American Business Bank Reports Record Quarterly Earnings of $14.3 Million

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10/29/2025 - 09:05 AM

Five consecutive quarters of Net interest margin expansion

Third Quarter 2025 Highlights

Net income for the quarter totaled $14.3 million, or $1.56 per diluted share
Net interest margin expanded to 3.66% from 3.58% in the prior quarter
Cost of average deposits declined to 1.14% compared to 1.16% in the prior quarter
Core Deposits increased $169 million or 5% over the prior quarter
Total loans increased $25 million or 1% over the prior quarter
Net yield on interest earning assets increased 6 basis points over the prior quarter
Non-interest bearing demand deposits represent 47% of total deposits
Minimal past due loans
No borrowings during the third quarter
Return on Average Assets of 1.31% for the current quarter
Return on Average Equity of 15.09% for the current quarter
Quarterly cash dividend paid on common stock of $0.25 per share
Tangible book value per share increased $2.80 to $44.35
Continued status as well-capitalized, the highest regulatory category

LOS ANGELES--(BUSINESS WIRE)-- AMERICAN BUSINESS BANK (OTCQX: AMBZ) today reported net income of $14.3 million or $1.56 per fully diluted share for the quarter ended September 30, 2025 compared to $13.2 million or $1.42 per fully diluted share for the quarter ended June 30, 2025, and $10.8 million or $1.16 per fully diluted share for the quarter ended September 30, 2024, representing an increase of 9% and 33%, respectively.

“Loans have grown at a healthy 10% annualized pace year to date. This growth, combined with higher loan yields, continues to drive net interest margin expansion and earnings growth over the prior quarter and year periods. Business momentum remains strong due to the success of our customer base and prospective customers who choose to partner with the Bank. This quarter, the Bank generated outstanding metrics by posting a Return on Average Equity of 15% and a Return on Average Assets of 1.31%. This could not have been achieved without exceptional clientele and exceptional bankers who care for them.

“We are pleased with the core deposit growth for the quarter mainly from existing customers. Some of this growth was in anticipation of delayed federal and state tax payments due in October. The pipeline of new customer relationships remains solid and should drive further growth.

“Over the last four to five years we have had to navigate a turbulent environment. The business model has weathered the volatility and delivered results and trends that are very positive. One element that has never wavered is the mission to deliver superior service to remain the premier relationship-banking franchise for small to mid-size businesses in Southern California. That is truly our differentiator,” commented Leon Blankstein, Chief Executive Officer and Director.

For the quarter ended September 30, 2025, net interest income was $39.8 million, a 27% increase compared to the prior year quarter. The higher balance of average loans, an increase in loan yields, and a decrease in the cost of deposits, all contributed to the increase in net interest income compared to the prior year quarter.

The allowance for credit losses as a percentage of loans was 1.10% at September 30, 2025 and June 30, 2025. A provision of $0.2 million was recorded for the quarter to increase the allowance for credit losses due to growth in the loan portfolio which was offset by the reduction in the reserve for unfunded loan commitments.

For the nine months ended September 30, 2025, the Bank reported net income of $39 million or $4.25 per fully diluted share compared to $31 million or $3.31 per fully diluted share for the nine months ended September 30, 2024, representing an increase of 28%. Net income was higher year to date 2025 due to higher average balance of loans and a reduction of higher cost borrowings.

“With the record quarterly earnings, we opportunistically sold longer duration investment securities with below market yields. If these recognized losses on the securities portfolio were added back to earnings, the run rate of operating earnings for the Bank is even more robust,” commented Karen Schoenbaum, Executive Vice President and Chief Financial Officer.

