American Business Bank Reports Record Quarterly Core Loan Growth

AMERICAN BUSINESS BANK (OTCQX: AMBZ) today reported net income of $9.7 million or $1.06 per fully diluted share for the fourth quarter of 2021 compared to $11.5 million or $1.29 per fully diluted share for the third quarter of 2021, a decrease of 16%. For the quarter ended December 31, 2021, net income associated with the PPP program was $1.3 million or $0.14 per fully diluted share, a decrease of 62% compared to $3.3 million or $0.37 per fully diluted share for the third quarter of 2021. For the year ending December 31, 2021, net income was $39.2 million or $4.33 per fully diluted share, compared to $28.8 million or $3.22 per fully diluted share for the year ended December 31, 2020. For the year ended December 31, 2021, net income associated with the PPP program was $12.4 million or $1.37 per fully diluted share compared to $8.7 million or $0.97 per fully diluted share for the year ended December 31, 2020.

“Our record earnings for the year and record core loan growth (non-PPP) for the quarter finishes an exceptional period in the history of ABB. Despite a challenging environment, our employees thrived, delivered a high level of service to customers and generated outstanding results for shareholders. We continue to execute on serving small to middle-market business customers with loan growth in the quarter concentrated in C&I and owner occupied commercial real estate. Core loan growth, annualized at 37% in the fourth quarter, will transition the Bank from a heavy reliance on PPP income and meaningfully increase core net interest income in 2022. We are confident in our ability to grow loans and begin 2022 with a robust loan pipeline. This will help us continue to deploy liquidity into higher yielding earning assets with the backdrop of historical outstanding credit quality. Our new client solicitations are well received, continuing our tradition of being a trusted advisor,” commented Leon Blankstein, ABB’s President, CEO, and Director.

For the quarter ending December 31, 2021, net interest income was $27.6 million, a 1% decrease over the third quarter of 2021 as interest income including fees on PPP loans decreased by $3 million. This decrease was offset by a $1.4 million increase in interest income on securities as the average balance of the investment portfolio increased by $198 million. Additionally, interest income on loans increased by $1.1 million to help offset the decline in PPP income. The Bank’s strong “core,” excluding PPP, loan growth increased the average balance of the loan portfolio by $126 million compared to the third quarter of 2021. For the quarters ending December 31, 2021 and September 30, 2021, the cost of deposits was 0.05%.

For the quarter ending December 31, 2021, the provision for loan losses was $1.5 million commensurate with the record core loan growth in the quarter. The allowance for loan losses as a percentage of loans, excluding PPP loans, was 1.30% at December 31, 2021.

For the full year 2021, the increase in net income over 2020 was primarily due to an $8.4 million increase in acceleration of net deferred PPP processing fees on forgiven PPP loans and a $6.2 million increase in interest on investment securities. This additional income was offset by a $2 million nonrecurring legal settlement and a $2.5 million increase in salary and bonus expenses.

Net Interest Margin

Net interest margin for the fourth quarter of 2021 was 2.82% compared to 2.94% in the third quarter of 2021 and 3.00% in the fourth quarter of 2020. Excluding the impact of PPP loans, the net interest margin was 2.75% for the fourth quarter of 2021 compared to 2.64% for the third quarter of 2021. Without the acceleration of fees on forgiveness, the yield on PPP loans was 1.66% for the fourth quarter of 2021. As of December 31, 2021, 37% of the loan portfolio had variable rates, with approximately half of the Bank’s variable-rate loans indexed to prime and 79% of these loans are at or above interest rate floors by 52 bps.

Net Interest Income

For the quarter ending December 31, 2021, net interest income decreased by $256,000, or 1%, compared to the third quarter of 2021 and increased by $2.3 million, or 9%, compared to the quarter ending December 31, 2020. Despite growth in core loans and investment securities, the accelerated realization of net deferred PPP processing fees was less in the fourth quarter compared to the third quarter of 2021 and is the primary reason for the current quarter decline.

