AMERICAN BUSINESS BANK AMERICAN BUSINESS BANK (OTCQX: AMBZ) today reported net income of $9.1 million or $1.00 per fully diluted share for the second quarter of 2021 compared to $8.9 million or $0.99 per fully diluted share for the first quarter of 2021, an increase of 2%. For the quarter ended June 30, 2021 net income associated with the PPP program was $4.3 million or $0.47 per fully diluted share, an increase of 20% compared to $3.6 million or $0.39 per fully diluted share for the first quarter of 2021.
“The Bank realized exceptional loan growth in the second quarter of 2021 at a 30% annualized rate primarily from new relationships. Growth was diversified in owner and non-owner occupied commercial real estate and C&I loans across all of the regional offices. Business momentum remains strong as new relationships join the Bank which will also drive core deposit growth. The Bank’s level of demonstrated high service resonates with entrepreneurial owners coming out of the pandemic as larger banks struggle to deliver. Additional loan growth allows the net interest income to grow despite continued compression to the net interest margin in this low rate environment.
“ABB’s high level of participation in the PPP program places the bank in the upper echelon in the entire U.S. as measured by PPP loans as a percentage of total loans. The timing of PPP loan forgiveness has met expectations, and income from the program has enabled ABB to step up our community support with planned funding of a small business grant program to benefit minority and women-owned businesses.
“Additionally, we remain true to our original value proposition and culture to help guide and bank the best small to middle market companies in Southern California. Our ability to not only be excellent bankers in all the traditional sense, of deposits and loans as well as consultants and stewards, delivers an unmatched banking relationship,” said Leon Blankstein, ABB’s President, CEO and Director.
Net interest income for the second quarter of 2021 was $27.1 million, an 11% increase over the first quarter of 2021 as realized deferred fees on PPP loans increased by $1.2 million driven by an increase in PPP loan forgiveness. Interest income on loans, excluding PPP loan income, increased by $1.1 million in the second quarter of 2021 compared to the first quarter of 2021 as loans, excluding PPP loans, increased by an average of $82 million. Additionally, during the second quarter of 2021, the Bank recovered $342,000 of interest on a nonaccrual loan and a previously charged off loan. Interest income on the securities portfolio increased by $504,000 in the second quarter of 2021 compared to the first quarter of 2021, as investment securities increased by an average of $80 million. For the quarters ending June 30, 2021 and March 31, 2021, the cost of deposits was 0.06%. For the quarter ending June 30, 2021, there was no provision for loan losses as the economy continues to improve and the Bank received a recovery on a previously charged off loan. The allowance for loan losses as a percentage of loans, excluding PPP loans, was 1.40% at June 30, 2021.
Net income was $18.0 million or $1.98 per fully diluted share for the six months ended June 30, 2021, compared to $11.6 million or $1.30 per fully diluted share for the six months ended June 30, 2020. The increase was primarily due to $6.9 million of accelerated realization of net deferred PPP processing fees on forgiven PPP loans, an increase in interest on investment securities of $1.8 million as a result of an increase in investment securities and no provision for loan losses. This additional income was offset by a $2 million nonrecurring legal settlement expense and a $1.8 million increase in salary and bonus expense.
Net Interest Margin
Net interest margin for the second quarter of 2021 was 3.00% compared to 2.92% in the first quarter of 2021 and 2.88% in the second quarter of 2020. Excluding the impact of PPP loans the net interest margin was 2.75% for the second quarter of 2021 and 2.82% for the first quarter of 2021. The recovery of interest on nonaccrual/charged off loans in the second quarter increased the net interest margin by 0.04% and the loan yield by 0.06%. Without the acceleration of fees on forgiveness, the yield on PPP loans was 1.46% for the second quarter of 2021. The decrease in the net interest margin excluding the impact of PPP loans compared to the prior year is due to a decline of the core loan yield to 4.12% offset by loan growth and an increase in investment securities. As of June 30, 2021, approximately 47% of the Bank’s variable-rate loans are indexed to prime and 76% of these loans are at or above interest rate floors.
Net Interest Income
Net interest income increased for the second quarter of 2021 compared to second quarter of 2020 by $5.4 million, or 25%, and increased compared to the first quarter of 2021 by $2.6 million, or 11%. This was primarily due to the accelerated realization of net deferred PPP processing fees as 40% and 18% of PPP loans originated in 2020 were forgiven in the second quarter of 2021 and the first quarter of 2021, respectively. The Bank received $342,000 of interest on a payoff of a nonaccrual loan and in a full recovery of a charged off loan.
| (Figures in $000s, except per share amounts) | As of or For the Six Months Ended: | As of or For the Three Months Ended: | ||||||||||
| June 2021 | June 2020 | June 2021 | March 2021 | |||||||||
| PPP loans - first round, net | $ | 152,827 | $ | 675,666 | $ | 152,827 | $ | 424,327 | ||||
| PPP loans - second round, net |
| 233,561 |
| - |
| 233,561 |
| 217,780 | ||||
| PPP Total Loans, net | $ | 386,388 | $ | 675,666 | $ | 386,388 | $ | 642,107 | ||||
| 1% Coupon Interest | $ | 2,930 | $ | 1,381 | $ | 1,403 | $ | 1,527 | ||||
| Amortized fees |
| 1,288 |
| 1,613 |
| 620 |
| 668 | ||||
| Accelerated fees |
| 6,891 |
| - |
| 4,046 |
| 2,845 | ||||
| Total PPP loan income | $ | 11,109 | $ | 2,994 | $ | 6,069 | $ | 5,040 | ||||
| Total PPP loan income after tax | $ | 7,835 | $ | 2,117 | $ | 4,280 | $ | 3,555 | ||||
| Total PPP loan income after tax per share - diluted | $ | 0.86 | $ | 0.24 | $ | 0.47 | $ | 0.39 | ||||
As of July 8, 2021, approximately 79% of PPP loan balances originated in 2020 have been forgiven, approximately 9% of balances are in the forgiveness review or submission process and approximately 12% of balances have yet to apply for forgiveness.
