Le Lézard
Classified in: Business, Covid-19 virus
Subject: EARNINGS

Record Net Income From Robust SBA PPP Program


AMERICAN BUSINESS BANK (OTCQX: AMBZ) today reported net income of $7.9 million or $0.97 per fully diluted share for the third quarter of 2020 compared to $5.4 million or $0.67 per fully diluted share for the third quarter of 2019 primarily due to increased net interest income as a result of PPP loans outstanding during the quarter.

"While the pandemic creates near-term uncertainty, we are more confident for the future based upon the general return to profitability of our outstanding customer base during the quarter. Our business development efforts have also been successful as prospects heard of our significant participation in the PPP program resulting in loan and deposit growth this quarter and a solid pipeline of new relationships. While we are watching credit quality closely, the vast majority of our portfolio is well managed by our competent business owners who are taking the necessary steps as needed to generate positive returns in this challenging time. Thus, we anticipate continued strong credit metrics reflective of our prudent approach in the evaluation of clients and prospects.

"We remain committed to supporting the needs of our business community, as well as providing for the safety of our employees who continue to provide the same excellent responsiveness to customers despite the changed environment. Additionally, we are assisting our clients with a highly regarded accounting firm to ensure they meet the SBA requirements to maximize PPP loan forgiveness. As PPP loans payoff, the Bank stands to earn a noteworthy amount of fees to offset the effects of the unprecedented low interest rate environment," said Leon Blankstein, ABB's President, CEO and Director.

For the quarter ending September 30, 2020, net income was $7.9 million or $0.97 per fully diluted share, compared to net income of $6.7 million or $0.83 per fully diluted share for the second quarter of 2020. Net interest income for the third quarter was $23.4 million, a 7% increase over the second quarter of 2020 as interest and net deferred fee amortization on PPP loans increased by $843,000. This was partially offset by lower rates on non-PPP loans. For the quarter ending September 30, 2020, the cost of deposits was 0.07%, representing a 0.01% decline from the second quarter of 2020. Additionally, interest income on the securities portfolio increased by $1 million in the third quarter of 2020 compared to the second quarter of 2020 as excess liquidity was deployed into investment securities during the quarter. For the quarter ending September 30, 2020, the provision for loan losses was $450,000. The allowance for loan losses as a percentage of loans, excluding PPP loans, was 1.54% at September 30, 2020 and June 30, 2020.

Net income was $19.4 million or $2.40 per fully diluted share for the nine months ended September 30, 2020, compared to $16.1 million or $1.99 per fully diluted share for the nine months ended September 30, 2019. The increase was primarily due to loan growth of 52% between periods, partially offset by a lower interest earning asset yield resulting in increased net interest income.

Net Interest Margin

Net interest margin for the third quarter of 2020 was 2.89% compared to 2.88% for the second quarter of 2020 and 3.66% for the third quarter of 2019. Excluding the impact of PPP loans, the net interest margin was 3.06% for the third quarter of 2020 and 3.02% for the second quarter of 2020. The reduction in the net interest margin compared to the prior year is due to lower market interest rates and the impact of PPP loans. As of September 30, 2020, approximately 42% of the Bank's variable-rate loans are indexed to prime and 71% of these loans are at or above interest rate floors.

Net Interest Income

Net interest income increased for the third quarter of 2020 compared to the third quarter of 2019 by $3.1 million, or 15.5%, and compared to the second quarter of 2020 by $1.6 million, or 7.4%. This was primarily due to an increase in average outstanding loans offset by lower yields on loans for the periods compared. Included in interest income for the third quarter of 2020 is the accretion of net deferred processing PPP loan fees of $2.1 million compared to $1.5 million in the second quarter of 2020. The Bank's core funding continues to be a strength with the cost of deposits at 0.07% for the third quarter of 2020 compared to 0.24% for same period a year ago.

On a year-to-date basis, net interest income was $65.1 million for the nine months ended September 30, 2020, compared to $58.1 million for the same period a year ago. The 12% increase was primarily due to significant loan growth between periods, partially offset by a lower net interest margin.

Non Interest Income

Non-interest income in the third quarter of 2020 was $1.4 million, representing a decrease of $362,000 or 20% compared to the second quarter of 2020 and an increase of $101,000, or 8% from the quarter a year ago. This was primarily due to a change in Bank/Corporate owned life insurance income, which is driven by the increase/decrease in the value of the policies that are invested in mutual funds.

