LOS ANGELES--(BUSINESS WIRE)--AMERICAN BUSINESS BANK (OTCQX: AMBZ) today reported net income of $10.5 million or $1.13 per fully diluted share for the quarter ended March 31, 2024 compared to $11.4 million or $1.23 per fully diluted share for the quarter ended December 31, 2023, and $13.1 million or $1.42 per fully diluted share for the quarter ending March 31, 2023, representing declines of 8% and 20%, respectively. The reduction in net income is primarily due to reduced net interest income.
“We remain focused on providing high touch community banking services to our business clients with a conservative risk approach. At its core, our business is solely reliant on spread income and the rapid rise in interest rates combined with an inverted yield curve has compressed the net interest margin. As is typical, in the 1st quarter our customers distributed funds for bonuses. Additionally, several of our larger clients took advantage of outside investment opportunities. As a result, despite adding new clients, total deposits declined compared to the prior quarter. Our goals for 2024 continue to be centered on building our outstanding core deposit franchise to eliminate borrowings and enhance margins. There is a strong deposit pipeline of new customers and the cost of deposits seems to be accelerating at a slower pace. The key to our success in 2024 is the continued generation of new clients and we are well positioned to do so.
“The one area the Bank can control is expenses, operating expenses increased 0.9% quarter over quarter and 3.7% year over year. Despite experiencing margin pressure, the Bank still achieved a return on average assets of 1.08% and a return on average equity of 13.4% for the quarter.
“We continue to deliver superior service with the goal of being the premier relationship-banking franchise for small to mid-size businesses in Southern California.” commented Leon Blankstein, ABB’s CEO and Director.
For the quarter ending March 31, 2024, net interest income was $29 million, representing a 5% decrease over the fourth quarter of 2023. Net interest income was negatively impacted by the increase in the cost of deposits and borrowings exceeding the increase in interest earned on loans and securities. The cost of deposits was the largest contributor to the decrease in net interest income as compared to the prior year quarter. For the quarter ending March 31, 2024, the cost of deposits was 1.24% representing an increase of 7 bps compared to the quarter ending December 31, 2023.
The provision for credit losses was $0.2 million in the quarter, a decrease from the prior quarter. The decrease in provision was a result of a reduction in the loan portfolio along with net recoveries of $0.1 million offset by an increase in the reserve for unfunded loan commitments mainly due to a decrease in line utilization. The allowance for credit losses as a percentage of loans was 1.10% at March 31, 2024 and December 31, 2023.
Net Interest Margin
Net interest margin for the first quarter of 2024 decreased to 3.07% from 3.16% for the fourth quarter of 2023 primarily due to an increase in average borrowings. Net interest margin for the first quarter of 2024 decreased to 3.07% from 3.38% for the first quarter of 2023 primarily due to an increase in the cost of deposits and a decline in the ratio of average non-interest bearing deposits to total deposits. As of March 31, 2024, 63% of the loan portfolio was fixed rate with a weighted average remaining life of 74 months. Of the variable rate loans, approximately 46% are indexed to prime of which $381 million are adjustable within 90 days of a change in prime.
Net Interest Income
For the quarter ended March 31, 2024, net interest income decreased by $1.5 million, or 5%, compared to the fourth quarter of 2023 primarily due to an increase in borrowings. For the quarter ended March 31, 2024, net interest income decreased by $2.5 million, or 8%, compared to the first quarter of 2023. The decrease compared to prior year quarter is primarily due to a change in the mix of deposits from non-interest bearing deposits to interest bearing deposits. The Loan to Deposit ratio was 78% and 81% as of March 31, 2024 and 2023, respectively.
Provision for Credit Losses
The following table presents details of the provision for credit losses for the periods indicated:
| Three Months Ended | ||||||||||
| March 31, 2024 |
December 31, 2023 |
March 31, 2023 |
||||||||
| (Figures in $000s) | ||||||||||
| Addition (recapture) to allowance for loan losses | $ |
(226 |
) |
$ |
1,049 |
|
$ |
313 |
||
| Addition (recapture) to reserve for unfunded loan commitments |
|
438 |
|
|
(490 |
) |
|
150 |
||
| Total loan-related provision | $ |
212 |
|
$ |
559 |
|
$ |
463 |
||
| Addition to allowance for held-to-maturity securities |
|
- |
|
|
- |
|
|
- |
||
| Total provision for credit losses | $ |
212 |
|
$ |
559 |
|
$ |
463 |
||
Non-Interest Income
The decrease in non-interest income compared to the prior quarter and compared to the prior year quarter is primarily due a reduction in the gain on sales of SBA loans. In 2023, seasoned SBA loans were sold unlike in 2024 where only current production was sold.
