Americasbank (MM) (NASDAQ:AMAB)
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AmericasBank Corp. (NASDAQ:AMAB), the parent company of AmericasBank,
today announced it took a provision for loan and lease losses of
$470,000 in its quarter ending September 30, 2006. The provision boosts
the Towson-based Bank’s allowance for loan and
lease losses from $454,000 at June 30, 2006 to $916,000 at September 30,
2006. This increases the allowance for loans and leases as a percent of
loans from 0.71% at June 30, 2006 to approximately 1.15% at September
30, 2006.
Mark H. Anders, President and CEO of the Company said: “Our
provision for loan and lease losses in the third quarter should not be
interpreted as a significant weakening in the asset quality of the bank.
There were no new non-performing assets for the quarter. The loan loss
provision for the third quarter includes $123,000 for the nearly $16
million in loan growth during the third quarter and $112,000 to increase
the allowance percentage on residential investment properties to reflect
the softness in the local real estate market. The loan loss provision
for the quarter also included a special provision of $167,000 on a
$588,000 land development loan that has been on nonaccrual status since
March 2005, and $68,000 for the downgrade in the risk rating on several
loans in the portfolio.”
“With respect to the land development loan on
nonaccrual status, negotiations between the contract purchaser of the
property and the municipality where the land is located have broken
down, which exposes the bank to increased risks, including the risk of
our borrower filing for bankruptcy protection and a possible foreclosure
action. Increasing our reserves at this time is prudent in light of
current events. The loans that have had been downgraded include a
commercial finance lease of $153,000 and three loans to one borrower
aggregating $600,000 secured by residential investment properties With
regard to the latter, the borrower is actively marketing the properties
securing our loans and we believe that the proceeds from these sales
should repay the debt in full. The additional allowance on these loans
reflects the heightened risk that our loans may not be fully repaid from
the sale,” said Anders.
AmericasBank Corp. plans to release its full financial results for the
three and nine months ended September 30, 2006 before the end of October.
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.
AmericasBank Corp. (NASDAQ:AMAB), the parent company of
AmericasBank, today announced it took a provision for loan and lease
losses of $470,000 in its quarter ending September 30, 2006. The
provision boosts the Towson-based Bank's allowance for loan and lease
losses from $454,000 at June 30, 2006 to $916,000 at September 30,
2006. This increases the allowance for loans and leases as a percent
of loans from 0.71% at June 30, 2006 to approximately 1.15% at
September 30, 2006.
Mark H. Anders, President and CEO of the Company said: "Our
provision for loan and lease losses in the third quarter should not be
interpreted as a significant weakening in the asset quality of the
bank. There were no new non-performing assets for the quarter. The
loan loss provision for the third quarter includes $123,000 for the
nearly $16 million in loan growth during the third quarter and
$112,000 to increase the allowance percentage on residential
investment properties to reflect the softness in the local real estate
market. The loan loss provision for the quarter also included a
special provision of $167,000 on a $588,000 land development loan that
has been on nonaccrual status since March 2005, and $68,000 for the
downgrade in the risk rating on several loans in the portfolio."
"With respect to the land development loan on nonaccrual status,
negotiations between the contract purchaser of the property and the
municipality where the land is located have broken down, which exposes
the bank to increased risks, including the risk of our borrower filing
for bankruptcy protection and a possible foreclosure action.
Increasing our reserves at this time is prudent in light of current
events. The loans that have had been downgraded include a commercial
finance lease of $153,000 and three loans to one borrower aggregating
$600,000 secured by residential investment properties With regard to
the latter, the borrower is actively marketing the properties securing
our loans and we believe that the proceeds from these sales should
repay the debt in full. The additional allowance on these loans
reflects the heightened risk that our loans may not be fully repaid
from the sale," said Anders.
AmericasBank Corp. plans to release its full financial results for
the three and nine months ended September 30, 2006 before the end of
October.
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.