American Business Bank Reports Record Quarterly Earnings of $16.2 Million

Earnings per share for the quarter increased 25% over the prior year quarter

Second Quarter 2026 Highlights

• Net income for the quarter totaled $16.2 million, or $1.77 per diluted share
• Net interest margin expanded to 3.92% from 3.58% in the prior year quarter
• Core Deposits increased $136 million or 4% over the prior year quarter
• Cost of average deposits remained at 0.97% compared to the prior quarter
• Total loans increased $28 million or 1% over the prior quarter
• Non-interest bearing demand deposits represent 46% of total deposits
• No borrowings at the end of the second quarter
• Return on Average Assets of 1.48% for the current quarter
• Return on Average Equity of 15.11% for the current quarter
• Quarterly cash dividend paid on common stock of $0.30 per share
• Tangible book value per share increased $1.82 to $49.17 compared to the prior quarter
• Continued status as well-capitalized, the highest regulatory category

LOS ANGELES--(BUSINESS WIRE)--AMERICAN BUSINESS BANK (OTCQX: AMBZ) today reported net income of $16.2 million or $1.77 per fully diluted share for the quarter ended June 30, 2026 compared to $15.9 million or $1.73 per fully diluted share for the quarter ended March 31, 2026, and $13.2 million or $1.42 per fully diluted share for the quarter ended June 30, 2025, representing an increase of 2% and 25%, respectively.

“We are pleased to report record earnings, continued earnings per share growth, and a return on equity exceeding 15% for the quarter. I would like to thank our employees for their ongoing commitment and our shareholders for their continued confidence and support,” said Leon Blankstein, Chief Executive Officer, President, and Director.

“Second quarter results benefited from both loan growth and continued repricing, all at higher rates than the legacy portfolio. Reported loan growth during the quarter was impacted by anticipated payoffs and despite reporting limited deposit growth, our pipeline of new customer relationships remains solid. Deposits were still below year-end levels, as new relationships have yet to fully fund, creating opportunities for growth. Clients appear more optimistic than they were at the end of last year and we anticipate loan and deposit growth in the second half of the year, but overall net loan growth to be lower this year than last year.”

For the quarter ended June 30, 2026, net interest income was $42.2 million, a 15% increase compared to the prior year quarter. The higher balance of average loans, and a decrease in the cost of deposits, all contributed to the increase in net interest income compared to the prior year quarter.

The allowance for credit losses as a percentage of loans was 1.11% at June 30, 2026 and March 31, 2026. A provision of $0.4 million was recorded for the quarter to increase the allowance for credit losses primarily due to growth in the loan portfolio.

We continue to sell certain investments with longer duration and below market yields opportunistically. The following table presents net income excluding the after-tax losses on sales of investment securities to arrive at core net income:

	Three Months Ended						Six Months Ended
	June 30, 2026		March 31, 2026		June 30, 2025		June 30, 2026		June 30, 2025
(Figures in $000s, except per share amounts)
Net Income	$	16,239	$	15,861	$	13,156	$	32,100	$	25,043
Excluding After-Tax
Net Losses on Sale of Investment Securities		863		1,026		787		1,888		1,107
Core Net Income	$	17,102	$	16,887	$	13,943	$	33,988	$	26,150
Core Earnings after taxes per shares - Diluted	$	1.87	$	1.84	$	1.51	$	3.71	$	2.81

For the six months ended June 30, 2026, net income was higher compared to the six months ended June 30, 2025 due to higher average balance of loans, increase in loan yields and a decrease in the cost of deposits.

Net Interest Margin

The net interest margin for the second quarter of 2026 decreased to 3.92% from 3.93% for the prior quarter primarily due to the non-recurring, special FHLB dividend paid in the prior quarter. Without the non-recurring events in the prior quarter the net interest margin would have been 3.89% and thus would have shown an increase of 3bps to this quarter’s net interest margin. The net interest margin for the second quarter increased to 3.92% from 3.58% for the prior year quarter. The increase compared to the prior year quarter is primarily due to an increase in the balance of average loans and a positive mix change in deposits. The loan yield for the month of June was 5.74%. As of June 30, 2026, 54% of the loan portfolio was fixed rate with a weighted average remaining life of 58 months. In the next 12 months, $129 million of fixed rate loans currently yielding 4.7% will mature, and $76 million of hybrid loans currently yielding 4.6% will reprice. Approximately 44% of variable rate loans are indexed to prime of which $584 million are adjustable within 90 days of a change in the prime rate.

