CONTACT: Mark W. Jaindl, Chairman and CEO
Allentown, PA, July 12, 2025
American Bank Incorporated (OTCID: AMBK), the parent company of American Bank, today announced earnings for the quarter and six months ended June 30, 2025. Net income for the quarter was $4,185,000, or $0.65 per diluted share, an increase of $1.9 million or 80.5% from $2,319,000, or $0.36 per diluted share, for the second quarter of 2024. The increase in net income for the quarter was attributable to increases in net interest income and non-interest income and a release of the allowance for credit losses, offset by an increase in non-interest expense. The release was primarily the result of a decrease in non-performing loans and macro-economic factors considered in the forecasting and qualitative components of the Company’s determination of the allowance for credit losses. The Company did not experience deterioration in asset quality during the quarter as total non-accruing loans as a percentage of total loans decreased to 0% at June 30, 2025, compared to 0.43% at June 30, 2024.
Total assets increased $98.7 million or 10.7% to $1.0 billion as of June 30, 2025 compared to $918.5 million as of June 30, 2024. Net loans increased $58.8 million or 7.8% from June 30, 2024 due to growth in the commercial and residential loan portfolios. Investment securities available-for-sale decreased $8.7 million or 12.2% from June 30, 2024 due to the Company’s decision to fund loan originations with proceeds from maturing investments. Total deposits increased $85.3 million or 11.6% from June 30, 2024, while total borrowings increased $8.1 million or 11.6%.
Return on average assets for the quarter ended June 30, 2025 increased to 1.68% from 1.03% for the same period in 2024. Return on average equity for the quarter ended June 30, 2025 increased to 16.70% from 9.99% for the same period in 2024. The increases in the foregoing ratios were the result of increases in net income offset by increases in average assets and average equity.
President and CEO Mark Jaindl stated, “We are pleased to report strong second quarter results that reflect the stability of our core operations and disciplined approach to risk management. The 80% increase in net income highlights the success of our strategic focus on growing both net interest and non-interest income, while maintaining strong credit quality. With zero non-accruing loans at quarter end, we remain confident in the health of our loan portfolio and our ability to serve our customers’ needs.”
Net interest income for the quarter ended June 30, 2025 was $6.9 million, an increase of $1.3 million or 23.0% from the quarter ended June 30, 2024. Net interest income increased due to loan growth year-over-year, interest rate increases in our loan portfolio, and a decrease in interest expense paid on borrowings, offset by an increase in interest expense paid to its depositors. Net interest margin increased 29 basis points to 2.86% at June 30, 2025 from 2.57% at June 30, 2024.
President and CEO Mark Jaindl stated, “We have been intentional in managing our interest rate risk while continuing to focus on offering the competitive rates that our customers expect. As we look ahead to the next twelve months, we are in a strong position as a significant portion of our loan portfolio will be repricing, giving us an opportunity to enhance returns and maintain our solid financial performance.”
For the quarter ended June 30, 2025, there was a release of the allowance for credit losses in the amount of $450,000 compared to a release of $228,000 for the quarter ended June 30, 2024. The release of the allowance for credit losses was primarily due to a decrease in non-performing loans, decreases in qualitative factors in the allowance for credit losses, and significant payoffs of commercial loans with higher reserves. American Bank has an allowance for credit losses of $7.7 million or 0.93% of loans outstanding at June 30, 2025 compared to $7.3 million or 0.95% of loans outstanding at June 30, 2024. Loan quality remained strong with no non-accruing loans at June 30, 2025 compared to $3.2 million at June 30, 2024.
Non-interest income increased $1.3 million or 253.0% to $1.8 million for the quarter ended June 30, 2025 compared to $502,000 for the quarter ended June 30, 2024. The increase in non-interest income was primarily the result of gains on other real estate owned of approximately $1.2 million.
Non-interest expense increased $424,000 or 12.3% for the quarter ended June 30, 2025 compared to the same quarter in 2024. The increase in non-interest expense was primarily the result of higher salaries and employee benefit costs, professional services, and costs associated with other real estate owned. American Bank’s operating expense to average asset ratio increased to 1.55% for the quarter ended June 30, 2025 from 1.53% for the quarter ended June 30, 2024. American Bank’s operating expense to average asset ratio remains one of the lowest in the country.
Income tax expense increased $493,000 or 86.5% for the quarter ended June 30, 2025 compared to the same quarter in 2024. The effective tax rate of 20.3% for the quarter ended June 30, 2025 was comparable to the effective tax rate of 19.7% for the quarter ended June 30, 2024.
Year-to-Date Results
Net income for the six months ended June 30, 2025 was $6.6 million, or $1.00 per diluted share, an increase of $2.4 million or 56.0% from the six months ended June 30, 2024. The increase in net income for the quarter was attributable to increases in net interest income and non-interest income, offset by increases in the provision for credit losses and non-interest expense.
Return on average assets for the six-month period ended June 30, 2025 increased to 1.32% compared to 0.93% for the same period in 2024. Return on average equity for the six-month period ended June 30, 2025 increased to 13.23% compared to 9.09% for the same period in 2024.
Net interest income for the six months ended June 30, 2025 was $13.6 million, an increase of $2.6 million or 23.7% from the six-month period ended June 30, 2024. Net interest margin increased 24 basis points to 2.83% year-to-date for the first six months ended June 30, 2025 compared to 2.59% for the first six months of 2024.
For the six months ended June 30, 2025, there was a provision for credit losses in the amount of $172,000, which was an increase of $391,000 from the release for credit losses of $219,000 recorded for the six months ended June 30, 2024. The increase in the provision for credit losses was primarily due to increases in qualitative factors in the allowance for credit losses in the first six months of the year.
Non-interest income was $2.5 million for the six months ended June 30, 2025 compared to $999,000 for the six months ended June 30, 2024. The fluctuation in non-interest income was for generally the same reasons as described in the quarter-to-date section.
Non-interest expense increased $742,000 or 10.7% to $7.7 million for the six months ended June 30, 2025 compared to the six months ended June 30, 2024. The fluctuation in non-interest expense was for generally the same reasons as described in the quarter-to-date section. American Bank’s operating expense to average asset ratio increased one basis point to 1.55% for the six months ended June 30, 2025 from 1.54% for the quarter ended June 30, 2024.
Income tax expense increased $617,000 or 59.5% for the six months ended June 30, 2025 compared to the six months ended June 30, 2024. The effective tax rate for the first six months of 2025 was 20.2% compared to the effective tax rate of 19.8% for the first six months of 2024.
American Bank is a "well capitalized" institution under all regulatory capital standards.
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 over 25 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, online ACH, 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. To further enhance customers’ online experience, American Bank’s Virtual Assistant, “Penny,” is conversational artificial intelligence (AI) technology available via the website or mobile app and provides convenient, 24/7 access to information and resources.
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, 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.
AmericanBank Online is a registered trademark 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. American Bank is FDIC insured and an Equal Housing Lender.
"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.