American Bank to Raise $10 Million in New Equity

CONTACT: Mark W. Jaindl, President and Chief Executive Officer
Allentown, PA, December 20, 2001

American Bank (OTCBB: ABKA) [m1]announced today that a registration statement has been filed with the Securities and Exchange Commission regarding a proposed issuance of up to $10 million of additional equity through the sale of a 6% convertible trust preferred security, to be issued by its holding company.

The new securities will be offered only to common shareholders of record as of January 15, 2002 at a price of $10.00 per share, with a minimum purchase of 250 shares. In the event of an over subscription, shares subscribed for will be prorated based on the common shares owned on March 15, 2002 by each subscriber divided by the number of shares of common stock owned by all subscribers. Upon finalizing the formation of American Bank, Inc., the holding company for American Bank, all shareholders of American Bank will automatically become shareholders of American Bank, Inc. The holding company reorganization should be completed January 2002. The offering is expected to commence and a prospectus mailed to shareholders on or about February 15, 2002.

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.