On a year-to-date basis, net interest income was $51.6 million for the six months ended June 30, 2021, compared to $41.8 million for the same period a year ago. The increase of $9.8 million or 24% is primarily due to the accelerated realization of net deferred PPP processing fees on forgiven PPP loans of $6.9 million and an increase in interest on investment securities of $1.8 million as a result of an increase in investment securities.
Non Interest Income
Fluctuations in non-interest income between quarter and year-to-date are primarily due to Bank/Corporate owned life insurance (BOLI) income as a result of the decrease in the value of the policies that are invested in mutual funds. On a year-to-date basis, deposit fees increased $252,000 from the period a year ago due to growth in commercial business customers and lower earnings credit.
Non Interest Expense
For the second quarter of 2021, total non-interest expense increased $2.5 million compared to the first quarter of 2021 and second quarter of 2020 primarily due to a $2 million expense for settlement of a legal matter and an increase in bonus expense as a result of higher loan production. The efficiency ratio increased/decreased to 58% for the second quarter of 2021 compared to 54% for the first quarter of 2021 and 59% for the second quarter of 2020.
Full time equivalent employees at June 30, 2021 were 192 compared to 195 a year ago. Full time equivalent employees were 192 at March 31, 2021. The Bank has 35 relationship managers in seven offices, an increase over the year of five and the prior quarter of one. The higher mix of relationship managers to back office personnel is the result of technology implementations that continue in 2021.
On a year-to-date basis, non-interest expense for the six months ended June 30, 2021 increased $4.4 million or 17% compared to the same period a year ago, due to the settlement of a legal matter, an increase in salaries and bonus expense reflective of higher loan growth and PPP1 forgiveness with added expense for the deferred compensation plan (DCP) as a result of the market performance of DCP investment balances.
Balance Sheet
Total assets increased $27 million, or 1% from March 31, 2021 to $3.7 billion. Total loans, excluding PPP loans, increased $118 million, to $1.7 billion from the first quarter of 2021 as CRE loans increased by $56 million, C&I loan growth and line utilization increased by $37 million and residential real estate loans increased by $25 million. At June 30, 2021, the utilization rate for the Bank’s commercial lines of credit was 27% compared to 24% at March 31, 2021. Investment securities increased by $214 million from the first quarter of 2021 to $1.3 billion. During the second quarter, the Bank designated $73 million of municipal bonds from available-for-sale to held-to-maturity to reduce volatility to equity in a rising rate environment. The duration of the securities portfolio declined from 4.7 to 4.5 years from March 31, 2021 to June 30, 2021.
At June 30, 2021, the tangible common equity ratio was 7.0%; excluding PPP loans, the tangible common equity ratio was 7.9%.
On June 23, 2021, the Bank declared a ten percent stock dividend per common share to be payable on July 22, 2021 to shareholders of record at the close of business on June 23, 2021.
Asset Quality
Non-performing assets declined to $54,000 at June 30, 2021 from $2.2 million at March 31, 2021, representing 0.01% of total assets (excluding PPP loans). The Bank continues to have no Other Real Estate Owned. Loans that were past due, criticized and classifieds represented 0.00%, 4.24%, and 0.68%, respectively of total loans at June 30, 2021 compared to 0.00%, 6.02%, and 0.98%, respectively of total loans at March 31, 2021 (excluding PPP loans in all periods). As of June 30, 2021, the Bank had total specific reserve of $52,000 related to one $214,000 impaired loan relationship. As of June 30, 2021, the allowance for loan losses totaled $23.3 million, or 1.40% of total loans (excluding PPP loans); compared to 1.48% at March 31, 2021. 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. During the second quarter of 2021, the Bank recorded no loan charge-offs and recoveries of $395,000.
In response to the COVID-19 pandemic, the Bank established a loan payment deferment program to assist its customers who are experiencing short-term financial or operational problems. As of June 30, 2021, there were no loans on a loan payment deferment program. As of March 31, 2021, there were five loans with a total principal balance of $11.2 million (0.5% of total loans) on a loan payment deferment program subsequently all have made their payments.
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 six 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 and Inland Empire in Ontario.
