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

View source version on businesswire.com: http://www.businesswire.com/news/home/20171026006740/en/