Net Interest Income

For the quarter ended June 30, 2026, net interest income increased by $474 thousand, or 1%, compared to the quarter ended March 31, 2026 primarily due to growth in loans at higher interest rates and one more day offset by the non-recurring, special FHLB dividend received in the prior quarter. Net yield on interest earning assets remained at 4.74% compared to the prior quarter. Compared to the quarter ended June 30, 2025, net interest income increased by $5.4 million, or 15%, in the quarter ended June 30, 2026. The increase in net interest income is primarily due to an increase in the average balance of loans with higher interest rates and a decrease in the cost of deposits. For the quarter ended June 30, 2026 and March 31, 2026, the cost of deposits was 0.97%. The loan-to-deposit ratio was 79% as of June 30, 2026 and March 31, 2026, and 75% as of June 30, 2025, respectively.

Provision for Credit Losses

The following table presents details of the provision for credit losses for the periods indicated:

	Three Months Ended							Six Months Ended
	June 30, 2026		March 31, 2026		June 30, 2025			June 30, 2026		June 30, 2025
(Figures in $000s)
Addition (recapture) to allowance for loan losses	$	368	$	962	$	463		$	1,330	$	1,444
Addition (recapture) to reserve for unfunded loan commitments		-		63		(100	)		63		(219	)
Total loan-related provision	$	368	$	1,025	$	363		$	1,393	$	1,225
Addition to allowance for held-to-maturity securities		-		-		-			-		-
Total provision for credit losses	$	368	$	1,025	$	363		$	1,393	$	1,225

Non-Interest Income

The increase in non-interest income compared to the prior quarter and the prior year quarter are primarily due to an increase in the valuation of COLI policies.

For the six months ended June 30, 2026, non-interest income increased compared to the same period a year ago, primarily due to an increase in CDARS placement fees and deposit fees offset by the sale of select lower yielding investment securities.

Non-Interest Expense

For the quarter ended June 30, 2026, total non-interest expense increased $0.8 million and $1.6 million compared to the prior quarter and the prior year quarter, respectively. The increases over the prior quarter and prior year quarter are primarily due to increases in legal expenses and employment agency fees. The efficiency ratio was 47% for the second and first quarter of 2026 and 50% for the second quarter of 2025.

For the six months ended June 30, 2026, non-interest expense increased by $3.2 million or 8% compared to the same period a year ago, mainly due to increases in salaries and employee benefits.

There were 250 full time equivalent employees at June 30, 2026 compared to 252 at March 31, 2026 and 253 at June 30, 2025. The Bank currently has 42 relationship managers in ten offices compared to 43 relationship managers at March 31, 2026 and 45 at June 30, 2025.

Income Taxes

The effective income tax rate was 26.8% for the quarter ended June 30, 2026, 25.6% for the quarter ended March 31, 2026, and 27.3% for the quarter ended June 30, 2025. The reduction compared to prior year quarter is a result of an increase in excess tax benefit on current year restricted stock vesting. Without this excess tax benefit, the effective income tax rate for the quarter and year to date periods would have been 27.7%.

Balance Sheet

For the quarter ended June 30, 2026, total loans increased $28 million, or 1% compared to the prior quarter. The majority of this quarter’s increase in loan balances was in Commercial and Industrial (C&I) loans, primarily due to new relationships. Commercial real estate loans declined due to elevated maturities and prepayments. At June 30, 2026, the utilization rate for the Bank’s commercial lines of credit was 29%, a 1% decrease compared to March 31, 2026 and June 30, 2025.

