Robust SBA PPP Fundings Boost Record Net Income

Nachrichtenquelle: Business Wire (engl.)
24.07.2020, 15:05  |  143   |   |   

American Business Bank (OTCQX: AMBZ) today reported record net income of $6.7 million or $0.83 per fully diluted share for the second quarter of 2020 compared to $5.3 million or $0.66 per fully diluted share for the second quarter of 2019. The increase was primarily due to significant PPP loan originations during the quarter which increased net interest income but reduced net interest margin.

“Although much uncertainty exists from the pandemic, we are confident for the future based upon the resilience and financial strength of our outstanding customer base. Additionally our significant participation in the PPP program makes us hopeful our clients received the economic boost to move forward in a positive manner, making the proper adjustment to not only survive but to flourish. The program provided unprecedented liquidity in April to our customers who did not know what the new normal would look like. Most of our customers did not shut down but adapted to remote work like the Bank. We have taken an aggressive stance in downgrading credits, but a vast amount of our customers are proactive and are good managers of their businesses and are taking the necessary steps to survive. This is reflected in the continued strong credit metrics of the Bank and is a result of our prudent lending approach in our evaluation of businesses.”

“Furthermore, the Bank is providing the same responsiveness and service we demonstrated in the PPP origination process by assisting clients with a professional accounting firm to ensure our customers meet the SBA requirements to maximize loan forgiveness. At PPP loan payoff, the Bank stands to earn a noteworthy amount of fees to offset the effects of the lower interest rate environment we find ourselves in. Another reason I’m optimistic is the strong pipeline of new business for the Bank as our PPP performance has attracted prospects at a time when our high touch service is appreciated more than ever,” said Leon Blankstein, ABB’s President, CEO and Director.

For the quarter ending June 30, 2020, net income was $6.7 million or $0.83 per fully diluted share, compared to net income of $4.8 million or $0.60 per fully diluted share for the first quarter of 2020. Net interest income for the second quarter was $21.7 million, or 9% higher than the first quarter of 2020 as PPP loan interest of $3 million was partially offset by lower rates on earning assets, while the cost of deposits declined 13 basis points to 0.08%. The increase in net income was also attributable to a $1.7 million increase in Bank/Corporate Owned Life Insurance income offset by a $1.2 million increase in salaries and employee benefits. Furthermore, as outstanding loans excluding PPP declined in the second quarter the provision for loan loss was $680,000 compared to $1.4 million recorded in the first quarter. The allowance for loan losses as a percentage of loans, excluding PPP loans, increased from 1.42% at March 31, 2020 to 1.54% at June 30, 2020.

Net income was $11.6 million or $1.43 per fully diluted share for the six months ended June 30, 2020, compared to $10.7 million or $1.32 per fully diluted share for the six months ended June 30, 2019. The increase was primarily due to significant loan growth between periods, partially offset by lower interest margin resulting in increased net interest income. The provision for loan losses increased $1.1 million primarily as a result of loan growth between periods, as well as a higher level of allowance in response to uncertainty caused by the COVID-19 pandemic.

PPP loans represent 45% of total loans as of March 31, 2020 with the participation of 46% of our customer base. These efforts helped to protect approximately 50,000 jobs in the business community served by the Bank. This influx of cash to the Bank’s existing commercial customers has helped to alleviate any deterioration in their operations for the time being. The following table shows the details of the PPP loans originated during the second quarter of 2020:

Loan Size by Tier

Count

Funded

(Dollars in '000)

Average loan size
(Dollars in '000)

Less than $350,000

518

$75,438

$146

$350,000 to less than $2 million

465

388,116

835

$2 million and greater

73

229,066

3,138

 

1056

$692,620

$656

 

 

 

 

Weighted average processing fee %

2.57%

Net Interest Margin

The Bank’s net interest margin for the second quarter of 2020 was 2.88% compared to 3.61% in the second quarter of 2019, and 3.47% in the first quarter of 2020. Excluding the impact of PPP loans, net interest margin for the second quarter of 2020 was 3.02%. The decrease was primarily due to a reduction in market interest rates while the mix of non-interest bearing deposits to total deposits remains at 50% or more. The loan to deposit ratio increased to 70% for the second quarter of 2020 compared to 68% for the first quarter of 2020 and 66% for the second quarter of 2019. Despite the contraction in the Bank’s net interest margin, there continues to be a shift to higher earning assets. As of June 30, 2020, approximately 44% of the Bank’s variable-rate loans are indexed to prime and 69% of these loans are at or above their floor.

