AMERICAN BUSINESS BANK Announces Its Results for the Third Quarter Ended September 30th 2016, Including 12% Loan Growth and 10% Deposit Growth Over 2015 Third Quarter

LOS ANGELES--()--AMERICAN BUSINESS BANK (Bank) (OTCBB: AMBZ) today reported net income of $3,210,000 for the third quarter of 2016. Earnings per share (basic) increased to $0.48 for the third quarter of 2016 versus $0.47 for the third quarter of 2015. Core earnings per share for the third quarter were $0.48 in 2016 versus $0.45 in 2015.

Total assets increased 13%, or $205 million, to $1.815 billion at September 30, 2016, as compared to $1.610 billion at September 30, 2015. The loan portfolio (net) increased 12%, or $81 million, to $740 million at September 30, 2016, as compared to $659 million at September 30, 2015. Deposits increased 10%, or $142 million, to $1.607 billion at September 30, 2016, as compared to $1.465 billion at September 30, 2015. Borrowings from the Federal Home Loan Bank increased from $5 million at the end of the third quarter of 2015 to $51 million at the end of the third quarter in 2016.

During the third quarter of 2016, Net Interest Income increased $577,000, or 5%, to $11,946,000 from $11,369,000 during the same period in 2015.

Non-Interest Income during the third quarter of 2016 decreased $212,000, or (30%), to $494,000 from $706,000 in the third quarter of 2015. This change was mainly centered in 2016 third quarter reduction in investment gains as well as a reduction in other income.

Non-Interest Expense during the third quarter of 2016 decreased $159,000, or (2%), to $7,906,000 from $8,065,000 during the same period in 2015. Decreases in the “Other Expense” category mentioned in the Income Statement below were driven by a reduction in expenses primarily related to compliance efforts.

Asset quality at the end of the third quarter remains excellent, with $1,920,000 in non-performing loans, or 0.3% of total loans, and no OREO. At the end of September 2016, the allowance for loan losses stood at $12,929,000, or 1.72% of loans. During the nine months ended September 30th of 2016, the Bank had a net recovery of previously charged-off loans, totaling $95,000.

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:  
September September Change
  2016         2015   %  
Assets:
Cash & Equivalents $ 67,062 $ 47,972 39.8 %
Fed Funds Sold 0 23,000 -100.0 %
Interest Bearing Balances 5,445 279 1851.6 %

Investment Securities:

US Agencies 603,620 463,625 30.2 %
Mortgage Backed Securities 83,390 117,107 -28.8 %
State & Municipals 244,287 236,977 3.1 %
    Other         6,502         3,010   116.0 %
Total Investment Securities 937,799 820,719 14.3 %

Gross Loans:

Commercial Real Estate 499,293 438,758 13.8 %
Commercial & Industrial 177,034 163,007 8.6 %
Other Real Estate 71,925 66,145 8.7 %
    Other         4,284         3,689   16.1 %
Total Gross Loans 752,536 671,599 12.1 %
        Allowance for Loan & Lease Losses   (12,929 )       (12,742 ) 1.5 %
Net Loans 739,607 658,857 12.3 %
Premises & Equipment 1,422 1,605 -11.4 %
  Other Assets         63,567         57,129   11.3 %
    Total Assets       $ 1,814,902       $ 1,609,561   12.8 %
 

Liabilities:

Demand Deposits $ 812,627 $ 763,224 6.5 %
Money Market 745,090 636,872 17.0 %
  Time Deposits and Savings     49,093         64,748   -24.2 %
Total Deposits 1,606,810 1,464,844 9.7 %
FHLB Advances / Other Borrowings 51,000 5,000 920.0 %
  Other Liabilities         13,219         11,340   16.6 %
    Total Liabilities     $ 1,671,029       $ 1,481,184   12.8 %
 

Shareholders' Equity:

Common Stock & Retained Earnings $ 144,974 $ 129,976 11.5 %
  Accumulated Other Comprehensive Income / (Loss)   (1,101 )       (1,599 ) -31.1 %
    Total Shareholders' Equity   $ 143,873       $ 128,377   12.1 %
    Total Liabilities & Shareholders' Equity $ 1,814,902       $ 1,609,561   12.8 %
 

