LOS ANGELES--(BUSINESS WIRE)--AMERICAN BUSINESS BANK (OTCQX: AMBZ) today reported net income of $11.4 million or $1.24 per fully diluted share for the second quarter of 2022 compared to $9.9 million or $1.08 per fully diluted share for the first quarter of 2022, an increase of 15%. For the quarter ended June 30, 2022, net income associated with the PPP program was $1.2 million or $0.14 per fully diluted share, a decrease of 6% compared to $1.3 million or $0.14 per fully diluted share for the first quarter of 2022.
“The highlight for the quarter was again generating strong core loan growth (non-PPP) which continues a shift in our assets from investments to quality loans serving the needs of our community. As a result of the loan growth the last twelve months, loan interest income (non-PPP) has increased meaningfully in the second quarter of 2022 over 2021. Core loan growth from the second half of 2021 through the second quarter of 2022 has enabled the Bank to replace and surpass the significant income generated from PPP that was essential to bridge the pandemic rate shock. The strength of the Bank’s balance sheet coupled with our disciplined approach to business banking has enabled us to capitalize on opportunities. Although, core loan production has slowed somewhat from recent record highs, the pipeline remains robust with the addition of new relationship managers this year,” commented Leon Blankstein, ABB’s President, CEO, and Director.
For the quarter ending June 30, 2022, net interest income was $29.9 million, a 6% increase over the first quarter of 2022, as interest income on loans increased by $2.1 million as the average loan portfolio, (excluding PPP), grew by $159 million. This increase was offset by a decline of $0.4 million in interest income on securities mainly due to a non-recurring prepayment penalty. For the quarters ending June 30, 2022 and March 31, 2022, the cost of deposits remained at 0.04%. The provision for loan losses was $1.0 million in the quarter commensurate with the growth in core loans. The allowance for loan losses as a percentage of loans, excluding PPP loans, was 1.24% at June 30, 2022.
For the six months ended June 30, 2022, net income was $21.4 million or $2.33 per fully diluted share compared to $18.0 million or $1.98 per fully diluted share for the six months ended June 30, 2021. The increase was primarily due to an increase in interest on investment securities of $4.2 million as a result of an increase in average investment securities and an increase in interest on loans of $2.1 million as a result of core loan growth. This additional income was partially offset by the $2.5 million provision for loan losses recorded in the first half of 2022.
Net Interest Margin
Net interest margin for the second quarter of 2022 was 3.21% compared to 3.00% in the first quarter of 2022 and 3.00% in the second quarter of 2021. Excluding the impact of PPP loans, the net interest margin was 3.06% for the second quarter of 2022 compared to 2.89% for the first quarter of 2022 reflecting the higher percentage of core loans to assets. As of June 30, 2022, 63% of the loan portfolio was fixed rate, of the variable rate loans, approximately half are indexed to prime and 81% of these loans are at or above interest rate floors.
Net Interest Income
For the quarter ending June 30, 2022, net interest income increased by $1.7 million, or 6%, compared to the first quarter of 2022 and increased by $2.8 million, or 10% compared to the quarter ended June 30, 2021. The increase is a result of the Bank’s strong core loan growth and rising interest rates offset by the decrease in the accelerated realization of net deferred PPP processing fees and decrease in interest income on securities. The increase is a result strong core loan growth and increase in investment securities offset by the decrease in the accelerated realization of net deferred PPP processing fees.
| (Figures in $000s, except per share amounts) | As of or For the Six Months Ended: |
As of or For the Three Months Ended: |
|||||||||
| June 2022 | June 2021 | June 2022 | March 2022 | June 2021 | |||||||
| PPP loans - first round, net | $ |
4,877 |
$ |
152,827 |
$ |
4,877 |
$ |
6,391 |
$ |
152,827 |
|
| PPP loans - second round, net |
|
18,054 |
|
233,561 |
|
18,054 |
|
79,997 |
|
233,561 |
|
| PPP Total Loans, net | $ |
22,931 |
$ |
386,388 |
$ |
22,931 |
$ |
86,388 |
$ |
386,388 |
|
| 1% Coupon Interest | $ |
422 |
$ |
2,930 |
$ |
145 |
$ |
277 |
$ |
1,403 |
|
| Amortized fees |
|
254 |
|
1,288 |
|
82 |
|
171 |
|
620 |
|
| Accelerated fees |
|
2,962 |
|
6,891 |
|
1,535 |
|
1,427 |
|
4,046 |
|
| Total PPP loan income | $ |
3,637 |
$ |
11,109 |
$ |
1,762 |
$ |
1,875 |
$ |
6,069 |
|
| Total PPP loan income after tax | $ |
2,565 |
$ |
7,835 |
$ |
1,242 |
$ |
1,322 |
$ |
4,280 |
|
| Total PPP loan income after tax per share - diluted | $ |
0.28 |
$ |
0.86 |
$ |
0.14 |
$ |
0.14 |
$ |
0.47 |
|
As of July 12, 2022, approximately 98% of PPP loans originated in 2020 and 95% of PPP loans originated in 2021 have been forgiven. Of the remaining PPP loans originated in 2020 and 2021, approximately 21% are in the forgiveness review or submission process.
On a year-to-date basis, net interest income was $58.1 million for the six months ended June 30, 2022, compared to $51.6 million for the same period a year ago. The increase of $6.5 million or 13% is primarily due to an increase in interest on core loans of $9.6 million due to strong core loan growth and an increase in interest on investment securities of $4.2 million as a result of an increase in the average balance of investment securities. These increases were offset by the decrease in PPP loan income of $7.5 million.
Non-Interest Income
The decreases in non-interest income from the prior quarter and the same quarter a year ago as well as year-to-date are primarily due to the decline in the value of Bank/Corporate owned life insurance (BOLI) policies that are invested in mutual funds.
Non-Interest Expense
For the quarter ending June 30, 2022, total non-interest expense decreased $685 thousand compared to the first quarter of 2022 primarily due to a decrease in salaries and employee benefits. The efficiency ratio decreased to 45% compared to 50% for the first quarter of 2022.
