Loan Interest Income increases 27% annualized over prior quarter
First Quarter 2019 Highlights
- Total loans increased $258 million or 26% from a year ago
- Total deposits increased $253 million or 15% from a year ago
- Non-interest bearing demand deposits were 50% of total deposits
- Nonperforming assets to total assets negligible at 0.07%
-
Net interest income increased by $3.8 million or 26% over the
prior year -
Continued status as well-capitalized, the highest regulatory
category
LOS ANGELES–(BUSINESS WIRE)–AMERICAN BUSINESS BANK (OTC Pink: AMBZ) today reported net income of
$5.4 million or $0.67 per fully diluted share for the first quarter of
2019 as compared to $2.4 million or $0.31 per fully diluted share for
the first quarter of 2018, an increase of 123%. The increase was
primarily due to significant loan and core deposit growth during 2018
resulting in increased net interest income.
“The investment we made in hiring seasoned banking personnel in the
fourth quarter of 2017 has paid off with the substantial increase in
earnings year-over-year due to the transformative growth in loans and
core deposits in 2018. The significant increase in loan interest income
for the quarter is the direct result of record loan growth in the fourth
quarter of 2018. Although loan and deposit growth was minimal in the
first quarter of 2019, we are pleased with the pipeline for new
business. The increase in the loan to deposit ratio to 64% has helped to
expand the net interest margin and drive return on equity to 13%,” said
Leon Blankstein, ABB’s President, CEO and Director.
For the quarter ending March 31, 2019, net income was $5.4 million or
$0.67 per fully diluted share, compared with net income of $6.1 million
or $0.77 per fully diluted share for the fourth quarter of 2018. The
decrease in net income was due to an increase in deferred compensation
plan (DCP) liability that resulted in a $925,000 charge to compensation
and benefits expense in the first quarter of 2019, compared to a
decrease in DCP liability that resulted in a $2 million reduction to
compensation and benefits expense in the fourth quarter of 2018.
Comparing the first quarter of 2019 core net income of $5.8 million to
the fourth quarter of 2018 core net income of $5.0 million, which
excludes the impact of DCP ABB stock funds, results in an increase of
17%.
The Bank’s net interest margin for the first quarter of 2019 was 3.62%.
This compares to 3.28% in the first quarter of 2018 and 3.53% for the
fourth quarter of 2018 representing increases of 0.34% and 0.09%,
respectively. The increases were primarily due to average loans being a
higher percentage of average earnings assets in the first quarter of
2019 than in the first and fourth quarters of 2018, as well as expansion
in average loan yields for the periods compared. The loan to deposit
ratio increased to 64% for the first quarter of 2019 from 58% for the
first quarter of 2018 and 63% for the fourth quarter of 2018.
Net interest income increased for the first quarter of 2019 compared to
the first quarter of 2018 by $3.8 million or 26% due to an increase in
average outstanding loans, a higher yield on loans and a low deposit
beta for the periods compared. The yield on average loans increased to
4.89% for the first quarter of 2019 compared to 4.46% for the first
quarter of 2018. The Bank’s core funding continues to be a strength with
the cost of deposits of 0.21% for the first quarter of 2019, an increase
of 10 basis points over the quarter a year ago.
Net interest income remained steady for the first quarter of 2019
compared to the fourth quarter of 2018 even with two less days in the
quarter. For the first quarter of 2019, loan interest income increased
$954,000 or 27% annualized due to an increase in average outstanding
loans and a higher yield on loans. The yield on average loans increased
to 4.89% for the first quarter of 2019 compared to 4.80% for the fourth
quarter of 2018. The new loan production weighted average coupon was
5.22% in the quarter. The Bank’s cost of deposits was at 0.21% for the
most recent quarter, an increase of only 3 basis points over the prior
quarter.
Non-interest income in the first quarter of 2019 was $1.5 million, an
increase of $661,000, or 81% from $812,000 in the quarter a year ago.
The is mainly attributable to a positive $220,000 increase in the value
of corporate owned life insurance (COLI) in the first quarter of 2019
and $195,000 of losses realized on the sale of investment securities in
the first quarter of 2018. Additionally, Deposit and International fees
increased $144,000 from the quarter a year ago due to growth in
commercial business customers.