Non-Interest Expense
For the quarter ending March 31, 2024, total non-interest expense increased $0.2 million compared to the prior quarter and increased $0.6 million compared to the prior year quarter. The increase compared to the prior quarter and prior year quarter is primarily due to an increase in salaries and employee benefits as bonuses and commissions fluctuated with actual results between the periods. The efficiency ratio of 54% for the first quarter of 2024 increased compared to 48% for the fourth quarter of 2023 and 47% for the first quarter of 2023. The first quarter of 2024 is more typical of the Bank’s quarterly non-interest expense.
There were 233 full time equivalent employees at March 31, 2024 compared to 224 a year ago and 233 at December 31, 2023. The Bank has 40 relationship managers in eight offices representing a decrease of one from a year ago and from the prior quarter.
Income Taxes
The effective income tax rate was 27.9% for the quarter ended March 31, 2024, 27.6% for the quarter ended December 31, 2023, and 27.1% for the quarter ended March 31, 2023.
Balance Sheet
For the quarter ended March 31, 2024, total loans decreased $7 million, or 0.3% compared to the prior quarter. The majority of this decline was in Commercial and industrial (C&I) loans mainly as a result of a decrease in line utilization. At March 31, 2024, the utilization rate for the Bank’s commercial lines of credit decreased to 26% from 27% at December 31, 2023. The decline in C&I was offset by loan growth in Commercial real estate (CRE) loans.
| March 31, 2024 |
December 31, 2023 |
|||||
| (Figures in $000s) | ||||||
| RE - Owner occupied | $ |
1,120,822 |
$ |
1,111,476 |
||
| RE - Non owner occupied |
|
718,439 |
|
722,531 |
||
| Construction & Land |
|
62,359 |
|
50,078 |
||
| Total CRE Loans | $ |
1,901,621 |
$ |
1,884,085 |
||
The following table is the composition of the Owner occupied and Non owner occupied CRE loans by collateral type:
| as of March 31, 2024 | ||||||
| Owner occupied | Non owner occupied | |||||
| (Figures in $000s) | ||||||
| Industrial | $ |
693,253 |
$ |
298,339 |
||
| Office |
|
166,758 |
|
99,516 |
||
| Retail |
|
22,349 |
|
183,539 |
||
| Automobile Service Facilities |
|
66,709 |
|
17,759 |
||
| Contractor's Yard |
|
60,427 |
|
8,302 |
||
| Other |
|
27,379 |
|
36,292 |
||
| Miscellaneous |
|
83,946 |
|
74,692 |
||
| Total | $ |
1,120,822 |
$ |
718,439 |
||
Total investment securities declined to $1.2 billion at March 31, 2024, which include $561 million or 45% in held-to-maturity (HTM) securities based on book value. As of March 31, 2024, the duration of the available-for-sale (AFS) securities portfolio was 5.8 years, an increase from 5.7 years as of December 31, 2023 and 5.5 years as of March 31, 2023. Accumulated other comprehensive loss (AOCI) increased to $79.6 million as of March 31, 2024 from $70.7 million as of December 31, 2023 as market rates relevant to securities pricing increased. The duration on the held-to-maturity portfolio, which consists primarily of municipal securities, is 7.8 years. As of March 31, 2024, the unrealized after tax loss on HTM securities was $72 million.
During the first quarter of 2024, deposits declined by $188 million or 5% to $3.3 billion. The Bank has lost minimal relationships due to the turbulence in the banking industry this last year. Since January 1, 2024, new deposit relationships have totaled approximately $5.6 million in deposits from 26 new clients. The Bank’s off-balance sheet products of treasury securities held for clients increased by $25 million during the first quarter of 2024 to $247 million and declined by $31 million from prior year quarter. The Bank has no brokered deposits nor internet solicited deposits.
During the first quarter of 2024, total assets decreased $26.5 million, or 0.7%, total loans declined $7 million, or 0.3%, total deposits decreased by $188 million, or 5%, and borrowings increased by $155 million.
The Federal Reserve Bank (FRB) Term Funding Program ended March 11, 2024; however, $180 million is outstanding with a maturity date of March 11, 2025 at a rate of 5.4%. Including the outstanding FRTB borrowing, and also under the FRB discount window and loans pledged at the Federal Home Loan Bank of San Francisco, the Bank has $1.7 billion in borrowing capacity as of March 31, 2024.
