Investor Presentation

December 31, 2020

OTCQX: AMBZ

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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 financial and operating results, expectations, intentions and other statements that are not historical facts. Such statements are based on information available at the time of this communication and are based on current beliefs and expectations of the Bank’s management and are subject to significant risks, uncertainties and contingencies, many of which are beyond our control. The COVID-19 pandemic is adversely affecting the national economy; the ultimate length and severity of its impact on the Bank’s customers are uncertain. Actual results may differ materially from those set forth in the forward-looking statements due to a variety of factors, including various risk factors. We are under no obligation (and expressly disclaim any such obligation) to update or alter our forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

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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-one years, the bank has grown organically to approximately $3.5 billion* in total assets. AMBZ serves its customer base through its headquarters in Los Angeles and six regional offices

■ Currently 33 relationship officers serve the needs of over 1,800 clients

* $2.5 billion in total assets as of March 31, 2020

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ABB Ranking By Assets

■ ABB ranks 11th of the 55 banking institutions headquartered in the five-county area of Los Angeles, Orange, Ventura, San Bernardino and Riverside counties

■ ABB ranks 25th of the 125 banking institutions headquartered in California

■ ABB ranks 290th of the 4,329 United States commercial banking institutions

Updated as of December 31, 2020

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Leadership Team

Five Founders:

Don Johnson, Former CEO, Director

Bob Schack, Chairman Emeritus, Director

Leon Blankstein, Current CEO, Director

Robin Paterson, Former Chief Credit Officer, Retired 2018

Wes Schaefer, Chief Investment Officer, Retired 2019

Key Executives:

Karen Schoenbaum, CFO, 3+ years ABB Tenure

Patti Vollmer, CCO, 20+ years ABB Tenure

Suzanne Dondanville, COO, 5+ years ABB Tenure

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HQ and LPO Locations

Inland Empire

Riverside County

Orange County

North Orange County

Los Angeles

South Bay

San Fernando Valley

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AMBZ’s Client Focus & Target Market

■ Private companies with revenues $10 million to $200 million and their key executives

■ Currently 33 relationship officers serve the needs of over 1,800 clients

Client Focus Marketplace – Top 5 MSAs

Marketplace – Top Nationwide Marketplace – Top 10 CA MSAs

Source: Statistics of U.S. Businesses, United States Census BureauAs of June 29, 2020

MSABusinesses with <500 Employees

New York-Newark-Jersey City 499,998Los Angeles-Long Beach-Anaheim 313,657Chicago-Naperville-Elgin 198,467Miami-Fort Lauderdale-West Palm Beach 167,326Dallas-Fort Worth-Arlington 123,638

California MSABusinesses with <500 Employees

California 745,791

Los Angeles-Long Beach-Anaheim 313,657San Francisco-Oakland-Hayward 104,849San Diego-Carlsbad 69,216Riverside-San Bernardino-Ontario 58,292San Jose-Sunnyvale-Santa Clara 40,306Sacramento--Roseville--Arden-Arcade 38,300Oxnard-Thousand Oaks-Ventura 17,633Fresno 13,184Santa Rosa 11,874Bakersfield 9,877

MarketBusinesses with <500 Employees

United States 5,976,761

California 745,791New York 460,789Florida 448,397Texas 436,546AMBZ Service Area 389,582Illinois 251,667

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AMBZ’s Target Market – California Top 10 MSAs

Sorted by businesses with 500 or fewer employees

Note: AMBZ service areas highlighted in blue, along with respective number of businesses in these marketsUpdated as of June 29, 2020

Los Angeles‐Long Beach‐Anaheim

313,65746%

San Francisco ‐Oakland ‐Hayward

104,84915%

San Diego ‐Carlsbad69,21610%

Riverside‐San Bernardino‐Ontario

58,2929%

San Jose ‐Sunnyvale‐Santa Clara

40,3066%

Sacramento ‐‐Roseville‐‐Arden ‐Arcade

38,3006%

Oxnard‐Thousand Oaks‐Ventura

17,6333%

Fresno13,1842%

Santa Rosa11,8742%

Bakersfield9,8771%

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Target Industries

Who We Serve Who We Don’t Serve

■ Wholesalers

■ Manufacturers

■ Service businesses

■ Contractors

■ Professionals

■ Non-profits

■ Real estate investors

■ Hi-tech

■ Movie finance

■ Heavy retail

■ Venture capital

■ Spec real estate developers

■ MRB’s and MSB’s

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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-cost core deposits to fund loan growth with excess funds invested in high-quality investments

