loans and leases may not be repaid in full and a credit loss will result. Credit losses occur in varying amounts according to, among other factors, the type of loans being made, the credit-worthiness of the borrowers over the term of the loans, the quality of the collateral for the loan, if any, as well as general economic conditions. We maintain a reserve account for credit losses called the allowance for loan and lease losses, and charge all probable credit losses against this account in accordance with regulatory guidance, industry standards, and generally accepted accounting principles. We charge a provision for loan and lease losses to earnings to maintain our allowance for loan and lease losses at a level that we consider to represent our best estimate of the losses known and inherent in the portfolio that are both probable and reasonable to estimate, based on, among other factors, prior loss experience, volume and type of lending conducted, industry standards, economic conditions (particularly as such conditions relate to AmericasBank’s market area), regulatory guidance, the financial condition of the borrower, historical payment performance and the collateral securing the loans and leases. Recoveries on loans previously charged off are added back to the allowance.

The provision for loan and lease losses was $158,000 for the three months ended March 31, 2007, compared to $55,000 for the three months ended March 31, 2006. The provision for each period reflects our risk assessment of the portfolio and the growth in loan and leases balances outstanding. During the first three months of 2007, we had no chargeoffs or recoveries compared to $2,403 in chargeoffs and no recoveries for the first three months of 2006.

We have a methodology for evaluating the adequacy of the allowance for loan and lease losses that distinguishes between credits evaluated as a group by either loan or risk rating category and those evaluated individually. We have predetermined allowance percentages based on credit types and for each risk rating category. All loans and leases are assigned a risk rating when they are made. This risk rating is reassessed by management periodically using the various evaluation factors mentioned above. Loans and leases that exhibit an acceptable level of risk per our internal risk grading system are grouped by category and assigned a standard reserve percentage when assessing the adequacy of the allowance for loan and lease losses. Loans and leases that are adversely risk-rated, or exhibit characteristics that suggest we have a heightened risk of default, are evaluated separately from non-adversely risk rated credits. Each adversely risk rated credit is assigned a standard reserve based on its risk rating or a special reserve based on an assessment of the specific risk factors related to that credit, which may be greater or lesser than the standard reserve for that risk rating.

The predetermined percentages that we use are based on management’s judgment as to appropriate reserve percentages for various categories of loans, and adjusting those values based on the following: historical losses in each category, historical and current delinquency in each category, underwriting standards in each category, comparison of our losses and delinquencies to peer group performance and an assessment of the likely impact of economic and other external conditions on the performance of each category.

A test of the adequacy of the allowance for loan and lease losses is performed and reported to the Board of Directors on a quarterly basis by our senior lending officer. Our senior lending officer will recommend an increase or decrease in the provision and the board will approve or disapprove the recommendation based on a discussion of the risk factors. We believe that we use the most reliable information available to us to make a determination with respect to the allowance for loan and lease losses, recognizing that the determination is inherently subjective and that future adjustments may be necessary depending upon, among other factors, a change in economic conditions of specific borrowers or generally in the economy, and new information that becomes available to us. However, there are no assurances that the allowance for loan and lease losses will be sufficient to absorb losses on nonperforming assets, or that the allowance will be sufficient to cover losses on nonperforming assets in the future.

The allowance for loan and lease losses was $1,183,821 or 1.21% of loans at March 31, 2007, compared to $1,025,821 or 1.20% of loans at December 31, 2006. The slight increase in the allowance for loan and lease losses as a percent of loans and leases was the result of our risk assessment of the loan and lease portfolios, management’s judgment as to appropriate reserve percentages for various categories of loans, and the growth in loans outstanding. AmericasBank has no exposure to foreign countries or foreign borrowers. Management believes that the current allowance for loan and lease losses is adequate.

