AMERICAN BUSINESS BANK Announces Its Results for the Quarter Ended March 31st 2015, Including 11% Loan Growth and 9% Deposit Growth Over 2014 Quarter End

LOS ANGELES--()--AMERICAN BUSINESS BANK (Bank) (OTCBB: AMBZ) today reported net income of $2,996,000 for the first quarter of 2015. Earnings per share (basic) were $0.50 at the end of the first quarter of 2015 versus $0.45 at the end of the first quarter of 2014. The Bank’s “core” earnings per share for the same period were $0.48 for 2015 versus $0.45 in 2014.

“This is attributable to the management of our client base through the efforts of our Relationship Managers and the ability of our staff to help control expenses.”

Leon Blankstein, President and CEO, said “Our excellent results in the loan and deposit area are directly due to the efforts of our outstanding Relationship Managers.”

“We are pleased to see continuing increases in both our operating income and our core earnings.” added Wes Schaefer, Vice Chairman and CFO. “This is attributable to the management of our client base through the efforts of our Relationship Managers and the ability of our staff to help control expenses.”

Total assets increased 9% or $120 million to $1.507 billion at March 31, 2015, as compared to $1.387 billion at March 31, 2014. The loan portfolio (net) increased 11%, or $62 million, to $650 million at March 31, 2015, as compared to $588 million at March 31, 2014. Deposits increased 9%, or $108 million, to $1.351 billion at March 31, 2015, as compared to $1.243 billion at March of 2014. Borrowings from the Federal Home Loan Bank were reduced from $34 million at the end of the first quarter in 2014 to $19 million at the end of the first quarter in 2015.

During the first quarter of 2015, Net Interest Income increased $512,000, or 5%, to $10,580,000 from $10,068,000 during the same period in 2014.

Non-Interest Income during the first quarter of 2015 increased $436,000, or 84%, to $958,000 from $522,000 in the first quarter of 2014.

Non-Interest Expense during the first quarter of 2015 increased $883,000, or 14%, to $7,356,000 from $6,473,000 during the same period in 2014. Increases in the “Other Expense” category mentioned in the Income Statement below were driven by extra cost incurred in professional fees expenses and establishing additional reserves.

Asset quality at year-end remains excellent, with marginal non-performing loans and no OREO. At the end of March 2015, the allowance for loan losses stood at $12,694,000, or 1.92% of loans. During the three months ended March 31, 2015, the Bank had a net recovery of previously charged-off loans, totaling $100,000.

AMERICAN BUSINESS BANK headquartered in downtown Los Angeles offers a wide range of financial services to the business marketplace. Clients include wholesalers, manufacturers, service businesses, professionals and non-profits. The Bank has opened four Loan Production Offices in strategic areas including our Orange County Office in Irvine, our South Bay Office in Torrance, our San Fernando Valley Office in the Warner Center and our Inland Empire Office in Ontario.

American Business Bank      
Figures in $000, except per share amounts
   
CONSOLIDATED BALANCE SHEET (unaudited)
 
 
As of:        
March March Change
  2015         2014   %  
Assets:
Cash & Equivalents $ 51,503 $ 62,170 -17.2 %
Fed Funds Sold 11,000 3,000 266.7 %
Interest Bearing Balances 279 28 896.4 %
Investment Securities:
US Agencies 419,599 379,423 10.6 %
Mortgage Backed Securities 112,626 149,878 -24.9 %
State & Municipals 204,061 162,264 25.8 %
    Other         3,029         2,988   1.4 %
Total Investment Securities 739,315 694,553 6.4 %
Gross Loans:
Commercial Real Estate 411,592 362,397 13.6 %
Commercial & Industrial 197,560 191,905 2.9 %
Other Real Estate 48,920 39,783 23.0 %
    Other         4,695         5,642   -16.8 %
Total Gross Loans 662,767 599,727 10.5 %
        Allowance for Loan & Lease Losses   (12,694 )       (11,661 ) 8.9 %
Net Loans 650,073 588,066 10.5 %
Premises & Equipment 1,516 955 58.8 %
  Other Assets         53,126         38,274   38.8 %
    Total Assets       $ 1,506,812       $ 1,387,046   8.6 %
 
Liabilities:
Demand Deposits $ 691,605 $ 577,242 19.8 %
Money Market 583,388 595,105 -2.0 %
  Time Deposits and Savings     75,519         71,034   6.3 %
Total Deposits 1,350,512 1,243,381 8.6 %
FHLB Advances / Other Borrowings 19,000 34,500 -44.9 %
  Other Liabilities         12,556         5,740   118.7 %
    Total Liabilities     $ 1,382,068       $ 1,283,621   7.7 %
 
