CONTACT: Mark W. Jaindl, President and Chief Executive Officer
Allentown, PA, April 12, 2019
American Bank Incorporated (OTC Pink: AMBK), the parent company of American Bank, today announced earnings for the quarter ended March 31, 2019. Net income for the quarter was $1,958,000, or $0.31 per diluted share, an increase of $445,000 or 29.4% from $1,513,000, or $0.24 per diluted share, for the same quarter in the prior year. The increase in net income for the quarter was primarily the result of an increase in net interest income.
Total assets reached $637.0 million at March 31, 2019, an increase of $36.8 million or 6.1% compared to $600.2 million as of March 31, 2018. Net loans increased $37.7 million or 8.0% while total deposits increased $37.6 million or 8.5% for the same period.
Return on assets for the quarter ended March 31, 2019 increased to 1.27% from 1.05% for the same period in 2018. Return on equity for the quarter ended March 31, 2019 increased to 13.85% from 11.57% for the same period in 2018.
Net interest income for the quarter ended March 31, 2019 was $4.6 million, an increase of $333,000 or 7.9% from the quarter ended March 31, 2018. Net interest margin increased seven basis points to 3.13% at March 31, 2019 from 3.06% for the quarter ended March 31, 2018.
President and CEO Mark Jaindl stated, “The strong first quarter of 2019 for our Company is a continuation of the solid earnings that we experienced during 2018. We are very pleased with the results for the first quarter and are focused on continuing that growth through the remainder of 2019. Given the improved performance during 2018, our Board of Directors declared a quarterly dividend of $.12 per share on February 19, 2019, resulting in a 20% increase over the $.10 per share in the prior quarter, and a dividend yield of over 4.00%.”
The provision for loan losses was $149,000 for the quarter ended March 31, 2019 compared to $127,000 for the quarter ended March 31, 2018. Loan quality remained strong at March 31, 2019 with one non-accruing loan totaling $436,000. Given the current economic environment, American Bank has set aside reserves of $6.8 million or 1.32% of loans outstanding at March 31, 2019 in the event they are needed.
Non-interest income increased $186,000 or 90.3% to $392,000 for the quarter ended March 31, 2019 compared to the same quarter in 2018. This increase was the result of reclassification of certain income items related to the adoption of FASB’s revenue recognition standard.
Non-interest expense decreased $198,000 or 7.9% to $2.3 million for the quarter ended March 31, 2019 compared to the same quarter in 2018. The decrease in non-interest expense was primarily due to less professional services, and marketing and advertising expenses incurred in 2019 as compared to 2018. Additionally, the Bank no longer pays rent for its main headquarters after the purchase of the building in the second quarter of 2018. American Bank’s operating expense to asset ratio decreased to 1.51% for the quarter ended March 31, 2019 compared to 1.75% for the prior period. American Bank’s operating expense ratio remains one of the lowest in the country.
Income tax expense increased $250,000 or 92.9% to $519,000 for the quarter ended March 31, 2019 compared to the same quarter in 2018.
American Bank continues to be a "well capitalized" institution as measured by all regulatory capital standards.
American Bank Incorporated common stock last traded at $11.90 per share. American Capital Trust I Preferred Securities last traded at $14.00 per share.
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 20 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, ACH Direct, 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.
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.
For more information about American Bank, you can visit AmericanBank.bank, a financially-focused and security-driven top level domain name for respected financial institutions. American Bank is one of the first banks in the nation to take advantage of the ‘.bank’ domain extension.
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.