The following table presents net income excluding net losses after-tax on sales of investment securities to arrive at core net income:

	Three Months Ended						Nine Months Ended
	September 30, 2025		June 30, 2025		September 30, 2024		September 30, 2025		September 30, 2024
(Figures in $000s, except per share amounts)
Net Income	$	14,324	$	13,156	$	10,780	$	39,367	$	30,776
Excluding After-Tax
Net Losses on Sale of Investment Securities		1,828		787		422		2,946		787
Core Net Income	$	16,152	$	13,943	$	11,202	$	42,313	$	31,563

Core Earnings after taxes per shares - Diluted	$	1.75	$	1.51	$	1.20	$	4.56	$	3.39

Net Interest Margin

The net interest margin for the third quarter of 2025 increased to 3.66% from 3.58% for the prior quarter and 3.13% for the prior year quarter. The increase compared to the prior quarter is primarily due to an increase in average loans with higher interest rates and a reduction of interest expense on deposits. The increase in the average balances of non-interest bearing deposits also contributed to margin expansion. As of September 30, 2025, 58% of the loan portfolio was fixed rate with a weighted average remaining life of 64 months. Approximately 43% of variable rate loans are indexed to prime of which $489 million are adjustable within 90 days of a change in the prime rate. The Bank has experienced net interest margin expansion for the past five consecutive quarters.

Net Interest Income

For the quarter ended September 30, 2025, net interest income increased by $3 million, or 8%, compared to the quarter ended June 30, 2025 primarily due to growth in loans with higher interest rates. For the quarter ended September 30, 2025, net interest income increased by $8.5 million, or 27%, compared to the quarter ended September 30, 2024. This increase in net interest income was attributable to an increase in the average balance of loans coupled with no borrowings in the third quarter of 2025. Interest income was further enhanced in the third quarter by higher rates on the loan portfolio. For the quarter ended September 30, 2025, the cost of deposits was 1.14% representing a decrease of 2 bps compared to the quarter ended June 30, 2025. This decrease is mainly due to a decline in interest rates on money market and savings deposit accounts coupled with a reduction in the balance of certificates of deposit. The loan-to-deposit ratio was 73% as of September 30, 2025, 75% as of June 30, 2025, and 71% as of September 30, 2024, respectively.

Provision for Credit Losses

The following table presents details of the provision for credit losses for the periods indicated:

	Three Months Ended									Nine Months Ended
	September 30, 2025			June 30, 2025			September 30, 2024			September 30, 2025			September 30, 2024
(Figures in $000s)

Addition (recapture) to allowance for loan losses	$	221		$	463		$	266		$	1,665		$	490
Addition (recapture) to reserve for unfunded loan commitments		(50	)		(100	)		(266	)		(269	)		(266	)
Total loan-related provision	$	171		$	363		$	-		$	1,396		$	224

Addition to allowance for held-to-maturity securities		-			-			-			-			-
Total provision for credit losses	$	171		$	363		$	-		$	1,396		$	224

Non-Interest Income

The decrease in non-interest income compared to the prior quarter and to the prior year quarter is primarily due to realized losses on the sale of lower yielding investment securities that were sold as rates declined in the quarter.

Non-Interest Expense

For the quarter ended September 30, 2025, total non-interest expense increased $0.1 million and $1.6 million compared to the prior quarter and the prior year quarter, respectively. The increase over the prior quarter was primarily due to an increase in new employees. The increase over the prior year quarter was primarily due to an increase in new employees coupled with higher salaries and bonuses commensurate with increased profitability. The efficiency ratio decreased to 47% for the third quarter compared to 50% for the second quarter and 53% for the third quarter of 2024.

There were 256 full time equivalent employees at September 30, 2025 compared to 248 a year ago and 251 at June 30, 2025. The Bank had 45 relationship managers in nine offices at September 30, 2025 and June 30, 2025 compared to 50 at June 30, 2024.

For the nine months ended September 30, 2025, non-interest expense increased $6.1 million or 12% compared to the same period a year ago, primarily due to increases in salaries and employee benefits.

Income Taxes

The effective income tax rate was 28.4% for the quarter ended September 30, 2025, 27.3 % for the quarter ended June 30, 2025, and 28.1% for the quarter ended September 30, 2024. On June 27, 2025, California enacted S.B. 132, which changed apportionment for financial institutions to single-sales apportionment for tax years beginning January 1, 2025. This resulted in a California state tax rate decrease and a reduction to deferred tax assets of $139 thousand.

