LOS ANGELES--(BUSINESS WIRE)--
AMERICAN BUSINESS BANK (Bank) (AMBZ) today reported net income of $3,934,000 for the first quarter of 2013, a 63% increase over the $2,404,000 earned in the first quarter of 2012. Earnings per share (basic) in the first quarter of 2013 increased to $0.89 versus $0.54 in the first quarter of 2012 primarily due to a $0.31 per share increase in realized securities gains.
“The Bank saw an excellent increase in its loan totals during the first quarter as compared to the same period last year. Also noteworthy was a nine percent increase in its demand deposits,” said Wes Schaefer, Vice Chairman and CFO. “Additionally, we took advantage of some of the recent market gains in our investment portfolio, selling a modest number of bonds to 'harvest' gains that added to our earnings, thus increasing the Bank’s Tier 1 Capital.”
Total assets increased 9% or $108 million to $1.308 billion at March 31, 2013 as compared to $1.200 billion at March 31, 2012. The loan portfolio (net) increased 27% or $110 million to $516 million at March 31, 2013 as compared to $406 million at March 31, 2012. Deposits increased 8% or $90 million to $1.114 billion at March 31, 2013 as compared to $1.024 billion at March 31, 2012.
During the first quarter of 2013, Net Interest Income increased $861,000 or 10% to $9,559,000 from $8,698,000 during the first quarter of 2012.
Non-Interest income during the first quarter of 2013 increased $1,989,000 to $2,710,000 from $721,000 during the first quarter of 2012.
Non-Interest expense during the first quarter of 2013 increased $358,000 or 6% to $6,065,000 from $5,707,000 during the first quarter of 2012.
Asset quality at quarter-end remains excellent, with $1,255,000 non-performing loans or 0.2% of total loans; and, no OREO. At the end of March 2013, the allowance for loan losses stood at $10,211,000 or 1.94% of loans.
Dividend Announcement
The Bank’s Board of Directors has authorized the payment of a 10% stock dividend to holders of record as of April 30, 2013, to be paid on May 20, 2013. The Board felt that the Bank’s earnings and performance over the past two years warranted rewarding our shareholders with additional shares in the Company.
Management Changes Announcement
At its shareholder meeting today, the Bank announced that Don Johnson, the Bank’s founding President and CEO, will step down as CEO and Leon Blankstein, President, will assume the additional CEO title, effective immediately. Mr. Johnson will become Vice Chairman and will continue as a member of the Board of Directors. This succession plan in the Bank’s management team has been in process since 2011 when Mr. Blankstein was named President. Mr. Blankstein said, “I am truly honored to be named the CEO of American Business Bank and I look forward to continuing to add to the Bank’s success. For me and my fellow Executives, having worked with Don Johnson over the past fifteen years, we thank him for his tireless dedication, enthusiasm and discipline.”
AMERICAN BUSINESS BANK headquartered in downtown Los Angeles with over $1.3 billion in total assets offers a wide range of financial services to the business marketplace. Clients include wholesalers, manufacturers, service businesses, professionals and non-profits. The Bank has opened four Loan Production Offices in strategic areas including our Orange County Office in Irvine, our South Bay Office in Torrance, our San Fernando Valley Office in the Warner Center and our Inland Empire Office in Ontario.
