American Business Bank Reports Record Quarterly Income

AMERICAN BUSINESS BANK (OTCQX: AMBZ) today reported net income of $11.5 million or $1.29 per fully diluted share for the third quarter of 2021 compared to $9.1 million or $1.00 per fully diluted share for the second quarter of 2021, an increase of 27%. For the quarter ended September 30, 2021 net income associated with the PPP program was $3.3 million or $0.37 per fully diluted share, a decrease of 23% compared to $4.3 million or $0.47 per fully diluted share for the second quarter of 2021.

“The third quarter of 2021 was characterized by significant core loan and deposit growth, increased net interest income, tangible book value growth and continued strong credit quality. We are pleased with our results as we near $4 billion in assets, going above and beyond for our business customers.

“The Bank experienced significant core loan growth, excluding PPP loans, of 23% on an annualized basis in the third quarter of 2021, including growth in its commercial real estate and commercial and industrial lending portfolios. Growth was particularly strong in the commercial loan portfolio due to new customer relationships and an increase in line of credit utilization. This double digit growth is following last quarter’s record core loan growth. We are confident that we can continue to grow loans given our robust loan pipeline and diversified production efforts across all our regional offices.

“Net interest income increased by $0.9 million in the third quarter of 2021, excluding PPP accelerated fees, compared to the prior year quarter primarily due to core loan growth. This demonstrates that our strategy of providing market leading service to businesses continues to resonate in the market with prospective customers as new relationships join the Bank to replace PPP loans. Especially noteworthy this quarter was the increase in the net interest margin, excluding accelerated PPP fees and second quarter non-recurring interest benefits. The balance sheet remains asset sensitive which should allow net interest income and net interest margin to benefit from future increases in interest rates.

“Our grant program to benefit minority and women-owned businesses started in September with educational business classes sponsored by the Bank with additional grant money to be disbursed later this year.

“We are focused on taking advantage of market opportunities to prudently deploy excess liquidity into core loan relationships supplemented by investment securities while remaining cognizant of the potential impact of changes to interest rates,” commented Leon Blankstein, ABB's President, CEO, and Director.

For the quarter ending September 30, 2021, net interest income was $27.9 million, a 3% increase over the second quarter of 2021 as interest income on the securities portfolio increased by $1.1 million as the securities portfolio increased by an average of $217 million. Interest income on core loans increased by $1 million in the third quarter of 2021 compared to the second quarter of 2021 as core loans increased by an average of $112 million. Interest income on PPP loans decreased by $1.4 million in the third quarter of 2021 compared to the second quarter of 2021 as PPP loans and associated fees declined. For the quarter ending September 30, 2021, the cost of deposits was 0.05% representing a decrease of 0.01% compared to the quarter ending June 30, 2021.

For the quarter ending September 30, 2021, the provision for loan losses was $468,000. The allowance for loan losses as a percentage of loans, excluding PPP loans, was 1.33% at September 30, 2021.

For the nine months ending September 30, 2021, net income was $29.5 million or $3.27 per fully diluted share, compared to $19.5 million or $2.18 per fully diluted share for the nine months ended September 30, 2020. The increase was primarily due to $10.5 million of acceleration of net deferred PPP processing fees on forgiven PPP loans and a $3.4 million increase in interest on investment securities. This additional income was offset by a $2 million nonrecurring legal settlement and a $2 million increase in salary and bonus expenses.

Net Interest Margin

Net interest margin for the third quarter of 2021 was 2.94% compared to 3.00% in the second quarter of 2021 and 2.89% in the third quarter of 2020. Excluding the impact of PPP loans, the net interest margin was 2.64% for the third quarter of 2021 and 2.75% for the second quarter of 2021. Without the acceleration of fees on forgiveness, the yield on PPP loans was 1.54% for the third quarter of 2021. The recovery of interest on nonaccrual/charged off loans in the second quarter benefitted that quarter’s net interest margin by 0.04% and the loan yield by 0.06%. As of September 30, 2021, approximately 46% of the Bank’s variable-rate loans are indexed to prime and 79% of these loans are at or above interest rate floors.

