CONTACT: Mark W. Jaindl, President and Chief Executive Officer
Allentown, PA, July 12, 2002
American Bank, Inc. (NasdaqSC: AMBK), the parent company of American Bank, today announced record earnings for the quarter and six months ended June 30, 2002. Net income for the quarter was $609,000 or $.10 per diluted share, an increase of $308,000, or 102%, from the same period in the prior year. Net income for the six months ended June 30, 2002 was $1,198,000 or $.19 per diluted share, an increase of $638,000, or 114%, from the same period in the prior year.
The increase in earnings for the quarter is primarily attributable to an increase of $97.4 million of average earning assets and an increase of 9 basis points in the net interest margin compared to June 30, 2001. In addition, earnings were positively impacted by the Company’s ability to control costs as evidenced by the decline in its operating expense to asset ratio from 1.58% for the quarter ended June 30, 2001 to 1.28% for the same period in 2002.
President and CEO Mark Jaindl stated, “We are pleased with the success of American Bank’s business model which, by maintaining low operating expenses, gives us the ability to offer excellent rates to our customers on both loan and deposit products.”
Jaindl continued, “Our control of operating costs and attention to asset quality has resulted in eleven straight quarters of increased profitability and a loan portfolio with no non-performing assets at June 30, 2002.”
Chairman of the Board of Directors Frederick Jaindl added, “During the second quarter we took additional steps to control costs with the introduction of electronic statements and ACH Direct, a service which allows customers to transfer funds from other financial institutions electronically into American Bank accounts. Our Board of Directors and staff remain focused on increasing shareholder value and look forward to continued improvements throughout the remainder of 2002.”
American Bank, Inc. common stock last traded at $6.95 per share and the American Bank, Inc. warrants last traded at $1.83 per warrant. The warrants are exercisable at $6.67 per warrant 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.