American Business Bank Announces 2nd Quarter 2008 Earnings
July 7, 2008
AMERICAN BUSINESS BANK ANNOUNCES ITS RESULTS FOR THE SECOND QUARTER ENDED JUNE 30TH 2008, INCLUDING LOAN GROWTH OF 12%, DEPOSIT GROWTH OF 6% AND $1,317,000 IN EARNINGS.
Los Angeles, California, July 7, 2008. AMERICAN BUSINESS BANK (Bank) (OTCBB: AMBZ) today reported net income of $1,317,000 for the second quarter 2008, a 5% decrease from the $1,389,000 earned in the second quarter of 2007 but 19% higher than the results reported for the first quarter this year. Earnings per share (EPS) in the second quarter 2008 were $0.37 versus $0.41 in the second quarter 2007. Shares outstanding at the end of the quarter averaged 3,552,075, a three percent increase in shares from the second quarter in 2007.
"Under current, tough economic conditions, we have continued to be strongly profitable despite the Federal Reserve lowering interest rates 325 basis points over the past nine months. Our deposits grew 6% in the second quarter over last year and our assets grew $67 million or 11%, including growth of 12% in our loan portfolio. We continue to run the bank in a conservative manner, with no past due loans and a highly rated investment portfolio," said Wes Schaefer, Vice Chairman of the Bank.
Don Johnson, President and CEO, added "Our Bank is built one customer at a time. Despite difficult industry circumstances, we remain customer focused and committed to our plan. We have an excellent asset mix that has performed well in different economic environments, we have an experience staff that is very well regarded in the business banking community and our business model continues to work well for us and our customers."
ASSETS AND LIABILITIES: Total assets increased 11% or $67 million to $651 million at June 30, 2008, as compared to $584 million at June 30, 2007. Loans increased 12% or $31 million to $283 million. Funding the asset growth was a 6%, or $34 million, increase in deposits.
INTEREST INCOME: During the second quarter, Net Interest Income increased $23,000 due to a larger asset base combined with some margin compression as the yield on earning assets was affected by the reduction in general interest rates.
NON-INTEREST INCOME: Non-interest Income in the second quarter of 2008 decreased to $361,000 from $475,000 in the second quarter of 2007. The difference between the two periods was due to reduced gains taken on securities sold.
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 $3,909,000 or 1.36% 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 Irvine, the South Bay, Warner Center in the San Fernando Valley and our Inland Empire Office in Ontario.
Contact Information:
American Business Bank
Wes E. Schaefer
Vice Chairman &
Chief Financial Officer
(213) 430-4000
American Business Bank Announces 4th Quarter 2007 Earnings
AMERICAN BUSINESS BANK ANNOUNCES ITS RESULTS FOR THE FOURTH QUARTER ENDED DECEMBER 31st 2007, INCLUDING 27% LOAN GROWTH, 14% DEPOSIT GROWTH AND 16% EARNINGS GROWTH OVER FOURTH QUARTER 2006.
Los Angeles, California, January 14, 2008. AMERICAN BUSINESS BANK (Bank) (OTCBB:AMBZ) today reported net income of $1,438,000 for the fourth quarter 2007, a 16% increase over the $1,232,000 earned in the fourth quarter of 2006. Total earnings for the year ended December 2007 were $5,208,000, a 3.8% increase over the $5,018,000 earned in 2006. Earnings per share (EPS) in the fourth quarter 2007 increased to $0.43 versus $0.37 in the fourth quarter 2006. For the year EPS, in 2007 was $1.57 versus $1.53 in 2006. Shares outstanding at the end of the year totaled 3,321,456.
“Our results in the fourth quarter were excellent, showing increases in loans, deposits and earnings. We are also pleased with results for the year, as 2007 will be remembered for its challenges in the financial sector”, said Don Johnson, President and CEO of the Bank.
Robert Schack, Chairman, added “Our asset mix is also very important to note. About one half of our earnings assets consist of high quality loans, conservatively underwritten, made to our relationship customers and retained on our books. The other half consists of highly rated investment securities, a large portion of which are fully guaranteed by the U.S. government, and none of which are considered “sub-prime”. This asset mix has served us well over the years, providing flexibility to met loan demand and yet allows the Bank to remain fully invested in a safe and sound manner.”
Assets and Liabilities
Total assets increased 13% or $73 million to $608 million at December 31, 2007 as compared to $535 million at December 29, 2006. Loans increased 27% or by $60 million from $221 million to $281 million while investments and federal funds sold increased $14 million, due to deposit growth. Funding the asset growth was a 14% or $70 million increase in deposits.
Interest Income
During the fourth quarter, Net Interest Income rose by $504,000 or 9% over the same quarter in 2006, and for the year ended December 2007, the Net Interest Income increased by $2,372,000 or 12% over previous year.
Non-interest Income
Non-interest Income in the fourth quarter of 2007 increased 40% to $356,000 from $253,000 in the fourth quarter of 2006. For the year, Non-interest Income rose 57% to $1,330,000 in 2007 from $843,000 in 2006.
