FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
QUARTERLY REPORT UNDER SECTION 13 OR 15 (D) OF
THE SECURITIES EXCHANGE ACT OF 1934
For the Quarter Ended September 30, 2002
Commission File Number 0-11928
AMERICAN BANCORP, INC.
- --------------------------------------------------------------------------------
(Exact name of registrant as specified in its charter)
LOUISIANA 72-0951347
------------------------------- -------------------------------
(State or other jurisdiction of (I R S Employer I.D. Number)
incorporation or organization)
321 EAST LANDRY STREET, OPELOUSAS, LA 70570
- --------------------------------------- --------------------------
(Address of principal executive office) (Zip Code)
(337) 948-3056
- --------------------------------------------------------------------------------
(Registrant's telephone number, including area code)
NOT APPLICABLE
- --------------------------------------------------------------------------------
(Former name, address, fiscal year, if changed since last report)
Indicate by check mark whether the registrant: (1) has filed all reports
required to be filed by Section 13 or 15 (d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter periods that the
registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days. YES X NO
--- ---
APPLICABLE ONLY TO CORPORATE ISSUERS:
Indicate the number of shares outstanding of each of the issuer's classes of
common stock, as of the latest practical date.
Common stock, $5 Par Value----116,183 shares as of October 31, 2002
AMERICAN BANCORP, INC.
(PARENT COMPANY ONLY)
BALANCE SHEET
(In Thousands)
<Table>
<Caption>
Sept. 30, 2002 Dec. 31, 2001
-------------- -------------
ASSETS
(Unaudited) (Note 1)
Cash on deposit with subsidiary $ 12 $ 24
Investment in subsidiary 13,758 12,235
Dividends receivable 0 0
Due from subsidiary 96 67
------------- -------------
TOTAL ASSETS $ 13,866 $ 12,326
============= =============
LIABILITIES
Accrued income taxes payable $ 90 $ 61
Other liabilities 0 0
------------- -------------
TOTAL LIABILITIES $ 90 $ 61
------------- -------------
SHAREHOLDERS' EQUITY
Common stock, $5 par value; authorized
10,000,000 shares; issued 120,000 shares;
116,183 and 116,589 shares outstanding,
respectively $ 600 $ 600
Surplus 2,150 2,150
Retained earnings 10,406 9,345
Treasury stock, 3,817 and 3,411 shares at cost,
respectively (245) (213)
Net unrealized gain (loss) on securities
available for sale, net of tax 865 383
------------- -------------
TOTAL SHAREHOLDERS' EQUITY $ 13,776 $ 12,265
------------- -------------
TOTAL LIABILITIES & SHAREHOLDERS' EQUITY $ 13,866 $ 12,326
============= =============
</Table>
See Notes to Consolidated Financial Statements.
AMERICAN BANCORP, INC.
CONSOLIDATED BALANCE SHEETS
(In Thousands)
<Table>
<Caption>
Sept. 30, 2002 Dec. 31, 2001
-------------- -------------
ASSETS (Unaudited) (Note 1)
Cash and due from banks $ 5,111 $ 5,321
Federal funds sold 6,425 8,925
------------- -------------
Total cash and cash equivalents $ 11,536 $ 14,246
Interest bearing deposits with banks 0 99
Securities held to maturity 2,106 2,306
Securities available for sale 36,258 35,049
Loans - net of allowance for loan losses 39,664 37,146
Bank premises and equipment 1,656 1,771
Other real estate 0 0
Accrued interest receivable 552 583
Other assets 551 390
------------- -------------
TOTAL ASSETS $ 92,323 $ 91,590
============= =============
LIABILITIES
Deposits:
Non-interest bearing demand deposits $ 27,614 $ 27,780
Interest bearing deposits:
NOW accounts 9,756 13,370
Money market accounts 3,225 2,651
Savings 11,261 10,626
Time deposits $100,000 or more 8,223 7,311
Other time deposits 17,047 16,950
------------- -------------
Total deposits $ 77,126 $ 78,688
Accrued interest payable 79 131
Other liabilities 1,342 506
------------- -------------
TOTAL LIABILITIES $ 78,547 $ 79,325
------------- -------------
SHAREHOLDERS' EQUITY
Common Stock, $5 par value; authorized
10,000,000 shares; issued 120,000 shares;
116,183 and 116,589 shares outstanding,
respectively $ 600 $ 600
Surplus 2,150 2,150
Retained earnings 10,406 9,345
Treasury stock, 3,817 and 3,411 shares at cost,
respectively (245) (213)
Unrealized gain (loss) on securities
Available for sale, net of tax 865 383
------------- -------------
TOTAL SHAREHOLDERS' EQUITY $ 13,776 $ 12,265
------------- -------------
TOTAL LIABILITIES & SHAREHOLDERS' EQUITY $ 92,323 $ 91,590
============= =============
</Table>
See Notes to Consolidated Financial Statements.
