American Business Bank Reports Record Annual and Quarterly Earnings

Rhea-AI Summary

AMERICAN BUSINESS BANK (OTCQX: AMBZ) reported a record net income of $48.6 million or $5.28 per share for the full year 2022, a rise from $39.2 million or $4.33 per share in 2021. In Q4 2022, net income was $14 million or $1.51 per share, an increase from $13.3 million or $1.44 per share in Q3. Core loans increased by $136 million, a 24% annualized growth, contributing to a net interest income boost of $18 million or 17% year-over-year. However, total deposits fell by $207 million, a 6% decrease, prompting increased overnight borrowing. The bank maintained a robust nonperforming assets ratio of 0.18% as of year-end.

Positive

• Record net income of $48.6 million for 2022, a 24% increase year-over-year.
• Core loans increased by $136 million or 24% annualized in Q4 2022.
• Net interest income rose by $18 million, or 17%, compared to 2021.
• Net interest margin improved to 3.60% in Q4 2022 from 3.40% in Q3 2022.

Negative

• Total deposits decreased by $207 million, or 6%, from the previous year.
• Increased overnight borrowings to fill the deposit gap.
• Provision for loan losses increased by $2.6 million year-over-year.

Core loans increased by $136 million or 24% annualized in the quarter

Full Year 2022 Highlights

• Total loans, excluding PPP loans, increased $496 million or 26% over prior year
• Non-interest bearing demand deposits were 53% of total deposits
• Cost of average deposits of 0.14%, an increase of 0.09% over prior year quarter
• Nonperforming assets to total assets of 0.18%
• Near nil delinquencies in 30-89 day loan category
• Record net income of $48.6 million
• Net interest income increased by $18 million or 17% over the prior year
• Continued status as well-capitalized, the highest regulatory category

Fourth Quarter 2022 Highlights

• Total core loans, excluding PPP loans, increased $136 million or 6% over prior quarter
• Net interest income increased 31%, excluding accelerated PPP fees, over prior year quarter
• Net interest margin increased to 3.6%, from 3.4% at September 30, 2022
• Net income increased $4.3 million or 44% over prior year quarter
• Tangible book value per share increased by $1.97 to $28.39 over prior quarter

LOS ANGELES--(BUSINESS WIRE)-- AMERICAN BUSINESS BANK (OTCQX: AMBZ) today reported net income of $14.0 million or $1.51 per fully diluted share for the fourth quarter of 2022 compared to $13.3 million or $1.44 per fully diluted share for the third quarter of 2022, an increase of 5%. For the quarter ended December 31, 2022, net income associated with the PPP program was $52 thousand or $0.01 per fully diluted share compared to $1.3 million or $0.14 per fully diluted share for the quarter ended December 31, 2021. For the year ending December 31, 2022, net income was $48.6 million or $5.28 per fully diluted share, compared to $39.2 million or $4.33 per fully diluted share for the year ended December 31, 2021. For the year ended December 31, 2022, net income associated with the PPP program was $2.9 million or $0.31 per fully diluted share compared to $12.4 million or $1.37 per fully diluted share for the year ended December 31, 2021.

“Our team is pleased to report record annual net income for 2022 as well as achieving a 1.46% return on average assets for the fourth quarter. These are wonderful milestones for our Bank, but many factors are changing quickly, especially interest rates over the past several months. In the last year, we have benefitted from rising interest rates, but this is starting to have an adverse effect as the government draws liquidity from the financial system at super competitive rates. As a result, at year end 2022, our deposits decreased $207 million or 6% from a year ago, and we are borrowing overnight to fill that gap. We continue to be a strong core deposit franchise and will be leaning into that strength, focusing on gathering core deposits to replace those borrowings.

Core loans grew at a healthy pace in the quarter. With a continued focus on outstanding credit quality, the loan pipeline remains solid but has been impacted by the higher rate environment and slowing economy. We look forward to 2023 and continuing to deliver superior service and solutions throughout the entire economic cycle for small to mid-size businesses in Southern California,” commented Leon Blankstein, ABB’s President, CEO, and Director.

