CONTACT: Mark W. Jaindl, President and Chief Executive Officer
Allentown, PA, April 11, 2007
American Bank Incorporated (NasdaqCM: AMBK), the parent company of American Bank, today announced earnings for the quarter ended March 31, 2007. Net income for the quarter was $759,000, or $0.12 per diluted share, an increase from $738,000 or $0.10 per diluted share for the same period in the prior year. Net interest income for the quarter ended March 31, 2007 was $2.3 million, a decrease of $279,000 from the prior year quarter ended March 31, 2006. The decrease in net interest income was a result of a decrease in average interest-earning assets of $23.5 million to $484.6 million at March 31, 2007 and a 13 basis point decline in net interest margin to 1.93% at March 31, 2007, a consequence of the continued inverted Treasury yield curve. Total assets were $504.4 million at the end of the quarter, while total deposits increased to $384.6 million. Non-interest income increased by $290,000 to $407,000 for the quarter ended March 31, 2007, compared to $117,000 for the quarter ended March 31, 2006. The increase was primarily the result of gains realized on sales of securities of $194,000 in the current quarter compared to a net loss of $90,000 for the same period in 2006. Non-interest expense increased $110,000, to $1.6 million during the quarter ended March 31, 2007, compared to $1.5 million for the quarter ended March 31, 2006. The increase in non-interest expense was partially the result of a new assessment for FDIC insurance of $48,000 and expenses relating to the previously announced deregistration of $42,000.
In addition to the release of first quarter earnings, President and CEO Mark W. Jaindl stated, “On April 2, 2007, Conestoga Bancorp, Inc. closed on the purchase of PSB Bancorp, Inc. at a price of $16.72 per share. On that date, American Bank, Inc. held 321,643 shares of PBS Bancorp, Inc. stock and will realize an after-tax gain on the sale of approximately $1.6 million in the second quarter of 2007.”
On March 20, 2007, the Board of Directors of American Bank, Inc. declared a quarterly dividend of $0.05 per share of common stock to shareholders of record on April 13, 2007 and payable on April 27, 2007. American Bank will also continue its Dividend Reinvestment Plan, which allows 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.
In a continued effort to enhance shareholder value, on February 8, 2007, the Board of Directors of American Bank, Inc. announced that it had approved a plan to deregister the Company’s common stock with the Securities and Exchange Commission (“SEC”). The decision to deregister the Company was made by the Board after careful consideration and review of the costs and burdens related to remaining a public company, including compliance with provisions of Sarbanes Oxley, specifically SOX 404. The deregistration of the Company’s common stock will allow the Board and management to focus their time and efforts on the long-term growth and profitability of the Company, and will have an immediate positive impact on earnings as it will result in the avoidance of future costs and the reduction of current costs totaling approximately $275,000 annually. It is expected that a shareholder vote on the deregistration will occur at the Annual Shareholders meeting to be held in late June or July.
American Bank, Inc. common stock last traded at $8.37 per share. American Capital Trust I Preferred Securities last traded at $9.00.
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.