AMERICAN BANCORP, INC.
(PARENT COMPANY ONLY)
STATEMENTS OF INCOME
(Unaudited)
(In Thousands)
<Table>
<Caption>
Three Months Ended Nine Months Ended
September 30, September 30,
---------------------------- ---------------------------
2002 2001 2002 2001
----------- ----------- ----------- -----------
INCOME FROM SUBSIDIARY
Dividends from bank subsidiary $ 0 $ 0 $ 30 $ 52
OPERATING EXPENSES
Directors fees 3 3 9 9
Other expenses 0 0 1 1
----------- ----------- ----------- -----------
TOTAL EXPENSES 3 3 10 10
----------- ----------- ----------- -----------
Earnings before income tax
and equity in undistributed earnings of
subsidiary (3) (3) 20 42
Provision for income taxes 0 0 0 0
----------- ----------- ----------- -----------
Earnings before equity in undistributed
earnings of subsidiary (3) (3) 20 42
Equity in undistributed earnings of
subsidiary 372 335 1,041 829
----------- ----------- ----------- -----------
Net income $ 369 $ 332 $ 1,061 $ 871
=========== =========== =========== ===========
</Table>
See Notes to Consolidated Financial Statements.
AMERICAN BANCORP, INC.
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
(In Thousands Except for Per Share Data)
<Table>
<Caption>
Three Months Ended Nine Months Ended
September 30, September 30,
------------------------- -------------------------
2002 2001 2002 2001
----------- ----------- ----------- -----------
INTEREST INCOME:
Interest and fees on loans $ 773 $ 803 $ 2,245 $ 2,313
Interest on investment securities:
Taxable 347 381 1,136 1,156
Tax-exempt 129 114 375 325
Other interest 34 43 89 192
----------- ----------- ----------- -----------
TOTAL INTEREST INCOME 1,283 1,341 3,845 3,986
----------- ----------- ----------- -----------
INTEREST EXPENSE:
Interest on deposits 239 394 758 1,196
Interest on short-term borrowings 0 0 0 0
----------- ----------- ----------- -----------
TOTAL INTEREST EXPENSE 239 394 758 1,196
----------- ----------- ----------- -----------
NET INTEREST INCOME 1,044 947 3,087 2,790
Provision for possible loan losses 11 10 32 31
----------- ----------- ----------- -----------
Net interest income after provision for
possible loan losses 1,033 937 3,055 2,759
----------- ----------- ----------- -----------
NON-INTEREST INCOME:
Service charges on deposit accounts 141 140 407 407
Investment securities gains (losses) 0 0 0 0
Other 23 15 101 64
----------- ----------- ----------- -----------
TOTAL NON-INTEREST INCOME 164 155 508 471
----------- ----------- ----------- -----------
NON-INTEREST EXPENSE:
Salaries and employee benefits 386 324 1,109 1,049
Net occupancy expense 149 150 429 463
Net cost of operation of O.R.E.O 0 0 0 0
Other 167 171 596 549
----------- ----------- ----------- -----------
TOTAL NON-INTEREST EXPENSE 702 645 2,134 2,061
----------- ----------- ----------- -----------
INCOME BEFORE INCOME TAXES 495 447 1,429 1,169
Provision for income taxes 126 115 368 298
----------- ----------- ----------- -----------
NET INCOME $ 369 $ 332 $ 1,061 $ 871
=========== =========== =========== ===========
Net income per share of common stock $ 3.17 $ 2.84 $ 9.12 $ 7.43
=========== =========== =========== ===========
</Table>
See Notes to Consolidated Financial Statements
AMERICAN BANCORP, INC.