For the quarter ending December 31, 2022, net interest income was $34.6 million, a 7% increase over the third quarter of 2022. Interest income on loans increased by $2.9 million due to core loan growth and higher interest rates. For the quarter ending December 31, 2022, the cost of deposits was 0.14% representing an increase of 0.09% compared to the quarter ending September 30, 2022 and December 31, 2021.

The provision for loan losses was $1.2 million in the quarter commensurate with core loan growth. The allowance for loan losses as a percentage of loans, excluding PPP loans, was 1.22% at December 31, 2022.

For the full year 2022, the increase in net income over 2021 was primarily due to a $12.2 million increase in interest income on loans and a $6.2 million increase in interest on investment securities. This was offset by a $2.6 million increase in provision for loan losses commensurate with core loan growth and a $1.8 million increase in salary expense.

Net Interest Margin

Net interest margin for the fourth quarter of 2022 was 3.60% compared to 3.40% in the third quarter of 2022 and 2.82% in the fourth quarter of 2021 reflecting the higher yield on earning assets. Excluding the impact of PPP loans, the net interest margin was 3.60% for the fourth quarter of 2022 compared to 3.38% for the third quarter of 2022. As of December 31, 2022, 62% of the loan portfolio was fixed rate. Of the variable rate loans, approximately half are indexed to prime of which $393 million are adjustable within 90 days of a change in prime.

Net Interest Income

For the quarter ended December 31, 2022, net interest income increased by $2.3 million, or 7%, compared to the third quarter of 2022 and increased by $7.0 million, or 26%, compared to the quarter ended December 31, 2021. This is the result of the Bank’s strong core loan growth and increases in market rates on loans and investment securities offset by the reduction in PPP loan income.

For the year ended December 31, 2022, net interest income was $125.1 million compared to $107.1 million for the year ended December 31, 2021. The increase of $18 million or 17% is due to additional interest on core loans of $25.7 million and additional interest on investment securities of $6.2 million offset by the $13.5 million reduction in PPP loan income.

(Figures in $000s, except per share amounts)		As of or For the Twelve Months Ended:						As of or For the Three Months Ended:
		December 2022			December 2021			December 2022			September 2022			December 2021
PPP Total Loans, net		$	9,505		$	143,584		$	9,505		$	10,066		$	143,584
1% Coupon Interest		$	482		$	4,086		$	26		$	35		$	418
Amortized fees			298			1,924			20			25			254
Accelerated fees			3,286			11,589			28			297			1,118
Total PPP loan income		$	4,066		$	17,599		$	73		$	356		$	1,789
Total PPP loan income after tax		$	2,867		$	12,413		$	52		$	251		$	1,262
Total PPP loan income after tax per share - diluted		$	0.31		$	1.37		$	0.01		$	0.03		$	0.14

As of January 19, 2023, approximately 99% of PPP loans have been forgiven. Of the thirteen remaining PPP loans, four are in the forgiveness review or submission process.

Non-Interest Income

Other non-interest income increased for the quarter and year-to-date periods primarily due to fees for cash management services. The increase in total non-interest income for the year ended December 31, 2022 compared to the year ended December 31, 2021 is primarily due to the increase in fees from deposit and cash management services offset by the decline in the valuation of COLI policies that are invested in mutual funds.

Non-Interest Expense

For the quarter ending December 31, 2022, total non-interest expense increased $0.8 million and $1.3 million compared to the third quarter of 2022 and the fourth quarter of 2021, respectively. These increases are primarily due to salaries related to additional employees. Bonuses and commissions have fluctuated with actual results between the periods. In addition other increases are due to an increase in legal costs and non recurring software expenses. The efficiency ratio was 45% for the fourth and third quarter of 2022, compared to 51% for the fourth quarter of 2021.

