CONTACT: Mark W. Jaindl, President and Chief Executive Officer
Allentown, PA, April 21, 2006
American Bank, Inc. (NasdaqSC: AMBK), the parent company of American Bank, today announced earnings for the quarter ended March 31, 2006. Net income for the quarter was $738,000, or $0.10 per diluted share, a decrease from $0.12 per diluted share in the same period in the prior year. While American Bank recognized a decrease in net income for the quarter, net interest income for the quarter ended March 31, 2006 was $2.6 million, unchanged from the prior year quarter ended March 31, 2005. The primary reason for the decrease in first quarter net income is attributable to a pre-tax impairment charge of $145,000 on available for sale investment securities. The impairment charge resulted from management’s determination that Fannie Mae Preferred Stock Series-F was other than temporarily impaired at March 31, 2006. Also impacting the current quarter were the legal and accounting costs associated with the repurchase of 1.4 million shares of the Company’s common stock.
Average interest-earning assets increased $11.6 million, to $508.0 million at March 31, 2006, compared to $496.4 million at March 31, 2005. Total assets were $525 million at the end of the quarter, while total deposits reached $383 million as of March 31, 2006. While the Company’s net interest margin increased by seven basis points to 2.06% at March 31, 2006 when compared to December 31, 2005, it decreased by six basis points when compared to 2.12% at March 31, 2005, a result of the flattening of the Treasury yield curve during the year.
President and CEO Mark Jaindl stated, “Although the Company incurred non-recurring expenses during the first quarter which impacted our net income, our emphasis on serving small- to medium-sized commercial businesses throughout the Lehigh Valley proved beneficial as we increased our loan portfolio by 22.4%, or $56.1 million, since March 2005. While we are increasing our loan balances, we remain focused on asset quality as evidenced by non-performing assets, which remained at less than $40,000 at March 31, 2006.”
Jaindl continued, “We continue to implement strategies to enhance shareholder value and this was most recently evidenced by the 33% increase in our annual dividend rate and the decision by our Board of Directors to pay dividends quarterly as opposed to annually. On March 21, 2006, our Board of Directors declared a quarterly dividend of $0.04 per share of common stock to shareholders of record on April 14, 2006. In addition, the Board has determined to allow for the reinvestment of dividends 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 $8.25 per share.
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.