Net Income for the quarter increased over the
prior year quarter
Second Quarter 2024 Highlights
- Net income for the quarter totaled $9.5 million, or
$1.02 per diluted share
- Net yield on interest earning assets increased 7 basis
points over the prior quarter
- Total deposits increased $148 million or 4.5% over prior
quarter
- Cost of average deposits of 1.35% compared with 1.24% in
the prior quarter
- Non-interest bearing demand deposits represent 46% of
total deposits
- Net interest margin contracted to 3.00% over prior
quarter of 3.07%
- Total loans increased $28 million or 1.1% over prior
quarter
- Minimal past due loans
- Total borrowings decreased $110 million or 52% over
prior quarter
- Tangible book value per share of $36.38
- Continued status as well-capitalized, the highest
regulatory category
AMERICAN BUSINESS BANK (OTCQX: AMBZ) today reported net income
of $9.5 million or $1.02 per fully diluted share for the quarter
ended June 30, 2024 compared to $10.5 million or $1.13 per fully
diluted share for the quarter ended March 31, 2024, and $9.3
million or $1.01 per fully diluted share for the quarter ending
June 30, 2023, representing a decline of 9% and an increase of 2%,
respectively.
Net income for the first half of 2024 was $20.0 million or $2.15
per fully diluted share, a decrease of $2.4 million or 11%, from
the $22.4 million net income or $2.43 per fully diluted share for
the first half of the prior year.
“We are pleased that our customers continue to grow their
businesses and provide deposits for the Bank to lend in our
community. The deposit growth in the quarter from existing
customers was significant, however, some of the deposit inflows
were event driven and will not remain in the Bank over the long
term. We continue to focus on building an outstanding core deposit
franchise to eliminate borrowings and enhance the net interest
margin as evidenced as we progressed through the second quarter. We
currently have a strong deposit pipeline of new customers and new
relationships who joined the Bank recently that will drive growth
in the last half of the year. Additionally, the potential for a
reduction in interest rates by the Federal Reserve in the last half
of the year could relieve some of the upward pressure on the cost
of deposits. The key to our success continues to be the generation
of new clients and we are well positioned to do so.
“Much has been talked about Commercial Real Estate related to
the banking industry. Certainly some have acknowledged that not all
commercial real estate is the same. We are proud to provide high
touch community banking services to business clients with a
conservative risk approach. Our commercial real estate lending is
primarily owner-occupied which is not dependent on rent rolls, but
reliant on the cash flows of the operating business that occupies
the property. Currently, 60% of total loans consist of the C&I
and Owner Occupied commercial real estate portfolios. These
portfolios highlight our position as the premier
relationship-banking franchise for small to mid-size businesses in
Southern California.
“The Bank continues to attract new experienced relationship
managers. We recently enhanced personnel in a number of offices and
are pleased another senior relationship manager joined since the
end of June. The addition of experienced relationship managers,
although an expense, is an investment in future revenue.
“We continue to deliver superior service and are able to couple
that with a return on average assets of 1.02% and a return on
average equity of 12.7% for the first six months of the year,”
commented Leon Blankstein, ABB’s CEO and Director.
For the quarter ending June 30, 2024, non-interest expense
increased $742 thousand compared to the first quarter of 2024
leading to a decline in net income. However, net income in the
second quarter of 2024 benefitted from a lower provision for credit
losses as compared to the prior quarter and the prior year quarter.
The decrease in provision for credit losses was a result of a
reduction in the reserve for unfunded loan commitments and $58k of
loan recoveries offset by an increase in the allowance for credit
losses mainly due to growth in the loan portfolio. The allowance
for credit losses as a percentage of loans was 1.11% at June 30,
2024 which is a 1 bps increase compared to March 31, 2024.
For the six months ended June 30, 2024, net income was lower
compared to the six months ended June 30, 2023 due to an increase
in the cost of deposits offset by a decrease in the cost of
borrowings.
