American Business Bank Reports Record Quarterly Core Loan Growth

AMERICAN BUSINESS BANK (OTCQX: AMBZ) today reported net income of $9.1 million or $1.00 per fully diluted share for the second quarter of 2021 compared to $8.9 million or $0.99 per fully diluted share for the first quarter of 2021, an increase of 2%. For the quarter ended June 30, 2021 net income associated with the PPP program was $4.3 million or $0.47 per fully diluted share, an increase of 20% compared to $3.6 million or $0.39 per fully diluted share for the first quarter of 2021.

“The Bank realized exceptional loan growth in the second quarter of 2021 at a 30% annualized rate primarily from new relationships. Growth was diversified in owner and non-owner occupied commercial real estate and C&I loans across all of the regional offices. Business momentum remains strong as new relationships join the Bank which will also drive core deposit growth. The Bank’s level of demonstrated high service resonates with entrepreneurial owners coming out of the pandemic as larger banks struggle to deliver. Additional loan growth allows the net interest income to grow despite continued compression to the net interest margin in this low rate environment.

“ABB’s high level of participation in the PPP program places the bank in the upper echelon in the entire U.S. as measured by PPP loans as a percentage of total loans. The timing of PPP loan forgiveness has met expectations, and income from the program has enabled ABB to step up our community support with planned funding of a small business grant program to benefit minority and women-owned businesses.

“Additionally, we remain true to our original value proposition and culture to help guide and bank the best small to middle market companies in Southern California. Our ability to not only be excellent bankers in all the traditional sense, of deposits and loans as well as consultants and stewards, delivers an unmatched banking relationship,” said Leon Blankstein, ABB’s President, CEO and Director.

Net interest income for the second quarter of 2021 was $27.1 million, an 11% increase over the first quarter of 2021 as realized deferred fees on PPP loans increased by $1.2 million driven by an increase in PPP loan forgiveness. Interest income on loans, excluding PPP loan income, increased by $1.1 million in the second quarter of 2021 compared to the first quarter of 2021 as loans, excluding PPP loans, increased by an average of $82 million. Additionally, during the second quarter of 2021, the Bank recovered $342,000 of interest on a nonaccrual loan and a previously charged off loan. Interest income on the securities portfolio increased by $504,000 in the second quarter of 2021 compared to the first quarter of 2021, as investment securities increased by an average of $80 million. For the quarters ending June 30, 2021 and March 31, 2021, the cost of deposits was 0.06%. For the quarter ending June 30, 2021, there was no provision for loan losses as the economy continues to improve and the Bank received a recovery on a previously charged off loan. The allowance for loan losses as a percentage of loans, excluding PPP loans, was 1.40% at June 30, 2021.

Net income was $18.0 million or $1.98 per fully diluted share for the six months ended June 30, 2021, compared to $11.6 million or $1.30 per fully diluted share for the six months ended June 30, 2020. The increase was primarily due to $6.9 million of accelerated realization of net deferred PPP processing fees on forgiven PPP loans, an increase in interest on investment securities of $1.8 million as a result of an increase in investment securities and no provision for loan losses. This additional income was offset by a $2 million nonrecurring legal settlement expense and a $1.8 million increase in salary and bonus expense.

Net Interest Margin

Net interest margin for the second quarter of 2021 was 3.00% compared to 2.92% in the first quarter of 2021 and 2.88% in the second quarter of 2020. Excluding the impact of PPP loans the net interest margin was 2.75% for the second quarter of 2021 and 2.82% for the first quarter of 2021. The recovery of interest on nonaccrual/charged off loans in the second quarter increased the net interest margin by 0.04% and the loan yield by 0.06%. Without the acceleration of fees on forgiveness, the yield on PPP loans was 1.46% for the second quarter of 2021. The decrease in the net interest margin excluding the impact of PPP loans compared to the prior year is due to a decline of the core loan yield to 4.12% offset by loan growth and an increase in investment securities. As of June 30, 2021, approximately 47% of the Bank’s variable-rate loans are indexed to prime and 76% of these loans are at or above interest rate floors.

