CONTACT: Mark W. Jaindl, President and Chief Executive Officer
Allentown, PA, October 09, 2015
American Bank Incorporated (OTC BB: AMBK), the parent company of American Bank, today announced earnings for the quarter and nine months ended September 30, 2015. Net income for the quarter was $1,222,000 or $0.19 per diluted share, an increase of $87,000 from $1,135,000 or $0.18 per diluted share for the third quarter of 2014. The increase in net income for the quarter ended September 30, 2015 was primarily attributable to a decrease in the provision for loan losses. The provision for loan losses for the three months ended September 30, 2015 was zero dollars compared to $96,000 for the three months ended September 30, 2014.
Net income for the nine months ended September 30, 2015 was $2.9 million, or $0.51 per diluted share, a decrease of $863,000 from the nine months ended September 30, 2014. The provision for loan losses increased $450,000 over 2014 as a result of the significant growth in the loan portfolio of 9.9% or $35.4 million since September 30, 2014. Additionally, net gains on sales of available for sale securities amounted to $131,000 for the first nine months of 2015 as compared to $972,000 realized in the first nine months of 2014.
Net interest income for the quarter ended September 30, 2015 was $3,518,000, an increase of $214,000 from the quarter ended September 30, 2014. The net interest margin increased six basis points to 2.76% from 2.70%. Net interest income for the nine months ended September 30, 2015 was $10.3 million, an increase of $603,000 from the nine month period ended September 30, 2014. The net interest margin increased 10 basis points to 2.74% for the nine months ended September 30, 2015 from 2.64% for the nine months ended September 30, 2014.
Non-interest income increased $33,000 during the quarter ended September 30, 2015 as compared to the same quarter in 2014. The increase was the result of gains on sales of mortgage loans of $51,000 for the third quarter of 2015 compared to $14,000 for the third quarter of 2014. Non-interest income decreased $795,000 for the nine months ended September 30, 2015 compared to the nine months ended September 30, 2014. The decrease resulted from gains on sales of available for sale securities of $972,000 realized in 2014 compared to $131,000 realized in 2015.
Non-interest expense increased $201,000 for the quarter ended September 30, 2015 compared to the same quarter in 2014, the result of increases in salaries and wages, employee benefits and professional service fee expenses. Non-interest expense increased $655,000 for the nine months ended September 30, 2015 compared to the nine months ended September 30, 2014, the result of increases of $231,000 in salaries and wages, $119,000 in employee benefits, and $60,000 in professional service fees.
Loan quality remained strong at September 30, 2015 with only one non-accruing loan. The low number of non-accruing loans may be attributed to American Bank’s conservative underwriting standards. While there is only one non-accruing loan representing $1.7 million, given the current economic environment American Bank has set aside reserves of over $5.6 million in the event they are needed.
American Bank is a "well capitalized" institution under all regulatory capital standards.
American Bank Incorporated common stock last traded at $9.75 per share. American Capital Trust I Preferred Securities last traded at $10.60.
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.