Non-interest income was $1.5 million for the first quarter of 2019, an
increase of $827,000, or 128% compared to the fourth quarter of 2018.
This favorable change was due to a $770,000 increase in the positive
change in COLI value which is invested in mutual funds, from a $323,000
negative change in the fourth quarter of 2018 to a $447,000 positive
change in the first quarter of 2019. The change in COLI value is offset
by a corresponding non-cash charge (credit) to compensation and benefits
expense, which is included in non-interest expense.
Non-interest expense increased $1.0 million for the quarter ending March
31, 2019 compared to the quarter a year ago. The increase was
predominantly due to the change in DCP liability that is correlated to
the value of COLI investments and the Bank’s stock price, with the
resulting charge included in compensation and benefits expense.
Additionally, occupancy and equipment expense increased $287,000 in the
first quarter of 2019 versus the first quarter of 2018 due to the
planned relocation of the Bank’s Los Angeles headquarters in June 2019.
The current headquarters lease expires as well in the same month.
Non-interest expense increased $3.5 million for the quarter ending March
31, 2019 compared to the prior quarter. This is mainly due to an
increase in DCP liability that resulted in a $925,000 non-cash charge to
compensation and benefits expense in the first quarter of 2019, compared
to a decrease in DCP liability that resulted in a $2 million reduction
to compensation and benefits expense in the prior quarter. The increase
in the Bank’s stock price resulted in a charge to DCP expense of
$536,000 during the most recent quarter. An additional charge to DCP
expense of $389,000 is correlated to the positive change in COLI value
of $447,000. Further, occupancy and equipment expense increased $229,000
from the prior quarter due to the new lease agreement for its new Los
Angeles headquarters.
Full time equivalent employees at March 31, 2019 were 189, an increase
of 12 employees or 7% higher than a year ago, but only two less than at
December 31, 2018. The Bank now has 29 relationship managers in seven
offices.
Total assets increased $258 million, or 13% from March 31, 2018 to $2.19
billion which was driven by an increase in deposits. Other assets
increased $13 million, or 21% from December 31, 2018 mainly due to the
adoption of the new lease accounting standard.
Asset quality at March 31, 2019 remains excellent with non-performing
assets to total assets of 0.07%, $1.2 million in non-performing loans,
and no Other Real Estate Owned (OREO). The largest nonaccrual loan is
fully secured by real estate. At the end of the quarter, the allowance
for loan losses stood at $17.6 million, or 1.4% of total loans. For the
first quarter of 2019, the Bank had no charge-offs.
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 SHEET (unaudited) | |||||||||||||||||||||
| March | December | March | |||||||||||||||||||
| 2019 | 2018 | 2018 | |||||||||||||||||||
|
Assets: |
|||||||||||||||||||||
| Cash and Due from Banks | $ | 54,418 | $ | 26,673 | $ | 44,171 | |||||||||||||||
| Interest Earning Deposits in Other Financial Institutions | 28,428 | 76,599 | 2,705 | ||||||||||||||||||
