CONTACT: Mark W. Jaindl, Chairman and CEO
Allentown, PA, April 8, 2026
American Bank Incorporated (OTCID Basic Market: AMBK), the parent company of American Bank, today announced earnings for the quarter ended March 31, 2026. Net income for the quarter was $3,890,000, or $0.59 per diluted share, an increase of $1.5 million or 64.2% from $2,369,000, or $0.36 per diluted share, for the same quarter in the prior year. The increase in net income for the quarter was primarily attributable to increases 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 $77.3 million or 7.7% to $1.1 billion as of March 31, 2026 compared to $1.0 billion as of March 31, 2025. Cash and cash equivalents decreased $38.0 million or 49.9% to $38.2 million from $76.2 million from March 31, 2025. Investment securities available-for-sale increased $75.8 million or 127.8%, and net loans increased $41.3 million or 5.1% from March 31, 2025. The Company experienced strong organic loan growth, especially in commercial lending, which was funded by significant deposit growth. Total deposits increased $90.6 million or 11.2% from March 31, 2025, while total borrowings declined $22.5 million or 28.8%.
Return on average assets for the quarter ended March 31, 2026 increased to 1.45% from 0.96% for the same period in 2025. Return on average equity for the quarter ended March 31, 2026 increased to 14.24% from 9.67% for the same period in 2025. The improvements in the foregoing ratios were the result of an increase in net income and increases in average assets and average equity.
President and CEO Mark Jaindl stated, “Our results for the first quarter of 2026 reflect our continued growth, highlighted by a 64% increase in net income when compared to the same period last year. The improvements that occurred further illustrate the consistent execution of our strategic plan and the dedication of our team to delivering superior levels of customer service.”
Jaindl continued, “We are also pleased to see that our commitment to asset quality remains unwavering as evidenced by the decrease in non-accruing loans as a percentage of total loans to just 0.04% at the end of the quarter as well as the reduction in other real estate owned from a year ago. Together, these factors position us well as we continue to build long-term value for our shareholders and serve our customers and the community.”
Net interest income for the quarter ended March 31, 2026 was $7.8 million, an increase of $1.1 million or 17.1% from the quarter ended March 31, 2025. Net interest income increased due to loan and investment growth year-over-year, interest rate increases in our loan and investment portfolios, and a decrease in interest expense paid on borrowings, offset by an increase in interest expense paid to our depositors. Net interest margin increased 19 basis points to 2.99% at March 31, 2026 from 2.80% for the quarter ended March 31, 2025.
The provision for credit losses was $154,000 for the quarter ended March 31, 2026 compared to $622,000 for the quarter ended March 31, 2025. The decrease in the provision for credit losses was primarily due to decreases in qualitative factors in the allowance for credit losses, offset by significant growth in the loan portfolio. American Bank has an allowance for credit losses of $7.9 million or 0.92% of loans outstanding at March 31, 2026 compared to $8.1 million or 0.99% of loans outstanding at March 31, 2025. Loan quality remained strong with one non-accruing loan in the amount of $315,000 at March 31, 2026 compared to $840,000 at March 31, 2025. The non-accruing loan consists of one residential relationship, and the Company expects that this loan will be paid off in the second quarter.
Non-interest income increased $668,000 or 91.3% to $1.4 million for the quarter ended March 31, 2026 compared to the same quarter in 2025. The increase was primarily attributable to gains on sales of equity securities and higher income generated by commercial loan interest rate swaps in 2026 compared to 2025.
Non-interest expense increased $354,000 or 9.3% to $4.2 million for the quarter ended March 31, 2026 compared to the same quarter in 2025. The increase in non-interest expense was primarily the result of higher salaries and employee benefit expenses, and hosted services. American Bank’s operating expense to total average assets ratio was 1.55% for the quarter ended March 31, 2026 and March 31, 2025. American Bank’s operating expense to average assets ratio remains one of the lowest in the country.
Income tax expense increased $398,000 or 67.3% to $989,000 for the quarter ended March 31, 2026 compared to the same quarter in 2025. The effective tax rate of 20.3% for the quarter ended March 31, 2026 was comparable to the effective tax rate of 20.0% for the quarter ended March 31, 2025.
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 AMBK.com), allows customers to bank using a full range of real-time online banking services including online bill pay, online ACH, 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. To further enhance customers’ online experience, American Bank’s Virtual Assistant, “Penny,” is conversational artificial intelligence (AI) technology available via the website or mobile app and provides convenient, 24/7 access to information and resources.
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 has been recognized as a 5-Star Superior rated financial institution (the highest rating possible) by Bauer Financial Inc. for 60 consecutive quarters, 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.