For the year ended December 31, 2021, net interest income was $107.1 million compared to $90.4 million for the year ended December 31, 2020 primarily due to a $6.2 million increase in interest income on the investment portfolio which increased by an average balance of $427 million in 2021 compared to 2020. In addition, participation in PPP generated pre-tax income of $17.6 million in 2021 compared to $12.3 million in 2020.

(Figures in $000s, except per share amounts)		As of or For the Year Ended:						As of or For the Three Months Ended:
		December 2021			December 2020			December 2021			September 2021
PPP loans - first round, net		$	10,361		$	551,190		$	10,361		$	18,741
PPP loans - second round, net			133,224			-			133,224			169,564
PPP Total Loans, net		$	143,585		$	551,190		$	143,585		$	188,305
1% Coupon Interest		$	4,086		$	4,744		$	418		$	738
Amortized fees			1,924			4,332			254			382
Accelerated fees			11,589			3,198			1,118			3,580
Total PPP loan income		$	17,599		$	12,273		$	1,789		$	4,700
Total PPP loan income after tax		$	12,413		$	8,676		$	1,262		$	3,315
Total PPP loan income after tax per share - diluted		$	1.37		$	0.97		$	0.14		$	0.37

As of January 20, 2022, approximately 98% of PPP loans originated in 2020 and 53% of PPP loans originated in 2021 have been forgiven. Of the remaining PPP loans originated in 2020 and 2021, approximately 2% are in the forgiveness review or submission process.

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. For the year ending December 31, 2021, Bank/Corporate owned life insurance (BOLI) income decreased by $177,000 as a result of the decline in the value of the policies that are invested in mutual funds compared to the year ending December 31, 2020.

Non-Interest Expense

For the quarter ending December 31, 2021, total non-interest expense increased $1.7 million compared to the prior quarter primarily due to higher bonus expense tied to loan production. Total non-interest expense increased by $469,000 in the fourth quarter of 2021 compared to the fourth quarter of 2020 primarily due to donations fulfilling the Bank’s PPP Grant Program benefiting minority and women-owned businesses in the fourth quarter of 2021. The efficiency ratio decreased to 51.8% compared to 52.0% for the third quarter compared to 56.4% for the fourth quarter of 2021.

There were 203 full time equivalent employees at December 31, 2021 compared to 194 a year ago and 202 at September 30, 2021. The Bank has 37 relationship managers in eight offices representing an increase of four from a year ago and remained the same from the prior quarter. Other increases in FTE are primarily to support the growing loan portfolio.

For the year ending December 31, 2021, non-interest expense increased $4.6 million or 9% compared to the same period a year ago primarily due to the $2 million legal settlement and higher bonus expense tied to loan production and higher net income.

Balance Sheet

From September 30, 2021 to December 31, 2021, total core loans, excluding PPP loans, increased $164 million, or 9%. During the fourth quarter of 2021, CRE loans, primarily owner-occupied, increased by $110.6 million, and C&I loans increased by $54 million, benefiting from higher line utilization. At December 31, 2021, the utilization rate for the Bank’s commercial lines of credit was 30% compared to 29% at September 30, 2021. Investment securities increased by $36 million from the third quarter of 2021 to $1.5 billion. As of December 31, 2021, the duration of the securities portfolio increased to 4.5 years from 4.4 years as of September 30, 2021.

During 2021, total assets increased $458 million, or 13%, and total deposits grew by $426 million, (with a majority of the increase attributable to the proceeds of PPP loans), and new deposit relationships of approximately $133 million. Total loans, excluding PPP loans, grew $424 million or 28%.

At December 31, 2021, the tangible common equity ratio was 7.1%.

