American Bank Outlines Possible Stock Offering

CONTACT: Mark W. Jaindl, President and Chief Executive Officer
Allentown, PA, February 01, 2000

American Bank today announced the possible terms of a stock offering that, pending satisfactory market conditions, may occur as early as the first half of the year 2000. The proposed offering is expected to increase capital by $10 million to $15 million through the issuance of new shares of common stock. Frederick J. Jaindl, Chairman of American Bank, stated, “Our current strategic business plan contemplates raising additional capital during the first half of 2000. While the date and terms for raising additional capital through a public offering have not been finalized, we will certainly, in recognition of our appreciation to American Bank customers, offer them a priority opportunity to acquire shares issued through a public offering.”

The proceeds of an offering would be used to increase American Bank’s presence in the Lehigh Valley and to further develop growth through other delivery channels, including the Internet. Mark W. Jaindl, President and Chief Executive Officer, stated, “American Bank envisions itself as a “Nationwide Community Bank” offering financial services across the United States through its Internet banking solution, American Bank Online ( Whether at its Lehigh Valley office or over the Internet, American Bank is committed to providing exceptional service to all customers.

With one location, American Bank will eliminate the costs incurred by having an extensive branching network. In a very competitive financial services industry, two primary issues continue to differentiate one bank from another, service and rate. According to Mark Jaindl, “By operating from one location, we believe that we will be able to control service and expenses more effectively. Our goal is to attain an operating expense ratio (operating expenses/total assets) of below 1.5% during the next two years.” American Bank’s expense ratio is currently 2.9% which compares favorably to banks of similar size with expense ratios between 3.5% and 4.5%. By operating at a much lower expense ratio, American Bank will be better positioned to attract customers over the Internet and throughout the Lehigh Valley by passing on expense savings through higher rates on deposits and lower rates on loans, while continuing to offer high levels of service to its commercial, consumer and residential customers.

Mark Jaindl concluded, “While we are pleased with the growth of American Bank to date, our focus is on attaining profitability on or before the end of the first quarter of 2000.” Jaindl added, “During the last twelve months, the stock market has been favorable to Internet stocks, but, in the long run, you must demonstrate an ability to have sustainable and increasing earnings.”

The terms of a public offering have not been finalized and may change at any time prior to the actual offering. This press release is not an offer to sell securities nor is it a solicitation of an offer to buy securities. Any offering will be made only by means of an offering circular.

About American Bank

American Bank is a locally-owned community bank based in Allentown, PA. American Bank 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 as well as being 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.

American Bank offers a complete selection of banking products and services to suit the needs of consumers and businesses and includes checking, money market, savings, certificates of deposit, consumer and commercial loans and Visa credit cards. Dedicated to providing customers superior, personalized customer service, American Bank also offers some of the best loan and deposit rates available and as a result, for the past 12 years, has received the® Top Tier award for consistently offering annual percentage yields (APYs) that were among the highest reported. Their online banking service, AmericanBank Online, which is accessible from the Bank’s website at, allows customers to bank conveniently and delivers a full range of real-time online banking services free of charge including online bill payment and presentment, ACH Direct, transfers between accounts, transaction history, check images and e-Statements. In addition, both consumer and business customers can bank on the go using mobile banking which includes mobile deposit. American Bank is FDIC insured and is an Equal Housing Lender.

AmericanBank Online is a registered trade mark 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.

"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.