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AMERICAN BUSINESS BANK Announces Its Results for the Quarter Ended March 31st, 2017, Including 21% Loan Growth and Net Income Growth of 7% Over 2016 Quarter End

AMBZ

AMERICAN BUSINESS BANK Announces Its Results for the Quarter Ended March 31st, 2017, Including 21% Loan Growth and Net Income Growth of 7% Over 2016 Quarter End

AMERICAN BUSINESS BANK (Bank) (OTCBB: AMBZ) today announced results for quarter ended March 31, 2017. Net income for the quarter was $3,557,000, or $0.51 per diluted share, compared to net income of $3,329,000, or $0.48 per diluted share, for the quarter ended March 31, 2016. Core earnings per share (which exclude the after tax effect of securities gains) were $0.50 for the first quarter of 2017 compared to $0.47 in 2016.

Total assets increased $77 million, or 4%, to $1.819 billion at March 31, 2017 compared to $1.742 billion at March 31, 2016. Total loans (net) increased $142 million, or 21%, to $821 million at March 31, 2017 compared to $679 million at March 31, 2016. Deposits remained unchanged at $1.551 billion at March 31, 2017. Borrowings from the Federal Home Loan Bank increased from $44 million at March 31, 2016 to $118 million at March 31, 2017.

Net Interest Income increased $1,486,000, or 12%, to $13,700,000 for the quarter ending March 31, 2017 compared to $12,214,000 for the quarter ending March 31, 2016.

Non-Interest Income declined from $1,375,000 for the quarter ending March 31, 2016 to ($364,000) for the first quarter of 2017. The decrease was primarily due to a ($76,000) decline in realized securities gains and a ($1,135,000) “non-cash” charge related to the Deferred Compensation Plan resulting from an increase in AMBZ stock price.

Non-Interest Expense declined ($436,000), or 5%, to $8,612,000 for the quarter ending March 31, 2017 from $9,048,000 for the first quarter of 2016. This decrease was primarily due to reductions in professional fees and promotional expenses.

Asset quality at the end of the first quarter remains excellent, with $2,151,000 in non-performing loans, representing 0.3% of total loans, and no OREO. At quarter end, the allowance for loan losses stood at $13,166,000, or 1.58% of total loans. For the quarter ending March 31, 2017 the Bank had a net recovery of $22,000.

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:          
March March Change
  2017         2016   %  

Assets:

Cash & Equivalents $ 58,076 $ 49,044 18.4 %
Fed Funds Sold 0 28,000 -100.0 %
Interest Bearing Balances 697 36 1836.1 %

Investment Securities:

US Agencies 550,452 608,580 -9.6 %
Mortgage Backed Securities 74,051 106,188 -30.3 %
State & Municipals 244,130 205,684 18.7 %
    Other     6,478         4,875   32.9 %
Total Investment Securities 875,111 925,327 -5.4 %

Gross Loans:

Commercial Real Estate 536,402 456,604 17.5 %
Commercial & Industrial 207,505 160,710 29.1 %
Other Real Estate 86,334 69,821 23.7 %
    Other     4,301         4,955   -13.2 %
Total Gross Loans 834,542 692,090 20.6 %
        Allowance for Loan & Lease Losses     (13,166 )       (12,801 ) 2.9 %
Net Loans 821,376 679,289 20.9 %
Premises & Equipment 1,326 1,428 -7.1 %
  Other Assets     62,384         58,925   5.9 %
    Total Assets   $ 1,818,970       $ 1,742,049   4.4 %
 

Liabilities:

Demand Deposits $ 795,132 $ 753,458 5.5 %
Money Market 712,925 736,374 -3.2 %
  Time Deposits and Savings     42,856         60,995   -29.7 %
Total Deposits 1,550,913 1,550,827 0.0 %
FHLB Advances / Other Borrowings 118,000 44,000 168.2 %
  Other Liabilities     9,305         10,117   -8.0 %
    Total Liabilities   $ 1,678,218       $ 1,604,944   4.6 %
 

Shareholders' Equity:

