AMERICAN BUSINESS BANK Announces Its Results for the Second Quarter Ended June 30th 2015, Including 6% Loan Growth and 10% Deposit Growth over 2014 Second Quarter

LOS ANGELES--()--AMERICAN BUSINESS BANK (Bank) (OTCBB: AMBZ) today reported net income of $3,100,000 for the second quarter of 2015. Earnings per share (basic) were $0.52 at the end of the second quarter of 2015 versus $0.51 at the end of the second quarter of 2014. The Bank’s “core” earnings per share for the same period were $0.45 for 2015 versus $0.49 in 2014.

Leon Blankstein, President and CEO, said, “We were very pleased with our 10% deposit growth as our business model thrives when we meet our marketing goals, adding great middle market clients to our impressive customer base.”

“The increase in loans is also quite good as they represent our highest paying asset,” added Wes Schaefer, Vice Chairman and CFO.

Total assets increased 5% or $69 million to $1.524 billion at June 30, 2015, as compared to $1.455 billion at June 30, 2014. The loan portfolio (net) increased 6%, or $36 million, to $657 million at June 30, 2015, as compared to $621 million at June 30, 2014. Deposits increased 10%, or $123 million, to $1.387 billion at June 30, 2015, as compared to $1.264 billion at June 30, 2014. Borrowings from the Federal Home Loan Bank were reduced from $75 million at the end of the second quarter in 2014 to $5 million in term advances at the end of the second quarter in 2015.

During the second quarter of 2015, Net Interest Income increased $251,000, or 2%, to $10,651,000 from $10,400,000 during the same period in 2014.

Non-Interest income during the second quarter of 2015 decreased $6,000, or 1%, to $1,009,000 from $1,015,000 in the second quarter of 2014.

Non-Interest expense during the second quarter of 2015 increased $959,000, or 15%, to $7,569,000 from $6,610,000 during the same period in 2014. Increases in the “Other Expense” category mentioned in the Income Statement below were driven by extra cost incurred in professional fees expenses and establishing additional reserves. The Bank is in the process of updating its data processing capabilities in 2015 which has led to some additional expense in staffing and miscellaneous expenses. Costs related to compliance were also higher.

Asset quality at the end of the second quarter remains excellent, with no non-performing loans and no OREO. At the end of June 2015, the allowance for loan losses stood at $12,695,000, or 1.89% of loans. During the six months ended June 30th of 2015, the Bank had a net recovery of previously charged-off loans, totaling $127,000.

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
  2015         2014   %  
Assets:
Cash & Equivalents $ 50,401 $ 62,310 -19.1 %
Fed Funds Sold 23,000 5,000 360.0 %
Interest Bearing Balances 278 28 892.9 %

Investment Securities:

US Agencies 413,307 415,813 -0.6 %
Mortgage Backed Securities 102,276 121,510 -15.8 %
State & Municipals 218,788 173,967 25.8 %
    Other           3,031         3,009   0.7 %
Total Investment Securities 737,402 714,299 3.2 %

Gross Loans:

Commercial Real Estate 423,600 380,782 11.2 %
Commercial & Industrial 182,878 201,786 -9.4 %
Other Real Estate 58,553 45,816 27.8 %
    Other           5,014         5,240   -4.3 %
Total Gross Loans 670,045 633,624 5.7 %
        Allowance for Loan & Lease Losses     (12,695 )       (12,314 ) 3.1 %
Net Loans 657,350 621,310 5.8 %
Premises & Equipment 1,583 925 71.1 %
  Other Assets           54,324         51,208   6.1 %
    Total Assets         $ 1,524,338       $ 1,455,080   4.8 %
 

Liabilities:

Demand Deposits $ 738,400 $ 600,014 23.1 %
Money Market 582,776 591,488 -1.5 %
  Time Deposits and Savings       66,002         72,999   -9.6 %
Total Deposits 1,387,178 1,264,501 9.7 %
FHLB Advances / Other Borrowings 5,000 75,000 -93.3 %
  Other Liabilities           8,573         5,892   45.5 %
    Total Liabilities       $ 1,400,751       $ 1,345,393   4.1 %
 

Shareholders' Equity:

