AMERICAN BUSINESS BANK (OTCQX: AMBZ) today reported record net income for the full year 2019 of $22.1 million or $2.73 per fully diluted share compared to $16.4 million or $2.09 per fully diluted share for the full year 2018, an increase of 35%. The increase was due to significant loan and core deposit growth in 2018 and 2019 resulting in increased net interest income.
“The Bank’s strong growth in 2019 and the transformational increases of 2018 resulted in the highest net income in the Bank’s history. Leveraging new back office technology in 2020 and moving into our new headquarters this last year will facilitate future efficient growth. The Bank is well positioned to keep its eye on the long game and grow with our customers,” said Leon Blankstein, AMBZ’s President, CEO and Director.
“Loan growth in the fourth quarter of 2019 was centered in relationship driven C&I and commercial real estate loans, a result of our discipline and commitment to our proven business model. We always stick to the fundamentals in all of our actions and put the needs of our customers first. Our reward is an extremely loyal and growing customer community, a stable core deposit base, and a group of talented bankers who, by their intentions and their actions, provide the Bank with a competitive advantage,” continued Mr. Blankstein.
For the quarter ended December 31, 2019, net income was $6.0 million or $0.74 per fully diluted share, compared with net income of $6.1 million or $0.77 per fully diluted share for the fourth quarter of 2018. Net interest income increased $1.4 million or 7% due to the strong loan growth funded by core deposit growth. However, non-interest expense for the fourth quarter of 2018 included a $1.6 million deferred compensation plan (DCP) benefit related to the AMBZ stock fund compared to none in the fourth quarter of 2019. The change in 2019 to the Bank’s DCP created capital and reduced income volatility. Beginning June 1, 2019, the Bank is no longer required to mark-to-market its DCP obligation related to the AMBZ stock fund. Excluding this benefit in 2018, net income increased $1.1 million, or 22% from fourth quarter of 2018 to 2019.
Net income for the fourth quarter of 2019 was $6.0 million or $0.74 per fully diluted share, compared with $5.4 million or $0.67 per fully diluted share for the third quarter of 2019. Net interest income for the fourth quarter was flat compared to the third quarter of 2019 as solid loan growth was offset by the effect of lower interest rates, while the cost of deposits remained at 0.24%. Further, the provision for loan losses was lower commensurate with the loan growth during the fourth quarter of 2019 to maintain the allowance for loan losses at 1.4% of loans.
Net Interest Margin
The Bank’s net interest margin for 2019 was 3.58%, compared to 3.41% in the previous year, an increase of 0.17%. This was primarily due to average loans being a higher percentage of average earnings assets in 2019 than in 2018 and an expansion in average loan yields of 0.19%. The loan to deposit ratio increased to 69% at December 31, 2019 from 63% at December 31, 2018. The net interest margin benefited from non-interest bearing deposits growing more than interest bearing deposits.
On a quarterly basis, the Bank’s net interest margin for the fourth quarter of 2019 was 3.43%, compared to 3.53% for the fourth quarter of 2018, a decrease of 0.10%. This was due to a reduction in yields on loans and SBA securities primarily from the three prime rate cuts in 2019. Additionally, a new accounting standard adopted on January 1, 2019 requires a shorter amortization period for municipal securities purchased at a premium. This change accelerated premium amortization and reduced yields on the municipal portfolio in 2019. The cost of deposits increased 0.06% for the periods compared.
The Bank’s net interest margin for the fourth quarter of 2019 was 3.43%, compared to 3.66% in the third quarter of 2019, a decrease of 0.23%. This was due to a reduction in yields on loans and securities primarily from the three prime rate cuts in 2019. During the quarter, the yield on new loan production declined to 4.24% and the yield on SBA securities declined to 1.04% as rising prepayment speeds led to higher premium amortization on the securities. The cost of deposits remained unchanged at 0.24%.
Non-Interest Income
Non-interest income in 2019 was $5.7 million, an increase of $1.8 million, or 46% from $3.9 million in the prior year. The increase is attributable to a $488,000 increase in Deposits and International Fees due to growth in commercial business customers and a $360,000 reduction in realized losses on the sale of investment securities. Bank owned life insurance (BOLI) income increased $740,000, which is driven by the increase in the value of BOLI and COLI policies that are invested in mutual funds. Interchange income from credit cards, which is included in other non-interest income, increased by $292,000 and the gain on sale of SBA loans declined $495,000 as the Bank has started to portfolio certain SBA loans in 2019.
Non-interest income in the fourth quarter of 2019 was $1.6 million. This compares to $646,000 in the fourth quarter of 2018 and $1.3 million for the third quarter of 2019. The increase is mainly due to the positive change in the value of BOLI and COLI policies for the periods compared.
Non-Interest Expense
Non-interest expense for 2019 increased $5.3 million, or 12% compared to the prior year due to a $3.8 million increase in salaries and employee benefits expense, $1.1 million increase in professional services expense and a $685,000 increase in occupancy and equipment expense. The increase in salaries and employee benefits was attributable to a $2.6 million increase in DCP expense related to the AMBZ stock fund and other measurement funds, and a larger workforce. The increase in occupancy and equipment expense was primarily due to a full year of lease expense for the new Los Angeles headquarters in 2019. Despite the increase in non-interest expense, the efficiency ratio decreased to 60% for 2019 from 64% for 2018.
