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Press Release - American Business Bank (AMBZ-OTC: BB)

In 1989, we had 14,000 banks; to date we have 7,800. By all estimates of experts, with consolidation and takeovers and not being able to make money with increased regulatory burdens, we are consolidating to 5,000 banks. With those problems and industries enormous problems of earnings and bad assets, you have an institution in American Business Bank that in 2009 grew $145 million in asset size, and had record earning even today with the problems of the economy... - Donald P. Johnsone (AMBZ) (Interview published November 5, 2010)

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American Business Bank Announces Its Results for the Year Ended December 31st, 2010, Including 11% Loan Growth, 12% Deposit Growth and 20% Earnings Growth Over 2009

American Business Bank

AMBZ | 1/13/2011 10:13:00 AM

LOS ANGELES, Jan 13, 2011 (BUSINESS WIRE) --

AMERICAN BUSINESS BANK (Bank) (OTCBB: AMBZ) today reported net income of $8,701,000 for the year ended December 31, 2010, a 20% increase over the $7,225,000 earned in 2009. Earnings per share (EPS) for 2010 increased to $2.19 versus $1.82 in 2009. Shares outstanding at the end of the year totaled 3,979,156.

"The Bank had an excellent year in terms of growth and profitability. Not only were we able to post outstanding earnings, but we were also able to add to the Bank's reserves," said Wes Schaefer, Vice Chairman of the Bank.

"As we have said throughout this year, the Bank has been and continues to be built one customer at a time," said Don Johnson, President and CEO of the Bank. "We have stayed the course and worked through a very difficult economy, not stepping out by pursuing the latest fad or taking risks beyond those that are part of our core business: banking middle market companies."

Robert Schack, Chairman, added, "2010 was a tumultuous year, with the passage of the largest banking bill since the Depression, the closure of a significant number of banks and many headwinds for the economy. Despite this, our bank was able to post record earnings and add new middle market clients to our customer base, increasing assets nearly twelve percent from the previous year."

Assets and Liabilities

Total assets increased over 11% or $107 million to $1,007 million at December 31, 2010 as compared to $900 million at December 31, 2009. Loans increased 11% or by $41 million from $360 million to $401 million, while investments increased $70 million. Funding the asset growth was a 12% or $93 million increase in core deposits.

Interest Income

During 2010, Net Interest Income increased $3,601,000 or 13% over the previous year.

Non-interest Income

Non-interest Income for the year rose 15% to $3,462,000 in 2010 from $2,989,000 in 2009.

Credit Quality

Asset quality at year-end remains excellent, with nominal past dues and no OREO loans. At year-end, the allowance for loan losses stood at $7,050,000 or 1.73% of loans.

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. The Bank has opened four Loan Production Offices in strategic areas including our Orange County Office in Irvine, our South Bay Office in Torrance, our San Fernando Valley Office in the Warner Center and our Inland Empire Office in Ontario.


                               AMERICAN BUSINESS BANK

                                    BALANCE SHEET

                              (Unaudited-000's omitted)

                        December                              2010          2009

-------------------------------------------------------  ------------   ----------

Assets

  Investment Securities                                    $   562,022    $ 491,483

  Federal Funds Sold                                                 -            -

  Loans and Leases (net)                                       401,554      360,028

                                                                 9,750       13,599

  Cash, Checks in process of collection, Due From Banks

  Premises, Equipment and Other Assets                          34,247       35,795

                                                             ---------      -------

                                                           $ 1,007,573    $ 900,905

    Total Assets

Liabilities and Shareholders' Equity

  Demand Deposits                                              346,992      288,341

  Money Market and Now Deposits                                446,557      404,909

  Savings and Time Deposits                                     85,359       91,935

                                                             ---------      -------

                                                               878,908      785,185

    Total Deposits

  Federal Funds Purchased                                                  5,000

  FHLB Advances/FRB Borrowings                                  56,400       47,335

  Other Liabilities                                              6,216        8,178

  Shareholders' Equity                                          66,049       55,207

                                                             ---------      -------

                                                           $ 1,007,573    $ 900,905

    Total Liabilities and Shareholders' Equity




                                  AMERICAN BUSINESS BANK

                                     INCOME STATEMENT

                                 (Unaudited-000's omitted)

                                                          Twelve months ended December

                                                             2010              2009

                                                       --------------    --------------

Interest Income

  Loans and Leases                                        $ 21,319          $ 19,788

  Investment Securities                                     14,559            13,646

  Fed Funds Sold                                                21                38

                                                            ------            ------

    Total Interest Income                                   35,899            33,472

Interest Expense

                                                             3,085             3,387

  Money Market and NOW Accounts

  Savings and Time Deposits                                  1,004             1,360

                                                               490             1,006

  Repurchase Agreements/Other Borrowings

                                                            ------            ------

    Total Interest Expense                                   4,579             5,753

  Net Interest Income                                       31,320            27,719

  Provision for Loan Losses                                 (1,839 )          (1,268 )

                                                            ------            ------ ----

                                                            29,481            26,451

  Net Interest Income after Provision for Loan Losses

Other Income                                                 3,462             2,989

Other Expense                                               21,964            20,750

                                                            ------            ------

Operating Income                                            10,979             8,690

Income Taxes                                                (2,278 )          (1,465 )

                                                            ------            ------ ----

Net Earnings                                              $  8,701          $  7,225

Selected Preliminary Ratios:

    Earnings per share-basic                              $   2.19          $   1.82

    Tier 1 Capital Ratio                                      6.93 %            6.84 %

                                                              3.22 %            3.59 %

    Net Interest Margin (Prior to tax effects)

    Return on Beginning Equity                               14.25 %           13.87 %

    Return on Average Assets                                  0.82 %            0.87 %

    Efficiency Ratio                                          59.0 %            70.8 %

SOURCE: American Business Bank

American Business Bank Wesley E. Schaefer Vice Chairman & Chief Financial Officer 213-430-4000

Copyright Business Wire 2011




    

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