On a year-to-date basis, Deposit Fees increased $334,000 from the period a year ago due to growth in commercial business customers and lower earnings credit. Non-interest income decreased as a result of a decline in gains on sale of SBA loans. Since mid-2019, the Bank has added most SBA loan originations to its loan portfolio. For the second and third quarter of 2020, International Fees declined due to the impact of the pandemic.

Non Interest Expense

Non-interest expense increased $929,000 for the quarter ended September 30, 2020 compared to the same quarter a year ago. The increase was primarily due to a $1 million increase in salaries and employee benefits. This is due to higher expenses related to the deferred compensation plan (DCP) as a result of the market performance of DCP investment balances, higher base salaries, and $117,000 of severance costs associated with a reduction in work force near the end of the third quarter. The efficiency ratio declined to 55% for the third quarter of 2020 compared to 59% for the third quarter of 2019.

For the third quarter of 2020, total non-interest expense decreased $287,000 compared to the second quarter of 2020. For the quarter, other non-interest expense declined $376,000 primarily due to a reduction in the reserve for off balance sheet commitments of $705,000. This was offset by an increase in the FDIC assessment of $291,000 associated with increased assets. The efficiency ratio declined to 55% for the third quarter of 2020 compared to 59% for the second quarter of 2020.

For the nine months ending September 30, 2020, total non-interest expense increased $1.6 million or 4% compared to the same period a year ago, primarily due to increased salaries and employee benefits, and other expense. The efficiency ratio was 57% and 61% for the nine months ended September 30, 2020 and 2019, respectively.

Full time equivalent employees at September 30, 2020 were 193 compared to 195 a year ago, and the same as June 30, 2020. For 2020, the average number of fulltime equivalent employees has increased by four. The Bank has 32 relationship managers in seven offices, an increase over year end and the prior quarter.

Balance Sheet

From December 31, 2019 to September 30, 2020, total assets increased $919 million, or 38%, to $3.3 billion, with 75% of the increase attributable to PPP loan originations. Total loans, excluding PPP loans, increased $281,000, to $1.49 billion from year-end as C&I line utilization declined significantly. At September 30, 2020 and June 30, 2020 the utilization rate for the Bank's commercial lines of credit was 27% compared to 35% at December 31, 2019.

The Bank purchased $186 million of municipal and U.S. Agency mortgage-backed securities during the third quarter with an estimated weighted average yield of 1.74%. The duration of the securities portfolio increased from 2.3 to 2.8 years from September 30, 2019 to September 30, 2020.

During the first nine months of 2020, total deposits grew by $884 million with a majority of the increase attributable to the proceeds of PPP loans. This increase was also due to new deposit relationships of approximately $200 million and existing customers maintaining higher liquidity as the economy slowed. At September 30, 2020, the tangible common equity ratio was 7.11%; excluding PPP loans, the tangible common equity ratio was 8.95%.

Asset Quality

At June 30, 2020 and September 30, 2020 non-performing assets totaled $2.8 million, representing 0.11% of total assets (excluding PPP loans) at September 30, 2020. The Bank continues to have no Other Real Estate Owned. Excluding PPP loans, loans that were past due, criticized and classifieds represented 0.07%, 8.56%, and 1.32%, respectively of total loans at September 30, 2020 compared to 0.26%, 6.55% and 1.22%, respectively of total loans at June 30, 2020. As of September 30, 2020, the allowance for loan losses stood at $22.9 million, or 1.54% of total loans (excluding PPP loans); compared to 1.4% at December 31, 2019. 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. For the first nine months of 2020, the Bank recorded a total of $478,000 in net charge-offs on two commercial loans, representing annualized net charge offs of 0.03%. The Bank had no charge-offs in the third quarter of 2020.

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 September 30, 2020, there were six loans with a total principal balance of $19.8 million (0.9% of total loans) on a loan payment deferment program of which $7.8 million of loans previously granted a deferral received a second modification. At the time of origination, the loans currently granted deferrals were underwritten with a 56% average loan-to-value ratio. These loans are all backed by commercial real estate of which 79% are owner occupied. All payment deferrals granted to-date meet applicable requirements to continue accruing interest. As of September 30, 2020, 79% of clients whose first deferral concluded during the quarter resumed their scheduled 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. The COVID-19 pandemic is adversely affecting the national economy; the ultimate length and severity of its impact on the Bank's customers are uncertain. 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)
 
 
 

September

June

December

September

2020

2020

2019

2019

Assets:
Cash and Due from Banks

$

69,786

 