Asset Quality
The following table presents asset quality overview as of the dates indicated:
| March 31, 2024 |
December 31, 2023 |
||||||
| (Figures in $000s) | |||||||
| Non-performing assets (NPA) | $ |
7,440 |
|
$ |
7,859 |
|
|
| Loans 90+ Days Past Due and Still Accruing |
|
- |
|
|
- |
|
|
| Total NPA | $ |
7,440 |
|
$ |
7,859 |
|
|
| NPA as a % of total assets |
|
0.19 |
% |
|
0.20 |
% |
|
| Past Due as a % of total Loans |
|
0.00 |
% |
|
0.00 |
% |
|
| Criticized as a % of total Loans |
|
5.67 |
% |
|
5.95 |
% |
|
| Classified as a % of total Loans |
|
0.88 |
% |
|
0.29 |
% |
|
During the first quarter, non-performing assets (NPAs) decreased by $0.4 million to $7.4 million mainly due to a paydown of one loan and a $99,000 charge off of one loan relationship. As of March 31, 2024, NPAs have a $333 thousand allowance on individually evaluated loans related to one residential real estate loan relationship and seven C&I non-performing loan relationships of which the majority have a partial guarantee by the state of California or the SBA. Criticized loans reflect an overall deterioration in contractors impacted by an increase in labor and material costs. The construction industry related loans represent 15% of the loan portfolio. The increase in classified loans is due to one loan that is fully secured by industrial real estate.
The loan portfolio has approximately 10% in office collateral of which the majority is owner-occupied, and substantially all are three stories or under and are all located in suburban markets.
The following table represents the allowance for credit losses for loans as of and for the dates and periods indicated:
| Three Months Ended | |||||||||||
| March 31, 2024 |
December 31, 2023 |
March 31, 2023 |
|||||||||
| (Figures in $000s) | |||||||||||
| Balance, beginning of period | $ |
28,460 |
|
$ |
27,601 |
|
$ |
29,635 |
|
||
| Cumulative effect of change in accounting principle - CECL |
|
- |
|
|
- |
|
|
(3,885 |
) |
||
| Charge-offs |
|
(99 |
) |
|
(200 |
) |
|
- |
|
||
| Recoveries |
|
200 |
|
|
10 |
|
|
10 |
|
||
| Net (charge-offs) / recoveries | $ |
101 |
|
$ |
(190 |
) |
$ |
10 |
|
||
| Provision |
|
(226 |
) |
|
1,049 |
|
|
313 |
|
||
| Balance, end of period | $ |
28,335 |
|
$ |
28,460 |
|
$ |
26,073 |
|
||
| Allowance as a % of loans |
|
1.10 |
% |
|
1.10 |
% |
|
1.05 |
% |
||
The allowance for credit losses for loans declined to $28.3 million during the first quarter of 2024 primarily as a result of a decline in the loan portfolio. There was a $99,000 charge off on the unguaranteed portion related to a state guaranteed loan in the first quarter of 2024 compared to no charge offs in the prior year quarter. The Bank recovered in the first quarter of 2024 the loan that had been charged off in the prior quarter. The Bank has one $229 thousand restructured SBA guaranteed loan involving a borrower experiencing financial difficulty.
ABOUT AMERICAN BUSINESS BANK
American Business Bank, headquartered in downtown Los Angeles, offers a wide range of financial services to the business marketplace. Clients include wholesalers, manufacturers, service businesses, professionals and non-profits. American Business Bank has seven Loan Production Offices in strategic locations including: North Orange County in Anaheim, Orange County in Irvine, South Bay in Torrance, San Fernando Valley in Woodland Hills, Riverside County in Corona, Inland Empire in Ontario and LA Coastal in Long Beach.