Net Interest Margin
Net interest margin for the second quarter of 2024 decreased to
3.00% from 3.07% for the first quarter of 2024 primarily due to an
increase in average borrowings. Net interest margin for the second
quarter of 2024 increased to 3.00% from 2.99% for the second
quarter of 2023 primarily due to a decline in average borrowings.
As of June 30, 2024, 62% of the loan portfolio was fixed rate with
a weighted average remaining life of 72 months. Of the variable
rate loans, approximately 45% are indexed to prime of which $399
million are adjustable within 90 days of a change in prime. The net
interest margin for the month of June 2024 was 3.05%.
Net Interest Income
For the quarter ended June 30, 2024, net interest income
decreased by $0.4 million, or 1%, compared to the first quarter of
2024. The current quarter was negatively impacted by a decline in
securities income and an increase in the cost of deposits and
borrowings exceeding the increase in interest earned on loans. For
the quarter ending June 30, 2024, the cost of deposits was 1.35%
representing an increase of 11 bps compared to the quarter ending
March 31, 2024.
For the quarter ended June 30, 2024, net interest income
increased by $0.3 million, or 1%, compared to the second quarter of
2023. The increase compared to the prior year quarter is primarily
due to a decrease in average borrowings. The Loan to Deposit ratio
was 75% and 77% as of June 30, 2024 and 2023, respectively.
Provision for Credit Losses
The following table presents details of the provision for credit
losses for the periods indicated:
Three Months Ended Six Months Ended June 30,2024 March 31,2024 June
30,2023 June 30,2024 June 30,2023 (Figures in $000s)
Addition (recapture) to allowance for loan losses
$
450
$
(226
)
$
1,268
$
224
$
1,581
Addition (recapture) to reserve for unfunded loan commitments
(438
)
438
260
-
410
Total loan-related provision
$
12
$
212
$
1,528
$
224
$
1,991
Addition to allowance for held-to-maturity securities
-
-
-
-
-
Total provision for credit losses
$
12
$
212
$
1,528
$
224
$
1,991
Non-Interest Income
The decrease in non-interest income compared to the prior
quarter is primarily due to the loss on the sale of municipal
investment securities of $397 thousand. The decrease in
non-interest income compared to the prior year quarter is primarily
due to a reduction in the gain on sales of SBA loans. In 2023,
seasoned SBA loans were sold unlike in 2024 when only current
production was sold.
Non-Interest Expense
For the quarter ending June 30, 2024, total non-interest expense
increased $0.7 million compared to the prior quarter and increased
$0.9 million compared to the prior year quarter. The increase
compared to the prior quarter and prior year quarter is primarily
due to an increase in salaries and employee benefits due to an
increase in full time equivalent employees. The efficiency ratio
increased to 55% for the second quarter of 2024 compared to 54% for
the first quarter of 2024 and 54% for the second quarter of
2023.
There were 243 full time equivalent employees at June 30, 2024
compared to 231 a year ago and 233 at March 31, 2024. In July of
2024, Mark Christian, EVP/Chief Operations Officer, departed from
the Bank. The Bank has 42 relationship managers in eight offices
representing no change from a year ago and an increase of two from
the prior quarter.
For the six months ended June 30, 2024, non-interest expense
increased $1.5 million or 4.5% compared to the same period a year
ago, mainly due to increases in salaries and employee benefits.
Income Taxes
The effective income tax rate was 28.0% for the quarter ended
June 30, 2024, 27.9% for the quarter ended March 31, 2024, and
27.6% for the quarter ended June 30, 2023.
Balance Sheet
For the quarter ended June 30, 2024, total loans increased $28
million, or 1.1% compared to the prior quarter. The majority of
this increase was in Commercial and industrial (C&I) loans
mainly due to an increase in line utilization. At June 30, 2024,
the utilization rate for the Bank’s commercial lines of credit
increased to 27% from 26% at March 31, 2024. In addition,
Commercial real estate (CRE) loans increased this quarter compared
to prior quarter. The increase in construction loans is primarily
related to off campus university student housing in greater Los
Angeles.
