CONTACT: Mark W. Jaindl, President and Chief Executive Officer
Allentown, PA, July 16, 2014
American Bank Incorporated (OTC BB: AMBK), the parent company of American Bank, today announced earnings for the quarter and six months ended June 30, 2014. Net income for the quarter was $1,481,000 or $0.23 per diluted share, an increase from $1,173,000 or $0.19 per diluted share for the second quarter of 2013. The increase in net income for the quarter ended June 30, 2014 was the result of net gains on available for sale securities of $618,000.
Net income for the six months ended June 30, 2014 was $2.6 million, or $0.42 per diluted share, an increase of $426,000 from the six months ended June 30, 2013. The primary reason for the increase in net income for the six-month period ended June 30, 2014 was gains on sale of available for sale securities of $829,000.
The provision for loan losses for the six months ended June 30, 2014 was $60,000, a decrease of $25,000 from the provision of $85,000 recorded for the six months ended June 30, 2013. The provision for loan losses recorded for the quarter ended June 30, 2014 was $60,000 compared to $31,000 for the three months ended June 30, 2013. The provision for loan losses is directly related to the amount of new loans originated during the corresponding time period.
Net interest income for the quarter ended June 30, 2014 was $3,214,000, a decrease of $30,000 from the quarter ended June 30, 2013. Average interest-earning assets for the quarter decreased by $2.8 million to $489.9 million at June 30, 2014 compared to the same quarter in 2013, while the net interest margin decreased 4 basis points to 2.61%. Net interest income for the six months ended June 30, 2014 was $6.4 million, the same as the $6.4 million for the six months ended June 30, 2013. Average interest-earning assets for the six months ended June 30, 2014 decreased by $1.1 million to $490.7 million, compared to $491.8 million for the six months ended June 30, 2013. The net interest margin increased by 1 basis point to 2.61% for the six months ended June 30, 2014 from 2.60% for the six months ended June 30, 2013.
Non-interest income increased by $588,000 during the quarter ended June 30, 2014 compared to the same quarter in 2013. The increase was the result of gains on sale of available for sale securities of $618,000, offset by decreases in gains on sale of loans and service fees on deposit accounts. Non-interest income increased by $750,000 for the six months ended June 30, 2014 compared to the six months ended June 30, 2013. The increase in non-interest income for the six months ended in 2014 results from gains on sale of available for sale securities of $829,000, off-set by decreases in gains on sale of loans of $55,000, earnings from Bank owned life insurance of $16,000 and service charges on deposit accounts of $11,000.
Non-interest expense increased $65,000 for the quarter ended June 30, 2014 compared to the same quarter in 2013, the result of an increase in salaries and wages and employee benefits. Non-interest expense increased $133,000 for the six months ended June 30, 2014 compared to the six months ended June 30, 2013, the result of increases of $123,000 in salaries and wages and $9,000 in employee benefits.
Loan quality remained strong at June 30, 2014 with no non-accruing loans. The absence of non-accruing loans may be attributed to American Bank’s conservative underwriting standards. While there are no non-accruing loans, given the current economic environment American Bank has set aside reserves of over $4.8 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 $8.32 per share. American Bank, Inc. Series A preferred stock (AMBKO) last traded at $7.25. American Capital Trust I Preferred Securities (AMBKP) last traded at $10.10.
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.