1
AMERICASBANK CORP.
CONTACT: MARK H. ANDERS
PHONE: 443-921-0804
WEBSITE: WWW.AMERICASBANK.COM
AMERICASBANK MOVES FORWARD WITH
EXPANSION PLANS
TOWSON, MD. (May 10, 2007) AmericasBank Corp. (Nasdaq:AMAB), the parent company
of AmericasBank, today announced a major step forward in its strategy to expand
its community banking model in Central Maryland markets.
The expansion is beginning with the renaming of the current banking center in
Towson, Maryland, which will officially become Towson Community Bank on July 1,
2007. Towson Community Bank will operate as a division of AmericasBank.
"AmericasBank is becoming a family of community banking centers organized to
look, act, and feel like independent local banks," said Mark H. Anders,
President and CEO of the Company. "We believe that small, independently-operated
community banking centers can be highly profitable by focusing sharply on
providing the personal service and common sense solutions not offered by big
banks.
"A family of such banking centers offers the opportunity for steady, controlled
growth and above-market investment returns."
AmericasBank plans to open three to five banking centers during the next five
years in central Maryland. Each banking center will be locally operated and
managed as a division of AmericasBank. A senior banker from the community will
lead each banking center as its president, supported by an advisory board of
local business and community leaders. Each banking center will operate and be
promoted under a unique trade name. A mortgage banking office will support each
banking center and will promote home ownership and the development of housing in
the community.
Anders said Towson is typical of the kind of market AmericasBank will target for
its family of banks. "Towson is a perfect market for our community banking
model," Anders said. "It's a seat of county government and home to several large
regional health care facilities, a college, and a
2
university. The demographics are ideal for a bank whose target market is the
business and professional community, as well as local organizations and
individuals. All of these customers are underserved by big banks, and there are
a dwindling number of true community banks left in the market."
Beyond Towson, Anders said the Company would soon announce an opening date for
its second community banking center in Annapolis, Maryland, followed by a third,
possibly in Frederick, Maryland. Both, like Towson, are governmental, health
care, and professional centers for their regions. The Company opened a loan
production office in Frederick last August and in Annapolis in March 2007.
"Our goal is to enter a new market by first opening a loan production office,
followed by the opening of a full service banking center in 6-12 months," Anders
said. "The costs of opening a de novo branch are high and, because we intend to
operate these banking centers as independently operated and managed banks, our
costs will be even higher. By opening a loan production office first, we believe
that we can significantly reduce the drag on earnings that would result from
opening three to five banking centers during the next five years."
Anders said his role would be changing, too. "My role as president and chief
executive officer of AmericasBank will become more strategic," he said. "While I
will work closely with the presidents of our community banking centers on
marketing and creating brand identity within their local markets, my principal
duties will be to implement our expansion plan."
Anders said that AmericasBank would be introducing the new president of Towson
Community Bank very soon, followed by the announcement of other key hires for
the Towson banking center and the naming of a president for the Annapolis
banking center, which should be open by late summer.
Anders said the AmericasBank expansion strategy represents a commitment to
steady, sustainable growth for the long term. "Implementing our expansion
strategy will be painful in the short run," he said, "but we believe that the
returns to our shareholders in the long term will validate this strategy. We
believe that our shareholders are sending us a clear message that they want us
to emphasize growth over short term earnings and we are putting the strategies
in place to accomplish this goal."
3
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.
-----------