American Business Bank Announces Its Results for the Quarter Ended September 30, 2017, Including 17% Loan Growth and Net Income Growth of 18% Over the Third Quarter of 2016

AMERICAN BUSINESS BANK AMBZ today announced results for the quarter ended September 30, 2017. Net income for the quarter was $3,783,000, or $0.48 per diluted share compared to net income of $3,210,000, or $0.42 per diluted share for the quarter ended September 30, 2016. Diluted Core earnings per share were $0.48 for the third quarter of 2017 compared to $0.43 in the same period of 2016.

Total assets decreased $62 million, or 3%, from $1.815 billion at September 30, 2016 to $1.753 billion at September 30, 2017. Total loans (net) increased $125 million, or 17%, to $865 million at September 30, 2017 compared to $740 million at September 30, 2016. Deposits decreased $24 million, or 2%, to $1.583 billion at September 30, 2017 compared to $1.607 billion at September 30, 2016. Borrowings from the Federal Home Loan Bank decreased from $51 million at September 30, 2016 to $2 million at September 30, 2017.

Net Interest Income increased $2,204,000, or 18% to $14,150,000 for the quarter ending September 30, 2017 compared to $11,946,000 for the quarter ending September 30, 2016.

Non-Interest Income increased from $494,000 for the quarter ending September 30, 2016 to $696,000 for the third quarter of 2017. Increases in the "Other Non-Interest Income" category mentioned in the Income Statement below were primarily due to an increase in the value of Bank Owned Life Insurance policies.

Non-Interest Expense increased $1,270,000, or 16%, to $9,176,000 for the quarter ending September 30, 2017 from $7,906,000 for the third quarter of 2016. This increase was primarily due to increases in salaries and employee benefits expenses and occupancy expense.

Asset quality at the end of the third quarter remains excellent, with $431,000 in non-performing loans, representing 0.1% of total loans, and no OREO. At quarter end, the allowance for loan losses stood at $13,638,000, or 1.55% of total loans. As of the quarter end of September 30, 2017 the Bank had a net recovery of ($45,000).

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
2017   2016 %

Assets:

Cash & Equivalents $ 53,033 $ 67,062 -20.9 %
Fed Funds Sold 19,000 0 NA
Interest Bearing Balances 483 5,445 -91.1 %

Investment Securities:

US Agencies 522,636 603,620 -13.4 %
Mortgage Backed Securities 68,880 83,390 -17.4 %
State & Municipals 147,104 244,287 -39.8 %
Other     13,404       6,502   106.2 %
Total Investment Securities 752,024 937,799 -19.8 %
Loans 878,262 752,536 16.7 %
Allowance for Loan & Lease Losses     (13,638 )     (12,929 ) 5.5 %
Net Loans 864,624 739,607 16.9 %
Premises & Equipment 1,328 1,422 -6.6 %
Other Assets     62,164       63,567   -2.2 %
Total Assets   $ 1,752,656     $ 1,814,902   -3.4 %
 

Liabilities:

Demand Deposits $ 795,930 $ 812,627 -2.1 %
Money Market 735,589 745,090 -1.3 %

Time Deposits and Savings

    51,233       49,093   4.4 %
Total Deposits 1,582,752 1,606,810 -1.5 %
FHLB Advances / Other Borrowings 2,000 51,000 -96.1 %
Other Liabilities     12,822       13,219   -3.0 %
Total Liabilities   $ 1,597,574     $ 1,671,029   -4.4 %
 

Shareholders' Equity:

Common Stock & Retained Earnings $ 162,238 $ 144,974 11.9 %
Accumulated Other Comprehensive Income / (Loss)     (7,156 )     (1,101 ) 550.0 %
Total Shareholders' Equity   $ 155,082     $ 143,873   7.8 %
Total Liabilities & Shareholders' Equity   $ 1,752,656     $ 1,814,902   -3.4 %
 

Capital Adequacy:

