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American Business Bank Announces Basic Earnings Per Share of $0.75 for the Quarter Ending September 30, 2012 versus $0.73 for the Quarter Ending September 30, 2011

LOS ANGELES--(BUSINESS WIRE)-- AMERICAN BUSINESS BANK (Bank) (OTCBB: AMBZ) today reported net income of $3,333,000 for the third quarter of 2012, a 2.7% increase over the $3,246,000 earned in the third quarter of 2011. Earnings per share (basic) in the third quarter of 2012 increased to $0.75 versus $0.73 in the third quarter of 2011.

“Once again, the Bank was able to achieve its goals in the third quarter. We have had great success in our marketing efforts, as our seasoned Relationship Managers executed their plans, introduced new clients to the Bank and managed the needs of their customers,” said Leon Blankstein, President.

“American Business Bank continues to focus on a proven business model, banking well managed companies and working hard to contribute to their success,” said Don Johnson, Chief Executive Officer. Mr. Johnson added, “I am proud of the achievements that we have made over the period of my tenure as the founding CEO. We have successfully navigated through arguably the worst financial crisis since the 1930’s and we have seen the most changes in the banking sector since then as well, including regulatory reform, consolidation, electronic innovations, etc. I am pleased to announce that effective at our next annual meeting in April of 2013, Leon Blankstein, President of American Business Bank, will also assume the title of Chief Executive Officer. This succession will allow the Bank to continue on as a well- run, customer oriented, profitable and growing company. I will continue on as Vice Chairman, Director, and a resource to the bank. It has been my privilege to have worked with Leon the last 29 years and I have watched him excel at every level.”

Total assets increased 12% or $139 million to $1.279 billion at September 30, 2012 as compared to $1.140 billion at September 30, 2011. The loan portfolio (net) increased 10% or $40 million to $438 million at September 30, 2012 as compared to $398 million at September 30, 2011, while investments and federal funds sold increased $84 million. Deposits increased 5%, or $51 million to $1.060 billion at September 30, 2012 as compared to $1.010 billion at the same period in 2011.

During the third quarter of 2012, Net Interest Income increased $1,063,000 or 12.3% to $9,705,000 from $8,642,000 during the same period in 2011.

Non-Interest expense for the third quarter increased $104,000 or 1.8% to $5,789,000 from $5,685,000 during the third quarter of 2011.

Asset quality at quarter-end remains excellent, with $220,000 non-performing loans and no OREO loans. At the end of September 2012, the allowance for loan losses stood at $9,846,000 or 2.20% of loans.

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. The Bank has opened four Loan Production Offices in strategic areas including our Orange County Office in Irvine, our South Bay Office in Torrance, our San Fernando Valley Office in the Warner Center and our Inland Empire Office in Ontario.

American Business Bank CONSOLIDATED BALANCE SHEET (unaudited) For the period ended: September September Change 2012 2011 % Assets: Total Assets $ 1,279,743 $ 1,140,244 Liabilities: Total Liabilities $ 1,179,346 $ 1,057,000 Shareholders' Equity: Total Shareholders' Equity $ 100,397 $ 83,244 Total Liabilities & Shareholders' Equity $ 1,279,743 $ 1,140,244 Capital Adequacy: Per Share Information: American Business Bank CONSOLIDATED INCOME STATEMENT (unaudited) For the 3-month period: September September Change 2012 2011 % Interest Income: Interest Expense: Non-Interest Income: Non-Interest Expense: Net Income Per Share Information: American Business Bank September September Change 2012 2011 % Performance Ratios Asset Quality Overview

American Business Bank
Wes E. Schaefer
Vice Chairman and Chief Financial Officer
(213) 430-4000

Source: American Business Bank