AMERICAN BUSINESS BANK (Bank) (OTCBB:AMBZ) today reported net
income of $3,630,000 for the second quarter of 2013, a 36% increase
over the $2,663,000 earned in the second quarter of 2012. Earnings
per share (basic) in the second quarter of 2013 increased to $0.74
versus $0.55 in the second quarter of 2012 primarily due to a net
$0.39 per share increase in realized securities gains for the
quarter ending June 30, 2013.
“The increase in the Bank’s loan portfolio continued in the
second quarter as it had in the first quarter of 2013. Also,
deposits continued to grow in the second quarter and were up nearly
7% over the second quarter 2012, with demand deposits up over 12%,”
said Wes Schaefer, Vice Chairman and CFO. “The Bank was successful
in harvesting some of its gains in the securities from its bond
portfolio. The proceeds from the sales helped fund the loan
growth.”
“Our growth in the second quarter follows our continued success
in developing new relationship clients in the middle market
business community in Southern California,” said Leon Blankstein,
President and CEO. “Our demand deposits increased over $60 million
compared to the second quarter last year and our loans increased
over $130 million during the same period, due to the hard work of
the American Business Bank’s staff.”
Total assets increased 5% or $62 million to $1.298 billion at
June 30, 2013 as compared to $1.236 billion at June 30, 2012. The
loan portfolio (net) increased 30% or $130 million to $556 million
at June 30, 2013 as compared to $426 million at June 30, 2012.
Deposits increased 7% or $72 million to $1.142 billion at June 30,
2013 as compared to $1.070 billion at June 30, 2012.
During the second quarter of 2013, Net Interest Income increased
$866,000 or 9% to $9,865,000 from $8,999,000 during the second
quarter of 2012.
Non-Interest income during the second quarter of 2013 increased
$2,162,000 to $3,245,000 from $1,083,000 during the second quarter
of 2012.
Non-Interest expense during the second quarter of 2013 increased
$909,000 or 16% to $6,623,000 from $5,714,000 during the second
quarter of 2012, which included additions to our Relationship
Manager staff. Additionally, expenses were further affected by
$0.07 per share due to additions to our reserves which further
strengthened our capital.
Asset quality at quarter-end remains excellent, with $705,000
non-performing loans or 0.1% of total loans; and, no OREO. At the
end of June 2013, the allowance for loan losses stood at
$10,743,000 or 1.90% of loans.
AMERICAN BUSINESS BANK headquartered in downtown Los Angeles
with $1.298 billion in total assets 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) For
the period ended:
June June Change
2013 2012 %
Assets:
Cash & Equivalents $ 48,360 $ 47,328 2.2 % Fed Funds Sold 5,000
4,000 25.0 % Interest Bearing Balances 28 28 0.0 %
Investment
Securities:
US Agencies 355,326 397,294 -10.6 % Mortgage Backed Securities
131,219 188,366 -30.3 % State & Municipals 161,114 134,094 20.2
% Other 3,100
135 2196.3 % Total Investment
Securities 650,759 719,889 -9.6 %
Gross
Loans:
Commercial Real Estate 323,826 238,214 35.9 % Commercial &
Industrial 202,378 159,139 27.2 % Other Real Estate 35,411 32,449
9.1 % Other 4,787
5,434 -11.9 % Total Gross Loans
566,402 435,236 30.1 % Allowance for Loan & Lease Losses
