CONTACT: Mark W. Jaindl, President and Chief Executive Officer
Allentown, PA, January 10, 2003
Allentown, PA, January 10, 2003 – American Bank, Inc. (NasdaqSC: AMBK), the parent company of American Bank (collectively “American Bank”), today announced record earnings for the quarter and year ended December 31, 2002. Net income for the quarter was $708,000, or $.11 per diluted share, an increase of $307,000 or 76% from the same period in the prior year. For the year ended December 31, 2002, American Bank posted net income of $2,516,000, or $.40 per diluted share, an increase of $1,178,000 or 88% from the prior year. This increase is primarily attributable to an increase of $101.2 million of average earning assets, which was partially offset by a decrease of 33 basis points in the net interest margin since December 31, 2001. During 2002, the assets of American Bank increased by 22.8%, while the quality of its loan portfolio remained high with no non-performing assets at December 31, 2002.
American Bank’s earnings for the fourth quarter marks the thirteenth consecutive quarter of record earnings, making it the only Internet bank in the United States that has attained this succession of earnings increases. Although American Bank currently has no non-performing assets, it did increase its loan loss reserves by $56,000 during the fourth quarter and by $212,000 for the year ended December 31, 2002.
President and CEO Mark Jaindl stated, “Our increase in earnings for the fourth quarter was driven by our ability to control costs. For the quarter ended December 31, 2002, our operating expense to asset ratio declined to 1.18% from 1.46% for the same period in 2001. Reducing this ratio has been important to the success 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’s operating expense ratio of 1.18% 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. American Bank’s efficiency ratio also improved to 55.24% for the three months ended December 31, 2002, compared to 58.02% for the same period in the prior year.
Chairman of the Board of Directors Frederick Jaindl stated, “We are pleased with the progress of the Bank during the past year and look forward to continued, but moderate growth, in 2003. The financial markets were disappointing for many of us during 2002 with the Dow Jones Industrials and Nasdaq falling by approximately 16% and 31% respectively. However, American Bank shareholders recognized an increase in the value of their shares of over 20% during that same period. At American Bank we are committed to both our shareholders and customers and strive to continue our tradition of superior service in financial services while also enhancing shareholder value.”
American Bank common stock last traded at $9.37 per share and the American Bank warrants last traded at $3.55 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.