American Bank Reorganizes Into Holding Company Structure

CONTACT: Mark W. Jaindl, President and Chief Executive Officer
Allentown, PA, January 02, 2002

American Bank, a Pennsylvania-chartered commercial bank (OTCBB:AMBK), announced the completion of its reorganization into the holding company structure, pursuant to an Amended Agreement and Plan of Reorganization that was adopted by shareholders on April 17, 2001. In accordance with the Plan, American Bank became the wholly-owned subsidiary of American Bank Incorporated, a Pennsylvania corporation. Upon completion of the reorganization: (1) the outstanding shares of common stock of American Bank, par value $2.50 per share, became, by operation of law, common stock of American Bank Incorporated, par value $.10 per share, on a one-for-one basis, and (2) the outstanding warrants of American Bank, became, by operation of law, warrants to purchase common stock of American Bank Incorporated. The common stock and warrants of American Bank Incorporated are traded under the symbols AMBK and AMBKW, respectively, on the Over the Counter Bulletin Board.

American Bank Incorporated is required to register the common stock underlying the warrants with the Securities and Exchange Commission (the “SEC”) under the Securities Act of 1933. Although trading in the warrants will continue on the OTC Bulletin Board, the warrants cannot be exercised until a registration statement is filed and declared effective by the SEC. American Bank Incorporated expects this to occur in the first calendar quarter of 2002.

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.