American Business Bank Reports Record Quarterly Earnings of $17.2 Million

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Earnings per share for the quarter increased 21% over the prior year quarter

Third Quarter 2026 Highlights

• Net income for the quarter totaled $17.2 million, or $1.89 per diluted share
• Net interest margin expanded to 3.99% from 3.66% in the prior year quarter
• Core Deposits increased $150 million or 4% over the prior quarter
• Total Deposits increased to a record balance of $4.1 billion
• Cost of average deposits of 0.98%
• Non-interest bearing demand deposits represent 46% of total deposits
• Total loans increased $27 million or 0.9% over the prior quarter
• Minimal past due loans
• No borrowings during the third quarter
• Return on Average Assets of 1.53%
• Return on Average Equity of 15.81%
• Quarterly cash dividend paid on common stock of $0.30 per share
• Special cash dividend paid on common stock of $1.00 per share
• Continued status as well-capitalized, the highest regulatory category

LOS ANGELES--(BUSINESS WIRE)-- AMERICAN BUSINESS BANK (OTCQX: AMBZ) today reported net income of $17.2 million or $1.89 per fully diluted share for the quarter ended September 30, 2026 compared to $16.2 million or $1.77 per fully diluted share for the quarter ended June 30, 2026, and $14.3 million or $1.56 per fully diluted share for the quarter ended September 30, 2025, representing an increase of 6% and 20%, respectively.

“We are pleased to report surpassing $4 Billion in total deposits. As one of the five founders of the Bank in 1998, it was hard to imagine such an accomplishment. We have achieved this by building relationships one at a time, not just through listing client rosters. This success could not have been realized without our excellent clients and great ABB team, which I thank profusely. The quarter also showed record earnings, increased net interest income, continued earnings per share growth, and a return on equity again exceeding 15%. We accomplish this by providing best in class service and treating each business client as a partner,” said Leon Blankstein, Chief Executive Officer, President, and Director.

“Another first this quarter was rewarding shareholders with a special cash dividend of $1.00 per share in addition to the regular quarterly cash dividend. During the quarter the company announced its third repurchase program as we believe the stock provides attractive long-term returns. We expect to finish the year strongly as the pipeline of new customer relationships remains solid. Deposit growth has originated from both new and existing customers which continues to bode well for the growth of the franchise. The Bank is well positioned to navigate continued macroeconomic uncertainty as our clients remain cautious and selective in pursuing expansion opportunities. As a result, we expect net loan growth to be lower this year than last year. While asset quality metrics remain favorable, management continues to closely monitor potential credit deterioration and trends. Strong capital, liquidity, and reserve levels position the Bank to support clients and maintain financial strength. I would like to thank the entire ABB team for their ongoing commitment and our shareholders for their continued confidence and support.”

For the quarter ended September 30, 2026, net interest income was $44.8 million, a 12.5% increase compared to the prior year quarter. The higher balance of average loans 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 1.11% at September 30, 2026 and June 30, 2026. A provision of $0.4 million was recorded for the quarter to increase the allowance for credit losses primarily due to growth in the loan portfolio.

We continue to opportunistically sell investment securities with longer duration and below market yields. The following table presents net income excluding the after-tax losses on sales of investment securities to arrive at core net income:

	Three Months Ended									Nine Months Ended
	September 30, 2026			June 30, 2026			September 30, 2025			September 30, 2026			September 30, 2025
(Figures in $000s, except per share amounts)
Net Income	$	17,241		$	16,239		$	14,324		$	49,341		$	39,367
Excluding After-Tax
Net Losses on Sale of Investment Securities		2,549			863			1,828			4,452			2,946
Core Net Income	$	19,790		$	17,102		$	16,152		$	53,793		$	42,313
Core Earnings after taxes per share - Diluted	$	2.16		$	1.87		$	1.75		$	5.87		$	4.56

For the nine months ended September 30, 2026, net income was higher compared to the nine months ended September 30, 2025 due to higher average balance of loans, increase in loan yields and a decrease in the cost of deposits.

