CONTACT: Mark W. Jaindl, President and Chief Executive Officer
Allentown, PA, October 10, 2006
American Bank Incorporated (NasdaqSC: AMBK), the parent company of American Bank, today announced earnings for the quarter and nine months ended September 30, 2006. Net income for the quarter was $734,000, or $0.12 per diluted share, an increase of 20.0% from the $0.10 per diluted share reported in the same period of the prior year. While total quarterly earnings increased slightly from the prior year, the increase in earnings per share was positively impacted by the repurchase of approximately 1.56 million shares of common stock since the beginning of 2006. American Bank currently has approximately 169,000 shares remaining in its previously announced repurchase program.
American Bank’s net loans outstanding totaled $318.3 million as of September 30, 2006, up from $287.7 million at the same time last year, an increase of 10.6%, or $30.6 million. At the end of the quarter, assets totaled $520.6 million, which was down from $528.5 million at September 30, 2005. President and CEO Mark W. Jaindl stated, “In addition to implementing changes aimed at enhancing net interest margin through increased loan growth, American Bank remains focused on maintaining strong asset quality as was evidenced by the loan portfolio which remains strong with less than $190,000 in non-performing loans at the end of the quarter.”
On September 1, 2006, American Bank reported that it could realize a significant gain on the sale of shares of PSB Bancorp, Inc. if the proposed acquisition of PSB Bancorp by Conestoga Bancorp, Inc. is completed. American Bank Incorporated owns 347,643 shares of PSB Bancorp common stock at an average cost per share of $9.18.
PSB Bancorp, the holding company for First Penn Bank, announced on August 31, 2006 that it has executed a definitive agreement with Conestoga Bancorp for the sale of PSB Bancorp to Conestoga Bancorp at a price of $17.00 per share, payable in cash. The price per share payable by Conestoga Bancorp is subject to a potential maximum downward adjustment of $0.66 per share.
The sale could result in an after-tax gain for American Bank Incorporated of approximately $1.66 to $1.82 million, or $0.28 to $0.30 per American Bank Incorporated share, respectively. The transaction is expected to close in the fourth quarter of 2006 or the first quarter of 2007.
On September 21, 2006, the Board of Directors of American Bank declared a quarterly dividend of $0.04 per share of common stock to shareholders of record on October 13, 2006 and payable on October 27, 2006. In addition, the Board approved the continuance of the reinvestment of dividends by shareholders to purchase additional shares of American Bank Inc. common stock at a 5% discount to the average of the closing “bid” and “ask” price on the Record Date.
American Bank common stock last traded at $7.55 per share. American Bank Trust Preferred Securities last traded at $9.25.
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 Bankrate.com® 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 AMBK.com, 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.