SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
Form 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): July 17, 2003
American Bank Incorporated
(Exact name of registrant as specified in its charter)
Pennsylvania 000-31246 01-0593266
(State or other jurisdiction (Commission File No.) (I.R.S. Employer
of incorporation) Identification No.)
4029 West Tilghman Street, Allentown, Pennsylvania 18104
(Address of Principal Executive Offices) (Zip Code)
Registrant's telephone number, including area code: (610) 366-1800
Not Applicable
(Former name or former address, if changed since last report)
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Item 7. Financial Statements, Pro Forma Financial Information, and Exhibits
The Index of Exhibits immediately precedes the attached exhibits.
Item 9. Regulation FD Disclosure- Item 12 Information
On July 17, 2003, the Company issued a press release regarding its
earnings for the fiscal quarter ended June 30, 2003. The press release is
included as Exhibit 99 to this report.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned, hereunto duly authorized.
AMERICAN BANK INCORPORATED
DATE: July 21, 2003 By: /s/ Mark W. Jaindl
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Mark W. Jaindl
President and Chief Executive Officer
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EXHIBIT INDEX
The following exhibits are filed as part of this report:
Exhibit No. Description
99 Press Release of American Bank Incorporated
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EXHIBIT 99
PRESS RELEASE OF AMERICAN BANK INCORPORATED
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FOR IMMEDIATE RELEASE
CONTACT: Mark W. Jaindl (mjaindl@pcbanker.com) Phone: 610-366-1800
American Bank, Inc. Toll-Free: 888-366-6622
President and Chief Executive Officer Fax: 610-366-1900
American Bank Reports Second Quarter Earnings
Allentown, PA, July 17, 2003 - American Bank, Inc. (NasdaqSC: AMBK), the parent
company of American Bank, today announced earnings for the quarter and six
months ended June 30, 2003. Net income for the quarter was $553,000, or $0.09
per diluted share, a decrease of $56,000 from the same period in the prior year.
Net income for the six months ended June 30, 2003 was $1,365,000, or $0.21 per
diluted share, an increase of $167,000 from the same period in the prior year.
The decrease in earnings for the quarter is primarily attributable to a decrease
of 76 basis points in the net interest margin compared to June 30, 2002 and was
the result of accelerated prepayments of residential mortgages created by the
recent refinancing surge. In addition, the Company recorded a provision for loan
losses of $201,000 for the current quarter compared to $32,000 for the same
period in 2002. Earnings were positively impacted by a $353,000 increase in
non-interest income to $497,000 in the current quarter compared to $145,000 for
the same quarter in 2002. Also favorably impacting earnings is the Company's
ability to control costs as evidenced by the decline in its operating expense to
asset ratio to 1.07% for the quarter ended June 30, 2003 from 1.28% for the same
period in 2002.
President and CEO Mark Jaindl stated, "While the economy has been sluggish, we
are pleased to report that the quality of our loan portfolio remains strong with
no non-performing loans at the end of the quarter. Although we did incur a
provision for loan losses of $201,000 during the quarter, it was the result of
increased loan closings."
Jaindl continued, "The continuing decline in our operating expense to asset
ratio is an example of our commitment to maintaining an effective and efficient
operation. We remain focused on improving our efficiency while still serving our
client base with the products and services they need and deserve."
Chairman of the Board of Directors Frederick Jaindl stated, "We are pleased with
the continued, but moderate, growth of American Bank during the second quarter
of 2003 and remain committed to increasing our growth of assets and earnings
through quality loans. We are also pleased with the continued support of our
shareholders as was demonstrated by the additional $5 million in equity created
through the exercise of American Bank warrants which expired June 30, 2003."
American Bank, Inc. common stock last traded at $8.25 per share.
About American Bank
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. Top Tier award for consistently offering
annual percentage yields (APYs) that were among the highest reported. American
Bank is FDIC insured.
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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 Bank'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 the
Company's 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.
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American Bank, Inc.
Selected Financial Information
(In thousands, except per share data and ratios)
Unaudited
June 30, December 31,
2003 2002 2002
Selected Financial Condition Data:
Total assets................................... $ 477,194 $ 405,960 $ 453,265
Loans receivable, net.......................... 156,137 131,003 134,926
Allowance for loan losses...................... 2,021 1,684 1,759
Securities available for sale (at fair value) 273,347 210,007 276,569
Securities held to maturity (at cost).......... 15,201 12,967 13,466
Deposits....................................... 324,196 284,556 306,751
FHLB advances.................................. 97,558 83,017 97,791
Subordinated debentures........................ 10,200 10,200 10,200
Stockholders' equity........................... 34,901 26,825 28,593
Book value per share $ 5.13 $ 4.43 $ 4.70
Shares outstanding 6,807 6,052 6,078
Unaudited Unaudited
For the Three For the Six
Months Ended June 30, Months Ended June 30,
2003 2002 2003 2002
Selected Operating Data:
Total interest income............................ $ 4,776 $ 5,067 $ 9,850 $ 10,164
Total interest expense.......................... 3,028 3,010 6,098 5,983
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Net interest income......................... 1,748 2,057 3,752 4,181
Provision for loan losses........................ 201 32 12 140
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Net interest income after provision for loan
losses................................. 1,547 2,025 3,740 4,041
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Fees and service charges......................... 41 36 82 78
Net realized gain on sales of mortgage loans..... 170 51 249 93
Net realized gain on sales of securities......... 128 - 128 -
Other income................................... 158 58 309 105
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Total non-interest income................... 497 145 768 276
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Total operating expense.......................... 1,271 1,278 2,566 2,547
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Income before taxes on income.............. 773 892 1,942 1,770
Taxes on income.................................. 220 283 577 572
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Net income.................................. $ 553 $ 609 $ 1,365 $ 1,198
Earnings per share-basic........................ $ 0.09 $ 0.10 $ 0.22 $ 0.20
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diluted...................... $ 0.09 $ 0.10 $ 0.21 $ 0.19
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Weighted average shares outstanding-basic....... 6,182 6,038 6,127 6,025
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diluted...................... 7,639 7,152 7,612 6,729
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American Bank, Inc.
Selected Financial Information
Unaudited
For the Three
Months Ended June 30,
2003 2002
Performance Ratios(1):
Return on assets (ratio of net income to average total
assets)....................................................... 0.47% 0.61%
Return on equity (ratio of net income to average equity)...... 7.02% 9.22%
Net interest margin (ratio of net interest income divided
by average earning assets).................................... 1.51% 2.27%
Ratio of operating expense to average total assets............ 1.07% 1.28%
Efficiency ratio (ratio of operating expenses divided by
net interest income plus non-interest income)................. 56.61% 57.74%
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................. 1.28% 1.27%
Regulatory Capital Ratios-Bank:
Tier I to average assets...................................... 8.28% 7.81%
Tier I to risk weighted assets................................ 13.86% 13.96%
Total capital to risk weighted assets......................... 17.78% 14.72%
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(1) Ratios for the three month periods are annualized.