Net Interest Margin

The net interest margin for the third quarter of 2026 increased to 3.99% from 3.92% for the prior quarter primarily due to an increase in the balance of interest earning deposits with other financial institutions, higher loan rates, a special FHLB dividend ($178 thousand) and net interest and fees from the payoff of non-accrual loans. The core net interest margin for the quarter was 3.95%, an increase from 3.66% for the prior year quarter. The increase compared to the prior year quarter is primarily due to an increase in the balance of average loans, a higher loan to deposit ratio and a positive mix change in deposits. As of September 30, 2026, 53% of the loan portfolio was fixed rate with a weighted average remaining life of 57 months. In the next 12 months, $120 million of fixed rate loans currently yielding 4.7% will mature, and $72 million of hybrid loans currently yielding 4.3% will reprice. Approximately 47% of variable rate loans are indexed to prime of which $630 million are adjustable within 90 days of a change in the prime rate.

Net Interest Income

For the quarter ended September 30, 2026, net interest income increased by $2.6 million, or 6%, compared to the quarter ended June 30, 2026 primarily due to an increase in interest earning deposits with other financial institutions as a result of deposit growth and an increase in loans at higher interest rates and an additional day in the quarter. Net yield on interest earning assets increased to 4.81% compared to 4.74% in the prior quarter. Compared to the quarter ended September 30, 2025, net interest income increased by $5.0 million, or 12%, in the quarter ended September 30, 2026. The increase in net interest income is due to an increase in the average balance of loans with higher interest rates and a decrease in the cost of deposits. For the quarter ended September 30, 2026, June 30, 2026 and September 30, 2025, the cost of deposits was 0.98%, 0.97% and 1.14%, respectively. The loan-to-deposit ratio was 78%, 79% and 73% as of September 30, 2026, June 30, 2026 and September 30, 2025, 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, 2026			June 30, 2026			September 30, 2025					September 30, 2026			September 30, 2025
(Figures in $000s)
Addition (recapture) to allowance for loan losses		$	300		$	368		$	221				$	1,630		$	1,665
Addition (recapture) to reserve for unfunded loan commitments			110			-			(50	)				173			(269	)
Total loan-related provision		$	410		$	368		$	171				$	1,803		$	1,396
Addition to allowance for held-to-maturity securities			-			-			-					-			-
Total provision for credit losses		$	410		$	368		$	171				$	1,803		$	1,396

Non-Interest Income

The decrease in non-interest income compared to the prior quarter and the prior year quarter is primarily due to the sale of lower yielding investment securities offset by insurance benefit proceeds on BOLI of $681 thousand.

For the nine months ended September 30, 2026, non-interest income decreased compared to the same period a year ago, primarily due to an increase in CDARS placement fees, the one-time BOLI benefit and deposit fees offset by the sale of lower yielding investment securities.

Non-Interest Expense

For the quarter ended September 30, 2026, total non-interest expense decreased $0.7 million compared to the prior quarter. The decrease from the prior quarter was primarily attributable to a decrease in employee salaries and benefits, including a $432 thousand reduction in deferred compensation plan (DCP) expenses, along with lower legal expenses and employment agency fees. Total non-interest expense increased $0.8 million for the quarter ended September 30, 2026 compared to the prior year quarter mainly due to the increase in professional services. The efficiency ratio was 43% for the third quarter of 2026, 47% for the second quarter of 2026 and 47% for the third quarter of 2025.

For the nine months ended September 30, 2026, non-interest expense increased by $4.0 million or 7% compared to the same period a year ago, mainly due to increases in salaries and employee benefits and professional services which would include additional technology expenses in 2026.

There were 244 full-time equivalent employees at September 30, 2026 compared to 250 at June 30, 2026 and 256 at September 30, 2025. The Bank currently has 41 relationship managers in ten offices compared to 42 relationship managers at June 30, 2026 and 45 at September 30, 2025.

Income Taxes

The effective income tax rate was 27.3% for the quarter ended September 30, 2026, 26.8% for the quarter ended June 30, 2026, and 28.4% for the quarter ended September 30, 2025. The effective tax rate decreased from the prior year quarter primarily due to discrete tax benefits associated with the one time insurance benefit proceeds. The effective income tax rate for the year to date period is 26.6%.

