EXHIBIT 99
PRESS RELEASE OF AMERICAN BANK INCORPORATED
PRESS RELEASE
FOR IMMEDIATE RELEASE
CONTACT: Mark W. Jaindl (mjaindl@pcbanker.com) Phone: 610-366-1800
Chairman, President and Chief Toll-Free: 888-366-6622
Executive Officer Fax: 610-366-1900
American Bank Reports Record First Quarter Earnings,
Total Assets Exceed $525 Million
Allentown, PA, April 12, 2005 - American Bank, Inc. (NasdaqSC: AMBK), the parent
company of American Bank, today announced record earnings for the quarter ended
March 31, 2005. Net income for the quarter was $962,000, or $0.12 per diluted
share, an increase of $111,000, or 13.0%, from the same period in the prior
year. At the end of the quarter, assets totaled $527 million, up 4.4% from $505
million at March 31, 2004. Total deposits reached $358 million as of March 31,
2005, up from $350 million from the same time the previous year. American Bank's
loans outstanding increased by $45 million, or 21.7%, since March 2004.
The increase in first quarter earnings is attributable to an increase of $21.4
million of earning assets and an increase of 22 basis points in the net interest
margin in the current quarter compared to the prior year quarter.
President and CEO Mark Jaindl stated, "We are pleased with the results for the
first quarter of 2005. The two factors impacting American Bank's positive
performance continue to be our ability to control costs and our focus on
maintaining superior asset quality. For the three months ended March 31, 2005,
American Bank's operating expense to asset ratio decreased to 1.10% from 1.15%
for the same period in the previous year, making American Bank one of the most
efficient banks in the country. In addition, the quality of our loan portfolio
remains high with only two relationships, representing balances of $200,919,
classified as non-performing."
As previously announced, the Board of Directors approved a stock repurchase
program authorizing the repurchase of up to 375,000 shares, or approximately 5%,
of the Company's outstanding shares of common stock. American Bank believes this
program will benefit both the Company and its stockholders.
American Bank will hold its Annual Meeting of Stockholders on April 20, 2005 at
9:00 a.m. EST at the Holiday Inn West, Fogelsville, PA.
American Bank common stock closed at $8.65 per share on Monday, April 11th.
American Bank Trust Preferred Securities last traded at $10.50 per share.
About American Bank
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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
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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)
Unaudited
March 31, December 31,
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2005 2004 2004
Selected Financial Condition Data:
Total assets .................................. $527,365 $505,207 $503,436
Loans receivable, net ......................... 252,358 207,420 242,348
Allowance for loan losses ..................... 2,904 2,459 2,768
Securities available for sale (at fair value) . 227,799 256,592 220,911
Securities held to maturity (at cost) ......... 23,282 15,067 13,480
Deposits ...................................... 358,230 350,266 345,732
Short-term debt ............................... 17,205 7,730 6,991
Long-term debt ................................ 96,027 96,292 96,095
Junior subordinated debentures ................ 10,187 10,187 10,187
Stockholders' equity .......................... 43,777 38,707 41,910
Book value per share .......................... $ 5.84 $ 5.38 $ 5.80
Shares outstanding ............................ 7,539 7,186 7,223
Unaudited
For the Three
Months Ended Mar 31,
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2005 2004
Selected Operating Data:
Total interest income ............................ $5,758 $5,110
Total interest expense ........................... 3,126 2,850
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Net interest income ........................... 2,632 2,260
Provision for loan losses ........................ 136 45
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Net interest income after
provision for loan losses ................... 2,496 2,215
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Fees and service charges ......................... 53 43
Net realized gain on sale of securities .......... 9 241
Net realized gain on sale of mortgage loans ...... 24 30
Earnings on bank owned life insurance ............ 87 75
Other income ..................................... 141 55
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Total non-interest income ..................... 314 444
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Total operating expense ....................... 1,412 1,420
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Income before taxes on income .............. 1,398 1,239
Taxes on income .................................. 436 388
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Net income ....................................... $ 962 $ 851
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Earnings per share-basic ................... $ 0.13 $ 0.12
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-diluted ................. $ 0.12 $ 0.12
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Weighted average shares outstanding for
earnings per share calculation-basic..... 7,346 6,917
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-diluted... 8,589 8,186
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American Bank, Inc.
Selected Financial Information
Unaudited
For the Three
Months Ended Mar 31,
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2005 2004
Performance
Ratios(1):
Return on assets (ratio of net income to
average total assets) ................................ 0.75% 0.69%
Return on equity (ratio of net income
to average equity) .................................. 9.00% 9.57%
Net interest margin (ratio of net interest income
divided by average earning assets) ................... 2.12% 1.90%
Ratio of operating expense to average total assets ..... 1.10% 1.15%
Efficiency ratio (ratio of operating expenses divided by
net interest income plus non-interest income) ........ 48.01% 52.42%
Asset Quality Ratios:
Non-performing assets to total assets at end of period . 0.04% none
Allowance for loan losses to non-performing loans ...... 1,445.57% n/a
Allowance for loan losses to loans receivable .......... 1.14% 1.17%
Regulatory Capital Ratios-Bank:
Tier I to average assets ............................... 8.36% 7.66%
Tier I to risk weighted assets ......................... 12.81% 14.35%
Total capital to risk weighted assets .................. 13.70% 15.22%
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(1) Ratios for the three month periods are annualized.