CONTACT: Mark W. Jaindl, Chairman and CEO
Allentown, PA, October 10, 2025
American Bank Incorporated (OTCID: AMBK), the parent company of American Bank, today announced earnings for the quarter and nine months ended September 30, 2025. Net income for the quarter was $3,296,000 or $0.51 per diluted share, an increase of $1,685,000 or 104.6% from $1,611,000 or $0.25 per diluted share for the third quarter of 2024. The increase in net income for the quarter was primarily 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. The Company experienced an improvement in asset quality over the previous twelve months as total non-performing loans as a percentage of total loans decreased to 0.00% at September 30, 2025, compared to 0.40% at September 30, 2024.
Total assets increased $90.9 million or 9.6% to $1,035,307,000 as of September 30, 2025 compared to $944,420,000 as of September 30, 2024. Net loans increased $27.2 million or 3.4% from September 30, 2024 due to growth in the commercial and residential loan portfolios. Investment securities available-for-sale increased $31.5 million or 49.5% as a result of the growth in deposits. Total deposits increased $97.6 million or 13.0% from September 30, 2024, while total borrowings decreased $17.5 million or 21.7%.
Return on average assets for the quarter ended September 30, 2025 increased to 1.27% from 0.70% for the quarter ended September 30, 2024. Return on average equity for the quarter ended September 30, 2025 increased to 12.76% from 6.84% for the same period in 2024. The increases in the foregoing ratios were the result of increases in net income partially offset by increases in average assets and average equity.
Net interest income for the quarter ended September 30, 2025 was $7,321,000, an increase of $1.3 million or 21.6% from the quarter ended September 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 depositors. Net interest margin increased 23 basis points to 2.91% for the quarter ended September 30, 2025 from 2.68% for the quarter ended September 30, 2024.
President and CEO Mark Jaindl stated, “We are very pleased with our growth this quarter as we saw our Net Income more than double from the same period last year, thanks to steady loan growth, a higher net interest margin, and our continued commitment to credit quality. We also made strategic decisions regarding our investment portfolio, putting our deposits to work in ways that strengthen our financial position and support future growth. These results illustrate our deliberate planning and our commitment to serving our customers and our community while enhancing shareholder value.”
For the quarter ended September 30, 2025, there was a release of the allowance for credit losses in the amount of $11,000 compared to a provision for credit losses in the amount of $999,000 for the quarter ended September 30, 2024. The release of the allowance for credit losses for the quarter ended September 30, 2025 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 $7.8 million or 0.92% of loans outstanding at September 30, 2025 compared to $8.2 million or 1.01% of loans outstanding at September 30, 2024. Loan quality remained strong with no non-accruing loans at September 30, 2025 compared to $3.2 million at September 30, 2024.
Non-interest income increased $783,000 or 160.8% to $1,270,000 for the quarter ended September 30, 2025 as compared to $487,000 for the quarter ended September 30, 2024. The increase in non-interest income was primarily the result of gains on other real estate owned and higher income generated by commercial loan interest rate swaps in 2025 compared to 2024.
Non-interest expense increased $975,000 or 27.8% to $4.5 million for the quarter ended September 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 1.72% for the quarter ended September 30, 2025 compared to 1.52% for the quarter ended September 30, 2024. American Bank’s operating expense to average asset ratio remains one of the lowest in the country.
Income tax expense increased $434,000 or 111.0% for the quarter ended September 30, 2025 compared to the same quarter in 2024. The effective tax rate of 20.0% for the quarter ended September 30, 2025 was comparable to the effective tax rate of 19.5% for the quarter ended September 30, 2024.
Year-to-Date Results
Net income for the nine months ended September 30, 2025 was $9.9 million, or $1.51 per diluted share, an increase of $4.0 million or 69.4% from the nine months ended September 30, 2024. The increase in net income for the nine-month period ended September 30, 2025 was primarily attributable to increases in net interest income and non-interest income and a decrease in the provision for credit losses, offset by an increase in non-interest expense.
Return on average assets for the nine-month period ended September 30, 2025 increased to 1.30% compared to 0.85% for the same period in 2024. Return on average equity for the nine-month period ended September 30, 2025 was 13.07% compared to 8.33% for the same period in 2024.
Net interest income for the nine months ended September 30, 2025 was $20.9 million, an increase of $3.9 million or 23.0% from the nine-month period ended September 30, 2024. Net interest margin increased 21 basis points to 2.86% year-to-date for the nine months ended September 30, 2025 compared to 2.65% for the nine months ended September 30, 2024.
For the nine months ended September 30, 2025, there was a provision for credit losses in the amount of $161,000, which was a decrease of $619,000 from the provision for credit losses in the amount of $780,000 recorded for the nine months ended September 30, 2024. The decrease in the provision for credit losses was for generally the same reasons as described in the quarter-to-date section above.
Non-interest income increased $2.3 million or 154.0% for the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024. The increase in non-interest income was for generally the same reasons as described in the quarter-to-date section above.
Non-interest expense increased $1.7 million or 16.4% for the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024. The increase in non-interest expense was for generally the same reasons as described in the quarter-to-date section above.
Income tax expense increased $1.1 million or 73.6% for the nine months ended September 30, 2025 compared to the same period in 2024. The effective tax rate for the first nine months of 2025 was 20.1% compared to the effective tax rate of 19.7% for the first nine 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.