Non-interest expense decreased $2.5 million for the quarter ended June 30, 2022 compared to the second quarter of 2021. This was driven by a decrease in salaries and employee benefits related to less expense for the deferred compensation plan associated with the decline in BOLI that are invested in mutual funds. The efficiency ratio declined to 45% for the second quarter of 2022 compared to 58% for the second quarter of 2021.
There were 205 full time equivalent employees at June 30, 2022 compared to 192 a year ago and 198 at March 31, 2022. The Bank has 41 relationship managers in eight offices representing an increase of six from a year ago and an increase of three from the prior quarter.
On a year-to-date basis, non-interest expense for the six months ended June 30, 2022 decreased $1.7 million or 6% compared to the same period a year ago, mainly due to the settlement of a legal matter which occurred in the second quarter of 2021.
Balance Sheet
From March 31, 2022 to June 30, 2022, total core loans, excluding PPP loans, increased $129 million, or 6%. During the second quarter of 2022, CRE loans increased by $104 million, primarily due to increases of $73 million in non-owner-occupied and $23 million in owner-occupied CRE.
| June 30, 2022 |
March 31, 2022 |
||||
| (Figures in $000s) | |||||
| RE - Owner Occupied | $ |
928,248 |
$ |
903,372 |
|
| RE - Non Owner Occupied |
|
600,180 |
|
526,898 |
|
| Multifamily |
|
10,157 |
|
11,327 |
|
| Construction & Land |
|
61,910 |
|
55,087 |
|
| Total CRE Loans | $ |
1,600,494 |
$ |
1,496,684 |
|
In addition, C&I loans increased by $17 million during the second quarter of 2022, benefitting from higher line utilization. At June 30, 2022, the utilization rate for the Bank’s commercial lines of credit increased to 32% from 30% at March 31, 2022.
Investment securities decreased from the first quarter of 2022 to $1.36 billion. As of June 30, 2022, the duration of the securities portfolio increased to 6.5 years from 5.7 years as of March 31, 2022 as market interest rates increased. Accumulated other comprehensive loss increased to $67.6 million as of June 30, 2022 from $39.6 million as of March 31, 2022 due to the increase in net unrealized loss on the available-for-sale securities portfolio.
During the second quarter of 2022, total assets decreased $50 million, or 1%, and total deposits decreased by $71 million.
At June 30, 2022, the tangible common equity ratio was 6.3%, as the benefit of second quarter net income was more than offset by a larger Accumulated Other Comprehensive Loss, reflecting the impact of higher rates on net unrealized securities losses. The loan growth over the last year has increased risk-weighted assets resulting in a decrease in those capital ratios, which remain well above regulatory requirements.
Asset Quality
The following table presents asset quality overview as of the dates indicated:
| June 30, 2022 |
March 31, 2022 |
|||||||
| (Figures in $000s) | ||||||||
| Non-performing assets (NPA) | $ |
1,208 |
|
$ |
- |
|
||
| Loans 90+ Days Past Due and Still Accruing |
|
- |
|
|
- |
|
||
| Total NPA | $ |
1,208 |
|
$ |
- |
|
||
| NPA as a % of total assets, excluding PPP |
|
0.03 |
% |
|
0.00 |
% |
||
| Past Due as a % of total Loans, excluding PPP |
|
0.00 |
% |
|
0.00 |
% |
||
| Criticized as a % of total Loans, excluding PPP |
|
2.41 |
% |
|
2.49 |
% |
||
| Classified as a % of total Loans, excluding PPP |
|
0.20 |
% |
|
0.14 |
% |
||
As of June 30, 2022, the Bank had $30 thousand specific reserve related to two C&I impaired loan relationships.
The following table represents the allowance for loan losses as of and for the dates and periods indicated:
| Three Months Ended | Six Months Ended | ||||||||||||||
| June 30, 2022 |
March 31, 2022 |
June 30, 2022 |
June 30, 2021 |
||||||||||||
| (Figures in $000s) | |||||||||||||||
| Beginning Balance | $ |
26,561 |
|
$ |
25,062 |
|
$ |
25,062 |
|
$ |
22,931 |
|
|||
| Charge-offs |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|||
| Recoveries |
|
23 |
|
|
13 |
|
|
36 |
|
|
410 |
|
|||
| Net (charge-offs) / recoveries | $ |
23 |
|
$ |
13 |
|
$ |
36 |
|
$ |
410 |
|
|||
| Provision |
|
1,024 |
|
|
1,486 |
|
|
2,510 |
|
|
- |
|
|||
| Ending Balance | $ |
27,608 |
|
$ |
26,561 |
|
$ |
27,608 |
|
$ |
23,341 |
|
|||
| Allowance as a % of total assets, excluding PPP |
|
1.24 |
% |
|
1.27 |
% |
|
1.24 |
% |
|
1.40 |
% |
|||
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. There are no loans on a loan payment deferment program.
ABOUT AMERICAN BUSINESS BANK
American Business Bank, headquartered in downtown Los Angeles, offers a wide range of financial services to the business marketplace. Clients include wholesalers, manufacturers, service businesses, professionals and non-profits. American Business Bank has seven Loan Production Offices in strategic locations including: North Orange County in Anaheim, Orange County in Irvine, South Bay in Torrance, San Fernando Valley in Woodland Hills, Riverside County in Corona, Inland Empire in Ontario and LA Coastal in Long Beach.
