AmericasBank Corp.
Contact: Mark H. Anders
Phone: 443-921-0804
Website:
www.americasbank.com
AMERICASBANK CORP. REPORTS THIRD QUARTER PROFIT
TOWSON, MD. (November 08, 2007) -- AmericasBank Corp. (Nasdaq: AMAB), the parent
company of AmericasBank, today announced financial results for the three and
nine months ended September 30, 2007.
The Company reported net income for the third quarter of 2007 of $23,000, or
$0.01 per basic and diluted common share, as compared with net loss of
$(360,000), or $(0.14) per basic and diluted common share for the third quarter
of 2006.
For the nine months ended September 30, 2007, the Company reported net income of
$266,000 or $0.10 per basic and diluted common share, compared with a net loss
of $(565,000) or $(0.25) per basic and diluted common share for the first nine
months of last year.
"AmericasBank is six months into a significant expansion, we've been hiring
top-notch staff, and we're also absorbing other costs inherent in our growth
strategy - and yet we're still on the black side of the ledger and outperforming
our pre-expansion results," said Mark H. Anders, President and CEO. "We are
pleased to have numbers like these to report for the quarter and for the first
nine months of 2007."
In May, AmericasBank announced its plan to expand into as many as three to five
new communities in central Maryland by 2012 and to brand its banking centers
separately as divisions of the Bank.
During the third quarter, the company began to demonstrate tangible progress
with this strategy, as it opened Annapolis Community Bank on September 10 and
rebranded the former AmericasBank in Towson as Towson Community Bank. The latter
had its ribbon-cutting on October 23.
"AmericasBank is now the parent of a family of community banking centers
organized to look, act, and feel like independent local banks" Anders said.
"We're devolving the big-bank experience for our customers and putting them in
direct contact with decision makers in their own communities.
"Our small, independently-operated community banking centers can succeed by
providing the personal service and common sense solutions not offered by big
banks."
Total assets for the Company were $137,123,000 at September 30, 2007, up
$40,807,000 or 42.4% from $96,316,000 at September 30, 2006. Loans and leases,
net of allowance, increased by $42,172,000 or 53.8% to $120,568,000 at September
30, 2007, from $78,396,000 at September 30, 2006. During the nine months ended
September 30, 2007, total assets increased by 26.8%, and loans and leases, net
of the allowance increased 42.5%. Total deposits were $119,885,000 at September
30, 2007, compared to $91,585,000 at December 31, 2006, and $80,138,000 at
September 30, 2006.
Total interest revenue for the three months ended September 30, 2007, was
$2,784,000, an increase of 60.1% over interest revenues of $1,739,000 for the
three months ended September 30, 2006. Net interest income for the three months
ended September 30, 2007, increased 49.2% to $1,380,000, compared to same period
last year.
Total interest revenue for the nine months ended September 30, 2007, was
$7,433,000, an increase of 70.8% over interest revenues of $4,352,000 for the
nine months ended September 30, 2006. Net interest income for the nine months
ended September 30, 2007, increased 60.2% to $3,750,000, compared to same period
last year.
The net interest margin on earning assets improved slightly to 4.19% for the
third quarter of 2007 from 4.12% for the third quarter of 2006. The net interest
spread increased to 3.66% in the third quarter of 2007 from 3.45% in the third
quarter of 2006. The net interest margin and net interest spread for the nine
months ended September 30, 2007 was 4.24% and 3.66%, respectively, compared to
3.97% and 3.40%, respectively, for the nine months ended September 30, 2006.
The provision for loan and lease losses was $126,000 for the three months ended
September 30, 2007, down $344,000 or 73.1% from $470,000 in the third quarter of
2006. In the third quarter of 2006, the bank took an extraordinary loan loss
provision following a reassessment of the reserve factors used for certain loan
classes and for specific nonperforming and other adversely risk-rated loans.
The allowance for loan and lease losses was 1.00% of loans and leases
outstanding at September 30, 2007, compared to 1.20% at December 31, 2006 and
1.15% at September 30, 2006. The decline in the coverage of the allowance for
loan and leases losses since December 31, 2006 is related to the partial
charge-off of certain nonperforming loans from reserves established in earlier
periods. Nonperforming assets to total assets declined to 0.52% at September 30,
2007 from 0.71% at December 31, 2006. The Company reported $19,000 in net
charge-offs during the third quarter ending September 30, 2007. Net loan and
lease charge-offs for the nine months ending September 30, 2007 were $149,000 or
0.15% of average loans and leases for the period.
Noninterest revenue for the three- and nine-months ended September 30, 2007, was
$104,000 and $335,000 respectively, a 16.2% and 1.8% decrease over the same
periods last year. Noninterest revenue is comprised mostly of mortgage banking
gains and fees.
Noninterest expense was $1,333,000 and $3,475,000 for the three months and nine
months ended September 30, 2007, an increase of 42.1% and 29.3% over the
year-earlier periods. The increase in noninterest expense for the three- and
nine-month periods is attributable to the Company's expansion. The company has
increased its full time equivalent employees from 32 at September 30, 2006 to 47
at September 30, 2007. Most of the staff additions are related to the expansion
of our community banking centers in Annapolis and Towson.
