AMBZ American Business Bank (QX)

AMERICAN BUSINESS BANK (Bank) (OTCBB: AMBZ) today reported net income of $1,881,000 for the first quarter 2010, a 39% increase over the $1,345,000 earned in the first quarter of 2009. Earnings per share (EPS) in the first quarter 2010 increased to $0.47 versus $0.34 in the first quarter of 2009. Shares outstanding at the end of the quarter totaled 3,972,366.

“We are especially pleased with reaching an asset size that exceeds $900 million,” Don Johnson, the Bank’s President, added. “This quarter, we also reached over $100 million in market capitalization. Both of these milestones are particularly meaningful in light of the troubles that we have seen in most sectors of the economy over the past two years.”

“The first quarter was very successful for us. We added a good number of relationship customers to our Bank and we were able to maintain our margins, leading to a profitable quarter,” said Wes Schaefer, Vice Chairman of the Bank.

“While no bank is immune to the problems that the industry has felt over the past few years, it appears that we have made it through the worst of it in good shape. We have a solid balance sheet, our earnings are strong and our momentum is excellent. We hope to continue our success throughout 2010,” Robert Schack, Chairman, said.

Assets and Liabilities

Total assets increased 17% or $137 million to $918 million at March 31, 2010 as compared to $781 million at March 31, 2009. Loans increased 10% or by $32 million from $325 million to $357 million while investments and federal funds sold increased $107 million. Funding the asset growth was a 21% or $148 million increase in deposits.

Interest Income

During the first quarter, Net Interest Income rose by $1,209,000 or 18% over the same quarter in 2009.

Non-interest Income

Non-interest Income in the first quarter of 2010 increased 18% to $849,000 from $717,000 in the first quarter of 2009.

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 $5,789,000 or 1.59% 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 BALANCE SHEET

(Unaudited - 000's omitted)

  March   2010   2009     Assets Investment Securities $ 489,479 $ 342,979 Trading Securities 178 32,668 Federal Funds Sold 13,000 20,000 Loans and Leases (net) 357,624 325,047

Cash, Checks in process of collection Due from Banks

27,346 36,304

Premises, Equipment and Other Assets

  31,107   24,557   Total Assets $ 918,734 $ 781,555   Liabilities and Shareholders' Equity Demand Deposits 316,739 238,521 Money Market and Now Deposits 426,028 346,798 Savings and Time Deposits   95,110   104,511 Total Deposits 837,877 689,830   FHLB Advances 15,335 35,335 Other Liabilities 6,418 8,344 Shareholders' Equity   59,104   48,046  

Total Liabilities and Shareholders' Equity

$ 918,734 $ 781,555     AMERICAN BUSINESS BANK INCOME STATEMENT

(Unaudited - 000's omitted)

   

Three months ended March

 

 

2010

 

2009

  Interest Income Loans and Leases $ 5,155 $ 4,694 Investment Securities 3,750 3,357 Federal Funds Sold   5     5   Total Interest Income 8,910 8,056   Interest Expense

Money Market and Now Accounts

843 811 Savings and Time Deposits 251 484

Repurchase Agreements/Other Borrowings

  136     290   Total Interest Expense 1,230 1,585   Net Interest Income 7,680 6,471 Provision for Loan Losses   (325 )   (324 )

Net Interest Income After Provision For Loan Losses

7,355 6,147   Other Income 849 717   Other Expense   5,961     5,171     Operating Income 2,243 1,693   Income Taxes   (362 )   (348 )   Net Earnings $ 1,881 $ 1,345   Selected Ratios: Earnings per Share $ 0.47 $ 0.34 Tier 1 Capital Ratio 6.68 % 6.94 % Net Interest Margin 3.68 % 3.65 % Return on Beginning Equity 13.82 % 11.32 % Return on Average Assets 0.83 % 0.70 % Efficiency Ratio 63.2 % 74.9 %