Balance Sheet

For the quarter ended September 30, 2026, total loans increased $27 million, or 1% compared to the prior quarter. The majority of this quarter’s increase in loan balances was in owner-occupied commercial real estate loans, primarily due to loans to existing customers. The utilization rate for the Bank’s commercial lines of credit was 29% at September 30, 2026, June 30, 2026, and September 30, 2025.

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

		September 30, 2026			June 30, 2026
(Figures in $000s)
Owner-occupied		$	1,415,246		$	1,369,327
Non-owner occupied			765,660			770,999
Construction & Land			76,320			94,366
Total CRE Loans		$	2,257,226		$	2,234,693

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

		September 30, 2026							June 30, 2026
		Owner-occupied			Non owner-occupied				Owner-occupied			Non owner-occupied
(Figures in $000s)
Industrial		$	893,001		$	316,050			$	869,744		$	323,108
Office			182,356			101,271				175,370			101,173
Retail			28,359			189,967				28,611			189,143
Automobile Service Facilities			65,794			29,541				66,372			28,137
Contractor's Yard			98,470			18,357				81,601			18,325
School			38,550			-				37,873			-
Storage			-			10,810				-			10,877
Miscellaneous			108,715			99,663				109,755			100,237
Total		$	1,415,246		$	765,660			$	1,369,327		$	770,999

Total investment securities at September 30, 2026 were $0.9 billion including $483 million (48%) 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 5.6 years as of September 30, 2026, 5.4 years as of June 30, 2026, and 5.8 years as of September 30, 2025. Accumulated other comprehensive loss (AOCI) increased to $59.3 million as of September 30, 2026, from $50.9 million as of June 30, 2026 and from $57.9 million as of September 30, 2025 as market rates relevant to securities pricing increased. The duration of the held-to-maturity portfolio, which consists primarily of municipal securities, is 8.4 years. As of September 30, 2026, the unrealized after-tax loss on HTM securities was $77 million.

Deposits increased $113 million or 3% to $4.1 billion in the quarter ended September 30, 2026. The increase in the quarter was a result of increases of $44 million in non-interest bearing demand deposits and $122 million in money market and savings deposits offset by a decrease of $36.6 million in customer certificates of deposit. For the nine months ended September 30, 2026, new deposit relationships have totaled approximately $91 million from 111 new clients. The Bank has never had brokered or internet-solicited deposits. The ratio of non-interest bearing deposits to total deposits was 46% at September 30, 2026 and June 30, 2026, and 47% September 30, 2025.

During the third quarter of 2026, total assets increased $112 million, total investment securities decreased by $48 million, total loans increased by $27 million, and total deposits increased by $113 million. As of September 30, 2026, the Bank has $1.5 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 during the third quarter of 2026.

Capital Management

For the quarter ended September 30, 2026, total shareholders’ equity decreased by $3 million to $434 million primarily driven by the increase in Accumulated Other Comprehensive Loss related to investment securities due to the increase in market rates in the quarter. During the quarter, the Bank declared and paid a regular quarterly cash dividend of $0.30 per share, totaling $2.7 million, and a special cash dividend of $1.00 per share, totaling $8.9 million.

The following table presents a summary of quarterly cash dividends for 2026:

	Dividend Declared			Payment Date
(Figures in $000s)
March 31, 2026	$	2,721		March 18, 2026
June 30, 2026		2,721		June 16, 2026
September 30, 2026		11,784		September 15, 2026
Total cash dividends	$	17,226

For the quarter ended September 30, 2026, the Bank repurchased 15,000 shares of common stock at a weighted average price of $72.50, totaling $1.1 million. In August 2026, the Bank completed its second stock repurchase program. In September 2026, the Bank’s Board of Directors authorized a third stock repurchase program for 288,555 shares, or approximately 3.25% of the Bank’s outstanding shares of common stock, which expires in October 2027. The third repurchase program has received all necessary regulatory approvals and no shares have been repurchased under this program.

