EXHIBIT 99
PRESS RELEASE OF AMERICAN BANK INCORPORATED
PRESS RELEASE
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 Third Quarter Earnings
Allentown, PA, October 16, 2003 - American Bank, Inc. (NasdaqSC: AMBK), the
parent company of American Bank, today announced earnings for the quarter and
nine months ended September 30, 2003. Net income for the quarter was $556,000,
or $0.08 per diluted share, a decrease of $55,000 from the same period in the
prior year. Net income for the nine months ended September 30, 2003 was
$1,921,000, or $0.29 per diluted share, an increase of $113,000 from the same
period in the prior year.
At the end of the third quarter of 2003, assets totaled $478.9 million, up 9.5%
from $437.4 million for the third quarter of 2002. Total loans reached $187.0
million as of September 30, 2003, an increase of 41.3%, from $132.3 million as
of September 30, 2002, while deposits increased 11.6% to $325.2 million from
$291.5 million for the same period.
The decrease in earnings for the quarter is primarily attributable to a decrease
of 54 basis points in the net interest margin compared to September 30, 2002.
This decrease was the result, in large part, to accelerated prepayments of
residential mortgage backed securities created by the recent refinancing surge
that occurred during the second and third quarters of 2003. As a result of the
accelerated prepayments, premiums paid for the mortgage backed securities were
amortized at a faster rate and the funds from the prepayments were reinvested
into lower yielding securities. During the third quarter, earnings were
positively impacted by a $348,000 increase in non-interest income to $677,000
compared to $329,000 for the same quarter in 2002.
President and CEO Mark Jaindl stated, "We are pleased with the growth of
American Bank's loan portfolio which increased by $52.1 million, or 39%, since
the beginning of the year. As a result of this loan growth, the Company recorded
a provision for loan losses of $207,000 for the current quarter compared to
$15,000 for the same period in 2002, even though the quality of our loan
portfolio remains strong with no non-performing loans at the end of the
quarter."
Chairman of the Board of Directors Frederick Jaindl commented, "It is important
to note that we continue to improve our operating expense to asset ratio, which
reflects our commitment to being one of the most efficient banks in the country.
By improving this ratio, which declined to 1.07% for the quarter ended September
30, 2003 from 1.36% for the same period in 2002, we are able to offer our
customers competitive rates on loans and deposit products."
American Bank, Inc. common stock last traded at $8.29 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. American Bank Online and pcbanker.com deliver 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 (APYs) that were among the
highest reported. American Bank is FDIC insured.
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.
American Bank, Inc.
Selected Financial Information
(In thousands, except per share data and ratios)
Unaudited
September 30, December 31,
-------------------
2003 2002 2002
---- ---- ----
Selected Financial Condition Data:
Total assets ..................................... $ 478,855 $ 437,423 $ 453,265
Loans receivable, net ............................ 186,955 132,290 134,926
Allowance for loan losses ........................ 2,227 1,699 1,759
Securities available for sale (at fair value) ... 246,880 252,728 276,569
Securities held to maturity (at cost) ............ 19,421 12,295 13,466
Deposits ......................................... 325,175 291,538 306,751
FHLB advances .................................... 97,420 97,905 97,791
Subordinated debentures .......................... 10,200 10,200 10,200
Stockholders' equity ............................. 34,545 27,395 28,593
Book value per share ............................. $ 5.07 $ 4.53 $ 4.70
Shares outstanding ............................... 6,807 6,074 6,078
Unaudited Unaudited
For the Three For the Nine
Months Ended Sept. 30, Months Ended Sept. 30,
------------------------ ------------------------
2003 2002 2003 2002
------ ------ ------ ------
Selected Operating Data:
Total interest income ........................... 4,510 5,072 14,360 15,237
Total interest expense .......................... 2,958 3,221 9,056 9,205
------- ------- ------- -------
Net interest income ........................ 1,552 1,851 5,304 6,032
Provision for loan losses ....................... 207 15 219 156
------- ------- ------- -------
Net interest income after provision for loan
losses .................................. 1,345 1,836 5,085 5,876
Fees and service charges ........................ 41 36 123 114
Net realized gain on sales of mortgage loans .... 144 79 393 172
Net realized gain on sales of securities ........ 349 73 477 76
Other income .................................. 143 141 452 244
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Total non-interest income .................. 677 329 1,445 606
------- ------- ------- -------
Total operating expense ......................... 1,252 1,325 3,818 3,872
------- ------- ------- -------
Income before taxes on income ............. 770 840 2,712 2,610
Taxes on income ................................. 214 229 791 802
------- ------- ------- -------
Net income ................................. $ 556 $ 611 $ 1,921 $ 1,808
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Earnings per share-basic ........................ $ 0.08 $ 0.10 $ 0.30 $ 0.30
======= ======= ======= =======
diluted ...................... $ 0.08 $ 0.10 $ 0.29 $ 0.29
======= ======= ======= =======
Weighted average shares outstanding-basic ....... 6,788 6,052 6,349 6,023
======= ======= ======= =======
-diluted...... 8,063 7,368 7,752 6,908
======= ======= ======= =======
American Bank, Inc.
Selected Financial Information
Unaudited
For the Three
Months Ended Sept. 30,
------------------------
2003 2002
---- ----
Performance Ratios(1):
Return on assets (ratio of net income to average total
assets) ................................................. 0.47% 0.62%
Return on equity (ratio of net income to average equity) 7.32% 9.41%
Net interest margin (ratio of net interest income divided
by average earning assets) .............................. 1.34% 1.88%
Ratio of operating expense to average total assets ...... 1.07% 1.36%
Efficiency ratio (ratio of operating expenses divided by
net interest income plus non-interest income) ........... 56.16% 60.77%
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 ........... 1.18% 1.27%
Regulatory Capital Ratios-Bank:
Tier I to average assets ................................ 7.66% 7.51%
Tier I to risk weighted assets .......................... 14.35% 11.80%
Total capital to risk weighted assets ................... 15.22% 12.44%
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(1) Ratios for the three month periods are annualized.
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