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 | ||||||||||
2021 |
| 2021 |
| 2020 |
| 2020 | ||||||||||
| Assets: | ||||||||||||||||
| Cash and Due from Banks | $ | 74,242 |
| $ | 38,637 |
| $ | 44,334 |
| $ | 68,072 |
| ||||
| Interest Earning Deposits in Other Financial Institutions |
| 269,596 |
|
| 350,354 |
|
| 201,719 |
|
| 232,770 |
| ||||
| Investment Securities: | ||||||||||||||||
| US Agencies |
| 210,849 |
|
| 218,794 |
|
| 228,102 |
|
| 240,012 |
| ||||
| Mortgage Backed Securities |
| 577,726 |
|
| 407,651 |
|
| 419,393 |
|
| 313,119 |
| ||||
| State and Municipals |
| 213,729 |
|
| 270,161 |
|
| 279,045 |
|
| 133,128 |
| ||||
| US Treasuries |
| - |
|
| - |
|
| - |
|
| 10,081 |
| ||||
| Corporate Bonds |
| 10,966 |
|
| 8,848 |
|
| 12,725 |
|
| 19,502 |
| ||||
| Securities Available-for-Sale, at Fair Value |
| 1,013,270 |
|
| 905,454 |
|
| 939,265 |
|
| 715,842 |
| ||||
| State and Municipals Securities Held-to-Maturity, at Amortized Cost |
| 255,953 |
|
| 151,041 |
|
| 143,229 |
|
| 86,289 |
| ||||
| Federal Home Loan Bank Stock, at Cost |
| 11,779 |
|
| 10,864 |
|
| 10,864 |
|
| 10,864 |
| ||||
| Total Investment Securities |
| 1,281,002 |
|
| 1,067,359 |
|
| 1,093,358 |
|
| 812,995 |
| ||||
| Loans Receivable: | ||||||||||||||||
| Commercial Real Estate |
| 1,193,612 |
|
| 1,137,493 |
|
| 1,095,811 |
|
| 1,007,655 |
| ||||
| Commercial and Industrial |
| 364,019 |
|
| 327,519 |
|
| 333,021 |
|
| 370,786 |
| ||||
| SBA Payroll Protection Program |
| 386,388 |
|
| 642,107 |
|
| 551,190 |
|
| 675,666 |
| ||||
| Residential Real Estate |
| 105,711 |
|
| 80,686 |
|
| 76,483 |
|
| 71,112 |
| ||||
| Installment and Other |
| 4,261 |
|
| 4,212 |
|
| 4,405 |
|
| 6,039 |
| ||||
| Total Loans Receivable |
| 2,053,991 |
|
| 2,192,017 |
|
| 2,060,910 |
|
| 2,131,258 |
| ||||
| Allowance for Loan Losses |
| (23,341 | ) |
| (22,946 | ) |
| (22,931 | ) |
| (22,399 | ) | ||||
| Loans Receivable, Net |
| 2,030,650 |
|
| 2,169,071 |
|
| 2,037,979 |
|
| 2,108,859 |
| ||||
| Furniture, Equipment and Leasehold Improvements, Net |
| 7,074 |
|
| 7,472 |
|
| 7,857 |
|
| 8,520 |
| ||||
| Bank/Corporate Owned Life Insurance |
| 28,325 |
|
| 28,070 |
|
| 27,738 |
|
| 26,651 |
| ||||
| Other Assets |
| 41,440 |
|
| 44,247 |
|
| 41,277 |
|
| 37,396 |
| ||||
| Total Assets | $ | 3,732,329 |
| $ | 3,705,210 |
| $ | 3,454,262 |
| $ | 3,295,263 |
| ||||
| Liabilities: | ||||||||||||||||
| Non-Interest Bearing Demand Deposits | $ | 1,830,832 |
| $ | 1,855,756 |
| $ | 1,686,091 |
| $ | 1,684,662 |
| ||||
| Interest Bearing Transaction Accounts |
| 257,726 |
|
| 260,610 |
|
| 258,950 |
|
| 204,133 |
| ||||
| Money Market and Savings Deposits |
| 1,311,603 |
|
| 1,270,228 |
|
| 1,191,591 |
|
| 1,100,191 |
| ||||
| Certificates of Deposit |
| 34,543 |
|
| 34,267 |
|
| 35,778 |
|
| 35,713 |
| ||||
| Total Deposits |
| 3,434,704 |
|
| 3,420,861 |
|
| 3,172,410 |
|
| 3,024,699 |
| ||||
| Federal Home Loan Bank Advances / Other Borrowings |
| - |
|
| - |
|
| - |
|
| - |
| ||||
| Other Liabilities |
| 35,031 |
|
| 36,265 |
|
| 34,014 |
|
| 43,206 |
| ||||
| Total Liabilities | $ | 3,469,735 |
| $ | 3,457,126 |
| $ | 3,206,424 |
| $ | 3,067,905 |
| ||||
| Shareholders' Equity: | ||||||||||||||||
| Common Stock | $ | 200,904 |
| $ | 166,956 |
| $ | 166,263 |
| $ | 165,032 |
| ||||
| Retained Earnings |
| 60,337 |
|
| 84,473 |
|
| 75,557 |
|
| 58,359 |
| ||||
| Accumulated Other Comprehensive Income / (Loss) |
| 1,353 |
|
| (3,345 | ) |
| 6,018 |
|
| 3,967 |
| ||||
| Total Shareholders' Equity | $ | 262,594 |
| $ | 248,084 |
| $ | 247,838 |
| $ | 227,358 |
| ||||
| Total Liabilities and Shareholders' Equity | $ | 3,732,329 |
| $ | 3,705,210 |
| $ | 3,454,262 |
| $ | 3,295,263 |
| ||||