Net Interest Income

Net interest income increased for the second quarter of 2021 compared to second quarter of 2020 by $5.4 million, or 25%, and increased compared to the first quarter of 2021 by $2.6 million, or 11%. This was primarily due to the accelerated realization of net deferred PPP processing fees as 40% and 18% of PPP loans originated in 2020 were forgiven in the second quarter of 2021 and the first quarter of 2021, respectively. The Bank received $342,000 of interest on a payoff of a nonaccrual loan and in a full recovery of a charged off loan.

(Figures in $000s, except per share amounts)		As of or For the Six Months Ended:						As of or For the Three Months Ended:
		June 2021			June 2020			June 2021			March 2021
PPP loans - first round, net		$	152,827		$	675,666		$	152,827		$	424,327
PPP loans - second round, net			233,561			-			233,561			217,780
PPP Total Loans, net		$	386,388		$	675,666		$	386,388		$	642,107
1% Coupon Interest		$	2,930		$	1,381		$	1,403		$	1,527
Amortized fees			1,288			1,613			620			668
Accelerated fees			6,891			-			4,046			2,845
Total PPP loan income		$	11,109		$	2,994		$	6,069		$	5,040
Total PPP loan income after tax		$	7,835		$	2,117		$	4,280		$	3,555
Total PPP loan income after tax per share - diluted		$	0.86		$	0.24		$	0.47		$	0.39

As of July 8, 2021, approximately 79% of PPP loan balances originated in 2020 have been forgiven, approximately 9% of balances are in the forgiveness review or submission process and approximately 12% of balances have yet to apply for forgiveness.

On a year-to-date basis, net interest income was $51.6 million for the six months ended June 30, 2021, compared to $41.8 million for the same period a year ago. The increase of $9.8 million or 24% is primarily due to the accelerated realization of net deferred PPP processing fees on forgiven PPP loans of $6.9 million and an increase in interest on investment securities of $1.8 million as a result of an increase in investment securities.

Non Interest Income

Fluctuations in non-interest income between quarter and year-to-date are primarily due to Bank/Corporate owned life insurance (BOLI) income as a result of the decrease in the value of the policies that are invested in mutual funds. On a year-to-date basis, deposit fees increased $252,000 from the period a year ago due to growth in commercial business customers and lower earnings credit.

Non Interest Expense

For the second quarter of 2021, total non-interest expense increased $2.5 million compared to the first quarter of 2021 and second quarter of 2020 primarily due to a $2 million expense for settlement of a legal matter and an increase in bonus expense as a result of higher loan production. The efficiency ratio increased/decreased to 58% for the second quarter of 2021 compared to 54% for the first quarter of 2021 and 59% for the second quarter of 2020.

Full time equivalent employees at June 30, 2021 were 192 compared to 195 a year ago. Full time equivalent employees were 192 at March 31, 2021. The Bank has 35 relationship managers in seven offices, an increase over the year of five and the prior quarter of one. The higher mix of relationship managers to back office personnel is the result of technology implementations that continue in 2021.

On a year-to-date basis, non-interest expense for the six months ended June 30, 2021 increased $4.4 million or 17% compared to the same period a year ago, due to the settlement of a legal matter, an increase in salaries and bonus expense reflective of higher loan growth and PPP1 forgiveness with added expense for the deferred compensation plan (DCP) as a result of the market performance of DCP investment balances.

Balance Sheet

Total assets increased $27 million, or 1% from March 31, 2021 to $3.7 billion. Total loans, excluding PPP loans, increased $118 million, to $1.7 billion from the first quarter of 2021 as CRE loans increased by $56 million, C&I loan growth and line utilization increased by $37 million and residential real estate loans increased by $25 million. At June 30, 2021, the utilization rate for the Bank’s commercial lines of credit was 27% compared to 24% at March 31, 2021. Investment securities increased by $214 million from the first quarter of 2021 to $1.3 billion. During the second quarter, the Bank designated $73 million of municipal bonds from available-for-sale to held-to-maturity to reduce volatility to equity in a rising rate environment. The duration of the securities portfolio declined from 4.7 to 4.5 years from March 31, 2021 to June 30, 2021.

At June 30, 2021, the tangible common equity ratio was 7.0%; excluding PPP loans, the tangible common equity ratio was 7.9%.

