N@N

American Business Bank Announces Its Results for the Year Ended December 31st, 2010, Including 11% Loan Growth, 12% Deposit Gro

^{Published on 2011-01-13 07:21:18 - Market Wire}
 

LOS ANGELES--([ BUSINESS WIRE ])--AMERICAN BUSINESS BANK (Bank) (OTCBB: AMBZ) today reported net income of $8,701,000 for the year ended December 31, 2010, a 20% increase over the $7,225,000 earned in 2009. Earnings per share (EPS) for 2010 increased to $2.19 versus $1.82 in 2009. Shares outstanding at the end of the year totaled 3,979,156.

"The Bank had an excellent year in terms of growth and profitability. Not only were we able to post outstanding earnings, but we were also able to add to the Banka™s reserves"

aThe Bank had an excellent year in terms of growth and profitability. Not only were we able to post outstanding earnings, but we were also able to add to the Banka™s reserves,a said Wes Schaefer, Vice Chairman of the Bank.

aAs we have said throughout this year, the Bank has been and continues to be built one customer at a time,a said Don Johnson, President and CEO of the Bank. aWe have stayed the course and worked through a very difficult economy, not stepping out by pursuing the latest fad or taking risks beyond those that are part of our core business: banking middle market companies.a

Robert Schack, Chairman, added, a2010 was a tumultuous year, with the passage of the largest banking bill since the Depression, the closure of a significant number of banks and many headwinds for the economy. Despite this, our bank was able to post record earnings and add new middle market clients to our customer base, increasing assets nearly twelve percent from the previous year.a

Assets and Liabilities

Total assets increased over 11% or $107 million to $1,007 million at December 31, 2010 as compared to $900 million at December 31, 2009. Loans increased 11% or by $41 million from $360 million to $401 million, while investments increased $70 million. Funding the asset growth was a 12% or $93 million increase in core deposits.

Interest Income

During 2010, Net Interest Income increased $3,601,000 or 13% over the previous year.

Non-interest Income

Non-interest Income for the year rose 15% to $3,462,000 in 2010 from $2,989,000 in 2009.

Credit Quality

Asset quality at year-end remains excellent, with nominal past dues and no OREO loans. At year-end, the allowance for loan losses stood at $7,050,000 or 1.73% 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.