The following table presents a summary of quarterly stock repurchases for 2026:

	Shares		Weighted Average Price
March 31, 2026	15,000		$	69.60
June 30, 2026	31,500			72.05
September 30, 2026	15,000			72.50
Total shares repurchased	61,500		$	71.56

Asset Quality

The following table presents an overview of asset quality:

	September 30, 2026				June 30, 2026
(Figures in $000s)
Non-performing assets (NPA)	$	15,654			$	13,624
Loans 90+ days past due and still accruing		-				-
Total NPA	$	15,654			$	13,624
NPA as a % of total assets		0.35	%			0.31	%
Past due loans 30 to 89 days	$	150			$	3,639
Criticized Loans		152,446				135,683
Classified Loans		41,042				31,986
Past Due as a % of total loans		0.00	%			0.12	%
Criticized as a % of total loans		4.84	%			4.34	%
Classified as a % of total loans		1.30	%			1.02	%

During the third quarter of 2026, non-performing assets increased by $2 million due to the addition of two relationships offset by the pay-off of three relationships. Non-performing loans of $2 million that was added in the quarter was fully paid off in October 2026. There is no single industry predominate in the NPA portfolio. As of September 30, 2026, NPAs have a $667 thousand allowance on individually evaluated loans related to five non-performing C&I loans.

“The increase in criticized and classified loans in the quarter is primarily due to an $11 million non-owner occupied property with adequate collateral. In October 2026, the Bank received a demand on this credit and demands to fully pay off an additional $3.5 million of NPAs. Additionally, NPAs of $2 million that were added in the quarter were fully paid off in October 2026,” commented Jeffrey Munson, Executive Vice President and Chief Credit Officer (CCO).

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 68% of total loans while non-owner occupied represent 24% of total loans.

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, 2026				June 30, 2026				September 30, 2025				September 30, 2026				September 30, 2025
(Figures in $000s)
Balance, beginning of period	$	34,778			$	34,465			$	31,892			$	33,502			$	30,448
Charge-offs		-				(58	)			-				(58	)			-
Recoveries		9				3				-				13				-
Net (charge-offs) / recoveries	$	9			$	(55	)		$	-			$	(45	)		$	-
Provision		300				368				221				1,630				1,665
Balance, end of period	$	35,087			$	34,778			$	32,113			$	35,087			$	32,113
Allowance as a % of loans		1.11	%			1.11	%			1.10	%			1.11	%			1.10	%

The allowance for credit losses for loans increased to $35.1 million during the third quarter of 2026 as a result of growth in the loan portfolio. There were no charge-offs and recoveries of $9 thousand in the third quarter of 2026. Four relationships totaling $15.7 million were restructured in the past twelve months 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
		2026				2026				2025				2025
Assets:
Cash and Due from Banks	$	71,970			$	106,190			$	36,066			$	99,665
Interest Earning Deposits in Other Financial Institutions		284,810				111,591				209,463				300,246
Investment Securities:
US Agencies		62,531				59,390				66,043				64,091
Mortgage Backed Securities		310,838				326,865				348,912				362,735
State and Municipals		59,872				66,405				65,799				66,331
Corporate Bonds		5,092				8,846				10,633				13,780
Securities Available-for-Sale, at Fair Value		438,333				461,506				491,387				506,937
Mortgage Backed Securities		145,826				149,008				154,528				157,398
State and Municipals		337,302				358,637				373,302				373,831
Allowance for Credit Losses, Held-To-Maturity		(55	)			(55	)			(55	)			(55	)
Securities Held-to-Maturity, at Amortized Cost,		483,073				507,590				527,775				531,174
Net of Allowance for Credit Losses
Federal Home Loan Bank Stock, at Cost		15,000				15,000				15,000				15,000
Total Investment Securities		936,406				984,096				1,034,162				1,053,111
Loans Receivable:
Commercial Real Estate		2,257,226				2,234,693				2,251,971				2,168,876
Commercial and Industrial		714,852				706,532				602,481				564,098
Residential Real Estate		170,868				173,810				183,434				178,508
Installment and Other		8,451				9,660				7,993				8,053
Total Loans Receivable		3,151,397				3,124,695				3,045,879				2,919,535
Allowance for Credit Losses		(35,087	)			(34,778	)			(33,502	)			(32,113	)
Loans Receivable, Net		3,116,310				3,089,917				3,012,377				2,887,422
Furniture, Equipment and Leasehold Improvements, Net		4,075				4,209				4,726				4,863
Bank/Corporate Owned Life Insurance		31,123				31,664				31,028				30,782
Other Assets		84,929				89,708				78,771				80,253
Total Assets	$	4,529,623			$	4,417,375			$	4,406,593			$	4,456,342
Liabilities:
Non-Interest Bearing Demand Deposits	$	1,856,809			$	1,812,871			$	1,781,419			$	1,872,827
Interest Bearing Transaction Accounts		452,369				468,165				496,248				449,797
Money Market and Savings Deposits		1,615,255				1,493,502				1,520,563				1,484,786
Certificates of Deposit		127,062				163,670				155,823				189,772
Total Deposits		4,051,495				3,938,208				3,954,053				3,997,182
Federal Home Loan Bank Advances / Other Borrowings		-				-				-				-
Other Liabilities		44,501				42,478				41,415				63,613
Total Liabilities	$	4,095,996			$	3,980,686			$	3,995,468			$	4,060,795
Shareholders' Equity:
Common Stock	$	195,722			$	195,915			$	198,957			$	200,863
Retained Earnings		297,166				291,708				265,050				252,621
Accumulated Other Comprehensive Income / (Loss)		(59,261	)			(50,934	)			(52,882	)			(57,937	)
Total Shareholders' Equity	$	433,627			$	436,689			$	411,125			$	395,547
Total Liabilities and Shareholders' Equity	$	4,529,623			$	4,417,375			$	4,406,593			$	4,456,342
Standby Letters of Credit	$	58,044			$	42,612			$	32,472			$	48,789
Per Share Information:
Common Shares Outstanding		8,865,298				8,878,621				8,873,452				8,919,548
Book Value Per Share	$	48.91			$	49.18			$	46.33			$	44.35
Tangible Book Value Per Share	$	48.90			$	49.17			$	46.33			$	44.35