Balance Sheet

For the quarter ended September 30, 2025, total loans increased $24.6 million, or 0.9% compared to the prior quarter. During the quarter, seven loans totaling $31 million were repaid by one client after the successful rehabilitation of a portfolio of multifamily properties. The majority of this quarter’s increase in loan balances was in owner-occupied commercial real estate loans secured by industrial collateral. The increase in Commercial and Industrial (C&I) loans is mainly due to an increase in new borrowers. At September 30, 2025, the utilization rate for the Bank’s commercial lines of credit decreased to 28%, a 2.0% decrease compared to June 30, 2025.

The following table is the composition of Commercial Real Estate (CRE) loans as of:

	September 30, 2025		June 30, 2025
(Figures in $000s)
RE - Owner-occupied	$	1,317,701	$	1,289,235
RE - Non-owner occupied		757,578		757,130
Construction & Land		93,598		91,094
Total CRE Loans	$	2,168,876	$	2,137,459

The following table is the composition of the owner-occupied and non-owner-occupied CRE loans by collateral type:

	as of September 30, 2025
	Owner-occupied		Non owner-occupied
(Figures in $000s)
Industrial	$	819,618	$	310,179
Office		180,147		95,166
Retail		21,197		197,612
Automobile Service Facilities		65,876		30,143
Contractor's Yard		84,694		11,824
School		37,913		-
Storage		-		11,075
Miscellaneous		108,255		101,579
Total	$	1,317,701	$	757,578

Total investment securities at September 30, 2025 were $1.1 billion including $531 million (50%) in held-to-maturity (HTM) securities based on book value. The Bank has no non-agency mortgage-backed securities in its portfolio. The duration of the available-for-sale (AFS) securities portfolio was 5.8 years as of September 30, 2025, 6.1 years as of June 30, 2025, and 5.7 years as of September 30, 2024. Accumulated other comprehensive loss (AOCI) decreased to $57.9 million as of September 30, 2025 from $70.7 million as of June 30, 2025 as market rates relevant to securities pricing decreased. The duration of the held-to-maturity portfolio, which consists primarily of municipal securities, is 8.1 years. As of September 30, 2025, the unrealized after tax loss on HTM securities was $64 million.

Deposits increased by $125 million or 3% to $4.0 billion in the quarter ended September 30, 2025. Of this increase, approximately $16 million came from 41 new client relationships. Due to the January fires in Los Angeles County some of the quarterly increase was related to federal and state tax payments that were delayed until October 15, 2025. The Bank has no brokered or internet-solicited deposits. The ratio of non-interest bearing deposits to total deposits is 47% and 46% at September 30, 2025 and June 30, 2025, respectively.

During the third quarter of 2025, total assets increased $158 million, or 4%, total loans increased by $25 million, or 0.9%, and total deposits increased by $125 million, or 3%. As of September 30, 2025, the Bank has $1.6 billion in total borrowing capacity from the discount window of the Federal Reserve Board and loans pledged at the Federal Home Loan Bank of San Francisco. There were no borrowings outstanding at the end of the third, second, and first quarters of 2025.

Capital Management

As of September 30, 2025, total shareholders’ equity increased to $396 million. During the quarter, the Bank declared and paid a cash dividend of $0.25 per share and repurchased 50,744 shares of common stock.

The following table presents a summary of quarterly cash dividends for 2025:

	Dividend Declared		Payment Date
(Figures in $000s)
March 31, 2025	$	2,276	March 17, 2025
June 30, 2025		2,257	June 17, 2025
September 30, 2025		2,242	September 17, 2025
Total cash dividends	$	6,775

The Bank announced its first stock repurchase program in January 2025 for 227,541 shares which was completed in August 2025. The Bank’s Board of Directors has authorized a second stock repurchase program for 205,453 shares, or approximately 2.3% of the Bank’s outstanding shares of common stock, which expires in August 2026.

For the first nine months of year, the Bank repurchased 242,541 shares at a cost of $10.9 million.