$

68,072

 

$

31,673

 

$

88,211

 

Interest Earning Deposits in Other Financial Institutions

 

64,660

 

 

232,770

 

 

45,202

 

 

26,077

 

 
Investment Securities:
US Agencies

 

230,637

 

 

240,012

 

 

284,032

 

 

305,572

 

Mortgage Backed Securities

 

359,974

 

 

313,119

 

 

292,126

 

 

226,338

 

State and Municipals

 

243,933

 

 

133,128

 

 

78,520

 

 

74,824

 

US Treasuries

 

10,044

 

 

10,081

 

 

10,009

 

 

9,992

 

Corporate Bonds

 

12,480

 

 

19,502

 

 

19,805

 

 

19,861

 

Securities Available-for-Sale, at Fair Value

 

857,068

 

 

715,842

 

 

684,492

 

 

636,587

 

State and Municipals Securities Held-to-Maturity, at Amortized Cost

 

91,717

 

 

86,289

 

 

86,707

 

 

86,915

 

Federal Home Loan Bank Stock, at Cost

 

10,864

 

 

10,864

 

 

10,356

 

 

10,356

 

Total Investment Securities

 

959,649

 

 

812,995

 

 

781,555

 

 

733,858

 

Loans Receivable:
Commercial Real Estate

 

1,047,100

 

 

1,007,655

 

 

982,070

 

 

954,424

 

Commercial and Industrial

 

362,258

 

 

370,786

 

 

423,868

 

 

402,167

 

SBA Payroll Protection Program

 

688,336

 

 

675,666

 

 

-

 

 

-

 

Residential Real Estate

 

74,170

 

 

71,112

 

 

76,481

 

 

68,259

 

Installment and Other

 

4,131

 

 

6,039

 

 

4,959

 

 

4,765

 

Total Loans Receivable

 

2,175,995

 

 

2,131,258

 

 

1,487,378

 

 

1,429,615

 

Allowance for Loan Losses

 

(22,910

)

 

(22,399

)

 

(20,824

)

 

(20,014

)

Loans Receivable, Net

 

2,153,085

 

 

2,108,859

 

 

1,466,554

 

 

1,409,601

 

Furniture, Equipment and Leasehold Improvements, Net

 

8,145

 

 

8,520

 

 

9,023

 

 

8,700

 

Bank/Corporate Owned Life Insurance

 

27,013

 

 

26,651

 

 

26,448

 

 

26,110

 

Other Assets

 

39,041

 

 

37,396

 

 

41,456

 

 

39,087

 

Total Assets

$

3,321,379

 

$

3,295,263

 

$

2,401,911

 

$

2,331,644

 

 
Liabilities:
Non-Interest Bearing Demand Deposits

$

1,658,673

 

$

1,684,662

 

$

1,083,705

 

$

1,084,152

 

Interest Bearing Transaction Accounts

 

228,585

 

 

204,133

 

 

215,730

 

 

221,196

 

Money Market and Savings Deposits

 

1,124,329

 

 

1,100,191

 

 

827,713

 

 

751,415

 

Certificates of Deposit

 

36,981

 

 

35,713

 

 

37,712

 

 

42,555

 

Total Deposits

 

3,048,568

 

 

3,024,699

 

 

2,164,860

 

 

2,099,318

 

Federal Home Loan Bank Advances / Other Borrowings

 

-

 

 

-

 

 

-

 

 

-

 

Other Liabilities

 

36,822

 

 

43,206

 

 

30,386

 

 

31,258

 

Total Liabilities

$

3,085,390

 

$

3,067,905

 

$

2,195,246

 

$

2,130,576

 

 
Shareholders' Equity:
Common Stock

$

165,789

 

$

165,032

 

$

163,872

 

$

163,464

 

Retained Earnings

 

66,233

 

 

58,359

 

 

46,784

 

 

40,795

 

Accumulated Other Comprehensive Income / (Loss)

 

3,967

 

 

3,967

 

 

(3,991

)

 

(3,191

)

Total Shareholders' Equity

$

235,989

 

$

227,358

 

$

206,665

 

$

201,068

 

Total Liabilities and Shareholders' Equity

$

3,321,379

 

$

3,295,263

 

$

2,401,911

 

$

2,331,644

 

 
Standby Letters of Credit

$

35,131

 

$

37,259

 

$

39,513

 

$

39,722

 

 
Per Share Information:
Common Shares Outstanding

 