For the year ended December 31, 2022, non-interest expense increased $1.9 million or 3% compared to the prior year, mainly due to increases in salaries and employee benefits and professional services offset by the decrease in settlement expense related to a legal matter which occurred in the second quarter of 2021.

There were 225 full time equivalent employees at December 31, 2022 compared to 204 a year ago and 211 at September 30, 2022. The Bank has 40 relationship managers in eight offices representing an increase of three from a year ago and remains unchanged from the prior quarter. The Bank has invested in back office personnel commensurate with the increase in core loans over the last two years.

Balance Sheet

From September 30, 2022 to December 31, 2022, total core loans, excluding PPP loans, increased $136 million, or 6%. During the fourth quarter of 2022, Commercial Real Estate (CRE) loans increased by $78 million, primarily due to an increase of $52 million in owner-occupied CRE and $44 million in non-owner-occupied CRE offset by a decrease of $18 million in Construction & Land loans mainly due to three loan payoffs.

		December 31, 2022			September 30, 2022
(Figures in $000s)
RE - Owner Occupied		$	1,011,913		$	959,677
RE - Non Owner Occupied			660,600			616,271
Construction & Land			49,398			67,833
Total CRE Loans		$	1,721,911		$	1,643,780

In addition, Residential Real Estate loans increased by $28 million due to $18 million in loan growth and a reclassification of $10 million from CRE. C&I loans increased by $20 million due to an increase in line utilization. At December 31, 2022, the utilization rate for the Bank’s commercial lines of credit increased to 31% from 30% at September 30, 2022.

Investment securities decreased during the fourth quarter to $1.3 billion. As of December 31, 2022, the duration of the available-for-sale securities portfolio decreased to 5.4 years from 5.6 years as of September 30, 2022. Accumulated other comprehensive loss decreased to $81.2 million as of December 31, 2022 from $84.7 million as of September 30, 2022 as market rates relevant to securities pricing decreased. The duration on the held-to-maturity portfolio which holds a significant amount of municipal securities is 7.7 years.

During 2022, total assets decreased $71.5 million, or 1.8%, total deposits decreased by $207 million, or 5.8% and overnight borrowings grew by $162 million. Total loans, excluding PPP loans, grew $496 million, or 26%.

At December 31, 2022, the tangible common equity ratio increased from September 30, 2022 to 6.6%, benefitting from fourth quarter net income and a lower Accumulated Other Comprehensive Loss. Loan growth over the last year has increased risk-weighted assets resulting in a decline in risk-based capital ratios, which remain well above regulatory requirements.

Asset Quality

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

		December 31, 2022				September 30, 2022
(Figures in $000s)
Non-performing assets (NPA)		$	6,927			$	2,337
Loans 90+ Days Past Due and Still Accruing			-				-
Total NPA		$	6,927			$	2,337
NPA as a % of total assets, excluding PPP			0.18	%			0.06	%
Past Due as a % of total Loans, excluding PPP			0.00	%			0.00	%
Criticized as a % of total Loans, excluding PPP			1.59	%			2.33	%
Classified as a % of total Loans, excluding PPP			0.42	%			0.35	%

During the fourth quarter, NPA increased by $4.6 million to $6.9 million with the addition of three C&I loan relationships in unrelated industries. As of December 31, 2022, the NPA had a $487 thousand specific reserve related to six C&I impaired loan relationships of which the majority have a partial guarantee by the state or the SBA. There were no charge offs in the fourth quarter of 2022 and only one during the year.