The following table presents a summary of quarterly stock repurchases for 2025:

	Shares	Weighted Average Price

March 31, 2025	71,797	$	43.84
June 30, 2025	120,000		42.87
September 30, 2025	50,744		49.99
Total shares repurchased	242,541	$	44.65

Asset Quality

The following table presents an overview of asset quality:

	September 30, 2025			June 30, 2025
(Figures in $000s)
Non-performing assets (NPA)	$	11,733		$	11,553
Loans 90+ days past due and still accruing		-			-
Total NPA	$	11,733		$	11,553

NPA as a % of total assets		0.26	%		0.27	%

Past Due as a % of total loans		0.00	%		0.00	%
Criticized as a % of total loans		3.43	%		3.22	%
Classified as a % of total loans		0.98	%		0.99	%

During the third quarter of 2025, non-performing assets increased by $0.2 million. The Bank believes that it is well positioned with collateral and SBA enhancements, therefore no loss is expected on the credits. As of September 30, 2025, NPAs have a $484 thousand allowance on individually evaluated loans related to six non-performing C&I loans.

The loan portfolio has approximately 9% in office collateral of which the majority is owner-occupied, and substantially all are three stories or under and located in suburban markets.

Our commercial real estate lending is primarily owner-occupied which is not dependent on rent rolls, but reliant on the cash flows of the operating business that occupies the property. C&I and owner-occupied commercial real estate portfolios comprise 64% of total loans while non-owner occupied represent 26% of total loans.

As of September 30, 2025, the loan portfolio has one piece of collateral on a commercial property that had been destroyed by the January fires in Los Angeles County; the loan was substantially repaid with insurance proceeds and is adequately secured by unimproved land.

The following table represents the allowance for credit losses for loans as of and for the dates and periods indicated:

	Three Months Ended									Nine Months Ended
	September 30, 2025			June 30, 2025			September 30, 2024			September 30, 2025			September 30, 2024
(Figures in $000s)
Balance, beginning of period	$	31,892		$	31,429		$	28,843		$	30,448		$	28,460
Charge-offs		-			-			(4	)		-			(103	)
Recoveries		-			-			-			-			258
Net (charge-offs) / recoveries	$	-		$	-		$	(4	)	$	-		$	155
Provision		221			463			266			1,665			490
Balance, end of period	$	32,113		$	31,892		$	29,105		$	32,113		$	29,105

Allowance as a % of loans		1.10	%		1.10	%		1.11	%		1.10	%		1.11	%

The allowance for credit losses for loans increased to $32 million during the third quarter of 2025 primarily as a result of growth in the loan portfolio. There were no charge-offs or recoveries in the third quarter of 2025. The Bank has ten restructured loans totaling $5.7 million involving borrowers 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 nine 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, Southern Inland Empire in Corona, Inland Empire in Ontario, Riverside County in Downtown Riverside, LA Coastal in Long Beach and North County in San Diego.

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)

	September			June			December			September
	2025			2025			2024			2024
Assets:
Cash and Due from Banks	$	99,665		$	111,692		$	35,544		$	109,214
Interest Earning Deposits in Other Financial Institutions		300,246			140,843			66,073			168,521

Investment Securities:
US Agencies		64,091			64,069			71,836			73,265
Mortgage Backed Securities		362,735			363,486			375,402			400,381
State and Municipals		66,331			69,464			76,442			78,504
Corporate Bonds		13,780			13,547			14,594			14,371
Securities Available-for-Sale, at Fair Value		506,937			510,566			538,274			566,521
Mortgage Backed Securities		157,398			160,723			166,915			169,623
State and Municipals		373,831			376,867			377,947			383,483
Allowance for Credit Losses, Held-To-Maturity		(55	)		(55	)		(55	)		(55	)
Securities Held-to-Maturity, at Amortized Cost,		531,174			537,535			544,807			553,051
Net of Allowance for Credit Losses
Federal Home Loan Bank Stock, at Cost		15,000			15,000			15,000			15,000
Total Investment Securities		1,053,111			1,063,101			1,098,081			1,134,572
Loans Receivable:
Commercial Real Estate		2,168,876			2,137,459			2,054,135			1,955,440
Commercial and Industrial		564,098			537,550			485,307			461,980
Residential Real Estate		178,508			207,870			201,996			198,259
Installment and Other		8,053			12,098			9,128			7,411
Total Loans Receivable		2,919,535			2,894,977			2,750,566			2,623,090
Allowance for Credit Losses		(32,113	)		(31,892	)		(30,448	)		(29,105	)
Loans Receivable, Net		2,887,422			2,863,085			2,720,118			2,593,985
Furniture, Equipment and Leasehold Improvements, Net		4,863			4,889			4,963			4,831
Bank/Corporate Owned Life Insurance		30,782			30,324			29,943			29,714
Other Assets		80,253			84,309			85,621			79,151
Total Assets	$	4,456,342		$	4,298,243		$	4,040,343		$	4,119,988