The following table is the composition of Commercial Real Estate (CRE) loans as of:

	June 30, 2026			March 31, 2026
(Figures in $000s)
Owner-occupied		$	1,369,327	$	1,392,790
Non-owner occupied			770,999		762,288
Construction & Land			94,366		97,880
Total CRE Loans		$	2,234,693	$	2,252,957

The following table is the composition of the owner-occupied and non-owner-occupied CRE loans by collateral type as of:

	June 30, 2026				March 31, 2026
	Owner-occupied		Non owner-occupied		Owner-occupied		Non owner-occupied
(Figures in $000s)
Industrial	$	869,744	$	323,108	$	898,376	$	317,620
Office		175,370		101,173		177,771		96,810
Retail		28,611		189,143		24,256		190,392
Automobile Service Facilities		66,372		28,137		66,943		28,245
Contractor's Yard		81,601		18,325		76,673		17,506
School		37,873		-		38,183		-
Storage		-		10,877		-		10,942
Miscellaneous		109,755		100,237		110,588		100,773
Total	$	1,369,327	$	770,999	$	1,392,790	$	762,288

Total investment securities at June 30, 2026 were $1 billion including $510 million (49%) in held-to-maturity (HTM) securities based on book value. The Bank has no non-agency mortgage-backed securities in its portfolio. The duration of the available-for-sale (AFS) securities portfolio was 5.4 years as of June 30, 2026, 5.6 years as of March 31, 2026 and 6.1 years as of June 30, 2025. Accumulated other comprehensive loss (AOCI) improved to $50.9 million as of June 30, 2026 from $54.1 million as of March 31, 2026 and from $70.7 million as of June 30, 2025 as market rates relevant to securities pricing decreased. The duration of the held-to-maturity portfolio, which consists primarily of municipal securities, is 7.7 years. As of June 30, 2026, the unrealized after tax loss on HTM securities was $60 million.

Deposits increased by $34 million or 1% to $3.9 billion in the quarter ended June 30, 2026. The increase in the quarter was a result of increases of $35 million in non-interest bearing demand deposits and $41 million in money market and savings deposits offset by a decrease of $23 million in customer certificates of deposit. For the second quarter, new deposit relationships have totaled approximately $6 million from 27 new clients. The Bank has never had brokered or internet-solicited deposits. The ratio of non-interest bearing deposits to total deposits was 46% at June 30, 2026, March 31, 2026, and June 30, 2025.

During the second quarter of 2026, total assets increased $46 million, total investment securities decreased by $19 million, total loans increased by $28 million, and total deposits increased by $34 million. As of June 30, 2026, the Bank has $1.6 billion in total borrowing capacity from the discount window of the Federal Reserve Board and loans pledged at the Federal Home Loan Bank of San Francisco. There were no borrowings outstanding at the end of the second quarter of 2026.

Capital Management

For the quarter ended June 30, 2026, total shareholders’ equity increased by $15 million to $437 million. During the quarter, the Bank declared and paid a cash dividend of $0.30 per share, totaling $2.7 million, and repurchased 31,500 shares of common stock at a weighted average price of $72.05, totaling $2.3 million.

The Bank’s Board of Directors has an authorized stock repurchase program for 205,453 shares, or approximately 2.3% of the Bank’s outstanding shares of common stock, which expires in August 2026. The Bank has already repurchased 53% of this authorization leaving 97,389 shares to be repurchased in the current authorization.

Asset Quality

The following table presents an overview of asset quality:

	June 30, 2026			March 31, 2026
(Figures in $000s)
Non-performing assets (NPA)	$	13,624		$	13,681
Loans 90+ days past due and still accruing		-			-
Total NPA	$	13,624		$	13,681
NPA as a % of total assets		0.31	%		0.31	%
Past due loans 30 to 89 days	$	3,639		$	1,547
Criticized Loans		135,683			133,430
Classified Loans		31,986			29,412
Past Due as a % of total loans		0.12	%		0.05	%
Criticized as a % of total loans		4.34	%		4.31	%
Classified as a % of total loans		1.02	%		0.95	%

During the second quarter of 2026, non-performing assets decreased by $0.1 million due to loan payments and the addition of two relationships consisting of a home equity line of credit and a credit card. As of June 30, 2026, NPAs have a $688 thousand allowance on individually evaluated loans related to five non-performing C&I loans.

“Although no single industry is predominate in the NPA portfolio, the increase in past dues and classified loans relate to the same customer who has provided additional real estate collateral such that all commitments are fully secured by commercial real estate,” commented Jeffrey Munson, Executive Vice President and Chief Credit Officer (CCO).

The loan portfolio has approximately 9% in office collateral of which the majority is owner-occupied, and substantially all are three stories or under and located in suburban markets.

Our commercial real estate lending is primarily owner-occupied which is not dependent on rent rolls, but reliant on the cash flows of the operating business that occupies the property. C&I and owner-occupied commercial real estate portfolios comprise 66% of total loans while non-owner occupied represent 35% of total loans.