June 30,2024 March 31,2024 (Figures in $000s) RE - Owner occupied
$
1,095,538
$
1,120,822
RE - Non owner occupied
737,525
718,439
Construction & Land
76,760
62,359
Total CRE Loans
$
1,909,822
$
1,901,621
The following table is the composition of the Owner occupied and
Non owner occupied CRE loans by collateral type:
as of June 30, 2024 Owner occupied Non owner occupied
(Figures in $000s) Industrial
$
662,079
$
310,681
Office
163,740
98,820
Retail
22,102
184,942
Automobile Service Facilities
64,910
22,792
Contractor's Yard
61,698
8,250
Other
29,146
36,162
Miscellaneous
91,863
75,879
Total
$
1,095,538
$
737,525
Total investment securities declined to $1.1 billion at June 30,
2024, which include $561 million or 46% in held-to-maturity (HTM)
securities based on book value. The Bank has no non-agency
mortgage-backed securities in its portfolio. As of June 30, 2024,
the duration of the available-for-sale (AFS) securities portfolio
was 5.8 years, unchanged from March 31, 2024, and an increase from
5.6 years as of June 30, 2023. Accumulated other comprehensive loss
(AOCI) decreased to $74.9 million as of June 30, 2024 from $79.6
million as of March 31, 2024 as market rates relevant to securities
pricing declined. The duration on the held-to-maturity portfolio,
which consists primarily of municipal securities, is 7.7 years. As
of June 30, 2024, the unrealized after tax loss on HTM securities
was $71 million.
During the second quarter of 2024, deposits grew by $148 million
or 5% to $3.5 billion. During 2024, new deposit relationships have
totaled approximately $20 million from 68 new clients. The Bank’s
off-balance sheet products of treasury securities held for clients
decreased by $26 million during the second quarter of 2024 to $221
million and declined by $57 million from prior year quarter. The
Bank has no brokered deposits nor internet solicited deposits.
During the second quarter of 2024, total assets increased $52
million, or 1.4%, total loans increased by $28 million, or 1.1%,
total deposits increased by $148 million, or 4.5%, and borrowings
decreased by $110 million. Borrowings have continued to decline in
July.
The Federal Reserve Bank (FRB) Term Funding Program ended March
11, 2024; however, $100 million is outstanding with a maturity date
of March 11, 2025 at a rate of 5.4%. As of June 30, 2024, the Bank
has $1.7 Billion in borrowing capacity including the outstanding
FRTB borrowing, the FRB discount window and loans pledged at the
Federal Home Loan Bank of San Francisco.
Asset Quality
The following table presents asset quality overview as of the
dates indicated:
June 30,2024 March 31,2024 (Figures in $000s) Non-performing assets
(NPA)
$
6,641
$
7,440
Loans 90+ Days Past Due and Still Accruing
-
-
Total NPA
$
6,641
$
7,440
NPA as a % of total assets
0.24
%
0.19
%
Past Due as a % of total Loans
0.13
%
0.00
%
Criticized as a % of total Loans
5.06
%
5.67
%
Classified as a % of total Loans
1.03
%
0.88
%
During the second quarter of 2024, non-performing assets (NPAs)
decreased by $0.8 million to $6.6 million mainly due to the paydown
of two loans. As of June 30, 2024, NPAs have a $211 thousand
allowance on individually evaluated loans related to four C&I
non-performing loan relationships of which the majority of the
loans have a partial guarantee by the state of California or the
SBA. The increase in classified loans is mainly due to one owner
occupied CRE loan which migrated from the criticized category since
the prior quarter.
The loan portfolio has approximately 10% in office collateral of
which the majority is owner-occupied, and substantially all are
three stories or under and located in suburban markets.
