CONTACT: Mark W. Jaindl, President and Chief Executive Officer
Allentown, PA, July 14, 2016
American Bank Incorporated (OTC Pink: AMBK), the parent company of American Bank, today announced earnings for the quarter and six months ended June 30, 2016. Net income for the quarter was $1,172,000 or $0.19 per diluted share, an increase from $703,000 or $0.12 per diluted share for the second quarter of 2015. The increase in net income for the quarter ended June 30, 2016 was attributable to an increase in net interest income and a decrease in the provision for loan losses.
Total assets increased $24.6 million or 4.6% to $558.9 million as of June 30, 2016 as compared to $534.3 million as of June 30, 2015. Net loans increased $19.3 million or 5.0% for the same period, while total deposits grew $32.8 million or 8.4%.
Return on assets for the three month period ended June 30, 2016 reached 0.83% compared to 0.54% for the same period in 2015. Return on equity for the quarter ended June 30, 2016 was 9.78% compared to 6.19% for the same period in 2015.
Net interest income for the quarter ended June 30, 2016 was $3,630,000, an increase of $293,000 or 8.8% from the quarter ended June 30, 2015. Net interest margin increased 2 basis points to 2.70% at June 30, 2016 as compared to 2.68% at June 30, 2015.
The provision for loan losses recorded for the quarter ended June 30, 2016 was $70,000 compared to $407,000 for the three months ended June 30, 2015. The decrease in the provision for loan losses was attributable to the Bank’s conservative loan underwriting standards and diligent collection efforts. Loan quality remained strong at June 30, 2016 with no non-accruing loans and given the current economic environment, American Bank has set aside reserves of over $5.9 million in the event they are needed.
Non-interest income increased $32,000 for the quarter ended June 30, 2016 as compared to the same quarter in 2015. The increase was the result of higher earnings on bank-owned life insurance and net gains on sales of mortgage loans.
Non-interest expense decreased $50,000 for the quarter ended June 30, 2016 compared to the same quarter in 2015, primarily the result of a decrease in marketing expenses.
Year-to-Date Results
Net income for the six months ended June 30, 2016 was $2.1 million, or $0.34 per diluted share, an increase of $415,000 from the six months ended June 30, 2015. The primary reason for the increase in net income for the six month period ended June 30, 2016 was an increase in net interest income and a decrease in the provision for loan losses.
Return on assets for the six month period ended June 30, 2016 reached 0.75% compared to 0.65% for the same period in 2015. Return on equity for the six month period ended June 30, 2016 was 8.83% compared to 7.41% for the same period in 2015.
Net interest income for the six months ended June 30, 2016 was $7.3 million, an increase of $503,000 from the six month period ended June 30, 2015. Net interest margin remained flat at 2.73% year-to-date for the first six months ended June 30, 2016 and 2015.
The provision for loan losses for the six months ended June 30, 2016 was $379,000, a decrease of $227,000 from the provision of $606,000 recorded for the six months ended June 30, 2015.
Non-interest income increased $47,000 for the six months ended June 30, 2016 compared to the six months ended June 30, 2015. The increase in non-interest income for the six months ended in 2016 resulted from higher earnings on bank-owned life insurance and net gains on sales of mortgage loans.
Non-interest expense increased $137,000 for the six months ended June 30, 2016 compared to the six months ended June 30, 2015. The increase was primarily due to costs associated with the sale of a foreclosed property in the first quarter of 2016.
American Bank is a "well capitalized" institution under all regulatory capital standards.
American Bank Incorporated common stock last traded at $11.20 per share. American Capital Trust I Preferred Securities last traded at $12.50.
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.