Liabilities:
Non-Interest Bearing Demand Deposits	$	1,872,827		$	1,776,642		$	1,644,635		$	1,745,491
Interest Bearing Transaction Accounts		449,797			427,758			388,154			376,033
Money Market and Savings Deposits		1,484,786			1,434,492			1,315,005			1,297,950
Certificates of Deposit		189,772			233,322			296,206			295,865
Total Deposits		3,997,182			3,872,214			3,644,000			3,715,339
Federal Home Loan Bank Advances / Other Borrowings		-			-			-			-
Other Liabilities		63,613			53,431			41,565			47,107
Total Liabilities	$	4,060,795		$	3,925,645		$	3,685,565		$	3,762,446

Shareholders' Equity:
Common Stock	$	200,863		$	202,723		$	210,345		$	209,679
Retained Earnings		252,621			240,534			220,023			207,523
Accumulated Other Comprehensive Income / (Loss)		(57,937	)		(70,659	)		(75,590	)		(59,660	)
Total Shareholders' Equity	$	395,547		$	372,598		$	354,778		$	357,542
Total Liabilities and Shareholders' Equity	$	4,456,342		$	4,298,243		$	4,040,343		$	4,119,988

Standby Letters of Credit	$	48,789		$	47,861		$	47,223		$	46,460

Per Share Information:
Common Shares Outstanding		8,919,548			8,968,494			9,102,461			9,101,654
Book Value Per Share	$	44.35		$	41.55		$	38.98		$	39.28
Tangible Book Value Per Share	$	44.35		$	41.55		$	38.98		$	39.28

American Business Bank
Figures in $000, except share and per share amounts

INCOME STATEMENTS (unaudited)

	For the three months ended:
	September			June			September
	2025			2025			2024
Interest Income:
Interest and Fees on Loans	$	41,368		$	39,619		$	35,513
Interest on Investment Securities		6,664			6,803			7,176
Interest on Interest Earning Deposits
in Other Financial Institutions		3,053			1,241			2,129
Total Interest Income		51,085			47,663			44,818

Interest Expense:
Interest on Interest Bearing Transaction Accounts		936			878			1,220
Interest on Money Market and Savings Deposits		8,528			7,918			9,083
Interest on Certificates of Deposits		1,780			2,088			2,785
Interest on Federal Home Loan Bank Advances
and Other Borrowings		-			-			363
Total Interest Expense		11,244			10,884			13,451

Net Interest Income		39,841			36,779			31,367
Provision for Credit Losses		171			363			-
Net Interest Income after Provision for Credit Losses		39,670			36,416			31,367

Non-Interest Income:
Deposit Fees		1,278			1,219			1,108
International Fees		361			382			433
Gain (Loss) on Sale of Investment Securities, Net		(2,555	)		(1,083	)		(587	)
Gain on Sale of SBA Loans, Net		-			185			187
Bank/Corporate Owned Life Insurance Income (Expense)		457			303			318
Other		686			434			454
Total Non-Interest Income		227			1,440			1,913

Non-Interest Expense:
Salaries and Employee Benefits		13,881			13,625			12,622
Occupancy and Equipment		1,383			1,355			1,206
Professional Services		2,258			2,346			2,172
Promotion Expenses		756			743			720
Other		1,604			1,688			1,565
Total Non-Interest Expense		19,882			19,757			18,285

Earnings before income taxes		20,015			18,099			14,995
Income Tax Expense		5,691			4,943			4,215

