CONTACT: Mark W. Jaindl, President and Chief Executive Officer
Allentown, PA, July 12, 2007
American Bank Incorporated (OTC BB: AMBK.OB), the parent company of American Bank, today announced earnings for the quarter ended June 30, 2007. Net income for the quarter was $1.98 million, or $0.29 per diluted share, an increase from $685,000 or $0.11 per diluted share for the same period in the prior year. The increase in net income was the result of a $1.45 million after-tax increase in non-interest income during the quarter resulting from a one-time after-tax gain of $1.6 million on the previously announced sale of PSB Bancorp, Inc. stock, but offset by an after-tax impairment charge of $165,000 relating to common shares of other financial institutions held by the Company.
Net interest income for the quarter ended June 30, 2007 was $2.6 million, an increase of $191,000 from the prior year quarter ended June 30, 2006. Although average interest-earning assets declined by $19.1 million to $488.4 million at June 30, 2007, the increase in net interest income was a result of an improvement in the Company’s net interest margin to 2.08% for the quarter ended June 30, 2007 from 1.92% for the same quarter in the prior year. Total assets declined by $31.3 million to $501.9 million at the end of the quarter, while total deposits increased by $25.1 million to $395.8 million. Non-interest expense increased $203,000 to $1.7 million during the quarter ended June 30, 2007, compared to $1.5 million for the quarter ended June 30, 2006. The increase in non-interest expense was attributable to an increase of $122,000 in salary and benefit costs, $43,000 in professional fees, primarily associated with the Company’s SEC deregistration and $48,000 in federal deposit insurance premiums. The Federal Deposit Insurance Corporation began assessing insurance premiums in January of 2007.
As was previously announced, in a continued effort to enhance shareholder value, the Company completed its deregistration of the Company’s common stock under the Securities Exchange Act of 1934, as amended, on July 10, 2007. President and CEO Mark W. Jaindl stated, “With the deregistration of the Company’s common stock completed, the Board of Directors and management can now focus their time and efforts on the long-term growth and profitability of the Company as well as enhancing shareholder value.”
On June 26, 2007, the Board of Directors of American Bank, Inc. declared a quarterly dividend of $0.05 per share of common stock to shareholders of record on July 6, 2007 and payable on July 20, 2007.
American Bank, Inc. common stock (AMBK.OB) last traded at $7.85 per share. American Capital Trust I Preferred Securities (AMBKP.OB) last traded at $8.75. It is anticipated that the American Bank, Inc. Series A preferred stock (AMBKO.OB) will begin trading before the end of July.
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.