AMAB Americasbank (MM)

AmericasBank Corp. (Nasdaq:AMAB), the parent company of AmericasBank today announced financial results for the second quarter and six months ending June 30, 2006, which included a profitable current quarter, continuing improvement in operations and growth in its loan portfolio and net interest margins. Net income for the second quarter was $8,952, as compared with a net loss of $(151,470) for the second quarter of 2005. For the first half of 2006, the company reported a net loss of $(204,723), compared with a net loss of $(303,977) for the first half of last year. On a sequential basis, net interest income increased 32.0% to $805,400 for the three months ended June 30, 2006 from $610,000 for the three months ended March 31, 2006, as the company's net interest margin increased to 4.22% from 3.51%. Non interest revenues increased 65.7% to $135,369 for the quarter ended June 30, 2006 from $81,700 for the quarter ended March 31, 2006, reflecting seasonality in the company's mortgage business and a slowdown in the real estate market. Noninterest expenses increased 5.6% between the first and second quarters of 2006, to $897,817 for the three months ended June 30, 2006. On a comparative basis to the three and six months ended June 30, 2005, net interest income in 2006 increased 120.7% and 95.1%, respectively, while non interest revenues contracted (5.1)% and (22.3)%, respectively. Noninterest expenses on a comparative basis increased 40.5% and 35.6% for the same periods, respectively. "Consistent, high-quality loan growth and a better net interest margin led to a profitable second quarter, continuing our trend of overall improvement in both financial performance and operational stability," said Mark H. Anders, President & CEO of AmericasBank. "We made significant investments in our staff and added seasoned talent to our lending team to capitalize on the strong loan demand within our local niche markets." Total assets at June 30, 2006 topped $81.8 million, an increase of 12.5% or $9.1 million since December 31, 2005. Loans and leases, net of the allowance for loan losses, were $63.1 million at June 30, 2006, compared with $49.0 million at December 31, 2005 and $39.1 million at the end of the second quarter of 2005. Total deposits at June 30, 2006 were $65.5 million, down from $67.2 million at December 31, 2005 and up from $56.8 million at June 30, 2005. Stockholders equity amounted to $16.1 million at June 30, 2006, compared with $5.3 million at December 31, 2005 and $5.2 million at June 30, 2005. 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; risks associated with AmericasBank's lending limit; risks associated with the lack of a credit facility; 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 insufficient capital; 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 -0- *T AmericasBank Corp. and Subsidiary Unaudited Summary Financial Data ---------------------------------------------- Consolidated Statement of Operations ---------------------------------------------- Six months ended Three months ended ----------------------- ---------------------- 6/30/2006 6/30/2005 6/30/2006 6/30/2005 ----------- ----------- ----------- ---------- Income Statement Data: Interest revenue $2,612,872 $1,390,534 $1,411,071 $745,668 Interest expense 1,197,464 664,922 605,671 380,763 ----------- ----------- ----------- ---------- Net interest income 1,415,408 725,612 805,400 364,905 Provision for loan and lease losses 89,000 20,000 34,000 20,000 Noninterest revenue 217,069 279,217 135,369 142,672 Noninterest expenses 1,748,200 1,288,806 897,817 639,047 ----------- ----------- ----------- ---------- Income (loss) before incomes taxes (204,723) (303,977) 8,952 (151,470) Income taxes - - - - ----------- ----------- ----------- ---------- Net income (loss) $ (204,723) $ (303,977) $ 8,952 $(151,470) =========== =========== =========== ========== Per Share and Shares Outstanding Data: Basic and diluted net income (loss) per common share $ (0.10) $ (0.16) $ - $ (0.16) Average shares outstanding, basic and diluted 2,016,564 941,702 2,662,581 941,702 Performance Ratios: Return on average assets (0.54)% (1.27)% 0.05% (1.12)% Return on average equity (3.35)% (11.69)% 0.21% (11.91)% Net interest margin 3.88 % 3.17 % 4.22% 2.83 % ---------------------------------------- Comparative Summary Financial Data by Quarter ---------------------------------------- Quarter Ended ---------------------------------------- 6/30/2006 3/31/2006 12/31/2005 ---------------------------------------- Income Statement Data: Interest revenue $ 1,411,071 $ 1,201,801 $ 1,113,345 Interest expense 605,671 591,793 565,528 ---------------------------------------- Net interest income 805,400 610,008 547,817 Provision for loan and lease losses 34,000 55,000 17,000 Noninterest revenue 135,369 81,700 181,666 Noninterest expenses 897,817 850,383 705,191 ---------------------------------------- Income (loss) before incomes taxes 8,952 (213,675) 7,292 Income taxes - - - ---------------------------------------- Net income (loss) $ 8,952 $ (213,675)$ 7,292 ======================================== Per Share and Shares Outstanding Data: Basic and diluted net income (loss) per common share $ - $ (0.16)$ - Book value per common share at period end $ 6.07 $6.04 $5.58 Average shares outstanding, basic and diluted 2,662,581 1,363,369 941,702 Balance Sheet Data: Total assets $81,856,691 $78,932,257 $72,746,064 Total loans, net 63,146,031 54,863,173 48,989,605 Total deposits 65,532,429 62,452,118 67,175,482 Stockholders' equity $16,105,896 $16,098,687 $ 5,256,051 Performance Ratios: Net interest margin 4.22% 3.51% 3.15% Asset Quality Ratios: Allowance to period-end loans 0.71% 0.76% 0.74% Non-performing loans to allowance for loan and lease losses 138.91% 148.45% 169.73% Non-performing assets to total assets 0.77% 0.79% 0.86% Net chargeoffs (recoveries) to average loans - - - Capital Ratios: Total risk-based capital ratio 27.78% 31.21% 11.32% Tier I risk-based capital ratio 26.98% 30.40% 10.54% Tier I leverage capital ratio 20.00% 21.75% 6.95% -------------------------- Quarter Ended -------------------------- 9/30/2005 6/30/2005 -------------------------- Income Statement Data: Interest revenue $ 937,002 $ 745,668 Interest expense 454,157 380,763 -------------------------- Net interest income 482,845 364,905 Provision for loan and lease losses 15,000 20,000 Noninterest revenue 170,712 142,672 Noninterest expenses 649,658 639,047 -------------------------- Income (loss) before incomes taxes (11,101) (151,470) Income taxes - - -------------------------- Net income (loss) $ (11,101) $ (151,470) ========================== Per Share and Shares Outstanding Data: Basic and diluted net income (loss) per common share $ (0.01) $ (0.16) Book value per common share at period end $ 5.51 $ 5.47 Average shares outstanding, basic and diluted 941,702 941,702 Balance Sheet Data: Total assets $71,307,715 $62,030,668 Total loans, net 45,897,697 39,087,278 Total deposits 65,938,331 56,774,868 Stockholders' equity $ 5,184,807 $ 5,155,512 Performance Ratios: Net interest margin 3.23% 2.83% Asset Quality Ratios: Allowance to period-end loans 0.76% 0.85% Non-performing loans to allowance for loan and lease losses 177.94% 185.86% Non-performing assets to total assets 0.87% 1.00% Net chargeoffs (recoveries) to average loans - - Capital Ratios: Total risk-based capital ratio 12.84% 14.37% Tier I risk-based capital ratio 11.98% 13.45% Tier I leverage capital ratio 7.97% 9.02% *T