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY
For the Nine Month Periods Ended September 30, 2002 & 2001
(Unaudited)
(In Thousands)
<Table>
<Caption>
ACCUMULATED
OTHER
STOCK RETAINED COMPREHENSIVE TREASURY COMPREHENSIVE
AMOUNT SURPLUS EARNINGS INCOME STOCK INCOME TOTAL
------- ------- -------- ------------- --------- ------------- ------------
Balance December 31, 2000 $ 600 $ 2,150 $ 8,442 $ 19 $ (135) $ 0 $ 11,076
Comprehensive income
Net income (loss) -- -- 871 -- -- 871 871
Other comprehensive income,
net of tax:
Change in unrealized gains (losses)
on securities available for sale -- -- -- 604 -- 604 604
------------
Total comprehensive income -- -- -- -- -- $ 1,475
============
Purchase of treasury stock -- -- -- -- (51) (51)
Dividends paid -- -- 0 -- -- 0
------- ------- -------- ------------ --------- ------------
Balance, September 30, 2001 $ 600 $ 2,150 $ 9,313 $ 623 $ (186) $ 12,500
======= ======= ======== ============ ========= ============
Balance December 31, 2001 $ 600 $ 2,150 $ 9,345 $ 383 $ (213) $ 0 $ 12,265
Comprehensive income
Net income (loss) -- -- 1,061 -- -- 1,061 1,061
Other comprehensive income,
net of tax:
Change in unrealized gains (losses)
on securities available for sale -- -- -- 482 -- 482 482
------------
Total comprehensive income -- -- -- -- -- $ 1,543
============
Purchase of treasury stock -- -- -- -- (32) (32)
Dividends paid -- -- -- -- --
------- ------- -------- ------------ --------- ------------
Balance, September 30, 2002 $ 600 $ 2,150 $ 10,406 $ 865 $ (245) $ 13,776
======= ======= ======== ============ ========= ============
</Table>
See Notes to Consolidated Financial Statements
AMERICAN BANCORP, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(In Thousands)
<Table>
<Caption>
Nine Months Ended September 30,
-------------------------------
2002 2001
------------ --------------
OPERATING ACTIVITIES
Net income $ 1,061 $ 871
Adjustments to reconcile net income to net cash
provided by operating activities:
Discount accretion, net of premium amortization
on investment securities (194) (119)
Depreciation 124 130
Amortization of software 36 0
Provision for loan loss 31 31
(Gain) loss on disposal of assets 0 0
(Increase) decrease in assets:
Other real estate owned 0 0
Accrued interest receivable 31 95
Other assets (54) 130
Increase (decrease) in liabilities:
Accrued interest payable (51) (9)
Other liabilities 587 584
------------ ------------
Net cash provided by operating activities $ 1,571 $ 1,713
------------ ------------
INVESTING ACTIVITIES
(Increase) decrease in interest bearing deposits with banks $ 99 $ 199
Proceeds from sales & maturities of available for sale securities 14,814 12,646
Proceeds from sales & maturities of held to maturity securities 1,800 2,700
Purchases of available for sale securities (15,095) (15,831)
Purchases of held to maturity securities (1,603) (511)
(Increase) decrease in loans (2,549) (4,602)
Purchases of property & equipment (152) (446)
Proceeds from sale of property & equipment 0 0
Other 0 0
------------ ------------
Net cash provided by (used in) investing activities $ (2,686) $ (5,845)
------------ ------------
FINANCING ACTIVITIES
Increase (decrease) in demand deposits, transaction
accounts and savings $ (2,572) $ (4,091)
Increase (decrease) in time deposits 1,010 3,039
Dividends paid 0 0
Purchase of treasury stock (33) (51)
------------ ------------
Net cash provided by (used in) financing activities $ (1,595) $ (1,103)
------------ ------------
Increase (decrease) in cash and cash equivalents $ (2,710) $ (5,235)
Cash and cash equivalents at beginning of year 14,246 11,676
------------ ------------
Cash and cash equivalents at end of period $ 11,536 $ 6,441
============ ============
SUPPLEMENTAL DISCLOSURES:
Cash payments for:
Interest expense $ 810 $ 1,205
============ ============
Income taxes $ 364 $ 130
============ ============
</Table>
See Notes to Consolidated Financial Statements
AMERICAN BANCORP, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
September 30, 2002
NOTE 1 - A BASIS OF PRESENTATION
The accompanying unaudited consolidated financial statements
have been prepared in accordance with generally accepted
principles of accounting for instructions to Form 10-Q and
Article 10 of Regulations S-X. Accordingly, they do not include
all of the information and footnotes required by generally
accepted accounting principles for complete financial statements.