FORWARD LOOKING STATEMENTS
This communication contains certain forward-looking information about American Business Bank that is intended to be covered by the safe harbor for “forward-looking statements” provided by the Private Securities Litigation Reform Act of 1995. Such statements include future financial and operating results, expectations, intentions and other statements that are not historical facts. Such statements are based on information available at the time of this communication and are based on current beliefs and expectations of the Bank’s management and are subject to significant risks, uncertainties and contingencies, many of which are beyond our control. Actual results may differ materially from those set forth in the forward-looking statements due to a variety of factors, including various risk factors. We are under no obligation (and expressly disclaim any such obligation) to update or alter our forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
| American Business Bank | |||||||||||||||||||||||
| Figures in $000, except share and per share amounts | |||||||||||||||||||||||
| BALANCE SHEETS (unaudited) | |||||||||||||||||||||||
| June | March | December | June | ||||||||||||||||||||
|
2022 |
|
|
|
2022 |
|
|
|
2021 |
|
|
|
2021 |
|
|||||||||
| Assets: | |||||||||||||||||||||||
| Cash and Due from Banks | $ |
68,512 |
|
$ |
48,531 |
|
$ |
33,246 |
|
$ |
74,242 |
|
|||||||||||
| Interest Earning Deposits in Other Financial Institutions |
|
22,277 |
|
|
63,022 |
|
|
195,624 |
|
|
269,596 |
|
|||||||||||
| Investment Securities: | |||||||||||||||||||||||
| US Agencies |
|
145,380 |
|
|
169,832 |
|
|
185,170 |
|
|
210,849 |
|
|||||||||||
| Mortgage Backed Securities |
|
479,027 |
|
|
545,447 |
|
|
808,496 |
|
|
577,726 |
|
|||||||||||
| State and Municipals |
|
110,586 |
|
|
122,868 |
|
|
231,917 |
|
|
213,729 |
|
|||||||||||
| US Treasuries |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|||||||||||
| Corporate Bonds |
|
13,758 |
|
|
14,044 |
|
|
12,903 |
|
|
10,966 |
|
|||||||||||
| Securities Available-for-Sale, at Fair Value |
|
748,751 |
|
|
852,191 |
|
|
1,238,486 |
|
|
1,013,270 |
|
|||||||||||
| Mortgage Backed Securities |
|
198,021 |
|
|
204,025 |
|
|
- |
|
|
- |
|
|||||||||||
| State and Municipals |
|
395,679 |
|
|
396,748 |
|
|
298,651 |
|
|
255,953 |
|
|||||||||||
| Securities Held-to-Maturity, at Amortized Cost |
|
593,700 |
|
|
600,773 |
|
|
298,651 |
|
|
255,953 |
|
|||||||||||
| Federal Home Loan Bank Stock, at Cost |
|
15,000 |
|
|
11,779 |
|
|
11,779 |
|
|
11,779 |
|
|||||||||||
| Total Investment Securities |
|
1,357,451 |
|
|
1,464,743 |
|
|
1,548,916 |
|
|
1,281,002 |
|
|||||||||||
| Loans Receivable: | |||||||||||||||||||||||
| Commercial Real Estate |
|
1,600,494 |
|
|
1,496,684 |
|
|
1,371,475 |
|
|
1,193,612 |
|
|||||||||||
| Commercial and Industrial |
|
510,020 |
|
|
492,822 |
|
|
444,009 |
|
|
364,019 |
|
|||||||||||
| SBA Payroll Protection Program |
|
22,931 |
|
|
86,387 |
|
|
143,584 |
|
|
386,388 |
|
|||||||||||
| Residential Real Estate |
|
109,853 |
|
|
102,305 |
|
|
112,817 |
|
|
105,711 |
|
|||||||||||
| Installment and Other |
|
6,103 |
|
|
5,756 |
|
|
5,897 |
|
|
4,261 |
|
|||||||||||
| Total Loans Receivable |
|
2,249,401 |
|
|
2,183,954 |
|
|
2,077,782 |
|
|
2,053,991 |
|
|||||||||||
| Allowance for Loan Losses |
|
(27,608 |
) |
|
(26,561 |
) |
|
(25,062 |
) |
|
(23,341 |
) |
|||||||||||
| Loans Receivable, Net |
|
2,221,793 |
|
|
2,157,393 |
|
|
2,052,720 |
|
|
2,030,650 |
|
|||||||||||
| Furniture, Equipment and Leasehold Improvements, Net |
|
6,025 |
|
|
6,327 |
|
|
6,580 |
|
|
7,074 |
|
|||||||||||
| Bank/Corporate Owned Life Insurance |
|
28,013 |
|
|
28,622 |
|
|
28,851 |
|
|
28,325 |
|
|||||||||||
| Other Assets |
|
73,301 |
|
|
58,242 |
|
|
46,339 |
|
|
41,440 |
|
|||||||||||
| Total Assets | $ |
3,777,372 |
|
$ |
3,826,880 |
|
$ |
3,912,276 |
|
$ |
3,732,329 |
|
|||||||||||
| Liabilities: | |||||||||||||||||||||||
| Non-Interest Bearing Demand Deposits | $ |
1,850,325 |
|
$ |
1,920,015 |
|
$ |
1,934,444 |
|
$ |
1,830,832 |
|
|||||||||||
| Interest Bearing Transaction Accounts |
|
287,444 |
|
|
277,016 |
|
|
287,224 |
|
|
257,726 |
|
|||||||||||
| Money Market and Savings Deposits |
