Le Lézard
Classified in: Business
Subject: EARNINGS

American Business Bank Reports Record Annual and Quarterly Earnings


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)

 


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