AMBZ American Business Bank (QX)

AMERICAN BUSINESS BANK (Bank) (OTCBB: AMBZ) today reported net income of $8,701,000 for the year ended December 31, 2010, a 20% increase over the $7,225,000 earned in 2009. Earnings per share (EPS) for 2010 increased to $2.19 versus $1.82 in 2009. Shares outstanding at the end of the year totaled 3,979,156.

“The Bank had an excellent year in terms of growth and profitability. Not only were we able to post outstanding earnings, but we were also able to add to the Bank’s reserves,” said Wes Schaefer, Vice Chairman of the Bank.

“As we have said throughout this year, the Bank has been and continues to be built one customer at a time,” said Don Johnson, President and CEO of the Bank. “We have stayed the course and worked through a very difficult economy, not stepping out by pursuing the latest fad or taking risks beyond those that are part of our core business: banking middle market companies.”

Robert Schack, Chairman, added, “2010 was a tumultuous year, with the passage of the largest banking bill since the Depression, the closure of a significant number of banks and many headwinds for the economy. Despite this, our bank was able to post record earnings and add new middle market clients to our customer base, increasing assets nearly twelve percent from the previous year.”

Assets and Liabilities

Total assets increased over 11% or $107 million to $1,007 million at December 31, 2010 as compared to $900 million at December 31, 2009. Loans increased 11% or by $41 million from $360 million to $401 million, while investments increased $70 million. Funding the asset growth was a 12% or $93 million increase in core deposits.

Interest Income

During 2010, Net Interest Income increased $3,601,000 or 13% over the previous year.

Non-interest Income

Non-interest Income for the year rose 15% to $3,462,000 in 2010 from $2,989,000 in 2009.

Credit Quality

Asset quality at year-end remains excellent, with nominal past dues and no OREO loans. At year-end, the allowance for loan losses stood at $7,050,000 or 1.73% 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)

 

December

 

2010

 

2009

Assets

    Investment Securities $ 562,022 $ 491,483 Federal Funds Sold - - Loans and Leases (net) 401,554 360,028

Cash, Checks in process of collection, Due From Banks

9,750 13,599 Premises, Equipment and Other Assets   34,247   35,795  

Total Assets

$

1,007,573

$

900,905

 

Liabilities and Shareholders’ Equity

Demand Deposits 346,992 288,341 Money Market and Now Deposits 446,557 404,909 Savings and Time Deposits   85,359   91,935

Total Deposits

878,908 785,185   Federal Funds Purchased -0- 5,000 FHLB Advances/FRB Borrowings 56,400 47,335 Other Liabilities 6,216 8,178 Shareholders’ Equity   66,049   55,207  

Total Liabilities and Shareholders’ Equity

$

1,007,573

$

900,905

   

AMERICAN BUSINESS BANK

INCOME STATEMENT

(Unaudited-000’s omitted)

 

 

 

Twelve months ended December

2010

 

2009

 

Interest Income

Loans and Leases $ 21,319 $ 19,788 Investment Securities 14,559 13,646 Fed Funds Sold   21   38   Total Interest Income 35,899 33,472  

Interest Expense

Money Market and NOW Accounts

3,085 3,387 Savings and Time Deposits 1,004 1,360

Repurchase Agreements/Other Borrowings

  490   1,006   Total Interest Expense 4,579 5,753   Net Interest Income 31,320 27,719 Provision for Loan Losses   (1,839 )   (1,268 )

Net Interest Income after Provision for Loan Losses

29,481 26,451  

Other Income

3,462 2,989  

Other Expense

  21,964   20,750  

Operating Income

10,979 8,690  

Income Taxes

  (2,278 )   (1,465 )  

Net Earnings

$

8,701

$

7,225

 

Selected Preliminary Ratios:

Earnings per share-basic $ 2.19 $ 1.82 Tier 1 Capital Ratio 6.93 % 6.84 %

Net Interest Margin (Prior to tax effects)

3.22 % 3.59 % Return on Beginning Equity 14.25 % 13.87 % Return on Average Assets 0.82 % 0.87 % Efficiency Ratio 59.0 % 70.8 %