American Bank Reports First Quarter 2016 Earnings

CONTACT: Mark W. Jaindl, President and Chief Executive Officer
Allentown, PA, April 26, 2016

American Bank Incorporated (OTC Pink: AMBK), the parent company of American Bank, today announced earnings for the quarter ended March 31, 2016.  Net income for the quarter was $936,000, or $0.15 per diluted share, a decrease of $50,000 from $986,000, or $0.16 per diluted share, for the same period in the prior year.  The decrease in net income for the quarter was the result of an increase in net interest income offset by increases in the provision for loan losses and non-interest expense.

Net interest income for the quarter ended March 31, 2016 was $3,656,000, an increase of $215,000 or 6.2%, from the quarter ended March 31, 2015.  Net interest margin remained relatively flat at 2.76% at March 31, 2016 as compared to 2.77% at March 31, 2015.  The provision for loan losses was $309,000 in the quarter ended March 31, 2016 compared to $199,000 for the quarter ended March 31, 2015 which is a direct result of growth of the loan portfolio during the first quarter of 2016.  

Non-interest income increased $15,000 to $206,000 at March 31, 2016 compared to $191,000 at March 31, 2015.  Non-interest expense increased $188,000 for the quarter ended March 31, 2016, compared to the same quarter in 2015.  This increase was primarily due to higher salaries and employee benefits expense and costs associated with the sale of a foreclosed property in the first quarter of 2016.  American Bank’s operating expense to asset ratio increased to 1.58% for the quarter ended March 31, 2016 compared to 1.54% for the prior year period.  American Bank’s operating expense ratio remains one of the lowest in the country. 

American Bank’s net loans outstanding increased by $38.7 million or 10.4%, to $410.4 million at March 31, 2016.  While there were no non-accruing loans at quarter end, given the current economic environment American Bank has set aside reserves of $5.9 million in the event they are needed. 

American Bank is a "well capitalized" institution based upon all regulatory capital standards.

American Bank Incorporated common stock last traded at $11.73 per share.  American Capital Trust I Preferred Securities last traded at $10.90 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® 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.