Shareholders' Equity:
Common Stock & Retained Earnings $ 122,988 $ 110,364 11.4 %
  Accumulated Other Comprehensive Income / (Loss)   1,756         (6,939 ) -125.3 %
    Total Shareholders' Equity   $ 124,744       $ 103,425   20.6 %
    Total Liabilities & Shareholders' Equity $ 1,506,812       $ 1,387,046   8.6 %
 
Capital Adequacy:
Tangible Common Equity / Tangible Assets 8.28 % 7.46 % --
Tier 1 Leverage Ratio 8.18 % 7.96 % --
Tier 1 Capital Ratio / Risk Weighted Assets 15.65 % 15.95 % --
Total Risk-Based Ratio 16.91 % 17.20 % --
 
Per Share Information:
Common Shares Outstanding 5,958,799 5,934,929 --
Book Value Per Share $ 20.93 $ 17.43 20.1 %
Tangible Book Value Per Share $ 20.93 $ 17.43 20.1 %
 
American Business Bank    
Figures in $000, except per share amounts
     
CONSOLIDATED INCOME STATEMENT (unaudited)
 
 
For the 3-month period ended:  
March March Change
2015     2014 %
Interest Income:
Loans & Leases $ 7,098 $ 6,551 8.3%
  Investment Securities     3,827     3,921 -2.4%
Total Interest Income 10,925 10,472 4.3%
 
 
Interest Expense:
Money Market, NOW Accounts & Savings 252 321 -21.5%
Time Deposits 67 71 -5.6%
  Repurchase Agreements / Other Borrowings 26     12 116.7%
Total Interest Expense 345 404 -14.6%
 
 
Net Interest Income 10,580 10,068 5.1%
  Provision for Loan Losses     (75)     (300) -75.0%
Net Interest Income After Provision for Loan Losses 10,505 9,768 7.5%
 
 
Non-Interest Income:
Deposit Fees 383 325 17.8%
Realized Securities Gains 184 7 2528.6%
  Other           391     190 105.8%
Total Non-Interest Income 958 522 83.5%
 
 
Non-Interest Expense:
Compensation & Benefits 4,232 3,909 8.3%
Occupancy & Equipment 565 516 9.5%
  Other           2,559     2,048 25.0%
Total Non-Interest Expense 7,356 6,473 13.6%
 
 
Pre-Tax Income 4,107 3,817 7.6%
  Provision for Income Tax     (1,111)     (1,122) -1.0%
 
 
Net Income       $ 2,996     $ 2,695 11.2%
 
Less: After-Tax Realized Securities Gains $ 134 $ 5
 
Core Net Income       $ 2,862

 

  $ 2,690   6.4%
 
Per Share Information:
Average Shares Outstanding (for the year) 5,955,859 5,934,929 --
Earnings Per Share - Basic $ 0.50 $ 0.45 10.8%
 
Earnings Per Share " CORE" - Basic $ 0.48 $ 0.45 6.0%
 
American Business Bank      
Figures in $000, except per share amounts
     
 
 
March March Change
  2015         2014   %  
 
Performance Ratios
Return on Average Assets (ROAA) 0.80 % 0.79 % --
Return on Average Equity (ROAE) 9.82 % 10.76 % --
 
Return on Average Assets " CORE" (ROAA) 0.76 % 0.79 % --
Return on Average Equity " CORE" (ROAE) 9.38 % 10.74 % --
 
 
Asset Quality Overview
Non-Performing Loans $ - $ - NA
  Loans 90+Days Past Due       4         279     NA
Total Non-Performing Loans $ 4 $ 279 NA
 
Restructured Loans (TDR's) $ 702 2,563 -72.6 %
 
Other Real Estate Owned 0 0 --
 
ALLL / Gross Loans 1.92 % 1.94 % --
ALLL / Non-Performing Loans * NA NA --
Non-Performing Loans / Total Loans * 0.00 % 0.05 % --
Non-Performing Assets / Total Assets * 0.00 % 0.02 % --
Net Charge-Offs $ (100 ) $ (209 ) --
Net Charge-Offs / Average Gross Loans -0.02 % -0.04 % --
 
* Excludes Restructured Loans

Contacts

AMERICAN BUSINESS BANK
Wes E. Schaefer
Vice Chairman and Chief Financial Officer
(213) 430-4000

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