CONTACT: Mark W. Jaindl, President and Chief Executive Officer
Allentown, PA, July 16, 2008
American Bank Incorporated (OTC BB: AMBK.OB), the parent company of American Bank, today announced earnings for the quarter ended June 30, 2008. Net income for the quarter was $874,000, or $0.14 per diluted share, an increase from $709,000 or $0.12 per diluted share for the first quarter of 2008. Comparing the net income of the second quarter of 2008 to the net income of the second quarter of 2007 would not properly reflect the performance of the Company as 2007 earnings included a one-time $1.45 million after-tax increase in non-interest income.
Net interest income for the quarter ended June 30, 2008 was $2.6 million, an increase of $14,000 from the prior year quarter ended June 30, 2007. Although average interest-earning assets declined by $9.0 million to $482.4 million at June 30, 2008, the increase in net interest income was a result of a 10 basis point improvement in the Company’s net interest margin to 2.17% for the quarter ended June 30, 2008 from 2.07% for the same quarter in the prior year.
Loan quality remained strong at June 30, 2008 with only $56,000 in non-performing loans. The low level of non-performing loans may be attributed to American Bank’s conservative underwriting standards and the fact that it did not participate in “sub-prime” lending. While non-performing loans are minimal, given the current economic environment American Bank has set aside reserves of over $4.3 million in the event they are needed.
Non-interest expense decreased $119,000 to $1.6 million, or 1.30% of average assets, during the quarter ended June 30, 2008, compared to $1.7 million, or 1.37% of average assets, for the quarter ended June 30, 2007. The decrease in non-interest expense was attributable to a decrease of $130,000 in professional fees. The Company experienced an increase in professional fees during the prior year primarily due to the Company’s SEC deregistration which was not incurred this year.
American Bank is a “well capitalized” institution under all regulatory capital standards.
American Bank, Inc. common stock last traded at $6.80 per share. American Bank, Inc. Series A preferred stock (AMBKO.OB) is listed on the OTC BB but has not traded to date. American Capital Trust I Preferred Securities last traded at $7.75.
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.