The changes in the allowance for loan and lease losses are presented in the following table:


	Three Months Ended March 31,						Year Ended December 31,
	2007			2006			2006
Balance, beginning of year	$	1,025,821		$	366,910		$	366,910
Provision charged to operations		158,000			55,000			656,500
Recoveries		—			—			9,641

		1,183,821			421,910			1,033,051
Loans charged off		—			2,403			7,230

Balance, end of year	$	1,183,821		$	419,507		$	1,025,821

Allowance for loan and lease losses to total loans		1.21	%		0.76	%		1.20	%

Loans past due 90 days or more and still accruing interest	$	292,536		$	—		$	—

Noninterest Revenue

Noninterest revenue consisted primarily of mortgage banking gains and fees from the sale of mortgage loans, and service charges on deposit accounts, which includes debit card fees and ATM fees. Noninterest revenues increased $10,188 for the three months ended March 31, 2007, to $91,888, from $81,700 for the three months ended March 31, 2006. The increase for the three month period was from an increase in mortgage banking gains and fees. These gains and fees increased $6,671 or 11.1%, to $66,870 for the three months ended March 31, 2007, from $60,199 for the three and ended March 31, 2006.

Service charges on deposit accounts and other fees increased to $25,018 for the three months ended March 31, 2007, from $21,501 for the three months ended March 31, 2006. The increase was primarily from fees on business accounts and ATM service charges.

Noninterest Expenses

Noninterest expenses increased $87,630 or 10.3% for the three months ended March 31, 2007, to $938,013 from $850,383 for the three months ended March 31, 2006.

Salaries increased 5.9% for the three months ended March 31, 2007, to $421,501 from $397,855 for the three and ended March 31, 2006. The increase in salaries is mostly attributed to annual merit increases and an increase in the number of employees at the end of the periods. We had thirty-nine full-time equivalent employees at March 31, 2007, compared to thirty-two full-time equivalent employees at March 31, 2006. Also, the increase in salaries in the first quarter of 2007 was partially offset by an increase in the amount of salary expense deferred as a direct cost of loan origination. We deferred $40,940 more in salary costs in the first quarter of 2007, compared to the first quarter of 2006 due to our increased loan origination activity.

Employee benefits increased 24.9% for the three months ended March 31, 2007, to $141,276 from $113,101 for the three months ended March 31, 2006. The increase in employee benefits was related to increases in the company match for our 401k benefit plan due to increased participation, and an increase in service payments to Administaff, due to the increase in number of employees. For competitive reasons, we expanded our employee benefit package and human resource function in 2006 by engaging the services of Administaff, a professional employer organization.

Occupancy expense increased $11,398 for the three months ended March 31, 2007, to $67,970, from $56,572 for the three months ended March 31, 2006. The increase in the three month period is primarily from additional rent for the expansion of our mortgage business in Frederick, and the relocation of our Towson mortgage operation group from our headquarters building to leased space. Furniture and equipment increased $8,545 for the three months ended March 31, 2007 to $37,230 from $28,685 for the three months ended March 31, 2006. The increase was mostly in depreciation expense arising from an increase in furniture and equipment purchased to support our expansion and business unit relocation activities.

Other expenses increased $15,866 or 6.2% for the three months ended March 31, 2007, to $270,036 from $254,170 for the three months ended March 31, 2006. The increase in other expenses is related to increases in marketing expense, legal fees, costs associated with being a listed public company. Also, in the three months ended March 31, 2007, other expense also included stock-based compensation expense for the granting of 5,500 stock options under the director compensation program. These options were fully vested at the time of the grant which resulted in an $11,330 expense in the quarter. There were no stock option grants to directors in the first quarter of 2006.

Analysis of Financial Condition

Investment Securities

AmericasBank’s investment portfolio has consisted primarily of U.S. government agency securities, mortgage-backed securities and certain equity securities. The portfolio provides a source of liquidity and a means of diversifying AmericasBank’s earning assets. While we generally intend to hold the investment portfolio assets until maturity, we classify the entire portfolio as available for sale. We account for securities so classified at fair value and report the unrealized appreciation and depreciation as a separate component of stockholders’ equity. AmericasBank invests in securities for the yield they produce and not to profit from trading the securities. There are no trading securities in the portfolio.

The investment portfolio at March 31, 2007 and December 31, 2006 consisted of a $30,000 equity security. The security is classified as available for sale.

Loan Portfolio

Loans and leases, net of allowance, unearned fees and origination costs increased $11,529,600 or 13.6% to $96,116,533 at March 31, 2007, from $84,586,933 at December 31, 2006. Compared to a year earlier, loans and leases, net of allowance, unearned fees and origination costs have increased by $41,253,360 or 75.2 % from $54,863,173 at March 31, 2006.