Non-interest expense increased $3.2 million or 34% for the quarter ended December 31, 2019 compared to the same quarter a year ago. The increase was predominantly due to a $3.0 million increase in salaries and employee benefits expense. The increase was attributable to a $2.0 million DCP benefit recorded in the fourth quarter of 2018 primarily related to the decline in the Bank’s stock price, compared to a $275,000 DCP expense related to the other measurement funds recorded in the fourth quarter of 2019. As of June 1, 2019, the Bank is no longer required to mark-to-market its DCP obligation related to the AMBZ stock fund. The remaining increase in non-interest expense was driven by a larger workforce. The efficiency ratio was 59% for the fourth quarter of 2019.
Compared to the third quarter of 2019, non-interest expense increased $76,000 primarily due to a $561,000 increase in salaries and employee benefits offset by a $520,000 decrease in professional services expense primarily from lower legal services expense. The efficiency ratio remained at 59% for the fourth quarter of 2019 compared to the prior quarter.
Full time equivalent employees at December 31, 2019 were 195 compared to 191 a year ago, and the same as September 30, 2019. The Bank now has 30 relationship managers in seven offices.
Balance Sheet
Total assets increased $244 million, or 11% from December 31, 2018 to $2.4 billion. Total loans increased $237 million to $1.5 billion, or 19% primarily in owner occupied commercial real estate and C&I. This resulted in an increase in the loan to deposit ratio to 69% from 63% during the year. In the fourth quarter of 2019, loans and deposits grew by $58 million and $66 million, respectively. At December 31, 2019, non-interest bearing deposits represented 50% of total deposits, the same as December 31, 2018.
Asset quality at December 31, 2019 remains excellent with non-performing assets to total assets of 0.09%, $1.9 million in non-performing loans, and no Other Real Estate Owned (OREO). The largest non-accrual loan is $1.5 million and is fully secured by real estate with no specific allowance. At the end of the year, the allowance for loan losses stood at $20.1 million, or 1.4% of total loans. During 2019, the Bank had no charge offs.
ABOUT AMERICAN BUSINESS BANK
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. American Business Bank has six Loan Production Offices in strategic locations including: North Orange County in Anaheim, Orange County in Irvine, South Bay in Torrance, San Fernando Valley in Woodland Hills, Riverside County in Corona and Inland Empire in Ontario.
FORWARD-LOOKING STATEMENTS
This communication contains certain forward-looking information about American Business Bank that is intended to be covered by the safe harbor for “forward-looking statements” provided by the Private Securities Litigation Reform Act of 1995. Such statements include future financial and operating results, expectations, intentions and other statements that are not historical facts. Such statements are based on information available at the time of this communication and are based on current beliefs and expectations of the Bank’s management and are subject to significant risks, uncertainties and contingencies, many of which are beyond our control. Actual results may differ materially from those set forth in the forward-looking statements due to a variety of factors, including various risk factors. We are under no obligation (and expressly disclaim any such obligation) to update or alter our forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
| American Business Bank | ||||||||||||||||||
| Figures in $000, except share and per share amounts | ||||||||||||||||||
| BALANCE SHEETS (unaudited) | ||||||||||||||||||
December |
| September |
| December | ||||||||||||||
