American Business Bank Announces Its Results for the Year Ended December 31st, 2016, Including 14% Loan Growth over 2015

LOS ANGELES--()--AMERICAN BUSINESS BANK (Bank) (OTCBB: AMBZ) today reported net income of $12,717,000 for the year ended 2016. Earnings per share (basic) for 2016 were $1.89 versus $1.84 in 2015. Core earnings per share were $1.63 for 2016 versus $1.68 in 2015.

Total assets increased 10%, or $172 million, to $1.843 billion at December 31, 2016, as compared to $1.671 billion at December 31, 2015. The loan portfolio (net) increased 14%, or $95 million, to $788 million at December 31, 2016, as compared to $693 million at December 31, 2015. Deposits increased 5%, or $75 million, to $1.599 billion at December 31, 2016, as compared to $1.524 billion at December 31, 2015. Borrowings from the Federal Home Loan Bank increased from $5 million at the end of 2015 to $103 million at the end of 2016.

During 2016, Net Interest Income increased $5,866,000, or 13%, to $49,860,000 from $43,994,000 million in 2015.

Non-Interest Income during 2016 increased $662,000, or 19%, to $4,080,000 from $3,418,000 in 2015. This change was mainly centered in an increase in investment gains and deposit fees combined with a reduction in other income.

Non-Interest Expense during 2016 increased $5,403,000, or 17%, to $36,501,000 from $31,098,000 in 2015. Increases in the “Other Expense” category mentioned in the Income Statement below were driven primarily in expenses related to compliance efforts and an increase in compensation and benefits.

Asset quality at the end of the fourth quarter remains excellent, with $2,353,000 in non-performing loans, or 0.3% of total loans, and no OREO. At the end of 2016, the allowance for loan losses stood at $12,965,000, or 1.62% of loans. During 2016, the Bank had a net recovery of previously charged-off loans, totaling $107,000.

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:                
December       December Change
2016       2015 %

Assets:

Cash & Equivalents $ 37,560 $ 29,798 26.0 %
Fed Funds Sold 0 10,000 -100.0 %
Interest Bearing Balances 697 30 2223.3 %

Investment Securities:

US Agencies 608,695 553,605 10.0 %
Mortgage Backed Securities 77,418 109,811 -29.5 %
State & Municipals 260,842 210,504 23.9 %
Other         6,466           4,955   30.5 %
Total Investment Securities 953,421 878,875 8.5 %

Gross Loans:

Commercial Real Estate 519,902 446,678 16.4 %
Commercial & Industrial 204,635 184,071 11.2 %
Other Real Estate 72,035 70,052 2.8 %
Other         4,770           4,832   -1.3 %
Total Gross Loans 801,342 705,633 13.6 %
Allowance for Loan & Lease Losses         (12,965 )         (12,758 ) 1.6 %
Net Loans 788,377 692,875 13.8 %
Premises & Equipment 1,442 1,512 -4.6 %
Other Assets         61,643           58,167   6.0 %
Total Assets       $ 1,843,140         $ 1,671,257   10.3 %
 

Liabilities:

Demand Deposits $ 831,838 $ 793,345 4.9 %
Money Market 721,720 668,850 7.9 %
Time Deposits and Savings         45,718           61,941   -26.2 %
Total Deposits 1,599,276 1,524,136 4.9 %
FHLB Advances / Other Borrowings 103,000 5,000 1960.0 %
Other Liabilities         4,980           10,738   -53.6 %
Total Liabilities       $ 1,707,256         $ 1,539,874   10.9 %
 

Shareholders' Equity:

Common Stock & Retained Earnings $ 148,779 $ 132,913 11.9 %
Accumulated Other Comprehensive Income / (Loss)         (12,895 )         (1,530 ) 742.8 %
Total Shareholders' Equity       $ 135,884         $ 131,383   3.4 %
Total Liabilities & Shareholders' Equity       $ 1,843,140         $ 1,671,257   10.3 %
 