The following table represents the allowance for credit losses for loans as of and for the dates and periods indicated:

	Three Months Ended									Six Months Ended
	June 30, 2026			March 31, 2026			June 30, 2025			June 30, 2026			June 30, 2025
(Figures in $000s)
Balance, beginning of period	$	34,465		$	33,502		$	31,429		$	33,502		$	30,448
Charge-offs		(58	)		-			-			(58	)		-
Recoveries		3			1			-			4			-
Net (charge-offs) / recoveries	$	(55	)	$	1		$	-		$	(54	)	$	-
Provision		368			962			463			1,330			1,444
Balance, end of period	$	34,778		$	34,465		$	31,892		$	34,778		$	31,892
Allowance as a % of loans		1.11	%		1.11	%		1.10	%		1.11	%		1.10	%

The allowance for credit losses for loans increased to $34.8 million during the second quarter of 2026 as a result of growth in the loan portfolio and a higher allowance on individually evaluated loans. There were $58 thousand of charge-offs of three unsecured loans and recoveries of $3 thousand in the second quarter of 2026. Three relationships totaling $4.8 million were restructured in the past twelve months involving borrowers experiencing financial difficulty.

ABOUT AMERICAN BUSINESS BANK

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. American Business Bank has nine Loan Production Offices in strategic locations including: North Orange County in Anaheim, Orange County in Irvine, South Bay in Torrance, San Fernando Valley in Woodland Hills, Southern Inland Empire in Corona, Inland Empire in Ontario, Riverside County in Downtown Riverside, LA Coastal in Long Beach and North County in San Diego.

FORWARD LOOKING STATEMENTS

This communication contains certain forward-looking information about American Business Bank that is intended to be covered by the safe harbor for “forward-looking statements” provided by the Private Securities Litigation Reform Act of 1995. Such statements include future financial and operating results, expectations, intentions and other statements that are not historical facts. Such statements are based on information available at the time of this communication and are based on current beliefs and expectations of the Bank’s management and are subject to significant risks, uncertainties and contingencies, many of which are beyond our control. Actual results may differ materially from those set forth in the forward-looking statements due to a variety of factors, including various risk factors. We are under no obligation (and expressly disclaim any such obligation) to update or alter our forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

American Business Bank
Figures in $000, except share and per share amounts
BALANCE SHEETS (unaudited)
	June			March			December			June
	2026			2026			2025			2025
Assets:
Cash and Due from Banks	$	106,190		$	61,943		$	36,066		$	111,692
Interest Earning Deposits in Other Financial Institutions		111,591			132,546			209,463			140,843
Investment Securities:
US Agencies		59,390			62,069			66,043			64,069
Mortgage Backed Securities		326,865			334,899			348,912			363,486
State and Municipals		66,405			65,121			65,799			69,464
Corporate Bonds		8,846			10,756			10,633			13,547
Securities Available-for-Sale, at Fair Value		461,506			472,845			491,387			510,566
Mortgage Backed Securities		149,008			152,181			154,528			160,723
State and Municipals		358,637			363,096			373,302			376,867
Allowance for Credit Losses, Held-To-Maturity		(55	)		(55	)		(55	)		(55	)
Securities Held-to-Maturity, at Amortized Cost,		507,590			515,222			527,775			537,535
Net of Allowance for Credit Losses
Federal Home Loan Bank Stock, at Cost		15,000			15,000			15,000			15,000
Total Investment Securities		984,096			1,003,067			1,034,162			1,063,101
Loans Receivable:
Commercial Real Estate		2,234,693			2,252,957			2,251,971			2,137,459
Commercial and Industrial		706,532			660,731			602,481			537,550
Residential Real Estate		173,810			175,196			183,434			207,870
Installment and Other		9,660			7,815			7,993			12,098
Total Loans Receivable		3,124,695			3,096,699			3,045,879			2,894,977
Allowance for Credit Losses		(34,778	)		(34,464	)		(33,502	)		(31,892	)
Loans Receivable, Net		3,089,917			3,062,235			3,012,377			2,863,085
Furniture, Equipment and Leasehold Improvements, Net		4,209			4,425			4,726			4,889
Bank/Corporate Owned Life Insurance		31,664			31,077			31,028			30,324
Other Assets		89,708			75,921			78,771			84,309
Total Assets	$	4,417,375		$	4,371,214		$	4,406,593		$	4,298,243
Liabilities:
Non-Interest Bearing Demand Deposits	$	1,812,871		$	1,777,742		$	1,781,419		$	1,776,642
Interest Bearing Transaction Accounts		468,165			487,191			496,248			427,758
Money Market and Savings Deposits		1,493,502			1,452,420			1,520,563			1,434,492
Certificates of Deposit		163,670			186,726			155,823			233,322
Total Deposits		3,938,208			3,904,079			3,954,053			3,872,214
Federal Home Loan Bank Advances / Other Borrowings		-			-			-			-
Other Liabilities		42,478			45,594			41,415			53,431
Total Liabilities	$	3,980,686		$	3,949,673		$	3,995,468		$	3,925,645
Shareholders' Equity:
Common Stock	$	195,915		$	197,405		$	198,957		$	202,723
Retained Earnings		291,708			278,191			265,050			240,534
Accumulated Other Comprehensive Income / (Loss)		(50,934	)		(54,055	)		(52,882	)		(70,659	)
Total Shareholders' Equity	$	436,689		$	421,541		$	411,125		$	372,598
Total Liabilities and Shareholders' Equity	$	4,417,375		$	4,371,214		$	4,406,593		$	4,298,243
Standby Letters of Credit	$	42,612		$	34,785		$	32,472		$	47,861
Per Share Information:
Common Shares Outstanding		8,878,621			8,900,145			8,873,452			8,968,494
Book Value Per Share	$	49.18		$	47.36		$	46.33		$	41.55
Tangible Book Value Per Share	$	49.17		$	47.35		$	46.33		$	41.55