7,926,833

 

 

7,904,105

 

 

7,850,171

 

 

7,834,279

 

Book Value Per Share

$

29.77

 

$

28.76

 

$

26.33

 

$

25.67

 

Tangible Book Value Per Share

$

29.77

 

$

28.76

 

$

26.33

 

$

25.67

 

 
American Business Bank
Figures in $000, except share and per share amounts
 
INCOME STATEMENTS (unaudited)
 
 
For the three months ended:
September June September

2020

2020

2019

Interest Income:
Interest and Fees on Loans

$

19,793

 

$

19,169

 

$

16,890

 

Interest on Investment Securities

 

4,048

 

 

3,084

 

 

4,260

 

Interest on Interest Earning Deposits
in Other Financial Institutions

 

71

 

 

93

 

 

332

 

Total Interest Income

 

23,912

 

 

22,346

 

 

21,482

 

 
Interest Expense:
Interest on Interest Bearing Transaction Accounts

 

41

 

 

37

 

 

152

 

Interest on Money Market and Savings Deposits

 

499

 

 

538

 

 

1,041

 

Interest on Certificates of Deposits

 

21

 

 

28

 

 

73

 

Interest on Federal Home Loan Bank Advances
and Other Borrowings

 

-

 

 

-

 

 

1

 

Total Interest Expense

 

561

 

 

603

 

 

1,267

 

 
Net Interest Income

 

23,351

 

 

21,743

 

 

20,215

 

Provision for Loan Losses

 

450

 

 

680

 

 

1,460

 

Net Interest Income after Provision for Loan Losses

 

22,901

 

 

21,063

 

 

18,755

 

 
Non-Interest Income:
Deposit Fees

 

677

 

 

640

 

 

553

 

International Fees

 

237

 

 

244

 

 

328

 

Gain (Loss) on Sale of Investment Securities, Net

 

(32

)

 

(184

)

 

(122

)

Gain on Sale of SBA Loans, Net

 

-

 

 

-

 

 

87

 

Bank/Corporate Owned Life Insurance Income (Expense)

 

361

 

 

953

 

 

135

 

Other

 

191

 

 

143

 

 

352

 

Total Non-Interest Income

 

1,434

 

 

1,796

 

 

1,333

 

 
Non-Interest Expense:
Salaries and Employee Benefits

 

9,494

 

 

9,384

 

 

8,444

 

Occupancy and Equipment

 

966

 

 

953

 

 

888

 

Professional Services

 

1,663

 

 

1,627

 

 

1,946

 

Promotion Expenses

 

197

 

 

267

 

 

361

 

Other

 

1,317

 

 

1,693

 

 

1,069

 

Total Non-Interest Expense

 

13,637

 

 

13,924

 

 

12,708

 

 
Earnings before income taxes

 

10,698

 

 

8,935

 

 

7,380

 

Income Tax Expense

 

2,824

 

 

2,200

 

 

1,963

 

 
NET INCOME

$

7,874

 

$

6,735

 

$

5,417

 

Add back:
After-Tax Gain (Loss) on Sale of Investment Securities, Net

$

23

 

$

139

 

$

90

 

After-Tax DCP ABB Stock Expense (Benefit)

$

-

 

$

-

 

$

-

 

Core Net Income

$

7,897

 

$

6,874

 

$

5,507

 

 
Per Share Information:
Earnings Per Share - Basic

$

0.98

 

$

0.84

 

$

0.68

 

 
Earnings Per Share - Diluted

$

0.97

 

$

0.83

 

$

0.67

 

Core Earnings Per Share - Diluted

$

0.97

 

$

0.85

 

$

0.68

 

 
Weighted Average Shares - Basic

 

8,070,598

 

 

8,046,122

 

 

7,999,146

 

 
Weighted Average Shares - Diluted

 

8,109,487

 

 

8,097,354

 

 

8,100,992

 

 
American Business Bank
Figures in $000, except share and per share amounts
 
INCOME STATEMENTS (unaudited)
 
 
For the nine months ended:
September September

2020

2019

Interest Income:
Interest and Fees on Loans

$

56,257

 

$

47,813

 

Interest on Investment Securities

 

11,045

 

 

12,678

 

Interest on Interest Earning Deposits
in Other Financial Institutions

 

217

 

 

1,098

 

Total Interest Income

 

67,519

 

 

61,589

 

 
Interest Expense:
Interest on Interest Bearing Transaction Accounts

 

182

 

 

363

 