Residential real estate loans decreased by $7,351,189 (20.2%), construction and land development loans increased by $18,489,861 (84.9%), commercial loans including commercial real estate loans decreased by $97,235 (0.6%), commercial finance leases decreased by $187,789 (16.9%), home equity loans increased by $894,658 (8.6%), and installment loans increased by $7,724 (3.1%) from their respective balances at December 31, 2006. Going forward, we expect to continue to see wide changes in the percentage of loans in our various loan categories as we experience scheduled payoffs and as we grow our loan portfolio. Also, in the first quarter of 2007 we reevaluated and expanded our internal classification of loans. This improvement did result in some loan shifting between previously reported loan categories. This shift occurred primarily between residential real estate loans and construction and land development accounting for a portion of the unusually large variance between March 31, 2007, and December 31, 2006. We believe this change was necessary to allow for more precise reporting of loans in future periods as we expand and grow our loan portfolio. An estimate of the impact of this action is described in note 2 to the loan portfolio table below.

Loans secured by real estate comprise the majority of the loan portfolio. AmericasBank’s loan customers are generally located in the greater Baltimore metropolitan area.

The following table summarizes the composition of the loan portfolio by dollar amount and percentages:


	Loan Portfolio
	March 31, 2007			%		December 31, 2006			%
Residential real estate (1), (2)	$	29,055,535		29.79	%	$	36,406,724		42.45	%
Construction and land development (1), (2)		40,270,637		41.29	%		21,780,776		25.40	%
Commercial, including real estate (1), (2)		15,733,947		16.13	%		15,831,182		18.46	%
Commercial finance leases		921,936		0.96	%		1,109,725		1.29	%
Home equity		11,283,104		11.57	%		10,388,446		12.11	%
Installment		257,319		0.26	%		249,595		0.29	%

		97,522,478		100.00	%		85,766,448		100.00	%

Deferred loan origination fees, net of cost		(222,124	)				(153,694	)
Allowance for loan and lease losses		(1,183,821	)				(1,025,821	)

	$	96,116,533				$	84,586,933

(1)

Our loan portfolio includes owner occupied residential mortgages and one-to-four family and multi-family mortgages to investors. At March 31, 2007, $12,056,922 of residential real estate loans, $23,178,079 of construction and land development loans, and $3,571,744 of commercial loans, including real estate loans, were to investors. At December 31, 2006, $23,475,679 of residential real estate loans and $6,244,244 of commercial loans, including real estate loans, were to investors.

(2)

The variance in these loan categories between March 31, 2007 and December 31, 2006, was also effected by the re-evaluation and expansion our internal classifications that we implemented in the first quarter of 2007. As a result of this improvement, approximately $10 million in Residential real estate loans and $6 million in Commercial, including real estate loans, were reclassified into the Construction and land development loan category.

We perform monthly reviews of all delinquent loans and leases and relationship officers are charged with working with customers to resolve potential credit issues and payment delinquency in a timely manner. We generally classify loans and leases as nonaccrual when collection of full principal and interest under the original terms of the credit is not expected or payment of principal or interest has become 90 days past due. Classifying a credit as nonaccrual results in us no longer accruing interest on such loan or lease and reversing any interest previously accrued but not collected. We will generally restore a nonaccrual loan or lease to accrual status when delinquent principal and interest payments are brought current and we expect to collect future monthly principal and interest payments in a timely manner and in accordance with the original repayment schedule. Generally, we credit all interest payments received on nonaccruing credits to the principal balance of the loan or lease to reduce our credit exposure. If we have collateral that mitigates our credit exposure, we may recognize interest as income when received.

Information about nonaccrual loans is as follows:


	March 31,				December 31,
	2007		2006		2006
Nonaccrual loans	$	624,127	$	622,761	$	624,127
Unrecorded interest on nonaccrual loans		121,896		64,875		107,569
Specific reserve for nonaccrual loans included in the allowance for loan and lease losses		198,106		29,388		198,106

Nonaccrual loans are comprised of two loans. The larger of these loans is related to one loan in which we hold an approximately 10% participation. Our portion of the loan balance was $589,127 at March 31, 2007 and December 31, 2006. This non-performing loan is a participation in a loan to a land developer for the purchase and development of raw land that was under contract for sale as developed lots to a national homebuilder. The project ran into delays during the permitting process related primarily to storm water management issues. As a result of the delays, the interest reserve was exhausted, causing the loan to go into default.

