CONTACT: Mark W. Jaindl, President and Chief Executive Officer
Allentown, PA, January 21, 2016
American Bank Incorporated (OTC: AMBK), the parent company of American Bank, today announced earnings for the year ended December 31, 2015. Net income for the year was $4,035,000, or $0.65 per diluted share, compared to net income of $5,149,000, or $0.82 per diluted share, reported for the year ended December 31, 2014. The decrease in net income for the year ended December 31, 2015 was primarily the result of gains on sales of available for sale securities of $1,474,000 realized in 2014 as compared to $131,000 in gains on sales of available for sale securities realized in 2015.
Net interest income for the year ended December 31, 2015 was $13.7 million, an increase of $607,000 from $13.1 million for the prior year ended December 31, 2014. The increase in net interest income was a result of an increase in average earning assets of $15.0 million and an increase of 4 basis points in the net interest margin to 2.71% for the year ended December 31, 2015 from 2.67% for the prior year.
American Bank’s net loans outstanding increased by $25.7 million, or 7.0%, to $394.1 million at December 31, 2015. While there are no non-accruing loans at year end, the Bank foreclosed on the one non-accruing loan from the third quarter in the amount of $1.7 million and recorded it as Other Real Estate Owned on the Bank’s Balance Sheet. Given the current economic environment, American Bank has set aside reserves of $5.6 million in the event they are needed.
The provision for loan losses for the year ended December 31, 2015 was $458,000, a decrease of $76,000 from the $534,000 recorded for the year 2014. The decrease in the provision for loan losses is the result of the strong loan quality and the Bank’s conservative underwriting standards. At December 31, 2015, the allowance for loan losses was $5,562,000 or 1.39% of loans outstanding compared to 1.42% at December 31, 2014.
Non-interest expense increased $782,000 for the year ended December 31, 2015 as compared to 2014. The increase was the result of increases in salaries and wages, employee benefits, professional services and collection expenses associated with the foreclosed property.
American Bank is a "well capitalized" institution as measured by all regulatory capital standards.
American Bank Incorporated common stock last traded at $10.25 per share. American Capital Trust I Preferred Securities last traded at $11.11.
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.