| American Business Bank | |||||||||||||||||
| Figures in $000, except per share amounts | |||||||||||||||||
| CONSOLIDATED BALANCE SHEET (unaudited) | |||||||||||||||||
| For the period ended: | |||||||||||||||||
| March | March | Change | |||||||||||||||
| 2013 | 2012 | % | |||||||||||||||
|
Assets: |
|||||||||||||||||
| Cash & Equivalents | $ | 44,290 | $ | 32,177 | 37.6 | % | |||||||||||
| Fed Funds Sold | 1,000 | 1,000 | 0.0 | % | |||||||||||||
| Interest Bearing Balances | 28 | 28 | 0.0 | % | |||||||||||||
|
Investment Securities: |
|||||||||||||||||
| US Agencies | 376,454 | 404,802 | -7.0 | % | |||||||||||||
| Mortgage Backed Securities | 170,832 | 188,340 | -9.3 | % | |||||||||||||
| State & Municipals | 157,424 | 125,886 | 25.1 | % | |||||||||||||
| Other | 3,124 | 5,323 | -41.3 | % | |||||||||||||
| Total Investment Securities | 707,834 | 724,351 | -2.3 | % | |||||||||||||
|
Gross Loans: |
|||||||||||||||||
| Commercial Real Estate | 292,808 | 228,551 | 28.1 | % | |||||||||||||
| Commercial & Industrial | 191,709 | 149,684 | 28.1 | % | |||||||||||||
| Other Real Estate | 36,864 | 31,497 | 17.0 | % | |||||||||||||
| Other | 5,220 | 5,338 | -2.2 | % | |||||||||||||
| Total Gross Loans | 526,601 | 415,070 | 26.9 | % | |||||||||||||
|
Allowance for Loan & Lease Losses |
(10,211 | ) | (9,234 | ) | 10.6 | % | |||||||||||
| Net Loans | 516,390 | 405,836 | 27.2 | % | |||||||||||||
| Premises & Equipment | 640 | 1,002 | -36.1 | % | |||||||||||||
|
Other Assets |
37,929 | 35,822 | 5.9 | % | |||||||||||||
| Total Assets | $ | 1,308,111 | $ | 1,200,216 | 9.0 | % | |||||||||||
|
Liabilities: |
|||||||||||||||||
| Demand Deposits | $ | 515,501 | $ | 472,975 | 9.0 | % | |||||||||||
| Money Market | 517,871 | 462,837 | 11.9 | % | |||||||||||||
| Time Deposits and Savings | 80,345 | 88,370 | -9.1 | % | |||||||||||||
| Total Deposits | 1,113,717 | 1,024,182 | 8.7 | % | |||||||||||||
| FHLB Advances / Other Borrowings | 70,500 | 71,000 | -0.7 | % | |||||||||||||
| Other Liabilities | 19,330 | 15,565 | 24.2 | % | |||||||||||||
| Total Liabilities | $ | 1,203,547 | $ | 1,110,747 | 8.4 | % | |||||||||||
|
Shareholders' Equity: |
|||||||||||||||||
| Common Stock & Retained Earnings | $ | 94,696 | $ | 81,576 | 16.1 | % | |||||||||||
| Accumulated Other Comprehensive Income | 9,868 | 7,893 | 25.0 | % | |||||||||||||
| Total Shareholders' Equity | $ | 104,564 | $ | 89,469 | 16.9 | % | |||||||||||
| Total Liabilities & Shareholders' Equity | $ | 1,308,111 | $ | 1,200,216 | 9.0 | % | |||||||||||
|
Capital Adequacy: |
|||||||||||||||||
| Tangible Common Equity / Tangible Assets | 7.99 | % | 7.45 | % | -- | ||||||||||||
| Tier 1 Leverage Ratio | 7.54 | % | 6.99 | % | -- | ||||||||||||
| Tier 1 Capital Ratio / Risk Weighted Assets | 15.96 | % | 17.43 | % | -- | ||||||||||||
| Total Risk-Based Ratio | 17.22 | % | 18.69 | % | -- | ||||||||||||
|
Per Share Information: |
|||||||||||||||||
| Common Shares Outstanding | 4,433,331 | 4,427,862 | -- | ||||||||||||||
| Book Value Per Share | $ | 23.59 | $ | 20.21 | 16.7 | % | |||||||||||
| Tangible Book Value Per Share | $ | 23.59 | $ | 20.21 | 16.7 | % | |||||||||||
| American Business Bank | |||||||||||||||||
| Figures in $000, except per share amounts | |||||||||||||||||
| CONSOLIDATED INCOME STATEMENT (unaudited) | |||||||||||||||||
