CONTACT: Mark W. Jaindl, Chairman and CEO
Allentown, PA, January 15, 2026
American Bank Incorporated (OTCID: AMBK), the parent company of American Bank, today announced earnings for the quarter and year ended December 31, 2025. Net income for the quarter was $3,686,000 or $0.58 per diluted share, an increase of $483,000 or 15.1% from $3,203,000 or $0.51 per diluted share for the fourth quarter of 2024. The increase in net income for the quarter was primarily attributable to increases in net interest income and non-interest income, partially offset by increases in the provision for credit losses and non-interest expense.
Total assets increased $90.9 million or 9.2% to $1,077,605,000 as of December 31, 2025 compared to $986,677,000 as of December 31, 2024. Cash and cash equivalents decreased $24.7 million or 35.7% to $44.5 million from $69.2 million from December 31, 2024. Investment securities available-for-sale increased $73.8 million or 119.7%, and net loans increased $41.2 million or 5.2% from December 31, 2024. The Company experienced strong organic loan growth, especially in commercial lending, which was funded by significant deposit growth. Total deposits increased $102.1 million or 12.9% from December 31, 2024, while total borrowings decreased $17.5 million or 23.1%.
Return on average assets for the quarter ended December 31, 2025 increased to 1.38% from 1.33% for the quarter ended December 31, 2024. Return on average equity for the quarter ended December 31, 2025 increased to 13.89% from 13.40% for the same period in 2024. The improvements in the foregoing ratios were the result of an increase in net income and increases in average assets and average equity.
Net interest income for the quarter ended December 31, 2025 was $7,592,000, an increase of $1.2 million or 19.4% from the quarter ended December 31, 2024. 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 depositors. Net interest margin increased twenty-four basis points to 2.94% for the quarter ended December 31, 2025 from 2.70% for the quarter ended December 31, 2024.
President and CEO Mark Jaindl stated, “Our record fourth quarter results capped off an exceptional year for American Bank, reflecting the continued disciplined execution of our overall strategic plans. Strong commercial loan demand, meaningful deposit growth, and continued expansion of our net interest margin drove solid earnings and profitability in 2025. As we grow beyond $1 billion in total assets, we remain focused on risk management, relationship-based banking and delivering long-term value for both our customers and shareholders.”
Jaindl continued, “The growth of our loan portfolio was a notable highlight in 2025, driven by the efforts of the Bank’s lending team. Their focus on serving the needs of businesses across the Lehigh Valley and Philadelphia markets is underscored by a strong commitment to teamwork, dedication, and high-quality customer service.”
For the quarter ended December 31, 2025, there was a provision for credit losses in the amount of $33,000 compared to a release of the allowance for credit losses in the amount of $566,000 for the quarter ended December 31, 2024. The provision for credit losses for the quarter ended December 31, 2025 was primarily due to significant growth in the loan portfolio and increases in qualitative factors in the allowance for credit losses. American Bank has an allowance for credit losses of $7.8 million or 0.92% of loans outstanding at December 31, 2025 compared to $7.6 million or 0.94% of loans outstanding at December 31, 2024. Loan quality remained strong with one non-accruing loan in the amount of $315,000 at December 31, 2025 compared to $1.6 million in non-accruing loans at December 31, 2024. The non-accruing loan consists of one residential relationship, and the Company is in the process of foreclosure. During the year, the Company foreclosed on five collateral properties for one relationship and one non-accrual loan was paid off.
Mr. Jaindl stated, “Credit quality remained strong in 2025, supported by disciplined underwriting and proactive portfolio management. The modest fourth-quarter provision reflects updates to our qualitative factors, while our allowance remains well-positioned and non-performing assets declined meaningfully year over year.”
Non-interest income increased $194,000 or 21.3% to $1.1 million for the quarter ended December 31, 2025 as compared to $912,000 for the quarter ended December 31, 2024. The increase was primarily due to gains on foreclosed assets held for resale and higher income generated by commercial loan interest rate swaps in 2025 compared to 2024.
Non-interest expense increased $215,000 or 5.6% to $4.0 million for the quarter ended December 31, 2025 compared to the same quarter in 2024. 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 average asset ratio decreased to 1.58% for the quarter ended December 31, 2025 compared to 1.66% for the quarter ended December 31, 2024. American Bank’s operating expense to average asset ratio remains one of the lowest in the country.
Income tax expense increased $130,000 or 16.2% for the quarter ended December 31, 2025 compared to the same quarter in 2024. The effective tax rate of 20.2% for the quarter ended December 31, 2025 was comparable to the effective tax rate of 20.0% for the quarter ended December 31, 2024.
Year-to-Date Results
Net income for the year was $13,536,000, or $2.08 per diluted share, an increase of $4.5 million or 50.1%, compared to net income of $9,016,000, or $1.38 per diluted share, reported for the year ended December 31, 2024. The increase in net income for the year was primarily attributable to increases in net interest income and non-interest income, offset by an increase in non-interest expense.
Return on average assets for the year ended December 31, 2025 increased to 1.32% from 0.98% for the same period in 2024. Return on average equity for the year ended December 31, 2025 was 13.28% compared to 9.62% for the same period in 2024. The increases in the foregoing ratios were the result of an increase in net income and increases in average assets and average equity during the year 2025.
Net interest income for the year ended December 31, 2025 was $28.5 million, an increase of $5.1 million or 22.0% from the year ended December 31, 2024 for generally the same reasons as described in the quarter-to-date section above. Net interest margin increased nineteen basis points to 2.88% for the year ended December 31, 2025 from 2.69% for the year ended December 31, 2024.
For the year ended December 31, 2025, there was a provision for credit losses in the amount of $194,000, compared to a provision for credit losses in the amount of $214,000 recorded for the year ended December 31, 2024. The provision expense for 2025 was generally driven by growth in the loan portfolio.
Non-interest income increased $2.5 million or 103.5% for the year ended December 31, 2025 compared to 2024 for generally the same reasons as described in the quarter-to-date section above.
Non-interest expense increased $1.9 million or 13.5% for the year ended December 31, 2025 compared to 2024. The increase in non-interest expense was primarily the result of higher salaries and employee benefit expenses, hosted services, professional fees, and costs associated with foreclosed assets held for resale. American Bank’s operating expense to average assets ratio increased to 1.58% for the year ended December 31, 2025 compared to 1.55% for the year ended December 31, 2024.
Income tax expense increased $1.2 million or 52.9% for the year ended December 31, 2025 compared to 2024. The effective tax rate of 20.1% for the year ended December 31, 2025 was comparable to the effective tax rate of 19.8% for the year ended December 31, 2024.
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.