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
Chairman, President and Chief Fax: 610-366-1900
Executive Officer
American Bank Reports Record Earnings,
Increases Annual Dividend 10%
Allentown, PA, January 19, 2005 - American Bank, Inc. (NasdaqSC: AMBK), the
parent company of American Bank, today announced record earnings for the quarter
and year ended December 31, 2004. Net income for the quarter was $1,009,000, or
$.13 per diluted share, an increase of $292,000 or 40.7% from the same period in
the prior year. For the year ended December 31, 2004, American Bank, Inc. posted
net income of $3,167,000, or $0.43 per diluted share, an increase of $530,000 or
20.1% from the prior year. The increase in net income for the year ended
December 31, 2004 is the result of an increase of $23.6 million of average
earning assets and an increase of 31 basis points in the net interest margin.
President and CEO Mark Jaindl stated, "We are pleased to be able to deliver
another record earnings year to our shareholders, which marks the seventh
straight year of increased profitability for American Bank. Our earnings growth
was driven by increases in loans outstanding and net interest margin, resulting
in an increase of $1,863,000, or 25.6%, in net interest income. Our commitment
to providing our customers quality products and services was evidenced by
increases in both our loan portfolio and total deposits. American Bank's loans
outstanding increased by $37.5 million, or 18.3%, to $242.3 million at December
31, 2004 and deposits increased $13.4 million, or 4.0%, to $345.7 million during
the same period."
Jaindl continued, "As we maintain our focus on enhancing shareholder value, we
are also pleased to announce that on January 18, 2005, the Board of Directors
declared a dividend of $0.11 per share to shareholders of record on January 28,
2005 and payable on February 15, 2005. This is an increase of 10% over the
dividend paid in 2004. In addition, shareholders participating in the Dividend
Reinvestment and Stock Purchase Plan will be given the opportunity to purchase
additional shares of American Bank Inc. common stock at a 10% discount to the
market price. A full plan description will be mailed to shareholders during the
next week."
American Bank, Inc. common stock last traded at $8.40 per share.
About American Bank
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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 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 trade marks 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
(In thousands, except per share data)
December 31,
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2004 2003
Unaudited
Selected Financial Condition Data:
Total assets ......................................... $503,145 $481,992
Loans receivable, net ................................ 242,348 204,832
Allowance for loan losses ............................ 2,768 2,412
Securities available for sale (at fair value) ........ 220,911 236,746
Securities held to maturity (at cost) ................ 13,480 15,361
Deposits ............................................. 345,732 332,286
Short-term debt ...................................... 6,991 6,909
Long-term debt ....................................... 96,095 96,357
Mandatory redeemable convertible debentures .......... 10,187 10,200
Stockholders' equity ................................. 41,841 34,963
Book value per share ................................. $ 5.80 $ 5.14
Shares outstanding ................................... 7,223 6,807
For the Three For the Year
Months Ended Dec 31, Ended Dec 31,
-------------------- -------------
2004 2003 2004 2003
Unaudited Unaudited Unaudited
Selected Operating Data:
Total interest income ......................... $ 5,489 $ 4,893 $20,734 $19,225
Total interest expense ........................ 2,982 2,881 11,583 11,937
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Net interest income ........................ 2,507 2,012 9,151 7,288
Provision for loan losses ..................... 118 187 393 405
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Net interest income after
provision for loan losses ................ 2,389 1,825 8,758 6,883
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Fees and service charges ...................... 55 42 207 165
Net realized gain on sale of securities ....... 182 386 334 862
Net realized gain on sale of mortgage loans ... 30 8 122 401
Other income .................................. 185 128 579 573
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Total non-interest income .................. 452 564 1,242 2,001
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Total operating expense .................... 1,393 1,327 5,440 5,111
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Income before taxes on income ........... 1,448 1,062 4,560 3,773
Taxes on income ............................... 439 345 1,393 1,136
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Net income .............................. $ 1,009 $ 717 $ 3,167 $ 2,637
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Earnings per share-basic ................ $ 0.14 $ 0.11 $ 0.44 $ 0.41
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-diluted .............. $ 0.13 $ 0.10 $ 0.43 $ 0.39
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Weighted average shares outstanding for
earnings per share calculation-basic . 7,206 6,789 7,129 6,458
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-diluted 8,448 8,065 8,376 7,828
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American Bank, Inc.
Selected Financial Information
For the Three For the Year
Months Ended Dec 31, Ended Dec 31,
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2004 2003 2004 2003
Unaudited Unaudited Unaudited
Performance
Ratios(1):
Return on assets (ratio of net income to
average total assets) ................................ .81% .60% .64% .56%
Return on equity (ratio of net income
to average equity) .................................. 10.14% 8.30% 8.24% 8.27%
Net interest margin (ratio of net interest income
divided by average earning assets) ................... 2.01% 1.74% 1.90% 1.59%
Ratio of operating expense to average total assets ..... 1.12% 1.11% 1.09% 1.07%
Efficiency ratio (ratio of operating expenses divided by
net interest income plus non-interest income) ........ 48.94% 51.51% 52.34% 55.02%
Asset Quality Ratios:
Non-performing assets to total assets at end of period . 0.15% n/a
Allowance for loan losses to non-performing loans ...... 373.66% n/a
Allowance for loan losses to loans receivable .......... 1.13% 1.16%
Regulatory Capital Ratios-Bank:
Tier I to average assets ............................... 8.14% 7.81%
Tier I risk weighted assets ............................ 13.41% 13.96%
Total capital to risk weighted assets .................. 14.33% 14.86%
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(1) Ratios for the three month periods are annualized.