American Bank's Earnings Increased by 10.8% During the First Six Months of 2001.Business Editors ROCKVILLE Rockville, city (1990 pop. 44,835), seat of Montgomery co., W central Md., a NW suburb of Washington, D.C.; settled c.1760s, inc. as a city 1860. It has several scientific research and technology laboratories that focus on the aerospace, electronics, nuclear energy, , Md.--(BUSINESS WIRE)--July 20, 2001 American American, river, 30 mi (48 km) long, rising in N central Calif. in the Sierra Nevada and flowing SW into the Sacramento River at Sacramento. The discovery of gold at Sutter's Mill (see Sutter, John Augustus) along the river in 1848 led to the California gold rush of Bank (OTCBB OTCBB See OTC Bulletin Board (OTCBB). :BKMD.OB), Rockville, Maryland Rockville is the county seat of Montgomery County, Maryland, United States. According to the 2006 census update, the city had a total population of 59,114, making it the second largest city in Maryland. , announced net income for the six months ended June June: see month. 30, 2001 increased by 10.8% to $404,447 (or $.20 per fully diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share of common stock), as compared to net income of $364,867 (or $.18 per fully diluted share of common stock) for the same period in 2000. Net income was $188,622 (or $.10 per fully diluted share of common stock) for the quarter ended June 30, 2001, compared to net income of $176,316 (or $.09 per fully diluted share of common stock) for the same period in 2000. The Bank was able to achieve an increase in earnings despite the margin compression caused by the 275 basis point reduction in short-term interest rates Short-term interest rates Interest rates on loan contracts-or debt instruments such as Treasury bills, bank certificates of deposit or commerical paper-having maturities of less than one year. Often called money market rates. by the Federal Reserve during the first half of 2001. The Bank is asset sensitive, with assets repricing Repricing To change the price of an asset. In derivatives, it sometimes refers to the exchange of options of with different strike prices. repricing more quickly than liabilities in response to changes in interest rates. As a result, the Bank's net interest margin tends to compress, and growth in net interest income tends to slow in a falling interest rate environment. However, the Bank's management feels its net interest margin will stabilize stabilize See peg. and improve during the second half of the year due to a significant volume of Certificate of Deposits that have maturities in the second half of 2001. As these deposits mature, management will be allowed to reprice these liabilities to current market rates which are significantly lower than the current rate. The increase in net income for the six month period was attributable primarily to the decrease in non-interest expenses. The Bank increased net interest income by $69,000 to $2,050,000, however the provision for loan losses increased by $157,000 during the same period. The provision for loan losses increased during the first six months of 2001 as compared to the same period in 2000 because additional reserves were needed due to the growth of the loan portfolio. For the six months ended June 30, 2001, American Bank had net interest income after provisions for loan losses of $1,854,000 compared to $1,943,000 for the same period in 2000. American Bank increased total assets by $22.6 million and loans receivable, net by $17.0 million during 2001. For the six months ended June 30, 2001, non-interest income increased by $451 due to the increase in gains recognized on the sale of mortgage loans originated by the mortgage division offset by a decrease in lawsuit lawsuit: see procedure; tort. proceeds. The Bank recognized $115,000 in lawsuit proceeds during the second quarter of 2000. Operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. decreased by $145,000 primarily due to a decrease in legal expenses. Phillip Phillip is a variant of the name Philip. It may refer to: Given name:
adj. 1. or one·time a. Occurring or undertaken only once: a one-time winner in 1995. b. recovery of lawsuit proceeds in the amount of $115,000. The Bank's income before income taxes increased by 36.1% during the first six months of 2001 as compared to the same period in 2000 if the recovery was excluded from last year's earnings." At June 30, 2001, American Bank had total assets of $156.8 million, deposits of $110.1 million and stockholders' equity Stockholders' Equity The portion of the balance sheet that includes capital received from investors in exchange for stock (paid-in capital), donated capital, and retained earnings. This is equal to total assets minus liabilities, preferred stock and intangible assets. of $13.8 million, as compared to $134.2 million, $83.5 million and $13.3 million, respectively, at December 31, 2000. This press release contains forward looking statements regarding the Bank's anticipated future results of operations, which are subject to risks and uncertainties. Actual future results may differ materially from current expectations as a result of changes in general economic conditions, including interest rates, competition, loan demand and other factors. -0-
Balance Sheet Data:
Balance Balance
06/30/01 12/31/00
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Total assets $156,817,930 $134,171,533
Loans receivable, net 114,074,160 97,034,534
Foreclosed real estate, net 485,609 229,918
Deposit accounts 110,067,837 83,517,366
Total borrowed funds 29,090,000 33,500,000
Total stockholders' equity 13,789,479 13,344,904
Operating Data:
Year-to-date Year-to-date
June 30, 2001 June 30, 2000
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Total interest income $5,659,173 $4,730,886
Total interest expense 3,609,269 2,749,781
Net interest income 2,049,904 1,981,105
Provision for loan losses 195,710 38,539
Net interest income after
loan losses 1,854,194 1,942,566
Other income 850,896 850,445
Non-interest expenses 2,058,293 2,202,794
Income before income taxes 646,797 590,217
Provision for income taxes 242,350 225,350
Net income 404,447 364,867
Basic and diluted EPS $0.20 $0.18
Quarter ending Quarter ending
June 30, 2001 June 30, 2000
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Total interest income $2,799,612 $2,407,891
Total interest expense 1,827,299 1,412,203
Net interest income 972,313 995,688
Provision for loan losses 126,760 19,256
Net interest income after
loan losses 845,553 976,432
Other income 530,954 470,581
Non-interest expenses 1,069,135 1,163,997
Income before income taxes 307,372 283,016
Provision for income taxes 118,750 106,700
Net income 188,622 176,316
Basic and diluted EPS $0.10 $0.09
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