AMERICAN BUSINESS BANK (Bank) AMBZ today announced results for quarter ended June 30, 2017. Net income for the quarter was $3,513,000, or $0.50 per diluted share compared to net income of $3,278,000, or $0.47 per diluted share for the quarter ended June 30, 2016. Diluted Core earnings per share were $0.53 for the second quarter of 2017 compared to $0.30 in the same period of 2016.
Total assets increased $114 million, or 7%, to $1.778 billion at June 30, 2017 compared to $1.664 billion at June 30, 2016. Total loans (net) increased $142 million, or 19%, to $871 million at June 30, 2017 compared to $729 million at June 30, 2016. Deposits increased $90 million, or 6%, to $1.594 billion at June 30, 2017 compared to $1.504 billion at June 30, 2016. Borrowings from the Federal Home Loan Bank increased from $3 million at June 30, 2016 to $18 million at June 30, 2017.
Net Interest Income increased $1,672,000, or 14% to $13,578,000 for the quarter ending June 30, 2017 compared to $11,906,000 for the quarter ending June 30, 2016.
Non-Interest Income declined from $2,457,000 for the quarter ending June 30, 2016 to $359,000 for the second quarter of 2017. The decrease was primarily due to a ($1,322,000) after tax decline in realized securities gains and a ($191,000) after tax "non-cash" charge related to the Deferred Compensation Plan resulting from an increase in AMBZ stock price.
Non-Interest Expense declined ($704,000), or 7%, to $9,008,000 for the quarter ending June 30, 2017 from $9,712,000 for the second quarter of 2016. This decrease was primarily due to reductions in professional services fees.
Asset quality at the end of the second quarter remains excellent, with $947,000 in non-performing loans, representing 0.1% of total loans, and no OREO. At quarter end, the allowance for loan losses stood at $13,324,000, or 1.51% of total loans. As of the end of June 30, 2017 the Bank had a net recovery of ($31,000).
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: | |||||||||||||||||||||
| June | June | Change | |||||||||||||||||||
| 2017 | 2016 | % | |||||||||||||||||||
|
Assets: |
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| Cash & Equivalents | $ | 48,138 | $ | 53,387 | -9.8 | % | |||||||||||||||
| Fed Funds Sold | 12,000 | 16,000 | -25.0 | % | |||||||||||||||||
| Interest Bearing Balances | 483 | 41 | 1078.0 | % | |||||||||||||||||
|
Investment Securities: |
|||||||||||||||||||||
| US Agencies | 517,567 | 605,652 | -14.5 | % | |||||||||||||||||
| Mortgage Backed Securities | 73,187 | 58,247 | 25.6 | % | |||||||||||||||||
| State & Municipals | 183,213 | 132,727 | 38.0 | % | |||||||||||||||||
| Other | 6,488 | 6,420 | 1.1 | % | |||||||||||||||||
| Total Investment Securities | 780,455 | 803,046 | -2.8 | % | |||||||||||||||||
|
Gross Loans: |
|||||||||||||||||||||
| Commercial Real Estate | 559,285 | 483,092 | 15.8 | % | |||||||||||||||||
| Commercial & Industrial | 226,017 | 179,402 | 26.0 | % | |||||||||||||||||
| Other Real Estate | 95,112 | 74,786 | 27.2 | % | |||||||||||||||||
| Other | 4,237 | 4,308 | -1.6 | % | |||||||||||||||||
| Total Gross Loans | 884,651 | 741,588 | 19.3 | % | |||||||||||||||||