|
1,284,994 |
|
|
1,297,039 |
|
|
1,337,035 |
|
|
1,311,603 |
|
|||||||||||
| Certificates of Deposit |
|
41,446 |
|
|
40,998 |
|
|
39,445 |
|
|
34,543 |
|
|||||||||||
| Total Deposits |
|
3,464,209 |
|
|
3,535,068 |
|
|
3,598,148 |
|
|
3,434,704 |
|
|||||||||||
| Federal Home Loan Bank Advances / Other Borrowings |
|
40,000 |
|
|
- |
|
|
- |
|
|
- |
|
|||||||||||
| Other Liabilities |
|
33,785 |
|
|
36,588 |
|
|
35,574 |
|
|
35,031 |
|
|||||||||||
| Total Liabilities | $ |
3,537,994 |
|
$ |
3,571,656 |
|
$ |
3,633,722 |
|
$ |
3,469,735 |
|
|||||||||||
| Shareholders' Equity: | |||||||||||||||||||||||
| Common Stock | $ |
204,057 |
|
$ |
203,400 |
|
$ |
202,199 |
|
$ |
200,904 |
|
|||||||||||
| Retained Earnings |
|
102,878 |
|
|
91,443 |
|
|
81,521 |
|
|
60,337 |
|
|||||||||||
| Accumulated Other Comprehensive Income / (Loss) |
|
(67,557 |
) |
|
(39,619 |
) |
|
(5,166 |
) |
|
1,353 |
|
|||||||||||
| Total Shareholders' Equity | $ |
239,378 |
|
$ |
255,224 |
|
$ |
278,554 |
|
$ |
262,594 |
|
|||||||||||
| Total Liabilities and Shareholders' Equity | $ |
3,777,372 |
|
$ |
3,826,880 |
|
$ |
3,912,276 |
|
$ |
3,732,329 |
|
|||||||||||
| Standby Letters of Credit | $ |
36,793 |
|
$ |
36,698 |
|
$ |
35,891 |
|
$ |
33,184 |
|
|||||||||||
| Per Share Information: | |||||||||||||||||||||||
| Common Shares Outstanding |
|
8,929,796 |
|
|
8,913,974 |
|
|
8,832,797 |
|
|
8,799,072 |
|
|||||||||||
| Book Value Per Share | $ |
26.81 |
|
$ |
28.63 |
|
$ |
31.54 |
|
$ |
29.84 |
|
|||||||||||
| Tangible Book Value Per Share | $ |
26.81 |
|
$ |
28.63 |
|
$ |
31.54 |
|
$ |
29.84 |
|
|||||||||||
* |
All per share amounts and number of shares outstanding have been retroactively applied for the 10% stock dividend paid in July 2021 | ||||||||||||||||||||||
| American Business Bank | |||||||||||||||||
| Figures in $000, except share and per share amounts | |||||||||||||||||
| INCOME STATEMENTS (unaudited) | |||||||||||||||||
| For the three months ended: | |||||||||||||||||
| June | March | June | |||||||||||||||
|
2022 |
|
|
|
2022 |
|
|
|
2021 |
||||||||
| Interest Income: | |||||||||||||||||
| Interest and Fees on Loans | $ |
23,985 |
|
$ |
21,809 |
|
$ |
22,861 |
|||||||||
| Interest on Investment Securities |
|
6,282 |
|
|
6,658 |
|
|
4,626 |
|||||||||
| Interest on Interest Earning Deposits in Other Financial Institutions |
|
63 |
|
|
80 |
|
|
99 |
|||||||||
| Total Interest Income |
|
30,330 |
|
|
28,547 |
|
|
27,586 |
|||||||||
| Interest Expense: | |||||||||||||||||
| Interest on Interest Bearing Transaction Accounts |
|
31 |
|
|
26 |
|
|
40 |
|||||||||
| Interest on Money Market and Savings Deposits |
|
308 |
|
|
323 |
|
|
426 |
|||||||||
| Interest on Certificates of Deposits |
|
10 |
|
|
10 |
|
|
12 |
|||||||||
| Interest on Federal Home Loan Bank Advances and Other Borrowings |
|
93 |
|
|
- |
|
|
- |
|||||||||
| Total Interest Expense |
|
442 |
|
|
359 |
|
|
478 |
|||||||||
| Net Interest Income |
|
29,888 |
|
|
28,188 |
|
|
27,108 |
|||||||||
| Provision for Loan Losses |
|
1,024 |
|
|
1,486 |
|
|
- |
|||||||||
| Net Interest Income after Provision for Loan Losses |
|
28,864 |
|
|
26,702 |
|
|
27,108 |
|||||||||
| Non-Interest Income: | |||||||||||||||||
| Deposit Fees |
|
1,018 |
|
|
960 |
|
|
763 |
|||||||||
| International Fees |
|
378 |
|
|
337 |
|
|
260 |
|||||||||
| Gain (Loss) on Sale of Investment Securities, Net |
|
(97 |
) |
|
30 |
|
|
- |
|||||||||
| Gain on Sale of SBA Loans, Net |
|
- |
|
|
- |
|
|
- |
|||||||||
| Bank/Corporate Owned Life Insurance Income (Expense) |
|
(609 |
) |
|
(229 |
) |
|
255 |
|||||||||
| Other |
|
404 |
|
|
293 |
|
|
192 |
|||||||||
| Total Non-Interest Income |
|
1,094 |
|
|
1,391 |
|
|
1,470 |
|||||||||
| Non-Interest Expense: | |||||||||||||||||
| Salaries and Employee Benefits |
|
9,487 |
|
|
10,475 |
|
|
10,231 |
|||||||||
| Occupancy and Equipment |
|
1,113 |
|
|
1,165 |
|
|
1,151 |
|||||||||
| Professional Services |
|
1,744 |
|
|
1,681 |
|
|
1,560 |
|||||||||
| Promotion Expenses |
|
403 |
|
|
320 |
|
|
297 |
|||||||||
| Other |
|
1,273 |
|
|
1,064 |
|
|
3,226 |
|||||||||
| Total Non-Interest Expense |
|
14,020 |
|
|
14,705 |
|
|
16,465 |
|||||||||
| Earnings before income taxes |
|
15,938 |
|
|