Net Interest Income

For the quarter ending September 30, 2021, net interest income increased by $750,000, or 3%, compared to the second quarter of 2021 and $4.5 million, or 19%, compared to the quarter ending September 30, 2020. This was primarily due to growth in core loans and investment securities supplemented by the accelerated realization of net deferred PPP processing fees.

(Figures in $000s, except per share amounts)		As of or For the Nine Months Ended:						As of or For the Three Months Ended:
		September 2021			September 2020			September 2021			June 2021
PPP loans - first round, net		$	18,741		$	688,336		$	18,741		$	152,827
PPP loans - second round, net			169,564			-			169,564			233,561
PPP Total Loans, net		$	188,305		$	688,336		$	188,305		$	386,388
1% Coupon Interest		$	3,669		$	3,141		$	738		$	1,403
Amortized fees			1,671			3,691			382			620
Accelerated fees			10,471			-			3,580			4,046
Total PPP loan income		$	15,811		$	6,832		$	4,700		$	6,069
Total PPP loan income after tax		$	11,151		$	4,830		$	3,315		$	4,280
Total PPP loan income after tax per share - diluted		$	1.24		$	0.54		$	0.37		$	0.47

As of September 30, 2021, approximately 96% of PPP loans originated in 2020 and 30% of PPP loans originated in 2021 have been forgiven. Of the remaining PPP loans originated in 2020 and 2021, approximately 6% are in the forgiveness review or submission process.

For the nine months ended September 30, 2021, net interest income was $79.5 million compared to $65.1 million for the same period a year ago. The increase of $14.3 million, or 22%, is primarily due to the acceleration of $10.5 million of net deferred PPP processing fees and a $3.4 million increase in interest on investment securities.

Non Interest Income

The increases in non-interest income for the quarter and year-to-date periods are primarily due to deposit fees as a result of new commercial business customers and lower earnings credit. On a year-to-date basis, Bank/Corporate owned life insurance (BOLI) income increased by $241,000 as a result of the increase in the value of the policies that are invested in mutual funds.

Non Interest Expense

For the quarter ending September 30, 2021, total non-interest expense decreased $3.1 million compared to the prior quarter primarily due to a $2 million legal settlement and higher bonus expenses tied to loan production that were recorded in the second quarter. Total non-interest expense decreased by $271,000 in the third quarter of 2021 compared to the third quarter of 2020 reflecting reimbursed legal fees of $257,000 in the third quarter of 2021. The efficiency ratio, excluding PPP accelerated fees, decreased to 52% for the third quarter compared to 67% for the second quarter of 2021 and 55% for the third quarter of 2020.

There were 202 full time equivalent employees at September 30, 2021 compared to 193 a year ago and 192 at June 30, 2021. The Bank has 37 relationship managers in eight offices representing an increase of five from a year ago and two from the prior quarter. Other increases in FTE are primarily to support the growing loan portfolio.

For the nine months ending September 30, 2021, non-interest expense increased $4.2 million or 10.5% compared to the same period a year ago primarily due to the $2 million legal settlement and higher bonus expenses tied to loan production and PPP1 forgiveness that were recorded in the first half of the year.

Balance Sheet

From June 30, 2021 to September 30, 2021, total assets increased $171 million, or 5%, total deposits increased $156 million, or 5% and total loans, excluding PPP loans, increased $103 million, or 6%. During the third quarter of 2021, CRE loans, primarily owner-occupied, increased by $67 million, C&I loans benefitting from higher line utilization increased by $26 million and residential real estate loans increased by $9 million. At September 30, 2021, the utilization rate for the Bank’s commercial lines of credit was 29% compared to 27% at June 30, 2021. Investment securities increased by $232 million from the second quarter of 2021 to $1.5 billion. As of September 30, 2021, the duration of the securities portfolio declined to 4.4 years.

At September 30, 2021, the tangible common equity ratio was 7.0%; excluding PPP loans, the tangible common equity ratio was 7.36%.

Asset Quality

The following table presents asset quality overview as of the dates indicated:

	September 30, 2021				June 30, 2021				Increase (Decrease)
(Figures in $000s)
Non-performing assets (NPA)	$	349			$	268			$	81
Loans 90+ Days Past Due and Still Accruing		-				-				-
Total NPA	$	349			$	268			$	81
NPA as a % of total assets, excluding PPP		0.01	%			0.01	%
Past Due as a % of total Loans, excluding PPP		0.06	%			0.00	%
Criticized as a % of total Loans, excluding PPP		3.64	%			4.24	%
Classified as a % of total Loans, excluding PPP		0.14	%			0.68	%

As of September 30, 2021, the Bank had total specific reserve of $11,000 related to one $350,000 impaired SBA loan relationship.

