CONTACT: Mark W. Jaindl, President and Chief Executive Officer
Allentown, PA, April 22, 2004
American Bank, Inc. (NasdaqSC: AMBK), the parent company of American Bank, today announced record earnings for the quarter ended March 31, 2004. Net income for the quarter was $851,000, or $0.12 per diluted share, an increase of $39,000, or 4.80%, from the same period in the prior year. At the end of the quarter, assets totaled $505 million, up 8.60% from $465 million at March 31, 2003. Total deposits reached $350 million as of March 31, 2004, up from $316 million from the same time the previous year.
The improvement in first quarter earnings is attributable to an increase of $38.3 million of earning assets and an increase of 8 basis points in the net interest margin in the current quarter compared to the prior year. Also contributing to the improvement in net income was an increase of $173,000 of non-interest income.
President and CEO Mark Jaindl stated, “Our emphasis on serving small-to medium-sized commercial businesses throughout the Lehigh Valley proved beneficial for us as we increased our loan portfolio by $65.8 million since March 2003. Even with the significant increase in our loan portfolio, asset quality continues to be a priority and we again ended the quarter with no non-performing assets.”
On January 21, 2004, the Company’s Board of Directors announced the payment of its first annual dividend of $.10 per share payable on March 1, 2004. In addition, the Board initiated a dividend reinvestment program which offers a discount of up to 10% on shares purchased. As a result of significant shareholder participation in the reinvestment plan, the Company increased its capital, net of the cash dividend paid, by over $2 million during the first quarter.
Jaindl continued, “I would like to thank everyone who extended their support to my family after the loss of my father on March 29th. Fred served on a number of bank boards over the years including Kutztown National Bank, First National Bank of Allentown and Sovereign Bank. While serving on these boards, most recently, as Chairman of American Bank, he always put the interest of the shareholder above his own and was viewed by all as a strong shareholder advocate. This philosophy is surely representative of your Board of Directors and I will do my best to carry on his legacy. Fred will be deeply missed by everyone at American Bank.”
American Bank common stock last traded at $10.99 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.