EXHIBIT 99.1
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FOR IMMEDIATE RELEASE
Contact: Clement B. Knapp, Jr.
President
(219) 836-5870
January 26, 2005
AMB FINANCIAL ANNOUNCES QUARTER RESULTS
AND CASH DIVIDEND
Munster, Indiana - AMB Financial Corp. (OTCBB: AMFC) (the "Company") the parent
holding company for American Savings, FSB (the "Bank") announced today that
earnings per share for the fourth quarter ended December 31, 2004 totaled $.19
per diluted share, compared to $.27 per diluted share reported for the quarter
ended December 31, 2003. The decreased earnings per share compared to last year
resulted primarily from the recognition of a loan loss settlement in the amount
of $55,000, net of income taxes, during the quarter ended December 31, 2003
which did not occur during the current quarter. Exclusive of this item, earnings
per share would have been $.21 for the quarter ended December 31, 2003. Net
income for the current quarter totaled $193,000 compared to $271,000 reported in
the year earlier period. Return on average equity and return on average assets
were 5.82% and .49%, respectively, in the current quarter compared to 8.66% and
..74% in last year's comparable period.
AMB Financial Corp. also announced that it will pay a regular cash dividend of
$.06 per share for the quarter ended December 31, 2004. The dividend will be
payable on February 18, 2005 to the shareholders of record on February 4, 2005.
RESULTS FOR THE QUARTER ENDED DECEMBER 31, 2004
Net interest income totaled $1.09 million in the current quarter, up slightly
from the $1.08 million for last year's fourth quarter. The Bank's net interest
margin declined to 3.10% for the current quarter, compared to 3.30% in the
December 31, 2003 quarter. The decline in the net interest margin was primarily
due to a decline in the yield on interest-earning assets to 5.64% in the current
quarter compared to 5.93% in last year's fourth quarter. This decrease resulted
primarily from the impact of higher loan prepayments, which led to loans
refinancing at lower rates. The lower asset yields were partially offset by a
decline in funding costs as the average cost of interest-bearing liabilities
decreased to 2.56% in the current quarter from 2.65% in last year's comparable
period.
Non-interest income decreased to $313,000 in the current quarter, compared to
$455,000 reported in last year's fourth quarter. The decline in non-interest
income was primarily attributable to a $32,000 decrease in service fee income as
well as a decline in gains from the sale of investment securities of $19,000 and
a loan loss settlement of $92,000 regarding losses on medical lease loans
previously charged-off, which were both reported in the prior year period,
offset by a $13,000 increase in rental income.
The decline in service fees consisted of a $6,000 decline in deposit related fee
income, due in part to reduced ATM fees as a result of the Company's closing of
two casino boat ATMs, a $14,000 decline in loan related fees due to reduced loan
refinance and modification activity during the quarter as compared to the prior
year and a $6,000 decline in insurance commissions. Offsetting these decreases
in non-interest income was a $13,000 increase in rental income at the Dyer
branch office location which is currently fully leased. In addition, the Company
also incurred a loss of $24,000 in the current quarter compared to a loss of
$28,000 in the prior year's quarter, related to an investment in a low-income
housing joint venture. As a result of this investment, the Company recorded an
offsetting $35,000 in federal income tax credits during both periods which
resulted in the reduction of the Company's effective income tax rate.
Non-interest expense totaled $1.09 million in the current quarter, compared to
$1.06 million reported for the quarter ended December 31, 2003. The increase
resulted primarily from increased staffing costs during the quarter of $37,000
due to increased compensation and benefit costs, primarily pension expense, and
increased data processing costs of $7,000, offset by a reduction in occupancy
and equipment expenses of $21,000 due to a decrease in real estate and personal
property tax expense.
The Company recorded a provision for loan losses of $63,000 during the quarter
as compared to $43,000 during the prior year's quarter. During the current
quarter, the Bank recorded $63,000 of net loan charge-offs, including $71,000 of
commercial business loans related to one borrower as well as a $4,000 automobile
loan and $7,000 of credit card loans. In addition, the Bank recovered $19,000
related to previously charged-off loans. The Bank's general allowance for loan
losses was $608,000 at December 31, 2004, which is equal to 40.5% of net
non-performing loans and .47% of net loans receivable.