(10,743 )
(9,542 ) 12.6 % Net Loans 555,659 425,694 30.5 % Premises
& Equipment 640 1,019 -37.2 % Other Assets
37,897
38,651 -2.0 %
Total Assets
$ 1,298,343
$ 1,236,609 5.0 %
Liabilities:
Demand Deposits $ 557,005 $ 494,870 12.6 % Money Market 503,118
488,136 3.1 % Time Deposits and Savings
82,115 87,259
-5.9 % Total Deposits 1,142,238 1,070,265 6.7 % FHLB
Advances / Other Borrowings 46,000 52,000 -11.5 % Other Liabilities
10,620
18,333 -42.1 %
Total Liabilities
$ 1,198,858
$ 1,140,598 5.1 %
Shareholders'
Equity:
Common Stock & Retained Earnings $ 100,340 $ 84,347 19.0 %
Accumulated Other Comprehensive Income
(855 ) 11,664
-107.3 %
Total Shareholders' Equity
$ 99,485
$ 96,011 3.6 %
Total Liabilities &
Shareholders' Equity $
1,298,343 $
1,236,609 5.0 %
Capital
Adequacy:
Tangible Common Equity / Tangible Assets 7.66 % 7.76 % -- Tier 1
Leverage Ratio 7.79 % 7.11 % -- Tier 1 Capital Ratio / Risk
Weighted Assets 15.62 % 17.16 % -- Total Risk-Based Ratio 16.87 %
18.42 % --
Per Share
Information:
Common Shares Outstanding 4,878,716 4,873,332 -- Book Value Per
Share $ 20.39 $ 19.70 3.5 % Tangible Book Value Per Share $ 20.39 $
19.70 3.5 %
American
Business Bank Figures in $000, except per share amounts
CONSOLIDATED INCOME STATEMENT (unaudited)
For the 3-month period: June June
Change 2013 2012
%
Interest
Income:
Loans & Leases $ 6,294 $ 5,474 15.0 % Investment Securities
4,033
4,251 -5.1 % Total Interest Income
10,327 9,725 6.2 %
Interest
Expense:
Money Market, NOW Accounts & Savings 329 510 -35.5 % Time
Deposits 90 141 -36.2 % Repurchase Agreements / Other Borrowings
43
75 -42.7 % Total Interest Expense 462 726
-36.4 % Net Interest Income 9,865 8,999 9.6 %
Provision for Loan Losses (850 )
(300 ) 183.3 % Net Interest
Income After Provision 9,015 8,699 3.6 %
Non-Interest
Income:
Deposit Fees 277 272 1.8 % Realized Securities Gains / (Losses)
2,960 766 286.4 % Other 8
45 -82.2 % Total
Non-Interest Income 3,245 1,083 199.6 %
Non-Interest
Expense:
Compensation & Benefits 3,956 3,452 14.6 % Occupancy &
Equipment 492 558 -11.8 % Other
2,175 1,704 27.6 %
Total Non-Interest Expense 6,623 5,714 15.9 % Pre-Tax
Income 5,637 4,068 38.6 % Provision for Income Tax
(2,007 )
(1,405 ) 42.8 %
Net Income
$ 3,630 $ 2,663
36.3 %
Per Share
Information:
Average Shares Outstanding (for the quarter) 4,878,032 4,872,438 --
Earnings Per Share - Basic $ 0.74 $ 0.55 36.2 %
American Business Bank
Figures in $000, except per share amounts
June
June Change 2013
2012 %
Performance
Ratios
Return on Average Assets (ROAA) 1.17 % 0.85 % -- Return on Average
Equity (ROAE) 14.36 % 11.17 % --
Asset Quality
Overview
Non-Performing Loans $ - $ 2,209 -100.0 % Loans 90+Days Past Due
705
220 NA Total
Non-Performing Loans $ 705 $ 2,429 -71.0 % Restructured
Loans (TDR's) $ 6,335 $ 213 2874.2 % Other Real Estate Owned
0 0 -- ALLL / Gross Loans 1.90 % 2.19 % -- ALLL /
Non-Performing Loans * 1523.83 % 392.84 % -- Non-Performing Loans /
Total Loans * 0.12 % 0.56 % -- Non-Performing Assets / Total Assets
* 0.05 % 0.20 % -- Net Charge-Offs $ 944 $ - -- Net Charge-Offs /
Average Gross Loans 0.17 % 0.00 % --
* Excludes Restructured Loans
American Business BankWes E. SchaeferVice Chairman and Chief
Financial Officer213-430-4000
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