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 Earnings for 2006,
Increases Dividend
Allentown, PA, January 26, 2007 - American Bank, Inc. (NasdaqCM: AMBK), the
parent company of American Bank, today announced earnings for the year ended
December 31, 2006. Net income for the year was $2,831,000, or $0.43 per diluted
share, a decrease of $0.02 per share from the $0.45 per diluted share reported
for the year ended December 31, 2005. For the quarter ended December 31, 2006,
American Bank, Inc. posted net income of $674,000, or $0.10 per diluted share, a
decrease of $0.02 per share from the $0.12 per diluted share reported in the
same period of the prior year. The decrease in net income for the year ended
December 31, 2006 is the result of a decrease of $788,000 in non-interest income
and an increase of $189,000 in non-interest expense. The decrease in
non-interest income results from a decrease in gains on sale of mortgage loans
of $70,000, a decrease in gains on available for sale securities of $342,000 and
a decrease in other income of $371,000. American Bank's net loans outstanding
increased by $18.6 million, or 6.2%, to $320.0 million at December 31, 2006,
while non-performing loans were less than $68,000 at year-end.
President and CEO Mark W. Jaindl stated, "On September 1, 2006, American Bank
reported that it could realize a significant gain on the sale of shares of PSB
Bancorp, Inc. if the proposed acquisition of PSB Bancorp by Conestoga Bancorp,
Inc. is completed. PSB Bancorp held a special annual meeting on January 12, 2007
for the purpose of voting on the merger. Ninety-nine percent of shareholders
voted in favor of the transaction. If this transaction closes, we anticipate an
after-tax gain for American Bank, Inc. of approximately $1.7 million in the
first or second quarter of 2007."
On December 19, 2006, the Board of Directors of American Bank, Inc. declared a
25% increase in the quarterly dividend from the current $0.04 per share to $0.05
per share. The dividend will be paid to shareholders of record on January 15,
2007 and payable on January 29, 2007. In addition, American Bank will continue
its Dividend Reinvestment Plan, which allows shareholders 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, Inc. common stock last traded at $7.79 per share. American
Capital Trust I Preferred Securities last traded at $8.81.
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 check
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 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.
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)
Unaudited
December 31,
------------
2006 2005
Selected Financial Condition Data:
- ----------------------------------
Total assets $ 504,289 $ 529,100
Loans receivable, net 319,978 301,394
Allowance for loan losses 3,734 3,393
Securities available for sale (at fair value) 149,636 188,691
Securities held to maturity (at cost) 11,709 13,482
Deposits 368,995 368,958
Short-term debt 31,616 8,721
Long-term debt 57,734 90,848
Mandatory redeemable convertible debentures 10,187 10,187
Stockholders' equity 34,221 44,345
Book value per share $ 5.72 $ 5.97
Shares outstanding 5,985 7,424
For the Three For the Year
Months Ended Dec. 31, Ended Dec. 31,
--------------------- --------------
2006 2005 2006 2005
Selected Operating Data:
- ------------------------
Total interest income $ 7,160 $ 6,419 $ 28,162 $ 24,293
Total interest expense 4,834 4,048 18,402 14,246
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Net interest income 2,326 2,371 9,760 10,047
Provision for loan losses 25 139 349 624
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Net interest income after provision for loan losses 2,301 2,232 9,411 9,423
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Fees and service charges 48 44 192 200
Net gains on available for sale securities - 362 (79) 263
Net realized gain on sale of mortgage loans 13 24 57 127
Earnings from Bank-owned life insurance 89 78 342 339
Other income 63 143 243 614
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Total non-interest income 213 651 755 1,543
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Total operating expense 1,505 1,442 6,058 5,869
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Income before taxes on income 1,009 1,441 4,108 5,097
Taxes on income 335 441 1,277 1,565
------------------------------ ---------------------------------
Net income $ 674 $ 1,000 $ 2,831 $ 3,532
============================== =================================
Earnings per share-basic $ 0.12 $ 0.14 $ 0.46 $ 0.48
============================== =================================
-diluted $ 0.10 $ 0.12 $ 0.43 $ 0.45
============================== =================================
Weighted average shares outstanding for earnings per share 5,983 7,424 6,219 7,420
calculation-basic ============================== =================================
-diluted 7,217 8,664 7,453 8,659
============================== =================================
American Bank, Inc.
Selected Financial Information
Unaudited
For the Three For the Year
Months Ended Dec. 31, Ended Dec. 31,
--------------------- --------------
2006 2005 2006 2005
Performance Ratios (1):
- -----------------------
Return on assets (ratio of net income to average total assets) 0.53% 0.76% 0.54% 0.68%
Return on equity (ratio of net income to average equity) 7.90% 8.99% 8.25% 8.05%
Net interest margin (ratio of net interest income divided
by average earning assets) 1.88% 1.99% 1.94% 2.01%
Ratio of operating expense to average total assets 1.15% 1.09% 1.15% 1.13%
Efficiency ratio (ratio of operating expenses divided by net
interest income plus non-interest income) 59.28% 47.68% 57.59% 50.81%
Asset Quality Ratios:
- ---------------------
Non-performing assets to total assets at end of period 0.01% 0.01%
Allowance for loan losses to non-performing loans 5353.75% 8312.60%
Allowance for loan losses to loans receivable 1.12% 1.12%
Regulatory Capital Ratios-Bank:
- -------------------------------
Tier I to average assets 8.20% 8.56%
Tier I risk weighted assets 11.36% 12.31%
Total capital to risk weighted assets 12.39% 13.26%
- ---------------------------------------------------------------
(1) Ratios for three month periods are annualized.