Income tax expense totaled $61,000 in the current quarter, an effective tax rate
of 23.9%, compared to $163,000 or an effective tax rate of 37.5% for the quarter
ended December 31, 2003. Both periods were positively impacted by the
recognition of approximately $35,000 in low-income housing tax credits which
have a greater impact on the effective rate in a lower earnings period compared
to a higher earnings period.
RESULTS FOR THE YEAR ENDED DECEMBER 31, 2004
Diluted earnings per share totaled $.87 in the current year compared to $1.18
last year. For the twelve months ended December 31, 2004, net income totaled
$881,000 compared to $1.18 million in calendar 2003. Net interest income totaled
$4.45 million compared to $4.33 million last year. The net interest margin
increased to 3.26% for the year ended December 31, 2004, compared to 3.23% for
the prior year period. Return on average equity for the year ended December 31,
2004 was 6.78% compared to 9.72% for the year ended December 31, 2003.
Non-interest income totaled $1.24 million for the year ended December 31, 2004
compared to $1.67 million in the prior year period. Lower fees and service
charges of $235,000 and reduced gains on trading account activity of $117,000
were offset by increased rental income of $60,000 from the Dyer office location
which is currently fully leased. In addition, the prior year period includes
$92,000 loan loss settlement and $29,000 of gains on the sale of available for
sale securities which did not occur in the current year period. Non-interest
expense totaled $4.27 million during the current year, compared to $4.04 million
reported in the prior year. Increased compensation and benefits, primarily
pension contributions and ESOP expense as a result of the increase in price of
the Company's stock between the periods, accounted for $226,000 of the increase,
while increases in advertising of $24,000 and data processing of $30,000 were
offset by a decrease in occupancy and equipment expenses of $60,000. Loan loss
provisions totaled $189,000 in the current year as compared to $214,000 in the
prior year.
BALANCE SHEET AND CAPITAL
Total assets of the Company increased by $2.7 million over the past three months
due primarily to growth in the loan portfolio of $3.0 million. The increase was
attributable to a $5.1 million single-family residential ARM loan purchase from
a local third-party lender. The growth in loans were funded in part by a $1.2
million decline in cash and cash equivalents as well as an increase in deposits
in the amount of $2.4 million. Certificates of deposit grew by $1.3 million
during the quarter due to aggressive marketing of several special rate products.
The Bank continues to be successful in growing its core deposits. At December
31, 2004, core deposits, compromised checking, savings and money market
accounts, accounted for 42.5% of total deposits, a slight increase from
September 30, 2004.
Total assets of the Company increased by $11.1 million to $157.1 million at
December 31, 2004 from $146.0 million reported at December 31, 2003. The
increase in assets during the current year resulted primarily from growth in
loan balances, which totaled $129.3 million at December 31, 2004 compared to
$120.2 million at December 31, 2003, an increase of $9.1 million. In addition,
the Company increased its liquidity position by $1.1 million to $8.3 million and
its position in purchased accounts receivable by $1.0 million to $3.4 million at
December 31, 2004. The growth in assets during the current year was funded by an
increase in deposit balances, which increased by $7.4 million to $115.7 million
at December 31, 2004 as well as a $2.8 million increase in borrowed money to
$18.9 million from the FHLB of Indianapolis.
As of December 31, 2004, stockholders' equity in AMB Financial Corp. totaled
$13.4 million. The number of common shares outstanding at December 31, 2004 was
985,761 and the book value per common share outstanding was $13.60. The Bank's
tangible, core and risk-based capital percentages of 9.02%, 9.02% and 15.44%,
respectively, at December 31, 2004 exceeded all regulatory requirements by a
significant margin.