The following table represents the allowance for loan losses as of and for the dates and periods indicated:

	September 30, 2021				June 30, 2021
(Figures in $000s)
Beginning Balance	$	23,341			$	22,946
Charge-offs		(278	)			-
Recoveries		19				395
Net (charge-offs) / recoveries	$	(259	)		$	395
Provision		468				-
Ending Balance	$	23,550			$	23,341
Allowance as a % of total assets, excluding PPP		1.33	%			1.40	%

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 third quarter of 2021, the Bank recorded loan charge-offs with the largest related to the prior quarter TDR. There are no loans on a loan payment deferment program.

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 seven 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, Inland Empire in Ontario and LA Coastal in Long Beach.

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)
				September				June				December				September
					2021				2021				2020				2020
Assets:
Cash and Due from Banks				$	77,145			$	74,242			$	44,334			$	69,786
Interest Earning Deposits in Other Financial Institutions					301,265				269,596				201,719				64,660
Investment Securities:
US Agencies					198,886				210,849				228,102				230,637
Mortgage Backed Securities					771,601				577,726				419,393				359,974
State and Municipals					233,630				213,729				279,045				243,933
US Treasuries					-				-				-				10,044
Corporate Bonds					12,966				10,966				12,725				12,480
Securities Available-for-Sale, at Fair Value					1,217,083				1,013,270				939,265				857,068
State and Municipals Securities Held-to-Maturity, at Amortized Cost					284,166				255,953				143,229				91,717
Federal Home Loan Bank Stock, at Cost					11,779				11,779				10,864				10,864
Total Investment Securities					1,513,028				1,281,002				1,093,358				959,649
Loans Receivable:
Commercial Real Estate					1,260,887				1,193,612				1,095,811				1,047,100
Commercial and Industrial					389,683				364,019				333,021				362,258
SBA Payroll Protection Program					188,305				386,388				551,190				688,336
Residential Real Estate					115,349				105,711				76,483				74,170
Installment and Other					4,738				4,261				4,405				4,131
Total Loans Receivable					1,958,962				2,053,991				2,060,910				2,175,995
Allowance for Loan Losses					(23,550	)			(23,341	)			(22,931	)			(22,910	)
Loans Receivable, Net					1,935,412				2,030,650				2,037,979				2,153,085
Furniture, Equipment and Leasehold Improvements, Net					6,750				7,074				7,857				8,145
Bank/Corporate Owned Life Insurance					28,543				28,325				27,738				27,013
Other Assets					40,709				41,440				41,277				39,041
Total Assets				$	3,902,852			$	3,732,329			$	3,454,262			$	3,321,379
Liabilities:
Non-Interest Bearing Demand Deposits				$	1,919,131			$	1,830,832			$	1,686,091			$	1,658,673
Interest Bearing Transaction Accounts					261,887				257,726				258,950				228,585
Money Market and Savings Deposits					1,371,834				1,311,603				1,191,591				1,124,329
Certificates of Deposit					38,040				34,543				35,778				36,981
Total Deposits					3,590,892				3,434,704				3,172,410				3,048,568
Federal Home Loan Bank Advances / Other Borrowings					-				-				-				-
Other Liabilities					38,436				35,031				34,014				36,822
Total Liabilities				$	3,629,328			$	3,469,735			$	3,206,424			$	3,085,390
Shareholders' Equity:
Common Stock				$	201,625			$	200,904			$	166,263			$	165,789
Retained Earnings					71,858				60,337				75,557				66,233
Accumulated Other Comprehensive Income / (Loss)					41				1,353				6,018				3,967
Total Shareholders' Equity				$	273,524			$	262,594			$	247,838			$	235,989
Total Liabilities and Shareholders' Equity				$	3,902,852			$	3,732,329			$	3,454,262			$	3,321,379
Standby Letters of Credit				$	33,935			$	33,184			$	33,469			$	35,131
Per Share Information:
Common Shares Outstanding					8,817,409				8,799,072				8,736,605				8,719,516
Book Value Per Share				$	31.02			$	29.84			$	28.37			$	27.06
Tangible Book Value Per Share				$	31.02			$	29.84			$	28.37			$	27.06

