American Bank Reports 118% Asset Growth, Fifth Straight Quarter of Increased Earnings

CONTACT: Mark W. Jaindl, President and Chief Executive Officer
Allentown, PA, January 16, 2001

American Bank (OTCBB: ABKA), a leading provider of Internet banking and financial services (, today announced earnings for the quarter and twelve months ended December 31, 2000. Net income for the quarter was $204,300, or $.05 per share, an increase of $191,900 from the same period in the prior year. For the twelve months ended December 31, 2000, American Bank posted net income of $429,200, or $.12 per share, an increase of $547,000 from the same period in the prior year. This increase is primarily attributable to an increase of $127.2 million of earning assets, which was partially offset by a decrease of 17 basis points in the net interest margin since December 31, 1999.

President and CEO Mark Jaindl stated, “During 2000, the assets at American Bank increased by 118%, while the quality of our loan portfolio remained high with no non-performing assets at December 31, 2000. Although we currently have no non-performing assets, we did increase our loan loss reserves by $127,000 during the fourth quarter and by $475,000 for the twelve months ended December 31, 2000 as we recognize that a softening economy may result in future delinquencies.”

Jaindl continued, “For the quarter ended December 31, 2000, our operating expense to asset ratio declined to 1.73% from 2.99% for the same period in 1999. By maintaining low operating expenses, we can consistently offer our customers attractive rates on loan and deposit products, including the 6.25% annual percentage yield we offer on our e-Checking account. Our goal is to attain an operating expense to asset ratio below 1.50% by the end of the fourth quarter of 2001, again allowing American Bank to offer some of the highest rates in the country on deposit products while improving earnings for our shareholders.” American Bank’s efficiency ratio improved to 67.6% for the three months ended December 31, 2000 compared to 94.5% for the same period in the prior year.

Chairman of the Board of Directors Frederick Jaindl stated, “We are pleased with the progress of American Bank during 2000. We made numerous enhancements to our web site, completed a $10 million public stock offering, and have been recognized by numerous third party advisors, including and for the services and products we provide. We remain committed to improving our online offerings and delivering products that make American Bank a leading financial provider on the Internet.”

The number of accounts at American Bank has increased 145% since the beginning of 2000. With a firm commitment to offering some of the best rates available on the Internet, American Bank’s 6.25% annual percentage yield e-Checking account remains a popular deposit product among its customers. American Bank, the first bank in the country to offer an annual percentage yield of 6.25% or higher on a checking account, has been able to maintain this rate as other online banks have lowered rates in an effort to become profitable.

American Bank common stock last traded at $12.00 per share and the American Bank warrants last traded at $4.75 per warrant. American Bank warrants are exercisable at $10.00 per share through June 30, 2003.

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.