FORWARD LOOKING STATEMENTS
This communication contains certain forward-looking information about American Business Bank that is intended to be covered by the safe harbor for “forward-looking statements” provided by the Private Securities Litigation Reform Act of 1995. Such statements include future financial and operating results, expectations, intentions and other statements that are not historical facts. Such statements are based on information available at the time of this communication and are based on current beliefs and expectations of the Bank’s management and are subject to significant risks, uncertainties and contingencies, many of which are beyond our control. Actual results may differ materially from those set forth in the forward-looking statements due to a variety of factors, including various risk factors. We are under no obligation (and expressly disclaim any such obligation) to update or alter our forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
| American Business Bank | |||||||||
| Figures in $000, except share and per share amounts | |||||||||
| BALANCE SHEETS (unaudited) | |||||||||
| March | December | March | |||||||
|
2024 |
|
|
2023 |
|
|
2023 |
|
|
| Assets: | |||||||||
| Cash and Due from Banks | $ |
52,198 |
|
$ |
32,354 |
|
$ |
43,642 |
|
| Interest Earning Deposits in Other Financial Institutions |
|
10,368 |
|
|
10,804 |
|
|
9,732 |
|
| Investment Securities: | |||||||||
| US Agencies |
|
85,678 |
|
|
91,226 |
|
|
114,081 |
|
| Mortgage Backed Securities |
|
394,124 |
|
|
413,870 |
|
|
442,375 |
|
| State and Municipals |
|
86,535 |
|
|
91,949 |
|
|
100,791 |
|
| Corporate Bonds |
|
13,870 |
|
|
14,157 |
|
|
14,347 |
|
| Securities Available-for-Sale, at Fair Value |
|
580,207 |
|
|
611,202 |
|
|
671,594 |
|
| Mortgage Backed Securities |
|
176,317 |
|
|
178,985 |
|
|
187,850 |
|
| State and Municipals |
|
384,612 |
|
|
390,184 |
|
|
393,459 |
|
| Allowance for Credit Losses, Held-To-Maturity |
|
(55 |
) |
|
(55 |
) |
|
(55 |
) |
| Securities Held-to-Maturity, at Amortized Cost, |
|
560,874 |
|
|
569,114 |
|
|
581,254 |
|
| Net of Allowance for Credit Losses | |||||||||
| Federal Home Loan Bank Stock, at Cost |
|
15,000 |
|
|
15,000 |
|
|
15,000 |
|
| Total Investment Securities |
|
1,156,081 |
|
|
1,195,316 |
|
|
1,267,848 |
|
| Loans Receivable: | |||||||||
| Commercial Real Estate |
|
1,901,621 |
|
|
1,884,085 |
|
|
1,801,897 |
|
| Commercial and Industrial |
|
470,294 |
|
|
491,698 |
|
|
491,065 |
|
| Residential Real Estate |
|
194,059 |
|
|
197,281 |
|
|
175,099 |
|
| Installment and Other |
|
6,685 |
|
|
6,577 |
|
|
9,665 |
|
| Total Loans Receivable |
|
2,572,659 |
|
|
2,579,641 |
|
|
2,477,726 |
|
| Allowance for Credit Losses |
|
(28,335 |
) |
|
(28,460 |
) |
|
(26,073 |
) |
| Loans Receivable, Net |
|
2,544,324 |
|
|
2,551,181 |
|
|
2,451,653 |
|
| Furniture, Equipment and Leasehold Improvements, Net |
|
4,380 |
|
|
4,589 |
|
|
5,334 |
|
| Bank/Corporate Owned Life Insurance |
|
29,185 |
|
|
28,898 |
|
|
27,863 |
|
| Other Assets |
|
79,639 |
|
|
79,582 |
|
|
73,047 |