According to Anders, asset quality will be a focus for the Company for the
balance of 2007 and 2008. "We have grown rapidly over the past couple of years
and we have some asset concentrations related to the housing sector," Anders
said. "We are concerned about the affects of a soft housing market and the
prospects of declining property values. We now have the resources in place to
expand our community banking franchise and are in a good position to diversify
our lending and improve our core deposit base."
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
------------------------------------ ------------------------------------
CONSOLIDATED STATEMENT OF OPERATIONS CONSOLIDATED STATEMENT OF OPERATIONS
------------------------------------ ------------------------------------
THREE MONTHS ENDED NINE MONTHS ENDED
------------------------------------ ------------------------------------
9/30/2007 9/30/2006 9/30/2007 9/30/2006
------------------------------------ ------------------------------------
INCOME STATEMENT DATA:
Interest revenue $ 2,784,139 $ 1,738,658 $ 7,433,467 $ 4,351,530
Interest expense 1,404,602 813,784 3,683,914 2,011,248
------------------------------------ ------------------------------------
Net interest income 1,379,537 924,874 3,749,553 2,340,282
Provision for loan and lease losses 126,500 470,000 343,915 559,000
Noninterest revenue 103,626 123,593 334,613 340,662
Noninterest expenses 1,333,411 938,262 3,474,592 2,686,462
------------------------------------ ------------------------------------
Income (loss) before incomes taxes 23,252 (359,795) 265,659 (564,518)
Income taxes -- -- -- --
------------------------------------ ------------------------------------
Net income (loss) $ 23,252 $ (359,795) $ 265,659 $ (564,518)
==================================== ====================================
PER SHARE AND SHARES OUTSTANDING DATA:
Basic and diluted net income (loss) per
common share $ 0.01 $ (0.14) $ 0.10 $ (0.25)
Average shares outstanding, basic and
diluted 2,654,202 2,654,202 2,654,202 2,231,446
PERFORMANCE RATIOS:
Return on average assets 0.07% (1.55)% 0.29% (0.93)%
Return on average equity 0.56% (8.72)% 2.14% (5.51)%
Net interest margin 4.19% 4.12% 4.24% 3.97%
AMERICASBANK CORP. AND SUBSIDIARY
UNAUDITED SUMMARY FINANCIAL DATA
COMPARATIVE SUMMARY FINANCIAL DATA BY QUARTER
QUARTER ENDED
--------------------------------------------------------------------
9/30/2007 6/30/2007 3/31/2007 12/31/2006 9/30/2006
--------------------------------------------------------------------
INCOME STATEMENT DATA:
Interest revenue $ 2,784,139 $ 2,481,771 $ 2,167,557 $ 2,062,426 $ 1,738,658
Interest expense 1,404,602 1,235,241 1,044,071 1,006,550 813,784
--------------------------------------------------------------------
Net interest income 1,379,537 1,246,530 1,123,486 1,055,876 924,874
Provision for loan and lease losses 126,500 59,415 158,000 97,500 470,000
Noninterest revenue 103,626 139,099 91,888 128,352 123,593
Noninterest expenses 1,333,411 1,203,168 938,013 953,044 938,262
--------------------------------------------------------------------
Income (loss) before incomes taxes 23,252 123,046 119,361 133,684 (359,795)
Income taxes -- -- -- -- --
--------------------------------------------------------------------
Net income (loss) $ 23,252 $ 123,046 $ 119,361 $ 133,684 $ (359,795)
====================================================================
PER SHARE AND SHARES OUTSTANDING DATA:
Basic and diluted net income (loss) per common share $ 0.01 $ 0.05 $ 0.04 $ 0.05 $ (0.14)
Tangible book value per common share at period end $ 6.10 $ 6.06 $ 6.00 $ 5.94 $ 5.88
Average shares outstanding, basic and diluted 2,654,202 2,654,202 2,654,202 2,654,202 2,654,202
BALANCE SHEET DATA:
Total assets $137,123,484 $142,393,571 $113,838,480 $108,158,098 $ 96,316,169
Total loans, net 120,567,905 106,335,050 96,116,533 84,586,933 78,396,299
Total deposits 119,884,757 125,219,231 97,130,397 91,584,537 80,138,125
Stockholders' equity $ 16,394,053 $ 16,312,565 $ 16,154,352 $ 15,992,396 $ 15,835,797
PERFORMANCE RATIOS:
Net interest margin 4.19% 4.22% 4.31% 4.14% 4.12%
ASSET QUALITY RATIOS:
Allowance to period-end loans 1.00% 1.03% 1.21% 1.20% 1.15%
Non-performing loans to allowance for loan and lease
losses 58.01% 70.61% 52.72% 75.08% 68.01%
Non-performing assets to total assets 0.52% 0.55% 0.55% 0.71% 0.65%
Net chargeoffs (recoveries) to average loans 0.02% 0.13% -- -- 0.01%
CAPITAL RATIOS:
Total risk-based capital ratio 14.04% 15.17% 17.30% 21.63% 23.29%
Tier I risk-based capital ratio 13.03% 14.16% 16.07% 20.38% 22.04%
Tier I leverage capital ratio 12.14% 13.30% 14.73% 15.21% 17.05%