CONTACT: Mark W. Jaindl, Chairman and CEO
Allentown, PA, October 9, 2026
American Bank Incorporated (OTCID Basic Market: AMBK), the parent company of American Bank, today announced earnings for the quarter and nine months ended September 30, 2026. Net income for the quarter was $4,340,000 or $0.68 per diluted share, an increase of $1,044,000 or 31.7% from $3,296,000 or $0.51 per diluted share for the third quarter of 2025. The increase in net income for the quarter was primarily attributable to an increase in net interest income and a decrease in non-interest expense, offset by an increase in the provision for credit losses and a decrease in non-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 September 30, 2026 and September 30, 2025.
Total assets increased $120.1 million or 11.6% to $1,155,403,000 as of September 30, 2026 compared to $1,035,307,000 as of September 30, 2025. Net loans increased $73.4 million or 8.8% from September 30, 2025 due to growth in the commercial and residential loan portfolios. Investment securities available-for-sale increased $48.2 million or 50.7% from September 30, 2025. The increase in net loans and investment securities available-for-sale was offset by an increase in total deposits of $105.2 million or 12.4%, and an increase in total borrowings $5.0 million or 7.9%.
Return on average assets for the quarter ended September 30, 2026 increased to 1.53% from 1.27% for the quarter ended September 30, 2025. Return on average equity for the quarter ended September 30, 2026 increased to 15.39% from 12.76% for the same period in 2025. The increases in the foregoing ratios were the result of increases in net income and increases in average assets and average equity.
Net interest income for the quarter ended September 30, 2026 was $8,829,000, an increase of $1.5 million or 20.6% from the quarter ended September 30, 2025. Net interest income increased due to loan 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 our depositors. Net interest margin increased 29 basis points to 3.20% for the quarter ended September 30, 2026 from 2.91% for the quarter ended September 30, 2025.
President and CEO Mark Jaindl stated, “American Bank delivered record quarterly net income, marked by growth in earnings, assets, and loans. Our 31.7% increase in net income reflects the deliberate execution of our strategic plans and continued growth in our commercial and residential loan portfolios. As total assets surpassed another milestone and net interest income increased more than 20%, we improved profitability while maintaining our focus on building customer relationships and strong credit quality. We remain well positioned for future growth and are grateful for the trust our customers, shareholders, and communities place in us.”
For the quarter ended September 30, 2026, there was a provision for credit losses in the amount of $217,000 compared to a release of the allowance for credit losses in the amount of $11,000 for the quarter ended September 30, 2025. The provision for credit losses for the third quarter was primarily due to significant growth in the loan portfolio. American Bank has an allowance for credit losses of $8.6 million or 0.94% of loans outstanding at September 30, 2026 compared to $7.8 million or 0.92% of loans outstanding at September 30, 2025. Loan quality remained strong with no non-accruing loans at September 30, 2026 and September 30, 2025.
Non-interest income decreased $691,000 or 54.4% to $579,000 for the quarter ended September 30, 2026 as compared to $1,270,000 for the quarter ended September 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 September 30, 2026 compared to $662,000 for the quarter ended September 30, 2025.
Non-interest expense decreased $743,000 or 16.6% to $3.7 million for the quarter ended September 30, 2026 compared to the same quarter in 2025. The decrease in non-interest expense was primarily the result of lower professional services and costs associated with other real estate owned. American Bank’s operating expense to average asset ratio decreased to 1.32% for the quarter ended September 30, 2026 compared to 1.72% for the quarter ended September 30, 2025. American Bank’s operating expense to average asset ratio remains one of the lowest in the country.
Income tax expense increased $288,000 or 34.9% for the quarter ended September 30, 2026 compared to the same quarter in 2025. The effective tax rate of 20.4% for the quarter ended September 30, 2026 was comparable to the effective tax rate of 20.0% for the quarter ended September 30, 2025.
Year-to-Date Results
Net income for the nine months ended September 30, 2026 was $11.6 million, or $1.77 per diluted share, an increase of $1.7 million or 17.6% from the nine months ended September 30, 2025. The increase in net income for the nine-month period ended September 30, 2026 was for generally the same reasons as described in the quarter-to-date section above.
Return on average assets for the nine-month period ended September 30, 2026 increased to 1.40% compared to 1.30% for the same period in 2025. Return on average equity for the nine-month period ended September 30, 2026 was 13.92% compared to 13.07% for the same period in 2025.
Net interest income for the nine months ended September 30, 2026 was $24.7 million, an increase of $3.9 million or 18.5% from the nine-month period ended September 30, 2025. Net interest margin increased 23 basis points to 3.09% year-to-date for the nine months ended September 30, 2026 compared 2.86% for the nine months ended September 30, 2025.
For the nine months ended September 30, 2026, there was a provision for credit losses in the amount of $746,000, which was an increase of $585,000 from the provision for credit losses in the amount of $161,000 recorded for the nine months ended September 30, 2025. The increase in the provision for credit losses was for generally the same reasons as described in the quarter-to-date section above.
Non-interest income decreased $1.3 million or 33.2% for the nine months ended September 30, 2026 compared to the nine months ended September 30, 2025. The decrease in non-interest income was for generally the same reasons as described in the quarter-to-date section above.
Non-interest expense decreased $146,000 or 1.2% for the nine months ended September 30, 2026 compared to the nine months ended September 30, 2025. The decrease in non-interest expense was for generally the same reasons as described in the quarter-to-date section above.
Income tax expense increased $443,000 or 17.9% for the nine months ended September 30, 2026 compared to the same period in 2025. The effective tax rate for the first nine months of 2026 was 20.1% compared to the effective tax rate of 20.1% for the first nine 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 over 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.