PRESS RELEASE
FOR IMMEDIATE RELEASE
CONTACT: Mark W. Jaindl (mjaindl@pcbanker.com) Phone: 610-366-1800
-------------------- Toll-Free: 888-366-6622
Chairman, President and Chief Executive Officer
Fax: 610-366-1900
American Bank Reports Increased Second Quarter Earnings
Allentown, PA, July 14, 2004 - American Bank, Inc. (NasdaqSC: AMBK), the parent
company of American Bank, today announced earnings for the quarter ended June
30, 2004. Net income for the quarter was $602,000, or $0.08 per diluted share,
an increase of $49,000, or 8.86%, from the same period in the prior year. At the
end of the quarter, assets totaled $511 million, up 6.90% from $478 million at
June 30, 2003. Total deposits reached $351 million as of June 30, 2004, up from
$324 million from the same time the previous year. American Bank's loan
portfolio totaled $221.6 million as of June 30, 2004, up from $156.1 million at
the same time last year, an increase of $65.5 million.
The improvement in second quarter earnings is attributable to an increase of
$31.0 million of average earning assets and an increase of 26 basis points in
the net interest margin in the current quarter compared to the prior year.
Partially offsetting the improvement in net interest income was a decrease of
$366,000 of non-interest income as the result of realized losses on the sale of
securities and a decrease in the amount of gains realized on the sale of
residential mortgage loans.
President and CEO Mark Jaindl stated, "The increase of the net interest margin
by 26 basis points during the second quarter of 2004 again illustrates our
commitment to enhancing shareholder value by controlling expenses and
maintaining asset quality. Our operating expense to asset ratio of 1.05% makes
us one of the most efficient banks in the country and it is our goal to continue
controlling our expenses as this will allow us to offer our customers
competitive rates on deposit and loan products. In addition, we remain focused
on asset quality as we maintained no non-performing loans during the second
quarter even as we increase our loan portfolio."
American Bank common stock last traded at $8.84 per share.
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
<page>
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.
<page>
American Bank, Inc.
Selected Financial Information
(In thousands, except per share data and ratios)
Unaudited
June 30, December 31,
2004 2003 2003
---- ---- ----
Selected Financial Condition Data:
Total assets................................................ $ 511,355 $ 477,738 $ 481,992
Loans receivable, net....................................... 221,589 156,137 204,832
Allowance for loan losses................................... 2,598 2,021 2,412
Securities available for sale (at fair value)............... 232,593 273,697 236,746
Securities held to maturity (at cost)...................... 13,725 15,201 15,361
Deposits................................................... 350,701 324,185 332,286
FHLB advances.............................................. 101,328 97,558 96,357
Subordinated debentures.................................... 10,187 10,200 10,200
Stockholders' equity....................................... 37,421 34,912 34,963
Book value per share........................................ $ 5.18 $ 5.13 $ 5.14
Shares outstanding.......................................... 7,223 6,807 6,807
Unaudited Unaudited
For the Three For the Six
Months Ended June 30, Months Ended June 30,
---------------------- ---------------------
2004 2003 2004 2003
------- ------ ------ ------
Selected Operating Data:
Total interest income........................................ $ 5,047 $ 4,776 $ 10,157 $ 9,850
Total interest expense....................................... 2,867 3,028 5,717 6,098
------ ------ ------ -----
Net interest income..................................... 2,180 1,748 4,440 3,752
Provision for loan losses.................................... 139 201 184 12
---- ---- ---- --
Net interest income after provision for loan losses..... 2,041 1,547 4,256 3,740
----- ------ ------ -----
Fees and service charges..................................... 52 41 95 82
Net realized gain on sales of mortgage loans................. 36 170 66 249
Net realized gain on sales of securities..................... (89) 128 152 128
Other income............................................... 132 158 262 309
---- ---- ---- ---
Total non-interest income............................... 131 497 575 768
---- ---- ---- ---
Total operating expense...................................... 1,324 1,271 2,744 2,566
----- ------ ------ -----
Income before taxes on income.......................... 848 773 2,087 1,942
Taxes on income.............................................. 246 220 634 577
---- ---- ---- ---
Net income.............................................. $ 602 $ 553 $ 1,453 $ 1,365
==== ==== ===== =====
Earnings per share-basic..................................... $ 0.08 $ 0.09 $ 0.21 $ 0.22
diluted........................ $ 0.08 $ 0.09 $ 0.21 $ 0.21
==== ==== ===== ====
Weighted average shares outstanding-basic.................... 7,185 6,182 7,067 6,127
===== ===== ===== =====
-diluted.................. 8,439 7,639 8,305 7,612
===== ===== ===== =====
American Bank, Inc.
Selected Financial Information
Unaudited
For the Three
Months Ended June 30,
----------------------
2004 2003
------ ------
Performance
Ratios(1):
Return on assets (ratio of net income to
average total assets)..................... 0.47% 0.47%
Return on equity (ratio of net income
to average equity)....................... 6.39% 7.10%
Net interest margin (ratio of net interest income
divided by average earning assets)........ 1.79% 1.53%
Ratio of operating expense to average total assets. 1.05% 1.07%
Efficiency ratio (ratio of operating expenses divided by
net interest income plus non-interest income) 57.29% 56.61%
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 1.16% 1.17%
Regulatory Capital Ratios-Bank:
Tier I to average assets 7.78% 7.78%
Tier I to risk weighted assets 14.25% 14.13%
Total capital to risk weighted assets 15.21% 15.05%
-------------------------
(1) Ratios for the three month periods are annualized.