13,388 |
|
|
12,113 |
|||||||||
| Income Tax Expense |
|
4,504 |
|
|
3,465 |
|
|
3,054 |
|||||||||
| NET INCOME | $ |
11,434 |
|
$ |
9,923 |
|
$ |
9,059 |
|||||||||
| Per Share Information: | |||||||||||||||||
| Earnings Per Share - Basic | $ |
1.26 |
|
$ |
1.10 |
|
$ |
1.01 |
|||||||||
| Earnings Per Share - Diluted | $ |
1.24 |
|
$ |
1.08 |
|
$ |
1.00 |
|||||||||
| Weighted Average Shares - Basic |
|
9,098,568 |
|
|
9,040,825 |
|
|
8,961,797 |
|||||||||
| Weighted Average Shares - Diluted |
|
9,189,551 |
|
|
9,167,184 |
|
|
9,095,569 |
|||||||||
* |
All per share amounts and number of shares outstanding have been retroactively applied for the 10% stock dividend paid in July 2021 | ||||||||||||||||
| American Business Bank | |||||||||||
| Figures in $000, except share and per share amounts | |||||||||||
| INCOME STATEMENTS (unaudited) | |||||||||||
| For the six months ended: | |||||||||||
| June | June | ||||||||||
|
2022 |
|
|
|
2021 |
|
|||||
| Interest Income: | |||||||||||
| Interest and Fees on Loans | $ |
45,794 |
|
$ |
43,635 |
|
|||||
| Interest on Investment Securities |
|
12,939 |
|
|
8,748 |
|
|||||
| Interest on Interest Earning Deposits in Other Financial Institutions |
|
143 |
|
|
165 |
|
|||||
| Total Interest Income |
|
58,876 |
|
|
52,548 |
|
|||||
| Interest Expense: | |||||||||||
| Interest on Interest Bearing Transaction Accounts |
|
57 |
|
|
81 |
|
|||||
| Interest on Money Market and Savings Deposits |
|
630 |
|
|
840 |
|
|||||
| Interest on Certificates of Deposits |
|
20 |
|
|
26 |
|
|||||
| Interest on Federal Home Loan Bank Advances and Other Borrowings |
|
93 |
|
|
- |
|
|||||
| Total Interest Expense |
|
800 |
|
|
947 |
|
|||||
| Net Interest Income |
|
58,076 |
|
|
51,601 |
|
|||||
| Provision for Loan Losses |
|
2,510 |
|
|
- |
|
|||||
| Net Interest Income after Provision for Loan Losses |
|
55,566 |
|
|
51,601 |
|
|||||
| Non-Interest Income: | |||||||||||
| Deposit Fees |
|
1,978 |
|
|
1,507 |
|
|||||
| International Fees |
|
715 |
|
|
523 |
|
|||||
| Gain (Loss) on Sale of Investment Securities, Net |
|
(67 |
) |
|
(15 |
) |
|||||
| Gain on Sale of SBA Loans, Net |
|
- |
|
|
- |
|
|||||
| Bank/Corporate Owned Life Insurance Income (Expense) |
|
(838 |
) |
|
587 |
|
|||||
| Other |
|
697 |
|
|
394 |
|
|||||
| Total Non-Interest Income |
|
2,485 |
|
|
2,996 |
|
|||||
| Non-Interest Expense: | |||||||||||
| Salaries and Employee Benefits |
|
19,963 |
|
|
19,893 |
|
|||||
| Occupancy and Equipment |
|
2,278 |
|
|
2,297 |
|
|||||
| Professional Services |
|
3,424 |
|
|
3,263 |
|
|||||
| Promotion Expenses |
|
724 |
|
|
519 |
|
|||||
| Other |
|
2,336 |
|
|
4,426 |
|
|||||
| Total Non-Interest Expense |
|
28,725 |
|
|
30,398 |
|
|||||
| Earnings before income taxes |
|
29,326 |
|
|
24,199 |
|
|||||
| Income Tax Expense |
|
7,969 |
|
|
6,224 |
|
|||||
| NET INCOME | $ |
21,357 |
|
$ |
17,975 |
|
|||||
| Per Share Information: | |||||||||||
| Earnings Per Share - Basic | $ |
2.35 |
|
$ |
2.01 |
|
|||||
| Earnings Per Share - Diluted | $ |
2.33 |
|
$ |
1.98 |
|
|||||
| Weighted Average Shares - Basic |
|
9,069,697 |
|
|
8,941,869 |
|
|||||
| Weighted Average Shares - Diluted |
|
9,178,368 |
|
|
9,064,349 |
|
|||||
| * | All per share amounts and number of shares outstanding have been retroactively applied for the 10% stock dividend | ||||||||||
| American Business Bank | ||||||||||||||||||||||||
| Figures in $000 | ||||||||||||||||||||||||
| QUARTERLY AVERAGE BALANCE SHEETS AND YIELD ANALYSIS (unaudited) | ||||||||||||||||||||||||
| For the three months ended: | ||||||||||||||||||||||||
| June 2022 | March 2022 | |||||||||||||||||||||||
| Average | Interest | Average | Average | Interest | Average | |||||||||||||||||||
| Balance | Inc/Exp | Yield/Rate | Balance | Inc/Exp | Yield/Rate | |||||||||||||||||||
| Interest Earning Assets: | ||||||||||||||||||||||||
| Interest Earning Deposits in Other Financial Institutions | $ |
41,523 |
$ |
63 |
0.61 |
% |
$ |
162,969 |
$ |
80 |
0.20 |
% |
||||||||||||
| Investment Securities: | ||||||||||||||||||||||||
| US Agencies |
|
157,180 |
|
1 |
0.00 |
% |
|
177,077 |
|
91 |
0.21 |
% |
||||||||||||
| Mortgage Backed Securities |
|
775,309 |
|
3,054 |
1.58 |
% |
|
805,321 |
|
3,361 |