*	All per share amounts and number of shares outstanding have been retroactively applied for the 10% stock dividend paid in July 2021

American Business Bank
Figures in $000, except share and per share amounts
INCOME STATEMENTS (unaudited)
						For the three months ended:
						September				June				September
							2021				2021				2020
Interest Income:
Interest and Fees on Loans						$	22,437			$	22,861			$	19,793
Interest on Investment Securities							5,711				4,626				4,048
Interest on Interest Earning Deposits in Other Financial Institutions							162				99				71
Total Interest Income							28,310				27,586				23,912
Interest Expense:
Interest on Interest Bearing Transaction Accounts							38				40				41
Interest on Money Market and Savings Deposits							403				426				499
Interest on Certificates of Deposits							11				12				21
Interest on Federal Home Loan Bank Advances and Other Borrowings							-				-				-
Total Interest Expense							452				478				561
Net Interest Income							27,858				27,108				23,351
Provision for Loan Losses							468				-				450
Net Interest Income after Provision for Loan Losses							27,390				27,108				22,901
Non-Interest Income:
Deposit Fees							895				763				677
International Fees							330				260				237
Gain (Loss) on Sale of Investment Securities, Net							-				-				(32	)
Gain on Sale of SBA Loans, Net							-				-				-
Bank/Corporate Owned Life Insurance Income (Expense)							218				255				361
Other							248				192				191
Total Non-Interest Income							1,691				1,470				1,434
Non-Interest Expense:
Salaries and Employee Benefits							9,515				10,231				9,494
Occupancy and Equipment							1,135				1,151				966
Professional Services							1,318				1,560				1,663
Promotion Expenses							415				297				197
Other							983				3,226				1,317
Total Non-Interest Expense							13,366				16,465				13,637
Earnings before income taxes							15,715				12,113				10,698
Income Tax Expense							4,190				3,054				2,824
NET INCOME						$	11,525			$	9,059			$	7,874
Add back:
After-Tax Gain (Loss) on Sale of Investment Securities, Net						$	-			$	-			$	23
Core Net Income						$	11,525			$	9,059			$	7,897
Per Share Information:
Earnings Per Share - Basic						$	1.31			$	1.01			$	0.89
Earnings Per Share - Diluted						$	1.29			$	1.00			$	0.88
Core Earnings Per Share - Diluted						$	1.29			$	1.00			$	0.89
Weighted Average Shares - Basic							8,790,001				8,961,797				8,877,658
Weighted Average Shares - Diluted							8,920,789				9,095,569				8,920,436

*	All per share amounts and number of shares outstanding have been retroactively applied for the 10% stock dividend paid in July 2021

American Business Bank
Figures in $000, except share and per share amounts
INCOME STATEMENTS (unaudited)
						For the nine months ended:
						September				September
							2021				2020
Interest Income:
Interest and Fees on Loans						$	66,071			$	56,257
Interest on Investment Securities							14,459				11,045
Interest on Interest Earning Deposits in Other Financial Institutions							327				217
Total Interest Income							80,857				67,519
Interest Expense:
Interest on Interest Bearing Transaction Accounts							119				182
Interest on Money Market and Savings Deposits							1,243				2,004
Interest on Certificates of Deposits							36				90
Interest on Federal Home Loan Bank Advances and Other Borrowings							-				131
Total Interest Expense							1,398				2,407
Net Interest Income							79,459				65,112
Provision for Loan Losses							468				2,564
Net Interest Income after Provision for Loan Losses							78,991				62,548
Non-Interest Income:
Deposit Fees							2,402				1,932
International Fees							853				763
Gain (Loss) on Sale of Investment Securities, Net							(15	)			(168	)
Gain on Sale of SBA Loans, Net							-				19
Bank/Corporate Owned Life Insurance Income (Expense)							805				564
Other							642				532
Total Non-Interest Income							4,687				3,642
Non-Interest Expense:
Salaries and Employee Benefits							29,408				27,097
Occupancy and Equipment							3,432				2,839
Professional Services							4,581				4,771
Promotion Expenses							934				830
Other							5,409				4,071
Total Non-Interest Expense							43,764				39,608
Earnings before income taxes							39,914				26,582
Income Tax Expense							10,414				7,134
NET INCOME						$	29,500			$	19,448
Add back:
After-Tax Gain (Loss) on Sale of Investment Securities, Net						$	11			$	123
Core Net Income						$	29,511			$	19,571
Per Share Information:
Earnings Per Share - Basic						$	3.32			$	2.20
Earnings Per Share - Diluted						$	3.27			$	2.18
Core Earnings Per Share - Diluted						$	3.27			$	2.19
Weighted Average Shares - Basic							8,891,246				8,856,091
Weighted Average Shares - Diluted							9,016,495				8,920,705