In the opinion of management, all adjustments ( consisting of
normal recurring accruals ) considered necessary for a fair
presentation have been included. Operating results for the nine
month period ended September 30, 2002 are not necessarily
indicative of the results that may be expected for the year ended
December 31, 2002.
The balance sheet at December 31, 2001 has been derived from
the audited financial statements at that date, but does not
include all of the information and footnotes required by
generally accepted accounting principles for complete financial
statements.
For further information, refer to the consolidated financial
statements and footnotes thereto included in American Bancorp,
Inc.'s annual report on Form 10-K for the year ended December 31,
2001.
NOTE 2 - IMPAIRED LOANS
In accordance with Statement of Financial Accounting
Standards (SFAS) No. 114, interest payments received on impaired
loans are applied to principal if there is doubt as to the
collectibility of the principal; otherwise, these receipts are
recorded as interest income.
As it relates to in-substance foreclosures, SFAS No. 114 requires
that a creditor continue to follow loan classification on the
balance sheet unless the creditor receives physical possession of
the collateral. The Company had no in-substance foreclosures in
foreclosed assets to transfer to nonperforming loans and no
related reserve for losses to transfer to the reserve for
possible loan losses.
NOTE 3 - RELATED PARTIES
Directors, executive officers, and 10% shareholders and their
related interest had loans outstanding totaling $1,175,000 at
September 30, 2002.
NOTE 4- EARNINGS PER SHARE
The earnings per share computations are based on weighted
average number of shares outstanding during each quarter of
116,250 and 116,931 for the quarters ended September 30, 2002 and
2001, respectively and during each nine month period of 116,352
and 117,154 for the nine month periods ended September 30, 2002
and 2001, respectively.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS
Management's Discussion presents a review of the major factors and trends
affecting the performance of the Company and its bank subsidiary and should be
read in conjunction with the accompanying consolidated financial statements and
notes.
OVERVIEW
The Company reported net income of $1,061,000 for the first nine months of
2002 compared to $871,000 for the same period of 2001. On a per share basis, the
net income was $9.12 for the first nine months of 2002 compared to $7.43 for the
same period of 2001 and $3.17 for the quarter ended September 30, 2002 compared
to $2.84 for the same quarter of 2001. The Company recorded a provision for
possible loan losses of $32,000 and $31,000 for the nine months ended September
30, 2002 and 2001, respectively. Net interest income increased 10.65% to
$3,087,000 for the first nine months of 2002 compared to $2,790,000 for the same
period of 2001.
Total assets were $92,323,000 at September 30, 2002, an increase of
$733,000 from December 31, 2001. Loans increased by $ 2,518,000 or 6.78% from
$37,146,000 at December 31, 2001 to $39,664,000 at September 30, 2002. Deposits
decreased by $1,562,000 or 2.00% from $78,688,000 at December 31, 2001 to
$77,126,000 at September 30, 2002.