In early November 2005, the national homebuilder agreed to release the borrower from its original purchase agreement. On November 18, 2005, the participating banks negotiated a 90-day Forbearance Agreement with the borrower for the purpose of allowing the borrower to negotiate the sale of the property. On February 7, 2006, the borrower entered into a new agreement with the same national homebuilder to sell the property “as is.” The new agreement was contingent upon completion of a feasibility study within 45 days of its execution. The national homebuilder completed its feasibility study and, on March 27, 2006, approved the purchase of the property, subject to the municipality’s approval of road access and drainage plans. In August 2006, negotiations between the national homebuilder and the municipality broke down over access and storm water management issues.

The Banks demanded payment and filed a foreclosure action on the property. A foreclosure auction was scheduled for November 9, 2006. The guarantors filed for Chapter 11 bankruptcy on November 8, thereby forestalling the sale. The borrower failed to present an acceptable plan within the 90 day period allowed and the Banks moved for a lift stay, which was granted on March 1, 2007. The foreclosure sale date has been scheduled for May 30, 2007. Although we believe that there will be interested bidders present at the auction, there can be no assurance that will be the case. Based on an “as is” appraisal dated November 10, 2006, we believe that the reserves we have set aside on this loan are adequate.

We apply the provisions of Statement of Financial Accounting Standards No. 114 (“SFAS No. 114”),Accounting by Creditors for Impairment of a Loan, as amended by Statement of Financial Accounting Standards No. 118 (“SFAS No. 118”),Accounting by Creditors for Impairment of a Loan-Income Recognition and Disclosure. SFAS No. 114 and SFAS No. 118 require that impaired loans, which consist of all modified loans and other loans for which collection of all contractual principal and interest is not probable, be measured based on the present value of expected future cash flows discounted at the loan’s effective interest rate, or at the loan’s observable market price or the fair value of the collateral if the loan is collateral dependent. If the measure of the impaired loan is less than the recorded investment in the loan, an impairment is recognized through a valuation allowance and corresponding provision for loan and lease losses. We write off impaired loans when collection of the loan is doubtful. We generally classify nonaccrual loans and leases as impaired. As of March 31, 2007, and December 31, 2006, no credit had been identified as impaired other than the nonaccrual loans and leases described above.

We classify any property acquired as a result of foreclosure on a mortgage loan as foreclosed real estate and record it at the lower of the unpaid principal balance or fair value at the date of acquisition and subsequently carry the property at the lower of cost or net realizable value. We charge any required write-down of the loan to its net realizable value against the allowance for loan and lease losses at the time of foreclosure. We charge to expense any subsequent adjustments to net realizable value. Upon foreclosure, we generally require an appraisal of the property and, thereafter, appraisals of the property on at least an annual basis and external inspections on at least a quarterly basis. As of March 31, 2007, and December 31, 2006, we had no foreclosed real estate.

Deposits

We seek deposits within our market area by paying competitive interest rates and offering high quality customer service. In conjunction with our growth strategy, we offer premium rate certificates of deposit to support loan growth.

Total deposits increased by $5,545,860 or 6.1% to $97,130,397 from $91,584,537 at December 31, 2006. Interest-bearing deposits increased $3,997,130 or 4.8% to $86,507,262 at March 31, 2007, from $82,510,132 at December 31, 2006. Noninterest bearing deposits increased $1,548,730 or 17.1% to $10,623,135 at March 31, 2007, from $9,074,405 at December 31, 2006.

A majority of the increase in our interest bearing deposits at March 31, 2007, was due to growth of premium rate certificates of deposits that were issued with maturities of one year or less. While the interest rates for certificates of deposit offered through retail broker channels and the Internet-based services are higher than what we would typically pay within our market, we view these sources as efficient processes to raise deposits expeditiously and for specific terms. The increase in noninterest bearing deposits was primarily from an increase in activity in our accounts held by title companies which is consistent with the slowdown in the real estate market.