2019 |
| 2019 |
| 2018 | ||||||||||||||
| Assets: | ||||||||||||||||||
| Cash and Due from Banks | $ | 31,673 |
| $ | 88,211 |
| $ | 26,673 |
| |||||||||
| Interest Earning Deposits in Other Financial Institutions |
| 45,202 |
|
| 26,077 |
|
| 76,599 |
| |||||||||
| Investment Securities: | ||||||||||||||||||
| US Agencies |
| 284,032 |
|
| 305,572 |
|
| 440,212 |
| |||||||||
| Mortgage Backed Securities |
| 292,126 |
|
| 226,338 |
|
| 128,851 |
| |||||||||
| State and Municipals |
| 78,520 |
|
| 74,824 |
|
| 77,460 |
| |||||||||
| US Treasuries |
| 10,009 |
|
| 9,992 |
|
| 9,859 |
| |||||||||
| Corporate Bonds |
| 19,805 |
|
| 19,861 |
|
| 1,971 |
| |||||||||
| Securities Available-for-Sale, at Fair Value |
| 684,492 |
|
| 636,587 |
|
| 658,353 |
| |||||||||
| State and Municipals Securities Held-to-Maturity, at Amortized Cost |
| 86,707 |
|
| 86,915 |
|
| 87,526 |
| |||||||||
| Federal Home Loan Bank Stock, at Cost |
| 10,356 |
|
| 10,356 |
|
| 10,356 |
| |||||||||
| Total Investment Securities |
| 781,555 |
|
| 733,858 |
|
| 756,235 |
| |||||||||
| Loans Receivable: | ||||||||||||||||||
| Commercial Real Estate |
| 982,070 |
|
| 954,424 |
|
| 827,388 |
| |||||||||
| Commercial and Industrial |
| 423,868 |
|
| 402,167 |
|
| 356,583 |
| |||||||||
| Residential Real Estate |
| 76,481 |
|
| 68,259 |
|
| 62,835 |
| |||||||||
| Installment and Other |
| 4,959 |
|
| 4,765 |
|
| 3,455 |
| |||||||||
| Total Loans Receivable |
| 1,487,378 |
|
| 1,429,615 |
|
| 1,250,261 |
| |||||||||
| Allowance for Loan Losses |
| (20,824 | ) |
| (20,014 | ) |
| (17,503 | ) | |||||||||
| Loans Receivable, Net |
| 1,466,554 |
|
| 1,409,601 |
|
| 1,232,758 |
| |||||||||
| Furniture, Equipment and Leasehold Improvements, Net |
| 9,023 |
|
| 8,700 |
|
| 1,834 |
| |||||||||
| Bank/Corporate Owned Life Insurance |
| 26,448 |
|
| 26,110 |
|
| 25,328 |
| |||||||||
| Other Assets |
| 41,456 |
|
| 39,087 |
|
| 38,016 |
| |||||||||
| Total Assets | $ | 2,401,911 |
| $ | 2,331,644 |
| $ | 2,157,443 |
| |||||||||
| Liabilities: | ||||||||||||||||||
| Non-Interest Bearing Demand Deposits | $ | 1,083,705 |
| $ | 1,084,152 |
| $ | 983,284 |
| |||||||||
| Interest Bearing Transaction Accounts |
| 215,730 |
|
| 221,196 |
|
| 211,794 |
| |||||||||
| Money Market and Savings Deposits |
| 827,713 |
|
| 751,415 |
|
| 728,237 |
| |||||||||
| Certificates of Deposit |
| 37,712 |
|
| 42,555 |
|
| 50,443 |
| |||||||||
| Total Deposits |
| 2,164,860 |
|
| 2,099,318 |
|
| 1,973,758 |
| |||||||||
| Federal Home Loan Bank Advances / Other Borrowings |
| - |
|
| - |
|
| - |
| |||||||||
| Other Liabilities |
| 30,386 |
|
| 31,258 |
|
| 18,618 |
| |||||||||
| Total Liabilities | $ | 2,195,246 |
| $ | 2,130,576 |
| $ | 1,992,376 |
| |||||||||
| Shareholders' Equity: | ||||||||||||||||||
| Common Stock | $ | 163,872 |
| $ | 163,464 |
| $ | 154,710 |
| |||||||||
| Retained Earnings |
| 46,784 |
|
| 40,795 |
|
| 27,454 |
| |||||||||
| Accumulated Other Comprehensive Income / (Loss) |
| (3,991 | ) |
| (3,191 | ) |
| (17,097 | ) | |||||||||
| Total Shareholders' Equity | $ | 206,665 |
| $ | 201,068 |
| $ | 165,067 |
| |||||||||
| Total Liabilities and Shareholders' Equity | $ | 2,401,911 |
| $ | 2,331,644 |
| $ | 2,157,443 |
| |||||||||
| Standby Letters of Credit | $ | 39,513 |
| $ | 39,722 |
| $ | 36,411 |
| |||||||||
| Per Share Information: | ||||||||||||||||||
| Common Shares Outstanding |
| 7,850,171 |
|
| 7,834,279 |
|
| 7,705,590 |
| |||||||||
| Book Value Per Share | $ | 26.33 |
| $ | 25.67 |
| $ | 21.42 |
| |||||||||
| Tangible Book Value Per Share | $ | 26.33 |
| $ | 25.67 |
| $ | 21.42 |
| |||||||||
| American Business Bank | |||||||||||||||||
| Figures in $000, except share and per share amounts | |||||||||||||||||
| INCOME STATEMENTS (unaudited) | |||||||||||||||||
For the three months ended: | |||||||||||||||||