|
Investment Securities: |
|||||||||||||||||||||
| US Agencies | 415,682 | 440,212 | 551,783 | ||||||||||||||||||
| Mortgage Backed Securities | 181,978 | 128,851 | 88,362 | ||||||||||||||||||
| State and Municipals | 80,914 | 77,460 | 177,305 | ||||||||||||||||||
| US Treasuries | 9,878 | 9,859 | 9,822 | ||||||||||||||||||
| Corporate Bonds | 1,972 | 1,971 | 1,994 | ||||||||||||||||||
| Securities Available-for-Sale, at Fair Value | 690,424 | 658,353 | 829,266 | ||||||||||||||||||
| Securities Held-to-Maturity, at Amortized Cost | 87,325 | 87,526 | – | ||||||||||||||||||
| Federal Home Loan Bank Stock, at Cost | 10,356 | 10,356 | 9,938 | ||||||||||||||||||
| Total Investment Securities | 788,105 | 756,235 | 839,204 | ||||||||||||||||||
|
Loans Receivable: |
|||||||||||||||||||||
| Commercial Real Estate | 836,069 | 827,388 | 671,478 | ||||||||||||||||||
| Commercial and Industrial | 359,548 | 356,583 | 256,068 | ||||||||||||||||||
| Residential Real Estate | 58,340 | 62,835 | 68,956 | ||||||||||||||||||
| Installment and Other | 3,715 | 3,455 | 3,042 | ||||||||||||||||||
| Total Loans Receivable | 1,257,672 | 1,250,261 | 999,544 | ||||||||||||||||||
| Allowance for Loan Losses | (17,608 | ) | (17,503 | ) | (14,487 | ) | |||||||||||||||
| Loans Receivable, Net | 1,240,064 | 1,232,758 | 985,057 | ||||||||||||||||||
| Furniture, Equipment and Leasehold Improvements, Net | 3,044 | 1,834 | 1,551 | ||||||||||||||||||
| Other Assets | 76,503 | 63,344 | 60,250 | ||||||||||||||||||
| Total Assets | $ | 2,190,562 | $ | 2,157,443 | $ | 1,932,938 | |||||||||||||||
|
Liabilities: |
|||||||||||||||||||||
| Non-Interest Bearing Demand Deposits | $ | 988,196 | $ | 983,284 | $ | 876,164 | |||||||||||||||
| Interest Bearing Transaction Accounts | 187,838 | 211,794 | 179,876 | ||||||||||||||||||
| Money Market and Savings Deposits | 722,043 | 728,237 | 613,881 | ||||||||||||||||||
| Certificates of Deposit | 81,934 | 50,443 | 57,544 | ||||||||||||||||||
| Total Deposits | 1,980,011 | 1,973,758 | 1,727,465 | ||||||||||||||||||
| Federal Home Loan Bank Advances / Other Borrowings | – | – | 32,000 | ||||||||||||||||||
| Other Liabilities | 36,678 | 18,618 | 20,336 | ||||||||||||||||||
| Total Liabilities | $ | 2,016,689 | $ | 1,992,376 | $ | 1,779,801 | |||||||||||||||
|
Shareholders’ Equity: |
|||||||||||||||||||||
| Common Stock and Retained Earnings | $ | 185,556 | $ | 182,164 | $ | 165,750 | |||||||||||||||
| Accumulated Other Comprehensive Income / (Loss) | (11,683 | ) | (17,097 | ) | (12,613 | ) | |||||||||||||||
| Total Shareholders’ Equity | $ | 173,873 | $ | 165,067 | $ | 153,137 | |||||||||||||||
| Total Liabilities and Shareholders’ Equity | $ | 2,190,562 | $ | 2,157,443 | $ | 1,932,938 | |||||||||||||||
| Standby Letters of Credit | $ | 38,106 | $ | 36,411 | $ | 29,220 | |||||||||||||||
|
Per Share Information: |
|||||||||||||||||||||
| Common Shares Outstanding | 7,745,979 | 7,705,590 | 7,588,400 | ||||||||||||||||||
| Book Value Per Share | $ | 22.45 | $ | 21.42 | $ | 20.18 | |||||||||||||||
| Tangible Book Value Per Share | $ | 22.45 | $ | 21.42 | $ | 20.18 | |||||||||||||||
| American Business Bank | ||||||||||||||||||||