The following table represents the allowance for credit losses
for loans as of and for the dates and periods indicated:
Three Months Ended Six Months Ended June 30,2024 March 31,2024 June
30,2023 June 30,2024 June 30,2023 (Figures in $000s) Balance,
beginning of period
$
28,335
$
28,460
$
26,073
$
28,460
$
29,635
Cumulative effect of change in accounting principle - CECL
-
-
-
-
(3,885
)
Charge-offs
-
(99
)
(179
)
(99
)
(179
)
Recoveries
58
200
10
258
20
Net (charge-offs) / recoveries
$
58
$
101
$
(169
)
$
159
$
(159
)
Provision
450
(226
)
1,268
224
1,581
Balance, end of period
$
28,843
$
28,335
$
27,172
$
28,843
$
27,172
Allowance as a % of loans
1.11
%
1.10
%
1.09
%
1.11
%
1.09
%
The allowance for credit losses for loans increased to $28.8
million during the second quarter of 2024 primarily as a result of
an increase in the loan portfolio. There were no charge offs in the
second quarter of 2024 compared to charge offs of $179 thousand
during the prior year quarter. The Bank recovered $258 thousand in
the first half of 2024; the majority of which had been charged off
in the fourth quarter of 2023. The Bank has four restructured loans
totaling $4.7 million involving borrowers experiencing financial
difficulty.
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)
June March December June
2024
2024
2023
2023
Assets: Cash and Due from Banks
$
84,836
$
52,198
$
32,354
$
74,634
Interest Earning Deposits in Other Financial Institutions
15,511
10,368
10,804
13,558
Investment Securities: US
Agencies
79,700
85,678
91,226
104,916
Mortgage Backed Securities
390,886
394,124
413,870
424,316
State and Municipals
81,884
86,535
91,949
97,005
Corporate Bonds
14,478
13,870
14,157
13,443
Securities Available-for-Sale, at Fair Value
566,948
580,207
611,202
639,680
Mortgage Backed Securities
172,984
176,317
178,985
184,796
State and Municipals
384,048
384,612
390,184
391,381
Allowance for Credit Losses, Held-To-Maturity
(55
)
(55
)
(55
)
(55
)
Securities Held-to-Maturity, at Amortized Cost,
556,977
560,874
569,114
576,122
Net of Allowance for Credit Losses Federal Home Loan Bank Stock, at
Cost
15,000
15,000
15,000
15,000
Total Investment Securities
1,138,925
1,156,081
1,195,316
1,230,802
Loans Receivable: Commercial Real
Estate
1,909,822
1,901,621
1,884,085
1,825,594
Commercial and Industrial
487,557
470,294
491,698
493,615
Residential Real Estate
196,194
194,059
197,281
171,593
Installment and Other
7,471
6,685
6,577
8,590
Total Loans Receivable
2,601,044
2,572,659
2,579,641
2,499,392
Allowance for Credit Losses
(28,843
)
(28,335
)
(28,460
)
(27,172
)
Loans Receivable, Net
2,572,201
2,544,324
2,551,181
2,472,220
Furniture, Equipment and Leasehold Improvements, Net
4,684
4,380
4,589
5,099
Bank/Corporate Owned Life Insurance
29,396
29,185
28,898
28,302
Other Assets
83,096
79,639
79,582
78,021
Total Assets
$
3,928,649
$
3,876,175
$
3,902,724
$
3,902,636
Liabilities:
Non-Interest Bearing Demand Deposits
$
1,597,426
$
1,601,795
$
1,699,560
$
1,758,435
Interest Bearing Transaction Accounts
