CONTACT: Mark W. Jaindl, President and Chief Executive Officer
Allentown, PA, April 21, 2017
American Bank Incorporated (OTC Pink: AMBK), the parent company of American Bank, today announced earnings for the quarter ended March 31, 2017. Net income for the quarter was $1,297,000, or $0.20 per diluted share, an increase of $361,000 or 38.6% from $936,000, or $0.15 per diluted share, for the same period in the prior year. The increase in net income for the quarter was the result of an increase in net interest income and a decrease in the provision for loan losses.
Total assets decreased $9.7 million or 1.7% to $561.8 million as of March 31, 2017 compared to $571.5 million as of March 31, 2016. Net loans increased $25.4 million or 6.2% while deposits decreased $8.2 million or 1.9% for the same period.
Return on assets for the quarter ended March 31, 2017 increased to 0.94% from 0.67% for the same period in 2016. Return on equity for the quarter ended March 31, 2017 increased to 10.24% from 7.87% for the same period in 2016.
Net interest income for the quarter ended March 31, 2017 was $3,929,000, an increase of $273,000 or 7.5%, from the quarter ended March 31, 2016. Net interest margin increased twenty-four basis points to 3.00% at March 31, 2017 as compared to 2.76% at March 31, 2016.
The provision for loan losses was $13,000 for the quarter ended March 31, 2017 compared to $309,000 for the quarter ended March 31, 2016, which was a direct result of no loan growth experienced during the first quarter of 2017. Loan quality remained strong at March 31, 2017 with two non-accruing loans for $99,000, and given the current economic environment, American Bank has set aside reserves of $6.1 million or 1.38% of loans outstanding at March 31, 2017.
Non-interest income and non-interest expense remained relatively flat for the quarter ended March 31, 2017 compared to the same quarter in 2016. American Bank’s operating expense to asset ratio increased to 1.62% for the quarter ended March 31, 2017 compared to 1.58% for the prior year period. American Bank’s operating expense ratio remains one of the lowest in the country.
American Bank is a "well capitalized" institution based upon all regulatory capital standards.
American Bank Incorporated common stock last traded at $12.25 per share. American Capital Trust I Preferred Securities last traded at $11.51 per share.
In celebration of American Bank’s 20th anniversary, the Bank will be hosting a community event at their office at 4029 West Tilghman Street in Allentown on Saturday, June 10, 2017 from 10:00 am to 2:00 pm. There will be food and drinks, games, prizes and entertainment as well as special account promotions. All are invited to attend and join American Bank as they celebrate this important milestone!
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.