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

		Three Months Ended								Twelve Months Ended
		December 31, 2022				September 30, 2022				December 31, 2022				December 31, 2021
(Figures in $000s)
Beginning Balance		$	28,439			$	27,608			$	25,062			$	22,931
Charge-offs			-				(23	)			(23	)			(278	)
Recoveries			27				18				81				456
Net (charge-offs) / recoveries		$	27			$	(5	)		$	58			$	178
Provision			1,169				836				4,515				1,953
Ending Balance		$	29,635			$	28,439			$	29,635			$	25,062
Allowance as a % of total assets, excluding PPP			1.21	%			1.24	%			1.21	%			1.30	%

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 and preliminary analysis will likely result in a decrease to the Allowance for Loan Losses. 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
		2022				2022				2021
Assets:
Cash and Due from Banks		$	34,644			$	79,490			$	33,246
Interest Earning Deposits in Other Financial Institutions			1,931				13,420				195,624
Investment Securities:
US Agencies			123,164				133,686				185,170
Mortgage Backed Securities			439,376				447,488				808,496
State and Municipals			101,788				99,441				231,917
US Treasuries			-				-				-
Corporate Bonds			15,021				15,205				12,903
Securities Available-for-Sale, at Fair Value			679,349				695,820				1,238,486
Mortgage Backed Securities			190,525				193,640				-
State and Municipals			394,219				394,929				298,651
Securities Held-to-Maturity, at Amortized Cost			584,744				588,569				298,651
Federal Home Loan Bank Stock, at Cost			15,000				15,000				11,779
Total Investment Securities			1,279,093				1,299,389				1,548,916
Loans Receivable:
Commercial Real Estate			1,721,911				1,643,780				1,371,475
Commercial and Industrial			514,787				494,681				444,009
SBA Payroll Protection Program			9,505				10,066				143,584
Residential Real Estate			179,452				151,514				112,817
Installment and Other			14,547				5,186				5,897
Total Loans Receivable			2,440,202				2,305,227				2,077,782
Allowance for Loan Losses			(29,635	)			(28,439	)			(25,062	)
Loans Receivable, Net			2,410,567				2,276,788				2,052,720
Furniture, Equipment and Leasehold Improvements, Net			5,605				5,645				6,580
Bank/Corporate Owned Life Insurance			27,668				28,282				28,851
Other Assets			81,254				80,405				46,339
Total Assets		$	3,840,762			$	3,783,419			$	3,912,276
Liabilities:
Non-Interest Bearing Demand Deposits		$	1,808,570			$	1,894,054			$	1,934,444
Interest Bearing Transaction Accounts			314,747				322,945				287,224
Money Market and Savings Deposits			1,225,619				1,249,575				1,337,035
Certificates of Deposit			41,858				43,530				39,445
Total Deposits			3,390,794				3,510,104				3,598,148
Federal Home Loan Bank Advances / Other Borrowings			161,500				-				-
Other Liabilities			34,018				37,218				35,574
Total Liabilities		$	3,586,312			$	3,547,322			$	3,633,722
Shareholders' Equity:
Common Stock		$	205,558			$	204,682			$	202,199
Retained Earnings			130,080				116,128				81,521
Accumulated Other Comprehensive Income / (Loss)			(81,188	)			(84,713	)			(5,166	)
Total Shareholders' Equity		$	254,450			$	236,097			$	278,554
Total Liabilities and Shareholders' Equity		$	3,840,762			$	3,783,419			$	3,912,276
Standby Letters of Credit		$	38,459			$	42,067			$	35,891
Per Share Information:
Common Shares Outstanding			8,963,108				8,937,069				8,832,797
Book Value Per Share		$	28.39			$	26.42			$	31.54
Tangible Book Value Per Share		$	28.39			$	26.42			$	31.54

