CONTACT: Mark W. Jaindl, President and Chief Executive Officer
Allentown, PA, February 03, 2009
American Bank Incorporated (OTC BB: AMBK), the parent company of American Bank, today announced earnings for the year ended December 31, 2008. Net loss for the year was $(1,195,000), or $(0.21) per diluted share, compared to net income of $3,920,000, or $0.61 per diluted share, reported for the year ended December 31, 2007. For the quarter ended December 31, 2008, American Bank Incorporated posted net income of $212,000, or $0.04 per diluted share, a decrease of $310,000 from $522,000, or $0.09 per diluted share, reported in the same period of the prior year.
The decrease in net income for the year ended December 31, 2008 is the result of $6.8 million of other-than-temporary-impairment charges against income for declines in the market value of preferred stock of Fannie Mae and Freddie Mac and the common stock of six community banks that the Company holds for investment.
The decrease in net income for the quarter ended December 31, 2008 is the result of $1,008,000 of other-than-temporary-impairment charges against income for declines in the market value of preferred stock of Fannie Mae and Freddie Mac and the common stock of six community banks that the Company holds for investment.
Net interest income for the year ended December 31, 2008 was $10.5 million, an increase of $600,000 from $9.9 million for the prior year ended December 31, 2007. The increase in net interest income was a result of the improvement in the Company’s net interest margin to 2.21% for the year ended December 31, 2008 from 2.04% for the prior year. American Bank’s net loans outstanding increased by $1.5 million, or 3.8%, to $309.1 million at December 31, 2008, while non-performing loans were less than $40,000 at year-end. Deposits decreased by $28.2 million, or 7.5%, from $376.2 million to $348.0 at December 31, 2008.
The provision for loan losses for the year ended December 31, 2008 was $179,000, a decrease of $340,000 from the $519,000 recorded for the year 2007. At December 31, 2008 the Allowance for loan losses was 1.41% of loans outstanding compared to 1.33% at December 31, 2007.
Non-interest expense decreased $122,000 to $6.4 million for the year ended December 31, 2008, from $6.5 million for the year ended December 31, 2007, primarily the result of cost savings from the Company’s de-registration from SEC reporting requirements completed in July 2007. The cost savings from the de-registration more than off-set the increase in FDIC insurance premiums of $234,000 for 2008. The FDIC did not charge insurance premiums for years prior to 2008.
The Company and the Bank continue to exceed all of the levels required to be considered “well capitalized”.
American Bank Incorporated common stock last traded at $6.00 per share. American Bank Incorporated Series A preferred stock (AMBKO.OB) is listed on the OTC BB but has not traded to date. American Capital Trust I Preferred Securities last traded at $7.00.
About American Bank
American Bank is a locally-owned community bank based in Allentown, PA. American Bank is recognized as a 5-Star Superior rated financial institution (the highest rating possible) by Bauer Financial Inc., designating it as one of the strongest banks in the nation as well as being named one of the safest banks in the nation by MSN Money. American Bank was ranked #1 by the Morning Call’s Top Workplaces in the Lehigh Valley and has been named one of the Best Places to Work in Pennsylvania.
American Bank offers a complete selection of banking products and services to suit the needs of consumers and businesses and includes checking, money market, savings, certificates of deposit, consumer and commercial loans and Visa credit cards. Dedicated to providing customers superior, personalized customer service, American Bank also offers some of the best loan and deposit rates available and as a result, for the past 12 years, has received the Bankrate.com® Top Tier award for consistently offering annual percentage yields (APYs) that were among the highest reported. Their online banking service, AmericanBank Online, which is accessible from the Bank’s website at AMBK.com, allows customers to bank conveniently and delivers a full range of real-time online banking services free of charge including online bill payment and presentment, ACH Direct, transfers between accounts, transaction history, check images and e-Statements. In addition, both consumer and business customers can bank on the go using mobile banking which includes mobile deposit. American Bank is FDIC insured and is an Equal Housing Lender.
AmericanBank Online is a registered trade mark for the Internet financial services provided by American Bank, a state-chartered, FDIC-insured, full-service financial institution serving customers throughout the United States. American Bank is a member of the Federal Reserve System.
"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995
Statements in this press release regarding American Bank's business which are not historical facts, including expectations regarding future financial results, are "forward-looking statements" that involve risks and uncertainties which could cause actual results to differ materially from such statements.