RESULTS OF OPERATIONS
NET INTEREST INCOME. Net interest income for the nine months ended
September 30, 2002 totaled $3,087,000, a $297,000 increase from the same period
in 2001. The greatest contributing factors to this increase was a decrease in
the interest paid on deposits, which was reduced by a decrease in the interest
earned on loans. The overall effect of volume and rate changes on net interest
income during the three month period ended September 30, 2002 was favorable.
PROVISION FOR POSSIBLE LOAN LOSSES. The Company recorded provisions for
possible loan losses of $32,000 and $31,000 for the first nine months of 2002
and 2001, respectively. The recognition of this provision resulted from growth
in the loan portfolio and is not a reflection of a change in asset quality. As a
percentage of outstanding loans, the allowance for possible loan losses was
1.55% and 1.60% at September 30, 2002 and December 31, 2001, respectively. The
provision is determined by the level of net charge offs, the size of the loan
portfolio, the level of nonperforming loans, anticipated economic conditions,
and review of financial condition of specific customers.
NON-INTEREST INCOME. For the first nine months of 2002 non-interest income
increased $37,000 or 7.86% compared to the same period of 2001.
Other non-interest income increased by $37,000 or 57.81% compared to the same
period of 2001. The increase is the result of an increase in fee income from
taking mortgage applications for the first nine months of 2002.
There were no securities gains in the nine month periods ended September 30,
2002 and 2001.
NON-INTEREST EXPENSE. For the first nine months of 2002 non-interest
expense increased $73,000 or 3.54% compared to the same period in 2001.
Salaries and employee benefits, the largest component of noninterest expense,
increased by $60,000 or 5.72% for the first nine months of 2002 as compared to
the same period in 2001. This increase was attributed to an increase in the cost
of benefits provided to employees and an overall increase in salaries.
Net occupancy expense decreased by $34,000 or 7.34% for the first nine months of
2002 as compared to the same period in 2001.
INCOME TAXES. The Company recorded provisions for income taxes of $368,000
for the nine month period ended September 30, 2002 as compared to $ 298,000 for
the same period of 2001.
FINANCIAL CONDITION
LOANS. Loans were $39,664,000 at September 30, 2002; up by $2,518,000 or
6.78% from December 31, 2001.
TABLE I - COMPOSITION OF LOAN PORTFOLIO
(In thousands)
<Table>
<Caption>
Sept. 30, 2002 Dec. 31, 2001
-------------- -------------
Commercial, financial and agricultural loans $ 7,739 $ 6,738
Real estate construction loans 2,004 1,690
Real estate mortgage loans 24,735 23,604
Consumer loans 5,811 5,719
Industrial revenue bonds 0 0
------------ ------------
TOTAL LOANS $ 40,289 $ 37,751
Allowance for possible loan losses 625 605
Unearned income 0 0
------------ ------------
$ 39,664 $ 37,146
============ ============
</Table>
SECURITIES HELD TO MATURITY. Securities held to maturity were $2,106,000
at September 30, 2002; down by $200,000 or 8.67% from December 31, 2001.
SECURITIES AVAILABLE FOR SALE. Securities available for sale were
$36,258,000 at September 30, 2002; up by $1,209,000 or 3.45% from December 31,
2001.