Net Interest Income

Net interest income increased for the second quarter of 2020 compared to the second quarter of 2019 by $2.7 million, or 14%, and compared to the first quarter of 2020 by $1.7 million, or 9%. These increases were due to an increase in average outstanding loans offset by lower yields on all interest earning assets for the periods compared. Included in interest income for the second quarter of 2020 is the accretion of net deferred processing fees of $1.5 million for PPP loans. The Bank’s core funding continues to be a strength with the cost of deposits at 0.08% for the second quarter of 2020 compared to 0.24% for same period a year ago.

On a year-to-date basis, net interest income was $41.8 million for the six months ended June 30, 2020, compared to $37.9 million for the same period a year ago. The increase was primarily due to significant loan growth between periods, partially offset by a lower net interest margin.

Non Interest Income

Non-interest income in the second quarter of 2020 was $1.8 million, representing an increase of $454,000, or 34% from the quarter a year ago, and an increase of $1.4 million compared to the first quarter of 2020. The increase from the second quarter of 2019 was attributable to an increase in Bank/Corporate owned life insurance income of $753,000, which is driven by the increase in the value of the policies that are invested in mutual funds. This increase was partially offset by a $161,000 decline in gains on sale of SBA loans as the Bank started to portfolio more SBA loans to add to its interest earning asset base since 2019. Compared to the first quarter of 2020, non-interest income also increased primarily due to a $1.7 million increase in Bank/Corporate owned life insurance income, offset by an $184,000 net loss on the sale of SBA investment securities realized in the recent quarter. On a year-to-date basis, Deposit and International Fees increased $224,000 from the period a year ago due to growth in commercial business customers. For the second quarter of 2020, International Fees declined due to the impact of the pandemic.

Non Interest Expense

Non-interest expense increased $1.6 million for the quarter ended June 30, 2020 compared to the same quarter a year ago. The increase was predominantly due to an $810,000 increase in salaries expense, a $431,000 increase in professional services expense and a $533,000 increase in other non-interest expense. The increase in salaries expense is primarily due to higher deferred compensation plan (DCP) cost as a result of better market performances on other mutual fund measurement balances, and higher full time equivalent employees at June 30, 2020 over the prior year. In other non-interest expense, the provision for off-balance-sheet commitments increased $687,000 due to reduced utilization percentages. The efficiency ratio declined to 59% for the second quarter of 2020 compared to 60% for the second quarter of 2019.

Compared to the first quarter of 2020, non-interest expense increased $1.9 million primarily due to a $1.2 million increase in salaries and employee benefits expense and a $635,000 increase in other non-interest expense. The increase in salaries expense is mainly due to the following:

  • Higher DCP cost as a result of better market performances on other mutual fund measurement balances, resulting in an $894,000 DCP expense recorded in the recent quarter compared to an $837,000 DCP benefit recorded in the prior quarter;
  • Higher overtime and bonus expenses associated with PPP originations net of related deferred costs for PPP origination activities.

In other non-interest expense, the provision for off-balance sheet commitments increased $706,000 due to reduced utilization percentages, and deposit insurance assessments increased $117,000 as the Bank received a Small Bank Assessment Credit of the same amount from the FDIC during the first quarter of 2020 to offset regular deposit insurance assessments. The Bank did not receive such credit in the recent quarter. The efficiency ratio was 59% for the second and first quarters of 2020.

On a year-to-date basis, non-interest expense for the six months ended June 30, 2020 increased $654,000 or 3% compared to the same period a year ago, predominantly due to higher professional services expense. The efficiency ratio was 59% and 62% for the six months ended June 30, 2020 and 2019, respectively.

Full time equivalent employees at June 30, 2020 were 195 compared to 191 a year ago, and the same as March 31, 2020. The Bank has 30 relationship managers in seven offices.

Balance Sheet

Total assets increased $893 million, or 37% from year-end December 31, 2019 to $3.3 billion, with 76% of the increase attributable to PPP originations during the recent quarter. Total loans, excluding PPP loans, decreased $32 million, or 2%, to $1.46 billion from year-end as the Bank primarily focused its resources to participate in the PPP program and C&I line utilization declined. As of June 30, 2020 and March 31, 2020, the utilization rates for the Bank’s commercial lines of credit were 27% and 35%, respectively.

During the first six months of 2020, total deposits grew by $860 million with a majority of the increase attributable to the proceeds of PPP loans. In addition, existing customers became more liquid as the economy slowed and receivables were converted to cash as well as new relationships to the Bank contributed to the significant growth in deposits during the first half of 2020. At June 30, 2020, the tangible common equity ratio was 6.89%; excluding PPP loans, the tangible common equity ratio was 8.67%.

