American Business Bank Announces Record Net Income in 2019

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).

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