CONTACT: Mark W. Jaindl, President and Chief Executive Officer
Allentown, PA, January 19, 2006
American Bank, Inc. (NasdaqSC: AMBK), the parent company of American Bank, today announced record earnings for the year ended December 31, 2005. Net income for the year was $3,532,000, or $0.45 per diluted share, an increase of $365,000 or 11.5% from the prior year. For the quarter ended December 31, 2005, American Bank, Inc. posted net income of $1,000,000, or $0.12 per diluted share. The increase in net income for the year ended December 31, 2005 is the result of an increase of $18.8 million of average earning assets and an increase in the net interest margin of 11 basis points. American Bank’s net loans outstanding increased by $59.0 million, or 24.4%, to $301.4 million at December 31, 2005. Total deposits increased $23.2 million, or 6.7%, to $369.0 million during the twelve month period.
President and CEO Mark Jaindl stated, “We are pleased with our progress during 2005, which also marks the eighth year of increased profitability for American Bank. Our earnings growth was driven by increases in net loans outstanding and net interest margin, resulting in an increase of $876,000, or 9.6%, in net interest income. While our level of loan growth throughout 2005 was strong, we were able to achieve this growth without sacrificing asset quality as illustrated through non-performing assets, which were only $40,000 at December 31, 2005. We also continue to control costs, as was evidenced by the decrease in our operating expense ratio to 1.09% for the quarter ended December 31, 2005, from 1.12% for the quarter ended September 30, 2005. American Bank is one of a few banks throughout the country with an operating expense ratio at or below this level.”
Jaindl continued, “As part of our continued focus on enhancing shareholder value, on January 17, 2006, the Board of Directors declared a dividend of $0.12 per share to shareholders of record on February 15, 2006 and payable on March 1, 2006. This is an increase of 9% over the dividend paid in 2005. In addition, shareholders participating in the Dividend Reinvestment and Stock Purchase Plan will be given the opportunity to purchase additional shares of American Bank Inc. common stock at a 10% discount to the market price. A full plan description will be mailed to shareholders on or about February 1, 2006.”
American Bank, Inc. common stock last traded at $8.40 per share. American Capital Trust I 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.