Asset Quality

During the second quarter of 2020, non-performing assets declined from $4.5 million on March 31, 2020 to $2.8 million on June 30, 2020, representing 0.11% of total assets (excluding PPP loans). The Bank continues to have no Other Real Estate Owned (OREO). At June 30, 2020, the Bank’s level of past due, criticized and classified loans represented 0.26%, 6.55% and 1.22% of total loans (excluding PPP loans), respectively. As of June 30, 2020 the Bank has one $2.6 million commercial loan on non-accrual status with a specific allowance. There are four other relationships that are impaired totaling $1.6 million with a specific allowance. At the end of the quarter, the allowance for loan losses stood at $22.4 million, or 1.54% of total loans (excluding PPP loans); compared to 1.4% at December 31, 2019. All PPP loans are 100% guaranteed by the SBA and as such, no allowance for loan losses is allocated to these loans. The Bank is required to adopt CECL, or Current Expected Credit Loss, on January 1, 2023. For the first six months of 2020, the Bank recorded a total of $538,000 in net charge-offs on two commercial loans, representing annualized net charge offs of 0.06%.

In response to the COVID-19 pandemic, the Bank established a loan payment deferment program to assist its customers who are experiencing short-term, temporary financial or operational problems. During the second quarter of 2020, loan payment deferrals were granted on 38 loans with a total principal balance of $94 million, or 4% of total loans; 68% of the deferrals granted were in the owner occupied and 24% were in non-owner occupied commercial real estate loans. Those loans were originally underwritten with a 53% average loan to value ratio. All payment deferrals granted to-date meet applicable requirements to continue accruing interest.

At June 30, 2020, loans to customers in the hotel, restaurant, entertainment, and recreation industries represented 5% of the loan portfolio. Retail and hospitality related loans, collateralized by commercial real estate, comprised 7% of the loan portfolio that was originally underwritten with a 55% average loan to value ratio. The Bank has no exposure to the oil and gas industry.

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. The COVID-19 pandemic is adversely affecting the national economy; the ultimate length and severity of its impact on the Bank’s customers are uncertain. 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)
 
 
 

June

 

March

 

December

 

June

 

2020

 

 

 

2020

 

 

 

2019

 

 

 

2019

 

Assets:
Cash and Due from Banks

$

68,072

 

$

36,539

 

$

31,673

 

$

66,605

 

Interest Earning Deposits in Other Financial Institutions

 

232,770

 

 

149,654

 

 

45,202

 

 

10,313

 

 
Investment Securities:
US Agencies

 

240,012

 

 

265,758

 

 

284,032

 

 

376,573

 

Mortgage Backed Securities

 

313,119

 

 

286,122

 

 

292,126

 

 

194,735

 

State and Municipals

 

133,128

 

 

75,240

 

 

78,520

 

 

72,117

 

US Treasuries

 

10,081

 

 

10,116

 

 

10,009

 

 

9,991

 

Corporate Bonds

 

19,502

 

 

20,068

 

 

19,805

 

 

7,919

 

Securities Available-for-Sale, at Fair Value

 

715,842

 

 

657,304

 

 

684,492

 

 

661,335

 

State and Municipals Securities Held-to-Maturity, at Amortized Cost

 

86,289

 

 

86,499

 

 

86,707

 

 

87,121

 

Federal Home Loan Bank Stock, at Cost

 

10,864

 

 

10,356

 

 

10,356

 

 

10,356

 

Total Investment Securities

 

812,995

 

 

754,159

 

 

781,555

 

 

758,812

 

Loans Receivable:
Commercial Real Estate

 

1,007,655

 

 

1,009,731

 

 

982,070

 

 

893,866

 

Commercial and Industrial

 

370,786

 

 

454,838

 

 

423,868

 

 

365,834

 

SBA Payroll Protection Program

 

675,666

 

 

-

 

 

-

 

 

-

 

Residential Real Estate

 

71,112

 

 

76,083

 

 

76,481

 

 

61,116

 

Installment and Other

 

6,039

 

 

5,337

 

 

4,959

 

 

4,026

 

Total Loans Receivable

 

2,131,258

 

 

1,545,989

 

 

1,487,378

 

 

1,324,842

 

Allowance for Loan Losses

 

(22,399

)

 

(21,888

)

 

(20,824

)

 

(18,548

)

Loans Receivable, Net

 

2,108,859

 

 

1,524,101

 

 

1,466,554

 

 

1,306,294

 

Furniture, Equipment and Leasehold Improvements, Net

 

8,520

 

 

8,833

 

 

9,023

 

 

6,453

 

Bank/Corporate Owned Life Insurance

 

26,651

 

 

25,698

 

 

26,448

 

 

25,975

 

Other Assets

 

37,396

 

 

38,650

 

 