TABLE II - INVESTMENT SECURITIES
(In thousands)
A comparison of the book value and estimated market value of investment
securities is as follows:
<Table>
<Caption>
Sept. 30, 2002
---------------------------------------------------------------
HELD-TO-MATURITY AVAILABLE-FOR-SALE
AMORT MARKET AMORT MARKET
COST VALUE COST VALUE
------------ ------------ ------------ ------------
U.S. Treasury $ 2,106 $ 2,151 $ -- $ --
U.S. Government Agencies 0 0 14,940 15,237
Mortgaged-backed securities 0 0 7,786 8,047
State & Political Subdivisions 0 0 12,038 12,790
Equity securities 0 0 184 184
------------ ------------ ------------ ------------
TOTAL $ 2,106 $ 2,151 $ 34,948 $ 36,258
============ ============ ============ ============
</Table>
<Table>
<Caption>
Dec. 30, 2001
---------------------------------------------------------------
HELD-TO-MATURITY AVAILABLE-FOR-SALE
AMORT MARKET AMORT MARKET
COST VALUE COST VALUE
------------ ------------ ------------ ------------
U.S. Treasury $ 2,306 $ 2,354 $ -- $ --
U.S. Government Agencies 0 0 14,070 14,290
Mortgaged-backed securities 0 0 8,992 9,133
State & Political Subdivisions 0 0 11,258 11,477
Equity securities 0 0 149 149
------------ ------------ ------------ ------------
TOTAL $ 2,306 $ 2,354 $ 34,469 $ 35,049
============ ============ ============ ============
</Table>
TABLE III - NON-PERFORMING ASSETS
Non-performing assets include non-accrual loans, loans which are contractually
90 days past due, restructured loans, and foreclosed assets. Restructured loans
are loans which, due to a deteriorated financial condition of the borrower, have
a below market yield. Interest payments received on non-performing loans are
applied to reduce principal if there is doubt as to the collectibility of the
principal; otherwise, these receipts are recorded as interest income. Certain
non-performing loans that are current as to principal and interest payments are
classified as non-performing because there is a question concerning full
collectibility of both principal and interest.
Non-performing assets totaled $0 at September 30, 2002, a $32,000 (100.00 %)
decrease from December 31, 2001. The composition of nonperforming assets are
illustrated below:
<Table>
<Caption>
Non-performing loans: Sept. 30, 2002 Dec. 31,2001
(In thousands) -------------- -------------
Loans on non-accrual $ -- $ 8
Restructured loans which are not
on non-accrual 0 24
------------- -------------
Total non-performing loans 0 32
Other real estate and repossessed assets
received in complete or partial
satisfaction of loan obligation 0 0
------------- -------------
TOTAL NON-PERFORMING ASSETS $ -- $ 32
============= =============
Loans past due 90 days or more as to
principal or interest, but not on
non-accrual $ 50 $ 16
============= =============
</Table>
TABLE IV - ANALYSIS OF ALLOWANCE FOR LOAN LOSSES
(In thousands)
<Table>
<Caption>
Sept. 30, 2002 Dec. 31, 2001
-------------- -------------
Beginning balance $ 605 $ 579
Charge-offs:
Commercial, financial and agricultural loans -- (3)
Real estate - construction loans -- --
Real estate - mortgage loans (3) --
Installment loans to individuals (9) (15)
------------- -------------
Total charge-offs (12) (18)
------------- -------------
Recoveries:
Commercial, financial and agricultural loans -- --
Real estate - construction loans -- --
Real estate - mortgage loans -- --
Installment loans to individuals -- 2
------------- -------------
Total recoveries 0 2
------------- -------------
Net (charge-offs) recoveries (12) (16)
------------- -------------
Provision charged against income 32 42
------------- -------------
Balance at end of period $ 625 $ 605
============= =============
Ratio of net (charge-offs) recoveries during
the period to average loans outstanding
during the period (0.03) (0.05)
============= =============
</Table>
The present level of the allowance for loan losses is considered adequate to
absorb future potential loan losses. In making this determination, management
considered asset quality, the level of net loan charge-offs, as well as current
economic conditions and market trends.
TABLE V - ALLOCATION OF THE ALLOWANCE FOR LOAN LOSSES
(In thousands)
The allowance for possible loan losses has been allocated according to the
amount deemed to be reasonably necessary to provide for the possibility of
losses being incurred within the following categories of loans.
