CONTACT: Mark W. Jaindl, President and Chief Executive Officer
Allentown, PA, July 17, 2003
American Bank, Inc. (NasdaqSC: AMBK), the parent company of American Bank, today announced earnings for the quarter and six months ended June 30, 2003. Net income for the quarter was $553,000, or $0.09 per diluted share, a decrease of $56,000 from the same period in the prior year. Net income for the six months ended June 30, 2003 was $1,365,000, or $0.21 per diluted share, an increase of $167,000 from the same period in the prior year.
The decrease in earnings for the quarter is primarily attributable to a decrease of 76 basis points in the net interest margin compared to June 30, 2002. This decrease was the result, in large part, to accelerated prepayments of residential mortgage backed securities created by the recent refinancing surge. In addition, the Company recorded a provision for loan losses of $201,000 for the current quarter compared to $32,000 for the same period in 2002. Earnings were positively impacted by a $353,000 increase in non-interest income to $497,000 in the current quarter compared to $145,000 for the same quarter in 2002. Also favorably impacting earnings is the Company’s ability to control costs as evidenced by the decline in its operating expense to asset ratio to 1.07% for the quarter ended June 30, 2003 from 1.28% for the same period in 2002.
President and CEO Mark Jaindl stated, “While the economy has been sluggish, we are pleased to report that the quality of our loan portfolio remains strong with no non-performing loans at the end of the quarter. Although we did incur a provision for loan losses of $201,000 during the quarter, it was the result of increased loan closings.”
Jaindl continued, “The continuing decline in our operating expense to asset ratio is an example of our commitment to maintaining an effective and efficient operation. We remain focused on improving our efficiency while still serving our client base with the products and services they need and deserve.”
Chairman of the Board of Directors Frederick Jaindl stated, “We are pleased with the continued, but moderate growth of American Bank during the second quarter of 2003 and remain committed to increasing our growth of assets and earnings through quality loans. We are also pleased with the support of our shareholders as was demonstrated by the additional $5 million in equity created through the exercise of American Bank warrants which expired June 30, 2003.”
American Bank, Inc. common stock last traded at $8.25 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.