December |
| September |
| December | |||||||||||||
2019 |
| 2019 |
| 2018 | |||||||||||||
| Interest Income: | |||||||||||||||||
| Interest and Fees on Loans | $ | 17,021 | $ | 16,890 |
| $ | 14,124 |
| |||||||||
| Interest on Investment Securities |
| 3,942 |
| 4,260 |
|
| 4,747 |
| |||||||||
| Interest on Interest Earning Deposits in Other Financial Institutions |
| 530 |
| 332 |
|
| 868 |
| |||||||||
| Total Interest Income |
| 21,493 |
| 21,482 |
|
| 19,739 |
| |||||||||
| Interest Expense: | |||||||||||||||||
| Interest on Interest Bearing Transaction Accounts |
| 154 |
| 152 |
|
| 110 |
| |||||||||
| Interest on Money Market and Savings Deposits |
| 1,114 |
| 1,041 |
|
| 725 |
| |||||||||
| Interest on Certificates of Deposits |
| 45 |
| 73 |
|
| 97 |
| |||||||||
| Interest on Federal Home Loan Bank Advances and Other Borrowings |
| - |
| 1 |
|
| 1 |
| |||||||||
| Total Interest Expense |
| 1,313 |
| 1,267 |
|
| 933 |
| |||||||||
| Net Interest Income |
| 20,180 |
| 20,215 |
|
| 18,806 |
| |||||||||
| Provision for Loan Losses |
| 801 |
| 1,460 |
|
| 1,543 |
| |||||||||
| Net Interest Income after Provision for Loan Losses |
| 19,379 |
| 18,755 |
|
| 17,263 |
| |||||||||
| Non-Interest Income: | |||||||||||||||||
| Deposit Fees |
| 562 |
| 553 |
|
| 505 |
| |||||||||
| International Fees |
| 319 |
| 328 |
|
| 281 |
| |||||||||
| Gain (Loss) on Sale of Investment Securities, Net |
| - |
| (122 | ) |
| (74 | ) | |||||||||
| Gain on Sale of SBA Loans, Net |
| 65 |
| 87 |
|
| 141 |
| |||||||||
| Bank/Corporate Owned Life Insurance Income |
| 338 |
| 135 |
|
| (323 | ) | |||||||||
| Other |
| 290 |
| 352 |
|
| 116 |
| |||||||||
| Total Non-Interest Income |
| 1,574 |
| 1,333 |
|
| 646 |
| |||||||||
| Non-Interest Expense: | |||||||||||||||||
| Salaries and Employee Benefits |
| 9,005 |
| 8,444 |
|
| 5,959 |
| |||||||||
| Occupancy and Equipment |
| 982 |
| 888 |
|
| 792 |
| |||||||||
| Professional Services |
| 1,426 |
| 1,946 |
|
| 1,269 |
| |||||||||
| Promotion Expenses |
| 425 |
| 361 |
|
| 402 |
| |||||||||
| Other |
| 946 |
| 1,069 |
|
| 1,130 |
| |||||||||
| Total Non-Interest Expense |
| 12,784 |
| 12,708 |
|
| 9,552 |
| |||||||||
| Earnings before income taxes |
| 8,169 |
| 7,380 |
|
| 8,357 |
| |||||||||
| Income Tax Expense |
| 2,179 |
| 1,963 |
|
| 2,262 |
| |||||||||
| NET INCOME | $ | 5,990 | $ | 5,417 |
| $ | 6,095 |
| |||||||||
| Add back: | |||||||||||||||||
| After-Tax Gain (Loss) on Sale of Investment Securities, Net | $ | - | $ | 90 |
| $ | 54 |
| |||||||||
| After-Tax DCP ABB Stock Expense (Benefit) | $ | - | $ | - |
| $ | (1,199 | ) | |||||||||
| Core Net Income | $ | 5,990 | $ | 5,507 |
| $ | 4,950 |
| |||||||||
| Per Share Information: | |||||||||||||||||
| Earnings Per Share - Basic | $ | 0.75 | $ | 0.68 |
| $ | 0.79 |
| |||||||||
| Earnings Per Share - Diluted | $ | 0.74 | $ | 0.67 |
| $ | 0.77 |
| |||||||||
| Core Earnings Per Share - Diluted | $ | 0.74 | $ | 0.68 |
| $ | 0.63 |
| |||||||||
| Weighted Average Shares - Basic |
| 8,019,772 |
| 7,999,146 |
|
| 7,700,091 |
| |||||||||
| Weighted Average Shares - Diluted |
| 8,117,068 |
| 8,100,992 |
|
| 7,881,465 |
| |||||||||
| American Business Bank | ||||||||||||||
| Figures in $000, except share and per share amounts | ||||||||||||||
| INCOME STATEMENTS (unaudited) | ||||||||||||||
For the twelve months ended: | ||||||||||||||
December |
| December | ||||||||||||
2019 |
| 2018 | ||||||||||||
| Interest Income: | ||||||||||||||
| Interest and Fees on Loans | $ | 64,835 |
| $ | 49,738 |
| ||||||||
| Interest on Investment Securities |
| 16,620 |
|
| 19,007 |
| ||||||||
| Interest on Interest Earning Deposits in Other Financial Institutions |
| 1,628 |
|
| 1,420 |
| ||||||||
| Total Interest Income |
| 83,083 |
|
| 70,165 |
| ||||||||
| Interest Expense: | ||||||||||||||
