AMERICAN BUSINESS BANK (Bank) (OTCBB: AMBZ) today reported net
income of $3,091,000 for the third quarter of 2013. Earnings per
share (basic) in the third quarter of 2013 were $0.63 versus $0.68
in the third quarter of 2012.
“In the third quarter of last year, the Bank took advantage of
some of the gains in the bond portfolio, adding to its earnings and
thus increasing the Bank’s capital. These strategic gains were
limited in the third quarter of this year due to the movement in
interest rates. As a result, the Bank’s securities gains were
smaller for the three months ended September 2013 compared to the
three months ended September 2012. Comparing the two quarters
operating results without the securities gains, the Bank’s earnings
grew 2% from 2012 to 2013 and the earnings per share rose from
$0.55 to $0.56,” said Wes Schaefer, Vice Chairman and CFO.
“We were very happy with our third quarter loan production,”
said Leon Blankstein, President and CEO. “The increase in deposits
is also outstanding, reflecting the Bank’s continued ability to
gain market share in Southern California.”
“The Bank has been true to its commitment to maintain a fortress
balance sheet,” said Robert Schack, Chairman. “We continue to build
our retained earnings and increase reserves at a time when many
banks are releasing reserves to enhance their profitability.”
Total assets increased 5% or $69 million to $1.349 billion at
September 30, 2013 as compared to $1.280 billion at September 30,
2012. The loan portfolio (net) increased 28% or $121 million to
$558 million at September 30, 2013 as compared to $437 million at
September 30, 2012. Deposits increased 13% or $143 million to
$1.203 billion at September 30, 2013 as compared to $1.060 billion
at September 30, 2012.
During the third quarter of 2013, Net Interest Income increased
$359,000 or 3% to $10,064,000 from $9,705,000 during the third
quarter of 2012.
Non-Interest income during the third quarter of 2013 decreased
$626,000 to $833,000 from $1,459,000 during the third quarter of
2012. This was centered in fewer investment gains as mentioned
above.
Non-Interest expense during the third quarter of 2013 increased
$422,000 or 7% to $6,211,000 from $5,789,000 during the third
quarter of 2012.
Asset quality at quarter-end remains excellent, with $979,000 of
non-performing loans, or 0.2% of total loans; and, no OREO.
Included in the non-performing loans was a $280,000 U.S. government
guaranteed SBA loan. At the end of September of 2013, the allowance
for loan losses stood at $10,924,000 or 1.92% of loans.
AMERICAN BUSINESS BANK headquartered in downtown Los Angeles
with $1.349 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: September September
Change 2013 2012 %
Assets: Cash & Equivalents $ 70,668 $
49,261 43.5 % Fed Funds Sold 1,000 1,000 0.0 % Interest Bearing
Balances 28 28 0.0 %
Investment
Securities:
US Agencies 359,695 432,016 -16.7 % Mortgage Backed Securities
155,317 184,639 -15.9 % State & Municipals 161,988 136,513 18.7
% Other 3,139
134 2242.5 % Total Investment
Securities 680,139 753,302 -9.7 %
Gross
Loans:
Commercial Real Estate 334,810 253,398 32.1 % Commercial &
Industrial 193,217 156,992 23.1 % Other Real Estate 36,713 31,682
15.9 % Other 4,745
5,410 -12.3 % Total Gross Loans
569,485 447,482 27.3 % Allowance for