394,051
367,903
388,152
292,443
Money Market and Savings Deposits
1,202,143
1,083,008
1,145,389
1,010,012
Certificates of Deposit
263,587
256,309
264,312
193,141
Total Deposits
3,457,207
3,309,015
3,497,413
3,254,031
Federal Home Loan Bank Advances / Other Borrowings
100,000
210,000
55,000
320,000
Other Liabilities
40,570
41,186
36,257
45,555
Total Liabilities
$
3,597,777
$
3,560,201
$
3,588,670
$
3,619,586
Shareholders' Equity:
Common Stock
$
209,042
$
208,336
$
208,048
$
206,597
Retained Earnings
196,743
187,243
176,747
155,190
Accumulated Other Comprehensive Income / (Loss)
(74,913
)
(79,605
)
(70,741
)
(78,737
)
Total Shareholders' Equity
$
330,872
$
315,974
$
314,054
$
283,050
Total Liabilities and Shareholders' Equity
$
3,928,649
$
3,876,175
$
3,902,724
$
3,902,636
Standby Letters of Credit
$
43,420
$
43,810
$
43,178
$
41,083
Per Share Information:
Common Shares Outstanding
9,094,248
9,078,782
9,041,911
9,021,739
Book Value Per Share
$
36.38
$
34.80
$
34.73
$
31.37
Tangible Book Value Per Share
$
36.38
$
34.80
$
34.73
$
31.37
American Business Bank Figures in $000, except share and per
share amounts
INCOME STATEMENTS (unaudited) For
the three months ended: June March June
2024
2024
2023
Interest Income: Interest and
Fees on Loans
$
34,358
$
33,664
$
31,280
Interest on Investment Securities
7,431
7,658
7,788
Interest on Interest Earning Deposits in Other Financial
Institutions
839
250
252
Total Interest Income
42,628
41,572
39,320
Interest Expense:
Interest on Interest Bearing Transaction Accounts
1,077
1,002
407
Interest on Money Market and Savings Deposits
7,900
7,265
4,323
Interest on Certificates of Deposits
2,408
2,288
1,024
Interest on Federal Home Loan Bank Advances and Other Borrowings
2,203
1,598
4,875
Total Interest Expense
13,588
12,153
10,629
Net Interest Income
29,040
29,419
28,691
Provision for Credit Losses
12
212
1,528
Net Interest Income after Provision for Credit Losses
29,028
29,207
27,163
Non-Interest Income:
Deposit Fees
1,077
988
994
International Fees
418
406
441
Gain (Loss) on Sale of Investment Securities, Net
(397
)
(110
)
(378
)
Gain on Sale of SBA Loans, Net
12
57
235
Bank/Corporate Owned Life Insurance Income (Expense)
212
287
439
Other
367
487
634
Total Non-Interest Income
1,689
2,115
2,365
Non-Interest Expense:
Salaries and Employee Benefits
12,052
11,649
11,624
Occupancy and Equipment
1,195
1,209
1,200
Professional Services
2,079
1,963
1,812
Promotion Expenses
680
528
606
Other
1,509
1,424
1,406
Total Non-Interest Expense
17,515
16,773
16,648
Earnings before income taxes
13,202
14,549
12,880
Income Tax Expense
3,703
4,052
3,554
NET INCOME
$
9,499
$
10,497
$
9,326
Per Share Information:
Earnings Per Share - Basic
$
1.03
$
1.14
$
1.02
Earnings Per Share - Diluted
$
1.02
$
1.13
$
1.01
Weighted Average Shares - Basic
9,259,562
9,237,317
9,179,590
Weighted Average Shares - Diluted
9,297,939
9,293,818
9,218,320
American Business Bank Figures in $000, except share and per
share amounts
INCOME STATEMENTS (unaudited) For