American Business Bank
Figures in $000, except share and per share amounts
INCOME STATEMENTS (unaudited)
		For the three months ended:
		December				September			December
		2022				2022			2021
Interest Income:
Interest and Fees on Loans		$	28,068			$	25,134		$	20,729
Interest on Investment Securities			7,658				7,181			7,158
Interest on Interest Earning Deposits
in Other Financial Institutions			366				467			135
Total Interest Income			36,092				32,782			28,022
Interest Expense:
Interest on Interest Bearing Transaction Accounts			120				40			33
Interest on Money Market and Savings Deposits			1,145				383			377
Interest on Certificates of Deposits			20				10			10
Interest on Federal Home Loan Bank Advances
and Other Borrowings			159				16			-
Total Interest Expense			1,444				449			420
Net Interest Income			34,648				32,333			27,602
Provision for Loan Losses			1,169				836			1,485
Net Interest Income after Provision for Loan Losses			33,479				31,497			26,117
Non-Interest Income:
Deposit Fees			1,003				1,056			912
International Fees			328				318			357
Gain (Loss) on Sale of Investment Securities, Net			(32	)			24			(18	)
Gain on Sale of SBA Loans, Net			-				-			-
Bank/Corporate Owned Life Insurance Income (Expense)			181				270			308
Other			629				461			280
Total Non-Interest Income			2,109				2,129			1,839
Non-Interest Expense:
Salaries and Employee Benefits			10,873				10,854			10,459
Occupancy and Equipment			1,153				1,243			1,157
Professional Services			2,032				1,716			1,462
Promotion Expenses			633				618			800
Other			1,698				1,198			1,176
Total Non-Interest Expense			16,389				15,629			15,054
Earnings before income taxes			19,199				17,997			12,902
Income Tax Expense			5,247				4,747			3,240
NET INCOME		$	13,952			$	13,250		$	9,662
Per Share Information:
Earnings Per Share - Basic		$	1.53			$	1.45		$	1.07
Earnings Per Share - Diluted		$	1.51			$	1.44		$	1.06
Weighted Average Shares - Basic			9,131,068				9,110,176			9,002,011
Weighted Average Shares - Diluted			9,219,807				9,200,981			9,143,933

American Business Bank
Figures in $000, except share and per share amounts
INCOME STATEMENTS (unaudited)
		For the twelve months ended:
		December				December
		2022				2021
Interest Income:
Interest and Fees on Loans		$	98,995			$	86,800
Interest on Investment Securities			27,778				21,617
Interest on Interest Earning Deposits
in Other Financial Institutions			975				462
Total Interest Income			127,748				108,879
Interest Expense:
Interest on Interest Bearing Transaction Accounts			217				152
Interest on Money Market and Savings Deposits			2,158				1,621
Interest on Certificates of Deposits			51				47
Interest on Federal Home Loan Bank Advances
and Other Borrowings			267				-
Total Interest Expense			2,693				1,820
Net Interest Income			125,055				107,059
Provision for Loan Losses			4,515				1,953
Net Interest Income after Provision for Loan Losses			120,540				105,106
Non-Interest Income:
Deposit Fees			4,038				3,314
International Fees			1,361				1,210
Gain (Loss) on Sale of Investment Securities, Net			(75	)			(33	)
Gain on Sale of SBA Loans, Net			-				-
Bank/Corporate Owned Life Insurance Income (Expense)			(387	)			1,113
Other			1,788				921
Total Non-Interest Income			6,725				6,525
Non-Interest Expense:
Salaries and Employee Benefits			41,689				39,867
Occupancy and Equipment			4,675				4,589
Professional Services			7,172				6,043
Promotion Expenses			1,974				1,734
Other			5,233				6,581
Total Non-Interest Expense			60,743				58,814
Earnings before income taxes			66,522				52,817
Income Tax Expense			17,963				13,654
NET INCOME		$	48,559			$	39,163
Per Share Information:
Earnings Per Share - Basic		$	5.34			$	4.39
Earnings Per Share - Diluted		$	5.28			$	4.33
Weighted Average Shares - Basic			9,095,159				8,918,938
Weighted Average Shares - Diluted			9,194,381				9,048,355