Capital Adequacy:

Tangible Common Equity / Tangible Assets 7.93 % 7.98 % --
Common Equity Tier 1 Ratio 15.64 % 15.84 % --
Tier 1 Capital Ratio 15.64 % 15.84 % --
Total Capital Ratio 16.90 % 17.11 % --
Tier 1 Leverage Ratio 7.59 % 7.55 % --
 

Per Share Information:

Common Shares Outstanding 6,764,060 6,609,374 --
Book Value Per Share $ 21.27 $ 19.42 9.5 %
Tangible Book Value Per Share $ 21.27 $ 19.42 9.5 %
 
American Business Bank    
Figures in $000, except per share amounts
     
CONSOLIDATED INCOME STATEMENT (unaudited)
 
 
For the 3-month period ended:  
September September Change
  2016         2015   %  

Interest Income:

Loans & Leases $ 8,057 $ 7,383 9.1 %
  Investment Securities       4,265         4,313   -1.1 %
Total Interest Income 12,322 11,696 5.4 %
 
 

Interest Expense:

Money Market, NOW Accounts & Savings 280 254 10.2 %
Time Deposits 43 61 -29.5 %
  Repurchase Agreements / Other Borrowings   53         12   341.7 %
Total Interest Expense 376 327 15.0 %
 
 
Net Interest Income 11,946 11,369 5.1 %
  Provision for Loan Losses       (25 )       (25 ) 0.0 %
Net Interest Income After Provision for Loan Losses 11,921 11,344 5.1 %
 
 

Non-Interest Income:

Deposit Fees 403 333 21.0 %
Realized Securities Gains - 106 -100.0 %
  Other             91         267   -65.9 %
Total Non-Interest Income 494 706 -30.0 %
 
 

Non-Interest Expense:

Compensation & Benefits 4,733 4,516 4.8 %
Occupancy & Equipment 602 619 -2.7 %
  Other             2,571         2,930   -12.3 %
Total Non-Interest Expense 7,906 8,065 -2.0 %
 
 
Pre-Tax Income 4,509 3,985 13.1 %
  Provision for Income Tax       (1,299 )       (910 ) 42.7 %
 
 
Net Income       $ 3,210       $ 3,075   4.4 %
 
Less: After-Tax Realized Securities Gains $ - $ 82
 
Core Net Income       $ 3,210   #   $ 2,993     7.2 %
 

Per Share Information:

Average Shares Outstanding (for the year) 6,758,204 6,607,564 --
Earnings Per Share - Basic $ 0.48 $ 0.47 2.1 %
 
Earnings Per Share " CORE" - Basic $ 0.48 $ 0.45 4.8 %
 
American Business Bank      
Figures in $000, except per share amounts
       
 
 
September September Change
  2016         2015   %  
 

Performance Ratios

Return on Average Assets (ROAA) 0.76 % 0.79 % --
Return on Average Equity (ROAE) 9.38 % 9.78 % --
 
Return on Average Assets " CORE" (ROAA) 0.65 % 0.74 % --
Return on Average Equity " CORE" (ROAE) 8.08 % 9.13 % --
 
 

Asset Quality Overview

Non-Performing Loans $ 1,920 $ - NA
  Loans 90+Days Past Due       -         -     NA
Total Non-Performing Loans $ 1,920 $ - NA
 
Restructured Loans (TDR's) $ - $ 925 -100.0 %
 
Other Real Estate Owned 0 0 --
 
ALLL / Gross Loans 1.72 % 1.90 % --

ALLL / Non-Performing Loans *

673 % NA --
Non-Performing Loans / Total Loans * 0.26 % 0.00 % --
Non-Performing Assets / Total Assets * 0.11 % 0.00 % --
Net Charge-Offs $ (95 ) $ (150 ) --
 

* Excludes Restructured Loans

Contacts

AMERICAN BUSINESS BANK
Julie Nguyen
CFO
(213) 430-4000

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