| Standby Letters of Credit | $ | 33,184 |
| $ | 32,115 |
| $ | 33,469 |
| $ | 37,259 |
| ||||
| Per Share Information: | ||||||||||||||||
| Common Shares Outstanding |
| 8,799,072 |
|
| 8,775,324 |
|
| 8,736,605 |
|
| 8,694,516 |
| ||||
| Book Value Per Share | $ | 29.84 |
| $ | 28.27 |
| $ | 28.37 |
| $ | 26.15 |
| ||||
| Tangible Book Value Per Share | $ | 29.84 |
| $ | 28.27 |
| $ | 28.37 |
| $ | 26.15 |
| ||||
* | All per share amounts and number of shares outstanding have the 10% stock dividend retroactively applied | |||||||||
| American Business Bank | |||||||||||
| Figures in $000, except share and per share amounts | |||||||||||
| INCOME STATEMENTS (unaudited) | |||||||||||
| For the three months ended: | |||||||||||
June |
| March |
| June | |||||||
2021 |
| 2021 |
| 2020 | |||||||
| Interest Income: | |||||||||||
| Interest and Fees on Loans | $ | 22,861 | $ | 20,774 |
| $ | 19,169 |
| |||
| Interest on Investment Securities |
| 4,626 |
| 4,122 |
|
| 3,084 |
| |||
| Interest on Interest Earning Deposits in Other Financial Institutions |
| 99 |
| 66 |
|
| 93 |
| |||
| Total Interest Income |
| 27,586 |
| 24,962 |
|
| 22,346 |
| |||
| Interest Expense: | |||||||||||
| Interest on Interest Bearing Transaction Accounts |
| 40 |
| 41 |
|
| 37 |
| |||
| Interest on Money Market and Savings Deposits |
| 426 |
| 414 |
|
| 538 |
| |||
| Interest on Certificates of Deposits |
| 12 |
| 14 |
|
| 28 |
| |||
| Interest on Federal Home Loan Bank Advances and Other Borrowings |
| - |
| - |
|
| - |
| |||
| Total Interest Expense |
| 478 |
| 469 |
|
| 603 |
| |||
| Net Interest Income |
| 27,108 |
| 24,493 |
|
| 21,743 |
| |||
| Provision for Loan Losses |
| - |
| - |
|
| 680 |
| |||
| Net Interest Income after Provision for Loan Losses |
| 27,108 |
| 24,493 |
|
| 21,063 |
| |||
| Non-Interest Income: | |||||||||||
| Deposit Fees |
| 763 |
| 745 |
|
| 640 |
| |||
| International Fees |
| 260 |
| 263 |
|
| 244 |
| |||
| Gain (Loss) on Sale of Investment Securities, Net |
| - |
| (15 | ) |
| (184 | ) | |||
| Gain on Sale of SBA Loans, Net |
| - |
| - |
|
| - |
| |||
| Bank/Corporate Owned Life Insurance Income (Expense) |
| 255 |
| 332 |
|
| 953 |
| |||
| Other |
| 192 |
| 202 |
|
| 143 |
| |||
| Total Non-Interest Income |
| 1,470 |
| 1,527 |
|
| 1,796 |
| |||
| Non-Interest Expense: | |||||||||||
| Salaries and Employee Benefits |
| 10,231 |
| 9,663 |
|
| 9,384 |
| |||
| Occupancy and Equipment |
| 1,151 |
| 1,146 |
|
| 953 |
| |||
| Professional Services |
| 1,560 |
| 1,703 |
|
| 1,627 |
| |||
| Promotion Expenses |
| 297 |
| 222 |
|
| 267 |
| |||
| Other |
| 3,226 |
| 1,200 |
|
| 1,693 |
| |||
| Total Non-Interest Expense |
| 16,465 |
| 13,934 |
|
| 13,924 |
| |||
| Earnings before income taxes |
| 12,113 |
| 12,086 |
|
| 8,935 |
| |||
| Income Tax Expense |
| 3,054 |
| 3,170 |
|
| 2,200 |
| |||
| NET INCOME | $ | 9,059 | $ | 8,916 |
| $ | 6,735 |
| |||
| Add back: | |||||||||||
| After-Tax Gain (Loss) on Sale of Investment Securities, Net | $ | - | $ | 11 |
| $ | 139 |
| |||
| Core Net Income | $ | 9,059 | $ | 8,927 |
| $ | 6,874 |
| |||
| Per Share Information: | |||||||||||
| Earnings Per Share - Basic | $ | 1.01 | $ | 1.00 |
| $ | 0.76 |
| |||
| Earnings Per Share - Diluted | $ | 1.00 | $ | 0.99 |
| $ | 0.76 |
| |||
| Core Earnings Per Share - Diluted | $ | 1.00 | $ | 0.99 |
| $ | 0.77 |
| |||
| Weighted Average Shares - Basic |
| 8,961,797 |
| 8,921,941 |
|
| 8,850,734 |
| |||
| Weighted Average Shares - Diluted |
| 9,095,569 |
| 9,033,128 |
|
| 8,907,089 |
| |||
* | All per share amounts and number of shares outstanding have the 10% stock dividend retroactively applied | |||||||||
| American Business Bank | ||||||||
| Figures in $000, except share and per share amounts | ||||||||