| Figures in $000, except share and per share amounts | ||||||||||||||||||||
| INCOME STATEMENT (unaudited) | ||||||||||||||||||||
| For the three months ended: | ||||||||||||||||||||
| March | December | March | ||||||||||||||||||
| 2019 | 2018 | 2018 | ||||||||||||||||||
|
Interest Income: |
||||||||||||||||||||
|
Interest and Fees on Loans |
$ | 15,078 | $ | 14,124 | $ | 10,612 | ||||||||||||||
| Interest on Investment Securities | 4,273 | 4,747 | 4,983 | |||||||||||||||||
|
Interest on Interest Earning Deposits in Other Financial |
503 | 868 | 45 | |||||||||||||||||
| Total Interest Income | 19,854 | 19,739 | 15,640 | |||||||||||||||||
|
Interest Expense: |
||||||||||||||||||||
| Interest on Interest Bearing Transaction Accounts | 104 | 110 | 74 | |||||||||||||||||
| Interest on Money Market and Savings Deposits | 807 | 725 | 333 | |||||||||||||||||
| Interest on Certificates of Deposits | 105 | 97 | 62 | |||||||||||||||||
|
Interest on Federal Home Loan Bank Advances and Other Borrowings |
– | 1 | 175 | |||||||||||||||||
| Total Interest Expense | 1,016 | 933 | 644 | |||||||||||||||||
| Net Interest Income | 18,838 | 18,806 | 14,996 | |||||||||||||||||
| Provision for Loan Losses | 90 | 1,543 | 832 | |||||||||||||||||
| Net Interest Income after Provision for Loan Losses | 18,748 | 17,263 | 14,164 | |||||||||||||||||
|
Non-Interest Income: |
||||||||||||||||||||
| Deposit Fees | 503 | 505 | 424 | |||||||||||||||||
| International Fees | 259 | 281 | 194 | |||||||||||||||||
| Gain (Loss) on Sale of Investment Securities, Net | – | (74 | ) | (195 | ) | |||||||||||||||
| Gain on Sale of SBA Loans, Net | 79 | 141 | 105 | |||||||||||||||||
| Other | 632 | (207 | ) | 284 | ||||||||||||||||
| Total Non-Interest Income | 1,473 | 646 | 812 | |||||||||||||||||
|
Non-Interest Expense: |
||||||||||||||||||||
| Salaries and Employee Benefits | 9,444 | 5,959 | 8,793 | |||||||||||||||||
| Occupancy and Equipment | 1,021 | 792 | 734 | |||||||||||||||||
| Professional Services | 1,197 | 1,269 | 1,139 | |||||||||||||||||
| Promotion Expenses | 264 | 402 | 271 | |||||||||||||||||
| Other | 1,094 | 1,130 | 1,054 | |||||||||||||||||
| Total Non-Interest Expense | 13,020 | 9,552 | 11,991 | |||||||||||||||||
| Earnings before income taxes | 7,201 | 8,357 | 2,985 | |||||||||||||||||
| Income Tax Expense | 1,800 | 2,262 | 559 | |||||||||||||||||
| NET INCOME | $ | 5,401 | $ | 6,095 | $ | 2,426 | ||||||||||||||
| Add back: | ||||||||||||||||||||
| After-Tax Gain (Loss) on Sale of Investment Securities, Net | $ | – | $ | 54 | $ | 159 | ||||||||||||||
| After-Tax DCP ABB Stock Expense (Benefit) | $ | 402 | $ | (1,199 | ) | $ | 81 | |||||||||||||
| Core Net Income | $ | 5,803 | $ | 4,950 | $ | 2,666 | ||||||||||||||
|
Per Share Information: |
||||||||||||||||||||
| Earnings Per Share – Basic | $ | 0.70 | $ | 0.79 | $ | 0.32 | ||||||||||||||
| Earnings Per Share – Diluted | $ | 0.67 | $ | 0.77 | $ | 0.31 | ||||||||||||||
| Core Earnings Per Share – Diluted | $ | 0.72 | $ | 0.63 | $ | 0.34 | ||||||||||||||
| Weighted Average Shares – Basic | 7,722,461 | 7,700,091 | 7,569,277 | |||||||||||||||||
| Weighted Average Shares – Diluted | 8,033,433 | 7,881,465 | 7,830,162 | |||||||||||||||||
