American Business Bank · OTC:AMBZ
American Business Bank — Q2 2026 Earnings Presentation
35 slides from American Business Bank's earnings presentation, August 2026
Slide 1: Investor Presentation – June 30, 2026 Results
Investor Presentation OTCQX: AMBZ June 30, 2026 Results
Slide 2: Forward-Looking Statement
Forward-Looking Statement 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 f
Slide 3: Corporate Overview
Corporate Overview • American Business Bank (“AMBZ”) was founded in September 1998 to provide “high touch” banking services to small to medium size businesses in Southern California • AMBZ offers its banking services to closely-held businesses with $10-$200 million in revenue • In twenty-seven years
Slide 4: ABB Ranking by Asset Size
ABB Ranking by Asset Size ABB ranks 10th of the 55 banking institutions headquartered in the six-county area of Los Angeles, Orange, Ventura, San Bernardino, Riverside and San Diego counties ABB ranks 22nd of the 102 banking institutions headquartered in California ABB ranks 279th of the 3,704 Unite
Slide 5: Leadership Team
Leadership Team Key Founders: Executives: Karen Schoenbaum, EVP CFO, Leon Blankstein, President & CEO, 8+ years ABB Tenure Director Jeffrey Munson, EVP CCO, 8+ years ABB Tenure David Wolf, EVP CB, Don Johnson, Former CEO, Director 23+ years ABB Tenure Christopher Basirico, EVP CB, 14+ years ABB Tenu
Slide 6: HQ and LPO Locations
HQ and LPO Locations • Los Angeles (Headquarters) • 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 • LA Coastal in Long Beach • North County in San Diego • Riversid
Slide 7: AMBZ’s Client Focus & Target Market
AMBZ’s Client Focus & Target Market Client Focus (1) Marketplace – Top 5 MSAs Businesses with ■ Private companies with revenues $10 MSA <500 employees million to $200 million and their key executives New York-Newark-Jersey City, NY-NJ 501,587 Los Angeles-Long Beach-Anaheim, CA 366,764 Chicago-Naperv
Slide 8: AMBZ’s Target Market – California Top 10 MSAs
AMBZ’s Target Market – California Top 10 MSAs • Sorted by businesses with 500 or fewer employees • AMBZ service areas highlighted in blue, along with respective number of businesses in these markets 8
Slide 9: Target Industries
Target Industries Who We Serve Who We Don’t Serve • Wholesalers • Hi-tech • Manufacturers • Movie finance • Service businesses • Heavy retail • Contractors • Venture capital • Professionals • Spec real estate developers • Non-Profits • Marijuana RB’s and SB’s • Real estate investors 9
Slide 10: How We Do It
How We Do It • Emphasize acquisition of new relationships as the key growth driver for our business • Leverage relationship-based banking approach and superior service • Personalized and responsive service – no “800” number, customer service delivered by dedicated relationship managers • Grow low-co
Slide 11: Our Operating Principle
Our Operating Principle Happy Happy Happy Shareholders Customers Employees • Identify, attract, develop and retain high performing talented Relationship Managers • Active Community Involvement 11
Slide 12: Financial Highlights
Financial Highlights Year Ended December 31, YTD June 30, Quarter Ended, ($000 except per share data) 2022 2023 2024 2025 2026 9/30/2025 12/31/2025 3/31/2026 6/30/2026 Summary Balance Sheet: Total Assets $ 3,840,762 $ 3,902,724 $ 4,040,343 $ 4,406,593 $ 4,417,375 $ 4,456,342 $ 4,406,593 $ 4,371,214
Slide 13: Financial Highlights - Continued
Financial Highlights - Continued • Core Loan Growth $28 million or 1% • Total deposits increased by $34 million or 1% • Total core deposits increased by $57 million or 2% • Non-interest bearing demand deposits represent 46% of total deposits Q2 • No borrowings at the end of 2nd quarter • Cost of Dep
Slide 14: Earnings
Earnings Q2-2025 Q3-2025 Q4-2025 Q1-2026 Q2-2026 Interest Income $ 47,663 $ 51,085 $ 52,056 $ 51,022 $ 51,615 Interest Expense 10,884 11,244 10,255 9,329 9,448 Net Interest Income 36,779 39,841 41,801 41,693 42,167 Provision for Credit Losses 363 171 1,370 1,025 368 Net Interest Income After Provisi
Slide 15: Net Interest Margin Analysis
Net Interest Margin Analysis Yields on Interest-Earning Assets NIM Cost of Deposits 5.00% 4.63% 4.64% 4.74% 4.74% 4.57% 4.00% 3.93% 3.92% 3.66% 3.78% 3.58% 3.00% 2.00% 1.00% 1.16% 1.14% 1.02% 0.97% 0.97% 0.00% 2Q25 3Q25 4Q25 1Q26 2Q26 Yield/Rate 2Q25 3Q25 4Q25 1Q26 2Q26 Investments 2.32% 2.32% 2.34%
Slide 16: Operating Leverage Trend
Operating Leverage Trend ABB REV ABB OP EXP $50 $45 $40 $35 ($ IN MILLIONS) $30 $25 $20 $15 $10 $5 $0 1. Revenue = Net Interest Income + Non Interest Income. Excluding gains/losses on sale of securities and BOLI Income 2. Operating Expense excludes DCP ABB stocks investment results, DCP other funds
Slide 17: Peer Comparison – Fortress Balance Sheet
Peer Comparison – Fortress Balance Sheet Core Deposits / Total Deposits 105.0% 100.0% 96% 95.0% 90.0% 85.0% No Brokered or Internet Solicited 80.0% CD’s 75.0% 70.0% AMBZ Nationwide Banks $2B to $5B Western Banks $2B to $5B 17
