CONTACT: Mark W. Jaindl, President and Chief Executive Officer
Allentown, PA, October 16, 2013
American Bank Incorporated (OTC BB: AMBK), the parent company of American Bank, today announced earnings for the quarter ended September 30, 2013. Net income for the quarter was $1,104,000, or $0.17 per diluted share, a decrease of $63,000 or $0.01 per diluted share from the third quarter of 2012. Net interest income for the quarter ended September 30, 2013 was $3,479,000, an increase of $241,000 from the quarter ended September 30, 2012. The net interest margin increased 18 basis points to 2.82%.
Net income for the nine months ended September 30, 2013 was $3.3 million, or $0.53 per diluted share, a decrease of $83,000 from the nine months ended September 30, 2012. The primary reason for the decrease in net income for the nine-month period ended September 30, 2013 was an increase in tax expense. During the quarter, Management established a reserve against certain deferred tax assets in the amount of $264,000. Net interest income for the nine months ended September 30, 2013 was $9.9 million, compared to $9.6 million for the nine months ended September 30, 2012. The net interest margin increased by 5 basis points to 2.67% for the nine months ended September 30, 2013 from 2.62% for the nine months ended September 30, 2012.
Non-interest income decreased by $50,000 during the quarter ended September 30, 2013 compared to the same quarter in 2012. This decrease was largely the result of lower earnings being credited on the Bank owned life insurance policies.
Non-interest income for the nine months ended in 2013 increased by $86,000 primarily from losses on available for sale securities of $164,000 recognized in the prior year partially off-set by lower earnings credited to the Bank owned life insurance in the amount of $57,000.
Non-interest expense decreased $46,000 to $1.7 million, or 1.30% of average assets, during the quarter ended September 30, 2013, compared to 1.35% of average assets, for the quarter ended September 30, 2012. Non-interest expense increased $104,000 to $5,253,000, or 1.35% of average assets, during the nine months ended September 30, 2013 compared to $5,149,000, or 1.34% of average assets for the nine months ended September 30, 2012.
Loan quality remained strong at September 30, 2013 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 $4.6 million in the event they are needed.
American Bank was listed among the Top 10 best performers out of the 6,750 community banks in the United States, according to an April 29, 2013 article by American Banker. The article listed the best performers based on the banks’ return on average equity over the past three years.
American Bank is a "well capitalized" institution under all regulatory capital standards.
American Bank, Inc. common stock last traded at $7.31 per share. American Bank, Inc. Series A preferred stock (AMBKO) last traded at $6.00. American Capital Trust I Preferred Securities (AMBKP) last traded at $9.50.
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.