1.67 |
% |
||||||||||||
| State and Municipals |
|
519,137 |
|
2,870 |
2.21 |
% |
|
523,835 |
|
2,913 |
2.22 |
% |
||||||||||||
| US Treasuries |
|
- |
|
- |
0.00 |
% |
|
- |
|
- |
0.00 |
% |
||||||||||||
| Corporate Bonds |
|
14,250 |
|
132 |
3.71 |
% |
|
13,000 |
|
113 |
3.47 |
% |
||||||||||||
| Securities Available-for-Sale and Held-to-Maturity |
|
1,465,876 |
|
6,057 |
1.65 |
% |
|
1,519,233 |
|
6,478 |
1.71 |
% |
||||||||||||
| Federal Home Loan Bank Stock |
|
14,363 |
|
225 |
6.27 |
% |
|
11,779 |
|
180 |
6.10 |
% |
||||||||||||
| Total Investment Securities |
|
1,480,239 |
|
6,282 |
1.70 |
% |
|
1,531,012 |
|
6,658 |
1.74 |
% |
||||||||||||
| Loans Receivable: | ||||||||||||||||||||||||
| Commercial Real Estate |
|
1,540,228 |
|
15,686 |
4.08 |
% |
|
1,418,952 |
|
14,180 |
4.05 |
% |
||||||||||||
| Commercial and Industrial |
|
506,220 |
|
5,371 |
4.26 |
% |
|
465,403 |
|
4,691 |
4.09 |
% |
||||||||||||
| SBA Payroll Protection Program |
|
57,428 |
|
1,762 |
12.31 |
% |
|
110,355 |
|
1,875 |
6.89 |
% |
||||||||||||
| Residential Real Estate |
|
106,847 |
|
1,092 |
4.10 |
% |
|
109,759 |
|
1,011 |
3.74 |
% |
||||||||||||
| Installment and Other |
|
7,024 |
|
74 |
4.23 |
% |
|
6,746 |
|
52 |
3.10 |
% |
||||||||||||
| Total Loans Receivable |
|
2,217,747 |
|
23,985 |
4.34 |
% |
|
2,111,215 |
|
21,809 |
4.19 |
% |
||||||||||||
| Total Interest Earning Assets | $ |
3,739,509 |
$ |
30,330 |
3.21 |
% |
$ |
3,805,196 |
$ |
28,547 |
3.00 |
% |
||||||||||||
| Liabilities: | ||||||||||||||||||||||||
| Non-Interest Bearing Demand Deposits |
|
1,902,386 |
|
- |
0.00 |
% |
|
1,984,694 |
|
- |
0.00 |
% |
||||||||||||
| Interest Bearing Transaction Accounts |
|
278,539 |
|
31 |
0.04 |
% |
|
274,988 |
|
26 |
0.04 |
% |
||||||||||||
| Money Market and Savings Deposits |
|
1,254,257 |
|
308 |
0.10 |
% |
|
1,303,545 |
|
323 |
0.10 |
% |
||||||||||||
| Certificates of Deposit |
|
41,303 |
|
10 |
0.10 |
% |
|
40,270 |
|
10 |
0.10 |
% |
||||||||||||
| Total Deposits |
|
3,476,485 |
|
349 |
0.04 |
% |
|
3,603,497 |
|
359 |
0.04 |
% |
||||||||||||
| Federal Home Loan Bank Advances / Other Borrowings |
|
46,473 |
|
93 |
0.80 |
% |
|
- |
|
- |
0.00 |
% |
||||||||||||
| Total Interest Bearing Deposits and Borrowings |
|
1,620,572 |
|
442 |
0.11 |
% |
|
1,618,803 |
|
359 |
0.09 |
% |
||||||||||||
| Total Deposits and Borrowings | $ |
3,522,958 |
$ |
442 |
0.05 |
% |
$ |
3,603,497 |
$ |
359 |
0.04 |
% |
||||||||||||
| Net Interest Income | $ |
29,888 |
$ |
28,188 |
||||||||||||||||||||
| Net Interest Rate Spread | 3.16 |
% |
2.96 |
% |
||||||||||||||||||||
| Net Interest Margin | 3.21 |
% |
3.00 |
% |
||||||||||||||||||||
| Net Interest Margin, excluding SBA PPP | 3.06 |
% |
2.89 |
% |
||||||||||||||||||||
| American Business Bank | |||||||||||||||||||||||||||
| Figures in $000 | |||||||||||||||||||||||||||
| QUARTERLY AVERAGE BALANCE SHEETS AND YIELD ANALYSIS (unaudited) | |||||||||||||||||||||||||||
| For the three months ended: | |||||||||||||||||||||||||||
| June 2022 | June 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 | $ |
41,523 |
$ |
63 |
0.61 |
% | $ |
329,324 |
$ |
99 |
0.12 |
% |
|||||||||||||||
| Investment Securities: | |||||||||||||||||||||||||||
| US Agencies |
|
157,180 |
|
1 |
0.00 |
% |
|
216,143 |
|
383 |
0.71 |
% |
|||||||||||||||
| Mortgage Backed Securities |
|
775,309 |
|
3,054 |
1.58 |
% |
|
466,148 |
|
1,565 |
1.34 |
% |
|||||||||||||||
| State and Municipals |
|
519,137 |
|
2,870 |
2.21 |
% |
|
435,608 |
|
2,394 |
2.20 |
% |
|||||||||||||||
| US Treasuries |
|
- |
|
- |
0.00 |
% |
|
- |
|
- |
0.00 |
% |
|||||||||||||||
| Corporate Bonds |
|
14,250 |
|
132 |
3.71 |
% |
|
10,085 |
|
82 |
3.25 |
% |
|||||||||||||||
| Securities Available-for-Sale and Held-to-Maturity |
|
1,465,876 |
|
6,057 |
1.65 |
% |
|
1,127,984 |
|
4,424 |
1.57 |
% |
|||||||||||||||
| Federal Home Loan Bank Stock |
|
14,363 |
|
225 |
6.27 |
% |
|
11,628 |
|
202 |
6.95 |
% |
|||||||||||||||
| Total Investment Securities |
|
1,480,239 |
|
6,282 |
1.70 |
% |
|
1,139,612 |
|
4,626 |
1.62 |
% |
|||||||||||||||
| Loans Receivable: | |||||||||||||||||||||||||||
| Commercial Real Estate |
|
1,540,228 |
|
15,686 |
4.08 |
% |
|
1,163,231 |
|
11,944 |
4.12 |
% |
|||||||||||||||
