Shares of American Business Bank rose 11 percent on Thursday as investors reacted to a positive third quarter for the small Los Angeles business bank.

American Business had reported Wednesday that its net income grew 7 percent to $1.45 million (41 cents per share), compared to $1.35 million (41 cents) for the same period a year earlier. Third quarter net income was 9 percent better than the second quarter.

Total assets grew 19 percent to $702 million as of Sept. 30. Net loans increased 20 percent to $312 million. Funding the growth in assets was a 14 percent, or $75 million, increase in deposits.

“Even though the economy is going through a painful deleveraging process, our bank remains focused on maintaining its strong balance sheet,” said Chairman Robert Schack in a statement. “We continue to build on a loan portfolio that has zero past due thirty day loans, no net charge offs and no (real estate owned properties).”

Share of the bank closed up $2, or 11 percent, to $21 on the Over-the-Counter Bulletin Board.