| American Business Bank | |||||||||||||||||||||
| Figures in $000 | |||||||||||||||||||||
| SUPPLEMENTAL DATA (unaudited) | |||||||||||||||||||||
| March | December | March | |||||||||||||||||||
| 2019 | 2018 | 2018 | |||||||||||||||||||
|
Performance Ratios: |
|||||||||||||||||||||
|
Quarterly: |
|||||||||||||||||||||
| Return on Average Assets (ROAA) | 0.99 | % | 1.12 | % | 0.50 | % | |||||||||||||||
| Core Return on Average Assets (ROAA) | 1.06 | % | 0.91 | % | 0.55 | % | |||||||||||||||
| Return on Average Equity (ROAE) | 12.88 | % | 15.52 | % | 6.37 | % | |||||||||||||||
| Core Return on Average Equity (ROAE) | 13.84 | % | 12.61 | % | 7.01 | % | |||||||||||||||
| Efficiency Ratio | 64.10 | % | 48.92 | % | 74.93 | % | |||||||||||||||
| Core Efficiency Ratio | 61.46 | % | 57.34 | % | 74.30 | % | |||||||||||||||
|
Year-to-Date |
|||||||||||||||||||||
| Return on Average Assets (ROAA) | 0.99 | % | 0.80 | % | 0.50 | % | |||||||||||||||
| Core Return on Average Assets (ROAA) | 1.06 | % | 0.78 | % | 0.55 | % | |||||||||||||||
| Return on Average Equity (ROAE) | 12.88 | % | 10.65 | % | 6.37 | % | |||||||||||||||
| Core Return on Average Equity (ROAE) | 13.84 | % | 10.38 | % | 7.01 | % | |||||||||||||||
| Efficiency Ratio | 64.10 | % | 63.57 | % | 74.93 | % | |||||||||||||||
| Core Efficiency Ratio | 61.46 | % | 65.21 | % | 74.30 | % | |||||||||||||||
|
Capital Adequacy: |
|||||||||||||||||||||
| Total Capital Ratio | 14.15 | % | 14.09 | % | 14.84 | % | |||||||||||||||
| Common Equity Tier 1 Capital Ratio | 12.90 | % | 12.84 | % | 14.84 | % | |||||||||||||||
| Tier 1 Capital Ratio | 12.90 | % | 12.84 | % | 16.09 | % | |||||||||||||||
| Tier 1 Leverage Ratio | 8.46 | % | 8.33 | % | 8.55 | % | |||||||||||||||
| Tangible Common Equity / Tangible Assets | 7.94 | % | 7.65 | % | 7.92 | % | |||||||||||||||
|
Asset Quality Overview |
|||||||||||||||||||||
| Non-Performing Loans | $ | 1,222 | $ | 1,222 | $ | 915 | |||||||||||||||
|
Loans 90+ Days Past Due and Still Accruing |
– | – | – | ||||||||||||||||||
| Total Non-Performing Loans | 1,222 | 1,222 | 915 | ||||||||||||||||||
| Restructured Loans | 233 | 235 | 241 | ||||||||||||||||||
| Other Real Estate Owned | – | – | – | ||||||||||||||||||
| ALLL / Loans Receivable | 1.40 | % | 1.40 | % | 1.45 | % | |||||||||||||||
| Non-Performing Loans / Total Loans Receivable * | 0.12 | % | 0.12 | % | 0.12 | % | |||||||||||||||
| Non-Performing Assets / Total Assets * | 0.07 | % | 0.07 | % | 0.06 | % | |||||||||||||||
| Net Charge-Offs (Recoveries) quarterly | $ | (15 | ) | $ | (10 | ) | $ | (16 | ) | ||||||||||||
| Net Charge-Offs (Recoveries) year-to-date | $ | (15 | ) | $ | (53 | ) | $ | (16 | ) | ||||||||||||
|
Net Charge-Offs (Recoveries) year-to-date / Average Loans |
(0.00 | %) | (0.00 | %) | (0.00 | %) | |||||||||||||||
|
|
|||||||||||||||||||||
| * |
Includes non-accrual loans, accruing loans past due 90+ days and Troubled Debt Restructurings (TDRs). |
| American Business Bank | ||||||||||||||||||||||||||||||
| Figures in $000 | ||||||||||||||||||||||||||||||
| QUARTERLY AVERAGE BALANCE SHEETS AND YIELD ANALYSIS (unaudited) | ||||||||||||||||||||||||||||||
| For the three months ended: | ||||||||||||||||||||||||||||||
