Business & Finance
Business and Finance
Business and Finance
Thu, July 15, 2010 AMERICAN BUSINESS BANK Announces Its Results for the Second Quarter Ended June 30th 2010, Including 12% Loan Growth, 14% Deposi
LOS ANGELES--([ BUSINESS WIRE ])--AMERICAN BUSINESS BANK (Bank) (OTCBB: AMBZ) today reported net income of $2,225,000 for the second quarter 2010, a 32% increase over the $1,676,000 earned in the second quarter of 2009. Earnings per share (EPS) in the second quarter 2010 increased to $0.56 versus $0.42 in the second quarter 2009. Shares outstanding at the end of the quarter totaled 3,974,840.
"Our bank is merely a reflection of the high quality of our client base, which includes some of the finest companies in our market place."
aWe are very pleased with the direction of the bank and our results here in the second quarter,a stated Robin Paterson, the Banka™s Executive Vice President and Chief Credit Officer. aAs the economy continues to struggle, the bank remains focused on its mission to assist our clients in achieving their financial goals.a
aThe second quarter was one with continued growth in all areas of the bank. We had excellent growth in our earnings over the already strong earnings that we had in 2009,a said Wes Schaefer, Vice Chairman of the Bank.
aRecognizing that the economic recovery is weak but progressing, we are pleased with these very positive results,a Robert Schack, Chairman, said. aOur bank is merely a reflection of the high quality of our client base, which includes some of the finest companies in our market place.a
Assets and Liabilities
Total assets increased 13% or $109 million to $948 million at June 30, 2010 as compared to $839 million at June 30, 2009. Loans increased 12% or $41 million to $370 million at June 30, 2010 as compared to $329 million at June 30, 2009 while investments and federal funds sold increased $63 million. Funding the asset growth was a 14% or $106 million increase in deposits.
Interest Income
During the second quarter, Net Interest Income rose by $1,111,000 or 16% over the same quarter in 2009.
Non-interest Income
Non-interest Income in the second quarter of 2010 increased 29% to $945,000 from $728,000 in the second quarter of 2009.
Credit Quality
Asset quality at quarter-end remains excellent, with zero non-performing loans, no OREO and no charge offs. At quarter-end, the allowance for loan losses stood at $6,064,000 or 1.61% 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) | |||||||||||
| June | 2010 | 2009 | |||||||||
| Assets | |||||||||||
| Investment Securities | $ | 497,648 | $ | 388,973 | |||||||
| Trading Securities | 176 | 29,825 | |||||||||
| Federal Funds Sold | 14,000 | 30,000 | |||||||||
| Loans and Leases (net) | 370,610 | 329,767 | |||||||||
Cash, Checks in process of | |||||||||||
collection Due from Banks | 32,682 | 33,168 | |||||||||
| Premises, Equipment and | |||||||||||
| Other Assets | 33,206 | 27,655 | |||||||||
| Total Assets | $ | 948,322 | $ | 839,388 | |||||||
| Liabilities and Shareholders' Equity | |||||||||||
| Demand Deposits | 328,239 | 283,070 | |||||||||
| Money Market and Now Deposits | 425,126 | 375,811 | |||||||||
| Savings and Time Deposits | 107,836 | 96,277 | |||||||||
| Total Deposits | 861,201 | 755,158 | |||||||||
| FHLB Advances | 15,335 | 30,334 | |||||||||
| Other Liabilities | 8,051 | 3,136 | |||||||||
| Shareholders' Equity | 63,735 | 50,760 | |||||||||
| |||||||||||
Total Liabilities and Shareholders' Equity | $ | 948,322 | $ | 839,388 | |||||||
| AMERICAN BUSINESS BANK | |||||||||||||
| INCOME STATEMENT | |||||||||||||
| ( Unaudited - 000's omitted) | |||||||||||||
Three months ended June | |||||||||||||
| 2010 | 2009 | |||||||||||
| Interest Income | |||||||||||||
| Loans and Leases | $ | 5,296 | $ | 4,886 | |||||||||
| Investment Securities | 3,702 | 3,272 | |||||||||||
| Federal Funds Sold | 4 | 11 | |||||||||||
| Total Interest Income | 9,002 | 8,169 | |||||||||||
| Interest Expense | |||||||||||||
| Money Market and Now Accounts | 803 | 875 | |||||||||||
| Savings and Time Deposits | 279 | 340 | |||||||||||
| Repurchase Agreements/ | |||||||||||||
| Other Borrowings | 128 | 273 | |||||||||||
| Total Interest Expense | 1,210 | 1,488 | |||||||||||
| Net Interest Income | 7,792 | 6,681 | |||||||||||
| Provision for Loan Losses | (288 | ) | (295 | ) | |||||||||
| Net Interest Income After | |||||||||||||
| Provision for Loan Losses | 7,504 | 6,386 | |||||||||||
| Other Income | 945 | 728 | |||||||||||
| Other Expense | 5,471 | 5,082 | |||||||||||
| Operating Income | 2,978 | 2,032 | |||||||||||
| Income Taxes | (753 | ) | (356 | ) | |||||||||
| Net Earnings | $ | 2,225 | $ | 1,676 | |||||||||
| Selected Ratios: | |||||||||||||
| Earnings per Share | $ | 0.56 | $ | 0.42 | |||||||||
| Tier 1 Capital Ratio | 6.85 | % | 6.70 | % | |||||||||
| Net Interest Margin | 3.64 | % | 3.58 | % | |||||||||
| Return on Beginning Equity | 15.00 | % | 12.43 | % | |||||||||
| Return on Average Assets | 0.89 | % | 0.76 | % | |||||||||
| Efficiency Ratio | 62.3 | % | 74.2 | % | |||||||||