| Interest on Interest Bearing Transaction Accounts |
| 516 |
|
| 374 |
| ||||||||
| Interest on Money Market and Savings Deposits |
| 3,918 |
|
| 2,100 |
| ||||||||
| Interest on Certificates of Deposits |
| 339 |
|
| 331 |
| ||||||||
| Interest on Federal Home Loan Bank Advances and Other Borrowings |
| 15 |
|
| 329 |
| ||||||||
| Total Interest Expense |
| 4,788 |
|
| 3,134 |
| ||||||||
| Net Interest Income |
| 78,295 |
|
| 67,031 |
| ||||||||
| Provision for Loan Losses |
| 3,279 |
|
| 3,811 |
| ||||||||
| Net Interest Income after Provision for Loan Losses |
| 75,016 |
|
| 63,220 |
| ||||||||
| Non-Interest Income: | ||||||||||||||
| Deposit Fees |
| 2,160 |
|
| 1,899 |
| ||||||||
| International Fees |
| 1,159 |
|
| 932 |
| ||||||||
| Gain (Loss) on Sale of Investment Securities, Net |
| (267 | ) |
| (627 | ) | ||||||||
| Gain on Sale of SBA Loans, Net |
| 391 |
|
| 886 |
| ||||||||
| Bank/Corporate Owned Life Insurance Income |
| 1,120 |
|
| 380 |
| ||||||||
| Other |
| 1,156 |
|
| 453 |
| ||||||||
| Total Non-Interest Income |
| 5,719 |
|
| 3,923 |
| ||||||||
| Non-Interest Expense: | ||||||||||||||
| Salaries and Employee Benefits |
| 35,466 |
|
| 31,674 |
| ||||||||
| Occupancy and Equipment |
| 3,938 |
|
| 3,253 |
| ||||||||
| Professional Services |
| 5,766 |
|
| 4,658 |
| ||||||||
| Promotion Expenses |
| 1,371 |
|
| 1,336 |
| ||||||||
| Other |
| 4,270 |
|
| 4,583 |
| ||||||||
| Total Non-Interest Expense |
| 50,811 |
|
| 45,504 |
| ||||||||
| Earnings before income taxes |
| 29,924 |
|
| 21,639 |
| ||||||||
| Income Tax Expense |
| 7,847 |
|
| 5,246 |
| ||||||||
| NET INCOME | $ | 22,077 |
| $ | 16,393 |
| ||||||||
| Add back: | ||||||||||||||
| After-Tax Net Gains (Losses) on Sale of Investment Securities | $ | 197 |
| $ | 475 |
| ||||||||
| After-Tax DCP ABB Stock Expense (Benefit) | $ | 448 |
| $ | (890 | ) | ||||||||
| Core Net Income | $ | 22,722 |
| $ | 15,978 |
| ||||||||
| Per Share Information: | ||||||||||||||
| Earnings Per Share - Basic | $ | 2.77 |
| $ | 2.15 |
| ||||||||
| Earnings Per Share - Diluted | $ | 2.73 |
| $ | 2.09 |
| ||||||||
| Core Earnings Per Share - Diluted | $ | 2.81 |
| $ | 2.03 |
| ||||||||
| Weighted Average Shares - Basic |
| 7,966,417 |
|
| 7,642,390 |
| ||||||||
| Weighted Average Shares - Diluted |
| 8,088,164 |
|
| 7,860,712 |
| ||||||||
| American Business Bank | ||||||||||||||||||||
| Figures in $000 | ||||||||||||||||||||
| QUARTERLY AVERAGE BALANCE SHEETS AND YIELD ANALYSIS (unaudited) | ||||||||||||||||||||
| For the three months ended: | ||||||||||||||||||||
| December 2019 | September 2019 | |||||||||||||||||||
| Average | Interest | Average | Average | Interest | Average | |||||||||||||||
| Balance | Inc/Exp | Yield/Rate | Balance | Inc/Exp | Yield/Rate | |||||||||||||||
| Interest Earning Assets: | ||||||||||||||||||||
| Interest Earning Deposits in Other Financial Institutions | $ | 123,977 | $ | 530 | 1.73 | % | $ | 58,676 | $ | 332 | 2.30 | % | ||||||||
| Investment Securities: | ||||||||||||||||||||
| US Agencies |
| 297,971 |
| 774 | 1.04 | % |
| 351,204 |
| 1,406 | 1.60 | % | ||||||||
| Mortgage Backed Securities |
| 258,469 |
| 1,700 | 2.63 | % |
| 208,820 |
| 1,422 | 2.72 | % | ||||||||
| State and Municipals |
| 163,437 |
| 1,094 | 2.68 | % |
| 163,734 |
| 1,094 | 2.67 | % | ||||||||
| US Treasuries |
| 10,032 |
| 37 | 1.46 | % |
| 10,039 |
| 37 | 1.46 | % | ||||||||
| Corporate Bonds |
| 19,942 |
| 151 | 3.02 | % |
| 15,328 |
| 118 | 3.07 | % | ||||||||
| Securities Available-for-Sale and Held-to-Maturity |
| 749,851 |
| 3,756 | 2.00 | % |
| 749,125 |
| 4,077 | 2.18 | % | ||||||||
| Federal Home Loan Bank Stock |
| 10,356 |
| 186 | 7.18 | % |
| 10,356 |
| 183 | 7.05 | % | ||||||||
| Total Investment Securities |
| 760,207 |
| 3,942 | 2.07 | % |
| 759,481 |
| 4,260 | 2.24 | % | ||||||||