| Commercial and Industrial |
|
506,220 |
|
5,371 |
4.26 |
% |
|
340,067 |
|
3,921 |
4.62 |
% |
|||||||||||||||
| SBA Payroll Protection Program |
|
57,428 |
|
1,762 |
12.31 |
% |
|
555,338 |
|
6,069 |
4.38 |
% |
|||||||||||||||
| Residential Real Estate |
|
106,847 |
|
1,092 |
4.10 |
% |
|
93,126 |
|
889 |
3.83 |
% |
|||||||||||||||
| Installment and Other |
|
7,024 |
|
74 |
4.23 |
% |
|
5,613 |
|
38 |
2.75 |
% |
|||||||||||||||
| Total Loans Receivable |
|
2,217,747 |
|
23,985 |
4.34 |
% |
|
2,157,375 |
|
22,861 |
4.25 |
% |
|||||||||||||||
| Total Interest Earning Assets | $ |
3,739,509 |
$ |
30,330 |
3.21 |
% | $ |
3,626,311 |
$ |
27,586 |
3.01 |
% |
|||||||||||||||
| Liabilities: | |||||||||||||||||||||||||||
| Non-Interest Bearing Demand Deposits |
|
1,902,386 |
|
- |
0.00 |
% |
|
1,871,930 |
|
- |
0.00 |
% |
|||||||||||||||
| Interest Bearing Transaction Accounts |
|
278,539 |
|
31 |
0.04 |
% |
|
267,490 |
|
40 |
0.06 |
% |
|||||||||||||||
| Money Market and Savings Deposits |
|
1,254,257 |
|
308 |
0.10 |
% |
|
1,278,436 |
|
426 |
0.13 |
% |
|||||||||||||||
| Certificates of Deposit |
|
41,303 |
|
10 |
0.10 |
% |
|
34,446 |
|
12 |
0.14 |
% |
|||||||||||||||
| Total Deposits |
|
3,476,485 |
|
349 |
0.04 |
% |
|
3,452,302 |
|
478 |
0.06 |
% |
|||||||||||||||
| Federal Home Loan Bank Advances / Other Borrowings |
|
46,473 |
|
93 |
0.80 |
% |
|
7 |
|
- |
0.37 |
% |
|||||||||||||||
| Total Interest Bearing Deposits and Borrowings |
|
1,620,572 |
|
442 |
0.11 |
% |
|
1,580,379 |
|
478 |
0.12 |
% |
|||||||||||||||
| Total Deposits and Borrowings | $ |
3,522,958 |
$ |
442 |
0.05 |
% | $ |
3,452,309 |
$ |
478 |
0.06 |
% |
|||||||||||||||
| Net Interest Income | $ |
29,888 |
$ |
27,108 |
|||||||||||||||||||||||
| Net Interest Rate Spread | 3.16 |
% | 2.95 |
% |
|||||||||||||||||||||||
| Net Interest Margin | 3.21 |
% | 3.00 |
% |
|||||||||||||||||||||||
| Net Interest Margin, excluding SBA PPP | 3.06 |
% | 2.75 |
% |
|||||||||||||||||||||||
| American Business Bank | ||||||||||||||||||||||
| Figures in $000 | ||||||||||||||||||||||
| QUARTERLY AVERAGE BALANCE SHEETS AND YIELD ANALYSIS (unaudited) | ||||||||||||||||||||||
| For the six months ended: | ||||||||||||||||||||||
| June 2022 | June 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 | $ |
101,911 |
$ |
143 |
0.28 |
% |
$ |
273,160 |
$ |
165 |
0.12 |
% |
||||||||||
| Investment Securities: | ||||||||||||||||||||||
| US Agencies |
|
167,073 |
|
92 |
0.11 |
% |
|
220,619 |
|
790 |
0.72 |
% |
||||||||||
| Mortgage Backed Securities |
|
790,232 |
|
6,415 |
1.62 |
% |
|
432,702 |
|
2,794 |
1.29 |
% |
||||||||||
| State and Municipals |
|
521,473 |
|
5,782 |
2.22 |
% |
|
425,248 |
|
4,662 |
2.19 |
% |
||||||||||
| US Treasuries |
|
- |
|
- |
0.00 |
% |
|
- |
|
- |
0.00 |
% |
||||||||||
| Corporate Bonds |
|
13,628 |
|
245 |
3.59 |
% |
|
10,179 |
|
164 |
3.23 |
% |
||||||||||
| Securities Available-for-Sale and Held-to-Maturity |
|
1,492,406 |
|
12,534 |
1.68 |
% |
|
1,088,748 |
|
8,410 |
1.54 |
% |
||||||||||
| Federal Home Loan Bank Stock |
|
13,078 |
|
405 |
6.19 |
% |
|
11,248 |
|
338 |
6.01 |
% |
||||||||||
| Total Investment Securities |
|
1,505,484 |
|
12,939 |
1.72 |
% |
|
1,099,996 |
|
8,748 |
1.59 |
% |
||||||||||
| Loans Receivable: | ||||||||||||||||||||||
| Commercial Real Estate |
|
1,479,925 |
|
29,866 |
4.07 |
% |
|
1,134,719 |
|
23,405 |
4.16 |
% |
||||||||||
| Commercial and Industrial |
|
485,924 |
|
10,062 |
4.18 |
% |
|
335,448 |
|
7,383 |
4.44 |
% |
||||||||||
| SBA Payroll Protection Program |
|
83,746 |
|
3,637 |
8.76 |
% |
|
582,338 |
|
11,110 |
3.85 |
% |
||||||||||
| Residential Real Estate |
|
108,295 |
|
2,103 |
3.92 |
% |
|
85,622 |
|
1,648 |
3.88 |
% |
||||||||||
| Installment and Other |
|
6,886 |
|
126 |
3.68 |
% |
|
5,287 |
|
89 |
3.40 |
% |
||||||||||
| Total Loans Receivable |
|
2,164,776 |
|
45,794 |
4.27 |
% |
|
2,143,414 |
|
43,635 |
4.11 |
% |
||||||||||
| Total Interest Earning Assets | $ |
3,772,171 |
$ |
58,876 |
3.10 |
% |
$ |
3,516,570 |
$ |
52,548 |
2.97 |
% |
||||||||||
| Liabilities: | ||||||||||||||||||||||
| Non-Interest Bearing Demand Deposits |
|
1,943,313 |
|
- |
0.00 |
% |
|
1,801,668 |
|
- |
0.00 |
% |
||||||||||
| Interest Bearing Transaction Accounts |