Asset Quality

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

		December 31, 2021				September 30, 2021
(Figures in $000s)
Non-performing assets (NPA)		$	338			$	349
Loans 90+ Days Past Due and Still Accruing			-				-
Total NPA		$	338			$	349
NPA as a % of total assets, excluding PPP			0.01	%			0.01	%
Past Due as a % of total Loans, excluding PPP			0.00	%			0.06	%
Criticized as a % of total Loans, excluding PPP			3.50	%			3.64	%
Classified as a % of total Loans, excluding PPP			0.12	%			0.14	%

As of December 31, 2021, the Bank had total specific reserve of $3,000 related to one $338,000 impaired SBA loan relationship.

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

		Three Months Ended
		December 31, 2021				September 30, 2021
(Figures in $000s)
Beginning Balance		$	23,550			$	23,341
Charge-offs			-				(278	)
Recoveries			27				19
Net (charge-offs) / recoveries		$	27			$	(259	)
Provision			1,485				468
Ending Balance		$	25,062			$	23,550
Allowance as a % of total assets, excluding PPP			1.30	%			1.33	%

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 2021, the Bank recorded loan charge-offs of $278 thousand with the largest related to a TDR and received $457 thousand of recoveries for the year. 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)
		December				September				December
		2021				2021				2020
Assets:
Cash and Due from Banks		$	33,246			$	77,145			$	44,334
Interest Earning Deposits in Other Financial Institutions			195,624				301,265				201,719
Investment Securities:
US Agencies			185,170				198,886				228,102
Mortgage Backed Securities			808,496				771,601				419,393
State and Municipals			231,917				233,630				279,045
US Treasuries			-				-				-
Corporate Bonds			12,903				12,966				12,725
Securities Available-for-Sale, at Fair Value			1,238,486				1,217,083				939,265
State and Municipals Securities Held-to-Maturity, at Amortized Cost			298,651				284,166				143,229
Federal Home Loan Bank Stock, at Cost			11,779				11,779				10,864
Total Investment Securities			1,548,916				1,513,028				1,093,358
Loans Receivable:
Commercial Real Estate			1,371,475				1,260,887				1,095,811
Commercial and Industrial			444,009				389,683				333,021
SBA Payroll Protection Program			143,584				188,305				551,190
Residential Real Estate			112,817				115,349				76,483
Installment and Other			5,897				4,738				4,405
Total Loans Receivable			2,077,782				1,958,962				2,060,910
Allowance for Loan Losses			(25,062	)			(23,550	)			(22,931	)
Loans Receivable, Net			2,052,720				1,935,412				2,037,979
Furniture, Equipment and Leasehold Improvements, Net			6,580				6,750				7,857
Bank/Corporate Owned Life Insurance			28,851				28,543				27,738
Other Assets			46,339				40,709				41,277
Total Assets		$	3,912,276			$	3,902,852			$	3,454,262
Liabilities:
Non-Interest Bearing Demand Deposits		$	1,934,444			$	1,919,131			$	1,686,091
Interest Bearing Transaction Accounts			287,224				261,887				258,950
Money Market and Savings Deposits			1,337,035				1,371,834				1,191,591
Certificates of Deposit			39,445				38,040				35,778
Total Deposits			3,598,148				3,590,892				3,172,410
Federal Home Loan Bank Advances / Other Borrowings			-				-				-
Other Liabilities			35,574				38,436				34,014
Total Liabilities		$	3,633,722			$	3,629,328			$	3,206,424
Shareholders' Equity:
Common Stock		$	202,199			$	201,625			$	166,263
Retained Earnings			81,521				71,858				75,557
Accumulated Other Comprehensive Income / (Loss)			(5,166	)			41				6,018
Total Shareholders' Equity		$	278,554			$	273,524			$	247,838
Total Liabilities and Shareholders' Equity		$	3,912,276			$	3,902,852			$	3,454,262
Standby Letters of Credit		$	35,891			$	33,935			$	33,469
Per Share Information:
Common Shares Outstanding			8,832,797				8,817,433				8,736,605
Book Value Per Share		$	31.54			$	31.02			$	28.37
Tangible Book Value Per Share		$	31.54			$	31.02			$	28.37