*	All per share amounts and number of shares outstanding have been retroactively applied for the 10% stock dividend paid in July 2021

American Business Bank
Figures in $000
QUARTERLY AVERAGE BALANCE SHEETS AND YIELD ANALYSIS (unaudited)
		For the three months ended:
		September 2021									June 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		$	404,686		$	162		0.16	%		$	329,324		$	99		0.12	%
Investment Securities:
US Agencies			205,251			341		0.66	%			216,143			383		0.71	%
Mortgage Backed Securities			646,607			2,514		1.56	%			466,148			1,565		1.34	%
State and Municipals			481,594			2,561		2.13	%			435,608			2,394		2.20	%
US Treasuries			-			-		0.00	%			-			-		0.00	%
Corporate Bonds			11,395			118		4.15	%			10,085			82		3.25	%
Securities Available-for-Sale and Held-to-Maturity			1,344,847			5,534		1.65	%			1,127,984			4,424		1.57	%
Federal Home Loan Bank Stock			11,779			177		6.01	%			11,628			202		6.95	%
Total Investment Securities			1,356,626			5,711		1.68	%			1,139,612			4,626		1.62	%
Loans Receivable:
Commercial Real Estate			1,219,958			12,664		4.12	%			1,163,231			11,944		4.12	%
Commercial and Industrial			379,774			3,979		4.16	%			340,067			3,921		4.62	%
SBA Payroll Protection Program			287,736			4,700		6.48	%			555,338			6,069		4.38	%
Residential Real Estate			109,682			1,034		3.74	%			93,126			889		3.83	%
Installment and Other			5,063			60		4.67	%			5,613			38		2.75	%
Total Loans Receivable			2,002,213			22,437		4.45	%			2,157,375			22,861		4.25	%
Total Interest Earning Assets		$	3,763,525		$	28,310		2.94	%		$	3,626,311		$	27,586		3.01	%
Liabilities:
Non-Interest Bearing Demand Deposits			1,956,996			-		0.00	%			1,871,930			-		0.00	%
Interest Bearing Transaction Accounts			261,017			38		0.06	%			267,490			40		0.06	%
Money Market and Savings Deposits			1,323,828			403		0.12	%			1,278,436			426		0.13	%
Certificates of Deposit			36,425			11		0.12	%			34,446			12		0.14	%
Total Deposits			3,578,266			452		0.05	%			3,452,302			478		0.06	%
Federal Home Loan Bank Advances / Other Borrowings			-			-		0.00	%			7			-		0.37	%
Total Interest Bearing Deposits and Borrowings			1,621,270			452		0.11	%			1,580,379			478		0.12	%
Total Deposits and Borrowings		$	3,578,266		$	452		0.05	%		$	3,452,309		$	478		0.06	%
Net Interest Income					$	27,858								$	27,108
Net Interest Rate Spread								2.89	%								2.95	%
Net Interest Margin								2.94	%								3.00	%
Net Interest Margin, excluding SBA PPP								2.64	%								2.75	%