41,456

 

 

47,030

 

Total Assets

$

3,295,263

 

$

2,537,634

 

$

2,401,911

 

$

2,221,482

 

 
Liabilities:
Non-Interest Bearing Demand Deposits

$

1,684,662

 

$

1,164,965

 

$

1,083,705

 

$

988,259

 

Interest Bearing Transaction Accounts

 

204,133

 

 

214,967

 

 

215,730

 

 

202,465

 

Money Market and Savings Deposits

 

1,100,191

 

 

872,908

 

 

827,713

 

 

749,979

 

Certificates of Deposit

 

35,713

 

 

36,044

 

 

37,712

 

 

59,524

 

Total Deposits

 

3,024,699

 

 

2,288,884

 

 

2,164,860

 

 

2,000,227

 

Federal Home Loan Bank Advances / Other Borrowings

 

-

 

 

-

 

 

-

 

 

-

 

Other Liabilities

 

43,206

 

 

33,526

 

 

30,386

 

 

29,190

 

Total Liabilities

$

3,067,905

 

$

2,322,410

 

$

2,195,246

 

$

2,029,417

 

 
Shareholders' Equity:
Common Stock

$

165,032

 

$

164,456

 

$

163,872

 

$

162,589

 

Retained Earnings

 

58,359

 

 

51,624

 

 

46,784

 

 

35,378

 

Accumulated Other Comprehensive Income / (Loss)

 

3,967

 

 

(856

)

 

(3,991

)

 

(5,902

)

Total Shareholders' Equity

$

227,358

 

$

215,224

 

$

206,665

 

$

192,065

 

Total Liabilities and Shareholders' Equity

$

3,295,263

 

$

2,537,634

 

$

2,401,911

 

$

2,221,482

 

 
Standby Letters of Credit

$

37,259

 

$

38,614

 

$

39,513

 

$

40,346

 

 
Per Share Information:
Common Shares Outstanding

 

7,904,105

 

 

7,870,120

 

 

7,850,171

 

 

7,794,212

 

Book Value Per Share

$

28.76

 

$

27.35

 

$

26.33

 

$

24.64

 

Tangible Book Value Per Share

$

28.76

 

$

27.35

 

$

26.33

 

$

24.64

 

American Business Bank
Figures in $000, except share and per share amounts
 
INCOME STATEMENTS (unaudited)
 
 
For the three months ended:

June

 

March

 

June

 

2020

 

 

 

2020

 

 

 

2019

 

Interest Income:
Interest and Fees on Loans

$

19,169

 

$

17,295

 

$

15,845

 

Interest on Investment Securities

 

3,084

 

 

3,913

 

 

4,145

 

Interest on Interest Earning Deposits
in Other Financial Institutions

 

93

 

 

54

 

 

263

 

Total Interest Income

 

22,346

 

 

21,262

 

 

20,253

 

 
Interest Expense:
Interest on Interest Bearing Transaction Accounts

 

37

 

 

105

 

 

107

 

Interest on Money Market and Savings Deposits

 

538

 

 

968

 

 

956

 

Interest on Certificates of Deposits

 

28

 

 

41

 

 

116

 

Interest on Federal Home Loan Bank Advances
and Other Borrowings

 

-

 

 

131

 

 

14

 

Total Interest Expense

 

603

 

 

1,245

 

 

1,193

 

 
Net Interest Income

 

21,743

 

 

20,017

 

 

19,060

 

Provision for Loan Losses

 

680

 

 

1,434

 

 

928

 

Net Interest Income after Provision for Loan Losses

 

21,063

 

 

18,583

 

 

18,132

 

 
Non-Interest Income:
Deposit Fees

 

640

 

 

615

 

 

543

 

International Fees

 

244

 

 

282

 

 

254

 

Gain (Loss) on Sale of Investment Securities, Net

 

(184

)

 

47

 

 

(145

)

Gain on Sale of SBA Loans, Net

 

-

 

 

19

 

 

161

 

Bank/Corporate Owned Life Insurance Income (Expense)

 

953

 

 

(750

)

 

200

 

Other

 

143

 

 

198

 

 

329

 

Total Non-Interest Income

 

1,796

 

 

411

 

 

1,342

 

 
Non-Interest Expense:
Salaries and Employee Benefits

 

9,384

 

 

8,219

 

 

8,574

 

Occupancy and Equipment

 

953

 

 

920

 

 

1,047

 

Professional Services

 

1,627

 

 

1,482

 

 

1,196

 

Promotion Expenses

 

267

 

 

366

 

 

322

 

Other

 

1,693

 

 

1,058

 

 

1,160

 

Total Non-Interest Expense

 

13,924

 

 

