CONTACT: Mark W. Jaindl, President and Chief Executive Officer
Allentown, PA, April 21, 2003
American Bank, Inc. (NasdaqSC: AMBK), the parent company of American Bank, today announced record earnings for the quarter ended March 31, 2003. Net income for the quarter was $812,000, or $0.12 per diluted share, an increase of $223,000, or 38%, from the same period in the prior year. This marks the fourteenth straight quarter of increased profitability for the Company.
At the end of the quarter, assets totaled $465 million, up 18% from $394 million at March 31, 2002. Total deposits reached $316 million as of March 31, 2003 up from $276 million from the same time the previous year. Asset quality at American Bank remained strong with no non-performing assets at March 31, 2003.
President and CEO Mark Jaindl stated, “The earnings of American Bank continue to be driven by our ability to control costs. For the quarter ended March 31, 2003, our operating expense to asset ratio declined to 1.13% from 1.34% for the same period in 2002. Reducing this ratio has been important to the success of American Bank’s business model.”
American Bank’s operating expense ratio of 1.13% makes it one of the most efficient banks in the United States as less than 1% of commercial banks nationwide have an operating expense to asset ratio below this level. In addition to controlling costs, the increase in first quarter earnings is attributable to an increase of $77.8 million of average earning assets and an after tax recovery of $165,000 from a previously charged off loan. Earnings were partially offset by a decrease of 55 basis points in the net interest margin in the current quarter compared to the prior year.
Chairman of the Board of Directors Frederick Jaindl stated, “We are pleased with the growth of the Bank during the first quarter as a continuation of our success in 2002. In addition, we look forward to improving American Bank even further through the implementation of a “Commitment to Excellence” program developed during the first quarter of 2003. This program outlines our commitment to both American Bank customers that we will provide quality products and superior service and to shareholders that we will do this while maintaining costs and enhancing shareholder value.”
American Bank common stock last traded at $9.63 per share and the American Bank warrants last traded at $3.39 per warrant. American Bank warrants are exercisable at $6.67 per share through June 30, 2003.
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.