Tangible Common Equity / Tangible Assets 8.85 % 7.93 % --
Common Equity Tier 1 Ratio 15.54 % 15.64 % --
Tier 1 Capital Ratio 15.54 % 15.64 % --
Total Capital Ratio 16.80 % 16.90 % --
Tier 1 Leverage Ratio 8.33 % 7.59 % --
 

Per Share Information:

Common Shares Outstanding 7,530,819 7,440,466 --
Book Value Per Share $ 20.59 $ 19.34 6.5 %
Tangible Book Value Per Share $ 20.59 $ 19.34 6.5 %
 
 
American Business Bank
Figures in $000, except per share amounts
 
CONSOLIDATED INCOME STATEMENT (unaudited)
 
  For the 3-month period ended:    
September   September Change
2017   2016 %

Interest Income:

Loans & Leases $ 9,771 $ 8,057 21.3 %
Investment Securities     4,760       4,265   11.6 %
Total Interest Income 14,531 12,322 17.9 %
 

Interest Expense:

Money Market and Savings Accounts 330 280 17.9 %
Time Deposits 41 43 -4.7 %
Repurchase Agreements / Other Borrowings     10       53   -81.1 %
Total Interest Expense 381 376 1.3 %
 
Net Interest Income 14,150 11,946 18.4 %
Provision for Loan Losses     (300 )     (25 ) 1100.0 %
Net Interest Income After Provision for Loan Losses 13,850 11,921 16.2 %
 

Non-Interest Income:

Deposit Fees 428 403 6.2 %
Realized Securities Gains / (Losses) (19 ) - NA
Other     287       91   215.4 %
Total Non-Interest Income 696 494 40.9 %
 

Non-Interest Expense:

Compensation & Benefits 5,763 4,733 21.8 %
Occupancy & Equipment 706 602 17.3 %
Other     2,707       2,571   5.3 %
Total Non-Interest Expense 9,176 7,906 16.1 %
 
Pre-Tax Income 5,370 4,509 19.1 %
Provision for Income Tax     (1,587 )     (1,299 ) 22.2 %
 
Net Income   $ 3,783     $ 3,210   17.9 %
 
After-Tax Realized Securities (Gains) / Losses $ 13 $ -
After-Tax Cash Value DCP - ABB stocks (Gains) / Losses $ (66 ) $ 79
 
Core Net Income   $

3,730

    $ 3,289   13.4 %
 

Per Share Information:

Average Shares Outstanding (for the quarter) 7,528,125 7,434,024 --
Earnings Per Share - Diluted $ 0.48 $ 0.42 14.3 %
 

Earnings Per Share "CORE" - Diluted

$ 0.48 $ 0.43 11.6 %
 
 
American Business Bank
Figures in $000, except per share amounts
 
  September   September   Change
2017   2016 %
 

Performance Ratios

Return on Average Assets (ROAA) 0.79 % 0.76 % --
Return on Average Equity (ROAE) 9.93 % 9.38 % --
 

Return on Average Assets "CORE" (ROAA)

0.85 % 0.61 % --

Return on Average Equity "CORE" (ROAE)

10.70 % 7.62 % --
 
 

Asset Quality Overview

Non-Performing Loans $ 431 $ 1,920 NA
Loans 90+Days Past Due     -       -     NA
Total Non-Performing Loans $ 431 $ 1,920 NA
 
Restructured Loans (TDR's) $ 245 $ 914 -73.2 %
 
Other Real Estate Owned 0 0 --
 
ALLL / Gross Loans 1.55 % 1.72 % --
ALLL / Non-Performing Loans * 3164.27 % 673.39 % --
Non-Performing Loans / Total Loans * 0.05 % 0.26 % --
Non-Performing Assets / Total Assets * 0.02 % 0.11 % --
Net Charge-Offs / (Recoveries) $ (45 ) $ (4 ) --
 
*Excludes Restructured Loans
 

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