Interest on Money Market and Savings Deposits

 

2,004

 

 

2,804

 

Interest on Certificates of Deposits

 

90

 

 

293

 

Interest on Federal Home Loan Bank Advances
and Other Borrowings

 

131

 

 

15

 

Total Interest Expense

 

2,407

 

 

3,475

 

 
Net Interest Income

 

65,112

 

 

58,114

 

Provision for Loan Losses

 

2,564

 

 

2,478

 

Net Interest Income after Provision for Loan Losses

 

62,548

 

 

55,636

 

 
Non-Interest Income:
Deposit Fees

 

1,932

 

 

1,598

 

International Fees

 

763

 

 

841

 

Gain (Loss) on Sale of Investment Securities, Net

 

(168

)

 

(267

)

Gain on Sale of SBA Loans, Net

 

19

 

 

327

 

Bank/Corporate Owned Life Insurance Income (Expense)

 

564

 

 

782

 

Other

 

532

 

 

866

 

Total Non-Interest Income

 

3,642

 

 

4,147

 

 
Non-Interest Expense:
Salaries and Employee Benefits

 

27,097

 

 

26,461

 

Occupancy and Equipment

 

2,839

 

 

2,956

 

Professional Services

 

4,772

 

 

4,340

 

Promotion Expenses

 

830

 

 

946

 

Other

 

4,070

 

 

3,324

 

Total Non-Interest Expense

 

39,608

 

 

38,027

 

 
Earnings before income taxes

 

26,582

 

 

21,756

 

Income Tax Expense

 

7,134

 

 

5,668

 

 
NET INCOME

$

19,448

 

$

16,088

 

Add back:
After-Tax Gain (Loss) on Sale of Investment Securities, Net

$

123

 

$

198

 

After-Tax DCP ABB Stock Expense (Benefit)

$

-

 

$

449

 

Core Net Income

$

19,571

 

$

16,735

 

 
Per Share Information:
Earnings Per Share - Basic

$

2.42

 

$

2.02

 

 
Earnings Per Share - Diluted

$

2.40

 

$

1.99

 

Core Earnings Per Share - Diluted

$

2.41

 

$

2.07

 

 
Weighted Average Shares - Basic

 

8,050,992

 

 

7,948,632

 

 
Weighted Average Shares - Diluted

 

8,109,732

 

 

8,078,529

 

 
American Business Bank
Figures in $000
 
QUARTERLY AVERAGE BALANCE SHEETS AND YIELD ANALYSIS (unaudited)
 
 
For the three months ended:
September 2020 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

$

191,948

$

71

0.15

%

$

264,722

$

93

0.14

%

 
Investment Securities:
US Agencies

 

237,419

 

429

0.72

%

 

260,033

 

270

0.41

%

Mortgage Backed Securities

 

325,904

 

1,541

1.89

%

 

271,173

 

1,434

2.12

%

State and Municipals

 

271,133

 

1,700

2.51

%

 

174,950

 

1,196

2.73

%

US Treasuries

 

10,011

 

37

1.46

%

 

10,018

 

37

1.48

%

Corporate Bonds

 

16,479

 

126

3.07

%

 

19,908

 

147

2.95

%

Securities Available-for-Sale and Held-to-Maturity

 

860,946

 

3,833

1.78

%

 

736,082

 

3,084

1.68

%

Federal Home Loan Bank Stock

 

10,864

 

215

7.90

%

 

10,753

 

-

0.00

%

Total Investment Securities

 

871,810

 

4,048

1.86

%

 

746,835

 

3,084

1.65

%

Loans Receivable:
Commercial Real Estate

 

1,026,594

 

11,179

4.33

%

 

1,003,318

 

11,031

4.42

%

Commercial and Industrial

 

364,750

 

3,987

4.35

%

 

402,179

 

4,380

4.38

%

SBA Payroll Protection Program

 

683,495

 

3,837

2.23

%

 

539,535

 

2,994

2.23

%

Residential Real Estate

 

73,291

 

734

3.98

%

 

70,984

 

705

4.00

%

Installment and Other

 

4,817

 

56

4.65

%

 

5,037

 

59

4.75

%

Total Loans Receivable

 

2,152,947

 

19,793

3.66

%

 

2,021,053

 

19,169

3.81

%

Total Interest Earning Assets

$

3,216,705

$

23,912

2.91

%

$

3,032,610

$

22,346

2.91

%

 
Liabilities:
Non-Interest Bearing Demand Deposits

 