On June 23, 2021, the Bank declared a ten percent stock dividend per common share to be payable on July 22, 2021 to shareholders of record at the close of business on June 23, 2021.

Asset Quality

Non-performing assets declined to $54,000 at June 30, 2021 from $2.2 million at March 31, 2021, representing 0.01% of total assets (excluding PPP loans). The Bank continues to have no Other Real Estate Owned. Loans that were past due, criticized and classifieds represented 0.00%, 4.24%, and 0.68%, respectively of total loans at June 30, 2021 compared to 0.00%, 6.02%, and 0.98%, respectively of total loans at March 31, 2021 (excluding PPP loans in all periods). As of June 30, 2021, the Bank had total specific reserve of $52,000 related to one $214,000 impaired loan relationship. As of June 30, 2021, the allowance for loan losses totaled $23.3 million, or 1.40% of total loans (excluding PPP loans); compared to 1.48% at March 31, 2021. 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. During the second quarter of 2021, the Bank recorded no loan charge-offs and recoveries of $395,000.

In response to the COVID-19 pandemic, the Bank established a loan payment deferment program to assist its customers who are experiencing short-term financial or operational problems. As of June 30, 2021, there were no loans on a loan payment deferment program. As of March 31, 2021, there were five loans with a total principal balance of $11.2 million (0.5% of total loans) on a loan payment deferment program subsequently all have made their payments.

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)
		June				March				December				June
		2021				2021				2020				2020
Assets:
Cash and Due from Banks		$	74,242			$	38,637			$	44,334			$	68,072
Interest Earning Deposits in Other Financial Institutions			269,596				350,354				201,719				232,770
Investment Securities:
US Agencies			210,849				218,794				228,102				240,012
Mortgage Backed Securities			577,726				407,651				419,393				313,119
State and Municipals			213,729				270,161				279,045				133,128
US Treasuries			-				-				-				10,081
Corporate Bonds			10,966				8,848				12,725				19,502
Securities Available-for-Sale, at Fair Value			1,013,270				905,454				939,265				715,842
State and Municipals Securities Held-to-Maturity, at Amortized Cost			255,953				151,041				143,229				86,289
Federal Home Loan Bank Stock, at Cost			11,779				10,864				10,864				10,864
Total Investment Securities			1,281,002				1,067,359				1,093,358				812,995
Loans Receivable:
Commercial Real Estate			1,193,612				1,137,493				1,095,811				1,007,655
Commercial and Industrial			364,019				327,519				333,021				370,786
SBA Payroll Protection Program			386,388				642,107				551,190				675,666
Residential Real Estate			105,711				80,686				76,483				71,112
Installment and Other			4,261				4,212				4,405				6,039
Total Loans Receivable			2,053,991				2,192,017				2,060,910				2,131,258
Allowance for Loan Losses			(23,341	)			(22,946	)			(22,931	)			(22,399	)
Loans Receivable, Net			2,030,650				2,169,071				2,037,979				2,108,859
Furniture, Equipment and Leasehold Improvements, Net			7,074				7,472				7,857				8,520
Bank/Corporate Owned Life Insurance			28,325				28,070				27,738				26,651
Other Assets			41,440				44,247				41,277				37,396
Total Assets		$	3,732,329			$	3,705,210			$	3,454,262			$	3,295,263
Liabilities:
Non-Interest Bearing Demand Deposits		$	1,830,832			$	1,855,756			$	1,686,091			$	1,684,662
Interest Bearing Transaction Accounts			257,726				260,610				258,950				204,133
Money Market and Savings Deposits			1,311,603				1,270,228				1,191,591				1,100,191
Certificates of Deposit			34,543				34,267				35,778				35,713
Total Deposits			3,434,704				3,420,861				3,172,410				3,024,699
Federal Home Loan Bank Advances / Other Borrowings			-				-				-				-
Other Liabilities			35,031				36,265				34,014				43,206
Total Liabilities		$	3,469,735			$	3,457,126			$	3,206,424			$	3,067,905
Shareholders' Equity:
Common Stock		$	200,904			$	166,956			$	166,263			$	165,032
Retained Earnings			60,337				84,473				75,557				58,359
Accumulated Other Comprehensive Income / (Loss)			1,353				(3,345	)			6,018				3,967
Total Shareholders' Equity		$	262,594			$	248,084			$	247,838			$	227,358
Total Liabilities and Shareholders' Equity		$	3,732,329			$	3,705,210			$	3,454,262			$	3,295,263
Standby Letters of Credit		$	33,184			$	32,115			$	33,469			$	37,259
Per Share Information:
Common Shares Outstanding			8,799,072				8,775,324				8,736,605				8,694,516
Book Value Per Share		$	29.84			$	28.27			$	28.37			$	26.15
Tangible Book Value Per Share		$	29.84			$	28.27			$	28.37			$	26.15

