American Business Bank Announces Its Results for the Year Ended December 31st 2012, Including 20% Loan Growth and 10% Earnings

  American Business Bank Announces Its Results for the Year Ended December
  31st 2012, Including 20% Loan Growth and 10% Earnings Growth over 2011

Business Wire

LOS ANGELES -- February 1, 2013

AMERICAN BUSINESS BANK (Bank) (OTCBB: AMBZ) today reported net income of
$10,884,000 for the year ended 2012, a 10% increase over the $9,886,000 earned
in 2011. Earnings per share (basic) for 2012 increased to $2.46 versus $2.24
in 2011. Shares outstanding at the end of the year totaled 4,432,331.

“It’s a tribute to our staff that they, once again, provided our shareholders
a double digit return on equity in a single digit market,” said Robert Schack,
Chairman.

“American Business Bank has had another great year by putting our customers
first and by acting as a financial advisor to contribute to their success,”
said Don Johnson, Chief Executive Officer.

“The Bank managed to hit all of its goals for the year 2012 and is looking
forward to continuing to build on the Bank’s success in 2013,” said Leon
Blankstein, President. “The quality of our people, the culture of the Bank and
the execution of our business model continue to serve our shareholders well.”

Total assets increased 11% or $131 million to $1.305 billion at December 31,
2012 as compared to $1.174 billion at December 31, 2011. The loan portfolio
(net) increased 20% or $85 million to $494 million at December 31, 2012 as
compared to $409 million at December 31, 2011, while investments and federal
funds sold increased $35 million. Deposits increased 4% or $38 million to
$1.067 billion at December 31, 2012 as compared to $1.029 billion at the end
of 2011.

During 2012, Net Interest Income increased $1,706,000 or 4.9% to $36,621,000
from $34,915,000 in 2011.

Non-Interest income during 2012 increased $715,000 or 16.6% to $5,024,000 from
$4,309,000 in 2011.

Non-Interest expense for 2012 increased $512,000 or 2.2% to $23,788,000 from
$23,276,000 during 2011.

Asset quality at quarter-end remains excellent, with $1,144,000 non-performing
loans or 0.2% of total loans; and, no OREO. At the end of December 2012, the
allowance for loan losses stood at $10,537,000 or 2.09% 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
Figures in $000, except per share amounts
                                                               
CONSOLIDATED BALANCE SHEET (unaudited)
                                                                       
                                                                       
                                   For the period ended:               
                                   December          December          Change
                                   2012            2011              %
Assets:
     Cash & Equivalents            $ 31,852          $ 27,059          17.7  %
     Fed Funds Sold                  5,000             0               N/A   
     Interest Bearing                28                1,034           -97.3 %
     Balances
     Investment Securities:
         US Agencies                 408,803           385,826         6.0   %
         Mortgage Backed             178,855           193,637         -7.6  %
         Securities
         State & Municipals          145,460           123,349         17.9  %
       Other                   132           138            -4.3  %
              Total Investment       733,250           702,950         4.3   %
              Securities
     Gross Loans:
         Commercial Real             267,406           225,965         18.3  %
         Estate
         Commercial &                194,645           156,167         24.6  %
         Industrial
         Other Real Estate           36,903            30,238          22.0  %
       Other                   5,320         5,918          -10.1 %
              Total Gross            504,274           418,288         20.6  %
              Loans
                     Allowance for
                 Loan & Lease   (10,537   )    (8,934    )     17.9  %
                     Losses
              Net Loans              493,737           409,354         20.6  %
     Premises & Equipment            720               1,087           -33.8 %
    Other Assets                39,916        32,078         24.4  %
       Total Assets           $ 1,304,503    $ 1,173,562      11.2  %
                                                                       
Liabilities:
     Demand Deposits               $ 522,001         $ 459,317         13.6  %
     Money Market                    464,348           483,481         -4.0  %
    Time Deposits and            80,251        85,760         -6.4  %
     Savings
              Total Deposits         1,066,600         1,028,558       3.7   %
     FHLB Advances / Other           117,600           48,000          145.0 %
     Borrowings
    Other Liabilities           16,568        10,512         57.6  %
       Total                  $ 1,200,768    $ 1,087,070      10.5  %
         Liabilities
                                                                       
Shareholders' Equity:
     Common Stock & Retained       $ 90,605          $ 78,613          15.3  %
     Earnings
    Accumulated Other              13,130        7,879          66.6  %
     Comprehensive Income
       Total Shareholders'     $ 103,735      $ 86,492         19.9  %
         Equity
       Total Liabilities &       $ 1,304,503    $ 1,173,562      11.2  %
         Shareholders' Equity
                                                                       