*

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:
		December				September			December
		2021				2021			2020
Interest Income:
Interest and Fees on Loans		$	20,729			$	22,437		$	21,339
Interest on Investment Securities			7,158				5,711			4,358
Interest on Interest Earning Deposits in Other Financial Institutions			135				162			77
Total Interest Income			28,022				28,310			25,774
Interest Expense:
Interest on Interest Bearing Transaction Accounts			33				38			45
Interest on Money Market and Savings Deposits			377				403			414
Interest on Certificates of Deposits			10				11			16
Interest on Federal Home Loan Bank Advances and Other Borrowings			-				-			-
Total Interest Expense			420				452			475
Net Interest Income			27,602				27,858			25,299
Provision for Loan Losses			1,485				468			-
Net Interest Income after Provision for Loan Losses			26,117				27,390			25,299
Non-Interest Income:
Deposit Fees			912				895			719
International Fees			357				330			275
Gain (Loss) on Sale of Investment Securities, Net			(18	)			-			-
Gain on Sale of SBA Loans, Net			-				-			-
Bank/Corporate Owned Life Insurance Income (Expense)			308				218			725
Other			280				248			143
Total Non-Interest Income			1,839				1,691			1,862
Non-Interest Expense:
Salaries and Employee Benefits			10,459				9,515			10,215
Occupancy and Equipment			1,157				1,135			959
Professional Services			1,462				1,318			2,018
Promotion Expenses			800				415			390
Other			1,176				983			1,003
Total Non-Interest Expense			15,054				13,366			14,585
Earnings before income taxes			12,902				15,715			12,576
Income Tax Expense			3,240				4,190			3,252
NET INCOME		$	9,662			$	11,525		$	9,324
Add back:
After-Tax Gain (Loss) on Sale of Investment Securities, Net		$	13			$	-		$	-
Core Net Income		$	9,675			$	11,525		$	9,324
Per Share Information:
Earnings Per Share - Basic		$	1.07			$	1.31		$	1.05
Earnings Per Share - Diluted		$	1.06			$	1.29		$	1.04
Core Earnings Per Share - Diluted		$	1.06			$	1.29		$	1.04
Weighted Average Shares - Basic			9,002,011				8,790,001			8,900,504
Weighted Average Shares - Diluted			9,143,933				8,920,789			8,968,277

*

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 twelve months ended:
		December				December
		2021				2020
Interest Income:
Interest and Fees on Loans		$	86,800			$	77,596
Interest on Investment Securities			21,617				15,403
Interest on Interest Earning Deposits in Other Financial Institutions			462				295
Total Interest Income			108,879				93,294
Interest Expense:
Interest on Interest Bearing Transaction Accounts			152				227
Interest on Money Market and Savings Deposits			1,621				2,418
Interest on Certificates of Deposits			47				106
Interest on Federal Home Loan Bank Advances and Other Borrowings			-				131
Total Interest Expense			1,820				2,882
Net Interest Income			107,059				90,412
Provision for Loan Losses			1,953				2,564
Net Interest Income after Provision for Loan Losses			105,106				87,848
Non-Interest Income:
Deposit Fees			3,314				2,651
International Fees			1,210				1,038
Gain (Loss) on Sale of Investment Securities, Net			(33	)			(168	)
Gain on Sale of SBA Loans, Net			-				19
Bank/Corporate Owned Life Insurance Income (Expense)			1,113				1,290
Other			921				675
Total Non-Interest Income			6,525				5,505
Non-Interest Expense:
Salaries and Employee Benefits			39,867				37,312
Occupancy and Equipment			4,589				3,798
Professional Services			6,043				6,790
Promotion Expenses			1,734				1,220
Other			6,581				5,073
Total Non-Interest Expense			58,814				54,193
Earnings before income taxes			52,817				39,160
Income Tax Expense			13,654				10,387
NET INCOME		$	39,163			$	28,773
Add back:
After-Tax Gain (Loss) on Sale of Investment Securities, Net		$	24			$	124
Core Net Income		$	39,187			$	28,897
Per Share Information:
Earnings Per Share - Basic		$	4.39			$	3.24
Earnings Per Share - Diluted		$	4.33			$	3.22
Core Earnings Per Share - Diluted		$	4.33			$	3.24
Weighted Average Shares - Basic			8,918,938				8,867,194
Weighted Average Shares - Diluted			9,048,355				8,932,598

