CONTACT: Mark W. Jaindl, President and Chief Executive Officer
Allentown, PA, July 19, 2006
American Bank Incorporated (NasdaqSC: AMBK), the parent company of American Bank, today announced earnings for the quarter and six months ended June 30, 2006. Net income for the quarter was $685,000, or $0.11 per diluted share, which was equal to the $0.11 per diluted share in the same period in the prior year. American Bank’s net loans outstanding totaled $315 million as of June 30, 2006, up from $272 million at the same time last year, an increase of 15.8%, or $43 million. At the end of the quarter, assets totaled $533 million, up 2.3% from $521 million at June 30, 2005. Total deposits were $371 million as of June 30, 2006, up from $358 million from the same time the previous year.
President and CEO Mark Jaindl stated, “One of the biggest challenges facing the banking industry today is the flat yield curve, which has a negative impact on net interest margin. To enhance net interest margin, we will continue to increase the level of higher yielding assets through the development of our loan portfolio. While we have increased our loan portfolio by 15.8% during the last year, the quality of the portfolio remains strong.”
On June 20, 2006, the Board of Directors of American Bank declared a quarterly dividend of $0.04 per share of common stock to shareholders of record on July 14, 2006 and payable on July 28, 2006. In addition, the Board approved the continuance of the reinvestment of dividends by shareholders to purchase additional shares of American Bank Inc. common stock at a 5% discount to the average of the closing “bid” and “ask” price on the Record Date.
American Bank common stock last traded at $7.83 per share. American Bank Trust Preferred Securities last traded at $9.25.
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.