American Bank Reports Sixth Straight Quarter of Increased Earnings, Assets Approach $300 Million

CONTACT: Mark W. Jaindl, President and Chief Executive Officer
Allentown, PA, April 16, 2001

American Bank (OTCBB: ABKA), a leading provider of Internet banking and financial services (, today announced earnings for the quarter ended March 31, 2001. Net income for the quarter was $259,300, or $.06 per share, an increase of $217,000 from the same period in the prior year. This increase is primarily attributable to an increase of $159.2 million in earning assets, which was partially offset by a decrease of 68 basis points in the net interest margin versus the same period in 2000.

President and CEO Mark Jaindl stated, “During the first quarter of 2001, the assets at American Bank increased by 22.8%, to $299.9 million, while the quality of our loan portfolio remained high with no non-performing assets at March 31, 2001. Although we currently have no non-performing assets, we did increase our loan loss reserves by $72,500 during the current quarter as we recognize that a softening economy may result in future delinquencies.”

Jaindl continued, “For the quarter ended March 31, 2001, our operating expense to asset ratio declined to 1.81% from 2.72% for the same period in 2000. By maintaining low operating expenses, we can consistently offer our customers attractive rates on loan and deposit products, including the 5.70% annual percentage yield on our e-Checking account. Our goal is to attain an operating expense to asset ratio below 1.50% by the end of the fourth quarter of 2001. American Bank’s efficiency ratio improved to 74.87% for the three months ended March 31, 2001 compared to 87.38% for the same period in the prior year.

Chairman of the Board of Directors Frederick Jaindl stated, “We are pleased with the progress of American Bank during the first quarter. We continue to improve our online offerings and delivering products in an effort to make American Bank a leading financial provider on the Internet.”

The number of accounts at American Bank has increased approximately 13.5% since the beginning of 2001. With a firm commitment to offering some of the best rates available on the Internet, American Bank’s 5.70% annual percentage yield e-Checking account remains a popular deposit product among its customers. In March alone, over 700 new e-checking accounts were opened to customers across the country.

American Bank common stock last traded at $12.75 per share and the American Bank warrants last traded at $3.50 per warrant. American Bank warrants are exercisable at $10.00 per share through June 30, 2003.

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® 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, 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.