*	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:
		December 2021									September 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		$	326,356		$	135		0.16	%		$	404,686		$	162		0.16	%
Investment Securities:
US Agencies			191,544			278		0.58	%			205,251			341		0.66	%
Mortgage Backed Securities			818,689			3,728		1.82	%			646,607			2,514		1.56	%
State and Municipals			520,354			2,863		2.20	%			481,594			2,561		2.13	%
US Treasuries			-			-		0.00	%			-			-		0.00	%
Corporate Bonds			12,750			109		3.42	%			11,395			118		4.15	%
Securities Available-for-Sale and Held-to-Maturity			1,543,337			6,978		1.81	%			1,344,847			5,534		1.65	%
Federal Home Loan Bank Stock			11,779			180		6.10	%			11,779			177		6.01	%
Total Investment Securities			1,555,116			7,158		1.84	%			1,356,626			5,711		1.68	%
Loans Receivable:
Commercial Real Estate			1,318,877			13,610		4.09	%			1,219,958			12,664		4.12	%
Commercial and Industrial			401,559			4,211		4.16	%			379,774			3,979		4.16	%
SBA Payroll Protection Program			161,986			1,789		4.38	%			287,736			4,700		6.48	%
Residential Real Estate			113,660			1,059		3.70	%			109,682			1,034		3.74	%
Installment and Other			6,658			60		3.58	%			5,063			60		4.67	%
Total Loans Receivable			2,002,740			20,729		4.11	%			2,002,213			22,437		4.45	%
Total Interest Earning Assets		$	3,884,212		$	28,022		2.82	%		$	3,763,525		$	28,310		2.94	%
Liabilities:
Non-Interest Bearing Demand Deposits			2,019,342			-		0.00	%			1,956,996			-		0.00	%
Interest Bearing Transaction Accounts			267,881			33		0.05	%			261,017			38		0.06	%
Money Market and Savings Deposits			1,363,415			377		0.11	%			1,323,828			403		0.12	%
Certificates of Deposit			39,414			10		0.10	%			36,425			11		0.12	%
Total Deposits			3,690,052			420		0.05	%			3,578,266			452		0.05	%
Federal Home Loan Bank Advances / Other Borrowings			-			-		0.00	%			-			-		0.00	%
Total Interest Bearing Deposits and Borrowings			1,670,710			420		0.10	%			1,621,270			452		0.11	%
Total Deposits and Borrowings		$	3,690,052		$	420		0.05	%		$	3,578,266		$	452		0.05	%
Net Interest Income					$	27,602								$	27,858
Net Interest Rate Spread								2.77	%								2.89	%
Net Interest Margin								2.82	%								2.94	%
Net Interest Margin, excluding SBA PPP								2.75	%								2.64	%