NET INCOME	$	14,324		$	13,156		$	10,780

Per Share Information:
Earnings Per Share - Basic	$	1.57		$	1.43		$	1.16

Earnings Per Share - Diluted	$	1.56		$	1.42		$	1.16

Weighted Average Shares - Basic		9,127,340			9,178,069			9,279,741

Weighted Average Shares - Diluted		9,209,491			9,242,984			9,318,868

American Business Bank
Figures in $000, except share and per share amounts

INCOME STATEMENTS (unaudited)
	For the nine months ended:
	September			September
	2025			2024
Interest Income:
Interest and Fees on Loans	$	118,471		$	103,535
Interest on Investment Securities		20,440			22,265
Interest on Interest Earning Deposits
in Other Financial Institutions		5,464			3,218
Total Interest Income		144,375			129,018

Interest Expense:
Interest on Interest Bearing Transaction Accounts		2,684			3,299
Interest on Money Market and Savings Deposits		24,073			24,247
Interest on Certificates of Deposits		6,236			7,481
Interest on Federal Home Loan Bank Advances
and Other Borrowings		1			4,164
Total Interest Expense		32,994			39,191

Net Interest Income		111,381			89,827
Provision for Credit Losses		1,396			224
Net Interest Income after Provision for Credit Losses		109,985			89,603

Non-Interest Income:
Deposit Fees		3,659			3,172
International Fees		1,113			1,257
Gain (Loss) on Sale of Investment Securities, Net		(4,080	)		(1,094	)
Gain on Sale of SBA Loans, Net		244			256
Bank/Corporate Owned Life Insurance Income (Expense)		839			816
Other		1,461			1,309
Total Non-Interest Income		3,236			5,716

Non-Interest Expense:
Salaries and Employee Benefits		40,384			36,323
Occupancy and Equipment		4,038			3,610
Professional Services		7,046			6,214
Promotion Expenses		2,219			1,927
Other		5,010			4,499
Total Non-Interest Expense		58,697			52,573

Earnings before income taxes		54,524			42,746
Income Tax Expense		15,157			11,970

NET INCOME	$	39,367		$	30,776

Per Share Information:
Earnings Per Share - Basic	$	4.28		$	3.32

Earnings Per Share - Diluted	$	4.25		$	3.31

Weighted Average Shares - Basic		9,196,222			9,258,937

Weighted Average Shares - Diluted		9,273,693			9,303,605

American Business Bank
Figures in $000

QUARTERLY AVERAGE BALANCE SHEETS AND YIELD ANALYSIS (unaudited)

	For the three months ended:
	September 2025						June 2025
	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	$	273,463	$	3,053	4.43	%	$	111,541	$	1,241	4.46	%

Investment Securities:
US Agencies		64,694		776	4.80	%		64,610		804	4.98	%
Mortgage Backed Securities		603,763		2,892	1.92	%		618,064		2,962	1.92	%
State and Municipals		452,198		2,504	2.21	%		457,717		2,528	2.21	%
Corporate Bonds		14,750		163	4.42	%		16,003		180	4.49	%
Securities Available-for-Sale and Held-to-Maturity		1,135,405		6,335	2.23	%		1,156,394		6,474	2.24	%
Federal Home Loan Bank Stock		15,000		329	8.76	%		15,000		329	8.76	%
Total Investment Securities		1,150,405		6,664	2.32	%		1,171,394		6,803	2.32	%
Loans Receivable:
Commercial Real Estate		2,132,576		28,680	5.34	%		2,111,852		27,741	5.27	%
Commercial and Industrial		549,476		9,467	6.84	%		514,569		8,623	6.72	%
Residential Real Estate		198,067		3,155	6.32	%		205,573		3,202	6.25	%
Installment and Other		9,214		66	2.83	%		9,546		53	2.23	%
Total Loans Receivable		2,889,333		41,368	5.68	%		2,841,540		39,619	5.59	%
Total Interest Earning Assets	$	4,313,201	$	51,085	4.63	%	$	4,124,475	$	47,663	4.57	%

Liabilities:
Non-Interest Bearing Demand Deposits		1,809,605		-	0.00	%		1,695,399		-	0.00	%
Interest Bearing Transaction Accounts		447,169		936	0.83	%		419,489		878	0.84	%
Money Market and Savings Deposits		1,453,229		8,528	2.33	%		1,369,208		7,918	2.32	%
Certificates of Deposit		219,979		1,780	3.21	%		269,409		2,088	3.11	%
Total Deposits		3,929,982		11,244	1.14	%		3,753,505		10,884	1.16	%
Federal Home Loan Bank Advances / Other Borrowings		-		-	-			1		-	4.59	%
Total Interest Bearing Deposits and Borrowings		2,120,377		11,244	2.10	%		2,058,107		10,884	2.12	%
Total Deposits and Borrowings	$	3,929,982	$	11,244	1.14	%	$	3,753,506	$	10,884	1.16	%