|
276,773 |
|
57 |
0.04 |
% |
|
261,487 |
|
81 |
0.06 |
% |
||||||||||
| Money Market and Savings Deposits |
|
1,278,765 |
|
630 |
0.10 |
% |
|
1,251,077 |
|
840 |
0.14 |
% |
||||||||||
| Certificates of Deposit |
|
40,789 |
|
20 |
0.10 |
% |
|
34,654 |
|
26 |
0.15 |
% |
||||||||||
| Total Deposits |
|
3,539,640 |
|
707 |
0.04 |
% |
|
3,348,886 |
|
947 |
0.06 |
% |
||||||||||
| Federal Home Loan Bank Advances / Other Borrowings |
|
23,365 |
|
93 |
0.80 |
% |
|
4 |
|
- |
0.37 |
% |
||||||||||
| Total Interest Bearing Deposits and Borrowings |
|
1,619,692 |
|
800 |
0.10 |
% |
|
1,547,222 |
|
947 |
0.12 |
% |
||||||||||
| Total Deposits and Borrowings | $ |
3,563,005 |
$ |
800 |
0.05 |
% |
$ |
3,348,890 |
$ |
947 |
0.06 |
% |
||||||||||
| Net Interest Income | $ |
58,076 |
$ |
51,601 |
||||||||||||||||||
| Net Interest Rate Spread | 3.05 |
% |
2.91 |
% |
||||||||||||||||||
| Net Interest Margin | 3.10 |
% |
2.96 |
% |
||||||||||||||||||
| Net Interest Margin, excluding SBA PPP | 2.98 |
% |
2.78 |
% |
||||||||||||||||||
| American Business Bank | ||||||||||||||||||||||
| Figures in $000 | ||||||||||||||||||||||
| SUPPLEMENTAL DATA (unaudited) | ||||||||||||||||||||||
| June | March | December | June | |||||||||||||||||||
|
2022 |
|
|
|
2022 |
|
|
|
2021 |
|
|
|
2021 |
|
||||||||
| Performance Ratios: | ||||||||||||||||||||||
| Quarterly: | ||||||||||||||||||||||
| Return on Average Assets (ROAA) |
|
1.20 |
% |
|
1.01 |
% |
|
0.97 |
% |
|
0.97 |
% |
||||||||||
| Return on Average Equity (ROAE) |
|
18.56 |
% |
|
14.48 |
% |
|
14.17 |
% |
|
14.21 |
% |
||||||||||
| Efficiency Ratio |
|
45.11 |
% |
|
49.77 |
% |
|
51.10 |
% |
|
57.61 |
% |
||||||||||
| Year-to-Date | ||||||||||||||||||||||
| Return on Average Assets (ROAA) |
|
1.11 |
% |
|
1.01 |
% |
|
1.03 |
% |
|
0.99 |
% |
||||||||||
| Return on Average Equity (ROAE) |
|
16.42 |
% |
|
14.48 |
% |
|
14.95 |
% |
|
14.26 |
% |
||||||||||
| Efficiency Ratio |
|
47.38 |
% |
|
49.77 |
% |
|
51.77 |
% |
|
55.66 |
% |
||||||||||
| Capital Adequacy: | ||||||||||||||||||||||
| Total Risk Based Capital Ratio |
|
12.66 |
% |
|
12.82 |
% |
|
13.21 |
% |
|
14.26 |
% |
||||||||||
| Common Equity Tier 1 Capital Ratio |
|
11.58 |
% |
|
11.72 |
% |
|
12.09 |
% |
|
13.01 |
% |
||||||||||
| Tier 1 Risk Based Capital Ratio |
|
11.58 |
% |
|
11.72 |
% |
|
12.09 |
% |
|
13.01 |
% |
||||||||||
| Tier 1 Leverage Ratio |
|
8.07 |
% |
|
7.53 |
% |
|
7.09 |
% |
|
6.98 |
% |
||||||||||
| Tangible Common Equity / Tangible Assets |
|
6.34 |
% |
|
6.67 |
% |
|
7.12 |
% |
|
7.04 |
% |
||||||||||
| Asset Quality Overview | ||||||||||||||||||||||
| Non-Performing Loans | $ |
1,208 |
|
$ |
- |
|
$ |
338 |
|
$ |
54 |
|
||||||||||
| Loans 90+ Days Past Due and Still Accruing |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
||||||||||
| Total Non-Performing Loans |
|
1,208 |
|
|
- |
|
|
338 |
|
|
54 |
|
||||||||||
| Restructured Loans |
|
- |
|
|
- |
|
|
- |
|
|
214 |
|
||||||||||
| Other Real Estate Owned |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
||||||||||
| ALLL / Loans Receivable |
|
1.23 |
% |
|
1.22 |
% |
|
1.21 |
% |
|
1.14 |
% |
||||||||||
| Non-Performing Loans / Total Loans Receivable * |
|
0.05 |
% |
|
0.00 |
% |
|
0.02 |
% |
|
0.01 |
% |
||||||||||
| Non-Performing Loans / Total Loans Receivable *, excluding PPP ** |
|
0.05 |
% |
|
0.00 |
% |
|
0.02 |
% |
|
0.02 |
% |
||||||||||
| Non-Performing Assets / Total Assets * |
|
0.03 |
% |
|
0.00 |
% |
|
0.01 |
% |
|
0.01 |
% |
||||||||||
| Non-Performing Assets / Total Assets *, excluding PPP ** |
|
0.03 |
% |
|
0.00 |
% |
|
0.01 |
% |
|
0.01 |
% |
||||||||||
| Net Charge-Offs (Recoveries) quarterly | $ |
(23 |
) |
$ |
(13 |
) |
$ |
(27 |
) |
$ |
(395 |
) |
||||||||||
| Net Charge-Offs (Recoveries) year-to-date | $ |
(37 |
) |
$ |
(13 |
) |
$ |
(178 |
) |
$ |
(411 |
) |
||||||||||
| Net Charge-Offs (Recoveries) year-to-date / Average |
|
(0.00 |
%) |
|
(0.00 |
%) |
|
(0.01 |
%) |
|
(0.02 |
%) |
||||||||||
| Loans Receivable | ||||||||||||||||||||||
| * | Includes non-accrual loans, accruing loans past due 90+ days and Troubled Debt Restructurings (TDRs). | |||||||||||||||||||||
| ** | SBA Paycheck Protection Program (PPP) |
|||||||||||||||||||||
