LOS ANGELES--(BUSINESS WIRE)--AMERICAN BUSINESS BANK (Bank) (OTCBB: AMBZ) today reported net income of $12,120,000 for the year ended 2015. Earnings per share (basic) for 2015 were $2.02 versus $1.93 in 2014. The Bank’s “core” earnings per share were $1.85 for 2015 versus $1.79 in 2014.
“These solid results are further proof of the fundamental strength of the Bank’s business model—great clients, a great market and great people,” said Robert Schack, Chairman.
Leon Blankstein, President and CEO, added, “This was a year of transition for the Bank. We converted our core processing into an even more robust technology, while fine tuning compliance systems. Yet, we were still able to post strong numbers, including the growth in deposits, loans and earnings.”
“Deposit growth, with the right mix of clients, has always been the driving force behind the success of the Bank. This last year we had an outstanding year in acquiring new clients, and also benefited from the growth in deposits from our existing base. Once again, we are pleased with the hard work and dedication of our Relationship Managers and staff, who make this happen,” said Wes Schaefer, Vice Chairman and CFO.
Total assets increased 9%, or $136 million to $1.671 billion, at December 31, 2015, as compared to $1.535 billion at December 31, 2014. The loan portfolio (net) increased 7%, or $47 million, to $693 million at December 31, 2015, as compared to $646 million at December 31, 2014. Deposits increased 12%, or $160 million, to $1.524 billion at December 31, 2015, as compared to $1.364 billion at December of 2014. The borrowings from the Federal Home Loan Bank decreased from $41 million at the end of 2014 to $5 million in 2015.
During 2015, Net Interest Income increased $3,103,000, or 7.6%, to $43,995,000 from $40,892,000 in 2014.
Non-Interest income during 2015 increased $63,000, or 2%, to $3,417,000 from $3,354,000 in 2014. This increase was centered mainly in the reduction of other income combined with increases in deposit fees and investment gains.
Non-Interest expense during 2015 increased $4,293,000, or 16%, to $31,083,000 from $26,790,000 in 2014. Increases were driven by extra cost incurred in professional fees due to a core system conversion, regulatory fees and an increase in compensation and benefits.
Asset quality at year-end remains excellent, with one past due loan of $818,000 and no OREO. At the end of December 2015, the allowance for loan losses stood at $12,758,000, or 1.81% of loans. During the twelve months ended December 31st of 2015, the Bank has a net recovery of previously charged-off loans, totaling $179,000.
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 |
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Figures in $000, except per share amounts | |||||||||||||||||||
CONSOLIDATED BALANCE SHEET (unaudited) | |||||||||||||||||||
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As of: | |||||||||||||||||||
December | December | Change | |||||||||||||||||
2015 | 2014 | % | |||||||||||||||||
Assets: |
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Cash & Equivalents | $ | 29,798 | $ | 25,145 | 18.5 | % | |||||||||||||
Fed Funds Sold | 10,000 | 19,000 | -47.4 | % | |||||||||||||||
Interest Bearing Balances | 30 | 278 | -89.2 | % | |||||||||||||||
Investment Securities: |
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US Agencies | 553,605 | 502,443 | 10.2 | % | |||||||||||||||
Mortgage Backed Securities | 109,811 | 108,471 | 1.2 | % | |||||||||||||||
State & Municipals | 210,504 | 176,682 | 19.1 | % | |||||||||||||||
Other | 4,955 | 3,048 | 62.6 | % | |||||||||||||||
Total Investment Securities | 878,875 | 790,644 | 11.2 | % | |||||||||||||||
Gross Loans: |
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Commercial Real Estate | 446,678 | 409,240 | 9.1 | % | |||||||||||||||
Commercial & Industrial | 184,071 | 196,153 | -6.2 | % | |||||||||||||||
Other Real Estate | 70,052 | 47,799 | 46.6 | % | |||||||||||||||
Other | 4,832 | 5,211 | -7.3 | % | |||||||||||||||
Total Gross Loans | 705,633 | 658,403 | 7.2 | % | |||||||||||||||
Allowance for Loan & Lease Losses | (12,758 | ) | (12,543 | ) | 1.7 | % | |||||||||||||
Net Loans | 692,875 | 645,860 | 7.3 | % | |||||||||||||||
Premises & Equipment | 1,512 | 1,420 | 6.5 | % | |||||||||||||||
Other Assets | 58,167 | 52,522 | 10.7 | % | |||||||||||||||
Total Assets | $ | 1,671,257 | $ | 1,534,869 | 8.9 | % | |||||||||||||
Liabilities: |
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Demand Deposits | $ | 793,345 | $ | 695,461 | 14.1 | % | |||||||||||||
Money Market | 668,850 | 589,796 | 13.4 | % | |||||||||||||||
Time Deposits and Savings | 61,941 | 79,187 | -21.8 | % | |||||||||||||||
Total Deposits | 1,524,136 | 1,364,444 | 11.7 | % | |||||||||||||||
FHLB Advances / Other Borrowings | 5,000 | 41,000 | -87.8 | % | |||||||||||||||
Other Liabilities | 10,738 | 10,028 | 7.1 | % | |||||||||||||||
Total Liabilities | $ | 1,539,874 | $ | 1,415,472 | 8.8 | % | |||||||||||||
Shareholders' Equity: |
