AMBZ American Business Bank (QX)

AMERICAN BUSINESS BANK (Bank) (OTCBB:AMBZ) today reported net income of $1,345,000 for the first quarter 2009, a 22% increase over the $1,101,000 earned in the first quarter of 2008. Earnings per share (EPS) in the first quarter 2009 increased to $0.37 versus $0.32 in the first quarter 2008. Shares outstanding at the end of the quarter totaled 3,601,946.

�We were very pleased with the performance of the Bank in the first quarter. All major contributors to the Bank�s financial success did well, including asset growth, loan growth and deposit growth. We were also able to add to our reserves and regulatory capital,� said Wes Schaefer, Vice Chairman of the Bank.

�During the quarter we added a number of new business relationships due to our successful marketing efforts,� Don Johnson, the Bank�s President, added. �Our efforts remained focused on providing outstanding customer service to our niche market of successful companies. These businesses traditionally have sales or revenues in the range of $5 million to over $100 million.�

�A year ago we were just finishing the first full quarter in this recession. A year later, we find ourselves in a downturn that has been broader and deeper than even we expected. Despite this, the Bank has done its job: continuing to be profitable, continuing to lend money to our relationship customers, continuing to grow one customer at a time, continuing to add to our regulatory capital all while keeping the Bank�s balance sheet safe. The loan portfolio continues to be pristine, with zero charged off loans and no non-accruals,� Robert Schack, Chairman, said.

Assets and Liabilities

Total assets increased 28% or $173 million to $781 million at March 31, 2009 as compared to $608 million at March 31, 2008. Loans increased 17% or by $48 million from $277 million to $325 million while investments and federal funds sold increased $128 million. Funding the asset growth was a 29% or $158 million increase in deposits.

Interest Income

During the first quarter, Net Interest Income rose by $1,205,000 or 23% over the same quarter in 2008.

Non-interest Income

Non-interest Income in the first quarter of 2009 increased 28% to $717,000 from $561,000 in the first quarter of 2008.

Credit Quality

Asset quality at quarter-end remains excellent, with zero non-performing loans, no OREO and no charge offs. At quarter-end, the allowance for loan losses stood at $4,542,000 or 1.37% of loans, a level that is higher than our peer group average.

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

BALANCE SHEET

(Unaudited-000�s omitted)

�

March

�

2009

�

2008

Assets

� � Investment Securities $ 342,979 $ 177,147 Trading Securities 32,668 90,124 Federal Funds Sold 20,000 - Loans and Leases (net) 325,047 277,298 Cash, Checks in process of collection Due From Banks 36,304 41,180 Premises, Equipment and Other Assets 24,557 22,791 �

Total Assets

$

781,555

$

608,540

�

Liabilities and Shareholders� Equity

Demand Deposits 238,521 177,541 Money Market and Now Deposits 346,798 251,222 Savings and Time Deposits 104,511 102,253 Total Deposits 689,830 531,016 � FHLB Advances 35,335 28,285 Other Liabilities 8,344 3,432 Shareholders� Equity 48,046 45,807 �

Total Liabilities and

Shareholders� Equity

$

781,555

$

608,540

� �

AMERICAN BUSINESS BANK

INCOME STATEMENT

(Unaudited-000�s omitted)

� �

Three months ended March

� �

2009

�

2008

Interest Income

� Loans and Leases $ 4,694 $ 4,707 Investment Securities 3,357 2,806 Fed Funds Sold 5 � � � 196 � Total Interest Income 8,056 7,709 �

Interest Expense

Money Market and NOW Accounts 811 1,541 Savings and Time Deposits 484 739 Repurchase Agreements/ Other Borrowings � 290 � � � 163 � Total Interest Expense 1,585 2,443 � Net Interest Income 6,471 5,266 Provision for Loan Losses � (324 ) � � (150 ) Net Interest Income after Provision For Loan Losses 6,147 5,116 �

Other Income

717 561 �

Other Expense

� 5,171 � � � 4,229 � �

Operating Income

1,693 1,448 �

Income Taxes

� (348 ) � � (347 ) �

Net Earnings

$

1,345

$

1,101

�

Selected Ratios:

Earnings per share $ 0.37 $ 0.32 Capital to assets 6.945 % 7.51 % Net Interest Margin 3.691 % 3.79 % Return on Beginning Equity 11.601 % 9.85 % Return on Average Assets 0.72 % 0.72 % Efficiency Ratio 67.7 % 78.4 %