EXHIBIT 99
PRESS RELEASE OF AMERICAN BANK INCORPORATED
FOR IMMEDIATE RELEASE
CONTACT: Mark W. Jaindl (mjaindl@pcbanker.com) Phone: 610-366-1800
President and Chief Executive Officer Toll-Free: 888-366-6622
Fax: 610-366-1900
American Bank Reports Record First Quarter Earnings
Allentown, PA, April 21, 2003 - American Bank, Inc. (NasdaqSC: AMBK), the parent
company of American Bank, today announced record earnings for the quarter ended
March 31, 2003. Net income for the quarter was $812,000, or $0.12 per diluted
share, an increase of $223,000, or 38%, from the same period in the prior year.
This marks the fourteenth straight quarter of increased profitability for the
Company.
At the end of the quarter, assets totaled $465 million, up 18% from $394 million
at March 31, 2002. Total deposits reached $316 million as of March 31, 2003 up
from $276 million from the same time the previous year. Asset quality at
American Bank remained strong with no non-performing assets at March 31, 2003.
President and CEO Mark Jaindl stated, "The earnings of American Bank continue to
be driven by our ability to control costs. For the quarter ended March 31, 2003,
our operating expense to asset ratio declined to 1.13% from 1.34% for the same
period in 2002. Reducing this ratio has been important to the success of
American Bank's business model."
American Bank's operating expense ratio of 1.13% makes it one of the most
efficient banks in the United States as less than 1% of commercial banks
nationwide have an operating expense to asset ratio below this level. In
addition to controlling costs, the increase in first quarter earnings is
attributable to an increase of $77.8 million of average earning assets and an
after tax recovery of $165,000 from a previously charged off loan. Earnings were
partially offset by a decrease of 55 basis points in the net interest margin in
the current quarter compared to the prior year.
Chairman of the Board of Directors Frederick Jaindl stated, "We are pleased with
the growth of the Bank during the first quarter as a continuation of our success
in 2002. In addition, we look forward to improving American Bank even further
through the implementation of a "Commitment to Excellence" program developed
during the first quarter of 2003. This program outlines our commitment to both
American Bank customers that we will provide quality products and superior
service and to shareholders that we will do this while maintaining costs and
enhancing shareholder value."
American Bank common stock last traded at $9.63 per share and the American Bank
warrants last traded at $3.39 per warrant. American Bank warrants are
exercisable at $6.67 per share through June 30, 2003.
About American Bank
- -------------------
American Bank serves the Lehigh Valley community in eastern Pennsylvania and is
recognized as a leading provider of Internet banking and financial services
nationwide. American Bank offers a complete selection of banking services that
includes checking, money market, savings, certificates of deposit, consumer and
commercial loans, free personal online bill payment, credit cards and VISA debit
cards. Pcbanker.com delivers a full range of real-time Internet banking,
insurance and discount brokerage services, while consistently offering some of
the best loan and deposit rates in the United States. American Bank has been
recognized as one of the top Internet banks in the country by Gomez Advisors,
Inc and has received the Bankrate.com(R) Top Tier award for consistently
offering annual percentage yields (APY's) that were among the highest reported.
American Bank is FDIC insured.
American Bank Online and pcbanker.com are registered trademarks 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.
Forward-Looking Statements
- --------------------------
Certain statements contained herein are not based on historical facts
and are "forward-looking statements" within the meaning of Section 27A of the
Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934.
Such forward-looking statements may be identified by reference to a future
period or periods, or by the use of forward-looking terminology, such as "may,"
"will," "believe," "expect," "estimate," "anticipate," "continue," or similar
terms or variations on those terms, or the negative of those terms.
Forward-looking statements are subject to numerous risks and uncertainties,
including, but not limited to, those related to the economic environment,
particularly in the market areas in which the Company operates, competitive
products and pricing, fiscal and monetary policies of the U.S. Government,
changes in government regulations affecting financial institutions, including
regulatory fees and capital requirements, changes in prevailing interest rates,
risks associated with the conduct of the Company's business over the internet,
credit risk management, asset-liability management, the financial and securities
markets and the availability of and costs associated with sources of liquidity.
The Company wishes to caution readers not to place undue reliance on
any such forward-looking statements, which speak only as of the date made. The
Company wishes to advise readers that the factors listed above could affect its
financial performance and could cause the Company's actual results for future
periods to differ materially from any opinions or statements expressed with
respect to future periods in any current statements. The Company does not
undertake and specifically declines any obligation to publicly release the
result of any revisions that may be made to any forward-looking statements to
reflect events or circumstances after the date of such statements or to reflect
the occurrence of anticipated or unanticipated events.
American Bank, Inc.
Selected Financial Information
(Amounts in thousands, except per share data)
March 31,
---------
2003 2002
Selected Financial Condition Data:
---------------------------------
Total assets................................ $464,962 $393,567
Loans receivable, net....................... 141,618 132,966
Allowance for loan losses .................. 1,820 1,683
Short-term investments...................... -- 998
Securities available for sale (at market)... 274,652 208,670
Securities held to maturity (at cost)....... 11,846 13,780
Deposits.................................... 316,292 276,287
Short-term debt............................. 9,481 7,544
Long-term debt.............................. 97,675 83,128
Mandatory redeemable convertible debentures. 10,200 --
Stockholders' equity........................ 29,357 25,065
Book value per share........................ $ 4.81 $ 4.17
Shares outstanding.......................... 6,101 6,013
For the Three
Months Ended Mar 31,
--------------------
2003 2002
Selected Operating Data:
-----------------------
Total interest income....................... $ 5,074 $ 5,129
Total interest expense...................... 3,070 2,974
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Net interest income..................... 2,004 2,155
Provision for loan losses................... (190) 139
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Net interest income after provision
for loan losses......................... 2,194 2,016
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Fees and service charges.................... 41 42
Net realized gain on sale of mortgage loans. 79 39
Other income............................... 150 50
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Total non-interest income................. 270 131
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Total operating expense................... 1,295 1,269
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Income before taxes on income........... 1,169 878
Taxes on income............................. 357 289
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Net income.................................. $ 812 $ 589
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Earnings per share-basic................. $ 0.13 $ 0.10
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-diluted............... $ 0.12 $ 0.09
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Weighted average shares outstanding for
earnings per share calculation-basic.... 6,071 6,003
======== ========
-diluted.. 7,585 6,261
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American Bank, Inc.
Selected Financial Information
For the Three
Months Ended Mar 31,
--------------------
2003 2002
Performance Ratios(1):
------------------
Return on assets (ratio of net income to
average total assets)............................. 0.71% 0.64%
Return on equity (ratio of net income
to average equity)................................ 11.28% 9.26%
Net interest margin (ratio of net interest income
divided by average earning assets)................ 1.82% 2.37%
Ratio of operating expense to average total assets. 1.13% 1.34%
Efficiency ratio (ratio of operating expenses divided
by net interest income plus non-interest income).. 56.94% 55.52%
Asset Quality Ratios:
--------------------
Non-performing assets to total assets at end of period none none
Allowance for loan losses to non-performing loans.. n/a n/a
Allowance for loan losses to loans receivable...... 1.27% 1.25%
Regulatory Capital Ratios-Bank:
------------------------------
Tier I to average assets........................... 7.28% 6.63%
Tier I to risk weighted assets..................... 13.37% 10.92%
Total capital to risk weighted assets.............. 14.11% 11.65%
<FN>
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(1) Ratios for the three month periods are annualized.
</FN>