American Business Bank
Figures in $000
QUARTERLY AVERAGE BALANCE SHEETS AND YIELD ANALYSIS (unaudited)
		For the three months ended:
		December 2022									September 2022
		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		$	39,054		$	366		3.71	%		$	78,168		$	467		2.42	%
Investment Securities:
US Agencies			128,861			970		3.01	%			139,525			570		1.63	%
Mortgage Backed Securities			731,139			3,429		1.88	%			747,130			3,404		1.82	%
State and Municipals			509,687			2,816		2.21	%			513,082			2,840		2.21	%
US Treasuries			-			-		0.00	%			-			-		0.00	%
Corporate Bonds			16,250			180		4.43	%			14,424			142		3.93	%
Securities Available-for-Sale and Held-to-Maturity			1,385,937			7,395		2.13	%			1,414,161			6,956		1.97	%
Federal Home Loan Bank Stock			15,000			263		7.00	%			15,000			225		6.00	%
Total Investment Securities			1,400,937			7,658		2.19	%			1,429,161			7,181		2.01	%
Loans Receivable:
Commercial Real Estate			1,690,553			18,581		4.36	%			1,609,616			16,938		4.17	%
Commercial and Industrial			504,597			7,142		5.62	%			493,273			6,112		4.92	%
SBA Payroll Protection Program			9,796			73		2.96	%			13,580			356		10.40	%
Residential Real Estate			163,068			2,219		5.40	%			138,437			1,678		4.81	%
Installment and Other			7,352			53		2.84	%			6,694			50		2.99	%
Total Loans Receivable			2,375,366			28,068		4.69	%			2,261,600			25,134		4.41	%
Total Interest Earning Assets		$	3,815,357		$	36,092		3.70	%		$	3,768,929		$	32,782		3.40	%
Liabilities:
Non-Interest Bearing Demand Deposits			1,948,872			-		0.00	%			1,942,800			-		0.00	%
Interest Bearing Transaction Accounts			319,496			120		0.15	%			307,736			40		0.05	%
Money Market and Savings Deposits			1,231,241			1,145		0.37	%			1,237,809			383		0.12	%
Certificates of Deposit			44,427			20		0.18	%			42,396			10		0.10	%
Total Deposits			3,544,036			1,285		0.14	%			3,530,741			433		0.05	%
Federal Home Loan Bank Advances / Other Borrowings			15,989			159		3.94	%			2,609			16		2.37	%
Total Interest Bearing Deposits and Borrowings			1,611,153			1,444		0.36	%			1,590,550			449		0.11	%
Total Deposits and Borrowings		$	3,560,025		$	1,444		0.16	%		$	3,533,350		$	449		0.05	%
Net Interest Income					$	34,648								$	32,333
Net Interest Rate Spread								3.54	%								3.35	%
Net Interest Margin								3.60	%								3.40	%
Net Interest Margin, excluding SBA PPP								3.60	%								3.38	%