American Business Bank
Figures in $000
QUARTERLY AVERAGE BALANCE SHEETS AND YIELD ANALYSIS (unaudited)
		For the three months ended:
		December 2021									December 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		$	326,356		$	135		0.16	%		$	224,487		$	77		0.14	%
Investment Securities:
US Agencies			191,544			278		0.58	%			227,960			338		0.59	%
Mortgage Backed Securities			818,689			3,728		1.82	%			372,987			1,544		1.66	%
State and Municipals			520,354			2,863		2.20	%			381,965			2,201		2.31	%
US Treasuries			-			-		0.00	%			9,896			37		1.47	%
Corporate Bonds			12,750			109		3.42	%			13,106			101		3.08	%
Securities Available-for-Sale and Held-to-Maturity			1,543,337			6,978		1.81	%			1,005,914			4,221		1.68	%
Federal Home Loan Bank Stock			11,779			180		6.10	%			10,864			137		5.04	%
Total Investment Securities			1,555,116			7,158		1.84	%			1,016,778			4,358		1.71	%
Loans Receivable:
Commercial Real Estate			1,318,877			13,610		4.09	%			1,070,812			11,482		4.27	%
Commercial and Industrial			401,559			4,211		4.16	%			337,596			3,624		4.27	%
SBA Payroll Protection Program			161,986			1,789		4.38	%			627,003			5,442		3.45	%
Residential Real Estate			113,660			1,059		3.70	%			73,470			737		3.99	%
Installment and Other			6,658			60		3.58	%			5,270			54		4.10	%
Total Loans Receivable			2,002,740			20,729		4.11	%			2,114,151			21,339		4.02	%
Total Interest Earning Assets		$	3,884,212		$	28,022		2.82	%		$	3,355,416		$	25,774		3.01	%
Liabilities:
Non-Interest Bearing Demand Deposits			2,019,342			-		0.00	%			1,724,816			-		0.00	%
Interest Bearing Transaction Accounts			267,881			33		0.05	%			247,980			45		0.07	%
Money Market and Savings Deposits			1,363,415			377		0.11	%			1,181,043			414		0.14	%
Certificates of Deposit			39,414			10		0.10	%			36,223			16		0.18	%
Total Deposits			3,690,052			420		0.05	%			3,190,062			475		0.06	%
Federal Home Loan Bank Advances / Other Borrowings			-			-		0.00	%			-			-		0.00	%
Total Interest Bearing Deposits and Borrowings			1,670,710			420		0.10	%			1,465,246			475		0.13	%
Total Deposits and Borrowings		$	3,690,052		$	420		0.05	%		$	3,190,062		$	475		0.06	%
Net Interest Income					$	27,602								$	25,299
Net Interest Rate Spread								2.77	%								2.95	%
Net Interest Margin								2.82	%								3.00	%
Net Interest Margin, excluding SBA PPP								2.75	%								2.90	%

American Business Bank
Figures in $000
YEAR-TO-DATE AVERAGE BALANCE SHEETS AND YIELD ANALYSIS (unaudited)
		For the twelve months ended:
		December 2021									December 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		$	319,720		$	462		0.14	%		$	177,348		$	295		0.17	%
Investment Securities:
US Agencies			209,417			1,409		0.67	%			250,717			1,715		0.68	%
Mortgage Backed Securities			583,907			9,035		1.55	%			314,532			6,262		1.99	%
State and Municipals			463,422			10,086		2.18	%			248,230			6,218		2.50	%
US Treasuries			-			-		0.00	%			9,987			147		1.47	%
Corporate Bonds			11,133			392		3.52	%			17,346			524		3.02	%
Securities Available-for-Sale and Held-to-Maturity			1,267,879			20,922		1.65	%			840,812			14,866		1.77	%
Federal Home Loan Bank Stock			11,515			695		6.03	%			10,710			537		5.02	%
Total Investment Securities			1,279,394			21,617		1.69	%			851,522			15,403		1.81	%
Loans Receivable:
Commercial Real Estate			1,202,622			49,679		4.13	%			1,026,656			45,035		4.39	%
Commercial and Industrial			363,284			15,572		4.29	%			384,991			17,015		4.42	%
SBA Payroll Protection Program			402,131			17,599		4.38	%			463,562			12,273		2.65	%
Residential Real Estate			98,753			3,741		3.79	%			73,511			3,063		4.17	%
Installment and Other			5,576			209		3.74	%			5,192			210		4.05	%
Total Loans Receivable			2,072,366			86,800		4.19	%			1,953,912			77,596		3.97	%
Total Interest Earning Assets		$	3,671,480		$	108,879		2.92	%		$	2,982,782		$	93,294		3.08	%
Liabilities:
Non-Interest Bearing Demand Deposits			1,895,685			-		0.00	%			1,533,304			-		0.00	%
Interest Bearing Transaction Accounts			262,980			152		0.06	%			216,759			227		0.10	%
Money Market and Savings Deposits			1,297,730			1,621		0.12	%			1,037,688			2,418		0.23	%
Certificates of Deposit			36,300			47		0.13	%			36,279			106		0.29	%
Total Deposits			3,492,695			1,820		0.05	%			2,824,030			2,751		0.10	%
Federal Home Loan Bank Advances / Other Borrowings			2			-		0.37	%			7,885			131		1.66	%
Total Interest Bearing Deposits and Borrowings			1,597,012			1,820		0.11	%			1,298,611			2,882		0.22	%
Total Deposits and Borrowings		$	3,492,697		$	1,820		0.05	%		$	2,831,915		$	2,882		0.10	%
Net Interest Income					$	107,059								$	90,412
Net Interest Rate Spread								2.87	%								2.98	%
Net Interest Margin								2.92	%								3.03	%
Net Interest Margin, excluding SBA PPP								2.74	%								3.10	%

