CONTACT: Mark W. Jaindl, President and Chief Executive Officer
Allentown, PA, January 19, 2005
American Bank, Inc. (NasdaqSC: AMBK), the parent company of American Bank, today announced record earnings for the quarter and year ended December 31, 2004. Net income for the quarter was $1,009,000, or $.13 per diluted share, an increase of $292,000 or 40.7% from the same period in the prior year. For the year ended December 31, 2004, American Bank, Inc. posted net income of $3,167,000, or $0.43 per diluted share, an increase of $530,000 or 20.1% from the prior year. The increase in net income for the year ended December 31, 2004 is the result of an increase of $23.6 million of average earning assets and an increase of 31 basis points in the net interest margin.
President and CEO Mark Jaindl stated, “We are pleased to be able to deliver another record earnings year to our shareholders, which marks the seventh straight year of increased profitability for American Bank. Our earnings growth was driven by increases in loans outstanding and net interest margin, resulting in an increase of $1,863,000, or 25.6%, in net interest income. Our commitment to providing our customers quality products and services was evidenced by increases in both our loan portfolio and total deposits. American Bank’s loans outstanding increased by $37.5 million, or 18.3%, to $242.3 million at December 31, 2004 and deposits increased $13.4 million, or 4.0%, to $345.7 million during the same period.”
Jaindl continued, “As we maintain our focus on enhancing shareholder value, we are also pleased to announce that on January 18, 2005, the Board of Directors declared a dividend of $0.11 per share to shareholders of record on January 28, 2005 and payable on February 15, 2005. This is an increase of 10% over the dividend paid in 2004. 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 during the next week.”
American Bank, Inc. common stock last traded at $8.53 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.