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Common Stock & Retained Earnings | $ | 132,913 | $ | 119,794 | 11.0 | % | |||||||||||||
Accumulated Other Comprehensive Income / (Loss) | (1,530 | ) | (397 | ) | 285.4 | % | |||||||||||||
Total Shareholders' Equity | $ | 131,383 | $ | 119,397 | 10.0 | % | |||||||||||||
Total Liabilities & Shareholders' Equity | $ | 1,671,257 | $ | 1,534,869 | 8.9 | % | |||||||||||||
Capital Adequacy: |
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Tangible Common Equity / Tangible Assets | 7.86 | % | 7.78 | % | -- | ||||||||||||||
Tier 1 Leverage Ratio | 7.76 | % | 7.96 | % | -- | ||||||||||||||
Tier 1 Capital Ratio / Risk Weighted Assets | 16.83 | % | 15.54 | % | -- | ||||||||||||||
Total Risk-Based Ratio | 18.09 | % | 16.76 | % | -- | ||||||||||||||
Per Share Information: |
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Common Shares Outstanding | 6,012,794 | 5,947,935 | -- | ||||||||||||||||
Book Value Per Share | $ | 21.85 | $ | 20.07 | 8.9 | % | |||||||||||||
Tangible Book Value Per Share | $ | 21.85 | $ | 20.07 | 8.9 | % | |||||||||||||
American Business Bank | |||||||||||||||||||
Figures in $000, except per share amounts | |||||||||||||||||||
CONSOLIDATED INCOME STATEMENT (unaudited) | |||||||||||||||||||
For the 12-month period ended: | |||||||||||||||||||
December | December | Change | |||||||||||||||||
2015 | 2014 | % | |||||||||||||||||
Interest Income: |
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Loans & Leases | $ | 29,064 | $ | 27,682 | 5.0 | % | |||||||||||||
Investment Securities | 16,282 | 14,742 | 10.4 | % | |||||||||||||||
Total Interest Income | 45,346 | 42,424 | 6.9 | % | |||||||||||||||
Interest Expense: |
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Money Market, NOW Accounts & Savings | 1,041 | 1,183 | -12.0 | % | |||||||||||||||
Time Deposits | 246 | 282 | -12.8 | % | |||||||||||||||
Repurchase Agreements / Other Borrowings | 64 | 67 | -4.5 | % | |||||||||||||||
Total Interest Expense | 1,351 | 1,532 | -11.8 | % | |||||||||||||||
Net Interest Income |
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43,995 | 40,892 | 7.6 | % | ||||||||||||||
Provision for Loan Losses | (150 | ) | (898 | ) | -83.3 | % | |||||||||||||
Net Interest Income After Provision for Loan Losses | 43,845 | 39,994 | 9.6 | % | |||||||||||||||
Non-Interest Income: |
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Deposit Fees | 1,420 | 1,378 | 3.0 | % | |||||||||||||||
Realized Securities Gains | 1,410 | 1,162 | 21.3 | % | |||||||||||||||
Other | 587 | 814 | -27.9 | % | |||||||||||||||
Total Non-Interest Income | 3,417 | 3,354 | 1.9 | % | |||||||||||||||
Non-Interest Expense: |
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Compensation & Benefits | 17,698 | 15,581 | 13.6 | % | |||||||||||||||
Occupancy & Equipment | 2,377 | 2,163 | 9.9 | % | |||||||||||||||
Other | 11,008 | 9,046 | 21.7 | % | |||||||||||||||
Total Non-Interest Expense | 31,083 | 26,790 | 16.0 | % | |||||||||||||||
Pre-Tax Income | 16,179 | 16,558 | -2.3 | % | |||||||||||||||
Provision for Income Tax | (4,059 | ) | (5,098 | ) | -20.4 | % | |||||||||||||
Net Income | $ | 12,120 | $ | 11,460 | 5.8 | % | |||||||||||||
Less: After-Tax Realized Securities Gains | $ | 1,056 | $ | 804 | |||||||||||||||
Core Net Income | $ | 11,064 |
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$ | 10,656 | 3.8 | % | ||||||||||||
Per Share Information: |
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Average Shares Outstanding (for the year) | 5,987,710 | 5,941,876 | -- | ||||||||||||||||
Earnings Per Share - Basic | $ | 2.02 | $ | 1.93 | 4.9 | % | |||||||||||||
Earnings Per Share " CORE" - Basic | $ | 1.85 | $ | 1.79 | 3.0 | % | |||||||||||||
American Business Bank | |||||||||||||||||||
Figures in $000, except per share amounts | |||||||||||||||||||
December | December | Change | |||||||||||||||||
2015 | 2014 | % | |||||||||||||||||
Performance Ratios |
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Return on Average Assets (ROAA) | 0.77 | % | 0.80 | % | -- | ||||||||||||||
Return on Average Equity (ROAE) | 9.63 | % | 10.49 | % | -- | ||||||||||||||
Return on Average Assets " CORE" (ROAA) | 0.70 | % | 0.75 | % | -- | ||||||||||||||
Return on Average Equity " CORE" (ROAE) | 8.79 | % | 9.75 | % | -- | ||||||||||||||
Asset Quality Overview |
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Non-Performing Loans | $ | - | $ | - | NA | ||||||||||||||
Loans 90+Days Past Due | 818 | 4 | NA | ||||||||||||||||
Total Non-Performing Loans | $ | 818 | $ | 4 | NA | ||||||||||||||
Restructured Loans (TDR's) | $ | 922 | $ | 715 | 29.0 | % | |||||||||||||
Other Real Estate Owned | 0 | 0 | -- | ||||||||||||||||
ALLL / Gross Loans | 1.81 | % | 1.91 | % | -- | ||||||||||||||
Non-Performing Loans / Total Loans * | 0.12 | % | 0.00 | % | -- | ||||||||||||||
Non-Performing Assets / Total Assets * | 0.05 | % | 0.00 | % | -- | ||||||||||||||
Net Charge-Offs | $ | (179 | ) | $ | (493 | ) | -- | ||||||||||||
Net Charge-Offs / Average Gross Loans | -0.03 | % | -0.08 | % | -- | ||||||||||||||
* | Excludes Restructured Loans |