CONTACT: Mark W. Jaindl, President and Chief Executive Officer
Allentown, PA, October 10, 2011
American Bank Incorporated (OTC BB: AMBK), the parent company of American Bank, today announced earnings for the quarter ended September 30, 2011. Net income for the quarter was $1,258,000, or $0.20 per diluted share, an increase from $956,000 or $0.16 per diluted share for the third quarter of 2010. Net interest income for the quarter ended September 30, 2011 was $3,250,000, an increase of $424,000 from the quarter ended September 30, 2010. Average interest-earning assets decreased by $8.1 million to $466.5 million at September 30, 2011, while the net interest margin increased 29 basis points to 2.67%.
Net income for the nine months ended September 30, 2011 was $3.3 million, or $0.54 per diluted share, an increase of $274,000 from the nine months ended September 30, 2010. The primary reason for the increase in net income for the nine-month period ended September 30, 2011 was an increase in net interest income for the period in the amount of $542,000. Net interest income for the nine months ended September 30, 2011 was $9.3 million, an increase of $542,000 from $8.7 million for the nine months ended September 30, 2010. The net interest margin decreased by 6 basis points to 2.46% for the nine months ended September 30, 2011 from 2.52% for the nine months ended September 30, 2010.
Non-interest income increased by $23,000 during the quarter ended September 30, 2011 compared to the same quarter in 2010. This increase was largely the result of an increase of $12,000 in other income. Non-interest income increased by $193,000 for the nine months ended September 30, 2011 compared to the nine months ended September 30, 2010. The increase in non-interest income for the nine months ended in 2011 results from gains on sale of available for sale securities of $222,000 and an increase of $24,000 in earnings from Bank owned life insurance. Those increases were off-set by a decrease in service charges on deposit accounts of $25,000 and a decrease in gains on sales of mortgage loans of $39,000.
Non-interest expense decreased $46,000 to $1.6 million, or 1.30% of average assets, during the quarter ended September 30, 2011, compared to 1.33% of average assets, for the quarter ended September 30, 2010. Non-interest expense increased $133,000 to $5,026,000, or 1.35 % of average assets, during the nine months ended September 30, 2011 compared to $4,893,000, or 1.34% of average assets for the nine months ended September 30, 2010.
Loan quality remained strong at September 30, 2011 with no non-accruing loans. The absence of non-accruing loans may be attributed to American Bank’s conservative underwriting standards. While there are no non-accruing loans, given the current economic environment American Bank has set aside reserves of over $4.2 million in the event they are needed.
American Bank is a “well capitalized” institution under all regulatory capital standards.
American Bank is proud to be recognized as a five star rated financial institution (the highest rating possible) from Bauer Financial Inc., a nationally recognized bank rating organization, designating it as one of the strongest banks in the nation.
American Bank, Inc. common stock last traded at $6.25 per share. American Bank, Inc. Series A preferred stock (AMBKO) is listed on the OTC BB but has not traded to date. American Capital Trust I Preferred Securities last traded at $9.00.
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.