American Bank Incorporated Reports First Quarter 2023 Earnings

CONTACT: Mark W. Jaindl, President and Chief Executive Officer 
Allentown, PA, April 14, 2023

American Bank Incorporated (OTC Pink: AMBK), the parent company of American Bank, today announced earnings for the quarter ended March 31, 2023.  Net income for the quarter was $2,484,000, or $0.38 per diluted share, an increase of $583,000 or 30.7% from $1,901,000, or $0.30 per diluted share, for the same quarter in the prior year.  The increase in net income for the quarter was primarily attributable to an increase in net interest income and non-interest income and a decrease in the provision for credit losses, offset by an increase in non-interest expense.

Total assets increased $30.7 million or 3.5% to $908.6 million as of March 31, 2023 compared to $877.9 million as of March 31, 2022.  Net loans increased $49.5 million or 7.9% from March 31, 2022 due to significant growth in the commercial loan portfolio.  Investment securities available-for-sale increased $18.5 million or 12.6% from March 31, 2022 due to the Bank purchasing higher-yielding investment securities with excess liquidity.  Total deposits increased $14.3 million or 2.1% from March 31, 2022.

President and CEO Mark Jaindl stated, “We are very pleased with the start of 2023 as illustrated by the increase in earnings when compared to the first quarter of 2022. The banking industry witnessed some unprecedented events to start the year with the abrupt closures of Silicon Valley Bank and Signature Bank. Given American Bank’s conservative approach to the management of its investment portfolio, we avoided the problems that resulted in those two closures.  In addition, for the past 25 years, we have been well-capitalized and financially stable and we plan on continuing along this path for the benefit of our customers and shareholders.”

Jaindl continued, “We did realize an increase in non-interest expense in the first quarter and this can be partially attributed to the transition of some of our team members to additional office space located at The Waterfront in downtown Allentown. In addition, we were able to make improvements to the overall work environment for the team members who continue to work from the Tilghman Street branch location. We are very excited about the addition of this new office space and look forward to taking advantage of the benefits that it affords us.”

Return on average assets for the quarter ended March 31, 2023 increased to 1.09% from 0.90% for the same period in 2022.  Return on average equity for the quarter ended March 31, 2023 increased to 11.74% from 9.75% for the same period in 2022.  American Bank’s return on average equity continues to outperform its peers, and as a result, it was recognized as one of the Top 50 Community Banks in the nation, and the Top Community Bank in the Lehigh Valley, by American Banker Magazine.     

Net interest income for the quarter ended March 31, 2023 was $6.1 million, an increase of $953,000 or 18.6% from the quarter ended March 31, 2022.  Net interest income increased year-over-year primarily due to growth in our commercial loan portfolio and interest rate increases in our loan and investment portfolios, offset by higher rates paid on our deposit products.  Net interest margin increased 28 basis points to 2.82% at March 31, 2023 from 2.54% for the quarter ended March 31, 2022.

The provision for credit losses was $183,000 for the quarter ended March 31, 2023 compared to $222,000 for the quarter ended March 31, 2022.  On January 1, 2023, the Bank adopted Accounting Standards Update 2016-13 “Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments”, which replaced the incurred loss methodology for determining the allowance for credit losses with an expected loss methodology that is referred to as the Current Expected Credit Loss (“CECL”) model.  American Bank has an allowance for credit losses of $7.7 million or 1.13% of loans outstanding at March 31, 2023 under the CECL model compared to $8.7 million or 1.38% of loans outstanding at March 31, 2022 under the incurred loss methodology.  Loan quality remained strong at March 31, 2023 with one non-accruing loan totaling $309,000.  

Non-interest income increased $41,000 or 8.4% to $527,000 for the quarter ended March 31, 2023 compared to the same quarter in 2022.  The increase in non-interest income was primarily the result of higher merchant card and credit card income.

Non-interest expense increased $297,000 or 9.9% to $3.3 million for the quarter ended March 31, 2023 compared to the same quarter in 2022.  The increase in non-interest expense was primarily due to higher salaries and employee benefit costs for the addition of two full-time equivalent employees, increased occupancy costs, and higher merchant card expenses.  American Bank’s operating expense to total average assets ratio increased to 1.44% for the quarter ended March 31, 2023 compared to 1.41% for the prior period.  American Bank’s operating expense to average assets ratio remains one of the lowest in the country. 

Income tax expense increased $153,000 or 31.9% to $632,000 for the quarter ended March 31, 2023 compared to the same quarter in 2022.  The effective tax rate of 20.3% for the quarter ended March 31, 2023 was comparable to the effective tax rate of 20.1% for the quarter ended March 31, 2022.    

American Bank continues to be a "well capitalized" institution as measured by all regulatory capital standards.

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 25 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, allows customers to bank using a full range of real-time online banking services including online bill pay, online ACH transfers, 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® 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.

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.