| For the 3-month period: | |||||||||||||||||
| March | March | Change | |||||||||||||||
| 2013 | 2012 | % | |||||||||||||||
|
Interest Income: |
|||||||||||||||||
| Loans & Leases | $ | 5,870 | $ | 5,450 | 7.7 | % | |||||||||||
| Investment Securities | 4,215 | 4,017 | 4.9 | % | |||||||||||||
| Total Interest Income | 10,085 | 9,467 | 6.5 | % | |||||||||||||
|
Interest Expense: |
|||||||||||||||||
| Money Market, NOW Accounts & Savings | 368 | 553 | -33.5 | % | |||||||||||||
| Time Deposits | 104 | 151 | -31.1 | % | |||||||||||||
| Repurchase Agreements / Other Borrowings | 54 | 65 | -16.9 | % | |||||||||||||
| Total Interest Expense | 526 | 769 | -31.6 | % | |||||||||||||
| Net Interest Income | 9,559 | 8,698 | 9.9 | % | |||||||||||||
| Provision for Loan Losses | (300 | ) | (300 | ) | 0.0 | % | |||||||||||
| Net Interest Income After Provision | 9,259 | 8,398 | 10.3 | % | |||||||||||||
|
Non-Interest Income: |
|||||||||||||||||
| Deposit Fees | 270 | 270 | 0.0 | % | |||||||||||||
| Realized Securities Gains / (Losses) | 2,689 | 612 | 339.4 | % | |||||||||||||
| Other | (249 | ) | (161 | ) | 54.7 | % | |||||||||||
| Total Non-Interest Income | 2,710 | 721 | 275.9 | % | |||||||||||||
|
Non-Interest Expense: |
|||||||||||||||||
| Compensation & Benefits | 3,691 | 3,466 | 6.5 | % | |||||||||||||
| Occupancy & Equipment | 510 | 543 | -6.1 | % | |||||||||||||
| Other | 1,864 | 1,698 | 9.8 | % | |||||||||||||
| Total Non-Interest Expense | 6,065 | 5,707 | 6.3 | % | |||||||||||||
| Pre-Tax Income | 5,904 | 3,412 | 73.0 | % | |||||||||||||
| Provision for Income Tax | (1,970 | ) | (1,008 | ) | 95.4 | % | |||||||||||
| Net Income | $ | 3,934 | $ | 2,404 | 63.6 | % | |||||||||||
|
Per Share Information: |
|||||||||||||||||
| Average Shares Outstanding (for the year) | 4,433,331 | 4,427,862 | -- | ||||||||||||||
| Earnings Per Share - Basic | $ | 0.89 | $ | 0.54 | 63.4 | % | |||||||||||
| American Business Bank | |||||||||||||||||
| Figures in $000, except per share amounts | |||||||||||||||||
| March | March | Change | |||||||||||||||
| 2013 | 2012 | % | |||||||||||||||
|
Performance Ratios |
|||||||||||||||||
| Return on Average Assets (ROAA) | 1.23 | % | 0.81 | % | -- | ||||||||||||
| Return on Average Equity (ROAE) | 15.06 | % | 10.85 | % | -- | ||||||||||||
|
Asset Quality Overview |
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| Non-Performing Loans | $ | 322 | $ | 2,239 | -85.6 | % | |||||||||||
| Loans 90+Days Past Due | 933 | 0 | NA | ||||||||||||||
| Total Non-Performing Loans | $ | 1,255 | $ | 2,239 | -43.9 | % | |||||||||||
| Restructured Loans (TDR's) | $ | 6,472 | $ | 134 | 4729.9 | % | |||||||||||
| Other Real Estate Owned | 0 | 0 | -- | ||||||||||||||
| ALLL / Gross Loans | 1.94 | % | 2.22 | % | -- | ||||||||||||
| ALLL / Non-Performing Loans * | 813.63 | % | 412.42 | % | -- | ||||||||||||
| Non-Performing Loans / Total Loans * |
0.24 |
% | 0.54 | % | -- | ||||||||||||
| Non-Performing Assets / Total Assets * | 0.10 | % | 0.19 | % | -- | ||||||||||||
| Net Charge-Offs | $ | 629 | $ | - | -- | ||||||||||||
| Net Charge-Offs / Average Gross Loans | 0.12 | % | 0.00 | % | -- | ||||||||||||
|
* Excludes Restructured Loans |
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Wes E. Schaefer
Vice Chairman and Chief Financial Officer
213-430-4000
