AmericasBank Corp.
Contact: Mark H. Anders
Phone: 443-921-0804
Website:
www.americasbank.com
AMERICASBANK CORP. REPORTS
FOURTH QUARTER PROFIT
TOWSON, MD. (March 7, 2007) --AmericasBank Corp. (Nasdaq: AMAB), the parent
company of AmericasBank, today announced financial results for the fourth
quarter and full year ended December 31, 2006.
The Company reported net income for the fourth quarter of 2006 of $133,684 or
$0.05 per basic and diluted common share, as compared with a net profit of
$7,292 or breakeven on a per share basis for the fourth quarter of 2005. For the
year ended December 31, 2006, the company reported a net loss of $(430,834) or
$(0.18) per basic and diluted common share, compared with a net loss of
$(307,786) or $(0.33) per basic and diluted common share for 2005.
"We were very pleased with the results in the fourth quarter," stated Mark H.
Anders, President and CEO of the Company, "and while our results for all of 2006
were negatively impacted by our decision to increase the allowance for loan and
lease losses by $470,000 in the third quarter, we continue to achieve strong
growth in loans and revenue." The provision taken in the third quarter included
reserves to reflect the softness in the real estate market and special reserves
for downgraded loans. Anders further stated, "Our level of non-performing assets
to total assets has remained consistent throughout 2006, and ended the year at
0.71% of total assets compared to 0.86% of total assets at the end of 2005."
Total assets were $108,158,098 at December 31, 2006, a $35,412,034 or 48.7%
increase from $72,746,064 a year earlier. Total loans and leases, net of
allowance, increased by $35,597,328 or 72.7% to $84,586,933 at December 31, 2006
from $48,989,605 at December 31, 2005. Total deposits were $91,584,537 at the
end of 2006, compared to $67,175,482 at the end of 2005. Interest bearing
deposits increased in 2006 by $23,333,037 or 39.4% and noninterest-bearing
deposits increased $1,076,018 or 13.5% from the end of 2005.
Total interest revenue increased $944,438 or 84.5% compared with the fourth
quarter of 2005, primarily due to a 71.5% increase in average loans. Net
interest income increased by $503,962 or 91.3%, as the net margin on earning
assets increased to 4.14% in the fourth quarter of 2006, compared to 3.18% in
the fourth quarter of 2005.
The provision for loan and lease losses was $97,500 in the fourth quarter of
2006, contributing to the increase in the allowance for loan and lease losses to
1.20% of loans outstanding at the end of 2006, compared to 0.74% at the end of
2005.
Noninterest revenue for the fourth quarter decreased by $49,217 or 27.7%.
Noninterest revenue is comprised mostly of mortgage banking gains and fees which
decreased $44,580 or 29.6% in the fourth quarter of 2006, compared to 2005,
reflecting the softness in the residential real estate market.
Noninterest expenses for the fourth quarter increased by $247,853 or 35.1%.
Salaries and employee benefits increased by $53,176 or 15.1% and $50,539 or
81.3%, respectively, in the fourth quarter of 2006, compared to 2005. The
increases were mainly due to increased staff and expanded employee benefit
programs to be competitive in the market. Other expenses increased by $122,274
or 56.5% in the fourth quarter of 2006, compared to 2005 mainly due to increases
in professional fees and marketing.
ABOUT AMERICASBANK CORP.
AmericasBank Corp. is the parent company of AmericasBank, a Maryland-chartered
commercial bank headquartered in Towson, Maryland. AmericasBank is dedicated to
contributing to the growth and prosperity of the communities it serves, with a
special focus on serving the needs of the business community and promoting home
ownership.
The statements in this press release that are not historical facts constitute
"forward-looking statements" as defined by Federal Securities laws. Such
statements, regarding AmericasBank Corp.'s anticipated future results of
operations, are subject to risks and uncertainties that could cause actual
results to differ materially from future results expressed or implied by such
forward-looking statements. Potential risks and uncertainties include, but are
not limited to: the risk that AmericasBank Corp. may continue to incur losses;
the possible loss of key personnel; the inability to successfully implement
strategic initiatives; risk of changes in interest rates, deposit flows and loan
demand; risk associated with having a large percentage of residential real
estate loans secured by investment properties; risk of an industry concentration
with respect to deposits; risk of credit losses; risks associated with
residential mortgage lending, including 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 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. Forward-looking statements speak only as of the date they are made.
AmericasBank Corp. will not update forward-looking statements to reflect factual
assumptions, circumstances or events that have changed after a forward-looking
statement was made. For further information, please refer to the AmericasBank
Corp.'s filings with the U.S. Securities and Exchange Commission and available
at their web site www.sec.gov.