American Business Bank
Figures in $000, except share and per share amounts
INCOME STATEMENTS (unaudited)
	For the three months ended:
	September				June				September
		2026				2026				2025
Interest Income:
Interest and Fees on Loans	$	45,561			$	44,185			$	41,368
Interest on Investment Securities		6,197				6,067				6,664
Interest on Interest Earning Deposits in Other Financial Institutions		2,984				1,363				3,053
Total Interest Income		54,742				51,615				51,085
Interest Expense:
Interest on Interest Bearing Transaction Accounts		758				915				936
Interest on Money Market and Savings Deposits		8,310				7,524				8,528
Interest on Certificates of Deposits		863				1,009				1,780
Interest on Federal Home Loan Bank Advances and Other Borrowings		-				-				-
Total Interest Expense		9,931				9,448				11,244
Net Interest Income		44,811				42,167				39,841
Provision for Credit Losses		410				368				171
Net Interest Income after Provision for Credit Losses		44,401				41,799				39,670
Non-Interest Income:
Deposit Fees		1,415				1,396				1,278
International Fees		234				260				361
Gain (Loss) on Sale of Investment Securities, Net		(3,507	)			(1,179	)			(2,555	)
Gain on Sale of SBA Loans, Net		-				-				-
Bank/Corporate Owned Life Insurance Income (Expense)		831				587				457
Other		1,000				706				686
Total Non-Interest Income		(27	)			1,770				227
Non-Interest Expense:
Salaries and Employee Benefits		13,897				14,352				13,881
Occupancy and Equipment		1,451				1,430				1,383
Professional Services		2,742				3,096				2,258
Promotion Expenses		835				764				756
Other		1,729				1,750				1,604
Total Non-Interest Expense		20,654				21,392				19,882
Earnings before income taxes		23,720				22,177				20,015
Income Tax Expense		6,479				5,938				5,691
NET INCOME	$	17,241			$	16,239			$	14,324
Per Share Information:
Earnings Per Share - Basic	$	1.90			$	1.79			$	1.57
Earnings Per Share - Diluted	$	1.89			$	1.77			$	1.56
Weighted Average Shares - Basic		9,061,815				9,070,816				9,127,340
Weighted Average Shares - Diluted		9,145,089				9,161,267				9,209,491