12,045

 

 

12,299

 

 
Earnings before income taxes

 

8,935

 

 

6,949

 

 

7,175

 

Income Tax Expense

 

2,200

 

 

2,110

 

 

1,906

 

 
NET INCOME

$

6,735

 

$

4,839

 

$

5,269

 

Add back:
After-Tax Gain (Loss) on Sale of Investment Securities, Net

$

139

 

$

(33

)

$

107

 

After-Tax DCP ABB Stock Expense (Benefit)

$

-

 

$

-

 

$

52

 

Core Net Income

$

6,874

 

$

4,806

 

$

5,428

 

 
Per Share Information:
Earnings Per Share - Basic

$

0.84

 

$

0.60

 

$

0.66

 

 
Earnings Per Share - Diluted

$

0.83

 

$

0.60

 

$

0.65

 

Core Earnings Per Share - Diluted

$

0.85

 

$

0.59

 

$

0.67

 

 
Weighted Average Shares - Basic

 

8,046,122

 

 

8,036,255

 

 

7,947,731

 

 
Weighted Average Shares - Diluted

 

8,097,354

 

 

8,122,355

 

 

8,079,466

 

American Business Bank
Figures in $000, except share and per share amounts
 
INCOME STATEMENTS (unaudited)
 
 
For the six months ended:

June

 

June

 

2020

 

 

 

2019

 

Interest Income:
Interest and Fees on Loans

$

36,464

 

$

30,922

 

Interest on Investment Securities

 

6,997

 

 

8,419

 

Interest on Interest Earning Deposits
in Other Financial Institutions

 

147

 

 

766

 

Total Interest Income

 

43,608

 

 

40,107

 

 
Interest Expense:
Interest on Interest Bearing Transaction Accounts

 

141

 

 

210

 

Interest on Money Market and Savings Deposits

 

1,505

 

 

1,763

 

Interest on Certificates of Deposits

 

69

 

 

221

 

Interest on Federal Home Loan Bank Advances
and Other Borrowings

 

131

 

 

14

 

Total Interest Expense

 

1,846

 

 

2,208

 

 
Net Interest Income

 

41,762

 

 

37,899

 

Provision for Loan Losses

 

2,114

 

 

1,018

 

Net Interest Income after Provision for Loan Losses

 

39,648

 

 

36,881

 

 
Non-Interest Income:
Deposit Fees

 

1,255

 

 

1,045

 

International Fees

 

527

 

 

513

 

Gain (Loss) on Sale of Investment Securities, Net

 

(137

)

 

(145

)

Gain on Sale of SBA Loans, Net

 

19

 

 

239

 

Bank/Corporate Owned Life Insurance Income (Expense)

 

203

 

 

647

 

Other

 

341

 

 

514

 

Total Non-Interest Income

 

2,208

 

 

2,813

 

 
Non-Interest Expense:
Salaries and Employee Benefits

 

17,603

 

 

18,017

 

Occupancy and Equipment

 

1,873

 

 

2,068

 

Professional Services

 

3,109

 

 

2,394

 

Promotion Expenses

 

633

 

 

586

 

Other

 

2,754

 

 

2,253

 

Total Non-Interest Expense

 

25,972

 

 

25,318

 

 
Earnings before income taxes

 

15,884

 

 

14,376

 

Income Tax Expense

 

4,310

 

 

3,706

 

 
NET INCOME

$

11,574

 

$

10,670

 

Add back:
After-Tax Net Gains (Losses) on Sale of Investment Securities

$

100

 

$

108

 

After-Tax DCP ABB Stock Expense (Benefit)

$

-

 

$

451

 

Core Net Income

$

11,674

 

$

11,229

 

 
Per Share Information:
Earnings Per Share - Basic

$

1.44

 

$

1.35

 

 
Earnings Per Share - Diluted

$

1.43

 

$

1.32

 

Core Earnings Per Share - Diluted

$

1.44

 

$

1.39

 

 
Weighted Average Shares - Basic

 

8,041,189

 

 

7,923,375

 

 
Weighted Average Shares - Diluted

 

8,109,855

 

 

8,068,298

 

American Business Bank
Figures in $000
 
QUARTERLY AVERAGE BALANCE SHEETS AND YIELD ANALYSIS (unaudited)
 
 
For the three months ended:
June 2020 March 2020
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

$

264,722

$

93

0.14

%

$

27,556

$

54

0.80

%

 
Investment Securities:
US Agencies

 

260,033

 

270

0.41

%

 

277,854

 

677

0.98

%

Mortgage Backed Securities

 

271,173

 

1,434

2.12

%

 

287,295

 

1,742

2.43

%

State and Municipals

 