Liquidity

Our overall asset/liability strategy takes into account our need to maintain adequate liquidity to fund asset growth and deposit runoff. We monitor our federal funds sold position on a daily basis in that this is our primary source of liquidity. From time to time we may sell or participate out loans to create additional liquidity as required. Additional liquidity is also available from our loans held for sale, which amounted to $1,631,240 at March 31, 2007.

The Federal Home Loan Bank of Atlanta initiated a credit review of AmericasBank and in January 2007 we were informed that credit availability was re-established for AmericasBank at 10% of total assets. All advances and other credit products requested under the credit availability must be fully secured with eligible collateral. We also have a $1.0 million secured line of credit from a correspondent financial institution secured by eligible investment securities. There were no outstanding balances on these lines at March 31, 2007, or December 31, 2006.

Our immediate sources of liquidity are cash and due from banks and short term investments. As of March 31, 2007, we had $2,388,086 in cash and due from banks, and $10,718,009 in federal funds sold and Federal Home Loan Bank deposit. Management has made a decision to maintain liquidity instead of investing in investment securities in order to ensure that funds are readily available to fund the growth of the loan portfolio. In addition, deposits from title companies represent a deposit that is subject to more volatility, thereby increasing our need to have funds available. We believe that our risks of volatility associated with these deposits will lessen as we add more of this type of account to our customer base.

We have sufficient liquidity to meet our loan commitments as well as fluctuations in deposits. We are not aware of any demands, trends, commitments, or events that would result in our inability to meet anticipated or unexpected liquidity needs. Although we do not have a line of credit and are limited in our use of brokered certificates of deposit, because of our large relative amount of federal funds sold, we believe that we can adequately satisfy all of our commitments.

Capital

Our stockholders’ equity was $16,154,352 at March 31, 2007, an increase of $161,956 from the $15,992,396 reported at December 31, 2006.

Under the regulations of the Board of Governors of the Federal Reserve System (the “Federal Reserve”), regulatory capital guidelines apply on a consolidated basis to bank holding companies with consolidated assets below $500 million or more only where the holding company (i) is engaged in significant nonbanking activities, (ii) conducts significant off-balance sheet activities, or (iii) has a material amount of debt or equity securities outstanding that are registered with the Securities and Exchange Commission. The Federal Reserve also may apply consolidated regulatory capital requirements at its discretion to any bank holding company, regardless of asset size, if it deems such action warranted for supervisory purposes. The Company has less than $500 million of assets and none of the above listed factors exist, and the Company has not otherwise been notified by the Federal Reserve that consolidated regulatory capital requirements apply to the Company.

The Bank, however, is subject to regulatory capital requirements. The following summarizes the Bank’s regulatory capital position at March 31, 2007.


AmericasBank ($ in thousands)	Actual				Minimum capital adequacy				To be well capitalized
March 31, 2007	Amount		Ratio		Amount		Ratio		Amount		Ratio
Total capital (to risk-weighted assets)	$	16,476	16.61	%	$	7,934	8.00	%	$	9,918	10.00	%
Tier 1 capital (to risk-weighted assets)	$	15,259	15.39	%	$	3,667	4.00	%	$	5,951	6.00	%
Tier 1 capital (to average assets)	$	15,259	14.10	%	$	4,336	4.00	%	$	5,420	5.00	%

Application of Critical Accounting Policies

General

Our financial statements are prepared in accordance with accounting principles generally accepted in the United States of America and follow general practices within the industry in which we operate. Application of these principles requires management to make estimates, assumptions, and judgments that affect the amounts reported in the financial statements and accompanying notes. These estimates, assumptions, and judgments are based on information available as of the date of the financial statements; accordingly, as this information changes, the financial statements could reflect

different estimates, assumptions, and judgments. Certain policies inherently have a greater reliance on the use of estimates, assumptions, and judgments and as such have a greater possibility of producing results that could be materially different than originally reported. Estimates, assumptions, and judgments are necessary when assets and liabilities are required to be recorded at fair value, when a decline in the value of an asset not carried on the financial statements at fair value warrants an impairment write-down or valuation reserve to be established, or when an asset or liability needs to be recorded contingent upon a future event. Carrying assets and liabilities at fair value inherently results in more financial statement volatility. The fair values and the information used to record valuation adjustments for certain assets and liabilities are based either on quoted market prices or are provided by other third-party sources, when available.