| March 2019 | December 2018 | |||||||||||||||||||||||||||||
| 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 | $ | 82,027 | $ | 503 | 2.49 | % | $ | 150,483 | $ | 868 | 2.34 | % | ||||||||||||||||||
|
Investment Securities: |
||||||||||||||||||||||||||||||
| US Agencies | 433,799 | 1,757 | 1.62 | % | 459,879 | 1,886 | 1.64 | % | ||||||||||||||||||||||
| Mortgage Backed Securities | 148,059 | 1,118 | 3.02 | % | 137,272 | 957 | 2.79 | % | ||||||||||||||||||||||
| State and Municipals | 172,411 | 1,161 | 2.69 | % | 174,603 | 1,492 | 3.42 | % | ||||||||||||||||||||||
| US Treasuries | 10,052 | 37 | 1.48 | % | 10,059 | 37 | 1.46 | % | ||||||||||||||||||||||
| Corporate Bonds | 2,000 | 18 | 3.63 | % | 2,000 | 17 | 3.41 | % | ||||||||||||||||||||||
| Securities Available-for-Sale and Held-to-Maturity | 766,321 | 4,091 | 2.14 | % | 783,813 | 4,389 | 2.19 | % | ||||||||||||||||||||||
| Federal Home Loan Bank Stock | 10,356 | 182 | 7.03 | % | 10,356 | 358 | 13.83 | % | ||||||||||||||||||||||
| Total Investment Securities | 776,677 | 4,273 | 2.20 | % | 794,169 | 4,747 | 2.34 | % | ||||||||||||||||||||||
|
Loans Receivable: |
||||||||||||||||||||||||||||||
| Commercial Real Estate | 831,259 | 9,656 | 4.71 | % | 782,799 | 9,164 | 4.64 | % | ||||||||||||||||||||||
| Commercial and Industrial | 353,660 | 4,599 | 5.27 | % | 317,882 | 4,031 | 5.03 | % | ||||||||||||||||||||||
| Residential Real Estate | 59,928 | 788 | 5.33 | % | 62,307 | 819 | 5.21 | % | ||||||||||||||||||||||
| Installment and Other | 4,685 | 35 | 3.01 | % | 4,245 | 110 | 10.32 | % | ||||||||||||||||||||||
| Total Loans Receivable | 1,249,532 | 15,078 | 4.89 | % | 1,167,233 | 14,124 | 4.80 | % | ||||||||||||||||||||||
| Total Interest Earning Assets | $ | 2,108,236 | $ | 19,854 | 3.77 | % | $ | 2,111,885 | $ | 19,739 | 3.66 | % | ||||||||||||||||||
|
Liabilities: |
||||||||||||||||||||||||||||||
| Non-Interest Bearing Demand Deposits | 996,040 | – | 0.00 | % | 1,029,346 | – | 0.00 | % | ||||||||||||||||||||||
| Interest Bearing Transaction Accounts | 198,809 | 104 | 0.21 | % | 197,465 | 110 | 0.22 | % | ||||||||||||||||||||||
| Money Market and Savings Deposits | 736,155 | 807 | 0.44 | % | 712,486 | 725 | 0.40 | % | ||||||||||||||||||||||
| Certificates of Deposit | 64,601 | 105 | 0.66 | % | 64,269 | 97 | 0.60 | % | ||||||||||||||||||||||
| Total Deposits | 1,995,605 | 1,016 | 0.21 | % | 2,003,566 | 932 | 0.18 | % | ||||||||||||||||||||||
| Federal Home Loan Bank Advances / Other Borrowings | – | – | 0.00 | % | 402 | 1 | 1.48 | % | ||||||||||||||||||||||
| Total Interest Deposits and Borrowings | 999,565 | 1,016 | 0.41 | % | 974,622 | 933 | 0.38 | % | ||||||||||||||||||||||
| Total Deposits and Borrowings | $ | 1,995,606 | $ | 1,016 | 0.21 | % | $ | 2,003,969 | $ | 933 | 0.18 | % | ||||||||||||||||||
| Net Interest Income | $ | 18,838 | $ | 18,806 | ||||||||||||||||||||||||||
| Net Interest Rate Spread | 3.56 | % | 3.48 | % | ||||||||||||||||||||||||||
| Net Interest Margin | 3.62 | % | 3.53 | % | ||||||||||||||||||||||||||
| American Business Bank | ||||||||||||||||||||||||||||||
| Figures in $000 | ||||||||||||||||||||||||||||||
| QUARTERLY AVERAGE BALANCE SHEETS AND YIELD ANALYSIS (unaudited) | ||||||||||||||||||||||||||||||