*	All per share amounts and number of shares outstanding have the 10% stock dividend retroactively applied

American Business Bank
Figures in $000, except share and per share amounts
INCOME STATEMENTS (unaudited)
		For the three months ended:
		June			March				June
		2021			2021				2020
Interest Income:
Interest and Fees on Loans		$	22,861		$	20,774			$	19,169
Interest on Investment Securities			4,626			4,122				3,084
Interest on Interest Earning Deposits in Other Financial Institutions			99			66				93
Total Interest Income			27,586			24,962				22,346
Interest Expense:
Interest on Interest Bearing Transaction Accounts			40			41				37
Interest on Money Market and Savings Deposits			426			414				538
Interest on Certificates of Deposits			12			14				28
Interest on Federal Home Loan Bank Advances and Other Borrowings			-			-				-
Total Interest Expense			478			469				603
Net Interest Income			27,108			24,493				21,743
Provision for Loan Losses			-			-				680
Net Interest Income after Provision for Loan Losses			27,108			24,493				21,063
Non-Interest Income:
Deposit Fees			763			745				640
International Fees			260			263				244
Gain (Loss) on Sale of Investment Securities, Net			-			(15	)			(184	)
Gain on Sale of SBA Loans, Net			-			-				-
Bank/Corporate Owned Life Insurance Income (Expense)			255			332				953
Other			192			202				143
Total Non-Interest Income			1,470			1,527				1,796
Non-Interest Expense:
Salaries and Employee Benefits			10,231			9,663				9,384
Occupancy and Equipment			1,151			1,146				953
Professional Services			1,560			1,703				1,627
Promotion Expenses			297			222				267
Other			3,226			1,200				1,693
Total Non-Interest Expense			16,465			13,934				13,924
Earnings before income taxes			12,113			12,086				8,935
Income Tax Expense			3,054			3,170				2,200
NET INCOME		$	9,059		$	8,916			$	6,735
Add back:
After-Tax Gain (Loss) on Sale of Investment Securities, Net		$	-		$	11			$	139
Core Net Income		$	9,059		$	8,927			$	6,874
Per Share Information:
Earnings Per Share - Basic		$	1.01		$	1.00			$	0.76
Earnings Per Share - Diluted		$	1.00		$	0.99			$	0.76
Core Earnings Per Share - Diluted		$	1.00		$	0.99			$	0.77
Weighted Average Shares - Basic			8,961,797			8,921,941				8,850,734
Weighted Average Shares - Diluted			9,095,569			9,033,128				8,907,089

*	All per share amounts and number of shares outstanding have the 10% stock dividend retroactively applied