American Business Bank
Figures in $000, except share and per share amounts
INCOME STATEMENTS (unaudited)
	For the nine months ended:
	September				September
		2026				2025
Interest Income:
Interest and Fees on Loans	$	132,559			$	118,471
Interest on Investment Securities		19,130				20,440
Interest on Interest Earning Deposits in Other Financial Institutions		5,690				5,464
Total Interest Income		157,379				144,375
Interest Expense:
Interest on Interest Bearing Transaction Accounts		2,666				2,684
Interest on Money Market and Savings Deposits		23,124				24,073
Interest on Certificates of Deposits		2,917				6,236
Interest on Federal Home Loan Bank Advances and Other Borrowings		1				1
Total Interest Expense		28,708				32,994
Net Interest Income		128,671				111,381
Provision for Credit Losses		1,803				1,396
Net Interest Income after Provision for Credit Losses		126,868				109,985
Non-Interest Income:
Deposit Fees		4,191				3,659
International Fees		743				1,113
Gain (Loss) on Sale of Investment Securities, Net		(6,066	)			(4,080	)
Gain on Sale of SBA Loans, Net		219				244
Bank/Corporate Owned Life Insurance Income (Expense)		1,467				839
Other		2,456				1,461
Total Non-Interest Income		3,010				3,236
Non-Interest Expense:
Salaries and Employee Benefits		42,425				40,384
Occupancy and Equipment		4,283				4,038
Professional Services		8,435				7,046
Promotion Expenses		2,243				2,219
Other		5,270				5,010
Total Non-Interest Expense		62,656				58,697
Earnings before income taxes		67,222				54,524
Income Tax Expense		17,881				15,157
NET INCOME	$	49,341			$	39,367
Per Share Information:
Earnings Per Share - Basic	$	5.44			$	4.28
Earnings Per Share - Diluted	$	5.39			$	4.25
Weighted Average Shares - Basic		9,067,337				9,196,222
Weighted Average Shares - Diluted		9,161,531				9,273,693

American Business Bank
Figures in $000
QUARTERLY AVERAGE BALANCE SHEETS AND YIELD ANALYSIS (unaudited)
	For the three months ended:
	September 2026									June 2026
	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	$	315,860		$	2,984		3.75	%		$	147,663		$	1,363		3.70	%
Investment Securities:
US Agencies		60,095			687		4.58	%			60,894			670		4.40	%
Mortgage Backed Securities		536,144			2,632		1.96	%			549,503			2,686		1.96	%
State and Municipals		414,248			2,416		2.33	%			432,417			2,473		2.29	%
Corporate Bonds		8,196			106		5.16	%			10,159			110		4.32	%
Securities Available-for-Sale and Held-to-Maturity		1,018,683			5,841		2.29	%			1,052,973			5,939		2.26	%
Federal Home Loan Bank Stock		15,000			356		9.49	%			15,000			128		3.41	%
Total Investment Securities		1,033,683			6,197		2.40	%			1,067,973			6,067		2.27	%
Loans Receivable:
Commercial Real Estate		2,236,515			30,982		5.50	%			2,239,810			30,434		5.45	%
Commercial and Industrial		684,752			11,959		6.93	%			674,686			11,147		6.63	%
Residential Real Estate		169,569			2,550		5.97	%			171,222			2,518		5.90	%
Installment and Other		10,426			70		2.66	%			10,689			86		3.22	%
Total Loans Receivable		3,101,262			45,561		5.83	%			3,096,407			44,185		5.72	%
Total Interest Earning Assets	$	4,450,805		$	54,742		4.81	%		$	4,312,043		$	51,615		4.74	%
Liabilities:
Non-Interest Bearing Demand Deposits		1,867,977			-		0.00	%			1,790,166			-		0.00	%
Interest Bearing Transaction Accounts		458,986			758		0.66	%			474,533			915		0.77	%
Money Market and Savings Deposits		1,565,394			8,310		2.11	%			1,464,375			7,524		2.06	%
Certificates of Deposit		137,687			863		2.49	%			172,940			1,009		2.34	%
Total Deposits		4,030,044			9,931		0.98	%			3,902,014			9,448		0.97	%
Federal Home Loan Bank Advances / Other Borrowings		-			-		0.00	%			-			-		0.00	%
Total Interest Bearing Deposits and Borrowings		2,162,067			9,931		1.82	%			2,111,848			9,448		1.79	%
Total Deposits and Borrowings	$	4,030,044		$	9,931		0.98	%		$	3,902,014		$	9,448		0.97	%
Net Interest Income				$	44,811								$	42,167
Net Interest Rate Spread							3.83	%								3.77	%
Net Interest Margin							3.99	%								3.92	%