178,378

 

1,196

2.68

%

 

166,727

 

1,121

2.69

%

US Treasuries

 

10,018

 

37

1.48

%

 

10,025

 

37

1.48

%

Corporate Bonds

 

19,908

 

147

2.95

%

 

19,947

 

150

3.00

%

Securities Available-for-Sale and Held-to-Maturity

 

739,510

 

3,084

1.67

%

 

761,848

 

3,727

1.96

%

Federal Home Loan Bank Stock

 

10,753

 

-

0.00

%

 

10,356

 

186

7.16

%

Total Investment Securities

 

750,263

 

3,084

1.64

%

 

772,204

 

3,913

2.03

%

Loans Receivable:
Commercial Real Estate

 

1,003,318

 

11,031

4.42

%

 

1,005,413

 

11,345

4.54

%

Commercial and Industrial

 

402,179

 

4,380

4.38

%

 

436,183

 

5,024

4.63

%

SBA Payroll Protection Program

 

539,535

 

2,994

2.23

%

 

-

 

-

0.00

%

Residential Real Estate

 

70,984

 

705

4.00

%

 

76,302

 

886

4.67

%

Installment and Other

 

5,037

 

59

4.75

%

 

5,649

 

40

2.88

%

Total Loans Receivable

 

2,021,053

 

19,169

3.81

%

 

1,523,547

 

17,295

4.57

%

Total Interest Earning Assets

$

3,036,038

$

22,346

2.91

%

$

2,323,307

$

21,262

3.62

%

 
Liabilities:
Non-Interest Bearing Demand Deposits

 

1,624,250

 

-

0.00

%

 

1,104,594

 

-

0.00

%

Interest Bearing Transaction Accounts

 

201,439

 

37

0.07

%

 

202,250

 

105

0.21

%

Money Market and Savings Deposits

 

1,027,292

 

538

0.21

%

 

807,134

 

968

0.48

%

Certificates of Deposit

 

35,614

 

28

0.31

%

 

36,427

 

41

0.46

%

Total Deposits

 

2,888,595

 

603

0.08

%

 

2,150,405

 

1,114

0.21

%

Federal Home Loan Bank Advances / Other Borrowings

 

-

 

-

0.00

%

 

31,714

 

131

1.66

%

Total Interest Bearing Deposits and Borrowings

 

1,264,345

 

603

0.19

%

 

1,077,525

 

1,245

0.46

%

Total Deposits and Borrowings

$

2,888,595

$

603

0.08

%

$

2,182,119

$

1,245

0.23

%

 
Net Interest Income

$

21,743

$

20,017

Net Interest Rate Spread

2.83

%

3.39

%

Net Interest Margin

2.88

%

3.47

%

Net Interest Margin, excluding SBA PPP

3.02

%

3.47

%

American Business Bank
Figures in $000
 
QUARTERLY AVERAGE BALANCE SHEETS AND YIELD ANALYSIS (unaudited)
 
 
For the three months ended:
June 2020 June 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

$

264,722

$

93

0.14

%

$

43,368

$

263

2.46

%

 
Investment Securities:
US Agencies

 

260,033

 

270

0.41

%

 

402,437

 

1,449

1.44

%

Mortgage Backed Securities

 

271,173

 

1,434

2.12

%

 

191,710

 

1,362

2.84

%

State and Municipals

 

178,378

 

1,196

2.68

%

 

163,565

 

1,096

2.68

%

US Treasuries

 

10,018

 

37

1.48

%

 

10,046

 

37

1.49

%

Corporate Bonds

 

19,908

 

147

2.95

%

 

2,720

 

24

3.46

%

Securities Available-for-Sale and Held-to-Maturity

 

739,510

 

3,084

1.67

%

 

770,478

 

3,968

2.06

%

Federal Home Loan Bank Stock

 

10,753

 

-

0.00

%

 

10,356

 

177

6.84

%

Total Investment Securities

 

750,263

 

3,084

1.64

%

 

780,834

 

4,145

2.12

%

Loans Receivable:
Commercial Real Estate

 

1,003,318

 

11,031

4.42

%

 

870,023

 

10,289

4.74

%

Commercial and Industrial

 

402,179

 

4,380

4.38

%

 

359,009

 

4,712

5.26

%

SBA Payroll Protection Program

 

539,535

 

2,994

2.23

%

 

-

 

-

0.00

%

Residential Real Estate

 

70,984

 

705

4.00

%

 

60,345

 

808

5.37

%

Installment and Other

 

5,037

 

59

4.75

%

 

4,996

 

36

2.88

%

Total Loans Receivable

 

2,021,053

 

19,169

3.81

%

 

1,294,373

 