Common Stock & Retained Earnings $ 120,489 $ 113,734 5.9 %
  Accumulated Other Comprehensive Income / (Loss)     3,098         (4,047 ) -176.6 %
    Total Shareholders' Equity     $ 123,587       $ 109,687   12.7 %
    Total Liabilities & Shareholders' Equity   $ 1,524,338       $ 1,455,080   4.8 %
 

Capital Adequacy:

Tangible Common Equity / Tangible Assets 8.11 % 7.54 % --
Tier 1 Leverage Ratio 8.30 % 8.01 % --
Tier 1 Capital Ratio / Risk Weighted Assets 15.70 % 15.16 % --
Total Risk-Based Ratio 16.96 % 16.42 % --
 

Per Share Information:

Common Shares Outstanding 6,000,360 5,942,899 --
Book Value Per Share $ 20.60 $ 18.46 11.6 %
Tangible Book Value Per Share $ 20.60 $ 18.46 11.6 %
 
 
American Business Bank
Figures in $000, except per share amounts
             
CONSOLIDATED INCOME STATEMENT (unaudited)
 
 
For the 3-month period ended:  
June June Change
  2015         2014   %  

Interest Income:

Loans & Leases $ 7,227 $ 7,001 3.2 %
  Investment Securities       3,752         3,789   -1.0 %
Total Interest Income 10,979 10,790 1.8 %
 
 

Interest Expense:

Money Market, NOW Accounts & Savings 251 302 -16.9 %
Time Deposits 64 71 -9.9 %
  Repurchase Agreements / Other Borrowings     13         17   -23.5 %
Total Interest Expense 328 390 -15.9 %
 
 

Net Interest Income

10,651 10,400 2.4 %
  Provision for Loan Losses         (25 )       (250 ) -90.0 %
Net Interest Income After Provision for Loan Losses 10,626 10,150 4.7 %
 
 

Non-Interest Income:

Deposit Fees 413 326 26.7 %
Realized Securities Gains 518 210 146.7 %
  Other               78         479   -83.7 %
Total Non-Interest Income 1,009 1,015 -0.6 %
 
 

Non-Interest Expense:

Compensation & Benefits 4,447 3,912 13.7 %
Occupancy & Equipment 584 529 10.4 %
  Other               2,538         2,169   17.0 %
Total Non-Interest Expense 7,569 6,610 14.5 %
 
 
Pre-Tax Income 4,066 4,555 -10.7 %
  Provision for Income Tax         (966 )       (1,512 ) -36.1 %
 
 
Net Income         $ 3,100       $ 3,043   1.9 %
 
Less: After-Tax Realized Securities Gains $ 395 $ 140
 
Core Net Income         $ 2,705  

 

  $ 2,903     -6.8 %
 

Per Share Information:

Average Shares Outstanding (for the year) 5,978,158 5,938,514 --
Earnings Per Share - Basic $ 0.52 $ 0.51 1.2 %
 

Earnings Per Share "CORE" - Basic

$ 0.45 $ 0.49 -7.4 %
 
 
American Business Bank
Figures in $000, except per share amounts
               
 
June June Change
  2015         2014   %  
 

Performance Ratios

Return on Average Assets (ROAA) 0.80 % 0.83 % --
Return on Average Equity (ROAE) 9.89 % 11.07 % --
 

Return on Average Assets "CORE" (ROAA)

0.74 % 0.81 % --

Return on Average Equity "CORE" (ROAE)

9.04 % 10.78 % --
 
 

Asset Quality Overview

Non-Performing Loans $ - $ - NA
  Loans 90+Days Past Due         -         279     NA
Total Non-Performing Loans $ - $ 279 NA
 
Restructured Loans (TDR's) $ 690 2,538 -72.8 %
 
Other Real Estate Owned 0 0 --
 
ALLL / Gross Loans 1.89 % 1.94 % --
ALLL / Non-Performing Loans * NA NA --
Non-Performing Loans / Total Loans * 0.00 % 0.04 % --
Non-Performing Assets / Total Assets * 0.00 % 0.02 % --
Net Charge-Offs $ (127 ) $ (611 ) --
Net Charge-Offs / Average Gross Loans -0.02 % -0.11 % --
 
* Excludes Restructured Loans

Contacts

AMERICAN BUSINESS BANK
Wes E. Schaefer
Vice Chairman and Chief Financial Officer
(213) 430-4000

Contacts

AMERICAN BUSINESS BANK
Wes E. Schaefer
Vice Chairman and Chief Financial Officer
(213) 430-4000