|
| Total Assets | $ |
3,876,175 |
|
$ |
3,902,724 |
|
$ |
3,879,119 |
|
| Liabilities: | |||||||||
| Non-Interest Bearing Demand Deposits | $ |
1,601,795 |
|
$ |
1,699,560 |
|
$ |
1,708,750 |
|
| Interest Bearing Transaction Accounts |
|
367,903 |
|
|
388,152 |
|
|
276,059 |
|
| Money Market and Savings Deposits |
|
1,083,008 |
|
|
1,145,389 |
|
|
997,720 |
|
| Certificates of Deposit |
|
256,309 |
|
|
264,312 |
|
|
93,624 |
|
| Total Deposits |
|
3,309,015 |
|
|
3,497,413 |
|
|
3,076,153 |
|
| Federal Home Loan Bank Advances / Other Borrowings |
|
210,000 |
|
|
55,000 |
|
|
486,000 |
|
| Other Liabilities |
|
41,186 |
|
|
36,257 |
|
|
37,285 |
|
| Total Liabilities | $ |
3,560,201 |
|
$ |
3,588,670 |
|
$ |
3,599,438 |
|
| Shareholders' Equity: | |||||||||
| Common Stock | $ |
208,336 |
|
$ |
208,048 |
|
$ |
205,791 |
|
| Retained Earnings |
|
187,243 |
|
|
176,747 |
|
|
145,865 |
|
| Accumulated Other Comprehensive Income / (Loss) |
|
(79,605 |
) |
|
(70,741 |
) |
|
(71,975 |
) |
| Total Shareholders' Equity | $ |
315,974 |
|
$ |
314,054 |
|
$ |
279,681 |
|
| Total Liabilities and Shareholders' Equity | $ |
3,876,175 |
|
$ |
3,902,724 |
|
$ |
3,879,119 |
|
| Standby Letters of Credit | $ |
43,810 |
|
$ |
43,178 |
|
$ |
40,641 |
|
| Per Share Information: | |||||||||
| Common Shares Outstanding |
|
9,078,782 |
|
|
9,041,911 |
|
|
8,998,695 |
|
| Book Value Per Share | $ |
34.80 |
|
$ |
34.73 |
|
$ |
31.08 |
|
| Tangible Book Value Per Share | $ |
34.80 |
|
$ |
34.73 |
|
$ |
31.08 |
|
| American Business Bank | |||||||||
| Figures in $000, except share and per share amounts | |||||||||
| INCOME STATEMENTS (unaudited) | |||||||||
| For the three months ended: | |||||||||
| March | December | March | |||||||
|
2024 |
|
|
2023 |
|
|
2023 |
|
|
| Interest Income: | |||||||||
| Interest and Fees on Loans | $ |
33,664 |
|
$ |
33,185 |
|
$ |
29,743 |
|
| Interest on Investment Securities |
|
7,658 |
|
|
7,794 |
|
|
7,861 |
|
| Interest on Interest Earning Deposits | |||||||||
| in Other Financial Institutions |
|
250 |
|
|
623 |
|
|
208 |
|
| Total Interest Income |
|
41,572 |
|
|
41,602 |
|
|
37,812 |
|
| Interest Expense: | |||||||||
| Interest on Interest Bearing Transaction Accounts |
|
1,002 |
|
|
1,011 |
|
|
231 |
|
| Interest on Money Market and Savings Deposits |
|
7,265 |
|
|
7,027 |
|
|
2,230 |
|
| Interest on Certificates of Deposits |
|
2,288 |
|
|
2,443 |
|
|
267 |
|
| Interest on Federal Home Loan Bank Advances | |||||||||
| and Other Borrowings |
|
1,598 |
|
|
171 |
|
|
3,086 |
|
| Total Interest Expense |
|
12,153 |
|
|
10,652 |
|
|
5,814 |
|
| Net Interest Income |
|
29,419 |
|
|
30,950 |
|
|
31,998 |
|
| Provision for Credit Losses |
|
212 |
|
|
559 |
|
|
463 |
|
| Net Interest Income after Provision for Credit Losses |
|
29,207 |
|
|
30,391 |
|
|
31,535 |
|
| Non-Interest Income: | |||||||||
| Deposit Fees |
|
988 |
|
|
941 |
|
|
1,023 |
|
| International Fees |
|
406 |
|
|
419 |
|
|
269 |
|
| Gain (Loss) on Sale of Investment Securities, Net |
|
(110 |
) |
|
(418 |
) |
|
(211 |
) |