| INCOME STATEMENTS (unaudited) | ||||||||
For the six months ended: | ||||||||
June |
| June | ||||||
2021 |
| 2020 | ||||||
| Interest Income: | ||||||||
| Interest and Fees on Loans | $ | 43,635 |
| $ | 36,464 |
| ||
| Interest on Investment Securities |
| 8,748 |
|
| 6,997 |
| ||
| Interest on Interest Earning Deposits in Other Financial Institutions |
| 165 |
|
| 147 |
| ||
| Total Interest Income |
| 52,548 |
|
| 43,608 |
| ||
| Interest Expense: | ||||||||
| Interest on Interest Bearing Transaction Accounts |
| 81 |
|
| 141 |
| ||
| Interest on Money Market and Savings Deposits |
| 840 |
|
| 1,505 |
| ||
| Interest on Certificates of Deposits |
| 26 |
|
| 69 |
| ||
| Interest on Federal Home Loan Bank Advances and Other Borrowings |
| - |
|
| 131 |
| ||
| Total Interest Expense |
| 947 |
|
| 1,846 |
| ||
| Net Interest Income |
| 51,601 |
|
| 41,762 |
| ||
| Provision for Loan Losses |
| - |
|
| 2,114 |
| ||
| Net Interest Income after Provision for Loan Losses |
| 51,601 |
|
| 39,648 |
| ||
| Non-Interest Income: | ||||||||
| Deposit Fees |
| 1,507 |
|
| 1,255 |
| ||
| International Fees |
| 523 |
|
| 527 |
| ||
| Gain (Loss) on Sale of Investment Securities, Net |
| (15 | ) |
| (137 | ) | ||
| Gain on Sale of SBA Loans, Net |
| - |
|
| 19 |
| ||
| Bank/Corporate Owned Life Insurance Income (Expense) |
| 587 |
|
| 203 |
| ||
| Other |
| 394 |
|
| 341 |
| ||
| Total Non-Interest Income |
| 2,996 |
|
| 2,208 |
| ||
| Non-Interest Expense: | ||||||||
| Salaries and Employee Benefits |
| 19,893 |
|
| 17,603 |
| ||
| Occupancy and Equipment |
| 2,297 |
|
| 1,873 |
| ||
| Professional Services |
| 3,263 |
|
| 3,108 |
| ||
| Promotion Expenses |
| 519 |
|
| 633 |
| ||
| Other |
| 4,426 |
|
| 2,755 |
| ||
| Total Non-Interest Expense |
| 30,398 |
|
| 25,972 |
| ||
| Earnings before income taxes |
| 24,199 |
|
| 15,884 |
| ||
| Income Tax Expense |
| 6,224 |
|
| 4,310 |
| ||
| NET INCOME | $ | 17,975 |
| $ | 11,574 |
| ||
| Add back: | ||||||||
| After-Tax Gain (Loss) on Sale of Investment Securities, Net | $ | 11 |
| $ | 100 |
| ||
| Core Net Income | $ | 17,986 |
| $ | 11,674 |
| ||
| Per Share Information: | ||||||||
| Earnings Per Share - Basic | $ | 2.01 |
| $ | 1.31 |
| ||
| Earnings Per Share - Diluted | $ | 1.98 |
| $ | 1.30 |
| ||
| Core Earnings Per Share - Diluted | $ | 1.98 |
| $ | 1.31 |
| ||
| Weighted Average Shares - Basic |
| 8,941,869 |
|
| 8,845,307 |
| ||
| Weighted Average Shares - Diluted |
| 9,064,349 |
|
| 8,920,840 |
| ||
* | All per share amounts and number of shares outstanding have the 10% stock dividend retroactively applied | |||||||||
| American Business Bank | |||||||||||||||||
| Figures in $000 | |||||||||||||||||
| QUARTERLY AVERAGE BALANCE SHEETS AND YIELD ANALYSIS (unaudited) | |||||||||||||||||
| For the three months ended: | |||||||||||||||||
| June 2021 | March 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 | $ | 329,324 | $ | 99 | 0.12% | $ | 216,373 | $ | 66 | 0.12% | |||||||
| Investment Securities: | |||||||||||||||||
| US Agencies |
| 216,143 |
| 383 | 0.71% |
| 225,144 |
| 408 | 0.72% | |||||||
| Mortgage Backed Securities |
| 466,148 |
| 1,565 | 1.34% |
| 398,884 |
| 1,229 | 1.23% | |||||||
| State and Municipals |
| 435,608 |
| 2,394 | 2.20% |
| 414,773 |
| 2,267 | 2.19% | |||||||
| US Treasuries |
| - |
| - | 0.00% |
| - |
| - | 0.00% | |||||||
| Corporate Bonds |
| 10,085 |
| 82 | 3.25% |
| 10,273 |
| 82 | 3.20% | |||||||
| Securities Available-for-Sale and Held-to-Maturity |
| 1,127,984 |
| 4,424 | 1.57% |
| 1,049,074 |
| 3,986 | 1.52% | |||||||
| Federal Home Loan Bank Stock |
| 11,628 |
| 202 | 6.95% |
| 10,864 |
| 136 | 5.01% | |||||||
| Total Investment Securities |
| 1,139,612 |
| 4,626 | 1.62% |
| 1,059,938 |