1,675,885

 

-

0.00

%

 

1,624,250

 

-

0.00

%

Interest Bearing Transaction Accounts

 

215,041

 

41

0.08

%

 

201,439

 

37

0.07

%

Money Market and Savings Deposits

 

1,132,664

 

499

0.18

%

 

1,027,292

 

538

0.21

%

Certificates of Deposit

 

36,848

 

21

0.23

%

 

35,614

 

28

0.31

%

Total Deposits

 

3,060,438

 

561

0.07

%

 

2,888,595

 

603

0.08

%

Federal Home Loan Bank Advances / Other Borrowings

 

-

 

-

0.00

%

 

-

 

-

0.00

%

Total Interest Bearing Deposits and Borrowings

 

1,384,553

 

561

0.16

%

 

1,264,345

 

603

0.19

%

Total Deposits and Borrowings

$

3,060,438

$

561

0.07

%

$

2,888,595

$

603

0.08

%

 
Net Interest Income

$

23,351

$

21,743

Net Interest Rate Spread

2.84

%

2.83

%

Net Interest Margin

2.89

%

2.88

%

Net Interest Margin, excluding SBA PPP

3.06

%

3.02

%

American Business Bank
Figures in $000
 
QUARTERLY AVERAGE BALANCE SHEETS AND YIELD ANALYSIS (unaudited)
 
 
For the three months ended:
September 2020 September 2019
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

$

191,948

$

71

0.15

%

$

58,676

$

332

2.30

%

 
Investment Securities:
US Agencies

 

237,419

 

429

0.72

%

 

351,204

 

1,406

1.60

%

Mortgage Backed Securities

 

325,904

 

1,541

1.89

%

 

208,820

 

1,422

2.72

%

State and Municipals

 

271,133

 

1,700

2.51

%

 

159,861

 

1,094

2.74

%

US Treasuries

 

10,011

 

37

1.46

%

 

10,039

 

37

1.46

%

Corporate Bonds

 

16,479

 

126

3.07

%

 

15,328

 

118

3.07

%

Securities Available-for-Sale and Held-to-Maturity

 

860,946

 

3,833

1.78

%

 

745,252

 

4,077

2.19

%

Federal Home Loan Bank Stock

 

10,864

 

215

7.90

%

 

10,356

 

183

7.05

%

Total Investment Securities

 

871,810

 

4,048

1.86

%

 

755,608

 

4,260

2.25

%

Loans Receivable:
Commercial Real Estate

 

1,026,594

 

11,179

4.33

%

 

917,398

 

10,957

4.74

%

Commercial and Industrial

 

364,750

 

3,987

4.35

%

 

385,315

 

4,996

5.14

%

SBA Payroll Protection Program

 

683,495

 

3,837

2.23

%

 

-

 

-

0.00

%

Residential Real Estate

 

73,291

 

734

3.98

%

 

66,512

 

891

5.32

%

Installment and Other

 

4,817

 

56

4.65

%

 

5,159

 

46

3.58

%

Total Loans Receivable

 

2,152,947

 

19,793

3.66

%

 

1,374,384

 

16,890

4.88

%

Total Interest Earning Assets

$

3,216,705

$

23,912

2.91

%

$

2,188,668

$

21,482

3.84

%

 
Liabilities:
Non-Interest Bearing Demand Deposits

 

1,675,885

 

-

0.00

%

 

1,059,710

 

-

0.00

%

Interest Bearing Transaction Accounts

 

215,041

 

41

0.08

%

 

208,403

 

152

0.29

%

Money Market and Savings Deposits

 

1,132,664

 

499

0.18

%

 

746,947

 

1,041

0.55

%

Certificates of Deposit

 

36,848

 

21

0.23

%

 

50,425

 

73

0.57

%

Total Deposits

 

3,060,438

 

561

0.07

%

 

2,065,485

 

1,266

0.24

%

Federal Home Loan Bank Advances / Other Borrowings

 

-

 

-

0.00

%

 

163

 

1

2.27

%

Total Interest Bearing Deposits and Borrowings

 

1,384,553

 

561

0.16

%

 

1,005,938

 

1,267

0.50

%

Total Deposits and Borrowings

$

3,060,438

$

561

0.07

%

$

2,065,647

$

1,267

0.24

%

 
Net Interest Income

$

23,351

$

20,215

Net Interest Rate Spread

2.84

%

3.60

%

Net Interest Margin

2.89

%

3.66

%

Net Interest Margin, excluding SBA PPP

3.06

%

3.66

%

 
American Business Bank
Figures in $000
 
YEAR-TO-DATE AVERAGE BALANCE SHEETS AND YIELD ANALYSIS (unaudited)
 
