CONTACT: Mark W. Jaindl, President and Chief Executive Officer
Allentown, PA, July 12, 2010
American Bank Incorporated (OTC BB: AMBK.OB), the parent company of American Bank, today announced earnings for the quarter ended June 30, 2010. Net income for the quarter was $1,054,000, or $0.17 per diluted share, an increase from $656,000 or $0.11 per diluted share for the second quarter of 2009. The increase in net income for the quarter ended June 30, 2010 was the result of two non-recurring events that had a negative impact on earnings during the second quarter of 2009. These events included an other-than-temporary impairment charge of $442,000 on pooled trust preferred securities and the accrual of $220,000 for the FDIC Special Assessment imposed on financial institutions.
Net income for the six months ended June 30, 2010 was $2.1 million, or $0.34 per diluted share, an increase from $1.4 million, or $0.24 per diluted share for the six months ended June 30, 2009. The reasons for the increase in net income for the six-month period ended June 30, 2010 included the same non-recurring events that impacted income for the three month period ended June 30, 2010.
Net interest income for the quarter ended June 30, 2010 was $2,914,000, a decrease of $21,000 from the quarter ended June 30, 2009. Average interest-earning assets increased by $3.2 million to $469.0 million at June 30, 2010, while the net interest margin decreased 12 basis points to 2.53%.
Net interest income for the six months ended June 30, 2010 was $5.9 million, an increase of $330,000 from the $5.6 million for the six months ended June 30, 2009. Average interest-earning assets increased by $5.5 million to $472.6 million at June 30, 2010, compared to $467.1 million at June 30, 2009. The net interest margin increased by 14 basis points to 2.60% for the six months ended June 30, 2010 from 2.46% for the six months ended June 30, 2009.
Non-interest income increased by $498,000 during the quarter ended June 30, 2010 compared to the same quarter in 2009. Non-interest income increased by $678,000 for the six months ended June 30, 2010 compared to the six months ended June 30, 2009. The increases in non-interest income result from impairment charges on available for sale securities of $471,000 and $602,000 recognized during the quarter and six months ended June 30, 2009, respectively. There were no impairment charges recognized during 2010.
Non-interest expense decreased $121,000 to $1.6 million, or 1.33% of average assets, during the quarter ended June 30, 2010, compared to $1.7 million, or 1.46% of average assets, for the quarter ended June 30, 2009. Non-interest expense decreased $46,000 to $3,250,000, or 1.35 % of average assets, during the six months ended June 30, 2010 compared to $3,296,000, or 1.37% of average assets for the quarter ended June 30, 2009. Non-interest expense for the quarter and six-month period ended June 30, 2009 was higher than normal due to the FDIC Special Assessment of $220,000 which the Company recognized during the second quarter of 2009.
Loan quality remained strong at June 30, 2010 with no non-performing loans. The absence 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 there are no non-performing loans, given the current economic environment American Bank has set aside reserves of over $4.3 million in the event they are needed.
American Bank is a “well capitalized” institution under all regulatory capital standards.
American Bank, Inc. common stock last traded at $6.00 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 $7.00.
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.