| Loans Receivable: | ||||||||||||||||||||
| Commercial Real Estate |
| 969,700 |
| 11,232 | 4.60 | % |
| 917,398 |
| 10,957 | 4.74 | % | ||||||||
| Commercial and Industrial |
| 399,926 |
| 4,839 | 4.80 | % |
| 385,315 |
| 4,996 | 5.14 | % | ||||||||
| Residential Real Estate |
| 72,137 |
| 894 | 4.92 | % |
| 66,512 |
| 891 | 5.32 | % | ||||||||
| Installment and Other |
| 5,413 |
| 56 | 4.11 | % |
| 5,159 |
| 46 | 3.58 | % | ||||||||
| Total Loans Receivable |
| 1,447,176 |
| 17,021 | 4.67 | % |
| 1,374,384 |
| 16,890 | 4.88 | % | ||||||||
| Total Interest Earning Assets | $ | 2,331,360 | $ | 21,493 | 3.61 | % | $ | 2,192,541 | $ | 21,482 | 3.83 | % | ||||||||
| Liabilities: | ||||||||||||||||||||
| Non-Interest Bearing Demand Deposits |
| 1,118,736 |
| - | 0.00 | % |
| 1,059,710 |
| - | 0.00 | % | ||||||||
| Interest Bearing Transaction Accounts |
| 216,134 |
| 154 | 0.28 | % |
| 208,403 |
| 152 | 0.29 | % | ||||||||
| Money Market and Savings Deposits |
| 823,561 |
| 1,114 | 0.54 | % |
| 746,947 |
| 1,041 | 0.55 | % | ||||||||
| Certificates of Deposit |
| 38,339 |
| 45 | 0.47 | % |
| 50,425 |
| 73 | 0.57 | % | ||||||||
| Total Deposits |
| 2,196,770 |
| 1,313 | 0.24 | % |
| 2,065,485 |
| 1,266 | 0.24 | % | ||||||||
| Federal Home Loan Bank Advances / Other Borrowings |
| - |
| - | 0.00 | % |
| 163 |
| 1 | 2.27 | % | ||||||||
| Total Interest Bearing Deposits and Borrowings |
| 1,078,034 |
| 1,313 | 0.48 | % |
| 1,005,938 |
| 1,267 | 0.50 | % | ||||||||
| Total Deposits and Borrowings | $ | 2,196,770 | $ | 1,313 | 0.24 | % | $ | 2,065,647 | $ | 1,267 | 0.24 | % | ||||||||
| Net Interest Income | $ | 20,180 | $ | 20,215 | ||||||||||||||||
| Net Interest Rate Spread | 3.37 | % | 3.59 | % | ||||||||||||||||
| Net Interest Margin | 3.43 | % | 3.66 | % | ||||||||||||||||
| American Business Bank | ||||||||||||||||||||
| Figures in $000 | ||||||||||||||||||||
| QUARTERLY AVERAGE BALANCE SHEETS AND YIELD ANALYSIS (unaudited) | ||||||||||||||||||||
| For the three months ended: | ||||||||||||||||||||
| December 2019 | December 2018 | |||||||||||||||||||
| Average | Interest | Average | Average | Interest | Average | |||||||||||||||
| Balance | Inc/Exp | Yield/Rate | Balance | Inc/Exp | Yield/Rate | |||||||||||||||
| Interest Earning Assets: | ||||||||||||||||||||
| Interest Earning Deposits in Other Financial Institutions | $ | 123,977 | $ | 530 | 1.73 | % | $ | 150,483 | $ | 868 | 2.34 | % | ||||||||
| Investment Securities: | ||||||||||||||||||||
| US Agencies |
| 297,971 |
| 774 | 1.04 | % |
| 459,879 |
| 1,886 | 1.64 | % | ||||||||
| Mortgage Backed Securities |
| 258,469 |
| 1,700 | 2.63 | % |
| 137,272 |
| 957 | 2.79 | % | ||||||||
| State and Municipals |
| 163,437 |
| 1,094 | 2.68 | % |
| 174,603 |
| 1,492 | 3.42 | % | ||||||||
| US Treasuries |
| 10,032 |
| 37 | 1.46 | % |
| 10,059 |
| 37 | 1.46 | % | ||||||||
| Corporate Bonds |
| 19,942 |
| 151 | 3.02 | % |
| 2,000 |
| 17 | 3.41 | % | ||||||||
| Securities Available-for-Sale and Held-to-Maturity |
| 749,851 |
| 3,756 | 2.00 | % |
| 783,813 |
| 4,389 | 2.24 | % | ||||||||
| Federal Home Loan Bank Stock |
| 10,356 |
| 186 | 7.18 | % |
| 10,356 |
| 358 | 13.83 | % | ||||||||
| Total Investment Securities |
| 760,207 |
| 3,942 | 2.07 | % |
| 794,169 |
| 4,747 | 2.39 | % | ||||||||
| Loans Receivable: | ||||||||||||||||||||
| Commercial Real Estate |
| 969,700 |
| 11,232 | 4.60 | % |
| 782,799 |
| 9,164 | 4.64 | % | ||||||||
| Commercial and Industrial |
| 399,926 |
| 4,839 | 4.80 | % |
| 317,882 |
| 4,031 | 5.03 | % | ||||||||
| Residential Real Estate |
| 72,137 |
| 894 | 4.92 | % |
| 62,307 |
| 819 | 5.21 | % | ||||||||
| Installment and Other |
| 5,413 |
| 56 | 4.11 | % |
| 4,245 |
| 110 | 10.32 | % | ||||||||
| Total Loans Receivable |
| 1,447,176 |
| 17,021 | 4.67 | % |
| 1,167,233 |
