EXHIBIT 99
PRESS RELEASE OF AMERICAN BANK INCORPORATED
PRESS RELEASE
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FOR IMMEDIATE RELEASE
CONTACT: Mark W. Jaindl (mjaindl@pcbanker.com) Phone: 610-366-1800
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President and Chief Executive Officer Toll-Free: 888-366-6622
Fax: 610-366-1900
American Bank Reports First Quarter Earnings
Allentown, PA, April 21, 2006 - American Bank, Inc. (NasdaqSC: AMBK), the parent
company of American Bank, today announced earnings for the quarter ended March
31, 2006. Net income for the quarter was $738,000, or $0.10 per diluted share, a
decrease from $0.12 per diluted share in the same period in the prior year.
While American Bank recognized a decrease in net income for the quarter, net
interest income for the quarter ended March 31, 2006 was $2.6 million, unchanged
from the prior year quarter ended March 31, 2005. The primary reason for the
decrease in first quarter net income is attributable to a pre-tax impairment
charge of $145,000 on available for sale investment securities. The impairment
charge resulted from management's determination that Fannie Mae Preferred Stock
Series-F was other than temporarily impaired at March 31, 2006. Also impacting
the current quarter were the legal and accounting costs associated with the
repurchase of 1.4 million shares of the Company's common stock.
Average interest-earning assets increased $11.6 million, to $508.0 million at
March 31, 2006, compared to $496.4 million at March 31, 2005. Total assets were
$525 million at the end of the quarter, while total deposits reached $383
million as of March 31, 2006. While the Company's net interest margin increased
by seven basis points to 2.06% at March 31, 2006 when compared to December 31,
2005, it decreased by six basis points when compared to 2.12% at March 31, 2005,
a result of the flattening of the Treasury yield curve during the year.
President and CEO Mark Jaindl stated, "Although the Company incurred
non-recurring expenses during the first quarter which impacted our net income,
our emphasis on serving small- to medium-sized commercial businesses throughout
the Lehigh Valley proved beneficial as we increased our loan portfolio by 22.4%,
or $56.1 million, since March 2005. While we are increasing our loan balances,
we remain focused on asset quality as evidenced by non-performing assets, which
remained at less than $40,000 at March 31, 2006."
Jaindl continued, "We continue to implement strategies to enhance shareholder
value and this was most recently evidenced by the 33% increase in our annual
dividend rate and the decision by our Board of Directors to pay dividends
quarterly as opposed to annually. On March 21, 2006, our Board of Directors
declared a quarterly dividend of $0.04 per share of common stock to shareholders
of record on April 14, 2006. In addition, the Board has determined to allow for
the reinvestment of dividends to purchase additional shares of American Bank
Inc. common stock at a 5% discount to the average of the closing "bid" and "ask"
price on the Record Date.
American Bank common stock last traded at $8.25 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.
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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.
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American Bank, Inc.
Selected Financial Information
(Amounts in thousands, except per share data)
Unaudited
March 31, December 31,
2006 2005 2005
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Selected Financial Condition Data:
Total assets................................ $524,874 $527,365 $529,100
Loans receivable, net....................... 308,409 252,358 301,394
Allowance for loan losses .................. 3,521 2,904 3,393
Securities available for sale (at fair value) 178,067 227,799 188,691
Securities held to maturity (at cost)....... 13,327 23,282 13,482
Deposits.................................... 382,998 358,230 368,958
Short-term debt............................. 27,920 17,205 12,921
Long-term debt.............................. 69,820 96,027 90,848
Junior subordinated debentures.............. 10,187 10,187 10,187
Stockholders' equity........................ 31,824 43,777 44,345
Book value per share........................ $ 5.27 $ 5.84 $ 5.97
Shares outstanding.......................... 6,048 7,539 7,424
Unaudited
For the Three
Months Ended March 31,
2006 2005
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Selected Operating Data:
Total interest income....................... $ 6,802 $ 5,758
Total interest expense...................... 4,189 3,126
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Net interest income............ 2,613 2,632
Provision for loan losses................... 128 136
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Net interest income after provision
for loan losses....................... 2,485 2,496
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Fees and service charges.................... 51 53
Net gain (loss) on available for sale securities (90) 9
Net realized gain on sale of mortgage loans. 10 24
Earnings on bank owned life insurance....... 87 87
Other income.......................... 59 141
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Total non-interest income............... 117 314
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Total operating expense................. 1,539 1,412
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Income before taxes on income....... 1,063 1,398
Taxes on income............................. 325 436
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Net income.................................. $ 738 $ 962
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Earnings per share-basic ................. $ 0.11 $ 0.13
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-diluted .............. $ 0.10 $ 0.12
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Weighted average shares outstanding for
earnings per share calculation-basic.... 6,839 7,346
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-diluted.............. 8,073 8,589
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American Bank, Inc.
Selected Financial Information
Unaudited
For the Three
Months Ended March 31,
2006 2005
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Performance Ratios(1):
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Return on assets (ratio of net income to
average total assets)..................... 0.56% 0.75%
Return on equity (ratio of net income
to average equity)....................... 7.53% 9.00%
Net interest margin (ratio of net interest income
divided by average earning assets)........ 2.06% 2.12%
Ratio of operating expense to average total assets. 1.16% 1.10%
Efficiency ratio (ratio of operating expenses divided by
net interest income plus non-interest income) 56.37% 48.01%
Asset Quality Ratios:
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Non-performing assets to total assets at end of period 0.01% 0.04%
Allowance for loan losses to non-performing loans 8,739.58% 1,444.80%
Allowance for loan losses to loans receivable 1.13% 1.14%
Regulatory Capital Ratios-Bank:
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Tier I to average assets 7.82% 8.23%
Tier I to risk weighted assets 11.50% 12.43%
Total capital to risk weighted assets 12.50% 13.30%
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(1) Ratios for the three month periods are annualized.