American Business Bank
Figures in $000, except share and per share amounts
INCOME STATEMENTS (unaudited)
		For the six months ended:
		June				June
		2021				2020
Interest Income:
Interest and Fees on Loans		$	43,635			$	36,464
Interest on Investment Securities			8,748				6,997
Interest on Interest Earning Deposits in Other Financial Institutions			165				147
Total Interest Income			52,548				43,608
Interest Expense:
Interest on Interest Bearing Transaction Accounts			81				141
Interest on Money Market and Savings Deposits			840				1,505
Interest on Certificates of Deposits			26				69
Interest on Federal Home Loan Bank Advances and Other Borrowings			-				131
Total Interest Expense			947				1,846
Net Interest Income			51,601				41,762
Provision for Loan Losses			-				2,114
Net Interest Income after Provision for Loan Losses			51,601				39,648
Non-Interest Income:
Deposit Fees			1,507				1,255
International Fees			523				527
Gain (Loss) on Sale of Investment Securities, Net			(15	)			(137	)
Gain on Sale of SBA Loans, Net			-				19
Bank/Corporate Owned Life Insurance Income (Expense)			587				203
Other			394				341
Total Non-Interest Income			2,996				2,208
Non-Interest Expense:
Salaries and Employee Benefits			19,893				17,603
Occupancy and Equipment			2,297				1,873
Professional Services			3,263				3,108
Promotion Expenses			519				633
Other			4,426				2,755
Total Non-Interest Expense			30,398				25,972
Earnings before income taxes			24,199				15,884
Income Tax Expense			6,224				4,310
NET INCOME		$	17,975			$	11,574
Add back:
After-Tax Gain (Loss) on Sale of Investment Securities, Net		$	11			$	100
Core Net Income		$	17,986			$	11,674
Per Share Information:
Earnings Per Share - Basic		$	2.01			$	1.31
Earnings Per Share - Diluted		$	1.98			$	1.30
Core Earnings Per Share - Diluted		$	1.98			$	1.31
Weighted Average Shares - Basic			8,941,869				8,845,307
Weighted Average Shares - Diluted			9,064,349				8,920,840

*	All per share amounts and number of shares outstanding have the 10% stock dividend retroactively applied

American Business Bank
Figures in $000
QUARTERLY AVERAGE BALANCE SHEETS AND YIELD ANALYSIS (unaudited)
		For the three months ended:
		June 2021									March 2021
		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		$	329,324		$	99		0.12%			$	216,373		$	66		0.12%
Investment Securities:
US Agencies			216,143			383		0.71%				225,144			408		0.72%
Mortgage Backed Securities			466,148			1,565		1.34%				398,884			1,229		1.23%
State and Municipals			435,608			2,394		2.20%				414,773			2,267		2.19%
US Treasuries			-			-		0.00%				-			-		0.00%
Corporate Bonds			10,085			82		3.25%				10,273			82		3.20%
Securities Available-for-Sale and Held-to-Maturity			1,127,984			4,424		1.57%				1,049,074			3,986		1.52%
Federal Home Loan Bank Stock			11,628			202		6.95%				10,864			136		5.01%
Total Investment Securities			1,139,612			4,626		1.62%				1,059,938			4,122		1.56%
Loans Receivable:
Commercial Real Estate			1,163,231			11,944		4.12%				1,105,890			11,463		4.20%
Commercial and Industrial			340,067			3,921		4.62%				330,778			3,462		4.24%
SBA Payroll Protection Program			555,338			6,069		4.38%				609,638			5,040		3.35%
Residential Real Estate			93,126			889		3.83%				78,034			758		3.94%
Installment and Other			5,613			38		2.75%				4,957			51		4.15%
Total Loans Receivable			2,157,375			22,861		4.25%				2,129,297			20,774		3.96%
Total Interest Earning Assets		$	3,626,311		$	27,586		3.01%			$	3,405,608		$	24,962		2.93%
Liabilities:
Non-Interest Bearing Demand Deposits			1,871,930			-		0.00%				1,730,626			-		0.00%
Interest Bearing Transaction Accounts			267,490			40		0.06%				255,416			41		0.07%
Money Market and Savings Deposits			1,278,436			426		0.13%				1,223,414			414		0.14%
Certificates of Deposit			34,446			12		0.14%				34,865			14		0.16%
Total Deposits			3,452,302			478		0.06%				3,244,321			469		0.06%
Federal Home Loan Bank Advances / Other Borrowings			7			-		0.37%				-			-		0.00%
Total Interest Bearing Deposits and Borrowings			1,580,379			478		0.12%				1,513,695			469		0.13%
Total Deposits and Borrowings		$	3,452,309		$	478		0.06%			$	3,244,321		$	469		0.06%
Net Interest Income					$	27,108								$	24,493
Net Interest Rate Spread								2.95%									2.87%
Net Interest Margin								3.00%									2.92%
Net Interest Margin, excluding SBA PPP								2.75%									2.82%

