American Bank Reports Third Quarter Earnings

CONTACT: Mark W. Jaindl, President and Chief Executive Officer
Allentown, PA, October 09, 2001

American Bank (OTCBB: ABKA), serving the Lehigh Valley community in eastern Pennsylvania and recognized as a leading provider of Internet banking and financial services nationwide, today announced record earnings for the quarter and nine months ended September 30, 2001. Net income for the quarter was $376,000, or $.09 per diluted share, an increase of $290,000 from the same period in the prior year. Net income for the nine months ended September 30, 2001 was $937,000, or $.23 per diluted share, an increase of $712,000 from the same period in the prior year. The increases are primarily attributable to an increase of $156.3 million in earning assets.

During the nine months ending September 30, 2001, the assets at American Bank increased by 44.9%, to $353.9 million. President and CEO Mark Jaindl stated, “In addition to our asset growth, we continue to add to our customer base, with total customers increasing by approximately 25% since January 1, 2001.” With customers in all 50 states, American Bank continues to develop banking relationships across the nation through its Internet banking solution,

Jaindl added, “While American Bank’s asset growth has been instrumental in attaining greater profitability during 2001, controlling operating expenses and maintaining high asset quality will be important to the future success of the Company”.

For the quarter ended September 30, 2001, American Bank’s operating expense to asset ratio declined to 1.51% from 2.18% for the same period in 2000. American Bank’s efficiency ratio improved to 69.3% for the three months ended September 30, 2001, compared to 81.0% for the same period in the prior year.

Chairman of the Board of Directors Frederick Jaindl stated, “Although we recognize that asset growth may slow during the fourth quarter under current economic conditions, we remain committed to continued expansion through quality loans, and to enhancing shareholder value through a consistent growth in profitability.”

American Bank common stock last traded at $11.20 per share and the American Bank warrants last traded at $3.00 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.