Capital Adequacy:

Tangible Common Equity / Tangible Assets 7.37 % 7.86 % --
Common Equity Tier 1 Ratio 15.12 % 15.85 % --
Tier 1 Capital Ratio 15.12 % 15.85 % --
Total Capital Ratio 16.38 % 17.11 % --

Tier 1 Leverage Ratio

7.55 % 7.22 %
 

Per Share Information:

Common Shares Outstanding 6,765,141 6,614,073 --
Book Value Per Share $ 20.09 $ 19.86 1.12 %
Tangible Book Value Per Share $ 20.09 $ 19.86 1.12 %
 
 
American Business Bank
Figures in $000, except per share amounts
 
CONSOLIDATED INCOME STATEMENT (unaudited)
 
      For the 12-month period ended:        
December       December Change
2016       2015 %

Interest Income:

Loans & Leases $ 31,564 $ 29,064 8.6 %
Investment Securities         19,780           16,281   21.5 %
Total Interest Income 51,344 45,345 13.2 %
 
 

Interest Expense:

Money Market, Interest Checking & Savings 1,154 1,041 10.9 %
Time Deposits 180 246 -26.8 %
Repurchase Agreements / Other Borrowings         156           64   143.8 %
Total Interest Expense 1,490 1,351 10.3 %
 
 
Net Interest Income 49,860 43,994 13.3 %
Provision for Loan Losses         (100 )         (150 ) -33.3 %
Net Interest Income After Provision for Loan Losses 49,760 43,844 13.5 %
 
 

Non-Interest Income:

Deposit Fees 1,598 1,421 12.5 %
Realized Securities Gains 2,379 1,410 68.7 %
Other         103           587   -82.5 %
Total Non-Interest Income 4,080 3,418 19.4 %
 
 

Non-Interest Expense:

Compensation & Benefits 19,118 17,698 8.0 %
Occupancy & Equipment 2,525 2,377 6.2 %
Other         14,858           11,023   34.8 %
Total Non-Interest Expense 36,501 31,098 17.4 %
 
 
Pre-Tax Income 17,339 16,164 7.3 %
Provision for Income Tax         (4,622 )         (4,059 ) 13.9 %
 
 
Net Income       $ 12,717         $ 12,105   5.1 %
 
Less: After-Tax Realized Securities Gains $ 1,745 $ 1,056
 
Core Net Income       $ 10,972    

 

  $ 11,049         -0.7 %
 

Per Share Information:

Average Shares Outstanding (for the year) 6,733,897 6,586,481 --
Earnings Per Share - Basic $ 1.89 $ 1.84 2.8 %
 
Earnings Per Share " CORE" - Basic $ 1.63 $ 1.68 -2.9 %
 
 
American Business Bank
Figures in $000, except per share amounts
 
      December       December       Change
2016       2015 %
 

Performance Ratios

Return on Average Assets (ROAA) 0.73 % 0.76 % --
Return on Average Equity (ROAE) 9.09 % 9.62 % --
 
Return on Average Assets " CORE" (ROAA) 0.63 % 0.70 % --
Return on Average Equity " CORE" (ROAE) 7.84 % 8.78 % --
 
 

Asset Quality Overview

Non-Performing Loans $ 2,104 $ - NA
Loans 90+Days Past Due         -           -   NA
Total Non-Performing Loans $ 2,104 $ - NA
 
Restructured Loans (TDR's) $ 249 $ 922 -73.0 %
 
Other Real Estate Owned 0 0 --
 
ALLL / Gross Loans 1.62 % 1.81 % --
Non-Performing Loans / Total Loans * 0.26 % 0.00 % --
Non-Performing Assets / Total Assets * 0.11 % 0.00 % --
Net Charge-Offs $ (107 ) $ (179 ) --
Net Charge-Offs / Average Gross Loans -0.02 % -0.03 % --
 

* Excludes Restructured Loans

 

Contacts

American Business Bank
Julie Nguyen
CFO
213-430-4000

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