| Gain on Sale of SBA Loans, Net |
|
57 |
|
|
- |
|
|
611 |
|
| Bank/Corporate Owned Life Insurance Income (Expense) |
|
287 |
|
|
498 |
|
|
195 |
|
| Other |
|
487 |
|
|
494 |
|
|
706 |
|
| Total Non-Interest Income |
|
2,115 |
|
|
1,934 |
|
|
2,593 |
|
| Non-Interest Expense: | |||||||||
| Salaries and Employee Benefits |
|
11,649 |
|
|
11,182 |
|
|
11,338 |
|
| Occupancy and Equipment |
|
1,209 |
|
|
1,207 |
|
|
1,192 |
|
| Professional Services |
|
1,963 |
|
|
2,084 |
|
|
1,919 |
|
| Promotion Expenses |
|
528 |
|
|
708 |
|
|
441 |
|
| Other |
|
1,424 |
|
|
1,444 |
|
|
1,281 |
|
| Total Non-Interest Expense |
|
16,773 |
|
|
16,625 |
|
|
16,171 |
|
| Earnings before income taxes |
|
14,549 |
|
|
15,700 |
|
|
17,957 |
|
| Income Tax Expense |
|
4,052 |
|
|
4,326 |
|
|
4,872 |
|
| NET INCOME | $ |
10,497 |
|
$ |
11,374 |
|
$ |
13,085 |
|
| Per Share Information: | |||||||||
| Earnings Per Share - Basic | $ |
1.14 |
|
$ |
1.23 |
|
$ |
1.43 |
|
| Earnings Per Share - Diluted | $ |
1.13 |
|
$ |
1.23 |
|
$ |
1.42 |
|
| Weighted Average Shares - Basic |
|
9,237,317 |
|
|
9,221,219 |
|
|
9,153,915 |
|
| Weighted Average Shares - Diluted |
|
9,293,818 |
|
|
9,264,224 |
|
|
9,228,602 |
|
| American Business Bank | |||||||||||||
| Figures in $000 | |||||||||||||
| QUARTERLY AVERAGE BALANCE SHEETS AND YIELD ANALYSIS (unaudited) | |||||||||||||
| For the three months ended: | |||||||||||||
| March 2024 | December 2023 | ||||||||||||
| Average | Interest | Average | Average | Interest | Average | ||||||||
| Balance | Inc/Exp | Yield/Rate | Balance | Inc/Exp | Yield/Rate | ||||||||
| Interest Earning Assets: | |||||||||||||
| Interest Earning Deposits in Other Financial Institutions | $ |
19,252 |
$ |
250 |
5.23 |
% |
$ |
46,030 |
$ |
623 |
5.37 |
% |
|
| Investment Securities: | |||||||||||||
| US Agencies |
|
89,024 |
|
1,285 |
5.77 |
% |
|
94,837 |
|
1,327 |
5.60 |
% |
|
| Mortgage Backed Securities |
|
674,033 |
|
3,199 |
1.90 |
% |
|
684,903 |
|
3,246 |
1.90 |
% |
|
| State and Municipals |
|
485,036 |
|
2,656 |
2.19 |
% |
|
493,806 |
|
2,720 |
2.20 |
% |
|
| Corporate Bonds |
|
16,250 |
|
188 |
4.64 |
% |
|
16,250 |
|
189 |
4.64 |
% |
|
| Securities Available-for-Sale and Held-to-Maturity |
|
1,264,343 |
|
7,328 |
2.32 |
% |
|
1,289,796 |
|
7,482 |
2.32 |
% |
|
| Federal Home Loan Bank Stock |
|
15,000 |
|
330 |
8.79 |
% |
|
15,000 |
|
312 |
8.32 |
% |
|
| Total Investment Securities |
|
1,279,343 |
|
7,658 |
2.39 |
% |
|
1,304,796 |
|
7,794 |
2.39 |
% |
|
| Loans Receivable: | |||||||||||||
| Commercial Real Estate |
|
1,878,384 |
|
22,817 |
4.89 |
% |
|
1,853,087 |
|
22,354 |
4.79 |
% |
|
| Commercial and Industrial |
|
471,147 |
|
7,740 |
6.61 |
% |
|
479,580 |
|
7,853 |
6.50 |
% |
|
| Residential Real Estate |
|
196,176 |
|
3,044 |
6.24 |
% |
|
187,505 |
|
2,916 |
6.17 |
% |
|
| Installment and Other |
|
9,235 |
|
63 |
2.74 |
% |
|
9,250 |
|
62 |
2.64 |
% |
|
| Total Loans Receivable |
|
2,554,942 |
|
33,664 |
5.30 |
% |
|
2,529,422 |
|
33,185 |
5.21 |
% |
|
| Total Interest Earning Assets | $ |
3,853,537 |
$ |
41,572 |
4.27 |
% |