 
For the nine months ended:
September 2020 September 2019
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

$

161,520

$

217

0.18

%

$

61,271

$

1,098

2.42

%

 
Investment Securities:
US Agencies

 

258,359

 

1,376

0.71

%

 

395,511

 

4,612

1.55

%

Mortgage Backed Securities

 

294,904

 

4,718

2.13

%

 

183,086

 

3,903

2.84

%

State and Municipals

 

203,326

 

4,018

2.63

%

 

162,505

 

3,351

2.75

%

US Treasuries

 

10,018

 

110

1.47

%

 

10,046

 

111

1.47

%

Corporate Bonds

 

18,770

 

423

3.00

%

 

6,732

 

159

3.15

%

Securities Available-for-Sale and Held-to-Maturity

 

785,377

 

10,645

1.81

%

 

757,880

 

12,136

2.14

%

Federal Home Loan Bank Stock

 

10,658

 

400

5.01

%

 

10,356

 

542

6.97

%

Total Investment Securities

 

796,035

 

11,045

1.85

%

 

768,236

 

12,678

2.20

%

Loans Receivable:
Commercial Real Estate

 

1,011,829

 

33,553

4.43

%

 

873,209

 

30,901

4.73

%

Commercial and Industrial

 

400,905

 

13,391

4.46

%

 

366,111

 

14,308

5.23

%

SBA Payroll Protection Program

 

408,683

 

6,832

2.23

%

 

-

 

-

0.00

%

Residential Real Estate

 

73,525

 

2,325

4.22

%

 

62,286

 

2,487

5.34

%

Installment and Other

 

5,166

 

156

4.04

%

 

4,949

 

117

3.17

%

Total Loans Receivable

 

1,900,108

 

56,257

3.95

%

 

1,306,555

 

47,813

4.89

%

Total Interest Earning Assets

$

2,857,663

$

67,519

3.10

%

$

2,136,062

$

61,589

3.80

%

 
Liabilities:
Non-Interest Bearing Demand Deposits

 

1,469,001

 

-

0.00

%

 

1,021,107

 

-

0.00

%

Interest Bearing Transaction Accounts

 

206,276

 

182

0.12

%

 

201,985

 

363

0.24

%

Money Market and Savings Deposits

 

989,554

 

2,004

0.27

%

 

735,682

 

2,804

0.51

%

Certificates of Deposit

 

36,298

 

90

0.33

%

 

61,515

 

293

0.64

%

Total Deposits

 

2,701,129

 

2,276

0.11

%

 

2,020,289

 

3,460

0.23

%

Federal Home Loan Bank Advances / Other Borrowings

 

10,533

 

131

1.66

%

 

738

 

15

2.63

%

Total Interest Bearing Deposits and Borrowings

 

1,242,661

 

2,407

0.26

%

 

999,920

 

3,475

0.46

%

Total Deposits and Borrowings

$

2,711,662

$

2,407

0.12

%

$

2,021,027

$

3,475

0.23

%

 
Net Interest Income

$

65,112

$

58,114

Net Interest Rate Spread

2.98

%

3.57

%

Net Interest Margin

3.04

%

3.64

%

Net Interest Margin, excluding SBA PPP

3.18

%

3.64

%

 
American Business Bank
Figures in $000
 
SUPPLEMENTAL DATA (unaudited)
 
 
 
September June December September

2020

2020

2019

2019

Performance Ratios:
Quarterly:
Return on Average Assets (ROAA)

 

0.95

%

 

0.86

%

 

0.99

%

 

0.95

%

Core Return on Average Assets (ROAA)

 

0.95

%

 

0.87

%

 

0.99

%

 

0.96

%

 
Return on Average Equity (ROAE)

 

13.53

%

 

12.14

%

 

11.74

%

 

11.03

%

Core Return on Average Equity (ROAE)

 

13.57

%

 

12.39

%

 

11.74

%

 

11.22

%

 
Efficiency Ratio

 

54.95

%

 

58.70

%

 

58.77

%

 

58.64

%

 
Year-to-Date
Return on Average Assets (ROAA)

 

0.87

%

 

0.83

%

 

0.97

%

 

0.96

%

Core Return on Average Assets (ROAA)

 

