American Business Bank Q3 net income rises as margin expands
AMBZ•American Business Bank reported Q3 net income of $17.20 million and net interest income of $44.80 million. Net interest margin rose to 3.99% from 3.66% a year earlier; the bank paid a $1.00-per-share special dividend and authorized a new share repurchase program.
1. Q3 results
American Business Bank’s Q3 net income and earnings per share rose sharply year over year. Net interest margin expanded to 3.99% from 3.66% a year earlier, while net interest income was $44.80 million and net income was $17.20 million.
2. Growth and capital returns
The bank said higher average loan balances, increased loan yields and lower deposit costs drove net interest income growth. Loan growth was mainly in owner-occupied commercial real estate loans to existing customers. The company paid a $1.00-per-share special dividend and authorized a new share repurchase program.
3. Outlook
American Business Bank expects to finish the year strongly, citing a solid new-customer pipeline and continued deposit growth from new and existing customers. It expects net loan growth to be lower this year than last year.