Common Stock & Retained Earnings $ 153,315 $ 138,336 10.8 %
  Accumulated Other Comprehensive Income / (Loss)     (12,563 )       (1,231 ) 920.6 %
    Total Shareholders' Equity   $ 140,752       $ 137,105   2.7 %
    Total Liabilities & Shareholders' Equity   $ 1,818,970       $ 1,742,049   4.4 %
 

Capital Adequacy:

Tangible Common Equity / Tangible Assets 7.74 % 7.87 % --
Common Equity Tier 1 Ratio 14.94 % 16.57 % --
Tier 1 Capital Ratio 14.94 % 16.57 % --
Total Capital Ratio 16.20 % 17.84 % --
Tier 1 Leverage Ratio 7.76 % 7.52 %

--

 

Per Share Information:

Common Shares Outstanding 6,787,023 6,707,793 --
Book Value Per Share $ 20.74 $ 20.44 1.5 %
Tangible Book Value Per Share $ 20.74 $ 20.44 1.5 %
 
 
American Business Bank
Figures in $000, except per share amounts
         
CONSOLIDATED INCOME STATEMENT (unaudited)
 
 
For the 3-month period ended:  
March March Change
  2017       2016   %  

Interest Income:

Loans & Leases $ 8,535 $ 7,579 12.6 %
  Investment Securities     5,680       5,005   13.5 %
Total Interest Income 14,215 12,584 13.0 %
 
 

Interest Expense:

Money Market and Savings Accounts 271 302 -10.3 %
Time Deposits 36 52 -30.8 %
  Repurchase Agreements / Other Borrowings     208       16   1200.0 %
Total Interest Expense 515 370 39.2 %
 
 
Net Interest Income 13,700 12,214 12.2 %
  Provision for Loan Losses     (150 )     (25 ) 500.0 %
Net Interest Income After Provision for Loan Losses 13,550 12,189 11.2 %
 
 

Non-Interest Income:

Deposit Fees 416 377 10.3 %
Realized Securities Gains 40 116 -65.5 %
  Other     (820 )     882   -193.0 %
Total Non-Interest Income (364 ) 1,375 -126.5 %
 
 

Non-Interest Expense:

Compensation & Benefits 5,595 5,196 7.7 %
Occupancy & Equipment 612 663 -7.7 %
  Other     2,405       3,189   -24.6 %
Total Non-Interest Expense 8,612 9,048 -4.8 %
 
 
Pre-Tax Income 4,574 4,516 1.3 %
  Provision for Income Tax     (1,017 )     (1,187 ) -14.3 %
 
 
Net Income   $ 3,557     $ 3,329   6.8 %
 
Less: After-Tax Realized Securities Gains $ 31 $ 86
 
Core Net Income   $ 3,526  

 

$ 3,243     8.7 %
 

Per Share Information:

Average Shares Outstanding (for the year) 6,779,954 6,658,419 --
Earnings Per Share - Diluted $ 0.51 $ 0.48 6.3 %
 
Earnings Per Share " CORE" - Diluted $ 0.50 $ 0.47 6.4 %
 
 
American Business Bank
Figures in $000, except per share amounts
         
 
 
March March Change
  2017         2016   %  
 

Performance Ratios

Return on Average Assets (ROAA) 0.76 % 0.78 % --
Return on Average Equity (ROAE) 10.31 % 9.92 % --
 
Return on Average Assets " CORE" (ROAA) 0.76 % 0.76 % --
Return on Average Equity " CORE" (ROAE) 10.22 % 9.66 % --
 
 

Asset Quality Overview

Non-Performing Loans $ 2,104 $ - NA
  Loans 90+Days Past Due     47         -     NA
Total Non-Performing Loans $ 2,151 $ - NA
 
Restructured Loans (TDR's) $ 249 $ 920 -72.9 %
 
Other Real Estate Owned 0 0 --
 
ALLL / Gross Loans 1.58 % 1.85 % --
ALLL / Non-Performing Loans * 612.09 % NA --
Non-Performing Loans / Total Loans * 0.26 % 0.00 % --
Non-Performing Assets / Total Assets * 0.12 % 0.00 % --
Net Charge-Offs $ (22 ) $ (18 ) --
 
* Excludes Restructured Loans
 

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


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