American Business Bank
Figures in $000
SUPPLEMENTAL DATA (unaudited)
		December				September				December
		2021				2021				2020
Performance Ratios:
Quarterly:
Return on Average Assets (ROAA)			0.97	%			1.19	%			1.08	%
Core Return on Average Assets (ROAA)			0.97	%			1.19	%			1.08	%
Return on Average Equity (ROAE)			14.17	%			17.02	%			15.57	%
Core Return on Average Equity (ROAE)			14.19	%			17.02	%			15.57	%
Efficiency Ratio			51.10	%			45.23	%			53.70	%
Year-to-Date
Return on Average Assets (ROAA)			1.03	%			1.06	%			0.93	%
Core Return on Average Assets (ROAA)			1.03	%			1.06	%			0.93	%
Return on Average Equity (ROAE)			14.95	%			15.22	%			12.70	%
Core Return on Average Equity (ROAE)			14.95	%			15.23	%			12.76	%
Efficiency Ratio			51.77	%			52.00	%			56.40	%
Core Efficiency Ratio			51.77	%			52.00	%			56.40	%
Capital Adequacy:
Total Risk Based Capital Ratio			13.21	%			13.74	%			14.65	%
Common Equity Tier 1 Capital Ratio			12.09	%			12.59	%			13.40	%
Tier 1 Risk Based Capital Ratio			12.09	%			12.59	%			13.40	%
Tier 1 Leverage Ratio			7.09	%			7.04	%			6.98	%
Tangible Common Equity / Tangible Assets			7.12	%			7.01	%			7.17	%
Asset Quality Overview
Non-Performing Loans		$	338			$	349			$	2,405
Loans 90+ Days Past Due and Still Accruing			-				-				-
Total Non-Performing Loans			338				349				2,405
Restructured Loans			-				-				218
Other Real Estate Owned			-				-				-
ALLL / Loans Receivable			1.21	%			1.20	%			1.11	%
Non-Performing Loans / Total Loans Receivable *			0.02	%			0.02	%			0.13	%
Non-Performing Loans / Total Loans Receivable *, excluding PPP **			0.02	%			0.02	%			0.17	%
Non-Performing Assets / Total Assets *			0.01	%			0.01	%			0.08	%
Non-Performing Assets / Total Assets *, excluding PPP **			0.01	%			0.01	%			0.09	%
Net Charge-Offs (Recoveries) quarterly		$	(27	)		$	260			$	(21	)
Net Charge-Offs (Recoveries) year-to-date		$	(178	)		$	(151	)		$	457
Net Charge-Offs (Recoveries) year-to-date / Average			(0.01	%)			(0.01	%)			0.02	%
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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