American Bank Reports Second Quarter Earnings

CONTACT: Mark W. Jaindl, President and Chief Executive Officer
Allentown, PA, July 18, 2000

American Bank (OTCBB: ABKA), a leading provider of Internet banking and financial services (, today announced earnings for the quarter and six months ended June 30, 2000. Net income for the quarter was $86,000, or $.03 per share, an increase of $193,000 from the same period in the prior year. For the six months ended June 30, 2000, American Bank posted net income of $128,000, or $.04 per share. Net interest income for the current quarter increased $429,000, or 76.2%, over the prior year quarter and for the six months ended June 30, 2000 increased $798,000, or 75.1%, from the same period in the prior year. These increases are primarily attributable to an increase of $71.1 million of earning assets and an increase of 30 basis points in the net interest margin since June 30, 1999.

Total assets grew $53.6 million, or 47.7%, from $112.3 million at December 31, 1999 to $166.0 million at June 30, 2000. Loans receivable increased $22.9 million, or 43.0%, since December 31, 1999. As a result of a recent common stock offering, shareholders’ equity increased by $9.8 million to $21.5 million, an increase of 84.8% from December 31, 1999.

President and CEO Mark Jaindl stated, “While the loan growth at American Bank has been strong during 2000, we are pleased that the quality of our assets remains high with no non-performing assets at June 30, 2000. In addition, while we have increased our asset size, we continue to maintain low overhead levels. For the quarter ended June 30, 2000, our ratio of operating expense to assets declined to less than 2.3%.”

American Bank’s efficiency ratio improved to 80.9% for the three months ended June 30, 2000 compared to 97.8% for the same period in the prior year. In addition, return on assets and return on equity increased for the three months ended June 30, 2000 to .23% and 2.38%, respectively.

Chairman of the Board of Directors Frederick Jaindl stated, “We are very pleased with the progress of American Bank since the beginning of the year and look forward to utilizing the additional capital raised during June to support our continued growth and enhance shareholder value.”

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® 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, 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.