Net Interest Income			$	39,841					$	36,779
Net Interest Rate Spread					3.49	%					3.41	%
Net Interest Margin					3.66	%					3.58	%

American Business Bank
Figures in $000

QUARTERLY AVERAGE BALANCE SHEETS AND YIELD ANALYSIS (unaudited)


	For the three months ended:
	September 2025						September 2024
	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	$	273,463	$	3,053	4.43	%	$	156,041	$	2,129	5.43	%

Investment Securities:
US Agencies		64,694		776	4.80	%		76,670		1,045	5.45	%
Mortgage Backed Securities		603,763		2,892	1.92	%		650,264		3,032	1.87	%
State and Municipals		452,198		2,504	2.21	%		470,564		2,582	2.19	%
Corporate Bonds		14,750		163	4.42	%		16,250		188	4.63	%
Securities Available-for-Sale and Held-to-Maturity		1,135,405		6,335	2.23	%		1,213,748		6,847	2.26	%
Federal Home Loan Bank Stock		15,000		329	8.76	%		15,000		329	8.76	%
Total Investment Securities		1,150,405		6,664	2.32	%		1,228,748		7,176	2.34	%
Loans Receivable:
Commercial Real Estate		2,132,576		28,680	5.34	%		1,929,129		24,257	5.00	%
Commercial and Industrial		549,476		9,467	6.84	%		462,791		8,028	6.90	%
Residential Real Estate		198,067		3,155	6.32	%		196,130		3,164	6.42	%
Installment and Other		9,214		66	2.83	%		8,349		64	3.03	%
Total Loans Receivable		2,889,333		41,368	5.68	%		2,596,399		35,513	5.44	%
Total Interest Earning Assets	$	4,313,201	$	51,085	4.63	%	$	3,981,188	$	44,818	4.41	%

Liabilities:
Non-Interest Bearing Demand Deposits		1,809,605		-	0.00	%		1,671,657		-	0.00	%
Interest Bearing Transaction Accounts		447,169		936	0.83	%		394,184		1,220	1.23	%
Money Market and Savings Deposits		1,453,229		8,528	2.33	%		1,265,785		9,083	2.85	%
Certificates of Deposit		219,979		1,780	3.21	%		288,357		2,785	3.84	%
Total Deposits		3,929,982		11,244	1.14	%		3,619,983		13,088	1.44	%
Federal Home Loan Bank Advances / Other Borrowings		-		-	-			25,598		363	5.64	%
Total Interest Bearing Deposits and Borrowings		2,120,377		11,244	2.10	%		1,973,924		13,451	2.71	%
Total Deposits and Borrowings	$	3,929,982	$	11,244	1.14	%	$	3,645,581	$	13,451	1.47	%

Net Interest Income			$	39,841					$	31,367
Net Interest Rate Spread					3.49	%					2.94	%
Net Interest Margin					3.66	%					3.13	%

American Business Bank
Figures in $000

QUARTERLY AVERAGE BALANCE SHEETS AND YIELD ANALYSIS (unaudited)

	For the nine months ended:
	September 2025						September 2024
	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	$	164,396	$	5,464	4.44	%	$	79,252	$	3,218	5.42	%