| 4,122 | 1.56% | |||||||
| Loans Receivable: | |||||||||||||||||
| Commercial Real Estate |
| 1,163,231 |
| 11,944 | 4.12% |
| 1,105,890 |
| 11,463 | 4.20% | |||||||
| Commercial and Industrial |
| 340,067 |
| 3,921 | 4.62% |
| 330,778 |
| 3,462 | 4.24% | |||||||
| SBA Payroll Protection Program |
| 555,338 |
| 6,069 | 4.38% |
| 609,638 |
| 5,040 | 3.35% | |||||||
| Residential Real Estate |
| 93,126 |
| 889 | 3.83% |
| 78,034 |
| 758 | 3.94% | |||||||
| Installment and Other |
| 5,613 |
| 38 | 2.75% |
| 4,957 |
| 51 | 4.15% | |||||||
| Total Loans Receivable |
| 2,157,375 |
| 22,861 | 4.25% |
| 2,129,297 |
| 20,774 | 3.96% | |||||||
| Total Interest Earning Assets | $ | 3,626,311 | $ | 27,586 | 3.01% | $ | 3,405,608 | $ | 24,962 | 2.93% | |||||||
| Liabilities: | |||||||||||||||||
| Non-Interest Bearing Demand Deposits |
| 1,871,930 |
| - | 0.00% |
| 1,730,626 |
| - | 0.00% | |||||||
| Interest Bearing Transaction Accounts |
| 267,490 |
| 40 | 0.06% |
| 255,416 |
| 41 | 0.07% | |||||||
| Money Market and Savings Deposits |
| 1,278,436 |
| 426 | 0.13% |
| 1,223,414 |
| 414 | 0.14% | |||||||
| Certificates of Deposit |
| 34,446 |
| 12 | 0.14% |
| 34,865 |
| 14 | 0.16% | |||||||
| Total Deposits |
| 3,452,302 |
| 478 | 0.06% |
| 3,244,321 |
| 469 | 0.06% | |||||||
| Federal Home Loan Bank Advances / Other Borrowings |
| 7 |
| - | 0.37% |
| - |
| - | 0.00% | |||||||
| Total Interest Bearing Deposits and Borrowings |
| 1,580,379 |
| 478 | 0.12% |
| 1,513,695 |
| 469 | 0.13% | |||||||
| Total Deposits and Borrowings | $ | 3,452,309 | $ | 478 | 0.06% | $ | 3,244,321 | $ | 469 | 0.06% | |||||||
| Net Interest Income | $ | 27,108 | $ | 24,493 | |||||||||||||
| Net Interest Rate Spread | 2.95% | 2.87% | |||||||||||||||
| Net Interest Margin | 3.00% | 2.92% | |||||||||||||||
| Net Interest Margin, excluding SBA PPP | 2.75% | 2.82% | |||||||||||||||
| American Business Bank | |||||||||||||||||
| Figures in $000 | |||||||||||||||||
| QUARTERLY AVERAGE BALANCE SHEETS AND YIELD ANALYSIS (unaudited) | |||||||||||||||||
| For the three months ended: | |||||||||||||||||
| June 2021 | June 2020 | ||||||||||||||||
| 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 | $ | 329,324 | $ | 99 | 0.12% | $ | 264,722 | $ | 93 | 0.14% | |||||||
| Investment Securities: | |||||||||||||||||
| US Agencies |
| 216,143 |
| 383 | 0.71% |
| 260,033 |
| 270 | 0.41% | |||||||
| Mortgage Backed Securities |
| 466,148 |
| 1,565 | 1.34% |
| 271,173 |
| 1,434 | 2.12% | |||||||
| State and Municipals |
| 435,608 |
| 2,394 | 2.20% |
| 174,950 |
| 1,196 | 2.73% | |||||||
| US Treasuries |
| - |
| - | 0.00% |
| 10,018 |
| 37 | 1.48% | |||||||
| Corporate Bonds |
| 10,085 |
| 82 | 3.25% |
| 19,908 |
| 147 | 2.95% | |||||||
| Securities Available-for-Sale and Held-to-Maturity |
| 1,127,984 |
| 4,424 | 1.57% |
| 736,082 |
| 3,084 | 1.68% | |||||||
| Federal Home Loan Bank Stock |
| 11,628 |
| 202 | 6.95% |
| 10,753 |
| - | 0.00% | |||||||
| Total Investment Securities |
| 1,139,612 |
| 4,626 | 1.62% |
| 746,835 |
| 3,084 | 1.65% | |||||||
| Loans Receivable: | |||||||||||||||||
| Commercial Real Estate |
| 1,163,231 |
| 11,944 | 4.12% |
| 1,003,318 |
| 11,031 | 4.42% | |||||||
| Commercial and Industrial |
| 340,067 |
| 3,921 | 4.62% |
| 402,179 |
| 4,380 | 4.38% | |||||||
| SBA Payroll Protection Program |
| 555,338 |
| 6,069 | 4.38% |
| 539,535 |
| 2,994 | 2.23% | |||||||
| Residential Real Estate |
| 93,126 |
| 889 | 3.83% |
| 70,984 |
| 705 | 4.00% | |||||||
| Installment and Other |
| 5,613 |
| 38 | 2.75% |
| 5,037 |
| 59 | 4.75% | |||||||
| Total Loans Receivable |
| 2,157,375 |
| 22,861 | 4.25% |
| 2,021,053 |
| 19,169 | 3.81% | |||||||
| Total Interest Earning Assets | $ | 3,626,311 | $ | 27,586 | 3.01% | $ | 3,032,610 | $ | 22,346 | 2.91% | |||||||