the six months ended: June June
2024
2023
Interest Income: Interest and
Fees on Loans
$
68,022
$
61,023
Interest on Investment Securities
15,088
15,649
Interest on Interest Earning Deposits in Other Financial
Institutions
1,089
460
Total Interest Income
84,199
77,132
Interest Expense:
Interest on Interest Bearing Transaction Accounts
2,079
638
Interest on Money Market and Savings Deposits
15,165
6,553
Interest on Certificates of Deposits
4,696
1,291
Interest on Federal Home Loan Bank Advances and Other Borrowings
3,801
7,961
Total Interest Expense
25,741
16,443
Net Interest Income
58,458
60,689
Provision for Credit Losses
224
1,991
Net Interest Income after Provision for Credit Losses
58,234
58,698
Non-Interest Income:
Deposit Fees
2,064
2,018
International Fees
824
710
Gain (Loss) on Sale of Investment Securities, Net
(506
)
(589
)
Gain on Sale of SBA Loans, Net
69
846
Bank/Corporate Owned Life Insurance Income (Expense)
499
633
Other
854
1,340
Total Non-Interest Income
3,804
4,958
Non-Interest Expense:
Salaries and Employee Benefits
23,701
22,962
Occupancy and Equipment
2,404
2,393
Professional Services
4,042
3,731
Promotion Expenses
1,208
1,047
Other
2,932
2,686
Total Non-Interest Expense
34,287
32,819
Earnings before income taxes
27,751
30,837
Income Tax Expense
7,755
8,427
NET INCOME
$
19,996
$
22,410
Per Share Information:
Earnings Per Share - Basic
$
2.16
$
2.44
Earnings Per Share - Diluted
$
2.15
$
2.43
Weighted Average Shares - Basic
9,248,440
9,166,753
Weighted Average Shares - Diluted
9,295,879
9,223,461
American Business Bank Figures in $000
QUARTERLY
AVERAGE BALANCE SHEETS AND YIELD ANALYSIS (unaudited)
For the three months ended: June 2024 March
2024 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
$
61,618
$
839
5.48
%
$
19,252
$
250
5.23
%
Investment Securities: US
Agencies
83,020
1,170
5.64
%
89,024
1,285
5.77
%
Mortgage Backed Securities
662,880
3,129
1.89
%
674,033
3,199
1.90
%
State and Municipals
477,603
2,617
2.19
%
485,036
2,656
2.19
%
Corporate Bonds
16,250
188
4.64
%
16,250
188
4.64
%
Securities Available-for-Sale and Held-to-Maturity
1,239,753
7,104
2.29
%
1,264,343
7,328
2.32
%
Federal Home Loan Bank Stock
15,000
327
8.72
%
15,000
330
8.79
%
Total Investment Securities
1,254,753
7,431
2.37
%
1,279,343
7,658
2.39
%
Loans Receivable: Commercial Real
Estate
1,888,292
23,086
4.92
%
1,878,384
22,817
4.89
%
Commercial and Industrial
478,868
8,088
6.79
%
471,147
7,740
6.61
%
Residential Real Estate
196,740
3,115
6.37
%
196,176
3,044
6.24
%
Installment and Other
8,628
69
3.23
%
9,235
63
2.74
%
Total Loans Receivable
2,572,528
34,358
5.37
%
2,554,942
33,664
5.30
%
Total Interest Earning Assets
$
3,888,899
$
42,628
4.34
%
$
3,853,537
$
41,572
4.27
%
Liabilities:
Non-Interest Bearing Demand Deposits
1,607,544
-
0.00
%
1,647,928
-
0.00
%
Interest Bearing Transaction Accounts
384,339
1,077
1.13
%
382,086
1,002
1.05
%
Money Market and Savings Deposits
1,145,701
7,900
2.77
%
1,125,101
7,265
2.60
%
Certificates of Deposit
261,401
2,408
3.70
%
