CONTACT: Mark W. Jaindl, President and Chief Executive Officer
Allentown, PA, January 13, 2020
American Bank Incorporated (OTC Pink: AMBK), the parent company of American Bank, today announced earnings for the year ended December 31, 2019. Net income for the year was $7,881,000, or $1.24 per diluted share, an increase of $1,035,000 or 15.1%, compared to net income of $6,846,000, or $1.08 per diluted share, reported for the year ended December 31, 2018. The increase in net income for the year ended December 31, 2019 was primarily attributable to an increase in net interest income and a decrease in the provision for loan losses.
Total assets increased $19.6 million or 3.2% to $641.5 million as of December 31, 2019 compared to $621.9 million as of December 31, 2018. Net loans increased $24.1 million or 4.9% while total deposits increased $8.5 million or 1.8% for the same period.
Return on assets for the year ended December 31, 2019 increased to 1.24% from 1.12% for the same period in 2018. Return on equity for the year ended December 31, 2019 was 13.44% compared to 12.76% for the same period in 2018.
Net interest income for the year ended December 31, 2019 was $18.3 million, an increase of $715,000 from $17.6 million for the prior year. Net interest margin increased 3 basis points to 3.07% for the year ended December 31, 2019 from 3.04% for the prior year.
President and CEO Mark Jaindl stated, “American Bank’s outstanding growth in 2019 demonstrates our continued commitment to serving our community. This past year saw increases in many significant areas including net loans and total deposits. We were able to achieve this success without sacrificing quality and our team members are to be commended for their dedication to ensuring that we maintain a high level of excellence.”
The provision for loan losses for the year ended December 31, 2019 was $204,000, a decrease of $287,000 from the $491,000 recorded for the year ended December 31, 2018. The provision for 2019 was lower than the provision for 2018 primarily due a reduction of risk within the portfolio. Loan quality remained strong at December 31, 2019 with two non-accruing loans. Given the current economic environment, American Bank has an allowance for loan losses of $6.8 million or 1.30% of loans outstanding at December 31, 2019 compared to $6.6 million or 1.32% of loans outstanding at December 31, 2018.
Non-interest income increased $462,000 or 43.6% for the year ended December 31, 2019 compared to 2018. The increase in non-interest income is primarily due to the net gains on equity securities held at the holding company level and rental income received from the Bank’s tenant after the purchase of the Bank’s headquarters in June 2018.
Non-interest expense decreased $18,000 or 0.18% for the year ended December 31, 2019 compared to 2018. American Bank’s operating expense to average assets ratio decreased to 1.54% for the year ended December 31, 2019 compared to 1.60% for the year ended December 31, 2018. American Bank’s operating expense to average assets ratio remains one of the lowest in the country.
Income tax expense increased $447,000 or 27.7% for the year ended December 31, 2019 compared to 2018. The effective tax rate of 20.7% for the year ended December 31, 2019 was comparable to the effective tax rate of 19.0% for the year ended December 31, 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.
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.