| Liabilities: | |||||||||||||||||
| Non-Interest Bearing Demand Deposits |
| 1,871,930 |
| - | 0.00% |
| 1,624,250 |
| - | 0.00% | |||||||
| Interest Bearing Transaction Accounts |
| 267,490 |
| 40 | 0.06% |
| 201,439 |
| 37 | 0.07% | |||||||
| Money Market and Savings Deposits |
| 1,278,436 |
| 426 | 0.13% |
| 1,027,292 |
| 538 | 0.21% | |||||||
| Certificates of Deposit |
| 34,446 |
| 12 | 0.14% |
| 35,614 |
| 28 | 0.31% | |||||||
| Total Deposits |
| 3,452,302 |
| 478 | 0.06% |
| 2,888,595 |
| 603 | 0.08% | |||||||
| Federal Home Loan Bank Advances / Other Borrowings |
| 7 |
| - | 0.37% |
| - |
| - | 0.00% | |||||||
| Total Interest Bearing Deposits and Borrowings |
| 1,580,379 |
| 478 | 0.12% |
| 1,264,345 |
| 603 | 0.19% | |||||||
| Total Deposits and Borrowings | $ | 3,452,309 | $ | 478 | 0.06% | $ | 2,888,595 | $ | 603 | 0.08% | |||||||
| Net Interest Income | $ | 27,108 | $ | 21,743 | |||||||||||||
| Net Interest Rate Spread | 2.95% | 2.83% | |||||||||||||||
| Net Interest Margin | 3.00% | 2.88% | |||||||||||||||
| Net Interest Margin, excluding SBA PPP | 2.75% | 3.02% | |||||||||||||||
| American Business Bank | |||||||||||||||||
| Figures in $000 | |||||||||||||||||
| YEAR-TO-DATE AVERAGE BALANCE SHEETS AND YIELD ANALYSIS (unaudited) | |||||||||||||||||
| For the six months ended: | |||||||||||||||||
| June 2021 | June 2020 | ||||||||||||||||
| Average | Interest | Average | Average | Interest | Average | ||||||||||||
| Balance | Inc/Exp | Yield/Rate | Balance | Inc/Exp | Yield/Rate | ||||||||||||
| Interest Earning Assets: | |||||||||||||||||
| Interest Earning Deposits with Other Financial Institutions | $ | 273,160 | $ | 165 | 0.12% | $ | 146,139 | $ | 147 | 0.20% | |||||||
| Investment Securities: | |||||||||||||||||
| US Agencies |
| 220,619 |
| 790 | 0.72% |
| 268,943 |
| 946 | 0.70% | |||||||
| Mortgage Backed Securities |
| 432,702 |
| 2,794 | 1.29% |
| 279,234 |
| 3,177 | 2.28% | |||||||
| State and Municipals |
| 425,248 |
| 4,662 | 2.19% |
| 169,050 |
| 2,317 | 2.74% | |||||||
| US Treasuries |
| - |
| - | 0.00% |
| 10,022 |
| 74 | 1.48% | |||||||
| Corporate Bonds |
| 10,179 |
| 164 | 3.23% |
| 19,928 |
| 297 | 2.98% | |||||||
| Securities Available-for-Sale and Held-to-Maturity |
| 1,088,748 |
| 8,410 | 1.54% |
| 747,177 |
| 6,811 | 1.82% | |||||||
| Federal Home Loan Bank Stock |
| 11,248 |
| 338 | 6.01% |
| 10,554 |
| 186 | 3.52% | |||||||
| Total Investment Securities |
| 1,099,996 |
| 8,748 | 1.59% |
| 757,731 |
| 6,997 | 1.85% | |||||||
| Loans Receivable: | |||||||||||||||||
| Commercial Real Estate |
| 1,134,719 |
| 23,405 | 4.16% |
| 1,004,366 |
| 22,374 | 4.48% | |||||||
| Commercial and Industrial |
| 335,448 |
| 7,383 | 4.44% |
| 419,181 |
| 9,404 | 4.51% | |||||||
| SBA Payroll Protection Program |
| 582,338 |
| 11,110 | 3.85% |
| 269,767 |
| 2,994 | 2.23% | |||||||
| Residential Real Estate |
| 85,622 |
| 1,648 | 3.88% |
| 73,643 |
| 1,592 | 4.35% | |||||||
| Installment and Other |
| 5,287 |
| 89 | 3.40% |
| 5,343 |
| 100 | 3.76% | |||||||
| Total Loans Receivable |
| 2,143,414 |
| 43,635 | 4.11% |
| 1,772,300 |
| 36,464 | 4.14% | |||||||
| Total Interest Earning Assets | $ | 3,516,570 | $ | 52,548 | 2.97% | $ | 2,676,170 | $ | 43,608 | 3.22% | |||||||
| Liabilities: | |||||||||||||||||
| Non-Interest Bearing Demand Deposits |
| 1,801,668 |
| - | 0.00% |
| 1,364,422 |
| - | 0.00% | |||||||
| Interest Bearing Transaction Accounts |
| 261,487 |
| 81 | 0.06% |
| 201,845 |
| 141 | 0.14% | |||||||
| Money Market and Savings Deposits |
| 1,251,077 |
| 840 | 0.14% |
| 917,213 |
| 1,505 | 0.33% | |||||||
| Certificates of Deposit |
| 34,654 |
| 26 | 0.15% |
| 36,020 |
| 69 | 0.39% | |||||||
| Total Deposits |