15,845

4.91

%

Total Interest Earning Assets

$

3,036,038

$

22,346

2.91

%

$

2,118,575

$

20,253

3.78

%

 
Liabilities:
Non-Interest Bearing Demand Deposits

 

1,624,250

 

-

0.00

%

 

1,006,872

 

-

0.00

%

Interest Bearing Transaction Accounts

 

201,439

 

37

0.07

%

 

198,638

 

107

0.22

%

Money Market and Savings Deposits

 

1,027,292

 

538

0.21

%

 

723,827

 

956

0.53

%

Certificates of Deposit

 

35,614

 

28

0.31

%

 

69,674

 

116

0.67

%

Total Deposits

 

2,888,595

 

603

0.08

%

 

1,999,011

 

1,179

0.24

%

Federal Home Loan Bank Advances / Other Borrowings

 

-

 

-

0.00

%

 

2,049

 

14

2.66

%

Total Interest Bearing Deposits and Borrowings

 

1,264,345

 

603

0.19

%

 

994,188

 

1,193

0.48

%

Total Deposits and Borrowings

$

2,888,595

$

603

0.08

%

$

2,001,060

$

1,193

0.24

%

 
Net Interest Income

$

21,743

$

19,060

Net Interest Rate Spread

2.83

%

3.54

%

Net Interest Margin

2.88

%

3.61

%

Net Interest Margin, excluding SBA PPP

3.02

%

3.61

%

American Business Bank
Figures in $000
 
YEAR-TO-DATE AVERAGE BALANCE SHEETS AND YIELD ANALYSIS (unaudited)
 
 
For the six months ended:
June 2020 June 2019
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

$

146,139

$

147

0.20

%

$

62,591

$

766

2.48

%

 
Investment Securities:
US Agencies

 

268,943

 

946

0.70

%

 

418,032

 

3,206

1.53

%

Mortgage Backed Securities

 

279,234

 

3,177

2.28

%

 

170,005

 

2,481

2.92

%

State and Municipals

 

172,553

 

2,317

2.69

%

 

167,964

 

2,257

2.69

%

US Treasuries

 

10,022

 

74

1.48

%

 

10,049

 

74

1.48

%

Corporate Bonds

 

19,928

 

297

2.98

%

 

2,362

 

42

3.53

%

Securities Available-for-Sale and Held-to-Maturity

 

750,680

 

6,811

1.81

%

 

768,412

 

8,060

2.10

%

Federal Home Loan Bank Stock

 

10,554

 

186

3.52

%

 

10,356

 

359

6.94

%

Total Investment Securities

 

761,234

 

6,997

1.84

%

 

778,768

 

8,419

2.16

%

Loans Receivable:
Commercial Real Estate

 

1,004,366

 

22,374

4.48

%

 

850,748

 

19,944

4.73

%

Commercial and Industrial

 

419,181

 

9,404

4.51

%

 

356,349

 

9,311

5.27

%

SBA Payroll Protection Program

 

269,767

 

2,994

2.23

%

 

-

 

-

0.00

%

Residential Real Estate

 

73,643

 

1,592

4.35

%

 

60,138

 

1,596

5.35

%

Installment and Other

 

5,343

 

100

3.76

%

 

4,841

 

71

2.95

%

Total Loans Receivable

 

1,772,300

 

36,464

4.14

%

 

1,272,076

 

30,922

4.90

%

Total Interest Earning Assets

$

2,679,673

$

43,608

3.22

%

$

2,113,435

$

40,107

3.77

%

 
Liabilities:
Non-Interest Bearing Demand Deposits

 

1,364,422

 

-

0.00

%

 

1,001,486

 

-

0.00

%

Interest Bearing Transaction Accounts

 

201,845

 

141

0.14

%

 

198,723

 

210

0.21

%

Money Market and Savings Deposits

 

917,213

 

1,505

0.33

%

 

729,957

 

1,763

0.49

%

Certificates of Deposit

 

36,020

 

69

0.39

%

 

67,152

 

221

0.66

%

Total Deposits

 

2,519,500

 

1,715

0.14

%

 

1,997,318

 

2,194

0.22

%

Federal Home Loan Bank Advances / Other Borrowings

 

15,857

 

131

1.66

%

 

1,030

 

14

2.66

%

Total Interest Bearing Deposits and Borrowings

 

1,170,935

 

1,846

0.32

%

 

996,862

 

2,208

0.45

%

Total Deposits and Borrowings

$

2,535,357

$

1,846

0.15

%

$

1,998,348

$

2,208

0.22

%

 
Net Interest Income

$

41,762

$

37,899

Net Interest Rate Spread

3.07

%

3.55

%

Net Interest Margin

3.13

%

3.62

%

Net Interest Margin, excluding SBA PPP

3.23

%

3.62

%

American Business Bank
Figures in $000
 
SUPPLEMENTAL DATA (unaudited)
 
