CONTACT: Mark W. Jaindl, President and Chief Executive Officer
Allentown, PA, July 14, 2004
American Bank, Inc. (NasdaqSC: AMBK), the parent company of American Bank, today announced improved earnings for the quarter ended June 30, 2004. Net income for the quarter was $602,000, or $0.08 per diluted share, an increase of $49,000, or 8.9%, from the same period in the prior year. At the end of the quarter, assets totaled $511 million, up 6.9% from $478 million at June 30, 2003. American Bank’s loan portfolio totaled $221.6 million as of June 30, 2004, up from $156.1 million at the same time last year, an increase of $65.5 million. Total deposits reached $351 million as of June 30, 2004, up from $324 million from the same time the previous year.
The improvement in second quarter earnings is attributable to an increase of $31.0 million of average earning assets and an increase of 26 basis points in the net interest margin in the current quarter compared to the prior year. The increase of the net interest margin by 26 basis points during the second quarter of 2004 reflects American Bank’s initiative to increase its loan portfolio as a percentage of total assets. In addition, the Bank maintained its commitment to enhancing shareholder value by controlling expenses and maintaining asset quality. With an operating expense to asset ratio of 1.05%, American Bank is one of the most efficient banks in the country and as a result of controlling costs, the Bank is able to offer customers competitive rates on deposit and loan products. American Bank remains focused on asset quality and continues to report no non-performing loans at June 30, 2004, even with a 41.9% increase in its loan portfolio since the end of the same period of the prior year.”
American Bank common stock last traded at $9.00 per share. American Bank Trust Preferred Securities last traded at $10.25.
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.