The most significant accounting policies followed by AmericasBank are presented in Note 1 to the consolidated financial statements. These policies, along with the disclosures presented in the other financial statement notes and in this financial review, provide information on how significant assets and liabilities are valued in the financial statements and how those values are determined. Based on the valuation techniques used and the sensitivity of financial statement amounts to the methods, assumptions, and estimates underlying those amounts, management has identified the determination of the allowance for loan and lease losses as the accounting area that requires the most subjective or complex judgments, and as such could be most subject to revision as new information becomes available.

Allowance for Loan and Lease Losses

The allowance for loan and lease losses represents management’s best estimate of losses known and inherent in the loan and lease portfolio that are both probable and reasonable to estimate, based on, among other factors, prior loss experience, volume and type of lending conducted, industry standards, economic conditions (particularly as such conditions relate to AmericasBank’s market area), regulatory guidance, the financial condition of the borrower, historical payment performance and the collateral securing the loans and leases. Determining the amount of the allowance for loan and lease losses is considered a critical accounting estimate because it requires significant estimates, assumptions and judgment. The loan and lease portfolio also represents the largest asset type on the balance sheets.

We have developed a methodology for evaluating the adequacy of the allowance for loan and lease losses that distinguishes between credits evaluated as a group by either loan or risk rating category and those evaluated individually. We have predetermined allowance percentages based on credit types and for each risk rating category. All loans and leases are assigned a risk rating when they are made. This risk rating is reassessed by management periodically using the various evaluation factors mentioned above. Loans and leases that exhibit an acceptable level of risk per our internal risk grading system are grouped by category and assigned a standard reserve percentage when assessing the adequacy of the allowance for loan and lease losses. Loans and leases that are adversely risk-rated, or exhibit characteristics that suggest we have a heightened risk of collection, are evaluated separately from non-adversely risk rated credits. Each adversely risk rated credit is assigned a standard reserve based on its risk rating or a special reserve based on an assessment of the specific risk factors related to that credit, which may be greater or lesser than the standard reserve for that risk rating.

Management has significant discretion in making the judgments inherent in the determination of the provision and allowance for loan and lease losses, including in connection with the valuation of collateral and the financial condition of the borrower, and in establishing allowance percentages and risk ratings. The establishment of allowance factors is a continuing exercise and allowance factors may change over time, resulting in an increase or decrease in the amount of the provision or allowance based upon the same volume and classification of loans.

Changes in allowance factors or in management’s interpretation of those factors will have a direct impact on the amount of the provision, and a corresponding effect on income and assets. Also, errors in management’s perception and assessment of the allowance factors could result in the allowance not being adequate to cover losses in the portfolio, and may result in additional provisions or charge-offs, which would adversely affect income and capital. For additional information regarding the allowance for loan and lease losses, see the “Provision for Loan and Lease Losses and Analysis of Allowance for Loan and Lease Losses” section of this financial review.

Fair Value Accounting for Stock Options

The Financial Accounting Standards Board encourages use of a fair value based method of accounting for stock options. In prior periods AmericasBank Corp. had elected to use the intrinsic value method to account for stock-based employee compensation plans in accordance with Accounting Principles Board Opinion No. 25,Accounting for Stock Issued to Employees. Under this method, compensation cost is recognized for awards of shares of common stock to employees only if the quoted market price of the stock at any measurement date is greater than the amount the employee must pay to acquire the stock. As permitted, AmericasBank Corp. elected to adopt the disclosure-only provisions of SFAS No. 123,Accounting for Stock-Based Compensation.

Effective January 1, 2005, AmericasBank Corp. began recognizing expense for stock-based compensation using the fair value based method of accounting described in Statement of Financial Accounting Standards (“SFAS”) No. 123,Accounting for Stock-Based Compensation, as amended. We have chosen the retroactive restatement method described in SFAS No. 148,Accounting for Stock-Based Compensation — Transition and Disclosure, which amended SFAS No. 123. As a result, financial information for all prior periods presented have been restated to reflect the salaries expense that would have been recognized had the recognition provisions of SFAS No. 123 been applied to all awards granted to employees.