SUPPLEMENTAL FINANCIAL DATA IS ATTACHED
AMERICASBANK CORP. AND SUBSIDIARY
Unaudited Summary Financial Data
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CONSOLIDATED STATEMENT OF OPERATIONS
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TWELVE MONTHS ENDED THREE MONTHS ENDED
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12/31/2006 12/31/2005 12/31/2006 12/31/2005
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INCOME STATEMENT DATA:
Interest revenue $ 6,413,956 $ 3,445,525 $ 2,062,426 $ 1,117,988
Interest expense 3,017,798 1,685,153 1,006,550 566,074
------------------------------ -----------------------------
Net interest income 3,396,158 1,760,372 1,055,876 551,914
Provision for loan and lease losses 656,500 52,000 97,500 17,000
Noninterest revenue 469,014 627,497 128,352 177,569
Noninterest expenses 3,639,506 2,643,655 953,044 705,191
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Income (loss) before incomes taxes (430,834) (307,786) 133,684 7,292
Income taxes - - - -
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Net income (loss) $ (430,834) $ (307,786) $ 133,684 $ 7,292
============================== =============================
PER SHARE AND SHARES OUTSTANDING DATA:
Basic and diluted net income (loss) per common share $ (0.18) $ (0.33) $ 0.05 $ -
Average shares outstanding, basic and diluted 2,338,003 941,702 2,654,202 941,702
PERFORMANCE RATIOS:
Return on average assets -(0.49)% -(0.53)% 0.51% 0.04%
Return on average equity -(3.16)% -(5.89)% 3.93% 0.55%
Net interest margin 4.02% 3.19% 4.14% 3.18%
AMERICASBANK CORP. AND SUBSIDIARY
Unaudited Summary Financial Data
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COMPARATIVE SUMMARY FINANCIAL DATA BY QUARTER
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QUARTER ENDED
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12/31/2006 9/30/2006 6/30/2006 3/31/2006 12/31/2005
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INCOME STATEMENT DATA:
Interest revenue $ 2,062,426 $ 1,738,658 $ 1,411,071 $ 1,201,801 $ 1,117,988
Interest expense 1,006,550 813,784 605,671 591,793 566,074
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Net interest income 1,055,876 924,874 805,400 610,008 551,914
Provision for loan and lease losses 97,500 470,000 34,000 55,000 17,000
Noninterest revenue 128,352 123,593 135,369 81,700 177,569
Noninterest expenses 953,044 938,262 897,817 850,383 705,191
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Income (loss) before incomes taxes 133,684 (359,795) 8,952 (213,675) 7,292
Income taxes - - - - -
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Net income (loss) $ 133,684 $ (359,795) $ 8,952 $ (213,675) $ 7,292
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PER SHARE AND SHARES OUTSTANDING DATA:
Basic and diluted net income (loss) per common share $ 0.05 $ (0.14) $ - $ (0.16) $ -
Tangible book value per common share at period end $ 5.94 $ 5.88 $ 5.98 $ 5.93 $ 5.27
Average shares outstanding, basic and diluted 2,654,202 2,654,202 2,662,581 1,363,369 941,702
BALANCE SHEET DATA:
Total assets $ 108,158,098 $ 96,316,169 $ 81,856,691 $ 78,932,257 $ 72,746,064
Total loans, net 84,586,933 78,396,299 63,146,031 54,863,173 48,989,605
Total deposits 91,584,537 80,138,125 65,532,429 62,452,118 67,175,482
Stockholders' equity $ 15,992,396 $ 15,835,797 $ 16,105,896 $ 16,098,687 $ 5,256,051
PERFORMANCE RATIOS:
Net interest margin 4.14% 4.12% 4.22% 3.51% 3.18%
ASSET QUALITY RATIOS:
Allowance to period-end loans 1.20% 1.15% 0.71% 0.76% 0.74%
Non-performing loans to allowance for loan and lease losses 75.08% 68.01% 138.91% 148.45% 169.73%
Non-performing assets to total assets 0.71% 0.65% 0.77% 0.79% 0.86%
Net chargeoffs (recoveries) to average loans -0.01% 0.01% - - -
CAPITAL RATIOS:
Total risk-based capital ratio 21.63% 23.29% 27.78% 31.21% 11.32%
Tier I risk-based capital ratio 20.38% 22.04% 26.98% 30.40% 10.54%
Tier I leverage capital ratio 15.21% 17.05% 20.00% 21.75% 6.95%