<Table>
<Caption>
Sept. 30, 2002 Dec. 31, 2001
------------------------------ ------------------------------
% OF LOANS % OF LOANS
TO TOTAL TO TOTAL
AMOUNT LOANS AMOUNT LOANS
------------ ------------ ------------ ------------
Commercial, financial and
agricultural loans $ 134 19% $ 113 18%
Real estate - construction loans 12 5% 8 4%
Real estate - mortgage loans 248 61% 257 63%
Consumer loans 231 15% 227 15%
Industrial revenue bonds 0 0% 0 0%
------------ ------------
$ 625 100% $ 605 100%
============ ============
</Table>
DEPOSITS. As of September 30, 2002 total deposits have decreased by
$1,562,000 or 2.00% from December 31, 2001. Non-interest bearing deposits
decreased by $166,000 or 0.60% from December 31, 2001 to September 30, 2002.
Interest bearing deposits decreased by $1,396,000 or 2.74% from December 31,
2001 to September 30, 2002.
CAPITAL. Shareholders' equity totaled $13,776,000 at September 30, 2002,
compared to $12,265,000 at December 31, 2001. The increase is primarily the
result of year to date net income. Risk-based capital and leverage ratios for
the Company and the bank subsidiary exceed the ratios required for the
designation as a "well-capitalized" institution under regulatory guidelines.
TABLE VI - CAPITAL RATIOS
<Table>
<Caption>
AMERICAN BANK & TRUST COMPANY Sept. 30, 2002 Dec. 31, 2001
(Bank subsidiary) -------------- -------------
Risk-based capital:
Tier 1 risk-based capital ratio 28.15% 27.16%
Total risk-based capital ratio 29.40% 28.41%
Leverage ratio 14.05% 14.14%
</Table>
PART II. OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS
In the normal course of business, the bank becomes involved in legal
proceedings. It is the opinion of management that the resulting liability, if
any, for pending litigation is negligible.
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) Exhibits
99.1 Certification pursuant to 18 U.S.C. Section 1350 by the
Company's Principal Executive Officer
99.2 Certification pursuant to 18 U.S.C. Section 1350 by the
Company's Principal Financial Officer
99.3 Disclosure of approval by the Company's Audit Committee
for the performance of non-audit services by the
Company's Independent Auditors
99.4 Disclosures on controls pursuant to 18 U.S.C. Section
1350 by the Company's Principal Executive Officer
99.5 Disclosures on controls pursuant to 18 U.S.C. Section
1350 by the Company's Principal Financial Officer
(b) Reports on Form 8-K
NONE
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized to sign on behalf of the registrant.
<Table>
AMERICAN BANCORP, INC.
---------------------------------
(Registrant)
November 4, 2002 /s/ Salvador L. Diesi, Sr.
- ---------------------- ---------------------------------
DATE Salvador L. Diesi, Sr.
Chairman of the Board/President
November 4, 2002 /s/ Ronald J. Lashute
- ---------------------- ---------------------------------
DATE Ronald J. Lashute
Secretary/Treasurer
of the Board
</Table>
CERTIFICATION PURSUANT TO
18 U.S.C. SECTION 1350,
AS ADOPTED PURSUANT TO
SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002
I, Ronald J. Lashute, certify that:
1. I have reviewed this quarterly report on Form 10-Q of American Bancorp,
Inc.;
2. Based on my knowledge, this quarterly report does not contain any untrue
statement of a material fact or omit to state a material fact necessary to
make the statements made, in light of the circumstances under which such
statements were made, not misleading with respect to the period covered by
this quarterly report;
3. Based on my knowledge, the financial statements, and other financial
information included in this quarterly report, fairly present in all
material respects the financial condition, results of operations and cash
flows of the registrant as of, and for, the periods presented in this
quarterly report;
4. The registrant's other certifying officers and I are responsible for
establishing and maintaining disclosure controls and procedures (as
defined in Exchange Act Rules 13a-14 and 15d-14) for the registrant and
have:
a) designed such disclosure controls and procedures to ensure that
material information relating to the registrant, including its
consolidated subsidiaries, is made known to us by others within
those entities, particularly during the period in which this
quarterly report is being prepared;
b) evaluated the effectiveness of the registrant's disclosure controls
and procedures as of a date within 90 days prior to the filing date
of this quarterly report ("Evaluation Date"); and
c) presented in this quarterly report our conclusions about the
effectiveness of the disclosure controls and procedures based on our
evaluation as of the Evaluation Date;
5. The registrant's other certifying officers and I have disclosed, based on
our most recent evaluation, to the registrant's auditors and the audit
committee of registrant's board of directors (or other persons performing
the equivalent functions):
a) all significant deficiencies in the design or operation of internal
controls which could adversely affect the registrant's ability to
record, process, summarize and report financial data and have
identified for the registrant's auditors any material weakness in
internal controls; and
b) any fraud, whether or not material, that involves management or
other employees who have a significant role in the registrant's
internal controls; and
6. The registrant's other certifying officers and I have indicated in this
quarterly report whether there were significant changes in internal
controls or in other factors that could significantly affect internal
controls subsequent to the date of our most recent evaluation, including
any corrective actions with regard to significant deficiencies and
material weaknesses.