| 14,124 | 4.80 | % | ||||||||
| Total Interest Earning Assets | $ | 2,331,360 | $ | 21,493 | 3.61 | % | $ | 2,111,885 | $ | 19,739 | 3.66 | % | ||||||||
| Liabilities: | ||||||||||||||||||||
| Non-Interest Bearing Demand Deposits |
| 1,118,736 |
| - | 0.00 | % |
| 1,029,346 |
| - | 0.00 | % | ||||||||
| Interest Bearing Transaction Accounts |
| 216,134 |
| 154 | 0.28 | % |
| 197,465 |
| 110 | 0.22 | % | ||||||||
| Money Market and Savings Deposits |
| 823,561 |
| 1,114 | 0.54 | % |
| 712,486 |
| 725 | 0.40 | % | ||||||||
| Certificates of Deposit |
| 38,339 |
| 45 | 0.47 | % |
| 64,269 |
| 97 | 0.60 | % | ||||||||
| Total Deposits |
| 2,196,770 |
| 1,313 | 0.24 | % |
| 2,003,566 |
| 932 | 0.18 | % | ||||||||
| Federal Home Loan Bank Advances / Other Borrowings |
| - |
| - | 0.00 | % |
| 402 |
| 1 | 1.48 | % | ||||||||
| Total Interest Bearing Deposits and Borrowings |
| 1,078,034 |
| 1,313 | 0.48 | % |
| 974,622 |
| 933 | 0.38 | % | ||||||||
| Total Deposits and Borrowings | $ | 2,196,770 | $ | 1,313 | 0.24 | % | $ | 2,003,969 | $ | 933 | 0.18 | % | ||||||||
| Net Interest Income | $ | 20,180 | $ | 18,806 | ||||||||||||||||
| Net Interest Rate Spread | 3.37 | % | 3.48 | % | ||||||||||||||||
| Net Interest Margin | 3.43 | % | 3.53 | % | ||||||||||||||||
| American Business Bank | ||||||||||||||||||||
| Figures in $000 | ||||||||||||||||||||
| YEAR-TO-DATE AVERAGE BALANCE SHEETS AND YIELD ANALYSIS (unaudited) | ||||||||||||||||||||
| For the twelve months ended: | ||||||||||||||||||||
| December 2019 | December 2018 | |||||||||||||||||||
| Average | Interest | Average | Average | Interest | Average | |||||||||||||||
| Balance | Inc/Exp | Yield/Rate | Balance | Inc/Exp | Yield/Rate | |||||||||||||||
| Interest Earning Assets: | ||||||||||||||||||||
| Interest Earning Deposits with Other Financial Institutions | $ | 77,077 | $ | 1,628 | 2.14 | % | $ | 66,602 | $ | 1,420 | 2.16 | % | ||||||||
| Investment Securities: | ||||||||||||||||||||
| US Agencies |
| 370,925 |
| 5,386 | 1.45 | % |
| 515,083 |
| 8,740 | 1.70 | % | ||||||||
| Mortgage Backed Securities |
| 202,087 |
| 5,603 | 2.77 | % |
| 108,563 |
| 2,975 | 2.74 | % | ||||||||
| State and Municipals |
| 165,757 |
| 4,445 | 2.68 | % |
| 179,656 |
| 6,188 | 3.44 | % | ||||||||
| US Treasuries |
| 10,042 |
| 148 | 1.47 | % |
| 10,069 |
| 148 | 1.47 | % | ||||||||
| Corporate Bonds |
| 10,061 |
| 310 | 3.08 | % |
| 2,087 |
| 65 | 3.13 | % | ||||||||
| Securities Available-for-Sale and Held-to-Maturity |
| 758,872 |
| 15,892 | 2.09 | % |
| 815,458 |
| 18,116 | 2.22 | % | ||||||||
| Federal Home Loan Bank Stock |
| 10,356 |
| 728 | 7.03 | % |
| 10,231 |
| 891 | 8.71 | % | ||||||||
| Total Investment Securities |
| 769,228 |
| 16,620 | 2.16 | % |
| 825,689 |
| 19,007 | 2.30 | % | ||||||||
| Loans Receivable: | ||||||||||||||||||||
| Commercial Real Estate |
| 897,530 |
| 42,135 | 4.69 | % |
| 722,717 |
| 32,851 | 4.55 | % | ||||||||
| Commercial and Industrial |
| 374,634 |
| 19,146 | 5.11 | % |
| 282,141 |
| 13,380 | 4.74 | % | ||||||||
| Residential Real Estate |
| 64,769 |
| 3,381 | 5.22 | % |
| 63,688 |
| 3,171 | 4.98 | % | ||||||||
| Installment and Other |
| 5,065 |
| 173 | 3.42 | % |
| 3,779 |
| 338 | 8.91 | % | ||||||||
| Total Loans Receivable |
| 1,341,998 |
| 64,835 | 4.83 | % |
| 1,072,325 |
| 49,738 | 4.64 | % | ||||||||
| Total Interest Earning Assets | $ | 2,188,303 | $ | 83,083 | 3.74 | % | $ | 1,964,616 | $ | 70,165 | 3.52 | % | ||||||||
| Liabilities: | ||||||||||||||||||||
| Non-Interest Bearing Demand Deposits |
| 1,045,715 |
| - | 0.00 | % |
| 941,057 |
| - | 0.00 | % | ||||||||
| Interest Bearing Transaction Accounts |
| 205,551 |
| 516 | 0.25 | % |
| 188,101 |
| 374 | 0.20 | % | ||||||||
| Money Market and Savings Deposits |
| 757,833 |
| 3,918 | 0.52 | % |
| 650,134 |
| 2,100 | 0.32 | % | ||||||||
