American Business Bank Announces 2006 Year-End Earnings.

LOS ANGLES -- American Business Bank (OTCBB:AMBZ) today announced that its total assets rose to $535 million at year-end 2006, a 5 percent increase from $506 million a year ago.

The bank also reported that its unaudited net earnings for 2006 were $5 million, as compared to $5.2 million the bank earned a year ago. This included a charge of $281,626 for options expense that were required as a result of a change in financial reporting requirements under FASB 123.

"Last year was an important time of building for American Business Bank, as we either opened or began construction on loan production offices in the San Fernando Valley, South Bay and Inland Empire. We also hired new senior professionals throughout the bank, including a new investment officer and a new information technology manager," said Donald P. Johnson, president and chief executive officer of Los Angeles-based American Business Bank. "We're confident that these investments in the bank will pave the way toward improved growth in the years to come."

In 2006, total deposits grew to $486 million, a 6 percent increase from the prior year. Total loans (net of reserves) grew to $221 million, a 19 percent increase from year-end 2005.

"We're very pleased that we were able to increase customer deposits in the midst of a highly competitive business banking market, as this reflects continued gains in overall market share. Additionally, despite interest rate pressures, the bank was able to produce a 1% return on assets and a return on equity of over 15%," said Robert F. Schack, chairman of American Business Bank. "As we start 2007, our asset quality is excellent and our balance sheet is extremely strong. We're confident that the investments we made in hiring more senior professionals and the development of loan production offices in three Southland business communities will help drive our growth next year and beyond."

Founded in 1998, American Business Bank offers a wide range of financial services to businesses in the middle market. Clients include wholesalers, manufacturers, service businesses, professionals and non-profit organizations. The bank is headquartered in downtown Los Angeles and can be found on the Internet at www.americanbusinessbank.com.