American Business Bank Announces Its Results for the Year Ended December 31st, 2016, Including 14% Loan Growth over 2015 - American Business Bank (OTC:AMBZ)

LOS ANGELES--(BUSINESS WIRE)--

AMERICAN BUSINESS BANK (Bank) 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

View source version on businesswire.com: http://www.businesswire.com/news/home/20170203005576/en/

American Business Bank
Julie Nguyen
CFO
213-430-4000

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