$ |
3,880,248 |
$ |
41,602 |
4.20 |
% |
|
| Liabilities: | |||||||||||||
| Non-Interest Bearing Demand Deposits |
|
1,647,928 |
|
- |
0.00 |
% |
|
1,799,457 |
|
- |
0.00 |
% |
|
| Interest Bearing Transaction Accounts |
|
382,086 |
|
1,002 |
1.05 |
% |
|
372,990 |
|
1,011 |
1.08 |
% |
|
| Money Market and Savings Deposits |
|
1,125,101 |
|
7,265 |
2.60 |
% |
|
1,120,271 |
|
7,027 |
2.49 |
% |
|
| Certificates of Deposit |
|
255,490 |
|
2,288 |
3.60 |
% |
|
266,120 |
|
2,443 |
3.64 |
% |
|
| Total Deposits |
|
3,410,605 |
|
10,555 |
1.24 |
% |
|
3,558,838 |
|
10,481 |
1.17 |
% |
|
| Federal Home Loan Bank Advances / Other Borrowings |
|
123,022 |
|
1,598 |
5.22 |
% |
|
11,848 |
|
171 |
5.72 |
% |
|
| Total Interest Bearing Deposits and Borrowings |
|
1,885,699 |
|
12,153 |
2.59 |
% |
|
1,771,229 |
|
10,652 |
2.39 |
% |
|
| Total Deposits and Borrowings | $ |
3,533,627 |
$ |
12,153 |
1.38 |
% |
$ |
3,570,686 |
$ |
10,652 |
1.18 |
% |
|
| Net Interest Income | $ |
29,419 |
$ |
30,950 |
|||||||||
| Net Interest Rate Spread | 2.89 |
% |
3.02 |
% |
|||||||||
| Net Interest Margin | 3.07 |
% |
3.16 |
% |
|||||||||
| American Business Bank | |||||||||||||
| Figures in $000 | |||||||||||||
| QUARTERLY AVERAGE BALANCE SHEETS AND YIELD ANALYSIS (unaudited) | |||||||||||||
| For the three months ended: | |||||||||||||
| March 2024 | March 2023 | ||||||||||||
| Average | Interest | Average | Average | Interest | Average | ||||||||
| Balance | Inc/Exp | Yield/Rate | Balance | Inc/Exp | Yield/Rate | ||||||||
| Interest Earning Assets: | |||||||||||||
| Interest Earning Deposits in Other Financial Institutions | $ |
19,252 |
$ |
250 |
5.23 |
% |
$ |
18,945 |
$ |
208 |
4.45 |
% |
|
| Investment Securities: | |||||||||||||
| US Agencies |
|
89,024 |
|
1,285 |
5.77 |
% |
|
118,463 |
|
1,203 |
4.06 |
% |
|
| Mortgage Backed Securities |
|
674,033 |
|
3,199 |
1.90 |
% |
|
719,422 |
|
3,417 |
1.90 |
% |
|
| State and Municipals |
|
485,036 |
|
2,656 |
2.19 |
% |
|
505,910 |
|
2,792 |
2.21 |
% |
|
| Corporate Bonds |
|
16,250 |
|
188 |
4.64 |
% |
|
16,250 |
|
184 |
4.52 |
% |
|
| Securities Available-for-Sale and Held-to-Maturity |
|
1,264,343 |
|
7,328 |
2.32 |
% |
|
1,360,045 |
|
7,596 |
2.23 |
% |
|
| Federal Home Loan Bank Stock |
|
15,000 |
|
330 |
8.79 |
% |
|
15,000 |
|
265 |
7.07 |
% |
|
| Total Investment Securities |
|
1,279,343 |
|
7,658 |
2.39 |
% |
|
1,375,045 |
|
7,861 |
2.29 |
% |
|
| Loans Receivable: | |||||||||||||
| Commercial Real Estate |
|
1,878,384 |
|
22,817 |
4.89 |
% |
|
1,757,142 |
|
19,630 |
4.53 |
% |
|
| Commercial and Industrial |
|
471,147 |
|
7,740 |
6.61 |
% |
|
509,396 |
|
7,587 |
6.04 |
% |
|
| Residential Real Estate |
|
196,176 |
|
3,044 |
6.24 |
% |
|
175,030 |
|
2,440 |
5.65 |
% |
|
| Installment and Other |
|
9,235 |
|
63 |
2.74 |
% |
|
7,475 |
|
86 |
4.65 |
% |
|
| Total Loans Receivable |
|
2,554,942 |
|
33,664 |
5.30 |
% |
|
2,449,043 |
|
29,743 |
4.93 |
% |
|
| Total Interest Earning Assets | $ |
3,853,537 |
$ |
41,572 |
4.27 |
% |
$ |
3,843,033 |
$ |
37,812 |
3.94 |
% |
|
| Liabilities: | |||||||||||||