| Allowance for Loan & Lease Losses | (13,324 | ) | (12,899 | ) | 3.3 | % | |||||||||||||||
| Net Loans | 871,327 | 728,689 | 19.6 | % | |||||||||||||||||
| Premises & Equipment | 1,431 | 1,369 | 4.5 | % | |||||||||||||||||
| Other Assets | 63,788 | 61,599 | 3.6 | % | |||||||||||||||||
| Total Assets | $ | 1,777,622 | $ | 1,664,131 | 6.8 | % | |||||||||||||||
|
Liabilities: |
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| Demand Deposits | $ | 829,775 | $ | 760,455 | 9.1 | % | |||||||||||||||
| Money Market | 719,014 | 693,417 | 3.7 | % | |||||||||||||||||
| Time Deposits and Savings | 45,528 | 49,891 | -8.7 | % | |||||||||||||||||
| Total Deposits | 1,594,317 | 1,503,763 | 6.0 | % | |||||||||||||||||
| FHLB Advances / Other Borrowings | 18,000 | 3,000 | 500.0 | % | |||||||||||||||||
| Other Liabilities | 13,059 | 13,362 | -2.3 | % | |||||||||||||||||
| Total Liabilities | $ | 1,625,376 | $ | 1,520,125 | 6.9 | % | |||||||||||||||
|
Shareholders' Equity: |
|||||||||||||||||||||
| Common Stock & Retained Earnings | $ | 157,692 | $ | 142,827 | 10.4 | % | |||||||||||||||
| Accumulated Other Comprehensive Income / (Loss) | (5,446 | ) | 1,179 | -561.9 | % | ||||||||||||||||
| Total Shareholders' Equity | $ | 152,246 | $ | 144,006 | 5.7 | % | |||||||||||||||
| Total Liabilities & Shareholders' Equity | $ | 1,777,622 | $ | 1,664,131 | 6.8 | % | |||||||||||||||
|
Capital Adequacy: |
|||||||||||||||||||||
| Tangible Common Equity / Tangible Assets | 8.56 | % | 8.65 | % | -- | ||||||||||||||||
| Common Equity Tier 1 Ratio | 14.80 | % | 16.25 | % | -- | ||||||||||||||||
| Tier 1 Capital Ratio | 14.80 | % | 16.25 | % | -- | ||||||||||||||||
| Total Capital Ratio | 16.05 | % | 17.51 | % | -- | ||||||||||||||||
| Tier 1 Leverage Ratio | 8.09 | % | 7.79 | % | -- | ||||||||||||||||
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Per Share Information: |
|||||||||||||||||||||
| Common Shares Outstanding | 6,832,436 | 6,755,276 | -- | ||||||||||||||||||
| Book Value Per Share | $ | 22.28 | $ | 21.32 | 4.5 | % | |||||||||||||||
| Tangible Book Value Per Share | $ | 22.28 | $ | 21.32 | 4.5 | % | |||||||||||||||
| American Business Bank | |||||||||||||||||||||
| Figures in $000, except per share amounts | |||||||||||||||||||||
| CONSOLIDATED INCOME STATEMENT (unaudited) | |||||||||||||||||||||
| For the 3-month period ended: | |||||||||||||||||||||
| June | June | Change | |||||||||||||||||||
| 2017 | 2016 | % | |||||||||||||||||||
|
Interest Income: |
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| Loans & Leases | $ | 9,394 | $ | 7,820 | 20.1 | % | |||||||||||||||
| Investment Securities | 4,583 | 4,461 | 2.7 | % | |||||||||||||||||
| Total Interest Income | 13,977 | 12,281 | 13.8 | % | |||||||||||||||||
|
Interest Expense: |
|||||||||||||||||||||
| Money Market and Savings Accounts | 269 | 299 | -10.0 | % | |||||||||||||||||
| Time Deposits | 34 | 46 | -26.1 | % | |||||||||||||||||
| Repurchase Agreements / Other Borrowings | 96 | 30 | 220.0 | % | |||||||||||||||||
| Total Interest Expense | 399 | 375 | 6.4 | % | |||||||||||||||||
| Net Interest Income | 13,578 | 11,906 | 14.0 | % | |||||||||||||||||