American Business Bank
Figures in $000
QUARTERLY AVERAGE BALANCE SHEETS AND YIELD ANALYSIS (unaudited)
					For the three months ended:
					September 2021										September 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					$	404,686		$	162		0.16	%			$	191,948		$	71		0.15	%
Investment Securities:
US Agencies						205,251			341		0.66	%				237,419			429		0.72	%
Mortgage Backed Securities						646,607			2,514		1.56	%				325,904			1,541		1.89	%
State and Municipals						481,594			2,561		2.13	%				271,133			1,700		2.51	%
US Treasuries						-			-		0.00	%				10,011			37		1.46	%
Corporate Bonds						11,395			118		4.15	%				16,479			126		3.07	%
Securities Available-for-Sale and Held-to-Maturity						1,344,847			5,534		1.65	%				860,946			3,833		1.78	%
Federal Home Loan Bank Stock						11,779			177		6.01	%				10,864			215		7.90	%
Total Investment Securities						1,356,626			5,711		1.68	%				871,810			4,048		1.86	%
Loans Receivable:
Commercial Real Estate						1,219,958			12,664		4.12	%				1,026,594			11,179		4.33	%
Commercial and Industrial						379,774			3,979		4.16	%				364,750			3,987		4.35	%
SBA Payroll Protection Program						287,736			4,700		6.48	%				683,495			3,837		2.23	%
Residential Real Estate						109,682			1,034		3.74	%				73,291			734		3.98	%
Installment and Other						5,063			60		4.67	%				4,817			56		4.65	%
Total Loans Receivable						2,002,213			22,437		4.45	%				2,152,947			19,793		3.66	%
Total Interest Earning Assets					$	3,763,525		$	28,310		2.94	%			$	3,216,705		$	23,912		2.91	%
Liabilities:
Non-Interest Bearing Demand Deposits						1,956,996			-		0.00	%				1,675,885			-		0.00	%
Interest Bearing Transaction Accounts						261,017			38		0.06	%				215,041			41		0.08	%
Money Market and Savings Deposits						1,323,828			403		0.12	%				1,132,664			499		0.18	%
Certificates of Deposit						36,425			11		0.12	%				36,848			21		0.23	%
Total Deposits						3,578,266			452		0.05	%				3,060,438			561		0.07	%
Federal Home Loan Bank Advances / Other Borrowings						-			-		0.00	%				-			-		0.00	%
Total Interest Bearing Deposits and Borrowings						1,621,270			452		0.11	%				1,384,553			561		0.16	%
Total Deposits and Borrowings					$	3,578,266		$	452		0.05	%			$	3,060,438		$	561		0.07	%
Net Interest Income								$	27,858									$	23,351
Net Interest Rate Spread											2.89	%									2.84	%
Net Interest Margin											2.94	%									2.89	%
Net Interest Margin, excluding SBA PPP											2.64	%									3.06	%

American Business Bank
Figures in $000
YEAR-TO-DATE AVERAGE BALANCE SHEETS AND YIELD ANALYSIS (unaudited)
					For the nine months ended:
					September 2021										September 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					$	317,484		$	327		0.14	%			$	161,520		$	217		0.18	%
Investment Securities:
US Agencies						215,440			1,131		0.70	%				258,359			1,376		0.71	%
Mortgage Backed Securities						504,787			5,308		1.40	%				294,904			4,718		2.13	%
State and Municipals						444,236			7,223		2.17	%				203,326			4,018		2.63	%
US Treasuries						-			-		0.00	%				10,018			110		1.47	%
Corporate Bonds						10,588			282		3.56	%				18,770			423		3.00	%
Securities Available-for-Sale and Held-to-Maturity						1,175,051			13,944		1.58	%				785,377			10,645		1.81	%
Federal Home Loan Bank Stock						11,427			515		6.01	%				10,658			400		5.01	%
Total Investment Securities						1,186,478			14,459		1.62	%				796,035			11,045		1.85	%
Loans Receivable:
Commercial Real Estate						1,163,444			36,069		4.14	%				1,011,829			33,553		4.43	%
Commercial and Industrial						350,385			11,361		4.34	%				400,905			13,391		4.46	%
SBA Payroll Protection Program						483,059			15,810		4.38	%				408,683			6,832		2.23	%
Residential Real Estate						93,730			2,682		3.83	%				73,525			2,325		4.22	%
Installment and Other						5,211			149		3.82	%				5,166			156		4.04	%
Total Loans Receivable						2,095,829			66,071		4.21	%				1,900,108			56,257		3.95	%
Total Interest Earning Assets					$	3,599,791		$	80,857		2.96	%			$	2,857,663		$	67,519		3.10	%
Liabilities:
Non-Interest Bearing Demand Deposits						1,854,013			-		0.00	%				1,469,001			-		0.00	%
Interest Bearing Transaction Accounts						261,329			119		0.06	%				206,276			182		0.12	%
Money Market and Savings Deposits						1,275,594			1,243		0.13	%				989,554			2,004		0.27	%
Certificates of Deposit						35,251			36		0.14	%				36,298			90		0.33	%
Total Deposits						3,426,187			1,398		0.05	%				2,701,129			2,276		0.11	%
Federal Home Loan Bank Advances / Other Borrowings						2			-		0.37	%				10,533			131		1.66	%
Total Interest Bearing Deposits and Borrowings						1,572,176			1,398		0.12	%				1,242,661			2,407		0.26	%
Total Deposits and Borrowings					$	3,426,189		$	1,398		0.05	%			$	2,711,662		$	2,407		0.12	%
Net Interest Income								$	79,459									$	65,112
Net Interest Rate Spread											2.91	%									2.98	%
Net Interest Margin											2.95	%									3.04	%
Net Interest Margin, excluding SBA PPP											2.73	%									3.18	%