 
 

June

 

March

 

December

 

June

 

2020

 

 

 

2020

 

 

 

2019

 

 

 

2019

 

Performance Ratios:
Quarterly:
Return on Average Assets (ROAA)

 

0.86

%

 

0.80

%

 

0.99

%

 

0.95

%

Core Return on Average Assets (ROAA)

 

0.87

%

 

0.79

%

 

0.99

%

 

0.98

%

 
Return on Average Equity (ROAE)

 

12.14

%

 

9.15

%

 

11.74

%

 

11.74

%

Core Return on Average Equity (ROAE)

 

12.39

%

 

9.09

%

 

11.74

%

 

12.09

%

 
Efficiency Ratio

 

58.70

%

 

59.10

%

 

58.77

%

 

59.86

%

Core Efficiency Ratio

 

58.70

%

 

59.10

%

 

58.77

%

 

59.51

%

 
Year-to-Date
Return on Average Assets (ROAA)

 

0.83

%

 

0.80

%

 

0.97

%

 

0.97

%

Core Return on Average Assets (ROAA)

 

0.84

%

 

0.79

%

 

1.00

%

 

1.02

%

 
Return on Average Equity (ROAE)

 

10.68

%

 

9.15

%

 

11.80

%

 

12.29

%

Core Return on Average Equity (ROAE)

 

10.77

%

 

9.09

%

 

12.15

%

 

12.93

%

 
Efficiency Ratio

 

58.88

%

 

59.10

%

 

60.29

%

 

61.97

%

Core Efficiency Ratio

 

58.88

%

 

59.10

%

 

59.57

%

 

60.48

%

 
Capital Adequacy:
Total Risk Based Capital Ratio

 

14.64

%

 

13.71

%

 

13.82

%

 

14.37

%

Common Equity Tier 1 Capital Ratio

 

13.38

%

 

12.46

%

 

12.57

%

 

13.12

%

Tier 1 Risk Based Capital Ratio

 

13.38

%

 

12.46

%

 

12.57

%

 

13.12

%

Tier 1 Leverage Ratio

 

7.10

%

 

8.91

%

 

8.66

%

 

8.94

%

Tangible Common Equity / Tangible Assets

 

6.89

%

 

8.48

%

 

8.60

%

 

8.65

%

 
Asset Quality Overview
Non-Performing Loans

$

2,601

 

$

4,225

 

$

1,855

 

$

1,047

 

Loans 90+ Days Past Due and Still Accruing

 

-

 

 

-

 

 

-

 

 

-

 

Total Non-Performing Loans

 

2,601

 

 

4,225

 

 

1,855

 

 

1,047

 

 
Restructured Loans

 

223

 

 

225

 

 

227

 

 

231

 

 
Other Real Estate Owned

 

-

 

 

-

 

 

-

 

 

-

 

 
ALLL / Loans Receivable

 

1.05

%

 

1.42

%

 

1.40

%

 

1.40

%

Non-Performing Loans / Total Loans Receivable *

 

0.13

%

 

0.29

%

 

0.14

%

 

0.10

%

Non-Performing Loans / Total Loans Receivable *, excluding PPP **

 

0.19

%

 

0.29

%

 

0.14

%

 

0.10

%

Non-Performing Assets / Total Assets *

 

0.09

%

 

0.18

%

 

0.09

%

 

0.06

%

Non-Performing Assets / Total Assets *, excluding PPP **

 

0.11

%

 

0.18

%

 

0.09

%

 

0.06

%

Net Charge-Offs (Recoveries) quarterly

$

168

 

$

370

 

$

(8

)

$

(12

)

Net Charge-Offs (Recoveries) year-to-date

$

538

 

$

370

 

$

(41

)

$

(27

)

Net Charge-Offs (Recoveries) year-to-date / Average

 

0.03

%

 

0.02

%

 

0.00

%

 

0.00

%

Loans Receivable
 

*

Includes non-accrual loans, accruing loans past due 90+ days and Troubled Debt Restructurings (TDRs).

**

SBA Paycheck Protection Program (PPP)

 

American Business Bank Aktie jetzt ab 0€ handeln - auf Smartbroker.de



Diesen Artikel teilen

0 Kommentare

Schreibe Deinen Kommentar

Bitte melden Sie sich an, um zu kommentieren. Anmelden | Registrieren

 

Disclaimer

Meistgelesene Nachrichten des Autors

Titel
Titel
Titel
Titel