American Business Bank (OTCQX: AMBZ) has taken a significant step in managing its capital structure by announcing a stock repurchase program, marking its first such initiative. The Board of Directors has authorized the repurchase of up to 227,541 shares, which represents approximately 2.5% of the Bank’s issued and outstanding common stock.
The stock buyback program will commence following the release of the Bank’s fourth-quarter earnings report and is set to expire on January 7, 2026, unless it is completed or terminated earlier. The shares can be acquired through various methods, including open market purchases, block transactions, or privately negotiated deals. Management will have discretion over the timing and pricing of these repurchases, considering factors such as market conditions, stock availability, and the Bank’s overall financial health.
Leon Blankstein, Chief Executive Officer and Director of American Business Bank, emphasized that the Bank’s robust earnings over recent years have enabled this strategic move. He stated, “Share repurchases provide an important tool for managing capital levels, improving shareholder returns, and offering additional liquidity for shareholders looking to sell.” The CEO believes that this program not only enhances shareholder value but also underscores the Bank’s strong long-term financial performance.
The decision to implement a stock repurchase program comes at a time when American Business Bank is experiencing solid financial results. In its most recent earnings report for Q3 2024, the bank reported a net income of $10.8 million, reflecting a 13% increase from the previous quarter. This growth is supported by a 7.5% rise in total deposits and an expanded net interest margin.
The repurchase initiative aligns with broader trends in the banking sector where institutions are increasingly returning capital to shareholders through buybacks and dividends. Such strategies are often viewed favorably by investors as they can signal confidence in the company’s future prospects.
In addition to its financial initiatives, American Business Bank has expressed solidarity with those affected by recent wildfires in Los Angeles. The bank has made a donation to the American Red Cross for fire relief efforts and has reiterated its commitment to supporting customers during challenging times. Blankstein noted that while the impact on commercial properties within their client base has been minimal, the bank remains dedicated to providing assistance where needed.
Headquartered in downtown Los Angeles, American Business Bank offers a comprehensive range of financial services tailored for businesses including wholesalers, manufacturers, service providers, professionals, and non-profits. With seven Loan Production Offices strategically located throughout Southern California, the bank is well-equipped to meet the diverse needs of its clientele.