American Business Bank
Figures in $000
SUPPLEMENTAL DATA (unaudited)
						September				June				December				September
							2021				2021				2020				2020
Performance Ratios:
Quarterly:
Return on Average Assets (ROAA)							1.19	%			0.97	%			1.08	%			0.95	%
Core Return on Average Assets (ROAA)							1.19	%			0.97	%			1.08	%			0.95	%
Return on Average Equity (ROAE)							17.02	%			14.21	%			15.57	%			13.53	%
Core Return on Average Equity (ROAE)							17.02	%			14.21	%			15.57	%			13.57	%
Efficiency Ratio							45.23	%			57.61	%			53.70	%			54.95	%
Year-to-Date
Return on Average Assets (ROAA)							1.06	%			0.99	%			0.93	%			0.87	%
Core Return on Average Assets (ROAA)							1.06	%			0.99	%			0.93	%			0.88	%
Return on Average Equity (ROAE)							15.22	%			14.26	%			12.70	%			11.67	%
Core Return on Average Equity (ROAE)							15.23	%			14.27	%			12.76	%			11.75	%
Efficiency Ratio							52.00	%			55.66	%			56.40	%			57.47	%
Core Efficiency Ratio							52.00	%			55.66	%			56.40	%			57.47	%
Capital Adequacy:
Total Risk Based Capital Ratio							13.74	%			14.25	%			14.65	%			14.54	%
Common Equity Tier 1 Capital Ratio							12.59	%			13.01	%			13.40	%			13.29	%
Tier 1 Risk Based Capital Ratio							12.59	%			13.01	%			13.40	%			13.29	%
Tier 1 Leverage Ratio							7.04	%			6.98	%			6.98	%			6.97	%
Tangible Common Equity / Tangible Assets							7.01	%			7.04	%			7.17	%			7.11	%
Asset Quality Overview
Non-Performing Loans						$	349			$	54			$	2,405			$	2,563
Loans 90+ Days Past Due and Still Accruing							-				-				-				-
Total Non-Performing Loans							349				54				2,405				2,563
Restructured Loans							-				214				218				221
Other Real Estate Owned							-				-				-				-
ALLL / Loans Receivable							1.20	%			1.14	%			1.11	%			1.05	%
Non-Performing Loans / Total Loans Receivable *							0.02	%			0.01	%			0.13	%			0.13	%
Non-Performing Loans / Total Loans Receivable *, excluding PPP **							0.02	%			0.02	%			0.17	%			0.19	%
Non-Performing Assets / Total Assets *							0.01	%			0.01	%			0.08	%			0.08	%
Non-Performing Assets / Total Assets *, excluding PPP **							0.01	%			0.01	%			0.09	%			0.11	%
Net Charge-Offs (Recoveries) quarterly						$	260			$	(395	)		$	(21	)		$	(60	)
Net Charge-Offs (Recoveries) year-to-date						$	(151	)		$	(411	)		$	457			$	478
Net Charge-Offs (Recoveries) year-to-date / Average							(0.01	%)			(0.02	%)			0.02	%			0.03	%
Loans Receivable

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

 

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