| For the three months ended: | ||||||||||||||||||||||||||||||
| March 2019 | March 2018 | |||||||||||||||||||||||||||||
| 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 | $ | 82,027 | $ | 503 | 2.49 | % | $ | 11,658 | $ | 45 | 1.55 | % | ||||||||||||||||||
|
Investment Securities: |
||||||||||||||||||||||||||||||
| US Agencies | 433,799 | 1,757 | 1.62 | % | 580,066 | 2,580 | 1.78 | % | ||||||||||||||||||||||
| Mortgage Backed Securities | 148,059 | 1,118 | 3.02 | % | 91,726 | 587 | 2.56 | % | ||||||||||||||||||||||
| State and Municipals | 172,411 | 1,161 | 2.69 | % | 181,741 | 1,580 | 3.48 | % | ||||||||||||||||||||||
| US Treasuries | 10,052 | 37 | 1.48 | % | 10,079 | 37 | 1.48 | % | ||||||||||||||||||||||
| Corporate Bonds | 2,000 | 18 | 3.63 | % |
|
2,353 | 16 | 2.76 | % | |||||||||||||||||||||
| Securities Available-for-Sale and Held-to-Maturity | 766,321 | 4,091 | 2.14 | % | 865,965 | 4,800 | 2.22 | % | ||||||||||||||||||||||
| Federal Home Loan Bank Stock | 10,356 | 182 | 7.03 | % | 9,938 | 183 | 7.35 | % | ||||||||||||||||||||||
| Total Investment Securities | 776,677 | 4,273 | 2.20 | % | 875,903 | 4,983 | 2.28 | % | ||||||||||||||||||||||
|
Loans Receivable: |
||||||||||||||||||||||||||||||
| Commercial Real Estate | 831,259 | 9,656 | 4.71 | % | 659,296 | 7,193 | 4.42 | % | ||||||||||||||||||||||
| Commercial and Industrial | 353,660 | 4,599 | 5.27 | % | 238,393 | 2,592 | 4.41 | % | ||||||||||||||||||||||
| Residential Real Estate | 59,928 | 788 | 5.33 | % | 64,624 | 757 | 4.75 | % | ||||||||||||||||||||||
| Installment and Other | 4,685 | 35 | 3.01 | % | 3,389 | 70 | 8.39 | % | ||||||||||||||||||||||
| Total Loans Receivable | 1,249,532 | 15,078 | 4.89 | % | 965,702 | 10,612 | 4.46 | % | ||||||||||||||||||||||
| Total Interest Earning Assets | $ | 2,108,236 | $ | 19,854 | 3.77 | % | $ | 1,853,263 | $ | 15,640 | 3.38 | % | ||||||||||||||||||
|
Liabilities: |
||||||||||||||||||||||||||||||
| Non-Interest Bearing Demand Deposits | 996,040 | – | 0.00 | % | 881,512 | – | 0.00 | % | ||||||||||||||||||||||
| Interest Bearing Transaction Accounts | 198,809 | 104 | 0.21 | % | 173,091 | 74 | 0.17 | % | ||||||||||||||||||||||
| Money Market and Savings Deposits | 736,155 | 807 | 0.44 | % | 593,198 | 333 | 0.23 | % | ||||||||||||||||||||||
| Certificates of Deposit | 64,601 | 105 | 0.66 | % | 56,548 | 62 | 0.44 | % | ||||||||||||||||||||||
| Total Deposits | 1,995,605 | 1,016 | 0.21 | % | 1,704,349 | 469 | 0.11 | % | ||||||||||||||||||||||
| Federal Home Loan Bank Advances / Other Borrowings | – | – | 0.00 | % | 46,850 | 175 | 1.51 | % | ||||||||||||||||||||||
| Total Interest Deposits and Borrowings | 999,565 | 1,016 | 0.41 | % | 869,687 | 644 | 0.30 | % | ||||||||||||||||||||||
| Total Deposits and Borrowings | $ | 1,995,606 | $ | 1,016 | 0.21 | % | $ | 1,751,200 | $ | 644 | 0.15 | % | ||||||||||||||||||
| Net Interest Income | $ | 18,838 | $ | 14,996 | ||||||||||||||||||||||||||
| Net Interest Rate Spread | 3.56 | % | 3.23 | % | ||||||||||||||||||||||||||
| Net Interest Margin | 3.62 | % | 3.28 | % | ||||||||||||||||||||||||||
Contacts
Karen Schoenbaum
EVP/CFO
(213) 430-4000
www.americanbusinessbank.com
