CONTACT: Mark W. Jaindl, President and Chief Executive Officer
Allentown, PA, October 15, 2004
American Bank, Inc. (NasdaqSC: AMBK), the parent company of American Bank, today announced earnings for the quarter ended September 30, 2004. Net income for the quarter was $705,000, or $0.10 per diluted share, an increase of $149,000, or 26.80%, from the same period in the prior year. At the end of the quarter, assets totaled $515 million, up 7.52% from $479 million at September 30, 2003. Total deposits reached $356 million as of September 30, 2004, up from $325 million from the same time the previous year. American Bank’s loan portfolio totaled $234 million as of September 30, 2004, up from $187 million at the same time last year, an increase of $47 million.
The improvement in third quarter earnings is attributable to an increase of $26 million of average earning assets and an increase of 51 basis points in the net interest margin in the current quarter compared to the prior year. Net interest income for the quarter ended September 30, 2004 increased $650,000, or 41.88%, to $2.2 million compared to $1.5 million for the same quarter in 2003. For the nine months ended September 30, 2004, net interest income increased $1.3 million, or 24.53%, to $6.6 million from $5.3 million recorded for the nine months ended September 30, 2003. Partially offsetting the improvement in net interest income for the quarter was a decrease of $461,000 of non-interest income, the result of decreases in the amount of gains realized on the sale of securities and the sale of residential mortgage loans.
President and CEO Mark Jaindl stated, “We are pleased to report that the earnings of American Bank continue to be strong as evidenced by the increase in net income of 26.80% and the increase of 51 basis points in net interest margin during the third quarter of 2004. We also continue our focus on controlling expenses as our operating expense to asset ratio decreased to 1.05% from 1.07% in the same period of the prior year. Asset quality remains strong for the third quarter of 2004 as we had one loan with an unpaid balance of $160,000 that was classified as non-performing. By maintaining our focus on our core banking business, we were able to control costs and improve our efficiency while at the same time offer our customers competitive rates on loan and deposit products and provide the unparalleled customer service they have come to expect from American Bank.”
The regulatory capital positions of the Company and the Bank also remain strong. At September 30, 2004, Tier I Capital of the Company was 9.84%, an increase of 0.64% from 9.20% at September 30, 2003. Tier I Capital of the Bank at September 30, 2004 was 7.98%, an increase of 0.32% from 7.66% at September 30, 2003.
American Bank common stock last traded at $8.71 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.