CONTACT: Mark W. Jaindl, President and Chief Executive Officer
Allentown, PA, July 19, 2017
American Bank Incorporated (OTC Pink: AMBK), the parent company of American Bank, today announced earnings for the quarter and six months ended June 30, 2017. Net income for the quarter was $1,259,000 or $0.20 per diluted share, an increase of 7.4% from $1,172,000 or $0.19 per diluted share for the second quarter of 2016. The increase in net income for the quarter ended June 30, 2017 was attributable to an increase in net interest income and a decrease in the provision for loan losses.
Total assets increased $16.5 million or 2.9% to $575.4 million as of June 30, 2017 as compared to $558.9 million as of June 30, 2016. Net loans increased $24.4 million or 6.0%, while total deposits grew $0.7 million or 0.2% for the same period.
Return on assets for the three month period ended June 30, 2017 reached 0.89% compared to 0.83% for the same period in 2016. Return on equity for the quarter ended June 30, 2017 was 9.77% compared to 9.78% for the same period in 2016.
Net interest income for the quarter ended June 30, 2017 was $3,926,000, an increase of $296,000 or 8.2% from the quarter ended June 30, 2016. Net interest margin increased 21 basis points to 2.91% for the quarter ended June 30, 2017 as compared to 2.70% for the quarter ended June 30, 2016.
The provision for loan losses was $0 for the quarter ended June 30, 2017 compared to $70,000 for the three months ended June 30, 2016. The decrease in the provision for loan losses was attributable to the Bank’s conservative loan underwriting standards and diligent collection efforts. Loan quality remained strong at June 30, 2017 with three non-accruing loans totaling $112,000. Given the current economic environment, American Bank has set aside reserves of approximately $6.1 million in the event they are needed.
Non-interest income remained relatively flat for the quarter ended June 30, 2017 compared to the same quarter in 2016, while non-interest expense increased $201,000 or 9.6%. The increase in non-interest expense was primarily the result of an increase in advertising, salaries and employee benefit expenses.
Year-to-Date Results
Net income for the six months ended June 30, 2017 was $2.6 million, or $0.40 per diluted share, an increase of $448,000 or 21.3% from the six months ended June 30, 2016. The primary reason for the increase in net income for the six month period ended June 30, 2017 was an increase in net interest income and a decrease in the provision for loan losses.
Return on assets for the six month period ended June 30, 2017 reached 0.92% compared to 0.75% for the same period in 2016. Return on equity for the six month period ended June 30, 2017 was 10.00% compared to 8.83% for the same period in 2016.
Net interest income for the six months ended June 30, 2017 was $7.9 million, an increase of $569,000 from the six month period ended June 30, 2016. Net interest margin increased 23 basis points to 2.96% year-to-date for the first six months ended June 30, 2017 compared to 2.73% for the first six months of 2016.
The provision for loan losses for the six months ended June 30, 2017 was $13,000, a decrease of $366,000 from the provision of $379,000 recorded for the six months ended June 30, 2016.
Non-interest income remained relatively flat for the six months ended June 30, 2017 compared to the six months ended June 30, 2016.
Non-interest expense increased $228,000 for the six months ended June 30, 2017 compared to the six months ended June 30, 2016. The increase was primarily due to an increase in marketing and advertising expenses, including the celebration of the Bank’s 20th anniversary.
American Bank is a "well capitalized" institution under all regulatory capital standards.
American Bank Incorporated common stock last traded at $10.64 per share. American Capital Trust I Preferred Securities last traded at $13.00.
Selected Financial Information
About American Bank
American Bank, headquartered in Allentown, PA, is a locally-owned community bank dedicated to serving customers in the Lehigh Valley for 20 years. American Bank is an early innovator of online banking technology and continues that tradition by providing customers across the country online services that make banking easy and convenient. Their online banking service, AmericanBank Online (available at AMBK.com), allows customers to bank using a full range of real-time online banking services including online bill pay, ACH Direct, transfers between accounts, transaction history, check images and e-Statements. At a time when customers need the ability to bank on the go, American Bank also has mobile banking and mobile deposit for consumer and business customers.
American Bank offers a complete selection of deposit and loan products and convenient services to suit the needs of consumers and businesses. Dedicated to providing customers superior, personalized customer service, American Bank 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.
In addition, it 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 and was 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.
For more information about American Bank, you can visit AmericanBank.bank, a new financially-focused and security-driven top level domain name for respected financial institutions. American Bank is one of the first banks in the nation to take advantage of the ‘.bank’ domain extension.
"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.