| Certificates of Deposit |
| 55,673 |
| 339 | 0.61 | % |
| 63,085 |
| 331 | 0.53 | % | ||||||||
| Total Deposits |
| 2,064,772 |
| 4,773 | 0.23 | % |
| 1,842,377 |
| 2,805 | 0.15 | % | ||||||||
| Federal Home Loan Bank Advances / Other Borrowings |
| 552 |
| 15 | 2.63 | % |
| 20,037 |
| 329 | 1.64 | % | ||||||||
| Total Interest Bearing Deposits and Borrowings |
| 1,019,609 |
| 4,788 | 0.47 | % |
| 921,357 |
| 3,134 | 0.34 | % | ||||||||
| Total Deposits and Borrowings | $ | 2,065,324 | $ | 4,788 | 0.23 | % | $ | 1,862,414 | $ | 3,134 | 0.17 | % | ||||||||
| Net Interest Income | $ | 78,295 | $ | 67,031 | ||||||||||||||||
| Net Interest Rate Spread | 3.51 | % | 3.35 | % | ||||||||||||||||
| Net Interest Margin | 3.58 | % | 3.41 | % | ||||||||||||||||
| American Business Bank | ||||||||||||||||||
| Figures in $000 | ||||||||||||||||||
| SUPPLEMENTAL DATA (unaudited) | ||||||||||||||||||
December |
| September |
| December | ||||||||||||||
2019 |
| 2019 |
| 2018 | ||||||||||||||
| Performance Ratios: | ||||||||||||||||||
| Quarterly: | ||||||||||||||||||
| Return on Average Assets (ROAA) |
| 0.99 | % |
| 0.95 | % |
| 1.12 | % | |||||||||
| Core Return on Average Assets (ROAA) |
| 0.99 | % |
| 0.96 | % |
| 0.91 | % | |||||||||
| Return on Average Equity (ROAE) |
| 11.74 | % |
| 11.03 | % |
| 15.52 | % | |||||||||
| Core Return on Average Equity (ROAE) |
| 11.74 | % |
| 11.22 | % |
| 12.61 | % | |||||||||
| Efficiency Ratio |
| 58.77 | % |
| 58.64 | % |
| 48.92 | % | |||||||||
| Core Efficiency Ratio |
| 58.77 | % |
| 58.64 | % |
| 57.34 | % | |||||||||
| Year-to-Date: | ||||||||||||||||||
| Return on Average Assets (ROAA) |
| 0.97 | % |
| 0.96 | % |
| 0.80 | % | |||||||||
| Core Return on Average Assets (ROAA) |
| 1.00 | % |
| 1.00 | % |
| 0.78 | % | |||||||||
| Return on Average Equity (ROAE) |
| 11.80 | % |
| 11.83 | % |
| 10.65 | % | |||||||||
| Core Return on Average Equity (ROAE) |
| 12.15 | % |
| 12.30 | % |
| 10.38 | % | |||||||||
| Efficiency Ratio |
| 60.29 | % |
| 60.82 | % |
| 63.57 | % | |||||||||
| Core Efficiency Ratio |
| 59.57 | % |
| 59.84 | % |
| 65.21 | % | |||||||||
| Capital Adequacy: | ||||||||||||||||||
| Total Risk Based Capital Ratio |
| 13.82 | % |
| 13.81 | % |
| 14.09 | % | |||||||||
| Common Equity Tier 1 Capital Ratio |
| 12.57 | % |
| 12.56 | % |
| 12.84 | % | |||||||||
| Tier 1 Risk Based Capital Ratio |
| 12.57 | % |
| 12.56 | % |
| 12.84 | % | |||||||||
| Tier 1 Leverage Ratio |
| 8.66 | % |
| 8.91 | % |
| 8.33 | % | |||||||||
| Tangible Common Equity / Tangible Assets |
| 8.60 | % |
| 8.62 | % |
| 7.65 | % | |||||||||
| Asset Quality Overview | ||||||||||||||||||
| Non-Performing Loans | $ | 1,855 |
| $ | 1,481 |
| $ | 1,222 |
| |||||||||
| Loans 90+Days Past Due and Still Accruing |
| - |
|
| - |
|
| - |
| |||||||||
| Total Non-Performing Loans |
| 1,855 |
|
| 1,481 |
|
| 1,222 |
| |||||||||
| Restructured Loans |
| 227 |
|
| 229 |
|
| 235 |
| |||||||||
| Other Real Estate Owned |
| - |
|
| - |
|
| - |
| |||||||||
| ALLL / Loans Receivable |
| 1.40 | % |
| 1.40 | % |
| 1.40 | % | |||||||||
| Non-Performing Loans / Total Loans Receivable * |
| 0.14 | % |
| 0.12 | % |
| 0.12 | % | |||||||||
| Non-Performing Assets / Total Assets * |
| 0.09 | % |
| 0.07 | % |
| 0.07 | % | |||||||||
| Net Charge-Offs (Recoveries) quarterly | $ | (8 | ) | $ | (6 | ) | $ | (10 | ) | |||||||||
| Net Charge-Offs (Recoveries) year-to-date | $ | (41 | ) | $ | (33 | ) | $ | (53 | ) | |||||||||
| Net Charge-Offs (Recoveries) year-to-date / Average |
| (0.00 | %) |
| (0.00 | %) |
| (0.00 | %) | |||||||||
| Loans Receivable | ||||||||||||||||||
* Includes non-accrual loans, accruing loans past due 90+ days and Troubled Debt Restructurings (TDRs).
View source version on businesswire.com: https://www.businesswire.com/news/home/20200130005254/en/
