CONTACT: Mark W. Jaindl, President and Chief Executive Officer
Allentown, PA, January 21, 2004
American Bank, Inc. (NasdaqSC: AMBK), the parent company of American Bank, today announced record earnings for the fourth quarter and year ended December 31, 2003. Net income for the quarter was $717,000, or $.10 per diluted share, an increase of $9,000 or 1.3% from the same period in the prior year. For the year ended December 31, 2003, American Bank, Inc. posted net income of $2,637,000, or $.39 per diluted share, an increase of $121,000 or 4.8% from the prior year. Earnings for the year were positively impacted by a $1,044,000 increase in non-interest income and although earning assets of the Company increased by $28.2 million to $472.3 million, earnings were negatively affected by a decrease of 47 basis points in the net interest margin since December 31, 2002. During 2003, loans outstanding increased by $69.9 million, or 51.8%, to $204.8 million at December 31, 2003, while the quality of American Bank’s loan portfolio remained high with no non-performing assets at year end.
President and CEO Mark Jaindl stated, “For the year ended December 31, 2003, our operating expense to asset ratio declined to 1.10% from 1.28% for the year 2002. Less than 1% of the all commercial banks in the United States have a ratio at or below this level and commercial banks with assets between $100 million and $1 billion have an average operating expense to asset ratio over 3.00%. Reducing this ratio has been an important component of American Bank’s business model. By maintaining low operating expenses, we can consistently offer our customers attractive rates on loan and deposit products.” American Bank, Inc.’s efficiency ratio improved to 55.29% for the year ended December 31, 2003 compared to 57.70% for the year 2002.
Chairman of the Board of Directors Frederick Jaindl stated, “We are pleased with the progress of American Bank, Inc. during the past year and look forward to continued growth in 2004. We remain focused on enhancing shareholder value and on March 1, 2004 American Bank, Inc. will commence an annual cash dividend policy, paying to shareholders of record on February 16, 2004 a $.10 per share annual cash dividend. In addition, shareholders enrolling at least 375 shares in certificate form in the Plan will be given the opportunity to reinvest, at a 10% discount, the dividend and additional optional cash payments in common shares of American Bank, Inc.” As described in the Prospectus, shareholders will be allowed to make optional cash payments up to four times the amount of dividends received on the shares enrolled in the Plan. A Prospectus will be mailed to shareholders during the next week outlining the specific terms of the Dividend Reinvestment Plan.
American Bank, Inc. common stock last traded at $9.25 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.