AMERICAN BUSINESS BANK(NDA) 
By AMERICAN BUSINESS BANK (Bank) (OTCBB: AMBZ) today reported net income of $9,886,000 for the year ended December 2011, a 14% increase over the $8,701,000 earned in 2010. Earnings per share (EPS) for 2011 increased to $2.24 versus $1.99 in 2010. Shares outstanding at the end of the year totaled 4,427,862.
"The Bank once again exceeded its targets for asset and income growth in 2011, a year that presented challenges due to the very low investment yields available in the marketplace and the general lack of demand for loans by customers affecting the banking industry as a whole," said Wes Schaefer, Vice Chairman of the Bank.
"Our results reflect the Bank's ability to stay on the course set out since its founding. We have not changed our business model and it has proven to be effective despite the swings in the economy that we have seen over the past fourteen years," said Don Johnson, CEO of the Bank.
Robert Schack, Chairman, added, "When you combine some of the best bankers in the business with one of the best business banking markets in the country, the results are excellent."
Assets and Liabilities
Total assets increased over 17% or $168 million to $1.178 billion at December 31, 2011 as compared to $1.010 billion at December 31, 2010. Loans increased 2% or $8 million from $401 million to $409 million, while investments increased 25% or $141 million. Funding the asset growth was a 17% or $150 million increase in core deposits.
Interest Income
During 2011, Net Interest Income increased $3,594,000 or 11% over the previous year.
Non-interest Income
Non-interest Income for the year rose 24% to $4,309,000 in 2011 from $3,461,000 in 2010.
Credit Quality
Asset quality at year-end remains excellent, with no past dues and no OREO loans. At 2011 year-end, the allowance for loan losses stood at $8.9 million or 2.14% 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 | 2011 | 2010 | |||||||||
| Assets | |||||||||||
| Investment Securities | $ | 702,949 | $ | 562,053 | |||||||
| Loans and Leases (net) | 409,354 | 401,554 | |||||||||
| Cash, Checks in process of | |||||||||||
| collection, Due From Banks | 28,093 | 9,750 | |||||||||
| Premises, Equipment and Other Assets | 37,330 | 36,152 | |||||||||
| Total Assets | $ | 1,177,726 | $ | 1,009,509 | |||||||
| Liabilities and Shareholders' Equity | |||||||||||
| Demand Deposits | $ | 459,317 | $ | 346,992 | |||||||
| Money Market and NOW Deposits | 483,480 | 447,261 | |||||||||
| Savings and Time Deposits | 85,760 | 84,656 | |||||||||
| Total Deposits | 1,028,557 | 878,909 | |||||||||
| FHLB Advances/ Borrowings | 48,000 | 56,400 | |||||||||
| Other Liabilities | 14,197 | 8,225 | |||||||||
| Shareholders' Equity | 86,972 | 65,975 | |||||||||
| Total Liabilities and | |||||||||||
| Shareholders' Equity | $ | 1,177,726 | $ | 1,009,509 | |||||||
| AMERICAN BUSINESS BANK | |||||||||||||
| INCOME STATEMENT | |||||||||||||
(Unaudited - 000's omitted) | |||||||||||||
| Twelve months ended December | 2011 | 2010 | |||||||||||
| Interest Income | |||||||||||||
| Loans and Leases | $ | 22,122 | $ | 21,319 | |||||||||
| Investment Securities | 16,339 | 14,580 | |||||||||||
| Total Interest Income | 38,461 | 35,899 | |||||||||||
| Interest Expense | |||||||||||||
| Money Market and NOW Accounts | 2,453 | 3,085 | |||||||||||
| Savings and Time Deposits | 778 | 1,003 | |||||||||||
| Repurchase Agreements/ | |||||||||||||
| Other Borrowings | 315 | 490 | |||||||||||
| Total Interest Expense | 3,546 | 4,578 | |||||||||||
| Net Interest Income | 34,915 | 31,321 | |||||||||||
| Provision for Loan Losses | (2,043 | ) | (1,783 | ) | |||||||||
| Net Interest Income After | |||||||||||||
| Provision for Loan Losses | 32,872 | 29,538 | |||||||||||
| Other Income | 4,309 | 3,461 | |||||||||||
| Operating Expenses | 23,210 | 22,020 | |||||||||||
| Operating Income | 13,971 | 10,979 | |||||||||||
| Income Taxes | (4,085 | ) | (2,278 | ) | |||||||||
Net Earnings | $ | 9,886 | $ | 8,701 | |||||||||
| Selected Ratios: | |||||||||||||
| Earnings per Share | $ | 2.24 | $ | 1.99 | |||||||||
| Tier 1 Capital Ratio | 6.72 | % | 6.68 | % | |||||||||
| Net Interest Margin (Prior to tax effects) | 3.39 | % | 3.49 | % | |||||||||
| Return on Beginning Equity | 15.04 | % | 13.79 | % | |||||||||
| Return on Average Assets | 0.91 | % | 0.91 | % | |||||||||
| Efficiency Ratio | 56.3 | % | 61.6 | % | |||||||||
American Business Bank
Wesley E. Schaefer
Vice Chairman
& Chief Financial Officer
(213) 430-4000