255,490
2,288
3.60
%
Total Deposits
3,398,985
11,385
1.35
%
3,410,605
10,555
1.24
%
Federal Home Loan Bank Advances / Other Borrowings
162,533
2,203
5.45
%
123,022
1,598
5.22
%
Total Interest Bearing Deposits and Borrowings
1,953,974
13,588
2.80
%
1,885,699
12,153
2.59
%
Total Deposits and Borrowings
$
3,561,518
$
13,588
1.53
%
$
3,533,627
$
12,153
1.38
%
Net Interest Income
$
29,040
$
29,419
Net Interest Rate Spread
2.81
%
2.89
%
Net Interest Margin
3.00
%
3.07
%
American Business Bank Figures in $000
QUARTERLY
AVERAGE BALANCE SHEETS AND YIELD ANALYSIS (unaudited)
For the three months ended: June 2024 June
2023 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
$
61,618
$
839
5.48
%
$
20,808
$
252
4.86
%
Investment Securities: US
Agencies
83,020
1,170
5.64
%
109,816
1,255
4.57
%
Mortgage Backed Securities
662,880
3,129
1.89
%
708,368
3,325
1.88
%
State and Municipals
477,603
2,617
2.19
%
500,033
2,759
2.21
%
Corporate Bonds
16,250
188
4.64
%
16,250
186
4.58
%
Securities Available-for-Sale and Held-to-Maturity
1,239,753
7,104
2.29
%
1,334,467
7,525
2.26
%
Federal Home Loan Bank Stock
15,000
327
8.72
%
15,000
263
7.00
%
Total Investment Securities
1,254,753
7,431
2.37
%
1,349,467
7,788
2.31
%
Loans Receivable: Commercial Real
Estate
1,888,292
23,086
4.92
%
1,815,531
21,136
4.67
%
Commercial and Industrial
478,868
8,088
6.79
%
482,506
7,533
6.26
%
Residential Real Estate
196,740
3,115
6.37
%
173,644
2,552
5.89
%
Installment and Other
8,628
69
3.23
%
7,711
59
3.05
%
Total Loans Receivable
2,572,528
34,358
5.37
%
2,479,392
31,280
5.06
%
Total Interest Earning Assets
$
3,888,899
$
42,628
4.34
%
$
3,849,667
$
39,320
4.04
%
Liabilities:
Non-Interest Bearing Demand Deposits
1,607,544
-
0.00
%
1,726,401
-
0.00
%
Interest Bearing Transaction Accounts
384,339
1,077
1.13
%
295,110
407
0.55
%
Money Market and Savings Deposits
1,145,701
7,900
2.77
%
1,003,941
4,323
1.73
%
Certificates of Deposit
261,401
2,408
3.70
%
140,114
1,024
2.93
%
Total Deposits
3,398,985
11,385
1.35
%
3,165,566
5,754
0.73
%
Federal Home Loan Bank Advances / Other Borrowings
162,533
2,203
5.45
%
392,968
4,875
4.98
%
Total Interest Bearing Deposits and Borrowings
1,953,974
13,588
2.80
%
1,832,133
10,629
2.33
%
Total Deposits and Borrowings
$
3,561,518
$
13,588
1.53
%
$
3,558,534
$
10,629
1.20
%
Net Interest Income
$
29,040
$
28,691
Net Interest Rate Spread
2.81
%
2.84
%
Net Interest Margin
3.00
%
2.99
%
American Business Bank Figures in $000
QUARTERLY
AVERAGE BALANCE SHEETS AND YIELD ANALYSIS (unaudited)
For the six months ended: June 2024 June
2023 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
$
40,435
$
1,089
5.42
%
$
19,882
$
460
4.67
%
Investment Securities: US
Agencies
86,022
2,455
5.71
%
114,116
2,458
4.31
%
Mortgage Backed Securities
668,457
6,327
1.89
%
713,865
6,742
1.89
%
State and Municipals
481,320
5,272
2.19
%
502,955
5,551
2.21
%
Corporate Bonds
16,250
377
4.64
%
16,250
370
4.55
%
Securities Available-for-Sale and Held-to-Maturity
1,252,049
14,431
2.31
%
1,347,186
15,121
2.24
%
