American Bank Incorporated Reports Record Earnings for 2017

CONTACT: Mark W. Jaindl, President and Chief Executive Officer 
Allentown, PA, January 18, 2018

American Bank Incorporated (OTC Pink: AMBK), the parent company of American Bank, today announced earnings for the year ended December 31, 2017.  Net income for the year was $5,560,000, or $0.87 per diluted share, an increase of $1,116,000 or 25.1%, compared to net income of $4,444,000, or $0.70 per diluted share, reported for the year ended December 31, 2016.  The increase in net income for the year ended December 31, 2017 was primarily attributable to an increase in net interest income and gains on available-for-sale investments.

Total assets increased $23.7 million or 4.3% to $580.8 million as of December 31, 2017 compared to $557.1 million as of December 31, 2016.  Net loans increased $18.4 million or 4.2% while total deposits increased $17.8 million or 4.4% for the same period.  

Return on assets for the year ended December 31, 2017 increased to 0.99% from 0.80% for the same period in 2016.  Return on equity for the year ended December 31, 2017 was 10.74% compared to 9.13% for the same period in 2016.  

Net interest income for the year ended December 31, 2017 was $16.8 million, an increase of $1.7 million from $15.1 million for the prior year ended December 31, 2016.  Additionally as described below, the Bank recorded $732,000 in interest income from the proceeds of the sales of six trust preferred securities.  Of the $732,000 in interest income, $702,000 was received as payment of non-accrual interest accumulated during two securities’ interest deferral period.  Net interest margin increased 29 basis points to 3.13% for the year ended December 31, 2017 from 2.84% for the prior year ended December 31, 2016.  Net interest income for the year ended December 31, 2017 reached its highest level in the history of the Bank.

The provision for loan losses for the year ended December 31, 2017 was $266,000, a decrease of $680,000 from the $946,000 recorded for the year ended December 31, 2016.  The provision for 2017 was lower than the provision for 2016 primarily due to impairments of two commercial real estate loans during the fourth quarter of 2016.  Loan quality remained strong at December 31, 2017 with no non-accruing loans, and American Bank has set aside reserves of $6.2 million or 1.34% of loans outstanding at December 31, 2017 compared to $6.1 million or 1.37% of loans outstanding at December 31, 2016.   

Non-interest income increased $1.3 million or 129.9% for the year ended December 31, 2017 compared to 2016.  In the fourth quarter of 2017, the Bank sold six trust preferred securities from its investment portfolio for a net gain of $1.3 million. 

Non-interest expense increased $601,000 or 7.0% for the year ended December 31, 2017 compared to 2016.  The increase in non-interest expense was primarily due to the addition of three full-time equivalent employees, the celebration of the Bank’s 20th anniversary in June, and higher marketing and charitable contribution efforts.

Income tax expense increased $2.0 million or 96.0% for the year ended December 31, 2017 compared to 2016.  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 revalued its deferred tax assets and liabilities at the lower rate of 21% and wrote down its net deferred tax asset by $911,000.  In addition, income before income taxes was $3.1 million higher for the year ended December 31, 2017 than the prior year, which contributed to the increase in income tax expense.  

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

American Bank Incorporated common stock last traded at $11.38 per share.  American Capital Trust I Preferred Securities last traded at $13.00.

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, 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® 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, 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.