Loan & Lease Losses (10,924 )
(9,846 ) 10.9 % Net Loans 558,561 437,636 27.6 % Premises
& Equipment 726 793 -8.4 % Other Assets
37,689 37,723
-0.1 %
Total Assets
$ 1,348,811
$ 1,279,743 5.4 %
Liabilities:
Demand Deposits $ 573,039 $ 532,999 7.5 % Money Market 549,875
446,893 23.0 % Time Deposits and Savings
80,469 80,244 0.3 % Total
Deposits 1,203,383 1,060,136 13.5 % FHLB Advances / Other
Borrowings 44,000 100,000 -56.0 % Other Liabilities
6,031
19,210 -68.6 %
Total Liabilities
$ 1,253,414
$ 1,179,346 6.3 %
Shareholders'
Equity:
Common Stock & Retained Earnings $ 103,878 $ 87,799 18.3 %
Accumulated Other Comprehensive Income (8,481
) 12,598 -167.3 %
Total Shareholders' Equity $
95,397 $ 100,397
-5.0 %
Total Liabilities & Shareholders'
Equity $ 1,348,811
$ 1,279,743 5.4 %
Capital
Adequacy:
Tangible Common Equity / Tangible Assets 7.07 % 7.85 % -- Tier 1
Leverage Ratio 7.79 % 7.25 % -- Tier 1 Capital Ratio / Risk
Weighted Assets 15.61 % 17.50 % -- Total Risk-Based Ratio 16.87 %
18.76 % --
Per Share
Information:
Common Shares Outstanding 4,898,911 4,875,564 -- Book Value Per
Share $ 19.47 $ 20.59 -5.4 % Tangible Book Value Per Share $ 19.47
$ 20.59 -5.4 %
American Business Bank Figures in $000, except per share
amounts
CONSOLIDATED INCOME STATEMENT (unaudited)
For the 3-month period:
September September Change 2013
2012 %
Interest
Income:
Loans & Leases $ 6,499 $ 5,856 11.0 % Investment
Securities 3,984
4,473 -10.9 % Total Interest Income 10,483 10,329 1.5
%
Interest
Expense:
Money Market, NOW Accounts & Savings 311 426 -27.0 % Time
Deposits 85 123 -30.9 % Repurchase Agreements / Other
Borrowings 23 75
-69.3 % Total Interest Expense 419 624 -32.9 % Net
Interest Income 10,064 9,705 3.7 % Provision for Loan Losses
(300 ) (300 ) 0.0 % Net
Interest Income After Provision 9,764 9,405 3.8 %
Non-Interest
Income:
Deposit Fees 312 259 20.5 % Realized Securities Gains / (Losses)
451 937 -51.9 % Other
70 263 -73.4 % Total
Non-Interest Income 833 1,459 -42.9 %
Non-Interest
Expense:
Compensation & Benefits 3,860 3,583 7.7 % Occupancy &
Equipment 491 532 -7.7 % Other
1,860 1,674
11.1 % Total Non-Interest Expense 6,211 5,789 7.3 %
Pre-Tax Income 4,386 5,075 -13.6 % Provision for Income Tax
(1,295 ) (1,742 )
-25.7 %
Net Income
$ 3,091 $ 3,333 -7.3 %
Per Share
Information:
Average Shares Outstanding (for the quarter) 4,895,700 4,875,564 --
Earnings Per Share - Basic $ 0.63 $ 0.68 -7.6 %
American Business Bank
Figures in $000, except per share amounts
September September Change 2013
2012 %
Performance
Ratios
Return on Average Assets (ROAA) 1.09 % 0.92 % -- Return on Average
Equity (ROAE) 13.93 % 12.00 % --
Asset Quality
Overview
Non-Performing Loans $ - $ - NA Loans 90+Days Past Due
979 220
345.0 % Total Non-Performing Loans $ 979 $ 220 345.0 %
Restructured Loans (TDR's) $ 1,911 $ 4,928 -61.2 %
Other Real Estate Owned 0 0 -- ALLL / Gross Loans 1.92 %
2.20 % -- ALLL / Non-Performing Loans * 1115.83 % 4475.45 % --
Non-Performing Loans / Total Loans * 0.17 % 0.05 % --
Non-Performing Assets / Total Assets * 0.07 % 0.02 % -- Net
Charge-Offs $
1,063
$ -
--
Net Charge-Offs / Average Gross Loans
0.19
% 0.00 %
--
* Excludes Restructured Loans
AMERICAN BUSINESS BANKWes E. SchaeferVice Chairman and Chief
Financial Officer(213) 430-4000
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