| 3,348,886 |
| 947 | 0.06% |
| 2,519,500 |
| 1,715 | 0.14% | |||||||
| Federal Home Loan Bank Advances / Other Borrowings |
| 4 |
| - | 0.37% |
| 15,857 |
| 131 | 1.66% | |||||||
| Total Interest Bearing Deposits and Borrowings |
| 1,547,222 |
| 947 | 0.12% |
| 1,170,935 |
| 1,846 | 0.32% | |||||||
| Total Deposits and Borrowings | $ | 3,348,890 | $ | 947 | 0.06% | $ | 2,535,357 | $ | 1,846 | 0.15% | |||||||
| Net Interest Income | $ | 51,601 | $ | 41,762 | |||||||||||||
| Net Interest Rate Spread | 2.91% | 3.07% | |||||||||||||||
| Net Interest Margin | 2.96% | 3.14% | |||||||||||||||
| Net Interest Margin, excluding SBA PPP | 2.78% | 3.24% | |||||||||||||||
| American Business Bank | ||||||||||||
| Figures in $000 | ||||||||||||
| SUPPLEMENTAL DATA (unaudited) | ||||||||||||
June |
| March |
| December |
| June | ||||||
2021 |
| 2021 |
| 2020 |
| 2020 | ||||||
| Performance Ratios: | ||||||||||||
| Quarterly: | ||||||||||||
| Return on Average Assets (ROAA) |
| 0.97% |
| 1.01% |
| 1.08% |
| 0.86% | ||||
| Core Return on Average Assets (ROAA) |
| 0.97% |
| 1.01% |
| 1.08% |
| 0.87% | ||||
| Return on Average Equity (ROAE) |
| 14.21% |
| 14.32% |
| 15.57% |
| 12.14% | ||||
| Core Return on Average Equity (ROAE) |
| 14.21% |
| 14.34% |
| 15.57% |
| 12.39% | ||||
| Efficiency Ratio |
| 57.61% |
| 53.52% |
| 53.70% |
| 58.70% | ||||
| Year-to-Date | ||||||||||||
| Return on Average Assets (ROAA) |
| 0.99% |
| 1.01% |
| 0.93% |
| 0.83% | ||||
| Core Return on Average Assets (ROAA) |
| 0.99% |
| 1.01% |
| 0.93% |
| 0.84% | ||||
| Return on Average Equity (ROAE) |
| 14.26% |
| 14.32% |
| 12.70% |
| 10.68% | ||||
| Core Return on Average Equity (ROAE) |
| 14.27% |
| 14.34% |
| 12.76% |
| 10.77% | ||||
| Efficiency Ratio |
| 55.66% |
| 53.52% |
| 56.40% |
| 58.88% | ||||
| Core Efficiency Ratio |
| 55.66% |
| 53.52% |
| 56.40% |
| 58.88% | ||||
| Capital Adequacy: | ||||||||||||
| Total Risk Based Capital Ratio |
| 14.26% |
| 14.85% |
| 14.65% |
| 14.64% | ||||
| Common Equity Tier 1 Capital Ratio |
| 13.01% |
| 13.60% |
| 13.40% |
| 13.38% | ||||
| Tier 1 Risk Based Capital Ratio |
| 13.01% |
| 13.60% |
| 13.40% |
| 13.38% | ||||
| Tier 1 Leverage Ratio |
| 6.98% |
| 7.13% |
| 6.98% |
| 7.10% | ||||
| Tangible Common Equity / Tangible Assets |
| 7.04% |
| 6.70% |
| 7.17% |
| 6.90% | ||||
| Asset Quality Overview | ||||||||||||
| Non-Performing Loans | $ | 54 | $ | 2,172 | $ | 2,405 | $ | 2,601 | ||||
| Loans 90+ Days Past Due and Still Accruing |
| - |
| - |
| - |
| - | ||||
| Total Non-Performing Loans |
| 54 |
| 2,172 |
| 2,405 |
| 2,601 | ||||
| Restructured Loans |
| 214 |
| 216 |
| 218 |
| 223 | ||||
| Other Real Estate Owned |
| - |
| - |
| - |
| - | ||||
| ALLL / Loans Receivable |
| 1.14% |
| 1.05% |
| 1.11% |
| 1.05% | ||||
| Non-Performing Loans / Total Loans Receivable * |
| 0.01% |
| 0.11% |
| 0.13% |
| 0.13% | ||||
| Non-Performing Loans / Total Loans Receivable *, excluding PPP ** |
| 0.02% |
| 0.15% |
| 0.17% |
| 0.19% | ||||
| Non-Performing Assets / Total Assets * |
| 0.01% |
| 0.06% |
| 0.08% |
| 0.09% | ||||
| Non-Performing Assets / Total Assets *, excluding PPP ** |
| 0.01% |
| 0.08% |
| 0.09% |
| 0.11% | ||||
| Net Charge-Offs (Recoveries) quarterly | $ | (395) | $ | (16) | $ | (21) | $ | 168 | ||||
| Net Charge-Offs (Recoveries) year-to-date | $ | (411) | $ | (16) | $ | 457 | $ | 538 | ||||
| Net Charge-Offs (Recoveries) year-to-date / Average Loans Receivable |
| -0.02% |
| 0.00% |
| 0.02% |
| 0.03% | ||||
* | Includes non-accrual loans, accruing loans past due 90+ days and Troubled Debt Restructurings (TDRs). | ||||
** | SBA Paycheck Protection Program (PPP) | ||||
View source version on businesswire.com: https://www.businesswire.com/news/home/20210728005244/en/