American Business Bank
Figures in $000, except share and per share amounts
INCOME STATEMENTS (unaudited)
	For the three months ended:
	June			March			June
	2026			2026			2025
Interest Income:
Interest and Fees on Loans	$	44,185		$	42,813		$	39,619
Interest on Investment Securities		6,067			6,866			6,803
Interest on Interest Earning Deposits in Other Financial Institutions		1,363			1,343			1,241
Total Interest Income		51,615			51,022			47,663
Interest Expense:
Interest on Interest Bearing Transaction Accounts		915			994			878
Interest on Money Market and Savings Deposits		7,524			7,289			7,918
Interest on Certificates of Deposits		1,009			1,045			2,088
Interest on Federal Home Loan Bank Advances and Other Borrowings		-			1			-
Total Interest Expense		9,448			9,329			10,884
Net Interest Income		42,167			41,693			36,779
Provision for Credit Losses		368			1,025			363
Net Interest Income after Provision for Credit Losses		41,799			40,668			36,416
Non-Interest Income:
Deposit Fees		1,396			1,380			1,219
International Fees		260			248			382
Gain (Loss) on Sale of Investment Securities, Net		(1,179	)		(1,380	)		(1,083	)
Gain on Sale of SBA Loans, Net		-			219			185
Bank/Corporate Owned Life Insurance Income (Expense)		587			49			303
Other		706			750			434
Total Non-Interest Income		1,770			1,266			1,440
Non-Interest Expense:
Salaries and Employee Benefits		14,352			14,176			13,625
Occupancy and Equipment		1,430			1,402			1,355
Professional Services		3,096			2,598			2,346
Promotion Expenses		764			645			743
Other		1,750			1,788			1,688
Total Non-Interest Expense		21,392			20,609			19,757
Earnings before income taxes		22,177			21,325			18,099
Income Tax Expense		5,938			5,464			4,943
NET INCOME	$	16,239		$	15,861		$	13,156
Per Share Information:
Earnings Per Share - Basic	$	1.79		$	1.75		$	1.43
Earnings Per Share - Diluted	$	1.77		$	1.73		$	1.42
Weighted Average Shares - Basic		9,070,816			9,069,381			9,178,069
Weighted Average Shares - Diluted		9,161,267			9,178,236			9,242,984

