AMERICAN BUSINESS BANK (Bank) (OTCBB: AMBZ) today reported net income of $13,493,000 for the year ended 2013, a 24% increase over the $10,884,000 earned in 2012. Earnings per share (basic) for 2013 increased to $2.76 versus $2.23 in 2012. During the year, the Bank was able to harvest some of the gains in its securities portfolio to add to capital. Without those gains, which were also taken in 2012, the adjusted earnings per share for 2013 were $1.86 versus $1.72 in 2012. Shares outstanding at the end of the year totaled 4,944,982.
"These results show, once again, that American Business Bank's model works very well in a variety of economic conditions," said Robert Schack, Chairman.
"We are very proud of our continued success in attracting strong deposit growth and loan growth in a very competitive market," said Leon Blankstein, President and CEO. "Through our marketing efforts, the Bank was able to add nearly 100 new clients during the year."
"We are very happy for the results that the Bank had in 2013," said Wes Schaefer, Vice Chairman and CFO. "Not only did we see growth in our deposits, loans and income, we were also able to add to our capital through earnings and the strategic sale of some of our investment securities."
Total assets increased 2.9% or $37 million to $1.342 billion at December 31, 2013 as compared to $1.305 billion at December 31, 2012. The loan portfolio (net) increased 15% or $74 million to $568 million at December 31, 2013 as compared to $494 million at December 31, 2012. Deposits increased 16% or $173 million to $1.239 billion at December 31, 2013 as compared to $1.066 billion at the end of 2012. Borrowings from the Federal Home Loan Bank were reduced from $117 million in 2012 to $5 million in 2013.
During 2013, Net Interest Income increased $2,914,000 or 8% to $39,535,000 from $36,621,000 in 2012.
Non-Interest income during 2013 increased $2,555,000 or 50.9% to $7,579,000 from $5,024,000 in 2012. This increase was centered mainly in investment gains.
Non-Interest expense for 2013 increased $1,378,000 or 5.8% to $25,166,000 from $23,788,000 during 2012.
Asset quality at year-end remains excellent, with zero non-performing loans and no OREO. At the end of December 2013, the allowance for loan losses stood at $11,152,000 or 1.92% of loans.
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. 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) | |||||||||||||||||
As of: | |||||||||||||||||
December | December | Change | |||||||||||||||
2013 | 2012 | % | |||||||||||||||
Assets: | |||||||||||||||||
Cash & Equivalents | $ | 42,300 | $ | 31,852 | 32.8 | % | |||||||||||
Fed Funds Sold | 46,000 | 5,000 | 820.0 | % | |||||||||||||
Interest Bearing Balances | 28 | 28 | 0.0 | % | |||||||||||||
Investment Securities: | |||||||||||||||||
US Agencies | 337,469 | 408,803 | -17.4 | % | |||||||||||||
Mortgage Backed Securities | 143,841 | 178,855 | -19.6 | % | |||||||||||||
State & Municipals | 160,492 | 145,460 | 10.3 | % | |||||||||||||
Other | 3,098 | 132 | 2247.0 | % | |||||||||||||
Total Investment Securities | 644,900 | 733,250 | -12.0 | % | |||||||||||||
Gross Loans: | |||||||||||||||||
Commercial Real Estate | 343,496 | 267,406 | 28.5 | % | |||||||||||||
Commercial & Industrial | 187,716 | 194,645 | -3.6 | % | |||||||||||||
Other Real Estate | 41,936 | 36,903 | 13.6 | % | |||||||||||||
Other | 6,438 | 5,320 | 21.0 | % | |||||||||||||
Total Gross Loans | 579,586 | 504,274 | 14.9 | % | |||||||||||||
Allowance for Loan & Lease Losses | (11,152 | ) | (10,537 | ) | 5.8 | % | |||||||||||
Net Loans | 568,434 | 493,737 | 15.1 | % | |||||||||||||
Premises & Equipment | 849 | 720 | 17.9 | % | |||||||||||||
Other Assets | 39,614 | 39,916 | -0.8 | % | |||||||||||||
Total Assets | $ | 1,342,125 | $ | 1,304,503 | 2.9 | % | |||||||||||
Liabilities: | |||||||||||||||||
Demand Deposits | $ | 576,792 | $ | 522,001 | 10.5 | % | |||||||||||
Money Market | 586,497 | 464,348 | 26.3 | % | |||||||||||||
Time Deposits and Savings | 75,922 | 80,251 | -5.4 | % | |||||||||||||
Total Deposits | 1,239,211 | 1,066,600 | 16.2 | % | |||||||||||||
FHLB Advances / Other Borrowings | 5,000 | 117,600 | -95.7 | % | |||||||||||||
Other Liabilities | 2,098 | 16,568 | -87.3 | % | |||||||||||||
Total Liabilities | $ | 1,246,309 | $ | 1,200,768 | 3.8 | % | |||||||||||
Shareholders' Equity: | |||||||||||||||||