Non-performing assets decreased during the past three months, totaling $1.61
million or 1.02% of total assets at December 31, 2004 compared to $2.11 million
or 1.37% of total assets at September 30, 2004. At December 31, 2003,
non-performing assets totaled $1.65 million, or 1.13% of total assets. Included
in non-performing assets at December 31, 2004, are two commercial office
buildings totaling $700,000. During the quarter ended December 31, 2004, the
Bank disposed of a $410,000 real estate owned commercial property at a slight
profit. In addition, a workout arrangement, discussed in prior filings, with a
delinquent accounts receivable customer in which the indebtedness was
restructured to a commercial loan and reported as a non-performing asset, has
been removed from non-performing status due to a sustained current payment
history. The balance on this loan has been reduced over the last seven months
from $535,000 to $318,000 as of December 31, 2004.
This new release contains various forward-looking statements consisting of
estimates with respect to the financial condition, results of operations and
business of the Company and the Bank. These estimates are subject to various
factors that could cause actual results to differ materially from those
estimates. These factors include, but are not limited to, (i) the effect that
movements in interest rates could have on net interest income and loan
repayments, (ii) changes in customer preference for our products and services,
(iii) changes in national and local economic and market conditions, including
prevailing real estate values, (iv) higher than anticipated operating expenses,
(v) a lower level of or higher cost for deposits or a higher cost for borrowings
than anticipated, (vi) changes in accounting principles, policies or guidelines,
(vii) legislation or regulations adversely affecting the Bank or the Company,
and (viii) the success of the Company's workout programs for troubled assets.
American Savings, FSB is a federally chartered stock savings bank. The Bank is a
community oriented institution offering a variety of traditional deposit and
loan products. It operates three full service offices located in Dyer, Hammond,
and Munster, Indiana.
(Two pages of selected financial information are included with this release).
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AMB FINANCIAL CORP.
SELECTED FINANCIAL CONDITION DATA
(IN THOUSANDS)
Dec. 31 Sept. 31 Dec. 31
2004 2004 2003
(Unaudited) (Unaudited)
Total assets 157,094 154,368 145,965
Loans receivable, net 129,342 126,281 120,209
Mortgage-backed securities 2,286 2,491 3,155
Investment securities and interest bearing deposits 9,305 10,022 7,993
Deposits 115,659 113,229 108,334
Borrowed money 18,954 19,015 16,130
Guaranteed preferred beneficial interest
in the Company's subordinated debentures 5,000 5,000 5,000
Stockholders' equity 13,409 13,160 12,520
SELECTED OPERATIONS DATA
(IN THOUSANDS)
(UNAUDITED)
Three Months Ended Twelve Months Ended
December 31 December 31
2004 2003 2004 2003
---- ---- ---- ----
Total interest income $ 1,978 1,943 7,887 8,235
Total interest expense 889 861 3,433 3,903
-------- -------- -------- --------
Net interest income 1,089 1,082 4,454 4,332
Provision for loan losses 63 43 189 214
-------- -------- -------- --------
Net interest income after provision for
loan losses 1,026 1,039 4,265 4,118
-------- -------- -------- --------
Non-interest income:
Fees and service charges 234 267 946 1,181
Rental Income 34 21 137 77
Gains on trading securities 18 18 34 151
Gains on available for sale securities -- 19 -- 29
Loss from investment in joint venture (24) (28) (82) (91)
Gain on sale of real estate owned 9 8 14 24
Increase in cash surrrender value of life insurance 31 32 135 151
Gain from life insurance proceeds -- -- 27 --
Loan loss settlement -- 92 -- 92
Other operating income 11 26 29 57
-------- -------- -------- --------
Total non-interest income: 313 455 1240 1671
-------- -------- -------- --------
Non-interest expense:
Staffing cost 558 521 2,185 1,959
Occupancy and equipment costs 91 112 411 471
Data processing 143 136 558 521
Professional fees 63 60 251 248
Other 230 231 869 837
-------- -------- -------- --------
Total non-interest expense 1,085 1,060 4,274 4,036
-------- -------- -------- --------
Net income before income taxes 254 434 1,231 1,753
-------- -------- -------- --------
Provision for federal & state income taxes 61 163 350 571
-------- -------- -------- --------
Net income $ 193 271 881 1,182
======== ======== ======== ========
Earnings per share
Basic $ 0.20 $ 0.30 $ 0.94 $ 1.31
Diluted $ 0.19 $ 0.27 $ 0.87 $ 1.18
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AMB FINANCIAL CORP.