The value of the options was estimated using the Black-Scholes option pricing model with the option life estimated at 5-9 years. There were no modifications made to outstanding share options prior to the adoption of the fair value method. The compensation expense not yet recognized as of March 31, 2007, was approximately $305,100.

Net Deferred Tax Asset

AmericasBank Corp. has recorded a 100% valuation allowance against the net deferred tax asset since it is more likely than not that it will not be realized. At December 31, 2006 and 2005, AmericasBank Corp. has net operating loss carryforwards of approximately $5,473,747 and $5,631,845 available to offset future taxable income. The current carryforwards will expire beginning in 2017.

Goodwill

Goodwill represents the cost in excess of the fair value of net assets acquired (including identifiable intangibles) in transactions accounted for as purchases. SFAS No. 142, Goodwill and Other Intangible Assets, requires that goodwill no longer be amortized over an estimated useful life, but rather be tested at least annually for impairment. Impairment is the condition that exists when the carrying amount of goodwill exceeds its implied fair value. The implied fair value of goodwill is the amount determined by deducting the estimated fair value of all tangible and identifiable intangible net assets of the reporting unit to which goodwill has been allocated from the estimated fair value of the reporting unit. If the recorded value of goodwill exceeds its implied value, an impairment charge is recorded for the excess.

Goodwill of $266,985 was recorded when we acquired certain assets and assumed certain liabilities of uvm Mortgage Marketing in October 2004. In June 2006, we agreed to separate our business relationship with the head of our Towson mortgage loan production office who was the former owner of uvm Mortgage Marketing. Among the terms of the separation agreement, the employee surrendered 12,500 shares of AmericasBank Corp common stock. These shares were unvested and expired under the terms of the purchase agreement dated October 4, 2004. Goodwill and stockholders’ equity were reduced by $64,750 to record the financial result of this transaction.

Goodwill is tested at least annually for impairment.

Estimate of Costs to Originate Loans

Off-Balance Sheet Arrangements

AmericasBank is a party to financial instruments with off-balance sheet risk in the normal course of business. These financial instruments primarily include loan commitments, lines of credit, including home-equity lines and commercial lines, and letters of credit. AmericasBank uses these financial instruments to meet the financing needs of its customers. These financial instruments involve, to varying degrees, elements of credit, interest rate, and liquidity risk. These do not represent unusual risks and management does not anticipate any accounting losses, which would have a material effect on AmericasBank.

Outstanding loan commitments and lines and letters of credit at March 31, 2007 and December 31, 2006 are as follows:


	March 31, 2007		December 31, 2006
Unused lines of credit
Residential real estate	$	10,959,157	$	15,538,907
Commercial, including real estate		1,445,769		1,097,157
Home-equity lines		6,201,152		5,519,348

	$	18,606,078	$	22,155,412

Construction and land development loan commitments	$	26,271,657	$	17,800,417

Letters of Credit	$	38,970	$	48,970

Loan commitments and held for sale loan commitments are agreements to lend to a customer as long as there is no violation of any condition established in the contract. AmericasBank generally requires collateral to support financial instruments with credit risk on the same basis as it does for on-balance sheet instruments. The collateral is based on management’s credit evaluation of the counter party. Loan commitments generally have interest rates at current market amounts, fixed expiration dates or other termination clauses and may require payment of a fee. Loan held for sale are usually sold to the investor within 30 days. Unused lines of credit represent the amount of credit available to the customer so long as there is no violation of any contractual condition. These lines generally have variable interest rates. Since many of the commitments are expected to expire without being drawn upon, and since it is unlikely that customers will draw upon their lines of credit in full at any time, the total commitment amount or line of credit amount does not necessarily represent future cash requirements. The Company is not aware of any loss it would incur by funding its commitments or lines of credit.

Letters of credit are conditional commitments issued to guarantee the performance of a customer to a third party. AmericasBank’s exposure to credit loss in the event of nonperformance by the customer is the contract amount of the commitment. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loan facilities to customers.

In general, loan commitments, credit lines and letters of credit are made on the same terms, including with respect to collateral, as outstanding loans. Each customer’s credit-worthiness and the collateral required are evaluated on a case-by-case basis.