Investment Securities:
US Agencies		66,378		2,467	4.96	%		82,882		3,500	5.63	%
Mortgage Backed Securities		617,578		8,880	1.92	%		662,348		9,360	1.88	%
State and Municipals		456,990		7,571	2.21	%		477,708		7,855	2.19	%
Corporate Bonds		15,662		526	4.48	%		16,250		565	4.63	%
Securities Available-for-Sale and Held-to-Maturity		1,156,608		19,444	2.24	%		1,239,188		21,280	2.29	%
Federal Home Loan Bank Stock		15,000		996	8.85	%		15,000		985	8.76	%
Total Investment Securities		1,171,608		20,440	2.33	%		1,254,188		22,265	2.37	%
Loans Receivable:
Commercial Real Estate		2,101,303		82,628	5.26	%		1,898,713		70,161	4.94	%
Commercial and Industrial		519,315		26,197	6.74	%		470,906		23,855	6.77	%
Residential Real Estate		201,579		9,455	6.27	%		196,348		9,323	6.34	%
Installment and Other		9,136		191	2.80	%		8,736		196	3.00	%
Total Loans Receivable		2,831,333		118,471	5.59	%		2,574,703		103,535	5.37	%
Total Interest Earning Assets	$	4,167,337	$	144,375	4.57	%	$	3,908,143	$	129,018	4.34	%

Liabilities
Non-Interest Bearing Demand Deposits		1,722,409		-	0.00	%		1,642,483		-	0.00	%
Interest Bearing Transaction Accounts		423,981		2,684	0.85	%		386,897		3,299	1.14	%
Money Market and Savings Deposits		1,388,571		24,073	2.32	%		1,179,180		24,247	2.75	%
Certificates of Deposit		261,388		6,236	3.19	%		268,489		7,481	3.72	%
Total Deposits		3,796,349		32,993	1.16	%		3,477,049		35,027	1.35	%
Federal Home Loan Bank Advances / Other Borrowings		44		1	4.50	%		103,433		4,164	5.38	%
Total Interest Bearing Deposits and Borrowings		2,073,984		32,994	2.13	%		1,937,999		39,191	2.70	%
Total Deposits and Borrowings	$	3,796,393	$	32,994	1.16	%	$	3,580,482	$	39,191	1.46	%

Net Interest Income			$	111,381					$	89,827
Net Interest Rate Spread					3.41	%					2.88	%
Net Interest Margin					3.57	%					3.07	%

American Business Bank
Figures in $000

SUPPLEMENTAL DATA (unaudited)

	September			June			December			September
	2025			2025			2024			2024
Performance Ratios:
Quarterly:
Return on Average Assets (ROAA)		1.31	%		1.26	%		1.21	%		1.07	%
Return on Average Equity (ROAE)		15.09	%		14.34	%		14.03	%		12.64	%
Efficiency Ratio		46.53	%		50.01	%		48.07	%		53.20	%

Year-to-Date
Return on Average Assets (ROAA)		1.24	%		1.21	%		1.08	%		1.04	%
Return on Average Equity (ROAE)		14.21	%		13.76	%		13.02	%		12.66	%
Efficiency Ratio		49.22	%		50.73	%		52.46	%		54.13	%

Capital Adequacy:
Total Risk Based Capital Ratio		12.96	%		12.80	%		13.02	%		12.99	%
Common Equity Tier 1 Capital Ratio		12.09	%		11.92	%		12.14	%		12.11	%
Tier 1 Risk Based Capital Ratio		12.09	%		11.92	%		12.14	%		12.11	%
Tier 1 Leverage Ratio		10.22	%		10.45	%		10.21	%		10.17	%
Tangible Common Equity / Tangible Assets		8.88	%		8.67	%		8.78	%		8.68	%

Asset Quality Overview
Non-Performing Loans	$	11,733		$	11,553		$	8,830		$	6,969
Loans 90+ Days Past Due and Still Accruing		-			-			-			-
Total Non-Performing Loans		11,733			11,553			8,830			6,969

Loans Modified with Financial Difficulty	$	5,714		$	6,434		$	5,573		$	4,120

Other Real Estate Owned		-			-			-			-

ACL / Loans Receivable		1.10	%		1.10	%		1.11	%		1.11	%
Non-Performing Loans / Total Loans Receivable		0.40	%		0.40	%		0.32	%		0.27	%
Non-Performing Assets / Total Assets		0.26	%		0.27	%		0.22	%		0.17	%
Net Charge-Offs (Recoveries) quarterly	$	-		$	-		$	7		$	4
Net Charge-Offs (Recoveries) year-to-date	$	-		$	-		$	(148	)	$	(155	)
Net Charge-Offs (Recoveries) year-to-date / Average		0.00	%		0.00	%		(0.01	%)		(0.01	%)
Loans Receivable