American Business Bank
Figures in $000
QUARTERLY AVERAGE BALANCE SHEETS AND YIELD ANALYSIS (unaudited)
	For the three months ended:
	September 2026									September 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	$	315,860		$	2,984		3.75	%		$	273,463		$	3,053		4.43	%
Investment Securities:
US Agencies		60,095			687		4.58	%			64,694			776		4.80	%
Mortgage Backed Securities		536,144			2,632		1.96	%			603,763			2,892		1.92	%
State and Municipals		414,248			2,416		2.33	%			452,198			2,504		2.21	%
Corporate Bonds		8,196			106		5.16	%			14,750			163		4.42	%
Securities Available-for-Sale and Held-to-Maturity		1,018,683			5,841		2.29	%			1,135,405			6,335		2.23	%
Federal Home Loan Bank Stock		15,000			356		9.49	%			15,000			329		8.76	%
Total Investment Securities		1,033,683			6,197		2.40	%			1,150,405			6,664		2.32	%
Loans Receivable:
Commercial Real Estate		2,236,515			30,982		5.50	%			2,132,576			28,680		5.34	%
Commercial and Industrial		684,752			11,959		6.93	%			549,476			9,467		6.84	%
Residential Real Estate		169,569			2,550		5.97	%			198,067			3,155		6.32	%
Installment and Other		10,426			70		2.66	%			9,214			66		2.83	%
Total Loans Receivable		3,101,262			45,561		5.83	%			2,889,333			41,368		5.68	%
Total Interest Earning Assets	$	4,450,805		$	54,742		4.81	%		$	4,313,201		$	51,085		4.63	%
Liabilities:
Non-Interest Bearing Demand Deposits		1,867,977			-		0.00	%			1,809,605			-		0.00	%
Interest Bearing Transaction Accounts		458,986			758		0.66	%			447,169			936		0.83	%
Money Market and Savings Deposits		1,565,394			8,310		2.11	%			1,453,229			8,528		2.33	%
Certificates of Deposit		137,687			863		2.49	%			219,979			1,780		3.21	%
Total Deposits		4,030,044			9,931		0.98	%			3,929,982			11,244		1.14	%
Federal Home Loan Bank Advances / Other Borrowings		-			-		0.00	%			-			-		0.00	%
Total Interest Bearing Deposits and Borrowings		2,162,067			9,931		1.82	%			2,120,377			11,244		2.10	%
Total Deposits and Borrowings	$	4,030,044		$	9,931		0.98	%		$	3,929,982		$	11,244		1.14	%
Net Interest Income				$	44,811								$	39,841
Net Interest Rate Spread							3.83	%								3.49	%
Net Interest Margin							3.99	%								3.66	%