■ Exceptional credit quality

■ Strong capital management

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Our Operating Principle

Happy Shareholders

HappyEmployees

Happy Customers

• Active Community Involvement

• Identify, attract, develop and retain high performing talented Relationship Managers

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Highlights YTD 2020

• Robust SBA PPP funding boost record net income• Diluted earning per share increases 30% over prior year• Total SBA Paycheck Protection Program (“PPP”) loans originations of

$701 million with $12.3 million of related income• Total loans, excluding PPP loans, increased $22 million or 1.5% from a

year ago• Total deposits, excluding estimated deposits related to PPP Loans,

increased $456 million or 21% from a year ago • Non-interest bearing demand deposits were 53% of total deposits• Nonperforming assets to total assets, excluding PPP loans, of 0.09%• No delinquencies in 30-89 day loan category• Net charge-offs were 0.02% of total loans; no charge-offs in 2nd half of the

year• Tangible book value per share increased by $4.88 to $31.20 from a year

ago

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PPP Loans

As of January 23, 2021, approximately 22% of PPP loan balances originated in 2020 have been forgiven, approximately 21% of the balances are in the forgiveness review or submission process and approximately 56% of balances have yet to apply for forgiveness.

• PPP Loans 27% of December 31, 2020 Total Loans• Weighted Average fee: 2.57%• Covered > 46% of Customer Base• Retained > 50,000 jobs estimated• PPP as % of Assets in top 10 banks in the U.S. (FDIC/Fed Call Report as of 9/30/2020)

As of or For the year ended:

December 2020 December 2020 September 2020

PPP Loans, net 551,190$ 551,190$ 688,336$

1% Coupon Interest 4,744$ 1,604$ 1,759$ Amortized fees 4,332 640 2,078 Accelerated fees 3,198 3,198 - Total PPP loan income 12,274$ 5,442$ 3,837$ Total PPP loan income after tax 8,677$ 3,847$ 2,712$ Total PPP loan income after tax per share - diluted 1.07$ 0.47$ 0.33$

As of or For the Three Months Ended:

(Figures in $000s, except per share amounts)

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Earnings

• Q1 2020 Provision for Loan Losses primarily for loan growth ($830K), reserving for economic uncertainty and charge-off• Q2 2020 Provision for Loan Losses primarily for economic uncertainty and charge-off; no allowance allocated to PPP

loans as 100% guaranteed by the SBA• Q2 2020 Interest Income included $3 million from PPP • Q3 2020 Interest Income included $3.8 million from PPP• Q4 2020 Interest Income included $5.4 million from PPP

Q4-2019 Q1-2020 Q2-2020 Q3-2020 Q4-2020Interest Income 21,493$ 21,262$ 22,346$ 23,912$ 25,774$

Interest Expense 1,313 1,245 603 561 475

Net Interest Income 20,180 20,017 21,743 23,351 25,299

Provision for Loan Losses 801 1,434 680 450 -

Net Interest Income After Provision for Loan Losses 19,379 18,583 21,063 22,901 25,299

Non-Interest Income 1,574 411 1,796 1,434 1,862

Non-Interest Expense 12,784 12,045 13,924 13,637 14,585

Earnings before Income Taxes 8,169 6,949 8,935 10,698 12,576

Income Tax Expense 2,179 2,110 2,200 2,824 3,252

Net Income 5,990$ 4,839$ 6,735$ 7,874$ 9,324$

Diluted EPS 0.74$ 0.60$ 0.83$ 0.97$ 1.14$

ROAA 0.99% 0.80% 0.86% 0.95% 1.08%

ROAE 11.74% 9.15% 12.14% 13.53% 15.57%

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Net Interest Margin Analysis

• 4Q 20 Net Interest Margin, excluding PPP Loans – 2.90%• 4Q 20 Loan Yield, excluding PPP Loans - 4.25%

Yield/Rate 4Q19 1Q20 2Q20 3Q20 4Q20Investments 2.07% 2.03% 1.64% 1.86% 1.71%Gross Loans 4.67% 4.58% 3.81% 3.66% 4.02%Yields on Interest-Earning Assets 3.61% 3.62% 2.91% 2.91% 3.01%Cost of Deposits 0.24% 0.21% 0.08% 0.07% 0.06%Total Deposits & Borrowings 0.24% 0.23% 0.08% 0.07% 0.06%Net Interest Rate Spread 3.37% 3.39% 2.83% 2.84% 2.95%Net Interest Margin 3.43% 3.47% 2.88% 2.89% 3.00%

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Growing Operating Leverage

1. Revenue = Net Interest Income + Non Interest Income. Excluding gains/losses on sale of securities and PPP accelerated loan fees2. Operating Expense excludes DCP ABB stocks investment results & DCP other funds investment results3. Q4 2018 operating expense includes $717K reduction from prior quarter due to year-end accrual evaluation