Federal Home Loan Bank Stock
15,000
657
8.75
%
15,000
528
7.03
%
Total Investment Securities
1,267,049
15,088
2.38
%
1,362,186
15,649
2.30
%
Loans Receivable: Commercial Real
Estate
1,883,338
45,903
4.90
%
1,786,498
40,767
4.60
%
Commercial and Industrial
475,008
15,828
6.70
%
495,877
15,120
6.15
%
Residential Real Estate
196,458
6,159
6.30
%
174,333
4,992
5.77
%
Installment and Other
8,932
132
2.98
%
7,594
144
3.83
%
Total Loans Receivable
2,563,736
68,022
5.34
%
2,464,302
61,023
4.99
%
Total Interest Earning Assets
$
3,871,220
$
84,199
4.30
%
$
3,846,370
$
77,132
3.99
%
Liabilities:
Non-Interest Bearing Demand Deposits
1,627,736
-
0.00
%
1,779,155
-
0.00
%
Interest Bearing Transaction Accounts
383,213
2,079
1.09
%
290,550
638
0.44
%
Money Market and Savings Deposits
1,135,401
15,165
2.69
%
1,068,460
6,553
1.24
%
Certificates of Deposit
258,445
4,696
3.65
%
102,348
1,291
2.54
%
Total Deposits
3,404,795
21,940
1.30
%
3,240,513
8,482
0.53
%
Federal Home Loan Bank Advances / Other Borrowings
142,778
3,801
5.35
%
325,713
7,961
4.93
%
Total Interest Bearing Deposits and Borrowings
1,919,837
25,741
2.70
%
1,787,071
16,443
1.86
%
Total Deposits and Borrowings
$
3,547,573
$
25,741
1.46
%
$
3,566,226
$
16,443
0.93
%
Net Interest Income
$
58,458
$
60,689
Net Interest Rate Spread
2.84
%
3.06
%
Net Interest Margin
3.04
%
3.18
%
American Business Bank Figures in $000
SUPPLEMENTAL DATA (unaudited) June
March December June
2024
2024
2023
2023
Performance Ratios:
Quarterly: Return on Average Assets
(ROAA)
0.97
%
1.08
%
1.17
%
0.96
%
Return on Average Equity (ROAE)
11.93
%
13.42
%
16.05
%
13.23
%
Efficiency Ratio
54.86
%
54.39
%
48.45
%
53.79
%
Year-to-Date Return on Average
Assets (ROAA)
1.02
%
1.08
%
1.13
%
1.16
%
Return on Average Equity (ROAE)
12.67
%
13.42
%
15.70
%
16.30
%
Efficiency Ratio
54.63
%
54.39
%
50.82
%
50.17
%
Capital Adequacy: Total
Risk Based Capital Ratio
12.84
%
12.62
%
12.37
%
12.54
%
Common Equity Tier 1 Capital Ratio
11.94
%
11.72
%
11.47
%
11.61
%
Tier 1 Risk Based Capital Ratio
11.94
%
11.72
%
11.47
%
11.61
%
Tier 1 Leverage Ratio
10.14
%
9.99
%
9.64
%
9.15
%
Tangible Common Equity / Tangible Assets
8.42
%
8.15
%
8.05
%
7.25
%
Asset Quality Overview
Non-Performing Loans
$
6,641
$
7,440
$
7,859
$
5,788
Loans 90+ Days Past Due and Still Accruing
-
-
-
-
Total Non-Performing Loans
6,641
7,440
7,859
5,788
Loans Modified with Financial Difficulty
$
4,696
$
229
$
231
$
239
Other Real Estate Owned
-
-
-
-
ACL / Loans Receivable
1.11
%
1.10
%
1.10
%
1.09
%
Non-Performing Loans / Total Loans Receivable
0.36
%
0.29
%
0.30
%
0.23
%
Non-Performing Assets / Total Assets
0.24
%
0.19
%
0.20
%
0.15
%
Net Charge-Offs (Recoveries) quarterly
$
(58
)
$
(101
)
$
190
$
170
Net Charge-Offs (Recoveries) year-to-date
$
(159
)
$
(101
)
$
344
$
159
Net Charge-Offs (Recoveries) year-to-date / Average
(0.01
%)
(0.00
%)
0.01
%
0.01
%
Loans Receivable
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240729796866/en/
Karen Schoenbaum EVP/CFO (213) 430-4000 www.americanbb.bank