Slide 18: Business Model – Deposits
Business Model – Deposits • For the quarter ended June 30, 2026, total cost of deposits was 0.97%; Cost of average deposits was 0.97% for the year • AMBZ provides a “high touch” strategy that focuses on capturing the deposit relationship first and foremost Time Deposits 4% Savings, Money Market & In
Slide 19: Deposits Composition
Deposits Composition Deposits by Relationship Size Deposits by Industry 10 years Average Size of Depositor Average Age of Relationships > $ 8 million $301,000 19
Slide 20: Balance Sheet History – Deposits
Balance Sheet History – Deposits • 90% Business Depositors Great Recession 20
Slide 21: Business Model – Assets
Business Model – Assets • Grow low-cost core deposit base to fund loan growth with excess funds invested in high-quality investments • AMBZ underwrites its loan portfolio based upon the cash flow of the underlying business. Asset values are primarily viewed as a secondary source of repayment • AMBZ’
Slide 22: Balance Sheet History – Loans
Balance Sheet History – Loans 79% Loans • Largest Outstanding Loan Relationship $42 million to Deposits Great Recession Total Real Estate Weighted Avg. Current LTV 42% 22
Slide 23: Business Model – Loans
Business Model – Loans • C&I Loans and Owner Occupied – CRE Loans Total 66% 1-4 Family 4% Construction CRE-Owner-occupied 3% 45% MultiFamily SBA 7a 2% $28MM 59% Guaranteed C&I 21% 88% of CRE NOO Loans with guarantors 87% of CRE NOO Loans with deposits CRE-Non Owner-occupied 25% Loan Portfolio Compos
Slide 24: CRE Loans by Collateral
CRE Loans by Collateral • Total CRE Loans $2.2B • Regulatory Supervisory Monitoring CRE as % of Total Capital 177% • CRE Loan to Total Loans 70% (Non-Owner Occupied 25%, Owner Occupied 45%) • NOO as 36% of CRE • OO as 64% of CRE • 89% in CA Current LTV Weighted Avg # of Loans Tier LTV > 80% 3 84% 70
Slide 25: C&I and Owner Occupied CRE Industries
C&I and Owner Occupied CRE Industries • Similar to our Greater LA Economy Excluding Entertainment and Tech Other Real Estate 33% 18% Specialty Construction Trade of Buildings Contractors 3% 9% Transportation Equipment Manufacturing 3% Heavy and Civil Merchant Wholesalers, Engineering Durable Goods C
Slide 26: Interest Rate Components of the Loan Portfolio
Interest Rate Components of the Loan Portfolio Loan Portfolio by Repricing Type Fixed/Hybrid Years & Rate to Maturity/Repricing (2) Wtd Avg Life 69 Months Sum < 5 years $1,607 MM (1) (1) Wtd Avg Life 58 Months; $251 million maturing in the next 2 years (2) Figures in ($000s) Hybrid/Variable Rate – I
Slide 27: Rate Positioning
Rate Positioning • 17% of assets repriceable within 3 months as of June 30, 2026 • 20% of assets repriceable within 1 year as of June 30, 2026 • 31% of assets repriceable within 3 years as of June 30, 2026 Asset Repricing Term As of June 30, 2026 Repricing Term Rate Structure (Figures In thousands)
Slide 28: Asset Quality Trends
Asset Quality Trends Net Charge-Offs / Average Loans Non-Performing Assets (NPA) / Total Assets Great Recession Great Recession 0% 0.31% Reserves / Gross Loans Highlights Great Recession • Non-accrual relationships total $13,624M; Total individually evaluated reserve of $688M • 27-year net charge-of
Slide 29: Topical Industries
Topical Industries % of Total Wtd Avg Wtd Avg Avg Loan % of CRE Loan Type Offices Loan Current Current Size Portfolio Portfolio LTV DSCR Owner Occupied $180 MM $1.5 MM 6% 8% 46% 1.38 (OORE) Non-Owner Occupied $ 101 MM $1.7 MM 3% 5% 37% 1.85 (NOORE) Offices • Three Stories or Under; Located in Suburb
Slide 30: Liquidity
Liquidity Total available primary and The Bank has no Loan to Deposit Ratio: 79% secondary liquidity borrowings as of 06/30/26 sources of $1.6 billion Current Utilization Capacity ($ in thousands) Availability Primary Liquidity Cash and Cash Equivalent $ 214,093 Secondary Liquidity FHLB 914,599 - 91
Slide 31: Business Model – High Quality Investments
Business Model – High Quality Investments • The Bank has no non-agency mortgage-backed securities in its portfolio • All Munis rated A or better. Only 5 Corporate Notes totaling $9.5MM • Municipal securities is comprised of 43 states with largest located in CA (17%), TX (12%), and NY (6%) • Investme
Slide 32: Capitalization
Capitalization • The initial capital raise of $14.3 million was completed in 1998 by selling shares primarily to our founders, our core customer base • A follow-on offering of $7 million was completed in 2002 by selling shares to existing shareholders • Quarterly cash dividends commenced March 2025
Slide 33: Shareholder Returns
Shareholder Returns Dividend as a % of Earnings Tangible Book Value per Share 33
Slide 34: Balance Sheet History – Shareholders’ Equity
Balance Sheet History – Shareholders’ Equity Great Recession 34
Slide 35: Profitability History – Core Earnings
Profitability History – Core Earnings Great Recession * Adjusted for 10% stock dividend 35
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