0.88

%

 

0.84

%

 

1.00

%

 

1.00

%

 
Return on Average Equity (ROAE)

 

11.67

%

 

10.68

%

 

11.80

%

 

11.83

%

Core Return on Average Equity (ROAE)

 

11.75

%

 

10.77

%

 

12.15

%

 

12.30

%

 
Efficiency Ratio

 

57.47

%

 

58.88

%

 

60.29

%

 

60.82

%

Core Efficiency Ratio

 

57.47

%

 

58.88

%

 

59.57

%

 

59.84

%

 
Capital Adequacy:
Total Risk Based Capital Ratio

 

14.54

%

 

14.64

%

 

13.82

%

 

13.81

%

Common Equity Tier 1 Capital Ratio

 

13.29

%

 

13.38

%

 

12.57

%

 

12.56

%

Tier 1 Risk Based Capital Ratio

 

13.29

%

 

13.38

%

 

12.57

%

 

12.56

%

Tier 1 Leverage Ratio

 

6.97

%

 

7.10

%

 

8.66

%

 

8.91

%

Tangible Common Equity / Tangible Assets

 

7.11

%

 

6.90

%

 

8.60

%

 

8.62

%

 
Asset Quality Overview
Non-Performing Loans

$

2,563

 

$

2,601

 

$

1,855

 

$

1,481

 

Loans 90+ Days Past Due and Still Accruing

 

-

 

 

-

 

 

-

 

 

-

 

Total Non-Performing Loans

 

2,563

 

 

2,601

 

 

1,855

 

 

1,481

 

 
Restructured Loans

 

221

 

 

223

 

 

227

 

 

229

 

 
Other Real Estate Owned

 

-

 

 

-

 

 

-

 

 

-

 

 
ALLL / Loans Receivable

 

1.05

%

 

1.05

%

 

1.40

%

 

1.40

%

Non-Performing Loans / Total Loans Receivable *

 

0.13

%

 

0.13

%

 

0.14

%

 

0.12

%

Non-Performing Loans / Total Loans Receivable *, excluding PPP **

 

0.19

%

 

0.19

%

 

0.14

%

 

0.12

%

Non-Performing Assets / Total Assets *

 

0.08

%

 

0.09

%

 

0.09

%

 

0.07

%

Non-Performing Assets / Total Assets *, excluding PPP **

 

0.11

%

 

0.11

%

 

0.09

%

 

0.07

%

Net Charge-Offs (Recoveries) quarterly

$

(60

)

$

168

 

$

(8

)

$

(6

)

Net Charge-Offs (Recoveries) year-to-date

$

478

 

$

538

 

$

(41

)

$

(33

)

Net Charge-Offs (Recoveries) year-to-date / Average

 

0.03

%

 

0.03

%

 

0.00

%

 

0.00

%

Loans Receivable
 

*

Includes non-accrual loans, accruing loans past due 90+ days and Troubled Debt Restructurings (TDRs).

**

SBA Paycheck Protection Program (PPP)

 


These press releases may also interest you

at 09:25
The "Inhaled and Intranasal Products Contract Service Providers Market, 2020-2030" report has been added to ResearchAndMarkets.com's offering. The 'Inhaled and Intranasal Products: Contract Service Providers Market (Focus on Drugs and Drug Delivery...

at 09:20
The new rural clinical and healthcare logistics market research from Technavio indicates negative growth in the short term as the business impact of COVID-19 spreads. Get detailed insights on the COVID-19 pandemic Crisis and Recovery analysis of the...

at 09:15
The data center market in Europe is expected to grow by USD 70.95 bn, progressing at a CAGR of over 15% during the forecast period. Click & Get Free Sample Report in Minutes The increasing adoption of cloud-based storage services is one of the...

at 09:15
The "Yield Monitoring Devices and Services - Global Market Trajectory & Analytics" report has been added to ResearchAndMarkets.com's offering. The publisher brings years of research experience to the 9th edition of this report. The 225-page report...

at 09:10
The blue laser diode market is expected to grow by USD 196.96 million, progressing at a CAGR of over 12% during the forecast period. Click & Get Free Sample Report in Minutes The advances in laser projectors is one of the major factors propelling...

at 09:05
Electromobility, autonomous driving and digital transformation of cars: Technological change continues to put pressure on margins at automotive suppliers. The Covid-19 pandemic has further intensified this trend. As a result, this year's global sales...



News published on 29 october 2020 at 09:15 and distributed by: