CONTACT: Mark W. Jaindl, Chairman and CEO
Allentown, PA, July 9, 2026
American Bank Incorporated (OTCID Basic Market: AMBK), the parent company of American Bank, today announced earnings for the quarter and six months ended June 30, 2026. Net income for the quarter was $3,352,000, or $0.52 per diluted share, a decrease of $833,000 or 19.9% from $4,185,000, or $0.65 per diluted share, for the second quarter of 2025. The decrease in net income for the quarter was attributable to increases in the provision for credit losses and non-interest expense, and a decrease in non-interest income, offset by an increase in net interest income. The provision was primarily the result of significant growth in the loan portfolio, as the Company did not experience deterioration in asset quality during the quarter as total non-accruing loans as a percentage of total loans remained unchanged at 0% at June 30, 2026 and June 30, 2025.
Total assets increased $93.9 million or 9.2% to $1.1 billion as of June 30, 2026 compared to $1.0 billion as of June 30, 2025. Net loans increased $80.6 million or 9.9% to $895.4 million at June 30, 2026 from $814.8 million at June 30, 2025 due to growth in the commercial and residential loan portfolios. Investment securities available-for-sale increased $63.6 million or 101.0% from June 30, 2025. The increase in net loans and investment securities available-for-sale was offset by a decrease in cash and cash equivalents of $49.9 million. Total deposits increased $92.3 million or 11.2% from June 30, 2025, while total borrowings decreased $12.5 million or 16.0%.
Return on average assets for the quarter ended June 30, 2026 decreased to 1.23% from 1.68% for the same period in 2025. Return on average equity for the quarter ended June 30, 2026 decreased to 12.11% from 16.70% for the same period in 2025. The decreases in the foregoing ratios were the result of decreases in net income and increases in average assets and average equity.
President and CEO Mark Jaindl stated, “While the second quarter of 2025 reflected exceptional performance, the second quarter of 2026 continued to show improvement of our core earnings, specifically relating to the increase of our net interest income. The 17.7% increase in net interest income highlights the success of our strategic focus on growing net interest income, while maintaining strong credit quality. With zero non-accruing loans at quarter end, we remain confident in the health of our loan portfolio and our ability to serve our customers’ needs.”
Net interest income for the quarter ended June 30, 2026 was $8.1 million, an increase of $1.2 million or 17.7% from the quarter ended June 30, 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 its depositors. Net interest margin increased 22 basis points to 3.08% at June 30, 2026 from 2.86% at June 30, 2025.
President and CEO Mark Jaindl stated, “As in the past, we have been intentional in managing our interest rate risk while continuing to focus on offering competitive rates on both our loans and deposits. As we look ahead to the next nine months, we are in a strong position as a significant portion of our loan portfolio will be repricing, giving us an opportunity to enhance returns and maintain our solid financial performance.”
For the quarter ended June 30, 2026, there was a provision for credit losses in the amount of $375,000 compared to a release of the allowance for credit losses of $450,000 for the quarter ended June 30, 2025. The provision for credit losses was primarily due to a significant increase in the loan portfolio. American Bank has an allowance for credit losses of $8.4 million or 0.93% of loans outstanding at June 30, 2026 compared to $7.7 million or 0.93% of loans outstanding at June 30, 2025. Loan quality remained strong with no non-accruing loans at June 30, 2026 and June 30, 2025.
Non-interest income decreased $1.2 million or 69.4% to $542,000 for the quarter ended June 30, 2026 compared to $1.8 million for the quarter ended June 30, 2025. The decrease in non-interest income was primarily the result of gains on other real estate owned of $0 for the quarter ended June 30, 2026 compared to $981,000 for the quarter ended June 30, 2025.
Non-interest expense increased $243,000 or 6.3% for the quarter ended June 30, 2026 compared to the same quarter in 2025. The increase in non-interest expense was primarily the result of higher hosted services, occupancy costs, and operating taxes. American Bank’s operating expense to average asset ratio decreased to 1.51% for the quarter ended June 30, 2026 from 1.55% for the quarter ended June 30, 2025. American Bank’s operating expense to average asset ratio remains one of the lowest in the country.
Income tax expense decreased $243,000 or 22.9% for the quarter ended June 30, 2026 compared to the same quarter in 2025. The effective tax rate of 19.7% for the quarter ended June 30, 2026 was comparable to the effective tax rate of 20.3% for the quarter ended June 30, 2025.
Year-to-Date Results
Net income for the six months ended June 30, 2026 was $7.2 million, or $1.10 per diluted share, an increase of $688,000 or 10.5% from the six months ended June 30, 2025. The increase in net income for the six month period was attributable to an increase in net interest income, offset by increases in the provision for credit losses and non-interest expense, and a decrease in non-interest income.
Return on average assets for the six-month period ended June 30, 2026 increased to 1.34% compared to 1.32% for the same period in 2025. Return on average equity for the six-month period ended June 30, 2026 decreased to 13.16% compared to 13.23% for the same period in 2025.
Net interest income for the six months ended June 30, 2026 was $15.9 million, an increase of $2.4 million or 17.4% from the six-month period ended June 30, 2025. Net interest margin increased 20 basis points to 3.03% year-to-date for the first six months ended June 30, 2026 compared to 2.83% for the first six months of 2025.
For the six months ended June 30, 2026, there was a provision for credit losses in the amount of $529,000, which was an increase of $357,000 from the provision for credit losses of $172,000 recorded for the six months ended June 30, 2025. The increase in the provision for credit losses was primarily due to significant increases in the loan portfolio year over year, specifically in the commercial loan portfolio.
Non-interest income was $1.9 million for the six months ended June 30, 2026 compared to $2.5 million for the six months ended June 30, 2025. The fluctuation in non-interest income was for generally the same reasons as described in the quarter-to-date section.
Non-interest expense increased $597,000 or 7.8% to $8.3 million for the six months ended June 30, 2026 compared to the six months ended June 30, 2025. The fluctuation in non-interest expense was primarily due to increases in salaries and employee benefits, hosted services, and operating taxes. American Bank’s operating expense to average asset ratio decreased 2 basis points to 1.53% for the six months ended June 30, 2026 from 1.55% for the quarter ended June 30, 2025.
Income tax expense increased $155,000 or 9.4% for the six months ended June 30, 2026 compared to the six months ended June 30, 2025. The effective tax rate for the first six months of 2026 was 20.0% compared to the effective tax rate of 20.2% for the first six months of 2025.
American Bank is a "well capitalized" institution under 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.