Financial Statements and Report of Independent Auditor
December 31, 2021 and 2020
American Business Bank | |
Contents | |
Page | |
Independent Auditor's Report | 3 |
Financial Statements | |
Balance Sheets | 5 |
Statements of Income | 6 |
Statements of Comprehensive Income | 7 |
Statements of Changes in Shareholders' Equity | 8 |
Statements of Cash Flows | 9 |
Notes to Financial Statements | 11 |
Independent Auditor's Report
Board of Directors
American Business Bank
Report on the Audit of the Financial Statements
Opinion
We have audited the financial statements of American Business Bank (the Bank), which comprise the balance sheets as of December 31, 2021 and 2020, the related statements of income, comprehensive income, changes in shareholders' equity and cash flows for the years then ended, and the related notes to the financial statements (collectively, the financial statements).
In our opinion, the accompanying financial statements present fairly, in all material respects, the financial position of the Bank as of December 31, 2021 and 2020, and the results of its operations and its cash flows for the years then ended in accordance with accounting principles generally accepted in the United States of America.
We have also audited, in accordance with auditing standards generally accepted in the United States of America (GAAS), the Bank's internal control over financial reporting as of December 31, 2021, based on criteria established in Internal Control-Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission in 2013, and our report dated April 18, 2022, expressed an unmodified opinion on the effectiveness of the Bank's internal control over financial reporting.
Basis for Opinion
We conducted our audits in accordance with GAAS. Our responsibilities under those standards are further described in the "Auditor's Responsibilities for the Audit of the Financial Statements" section of our report. We are required to be independent of the Bank and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audits. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
Responsibilities of Management for the Financial Statements
Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the Bank's ability to continue as a going concern within one year after the date that the financial statements are issued (or within one year after the date that the financial statements are available to be issued when applicable).
Auditor's Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.
In performing an audit in accordance with GAAS, we:
Exercise professional judgment and maintain professional skepticism throughout the audit.
Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances.
Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.
Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the Bank's ability to continue as a going concern for a reasonable period of time.
We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control-related matters that we identified during the audit.
Los Angeles, California
April 18, 2022
American Business Bank BALANCE SHEETS As of December 31,
ASSETS
2021
2020
Cash and due from banks
Interest earning deposits in other financial institutions
Cash and cash equivalents
Securities available-for-sale, at fair value Securities held-to-maturity, at amortized cost Federal Home Loan Bank stock, at cost
Loans receivable
Allowance for loan losses
Loans receivable, net
Furniture, equipment and leasehold improvements, net Bank/corporate owned life insurance
Deferred income tax assets, net
Accrued interest receivable and other assets
Total assets
LIABILITIES AND SHAREHOLDERS' EQUITY
Deposits
Non-interest bearing demand deposits Interest bearing transaction accounts Money market and savings deposits Certificates of deposit
Total deposits
Accrued interest payable and other liabilities
Total liabilities
Commitments and contingencies
Shareholders' equity
Common stock, no par value; authorized, 15,000,000 shares; issued and outstanding, 8,832,797 and 7,942,368 shares at December 31, 2021 and 2020, respectively Accumulated other comprehensive income (loss) Retained earnings
Total shareholders' equity
Total liabilities and shareholders' equity
$
33,246,291
195,623,950
228,870,241
1,238,486,678
298,651,185
11,778,500
2,077,782,190
(25,061,555)
2,052,720,635
6,579,915
28,850,883
17,375,796
28,961,893
2,060,909,994
2,037,979,413
$
3,912,275,726 $ 3,454,261,682
$
1,934,443,799 $ 1,686,091,290
287,223,678
1,337,034,949
39,444,948
3,598,147,374
35,574,321
3,633,721,695
3,172,409,980
3,206,423,498
202,199,318 166,263,030
(5,165,847) 6,017,874
81,520,560 75,557,280
278,554,031 247,838,184
$
3,912,275,726
$
The accompanying notes are an integral part of these statements.
5
$
44,334,313
201,718,804
246,053,116
939,265,355
143,228,954
10,864,200
(22,930,581)
7,857,492
27,738,073
10,615,572
30,659,507
258,949,770
1,191,590,938
35,777,982
34,013,518
3,454,261,682
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American Business Bank published this content on 19 April 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 19 April 2022 02:53:02 UTC.