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LOS ANGELES--([ BUSINESS WIRE ])--AMERICAN BUSINESS BANK (Bank) (OTCBB: AMBZ) today reported net income of $2,404,000 for the first quarter of 2012, a 9% increase over the $2,213,000 earned in the first quarter of 2011. Earnings per share (EPS) in the first quarter of 2012 increased to $0.54 versus $0.50 in the first quarter of 2011. Shares outstanding as of March 31, 2012 totaled 4,427,862.

"Southern California is one of the largest and most resilient business economies in the country. Our continued earnings growth reflects our ongoing success in banking some of the best companies in our area"

aOur staff and Officers continue to perform at a superior level, providing customers with the service and attention to detail that they expect from an outstanding bank, and for this management is thankful,a said Leon Blankstein, President.

aSouthern California is one of the largest and most resilient business economies in the country. Our continued earnings growth reflects our ongoing success in banking some of the best companies in our area,a said Bob Schack, Chairman of the Bank.

"Our clients and their related loans have demonstrated their strength and resiliency through a very difficult and protracted cycle," added Robin Paterson, Chief Credit Officer.

Assets and Liabilities

Total assets increased 13% or $140 million to $1.200 billion at March 31, 2012 as compared to $1.060 billion at March 31, 2011. Loans increased 1% or $3 million to $406 million at March 31, 2012 as compared to $403 million at March 31, 2011 while investments and federal funds sold increased $136 million. Funding the asset growth was a 13% or $120 million increase in deposits.

Interest Income

During the first quarter of 2012, Net Interest Income rose by $102,000 or 1% over the same period in 2011.

Non-Interest Income

Non-Interest Income for the first quarter in 2012 rose 4% to $721,000 from $693,000 during the first quarter of 2011.

Credit Quality

Asset quality at quarter-end remains excellent, with nominal past dues and no OREO loans. At the end of March of 2012, the allowance for loan losses stood at $9,234,000 or 2.22% 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.