CONTACT: Mark W. Jaindl, President and Chief Executive Officer
Allentown, PA, April 18, 2018
American Bank Incorporated (OTC Pink: AMBK), the parent company of American Bank, today announced earnings for the quarter ended March 31, 2018. Net income for the quarter was $1,513,000, or $0.24 per diluted share, an increase of $216,000 or 16.7% from $1,297,000, or $0.20 per diluted share, for the same period in the prior quarter. The increase in net income for the quarter was the result of an increase in net interest income.
Total assets exceeded $600 million at March 31, 2018 for the first time in American Bank’s history, an increase of $38.4 million or 6.8% compared to $561.8 million as of March 31, 2017. Net loans increased $32.6 million or 7.5% while total deposits increased $24.2 million or 5.8% for the same period.
Return on assets for the quarter ended March 31, 2018 increased to 1.05% from 0.94% for the same period in 2017. Return on equity for the quarter ended March 31, 2018 increased to 11.57% from 10.24% for the same period in 2017.
Net interest income for the quarter ended March 31, 2018 was $4.2 million, an increase of $294,000 or 7.5% from the quarter ended March 31, 2017. Net interest margin increased six basis points to 3.06% at March 31, 2018 from 3.00% for the quarter ended March 31, 2017.
The provision for loan losses was $127,000 for the quarter ended March 31, 2018 compared to $13,000 for the quarter ended March 31, 2017. Loan quality remained strong at March 31, 2018 with two non-accruing loans totaling $1.9 million. Given the current economic environment, American Bank has set aside reserves of $6.3 million or 1.34% of loans outstanding at March 31, 2018 in the event they are needed.
Non-interest income remained relatively flat at $206,000 for the quarter ended March 31, 2018 compared to the same quarter in 2017.
Non-interest expense increased $295,000 or 13.3% for the quarter ended March 31, 2018 compared to the same quarter in 2017. The increase in non-interest expense was primarily due to higher salaries and employee benefits expenses as well as additional marketing efforts. American Bank’s operating expense to asset ratio increased to 1.75% for the quarter ended March 31, 2018 compared to 1.62% for the prior period. American Bank’s operating expense ratio remains one of the lowest in the country.
Income tax expense decreased $342,000 or 56.0% for the quarter ended March 31, 2018 compared to the same quarter in 2017. On December 22, 2017, the U.S. government enacted comprehensive tax legislation commonly referred to as the Tax Cuts and Jobs Act, whereby the U.S. corporate tax rate was reduced from 34% to 21%. As a result of this legislation, the Bank will benefit from the lower income tax rate in 2018.
American Bank continues to be a "well capitalized" institution as measured by all regulatory capital standards.
American Bank Incorporated common stock last traded at $12.00 per share. American Capital Trust I Preferred Securities last traded at $13.00 per share.
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 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 new 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.