American Business Bank
Figures in $000, except share and per share amounts
INCOME STATEMENTS (unaudited)
	For the six months ended:
	June			June
	2026			2025
Interest Income:
Interest and Fees on Loans	$	86,998		$	77,103
Interest on Investment Securities		12,933			13,776
Interest on Interest Earning Deposits in Other Financial Institutions		2,706			2,411
Total Interest Income		102,637			93,290
Interest Expense:
Interest on Interest Bearing Transaction Accounts		1,908			1,748
Interest on Money Market and Savings Deposits		14,814			15,544
Interest on Certificates of Deposits		2,054			4,456
Interest on Federal Home Loan Bank Advances and Other Borrowings		1			1
Total Interest Expense		18,777			21,749
Net Interest Income		83,860			71,541
Provision for Credit Losses		1,393			1,225
Net Interest Income after Provision for Credit Losses		82,467			70,316
Non-Interest Income:
Deposit Fees		2,776			2,381
International Fees		508			752
Gain (Loss) on Sale of Investment Securities, Net		(2,559	)		(1,525	)
Gain on Sale of SBA Loans, Net		219			244
Bank/Corporate Owned Life Insurance Income (Expense)		636			382
Other		1,456			774
Total Non-Interest Income		3,036			3,008
Non-Interest Expense:
Salaries and Employee Benefits		28,528			26,502
Occupancy and Equipment		2,832			2,655
Professional Services		5,693			4,787
Promotion Expenses		1,408			1,463
Other		3,540			3,408
Total Non-Interest Expense		42,001			38,815
Earnings before income taxes		43,502			34,509
Income Tax Expense		11,402			9,466
NET INCOME	$	32,100		$	25,043
Per Share Information:
Earnings Per Share - Basic	$	3.54		$	2.71
Earnings Per Share - Diluted	$	3.50		$	2.69
Weighted Average Shares - Basic		9,070,098			9,230,664
Weighted Average Shares - Diluted		9,169,751			9,305,795

American Business Bank
Figures in $000
QUARTERLY AVERAGE BALANCE SHEETS AND YIELD ANALYSIS (unaudited)
	For the three months ended:
	June 2026						March 2026
	Average		Interest		Average		Average		Interest		Average
	Balance		Inc/Exp		Yield/Rate		Balance		Inc/Exp		Yield/Rate
Interest Earning Assets:
Interest Earning Deposits in Other Financial Institutions	$	147,663	$	1,363	3.70	%	$	147,013	$	1,343	3.70	%
Investment Securities:
US Agencies		60,894		670	4.40	%		63,949		722	4.51	%
Mortgage Backed Securities		549,503		2,686	1.96	%		565,042		2,783	1.97	%
State and Municipals		432,417		2,473	2.29	%		440,942		2,487	2.26	%
Corporate Bonds		10,159		110	4.32	%		11,500		121	4.20	%
Securities Available-for-Sale and Held-to-Maturity		1,052,973		5,939	2.26	%		1,081,433		6,113	2.26	%
Federal Home Loan Bank Stock		15,000		128	3.41	%		15,000		753	20.09	%
Total Investment Securities		1,067,973		6,067	2.27	%		1,096,433		6,866	2.50	%
Loans Receivable:
Commercial Real Estate		2,239,810		30,434	5.45	%		2,237,064		29,755	5.39	%
Commercial and Industrial		674,686		11,147	6.63	%		637,615		10,392	6.61	%
Residential Real Estate		171,222		2,518	5.90	%		175,984		2,594	5.98	%
Installment and Other		10,689		86	3.22	%		10,734		72	2.71	%
Total Loans Receivable		3,096,407		44,185	5.72	%		3,061,397		42,813	5.67	%
Total Interest Earning Assets	$	4,312,043	$	51,615	4.74	%	$	4,304,843	$	51,022	4.74	%
Liabilities:
Non-Interest Bearing Demand Deposits		1,790,166		-	0.00	%		1,780,134		-	0.00	%
Interest Bearing Transaction Accounts		474,533		915	0.77	%		492,639		994	0.82	%
Money Market and Savings Deposits		1,464,375		7,524	2.06	%		1,464,857		7,289	2.02	%
Certificates of Deposit		172,940		1,009	2.34	%		168,431		1,045	2.52	%
Total Deposits		3,902,014		9,448	0.97	%		3,906,061		9,328	0.97	%
Federal Home Loan Bank Advances / Other Borrowings		-		-	0.00	%		59		1	3.75	%
Total Interest Bearing Deposits and Borrowings		2,111,848		9,448	1.79	%		2,125,986		9,329	1.78	%
Total Deposits and Borrowings	$	3,902,014	$	9,448	0.97	%	$	3,906,120	$	9,329	0.97	%
Net Interest Income			$	42,167					$	41,693
Net Interest Rate Spread					3.77	%					3.77	%
Net Interest Margin					3.92	%					3.93	%