American Business Bank
Figures in $000
QUARTERLY AVERAGE BALANCE SHEETS AND YIELD ANALYSIS (unaudited)
	For the nine months ended:
	September 2026									September 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	$	204,131		$	5,690		3.73	%		$	164,396		$	5,464		4.44	%
Investment Securities:
US Agencies		61,632			2,079		4.50	%			66,378			2,467		4.96	%
Mortgage Backed Securities		550,124			8,102		1.96	%			617,578			8,880		1.92	%
State and Municipals		429,105			7,376		2.29	%			456,990			7,571		2.21	%
Corporate Bonds		9,940			336		4.51	%			15,662			526		4.48	%
Securities Available-for-Sale and Held-to-Maturity		1,050,801			17,893		2.27	%			1,156,608			19,444		2.24	%
Federal Home Loan Bank Stock		15,000			1,237		11.00	%			15,000			996		8.85	%
Total Investment Securities		1,065,801			19,130		2.39	%			1,171,608			20,440		2.33	%
Loans Receivable:
Commercial Real Estate		2,237,795			91,180		5.45	%			2,101,303			82,628		5.26	%
Commercial and Industrial		665,857			33,497		6.73	%			519,315			26,197		6.74	%
Residential Real Estate		172,235			7,663		5.95	%			201,579			9,455		6.27	%
Installment and Other		10,616			219		2.76	%			9,136			191		2.80	%
Total Loans Receivable		3,086,503			132,559		5.74	%			2,831,333			118,471		5.59	%
Total Interest Earning Assets	$	4,356,435		$	157,379		4.76	%		$	4,167,337		$	144,375		4.57	%
Liabilities:
Non-Interest Bearing Demand Deposits		1,813,081			-		0.00	%			1,722,409			-		0.00	%
Interest Bearing Transaction Accounts		475,263			2,666		0.75	%			423,981			2,684		0.85	%
Money Market and Savings Deposits		1,498,577			23,124		2.06	%			1,388,571			24,073		2.32	%
Certificates of Deposit		159,574			2,917		2.44	%			261,388			6,236		3.19	%
Total Deposits		3,946,495			28,707		0.97	%			3,796,349			32,993		1.16	%
Federal Home Loan Bank Advances / Other Borrowings		20			1		3.76	%			44			1		4.50	%
Total Interest Bearing Deposits and Borrowings		2,133,434			28,708		1.80	%			2,073,984			32,994		2.13	%
Total Deposits and Borrowings	$	3,946,515		$	28,708		0.97	%		$	3,796,393		$	32,994		1.16	%
Net Interest Income				$	128,671								$	111,381
Net Interest Rate Spread							3.79	%								3.41	%
Net Interest Margin							3.95	%								3.57	%

American Business Bank
Figures in $000
SUPPLEMENTAL DATA (unaudited)
	September				June				December				September
		2026				2026				2025				2025
Performance Ratios:
Quarterly:
Return on Average Assets (ROAA)		1.53	%			1.48	%			1.33	%			1.31	%
Return on Average Equity (ROAE)		15.81	%			15.11	%			14.68	%			15.09	%
Efficiency Ratio		43.00	%			47.42	%			43.69	%			46.53	%
Year-to-Date
Return on Average Assets (ROAA)		1.49	%			1.47	%			1.27	%			1.24	%
Return on Average Equity (ROAE)		15.32	%			15.07	%			14.34	%			14.21	%
Efficiency Ratio		45.61	%			47.02	%			47.71	%			49.22	%
Capital Adequacy:
Total Risk Based Capital Ratio		13.31	%			13.24	%			13.00	%			12.96	%
Common Equity Tier 1 Capital Ratio		12.41	%			12.35	%			12.11	%			12.09	%
Tier 1 Risk Based Capital Ratio		12.41	%			12.35	%			12.11	%			12.09	%
Tier 1 Leverage Ratio		10.79	%			11.01	%			10.29	%			10.22	%
Tangible Common Equity / Tangible Assets		9.57	%			9.88	%			9.33	%			8.87	%
Asset Quality Overview
Non-Performing Loans	$	15,654			$	13,624			$	11,953			$	11,733
Loans 90+ Days Past Due and Still Accruing		-				-				-				-
Total Non-Performing Loans		15,654				13,624				11,953				11,733
Loans Modified with Financial Difficulty	$	15,734			$	4,825			$	5,028			$	5,714
Other Real Estate Owned		-				-				-				-
ACL / Loans Receivable		1.11	%			1.11	%			1.10	%			1.10	%
Non-Performing Loans / Total Loans Receivable		0.50	%			0.44	%			0.39	%			0.40	%
Non-Performing Assets / Total Assets		0.35	%			0.31	%			0.27	%			0.26	%
Net Charge-Offs (Recoveries) quarterly	$	(9	)		$	54			$	5			$	-
Net Charge-Offs (Recoveries) year-to-date	$	45			$	54			$	5			$	-
Net Charge-Offs (Recoveries) year-to-date / Average Loans Receivable		0.00	%			0.00	%			0.00	%			0.00	%

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20261028238492/en/

Karen Schoenbaum
EVP/CFO
(213) 430-4000
www.americanbb.bank

Source: American Business Bank