American Business Bank
Figures in $000
QUARTERLY AVERAGE BALANCE SHEETS AND YIELD ANALYSIS (unaudited)
		For the three months ended:
		June 2021									June 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		$	329,324		$	99		0.12%			$	264,722		$	93		0.14%
Investment Securities:
US Agencies			216,143			383		0.71%				260,033			270		0.41%
Mortgage Backed Securities			466,148			1,565		1.34%				271,173			1,434		2.12%
State and Municipals			435,608			2,394		2.20%				174,950			1,196		2.73%
US Treasuries			-			-		0.00%				10,018			37		1.48%
Corporate Bonds			10,085			82		3.25%				19,908			147		2.95%
Securities Available-for-Sale and Held-to-Maturity			1,127,984			4,424		1.57%				736,082			3,084		1.68%
Federal Home Loan Bank Stock			11,628			202		6.95%				10,753			-		0.00%
Total Investment Securities			1,139,612			4,626		1.62%				746,835			3,084		1.65%
Loans Receivable:
Commercial Real Estate			1,163,231			11,944		4.12%				1,003,318			11,031		4.42%
Commercial and Industrial			340,067			3,921		4.62%				402,179			4,380		4.38%
SBA Payroll Protection Program			555,338			6,069		4.38%				539,535			2,994		2.23%
Residential Real Estate			93,126			889		3.83%				70,984			705		4.00%
Installment and Other			5,613			38		2.75%				5,037			59		4.75%
Total Loans Receivable			2,157,375			22,861		4.25%				2,021,053			19,169		3.81%
Total Interest Earning Assets		$	3,626,311		$	27,586		3.01%			$	3,032,610		$	22,346		2.91%
Liabilities:
Non-Interest Bearing Demand Deposits			1,871,930			-		0.00%				1,624,250			-		0.00%
Interest Bearing Transaction Accounts			267,490			40		0.06%				201,439			37		0.07%
Money Market and Savings Deposits			1,278,436			426		0.13%				1,027,292			538		0.21%
Certificates of Deposit			34,446			12		0.14%				35,614			28		0.31%
Total Deposits			3,452,302			478		0.06%				2,888,595			603		0.08%
Federal Home Loan Bank Advances / Other Borrowings			7			-		0.37%				-			-		0.00%
Total Interest Bearing Deposits and Borrowings			1,580,379			478		0.12%				1,264,345			603		0.19%
Total Deposits and Borrowings		$	3,452,309		$	478		0.06%			$	2,888,595		$	603		0.08%
Net Interest Income					$	27,108								$	21,743
Net Interest Rate Spread								2.95%									2.83%
Net Interest Margin								3.00%									2.88%
Net Interest Margin, excluding SBA PPP								2.75%									3.02%

American Business Bank
Figures in $000
YEAR-TO-DATE AVERAGE BALANCE SHEETS AND YIELD ANALYSIS (unaudited)
		For the six months ended:
		June 2021									June 2020
		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		$	273,160		$	165		0.12%			$	146,139		$	147		0.20%
Investment Securities:
US Agencies			220,619			790		0.72%				268,943			946		0.70%
Mortgage Backed Securities			432,702			2,794		1.29%				279,234			3,177		2.28%
State and Municipals			425,248			4,662		2.19%				169,050			2,317		2.74%
US Treasuries			-			-		0.00%				10,022			74		1.48%
Corporate Bonds			10,179			164		3.23%				19,928			297		2.98%
Securities Available-for-Sale and Held-to-Maturity			1,088,748			8,410		1.54%				747,177			6,811		1.82%
Federal Home Loan Bank Stock			11,248			338		6.01%				10,554			186		3.52%
Total Investment Securities			1,099,996			8,748		1.59%				757,731			6,997		1.85%
Loans Receivable:
Commercial Real Estate			1,134,719			23,405		4.16%				1,004,366			22,374		4.48%
Commercial and Industrial			335,448			7,383		4.44%				419,181			9,404		4.51%
SBA Payroll Protection Program			582,338			11,110		3.85%				269,767			2,994		2.23%
Residential Real Estate			85,622			1,648		3.88%				73,643			1,592		4.35%
Installment and Other			5,287			89		3.40%				5,343			100		3.76%
Total Loans Receivable			2,143,414			43,635		4.11%				1,772,300			36,464		4.14%
Total Interest Earning Assets		$	3,516,570		$	52,548		2.97%			$	2,676,170		$	43,608		3.22%
Liabilities:
Non-Interest Bearing Demand Deposits			1,801,668			-		0.00%				1,364,422			-		0.00%
Interest Bearing Transaction Accounts			261,487			81		0.06%				201,845			141		0.14%
Money Market and Savings Deposits			1,251,077			840		0.14%				917,213			1,505		0.33%
Certificates of Deposit			34,654			26		0.15%				36,020			69		0.39%
Total Deposits			3,348,886			947		0.06%				2,519,500			1,715		0.14%
Federal Home Loan Bank Advances / Other Borrowings			4			-		0.37%				15,857			131		1.66%
Total Interest Bearing Deposits and Borrowings			1,547,222			947		0.12%				1,170,935			1,846		0.32%
Total Deposits and Borrowings		$	3,348,890		$	947		0.06%			$	2,535,357		$	1,846		0.15%
Net Interest Income					$	51,601								$	41,762
Net Interest Rate Spread								2.91%									3.07%
Net Interest Margin								2.96%									3.14%
Net Interest Margin, excluding SBA PPP								2.78%									3.24%