Capital Adequacy:
     Tangible Common Equity /        7.95      %       7.37      %     --
     Tangible Assets
     Tier 1 Leverage Ratio           7.19      %       6.72      %     --
     Tier 1 Capital Ratio / Risk     16.29     %       16.58     %     --
     Weighted Assets
     Total Risk-Based Ratio          17.55     %       17.84     %     --
                                                                       
Per Share Information:
     Common Shares                   4,432,331         4,427,862       --
     Outstanding
     Book Value Per Share          $ 23.40           $ 19.53           19.8  %
     Tangible Book Value Per       $ 23.40           $ 19.53           19.8  %
     Share
                                                                             

American Business Bank
Figures in $000, except per share amounts
                                                                 
CONSOLIDATED INCOME STATEMENT (unaudited)
                                                                       
                                                                       
                                   For the 12-month period:            
                                   December          December          Change
                                   2012             2011              %
Interest Income:
   Loans & Leases                  $ 22,544          $ 22,122          1.9   %
  Investment Securities          16,824        16,339         3.0   %
           Total Interest            39,368            38,461          2.4   %
           Income
                                                                       
                                                                       
Interest Expense:
   Money Market, NOW Accounts &      1,905             2,453           -22.3 %
   Savings
   Time Deposits                     542               778             -30.3 %
  Repurchase Agreements / Other    300           315            -4.8  %
   Borrowings
           Total Interest            2,747             3,546           -22.5 %
           Expense
                                                                       
                                                                       
Net Interest Income                  36,621            34,915          4.9   %
  Provision for Loan Losses      (1,624    )    (1,977    )     -17.9 %
Net Interest Income After            34,997            32,938          6.3   %
Provision
                                                                       
                                                                       
Non-Interest Income:
   Deposit Fees                      1,073             1,012           6.0   %
   Realized Securities Gains /       3,702             2,663           39.0  %
   (Losses)
  Other                       249           634            -60.7 %
           Total Non-Interest        5,024             4,309           16.6  %
           Income
                                                                       
                                                                       
Non-Interest Expense:
   Compensation & Benefits           14,270            13,169          8.4   %
   Occupancy & Equipment             1,568             1,612           -2.7  %
  Other                       7,950         8,495          -6.4  %
           Total Non-Interest        23,788            23,276          2.2   %
           Expense
                                                                       
                                                                       
Pre-Tax Income                       16,233            13,971          16.2  %
  Provision for Income Tax       (5,349    )    (4,085    )     30.9  %
                                                                       
                                                                       
Net Income                     $ 10,884       $ 9,886          10.1  %
                                                                       
                                                                       
                                                                       
Per Share Information:
   Average Shares Outstanding (for   4,430,503         4,413,946       --
   the year)
   Earnings Per Share - Basic      $ 2.46            $ 2.24            9.7   %
                                                                             

American Business Bank
Figures in $000, except per share amounts
                                                             
                                                                      
                                                                      
                                        December       December       Change
                                        2012         2011           %
                                                                      
Performance Ratios
   Return on Average Assets (ROAA)        0.88   %       0.90   %     --
   Return on Average Equity (ROAE)        11.36  %       13.19  %     --
                                                                      
                                                                      
                                                                      
Asset Quality Overview
   Non-Performing Loans                 $ 924          $ 2,239        -58.7  %
  Loans 90+Days Past Due              220        0          N/A    
             Total Non-Performing       $ 1,144        $ 2,239        -48.9  %
             Loans
                                                                      
   Restructured Loans (TDR's)           $ 6,423        $ 134          4693.3 %
                                                                      
   Other Real Estate Owned                0              0            --
                                                                      
   ALLL / Gross Loans                     2.09   %       2.14   %     --
   ALLL / Non-Performing Loans *          921.07 %       399.02 %     --
   Non-Performing Loans / Total Loans     0.23   %       0.54   %     --
   *
   Non-Performing Assets / Total          0.09   %       0.19   %     --
   Assets *
   Net Charge-Offs                      $ -            $ -            --
   Net Charge-Offs / Average Gross        0.00   %       0.00   %     --
   Loans
                                                                      
   *         Excludes Restructured
             Loans

Contact:

American Business Bank
Wes E. Schaefer
Vice Chairman and Chief Financial Officer
(213) 430-4000
 
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