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 $3,705,000 or 1.29% 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 Irvine, the South Bay, Warner Center in the San Fernando Valley and our Inland Empire Office in Ontario.
American Business Bank Announces 3rd Quarter 2007 Earnings
AMERICAN BUSINESS BANK ANNOUNCES ITS RESULTS FOR THE THIRD QUARTER ENDED SEPTEMBER 2007, INCLUDING 22% LOAN GROWTH, 28% DEPOSIT GROWTH AND 10% EARNINGS GROWTH OVER THE THIRD QUARTER 2006.
Los Angeles, California, October 5, 2007. AMERICAN BUSINESS BANK (Bank) (OTCBB:AMBZ) today reported net income of $1,348,000, a ten percent increase, for the quarter ended September 28, 2007, or $0.41 earnings per share (“EPS”), compared to earnings for the third quarter in 2006 of $1,217,000 or $0.38 EPS. Shares outstanding at the end of the quarter totaled 3,321,456.
“We are not only delighted with our level of earnings this quarter but we are especially proud of the asset quality that we have been able to maintain. Our commitment to a fortress balance sheet, while always important, is particularly meaningful during times of financial turmoil, such as those we are experiencing now” commented Robert Schack, the Bank’s Chairman.
Assets and Liabilities
Total assets increased 9% or $48 million to $588 million at September 28, 2007 as compared to $539 million at September 29, 2006. Loans increased 22% or by $46 million from $212 million to $259 million while investments and federal funds sold declined $5 million, due to loan growth and a reduction in advances. Funding the loan growth was a 28% or $118 million increase in deposits. The deposit increase included a 14% increase in non-interest bearing demand deposits.
Interest Income
During the third quarter, Net Interest Income rose by $690,000 or 14% over the same quarter in 2006.
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 $3,555,000 or 1.35% 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 Irvine, the South Bay, Warner Center in the San Fernando Valley and our Inland Empire Office in Ontario.
AMERICAN BUSINESS BANK ANNOUNCES RESULTS FOR THE SECOND QUARTER ENDED JUNE 30, 2007.
Los Angeles, California, July 6, 2007. AMERICAN BUSINESS BANK (BANK) (OTC:AMBZ) today reported net income of $1,389,000 for the quarter ended June 30, 2007, or $0.41 earnings per share (“EPS”), compared to earnings for the second quarter in 2006 of $1,359,000 or $0.41 EPS adjusted by the three for two stock split that occurred in July 2006.
Assets and Liabilities
Total assets increased 13% or $68 million to $584 million at June 30, 2007 as compared to $516 million at June 30, 2006. Loans increased 25% or by $51 million from $201 million to $252 million. Funding this growth in loans was a 25% or $109 million increase in deposits. The deposit increase included a 13% increase in non-interest bearing demand deposits.
Interest Income
During the second quarter, Net Interest Income rose by $707,000 or 15% over the same quarter in 2006.
Credit Quality
Asset quality at quarter-end remains excellent, with zero non-performing loans and no OREO. At quarter-end, the allowance for loan losses stood at $3,405,000 or 1.33% 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.
American Business Bank Announces 2006 Year-End Earnings
LOS ANGELES – BUSINESS WIRE --American Business Bank (OTC: AMBZ) today announced that its total assets rose to $535 million at year-end 2006, a 5 percent increase from $506 million a year ago.
The bank also reported that its unaudited net earnings for 2006 were $5 million, a compared to $5.2 million the bank earned a year ago. This included a charge of $281,626 for options expense that were required as a result of a change in financial reporting requirements under FASB 123.
“Last year was an important time of building for American Business Bank, as we either opened or began construction on loan production offices in the San Fernando Valley, South Bay and Inland Empire. We also hired new senior professionals throughout the bank, including a new investment officer and a new information technology manager,” said Donald P. Johnson, president and chief executive officer of Los Angeles-based American Business Bank. “We’re confident that these investments in the bank will pave the way toward improved growth in the years to come.”
In 2006, total deposits grew to $486 million, a 6 percent increase from the prior year. Total loans (net of reserves) grew to $221 million, a 19 percent increase from year-end 2005.
“We’re very pleased that we were able to increase customer deposits in the midst of a highly competitive business banking market, as this reflects continued gains in overall market share. Additionally, despite interest rate pressures, the bank was able to produce a 1% return on assets and a return on equity of over 15%,” said Robert F. Schack, chairman of American Business Bank. “As we start 2007, our asset quality is excellent and our balance sheet is extremely strong. We’re confident that the investments we made in hiring more senior professionals and the development of loan production offices in three Southland business communities will help drive our growth next year and beyond.”
Founded in 1998, American Business Bank offers a wide range of financial services to businesses in the middle market. Clients include wholesalers, manufacturers, service businesses, professionals and non-profit organizations. The bank is headquartered in downtown Los Angeles and can be found on the Internet at www.americanbusinessbank.com.
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