American Business Bank
Figures in $000
SUPPLEMENTAL DATA (unaudited)
		June			March			December			June
		2021			2021			2020			2020
Performance Ratios:
Quarterly:
Return on Average Assets (ROAA)			0.97%			1.01%			1.08%			0.86%
Core Return on Average Assets (ROAA)			0.97%			1.01%			1.08%			0.87%
Return on Average Equity (ROAE)			14.21%			14.32%			15.57%			12.14%
Core Return on Average Equity (ROAE)			14.21%			14.34%			15.57%			12.39%
Efficiency Ratio			57.61%			53.52%			53.70%			58.70%
Year-to-Date
Return on Average Assets (ROAA)			0.99%			1.01%			0.93%			0.83%
Core Return on Average Assets (ROAA)			0.99%			1.01%			0.93%			0.84%
Return on Average Equity (ROAE)			14.26%			14.32%			12.70%			10.68%
Core Return on Average Equity (ROAE)			14.27%			14.34%			12.76%			10.77%
Efficiency Ratio			55.66%			53.52%			56.40%			58.88%
Core Efficiency Ratio			55.66%			53.52%			56.40%			58.88%
Capital Adequacy:
Total Risk Based Capital Ratio			14.26%			14.85%			14.65%			14.64%
Common Equity Tier 1 Capital Ratio			13.01%			13.60%			13.40%			13.38%
Tier 1 Risk Based Capital Ratio			13.01%			13.60%			13.40%			13.38%
Tier 1 Leverage Ratio			6.98%			7.13%			6.98%			7.10%
Tangible Common Equity / Tangible Assets			7.04%			6.70%			7.17%			6.90%
Asset Quality Overview
Non-Performing Loans		$	54		$	2,172		$	2,405		$	2,601
Loans 90+ Days Past Due and Still Accruing			-			-			-			-
Total Non-Performing Loans			54			2,172			2,405			2,601
Restructured Loans			214			216			218			223
Other Real Estate Owned			-			-			-			-
ALLL / Loans Receivable			1.14%			1.05%			1.11%			1.05%
Non-Performing Loans / Total Loans Receivable *			0.01%			0.11%			0.13%			0.13%
Non-Performing Loans / Total Loans Receivable *, excluding PPP **			0.02%			0.15%			0.17%			0.19%
Non-Performing Assets / Total Assets *			0.01%			0.06%			0.08%			0.09%
Non-Performing Assets / Total Assets *, excluding PPP **			0.01%			0.08%			0.09%			0.11%
Net Charge-Offs (Recoveries) quarterly		$	(395)		$	(16)		$	(21)		$	168
Net Charge-Offs (Recoveries) year-to-date		$	(411)		$	(16)		$	457		$	538
Net Charge-Offs (Recoveries) year-to-date / Average Loans Receivable			-0.02%			0.00%			0.02%			0.03%

*	Includes non-accrual loans, accruing loans past due 90+ days and Troubled Debt Restructurings (TDRs).
**	SBA Paycheck Protection Program (PPP)

 

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