American Business Bank
Figures in $000
QUARTERLY AVERAGE BALANCE SHEETS AND YIELD ANALYSIS (unaudited)
		For the three months ended:
		December 2022									December 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		$	39,054		$	366		3.71	%		$	326,356		$	135		0.17	%
Investment Securities:
US Agencies			128,861			970		3.01	%			191,544			278		0.58	%
Mortgage Backed Securities			731,139			3,429		1.88	%			818,689			3,728		1.82	%
State and Municipals			509,687			2,816		2.21	%			520,354			2,863		2.20	%
US Treasuries			-			-		0.00	%			-			-		0.00	%
Corporate Bonds			16,250			180		4.43	%			12,750			109		3.42	%
Securities Available-for-Sale and Held-to-Maturity			1,385,937			7,395		2.13	%			1,543,337			6,978		1.81	%
Federal Home Loan Bank Stock			15,000			263		7.00	%			11,779			180		6.10	%
Total Investment Securities			1,400,937			7,658		2.19	%			1,555,116			7,158		1.84	%
Loans Receivable:
Commercial Real Estate			1,690,553			18,581		4.36	%			1,318,877			13,624		4.10	%
Commercial and Industrial			504,597			7,142		5.62	%			401,559			4,211		4.16	%
SBA Payroll Protection Program			9,796			73		2.96	%			161,986			1,789		4.38	%
Residential Real Estate			163,068			2,219		5.40	%			113,660			1,059		3.70	%
Installment and Other			7,352			53		2.84	%			6,658			46		2.75	%
Total Loans Receivable			2,375,366			28,068		4.69	%			2,002,740			20,729		4.11	%
Total Interest Earning Assets		$	3,815,357		$	36,092		3.70	%		$	3,884,212		$	28,022		2.82	%
Liabilities:
Non-Interest Bearing Demand Deposits			1,948,872			-		0.00	%			2,019,342			-		0.00	%
Interest Bearing Transaction Accounts			319,496			120		0.15	%			267,881			33		0.05	%
Money Market and Savings Deposits			1,231,241			1,145		0.37	%			1,363,415			377		0.11	%
Certificates of Deposit			44,427			20		0.18	%			39,414			10		0.10	%
Total Deposits			3,544,036			1,285		0.14	%			3,690,052			420		0.05	%
Federal Home Loan Bank Advances / Other Borrowings			15,989			159		3.94	%			-			-		0.00	%
Total Interest Bearing Deposits and Borrowings			1,611,153			1,444		0.36	%			1,670,710			420		0.10	%
Total Deposits and Borrowings		$	3,560,025		$	1,444		0.16	%		$	3,690,052		$	420		0.05	%
Net Interest Income					$	34,648								$	27,602
Net Interest Rate Spread								3.54	%								2.77	%
Net Interest Margin								3.60	%								2.82	%
Net Interest Margin, excluding SBA PPP								3.60	%								2.75	%

American Business Bank
Figures in $000
QUARTERLY AVERAGE BALANCE SHEETS AND YIELD ANALYSIS (unaudited)
		For the twelve months ended:
		December 2022									December 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		$	80,083		$	975		1.22	%		$	319,720		$	462		0.15	%
Investment Securities:
US Agencies			150,498			1,632		1.08	%			209,417			1,409		0.67	%
Mortgage Backed Securities			764,473			13,250		1.73	%			583,907			9,035		1.55	%
State and Municipals			516,387			11,438		2.22	%			463,422			10,086		2.18	%
US Treasuries			-			-		0.00	%			-			-		0.00	%
Corporate Bonds			14,490			566		3.91	%			11,133			392		3.52	%
Securities Available-for-Sale and Held-to-Maturity			1,445,848			26,886		1.86	%			1,267,879			20,922		1.65	%
Federal Home Loan Bank Stock			14,047			892		6.35	%			11,515			695		6.03	%
Total Investment Securities			1,459,895			27,778		1.90	%			1,279,394			21,617		1.69	%
Loans Receivable:
Commercial Real Estate			1,565,704			65,417		4.18	%			1,202,622			49,713		4.13	%
Commercial and Industrial			492,483			23,315		4.73	%			363,284			15,572		4.29	%
SBA Payroll Protection Program			47,421			4,066		8.58	%			402,131			17,599		4.38	%
Residential Real Estate			129,698			6,000		4.63	%			98,753			3,741		3.79	%
Installment and Other			6,955			197		2.83	%			5,576			175		3.13	%
Total Loans Receivable			2,242,261			98,995		4.41	%			2,072,366			86,800		4.19	%
Total Interest Earning Assets		$	3,782,239		$	127,748		3.33	%		$	3,671,480		$	108,879		2.92	%
Liabilities:
Non-Interest Bearing Demand Deposits			1,944,585			-		0.00	%			1,895,685			-		0.00	%
Interest Bearing Transaction Accounts			295,346			217		0.07	%			262,980			152		0.06	%
Money Market and Savings Deposits			1,256,463			2,158		0.17	%			1,297,730			1,621		0.12	%
Certificates of Deposit			42,111			51		0.12	%			36,300			47		0.13	%
Total Deposits			3,538,505			2,426		0.07	%			3,492,695			1,820		0.05	%
Federal Home Loan Bank Advances / Other Borrowings			16,274			267		1.64	%			2			-		0.37	%
Total Interest Bearing Deposits and Borrowings			1,610,194			2,693		0.17	%			1,597,012			1,820		0.11	%
Total Deposits and Borrowings		$	3,554,779		$	2,693		0.08	%		$	3,492,697		$	1,820		0.05	%
Net Interest Income					$	125,055								$	107,059
Net Interest Rate Spread								3.25	%								2.87	%
Net Interest Margin								3.31	%								2.92	%
Net Interest Margin, excluding SBA PPP								3.24	%								2.74	%