American Business Bank
Figures in $000
QUARTERLY AVERAGE BALANCE SHEETS AND YIELD ANALYSIS (unaudited)
	For the three months ended:
	June 2026						June 2025
	Average		Interest		Average		Average		Interest		Average
	Balance		Inc/Exp		Yield/Rate		Balance		Inc/Exp		Yield/Rate
Interest Earning Assets:
Interest Earning Deposits in Other Financial Institutions	$	147,663	$	1,363	3.70	%	$	111,541	$	1,241	4.46	%
Investment Securities:
US Agencies		60,894		670	4.40	%		64,610		804	4.98	%
Mortgage Backed Securities		549,503		2,686	1.96	%		618,064		2,962	1.92	%
State and Municipals		432,417		2,473	2.29	%		457,717		2,528	2.21	%
Corporate Bonds		10,159		110	4.32	%		16,003		180	4.49	%
Securities Available-for-Sale and Held-to-Maturity		1,052,973		5,939	2.26	%		1,156,394		6,474	2.24	%
Federal Home Loan Bank Stock		15,000		128	3.41	%		15,000		329	8.76	%
Total Investment Securities		1,067,973		6,067	2.27	%		1,171,394		6,803	2.32	%
Loans Receivable:
Commercial Real Estate		2,239,810		30,434	5.45	%		2,111,852		27,741	5.27	%
Commercial and Industrial		674,686		11,147	6.63	%		514,569		8,623	6.72	%
Residential Real Estate		171,222		2,518	5.90	%		205,573		3,202	6.25	%
Installment and Other		10,689		86	3.22	%		9,546		53	2.23	%
Total Loans Receivable		3,096,407		44,185	5.72	%		2,841,540		39,619	5.59	%
Total Interest Earning Assets	$	4,312,043	$	51,615	4.74	%	$	4,124,475	$	47,663	4.57	%
Liabilities:
Non-Interest Bearing Demand Deposits		1,790,166		-	0.00	%		1,695,399		-	0.00	%
Interest Bearing Transaction Accounts		474,533		915	0.77	%		419,489		878	0.84	%
Money Market and Savings Deposits		1,464,375		7,524	2.06	%		1,369,208		7,918	2.32	%
Certificates of Deposit		172,940		1,009	2.34	%		269,409		2,088	3.11	%
Total Deposits		3,902,014		9,448	0.97	%		3,753,505		10,884	1.16	%
Federal Home Loan Bank Advances / Other Borrowings		-		-	0.00	%		1		-	4.59	%
Total Interest Bearing Deposits and Borrowings		2,111,848		9,448	1.79	%		2,058,107		10,884	2.12	%
Total Deposits and Borrowings	$	3,902,014	$	9,448	0.97	%	$	3,753,506	$	10,884	1.16	%
Net Interest Income			$	42,167					$	36,779
Net Interest Rate Spread					3.77	%					3.41	%
Net Interest Margin					3.92	%					3.58	%