| Non-Interest Bearing Demand Deposits |
|
1,647,928 |
|
- |
0.00 |
% |
|
1,832,495 |
|
- |
0.00 |
% |
|
| Interest Bearing Transaction Accounts |
|
382,086 |
|
1,002 |
1.05 |
% |
|
285,939 |
|
231 |
0.33 |
% |
|
| Money Market and Savings Deposits |
|
1,125,101 |
|
7,265 |
2.60 |
% |
|
1,133,697 |
|
2,230 |
0.80 |
% |
|
| Certificates of Deposit |
|
255,490 |
|
2,288 |
3.60 |
% |
|
64,162 |
|
267 |
1.69 |
% |
|
| Total Deposits |
|
3,410,605 |
|
10,555 |
1.24 |
% |
|
3,316,293 |
|
2,728 |
0.33 |
% |
|
| Federal Home Loan Bank Advances / Other Borrowings |
|
123,022 |
|
1,598 |
5.22 |
% |
|
257,711 |
|
3,086 |
4.86 |
% |
|
| Total Interest Bearing Deposits and Borrowings |
|
1,885,699 |
|
12,153 |
2.59 |
% |
|
1,741,509 |
|
5,814 |
1.35 |
% |
|
| Total Deposits and Borrowings | $ |
3,533,627 |
$ |
12,153 |
1.38 |
% |
$ |
3,574,003 |
$ |
5,814 |
0.66 |
% |
|
| Net Interest Income | $ |
29,419 |
$ |
31,998 |
|||||||||
| Net Interest Rate Spread | 2.89 |
% |
3.28 |
% |
|||||||||
| Net Interest Margin | 3.07 |
% |
3.38 |
% |
|||||||||
| American Business Bank | |||||||||
| Figures in $000 | |||||||||
| SUPPLEMENTAL DATA (unaudited) | |||||||||
| March | December | March | |||||||
|
2024 |
|
|
2023 |
|
|
2023 |
|
|
| Performance Ratios: | |||||||||
| Quarterly: | |||||||||
| Return on Average Assets (ROAA) |
|
1.08 |
% |
|
1.17 |
% |
|
1.35 |
% |
| Return on Average Equity (ROAE) |
|
13.42 |
% |
|
16.05 |
% |
|
19.54 |
% |
| Efficiency Ratio |
|
54.39 |
% |
|
48.45 |
% |
|
46.90 |
% |
| Year-to-Date | |||||||||
| Return on Average Assets (ROAA) |
|
1.08 |
% |
|
1.13 |
% |
|
1.35 |
% |
| Return on Average Equity (ROAE) |
|
13.42 |
% |
|
15.70 |
% |
|
19.54 |
% |
| Efficiency Ratio |
|
54.39 |
% |
|
50.82 |
% |
|
46.90 |
% |
| Capital Adequacy: | |||||||||
| Total Risk Based Capital Ratio |
|
12.62 |
% |
|
12.37 |
% |
|
12.56 |
% |
| Common Equity Tier 1 Capital Ratio |
|
11.72 |
% |
|
11.47 |
% |
|
11.65 |
% |
| Tier 1 Risk Based Capital Ratio |
|
11.72 |
% |
|
11.47 |
% |
|
11.65 |
% |
| Tier 1 Leverage Ratio |
|
9.99 |
% |
|
9.64 |
% |
|
8.90 |
% |
| Tangible Common Equity / Tangible Assets |
|
8.15 |
% |
|
8.05 |
% |
|
7.21 |
% |
| Asset Quality Overview | |||||||||
| Non-Performing Loans | $ |
7,440 |
|
$ |
7,859 |
|
$ |
6,000 |
|
| Loans 90+ Days Past Due and Still Accruing |
|
- |
|
|
- |
|
|
- |
|
| Total Non-Performing Loans |
|
7,440 |
|
|
7,859 |
|
|
6,000 |
|
| Loans Modified with Financial Difficulty | $ |
229 |
|
$ |
231 |
|
$ |
- |
|
| Other Real Estate Owned |
|
- |
|
|
- |
|
|
- |
|
| ACL / Loans Receivable |
|
1.10 |
% |
|
1.10 |
% |
|
1.05 |
% |
| Non-Performing Loans / Total Loans Receivable |
|
0.29 |
% |
|
0.30 |
% |
|
0.24 |
% |
| Non-Performing Assets / Total Assets |
|
0.19 |
% |
|
0.20 |
% |
|
0.15 |
% |
| Net Charge-Offs (Recoveries) quarterly | $ |
(101 |
) |
$ |
190 |
|
$ |
(10 |
) |
| Net Charge-Offs (Recoveries) year-to-date | $ |
(101 |
) |
$ |
344 |
|
$ |
(10 |
) |
| Net Charge-Offs (Recoveries) year-to-date / Average Loans Receivable |
|
(0.00 |
%) |
|
0.01 |
% |
|
(0.00 |
%) |
