AMBZ American Business Bank (QX)

AMERICAN BUSINESS BANK (Bank) (OTCBB: AMBZ) today reported net income of $10,884,000 for the year ended 2012, a 10% increase over the $9,886,000 earned in 2011. Earnings per share (basic) for 2012 increased to $2.46 versus $2.24 in 2011. Shares outstanding at the end of the year totaled 4,432,331.

“It’s a tribute to our staff that they, once again, provided our shareholders a double digit return on equity in a single digit market,” said Robert Schack, Chairman.

“American Business Bank has had another great year by putting our customers first and by acting as a financial advisor to contribute to their success,” said Don Johnson, Chief Executive Officer.

“The Bank managed to hit all of its goals for the year 2012 and is looking forward to continuing to build on the Bank’s success in 2013,” said Leon Blankstein, President. “The quality of our people, the culture of the Bank and the execution of our business model continue to serve our shareholders well.”

Total assets increased 11% or $131 million to $1.305 billion at December 31, 2012 as compared to $1.174 billion at December 31, 2011. The loan portfolio (net) increased 20% or $85 million to $494 million at December 31, 2012 as compared to $409 million at December 31, 2011, while investments and federal funds sold increased $35 million. Deposits increased 4% or $38 million to $1.067 billion at December 31, 2012 as compared to $1.029 billion at the end of 2011.

During 2012, Net Interest Income increased $1,706,000 or 4.9% to $36,621,000 from $34,915,000 in 2011.

Non-Interest income during 2012 increased $715,000 or 16.6% to $5,024,000 from $4,309,000 in 2011.

Non-Interest expense for 2012 increased $512,000 or 2.2% to $23,788,000 from $23,276,000 during 2011.

Asset quality at quarter-end remains excellent, with $1,144,000 non-performing loans or 0.2% of total loans; and, no OREO. At the end of December 2012, the allowance for loan losses stood at $10,537,000 or 2.09% 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 Figures in $000, except per share amounts               CONSOLIDATED BALANCE SHEET (unaudited)     For the period ended:   December December Change 2012     2011 %

Assets:

Cash & Equivalents $ 31,852 $ 27,059 17.7 % Fed Funds Sold 5,000 0

N/A

 

Interest Bearing Balances 28 1,034 -97.3 %

Investment Securities:

US Agencies 408,803 385,826 6.0 % Mortgage Backed Securities 178,855 193,637 -7.6 % State & Municipals 145,460 123,349 17.9 %     Other         132         138   -4.3 % Total Investment Securities 733,250 702,950 4.3 %

Gross Loans:

Commercial Real Estate 267,406 225,965 18.3 % Commercial & Industrial 194,645 156,167 24.6 % Other Real Estate 36,903 30,238 22.0 %     Other         5,320         5,918   -10.1 % Total Gross Loans 504,274 418,288 20.6 %         Allowance for Loan & Lease Losses   (10,537 )       (8,934 ) 17.9 % Net Loans 493,737 409,354 20.6 % Premises & Equipment 720 1,087 -33.8 %   Other Assets         39,916         32,078   24.4 %     Total Assets       $ 1,304,503       $ 1,173,562   11.2 %  

Liabilities:

Demand Deposits $ 522,001 $ 459,317 13.6 % Money Market 464,348 483,481 -4.0 %   Time Deposits and Savings       80,251         85,760   -6.4 % Total Deposits 1,066,600 1,028,558 3.7 % FHLB Advances / Other Borrowings 117,600 48,000 145.0 %   Other Liabilities         16,568         10,512   57.6 %     Total Liabilities       $ 1,200,768       $ 1,087,070   10.5 %  

Shareholders' Equity:

Common Stock & Retained Earnings $ 90,605 $ 78,613 15.3 %   Accumulated Other Comprehensive Income   13,130         7,879   66.6 %     Total Shareholders' Equity     $ 103,735       $ 86,492   19.9 %     Total Liabilities & Shareholders' Equity $ 1,304,503       $ 1,173,562   11.2 %  

Capital Adequacy:

Tangible Common Equity / Tangible Assets 7.95 % 7.37 % -- Tier 1 Leverage Ratio 7.19 % 6.72 % -- Tier 1 Capital Ratio / Risk Weighted Assets 16.29 % 16.58 % -- Total Risk-Based Ratio 17.55 % 17.84 % --  

Per Share Information:

Common Shares Outstanding 4,432,331 4,427,862 -- Book Value Per Share $ 23.40 $ 19.53 19.8 % Tangible Book Value Per Share $ 23.40 $ 19.53 19.8 %   American Business Bank Figures in $000, except per share amounts           CONSOLIDATED INCOME STATEMENT (unaudited)     For the 12-month period:   December December Change 2012   2011 %

Interest Income:

Loans & Leases $ 22,544 $ 22,122 1.9 %   Investment Securities       16,824         16,339   3.0 % Total Interest Income 39,368 38,461 2.4 %    

Interest Expense:

Money Market, NOW Accounts & Savings 1,905 2,453 -22.3 % Time Deposits 542 778 -30.3 %   Repurchase Agreements / Other Borrowings   300         315   -4.8 % Total Interest Expense 2,747 3,546 -22.5 %     Net Interest Income 36,621 34,915 4.9 %   Provision for Loan Losses       (1,624 )       (1,977 ) -17.9 % Net Interest Income After Provision 34,997 32,938 6.3 %    

Non-Interest Income:

Deposit Fees 1,073 1,012 6.0 % Realized Securities Gains / (Losses) 3,702 2,663 39.0 %   Other             249         634   -60.7 % Total Non-Interest Income 5,024 4,309 16.6 %    

Non-Interest Expense:

Compensation & Benefits 14,270 13,169 8.4 % Occupancy & Equipment 1,568 1,612 -2.7 %   Other             7,950         8,495   -6.4 % Total Non-Interest Expense 23,788 23,276 2.2 %     Pre-Tax Income 16,233 13,971 16.2 %   Provision for Income Tax       (5,349 )       (4,085 ) 30.9 %     Net Income         $ 10,884       $ 9,886   10.1 %      

Per Share Information:

Average Shares Outstanding (for the year) 4,430,503 4,413,946 -- Earnings Per Share - Basic $ 2.46 $ 2.24 9.7 %   American Business Bank Figures in $000, except per share amounts                     December December Change 2012     2011 %  

Performance Ratios

Return on Average Assets (ROAA) 0.88 % 0.90 % -- Return on Average Equity (ROAE) 11.36 % 13.19 % --      

Asset Quality Overview

Non-Performing Loans $ 924 $ 2,239 -58.7 %   Loans 90+Days Past Due       220         0    

N/A

 

Total Non-Performing Loans $ 1,144 $ 2,239 -48.9 %   Restructured Loans (TDR's) $ 6,423 $ 134 4693.3 %   Other Real Estate Owned 0 0 --   ALLL / Gross Loans 2.09 % 2.14 % -- ALLL / Non-Performing Loans * 921.07 % 399.02 % -- Non-Performing Loans / Total Loans * 0.23 % 0.54 % -- Non-Performing Assets / Total Assets * 0.09 % 0.19 % -- Net Charge-Offs $ - $ - -- Net Charge-Offs / Average Gross Loans 0.00 % 0.00 % --   * Excludes Restructured Loans