| Provision for Loan Losses | (150 | ) | (25 | ) | 500.0 | % | |||||||||||||||
| Net Interest Income After Provision for Loan Losses | 13,428 | 11,881 | 13.0 | % | |||||||||||||||||
|
Non-Interest Income: |
|||||||||||||||||||||
| Deposit Fees | 421 | 397 | 6.0 | % | |||||||||||||||||
| Realized Securities Gains / (Losses) | (87 | ) | 1,776 | -104.9 | % | ||||||||||||||||
| Other | 25 | 284 | -91.2 | % | |||||||||||||||||
| Total Non-Interest Income | 359 | 2,457 | -85.4 | % | |||||||||||||||||
|
Non-Interest Expense: |
|||||||||||||||||||||
| Compensation & Benefits | 5,605 | 4,727 | 18.6 | % | |||||||||||||||||
| Occupancy & Equipment | 702 | 671 | 4.6 | % | |||||||||||||||||
| Other | 2,701 | 4,314 | -37.4 | % | |||||||||||||||||
| Total Non-Interest Expense | 9,008 | 9,712 | -7.2 | % | |||||||||||||||||
| Pre-Tax Income | 4,779 | 4,626 | 3.3 | % | |||||||||||||||||
| Provision for Income Tax | (1,266 | ) | (1,348 | ) | -6.1 | % | |||||||||||||||
| Net Income | $ | 3,513 | $ | 3,278 | 7.2 | % | |||||||||||||||
| After-Tax Realized Securities (Gains) / Losses | $ | 64 | $ | (1,258 | ) | ||||||||||||||||
| After-Tax Cash Value DCP - ABB stocks (Gains) / Losses | $ | 191 | $ | 53 | |||||||||||||||||
| Core Net Income | $ | 3,768 | # | $ | 2,073 | 81.8 | % | ||||||||||||||
|
Per Share Information: |
|||||||||||||||||||||
| Average Shares Outstanding (for the quarter) | 6,825,530 | 6,754,239 | -- | ||||||||||||||||||
| Earnings Per Share - Diluted | $ | 0.50 | $ | 0.47 | 6.4 | % | |||||||||||||||
| Earnings Per Share " CORE" - Diluted | $ | 0.53 | $ | 0.30 | 76.7 | % | |||||||||||||||
| American Business Bank | |||||||||||||||||||||
| Figures in $000, except per share amounts | |||||||||||||||||||||
| June | June | Change | |||||||||||||||||||
| 2017 | 2016 | % | |||||||||||||||||||
|
Performance Ratios |
|||||||||||||||||||||
| Return on Average Assets (ROAA) | 0.77 | % | 0.77 | % | -- | ||||||||||||||||
| Return on Average Equity (ROAE) | 9.97 | % | 9.64 | % | -- | ||||||||||||||||
| Return on Average Assets " CORE" (ROAA) | 0.89 | % | 0.57 | % | -- | ||||||||||||||||
| Return on Average Equity " CORE" (ROAE) | 11.52 | % | 7.16 | % | -- | ||||||||||||||||
|
Asset Quality Overview |
|||||||||||||||||||||
| Non-Performing Loans | $ | 947 | $ | - | NA | ||||||||||||||||
| Loans 90+Days Past Due | - | 670 | NA | ||||||||||||||||||
| Total Non-Performing Loans | $ | 947 | $ | 670 | NA | ||||||||||||||||
| Restructured Loans (TDR's) | $ | 247 | $ | 914 | -73.0 | % | |||||||||||||||
| Other Real Estate Owned | 0 | 0 | -- | ||||||||||||||||||
| ALLL / Gross Loans | 1.51 | % | 1.74 | % | -- | ||||||||||||||||
| ALLL / Non-Performing Loans * | 1406.97 | % | n/a | -- | |||||||||||||||||
| Non-Performing Loans / Total Loans * | 0.11 | % | 0.09 | % | -- | ||||||||||||||||
| Non-Performing Assets / Total Assets * | 0.05 | % | 0.04 | % | -- | ||||||||||||||||
| Net Charge-Offs / (Recoveries) | $ | (31 | ) | $ | (91 | ) | -- | ||||||||||||||
| * Excludes Restructured Loans | |||||||||||||||||||||
View source version on businesswire.com: http://www.businesswire.com/news/home/20170721005516/en/
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