American Business Bank
Figures in $000
SUPPLEMENTAL DATA (unaudited)
		December				September				December
		2022				2022				2021
Performance Ratios:
Quarterly:
Return on Average Assets (ROAA)			1.46	%			1.39	%			0.97	%
Return on Average Equity (ROAE)			23.45	%			21.22	%			14.17	%
Efficiency Ratio			44.55	%			45.38	%			51.10	%
Year-to-Date
Return on Average Assets (ROAA)			1.26	%			1.20	%			1.03	%
Return on Average Equity (ROAE)			19.27	%			17.98	%			14.95	%
Efficiency Ratio			46.07	%			46.66	%			51.77	%
Capital Adequacy:
Total Risk Based Capital Ratio			12.46	%			12.39	%			13.21	%
Common Equity Tier 1 Capital Ratio			11.41	%			11.35	%			12.09	%
Tier 1 Risk Based Capital Ratio			11.41	%			11.35	%			12.09	%
Tier 1 Leverage Ratio			8.75	%			8.40	%			7.09	%
Tangible Common Equity / Tangible Assets			6.62	%			6.24	%			7.12	%
Asset Quality Overview
Non-Performing Loans		$	6,927			$	2,337			$	338
Loans 90+ Days Past Due and Still Accruing			-				-				-
Total Non-Performing Loans			6,927				2,337				338
Restructured Loans			-				-				-
Other Real Estate Owned			-				-				-
ALLL / Loans Receivable			1.21	%			1.23	%			1.21	%
Non-Performing Loans / Total Loans Receivable *			0.28	%			0.10	%			0.02	%
Non-Performing Loans / Total Loans Receivable *, excluding PPP **			0.28	%			0.10	%			0.02	%
Non-Performing Assets / Total Assets *			0.18	%			0.06	%			0.01	%
Non-Performing Assets / Total Assets *, excluding PPP **			0.18	%			0.06	%			0.01	%
Net Charge-Offs (Recoveries) quarterly		$	(27	)		$	5			$	(27	)
Net Charge-Offs (Recoveries) year-to-date		$	(59	)		$	(31	)		$	(178	)
Net Charge-Offs (Recoveries) year-to-date / Average			(0.00	%)			(0.00	%)			(0.01	%)
Loans Receivable

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

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20230127005055/en/

Karen Schoenbaum

EVP/CFO

(213) 430-4000

www.americanbb.bank

Source: American Business Bank

FAQ

What were AMBZ's net income results for Q4 2022?

AMERICAN BUSINESS BANK reported a net income of $14 million or $1.51 per share for Q4 2022.

How much did total loans increase for AMBZ in 2022?

Total loans, excluding PPP loans, increased by $496 million or 26% over the prior year.

What is the net interest margin for AMBZ as of Q4 2022?

AMERICAN BUSINESS BANK's net interest margin increased to 3.60% in Q4 2022.

Did AMBZ report any changes in deposits for 2022?

Yes, total deposits decreased by $207 million or 6% from the previous year.

What was AMBZ's provision for loan losses in Q4 2022?

The provision for loan losses for Q4 2022 was $1.2 million.