Information Regarding Forward-Looking Statements

In addition to the historical information contained in Part I of this Quarterly Report on Form 10-QSB, the discussion in Part I of this Quarterly Report on Form 10-QSB contains certain forward-looking statements. The statements presented herein with respect to, among other things, AmericasBank Corp.’s plans, objectives, expectations and intentions, including statements regarding profitability, liquidity, allowance for loan and lease losses, interest rate sensitivity, market risk and financial and other goals are forward looking. These statements are based on AmericasBank Corp.’s beliefs, assumptions and on information available to AmericasBank Corp. as of the date of this filing, and involve risks and uncertainties. These risks and uncertainties include, among others, those discussed in this Quarterly Report on Form 10-QSB; the risk that AmericasBank Corp. may continue to incur losses; possible loss of key personnel; the inability to successfully implement strategic initiatives; risk of changes in interest rates, deposit flows and loan demand; risks associated with AmericasBank’s lending limit; risk of an industry concentration with respect to deposits; risk of credit losses; risks associated with acting as a correspondent lender; risk associated with a slowdown in the housing market or high interest rates; the allowance for loan and lease losses may not be sufficient; operational and credit risks of the leasing companies to which AmericasBank has extended credit in connection with the lease portfolio; dependence on third party vendors; risk of possible future regulatory action as a result of past violations of the Real Estate Settlement Procedures Act; as well as changes in economic, competitive, governmental, regulatory, technological and other factors that may affect AmericasBank Corp. or AmericasBank specifically or the banking industry generally.

For a more complete discussion of some of these risks and uncertainties see the discussion under the caption “Factors Affecting Future Results” in AmericasBank Corp.’s Annual Report on Form 10-KSB.

AmericasBank Corp.’s actual results could differ materially from those discussed herein and you should not put undue reliance on any forward-looking statements. All forward-looking statements speak only as of the date of this filing, and AmericasBank Corp. undertakes no obligation to make any revisions to the forward-looking statements to reflect events or circumstances after the date of this filing or to reflect the occurrence of unanticipated events.

Item 3.

Controls and Procedures

As of the end of the period covered by this quarterly report on Form 10-QSB, AmericasBank Corp.’s Chief Executive Officer and Chief Financial Officer evaluated the effectiveness of AmericasBank Corp.’s disclosure controls and procedures. Based upon that evaluation, AmericasBank Corp.’s Chief Executive Officer and Chief Financial Officer concluded that AmericasBank Corp.’s disclosure controls and procedures are effective. Disclosure controls and procedures are controls and other procedures that are designed to ensure that information required to be disclosed by AmericasBank Corp. in the reports that it files or submits under the Securities Exchange Act of 1934, as amended, is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission’s rules and forms.

In addition, there were no changes in AmericasBank Corp.’s internal control over financial reporting (as defined in Rule 13a-15 or Rule 15d-15 under the Securities Act of 1934, as amended) during the quarter ended March 31, 2006, identified in connection with the evaluation required by paragraph (d) of Securities and Exchange Commission Rule 13a-15 that have materially affected, or are reasonably likely to materially affect, AmericasBank Corp.’s internal control over financial reporting.

PART II - OTHER INFORMATION

Item 1.

Legal Proceedings.

None.

Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds

(a)

Not applicable.

(b)

Not applicable.

(c)

None.

Item 3.

Defaults Upon Senior Securities.

None.

Item 4.

Submission of Matters to a Vote of Securities Holders.

None

Item 5.

Other Information.

None.

Item 6.

Exhibits.


31.1		Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

31.2		Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

32.1		Certification of Chief Executive Officer and Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

SIGNATURES

In accordance with the requirements of the Exchange Act, the registrant caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.


	AmericasBank Corp.

Date: May 10, 2007	By:	/s/ Mark H. Anders
		Mark H. Anders, President and Chief Executive Officer
		(Principal Executive Officer)

Date: May 10, 2007	By:	/s/ A. Gary Rever
		A. Gary Rever, Chief Financial Officer
		(Principal Accounting and Financial Officer)

Americasbank (AMAB) Inactive 10QSB2007 Q1 Quarterly report (small business)