CONTACT: Mark W. Jaindl, President and Chief Executive Officer
Allentown, PA, January 19, 2017
American Bank Incorporated (OTC Pink: AMBK), the parent company of American Bank, today announced earnings for the year ended December 31, 2016. Net income for the year was $4,444,000, or $0.70 per diluted share, an increase of $409,000 compared to net income of $4,035,000, or $0.65 per diluted share, reported for the year ended December 31, 2015. The increase in net income for the year ended December 31, 2016 was primarily attributable to an increase in net interest income.
Total assets increased $7.5 million or 1.4% to $557.1 million as of December 31, 2016 compared to $549.6 million as of December 31, 2015. Net loans increased $46.3 million or 11.7% while total deposits increased $4.9 million or 1.2% for the same period.
Return on assets for the year ended December 31, 2016 increased to 0.80% from 0.76% for the same period in 2015. Return on equity for the year ended December 31, 2016 was 9.13% compared to 8.71% for the same period in 2015.
Net interest income for the year ended December 31, 2016 was $15.1 million, an increase of $1.4 million from $13.7 million for the prior year ended December 31, 2015. Net interest margin increased thirteen basis points to 2.84% for the year ended December 31, 2016 from 2.71% for the prior year ended December 31, 2015. Net interest income for the year ended December 31, 2016 reached its highest level in the history of the Bank.
The provision for loan losses for the year ended December 31, 2016 was $946,000, an increase of $488,000 from the $458,000 recorded for the year ended December 31, 2015. The increase in the provision was primarily attributable to impairments of two commercial real estate loans during the fourth quarter of 2016. Loan quality remained strong at December 31, 2016 with one non-accruing loan in the amount of $18,000, and given the current economic environment, American Bank has set aside reserves of $6.1 million or 1.37% of loans outstanding compared to $5.6 million or 1.39% of loans outstanding at December 31, 2015.
Non-interest income remained relatively flat for the year ended December 31, 2016 compared to 2015.
Non-interest expense increased $229,000 for the year ended December 31, 2016 compared to 2015. The increase in non-interest expense was primarily due to the addition of three full-time equivalent employees and overall higher medical costs.
American Bank Incorporated also announced the appointment of Zachary Jaindl to its Board of Directors. Mr. Jaindl is the Chief Operations Officer for Jaindl Enterprises, a family owned and operated commercial real estate development company based in Allentown, PA. A graduate of Lehigh University, Mr. Jaindl is also involved in the Lehigh Valley community, most recently with Civic Theatre of Allentown and Good Shepherd Rehabilitation.
American Bank is a "well capitalized" institution as measured by all regulatory capital standards.
American Bank Incorporated common stock last traded at $12.00 per share. American Capital Trust I Preferred Securities last traded at $12.00.
Selected Financial Information
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.