70.0%

75.0%

80.0%

85.0%

90.0%

95.0%

100.0%

105.0%

AMBZ Nationwide Banks $2B to $5B Western Banks $2B to $5B

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Peer Comparison – Fortress Balance Sheet

Core Deposits / Total Deposits

G r e a t R e c e s s i o n98.9%

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Business Model – Deposits

For the quarter ended December 31, 2020, total cost of deposits was 0.06%; PQ 0.07%

AMBZ provides a “high touch” strategy that focuses on capturing the deposit relationship first and foremost

Deposit Mix as of December 31, 2020 (Total Deposits $3.2B)Deposit Mix as of March 31, 2020 (Non-Interest Bearing 51% on Total Deposits of $2.3B)

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Balance Sheet History – Deposits

G r e a t R e c e s s i o n

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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’s target market of closely-held businesses with strong operating histories has allowed the company to record nominal non-performing loans over its history

■ Due to the cash-rich nature of AMBZ’s customers and growth in core funding, the loan-to-deposit ratio is at 65%

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Recent Balance Sheet History – Loans

65% Loans to Deposits

Total Real Estate Weighted Avg. LTV

52%

G r e a t R e c e s s i o n

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Business Model – Loans

C & I and Owner Occupied - CRE Loans total 74%

Loan Portfolio Composition as of December 31, 2020. (Total Loans $2.1B)Consumer and Other Loans are less than 1%

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CRE Loans by Collateral

Total CRE Loans $1.1B CRE Loans to Total Loans 51% (Non-Owner Occupied 19%, Owner Occupied 32%)

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Interest Rate Components of the Loan Portfolio

* Includes PPP Loans

*

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Peer Comparison – Stellar Credit History

Non-Performing Assets (NPA) / Total Assets

Avg. Loan Size$745K

0.08%

G r e a t R e c e s s i o n

One nonaccrual loan with an impaired specific reserve of

$154,532

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Peer Comparison – Stellar Credit History

Net Charge-Offs / Average Loans

21 year Net charge-offs

history$691K

0.02%

G r e a t R e c e s s i o n

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Peer Comparison – Fortress Balance Sheet

Reserves / Gross Loans

Largest Loan Relationship is

$26MM multiple real estate properties

1.1%

Total Allowance for Loan Losses

$22.9MM

G r e a t R e c e s s i o n

Total Allowance for Loan Losses /

Loans without PPP1.52%

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Loan Payment Deferrals

1. Excludes PPP loans2. Calculated as total balance on 2nd deferral divided by the sum of the total balance of active deferrals and total balance back on payment.3. Of those that had concluded their deferment period as of 12/31/20, 100% have made their first payment.

As of December 31, 2020% of Asset

Class 1

Re-Deferral Rate 2

$ Count $ Count $ Count $ CountC & I 943,329 1 1,893,000 1 2,836,329 2 1% 3,387,171 6 30%Consumer - - - - - - 0% 47,295 1 0%Owner Occupied - CRE 1,643,375 1 - - 1,643,375 1 0% 62,508,315 20 0%NonOwner Occupied - CRE 1,076,519 1 - - 1,076,519 1 0% 7,117,777 6 0%1-4 Family - - - - - - 0% 1,383,035 1 0%

TOTAL 3,663,224 3 1,893,000 1 5,556,223 4 0% 74,443,592 34 2%

On 1st Deferral On 2nd Deferral Total Active DeferralsTotal Back on

Payment

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Exposed Industries from Pandemic

Total Pandemic Industry Exposure of 12% Religious Organizations partially impacted under 2% of loan portfolio No Oil & Gas Exposure Retail and Hospitality related loans, collateralized by Non-Owner Occupied

CRE that was originally underwritten with a 52% average loan to value ratio

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Business Model – High Quality Investments

All Munis rated A or better. Only 9 Corporate Notes totaling $22.8MM Municipal securities is comprised of 42 states with the largest located in CA

(25%), TX (19%), and WA (5%) Investments are 31% of Total Assets

Investment Portfolio Composition as of December 31,2020

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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

■ Since inception, AMBZ has internally generated approximately $221 million of additional capital

■ Tangible book value per share has grown from $3.60¹ at inception to $31.20 at December 31, 2020 recording a 10% compound annual growth rate

1 Adjusted for stock splits and stock dividends

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Balance Sheet History – Shareholders’ Equity

G r e a t R e c e s s i o n

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Profitability History – Core Earnings

G r e a t R e c e s s i o n