Common Stock & Retained Earnings | $ | 107,546 | $ | 90,605 | 18.7 | % | |||||||||||
Accumulated Other Comprehensive Income / (Loss) | (11,730 | ) | 13,130 | -189.3 | % | ||||||||||||
Total Shareholders' Equity | $ | 95,816 | $ | 103,735 | -7.6 | % | |||||||||||
Total Liabilities & Shareholders' Equity | $ | 1,342,125 | $ | 1,304,503 | 2.9 | % | |||||||||||
Capital Adequacy: | |||||||||||||||||
Tangible Common Equity / Tangible Assets | 7.14 | % | 7.95 | % | -- | ||||||||||||
Tier 1 Leverage Ratio | 7.68 | % | 7.19 | % | -- | ||||||||||||
Tier 1 Capital Ratio / Risk Weighted Assets | 16.02 | % | 16.29 | % | -- | ||||||||||||
Total Risk-Based Ratio | 17.28 | % | 17.55 | % | -- | ||||||||||||
Per Share Information: | |||||||||||||||||
Common Shares Outstanding | 4,944,982 | 4,875,564 | -- | ||||||||||||||
Book Value Per Share | $ | 19.38 | $ | 21.28 | -8.9 | % | |||||||||||
Tangible Book Value Per Share | $ | 19.38 | $ | 21.28 | -8.9 | % | |||||||||||
American Business Bank | |||||||||||||||||
Figures in $000, except per share amounts | |||||||||||||||||
CONSOLIDATED INCOME STATEMENT (unaudited) | |||||||||||||||||
For the 12-month period ended: | |||||||||||||||||
December | December | Change | |||||||||||||||
2013 | 2012 | % | |||||||||||||||
Interest Income: | |||||||||||||||||
Loans & Leases | $ | 25,141 | $ | 22,544 | 11.5 | % | |||||||||||
Investment Securities | 16,225 | 16,824 | -3.6 | % | |||||||||||||
Total Interest Income | 41,366 | 39,368 | 5.1 | % | |||||||||||||
Interest Expense: | |||||||||||||||||
Money Market, NOW Accounts & Savings | 1,340 | 1,905 | -29.7 | % | |||||||||||||
Time Deposits | 359 | 542 | -33.8 | % | |||||||||||||
Repurchase Agreements / Other Borrowings | 132 | 300 | -56.0 | % | |||||||||||||
Total Interest Expense | 1,831 | 2,747 | -33.3 | % | |||||||||||||
Net Interest Income | 39,535 | 36,621 | 8.0 | % | |||||||||||||
Provision for Loan Losses | (1,800 | ) | (1,624 | ) | 10.8 | % | |||||||||||
Net Interest Income After Provision for Loan Losses | 37,735 | 34,997 | 7.8 | % | |||||||||||||
Non-Interest Income: | |||||||||||||||||
Deposit Fees | 1,170 | 1,073 | 9.0 | % | |||||||||||||
Realized Securities Gains | 6,599 | 3,702 | 78.3 | % | |||||||||||||
Other | (190 | ) | 249 | -176.3 | % | ||||||||||||
Total Non-Interest Income | 7,579 | 5,024 | 50.9 | % | |||||||||||||
Non-Interest Expense: | |||||||||||||||||
Compensation & Benefits | 15,398 | 14,270 | 7.9 | % | |||||||||||||
Occupancy & Equipment | 1,986 | 1,568 | 26.7 | % | |||||||||||||
Other | 7,782 | 7,950 | -2.1 | % | |||||||||||||
Total Non-Interest Expense | 25,166 | 23,788 | 5.8 | % | |||||||||||||
Pre-Tax Income | 20,148 | 16,233 | 24.1 | % | |||||||||||||
Provision for Income Tax | (6,655 | ) | (5,349 | ) | 24.4 | % | |||||||||||
Net Income | $ | 13,493 | $ | 10,884 | 24.0 | % | |||||||||||
Per Share Information: | |||||||||||||||||
Average Shares Outstanding (for the quarter) | 4,891,166 | 4,873,553 | -- | ||||||||||||||
Earnings Per Share - Basic | $ | 2.76 | $ | 2.23 | 23.5 | % | |||||||||||
American Business Bank | |||||||||||||||||
Figures in $000, except per share amounts | |||||||||||||||||
December | December | Change | |||||||||||||||
2013 | 2012 | % | |||||||||||||||
Performance Ratios | |||||||||||||||||
Return on Average Assets (ROAA) | 1.02 | % | 0.88 | % | -- | ||||||||||||
Return on Average Equity (ROAE) | 13.39 | % | 11.36 | % | -- | ||||||||||||
Asset Quality Overview | |||||||||||||||||
Non-Performing Loans | $ | - | $ | 924 | NA | ||||||||||||
Loans 90+Days Past Due | - | 220 | -100.0 | % | |||||||||||||
Total Non-Performing Loans | $ | - | $ | 1,144 | -100.0 | % | |||||||||||
Restructured Loans (TDR's) | $ | 2,587 | $ | 6,520 | -60.3 | % | |||||||||||
Other Real Estate Owned | 0 | 0 | -- | ||||||||||||||
ALLL / Gross Loans | 1.92 | % | 2.09 | % | -- | ||||||||||||
ALLL / Non-Performing Loans * | NA | 921.07 | % | -- | |||||||||||||
Non-Performing Loans / Total Loans * | 0.00 | % | 0.23 | % | -- | ||||||||||||
Non-Performing Assets / Total Assets * | 0.00 | % | 0.09 | % | -- | ||||||||||||
Net Charge-Offs | $ | 1,060 | $ | 21 | -- | ||||||||||||
Net Charge-Offs / Average Gross Loans | 0.19 | % | 0.00 | % | -- | ||||||||||||
* Excludes Restructured Loans |
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American Business Bank
Wes E. Schaefer
Vice Chairman and Chief
Financial Officer
213-430-4000