American Business Bank
Figures in $000
QUARTERLY AVERAGE BALANCE SHEETS AND YIELD ANALYSIS (unaudited)
	For the six months ended:
	June 2026						June 2025
	Average		Interest		Average		Average		Interest		Average
	Balance		Inc/Exp		Yield/Rate		Balance		Inc/Exp		Yield/Rate
Interest Earning Assets:
Interest Earning Deposits in Other Financial Institutions	$	147,340	$	2,706	3.70	%	$	108,959	$	2,411	4.46	%
Investment Securities:
US Agencies		62,413		1,391	4.46	%		67,234		1,692	5.03	%
Mortgage Backed Securities		557,230		5,469	1.96	%		624,600		5,987	1.92	%
State and Municipals		436,656		4,962	2.27	%		459,426		5,067	2.21	%
Corporate Bonds		10,826		230	4.26	%		16,126		363	4.50	%
Securities Available-for-Sale and Held-to-Maturity		1,067,125		12,052	2.26	%		1,167,386		13,109	2.25	%
Federal Home Loan Bank Stock		15,000		881	11.75	%		15,000		667	8.89	%
Total Investment Securities		1,082,125		12,933	2.39	%		1,182,386		13,776	2.33	%
Loans Receivable:
Commercial Real Estate		2,238,445		60,189	5.42	%		2,085,407		53,947	5.22	%
Commercial and Industrial		656,253		21,538	6.62	%		503,985		16,729	6.69	%
Residential Real Estate		173,590		5,113	5.94	%		203,363		6,301	6.25	%
Installment and Other		10,712		158	2.97	%		9,097		126	2.78	%
Total Loans Receivable		3,079,000		86,998	5.70	%		2,801,852		77,103	5.55	%
Total Interest Earning Assets	$	4,308,465	$	102,637	4.74	%	$	4,093,197	$	93,290	4.53	%
Liabilities:
Non-Interest Bearing Demand Deposits		1,785,178		-	0.00	%		1,678,089		-	0.00	%
Interest Bearing Transaction Accounts		483,536		1,908	0.80	%		412,195		1,748	0.86	%
Money Market and Savings Deposits		1,464,615		14,814	2.04	%		1,355,706		15,544	2.31	%
Certificates of Deposit		170,698		2,054	2.43	%		282,435		4,456	3.18	%
Total Deposits		3,904,027		18,776	0.97	%		3,728,425		21,748	1.18	%
Federal Home Loan Bank Advances / Other Borrowings		30		1	3.76	%		67		1	4.50	%
Total Interest Bearing Deposits and Borrowings		2,118,879		18,777	1.79	%		2,050,403		21,749	2.14	%
Total Deposits and Borrowings	$	3,904,057	$	18,777	0.97	%	$	3,728,492	$	21,749	1.18	%
Net Interest Income			$	83,860					$	71,541
Net Interest Rate Spread					3.77	%					3.35	%
Net Interest Margin					3.93	%					3.52	%

American Business Bank
Figures in $000
SUPPLEMENTAL DATA (unaudited)
	June			March			December			June
	2026			2026			2025			2025
Performance Ratios:
Quarterly:
Return on Average Assets (ROAA)		1.48	%		1.45	%		1.33	%		1.26	%
Return on Average Equity (ROAE)		15.11	%		15.03	%		14.68	%		14.34	%
Efficiency Ratio		47.42	%		46.62	%		43.69	%		50.01	%
Year-to-Date
Return on Average Assets (ROAA)		1.47	%		1.45	%		1.27	%		1.21	%
Return on Average Equity (ROAE)		15.07	%		15.03	%		14.34	%		13.76	%
Efficiency Ratio		47.02	%		46.62	%		47.71	%		50.73	%
Capital Adequacy:
Total Risk Based Capital Ratio		13.24	%		13.03	%		13.00	%		12.80	%
Common Equity Tier 1 Capital Ratio		12.35	%		12.14	%		12.11	%		11.92	%
Tier 1 Risk Based Capital Ratio		12.35	%		12.14	%		12.11	%		11.92	%
Tier 1 Leverage Ratio		11.01	%		10.76	%		10.29	%		10.45	%
Tangible Common Equity / Tangible Assets		9.88	%		9.64	%		9.33	%		8.66	%
Asset Quality Overview
Non-Performing Loans	$	13,624		$	13,681		$	11,953		$	11,553
Loans 90+ Days Past Due and Still Accruing		-			-			-			-
Total Non-Performing Loans		13,624			13,681			11,953			11,553
Loans Modified with Financial Difficulty	$	4,825		$	4,924		$	5,028		$	6,434
Other Real Estate Owned		-			-			-			-
ACL / Loans Receivable		1.11	%		1.11	%		1.10	%		1.10	%
Non-Performing Loans / Total Loans Receivable		0.44	%		0.44	%		0.39	%		0.40	%
Non-Performing Assets / Total Assets		0.31	%		0.31	%		0.27	%		0.27	%
Net Charge-Offs (Recoveries) quarterly	$	54		$	(1	)	$	5		$	-
Net Charge-Offs (Recoveries) year-to-date	$	54		$	(1	)	$	5		$	-
Net Charge-Offs (Recoveries) year-to-date / Average Loans Receivable		0.00	%		(0.00	%)		0.00	%		0.00	%