CONTACT: Mark W. Jaindl, President and Chief Executive Officer
Allentown, PA, October 11, 2019
American Bank Incorporated (OTC Pink: AMBK), the parent company of American Bank, today announced earnings for the quarter and nine months ended September 30, 2019. Net income for the quarter was $2,020,000 or $0.32 per diluted share, an increase of $171,000 or 9.2% from $1,849,000 or $0.29 per diluted share for the third quarter of 2018. The increase in net income for the quarter was primarily the result of an increase in net interest income.
Total assets increased $13.4 million or 2.1% to $650.9 million as of September 30, 2019 as compared to $637.5 million as of September 30, 2018. Net loans increased $18.9 million or 3.9%, while total deposits grew $20.2 million or 4.3% for the same period.
Return on assets for the quarter ended September 30, 2019 reached 1.25% compared to 1.17% for the same period in 2018. Return on equity for the quarter ended September 30, 2019 was 13.61% compared to 13.68% for the same period in 2018.
Net interest income for the quarter ended September 30, 2019 was $4,636,000, an increase of $142,000 or 3.2% from the quarter ended September 30, 2018. Net interest margin increased 4 basis points to 3.04% for the quarter ended September 30, 2019 from 3.00% for the quarter ended September 30, 2018.
There was no provision for loan losses for the quarter ended September 30, 2019, compared to a provision of $56,000 for the three months ended September 30, 2018. Loan quality remained strong at September 30, 2019 with one non-accruing loan totaling $309,000. Given the current economic environment, American Bank has an allowance for loan losses of $6.8 million or 1.32% of total loans outstanding at September 30, 2019.
Non-interest income increased $91,000 or 36.5% to $340,000 for the quarter ended September 30, 2019 as compared to the same quarter in 2018. This increase was the result of reclassification of certain income items related to the adoption of FASB’s revenue recognition standard.
Non-interest expense increased $59,000 or 2.5% to $2.4 million for the quarter ended September 30, 2019 compared to the same quarter in 2018. The increase was primarily due to the reclassification of certain items related to the adoption of the revenue recognition standard as mentioned above. American Bank’s operating expense to average total assets ratio increased to 1.51% for the quarter ended September 30, 2019 compared to 1.49% for the prior period. American Bank’s operating expense to asset ratio remains one of the lowest in the country.
Income tax expense increased $59,000 or 12.6% for the quarter ended September 30, 2019 compared to the same quarter in 2018. The effective tax rate of 20.7% for the quarter ended September 30, 2019 was comparable to the effective tax rate of 20.2% for the quarter ended September 30, 2018.
Year-to-Date Results
Net income for the nine months ended September 30, 2019 was $5.9 million, or $0.93 per diluted share, an increase of $1,028,000 or 21.0% from the nine months ended September 30, 2018. The primary reason for the increase in net income for the nine-month period ended September 30, 2019 was an increase in net interest income and a decrease in the provision for loan losses.
Return on assets for the nine months ended September 30, 2019 reached 1.25% compared to 1.07% for the same period in 2018. Return on equity for the nine-month period ended September 30, 2019 was 13.63% compared to 12.29% for the same period in 2018.
Net interest income for the nine months ended September 30, 2019 was $13.8 million, an increase of $848,000 or 6.5% from the nine-month period ended September 30, 2018. Net interest margin increased 12 basis points to 3.10% for the nine months ended September 30, 2019 compared to 2.98% for the nine months ended September 30, 2018.
The provision for loan losses for the nine months ended September 30, 2019 was $161,000, a decrease of $222,000 from the provision of $383,000 recorded for the nine months ended September 30, 2018.
Non-interest income increased $415,000 for the nine months ended September 30, 2019 compared to the nine months ended September 30, 2018 for generally the same reason as described in the quarter-to-date section above.
Non-interest expense increased $23,000 for the nine months ended September 30, 2019 compared to the nine months ended September 30, 2018 for generally the same reason as described in the quarter-to-date section above.
Income tax expense increased $434,000 or 38.8% for the nine months ended September 30, 2019 compared to the same period in 2018. The effective tax rate for the first nine months of 2019 was 20.8% compared to the effective tax rate of 18.6% for the first nine months of 2018.
American Bank is a "well capitalized" institution under all regulatory capital standards.
American Bank Incorporated common stock last traded at $12.30 per share. American Capital Trust I Preferred Securities last traded at $14.30.
Selected Financial Information
About American Bank
American Bank, headquartered in Allentown, PA, is a locally-owned community bank dedicated to serving customers in the Lehigh Valley for over 20 years. American Bank is an early innovator of online banking technology and continues that tradition by providing customers across the country online services that make banking easy and convenient. Their online banking service, AmericanBank Online (available at AMBK.com), allows customers to bank using a full range of real-time online banking services including online bill pay, ACH Direct, transfers between accounts, transaction history, check images and e-Statements. At a time when customers need the ability to bank on the go, American Bank also has mobile banking and mobile deposit for consumer and business customers.
American Bank offers a complete selection of deposit and loan products and convenient services to suit the needs of consumers and businesses. Dedicated to providing customers superior, personalized customer service, American Bank offers some of the best loan and deposit rates available and as a result, has received the Bankrate.com® Top Tier award for consistently offering annual percentage yields (APYs) that were among the highest reported.
In addition, it 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 and was 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.
For more information about American Bank, you can visit AmericanBank.bank, a financially-focused and security-driven top level domain name for respected financial institutions. American Bank is one of the first banks in the nation to take advantage of the ‘.bank’ domain extension.
AmericanBank Online is a registered trademark 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. American Bank is FDIC insured and an Equal Housing Lender.
"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.