AMBZ American Business Bank (QX)

AMERICAN BUSINESS BANK (Bank) (OTCBB: AMBZ) today reported net income of $2,225,000 for the second quarter 2010, a 32% increase over the $1,676,000 earned in the second quarter of 2009. Earnings per share (EPS) in the second quarter 2010 increased to $0.56 versus $0.42 in the second quarter 2009. Shares outstanding at the end of the quarter totaled 3,974,840.

“We are very pleased with the direction of the bank and our results here in the second quarter,” stated Robin Paterson, the Bank’s Executive Vice President and Chief Credit Officer. “As the economy continues to struggle, the bank remains focused on its mission to assist our clients in achieving their financial goals.”

“The second quarter was one with continued growth in all areas of the bank. We had excellent growth in our earnings over the already strong earnings that we had in 2009,” said Wes Schaefer, Vice Chairman of the Bank.

“Recognizing that the economic recovery is weak but progressing, we are pleased with these very positive results,” Robert Schack, Chairman, said. “Our bank is merely a reflection of the high quality of our client base, which includes some of the finest companies in our market place.”

Assets and Liabilities

Total assets increased 13% or $109 million to $948 million at June 30, 2010 as compared to $839 million at June 30, 2009. Loans increased 12% or $41 million to $370 million at June 30, 2010 as compared to $329 million at June 30, 2009 while investments and federal funds sold increased $63 million. Funding the asset growth was a 14% or $106 million increase in deposits.

Interest Income

During the second quarter, Net Interest Income rose by $1,111,000 or 16% over the same quarter in 2009.

Non-interest Income

Non-interest Income in the second quarter of 2010 increased 29% to $945,000 from $728,000 in the second quarter of 2009.

Credit Quality

Asset quality at quarter-end remains excellent, with zero non-performing loans, no OREO and no charge offs. At quarter-end, the allowance for loan losses stood at $6,064,000 or 1.61% of loans.

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 BALANCE SHEET ( Unaudited - 000's omitted)     June     2010         2009   Assets   Investment Securities $ 497,648 $ 388,973 Trading Securities 176 29,825 Federal Funds Sold 14,000 30,000 Loans and Leases (net) 370,610 329,767

Cash, Checks in process of

collection Due from Banks

32,682 33,168 Premises, Equipment and Other Assets   33,206   27,655   Total Assets $ 948,322 $ 839,388   Liabilities and Shareholders' Equity   Demand Deposits 328,239 283,070 Money Market and Now Deposits 425,126 375,811 Savings and Time Deposits   107,836   96,277   Total Deposits 861,201 755,158   FHLB Advances 15,335 30,334 Other Liabilities 8,051 3,136 Shareholders' Equity   63,735   50,760  

 

Total Liabilities and Shareholders' Equity

$ 948,322 $ 839,388               AMERICAN BUSINESS BANK INCOME STATEMENT ( Unaudited - 000's omitted)  

Three months ended June

 

    2010           2009   Interest Income Loans and Leases $ 5,296 $ 4,886 Investment Securities 3,702 3,272 Federal Funds Sold   4     11   Total Interest Income 9,002 8,169   Interest Expense Money Market and Now Accounts 803 875 Savings and Time Deposits 279 340 Repurchase Agreements/ Other Borrowings   128     273   Total Interest Expense 1,210 1,488   Net Interest Income 7,792 6,681 Provision for Loan Losses   (288 )   (295 ) Net Interest Income After Provision for Loan Losses 7,504 6,386   Other Income 945 728   Other Expense   5,471     5,082     Operating Income 2,978 2,032   Income Taxes   (753 )   (356 )   Net Earnings $ 2,225   $ 1,676     Selected Ratios: Earnings per Share $ 0.56 $ 0.42 Tier 1 Capital Ratio 6.85 % 6.70 % Net Interest Margin 3.64 % 3.58 % Return on Beginning Equity 15.00 % 12.43 % Return on Average Assets 0.89 % 0.76 % Efficiency Ratio 62.3 % 74.2 %