November 4, 2002 /s/ Ronald J. Lashute
- ------------------------ ------------------------
DATE Ronald J. Lashute
Chief Executive Officer
CERTIFICATION PURSUANT TO
18 U.S.C. SECTION 1350,
AS ADOPTED PURSUANT TO
SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002
I, George Hill Comeau, certify that:
1. I have reviewed this quarterly report on Form 10-Q of American Bancorp,
Inc.;
2. Based on my knowledge, this quarterly report does not contain any untrue
statement of a material fact or omit to state a material fact necessary to
make the statements made, in light of the circumstances under which such
statements were made, not misleading with respect to the period covered by
this quarterly report;
3. Based on my knowledge, the financial statements, and other financial
information included in this quarterly report, fairly present in all
material respects the financial condition, results of operations and cash
flows of the registrant as of, and for, the periods presented in this
quarterly report;
4. The registrant's other certifying officers and I are responsible for
establishing and maintaining disclosure controls and procedures (as
defined in Exchange Act Rules 13a-14 and 15d-14) for the registrant and
have:
a) designed such disclosure controls and procedures to ensure that
material information relating to the registrant, including its
consolidated subsidiaries, is made known to us by others within
those entities, particularly during the period in which this
quarterly report is being prepared;
b) evaluated the effectiveness of the registrant's disclosure
controls and procedures as of a date within 90 days prior to the
filing date of this quarterly report ("Evaluation Date"); and
c) presented in this quarterly report our conclusions about the
effectiveness of the disclosure controls and procedures based on
our evaluation as of the Evaluation Date;
5. The registrant's other certifying officers and I have disclosed, based on
our most recent evaluation, to the registrant's auditors and the audit
committee of registrant's board of directors (or other persons performing
the equivalent functions):
a) all significant deficiencies in the design or operation of
internal controls which could adversely affect the registrant's
ability to record, process, summarize and report financial data
and have identified for the registrant's auditors any material
weakness in internal controls; and
b) any fraud, whether or not material, that involves management or
other employees who have a significant role in the registrant's
internal controls; and
6. The registrant's other certifying officers and I have indicated in this
quarterly report whether there were significant changes in internal
controls or in other factors that could significantly affect internal
controls subsequent to the date of our most recent evaluation, including
any corrective actions with regard to significant deficiencies and
material weaknesses.
November 4, 2002 /s/ George Hill Comeau
- ------------------------ ------------------------
DATE George Hill Comeau
Chief Financial Officer
INDEX TO EXHIBITS
<Table>
<Caption>
EXHIBIT
NUMBER DESCRIPTION
------- -----------
99.1 Certification pursuant to U.S.C. Section 1350 by the
Company's Principal Executive Officer
99.2 Certification pursuant to U.S.C. Section 1350 by the
Company's Principal Financial Officer
99.3 Disclosure of approval by the Company's Audit
Committee for the performance of non-audit services
by the Company's Independent Auditors pursuant to
U.S.C. Section 1350
99.4 Disclosure on controls pursuant to U.S.C. Section
1350 by the Company's Principal Executive Officer
99.5 Disclosure on controls pursuant to U.S.C. Section
1350 by the Company's Principal Financial Officer
</Table>