SELECTED FINANCIAL RATIOS AND OTHER DATA
(UNAUDITED)
Three Months Ended Twelve Months Ended
December 31 December 31
2004 2003 2004 2003
---- ---- ---- ----
Performance Ratios:
- -------------------
Return on average assets 0.49% 0.74% 0.58% 0.78%
Return on average equity 5.82 8.66 6.78 9.72
Interest rate spread information:
Average during period 3.08 3.30 3..24 3.26
End of period 3.26 3.32 3.26 3.32
Net interest margin 3.10 3.30 3.26 3.23
Efficiency ratio 77.42 74.36 75.42 68.62
Ratio of operating expense to average total assets 2.77 2.88 2.81 2.67
Ratio of average interest earning assets to average
interest-bearing liabilities: 1.01x 1.00x 1.01x .99x
Weighted average common shares outstanding:
Basic 959,865 911,726 940,748 904,283
Diluted 1,020,821 1,014,902 1,007,708 1,004,894
At At
Dec.31 Dec. 31
2004 2003
---- ----
Quality Ratios: (Unaudited)
- ---------------
Non-performing assets to total assets at end of
period 1.02% 1.13%
Allowance for loan losses to non-performing
loans 44.50 65.35
Allowance for loan losses to loans receivable, net 0.55 0.86
Capital Ratios:
- ---------------
Equity to total assets at end of period 8.54 8.58
Average equity to average assets 8.56 8.04
Other Data:
- -----------
Number of full service offices 3 3
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FOR IMMEDIATE RELEASE
Contact: Clement B. Knapp, Jr.
President
(219) 836-5870
January 26, 2005
AMB FINANCIAL ANNOUNCES ANNUAL STOCKHOLDERS MEETING
Munster, Indiana - AMB Financial Corp. (OTCBB: AMFC) (the "Company") the parent
holding company for American Savings, FSB (the "Bank") announced today that the
Annual Stockholders Meeting will be held on April 27, 2005 at 10:30 a.m. in our
Munster Office, located at 8230 Hohman Ave., Munster, Indiana 46321.
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CERTIFICATION PURSUANT TO
18 U.S.C. SECTION 1350,
AS ADOPTED PURSUANT TO
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002
In connection with the current report of AMB Financial Corporation (the
"Company") on Form 8-K for the period ending December 31, 2004 as filed with the
Securities and Exchange Commission on the date hereof the Report, I Clement B.
Knapp, President and Chief Executive Officer of the Company, certify, pursuant
to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the
Sarbanes-Oxley Act of 2002, that:
(1) The report fully complies with the requirements of Section 13(a) or
15(d) of the Securities Exchange Act of 1934; and
(2) The information contained in the Report fairly presents, in all
material respects, the financial condition and results of operations
of the Company.
Date: January 26, 2005 /s/ Clement B. Knapp
-------------------------------
Clement B. Knapp
President and Chief Executive Officer
CERTIFICATION PURSUANT TO
18 U.S.C. SECTION 1350,
AS ADOPTED PURSUANT TO
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002
In connection with the current report of AMB Financial Corporation (the
"Company") on Form 8-K for the period ending December 31, 2004 as filed with the
Securities and Exchange Commission on the date hereof the Report, I Daniel T.
Poludniak, Vice President, Treasurer and Chief Financial Officer of the Company,
certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906
of the Sarbanes-Oxley Act of 2002, that:
(1) The report fully complies with the requirements of Section 13(a) or
15(d) of the Securities Exchange Act of 1934; and
(2) The information contained in the Report fairly presents, in all
material respects, the financial condition and results of operations
of the Company.
Date: January 26, 2005 /s/ Daniel T. Poludniak
-------------------------------
Daniel T. Poludniak
Vice President, Treasurer and
Chief Financial Officer
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